Answer:
Performance management and measure is a tricky tool. It's success and failure depends upon few factors
1) Company's Culture
2) Training programs for employees related to performance management tool.
What actually makes performance management fail is to ignore company's culture while implementing performance management system. If your system is traditional in vibrant or democratic cultured company then it may fail and vise versa. We call it need assessment, in this process HR assess the need and factors that affect the performance system and then suggest and implement appropriate system that is aligned with the company's culture.
Second factor is training for employees, if management implements a system or tool for performance measure and failed to train their employees on that system and measure then it will fail.
For performance management system to work, management may needs to change their policies too.
Actual situation:
Well, i have been working in HR department for 6 years now. We implemented 360 degree system in which not only manager but peer, subordinate and client also evaluate the employee's performance. We also did training sessions for employees to better cope up with the new system.
Desired Outcome:
Real picture of an employee performance.
Actual Outcome:
Fake picture of employees performance and buttering culture.
Reason for failure:
We failed to incorporate the culture of the organization. We didn't made any effort to understand and transform the culture according to the evaluation system that we are going to use. That actually creates the problem. Employees started to evaluate their peers and managers good, only because in return they will be graded good. So, it creates a buttering culture in the company. Which was far from actual measure of performance for an employee.
Solution:
To solve this problem, we actually transformed company's culture by valuing the truth and changing company's policy.
