Andy Leonard doesn’t care for Performance Based Management. I tend to agree. I find this approach to be passive aggressive. If management has a problem with an employee they should confront the employee directly. With PBM, management can slot people into categories and blame the results on the system. “Sorry, I didn’t want to punish you but someone had to be in the bottom 20%. It’s out of my hands.”
And then there is the collateral damage which is what I think Andy is talking about. Even if all employees are doing a fine job someone has to be in the bottom 20% and you can be sure it won’t be the head guys. When you build a house someone has to pick up the shovel and dig. You can’t punish the guy with the shovel because he’s not the engineer. If everyone who is building the house is doing a good job but someone has to be labeled as the bottom 20% you can bet it won’t be the engineer or the foreman.