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Staff appraisals are an integral part of employer-employee relationships and should not be overlooked by company directors, according to the Chartered Management Institute (CIM).
The focus of staff appraisals has shifted towards more well-prepared and open discussions on performance improvements and development needs rather than just a "historical [overview] of how things have gone over the past year".
Company directors to ensure that appraisals take place on a regular basis in order for them to be effective.
A formal appraisal should take place "at least once a year", but more informal appraisals can be held "at least once a month", the CIM advised.
A recent survey of 2,900 people by Investors in People found that 44 per cent of respondents believed their appraiser had been dishonest, while 29 per cent of people felt their appraisal was a waste of time. Some 41 per cent however, felt their appraisal was useful.
According to another report by Investors in People, less than 30 per cent of UK employees have complete trust in their manager, with 78 per cent believing that their manager has let them down in the past.
Mike Petrook, a spokesperson for the CIM, said: "What should happen to make [appraisals] work well, is a clear link to be made between the organisations strategic goals and the individuals own objectives."
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