Most performance evaluation systems don't work. They seldom improve performance and they certainly don't protect your company from lawsuits. More than 40 years ago, Dr. W. Edwards Deming stated that performance evaluations are more destructive than beneficial. So what does work? Take this four-part approach:

1. Have a clear understanding of expectations. Ask the person you manage this question: What are the three most important things you do every day? Chances are that the answer you get won't be the one you expected or hoped for. Once you're clear on expectations on the three most important things the employee does every day, try to help them allocate 80% of their effort toward them.

2. Know the benchmark. HR That Works users can look at the Benchmarking Worksheet. Be very clear about what good performance means. Ask this question: "How would they know if they were doing a good job without having to ask me and without my having to tell them? Until you can get to this level of understanding with those three most important factors of job performance, any performance appraisal process will be meaningless.

3. Be clear about responsibilities and accountabilities for performance. Managers are responsible to employees, not for employees. This means that they must put the employee in a position where they are capable of succeeding. It then becomes the employee's responsibility to succeed. If people aren't performing up to standard, first ask the question, "Is it the system? Have we stuck a round peg in a square hole? Have we put them in a position where they're not capable of succeeding? Is the employee recycling the manager's ignorance? If your answer to this inquiry is that it's not the system or the manager, then find out if, for any reason, the employee believes they don't have the skills or desire to do the work.

4. Deal with poor performance NOW. Get a plan in writing. Make sure performance turns around within 30 days or let the employee go.