“Very few companies have meaningful evaluation systems in place. That’s not just bad – it’s terrible!”

Honesty does not seem to be the best policy in corporate
America. When it comes to evaluating people fairly about
their work, most companies fail miserably. Former CEO of
General Electric Co, Jack Welch, says companies that do not
give honest feedback to their people cannot effectively
manage employees. Instead, leaders need to ensure that
there are steps in place for their employees to get relevant
feedback.

Feedback should be based on criteria that both management
and employees agree upon. This type of evaluation can
come in many forms. For example, most companies give
raises on performance evaluations that happen only once or
twice each year. In actual fact, more frequent and informal
feedback is immeasurably more productive. Welch writes in
his book ‘Winning’: “I evaluated 20 or so direct reports with
frequent handwritten notes that included two pieces of information
‒ what I thought the person did well, and how I
thought they could improve.”

According to Welch, even companies with good evaluation
systems usually miss the most crucial element – integrity.
Since most companies focus on the bottom line, managers
often overlook personal conduct when the result is bigger
profits. Keep in mind that sometimes, it is the little things that
matter.

Finally, merit-based awards and recognition, Welch says,
should be standard. After all, everyone likes to know their
work is appreciated.