The current turmoil over union rights in Wisconsin as well as the overall economic challenges facing both public and private organizations should provide a springboard for altering the way we do business.
While I am not suggesting abolishing unions, I believe there is an opportunity for significant change in employee relations at this pivotal time. This change could have wide spread implications leading to increased fiscal accountability, higher productivity and greater employee engagement.
In a recent New York Timestitled, “Why Your Boss is Wrong About You,” Samuel Culbert argues that one way to do this is by doing away with performance reviews because they are entirely unfair. Performance reviews are too focused on pleasing the boss rather than achieving results, he says.
“They are an intimidating tool that makes employees too scared to speak their minds, lest their criticism come back to haunt them in their annual evaluations,” writes Culbert. “They almost guarantee that the owners — whether they be taxpayers or shareholders — will get less bang for their buck.”
Culbert is a professor in the Anderson School of Management at the University of California, Los Angeles, and the author of “Get Rid of the Performance Review! How Companies Can Stop Intimidating, Start Managing — and Focus on What Really Matters.”
As I wrote in a previous post, performance reviews are all too often an HR necessity rather than an opportunity to improve performance and strengthen relationships between managers and employees. New methods such as Results Only Work Environment or ROWE can be helpful in holding the employee more responsible for achieving results.
Culbert suggests taking this ROWE methodology a bit further in what he sites as performance previews, which are a way to hold both boss and his subordinate accountable for setting goals and achieving results. A true partnership can then exist between supervisor and employee to reach goals that are based on shared interests and responsibility.
Once goals are established, the decision regarding how the work gets done can be made between the two people most responsible for it and independent from the organization. This relationship is based on mutual respect and can capitalize on the unique strengths and knowledge available rather than from some objective standard found in boilerplate review paperwork.
I once held a position where, despite my success in achieving the financial-based, project targets in the management by objectives (MBOs) agreed to in my employment agreement, I was not given my annual bonus because my supervisor decided I had achieved these only through his intervention. Though I disagreed with his assessment, I had little recourse.
What if instead we had worked as a team and his success was also determined by the achievement of these goals? Rather than he as my supervisor determining my compensation based on his own subjective interpretation of who did what and how the work got done, he judged this purely on results?
All too often in competitive workplace environments, there is too much office politics, jockeying for position, and silo mentality that is in the way of getting the work done. Performance previews may provide a viable alternative to performance reviews, especially if they lead to increased communication, teamwork and achieving the organization’s goals.
The current economic crisis provides us with a great opportunity to revamp the way we do business and implement a win-win solution such as performance previews.
I welcome comments on how your organization would benefit or suffer from such a change in the way to evaluate employees.