ae, 2 Article 19 SSS EES Are managers more responsive to human values than personnel people? If so, we had better join them in taking... An Uneasy Look at Performance Appraisal By Douglas McGregor Performance appraisal within management ranks has be- come sandal practice io many companies ding the pas ‘weny yer, and is cuendy beng adoed by many cer, ‘fen san ingot feature of anagem development po ams. The more the method is wed, the more wnessy I grow ver the unsad asumptions whic le behind i Moreover, ith some searching, ind thre umber f people both ned ‘cation an in indy sare my misgivings. This ree, ere fore, has two purposes: + To examine the conventional performace appa plan ‘which rus the manager ops jade onthe personal ‘worth of bodies + Todescribeanlermative which places cathe suborint the primary respesibilgy for exabshing performance gle and appasing progress toward them. Current Programs Fomal perfomance appraisal plans ae designed wo meet tye neds, one forthe organizations vo forthe individual: |, They prvie systematic judgments otek up salary in reises, promotions, nsf, and somtimes demotion oF 2 They area means of ell oboe how hes doing. and suggesting neded changes in i behavior, aad, ils, oF job knowledge; hey let hin know "where be sands wth the bos 3. They aio are being increasingly we sbi forthe coaching and counseling ofthe individ by he sper. Problem of Resistance Personnel sdiistors ae aware that april programs ‘end trun ino resistance fom te managers who ar expeed ‘administer them. Even managers who admit the necessity of such programs frequent talk tthe process—epecaly the interview pat. Avra, some companies do not commun ‘ue appraisal eu to th invideal despite the genera con ‘ton atthe subordinate has 2 ight 0 know his spec's opinion so he can cect his weakness ‘The boss's resistance is uly atibuted to the Following + A normal dis of crizing a subordinate (and peop having argue about), + Lack of sil eeed to hsdle the inerviews, + Dislike of new procedure with its accompanying changesin ‘ways of operating. + Mists ofthe valid of he pail insrument ‘To mect his problem, formal contols—seheduling, te tinder, and s0on—aeofe nse Ie common expt occ hat without them ever than half the appraisal otrviews se actly held. But even conrols donot nese work, Tha In one company with wellplanned snd cael ‘ministered appeaisl program, an opinion pol ine ‘lode two questions epading appraisals. More thn SOR of those answering the questionnaire approved the idea of appraisal. They wanted to know how they sod. Some 40% weat ono say da they had never fade experience of being old—yet the les bowed thacover Fouts of hem had signed form styTe ANNUAL EDITIONS. {ng that they td Ben though ao aprasl interview, some of tem sever ies! “The respondents ad no reason fe, or wes thee ‘he sigs soppsion tat thee speios had com ‘ed ogey. The probable explanations that he si ‘vir, Being buseally estat to the plan ba ‘eodicted interviews insuchperfenctoy mancet that many borin di otrecognize what wes po: ing on. Training programs designed to tech the skills of ppasing and interviewing do el, but they seldom linia manage resistance ene. The difficules connected ith "negative ppaisals* remain asoarce of gavin concer. The alvays Some discomfor: involved in teins subordinate be i not doing wel. The individual whois "eossing” uring the few years prioe wo rerement air servicing his company come Tenly for many years presents» special clemna tothe bass ‘who is preparing oneview bi Nor does shift toa form of group apprisal solve the problem. Though the group method tends to have geste ¥- lity and. propery administered, can eqalize vying stan- ard of adpment, doesnt ene the dificly ineren in the Interview: In ft, he sper’ dacomfort is fen intensified ‘when he must ase his interview on the esas ofa group d+ ‘cussion ofthe subordinates worth, Even ifthe fl judgments have bie his, he snot fe to dius te hing ud by ober, which my ave infsenced hn. ‘The Underlying Cause What should we think bout» method—however valuable {ormeatingorsnizatinal needs—ubich produces such esas {ns wide ngs of companies with varity of appraisal plans? ‘The probiem sone hat eanaot be sms Tigh Pethps this intuitive manage! reaction to conestonl peeformance appa plans sbows a dexp bot wrecogized Wisdom. In my view, itdoes aot reflect anything 5 sepa resistance o change odie for personal technique, or ack fs or mists for rang sae. Kater, mage see 0 be expressing very el misgivings which te fin filo timo words, This could te the underying cau: ‘The conventional approach, unless handled with snsumrt il and delicacy, consis something angers cos ovo ofthe integrity f the ‘enon. Mangers ae wicomforabe whe they {Me put in the poston of "plying Go.” The