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Performance Appraisal:The Hammer of Psychology |
As some
wit
once said, "... if performance reviews were a drug, the FDA would never approve
them because they're ineffective and have too many side effects." And if
performance appraisal was a tool, management would blame it for their failures.
Wait, it is a tool, and they do profusely blame it. As the French say, the
bungler blames his tools. Performance appraisal has become the bungler's tool du jour,
deplorable in every way. Attacking it is the latest falsehood to weaken the
West. But I do not despair. I should, but I do not. I take heart from
Orwell: "We have now
sunk to a depth at which restatement of the obvious is the first duty of
intelligent men." Very well; let's restate the obvious, starting with the science.
From psychology, we know that feedback is correlated with improvement,
and biology tells us that improvement is correlated with survival. Therefore feedback is correlated with survival.
When feedback occurs, the odds of survival improve. Feedback is useful, feedback
is good. The nature of performance appraisal is feedback. Performance appraisal
is bad in the same way a hammer is bad. Use it properly, and it works well. Use
it poorly and you'll bend the nail and smash your thumb. Then the tool gets
the blame rather than the tool user. The bastardization of performance appraisal is
commonplace, but science says feedback can produce a standard deviation of improvement in performance, an order of
magnitude. Archer North,
January 6, 2017
Performance appraisal: ancient perspective
Criticism is something we can avoid easily by saying nothing, doing nothing, and
being nothing. Aristotle
Archer North: "I will fix performance appraisal"
Feedback is the basis of
improvement, and improvement is the basis of survival. Is this too hard to see? Survival depends on improvement,
which depends on feedback. It's not rocket science, but it is science.
Archer North*
vows to fix performance appraisal at
anpas.com.
Why the
Performance Appraisal Revolution Matters
"If you think about it, the
performance appraisal is the heart of the interface between the organization and
the employee, manifested through the relationship between the supervisor --
representing the employer -- and the individual. So the changes in performance
appraisal reflect what it means to be an employee at different points in time."
~ Peter Capelli, Human Resource Executive Online
Does abolishing appraisal ratings help employee performance management?
The voice of sanity. More to come on this one.
Jerks at work
'If somebody is rude or an outlier occasionally because
they are in a situation where they didn't get a good night's sleep or something
drastic has happened in their personal lives, we wouldn't consider that person
to be a jerk at work,' says Gretchen Spreitzer, co-author of Destructive
De-energizing Relationships: How Thriving Buffers their Effect on Performance.
She continues: 'It is when there is a pattern in the behaviour over time that a
person can be considered a jerk.'
An
alternative to the dreaded annual performance review
A new article in
Fortune magazine points out that while some organizations are moving towards a
less traditional approach in giving employees performance feedback, the need to
record and document performance information is as pressing as ever. The
traditional annual review, or performance summary, will still have a part to
play as there is a baseline requirement for properly documented performance
information. Roger Ferguson notes: HR departments need "documentation in the
event of an EEOC or NLRB claim or charge... We are, after all, a very litigious
society." That's not likely to change.
Rethinking employee engagement
Jayson Saba writing for
hr.blr.com believes that the phrase 'performance
management' will be replaced by 'performance development' in much the same way
that personnel management became known as human resources. The difference, he
says, between performance development and performance appraisal is that
development is more focused on the future than appraisal, which tends to look at
the past.
Are performance reviews worth it?
"The performance review is getting
mixed reviews" says new research from OfficeTeam. Although most (79 percent)
human resources (HR) managers interviewed said they schedule these meetings at
least annually, one in four (25 percent) employees feel the assessments do not
help improve their performance." That sounds pretty bad, but wait ... it also
means 75 percent of employees believe they get at least some gain from it. So
yes, performance appraisal is worth it. A biased conclusion, naturally :-)
Sack off the appraisal?
"Once regarded as an opportunity to boost pay,
openly express issues and perhaps help bosses understand just how exceptionally
you've performed, many now regard these sporadic review meetings with
trepidation, with some employers seizing this annual / bi annual meeting as a
place to chastise or 'rate and rank' the already nervous employee. At best it's
an opportunity to defend yourself, at worst it's an Apprentice style mugging
based on interrogation and blame shaming..." Dear, dear. I wonder if Donald
Trump ever had a performance appraisal?
Candid Camera and the danger of consensus thinking
Anyone see a consensus
emerging? The herd-minded follow the herd-minded. All of this talk about dumping
and ditching performance appraisal is an exercise in folly. Plants will not grow
in the dark and neither will people.
In favor of
ditching the performance review
Peter Cappelli at the Warton School
writes that the current disillusionment with 'traditional' performance appraisal
seen in a number of large companies is due to a concept of team dynamics known as
the "A player, B player, C player" model, which gained a following in the
1990s. The model "... suggested that poor performers would always be bad, so we
should just find them and get rid of them." This seems to be a variant on the
discredited rank-and-yank thinking that contributed heavily to the demise of
organizations such as Enron.
The model, says Cappelli, was never true. He believes that it may have reflected
the theory of
Fundamental Attribution Error and crowded out the rightful attention due to
other tasks that performance appraisal was supposed to perform, such as
improving performance and developing skills.
How to establish a performance improvement plan
There are four critical
steps, according to the Society for Human Resource
Management. 1. Document the performance issue. 2. Develop an action plan. 3.
