Answer to Question #267584 in Management for Akhona Klanisi

Question

Years of research from neuroscientists and business school professors have found that the practice of annual performance reviews is flawed. The harshest critics of traditional performance reviews argue that numerical rankings and pay differentiation are perhaps the most damaging parts of the system. They are biased and arbitrary. This makes the traditional practices of performance management ineffective when it comes to boosting performance and motivation.

Write an essay in which you discuss the ways in which traditional performance management processes are flawed. Suggest ways that these flaws can be rectified by referring to appropriate research and theory. 

Answer 1

Performance management system has had a center stage of discussion as traditional performance management systems have proven to be ineffective, costly and more obsolete. Performance evaluation helps managers bring out the best from their employees and weed out any potential problems in a bid to ensure optimum productivity in labour resource for the organisation. It is with this strive that the management notices fault in traditional management systems which are discussed here below.

Misalignment of goals is a problem that is significantly degrades old performance appraisal means. In this level, organizations set their goals as do the employees of the institution set personal goals. It is observed that as employees strive to achieve their set goals, the organisation goals can be sacrificed. The employees are said to be poor and be eliminated. The system fails to recognise the effort by the employees to achieve personal goals and this is a flaw in the system that will require correction.

Old appraisal systems lacked constructive feedback because in most companies, there isn’t enough training, processes, or tools to help employees understand how to provide and receive constructive feedback. For instance, commenting poorly on a colleague trait will attract a defensive response and will hinder work. A constructive feedback should focus on strategy, process, and effort, instead of results. Most managers focus on results way too much in feedback which can totally not be the best of methods.

Another problem of traditional performance management systems is lack of timely feedback. This is where an employee get to know about his or her status once a year. The span of a year is so large and many things happened which may be unfortunate to the employee at the length of a year. A good feedback needs to be timely to that change can be realised in time. 

The following are remedies to traditional performance management systems :

1. Oust ineffective, traditional performance reviews. This allows for frequent assessment of employee behaviour and give room for change and ability of organisations to detect bad behaviours. It also allows for grading employees outside the normal distribution curve which is helpful new employees just catching up with the processes. 

2. Identify and praise exceptional talent. Employees with talent are different from routine workers and their performance do not fall within normal measurable aspects. Identify them and giving appreciating their contributions is key to motivate talented employees. 

3. Use objective and key results to effectively align individual objectives with corporate goals.

One of the most efficient ways to improve performance and make it easier to manage is by linking individual’s contributions to the highest company priorities. 

4. Develop a continuous feedback loop.

To exchange feedback on performance regularly, you must communicate with your people on a weekly basis. Part of this exchange can be a weekly check-in. Weekly employee progress reports are also a great way to keep the lines of communication open.

5. Turn your managers into coaches.

All managers should be focused on improving their employees’ strengths through coaching.

6. Develop an effective way to measure success.

Once you’ve replaced the annual review with a continuous approach to performance management, you’ll still realise that early feedback is critical in bringing instant change.