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Most employees don't like performance appraisal time - and most Managers dread it even more. It's such a great way to bring down the morale in any company. This presentation will be an interactive look at using Measurement System Analysis to manage the people side of the business. Based on several studies some completed by Master Black Belts, some during an actual event, and some during Green Belt and Black Belt training on scoring of performance appraisals, it was found that not only do different managers score the same appraisal differently, but the same manager will also score the same appraisal differently when tasked with scoring on different days or different times during the day. The outcome of the presentation will be guidelines to help take the fuzziness out of scoring criteria and improve the morale of employees during appraisal time.

It may sound a bit bizarre, trying to use measurement system analysis (also known as Gage R&Rs) for performance appraisals, but this presentation will show you the results that prove, if applied correctly, the results will be just as meaningful as on any piece of equipment tested in your labs.

It all began for me with a project I was asked to facilitate on the performance appraisal system at an aerospace company. It’s a fact that I have yet to find any employee that enjoys performance appraisal time – whether it’s the giver or the receiver! The data collected on the project included the following: “For the past five years, in every one of the 19 employee surveys sent out to all employees, performance appraisals have ranked absolutely last in satisfaction. Five years ago there were 53 employees who refused to sign their performance appraisals, and 22 of those appended comments directly related to the unfairness of the rating process. This past year that number of refusals to sign has jumped to 187, with those who commented on the appraisal process at 156.”

As a result of the work of this team, the satisfaction of the performance appraisal system went from the <10th percentile to the 31 – 40th percentile! A little more probing by the Human Resources group shows the actual percentage to be just over 38%. Not only did the satisfaction greatly increase, but the number of refusals to sign had dropped from 187 to 9! Not one person of the 9 refusals cited anything to do with the appraisal process! Project success!!

It is through non-traditional uses of tools such as the Measurement System Analysis that we can continue to improve the “above the factory” processes that cost us the most. Employee satisfaction may not have a place on the profit and loss statements, but we all know how easily it can affect that bottom line.