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Ahead of the curve: The future of performance management

Ahead of the curve: The future of performance management
What happens after companies jettison traditional year-end evaluations? The worst-kept secret in companies has long been the fact that the yearly ritual of evaluating (and sometimes rating and ranking) the performance of employees epitomizes the absurdities of corporate life. Managers and staff alike too often view performance management as time consuming, excessively subjective, demotivating, and ultimately unhelpful. In these cases, it does little to improve the performance of employees. It may even undermine their performance as they struggle with ratings, worry about compensation, and try to make sense of performance feedback. These aren’t new issues, but they have become increasingly blatant as jobs in many businesses have evolved over the past 15 years. Yet nearly nine out of ten companies around the world continue not only to generate performance scores for employees but also to use them as the basis for compensation decisions. Answers are emerging. But change they must.

http://www.mckinsey.com/business-functions/organization/our-insights/ahead-of-the-curve-the-future-of-performance-management

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