In Search of the Holy Grail: Lessons in Performance Management

Abstract

This article discusses the federal government's search for the perfect performance management system and recommends flexible approaches that focus more on feedback than evaluation. Results are presented from three alternative performance management systems tested in govemmentwide demonstration projects (China Lake, NIST, and Pacer Share), authorized by the U.S. Office of Personnel Management. Two different pay-for-performance systems were found to be effective, while the third system tested under Pacer Share, which eliminated performance appraisal consistent with Deming's TQM philosophy, produced some undesirable results.