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Performance appraisal and IDP: what is the relationship between them?

Renan Araújo

Performance appraisal and IDP: do you know the relationship between these two concepts? Once an assessment has been run at your company, there is a need to map out the next steps with regard to the professional’s development. This will be possible through the Individual Development Plan, which will be followed up by the leaders throughout the cycle.

In this content, we explain a little more about this topic. Read on to learn more!

Performance appraisal

As we know, performance appraisal is a structured assessment of a team member’s individual performance. In this way, there is the possibility of bringing improvements to the company’s development from improvement in staff performance.

It usually consists of a series of questionnaires, in which there will be questions to be answered by one or more appraisers about an appraisee. Among the questions to be answered by the evaluated and asked by management, we highlight:

  • what is not going well and how it negatively impacts the staff and the company;
  • that the one being led is doing well and, by the same token, positively impacts the company;
  • what the priorities should be for the coming months.

In addition, the team still has the possibility to perform self-assessment. Through it, the professional will have more self-knowledge and better a broader reflection on his routine. Among the questions asked, we highlight:

  • what the main results achieved in the last few months are;
  • what could be improved;
  • in which areas the team member is doing well.

Performance appraisal results

In this scenario, the last step of a well-structured performance evaluation process is feedback. This way, there will be a meeting between the management and the professional (which will eventually involve some HR employee), where essential points for the person’s development will be discussed. They are as follows:

  • what the results of the evaluation were, which behavior was observed, and which results were achieved;
  • which ones will be the inputs for the development of team members for the next cycle;
  • what decisions have been made with regard to promotion, compensation, and reallocation of people within the same team. 

A trend has thus been observed in the area of human resources. There are two distinct meetings in it. In the first one, management will provide feedback, with the main results obtained during the process, as well as defining the development inputs. In the second, the decisions made in the cycle will be communicated.

Performance Evaluation and Individual Development Plan

In this sense, what would be the relationship between performance evaluation and the Individual Development Plan? In the manager’s evaluation, some priorities are defined to be followed in the coming months.

In this question, both leader and employees will establish their priorities for the next cycle, so that there is an alignment between leaders and team members. If the company works with OKRs, for example (or even traditional goals), this discussion will revolve around what the goals should be for the next cycle, in a way that addresses the overall objectives of the organization.

If there is no formal practice of this methodology, it is necessary to point out the priority areas of focus or projects and deliverables that must be done in order for the company to achieve its goals and ensure its mission.

In addition, on the behavioral side, you need to focus on one or two areas in which the subordinate will focus his efforts on what is possible to improve. That is where IDP comes in.

For this, leaders and team members must understand:

  • What is the area that needs to be improved?
  • How to be specific in the Individual Development Plan?
  • How to follow up, throughout the year, on the Plan created?
  • How to apply all the knowledge acquired during these months?

Read more: 4 tips for creating an Individual Development Plan that you will actually follow!

Cycle length

Previously, companies chose to bring their performance management cycles in line with the fiscal calendar. That is, yearly. However, this practice is not very usual. In the year 2020, for example, the Covid-19 pandemic posed great harm to the goals of companies and, consequently, of professionals. Therefore, opting for shorter cycles is the best way to also adapt people’s development to the market reality and the company’s global goals.

Some companies, however, because they consider complex processes in setting expectations and evaluating performance, perform simpler cycles. That is, focused on people’s development and their own performance, maintaining a more comprehensive annual cycle where decisions will be made, strengthening the company’s talent management.

Performance Management Tools

When it comes to the Individual Development Plan itself, why should your company have a performance management tool?

1.  Following-up the plans created

Through a solution like this, leaders have the opportunity to help their professionals develop skills they want to learn, as well as prioritize those that the company needs for its growth. In the tool, teams can easily create IDPs, and structure them using action plans.

2. Custom PDIs

In addition, leaders and team leaders can build and monitor the IDP together, building documents customized to the needs of each person on the team.

3. Easy and continuous follow-up

As we mentioned, follow-up is essential to understand whether the desired results were achieved or not. Through software, both leaders and the Human Resources area can follow this evolution at any time.

4. Cross-reference relevant information

The focus of this material was on the relationship between performance appraisal and IDPs, right? For this reason, through using a performance management tool, teams can see how that person’s performance evaluation went and quickly understand what the main points of the feedback were. In this way, follow-up is even more precise, guaranteeing the good results of this strategy.

In this material, we present the relationship between IDP and performance appraisal, as well as present a little more about how a performance management solution can contribute to your business. 

If you want to know a little more about it, please contact our team and talk to our professionals!