respect ‘Wehold forthe inherent vale ofthe individ eaves 1 disused when we mast take responsibil for {dging the personal worth of fellow man, Ye the ‘onretion approach opefomance spi or 50s, notonlytomake sch judgments ase them ‘ced upon, but als to communicate the to hase we ‘ave jaded Small wender we esis! 126 ‘The modern emphasis upon the rnager a 8 leader who stives to help his stborites achieve both ter own and he ‘company's objectives is arly consistent with the jd le esmanded by mos apps plas I the manager must pon ‘isda at ocatoaly, he does it relat and with ws ertandable quai. Unde suck enon i ually at ‘he sobodinewil bean happier wih he real then wil he bos. Iwill ot be surprising ether, ithe flstorecopnize ht eas been told wher he sas, Of oun, managers cunt escape making jdgments sot sxbordimtes Without such evaluations, sly and peomtion polis canto be administered sensibly. Bu oe sabediates Tike products onan assembly lin, tobe acxped or jected 5 rest of an inspection proces? The inspection process maybe made more objective or are accurate through research on he ‘pprasl instrument, Crouph ining ofthe “inspectors” oF hough inrodocng group sppmia;the subordinate may be “remarked” by cochig or counseling before the fal decision to accept oreject him: but as fara the ssp othe con ‘wetioal pprisal proces ae concer, we sil have Wha practical identical with a rogram fr prod specton, (n tis interpretation, then, es\sance to consenionl p- prasl programs sensed sound, elon vavilingness ‘o teat human beings ite plea object: The needs of thor {nization are obviosly imporan, ba when they come ito ‘nit wid oar convictions about the worh and edgy of the human pesceality, one orth ther must eve. Indeed by the fot of ei resistance manager te sing ‘hat he organization must yield in the face of hi undamenta) Jnuman vale. And they are us being more sense than ae ersonneadnistatr and sci ceatits whose busines i Istobeconcemed with te human problems of nds! A.New Approach iis soatyssiscoec, teak before uss clea. We mas. find anew planta compromise oie the dilemma, bt 8 bd move to realve thease, ‘A numberof writers ae begining to approach the whole suojet of management rm the pont of eof baie soi values. Pater Drocker’s concept of "management by objee- tives"! offers an unusly promising framework within whch ‘we can sek a solution. Several companies, cauibly General ‘Mil Inorported, an General Elec Compan, have been ploring diferent method of spraitl which ret upon es ‘sumptions cones with Dick's lop Responsibility on Subordinate ‘This spproach cals cn the subordinate fo establish shor ‘erm performance gal fr hnsel/ The iperor esters the pro ese atively only aferbe borne as) done good eat of thinking abou his jb, 2) made care esesment of his ‘own suengths and weaknesses, and (c) formed some spe if plnstoacomplshhis gals Therupero'soletsto help aici e704 fonhe man ree his self pps his args" ahs plans for theenting period to he eles af the eranization, "The fst sep i this process iso arive at a lear statement ofthe major features of te job. Rather than a formal job de- Srp, this is a dcament raw wp the subordinate afer "nudsing the company-approved sateen. defines the brs ‘eas of his esponsiblyas hey actly work ou in praice- ‘The bos andemplyes dtc the raf joy and moat its tnty be necessary unl both of them agree tat ts adequate. "Working fom this statement of esponsibilies the subord- rate then ete his goal on “tages” fora perod of, 3, Six monte, Toe anges are specie aeons wich he man ‘ropes 1 ak, sein up regular sal mecngs oa [rove communication, reorganzing the office, completing or deking cert study Ths, they ee expiy sted ond ‘ccompanied by adetlled account ofthe sons he propasst0 {Ske orench bam. Tiscosumett ur clcassa WHEN superior and modified unl bth are ssid with ’A the conlsion of he sbmonth prod, he subordinate snakes Ms own appraisal of what bes accomplished elative toe targets e ed steer, He abst wih focal dua wherever possible. The "interview" i an examination by ‘peror and saborinte toate ofthe subordinates sep isl and iclizates in areseting of targets forthe ex i (OF couse, the superior has veto power at each tp ofthis proces nan organizations irc anything else wold be Uneccepable However, in price be rarely needs to exercise Mort sbordnates tnd nderesaebh thec potent ‘es andthe ablevemens. Moreover, suborinates nelly ave an understandable wis aly tee bss, and are gue wwling wo act thee tags or aprile the wpe fel they are unrest. Actual, mich more common problem is ‘oes sbordianes”endency wo ant the bss tot hem ‘win write down ‘Analysis vs. Appraisal ‘This approsch to performance appraisal dies profoundly from the conventional ene, frit ss the emphass fom ap- prose! to andr This implies