Magazine article Workforce Management

When People Practices Damage Market Value

Magazine article Workforce Management

When People Practices Damage Market Value

Article excerpt

Clumsy use of technology or poor execution of touted initiatives like 360-degree evaluations may do more harm than good

WHILE A GROWING body of research highlights human resources' contributions that tend to create wealth for shareholders, the research also points to ways in which human resources practices can detract from companies' market value.

Ilene Gochman, director of Watson Wyatt's organization effectiveness practice, says that one surprising culprit is the much-ballyhooed 360-degree evaluation.

"We've found that use of the 360 is actually negatively correlated with financial results," she says.

It's not so much that the idea of getting feedback from various perspectives is bad, she explains. Rather, the problem is that most companies don't do 360-degree reviews very well.

"What you're trying to do is use feedback for behavior change," she says. "But if you don't change the right things, it's not going to impact your bottom line. …

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