Performance appraisal systems, when properly applied, form the basis for the healthy motivation of the entire workforce in an organization and are the key to increased productivity on both the qualitative and quantitative levels.
It does take patience and perseverance to develop a functional and relevant appraisal system. This is because an appraisal system tells people what they are supposed to do; how they are supposed to do it and most importantly, it establishes ways in which the results of their efforts can be measured, evaluated and rewarded.
You have probably heard the expression, "My way or the highway" used to describe the management style of those who feel that they know best and that they are always, always right. These are the kind of managers that also believe that employees will perform best if motivated by fear and drive employees to produce what t hey call 'results' by using coercive tactics.
The trouble starts when they come to evaluate the performance of those employees and assign rewards.
ESTABLISH STANDARDS OR TOSS A COIN
Boss: "Your performance was unsatisfactory!"
Employee: "But I did everything you told me to do!"
Boss: "Maybe, but you didn't do anything really well."
Who is right, the boss or the employee? The answer is that neither one can prove anything; since it was never established what standards constitute a 'good job'. An example of a standard could be: "a good salesperson must secure a minimum of 10 contracts out of every 100 meetings with clients and the annual turnover realized for 1997, based on a forecast taking territory, product or service and economic climate into consideration is US $ 100,000." It is only in the case of such pre-established standards that we could determine whether the employee or the boss is right.
BUT SHE TELLS ME EVERYTHING!
Employee: "Why did Hania get a higher pay rise than I did?"
Boss: "Well, Hania is extremely loyal to the company."
Employee: "What do you mean? For every 10 hours of work I put in, she does 6 because she spends so much time 'kissing up to supervisors'. Just compare our work and you'll see who is really doing the job right."
Now which of these two are right? Again it is hard to say because the employee is using his own job-related standards of what he/she thinks makes up a good job and the boss is using a different set of non-job-related and very subjective standards on which to base his reward system. In the absence of clear and measurable job-related standards this scenario will continue to repeat itself over and over again.
WORLD RECORDS IN THE FISHBOWL?
Boss: "You did not reach the sales target!"
Employee: "But boss, it is impossible, even for superman, to reach the target you s et."
Boss: "Nonsense, you're just finding excuses."
Employee: "My territory is fully saturated with our product; competitors have a cheaper and better product and we have nothing new to offer at this time."
The boss probably knows that what the employee is saying is right but he thinks that if he sets very high goals this will help motivate the employee to do more so that the 'real' target will be achieved. It just doesn't work this way. This is a situation in which the employee will become de-motivated and start looking for a new job instead of doing his/her work properly. Goals must be realistic if they are to motivate employees, but they should include a built-in incentive for maximum performance. For example: the minimum sales target for you this year is US $ 75,000, but for every $1,000 above that figure you will receive an additional 20% on your commission.
SIMPLE, STRAIGHTFORWARD SUBJECTIVITY
Employee 1: "Have y ou noticed how the annual appraisals always turn out?"
Employee 2: "I certainly have: Fadia is always at the top and Ibrahim is always 'good' no matter what he does."
Employee 1: "Yes, and Zahi is always 'bad' no matter what he does. Most of us just get dumped into the 'average box' and Hadi is always at the top because the supervisor is literally afraid of him."
Employee 2: "The sad thing is that this has now become a pattern repeated year after year. I wonder if it will ever change."
In these few sentences we have seen the classical problems of biased appraisals. Without regular and sustained training for supervisors and managers coupled with the monitoring of the results of their appraisal reports for corrective action and management development programs the situation will not change.
OH SHUT UP!
Boss: "If you don't like the results, you can leave."
Employee: "Leave to where? I have been working with you for 30 years, 20 of them during the civil war. "I never got one hour of training in anything. I don't know on what basis I get evaluated as good or bad. I also..."
Boss: "As I said, if you don't like it here you can leave."
Poor feedback and negative communication make an amazing formula for confrontation, misunderstanding, de-motivation and bringing out the worst in everybody. Nobody can blame anybody when clearly defined and measurable standards are established from the beginning; clearly and convincingly communicated to those concerned, and then fairly and consistently applied.
BOSS KNOWS BEST WHAT'S BEST FOR YOU
Employee: "Why do you put us to all the trouble of doing the appraisals every year when you obviously don't look at them when you decide on pay increases or promotions?"
Boss: "That is none of your business. The top management of this company knows what is best for the company and it is not for anyone to challenge their decisions. "
Employee: "But..."
Boss: "If you have a problem with the way things are managed here, the doors are open. You can leave anytime."
Obviously appraisals at this company are only being done as a matter of form. No one expects to use them for any purpose other than maintaining the 'carrot and stick' management philosophy. The point is that promotions and salary increases as well as career training and development programs should be directly linked to appraisals.
AVOID ISO 9000 OR ANY OTHER QUALITY SYSTEM
Those who do not like the contents of this article should stay away from any quality systems. In fact, they shouldn't even think of them because one of the main tasks they will have to face is the establishment of Specific, Measurable, Attainable, Realistic and Time bound (SMART) standards for every aspect of their work whether they are in the field of industrial production, financial servi ces or the entertainment business.
Quality can be a pain in the behind. Don't bother, if you don't care.
Fay Niewiadomski founded ICTN (International Consulting & Training Network) in 1993. ICTN provides complete management services to its clients who are among the leading regional and multinational players. Furthermore, she has worked with CEOs, Board Members, Presidents and Ministers of Government and other Leaders to help them meet the challenges of change within their organizations through creative problem solving, management interventions and powerful communication strategies. Prior to founding ICTN, she researched the subject of "Managing Change through Needs-Based Assessment' in large Lebanese Organizations" for her doctoral work at the University of East Anglia in the UK. Additionally, she also held various university positions as a professor at AUB and LAU and as Dean of the Faculty of Humanities at NDU.
For additional information on how to improve performance and increase productivity through people, decrease cost and better ensure growth and sustainability, visit http://www.ictn.com/.
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