amore positive apposch. No Toogers the suborlate being examined by the superiors that bis weaknesies may be deteemined rae, be is examining ‘cel, orer 0 define no only his weaknesses but lois sues and potentials. Te imporaoce of this shift of em psi should tt be updersinated Is bale wo each ofthe Specific aitfeences which distinguish this approach fom he conventional one. "The fist ofthese diffrence artes from the subodinte’s new olin the proces. He becomes native agent, nt ps- sive “objees” He ino longer a pawn ia chess game called ‘management developmen. Elecive development of managers does nt include co- ‘cing them no mater how benevolent) into acceptance of the goa of th enterprise, nor does it mean manipulating tet heavier osu organizatonl needs. Rater, i ells fr ee tings reltoship within which aman ean kersponsiblsy Arlicle 19. An Uneasy Look at Perlormance Appralsal for developing hisown potetaies, lan for hist, and eam from pong his pln nt ato. Inthe proces he con gan eoune sense of satfacton freien his mn eapabil- ies to acieve simultaneously both ts obetves nd those of the organization, Unless thie the mature of the radonship, developmen” becomes a eupeisa. ‘Who Knows Best? (One ofthe main ferences of his proach thats on ‘he assumption hat ie individual weer ea ery than anyone cle aout his ov capsiite, noo sengths ad weakzesss, and goal. In the et onl he ca detemie ‘what is est fr his development. The conventional approach, fon the other hand makes the asumpon tha he superior cas Know enogh about the sabia decide what bs for 'No avaiable methods can provie the superoe withthe knowledge he nea to make such dco. Ratings, apse and personaly tes, and the sopedioe’s necessiy Timited Inowedge of the man's peformance ie at estan nperert pictur, Even the mot extensive pryehologia coanelng mag the sper possess the competence for) would ne solve the problem because the produ of counseling is sell Insight on part ofthe counsel (Psychologia ests are not being condemned by this tae sweat On the cone, they have gine vale ie competent ands, Their use by profesional m par of the proce of sereing applicants for employment does not rise the same {uesons as their use to “algnose™ he personal worth ofa pled members of» management eum. Even in he later in ane the problem we ae cicueing Would not are i test, result and nterpretions mee given othe individual into, (0 be shred wih superiors ats disceton) ‘The proper ole ote superionic on tha als nat uraly to him ude the suggested pl: belping te sot ‘elt is carer planing to the need and reais of he org Sain a te dncasions te boss an we is knowlelgn of the ergazaton to help the suboruate esablish ages aad rmetods for achieving them whic wil (a) ead to ineteased ‘nowedge and sel (b) conse orgasizaonl objectives, nd () tet the subordinate’ pasa of himself "Tis ishelp which te sbordinate wan, Heknows wel hat the rewards and satisfaction he socks from his carer a aman ge depend oo hiscontbation wo orpnzational betes, Me [sls aware that the superior now's pore completely than be what is required for succes in hit ognization an der his boss. The supra, hen, the person who can elp im est the soundness of is goats and his plans fr achieving them. Quite leary th knowledge and stv paripaton af bth superior fd sabordaate ae necessary components of this aFproach. the superior aceps this role, beneed not become a jue cof the subordinate’ personal worth Hes ot eling deciding, titeing,opasing—net playing God.” He finds himselt listening. sing hs owe Knowledge ofthe organization 35 & ‘asi for advising, ging, encouragng hs subordinates ode ‘velop thelr own ptenaltes, ciently, he often eds theLT ANNUAL EDITIONS. ‘super to impertant insight about himself a his impact on other. Looking tothe Future ‘Aote significant difeeace i that he emhass iso the future ater than the pas The parpose of the ln ito ena sh alse targets and to seek the mos eftine ways oF ‘aching them, Appraisal thus Becomes a means os contac ‘ie end. The 60-year-old “coaster” canbe encouraged to ot perfomance goals for himself and to make afar sprain of his progress oward them Even he sbornte wo a le ‘ate hep to conser what moves il be ti for him ‘The super rarely finds imsel facing te wnconforable ospect of denying asubordnt's personal weth A wafer 6 evn a demotion can be worked ot without contaton ‘ofa venteace by the judge” Performance vs. Personality Fnaly, te accent ison performance, on ations relative to seas. There isles tendensy for he personality fhe sabor. te to become anise. The super, instal finding im self in the poston of psyholgit other can became ‘coach helping the subordinate to reach his wa decisions on the spect steps that wil enable him teach i targets Such ‘counseling as may be required