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How to Conduct Employee Appraisals
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How to Conduct Employee Appraisals

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More than ever organizations are looking to set SMART goals and conduct performance appraisals honestly. But does HONESTY itself gives accurate results?

More than ever organizations are looking to set SMART goals and conduct performance appraisals honestly. But does HONESTY itself gives accurate results?

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  • 1. Can Be Deceptive Employee Appraisal Scores
  • 2. GoalsRM Copyright 2013 | Saigun Technologies Pvt. Ltd. 2 An Introduction The one positive thing recession has done for organizations is shifting the focus to what really matters when analyzing employee performance. “I think Steve is a great guy.” “Look at John’s sales performance report. It says he is doing a great job.” IT DOESN’T WORK ANYMORE IT’S THE NEW WAY More than ever organizations are looking to set S A T and conduct performance appraisals honestly.
  • 3. An Example 3Copyright 2013 | Saigun Technologies Pvt. Ltd. Consider the case of three managers in the same department of an organization in Year 2007. The performance of the teams of these managers was at par with marginal differences. Ram Sonia Johnson  One of the youngest managers, hails from Generation Y  He is very optimistic and looks for positive side of the employees  He believes in motivating by carrots  She is in the middle of her career  She has high career prospects in the company and looking for promotion in 1-2 years  She likes to play safe  He is an ex-government employee  For him discipline and loyalty come foremost  He cannot tolerate any deviation from policies and authorities  He believes in the stick
  • 4. Copyright 2013 | Saigun Technologies Pvt. Ltd. 4 How they score their employees: Ram Name Scores Meera 10 Scott 7 Sunil 8 Tim 6 Nita 9 Peterson 6 John 5 Rob 7 Mukesh 8 Sarah 9 Sonia Name Scores Amar 5 Steve 6 Phillip 5 Lacey 7 Edwards 5 Mary 6 Kate 7 Seema 6 Peter 8 Ramesh 5 Johnson Name Scores Mohan 7 Lada 6 Harris 5 Adam 4 Mike 6 Jackson 4 Reema 5 Sheela 4 Lucy 5 Olang 7 Here are the scores given by each of them to their team members on the scale 1- 10:
  • 5. What Human Resources will see: 5Copyright 2013 | Saigun Technologies Pvt. Ltd. If HR looks at the employee scores and rank performance according to the scores obtained in the appraisals, the following picture will emerge: Top Performers Mediocre Performers Bottom Performers Meera 10 Rob 7 Lucy 5 Nita 9 Scott 7 Reema 5 Sarah 9 Lada 6 Harris 5 Mukesh 8 Peterson 6 John 5 Peter 8 Seema 6 Edwards 5 Sunil 8 Tim 6 Phillips 5 Mohan 7 Mike 6 Ramesh 5 Olang 7 Steve 6 Adam 4 Kate 7 Mary 6 Sheela 4 Lacey 7 Amar 5 Jackson 4
  • 6. Copyright 2013 | Saigun Technologies Pvt. Ltd. 6 What Human Resources will Infer:  Most of the top performers are from Ram’s Team.  Most of the bottom performers are from Johnson’s Team.  The best of Sonia and Johnson are nowhere near Ram’s team members.  Ram has no bottom performer.
  • 7. Is Johnson such an effective manager that he can drive results even with mediocre and bottom performers? Is Ram performing because he has got all top performers? The Real Questions should be: 7Copyright 2013 | Saigun Technologies Pvt. Ltd. Seeing as each manager’s team as a whole performed on par with one another, the real questions that should be asked are: ? ?
  • 8. Copyright 2013 | Saigun Technologies Pvt. Ltd. 8 Observations on the Appraisal Tables: » Employee appraisal scores as is doesn’t provide accurate information » Clear existence of personal biases/nuances in scores » Not prudent to make succession, compensation or pink-slip decisions What can be done?
  • 9. Relative Grading Normalization of Appraisal Scores A Couple of Solutions 9Copyright 2013 | Saigun Technologies Pvt. Ltd. There are two processes that can help remove the personal biases from appraisal scores, they are:
  • 10. Thank You Copyright 2013 | Saigun Technologies Pvt. Ltd. www.empxtrack.com