Performance Management process... is it so difficult?

Author: Samruddhi Mulye

I’d wonder why few things in HR are treated differently from the rest.... so like generating payroll or organising an event for HR is ‘by-the-way’... Performance #Appraisals become a very serious job. It draws complete focus and attention from all the employees and to a large extent the company’s management as well. We’d think why getting people perform is at times so difficult or also an employee to deliver set targets does not garner complete focus and determination.  After all appraisal in true sense is the result of all the hard-work...something that gets tabulated in a matrix... that brackets your performance into terms like – ‘outstanding’, ‘very good’, ‘average’ & ‘poor’. So what makes appraisals so important and special – it’s the money that gets tagged along with it that makes #appraisals so important. The struggle is to get highest hike. Why is an ‘MBA program’ into an elite or premier I institute or some training program for ‘technological advancement’ or a ‘holiday – with – family’ and may be an opportunity to work in ‘different geography or build an enterprise for the company in an unchartered territory’ not that important or does not seem to be a great reward for an employee! There is money involved in this as well. The organisation is investing in the employee, working towards building a leader in you.

There is only one answer to this – it is the ‘culture’ that we have shaped. It is extensively focused on direct monetary rewards because we have chosen to shape it that way. .. we have failed in making employees see the bigger picture and a better tomorrow.

So here’s something I went through. This is year 2003 [I was about four years in #HR career by then]... and not getting into specifics of company name, industry or employee details... but just the crux and my learnings from this incident. Typical ‘Open Performance Appraisal’ system. With KRA’s that were set last year... you guessed it right, not reviewed through the year!  So, here’s the outcome first... the #appraisal letters are handed over to a set of employees [there were unions prevalent that time].  The increments given to these people were less compared to some other employees, probably the lowest in the grid. So even if we’d say that compensation related information should not be shared [else management will take strict action...!] – the discussion is bound to happen. Some happy expression... some sad.

Therefore the obvious questions from these people were ‘why such a low increment?’  The management anticipated some questions but the force with which it came was not anticipated. The increments were decided with no definite data points and rationale so again the answers to ‘why’ weren’t readily available.  The responses from the management were vague. Event / circumstances specific answers were given. For which there were counter reactions from the employees. In all the entire exercise was unplanned and the process made its flaws and fissures visible to all. All the increment letters given were retracted. Fresh letters issued with obviously different figures and then much expected phenomenal attrition. The Management cuts a sorry figure.

So, in all a simple exercise turned out to be a night mare of sorts for the organisation. While, many years have gone by... things have changed and improved for better but some basic learnings.. we never seem to memorise and practice about Performance Management... though I carry them with me wherever I go and whoever I meet to explain... it isn’t a success always but it is my strong conviction that – Performance can be managed only through culture and only Culture can drive performance. You do not need an HRIS or process with a manual to achieve a flawless PMS [although must say technology does simply and organise life for everybody]. Only know and understand your objective, your goal on a broader and organisational level. The fractions to achieve the bigger picture will fall in to place steadily [which set targets right in beginning]. Secondly.... know your people; gauge their emotions... see their problems. Increments are obviously not based on these but it only helps you creating a different perspective of non-performance. Lastly, keep it simple... stay connected with your people, talk to them often. Communicate your vision, ideas. Let them respond. Keep talking to them about their performance. What you like about them and what you feel needs improvement. Let them know. 

Rest the mechanical steps will fall in place automatically...! Let the culture be performance driven and let performance talk about your organization's culture to the world outside.


Author

Samruddhi Mulye
PlugHR Pro


 

To Appraise Performance..don’t wait for year to get over!!!!

Whenever a manager over heard mere “Performance appraisal”,  you will be able to hear their groan out of stress. Many managers see Performance appraisal as nothing more than an empty, bureaucratic exercise  forced on them by HR. Even for appraisee (a subordinate) when he gets a meeting request from his boss for performance review discussion, he feels just yesterday he has written his goals which is promptly forgotten too and this discussion becomes more of a 'BAJATE RAHO' discussion for him.

 

More than 80% of staff feels that performance reviews are unnecessary and is a waste of time because of lack of efforts put in by managers in to the process. Lackadaisical attitude of management results in Employee apathy.

The sanctity of performance management system is to keep a tap on the achievement viz a viz goals set and to design competency development plan based on the performance review analysis. Regret to mention than this appraisal tool is just being used to identify A,B and C category and decide increment percentage which is too mostly influenced by key business drivers. The annual performance review discussions, if so happens, are not aligned with need assessments, thus barely adds value to them.

Here, we need to change the approach rather than the system. There are four ways I perceive, if adopted, the Trust in performance appraisal system will be restored and employees will find it more effective and generate the desired outcome.

 

 

First is to Keep it Simple, many managers dislike complexity of modus operandi of performance appraisal system and bureaucratic forms. Design a format which is simple to decipher & captures relevant data and focus on structural part of conducting review discussions with reduced stress element.

Second, Frequent Connect between Manager and his subordinate. It is no longer effective to meet your subordinate once or twice a year to discuss on performance appraisal. Frequent appraisal meetings will help to monitor on goals achievements and to keep check on relationship needs, growth needs, motivational needs & learning needs of your subordinate. Meeting once in a quarter or sometimes more frequent will save you from future peril of non achievements of targets and give a pat on a back for achievement & study the shortfalls when they are fresh in memory and  a employee can also express his feeling on his performance. Once or twice a year performance review meeting will force you to drop your criticism at him at once like a bomb, rather 'ZOR KA ZATKA DHERE SE' approach will be easier to swallow and leads to constructive conversation.

Third, Conversations focused on future. Annual appraisals often becomes ‘poker game’ where employees are being asked to lay their cards on the table first, so that managers can identify weaknesses and focus on actions require to improve those weaknesses. To conduct effective performance appraisal discussion, adopt ‘sandwich technique’ whereby, you open conversations highlighting notable achievements in recent times, followed by critical assessments and interactive discussion on areas of improvement and conclude the discussion with landing a hand to him to unleash hidden potentials and tips for learning and development.

Fourth, Self monitoring of performance & learning. Nowadays, modern Performance Appraisal tools track self performance ratings which has been perceived by most of the staff as a data gathering tool for counter arguments by managers. Hence they rate themselves high so that after negotiation they will be rated somewhere in mid range. Whereby, essence is to provide a honest rating for their own performance. By asking employees to keep a track on own performance and learning, write down their goals and keep a check on success and discoveries, the data generated out of it is not being used by managers to critically evaluate but to help each employees to take responsibility of their own performance.

In era of automation, we sometimes get caught in terminologies and having an online PMS module which runs once or twice a year is not at all an issue but this system will only help to capture data, it can not motivate, inspire and develop people. Hence, frequent feedback sessions on performance & creating self organized learning environment where people learn from this feedback meetings which takes place in corridor, lifts or across the coffee. 

Author

Paras Khatri

Paras, born & brought up in city of dreams. A human Resource pro and a believer that having an active presence on social media will not only align you with professionals across industry & domain experts but also a platform to share your thoughts with them, which influenced me to become a blogger. A traveler, who wants to explore world, meet people and walk over no mans land. You can follow him on twitter  @paraskhatri .