Basics of Human Resource Management: CASE 3

CASE 3; Performance appraisal

Continuing our findings with HRM, we have quickly come to topic of Performance appraisal. Our case start with real life horror story of employee which in the end turns into favor of employee, in other words as title of blog says “A Performance AppraisalHorror Story (With A Happy Ending)”.

Hero of our example, Jerry Bumgarner received his very first performance appraisal after been seven years into HR-career. While in his own mind he had been nothing more than excellent employee, when receiving negative feedback about his performance it crushed him to the point he never wanted to receive appraisal feedback ever. After feedback, he felt like he is total loser, and failure after years of success. Receiving negative feedback was so upsetting, that he was considering to leave his job and to move to work in another company. However, little he did know, that purpose of performance appraisal is not to bring employee emotionally down, but rather to point his/her weaknesses, that he/she haven’t realized earlier to improve on to maximize his output of work assignments. Thanks to HR director who knew he need to step up and layout a plan with supervisor and employee about goals, expectations and compensations of achievements. With this clear and well planned plan, employee was able to show his supervisor best of his work, which results win-win situation to all three parties, employer, employee and supervisor. (1)

So, what is this so called “Performance Appraisal? According to businessdictionary.com, definition of Performance appraisal is “process where manager examines and evaluates an employee’s work behavior by comparing it with preset standards, document findings and uses the results to provide valuable feedback to employee what improvements are needed and why.” Also, another task of Performance appraisal is to determine who needs what kind of training, and who will be promoted, demoted, retained or in worst case scenario to be fired. (2)

Performance appraisal includes (figure 7.1, Managing human resources, Gomez, Balking & Cardy, 2016, 233);

Identification; which means managers must identify and determine which areas of work should he/she be examining when measuring performance. The appraisal system must focus on relative characteristics that affects success of company, thus leaving out characteristic such as race, age or sex.

Measurement; This is the key part of appraisal system, where managers are reviewing results of employees based on their performance and conclude how “good” or “bad” it was. To keep it fair measurement and reviews must be consistent.

Management; Instead of taking into consideration only past-oriented activities, Appraisal must take future-oriented view of to encourage employees to achieve their potential in the company. This means, employees must be provided feedback and necessary coaching to achieve goals of not only employee but of company as well.

The uses of Performance Appraisal

As we know already, performance appraisals are periodic assessments of employees, to provide them feedback., and pointing out weaknesses, strengths and laying out necessary plan to improve performance of employees. So shortly, performance appraisal is to evaluate, develop, recognize and feedback the employee. Performance appraisal start with evaluating how employees have meet the goals and objectives set by their managers/supervisors, and if necessary by pointing out how the can improve from this point. While evaluation is to identify weaknesses, developing is more of working with weaknesses turning them into strengths. This can be achieved by providing employee necessary training session. For example, in Managing Human Resources (chapter 7, Gomez, & al, 2016, 231), manager George was having performance review with employee Estelle. As it was pointed out that Estelle’s poor ratings on technical aspects, such as filing paperwork, placing orders and keeping account information up-to-date. As she admits her weaknesses, she doesn’t see it to be necessary for her to go for training as it was suggested. Recognition is when employee is outstanding an is constantly in top five percent in their group. As a recognition, they might be assigned to management role and receive extra bonus. Appraisals can be useful when collecting employee feedback about their feelings towards employer and satisfaction of their career development.

Measuring performance and tools

How to measure employee’s performance then? It is not easy as it sounds. It is like school grading where you grade students by numbers from one to five or labels such as, excellent, good, average and poor. Grading need to be relevant on topic, and sometimes only grading is not enough, but explanation is need to be provided. Overall, no matter which grading system is used, it is difficult to express dimensions of performance grading. Thank you for era of digitalization that managers nowadays have various of appraisal formats from which to take into practice and use on performance appraisal. Appraisal formats are divided into two ways, by the type of judgement (relative or absolute) and by the focus of the measure (trait, behavior, or outcome). (chapter 7, Gomez, & al, 2016, 236).

Relative judgment appraisal system compare all employees into same ranking based on the job they are executing. Basically, it means comparing employees with one to another. This provides ranking among fellow employees from best to worst. However, this does not mean whoever is best, is best in actual rating, only compared to his fellow coworkers. (figure 7.3, Managing human resources, Gomez & al, 2016, 236)

In figure 7.3, there is three teams in compare, and each team member’s performance is rated from best to worst, also there is rating of “actual performance” in left graded from one to ten. In team 1, even though Marcos is evaluated as number one in his group, he gets only overall grade of seven from perfect performance. If we compare team 1 and team 2, we can see huge differences between number one of team 1 and team 2, Marcos and Jill. Jill is graded as ten, where Marcos is rated only for grade seven.

Absolute judgement, counterpart of relative judgement appraisal, is asking supervisors judgement on employee’s performance based on solely on performance standards. This means employees are not compared with one another, but each one’s performance is individually under review.

Conclusion

As we saw in our example case, “A Performance Appraisal Horror Story (With A Happy Ending)”, negative feedback is not always bad but, vice versa, in my opinion if negative feedback is justified, the more it is important. Because usually as a human being we are self-centered, and we do not often see our mistakes and behavior. I have worked in few companies, as an employee and as an employer. I have never received feedback, but I have been giving feedback to our employees. All employees do not take negative feedback lightly, and might be crushing to them in their little perfect world they have created for themselves in their mind. I have learned a lot, how to gently give negative feedback, with first providing good feedback, but also pointing out they have room for more improvement, thus achieving unprecedented results. It is all out there within their fingertips, out there for them to take it and make something of their own. As I always tell my customers and coworkers, don’t focus too much on positive feedback, because it might blind you, and don’t focus negatively in negative feedback, as it will suffocate your ability to improve. Rather take the feedback, work on it, punch it in the face, re-format it, and make it part of your trait. It is like going in the gym, you will not get results only by going once in a gym, but results are achieved overtime.