Problems That Occur With Performance Reviews

Unit 1 Individual Project #1

Presented in Partial Fulfillment

Of the Requirements for the Class

BUS 300 - Decision Making

by

Jerri L. Newton

AIU Online

June 6, 2007

Problems That Can Occur When Managers Complete Performance Reviews

A vast majority of most companies still carry out some form of employee performance appraisals. Most managers and employees generally dislike the performance appraisal process. The performance appraisal system has been a staple of business and public sector. Performance appraisals have become an almost universal element in management. (Law, 2007).

According to Scholtes (1998) (as cited in Law, 2007), the range of problems with performance appraisals is largely due to the fact that performance appraisal systems are based on a set of widely held, invalid assumptions. The following are taken as a given: reasonable and achievable work standards; work standards directly relevant to the business and its client; stable work systems capable of delivering the expected results; evaluations lead to improvements in individual performance; individual performance can be identified separate from system factors; and the employee has control over the results. (Scholtes, 1998, as cited in Law, 2007).

When managers complete performance reviews any number of problems can occur, starting with has the manager given the employee's overall performance enough time and thought to warrant a fair and objective review. (Godbehere, 2005). It is unfair and unproductive to assign credit or blame to an individual employee, unless management can determine whether an employee's variances were due to personal or systemic reasons. (Law, 2007).

Another problem that can occur is if the manager is prepared to cite specific examples of strength and weakness. (Godbehere, 2005). Many times managers are only prepared to go over "form letter" types of appraisals and hope that the employee will just sign on the dotted line. Managers should encourage performance improvements by identifying strengths and weakness and by providing motivation to their employee. This also gives the employee the opportunity to address key issues with the manager and the manager the time to interact with the employee, one-on-one, to evaluate their strengths, limitations, and growth potential.

The next problem that is commonly associated with performance appraisals is if the manager thought about how the employee accepts criticism, and is they able to tailor their deliver of the appraisal accordingly. (Godbehere, 2005). Managers should not verbally "beat-up" on the employee. No matter what comments a manager makes, they should be in as positive tone as possible. Not everyone can receive criticism with a smile. Some employee's will feel that the negative outweighs the positive, leaving the employee with a lingering bitterness that affects their work and relationships with other team members. (Allender, 1995).

The last problem (but not the last that could occur) I will discuss is the actual performance appraisal process. The basic tool and source of information