{"id":515,"date":"2013-06-12T10:43:25","date_gmt":"2013-06-12T10:43:25","guid":{"rendered":"http:\/\/blog.synergita.com\/?p=515"},"modified":"2013-06-12T10:43:25","modified_gmt":"2013-06-12T10:43:25","slug":"future-of-performance-assessment","status":"publish","type":"post","link":"https:\/\/newtest.synergita.com\/blog\/future-of-performance-assessment\/","title":{"rendered":"The Future of Performance Assessment : From Evaluation to Dialogue"},"content":{"rendered":"

Performance appraisal and assessment has been a critical part of the HR practitioner\u2019s process repertoire for decades. The annual or semi annual performance appraisal cycle involving \u201cevidence-gathering\u201d and evaluation of past performance has been an administrative nightmare for HR and line managers, a necessary evil for top management and a feared morale-destroyer for most employees.<\/p>\n

The form and shape of performance appraisal<\/a> has evolved through the years, expanding its focus to take a more holistic view of \u201cperformance management\u201d whilst incorporating approaches such as Management by Objectives, Balanced Scorecard, Total Quality Management and so on. However, the fundamental philosophy of performance assessment has remained the same \u2013 focusing on past performance against agreed metrics. \u00a0Many thought leaders in the HR fraternity have questioned the value achieved by the traditional approach to performance appraisal, describing it as a new form of \u201cTaylorism\u201d and as leading to negative or counter-productive outcomes. Some organizations such as Adobe have gone so far as to abandon the traditional approach to performance appraisal and assessment.<\/p>\n

A Critique of Traditional Approaches to Performance Appraisal or Assessment<\/strong><\/p>\n

The traditional approach to performance appraisal as a kind of \u201cpost mortem\u201d of the employee\u2019s performance conducted by the line manager has been critiqued by several HR thought leaders. A summary of some of the key points of criticism is given below.<\/p>\n

1. Despite the advent of performance \u201cmanagement,\u201d most organizations still focus primarily on the appraisal step<\/span><\/em><\/h2>\n

The philosophy of performance management takes a holistic view by looking at the multiple stages of Performance Planning, Performance Feedback and Performance Assessment or Appraisal. However, in most organizations, the vast majority of the time and effort investment in performance management<\/a> continues to remain in the appraisal or assessment stage.<\/p>\n

2.\u00a0Performance feedback is often negative and one-sided, making employees focus more on \u201cfailures\u201d and development areas rather than \u201cstrengths.\u201d<\/em><\/span><\/h2>\n

Performance Feedback is often delivered to the employees in a rather \u201cpaternalistic\u201d manner where the assumption is that the line manager knows more about the employee\u2019s skills, abilities and performance than the employee himself. Feedback usually focuses on \u201cwhat was not done\u201d rather than on recognizing successes and carrying forward learnings.<\/p>\n

\u00a03.\u00a0Performance assessment is seen as an event focusing on affixing \u201cratings\u201d to employees and arbitrarily influencing compensation.<\/em><\/span><\/h2>\n

The performance assessment or appraisal stage is usually focused on \u201clabeling\u201d employees through performance ratings, which in turn influence compensation decisions. These ratings and consequent compensation or reward decisions are often perceived as unfair, lacking objectivity and transparency and prone to bias.<\/p>\n

4.\u00a0The positioning of the process increases employee defensiveness and limits honest dialogue.<\/em><\/span><\/h2>\n

The traditional performance management process is linked to rewards and compensation decisions. Hence, performance feedback and performance assessment discussions are often not constructive, open or positive. Employees shy away from having an honest discussion on their performance and enablers or disablers since they may fear that any sign of weakness may be thrown back at them while performance ratings are decided. Thus, most performance conversations tend to focus more on \u201cimpression management\u201d rather than being honest discussions on current and future performance.<\/p>\n

5.\u00a0The process focuses on the individual at the expense of team and organizational enablers of performance.<\/em><\/span><\/h2>\n

As the very nature of jobs and organizational relationships change in today\u2019s world, performance assessment that is purely individual-centric may become increasingly out of sync with organizational realities. Our work systems today are increasingly collaborative in nature with myriad interdependencies. Many system theorists also point out that the \u201csystem\u201d has far greater contribution to both individual and organizational performance. This aspect is often not taken into account in traditional individual-centric performance assessment processes.<\/p>\n

6.\u00a0The output of the process does not result in reliable talent decisions.<\/em><\/span><\/h2>\n

The impact of rater biases is often visible in performance ratings across organizations that usually do not sufficiently differentiate amongst employees or show skewed distributions. Thus, these biased or inaccurate ratings may not provide a true picture of the health of an organization\u2019s talent pool. Since many organizations use performance ratings as the foundation of critical decision-making in succession planning, compensation management, development planning etc., the quality and validity of these talent decisions is often impacted.<\/p>\n

