Tag Archives: HR

What your mother-in-law can teach you about performance reviews

May 19, 2015 By in HR Tags: ,

Here is a secret – managers do not dislike employee performance reviews because the reviews are difficult, but because the managers are usually decent people.

Formal performance reviews are presented as a positive feedback mechanism that helps employees develop. The reality is that performance reviews usually happen once a year, and that is far too infrequent to be of any use. Even the most aggressive review programme maxes out at four times a year, still too infrequent to be of any use.

In a normally functioning company, useful feedback to any employee is in the form of continual informal feedback over the whole year. A formal review adds no real value to employee development over and above an informal feedback process.

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The Importance of a Culture of Trust

April 7, 2015 By in Leadership Cornerstone, Leadership, Management Tags: , , 1 Comment

This blog recently talked about the importance of trust-based systems, as opposed to personal trust. This article continues investigating the role of trust in business with a focus on the importance of building a culture of trust.

The prime mistake made with respect to building a culture of trust in a business is believing that the aim is to have senior employees trust more junior employees. This is the complete opposite of what is needed, and the core reason that so many corporate cultures lack an element of trust.

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Things That Would Probably Make Tony Say Hmmmm…

January 31, 2015 By in HR Tags:

I first became exposed to the term Limousine Liberal when I arrived in the United States to attend university. For those who don’t know, Limousine Liberal is a less than flattering term used in politics to describe rich people who espouse left leaning policies but don’t adhere by them. You must use an environmental friendly Prius, please ignore my 12 cylinder gas guzzling Land Cruiser. You must use the bus, please excuse my S63 Mercedes. You know the type of person.

I believe that I have uncovered a similar sickness in the world of business. I have decided on a preliminary name of Bourgeois Bolshevik. This is a person who espouses complete garbage under the guise of being a friend of the regular employee. I have collected some evidence. Shall we begin?

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The Pirate Code is behind Pay Inequality

January 28, 2015 By in Game Theory Tags: , , , ,

In the fourth article of the game theory series, we build on the Saudis out-bluffing OPEC and The Joker forcing the good people of Gotham to choose between game theory and Batman. In this installment, you will learn how blood thirsty, treasure hunting pirates might just explain the ridiculously large wage gaps in modern day corporations. To set the stage, one must think like a pirate, indeed be the pirate. I do not mean the rum soaked debauchery of commercially suggestible women in a tavern named Hurricane. What I mean when I say ‘think like a pirate’ is think selfishly. That’s what successful senior executives do. Isn’t it?

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Performance Appraisals Gone Wild

December 7, 2014 By in HR Tags: , ,

Performance appraisals are a great idea usually badly implemented. Early in my career a new Head of HR showed up and implemented a complete overhaul of HR not only without input from the rest of the company but with no transparency as to what the new HR systems were. Then the time came for performance appraisals and the madness began. On a 1 to 5 scale we were instructed that 3 was good, 4 was excellent and nobody should get a 5.

I diligently went through the appraisals with my team and submitted them to HR. They requested a meeting. Present at the meeting were the Department Head of HR, we’ll call him Rajesh, and a mid-level HR person who we’ll call Asha. Finally there was a Divisional Head present who had nothing to do with HR. We’ll call him Simon. I was a Divisional Head.

So, now that we set the scene, Asha of all people opens the discussion. The company wide performance average was a little over 3 and the average for my division was well above 4. HR felt that this was not fair. The tremor in her voice belied her nervousness. Quoting a well known joke (later immortalised in a Dilbert cartoon) I asked if Asha wanted me to reduce my team’s scores or their actual performance. Nobody laughed. It was going to be one of those meetings. Continue reading →

Performance Reviews: Transforming Bureaucracy into Value

December 3, 2014 By in HR Tags: ,

Everybody agrees that performance reviews can, in theory, add tremendous value to a company and its employees. Everybody also agrees that in reality performance reviews are painful and often destructive. About the only point that is contested is who is at fault. Employees blame management. Management blames the employees. Everyone blames HR. Even HR. Continue reading →

An Effective Job Description Creates Value

November 30, 2014 By in HR Tags: ,

I have been a CEO at two companies and a senior executive or board director at several others. In nearly every job description for a CEO that I have seen is something similar to the following: “To develop, in conjunction with the Board, the Company’s strategy.” Sounds good but what does that mean, exactly? And how does sticking the board in the middle of it useful in any way other than to confuse who is responsible for what? A job description is supposed to be a map to an employee’s job. In reality it is usually a feel good statement that serves no practical value. Continue reading →

The Role of Meritocracy in Corporate and National Success

November 25, 2014 By in HR Tags: ,

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Meritocracy in the corporate world can be defined as hiring and promoting employees into positions based solely on their competence without any favouritism such as to relatives, known as nepotism, or to benefactors, known as cronyism. Meritocracy is such a strongly held concept in terms of the successful execution of any endeavour that nations have embraced it as a central tenet of their civil service where employment and placement are based on rigorous competitive exams. Singapore, arguably the poster child for successful emerging nations, has meritocracy as a basic national guiding principle. If nations are paying attention to meritocracy, should not businesses do the same?

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Is Hiring Any Different Than Pure Guessing?

November 23, 2014 By in HR Tags:

I must admit that I have found the recruitment process challenging in every single position that I have had. As a senior executive I have often been involved in hires by other managers and frankly they do not seem to fair any better. As far as I can tell there seems to be no correlation between the interview process and the quality of the hire. First pick hires often end up adding no value and at times even destroy value. Fourth picks often end up flourishing and becoming stars. Is there any reason to have an interview as part of the recruitment process? Continue reading →