Leadership - Performance Appraisal Disaster

Here are some more great tips for anyone wanting to progress in leadership. Recognise these pitfalls and commit to doing something different in your organisation! Leadership is about leading people. Performance appraisals (performance reviews) are a great tool to help with this task.

Studies conclude that most performance appraisals are an abysmal failure, leading workers to view HR Departments as failures as well.

A 2005 survey of 48,012 employees, managers and CEOs in 126 companies found that only 13 percent of employees and managers – and only 6 percent of CEOs – believe that their performance appraisals are useful. In addition, an astounding 88 percent of respondents said that their current performance appraisal system negatively impacts how they view their HR department. Here are some excerpts from a news release about this study:

• Only 18 percent of people in the survey said that their performance appraisal system effectively differentiates between high and low performers.

• 42 percent of respondents said that the comments they receive from their managers on their performance appraisals are too generic.

• Only 13 percent of employees believe that their manager has an effective method for tracking and recording performance-related events and items.

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