Gap Between Science and Business

• • Scientific Evidence And Research
  • System Model: Impact of Performance Appraisals On The System
  • Self – Assessment: Are Your Internal Policies Consistent With Your Organizational Goals?
  • What Drives Human Performance
  • Extended References

“There is a mismatch between what science knows and what business does”
Psychologist Dan Pink

For “Lazy/Busy” Readers (book excepts):

• Quotes from: “Get Rid of Performance Review!: How Companies Can Stop Intimidating, Start Managing-And Focus On What Really Matters”, by Culbert, Samuel A, & Laurence Rout
• Quotes from: “Punished by Rewards: The Trouble With Gold Starts, Incentive Plans, A’s Praise, and Other Bribes” by Alfie Cohn

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  System Model: Performance Appraisals VS. Team/Organizational Agility

  

  (click on image to enlarge)

  Legend (How to Read Causal Loop Diagram)

  • Variable – system elements that have effect/make influence on other system elements (other variables)
  • Causal link – arrows that connect two related variables
  • Opposite effect – “O” annotation near an arrow; suggest that effect of one variable on another variable is opposite to what could be expected
  • Delayed effect – “||” annotation that disrupts a causal link (arrow); it implies that there is a delayed effect of one variable by another variable
  • Extreme effect – one variable has an extreme (beyond normal) effect on another variable; it is represented by a thick arrow
  • Constraint – “C” annotation near arrow; implies that there is a constraint on a variable
  • Quick- Fix reaction – “QF” annotation near an arrow; action that brings about short-term, lower cost effect

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  Self – Assessment: Are Your Internal Policies Consistent With Organizational Goals?

• Does your company conduct performance evaluations/appraisals?
• Are performance evaluations/appraisals done on individuals (IPA) or teams (TPA)?
• What does your company stress more: individual or team delivery? What is counted more?
• How intense/time consuming is IPA/TPA management process for HR personnel?
• Is HR personnel of your company well informed of studies and research in the field of performance and motivation?
• Does your company explicitly recognize/promote the concept of the ‘team, as an organizational building block’?
• Does your company expect employees to share knowledge among each other?
• Does your company recognize individual contribution that cannot be measured directly, based on delivery?
• At your company, is becoming a manager (hands-off) perceived, as the main way to secure higher compensation/promotion?
• At your company, can an employee remain, as a hands-on expert, while receiving manager-level compensation?
• Does your company pay bonuses?
• To what extent is your company’s overall financial performance is factored in defining bonuses?
• For IPAs:
  • How frequently does an employee get feedback on his/her performance throughout a year?
  • How does your company collect feedback on an employee: openly or confidentially?
  • Who is in charge of evaluating individual performance (e.g. manager, peers)?
  • Is there a process in place for an employee to challenge IPA decision?
  • Can an employee challenge a decision at any point in time, or just at a year-end?
  • Is an employee required to manage his/her IPA in an internal system of record?
  • How well the role of an evaluated employee understood by an evaluator?
  • Is forced/stack-ranking (bell-shaped curve) used for a performance evaluation?
  • Is compensation increase (base salary) tied to individual performance?
  • Are bonuses paid as a lump-sum (once a year) or more frequently (throughout a year)?
  • On average, what %-ge of a total compensation represented by a bonus?
  • Does your company support the concept of “best employee of the month”?
• For TPAs:
  • Does your company have an approach/method for how to reward teams?
  • Does your company have an approach/method for how to reward individuals, based on teams’ rewards?
  • Are bonuses tied to only individual, only team-based performance or mixed?

• ---

  What Drives Human Performance?  Did You reflect On This Internally, Within Your Organization?

  

   

• 
  

  Extended References: White Papers & Articles:

  • • • Salary-Self-Setting Experiments
        • Manager-less RnD: How to Promote People
        • Self-Set Salaries: A Practical Guide
        • The process at Makers Academy
        • Buffer’s salary formula
        • Dev Academy’s approach
        • Hanno’s experiences
        • Incentro’s experiment
    • Why good leaders make you feel safe?, by Simon Sinek
    • Monetary Incentives linked to Appraisals (Systemic Implications Revealed), by Gene Gendel
    • The Puzzle of Motivation, by Daniel Pink
    • The Truth about Performance Reviews and Other Corporate Bullsh*t by Liz Ryan
    • Why Your Best Employees Are Leaving For Your Competition, by Chad Halvorson
    • You Could Lose Your Best Employees Because of These 7 HR Blunders, by Sujan Patel
    • Performance Management for Agile People, by TechWell Contributor
    • Rethinking the Review, by Julie Cook Ramirez
    • Unjust Deserts?, by Mary Poppendieck
    • Performance without Appraisal, by Esther Derby
    • Unjust Deserts, by Mary Poppendieck
    • How do we pay people in a LeSS adoption?​, by Viktor Grgic
    • Causal Loop Diagrams to Visualize System Dynamics, by Gene Gendel

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