Conducting performance reviews.

• Author: Dibble, Marcia C.
• Position: Brief Article

Though we seem to be coming out of it, 2001's year-end economic rut will still be on the minds of many during performance reviews this year. But how measurably 2001's slump actually affects a company's evaluations depends immeasurably on its review philosophy.

"There are two major kinds of reviews that companies do, and there are philosophical differences," notes Dr. David J. Cherrington, a professor of organizational leadership and strategy at BYU's Marriott School of Management. "Some organizations' reviews focus more on outcomes than on behaviors. What did [the employees] produce, make, how many sales.... Those types of reviews are impacted greatly by economic factors. But some focus primarily on behaviors, such as how well ther've been able to make decisions, to maintain morale, to communicate.... Those factors are much less impacted by quality of economic activity."

Inddependently of his work at BYU, where he has taught for 29 years, Cherrington privately consults with businesses on human resource management issues and practices. In evaluating performance, Cherrington strongly suggests that evaluators look more closely at these "behaviorally anchored rating scales" than at arbitrary goals such as sales targets that may not be attainable due to ungovernable elements.

"I don't think performance evaluations ought to be impacted by economic factors such as interest rates and unemployment that are beyond the control of the employee. A review ought to emphasize what an employee did do."

Kent Streuling, Utah HR director for America First Credit Union and director-elect for the Utah chapter of the Society for Human Resource Management, agrees with Cherrington's philosophy. Now more than four years into his position with America First, Streuling spent the previous six-plus years building an HR department for the fledgling Delta Center and its affiliates, including the Utah Jazz and KJZZ TV. All this time, he has been searching for an ideal performance appraisal tool, something he thinks he's found at last. The electronic system focuses on teamwork, attitude, job knowledge, quality of skill sets and customer service [or, as America First terms it, "member service"); the company's core values; and progress toward yearly goals (such as assignments to improve a skill or learn a new one). Employees have two bonus-period evaluations each year, as well as a more comprehensive yearly review on their anniversary of hire.

"This system allows...