Why Do Performance Reviews Feel Negative When They're Meant for Growth? Let's Discuss!

Hi all,

Performance review in organizations must always be a hot issue. I was going through a case study in one of the magazines dealing with the same problem and felt like finding answers to some questions. Why is performance review always taken in a negative sense when it's meant for an individual's development? The performance appraisal is surely not for criticizing people, so why such a wrong approach? In most organizations, it's a yearly affair. Does it really serve the purpose? Do managers really not have time to meet with their team members and discuss their targets and performance in general? Your views would definitely help to think and analyze the system more clearly.

Waiting for your views...

Regards,
Sneha

Hi Sneha,

The actual aspect regarding Performance appraisal is as follows:

1. It is merely a compulsion that the form has to be filled out.
2. The individual is evaluated by their immediate senior, where politics play a significant role.
3. When you undergo a Performance appraisal, people tend to have a certain level of fear.
4. Some individuals rate everyone as neutral (5 on a rating scale of 1 to 10).

Those involved should be educated on the importance of performance appraisals, and the effectiveness should be thoroughly analyzed.

Performance reviews in organizations must always be a hot issue.

PR is a regulated development issue, but a lack of understanding, lack of training, or a poor attitude all contribute to the hot issue.

Why is a performance review always taken in a negative sense when it's meant for an individual's development?

- PR is treated as an evaluation tool when it is actually a development tool.
- PR as a concept is not properly sold to all people in the company.
- Most employees do 85% well in their job, but the boss aims at the 15% negatives.
- The bosses use value judgment terms (like bad performance) instead of descriptive terms for poor performance.
- Salary reviews are linked to PR, which should never be linked.
- Bosses are not trained enough in people management.

The performance appraisal is surely not for criticizing people, so why such a wrong approach?

- Lack of training of the managers in using PR.
- Bosses must use descriptive words in describing poor performance, not criticism.
- Every poor performance review must have an action plan for improvement; generally, this does not happen.

In most organizations, it's a yearly affair. Does it really serve the purpose?

- PR is a flexible development tool.
- Managers must use it accordingly: once a year for high flyers, for some it could be two times a year, and for some more frequently, as per the need.

Do managers really not have time to meet with their team members and discuss their targets and performance in general?

- Managers have a responsibility and are accountable for this.
- They must create time for this purpose.
- The managers set the target; hence, they have the responsibility for PR.
- PR will become more effective if the manager's incentive is linked to the team's performance.

Regards,

LEO LINGHAM

Thanks, Leo,

These answers will really help me to think in a better way. Probably I can implement them in a better manner when I join an organization in the future. But I would like to ask you, is there any organization doing PR in a different way and in true spirit? I would like to know more about various PR models applied across organizations. Can you please guide me on that or suggest some literature to find answers to my questions?

Regards,
Sneha

Hi Sneha,

If you ask for my opinion based on my experiential learning, I would say that the design of the performance review system is not at fault per se in most cases. However, the process of implementing the system at times is not thought through, due to which some of the implications you mentioned below are applicable. The negativity associated with performance reviews generally stems from the fact that they directly impact compensation, which is quite a sensitive issue. Factors such as internal disparity and relative ranking do contribute to generating negativity among people.

Regarding the frequency of reviews being conducted on a yearly basis, it's not that reviews are not taken generally; they are conducted periodically as and when required. However, in performance reviews, it becomes a formal process that needs to be documented. I hope this learning could be of some help to you.

Hi! I would like to share my views about performance evaluation. Actually, the main reason why we experienced resistance and negative feedback from our personnel to the extent of showing no interest and just taking for granted the answering of the given questions in the appraisal guide is because of the manner in which we manage the appraisal system. Probably, we are not consistent in the management of the system.

I think we should have a schedule and venue for administration, a policy on who will administer (for example, the department heads), retrieval date, processing time, feedback, then a deadline for submission to the top management, and finally, the Board of Trustees (BOT).

Have a nice day! ysabelmicaela04

Dear Leo,

The statement made regarding salary review being linked to performance review is incorrect. They should not be linked.

If performance review is not linked with salary review, what are the various criteria used for reviewing salaries?

