10
KEYS TO BETTER
PERFORMANCE
APPRAISALS
“...Skepticism arises in my company .... It has
been doing formal appraisals for at least 10 years and we still struggle to do
them right; my people only want to know the increment they receive and
managers’ want to do a quick- and -slick job... Do I have to repeat last year’s
boring rituals and futile processes once over again ??“
Is this a common remark is made in you companies where performance appraisal is an unavoidable ritual??? When used to its full potential, performance management is an HR system that can provide an organization with a substantial competitive advantage. Yet it remains a much maligned, poorly used process in most companies today. For these companies it is a boring, time-consuming ritual that yields little tangible benefit, without a hint of impact on the bottom line.
My approach to developing and sustaining
a performance management system are based upon two key tenets. The
first tenet suggests that if appraisal processes operate as a system, a systems
perspective must be applied to identify the critical appraisal system
components and stages to make sure that organizational procedures and practices
work in harmony. The second tenet is that individual managers play a pivotal
role in achieving effective appraisals and that they need the right tools and
support to be effective
The keys to effective performance appraisal systems can be
organized into three critical components: effective systems design, effective
managerial practice, and effective appraisal system support. Attention to all
three appraisal system components is vital for a formal performance appraisal
system to motivate employees and to improve organizations' competitiveness.
I have identified 10 KEYS through my numerous client
assignment ; that managers can apply to boost appraisal effectiveness.
KEY 1: CLEARLY DEFINE WHY THE ORGANIZATION CONDUCTS FORMAL
APPRAISALS.
Carefully developed and clearly articulated goals will
enable managers to choose appraisal criteria that support the organization's
goals. Also, clear goals increase managers' motivation to conduct appraisals
properly and boost their interest in performance management. When managers know
that information collected during their appraisals is likely to affect
decisions about employee development, planning, performance improvement,
compensation, and performance planning, they will be motivated to execute their
responsibilities competently This is especially true if managers are held
accountable for the quality of their appraisals and performance management
activities. When performance on key aspects of your employees' jobs is
ignored, it sends the message that those aspects are unimportant and should be
ignored.
KEY 2: EMPLOYEE/MANAGER INVOLVEMENT IN SYSTEMS DESIGN IS
CRITICAL.
Effective appraisal systems include input from managers and
employees about appraisal practices and the criteria used to evaluate
performance. Involvement of employees at all levels facilitates acceptance of
the system and increases cooperation. When employees are all told to
participate in the design of the appraisal system, sense of ownership
increases. Attempts to save time by bypassing employee and manager input can
short-circuit ownership of the system, lower the system's credibility, produce
a system that does not meet staffs needs, damage the perceived connection between
pay and performance, and lose the performance-enhancing effects of employees'
commitment to organizational goals.
KEY 3: DEVELOP SIMPLE AND USER-FRIENDLY
PROCEDURES AND FORMS.
Effective appraisal systems need forms that are simple and
easy to understand. Performance criteria, rating procedures, and feedback
should be expressed in terms that are focused and meaningful for both managers
and employees. It is essential that the forms assess the degree to which
employees perform their job duties and achieve specific organizational goals.
Forms that include matters unrelated to performance of essential job functions
or are deficient in measurement of important activities performed within a job
function decrease the effectiveness of the system. Forms should be designed to
aid communication between managers and employees about behaviors, work
processes, and opportunities for improvement.
KEY 4: EMPLOYEES AND MANAGERS MUST KNOW HOW THE PROCESS
OPERATES AND UNDERSTAND THEIR ROLES.
Surprisingly, managers frequently report that they receive
very little training beyond a description of the rating form. An effective
formal appraisal system cannot exist without the ongoing education of all key
players in the appraisal process. In my consulting assignment 60% of the time
is training and coaching managers in the art of writing job descriptions, goal
setting , employee coaching and performance counseling. Several mock interviews
of the performance D-DAY are done to give people the feel of real time
experience . My manual I write for my client is often not read and I have to
devise ways for them to read and get thorough in the tenets and processes of
performance appraisal. I only pity organizations where the HR manager has
downloaded a form from the internet or photocopied them from his previous
employment and hopes to be a success in performance appraisal systems.
KEY 5: MANAGERS MUST CONDUCT EFFECTIVE PERFORMANCE PLANNING.
At the beginning of the appraisal cycle, managers must work
closely with employees to review their job descriptions and duties, set clearly
defined goals, and communicate expectations of behaviors and results for which
the employee will be held accountable and be rewarded. Important behaviors and
activities that critically affect performance and the appraisal form itself
(which should include evaluation of these behaviors and activities) should be
discussed early in the performance evaluation cycle. When performance on key
aspects of your employees' jobs is ignored, it sends the message that those
aspects are unimportant and should be ignored.
