Job performance reviews can be an assent or a liablity...

Job performance reviews can be an assent or a liablity for both the company and the employee. (Undated) Credit: iStock

Performance reviews.

At many companies it's that dreaded once-a-year, awkward interaction between manager and employee that highlights the good, the bad and occasionally the ugly.

Although they're meant to help improve performance, often  they are huge time wasters because managers either come ill-prepared or fall prey to some of the more common mistakes, including sugarcoating bad behavior, say experts.

"Unfortunately, performance reviews are almost universally despised by both managers and employees," says David Lee, founder of HumanNatureAt Work.com, a leadership development and employee engagement firm in Saco, Maine.

"If managers knew how to give effective reviews, not only would they be more likely to get the kind of performance they want, but they'd also have a more motivated employee."

With that in mind, here are some common mistakes to avoid:

1. The element of surprise. The operative term in performance review is "review," says Lee. This isn't the time for late-breaking news, he notes -- feedback should be ongoing year-round. "Surprising someone in a performance review creates the feeling of betrayal," notes Lee.

2.  Missing pieces. Performance reviews aren't just a report card and a potential scolding, they're also a vehicle to help someone in their career, explains Lee. Not including professional and career development (i.e. their goals and how you can help them achieve them) is a mistake, he says.

3. Do-it-yourself appraisal. Often companies will ask employees to do a self-appraisal before the formal one-on-one, says Dick Grote, author of  "The Performance Appraisal Question and Answer Book" (Amacom; $17.95) and president of Grote Consulting Corp. in Frisco, Texas.

Of course, these are usually glowing, which makes the manager's job more difficult, especially if it involves countering  the employee's inflated opinion, says Grote.

A better tactic is to ask employees, before the appraisal, for a list of things they've done in the past 12 months that they're really proud of, he recommends. This helps refresh your memory, while giving them input.

4. Giving mixed messages. Managers often give good and bad input equally to both good and bad performers, says Grote. You're not required to say something negative to the good performers or something positive to the bad ones.

In fact, Grote says that with good performers you should focus only on the positive, and with bad performers highlight problem areas and corrective action. "With the great majority of people that are good performers, they should walk away from the appraisal discussion feeling good," says Grote.

5. Going to extremes. Managers can be either too harsh or too soft in the way they discuss an employee's performance, says Robert Micera, human resources director at the accounting firm of Margolin Winer & Evens in Garden City, which reviews its staff. You don't want to sugarcoat problems, but you also don't want to be so harsh that it demoralizes an employee. "You want to give an honest, accurate review," he notes.

6. Falling short. Managers often fail to take the employee's entire year's performance into account, says Micera, author of "Right to the Point" (PHRG Publishing; $12.95). "They only focus on the last few months," he notes. Keep track of performance throughout the year so you can offer a comprehensive review, advises Micera.

7. Lacking purpose. As a manager you should know your objective for giving an appraisal so you can clearly communicate that to your employee, says Diane Pfadenhauer, president of EP Advisors, a Northport HR consultancy. "It makes it mean something," she says.

8. Lacking specifics. Some managers are too generic with their reviews, says Pfadenhauer. They might say an employee has a bad attitude, but can't provide a specific example, she notes. "You need to give constructive feedback," says Pfadenhauer. 

Cause and effect 

  • Potential consequences of a poorly administered appraisal include: 
  • Decreased employee morale. 
  • Poor attitude. 
  • Lack of trust. 
  • Inefficacy. 
  • Declining motivation. 
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