What's the Appraisal Process at Southfield?

What is your evaluation of the appraisal process (or the ‘SPR’) at Southfield? Is the instrument well designed? Is the required performance interview a good idea? What changes, if any, could be made to improve its effectiveness?

Performance appraisal is one of the key elements in performance management cycle.  The idea to have a performance interview is good as it is significant to each employee. It helps to summarize employee’s performance for the entire performance period, discuss and plan future development activities, recognize success, coach and counsel the individual as well as identify and deal with performance deficiencies. Proper performance evaluation also provides important legal protection for Southfield. Performance appraisals lay the groundwork for discipline and, if necessary, legally defensible termination when problems with an employee cannot be resolved.  

The appraisal process (or the ‘SPR’) at Southfield will be evaluated in 6 dimensions.

1. Whether or not the appraisal process is clear and transparent

Appraisal process is clear and transparent at Southfield. In each December, SPR will be held between employees and managers. A copy appraisal report completed by manager is given to employees during SPR.  An employee is required to acknowledge the report and is given a chance to provide feedback not covered in the SPR in the report.  The completed SPR report will be kept in the employee’s permanent record.

1. Whether or not the standards are objective and equally applied

It is critical that appraisal standards be the same for all levels of employees. In Exhibit 1, the SPR report includes 9 predetermining key performance factors or competencies to be assessed. Extra performance factors or competencies can be included, if appropriate.  In Exhibit 2, a 9 point scale rating system is adopted.

Predetermining assessment factors and standard rating system helps to ensure that appraisers are properly trained in performance appraisal techniques and appraises are accessed according to fair and equitable standards.

1. Whether or not the appraisal is a review

Any issues or compliments that have been raised during the year should be documented and should become a part of the appraisal process. Southfield does adopt an online tool to help managers collect, and save an employee’s noteworthy work for review before SPR. However, saving problems and issues are not communicated to the employees until SPR. It will waste the opportunity to address and resolve these issues at their inception in a much less confrontational manner.

As illustrated in the case, even though Sanders emphasized “frequent communication”, he was “big on feedback” and he was not going to put any surprises on the performance review form, Belby did feel surprised on the comment written by Sanders. The performance management process is not well executed.

1. Whether nor not the appraisal is a tool for development

The appraisal should be treated as a chance for the employee to review the year and make plans for positive changes. In Southfield, career goals are discussed in the SPR meeting.  Suggestions for personal development is also included in the appraisal.