performance management: the death of the … management: the death of the performance appraisal?...

© 2016. Archbright. All rights reserved10/20/2015

Performance Management: The Death of the Performance Appraisal?

Joseph Marth, PhD

Vice President, Business Solutions


Setting Performance Expectations

(Manager)

Performing (Employee)

Monitoring & Coaching (Manager)

Self-Assessment (Employee)

Reviewing Performance

(Manager)

Rewarding Performance

(Manager)

Job Evaluation

Performance Management ProcessJob

Description

Development Plan

Merit Matrix

PerformanceAppraisal

Documentation File(s)

“Feedback”

Manager training and calibration

Manager

Employee

HR


The Performance Management Paradox

• Managers and employees dislike (hate) the traditional Performance Appraisal

• The traditional Performance Appraisal fails to achieve everything it purports to achieve

• Most employees desire performance feedback

• Employees want to be recognized for high performance

• Employees want development opportunities and career advancement


Huh?


Traditional Performance Appraisal

• Yearly

• HR required (and maybe enforced)

• Form driven

• Measures the subjective “what” and maybe the subjective “how”

• Rating Scale: “Rank &

Yank!”


Be Nice to Penny


Performance Ratings

1 2 3 4 5

5 = Very High Performance

4 = High Performance

3 = Expected Performance

2 = Poor Performance

1 = Very Poor Performance


ABCDF

Performance Ratings –The Employee’s Reaction


Performance Ratings –The Employee’s Reaction

5 = “I’m getting promoted!”

4 = “I’m doing great.”

3 = “My boss thinks I do ‘C’ work….”

2 = “I better start looking for a new job!”

1 = “X#$@!, I’m getting fired!”


Jack Welch’s Approach: Rank & Yank!

Three groups:

Top 20% - Shower them

with praise

Middle 70% - Coach them

Bottom 10% - Fire them


You’re Fired!


The Traditional Approach is Dead

Here are just a few companies who’ve reappraised the Performance Appraisal:

• Accenture• Adobe• Bank of America• Cigna• Disney• GE!• Microsoft


What’s not Working?

• With a partner or triad, identify what you believe is either not working or frustrating with the traditional performance appraisal (5 minutes)

• Group Report-out (3 minutes)


What’s Not Working…

• According to various sources – including the Society for Human Resource Management (SHRM), Forbes, Corporate Executive Board (CEB) – here is what’s cited as not working or frustrating with the traditional performance appraisal:

– It’s incredibly time consuming

– No correlation of individual ratings and actual business results

– Recent neuroscience research shows PAs put the employee on the defensive and monetary performance incentives reduce creativity

– Objective appraisals are really subjective – ratings are highly susceptible to unconscious bias


What’s Not Working…

• (Continued)

– Manager and employee relationship is no longer 1:1

– Managers cannot effectively judge an entire year of work for an individual at one time

– Companies with a lot of high performers, the forced rankings eliminate great talent (in a period of talent shortages) and damage the company culture (creating disengagement)

– People are motivated by positive, constructive feedback and are threatened and defensive by negative feedback

– While managers are sometimes trained on how to deliver feedback, employees are almost never trained on how to receive feedback – especially poor feedback


What Motivates Employees?


Considerations for a New Approach

• Focus: A Culture of Accountability –

– Expectations – clarity and ability to describe the desired outcome

– Specificity – timelines and deadlines

– Ownership – one task, one owner

– Front-load Accountability

• Simplified process – continuous and real-time performance discussions

– Developmentally focused - learning from experience (and failures!)

– “Start-Stop-Continue” sessions

• Strength-based management: Focusing on strengths versus weaknesses


Considerations for a New Approach

• Train managers to be leaders

– Selection/hiring, coaching, feedback, HR law compliance

– Unconscious bias awareness and multicultural knowledge

• Train employees on how to receive feedback, in addition to giving feedback

• Embrace Covey’s 5th Habit: “Seek First To Understand, Then To Be Understood”

• Provide a cultural framework and a set of company “Values” to work from

• Be wary of Pay-for-Performance programs


Implications for L&OD

• With a partner or triad, identify what you believe are the Learning and Organization Development implications to this new approach? (5 minutes)

• Group Report-out (3 minutes)


…Or is it??

So, The Traditional Approach is Dead…


Questions & Answers


Thank You!

Presenter Information:

Joseph Marth, PhD | Vice President, Business Solutions

[email protected] | 206.664.7165

Member Services Information:

Tracy Sigmon | Manager of Sales & Service

[email protected] | 206.329.1120

mailto:[email protected]

mailto:[email protected]

performance management: the death of the … management: the death of the performance appraisal?...

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