We have an excellent performance management system" your next door neighbour says. "Every May 1st, all my managers meet with their employees and complete the performance appraisal form and send it to me for review. If the employee gets an average of a 3 or better (out of 5) on their appraisal, they get the general wage increase (last year it was 3%), if less than 3, they get their salary frozen until the next May. Please comment on your neighbour's view of performance management.