The performance management blog points to an interesting study by PeopleIQ that says that Only 13 percent of employees and managers and 6 percent of CEOs think their organization's performance appraisal is useful. And 88 percent say their current performance appraisal negatively impacts their opinion of HR.
This lead me to think...what would happen if HR palmed off the whole Performance Appraisal shindig?
Let's say, the Finance guy tells the business leads that $ x is budgeted for performance pay. The $x gets divided on the basis of the head count of each business line, and then the head of that business decides on how to hand over these dollars.
Why go thorugh the painful performance process if nobody thinks it adds any value?
That's cos' as a target , the PMS is a dead duck--soft, static and passive.
ReplyDeleteInstead thee question to ask is
What would the CEO do differently ?
Why doesn't he do it ?
The problem with most of the corporate planning and motivation alike is that its still based on the "industrial-age" Quota system called budgeting... a solution for resource starved times. Even today strategy and forecasts are held hostage to "Budgets" that are basically cash and capital distribution.. what you have now decides where these orgs think they can go to.. and how they believe they must "reward" their employees!
ReplyDeletecheers,
desh
blog: www.deshkapoor.org
Dr. Deming said of Performance Appraisals, "Stop doing them and things will get better." He was correct. Many organizations, however, wonder what to do instead.
ReplyDeleteFor those that do require "some alternative" Peter Scholtes included some good ideas in The Leader's Handbook (see chapter 9 "Performance without Appraisal pages 293 to 368). This chapter has excellent material for any manager.
Also there is a good book - Abolishing Performance Appraisals: Why They Backfire and What to Do Instead by Tom Coens, Mary Jenkins (forward by Peter Block), 2000, is another excellent source of "what to do instead."
For more see my, Performance without Appraisal post:
http://evop.blogspot.com/2005/04/performance-without-appraisal.html