The Illusion of Performance Management

Abstract

Despite the wide adoption of performance management by organizations, there is little evidence that performance management works. In this paper, I critique both the methods and the goals of performance management. First, I note that performance management, through its reliance on top-down decision making, robs workers of autonomy and responsibility. Next, I note that two of the three major components of performance management (aligning job performance goals with the strategic goals of the organization and using frequent informal feedback to manage performance) are flawed, and that efforts to manage performance using these tools are likely to fail. Rather than relying on managing performance, organizations should follow decades of research on supportive leadership and focus on supporting and facilitating performance rather than managing it. I call for more empirical research to evaluate the effectiveness of performance management and the effects of the various tools used to manage performance.