On the eve of the New Year we complete our reflection on the Human Capital trends of 2013 with a look at performance management.
Performance management – the challenge of measures
The last part of Deloitte’s Human Capital Trends 2013 paper looks at the challenge of performance management, and how it, like so much else, is being transformed.
Deloitte discusses a number of emerging trends in performance management, and contrasts them with old-fashioned approaches. The paper is worth reading for the wide range of ideas that they discuss, and several of them relate to a particular area – performance measures.
Measures as incentives
Measures are important because they drive behavior. They bring the potential for praise and rewards, as well as for criticism and punishment. Getting the incentives right is vital to making any system work correctly, whether it’s a business, a computer game or the government of the United States.
Deloitte offers a lot of good advice on providing measures that incentivize the right behavior. Being very clear about objectives is important, as is connecting individual and team objectives to those of the wider organization. If the organization has an objective to move away from post and towards electronic communication, but an employee’s measures include one where success is sending out lots of letters, then he will not work towards that greater aim. Even slight mismatches can have huge impacts.
Ensuring that the right data is gathered also matters. Many performance data is gathered electronically, but feedback from co-workers can be vital in getting a fair and balanced view.
Links or other articles in this series:
- Article 1: The HR Economist
- Article 2: Open Talent Economy
- Article 3: Innovating the Talent Brand
- Article 4: The Right Kind of Flexibility
- Article 5: No More Supermen
- Article 6: Performance Management