Monday, October 1, 2012

Employee Appraisals - Is Forced Rankings or Normalization only way out?


How do you feel when in the name of normalization you and pushed down ? Is it not a fare expectation from organization that you should be able to understand the organization philosophy and appreciate this global best practice? I call it best practice because more that top 80% of global firms practice and preach the normalization process in performance appraisals. The whole problem with this system is even if you are "Kumbhakarna" but have been awake on the right part of the year and fought a small war ,you will get your reward for sure.

Scientists have proved that every every phenomenon when measured forms a normal curve distribution. Mathematicians have come up with smart formulas and gave us tools to predict a behavior. Even the salt particles movement dissolved in a glass of water "Brownian Motion" which looked so unpredictable also follows a normal distribution. 

Can we extrapolate that human mind fluctuations also follows a normal curve?Can human mind and emotions be modeled into a mathematical equation? I personally find it hard to believe and believe most of my friends would concur. 

Coming back to my topic , how many of you believe that there is no subjectivity involved in the appraisal process and your manager have only looked at your performance before assigning a number to to you.Most of us wound't mind it had it not hit your wallets. But then a manager is also a human being and he also have to earn his bread. 

Will it be fare to say that -then why do not firms move away from this "best practice" and think something out of the box or make it simple enough to understand and measure. Well simple practices actually do not give  the organization the edge ; i.e to be seen as a leader you must have complex processes which can be attributed to this VUCA (Volatile, Uncertain, Complex , Ambiguous) environment.

So whats the way out?
I personally feel a simple system can be created , which can essentially would capture feedback on the KPI's or deliverable assigned to a poor soul. This feedback capturing can be done done like monthly by the manager. Since manager will not have to keep a log or remember hard enough when his subordinate did not listen to him before assigning a number at the end of the year. Poor manager may find it easy to just add few lines as monthly feedback. By this way no one will suffer from memory loss syndrome as one month is quite a short period. For the purpose of measurements these can be assigned a number in the scale of 1 to 10.

These feedback's then be aggregated in the yearly appraisal to come out with a number. The question still remains what to do with the aggregate numbers ? Normalize them again :) ?

I would recommend to see the total of these numbers within your team ,and I am 100% sure the distinction will show up on its own. Employees will not come and cry,shout or threaten at the end of the year ,as they would be the testimony of their own performance.

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