Review the plan with another party such as an upline manager. The plan should be
"specific, measurable, relevant and attainable" with 60 to 90 days. 4. Meet with
the Employee to outline the plan. 5. Follow up to assess the success of the
intervention and if unsuccessful, modify the plan or consider other actions such
as job reassigment, etc.
Staff would rather call in sick than face an appraisal
Among the age
group known as Millennials, or those born after 1980, a quarter would rather
call in sick than face a performance appraisal, says a survey of 1,000 full-time
employees reported by TriNet and Wakefield Research. Nearly 70% of Millennials
believe the process of performance appraisal (at least the one they've
experienced) to be flawed, yet 85% want to get more feedback, not less, from
their boss.
More US
companies moving away from traditional performance reviews
The Washington Post reports that big US companies are increasingly disillusioned with 'traditional' performance appraisal. Welcome to the news. We have been saying the same thing for years.
The dreaded performance review
BBC
Capital reports on performance appraisal.
Infosys Scraps Bell Curve
for Performance Evaluation
It is reassuring to
see organizations moving away from the toxic practice of
rank-and-yank. As Infosys and other companies have found, the collateral damage
caused by rank-and-yank outweighs its dubious benefits. As the authors of
an
MIT white paper noted, forcing people into a rigid rank-order can cause a
crippling "erosion of social capital" within the organization, precipitating
an
overall decline in collective performance. While I agree with that observation,
I do not agree with "scrapping the bell curve". The bell curve is a useful
tool and a beautiful piece of human science. What should be scrapped is its
misuse in misguided schemes such as rank-and-yank.
Technology is making real-time performance monitoring too easy
"...
big companies such as GE, Accenture and Deloitte are trumpeting their
abandonment of the annual ritual of performance appraisal .... because it is
much easier and less time-consuming to do them in real time via an app on a
smartphone." Yes, but 'easier' and 'less time-consuming' does not
automatically mean better, if the goal is to give considered, meaningful and
useful feedback, of the type that actually leads to superior behavior.
HCL begins shift from bell curve appraisals towards feedback-based system
Since when was the bell curve the enemy of humanity? The articles I am
reading of late are incorrectly asserting that the bell curve is being
abandoned. Shall we abandon the best-demonstrated piece of empirical
psychology we know? Shall we abandon science? If you read the articles more
closely, you will see that what is really being abandoned in most cases is
the toxic practice of forced rankings. That is, rating people in such a way
that the ratings distribution conforms to the bell curve shape. Forced
rankings is a wrongheaded idea. But the bell curve itself is a fact, like
gravity. Wrongheaded ideas come and go, but facts don't. The bell curve will
continue to elegantly depict the truth of human nature.
Is the appraisal an HR tool of the past?
Vicky Roberts of UK training
firm Vista asks if the recent trend towards ditching the traditional annual
performance appraisal (for example, see the articles above) will become
widespread. Will we all bend with the trend? No doubt, sole reliance on the
once-a-year review process will be change as new technology makes new
methods of feedback more timely and convenient. But it will not be the end
of performance appraisal, as such. Improvement is surpassingly difficult if
not impossible in the absence of appropriate feedback. As Roberts rightly
writes: "Certainly the concept of an annual review of performance has its
flaws, and the oft-cited reason is that nobody likes surprises. This is
true, issues should of course be dealt with as they arise, not saved as a
bombshell for the annual appraisal. To borrow terminology from the world of
educational assessment, performance management should be formative rather
than summative."
Racial discrimination or poor performance: Court decides
Here's a
scenario to keep HR managers awake at night. An African American employee
with allegedly poor performance, documented through a performance appraisal,
was terminated after a series of warnings and probation
periods. The employee goes to court
and claims racial bias. The court cannot find any
evidence that the people who terminated the worker were motivated by racism.
But on appeal, the employee invokes a legal argument known as the
cat's paw theory of liability - "under which an employer may be found
liable when a non-decision-making employee with discriminatory animus
provided factual information or input that may have affected the adverse
employment action." In other words, the evidence relied upon by the
decision-makers may have been tainted by racial animus. Hence the
decision to dismiss was similarly tainted.
On the need for team lubricant
"...
we learned long ago that, particularly in technology, work-progress and
achieved objectives depend upon a well-lubricated team-spirit. We cannot all
be experts all the time in all venues. We depend, to meet an overall task or
objective, on very diverse competencies. Thus, our ability to interact with
people becomes a paramount attribute..."
Layfayette@Techcrunch
Appraisal: Improving Performance and Developing the Individual
Not an article, but a good read by
Richard Williams (Author) and Clive
Fletcher (Author)
How Human Resources Models Define The Future Organisation
Modi message to Ministers: Perform or Perish
GPMS a big leap for efficiency: PM
Current series:
The Brutal Truth About Performance Appraisal
Maslow's Peak: why performance appraisal still matters part 1
Previous series:
Introduction to Performance Appraisal
The Purpose of Performance Appraisal
Methods of Performance Appraisal
Performance Rating Scales
Essay Method
Objectives Method
Benefits of Performance Appraisal
Should Appraisal be Linked to Pay and Other Reward Outcomes?
Performance Appraisal and Employee Conflict
Performance-related Bonus Schemes
Common Mistakes in Performance Appraisal
The Effect of Bias in Performance Appraisal
Legal and Ethical Issues in Performance Appraisal
Archive
Additional resources:
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