Optimizing the Value of Performance Appraisals

A carefully designed and administered performance appraisal system, which stresses the coaching aspect of evaluations, will improve performance more rapidly and represents one of the keys to increase the audit staff′s productivity. Advocates the use of a two‐tiered, integrated system of ongoing job evaluations and annual goals (management by objectives – MBO), and the optimization of each system component. Entails training appraisers in dealing with emotional barriers to express criticism, and in avoiding psychometric errors. Feedback on job performance should be received on an ongoing and informal basis. MBO goals need to be jointly developed with the auditor. Job evaluations should include written comments which relate to job behaviour rather than personality traits. The annual appraisal should include a self‐appraisal and develop a plan to advance the auditor′s strengths and alleviate weaknesses. Addresses the legal requirements of appraisal systems.