Identify and describe at least 4-6 problems that occur when managers complete performance reviews. Since the focus of our class is on decision making focus on decision issues in your findings.
The temperament and skill of the reviewer plays a huge roll. The decision maker needs to know these factors to be able to function.
When it comes to performance reviews, there can be several problems that occur due to decision-making issues. Some of these problems include:
1. Subjectivity: One common problem is the subjectivity of the reviewer's assessment. Different managers may have different perspectives and biases that can influence their decision-making. This subjectivity can lead to inconsistent evaluations, unfair treatment, and biased decisions.
To address this issue, managers should be trained to make objective assessments by focusing on specific performance metrics, goals, and objective criteria. They should also be encouraged to minimize their personal biases and consider multiple perspectives before making decisions.
2. Halo and horn effects: The halo effect occurs when a manager lets a single positive trait or performance aspect overshadow the entire evaluation, leading to a more positive assessment than warranted. On the other hand, the horn effect occurs when a single negative aspect or mistake leads to an overall negative evaluation, overshadowing other positive contributions.
To mitigate the halo and horn effects, managers should be encouraged to evaluate each employee's performance based on multiple criteria and not let a single incident dominate the evaluation. Implementing a system of regular feedback and assessment throughout the year rather than relying solely on one annual performance review can also help reduce these biases.
3. Recency bias: Another common problem is the recency bias, where managers tend to focus more on recent events or performance, rather than considering the entire performance period. This can be particularly problematic when the organization has a yearly performance review cycle.
To address recency bias, managers should be encouraged to maintain ongoing records or documentation of employee performance throughout the year. Regular check-ins and discussions about performance can also help managers have a more comprehensive view of an employee's contributions.
4. Lack of context: Managers may lack a complete understanding of the context and external factors that may have influenced an employee's performance. They may overlook situations where external factors may have impacted performance, such as changes in responsibilities, budget constraints, or resource limitations.
To overcome this problem, managers should be encouraged to gather sufficient information about the employee's work environment, challenges they may have faced, or any other external factors that may have influenced their performance. This can be done through open communication channels, regular meetings, and seeking input from other team members who have worked closely with the employee.
5. Insufficient performance metrics: Sometimes, managers may struggle to evaluate performance due to a lack of clear and measurable performance metrics or goals. Vague or ambiguous performance criteria can make decision-making more difficult and subjective.
To address this issue, organizations should establish clear performance metrics, goals, and expectations for each role. It is important to ensure that these metrics are specific, measurable, attainable, relevant, and time-bound (SMART) so that managers have a clear basis for evaluation and decision-making.
In conclusion, to minimize decision-making issues in performance reviews, it is important to provide managers with training, establish clear evaluation criteria, encourage regular feedback, and create a supportive communication environment. This can help improve the objectivity and fairness of performance evaluations.