Despite having a formal performance management system in place, companies may, at times, find that employees and managers are not effectively trained to conduct performance reviews. Some common concerns include giving high ratings to avoid difficult conversations and focusing on an employee’s recent mistakes while ignoring months of their solid performance. This can lead to rater bias. Likewise, some employees may even not fully understand how their work is being evaluated.
When managers and employees are effectively trained on performance management, it can lead to a positive experience where employees are valued for their contributions, cultural competence, innovation, and expertise. Managers as mentors can provide their employees with the guidance needed to develop. Employees can be trained on positive approaches to performance management that make difficult performance conversations less intense and more productive by encouraging an interactive appreciative dialogue.
Read this article: How to Evolve From Manager to Mentor and Create a Lasting Impact in Your Organization.
Why should managers and employees be trained on performance management?
What performance management topics can managers and employees be trained on, and why?
What types of rater bias can be addressed with effective training?
What role does mentoring play in performance management?
Use this template to complete this assignment: U3 IP Template.
2. Performance Management Topics for Training
Effective training should focus on skills that enable managers to shift from a focus on tasks and authority to one on development and advocacy.
| Training Topic | Why It's Necessary |
| Rater Bias Mitigation | To reduce common errors like leniency, recency, and halo effects, ensuring fair and accurate evaluations based on the full scope of an employee's performance. |
| Active Listening and Two-Way Communication | To ensure managers genuinely hear employee perspectives, challenges, and aspirations (moving from authority to advocacy). This builds trust and fosters open conversations during one-on-ones. |
| Feedback Delivery (Constructive and Continuous) | To move away from the annual review model to real-time feedback. Training should cover balancing positive reinforcement with areas for growth, and providing specific, actionable insights. |
| Goal Alignment and Expectation Setting | To ensure employees understand how their daily work connects to the organization's mission and long-term goals, providing a sense of purpose and clear criteria for evaluation. |
| Coaching for Development/Growth Mindset | To equip managers to support employees when they make mistakes, framing setbacks as learning experiences. This encourages continuous learning and adaptation to change. |
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3. Types of Rater Bias Addressed with Effective Training
Effective training specifically targets errors in judgment and perception that distort performance ratings. Biases mentioned or implied by the prompt's context (giving high ratings/focusing on recent mistakes) and other common biases include:
Leniency Bias: Addressed by training that stresses the importance of differentiating performance levels and avoiding giving universally high ratings simply to avoid difficult conversations.
Recency Bias: Addressed by training managers to document performance consistently throughout the review period, ensuring the evaluation is based on months of solid performance and not just recent events or mistakes.
Halo/Horns Effect: Addressed by training managers to evaluate each performance dimension independently. The Halo Effect is when a single positive trait (e.g., punctuality) unfairly inflates all other ratings. The Horns Effect is the opposite—one negative trait unfairly deflates all ratings.
Sample Answer
Performance Management Training
1. Why Managers and Employees Should Be Trained on Performance Management
Managers and employees need training to move beyond the traditional, often ineffective performance review process and create a positive, productive experience.
For Managers: Training addresses issues like rater bias (giving high ratings to avoid difficult conversations or focusing only on recent mistakes) and ensures they can effectively act as mentors. Training equips managers to provide constructive and continuous feedback in real-time, focusing on specific, actionable insights rather than waiting for formal reviews, thus fostering a culture of continuous improvement.
For Employees: Training ensures they fully understand how their work is being evaluated and encourages an interactive appreciative dialogue during reviews. This promotes a positive experience where they feel valued for their contributions, cultural competence, innovation, and expertise, making difficult performance conversations less intense and more productive.