Performance Management Exam

Performance Management Exam
There was a Performance Management conference for mid-size insurance organizations (1000 to 3000
employees) in the Midwest. This is considered to be a good conference for networking and sharing ideas
because all participants are from similar organizations.
Participants were asked to provide a few bullets about their current performance management system.
Here is what they were told:
Please provide us with some highlights of your Performance Management
System. For example, you might comment on:
 How the system is connected to the organization’s strategy.
 Elements of the system, such as who provides input to appraisals and
development opportunities, your appraisal form, linkages to other
systems, etc.
While you can provide any highlights you like, you must include the following:
 What was a tough decision you had to make?
Representatives from the following three organizations (Yellow, Teal, and Red) provided the following:
Yellow Organization
 Our company is currently developing new strategic goals due to a recent merger. Our Performance
Management System is based on a working draft of these goals.
 Our system is practical and easy to use. We employ a user-friendly software where managers and
employees can enter data to evaluate the employee. We feel that the employee and managers are
best equipped to evaluate the employee. I know some other companies do not even ask for selfevaluation and use only the manager’s input.
 We developed a quick training session to teach managers to run a meeting where they review the
company’s vision with their employees so that everyone understands it. Managers even have the
option to develop vision statements for their departments.
 We focus on employee motivation by looking at evaluating relatively stable traits. We find this is
more important than simply measuring behavior or results because traits are what an individual
carries from job to job.
 Our accountability analysis is very complete and we empower the manager to set individual
performance standards.
 One tough decision we made was to use a comparative system to measure both behavior and
results. We found using this simple rank order system much easier for managers to use. The other
choice we almost made was to develop BARS (which was tedious to develop and difficult for the
managers to use). Our managers like our comparative systems approach.
 Our appraisal form is easy to understand. Both the manager and employee provide ratings and back
them up with evidence of performance. They do not provide an overall rating, given it is not merely
a simple average of individual ratings, but a weighted average of the different objectives. The
individual ratings are entered into a system and a weighted average is computed and provided to
the manager and employee.
 We are most proud of our ongoing communication plan. Every month there is an email about the
system that addresses such issues as “How does it fit into our strategy?” or “What’s in it for you?”

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