Evidence is mounting that performance management (PM) systems are broken. The appraisal process is one in which employees and their managers set goals for the year; managers interview others who have worked with them and write up an appraisal; employees are rated and ranked numerically; and salary, bonus, and promotion opportunities are awarded accordingly. A 2013 survey by the Society for Human Resource Management asked HR professionals about the quality of their own PM systems; only 23% said their company was above average in the way it conducted them. Other studies uncovered even more disdain. According to CEB Inc., a management research group, 95% of managers are dissatisfied with their PM systems and 90% of HR heads believe they do not yield accurate information. The performance management systems in many companies are misleading, cumbersome and complex, requiring some HR departments to put aside an entire quarter to manage them. More importantly, they can be counterproductive. In the context of neuroscience research, most PM practices turn out to damage the performance they are intended to improve. That\u2019s because they are based on a fundamental misunderstanding of human responses, as revealed in recurring patterns of mental activity.