Dear Boss,
In one of my previous letters, I briefly mentioned that we conduct Performance Appraisals merely for the sake of doing them, and discussed what needs to change. I can confidently say that the current outputs of these appraisals will never align with your expectations. It is worth explaining this in more detail...
Building Belief and Ownership in the Process
The entire company must believe in this process. Our Performance Appraisal System (PAS) loses its significance before it even begins, simply because our managers go through the motions—or rather, because they believe it serves no real purpose.The Strategic Importance of Employee Involvement
You are not involving the employees. Include the employees in this process. Explain exactly what you want to achieve and what your objectives are. Let them write their own goals and criteria (while assisting them in defining them). Remember, the person who knows the job best is the one doing it. Subsequently, department managers and Human Resources will make the necessary adjustments.Overcoming Communication Barriers for Effective Feedback
PAS should not commence before addressing communication issues. When conducting appraisals, our managers must accurately explain what their subordinates are doing well and what needs to be done in areas where performance is lacking. Of course, they should not only speak but also listen intently to the person being evaluated. While giving feedback, one must not forget to receive it as well. However, as you are well aware, some of our managers struggle with their listening skills. Without addressing these communication gaps, achieving the desired success in PAS will be difficult. Furthermore, some of our managers starting a conversation by saying, "Your output is mediocre," or "You are very weak in this area," serves no purpose other than alienating the employees.
Defining Clear and Explanatory Goals
Goals must be correctly defined and explanatory. For instance, if you believe a store manager has failed to reach the desired performance in "customer satisfaction orientation," you must be able to explain this clearly. Is there an increase in complaints that you previously identified and turned into targets? How many of these are truly store-sourced? (One must not overlook complaints arising from company procedures). Have training sessions been organized to address these complaints, and has the participation of store managers been ensured?Transparency in Utilizing Appraisal Results
The entire organization should be informed—and even debate—how the results of the Performance Appraisal will be utilized. For example, will a talent pool be created, and will high-performing employees be included in it? How will this be reflected in salaries and career development?If we wish to create high-performing individuals and units, and ultimately elevate our company's overall performance, we must approach this task with more care, planning, and a scientific perspective.
If we are only going to do it for the sake of doing it, or if it will yield no benefit, it is a waste of time and effort. If that is the case, it would be best to scrap the performance appraisal altogether...
I believe that doing things just to say they are done, or without proper planning, is contrary to our ambition of becoming a major international brand one day.
Respectfully,
