Meaningful dialogues make for best performance reviews

The process should help employees express, bring out their hidden talents, and help them prepare for challenges, writes Bhima Rao.

The groundwork for performance review arises from the organization’s policy and processes, and it is also highly linked to the vision & mission of the organization. Performance reviews will lead to achieving organizational goals.

Thus, it starts with setting key performance indicators for individuals and teams. The performance review format encompasses a set of documents with data and brief explanations about achievements. However, the real performance review kick starts when dialogue occurs between the Appraiser and the Appraisee, known as performance conversation or dialogue. 

It is well-known that “dialogue” is a communication process between two or more persons. In the dialogue, individuals will always have different perspectives and views, and, at the same time, they are aware that the dialogue aims to come to some level of understanding or to the full extent if possible. The result of dialogue depends upon the specific purpose and the setting where dialogue takes place.

At the beginning of the year, the purpose of a performance dialogue is to review the  Key Performance Indicators (KPI), set and agree to achieve certain goals both in quantitative and qualitative terms, understand and review the appraisee’s current performance level and plan for future development and to develop specific competencies of the individual. It will help appraisees realize their full potential and build strong relationships with their managers, peers, and subordinates.

The dialogue process

The Performance Dialogue and review process is a potent managerial and organizational process. The effectiveness of a performance review depends on the Dialogue and continuous interaction between the appraiser and appraisee. Dialogue is considered the heart and soul of the performance review system. Unlike the confidential report system practised in most Governmental organizations, it is a two-way process and an open review system. 

Dialogue practices/processes vary from department to department and organization to organization. Essentially, it is a continuous interaction process between the appraisee and appraiser, who will meet weekly, monthly, quarterly or half yearly and finally, once a year to review the job results against the set KPIs and plan for future growth and development. To commence the performance dialogue, the appraisee should complete the appropriate documentation before this meeting as per the guidelines or as advised by the Appraiser.

The dialogue is a highly sensitive aspect

The dialogue between the appraiser and appraisee is the most critical part of the performance review process. It is a human process that requires sensitivity, skills, and training from the Appraiser. Before entering into dialogue, the appraiser must thoroughly study the performance review document and analyse the performance data from direct and indirect sources.

The Appraiser is required to set the tone for the two-way discussion. Here, the appraiser gets an opportunity to share comments elaborately, new ideas, overall assessment ratings and what further improvements are expected. Then, the appraisee can share his/her expectations of the appraiser and the support required to achieve certain critical assignments.  

The performance dialogue should be simple, direct, honest, and share thoughts on one basis. Lastly, at times, it may be blunt, but offering and receiving genuine feedback is essential. The entire dialogue process should not be dragging, lenient or unduly harsh. Particularly, the appraiser should not have prejudice and bias. Equity and fairness during the dialogue will strengthen the performance review process. In the end, the dialogue process should uphold the organisation’s standards, enable it to look at the positive side of the employee, take realistic new steps to harness the hidden talent and look forward to superior performance. 

The performance dialogue process is an essential part of any review. It is practised in most private organisations, mainly in progressive organizations, such as IT or ITES or the service sector manufacturing sector. This process helps the employees to understand their strengths and areas for improvement. It will help them to develop their career in the right direction. The Performance dialogue can be done openly on a one-to-one basis, or it can be done online, too.  

Such practices are rarely seen in most Micro, Small and Medium Enterprises and Governmental organisations. The assessment is done secretly, or no formal performance review will occur. The dialogue process should be part of the overall performance review. The same should be adopted diligently to provide an opportunity to express, bring out their hidden talents, develop their technical and leadership skills, prepare them for the future and be ready to combat unknown challenges.  

(The author is a human resource adviser and trainer)