8. DOES TRUE EVALUATION IN ORGANIZATIONS REALLY MATTER?!

True evaluation of employees is very essential for the health and success of any organization. In my opinion, the health of organizations should take priority and come first, because when it is properly maintained, success will naturally follow. By the word "health," I refer to the culture and environment of organizations. Some mistakenly believe that organizational culture is a touchy-feely subjective concept, but in reality, it has tangible elements — you can sense it as soon as you enter the door of any organization, and that is another story.

True evaluation of employees is a part of performance appraisal which is a systematic description of an employee's strengths and weaknesses, and performance appraisal itself is a part of performance management (the big picture) which is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. The purpose of any performance management is not only for administrative issues (job evaluation - equal employment opportunity/affirmative action; EEO/AA - compensation - etc.) but also for developmental issue (individual evaluation - Training - career planning - etc.).

The presence of strong performance management is directly proportional to the strength, success, and maturity of organizations. As true good evaluation system will ensure that employees are fairly assessed, developed, and motivated, leading to a more productive, engaged, and satisfied work environment, while a lack of true and fair evaluation not only results in talent loss and the creation of a group of mediocre employees who are unfit for their positions, but more dangerously, it fosters an unfair culture and low morale among employees and teams, and this can easily damage the organization and create a toxic unproductive work environment.

"Just one act of unfairness can ruin an entire organization".

But the main question here is: Do managers know how to evaluate effectively? This is a significant problem in implementing an effective performance management system. Many managers do not know how to evaluate properly, and they even do not recognize the importance of performance management as a cornerstone of any organizational success. Many managers (raters) fall into several common evaluation errors, such as:

1. Similar-to-Me Bias: Raters tend to favor employees who are similar to them in terms of personality, background, interests, or inside their inner circle (aka faction or clique).


2. Recency Error: This bias occurs when a rater focuses primarily on recent performance, ignoring earlier accomplishments at the beginning of the year.


3. Leniency Error: This occurs when a rater consistently gives high ratings to employees, regardless of their actual performance.


4. Strictness Error: The opposite of leniency, this error involves consistently giving low ratings to employees.


5. Central Tendency Error: This happens when a rater avoids extreme ratings and tends to rate most employees as average.


6. Halo Effect: This occurs when a rater's overall positive impression of an employee influences ratings on specific performance dimensions.


7. Horns Effect: The opposite of the halo effect, where a negative impression of an employee leads to low ratings across all performance dimensions.


8. Contrast Effect: This happens when a rater compares employees to each other rather than to performance standards.


9. First Impression Error: A rater's first impression of an employee can unfairly affect how they are rated later on.

All these errors are common among managers (raters), and most of us encounter them clearly, specially in the Egyptian work environment.

Article by Amr H. Abayazeed - August 16, 2024.

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