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Performance Meters
The figure below shows two types of performance evaluation systems; one that measures individual performance and the other which measures team performance.
Even though the figure implies a causal connection between type of measurement system and quality of team output, as usual, I have no idea if a causal relationship exists. I suspect they are statistically correlated though, and the correlation is indeed as shown. I think the system on the left encourages intra-team competition whereas the system on the right catalyzes intra-team cooperation. What do you think?
Categories: management
management, organizational behavior, Performance management
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What about the free-rider problem?
Hi George. Thanks for chiming in.
The free-rider problem can and does happen on the left in the cases where politics is involved. Strangely, when one or more of the team members are sycophants and boss suckups, their poor performance doesn’t register on the performance meter. The free-rider problem on the right can be handled by peer-pressure and ostracism of slackers. In the best case, the group has the decision power to eject the slacker from the group – not some God-like, infallible boss 🙂