Hello and welcome to this month’s dilemma:
The challenge
A reader contacted me to talk about the impact of introducing a performance management system into her company a year ago. The process is not linked directly to reward at this point in time, although there are plans to do so in future.
As a result, it’s important that all concerned have confidence in the credibility, consistency and accuracy of performance feedback and ratings.
But following the year end reviews for 2011/12, a number of differences of opinion emerged between managers and individuals, which centred on consistency. Two employees complained about being “picked on” by their manager.
Several other staff members have also disputed their ratings and feedback, claiming that managers are using the system to give credit to their “favourites”.
The organisation’s leader is obviously concerned and wants to review the system in order to find a way to solve these emerging problems before its credibility is completely destroyed.
My response
It’s often tricky to maintain the credibility of established systems, let alone newly implemented ones, and so it’s not surprising that the company is experiencing problems. For most employers, demonstrating the accuracy of individual performance reviews and ratings is something that has to be constantly reinforced.
Here are some ideas about how to do this:
1 Ensure that managers know the difference between a performance review and a performance rating
In terms of reviews, managers might wish to evaluate a number of different aspects of performance such as giving an individual feedback on their skillset, their ability to apply knowledge, or how they do their work.
A performance rating, on the other hand, is based on their contribution or whether they have achieved pre-determined objectives or specific tasks that are linked to business objectives.
2. Clarify the difference between objective and subjective feedback
Make certain that managers understand the difference between subjective and objective feedback. Objective feedback is about facts, data and evidenced information. Subjective feedback tends to be based more on relationships and individual opinion.
A lot of performance management systems lose credibility because too many managers rate their staff based on subjective criteria and not everyone agrees with their opinion.
3. Define psychological types
Managers benefit from being aware of their own and others different psychological types. This understanding is vital as people respond differently to differing styles of giving and receiving feedback depending on their individual needs.
4. Focus on conflict resolution
Managers need to understand their own conflict resolution style and be aware of when and how to prevent, identify and resolve conflicts.
5. Ensure effective quality control
A credible quality control system must be in evidence. Such a system can include:
- Ensuring that HR or third party managers undertake independent reviews of findings
- Requiring a second signature on all documents and/or that senior managers confirm results
- Introducing focus groups that can anonymously challenge results and ratings on behalf of both teams and/or individuals.
While some of these ideas may be time-consuming, they will prove worthwhile if individual or legal challenges are eliminated.
6. Sell the benefits
Sell the benefits of measuring and rewarding performance and celebrate success when the performance management system works, making it clear that the objective is to boost performance and results.
Conversely, be careful not to let the system become identified with a hire-and-fire mentality. If you have big performance issues, sort them out separately and immediately, but not through the performance management system. It should be seen as a tool to improve performance rather than to get rid of people.
7. Provide clear guidance
Make sure that your guidance, policies and procedures are simple and transparent so that everyone can understand and sign up to them.
Christina Lattimer is director and owner of HR and leadership development consultancy, People Discovery.
If you have an HR problem and don’t know what to do, send her an email to Christina’sCounsel@peoplediscovery.co.uk. All problems will be treated in the strictest confidence and, if published, will be made suitably anonymous.
