8.7 Value of Performance Appraisals

Evaluation of the team including each member and the Project Manager post project is an important step in encouraging modifications in conduct of members, support the team member’s career growth, and continue their benefit to the organization through continuous learning. Each member is measured, using specific criteria, that measures the goals of the projects against the criteria. Prior to the project, all the criteria, expectations, and standards are developed. The supports from the organization are put in place for success.

Performance Appraisals Can Fail 

There is evidence to support that performance evaluation is not effective in many organizations. Mackenzie, Wehner, and Correll’s study (2019) in the Harvard Business Review reveals, ” …while we may strive to be as meritocratic as possible, our assessments are imperfect and all too often biased. As innocuous as the typical form [appraisal form] may seem, our research has found that it often allows for our implicit biases to creep in” (para. 2-3). The failures are attributed to ambiguous standards, bias of the raters, time consuming and wrong selection of the criteria. Sometimes, the performance appraisals are confusing as well as the process itself. Other reasons for failure are:

• The performance evaluation is left only to the Project Manager who lacks skills in evaluation,
• The evaluation may be carried out by the team member’s direct supervisor who had nothing to do with the project,
• Projects are only measured on scope, costs, times and deliverables, and there is no focus on the performance of the team.

Performance Appraisal Functions

Performance appraisals focus on the team member’s strengths and weaknesses, and developing strategies for improvement. Also, the evaluation appraisal includes assessment of how well the team members performed on the project. Some projects attach performance appraisal to salary increases, promotions and bonuses. An accurate performance appraisal helps Human Resources determine a wage increase or decrease in wages, often referred to as pay for performance. Training and development can be identified during a post evaluation to further the team member’s opportunities within the organization, or for future projects. The documentation from the appraisal supports future work assignments, any disciplinary action required, and promotions or terminations. They serve as recognition of work performed. This helps esteem and empower team members for future work.

Overall, performance reviews fulfill several purposes and help bring the team together and align with the organization. Human Resources wants to ensure a strong culture of working together for the good of the entire organization, and performance appraisals are one way to provide positive results of this strategic goal.

“8.7 Value of Performance Appraisals” from Human Resources Management – 3rd Edition by Debra Patterson is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.