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Information about Crowd-Scorched
Business & Mgmt

Published on February 25, 2014




Recognition is a problem that needs to be fixed, not a “crowdsourced” cure for performance evaluation problems.
Mixing recognition and evaluations can contaminate both. And it could land you in court.

Two facts emerge anytime a solid research study is done on recognition.
First, it’s exceptionally important.
Second, companies aren’t very good at it.

These two well-established facts define what should be done about recognition patterns in a company and what should not be done with that information.

Over the past year, the HR community has kicked around ideas for incorporating recognition statistics into performance reviews as part of the larger “big data,” “crowdsourcing,” or social media movements.

It’s a powerfully bad idea.

The chief proponent of feeding recognition data into job evaluations is Eric Mosley, author of a book entitled The Crowdsourced Performance Review: How to Use the Power of Social Recognition to Transform Employee Performance. The short version of his argument is that performance appraisals suffer from “serious and structural” problems that frustrate company performance; that too much responsibility for the evaluation falls on managers, who “lack the insight into employee performance” that’s needed; and that part of the answer lies in harnessing information from peer-to-peer recognition within the company.

“Enter the wisdom of crowds – or crowdsourcing,” writes Mosley. “A group of independently deciding individuals is more likely to make better decisions and more accurate observations than those of an individual. Crowdsourcing, by leveraging social recognition data, is a better way for managers to collect, evaluate and share information on employee performance.”

Leaving aside the fact that Mosley’s position is intended to sell his company’s recognition platform (“In other news: Dairy farmers say people should drink more milk,” one person commented on one of Mosley’s online articles) his proposal violates the second fact about recognition. Recognition is a problem that needs to be fixed, not a “crowdsourced” cure for performance evaluation problems. Using recognition statistics in performance evaluations risks contaminating both recognition and appraisal systems.

Under this plan, thanking someone for a job well done doesn’t just recognize him – it goes into his personnel file. It might even land the company in court.

Bastardizing information is a common issue in business. Someone realizes there’s a trove of statistics somewhere in the computers and siphons it off to make decisions for which the data were not designed. Whenever large amounts of data are gathered, there is a temptation to believe that by its sheer “bigness” it must contain diagnostic patterns. Sometimes the opposite is true; biases in the data may have it pointing in the wrong direction.

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