In the last module we explored the challenges in hiring and promoting the best people. In this module we cover the challenges of assessing and measuring employee performance and giving feedback. In spite of literally thousands of studies and research papers on the subject of performance management, there is no magic bullet in terms of the ideas performance measurement approach, and there is a lot of dissatisfaction with the feedback experience. We recall a cartoon showing two people in a bar talking. One says to the other "The saddest words are 'what might have been.'" The other says "Really, I thought they were 'time for your annual performance appraisal.'" Post appraisal surveys of employees are not generally encouraging. In some surveys employees have indicated being more confused after the appraisal than before in terms of what is expected from them. Someone has likened the problems of developing an effective PA system to "measuring a jelly fish with an elastic band."
In addition to organizational problems such as the lack of leadership commitment (including failure to see the benefits of PA) and insufficient resources, there are challenges for the raters (especially if they are not well-trained). These include behavioral challenges such as leniency error, halo error, similarity error, low appraiser motivation, central tendency, inflationary pressures, inappropriate substitutes for performance, and attribution theory. In addition to rater bias, managers may lack training in interviewing skills, dislike face-to-face communications, and are not given enough time to properly prepare an appraisal and the appraisal interview.
Upon completion of this module, you should be able to:
A well-designed performance appraisal system has many advantages; for example, it can help an organization reach its goals (improved performance) and helps with personal development (improvement), motivation, and communication/feedback. The performance appraisal also provides a basis for judging the effectiveness of recruitment efforts and a basis to validate the selection process. Tom Coens and Mary Jenkins, in their book Abolishing Performance Appraisals, Why They Backfire and What to do Instead, describe six functional categories normally associated with the performance appraisal process: improvement, coaching and guidance, feedback and communications, compensation, staffing decisions and professional development, and termination and legal documentation. As mentioned in the latter point, performance documentation can also be very valuable in sustaining valid employee actions (including terminations), especially in an increasingly litigious society. With regard to motivation theory, employees need to know what is expected of them, how they will be measured, and the results of the measurement. Richer and Fay, in their book The Performance Imperative, Strategies for Enhancing Workforce Effectiveness (Jossey-Bass, 1995) point out the importance of measurement, that is, "What counts gets measured, what gets measured gets done, what gets done gets rewarded, and what gets rewarded counts."
This week your textbook chapter is devoted to performance management. Based on insights from the chapter and other sources and experiences, what three tips would you give a public manager in developing an effective performance appraisal system?
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