The idea of a merit rating is alluring. The sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people to do their best, for their own good.
The effect is exactly the opposite of what the words promise. Everyone propels himself forward, or tries to, for his own good, on his own life preserver. The organization is the loser.
The merit rating rewards people that conform to the system. It does not reward attempts to improve the system. Don’t rock the boat.
The consumer is the most important point on the production-line.
Deming’s First Theorem: “Nobody gives a hoot about profits.”
Deming’s Second Theorem: “We are being ruined by best efforts.”
A common disease that afflicts management and government administration the world over is the impression that “Our problems are different.” They are different, to be sure, but the principles that will help to improve quality of product and of service are universal in nature.
A company could put a top man at every position and be swallowed by a competitor with people only half as good, but who are working together.
Money and time spent for training will be ineffective unless inhibitors to good work are removed.
A numerical goal leads to distortion and faking, especially when the system is not capable of meeting the goal. Anybody will meet the quota (goal) allotted to him. He is not responsible for the losses so generated.
Every system is perfectly designed to get the results it gets.
The merit rating nourishes short-term performance, annihilates long-term planning, builds fear, demolishes teamwork, [and] nourishes rivalry and politics. It leaves people bitter, crushed, bruised, battered, desolate, despondent, dejected, feeling inferior, some even depressed, unfit for work for weeks after receipt of rating, unable to comprehend why they are inferior. It is unfair, as it ascribes to the people in a group differences that may be caused totally by the system that they work in.
Management of a system requires knowledge of the interrelationships between all of the components within the system and of everybody that works in it.