how to conduct employee appraisals

Can Be Deceptive

Employee Appraisal Scores

Goals R M

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An Introduction

The one positive thing recession has done for organizations is shifting the focus to what really matters when analyzing employee performance.

“I think Steve is a great

guy.”

“Look at John’s sales performance report. It says he is doing a great job.”

IT DOESN’T WORK ANYMORE IT’S THE NEW WAY

More than ever organizations are looking to set S A T

and conduct performance appraisals honestly.

An Example

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Consider the case of three managers in the same department of an organization in Year 2007. The performance of the teams of these managers was at par with

marginal differences.

Ram Sonia Johnson

One of the youngest

managers, hails from

Generation Y

He is very optimistic

and looks for positive

side of the employees

He believes in

motivating by carrots

She is in the middle of

her career

She has high career

prospects in the

company and looking

for promotion in 1-2

years

She likes to play safe

He is an ex-government

employee

For him discipline and

loyalty come foremost

He cannot tolerate any

deviation from policies

and authorities

He believes in the stick


How they score their employees:

Ram

Name Scores

Meera 10

Scott 7

Sunil 8

Tim 6

Nita 9

Peterson 6

John 5

Rob 7

Mukesh 8

Sarah 9

Sonia

Name Scores

Amar 5

Steve 6

Phillip 5

Lacey 7

Edwards 5

Mary 6

Kate 7

Seema 6

Peter 8

Ramesh 5

Johnson

Name Scores

Mohan 7

Lada 6

Harris 5

Adam 4

Mike 6

Jackson 4

Reema 5

Sheela 4

Lucy 5

Olang 7

Here are the scores given by each of them to their team members on the scale 1- 10:

What Human Resources will see:


If HR looks at the employee scores and rank performance according to the scores obtained in the appraisals, the following picture will emerge:

Top Performers Mediocre Performers Bottom Performers

Meera 10 Rob 7 Lucy 5

Nita 9 Scott 7 Reema 5

Sarah 9 Lada 6 Harris 5

Mukesh 8 Peterson 6 John 5

Peter 8 Seema 6 Edwards 5

Sunil 8 Tim 6 Phillips 5

Mohan 7 Mike 6 Ramesh 5

Olang 7 Steve 6 Adam 4

Kate 7 Mary 6 Sheela 4

Lacey 7 Amar 5 Jackson 4


What Human Resources will Infer:

Most of the top performers are from Ram’s Team.

Most of the bottom performers are from Johnson’s Team.

The best of Sonia and Johnson are nowhere near Ram’s team members.

Ram has no bottom performer.

Is Johnson such an effective manager that he can drive results even with mediocre and bottom performers?

Is Ram performing because he has got all top performers?

The Real Questions should be:


Seeing as each manager’s team as a whole performed on par with one another, the real questions that should be asked are:

?

?


Observations on the Appraisal Tables:

» Employee appraisal scores as is doesn’t provide accurate information

» Clear existence of personal biases/nuances in scores

» Not prudent to make succession, compensation or pink-slip decisions

What can be done?

Relative Grading

Normalization of Appraisal Scores

A Couple of Solutions


There are two processes that can help remove the personal biases from appraisal scores, they are:

Thank You

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