A Comprehensive Guide to Effectively Appraising Managers

In many organizations, performance appraisals are designed with frontline employees in mind. However, focusing solely on individual contributors while overlooking managers is a missed opportunity. After all, managers are the strategic bridge between leadership and teams. Their ability to lead effectively can either multiply team performance—or diminish it.

Appraising managers is not just about evaluating what they’ve delivered, but how they’ve influenced others, navigated challenges, and contributed to a thriving culture. According to a 2024 report by Gallup, organizations with strong manager development programs report 20% higher team productivity and 27% more employee engagement. These stats underline the fact that manager effectiveness must be intentionally nurtured—and that begins with a great appraisal process.

Unraveling the Complexities of Manager Appraisals

What is Manager Appraisal and Why is it Important?

Manager appraisal, also known as leadership performance review, is the structured process of evaluating a manager’s performance based on leadership behaviors, strategic thinking, communication effectiveness, and team outcomes. Unlike employee evaluations that may focus on task execution, a manager's appraisal must zoom out and capture their ability to inspire, delegate, and lead.

Well-structured appraisals help uncover:

• Where a manager excels,

• Where they may need support or upskilling, and

• How they impact the larger ecosystem of teams and goals.

When ignored or poorly implemented, appraisal processes risk becoming nothing more than formal checkboxes. But done right, they can transform managerial effectiveness and drive growth from the inside out.

Tips to Enhance the Effectiveness of Manager Appraisals

Set SMART Goals as a Foundation

Before any evaluation begins, it's essential to define what success looks like for the manager in question. Using the SMART framework (Specific, Measurable, Achievable, Relevant, and Time-bound), HR professionals and leadership can set performance goals that align with both company objectives and individual manager responsibilities.

These goals then become the baseline against which performance is assessed. For example, if a manager’s goal is to “improve cross-functional team collaboration by Q3,” their appraisal should reflect both outcomes and observable leadership behaviors in pursuit of that goal.

Leverage 360-Degree Feedback

Managers impact people at multiple levels—direct reports, peers, and supervisors. A traditional top-down review misses out on this nuance. That’s why many high-performing organizations now incorporate 360-degree feedback in leadership appraisals. This holistic approach gathers anonymous input from all directions, offering a well-rounded view of how the manager is perceived in their environment.

Tools like Sorwe can automate and simplify this process, ensuring confidentiality and actionable insights without overwhelming HR teams.

Encourage Self-Assessment

Inviting managers to reflect on their own performance is more than a nice-to-have—it’s essential for growth. Self-assessments promote introspection, help uncover misalignments, and build openness to external feedback. Managers who engage in self-evaluation tend to be more proactive in their development and more receptive to coaching.

Use Competency-Based Evaluation

Generic evaluation criteria often fall short when it comes to leadership roles. Instead, organizations should anchor appraisals around key competencies relevant to the manager’s role—such as strategic thinking, coaching ability, emotional intelligence, and decision-making. Evaluating against these clear, role-specific behaviors ensures fairness, consistency, and precision.

For example, a manager in a transformation-heavy role should be evaluated not just on operational KPIs but also on change leadership and adaptability.

Build a Clear Development Plan

Evaluation without development is incomplete. Once feedback is collected and performance is assessed, it's crucial to co-create a development plan. This should include training opportunities, mentoring programs, stretch assignments, or peer coaching. With platforms like Sorwe, these plans can be tracked over time to measure actual growth and impact.

Incorporating a Constructive and Supportive Approach

Appraisals can be uncomfortable—especially for managers who are used to giving feedback more than receiving it. That’s why the tone and delivery of the appraisal matter as much as the content.

Here’s how to approach it constructively:

• Start Positive: Begin with what’s working well. Acknowledging successes helps managers stay open to areas of improvement.

• Use Specific Examples: Instead of saying “your communication could be better,” cite real examples where clarity or timeliness was an issue—or a success.

• Create Space for Dialogue: Appraisals should be a two-way conversation. Allow managers to share their views, clarify intentions, or even challenge perceptions.

• End with Growth in Mind: The ultimate goal is progress. Emphasize development, not just performance rating.

In fact, when managers feel heard and supported, they’re 45% more likely to commit to their development plan, according to a 2023 study by CIPD.

Conclusion: Empowering Leadership Through Better Appraisals

Manager appraisals, when thoughtfully designed and consistently executed, can unlock powerful insights and foster a culture of growth. By combining goal setting, 360-degree feedback, self-reflection, and development planning within a supportive framework, companies can elevate their leadership capabilities at every level.

And with a digital partner like Sorwe, this process becomes seamless. From automated feedback collection to personalized development journeys, Sorwe empowers HR teams to take performance conversations from reactive to proactive—and from compliance to culture-building.