Cause and Effect Analysis

"Subjective performance evaluation allows the use of a subtler, more balanced assessment of employee performance, and is typically used for more complex jobs where comprehensive objective measures are difficult to specify and/ or measure. Whilst often the only feasible method, the attendant problems with subjective performance evaluation have resulted in a variety of incentive structures and supervisory schemes. One problem, for example, is that supervisors may under-report performance in order to save on wages, if they are in some way residual claimants, or perhaps rewarded on the basis of cost savings. This tendency is of course to some extent offset by the danger of retaliation and/ or demotivation of the employee, if the supervisor is responsible for that employee’s output. ...
Another problem relates to what is known as the "compression of ratings". Two related influences—centrality bias, and leniency bias—have been documented ... The former results from supervisors being reluctant to distinguish critically between workers (perhaps for fear of destroying team spirit), while the latter derives from supervisors being averse to offering poor ratings to subordinates, especially where these ratings are used to determine pay, not least because bad evaluations may be demotivating rather than motivating. However, these biases introduce noise into the relationship between pay and effort, reducing the incentive effect of performance-related pay. ... this is the reason for the common separation of evaluations and pay, with evaluations primarily used to allocate training.
Finally, while the problem of compression of ratings originates on the supervisor-side, related effects occur when workers actively attempt to influence the appraisals supervisors give, either by influencing the performance information going to the supervisor: multitasking (focussing on the more visibly productive activities...), or by working “too hard” to signal worker quality or create a good impression...; or by influencing the evaluation of it, e.g., by "currying influence"... or by outright bribery..." [Principal–agent problem. Wikipedia]
The example "Person demotivated by evaluation - Fault tree analysis diagram" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Fault Tree Analysis Diagrams solution from the Engineering area of ConceptDraw Solution Park.

The cycle diagram sample was created on the base of the figure illustrating the webpage "2. POLICY & STRATEGY" of "Scottish Police College Primary Inspection 2006: A Report by Her Majesty's Inspectorate of Constabulary" from the Scottish Government website.
"Strategic Planning.
2.1 The planning process for the College currently follows a structured approach, starting in April and extending through the financial year. The planning cycle is illustrated in figure 2. ...
2.2 The College recognises the need to consult with its customers and stakeholders in the process of setting objectives and directing the training programme. The planning cycle to date refers to force visits, environmental scanning, the course planning process which involves consultation with all forces and other common police services, as well as to a survey of external providers.
2.3 The information from consultation feeds into an EFQM framework from which the College has identified four key policies, namely:
(1) developing and delivering quality training;
(2) developing our people through lifelong learning;
(3) continuous improvement of our service; and
(4) embracing the changing environment.
2.4 The objectives set at divisional level are designed to contribute to delivering these policies. HMIC found that whilst the selected objectives were presented in line with the structure, not all could be considered to meet SMART (Specific, Measurable, Achievable, Relevant and Timed) criteria. This failure indicates that while the process appears suitably structured to deliver a robust result, some of those involved could perhaps have a better understanding of the process." [scotland.gov.uk/ Publications/ 2007/ 02/ 15134652/ 8]
The cycle diagram example "Strategic planning" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Target and Circular Diagrams solution from the Marketing area of ConceptDraw Solution Park.
www.conceptdraw.com/ solution-park/ marketing-target-and-circular-diagrams