Performance Reviews – A Final Curtain?

Resist the urge to say you’ll “redo” your list of New Year’s resolutions instead of writing one. And don’t say, “It is what it is,” when you fail to reach your first goal.

These are two of the 19 words or phrases that appear in Lake Superior State University Annual List of Words Banned from the Queen’s English for Misuse, Overuse and General Uselessness. This year’s selections include “Surge,” “Underwater,” “Perfect Storm,” and “Under the Bus.” You get the idea.

Another misused, overused, and considered useless word that many in the workplace would like to see banished in 2008 is “performance appraisal” or “performance review.” It is a process, polls suggest, that is universally rejected and avoided.

Why performance reviews don’t work

Like Susan Heathfield, on her line Your guide to human resources writes: “How many people in your organization want to hear that you weren’t perfect for at least one year?” “How many managers want to deal with the arguments and low morale that can result from the performance appraisal process?” “Should salary increases be tied to a numerical grade in a performance review?” And what about qualification standards? Some managers are strict performance appraisers, some simple, and some in-between.

According to a study of 5,970 employees reporting to two managers by Personnel Decisions International (PDI), most of these employees receive inconsistent performance ratings. The study found that employees rated outstanding by one manager received a lower rating from their other manager 62 percent of the time.

If you believe that the true goal of performance appraisal is to develop your people and improve your organization, you may want to consider moving to a performance management system.

The Performance Management and Development Process

PMP is a hot topic in business these days. Simply put, performance management is a process that includes activities to ensure that objectives are met effectively and efficiently. Performance management can focus on the performance of your organization, a department, the processes to create or deliver a product or service, and most importantly, the performance of your people.

It is a shared understanding about what you want to achieve and What is about to achieve. It is a people management approach that increases the probability of success.

For effective performance management, strategic decisions must be made by top management, with input from key executives. This should address the day-to-day decision-making process at all levels. The most important aspect is clearly defined objectives that are relevant, reliable and timely. The process must be able to track progress towards that goal, and must be:

Formal. A clearly defined process that everyone understands and agrees to.

Frequent. Dissemination of consistent information.

Important. Relevant information for departments and decisions.

Trustworthy. Everyone believes in information.

Prompt. Schedules, agreed dates; actionable.

tied to results. Everyone is accountable for their performance and is given the right tools to achieve goals.

Feedback. Quick, honest, concise, by all involved.

Leadership. People from different departments can collaborate on changing processes and procedures and making daily operational decisions.

There are a number of performance management and development resources available, including books, articles, and consulting organizations, many with software that automate and offer products that are right for your business.