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Much has been written recently about the problems organizations experience with their performance management (PM) processes. Many solutions have been proposed over the years that had early nominal success followed by head scratches, a return to widespread irritation and more rationalization from HR and Line Management. It is unclear whether or not the latest reforms such as continuous PM, more feedback, crowdsourcing feedback, and separating evaluation from development will meet the same fate.

At the same time, the success of the programs “downstream” from PM are on equally dubious footing. A large percentage of employers say their merit pay and bonus programs aren’t doing what they were designed to do: drive and reward individual performance.

Changes in PM and changes in rewards practices are not creating more motivation and higher performance in organizations. Is it possible that these are both two sides of the same dysfunctional coin?

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