Performance appraisals have taken another hit in the media recently.
- Get rid of performance reviews, author says (http://tiny.cc/rhc2r)
- Are performance reviews a waste of time? (http://tiny.cc/9z4la)
- Yes, Everyone Really Does Hate Performance Reviews (http://tiny.cc/sa77l)
These articles argue that performance appraisals are: pretentious, fraudulent, ill-advised, intimidating, send the wrong message and so on.
So should we throw the baby out with the bathwater? Should the entire process be overthrown?
But wait! Some companies are actually enjoying a great deal of success with their appraisal programs. In fact, a recent American Management Association study of 437 publicly traded companies found that 205 of these had transitioned to more progressive types of performance “development” vs. the standard appraisal process. Those that had, demonstrated the following results:
- Increased profits, better cash flows, stronger stock market
performance, and higher stock value - Significant gains in financial performance and productivity
- Significant sales growth per employee
- Lower real growth in numbers of employees
Here’s the key: Providing valid and valuable feedback on performance is a process, not an event. In fact, performance reviews are often despised and vilified not because they are done, but because of the way in which they are accomplished by managers.
Too often, the individuals are poorly trained and the system itself is both ineffective and inefficient. But open and honest feedback on how an individual is doing in their job is something that most individuals actually appreciate having.
Our recommendation would be to adopt a simple, practical tool for measuring performance objectively; and train managers thoroughly, not just on the appraisal system, but on the process of providing ongoing communication and feedback.
We also counsel our clients on teaching individual employees how to receive feedback. This type of preparation is very effective, but can only accomplish the ultimate goal when a genuine culture of trust exists in the work environment.
To read on about “Getting More From Your Appraisal Program” visit: http://www.ltcperformance.com/Getting-Appr-Program.html.
{ 1 comment }
