Here’s a link along with accompanying video – to a very interesting piece from Strategy and Business with regard to ineffectiveness of the majority of Performance Management systems in operation in today’s organisations. The authors show that ranking people on a numerical basis leads to a “fight or flight” response from the recipient that more often than not does not have the effect desired – improving performance.
On the issue of feedback the authors had this to say:
“It is taken for granted that feedback motivates everyone to perform, and that top performers find it particularly useful. None of this is true. Although those with a growth mind-set react more positively to it than everyone else, typical feedback is not motivating, rewarding, or pleasant. According to one study, everyone hates it.”
The authors posit that a more effective approach eschews actual ranking and involves a structured conversation approach that adopts the principles Carol Dweck introduced with the “Growth Mindset” thereby focusing on continuously learning and trying to develop challenging goals.