To meet this goal, a performance management system must provide some way to determine how employees are performing relative to their co-workers. Yet there is currently a trend in HR to “fix” performance management by eliminating the use of methods that compare employees based on performance.
This makes no sense since this is the very thing senior business leaders want from performance management!
The 2 performance management methods:
Via The Learning Factor
When I ask business leaders in large companies what they want from performance management systems, the answer usually includes “identify the top performers in the company.”
If we want to fix performance management, we must create methods that accurately classify employees based on past performance in a way that maximizes their future performance and retention. Rating employees to fit a bell-curve distribution is nonsensical, but identifying your top 10% of performers makes a lot of sense.
Performance management like people management is dead. The question to ask of all performance systems Does our system inspire and make it simple for people to bring their best to their work? Any answer other than a resounding yes means system must be improved.