Thursday, July 10, 2014

Designing a Performance appraisal system for startups that works Part-3

Designing a Performance appraisal system for startups that works Part-1

For details on each sub-topic, please read here

Most Serious Performance Appraisal Problems

1. Don’t assess actual performance
2. Infrequent feedback
3. Non-data-based assessment
4. Lack of effectiveness metrics
5.  Lack of accountability

Process related problems

6. Disconnected from rewards
7. No integration
8. Individual scores exceed team performance
9. Each year stands alone
10. No comprehensive team assessment
11. A focus on the squeaky wheel
12. Little legal support
13. No second review
14. Not reliable or valid
15. Cross-comparisons are not required
16. Assessments are kept secret
17. Process manager is not powerful
18. No process goals
19. Not global
20. Forced ranking issues
21. No ROI calculation

Instrument (form) problems

22. Doesn’t address diversity
23. The process does not flex with the business
24. The factors are all equal
25. Inconsistent ratings on the same form
26. Disconnected from job descriptions

Manager/execution problems

27. Managers are not trained
28. Managers are “chickens”
29. Gaming the system
30. Recency errors
31. Corporate culture issues
32. Inconsistency across managers
33. Managers don’t know the employee
34. Secret codes
35. Mirror assessments
36. Managers are not rewarded
37. Managers don’t own it

Employee/subject problems

38. High anxiety
39. One-way communication
40. Self-assessment is not possible
41. No alerts
42. No choice of reviewers
43. One-way process
44. No appeal process
45. Retention issues
46. Many possible emotional consequences

Timing issues

47. A time-consuming process
48. It is historical
49. Not coordinated with business cycles
50. Not simultaneous

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