xxxi) Performance Management (Negative Impacts)

Not understanding that some standard performance management practices can have negative impacts on behaviour, ie

- employee of the month (this can upset more people than it encourages. The rationale behind it is that by recognising a person will have a positive impact on the others. On the other hand, it is perceived as slighting more people than it rewards.)

- performance appraisals (do not motivate staff, improve performance and/or avoid legal problems associated with poor performance)

- stretch goals (have a high probability of failure; most employees respond best to goals that have a high probability of achievement)

- annual bonuses (an expectation is developed that they are a permanent part of the remuneration package. Consequently, some staff are tempted spend in advance in anticipation of receiving. Furthermore, the more removed the bonus is from individual accomplishment, the less effective it is.)

(source: Narelle Hooper, 2008)


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