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Ruru (Mar 4 2013)

Performance evaluations are furaght with problems anyway.I took MBA classes at Oakland University, which is less than a mile from the old Chrysler HQ. When we talked about performance evaluations in my HR class, we had about a dozen Chrysler managers and employees in my class.They had an evaluation system where the manager had to rate all of their employees on a curve. I forgot the exact numbers, but they would have to pick X number of their employees as star performers and they were required to label Y number of employees as poor performers. This caused incredible anguish for the employees and also the managers, especially for the small teams. What if you only had four employees? Which one were you going to pick to get the black mark? What if they all did a good job? Tough. Still have to give someone a black mark.Not a great system if you adhere to a Deming style look to the system for source of failures philosophy. To what extent is success or failure is due to the employee or due to the system? That should be also be reflected in goal choice. Deming has some great examples of this problem.I worked for a well run manufacturing company that had a goal setting evaluation process. Every six months, there would be an evaluation where goals were set and the last set of goals were evaluated. I think this works pretty good for manufacturing: improve production, less defects, avoid hot end upsets (don't ask). It works fine in sales, too: get more customers, increase sales, etc. Very measurable.However, this is more difficult for support and professional positions. What measurable goals would you set for an accountant? A lawyer? An Engineer? A programmer? Its hard to find good metrics for these types of positions, especially ones so simple and that correlate so directly to company success as production and sales metrics do.But, then you get what you measure for. My dad has a great story from when he managed a store for a national chain. They wanted to improve credit collections, so they offered a bonus pool where all the stores that made collection goals took a share of the pool. Since few stores made their numbers, the bonus to the stores that did could get very large. So, my Dad took some very creative and drastic (from the parent company's standpoint) measures to make sure he made those numbers and got the bonus. Because of the structure of the goal and the accounting, his store made huge bonuses for managing what was a relatively small portfolio of credit from the chain perspective. Probably not what they had in mind when they developed the bonus system. Be careful what you measure for. You may get it.Setting goals and performance evaluation is a hard, but interesting topic.

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