Performance Management and the Pony Express

The practice of rating individuals’ performance on a numerical scale doesn’t accomplish the task managers expect from it, which is to accelerate the performance of their people. At best, it serves other goals: allocating compensation fairly, and aligning each individual’s goals with the values and strategies of the company. However, even if these were sufficient goals, managers would still be frustrated by how poorly ratings-based Human Capital Management (HCM) systems achieves them. Here are the two intractable problems with today’s approach.

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