The Performance Review Process in HR

Review the video “ The Performance Review Process ” then answer the following two questions using the question and answer (Q&A) format; in other words, include the original question along with your response.

Within your post, support your responses with information from at least one peer-reviewed/scholarly source (not older than 3-5 years) from CSU-Global online library or the Internet, and provide the full citation at the end. Use APA guidelines to format your references.

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1. What are the principal components of an effective performance appraisal system?

2. How can a performance appraisal system effectively address employee-related challenges in the workplace such as performance problems, unsatisfactory conduct, and/or violations of policies?

This is the video transcript of video

– Suppose you’re an employee who’s just been told by your boss that it’s time for your annual review. Suddenly, you’re overcome with a deep sense of dread and foreboding. You think you’ve had a pretty good year but suppose the boss doesn’t see things the way you do.More importantly, how will the boss’s judgment affect the pay raise you’re expecting? If pay for performance means anything, it means that there needs to be some judgment by a person in authority about your performance so they can tie that judgment to decisions about pay.

So I want to help you understand how organizations link pay to performance through performance reviews. In the US, about 90% of all organizations use performance reviews as a basis for pay decisions yet over the last decade, there have been vast changes in how reviews are done and how frequently they are done. At a general level, reviews serve as a basis for management decisions such as whom to promote, whom to let go or how to make adjustments in pay and to provide constructive feedback to help employees improve their performance.

Some organizations make performance reviews an annual event. However, when they do that, it’s impossible to separate discussions about professional growth and development from discussions about pay adjustments. Employees tend to focus on the pay adjustments and often get defensive when the boss says anything negative about their performance. Today, we recognize that performance reviews for pay purposes are part of a larger, more frequent process of performance management.

Just like coaching in sports, the objective of performance management is to offer feedback about your performance to help you get better.Many companies have moved to more frequent check-ins, daily, weekly or monthly so that there are no surprises. If there are no surprises during employees’ pay reviews then there’s little reason to get defensive. The discussion can focus exclusively on the reasons for the decision about your pay.

There are practical advantages for managers to provide more frequent feedback including higher employee retention, higher customer satisfaction, higher levels of employee commitment and increased profits. Okay, by now you’re probably asking yourself, if I’m the boss,what’s the best format for rating performance? Should I use objective data, subjective data or both? In some jobs like that of receptionist, you may not have a choice.

Intangibles make the difference between poor, average and superior performance. Qualities like courtesy when greeting clients and answering phones, initiative in solving problems without running to the boss and dependability under deadlines are crucial. Other jobs like sales lend themselves to more objective measures. The key consideration is relevance. Rate your employees on the things that really make a difference between success and failure in their jobs.

If employees really believe your feedback will help them do their jobs better, they’re more willing to put your suggestions into practice.Include specific examples to support your ratings and be able to explain them to your superiors as well as to your direct reports. If there are no surprises in the review process then there’s no reason for employees to react with dread when the time comes to adjust their pay.

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