I live in the US and last year began overseeing a foreign office that recently completed employee appraisals. The office had been underperforming, so we re-instituted performance reviews tied with department goals in order to get productivity back on track.
The problem is that many of the reviews came back inflated, which I admit is not unexpected. The problem is that I have an office that thinks they are performing higher than they really are and now are expecting raises.
Am I right to reject the performance reviews and instruct these to be redone? I'm concerned that I will exasperate our staff and that I'm relying too heavily on this particular carrot/stick to provoke change - especially in a country where annual raises are the norm and influenced only a little by performance.
I'm a frequent listener to Manager-Tools and am the first to use an engaged management style (like MT Trinity) with this office.
Thanks for any advice or pointers.