MHA Service Corporation Professional Search Services, Stephen O’Connor, Senior Director . . . . . . . . . . . . . .October 2005

In this issue:

The Five Biggest Mistakes Managers Make When Evaluating Employees
How to Boost Appraisal Acceptance
Staff Matters: Performance Appraisal Errors: Reading the Warning Signs
Improve the Effectiveness of Your Performance Evaluations
Follow These Rules for Foolproof Performance Appraisals
Professional Search Services: Management Recruiting for the Health Care Community

 

The Five Biggest Mistakes Managers Make When Evaluating Employees

Handing out “halos.” This happens when you give someone a high rating (a halo) for being excellent in one area despite the fact that he or she is poor in other areas. Example: A salesperson who is fantastic at bringing in new revenue but never gets his paperwork in on time. You’re willing to overlook his faults because the new sales are so important but that late paperwork is hurting the efficiency of the rest of the department, and needs to be addressed in the evaluation.

Sticking people with “pitchforks.” This is the opposite of the halo effect. A pitchfork is the one bad habit or incident that you allow to color the whole evaluation. Example: Your copywriter does excellent work for six months, and then botches an ad the week before her review. You “pitchfork” her by giving her a bad overall evaluation.

Stereotyping. This happens when you bring preconceived notions into a review. Example: Maybe you think males make better salespeople than females. You may subconsciously give males higher performance appraisals despite the facts of the employee’s performance.

Compare and contrast. Employee performance evaluations should be done separately from each other and you should never compare two employees. Assessments should stand on their own, and not be influenced by the performance of other employees.

Setting up a “mirror.” It’s human nature to like people who are like you. That’s why it’s so easy to fall into the trap of handing out higher ratings to employees who act like you and lower ratings to people who have a different style.

Adapted from Managing for Dummies, by Bob Nelson (IDG Books)

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How to Boost Appraisal Acceptance

Only 13 percent of the nation’s employees and managers find their organizations’ performance appraisal process useful, according to a PeopleIQ poll of more than 48,000 professionals. And just 6 percent of surveyed CEOs give their evaluation systems high marks. Who takes the blame? Fully 88 percent of those polled say the appraisal process lowers their opinion of HR. Respondents say they want appraisals to do the following:

  • Clearly differentiate between high and low performers
  • Provide relevant and meaningful feedback instead of generic comments
  • Reference specific events from throughout the previous year
  • Emphasize the ease and efficiency of the process

Source: Employee Recruitment & Retention

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Staff Matters: Performance Appraisal Errors: Reading the Warning Signs

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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Improve the Effectiveness of Your Performance Evaluations

It’s unlikely that conducting performance appraisals will ever be the highlight of your management experience. But you may dread them a little less if you follow these simple suggestions:

Rethink your form. Make sure the document you use to structure your evaluation clearly reflects the skills you value and provides a way of outlining expectations and gauging improvement that is easily understood by all involved.

Rethink your ratings. Are you a manager who always gives good ratings rather than focusing on the negatives? Or are you a manager who never gives top marks because you don’t believe in perfection? Unless your ratings truly reflect performance, they have little meaning and it will be difficult for your staff to take them seriously.

Rethink your language. Words and expressions can have different meanings to different people especially in a diverse workplace where regional and cultural colloquialisms abound. To make sure you and your employees are on the same page, use simple, easy-to-understand language and ask workers to repeat back what you’ve said in their own words.

Adapted from “Evaluating Employees with Ease,” by Sharon LaDuke, in Nursing Management

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Follow These Rules for Foolproof Performance Appraisals

To improve the evaluations you give to your employees, remember these rules:

  • Keep it simple. Make sure forms and procedures are easy to use and understand.
  • Get worker input. Ask employees how your appraisals could be improved.
  • Focus on measurement. Set goals for your employees that can be objectively measured.
  • Connect the dots. Explain the link between performance goals and organizational goals, and between achieving objectives and receiving rewards.
  • Provide the tools. Help workers meet expectations by giving them adequate training and ongoing feedback.
  • Conduct regular reviews. Reexamine your review process regularly to make sure it’s meeting your needs.

Adapted from “9 Rules to Help Make Performance Reviews a Boon, Not a Burden,” in Pay for Performance Report

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Professional Search Services: Management Recruiting for the Health Care Community

Steve O'Connor, SPHR,
Senior Director

Professional Search Services

  • Large national candidate pool
  • Internet recruiting at www.mhaservicecorp.com
  • Background checking service
  • Low contingency fee

When you need a healthcare management recruiter, call Steve O’Connor at the Michigan Health and Hospital Association in Lansing, MI at (517) 663-5755. He’s the search consultant who produces this monthly newsletter and has hundreds of management candidates currently registered with his service. Most are open to relocation. You are also invited to browse his web site for more information on Professional Search Services at www.mhaservicecorp.com.

Available positions may include:

CEO/COO/VP • Dietitians • Finance • Food Service • Fund Development • Health Information Management • Home Health Care • Human Resources • Information Systems • Managed Care • Management Engineering • Marketing/Public Relations • Materials Management • Nursing Administration • Pharmacy • Physician Practice Administrators • Planning • Plant Operations • Quality Improvement • Rehabilitation Management • Risk Management • Social Work • Training and Development • Utilization Review

For more information contact:

Stephen O’Connor, SPHR, Senior Director
MHA Service Corporation
Professional Search Service

Corporate Office:
6215 West St. Joseph Hwy.
Lansing, MI 48917
(517) 663-5755
Fax: (517) 663-5897
E-mail Address: soconnor@mha.org

Regional Office:
24725 W. Twelve Mile Rd.
Southfield, MI 48034
(248) 356-7950
Fax: (248) 356-8543

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Professional Search Services
Management Recruiting for the Health Care Community

 

Stephen O’Connor, SPHR, Senior Director
6215 West St. Joseph Hwy. • Lansing, MI 48917
(517) 663-5755 • Fax: (517) 663-5897
E-mail: soconnor@mha.org

Jennifer Marshall
Bobbie Sauvain

MHA Account Managers
3000 Lava Ridge Ct. • Roseville, CA 95661
(800) 943-2589 • (636) 586-2204

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