Category Archives: Performance Appraisal

Annual Performance Evaluations are a Poor Management Practice

Sports provides visible examples of the futility of accurate performance appraisal. We have athletes who thousands of people devote a huge amount of time to dissecting their strengths and weaknesses and those evaluations are constantly shown to be wrong. Teams are constantly paying free agents tens of millions that completely flop. Others hire someone no-one else wanted for the league minimum and they become a big contributor. Yes, it isn’t hard to figure out Stephen Curry is a far better … Continue reading →

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My Willing Worker Award

Here is an image of the employee of the quarter award I received from Bill Scherkenbach. I have received other awards and I don’t think those awards were given with any more understanding of the contributions to results due to the management systems in those cases than was shown when giving me this award. Even knowing how little impact I could make on the results I was still happy to receive this award: psychology is not always (often? ever?) sensible. … Continue reading →

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Motivation, Rewards, Performance Appraisals and Your Career

In this interview Dan Pink again makes some great points relating to psychology, managing people and managing your career. Q. What kinds of programs can managers and companies put into place to motivate their workforce? Assuming companies are paying people fairly, they should do what they can to foster autonomy, mastery, and purpose. One of my favorite specific ideas is this: The Australian company Atlassian conducts what they call “FedEx Days” in which people work on anything they want for … Continue reading →

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Annual Performance Reviews Are Obsolete

Sam Goodner, the CEO of Catapult Systems, wrote about his decision to eliminate the annual performance appraisal [the broken link was removed]. the most critical flaw of our old process was that the feedback itself was too infrequent and too far removed from the actual behavior to have any measurable impact on employee performance. … I decided to completely eliminate of our annual performance review process and replace it with a real-time performance feedback dashboard.” I think this is a … Continue reading →

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Problems With Student Evaluations as Measures of Teacher Performance

Dr. Deming was, among other things a professor. He found the evaluation of professors by students an unimportant (and often counterproductive measure) – used in some places for awards and performance appraisal. He said for such a measure to be useful it should survey students 20 years later to see which professors made a difference to the students. Here is an interesting paper that explored some of these ideas. Does Professor Quality Matter? Evidence from Random Assignment of Students to … Continue reading →

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Get Rid of the Performance Review

How Much Do You Hate Performance Reviews? by Bob Sutton Deming emphasized that forced rankings and other merit ratings that breed internal competition are bad management because they undermine motivation and breed contempt for management among people who, at least at first, were doing good work. … If you want to read the most compelling and complete case against the traditional performance evaluation, however,I suggest that you pre-order UCLA Professor Sam Culbert’s new book Get Rid of the Performance Review. … Continue reading →

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The Trouble with Incentives: They Work

Gipsie B. Ranney has a great new article – The Trouble with Incentives: They Work I have wondered whether the escalation of pay, perks and parachutes for CEOs actually tends to attract individuals who are primarily extrinsically motivated, rather than individuals who are seriously interested in creating value. Several recent examples appear to be consistent with this view. … An important issue with regard to incentives is possible effects on teamwork and cooperation. If the incentive system is set up … Continue reading →

Posted in Competition, Deming, Management, Management Articles, Performance Appraisal, Psychology, Systems thinking | Tagged , , , , , , , , | 8 Comments

No More Executive Bonuses!

Henry Mintzberg, wrote an excellent article for the Wall Street Journal today, No More Executive Bonuses! Don’t pay any bonuses. Nothing. This may sound extreme. But when you look at the way the compensation game is played – and the assumptions that are made by those who want to reform it – you can come to no other conclusion. The system simply can’t be fixed. Executive bonuses – especially in the form of stock and option grants—represent the most prominent … Continue reading →

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Extrinsic Incentives Kill Creativity

If you read this blog, you know I believe extrinsic motivation is a poor strategy. This TED webcast Dan Pink discusses studies showing extrinsic rewards failing. This is a great webcast, definitely worth 20 minutes of your time. “you’ve got an incentive designed to sharpen thinking and accelerate creativity and it does just the opposite. It dulls thinking and blocks creativity… This has been replicated over and over and over again for nearly 40 years. These contingent motivators, if you … Continue reading →

