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Welcome to this seventh talk
on performance management.
The topic today is engagement,
motivation, and rewards.
I'm Pietro Micheli,
I'm a professor of
business performance
and innovation
at Warwick Business
School in the UK.
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When we talk about engagement,
we need to start
with engagement with
the performance
management approach
and cycle in the first place.
This is not easy to do.
We've done a lot of
work and research in
this field particularly
looking at what
individuals think about the use
of tools that we've mentioned so
far in this series of talks so
key performance indicators,
targets, appraisals,
rewards, and so on.
Very often, we see that one of
the consequences of what
we labeled in this report,
the tactical use of measurement,
which is very much
about looking at
inputs and trying to
control what we do,
is the fact that employees
tend not to buy into it.
What it means is that there
is not a lot of engagement and
the systems themselves are
not particularly used.
What we also saw,
and I'm showing you
some figures from
a report that we
wrote some years ago,
is the fact that about
two-thirds of CEOs or
people working in
senior management roles
are advocates of
performance management.
This number is very low
because if people at
the top of the organization
don't necessarily believe in it,
then we cannot really expect
the rest of the
organization to believe it.
In fact, if you look
at the figure of
engagements and the advocates
of performance management
in this survey,
there was lower than 10%
when you look at the
rest of the employee,
which is very, very low.
Essentially, what this figure
suggests is that as much as
organizations have
invested a lot
in creating scorecards,
dashboards and using
KPIs and targets,
what they have
actually created are
systems that are not necessarily
used or at least not used
as fully as they could be,
and that the level
of engagement that
people demonstrate is quite low.
Essentially, what we concluded
here is the fact that
those who measure
appear to be more
convinced of the value of
performance management than
those who are measured.
Even those who measure,
again the people in
senior management roles,
only about two-thirds of them
seems to be advocates of
performance management.
So starting from
these statistics,
then we can start to
see and say, well,
if we want individuals
to get more engaged
with this and use
the systems that we've
talked about more,
then there's something
that we need to
do in an intentional way.
