The Death of the Performance Appraisal – Redefining Performance Management

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  • Tom Strawn

    Re: Shifting Performance Management Model focus. It is my experience and observation that in best practice organizations the Performance Evaluation is both the last and first action of continuous PM. It is the “last” action as it is an evaluation of performance and results of coaching and development efforts during the evaluation cycle. At the same time, it is the “first” action taken to determine coaching focus and the individual’s IDP going forward.

    I like the “concept” of less competitiveness. However, while at HP some time ago, we extensively ranked and HP may still do so. We used assessment of “relative contribution” as the foundation of performance ranking decisions. To be sure, PM factors (competencies) were the framework for ranking discussions. However, an individual’s relative contribution re: results (specific examples) vs. others in comparable positions determined performance ranking. Of course, it is usually difficult to achieve great results without having strengths in applicable competencies? If an organization relies too much on competencies it may be conceding that managers really don’t know what an individual’s relative contribution is – which is really the core issue.

  • Excellent review and positioning. I would suggest one change, which would make your positioning stronger for this blog. Here it is. You start the 3rd paragraph with the definitional statement of, “Consider what performance management is designed to do…” and then answer it with the first point being to evaluate employees.

    Performance management is not about evaluating employees its about improving the business… otherwise ultimately there’s no reason for doing anything in the area. If you take that posture, then it’s even easier to make a case for the benefit of coaching versus rating.

    Rodney Brim

  • Josh,
    For some reason I missed this post but I’m glad to see its popularity drove it to your home page. I absolutely agree with you about the performance appraisal process. I’ve written a few posts on the issues with the annual employee review. Software companies that automate this process miss the boat on what really drives businesses. Many vendors cannot import data from business systems that measure employee performance on a daily basis. Most vendors now have functionality to let employees set development goals so at least they are addressing your concerns here.

    Here are 2 posts that look at the issue of performance appraisals:

    Transactional Performance is True Performance: http://grandmaslaw.com/?p=54

    10 things wrong with Focal/Anniversary Performance Reviews: Part 1 http://grandmaslaw.com/?p=38 and Part 2 http://grandmaslaw.com/?p=44

    Having said that, there are definitive benefits to goal-setting. Goal-setting, if done properly, has motivational effects whether or not the goals or aligned with corporate/department strategy. Goal management is the setting event for the behavior to occur. The trick of course, is to set the proper goals to promote effective behavior.

  • Adele Eberle

    Great tips Josh, i really want to study in deep Coaching & Development Model? How to implement this?