How Does Informal Gossip Affect Performance Reviews and Employee Morale?

Influence of Informal Grapevine on Performance Appraisals

I have been a regular reader of almost all the posts on citehr.com. I was reading a post by a senior on performance appraisal, and a concern clicked regarding the appraisal feedback process.

Having worked in various industries, I have observed a common trend where informal grapevine significantly influences employee appraisals. People discuss issues or behavior concerning the appraisee, but rarely communicate directly with the individual affected.

I initiated a feedback exercise and noticed that many superiors, including seniors, struggle to deliver feedback to employees effectively, regardless of whether they have data points. This lack of constructive feedback often leads to attrition, making it challenging for individuals to showcase their capabilities when surrounded by closed ears. For instance, we encountered a scenario where a salesperson's performance was impacted by personal issues at home. When she showed signs of improvement, it was attributed to market conditions rather than her efforts.

Addressing Perception-Driven Feedback Challenges

How can organizations address such perception-driven feedback challenges?

I look forward to your suggestions.

Best regards,
Kriti

You have raised a valid point here. I completely agree with the fact that feedback can be biased, thus putting a dent in the whole appraisal system. Here is the thing we must consider: the appraisal system never takes into account the feedback of only one person towards another. It is, in fact, a culmination of the overall assessment of a given candidate as judged by:

- Tangible/intangible results achieved by the subject.
- The perspective association of the subject with the given analytics.

As for the feedback received for the salesperson, it is entirely up to HR to sort it out. If you think that the credit for her hard work is being overshadowed by the trivial reason of the improvement in the market scenario, you need to refine your feedback system and add a point that judges a candidate based on two different market situations.

Moreover, you can always propose to change the format of the feedback system. For smaller organizations, I always insist that the feedback forms should never have open-ended questions but rather use forced-choice methods with justifications.

Regards,

Performance Management System Challenges

If the proper Performance Management System (PMS) is not well-defined, or if it is well-defined but not well-instituted, then problems of this kind arise. I have written in scores of past posts that PMS is not child's play. Defining measures of performance is very serious business.

When HR professionals spend a few years in their profession, they start considering that they have mastered all facets of HR. This forum is replete with posts by a few seniors. At times, I have intervened and debunked their myths. However, I cannot do this forever.

In today's world, perceptions have no role to play. Nevertheless, in many places, an organization's leadership is also at fault. Because of their financial muscle power, they try to muzzle their subordinates. In return, they get surrounded by flunkies. This is where performance replaces perception.

Thanks,

Dinesh V Divekar

Try the face-to-face appraisal system, preferably with a requirement that both the reviewer and the employee must sign the form at the end. Maybe the reviewer can have the option to add a few comments confidentially later. It is one of the PMS systems that can work better. I have tried it and felt it has good points. The only thing is, things will be horribly difficult for the first 2-3 years when you implement the procedure in a unionized shop-floor atmosphere.

Cheers,
Ganesh