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An Introduction to Deming’s Management Ideas by Peter Scholtes (webcast)

An Introduction to Deming’s Management Teaching and Philosophy by Peter Scholtes – webcast from the Annual W. Edwards Deming Institute conference in Madison, Wisconsin, November 9th, 2008. My previous post on this speech: 6 Leadership Competencies. Next month, the Annual Deming Institute conference will be held at Purdue on Oct 10th, 2009. Related: Peter Scholtes’ Life – Curious Cat’s Deming on Management – The Leader’s Handbook – Performance without Appraisal

Posted in Creativity, curiouscat.com, Deming, Education, Innovation, Lean thinking, Management, Performance Appraisal, Popular, Process improvement, Psychology, quote, Respect, Science, Systems thinking, webcast | Tagged , , , , , , , , , , , | 4 Comments

Dr. Deming Webcast on the 5 Deadly Diseases

The W. Edwards Deming Institute has posted Dr. Deming’s 1984 video on the 5 deadly diseases of western management. Lack of constancy of purpose Emphasis on short term profits – “creative” accounting, focus on quarterly profits Annual Performance Appraisals – management by objective, management by fear Mobility of management – [see Toyota for a great example of a company that operates on different principles – where the leadership has been with Toyota for decades] Running a company on visible figures … Continue reading →

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When Performance-related Pay Backfires

When Economic Incentives Backfire by Samuel Bowles, Sante Fe Institute Dozens of recent experiments show that rewarding self-interest with Economic incentives can backfire when they undermine what Adam Smith called “the moral sentiments.” Punished by Rewards, by Alfie Kohn, is a great book on this topic. The area of “motivating” employees is one it is often hard for managers to learn. Even managers that have been studying Deming, Ackoff, Ohno… for years still have trouble with the idea that trying … Continue reading →

Posted in Competition, Data, Deming, Economics, Management, Performance Appraisal, Psychology, quote, Statistics, Systems thinking | Tagged , , , , , , | 4 Comments

The Trouble with Performance Reviews by Jeffrey Pfeffer

The Trouble with Performance Reviews [the broken link was removed] by Jeffrey Pfeffer Managers don’t like giving appraisals, and employees don’t like getting them. Perhaps they’re not liked because both parties suspect what the evidence has proved for decades: Traditional performance appraisals don’t work. But as my colleague and fellow Stanford professor Bob Sutton and I pointed out in our book, Hard Facts, Dangerous Half-Truths, and Total Nonsense: Profiting from Evidence-Based Management, belief and conventional wisdom often trump the facts. … Continue reading →

Posted in Deming, Lean thinking, Management, Management Articles, Performance Appraisal, Respect, Systems thinking, Toyota Production System (TPS) | Tagged , , , | 2 Comments

Red Bead Experiment Webcast

Dr. Deming used the red bead experiment to present a view into management practices and his management philosophy. The experiment provides insight into all four aspects of Dr. Deming’s management system: understanding variation, understanding psychology, systems thinking and the theory of knowledge. Red Bead Experiment by Steve Prevette Various techniques are used to ensure a quality (no red bead) product. There are quality control inspectors, feedback to the workers, merit pay for superior performance, performance appraisals, procedure compliance, posters and … Continue reading →

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Get Rid of the Performance Review

Get Rid of the Performance Review! by Samuel Culbert To make my case, I offer seven reasons why I find performance reviews ill-advised and bogus. … Inevitably reviews are political and subjective, and create schisms in boss-employee relationships. The link between pay and performance is tenuous at best. And the notion of objectivity is absurd; people who switch jobs often get much different evaluations from their new bosses. … Raises are then determined by the boss, and the boss’s boss, … Continue reading →

Posted in Deming, Management, Performance Appraisal | Tagged , , | 1 Comment

Performance Appraisal Problems

More and more people are willing to state the frustration with the performance appraisal process. Some have been willing to take the logical step of eliminating that which causes problems but many still don’t think elimination of performance appraisals is acceptable. Performance Reviews: Many Need Improvement According to one study by Watson Wyatt, the human resources consulting firm, only 3 in 10 employees believed that their companies’ performance review system actually improved performance. In another study by the firm, almost … Continue reading →

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