Performance appraisal template form Today's economic environment is the biggest motivation for employees to perform. The threat of job elimination, layoffs, reduced hours, pay cuts or even the demise of the company has Americans working as hard as ever. Anyone with a job today who is not giving it their all under these conditions never will. So the true question becomes "Are Performance Appraisals the Key to Maximizing Performance During Normal Business Conditions?" The answer is not easy and has a lot to do with each individual company, the method they use and the value the organization places on the process. If the appraisal process is something that everyone in the company dreads, then you are getting very little from the exercise. There are several reasons why performance appraisals are dreaded: Managers don't know how to deliver them. It takes too long to write them, distracting managers from making money. Employees know that no matter how well they do, they won't get a good raise. Employees and managers don't understand what they are being appraised on. The appraisal is the organization's only way of communicating performance. So does this mean that eliminating performance appraisals is the best way to go? Not necessarily. When you examine some of the best performing organizations, they have a robust and well thought-out process that engages all employees. The managers are well trained and everyone understands the procedure. Pay is tied very closely to performance and even in bad times, the best employees get significant raises. Can you succeed without performance appraisals? Absolutely! If you and your managers are constantly giving feedback during the entire year to employees about how they are doing and you give raises based on this feedback, you can get by without doing a full-blown process. The only real challenge to not having appraisals comes when you are trying to discipline or terminate an employee for non- performance or if someone alleges discrimination in pay practices. If you decide to have performance appraisals, make sure that everyone understands what you are measuring and that those measurements are key to the growth of your business. Keep the forms simple to complete, easy to administer and tie them to raises. Make sure your best employees feel and see the love on their paychecks. The decision on how to "manage" performance should be tied closely to the culture of your company. If your business is laid back and informal, avoid performance appraisals. Your relaxed culture is one of the reasons people chose to work there. If your business is formal and constantly driving business metrics then it would be critical to have strict performance measurements. http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms for performance appraisal.