Performance management systems need fixing: Survey

Only six per cent of CEOs say their organization's performance appraisal system is useful
By David Brown
|Canadian HR Reporter|Last Updated: 09/14/2006

If HR practitioners want to improve their reputation with employees and CEOs, they’ll need to do something about performance management systems, according to a new study.

The survey of more than 48,000 employees, managers and CEOs from 126 organizations in the United States found that just 13 per cent of employees and managers — and only six per cent of CEOs — say their organization’s performance appraisal system is useful.

There is an obvious, and almost universally shared paradox when it comes to performance appraisals, said Mark Murphy, CEO of People IQ, the Washington-based firm that conducted the study.