Question

There are a number of specific steps in the appraisal process. What is the final step?

To reconcile the appraiser's final valuation with the amount needed so the property "appraises out"

To reconcile the values derived from the three valuation approaches

To estimate the value of the land

To estimate the effects of depreciation

Answer 1

Traditional performance management practices focus on annual or bi-annual reviews. However, companies across the globe have realized that the effect of such traditional practices has not been very positive. Traditional processes are all about setting long term goals and objectives, which does not respond to the dynamic nature of organizations. Annual reviews require managers to rate their employees on specific criteria, based on their overall performance for the year. Some companies even use forced rankings to quantify performance. Numerical ratings as such can have a negative impact on employee engagement and self-confidence of your staff.

Here are some strategies you could follow:

1. Let employees review themselves: Performance management should not be about managers reviewing their employees and giving them numerical scores. In fact, performance management should not even be the responsibility of a manager.

30% of performance reviews end up in decreased employee performance.

Employees should take charge and speak up about how they see themselves and want to improve. Assessing someone else’s skills might produce inconsistent data.

2. Building relationships: Employees, especially the millennial workforce prefer to be a part of an organization which offers them flexibility in terms of their own growth and does not forcefully subject them to the atrocities of their managers. This is why it is important that you focus on building a good relationship amongst your employees, irrespective of their positions.

3. Speedy and more efficient mechanisms:

Traditional processes are extremely time consuming and need to be revamped. A lot of time is spent on mundane activities like completing the forms, holding the meetings and creating the ratings consumed close to 2 million hours per year! Instead of devoting a lot of time to such practices, investment of time should be shifted to get a speedier process in place.

4. Fuelling performance

Only 8% of companies report that their performance management process drives high levels of value, while 58% said it is not an effective use of time.

To improve performance, you will have to ensure transparency and provide an environment for continuous feedback and reviews. You need to conduct regular check-ins with each team member about their work and emotions. Such brief conversations are always helpful as team leaders can understand the exact needs of those employees who are unable to meet their targets and the reason for the same. Certain issues can be resolved on the spot, thus giving employees a space to grow in their work front. Such interactions can also be used to give goals to each employee, asking them how they plan to achieve their best in the upcoming days and understand strengths that characterize the best teams.

5. Complete elimination of rankings

Two-thirds of performance management systems misidentify high performers.

Numerical rankings are not a very effective way of motivating employees. In fact, they have proved to be detrimental in empowering employees to think better of themselves and improve their performance. Ranking of employees is mostly subjective and can lead to unhealthy comparisons and bitterness among employees. Employees should know how they are performing individually, and not how they have fared as compared to their colleagues.