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Chapter 18 - Performance Appraisals

Driving Excellence: How the Aggregate System Turned Microchip Technology From a Failing
Company to a Market Leader

by Michael J. Jones and Steve Sanghi

John Wiley & Sons © 2006 Citation

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Chapte r 18: Pe rformance Appraisals

Managers can evaluate their employees’ performance using a variety of methods. T his chapter will focus on
the most well-known and widely utilized assessment measure, the annual employee performance appraisal.
T he performance appraisal is a powerful tool because it serves both as an assessment tool and a
development instrument. It provides a permanent record of employees’ performance throughout their tenure
with the enterprise. Numerous companies fail to exploit the chief attribute of performance appraisals: their
ability to support the alignment of the enterprise. Performance appraisals, if designed properly, are much
more than a formal review of one’s performance. T hey’re a vehicle to ensure employees are reinforced to,
and rewarded for, practicing the company’s values, helping it attain its strategic formula. T herefore,
appraisals play a critical role in the formation and success of the Aggregate System.

Performance Appraisal Criteria

T he performance appraisal criteria specify the areas in which employees will be assessed. T hey include the
quality and quantity of work, customer satisfaction, innovations, and improvements to the operation. T he
criteria for assessing employees’ performance must be based on the company’s values to ensure alignment
within the Aggregate System. It’s key that the performance appraisal utilize the same criteria for all
employees. Clearly, based on the employee’s job responsibilities, the specific standards for each job will vary
substantially. However, the criteria won’t vary. For example, all employees will be judged on the quality of
their work. T he standards used to evaluate the quality of the work completed by a Vice President are not
relevant to those used for engineers. What’s important, though, is that the company values quality and
therefore everyone’s work is assessed against this criterion.

Supervisors and managers must be evaluated against additional criteria specific to their managerial
responsibilities. T hese criteria can include employee communication, monitoring, development, and

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Driving Excellence: How the Aggregate System Turned Microchip Tech... http://www.books24x7.com/assetviewer.aspx?bookid=16777&chunkid=...

empowerment. T he criteria should shape the desired style of management.

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