People: Are They Really Our Greatest Asset?
By Sultan Kermally
In the past two weeks I've met business execs from the automotive, consultancy, banking and retail sectors. We discussed their companies' appraisal review processes.
Some were very enthusiastic about the way their organisations conducted the process, but most did not enjoy the process and could not understand why their senior managers were not taking the process seriously. Insufficient preparation had been done by their managers, they said, and as a result they felt uncomfortable about giving open and honest feedback.
My own experience of one-to-one coaching on performance appraisals supports this view.
So here is the reminder to senior managers of what performance reviews are all about, and why they should take them seriously.
Organisations measure employees' performance because:
- it is a means of communicating corporate objectives
- it is a way of synchronising team and departmental objectives with strategic objectives
- it establishes congruence between employees' expectations and organisational expectations
- it makes staff feel valued
- it enables organisations to formulate development plans for their staff
- it is very motivating process if done properly
- it forms a basis of counselling and coaching
Admittedly, many senior managers feel uncomfortable playing God when it comes to reviewing their staff's performance, and some feel that it is very time consuming and it stops them from doing their other work.
But performance reviews are one of the key functions of a manager, and every manager should be trained to conduct this process efficiently and with respect. Every employee is entitled to know:
- What is expected of them
- How they are doing
- How they could improve
- What the reward is for achieving targets
Feedback should be open and constructive - there should be no such thing as negative feedback. Constructive feedback should be honest, fair, specific and meaningful, and the recipient should be able to act upon it.
The Chartered Institute of Personnel and Development (CIPD) conducted a survey on performance appraisals and their findings were published in 1996. Some of the findings were:
- 60% of those surveyed felt motivated by appraisals.
- Almost a third felt their boss considered appraisals to be a bureaucratic chore.
- 65% said appraisals are used to identify training and development needs.
- 47% of managers who conduct appraisals said employees use the occasion to moan.
- 15% of managers who carried out appraisals did not like doing so.
- Almost a third agreed that your appraisal rating depends on whether your boss likes you.
I am not sure to what extent the situation has improved, but judging by the comments made by some business executives the words of Douglas McGregor, written in 1960, still prevail. He wrote:
"Managers are uncomfortable when they are put in the position of playing God. The respect we hold for the inherent value of the individual leaves us distressed when we must take the responsibility for judging the personal worth of a fellow man. Yet the conventional approach to performance appraisal forces us, not only to make such judgements and to see them acted upon, but also to communicate them to those we have judged. Small wonder we resist."
