Managers often underperform in performance reviews

  • By Eric Zoeckler / Herald Columnist
  • Sunday, August 1, 2004 9:00pm
  • Local News

Time to take a quick workplace survey. On a scale of 1 (strongly disagree) to 5 (heartily agree), ask yourself:

* I would rather face a root canal than my annual performance review?

* My manager would rather conduct 18 job interviews than give me my annual performance review?

* My manager is diligent about letting us know what’s expected of me and that my performance in achieving our individual goals will be accurately recorded in my next performance review?

* My performance review is always on time – a year or six months following the last one – because my manager has kept detailed notes of our periodic performance discussions.

The resulting index rating of 3.0 based on two 5s and two 1s. shouldn’t be surprising unless you work in Turkey or at the estimated third of all organizations that don’t bother with a performance review process.

As important as they can be to the success of any work environment, employers and employees continue to look askance at the performance review process.

Just three in 10 employees agree that their company’s review process actually helps them improve performance, while two in 10 think it can help poor performers improve, according to a new study released by workplace consultant Watson Wyatt Worldwide.

“The survey results clearly indicate that corporate America’s performance management systems need fixing,” said Scott Cohen, national director for talent management at Watson Wyatt. “Unfortunately, too many organizations view their performance management programs as ‘organizational wallpaper.’ They exist in the background and aren’t expected to add value.”

Despite the criticisms, performance reviews – done correctly – are critical to organizations eager to retain their employees, especially as job switching is predicted to become rampant, said Seattle-based consultant Sharon Koss.

“How you counsel your employees in reviewing their performance is going to make all the difference,” whether they stay or go, she said. “A performance appraisal done incorrectly will be one of the things that will send employees right out the door. Employees have a critical need to know their future with the organization.”

Yet many managers seem to go out of their way to delay or otherwise obfuscate the performance review process. “Managers hate the process,” Koss said. “It takes a skill most of us don’t use everyday; managers, like everybody else, don’t like to confront people when conflict may result. Many of them, unfortunately, are not trained to do reviews.

“They need to know how to handle the employee who gets upset about their review,” she said. “Some employees will ‘flame out’ over just one word they object to in a four-page document.”

Experts say managers could prevent any unexpected misunderstandings – or downright anger – by maintaining a career file on each employee and making periodic notes on performance between reviews. They’re should be no surprises at review time.

“One of the things I’ve seen progressive companies do,” said Koss, “is to give newly-hired employees a copy of their job description and expectations and a copy of the performance appraisal that will be completed by their boss.” That way, employees know precisely how they will be graded.

Other steps to improve the performance appraisal process, Koss said, include:

* Give performance reviews every six months, especially when dealing with nonexempt employees (generally those who earn less than $15 an hour). Since performance reviews should be tied to pay increases, “having to wait a year is asking a little too much of the employee,” she said.

* Tie performance reviews to employee surveys. Give employees the chance to critically evaluate the company during the time they are being evaluated.

* Make sure all managers are evaluated, as well. Some organizations use 360-degree evaluations of managers, asking for input from employees, customers and even outside vendors that must be treated highly confidential.

* The results of 360-degree evaluation should be compiled and summarized by an independent source. Such outside consultants should be placed in charge of gathering material that will make up the top manager’s review.

Watson Wyatt’s Cohen, summing up the importance of performance management programs, said they represent a opportunity for most companies. “If designed and implemented properly these systems can have a strong, positive impact on individual performance and financial results.”

Not to mention, reviews can make employees and managers feel better about performance appraisal time.

Write Eric Zoeckler at The Herald, P.O. Box 930, Everett, WA 98206 or e-mail mrscribe@aol.com.

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