In Search of Workforce Performance Excellence

Why annual reviews have to go

Even before the landmark publication of In Search of Excellence in 1982, bosses realized that operational excellence gets accomplished through dedicated employees. Yet, to this day, many organizations stifle high performance through the annual performance evaluation process for each employee. This problem is twofold, and the solution is in every organization’s grasp, but it requires a changed approach to engaging employees.

The twofold problem, as I see it, is
1. The annual performance review concept and process
2. The pay-for-performance compensation system

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Comments

Annual Reviews and Deming's Point 12

I'm surprised that in the context of this article, there is no mention of W. Edwards Deming's work in this area. His admonition to eliminate the system of "annual or merit rating" was loudly voiced in the '80s and we still have not received the message. People are human beings. They deserve to be treated as such. Internal motivation will then allow them to achieve satisfaction and even "joy", as Deming said, in the outcomes of their work and in the outcomes of the larger systems to which they contribute.

- Mike Harkins

Dr Deming

Why don't quality professionals read Deming?"In Out of the Crisis, page 101, Dr. Deming states the following as one of the seven deadly diseases:

Evaluation of performance, merit rating, or annual review… The idea of a merit rating is alluring. the sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people to do their best, for their own good. The effect is exactly the opposite of what the words promise."

Sorry Mike ... I just noticed your comment on the same point.