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Topics Covered
- Balancing measurement
- Gaming
- Mitigating unnecessary measurement
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Talk Citation
Micheli, P. (2023, February 28). How to mitigate the negative effects of performance management [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved October 11, 2024, from https://doi.org/10.69645/HHBW3609.Export Citation (RIS)
Publication History
Other Talks in the Series: Introduction to Performance Management
Transcript
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0:00
Welcome to this eighth talk
on Performance Management.
My name is Pietro Micheli.
I'm a Professor of
Business Performance and
Innovation at Warwick
Business School in the UK.
The topic today is
how to mitigate
the negative effects of
performance management.
0:18
A key question when we look at
performance management
practices is to
think about how much
shall we measure.
In many organisations, we
tend to have an approach,
perhaps that is to
measure very little.
We don't want to spend too
much time gathering data,
we see that as a hindrance,
we don't want to control
employees and so on.
But then sometimes we
recognize that this
approach is not giving us
a sufficient
understanding and that
we probably want to
guide people a bit more,
we need to create
some more alignment.
So, what we do is we swing, as
a pendulum, to the other side,
and we start to
measure everything.
We want to monitor everything,
we want to control,
we want to try to
make sure that we've
got data about everything.
At some point we realize
that that's too much.
We are constraining employees,
we're controlling them.
It creates a lot of problems,
it's quite costly to measure and
report performance, and
then we swing again.
One of the key questions that we
really need to
address is how do we
ensure that we
understand and provide
guidance while at the same time
not overcrowding the system.
If we can find the sweet spot,
we're already in a good
position to try to
reap the benefits out of
performance management.
At the same time, whenever
we measure performance,
there is something
that happens that is
almost endemic to the process of
measuring and managing
performance that we
can mitigate but never
really eradicate,
and it's called gaming.