Pitfalls of Performance
Management
By Anthony R. Montebello, Ph.D.
The difficulties associated with
any performance management system usually can be traced to one of the following
areas:
Goals and Purposes
Performance management systems are highly valued because they can serve a multitude
of purposes. Unfortunately, this diversity of goals often undermines the effectiveness
of the system. Generally, these divergent objectives can be grouped into two broad
categories:
- Administrative goals.
- Developmental goals.
A conflict arises in the behavior of the appraisee. The behavior required for
establishing effective developmental goals is very different from the behavior
manifested when significant administrative decisions are being considered.
| Administrative |
Determine salary increases, bonuses, promotions, layoffs, demotions, transfers,
etc. |
| • |
Curious, guarded
|
| • |
Lack of candor |
| • |
Minimizes disclosure of negative information |
| • |
Accentuates the positive |
|
| Developmental |
Determine the most effective methods to enhance the employee’s abilities
and motivation |
|
Divergent objectives minimize the appraisal’s effectiveness. Any attempt
to identify performance issues is thwarted by the direct report’s defensiveness
and lack of candor. Appraisal Forms
A poorly constructed form can actually hinder productive appraisal discussions
by including content that is subjective or ambiguous.
An abridged version of a poorly designed form is illustrated below:
This brief example presents many of the common flaws we’ve found in appraisal
forms.
The subjectivity and ambiguity of such forms generates performance reviews
that lack validity, practicality, and value. Worst case, the disagreement
over terms may lead to conflict and damage ongoing working relationships.
| “Good Decisions” |
What does “good” mean? Timely? Accurate? Logical? |
| “Planning and Organizing” |
Combines two dissimilar activities. In a case where the direct report may have
effective organization skills, but is a poor planner, for instance, the appraiser
must make a forced choice, downgrading the value of one skill or inflating the
value of another. |
| “Positive Attitude” |
Attitude is a state of mind, calling for a subjective or judgmental response
from the appraiser. |
| “Outstanding Performance” |
Even the rating scale presents problems. What does “outstanding” look like? |
| “Rating Scale” |
Contains problematic terms: outstanding, exceeds requirement, meets expected
level of performance. What does “outstanding” look like? Does one person’s idea
of “exceed expectations” coincide with another’s? |
System Implementation
The importance of the implementation, or “sell-in”, phase cannot
be overemphasized. A few of the dangers to avoid are show on the right.
Proper implementation is vital to the success of any new performance management
system. Lack of resolve or building unrealistic expectations can mean the show
is over before it begins.
| The Natural Reaction |
As with any initiative, expect those affected to resist the change. It’s a natural
reaction. People are suspicious of the unknown. Skepticism is particularly high
in organizations that have had failed initiatives in the past. |
| The Perfect System |
Corporate characteristics vary form organization to organization, making a
flawless, “universal” system unrealistic. Positioning the system with
hyperbole or exaggerated benefits will only accelerates its downfall. |
| The Trial Balloon |
The “flip side” to the Perfect System is caused by a tentative
or probationary launch. Positioning the system as a “pilot program” or “trial balloon” can hamper acceptance and lead to failure. |
Appraiser Skills
Too many managers lack the skills to use appraisal for its educational and
motivational purposes. Typical appraiser errors are described below.
The chance to discover, educate, and motivate becomes, instead, a missed opportunity
or, at worst, an experience for the direct report that can be debilitating.
| One-Way Communication |
The appraisal session begins and ends with the manager merely telling employees
how they have performed. |
| Good News/Bad News |
The manger makes vague generalizations when performance is satisfactory.
“Good Work” and “Nice Job” may be pleasant to hear, but they
are too general to produce any educational or motivational value. |
| Good News/Bad News |
Negative feedback is quite another matter. Viewed by most manager’s as an
unpleasant task, it is either issued summarily or avoided completely.
With persistent problems, the managers anger escalates until an explosive
burst of “annoyance driven” feedback is delivered, producing resentment
on the part of the direct report. |
|
