Part 10/13:
Organizations face enormous difficulties in quantifying performance. Large corporations often rely on subjective peer and supervisor ratings, which are problematic due to their disconnection from actual performance metrics like profit. The inherent measurement problems mean that efforts to optimize productivity are often based on flawed or incomplete data.
For managerial performance, the complexity multiplies. Productivity is difficult to measure directly, especially in middle management roles. Companies might attempt to infer performance through peer comparisons or self-assessments, but these are prone to bias and may not correlate with organizational outcomes.