Performance bonuses for individuals, particularly CEOs, has been the norm across all industries for decades. Yet, increasing evidence indicates this is not a smart practice, that may actually detract from individual and team productivity and motivation.
In my article Why “Constructive Feedback” Doesn’t Improve Performance, I said “constructive feedback, which is usually critical, rarely helps anyone, and certainly rarely improves employee performance on the job.”
A number of management experts have recently engaged in renewed dialogue about the dysfunctionality of performance reviews, and a new idea on how to replace it using a positive “crowdsourcing,” process has produced a interesting alternative.
On any given day in most organizations in North America, you’ll find a manager informing an employee that it’s time for their regular performance review. And usually, the news is neither delivered or received with joy. Second only to firing an employee, managers rate performance appraisals as the task they dislike the most. The reality is that the traditional performance appraisal as practiced in the majority of organizations today is fundamentally flawed, and incongruent with our values-based, vision-driven and collaborative work environments.