by
Stephen O'Connor
We
encounter a lot of signs as we navigate life. Most are functional,
some are confusing, and a few are downright stupid.
I
was in a restaurant recently and a sign over the front door, apparently
placed there by the health department, read, “This door must
be kept unlocked during business hours.” Well, there’s
a savvy business strategy; let's let the customers get in! There
are also signs that insult our intelligence. As you traverse some
of the most beautiful areas of northern Michigan on scenic two-lane
roads, you often encounter a posted sign that says, “Do not
pass when opposing traffic is present.” No kidding! Do I
really need a sign that tells me not to hit another car head-on,
on purpose?
Some
signs are redundant. An apartment complex near my house boasts
of “residential apartments.” What else are you going
to do in an apartment?
There
is yet another category of signs that just makes you do a slow
burn. I got a parking ticket. You know the kind. If you pay it
in the next 30 minutes, it's only $5. After three days it goes
to $20. The parking enforcement division has the incredible gall
to post a sign over its door that reads, “Customer Service
Center.” Customer service?!? I don’t call a team of
meter maid commandos lurking in the shadows waiting for me to patronize
a downtown merchant customer service.
A
good sign is one that is easily understood and tells the truth.
Warning signs are especially important because they alert us to
a threat. There are warning signs within our organizations as well
that signal threats to the company's business health and well-being.
This is especially true when evaluating our organization’s
performance appraisal system. There are seven critical signs that
tell us our appraisal methods may be less than objective and each
one is a disservice to the employee:
The
Halo/Horn Effect — This may occur when an employee is extremely
competent in one area and is therefore, rated high in all categories.
Conversely, the horn effect happens when an overall poor rating
is given because of one performance area that is below standard.
Recency — This
error happens when an appraiser gives more weight to recent occurrences
and discounts earlier performance during the appraisal period.
Bias — When
an appraiser's personal values, beliefs or prejudices distort ratings,
the error is due to bias.
Strictness — Appraisers
who believe that standards are too low may inflate the standards
in an effort to make them more meaningful in their eyes. So although
the employees of a strict appraiser may be performing better than
those working for another appraiser who does not inflate the standards,
their ratings may be lower.
Leniency — Leniency
errors are the result of appraisers who don't want to give low
scores. All employees in this case are given high scores. Consequently,
they don't learn anything from the process.
Central
Tendency — This error happens when an appraiser rates all
employees with a narrow range, regardless of differences in actual
performance.
Contrast — The
contrast error is committed when an employee's rating is based
on how his or her performance compares to that of another employee
instead of objective standards.
Performance
appraisals are extremely important. They serve to motivate by reinforcing
desired behaviors, and they function as development plans by identifying
training needs. Additionally, if there is a direct link to salary
increases, the appraisal accuracy has a serious impact on the organization’s
business success. When conducting appraisals, look for signs that
may indicate potential errors. Being accurate is being fair. Being
fair in a “tough love” kind of way is admittedly difficult,
but it's also good business.
This
article originally appeared in the September/October 2002 issue
of Michigan Health & Hospitals magazine and is being
used with permission.
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