THE YEAR IN REVIEW
You can't live with 'em and you can't live without 'em. Sound like a punch line from a stale
old joke? Maybe, but that's exactly how many harried managers feel about giving
annual performance appraisals. For many, this yearly rite is a time-consuming
exercise in discomfort and futility that is about as welcome as a trip to the
dentist. But for those who handle the process well, the annual review acts as
a powerful catalyst that dramatically improves performance.
What's the difference between a constructive, empowering, and satisfying performance evaluation and
one that leaves both the supervisor and the employee feeling like they've been
mugged by a street thug? In a word, communication. The degree and level of communication
determines the effectiveness of the review process. If you merely deliver your
perceptions about the employee's work performance, most likely they won't match
with the employee's perceptions. Miscommunication occurs, and a substantial
gap between the two of you results.
An effective evaluation is collaborative--a dialog needs to take place. During
the course of an appraisal, verify that you both understand and agree with the
data being presented. You lead this process, but give your employees an opportunity
to offer constructive feedback. The objective is always to seek and reach mutual
understanding on past performance and future goals.
BE SPECIFIC
To eliminate or reduce most miscommunication, be specific. For instance, it's not helpful to
say that the employee is "often late for work." To have a constructive
discussion about tardiness, cite specific times and dates when the employee
was late. And remember to focus on the results, not the excuses.
In the case of exemplary behavior, the same thing holds. Describe specific things
the employee did that actually contributed toward the effectiveness of the organization.
It's not enough to say that the employee has a "good attitude." In
what ways was this attitude demonstrated on the job, and why did it help? Employees
need to hear specifics.
All jobs are measurable and all goals must be quantified. Obvious advice? Yes--but how many of your reviews
become too subjective? Hard numbers are the most effective and most objective
way to gauge results. If you're reviewing an assembly worker or a salesperson,
quantifying his or her output is probably a simple matter. The challenge is
to develop objective measures for soft goals.
For example, a project manager might have a goal to complete projects on time
and within budget. Consider developing a scoring system, like the example below:
By focusing on measurable results, you can better determine standards for exceptional, average,
and subpar performances.
100% on time, some under budget
100% on time and on budget
90% on time or on budget
80% on time or on budget
less than 80% on time or on budget
ACCOUNTABILITY AND REWARDS
Avoid surprises
One of the central goals of a performance appraisal is to avoid surprises. When
it's time for the annual review, both you and the employee should have a good
understanding of what's going well, what's not going so well, and what could
be done differently. In addition, the employee should already know the rewards
for good performance and the consequences of below average work. The review
is not the time to unveil unknown information; rather, you should concentrate
on the past year's performance and develop a plan for reaching next year's goals.
Praise effort, reward results
Effort is a necessary requisite for job success, but it is not a sufficient
one. Praise employees who try hard, but reward only those who produce results.
Establishing a "results = rewards" policy motivates your employees
to try and to succeed. It also increases the perception of fairness.
Hold people accountable
You've clearly defined goals for your employees, and you've quantified their
performances. If results are lacking, have the courage to hold people accountable.
No one wants to play the villain, but if you cover shortfalls and remedies in
a professional manner, conscientious employees can use the feedback to improve.
And those who don't progress have no excuse if you are forced to terminate them.
The greatest benefit of a review session is the opportunity it provides for
planning the employee's future goals. A good plan keeps you and the employee
focused on the right things, and it helps turn the review process from something
that happens once a year to a dynamic and collaborative effort.
SMART planning
Planning for both professional goals and personal development should be SMART--an
acronym for Specific, Measurable, Acceptable, Realistic
and Time-bound:
Resource needs
A goal to "work harder" is ambiguous; a goal to "increase revenues
by 20% over this year's figure" is not.
It's easier to understand the effort involved in reaching a goal if the desired
result is measurable (e.g., increase revenues by 20%, call 30 prospects each
day).
An employee will take responsibility for pursuit of a goal only when that
goal is acceptable to him or her. To gain acceptance, it's critical to involve
the employee in the goal setting process.
Even if an employee does accept responsibility to pursue a goal that is specific
and measurable, it won't be useful if it is not realistic. Increasing revenue
by 20% over the next year may be attainable; increasing it by 20% within the
next week is not.
Without a time deadline, a goal has no built-in performance accountability.
Goals are worthless if the employee doesn't have the necessary tools to reach
them. That's why good planning also means developing a list of resources needed
to achieve the performance goals, including training, capital equipment, management
support, and time.
Milestones
Be careful that agreed-upon goals don't overwhelm the employee. Often, it's
helpful to break yearly goals into quarterly and monthly objectives. Such a
process helps you monitor progress and achievement throughout the year. It also
provides concrete data for the next evaluation.
AGENDA
Discuss the
employee's primary responsibilities in the past year. (A written summary
of responsibilities should be provided to the employee.) Discuss how they
relate to overall objectives.
Discuss
employee's strengths / areas for growth in the five general performance
categories.
Discuss
employee's significant accomplishments from the past year.
Discuss
possible ways to improve performance.
Discuss
barriers to effective work performance and job satisfaction in the past
year.
Discuss
employee's goals and needs for the next review period.
Discuss
long-term career goals and development needs to achieve them.
Discuss
employee's feedback / suggestions for supervisor.
Discuss
anything else the employee or supervisor would like to address.
Complete
Performance Review forms. Attach supplementary documents: employee self-evaluation,
position-specific factors, plan of improvement, or other accompanying documentation
of performance.
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CHECKLIST
FOR PERFORMANCE REVIEW
CHECK WHEN COMPLETED