After all the effort and money we’ve put into performance review systems and policies, I know this may not be welcome. But for those who smelled something rotten but didn’t dare to speak out, here is some food for thought. Just an appetizer:
«They’re wildly inaccurate, for one: CEB’s research finds that two-thirds of employees who receive the highest scores in a typical performance management system are not actually the organization’s highest performers. Go figure. The reviews are ineffective, too: Managers told CEB that conventional reviews only generate a 3- to 5-percent improvement in employee performance. They’re also surprisingly inadequate: Just 23 percent of HR folks surveyed by the firm say they’re satisfied with their organizations’ performance evaluations, down from more than 50 percent a decade ago.»
You can find more here and here.
Are we damaging performance by trying to measure it in the wrong way? What do you think?