ETHICS IN PERFORMANCE MANAGEMENT
Management by performance embodies ethical management. Performance management demonstrates competence and meets the underlying ethical values of professional management, including trustworthiness, respect, responsibility, fairness, caring, and citizenship. Performance Management and Ethics are two key focuses of HR Management. They are intimately related. Performance appraisals have been used, historically, as a way to determine and justify employee compensation. Although the original intent of performance appraisals was to judge workers' current productivity levels, managers began to notice over time that different workers were motivated by different factors. The modern performance appraisal is used as a development tool to improve productivity rather than simply judging current levels. To be considered ethical, the performance appraisal process must be viewed as a tool for developing employees, increasing productivity and enhancing job satisfaction. Many managers talk about ethics but do not recognize or act upon ethical issues in their day-to-day managerial responsibilities. Most ethical questions arise from people relationships within the organization. Managers must realize that ethics is the process of deciding and acting. Recent survey results in one large organization indicate that only 26% of managers believe they are recognized and reinforced for their ethical decisions and behaviors. Employees have a big stake in the way managers evaluate and operate. Managers and nonsupervisory employees alike cite concern about "politics and lack of fair treatment, honesty, and truthfulness" in connection with the performance review. Experience has clearly indicated that the handling of performance review sessions is usually far more critical than the decision made or information conveyed in the session. Frequently, when unsuccessful candidates for promotions are notified of the decision that someone else has been selected they are not told why. Often they are not told anything, usually because the managers or supervisors do not feel equipped or skillful enough to explain the reasons in a systematic s ystematic and rational way. Sometimes, major miscommunications occur in performance review sessions due to basic differences in ethical orientation. For example, the reviewer may say, "That report is a requirement, and we need to follow the rules of the organization." The person being reviewed may reply, "I make a significant contribution to this organization, and I don't have time to prepare reports that no one looks at. Judge me on what I accomplish." What is going on here? The reviewer is concerned with decisions and actions that conform to basic principles and rules (adherence). The employee appears to be oriented toward the outcome - the ends justify the means (results). They are talking on two different, nonconnecting planes. Unless the employee and the reviewer are successful in negotiating an ethical balance, each may view the other as taking unfair shots - and the battleground will be the performance review process.
The overall objective of high-ethics performance review should be to provide an honest assessment of performance and to mutually develop a plan to improve the individual's effectiveness. That requires telling people where they stand and being straight with them. It is important to keep the following points in mind:
What are the primary objectives of the organization - i.e., what is the organization's purpose? What is valued most - adherence or results? How is this person expected to contribute to the organization? What is this person's position on the team? How well does he or she fill that position? If you really want to know what concerns the individual, ask the following types of questions: What results do you expect from this performance review session? What is your biggest frustration? How do you feel about your department and the organization? What do you want to accomplish? How do you want to spend your time?
The following conventions/practices can guide to conduct the performance appraisal based on ethics: Follow the Law
The first step to conducting an ethical performance appraisal is to ensure you are in compliance with all laws and regulations regarding this process. It is important to conduct legal performance appraisals to avoid future litigation. Even nonperforming employees might be successful in suing your company for unlawful firing if performance appraisals are conducted illegally. Additionally, it is important to avoid any behaviors that might be perceived as harassment during the appraisal procedure.
Training and Appraisers:
Because appraisal is important and sometimes difficult, it would be useful to provide training to appraisers namely insights and ideas on rating, documenting appraisals, and conducting appraisal interviews. Familiarity with rating errors can improve rater performance and this may inject the needed confidence in appraisers to look into performance ratings more objectively.
Reliability and validity:
Appraisal system should provide consistent, reliable and valid information and data, which can be used to defend the organization-even in legal challenges. If two appraisers are equally qualified and competent to appraise an employee with the help of same appraisal technique, their ratings should agree with each other. Then the technique satisfies the condition of inter-rater reliability. Appraisals must also satisfy the condition of validity be measuring what they are supposed to measure. For example, if appraisal is made for potential of an employee for promotion, it should supply the information and data relating to potentialities of the employee to take up higher responsibilities and carry on activities at higher level.
Job Relatedness: The appraisal technique should measure the performance and provide information in Job related activities/areas. Standardization: Appraisal forms, procedures, administration of techniques, rating etc. should be standardized as appraisal decisions affect all employees of the group. Practical Viability: The techniques should be practically viable to administer, possible to implement and economical regarding cost aspect. Assessment of Performance
When conducting performance appraisals, it is important to provide an honest assessment of the employee's performance. It is essential the manager consider her own biases that might affect her judgment of the worker's performance. Preparation for the performance appraisal should also be an ongoing process. Because managers usually only remember the latest actions, it is imperative that they maintain ongoing documentation of each employee's performance on a day-to-day basis. This documentation should consist of evidence of both positive and negative activities when applicable. Nothing should be overlooked or discarded if the manager hopes to perform an ethical performance appraisal. Communication
Talk with the employee, not at him. Ethical managers take the time to discuss the performance appraisal, inviting input from the worker. It is important to ask the employee what concerns he might have and find out what he believes are roadblocks to his
successful performance. In some cases, a worker might be underperforming because of situations beyond his control. It is up to the manager to determine the best way to clear these roadblocks. Ethical managers also will take steps to communicate expectations clearly. It is important to use positive reinforcement and make sure the employee understands the purpose of the performance appraisal is to develop the worker into a more productive employee. Most employees want to know how well they are performing on the job. A good appraisal system provides the needed feedback on a continuing basis. The appraisal interviews should permit both parties to learn about the gaps and prepare themselves for future. To this end, managers should clearly explain their performance expectations to their subordinates in advance of the appraisals period. Once this is known it becomes easy for employees to learn about the yardsticks and, if possible, try to improve their performance in future. Employee Access to Results:
Employees should know the rules of the game. They should receive adequate feedback on their performance. If performance appraisals are meant for improving employee ’s performance, then withholding appraisals results would not serve any purpose. Employees simply could not perform better without having access to this information. Permitting employees to review the results of their appraisal allows them to detect any errors that may have been made. If they disagree with the evaluation, they can even challenge the same through formal channels. It follows then that formal procedures should be developed to enable employees who disagree with appraisal results which are considered to be inaccurate or unfair. They mus t have the means for pursuing their grievances and having them addressed objectively. Warning
Remember, just because an action might be legal, it might not necessarily be ethical. Even though you have carefully adhered to all laws regarding the performance-appraisal process, if the employee has a perception of being wronged, the manager-employee relationship will be affected. Even just the perception of unethical practices can make employees distrust the performance-appraisal process.
