Performance Without Appraisal: What to do Instead of Performance Appraisals
Dr. W. Edwards Deming, often referred to as the father of the Quality movement, named annual appraisals, merit ratings, and similar practices as one of the "Seven Diseases" that stand in the way of building healthy companies. In chapter 9 of The Leader's Handbook, Peter Scholtes provides detailed explanations on why performance appraisals are so harmful and why they don't make sense.
Dr. Deming said of Performance Appraisals, "Stop doing them and things will get better." He was correct. Many organizations, however, wonder what to do instead.
Some of the questions they ask:
If we don't conduct performance appraisals...
- How will we know who is deserving of raises and bonuses?
- How will we know whom to recognize?
- How will we know which people to promote?
- What are the legal ramifications?
- How can we fire people who are not performing?
- How else can we provide feedback?
- How will we motivate people to improve performance?
- How will we know who needs to be trained, and on what skills?
- How will we set goal; and measure them?
- What criteria would we use in the case of a layoff?
- How would we help problem performers improve?
Peter Scholtes' book, The Leader's Handbook, provides many practical, helpful answers and suggestions. In addition, Peter has authorized Kelly Allan Associates, Ltd. to continue the development of related tools for companies to use in moving forward with Performance Without Appraisal.
Performance Appraisal information from Curious Cat Management Improvement.
Total Quality or Performance Appraisal: Choose One by Peter Scholtes
What is the First Step in Performance Management by Kelly Allan and Lara Lebeiko
Kelly and his Associates provide workshops on implementing Performance Without Appraisal, and explore the specifics of using Performance Without Appraisal approaches to unleash the power of their workforce, and to make things happen and to get things done.
From Peter's June, 2001 letter:
Our campaign against Performance Appraisals continues! My associates have been busy and productive. In March, Britt Hall and Kelly worked with United Defense LP in Minneapolis. I am pleased that they helped UDLP design a pilot process to help them decide to move away from Performance Appraisals. Barb Hummel and Lara Lebeiko joined Britt and Kelly in the continuing work with State of Missouri. They are helping managers learn and apply the Six New Leadership Competencies - including what to do instead of performance appraisals.