1. Provide examples of how performance measures might promote the wrong behaviours. 2. Why must performance measures...
Question:
1. Provide examples of how performance measures might promote the wrong behaviours.
2. Why must performance measures be regularly reviewed and updated?
The Globe and Mail(Canada) quotes an article written by Professor Pietro Micheli in Industry Weekin which he listed seven myths about performance management that promote the wrong behaviours. The following is a summary of these myths:
Myth 1: Numbers are objective
Numbers are open to interpretation and manipulation, so there is a danger that the numbers may not be accepted as valid. It is important to communicate what the numbers mean, and why they should be trusted.
Myth 2: Data are accurate
Compiling data is expensive so performance measures must meet cost/benefits criteria.
Myth 3: More measures add more value
Too many performance measures do not provide value since they can confuse and there is no time to use them. Find the measures that are important that tell you something you can act upon and then use just them.
Myth 4: Everyone should be aligned
The typical way in which managers try to create alignment can end up generating bureaucracy and negatively impacting on staff morale. Managers and employees need some discretion to adjust targets to fit their situation. For example, in a provincial health department it would be unwise to expect ambulances in urban and rural areas to hit the same targets.
Myth 5: Incentives do the trick
Managers believe that by setting targets and rewards, they will motivate employees to achieve organizational goals. There is a danger that employees become so fixated on the measures they forget the broader picture.
Myth 6: Performance measures foster change
Organizations often bring in performance indicators to point employees in new directions during periods of change. A dynamic system is required where performance measures are revised regularly.
Myth 7: Control leads to improvements
If you want to make improvements, the system must be dynamic, cost-effective, and encourage learning rather than control. If people feel the effort is really about control, they will be suspicious and disengage and will not result in improvements.
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