Dear Workforce:

Should our performance appraisals reduce subjectivity? Despite the fact that we use objectives, I am convinced the subjective view of employees by their managers affects the outcome.

—Subject to Objectivity, HR specialist, finance/insurance/real estate, Budapest, Hungary

Dear Subject to Objectivity:

You're absolutely right. Performance experts try to reduce subjectivity in performance reviews, but as long as reviews are rated by humans and are based on human behavior, they will be somewhat subjective. Taking out subjectivity—making reviews more objective—is a continuous challenge.

Why do we really care about making performance reviews objective? It's because employees want to be treated fairly. For example, two employees may process the exact same number of orders, but orders for standard products are likely much easier to handle than the orders for complex, customized solutions. Or, all things considered, it's usually a lot easier to generate revenue from a territory that is thriving than from an area that is economically depressed.

Naturally, the employee handling the more difficult orders or the more challenging territory wants to be acknowledged and rewarded for the extra challenge involved. Determining how to factor in the difficulty of the sale or the quality of the service makes performance harder to measure.

So how can you create performance appraisals that are perceived as fair to both the employee and the manager? Here are some suggestions:
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Tags: Dear Workforce — Performance Reviews — SMART Goals — Performance

Dear Workforce:

Which appraisal system is best suited to our use of SMART goals, in which the exercises vary from project to project?

—Trying to Get Smarter, human resource officer, construction, Kuwait

 Dear Smarter:

The first step in your appraisal system should be to establish goals, and to make them “SMART.” The acronym stands for goals that are specific, measurable, attainable, relevant and time-bound.

In construction, the organizational structure is typically based upon projects. Therefore, a company’s performance management system usually follows the project framework. Because each project has its own goals—including revenue, budget and timelines—you will likely want to develop goals on a project-by-project basis. It is the job of management to align the overall project goals, the manager goals and the individual goals to bring the project home on time and on budget.

Your company should make the overall project-based goals clearly visible to the members of each project team. Within the project, individuals should then be assigned specific responsibility to do their part to achieve the overall project goals.
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Tags: Dear Workforce — SMART Goals — Performance Reviews — Performance