HR WORKPLACE SOLUTIONS
Anil Kaushik, Management Expert - HR & Labour Laws
Q. During performance appraisals, it is generally felt by employees that their performance has not been evaluated fairly. Is there any way to remove the element of subjectivity and unfairness in the process?
A . You can do it but it requires a planning. First understand and communicate expectations.
Many managers don't effectively communicate performance expectations to their employees. Misunderstandings about expectations result in distracted focus on the important aspects of the job, lower productivity and quality and unfairness in performance evaluations which is also perceived.
A job description that lists specific activities to be performed, the measurements to be reported, the time allocated for each task - and the required results helps eliminate many potential misunderstandings. By making result expectations clear to your employees in advance, the evaluation process becomes fair and balanced.
Next, you need to consistently measure and record these outcomes. One of the simplest ways is by keeping a performance “plus and minus” log on each employee. You can develop simple form for this purpose. Mangers should record performance results daily if exceeds or fall below the expectations.
At the end of the appraisal period, it is very easy to go back to notes through the simple form you have maintained and complete the appraisal form. Keeping detailed, regular notes on performance helps managers objectively rate performance and provides employees with better, more credible input.
You can also involve the employee in measuring his performance and making notes. It will further improve the perceived fairness of those results. Give your employee a plus-and-minus log note sheet and ask the individual to note significant accomplishments, misses or extra value added. Periodically meet with employees to go over the log note sheet together, and use the employee's log as one of the inputs for the annual performance appraisal. Telling your employee clearly what you expect and measuring and providing specific comments on performance results help managers offer evaluations that are objective. Employees will be knowing in advance about their performance evaluations and it will bring enough transparency and remove subjectivity.
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Q. In our organisation, we allow certain sick/medical leaves to employees but it is observed that most of the employee do not avail such leaves and they go lapsed at the end of year. To encourage and motivate, can we start encashing such leaves? Would it be a good practice in long term or something else you may suggest?
A. Encashment of unused balances of sick and casual leaves to reward employees during a year is not very common practice except of earned/privilege leaves. There can be few in hundred who may have opted for this model. You need to consider many factors before going for this practice because once you start this, you cannot rollback this one because it becomes the right of employees. If you are considering only for a special year due to certain circumstances, you can do by making it clear that it is only of this year and not for coming years also. Next, you evaluate the financial impact of this practice. Are you in a position of absorbing such cost permanently which this time may give a boost to employees' morale but in long term it will not. Some employees may also come for work even during illness when they should not to obtain incentive and if something goes wrong at workplace you may have indirect liability in respect of that employee. Instead of lapsing unused sick leaves after every year, you can allow accumulations to certain level so that in case of serious illness employee can utilise accumulated sick leaves and also think of only encashing a certain part of unused sick leaves every year and not all. Some percentage can be allowed to go lapse. It will not be an accrued liability for future at enhanced rate of salary.
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Q. Being HR Head at a small company, my MD has asked me counsel CEO about his tendency for insulting employees and making derogatory comments. Recently he sacked two employees who raised their voice against his insulting behaviour. This has brought down the morale of employees at very low. Since company is doing good businesswise, MD don't want to replace him. How should I handle his situation and execute MD request?
A. Asking you by MD to counsel CEO gives rise to certain speculations. Why MD cannot take this call of its own may be with your back support? When you are reporting to CEO, do you think that he will listen to you or agree to an informal or formal counselling session with you? Why MD is accepting his insulting or intimidating behaviour towards employees? Next relevant factor in making such counselling attempt successful would depend upon how much trust/confidence you enjoy of CEO and how he behaves with you. In which bracket he keeps you? Have your MD given the company employees including CEO a message that you have been empowered to take on such calls on his behalf? Has MD insulated you from the brick batting of CEO when you counsel him and pointing out about his attitude and behaviour. Your MD should understand that when employees do not feel psychologically safe and work in an intimidating atmosphere, no talented employee will stay. Profits in business are temporary. It is people who makes or burn balance sheet of the company. I think MD has not taken it seriously and casually passed on to you to handle the matter which may bring in worse result.
I suggest you to talk to your MD again. Even if you are heading HR, you are still in lower position than CEO in Company hierarchical position. Request MD to have one to one meeting with CEO in which you can also be present. He should start the session and then you can take it on by mentioning the incidences of his behaviour and attitude in MD presence. It will boost your authority indirectly. Psychologically this will be self-empowering. So, scene would that MD would be sitting quiet and you would be counselling CEO. It will give message to CEO that MD has approved this and you are having a mandate to counsel him. Meeting CEO alone would be disastrous for you. He may order your sacking even next day. When MD meets him with you, it will happen in MD office but when you go for meeting, it would be in CEO office and not yours'. You can't call him to your office. MD's apparent and physical support is required to make this session successful.
During meeting with CEO along with MD, start with his contributions and appreciate his concern and frustrations when employees do not meet his expectations but also lay importance on the aspect that some of the CEO's actions are hurting his status as leader and potentially are hurting the overall position of the company. Tell him about the employees low morale and high level of disengagement. Make him remember about incidences of humiliating and insulting employees openly. Be specific.
Let the CEO know he is bringing himself and the company bad name in with his such behaviour.
How does the CEO respond to your constructive confrontation? If he is defensive or in denial, then MD should come in at this point in discussion. MD should tell him to accept the reality and be truthful to his deeds. If he is open to your comments, solicit his ideas on how he can express his frustrations or concerns with people or business operations in a more constructive and substantive manner. MD should also tell CEO that in future you will be taking follow up meetings alone on his behalf and board and report the progress to board. I think by this way you can demonstrate your professional ability and competency and will determine whether the CEO's behaviour is amenable to change. And if the CEO resists this intervention, then it would happen before MD and it would be his and board call to take it forward. You will be safely out from the situation.