It is true that reviews of this type can be misused or abused by both the manager and employee for that matter. For reviews to work there must be a number of key components in any review program.
All participants must at least respect and understand the process. They must understand their roles; what they are responsible for and ultimately agree on the objectives. It is the company's responsibility to clearly define the methodology and the value to both company and employee.
So, let's take a look at the key reasons for committing to a performance review process in your company.
Goals/Targets: In any vibrant company or personal career, goals or targets are essential. They become the "road trip" plan; the individual steps required to meet the needs of the participants. Since an effective review should be based on mutually agreed upon goals, they then inherently bring both order and vision. They should be attainable and financially supported. Think of this as a tree structure. The sum total of all individual goals should smoothly total the company's requirements and the employees' needs to achieve them.
Analysis: As with all enterprises, success is simply not the determination that you either you met or missed your objectives. Reviews provide the ability to analyze the reasons for individual performances. The details identify what is working for you as well as issues that need to be dealt with via modification, training, elimination and so on. From an employee perspective, it provides an opportunity to gain visibility, determine training needs and monitor career decisions. It is quite critical though that the analysis be impartial, factual and as much as possible, indisputable. Credibility is the cornerstone of this step.
Development: Reviews help to identify the developmental needs of most organizations on two levels; current deficiencies and future skill needs. The review process also lends itself to an honest discussion of both. Performance reviews by their nature highlight strengths and weaknesses which can become the basis for a specific developmental plan. Highlighted strengths can also identify future promotional candidates. Overall, this information can provide a window into the actual abilities and skills of your entire group.
Bonding: Although a somewhat unconventional thought, positive peer bonding could result if performance reviews are required by all employees, in effect creating an even playing field. As such, all employees share the same process. If the review process is deemed by them to be fair, helpful and a positive aspect of their job, they will feel like they are all in it together.
The more you can ensure that performance reviews are specific and geared solely towards the individual the more effective they will be. Do not cut and paste reviews. You will be falling short of your responsibility and your employee will see it coming a mile away!
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