The first rule to creating an effective performance appraisal is to base it off of an accurate job description. This will help in determining the actual duties and responsibilities that must be performed for one to be successful. The importance of each activity (for instance, how much time is spent on it, how difficult the activity is, consequences of errors, etc…) should also be determined so that the performance appraisal is objective and fair.

The second rule of thumb would be to create a program that allows for consistency. Some questions you may ask yourself to determine if your reviews are consistent include:

* Is the same system used for all employees…or do some job descriptions warrant the use of a different system?
* Have appraisers been trained (with refreshers?)
* Is anyone responsible for cross-checking for consistency?
* How often are job descriptions and the related appraisal updated?