This now serves as a blog to collect some of the comments I make on other blogs related to management improvement (Deming, lean thinking, six sigma, leadership, systems thinking, respect for people...).
Read my main management blog: Curious Cat Management Improvement Blog
Why can't performance be numerically rated and ranked? It can't be defined operationally, it can't be measured with any degree of precision, it canÂt be separated from other effects, and it is destined to vary over time in any case. Any one of these factors present significant (if not insurmountable) problems itself. Combined the problems create an impossible barrier.
This essentially ended the practice of raise administration as a 'zero sum' game. Many (if not most) companies make a total figure available for raises. That figure is then stated in terms of a percentage of total salaries. Each supervisor is instructed to average that percentage in administering raises among his or her employees. Thus, a given employee can only receive more than the average if another employee within the same supervisory unit receives less. This fosters competition within small units of the company. That is disastrous.