Evaluating the Performance of Your Performance Evaluation System

By Joel Myers

The new Millennium may very well usher in opportunities that puzzle and excite, that challenge the status quo, and invite innovative solutions for the workplace. But I doubt it. My bet is that most businesses will continue to face the same issues they've been grappling with throughout the last Millennium. It will be the nuts and bolts of managing the workplace and the work force that will continue to be among the most critical components of successfully running a business of any size. Certainly the Internet Age has added some nuances that didn't exist before but it's the human drama of the workplace that will, in large part, determine the success or failure of all those New Year's strategic plans.

There's probably nothing more central to the productivity of the workplace than management's ability to evaluate and provide feedback on employee job performance and to recognize or redirect performance as appropriate. So, why does this basic management process continue to challenge so many companies? Here's 5 ways performance evaluation systems often fall short of the mark.

Top 5 Ways Performance Evaluation Systems Fall Short of the Mark

1. Performance expectations are not clearly communicated to employees. This sounds like Management 101 but I've seen short comings in this area too many times to ignore them. Are you clear about the standards of performance for each position in the office? Are they written down? Were they reviewed upon interviewing and hiring each new employee? If not, how can a manager fairly evaluate performance without risk of bias or misunderstanding? You will be making critical decisions regarding your employees' future, i.e. hiring, promoting, demoting, termination. Management 101? Easier said than done. It's certainly more frequently said than done. Don't take any short cuts with this one. It could cost you in more ways than one.

2. Performance appraisals are applied inconsistently to the workforce. This is sure to generate some excitement in the ranks. Fact is, we're all human. It's tough to remain objective. Within the same department, a supervisor can improve consistency by evaluating everyone's performance at the same time rather than evaluating employees throughout the year. Anniversary dates are commonly earmarked for performance appraisals, for example. Appraisal inconsistency can also result across departments, since different supervisors vary in their definition of what constitutes "good" or "excellent" performance. Sharing performance standards, training in how to conduct performance appraisals, and a professional review by Human Resources can result in more consistency. Let's be real; "excellent" performance in one supervisor's eyes may merely be "acceptable" in another's. Don't risk losing your best people because of this.

3. Individual performance is the yardstick for success, at the expense of collaboration and teamwork. It's hard to think of many workplaces that don't require collaboration to get the job done. What's more, I challenge you to name one. Yet, you'd be surprised at how few companies take this into account in their performance evaluation system. This can easily be remedied though. Simply add this criterion to the evaluation. Think through how you define and recognize good teamwork. I'm not just talking about "works well with others". I'm talking about deliverables. I've heard many managers lament about the difficulties of rewarding teamwork because one or two team members pulled the lion's share of the load. There are ways to factor this (some might call it "leadership") into measuring collaboration and team results.

4. Only short term goals are charted and followed. Longer term, strategic organizational goals are not understood or pursued by the majority of the workforce. This is common and unfortunate. Everyone wins when the company's long term goals are met, but few are officially charged with seeing them through. Robert Bacall, in his book Performance Management, explains his theory of performance management, which revolves around the idea of uniting all sectors of a business to function toward achieving the same goals. If you want your employees to be vested in the end game of your business, and realize that everyone plays an important role in achieving it, communicate the goals broadly. Convey your expectations for employees to be involved and committed, give them responsibility for carrying out tasks related to long-term success, hold them accountable, and share the fruits of success when the goals are achieved. Factor short and long term goals into performance evaluations.

5. Management is not invested in the performance evaluation process. How many times have we all seen it? Somewhere in the 1990's, it became popular for employees to take the first pass at their own performance evaluation. Then management would come in behind them and either agree or disagree with the assessment. Odds are the employee spent hours on the thing and management maybe 15 minutes. In many organizations, performance appraisals only occur when management is building a case to terminate someone. It's no wonder that the result is a mutual dread of the performance evaluation session --- something to be avoided, if at all possible. This is no way to manage and motivate people. Performance appraisal is supposed to be a developmental experience for the employee and "teaching moment" for a manager.

Being a manager requires commitment and a personal investment to grow people. Performance evaluation, as part of the management process, is more than having a graphically interesting form on which to document accomplishments and shortcomings. Conducting an effective performance evaluation is a key management role. How well managers perform this role should weigh heavily on their performance review.

The Bottom Line

Re-working your performance evaluation system may have been one of the best New Year's resolutions you could have made. Some third party assistance can help do it right. The end product should reflect the performance and contributions you really want to reward in your company - at all levels. Performance assessments should be clear, equitable and, importantly, reflect what is required from every employee to contribute in a meaningful way. Putting more purpose into your performance management process is a sure way to better your bottom line.

Return to What We Think