KEY 6: MANAGERS SHOULD PROVIDE THEIR DIRECT REPORTS WITH
ONGOING INFORMAL PERFORMANCE FEEDBACK.
Effective appraisal systems do not consist solely of
once-a-year formal performance reviews. Failure to provide ongoing informal
feedback allows minor, easily correctable problems to grow into more serious
ones. Lack of ongoing coaching can lead to employees disengaging from work,
looking for alternative employment, and demonstrating decreased productivity
Lack of ongoing coaching also makes it difficult to conduct reviews of employee
performance and can fray the bonds between managers and their employees, since
employees may interpret the lack of feedback as a sign of supervisors'
disinterest in employees' professional growth.
KEY 7: APPRAISING MANAGERS MUST BE MOTIVATED TO
CONDUCT EFFECTIVE APPRAISALS.
Did the CEO reprimand anyone who went through his duties as
a appraising manager in a slipshod manner? An organization will never achieve
effective appraisal practices if the managers are not motivated to follow
procedural guidelines and use information from training to conduct effective
written and face-to-face performance reviews. Unmotivated managers can undo
even the best performance appraisal system because they most directly impact
the overall quality of the appraisal process and the motivation of employees to
perform. Managers will be motivated to conduct effective appraisals when their
supervisors conduct effective appraisals on them.
KEY 8: THE CEO MUST SUPPORT AND DEMONSTRATE EFFECTIVE
APPRAISAL PRACTICES.
For appraisal systems to be effective, they must get
support from the CEO and top management. Support for effective appraisal
practices can be demonstrated through written and oral communications with
managers and employees in memos, testimonials, videotaped messages, and company
newsletters. Top executives can also show support by practicing the same
appraisal practices when they appraise managers. My experience in my client
assignments, clearly indicates that when top managers don't practice what they
preach, lower-level managers emulate those practices instead of stated policies.
KEY 9: EFFECTIVE APPRAISAL SYSTEMS LINK PERFORMANCE RATINGS
TO ORGANIZATIONAL REWARDS.
Do your penalize underperformance swiftly and stiffly (even with job termination) and reward star performers very meagerly ? Research consistently indicates that, to maximize the effectiveness of a pay-for-performance program, organizational rewards must link greater rewards to superior job performance. There should be a clear distinction between above-average performers and star performers. This sends the golden rule which should be framed on the walls of the company “AVERAGE PERFORMANCE IS NOT TOLERATED HERE”
When employees feel that their rated performance is
accurate and reflects the full range of their contributions to the
organization, their motivation to perform increases. On the other hand, when
employees feel that performance ratings are inaccurate or a function of
politics, they tend to perform only to minimum standards. Do a little soul
searching how many star-performers left in the last few years ...because they
were dissatisfied with the performance appraisal rewards or recognition program.
KEY 10: APPRAISAL SYSTEMS REQUIRE ONGOING SYSTEMS REVIEW
AND CORRECTIVE ACTION. In fact this is the
first step in my consulting assignment ... HOW GOOD BAD OR UGLY is the current
performance management system? What were the failures and pitfalls? This
follows the Deming’s Wheel... Plan-Do-Check-Act....
Examples of measures that can be used to assess the health
of your appraisal system include employee acceptance and trust of the appraisal
system; the relationship between level of performance and rewards-, level of
individual performance and organizational financial performance; consistency of
implementation of policies and practices across levels, departments, and
locations-, and turnover and absenteeism rates compared to other organizations
or to levels at the organization itself before and after the start of the
performance appraisal system. All the support components function to encourage
effective rating practices on the part of individual managers who determine the
ultimate effectiveness of most appraisal systems.
CONCLUSION:
If your organization does formal appraisals, it is imperative
to do them right. This requires time, effort, discipline, and proper support.
While I have outlined the PMS system and process outline, I would like to tell
what the spirit of the PMS is....TO HELP PEOPLE GROW This is done
through feedback and organization support so that they are just not employed in
my company Furthermore the company has to build competencies for them TO
BECOME EMPLOYABLE FOR A LIFETIME.
Every company is bound by growing competition and threat …
the law of business states that there is SURVIVAL OF THE FITTEST.
And a robust performance management system will become a useful tool to attract
and retain talent and lower your talent turnover rate. If you do appraisals in
a casual or ineffective fashion you are making trouble for yourself in a
time when the last thing organizations need is more people problems and
time-consuming rituals; which make people cynical over, other worthy people
management policies as well.
Best of luck
Dr Wilfred Monteiro
