Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Annual performance evaluations
1. Annual performance evaluations
Each year this hated event occurs. Supervisors and managers are aware that they will
have to do annual performance reviews for their staff. Every now and again the process
or the paperwork will change. It will either be a small change or a completely different
system. No matter how it changes, it still attracts negative feelings from both the receiver
and the giver. Each year the supervisors and managers have to have a performance
discussion with their direct reports and complete the paperwork. It is a time consuming
and emotionally draining process that serves no practical purpose. The costs associated
with annual performance reviews are lost forever.
The problem with this process is that there is very little evidence to show that this annual
event has any positive effect on people's performance. And if there is no change in
performance, why do we do them? Common sense plus a bit of experience tells us that an
isolated annual event such as this is unlikely to deliver a positive outcome. The goals of
the performance review is to provide people with feedback on their performance and
compare that with the expectations of the job. It exists to provide a forum for discussions
on performance.
Having these goals is commendable. However in nearly every single case a performance
review, no matter how well it is done, no matter what the intentions of the participants,
no matter the skill of the manager or supervisor, will not achieve these goals. Positive
feedback has got a limited shelf life which is considerably shorter that the interval
between annual reviews.
W Edwards Deming commented that annual appraisals sometimes took six months for
both parties to recover from the effects.
The question is, "Why do them?"
Performance reviews are carried out because the goals are worthwhile and it is
fashionable to do them. Everybody understands that an annual event does not change
performance. Yet, we persist in this painful process knowing full well that the only way
to change performance is constant coaching on-the-job.
So why we create resentment in managers, supervisors and staff on an annual basis I will
never know. In any other environment, consider the use of feedback once a year. Imagine
playing golf, tennis or any other sport and only getting one feedback event during the
whole year. Frankly, we wouldn't bother playing the sport.
Some business realize that the annual appraisal is a waste of time, money and effort, so
they compound their mistake and double their costs by having them every six months!
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performance appraisal.