If George Washington had wooden teeth, little harm comes from people who believe this myth. People and any performance myth that a department or organization has around human capital, however, creates real impact on motivation and return on involvement.
Fast Start conversation: Performance reviews are rarely done with the end in mind: to augment what works and to highlight opportunity for even more effectiveness. Too often the review process is more façade than intention with process over promise. 94% of 1,400-plus participating CFOs said performance reviews are effective in helping employees improve performance. Among 422 workers employed in office environments, only 62% said the same. In Scourge of Performance Reviews, CFO.com’s David McCann offers a view worth reading. CFOs = satisfied, employees = not quite. Why is that? If you are an engaged manager, after all, why would you need an official performance review anyway?
Politics trumps those who have shown reliable, merit-based performance.
When rewards are given to those with little merit, but through a host of politics such as cronyism, parochialism, and kleptocracy engagement is sabotagued and have little hope to achieve true engagement.
Merit-based performance would focus on the employee’s behavior that exemplifies excellence or the employee’s behavior that needs attention or improvement. When cronyism, kleptocracy, and parochialism gang up meritocracy has no chance.
Fast Start conversation: Big companies can spread fixed costs across a larger base. Big company capability to spread costs means better shareholder, financial performance. Large companies benefit from scale. Or so it is said. CFO.com’s Too Big to Succeed revealed 748, large companies delivered median annualized total shareholder returns of 2.7%. Size matters, but not compared to small companies who, over the same time, delivered median annualized total shareholder returns of 9.7%. Are investors better off as small company shareholders rather than large company shareholders?
August 2010 in review. A roundup of blogs from the previous month: A key to why so many companies blow it in social media? — Do companies blow their social media efforts because they are afraid to fail, preferring to fall back on old marketing rules? The comments section offers a chance for Jonathan Salem Baskin and Hank Wasiak to debate my point. Business as a foreign language for HR professionals — A recap of the Human Resource Executive Online article title “Is Business a Foreign Language for HR?” Evaluating risk: financial models versus competency models, part 1 — Models are a way to understand the key decisions you may need to face and hedge the bets you’re placing. Ultimately, investment risk is a risk for a team to deliver as much as it is a market or financial projection. The intervention …