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Mark H's avatar

I have never seen performance management done well in any large organisation, I've been in 4 corporates, 3 schools and a consultant. Ratings are usually given following some pseudo-objective process involving collecting evidence which wastes everybody's time. In some settings, e.g. a sales environment, financial bonuses can work, but in most settings effective collaboration is more important than individual brilliance, so performance-related pay can be decisive and is usually counterproductive. It's a lazy, unsophisticated way to motivate people.

MICHAEL DAWSON's avatar

A very good post. I posted on this topic last year, focussing on performance-related pay - https://freeblogger.substack.com/p/managing-staff-performance-in-the

I came to the same conclusions and noted how there is plenty of evidence that performance related pay works, if there is a clear link from performance to pay and the incentives are large enough - something the civil service has never done. Also worth noting that this completely useless performance management mish-mash is presided over by the Cabinet Office which, from publicly available data, has around a thousand staff working on HR matters, spending c£60m a year.

My conclusions were: "As I was writing this blog, there was another news story about planned government cuts to the civil service, This time a 15% reduction in running costs by 2030. I hope that part of the reduction will come through a thorough review of what the government no longer needs to do or can do with fewer people. But it would be nice to think that the majority of any cuts would fall on the weakest performers. A well implemented system of performance pay would also be welcome, as it should motivate the best staff and help attract the good quality, risk-taking people that ministers say they want in the civil service. But given the civil service’s chronic inability to manage the performance of its staff, these particular outcome sound highly unlikely."

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