Reference no: EM133180455

Overview

The success or failure of a performance management system depends on the philosophy underlying it, its connection with business goals, the attitudes and skills of those responsible for using it, and the individual components of the system. A performance management system is more than the actual review-it is an overall approach to getting the maximum contribution from each individual.

For this major assignment, you will be writing a report answering the questions below supporting your response with evidence from the textbook and outside sources.

Background Information

The bigger picture here focuses on how the performance management system is used. Having a first-rate approach does no good if the manager simply shoves it in a drawer. Alternatively, even a rudimentary system, used properly, can initiate a discussion between managers and employees that genuinely gives rise to superior performance.

There are many positive reasons to have a formal performance management process; however, some organizations believe such processes are ineffective and are therefore eliminating what has become a once-a-year activity. Read to following excerpt from your textbook to learn more.

There has been much criticism about performance reviews. Because of this, some organizations, such as Microsoft, PricewaterhouseCoopers, and Juniper Networks have started doing something different. In a recent study, over 58% of organizations said that performance management processes were not effective use of time. Further, in the same study, leading organizations indicated that they were eliminating the annual cycle and ensuring that managers provide ongoing feedback and coaching for continuous development of employees. Some of the criticism has been both that meaningful feedback only occurs once a year and that managers were having to force-rank their staff. Critics believe that making sure there is a bell curve on performance rankings undervalued top performers and pushed average performers to the bottom-creating some amount of demotivation. Further, neuroscience research suggests that numerical ranking generates an automatic "fight or flight" response, and any constructive discussions or actions do not register with the employee.

Another reason for the changed view of performance appraisal is that today's workforce, especially certain generations within it, expects regular feedback, coaching, and development. Moving toward a model of continuous coaching and development also means a different role for managers and leaders as well as ensuring that they have the skills to execute this new role. It also means that senior leaders need to have a different mindset regarding employee development. They need to be clear how the model fits into the strategy and the importance of the manager's role in employees' achievement. (Chapter 7)

Your report must answer the following questions:

1. How would you change the traditional mindset regarding managing performance?

2. Should organizations eliminate the annual performance review? Why or why not?

3. How would you feel about continuous feedback and development?

4. How would you suggest organizations put more emphasis on performance management as an ongoing process?