Measuring staff performance.(employee performance appraisals)

Few management responsibilities are more common than conducting performance appraisals. Yet as widespread as this practice may be, many credit departments--both large and small--experience challenges in organizing and managing an employee appraisal system.

Just the mention of a performance review can lead to increased anxiety for both the credit staff member and the supervisor conducting the evaluation. For the employee, being "graded" and discussing areas where improvement is needed can be an unnerving experience. And for the manager, evaluating a staff member can be time consuming, while also potentially placing him or her in the uncomfortable position of trying to provide constructive yet candid feedback.

Despite the difficulties a supervisor faces in developing and conducting appraisals, periodic reviews are one of the most effective ways to influence staff performance. A structured, well-implemented system yields significant benefits that outweigh the time and effort the process requires. Additionally, when implemented properly, it provides documentation that can protect a company against wrongful dismissal suits.

Maximizing Benefits

Following are some of the benefits of structured performance appraisals:

* Motivate credit staff to improve job performance. Enhance the impact of coaching and mentoring efforts that are already taking place between employees and their managers

* Establish a reasonably uniform set of performance standards that are consistent with company values. Confirm that employees possess the skills or attributes needed to successfully fulfill particular jobs