Scrap Performance Appraisals - Part 3

Yeehaaww! I'm stirring up the blogsphere a bit. I’d like to start this post off by acknowledging the folks who have linked to this series and offered their own spin on the topic of performance appraisals:

Rosa over at Talking Story offers this excellent post called It's time to retire your annual performance reviews.

Tom, over at the True Talk Blog offers, HR is Dead, Long Live HR.

9 to 5 and Otherwise offers this post, Whose performance are we appraising?

The Gild Blog asks, Performance Appraisals: Good or Bad?

Adrian, over at the Coyote Within offers, Those @*!%&@! Performance Appraisals.

And Johnnie Moore puts a nice visual on this issue with, Haneberg Confronts Naked Emperor.

When I left yesterday's post, I wondered why more companies don't stop using a system they know does not work. If this were a product, it would be rendered obsolete. If it were an employee, he or she would be defenestrated before you could open the blinds.

Maybe one of the reasons that more corporations have not stopped using performance appraisals is that the alternative is unclear. I am guessing this is why my HR friend is looking for an option.

I can understand wanting an alternative, but it is also a bit odd.

If you have a system that is damaging and everyone hates, why do you need a replacement? Why not just stop? Surely stopping the appraisal process would be helpful and a huge relief. I don’t think we need an alternative to appraisals to discontinue their use.

What would a replacement aim to achieve?  To improve performance, right? Isn't the solution to do what we know helps maximize performance?

As I write this I am thinking about someone trying to stop smoking. It’s something clearly bad for his health but he is finding it tough to quit. In this situation, there is a chemical dependency and a behavioral dependency that makes it more difficult to quit. Gums, patches, and support groups help compensate for this.

But with reviews, I think we can and should just stop. Just stop.

Just stop.

Stop.

I promise you, now one will feel withdrawal pains!

Fine print: There may be a few HR folks or senior managers that would feel like something is missing (it is called worthless bureaucracy and it is good to reduce!). And perhaps a few ultra-micromanagers will miss feeling superior and in power.

After we stop appraisals, then, separately, we focus on building an environment that optimizes performance. Let’s talk about that tomorrow!

Comments

[Adrian Savage]

There is an alternative to performance appraisals -- a good one. It's called "coaching." Where managers coach their staff year-round, no artificial appraisal is needed.

[Lisa Haneberg]

Adrian:

I agree that coaching is critical and this is one practice I was referring to under the category of "things we know help optimize performance."

"No artificial appraisal needed." Absolutely!

[Arne]

Hmmm ... good question why not stop it.

I used to work for a large and highly red-taped institution. (Read Bank) Performance apprarisals - well to the employees was important into a factoring equation for thier annuals incentive (haha) - however mid-way up the ladder was a senior vp who would have scrapped the whole process I'm sure.

This SVP one year dictated that not one soul should receive the highest rating - you see if one of the souls should be granted this lofty appraisal - well the performance bonus doubled. The SVP's rationale? - Controlling costs - gee - what was that thing about incenting people again??

Interestingly enough corporate HR then dictated that the sum of all performance reviews were to be curved. It was pre-determined that no more than 5 percent of the employee population was capable of an exceptional level of effort. Interestingly enough - it was predetermined that somewhere between 15 and 20 percent of the pleebs would turn in a performance that was below expectations.

Let's see - I know that I'm unlikely to be granted stellar performance status - okay - well I certainly want to stay out of the bottom pile for sure... hmmm I guess I'll shoot for a straight ho-humm mediocre middle of the road performance.

Wait a minute - what was that part at the top about employees were concerned about ratings as it factored into the bonus - oh forget about it.

[Lisa Haneberg]

The forced curve is corporate stupidity at its most embarrassing, I agree!

[Christopher D. Lee]

I am an HR manager and have spent dozens of years working with and designing appraisal systems, and I agree they do not work. This is precisely why I have spent the last few years researching and writing on the subject. To this end I have written a new book called Performance Conversations: An Alternative to Appraisals. It is truly a departure from the traditional bloodletting ritual. I would be interested in your comments.

[Ian Pratt]

Hey, great article - just wondering if the issue is poor management training or poor design and implementation. Or is the issue that an appraisal process simply does not work.

I am against linking pay to appraisal as that seems to drive a lot of politics rather than a focus on performance.

Is there an alternative?