The Business Doctor

'eradicating the Mad Management Virus'

Tuesday, 13 July 2010

Have a Cup of Tea Instead...



I just had to join in on a CMI conversation yesterday on Performance Appraisals and their use in companies. Well you can already guess that I do not favour them that much! Why? Well I have dealt with the consequences of "Appraisals' 'Performance Reviews' culture for over 20 years now, both in Public and Private organisations as an academic and change agent (sorry not sure what that means ‘change agent’, but trying to avoid the word Consultant). They are an un-mitigating disaster in organisations, both private and public sectors. Indeed, in my time at Glamorgan University I have avoided being appraised for the whole 6 years there…. Now that takes some doing!

They are like most academic theories, wonderful on paper and as a set of instructions, but hopeless in real life practice. Indeed, if the world was neat, ordered, uniform, and staff cogs in the machine world, with perfect information and objectivity; they would be perfect, just the answer to all the mess we have in our companies created by our employees, as detailed above.

Indeed, it was Demming in the 1980's who called Appraisals the 'number one disease in USA Companies' adding that they were the 'Sterile paper chase' causing untold damage to staff morale and performance. I would add here that in my view that is a bit extreme, but they (Performance Reviews) are rarely completed correctly and always have unintended consequences’. They are also a clear sign that managers are out of touch, relying on HR ‘systems’ to help and therefore not leading very effectively.

You also have to consider the costs directly associated to the collection and management of these reviews, add in at the same time the problem of truly understanding how, what, why, when etc. the employee carries out his/her function. Then throw into the mix this thing called ‘subjectivity’ in human interaction and we have a huge potential for ‘issues’.
I suppose it comes down to the problem that if you have to be forced into doing these appraisals as part of your management, then perhaps you are in the wrong job!? Management is about people! Getting the best out of people, creating value through individual employees and allowing people to achieve outcomes (not output!) their way, within core values. If you truly lead people, then formalizing reviews such as these become impossible and each person will be different or messy as I put it. Never fitting into the neat little box, we call employees.

Its also interesting to ask, just how many managers actually know (any more) what, how, why etc the jobs need to be done? We have an idea of course, more so if we live the ‘Performance Review’ on a daily basis (i.e. talk to staff, support and facilitate help) and not rely on a yearly formal meet and if we did that, we would not have time for the PR’s thing, as we would be too busy leading the company.

Is this a bit strong? Sorry of if it is, but I have seen so much nonsense in companies with Performance Reviews or PRP, or Appraisals being just one of the big ones…

I am sure Performance Reviews, Appraisals, will soon go the way of the ‘Targets’ culture in Policing….out!

If you are still not convinced then just ask one question at the Appraisal “Why should you be led by me?” …then sit back and breath in the reply, then go and have a cup of tea together....
Cheers Paul

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