Conducting an effective performance review - includes related article - column

Conducting an effective performance review

Performance reviews come but once a year for most of us, but unfortunately, unlike a lot of other things that happen but once a year, they do not bring visions of sugarplums or eager anticipation.

Because most managers think of performance reviews as a perfunctory part of their job, they don't put much effort or time into the process. They don't recognize that the effectiveness of a performance review is in direct correlation to the amount of time they have spent nurturing, counseling, coaching and communicating with their employees throughout the year.

The performance review process that works is the one that is a summing up of what has been discussed and accomplished throughout the past six or 12 months, from the point of view of both the employee and the manager, and that encompasses the development of specific goals to be achieved in the next review cycle. The purpose of the review process is to give the employee the opportunity to concentrate on those areas that need to be further developed or enhanced.

In a random telephone survey of managers in the magazine publishing industry, 40 percent believed that the performance review process in their company was not worth the time to explain or discuss on the phone. Another 15 percent admitted that they "get through the process as quickly as possible," and normally use ratings of "average," "meets requirements," or "good" because they don't want to deal with the employee's emotions or disappointments. As one manager stated, "It's just a lot easier, takes less time, gets the job done, and gets those personnel people off my back." When questioned about how this approach affects performance problems, this same manager admitted that it didn't.

Unfortunately for this manager, performance reviews that don't address performance problems, but rather gloss over the employee's performance, will make it terribly difficult, if not impossible, to discipline effectively or terminate a poor performer when the time comes. And it invariably always does. No manager will admit to being willing to live with a mediocre or unacceptable performance for very long. And if he is, he won't be in management for very long.

Most performance problems result from one of three situations:

1. The employee doesn't have the skill necessary to do the job.

2. The employee isn't putting in the effort essential to perform the job at an acceptable level.

3. Factors beyond the employee's control are affecting the employee's ability to do the job--e.g., coworkers, the supervisor's attitude or management style, lack of communication, and so on.

If an employee doesn't have the basic knowledge, ability or technical expertise (skills) to do the job, he won't be capable of good performance.

If an employee is not motivated to do a good job even though he has the skills, he won't bring any effort to the job. Employees can't be forced to perform well. The key to performance is to create an environment in which they will want to do a good job.

If other factors are affecting an employee's performance, those factors can be either good or bad. For example, there might be staff shortages, equipment problems, or lack of management direction. Or, the company might be growing--meaning change is happening in a positive way, but so fast that the employee feels lost in the process. He wonders about his continuing value to the expanding company.

By conducting a thorough performance diagnosis rather than a performance review based on a single set of standards, a manager will be able to determine why an employee is not performing, rather than just knowing that he isn't performing and by how much. Once you can determine the reasons behind the poor performance, you will be able to develop ways to help the employee past the problems and on to more motivated performance behavior.

Some of the most successful performance review systems used in publishing include the employee's self diagnosis evaluation. The purpose is to include the employee in the process and to get his view on his performance. Self-evaluation questions might include the following:

* What questions or uncertainties do you have about the expectations or requirements of your position?

* What changes would you like to see in your present job that would help you increase your effectiveness?

* Are there any obstacles present in your work environment that need to be removed?

Including the employees in both the current and past performance review, as well as looking at developmental and educational needs for the future, will encourage them to be committed and to produce the results that they want--as well as the ones you want as their manager.

An effective performance review system should include the following:

1. Performance achievements completed by the manager and including the entire review period. This segment should reconstruct the responsibilities and goals thta were agreed upon at the beginning of the review period and describe in detail the extent to which these goals were achieved. It should also evaluate level of achievement versus the stated goals.

2. Performance profile, which includes specific factors or standards that are expected of any employee in the job. This might include analytical skills, teamwork, creativity, relationships with customers or outsiders, effectiveness (organization, meeting deadlines, initiative, planning, follow-through, etc.). There should be several rating choices--enough so that the manager and employee will believe in them and therefore be more apt to rate appropriately.

3. Summary sections, which identify performance strengths and accomplishments, identify areas of development and training, and evaluate the employee's overall performance since the last review.

4. Employee comments should be included; employees should be allowed to write their comments at the end of the review process--not during.

5. Signatures of the employee and manager should be on the forms for the sake of all parties.

Defusing the anxiety

Managers needn't lose sleep over doing performance reviews if they begin to see the process as one of sharing information and perceptions and developing conclusions for improvements in the future. Employees want to be involved in their reviews, and most will be honest and critical of their performance whengiven the opportunity to have input into the process.

It's up to the manager to take that critical assessment and put it to good use. There's only one way you can improve an employee's performance. That's by having the employee recognize for himself what his weakness or shortcoming are, having him see the value of improving, and making him want to do it for himself.

Performance diagnosis and review are an integral daily part of the manager's job. If you haven't had the necessary training to conduct performance reviews, you should get some. Developing expertise in this vital area will ensure that there will be no surprises for the employee or for you. It can save your company from a lawsuit and you from a lot of unnecessary frustration and emotional scenes with your employees. If you've developed performance plans, established goals and responsibilities, and actively communicated during the review period, your performance review is off to a good start and your employee won't be able to say, "I had no idea you weren't satisfied; I thought I was doing fine."

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