Continue to Appraise Performance in a Downsized Organization

In the wake of layoffs and cut backs, many question the fairness of assessing employee performance, especially with redistributed work and the elimination of bonuses. But you can use performance appraisals to strengthen your organization and accomplish the following important tasks.
Reset expectations. Many companies are giving lower-than-expected bonuses or raises. Let your employees know if this is the case and the reasoning behind the decision. If employees know raises have been reduced to save jobs, they may not be happy but they may accept the disappointment more easily.
Focus on the future. Layoffs leave "ghost work" for survivors who are expected to pick up the slack in a leaner organization. Use appraisals to redefine job scope and make expectations clear.
Reward your top performers. Use what money you have to encourage your star performers to continue to excel. Small discretionary bonuses can go a long way in creating goodwill and fueling great performance.
Management Tip was adapted from "Appraising Employee Performance in a Downsized Organization" by Tom Krattenmaker.
Rajesh Nair