While the IFA system can serve many organizational functions, the leaders of any 21st Century organization must be careful about embracing this approach without first doing their homework. IFA programs encounter significant problems when implemented in many organizations. The intentions of their organization must be clearly specified and widely supported. There can’t be much ambiguity about the mission of the organization and all stakeholders must feel like they have been actively engaged in creating the vision and identifying the fundamental values and purposes of the organization.
The leaders of many organizations cannot clearly and consistently articulate their intentions. Typically, they can’t identify quantifiable objectives, outcomes, expectations or milestones derived from the intentions of their organization. An IFA program requires a clear consensus concerning the current status of the organization, as well as its goals and programs, otherwise the assessment criteria may be either unrealistically high or unnecessarily low.
There is yet another major drawback. An effective IFA program should be closely linked with a management information system that provides data directly related to the mission, vision, values and purposes of the organization. Unfortunately, a strong management information system does not exist in every organization. An effective IFA program also requires sophisticated management practices and relies on the competence and self-direction of the participating employees.
These conditions are not found in most organizations and require substantial reformation of organizational structures, processes, attitudes and cultures. An IFA program is frequently introduced precipitously without the extensive leadership and organization development that must precede it. The problem with IFA models may reside not in the concept, but in its execution. A similar case can be made for the problems encountered in the enactment of the next approach to performance appraisal that I shall consider: the 360-Degree feedback process.
