It is commonly believed that formal performance measurement is unpopular. This is probably because it creates stress on the person being assessed, and work load on those doing the assessment. Furthermore, everyone probably acknowledges the power plays involved in the assessed and assessor relationship.

There are many instances where formal performance management works well. Similarly there are many examples where it doesn't.

I suspect that in those contexts where it isn't effective, there are a number of influences at play:

1. Although performance management is utilised, the culture does not promote on the basis of merit.

2. The culture has a charged political environment where influence and power are king.

3. Management are not trained in performance management principles or techniques.

4. Employees lack trust and confidence in management.

5. Employee turnover is above average.

6. Management doesn't 'walk the talk'.

In principle, performance management makes business sense - that doesn't mean it's easy or effective in every context. As with computers where nobody was fired for buying IBM; no manager is scalded for having a performance management process. Since there is no 'standard' method for the conduct of the process, there is no standard way of measuring its effectiveness. However, 'just having it' often fulfils management's purposes. Ensuring it's effective often fulfils the employee's purposes.

A couple of alternatives to a 'conventional' performance measurement system:

1. 'Do or die'. Have a measurable performance requirement. Achieve it or leave (i.e. be sacked). Brutal of course, but many companies (particularly sales companies) use this method.

2. Only hire experienced personnel that "require no development". Many smaller companies where career progression is severely limited use this method.

3. Use standard third-party survey tools (e.g. 360 reviews)

4. Use specialist third-party contractors to provide independent assessments and recommendations.

5. Benchmark performance expectations and require employee to achieve them.

6. Use negative incentives: "This is what's required. If you breech this requirement or fall short, you will be punished."

As with most things, whether you use the formal performance management process depends on context, culture, people and requirement. Not all are the same.