I am currently working with an IT firm that has 40 employees, and I am in the process of setting up systems for this company. This information would be greatly appreciated.

Hoping to hear from you.

Asha

Performance Appraisal

Performance appraisal can be used for a number of purposes.

1. Performance appraisal is used as an improvement process tool. Here, you appraise the employee to determine the current:
- Strengths
- Weaknesses
- Skills
- Knowledge
- Attitude
- Abilities
- Competence
Etc., to determine what is needed to be done to improve the skills/knowledge, etc., of the employee so that the employee will show improved performance.

2. Performance appraisal is used as an assessment tool to tap/develop the potential of the employee for:
- Succession planning
- Career planning
- Promotions
Etc.

3. When it comes to salary review, only actual performance against criteria is used. If applicable, such as sales targets, etc. If no criteria have been set up at the start of the period, you have nothing to measure against. Also, salaries in India are guided by a number of factors such as:
- Cost of living index
- Inflation factor
- Location factor
- Company policy on salary increase guidelines
- Allocation of funds in the budgeting process
- Maximum/minimum guidelines
And then comes the merit increase. If you have set the performance standard criteria before the start of the period, then you apply the criteria for the merit increase. If there are no performance standard criteria, then the boss uses his/her gut feelings. That is the reason I made the statement, performance appraisal can be used provided there is standard criteria set before the period.

If you want, you may consider such factors, which are within the job scope, as:
- Project completion (timing)
- Project completion (quality)
- Customer satisfaction level
- Customer relations
- Workload management
- Time management
- Documentation
- Achieving milestones
- Initiatives on the job
- Cost savings
- Profit contribution
- Problem-solving
- Absenteeism
- People management
- Customer complaint handling
- Any exceptional achievements
Etc.

Hope this is useful to you.

Regards,

Leo Lingam

Performance Appraisal

Performance appraisal (PA) can be used for a number of purposes.

1. PA is used as an improvement process tool. Here, you appraise the employee to determine the current:

- strengths
- weaknesses
- skills
- knowledge
- attitude
- abilities
- competence
etc., to determine what is needed to improve the skills/knowledge of the employee so that the employee will show improved performance.

2. PA is used as an assessment tool to tap/develop the potential of the employee for:

- succession planning
- career planning
- promotions
etc.

3. When it comes to salary review, only actual performance against criteria is used, if applicable, such as sales targets, etc. If no criteria have been set up at the start of the period, you have nothing to measure against. Also, salaries in India are guided by a number of factors such as:

- cost of living index
- inflation factor
- location factor
- company policy on salary increase guidelines
- allocation of funds in the budgeting process
- maximum/minimum guidelines
and then comes the merit increase. If you have set the performance standard criteria before the start of the period, then you apply the criteria for the merit increase. If there are no performance standard criteria, then the boss uses his/her gut feelings. That is the reason I made the statement, PA can be used provided there is standard criteria set before the period.

If you want, you may consider such factors which are within the job scope, as:

- project completion (timing)
- project completion (quality)
- customer satisfaction level
- customer relations
- workload management
- time management
- documentation
- achieving milestones
- initiatives on the job
- cost savings
- profit contribution
- problem-solving
- absenteeism
- people management
- customer complaint handling
- any exceptional achievements
etc.

Hope this is useful to you.

Regards,

Leo Lingham

Thank you, Leo!

Do you have any copies of appraisal policies practiced or some sample policy models of appraisals? It would be a great help for me. I am looking for policies that outline when the appraisal is conducted, criteria for salary hikes, promotions, calculation methods, and more. Since I lack prior experience and am the only HR personnel in the organization, having such sample policy models will greatly assist me in carrying out my work.

Hi,

Can anyone tell me after a performance appraisal is done, is there a change in the salary? Who decides the salary hike - is it only the HR, or someone else? And who determines how much % to increase the salary by? After the performance review is completed, what is the whole procedure within the organization?

Thank you.

As usual, Leo gives detailed answers to queries. Thanks, Leo.

Asha, please try searching the web for the info. For example, I found this performance appraisals and sample appraisal form templates and 360-degree appraisals free tips, performance evaluation, employee evaluation tips at performance appraisal process - Google Search.

Have a nice day.

Simhan