World Monitor Mag, Industrial Overview WM_November_2018_WEB_Version - Page 76

additional content Kill Your Performance Ratings Neuroscience shows why numbers-based HR management is obsolete. And watch the video “How Your Brain Responds to Performance Rankings.” by David Rock, Josh Davis, and Beth Jones prevalent in many organizations—and reinforced by PM systems. This induces many employees to avoid the kind of effort that leads to learning and professional growth. Think back to your days in school. Chances are, no one liked to appear as if he or she had to work really hard to get good grades. They feared that others might think they were not naturally talented. Similarly, in a work environment where the fixed mind-set holds sway, people will typically strive to avoid difficult challenges. Any stretch goal or strategic imperative, no matter how worthy, will be seen as an invitation to fail. Unsurprisingly, this mind- set also makes people more likely to cheat. In one study, people primed just before a test with fixed mind-set suggestions (for example, statements that they could not change or grow) were 300 percent more likely to cheat than their growth mind-set counterparts. 74 world monitor The effects on organizations are devastating. Conventional performance management has been linked to high levels of attrition, low productivity, and significant problems with collaboration. PwC’s 17th Annual Global CEO Survey, conducted in 2013, found that 93 percent of the CEOs surveyed recognized the need to change their talent practices—something their companies were doing wasn’t working. Meanwhile, according to Korn Ferry Institute leadership development researcher Robert Eichinger, the ability to “grow talent” is ranked 67th out of 67 competencies for managers, despite decades of investment in PM systems. In other words, on average, managers are worse at developing their employees than at anything else they do. If you want a high-performance organization, you have to reverse the destructive effects of conventional performance