There is a tendency for organizations to get what they measure with regard to performance appraisal instruments. What effects (positive and negative) may this have on performance? What could be done to overcome these problems? Give specific examples.

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The Answer is The tendency for organizations to get what they measure with regard to performance appraisal instruments can have both positive and negative effects on performance.

Positive effects:
- Clear goal setting: When organizations measure specific performance metrics, employees are more likely to have clear goals and expectations, which can lead to improved performance.
- Motivation: Employees may be motivated to perform well in areas that are being measured, leading to increased productivity and a positive impact on overall performance.
- Accountability: Measuring performance can hold employees accountable for their work, resulting in higher quality outputs and greater responsibility.

Negative effects:
- Tunnel vision: Focusing solely on measured performance metrics can lead to a narrow focus on specific areas, potentially neglecting other important aspects of an employee's performance.
- Gaming the system: Employees may prioritize activities that are being measured, even if they are not the most important for overall performance, leading to skewed results and ineffective outcomes.
- Unintended consequences: Overemphasis on specific metrics can lead to unintended consequences, such as increased stress, competition, or unethical behavior.

To overcome these problems, organizations can take the following steps:

- Use a balanced scorecard approach: Instead of relying solely on one or two performance metrics, organizations can use a balanced scorecard approach that includes a variety of measures, such as financial, customer, internal business processes, and learning and growth perspectives.
- Incorporate qualitative assessments: In addition to quantitative measures, organizations can include qualitative assessments of employee performance, such as feedback from peers, managers, and customers, to provide a more comprehensive evaluation.
- Encourage open communication: Organizations can foster an environment of open communication where employees feel comfortable discussing their performance, challenges, and goals, allowing for a more holistic understanding of their contributions.
- Focus on continuous improvement: Instead of using performance measures as a means of punishment or reward, organizations can use them as a tool for continuous improvement, providing opportunities for learning and development.

For example, a sales team could measure performance based on not only revenue generated but also customer satisfaction scores and the number of new accounts acquired. This would prevent tunnel vision on sales numbers and encourage a more comprehensive approach to performance. Additionally, a software development team could incorporate peer code reviews and customer feedback into their performance assessments, ensuring a more balanced and accurate evaluation of their work.

There Is a Tendency for Organizations to Get What They