Why Performance Appraisals don’t work?

Updated: Oct 18, 2018 UTC
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Most of the corporate believe that they should go for the system of performance appraisals and reviews. Though, more often we fail to get the required time and we tend to question the real value of the whole process. Even the employees don’t like the process of Performance appraisal much; it has become kind of just an evaluation system rather than a constructive evaluation process.

You can go and try all sorts of formulas for Performance appraisals but they will work only if they are applied thereon completely. You can go for 360 reviews in which employees, employers and co-workers all review each another. You may get direct reviews, with feedbacks from the supervisors on the co-workers. You can even try a review cycle where you can ask the people to evaluate themselves along with the comments from their supervisors attached.

There are many other formulas that you can apply to set up the performance appraisal system in your organization, however there are several reasons that your system doesn’t work in the organization. Here are some of the probable reasons because of which the performance appraisals fail in most of the corporate.

Time consuming: If for example, one manager has around 10 direct reports, the leader needs at least twenty hours to prepare for their reviews, forget their feedback time. If you are working in a smaller company, taking out this much time is not always possible.

Reluctant to Honesty: In most of the organizations, if you talk to the leaders for giving the feedback, they tend to give it in a way that the person doesn’t feel offended. We feel a little reluctant to give direct and honest feedback which is another hindrance in the success of performance appraisals.

It’s a wastage of time to talk about performance once in a year: When we are working daily and we are getting our tasks on the daily or weekly basis to submit with perfection, how can one expect to give an honest feedback when you are sitting only once in a year. Even half yearly performance appraisal system may not give you the desired results.

No Follow-ups:  Even if the reporting manager spends some time thinking about the potential improvements in performance, they don’t specify the exact deadline for the next steps to be taken. Most of the times, it is seen that the reports are put away once they are done and are rarely looked back at. It may get open only when the next appraisal is due which clearly doesn’t fulfill the purpose of performance appraisals.  

Follow-up training: The HR professionals need to be very careful about the trainings to the supervisors to conduct the effective performance appraisals in the organization. It is very important that the reporting managers understand the value and importance of the whole process and prepare the reviews and upcoming action plan accordingly. So, here comes the role of HR professional to make a strong base of managers to have an effective result of performance appraisals.

Meaningless Goals: Over a period of one year, a lot of things change, people change as well as the business needs. Goals of the employees need to remain useful and relevant. The employees need clearer, more meaningful and up-to-date objectives to achieve well. Setting such significant goals only once in a year may not work. The individual and company goals have to be bendable to congregate the ever-evolving requirements of the contemporary business world.

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