Hi Michael!
Opinions on employee appraisal systems are split. There are those
that call them "disastrous", and others that find them helpful. Since
you're seeking "good practice" strategies for implementing such a
program, why don't we start with things to avoid (or why some call
them disastrous)?
Robert Bacal of Work911 writes:
"From my experience and those of other managers and employees, I
noticed the following:
* Generally, managers and employees don't really like performance
management.
* Managers don't do it regularly
* Paradoxically, many who didn't like it or do it thought that it was
a great idea in principle (but they still didn't do it).
* I could find no relation between the use of performance management
and organizational success. Use of traditional performance management
did not guarantee success, and some organizations that didn't have
much of it at all seemed just fine."
Peformance Management- Why It Doesn't Work (Introduction)
http://www.work911.com/preview/wp2-intro.htm
Mr. Bacal expands on these opinions at the end of chapter one of his
book:
"Even without looking at the logistics and practicality of traditional
performance management, it is clear there are problems. Each of these
problems, could be remedied with some creative modification of the
system, but not without sacrificing something. Make standards
measurable, and you waste time on the trivial. Make standards more
subjective and you can't use them for disciplinary purposes. The more
you stress individual responsibility the more you reduce collective
responsibility. If one person owns an objective, by definition, nobody
else does.
We close with a comment on what must be going on in your head. You
either have a system that appears to work, or know of one. If
performance management is so bad, how can this be? It must and does
succeed sometimes.
First, it is rare that performance management systems are evaluated
properly. We assume that they work. Second, where it is clear that a
performance management system works well, you will invariably find a
manager with superior interpersonal and leadership skills. Good
managers can make almost anything work. Where it succeeds it succeeds
because of this, not because of anything intrinsically wonderful about
a traditional system. One hazards a guess that managers who can make
performance management work so well, would bring success to the
organization even if there was NO performance management of any
consequence. An excellent manager can use a performance management
system as a tool. No performance management system will make a poor
manager a good one."
Peformance Management- Why It Doesn't Work (Chapter 1)
http://www.work911.com/preview/wp2-ch1.htm
An article from the Corporate University Review listed a number of
reasons to get rid of such systems altogether. They included:
Reductions in Productivity
Erosion of Performance
Creation of Emotional Anguish
Damaging to Morale & Motivation
Emphasizing Individual vs. Team and Task vs. Process
Fostering A Short-term View
Institutionalizing Existing Values & Biases
Fostering Fear and Lack of Trust
A Carrot-and-Stick Management System
These "cons" are detailed in Fred Nickols' article, which appeared in
the May-June 1997 issue of Corporate University Review:
Don't Redesign Your Company's Performance Appraisal System, Scrap It!
A Look at Costs and Benefits
http://home.att.net/~nickols/scrap_it.htm
It would seem there are quite a few pitfalls to avoid, then - a good
balance between subjective and objective evaluation is required, as
well as the understanding that if your supervisors are well-trained
and effective, your staff will do well with or without such an
appraisal program.
Now that you know what to avoid, let's have a look at what you need to
know to ensure good practices. To start, you'll want to define why
you want such a system, and what benefits you hope to gain from it.
Some examples might include:
" Reasons for an Appraisal
There are many reasons why you may decide that an appraisal is
appropriate and below is a common list for using one:
*To identify any training that may be needed
*To make personal/business objectives clear
*To identify employees that are potential for promotion
*To review salaries or payment methods
*To identify individual strengths of employees
*To increase motivation
*To develop relations between the employee and the supervisor
*To improve performance
*To update job descriptions
The main benefits for using an appraisal system are as follows:
*Gives you an idea of what you should expect from your employees
*Develops further yourself as a manager (or superior)
*Employees are given feed-back that can be acted upon to increase
their productivity and ability by eliminating their weaknesses and
identifying strengths
*The supervisors develop a better relationship with the employees by
getting to know them better and what their job consists of more
precisely
*Improves communication in the business"
The article goes on to discuss what a well put together apparaisal
system will cover:
" For a system that you and the employee will benefit more from, you
should create a form where comments can be recorded and analyzed to
give a more in-depth evaluation.
This should include the following and is just a basic structure that
you may add to if you feel appropriate:
*A section for 'personal details' to be stated including the date and
the time period that the evaluation is based on (i.e. the last 6
months, but state the dates)
*A number of sections, that will be determined by your reasons for
appraisal, so that information can be recorded (e.g. 'job
description', 'strengths', 'areas that may need training', etc)
*If you are rating the performance of employees, you should create a
rating system (1-10 or poor to excellent, etc) but include supportive
comments
*A section for 'future plans of action' which will record suggested
areas for improvement or tasks to be completed in order to achieve
their set goals
*Although employees will have had some input on the evaluation, you
may decide to include a section for 'Employees comments'
*Finally, a space for signatures so that the employee can acknowledge
that they have seen or received a copy of the appraisal evaluation
form."
For the full article from which these lists are excerpted, see:
Employee Apparaisal
http://www.credit-to-cash.com/personal_development/employee_appraisal.shtml
A sample of the sort of system described above is available from the
US Department of Health and Human Services Program Support Center:
Employee Appraisal System
http://forms.psc.gov/forms/PSC/PSC-2a.pdf
The effective employee appraisal system will take individual employee
situations into account - for instance the employee who is still in a
training or probationary period should be evaluated by criteria which
differ from those used to evaluate long-term (more senior) employees.
The US Office of Personnel Management offers several resources to aid
you in designing and implementing an effective employee appraisal
system, most notably the following, with details thorough a series of
four lists what to consider when designing your system:
Appraisal Program Design
http://www.humtech.com/OPM/PM/articles/008.htm
Additionally, the OPM has published a full listing of recommended
articles, policy documents, and resources which detail best practices
in implementing such systems:
OPM Resources by Topic
http://www.humtech.com/OPM/PM/rate.htm
Obviously, not every appraisal system will be appropriate for every
company. To ensure that the one you implement is right for your
company, be certain to have a clear idea of what you hope to
accomplish with the system. The lists detailed above are a good
starting point for you to evealuate what will be most effective for
your staff. Additionally, Carter McNamara, PhD, has assembled a
comprehensive resource list covering pros and cons of employee
appraisal systems, and do's and don'ts in their implementation. It
would be well worth your time to give his references a thorough
reading as you plan and execute your appraisal system:
Employee Performance Reviews / Appraisals
http://www.mapnp.org/library/emp_perf/perf_rvw/perf_rvw.htm#anchor78433
I ope you've found the information presented helpful. If any part of
my answer is unclear or you need further assistance, please don't
hesitate to ask for clarification. I'll be glad to help you further.
--Missy |
