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Management Coaching vs. Performance Appraisals

By: CMOE Development Team



 The question often comes up, “Isn’t management coaching a lot
like the familiar performance appraisal process?” Our answer is
that the two are dramatically different. The CMOE team
originally became interested in the coaching process because of
our experiences with the deficiencies of performance appraisal.
We were asked to devise a customized performance appraisal
system, along with a training program, for a Fortune 500
corporation. After working through the resistance that naturally
accompanies adoption of a massive program such as this, we
noticed one consistent piece of feedback coming from managers at
all levels. That message was, “Give us some help, ideas, and
training on how to manage an employee’s performance from day to
day, from one concern to the next.” These managers grew to
accept the performance appraisal process, but they felt that an
annual or series of annual performance reviews wasn’t the answer
to improving employee performance and maximizing cooperation.
Something less formal and more flexible was needed to use with
employees on a more frequent basis. So we began our preliminary
research and data gathering to construct a coaching model or
tool to address this very appropriate objection to performance
appraisal as the primary management tool for human
resources. 

Because of this experience, we spend considerable time
delineating and defining the differences between these two
processes. The table below has a few points that helps
differentiates the two methods. We hope it will reduce confusion
and ambiguity and be useful for those who may be interested in
using both processes in their organizations. 
Managem
ent Coaching vs. Performance Appraisal
Definition  Interpersonal influence,
exercised by a leader in specific situations or in response to
critical incidents or development opportunities, designed to
attain a specific goal or planned change in behavior or
attitude. Integrative and interactive communication, dialogue,
and exchange are used to gain employee’s support for new
direction and change. Formal and more general feedback
and information at predetermined intervals designed to apprise
employees of the leader’s perception of job effort and success.
To let employees now how they are doing and their relative value
to the organization.  
Goals/Outcomes  To take
immediate and full advantage of development opportunities as
they occur. To have the employee understand and accept changes
that will increase their effectiveness. To eliminate obstacles
and impediments to better performance. To provide
information for management decision making (rewards,
compensation, discipline, promotions, training, succession
planning, etc.) To reinforce desired behaviors and objectively
evaluate performance over time. To close the books on post
performance and plan new goals for the coming year.



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