demsads 0 deep analy ofthe onal motivations or bse ajesiment ofthe sabrina To Blast Consier a subordinate whois hse, shrt-empered unco- ‘psitv, insecure. The superior eed nt make sn ryote, fea diagnosis, The “wget sting" approach natal diets the subrdinae’s etenton to ways and mess of obtaining beer interdeparment colabtion, reducing compas, ‘ining the confidence of the men under him: Rather tan facing ie troublesome prospect offering his own poole, {cal agnosis onthe sabordinae, te uperie cn fr example, pte individ plan ways of geting "Yndhae”concerng ‘is impact on his associ and borin a bess fr sl ‘ppl and selFimpeonement. ‘Theres ite chance that man whoisiavoved ina process ke this wil be athe dark bout where aad cia el foraetheis he principal prcpan inhi own development and ‘esponsiefor it. ANew Attitude as * comagunce of tse dieeaces we may exp the ‘owt ofa itera atin ovat spa on prof ‘rad atone ale sper il guinea susfton ate ans tops ‘Phelents inept irponen gs wi henendeo ie ‘Eaten so that both ae sere Once he subs he [oeSfon a mata sista pln of elon, espe | estes thi te repos or paring nsec | MEW: Nese in x conse! managerial le er tas 128 being forced to adop the scl incompatible oe of iter the judge oe preboogise Unies theresa asc persona antagonism betwcen he two ‘men a which case the elatonsip shouldbe tiated, he saperiar can cond thse interviews th both we ately involved in seeking therght basis for constructive action. The onanization, the boss, and the subordinate ll tnd to ul, Under schcircumsancesthe oppo for ming for szosnedevelopmeat ofboth pares re maximal, ‘The partcuar mechanics are of secondary importance. The ‘eds fe organization nthe sdinisratn of arya pe, ‘motion polices can easily be met within the famewer of he nls proces. The machinery of the proram canbe ase ‘othe sation, No mniveral tof rang etepones rere. ‘The complications of ubjective or prejudiced jdgmeat of aying sana of temps to quand qualiave da ane minimized. Infact no formal machine is requ, Problems of Judgment "ave deere sighed the many poten of judge involved ia administering promotions andres, These rey ‘no mean minor, abd hs approach wl ot etomatlysole ‘hem However, blieve that f we are prepared to ecoaise the fundamen) problem inherea inthe contendonh ap. roach, wayscan be ound o temper ou present sins metots, Af ths approach is acrped the traditional ingenuity of ‘management wil lad tthe invertion of arty of methods forts implementation. The mechanics of some conventional ‘ans canbe adjusted tobe consistent wih this polt of view bousy, «program utlizing ratings ofthe persona hare tei of borne would no be sable bel ene which ‘emphasizes behavior might be, Ofcourse, managerial sil isequlred. Nomethod wil ein ‘nate that. This method can al rely a any oe the ‘clumsy hands of insensive or indiferew or powersceing ‘manager. But even helmed experienc of» fow companies ith hs approach indicates tht manga resinone sus stanly reduced, Asa consequence ses gan the cok Inboraton of managers in developing the necessary kl, Cost in Time “Thre is ne unavoidable cos: the manager must spend co siderably morte a implementing a progam of ie Lid 1 ‘sot upustalto take aco of dayato work hoogh the il ‘talshnent of wesponslides and gal withcach inv ‘And periodic appraisal may require sever! hors rahe han "he ipl 20 minutes, Reaction 0 this cost will doubly vary. The manage ‘ment tht considers the developmen oft bnan resources © be the primary means of achieving the econome objectives of ‘he organization wll ot be astred wil ear the nace sary guidance and coaching as among te mos importa fe ons of very superior,Conclusion ‘ove sought sow ht he conventional aproech o pe= formance april stands condemned as personnel metho. I flocs te manager inthe untenable ose of judging the par~ onal wort of fis subordinates, and of acting on these jude mens No manager poseser, nor could be seq, the ll Secessry a cay ot ths eponslity effectively. Few would ‘ren being fo acept if they were uly evar ofthe in ‘lions invlved. is hi ureognied aspect of conventional appraisal pro: yams which produces the widespread unessnes and ven pen ressance of managersent to upprasals and especially co ‘he appa imervew, [Article 19, An Uneasy Look at Performance Appraisal ‘A sounder approach, which ples the majo esos, on the subertnate for enlisting performance goals nd ap rising popes towue tne aves he nor eaceesees of {he ol plan and tenets the organization y simulating the de- ‘velopment ofthe evbordaate. I tre hat sore manages ‘Silland he investment of constable aut fe ae ‘ule, bute prenterrotvaton nthe mor eflecv devel pment of sbornates can jus tes added cos. Note 1, See Peter Drucker, The Proctceof Management (New York, spe & Brother, 1954), Le a a