I generally support that argument, but merit pay in the public sector is no slam dunk either, as pointed out in a recent NYT op-ed by UCLA management prof Sam Culbert. As Jenkins MBAs all learn in their first semester, it is not easy to define performance and it is even more difficult to adopt appropriate metrics.
Performance reviews corrupt the system by getting employees to focus on pleasing the boss, rather than on achieving desired results.Culbert thinks performance reviews should be replaced by a process he calls "performance previews" where the boss and the employee agree on goals and metrics, followed by regular consultations to make sure the targets are being met (or, if need be, readjusted).
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