The Future: Moving From Performance Assessment to Performance Enhancement<\/strong><\/p>\n

Changing workforce expectations and recent research on motivation and rewards theories challenge some of our fundamental assumptions about performance management. In this light, several critical levers have been proposed for performance management in the days to come.<\/p>\n

1.\u00a0Focusing on ongoing performance dialogue<\/em><\/span><\/h2>\n

The concept of annually set static goals may work well for certain jobs. However, for the vast majority of knowledge sector and service based jobs, goals are fluid and often unpredictable. Therefore, a key focus area will entail setting ongoing expectations and near-time goals as situations change. In order to operationalize this, the conversation between the line manager and the employee will move away from being a one-way, annual \u201cdownload\u201d of performance feedback to an ongoing year-round two-way dialogue that happens through frequent formal and informal conversations.<\/p>\n

Therefore, a key imperative is to build an organizational culture that shares, accepts and encourages feedback on an ongoing basis. At the same time, ongoing performance dialogue will focus not just on performance but also on an employee\u2019s all-round development and career aspirations. Training line managers on coaching and development and on having meaningful career conversations is, thus, likely to be a critical focus area for HR practitioners.<\/p>\n

2.\u00a0Greater employee engagement in the process<\/em><\/span><\/h2>\n

Traditional top-down approaches to performance management are unlikely to work in an increasingly \u201csocial\u201d environment. Many progressive organizations are engaging their teams and departments in translating the organization\u2019s goals into their own success criteria rather than \u201ccascading\u201d preset goals to them. Organizations are also experimenting with bottom-up approaches to performance planning, sometimes using social media tools such as Rypple.<\/p>\n

3.\u00a0Taking a systems approach to performance management<\/em><\/span><\/h2>\n

The notion of \u201cperformance\u201d often extends beyond the individual himself and is greatly impacted by the organization\u2019s culture, structure and processes. Also, traditional performance approaches take an overtly individualistic approach, overlooking the nature and value of team interactions. Thus, organizations will increasingly benefit from focusing on improving the \u201csystem\u201d itself rather than solely focusing on individual performance.<\/p>\n

4.\u00a0Delinking annual performance ratings from rewards<\/em><\/span><\/h2>\n

Performance ratings as the single most important driver of compensation and rewards decisions often results in biases and skewed ratings. Many management thinkers have proposed at least a partial decoupling of annual performance ratings and rewards.<\/p>\n

A system centered on ongoing performance dialogue will result in ongoing performance assessment and feedback as well. This could serve as a cumulative input into compensation and rewards decisions, thus minimizing the impact of biases such as the recency effect. This also eliminates performance and behavior \u201cspikes\u201d and \u201ctroughs\u201d that may occur due to the linkage of a singular, year-end performance rating to reward decisions.<\/p>\n

5.\u00a0New technology and process modifications<\/em><\/span><\/h2>\n

The emergence of new technologies provides immense possibilities for performance management. Electronic monitoring and ongoing reporting of performance provides employees with real-time feedback and analytics that they can act upon. Online employee-initiated multi-source feedback systems may become an increasingly relevant feedback input in a collaborative work environment. Social performance management platforms are also being adopted by many progressive organizations, which help in decentralizing and democratizing performance management and embedding it into the DNA of the organization.<\/p>\n

6.\u00a0Shifting the lens from the past to the future<\/em><\/span><\/h2>\n

The future of performance management is likely to be less of performance \u201cassessment\u201d or appraisal and much more of performance \u201cenhancement\u201d. In this context, management thinkers such as Samuel Culbert have proposed \u201cperformance previews\u201d rather than performance \u201creviews\u201d. In these performance \u201cpreviews,\u201d the boss-subordinate team will be evaluated as a unit thus creating a conducive environment for ongoing constructive performance dialogue. The focus of performance dialogue thus becomes \u201cHow can WE do better?\u201d rather than the one-sided \u201cHow can YOU do better?\u201d that is so familiar to us. This helps organizations play to employee\u2019s strengths rather than their weaknesses in work assignments and also helps keep the focus on enhancing future performance rather than just evaluating past performance. Thus \u201cfeedback\u201d systems are likely to be replaced by \u201cfeed forward\u201d systems.<\/p>\n

Traditional top-down, once a year approaches to performance assessment and appraisal may have no place in a world of unprecedented competitive pressures, flatter structures, leaner staffing levels collaborative work environments and empowered, decentralized teams. A system that is focused on looking back at past performance and assigning performance ratings in retrospect, will severely limit organizational agility as well as impact employee motivation. Sustained organizational performance is likely to be achieved in future through a holistic, year-round, development-centric process that focuses on developing the capabilities not just of individuals, but of wider teams and the organization itself.<\/p>\n

-By\u00a0Niranjana Harikumar<\/strong><\/p>\n

Niranjana Harikumar is an organizational development consultant who has consulted with several organizations in the areas of talent management, leadership development and employer brand management.<\/em><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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