Wednesday, February 06, 2008
Performance Appraisal enhanced again!!!
In this organization, people are rewarded on performance and leadership behaviors. Performance are measured on agreed KPI and leadership is measured based on 360 degree behavioral feedbacks. These two dimensions are measured objectively annually thru performance management system. The system has been in place for quite sometimes and it is evolving for the better from year to year. The management is strong believer in differentiating high performers from poor performers. Mr Jack Welch had really got into them with his theory on people and performance. His differentiation theory says that people fall into 3 categories - 20% high performers, 70% average performers and 10% poor performers. His books, his lectures on videos, his sayings are quoted in management forums and other Company's events. This year the new enhancements are the behavioral feedbacks must be supported with evidence. Not only you assign rating, you must also write instances where they have demonstrated the leadership behaviors. The instances are real life examples complete with SITUATION or TASK. ACTION taken and RESULT achieved. Without examples you can give average rating only. While we call it STAR, other organizations may call it SBO for SITUATION, BEHAVIOR and OUTCOME. They are the are the same things. When my staff presented this new requirement to all executives, the response was mixed. Some simply nodded in compliance. Some said the management is no longer honest in rewarding people, now more difficult to get better rating. Some said the trust is eroding.
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