1. Describe at least four general strategies you would take to convince the client firm that the benefits of implementing a performance management system will far outweigh the costs and difficulties associated with the transition from a performance appraisal to a performance management system
2. For each strategy listed, provide sufficient detail so that the firm can implement your suggested strategies.
You are a passionate performance management consultant. Because of your expertise in performance management, you have been hired by the CEO of a large company to change a performance appraisal system to a performance management system. Because you are experienced in bringing about such transitions, you know better than anyone else that the success of such transitions depends heavily upon top managerial understanding of and support for the performance management system at hand. Thanks to your skills, you have managed to educate the top management of your client’s firm and correct their mistaken belief of equating performance appraisal with performance management.
SOLUTION
1 & 2.
Relevant and considerate responses should include at least some of the following strategies in an effort to promote the acceptance of a transition from a performance appraisal system to a performance management system.
Strategy #1: Explain some of the advantages of adopting a performance management system. They include increased motivation to perform, facilitation of organizational change, and increased competence of employees.
Strategy #2: Address what can be done to mitigate any identified disadvantages/dangers of a poorly implemented performance management system. For example, one major concern with adopting a performance management system is that it can overwhelm managers with cognitive load, paperwork, and generally more work to do. To mitigate this potential disadvantage, the performance management system can require that each appraisal form be completed on or around each employee’s annual anniversary date of hire rather than require that all appraisal forms be completed toward the end of the fiscal year. To further mitigate the paperwork burden, the company should encourage managers to communicate with employees regarding performance throughout the year so that filling out appraisal forms later will be easier and more natural.
Strategy #3: Explain how a performance management system serves to further the organization’s strategic goals and thus leave a positive impact on the bottom line.
Strategy #4: Performance management systems serve as important “feeders” to other human resources and development activities. For example, consider the relationship between performance management and training. Performance manage ment provides information on developmental needs for employees. In the absence of a good performance management system, it is not clear that organizations will use their training resources in the most efficient way (i.e., train those who most need it in the most critical areas).
Strategy #5: Involve employees in the design of the system. People support what they help create. The higher the level of participation is in designing the system, the greater the support for the system will be.
Strategy #6: Repeat the information frequently. Because people can absorb only a small amount of information at a time, the information must be repeated often.