1. What steps should managers take to ensure that performance discussions are effective?

2. What are the benefits and potential disadvantages of more frequent performance discussions between managers and employees?

3. Which purpose of performance management will be more difficult to achieve for companies like Adobe that decide to abandon ranking or rating employee performance?

Helping to Encourage Frequent and Productive Performance Conversations Adobe Systems Inc. provides multimedia and creativity soft- turnover, which was especially concerning because Adobe ware products including Photoshop, Adobe Acrobat, and was losing good employees. Adobe Acrobat Reader. Adobe was experiencing an increase To improve performance management, Adobe decided to in turnover, which it discovered was related to employees' dis- abandon annual ratings and introduced a new system called satisfaction with the performance review process, a lack of the Check-In. The Check-In emphasizes ongoing feedback. recognition, and the lack of regular feedback about their per- Instead of managers discussing performance with employees formance. Like other companies, Adobe used a performance only during the formal performance review, as tended to ocreview system in which managers provided an overall rating cur in the old system, Check-In encourages managers and of each employee on a scale from 1 to 4 , based on how the employees to have informal performance discussions at least employee's performance compared to that of other employ- every other month. Managers are asked to focus performance ees. This created a competitive work environment, rather discussions around employees' performance objectives or than the collaborative one that Adobe values. Each year after goals and what resources they need to succeed. Also, employemployees received their reviews, HR saw a spike in voluntary ees' career development needs are part of the conversations. Managers are given complete freedom to decide how often There are several indications that Check-In is effective. and in what ways they want to set goals and provide feed- HR includes questions about performance management on back. The discussion is future focused. That is, both the em- its annual employee survey. Survey results show that 80% of ployee and the manager consider what to change to increase employees responded that they had regular performance the likelihood that performance will be effective. Employees meetings with their managers and felt supported by them. are evaluated on the basis of how they have performed Since Check-In was introduced, voluntary turnover has deagainst their goals rather than how they compare to other creased by 25%. Also, it is estimated that Check-In saves employees. More frequent performance feedback is espe- Adobe managers 80,000 hours each year that were previcially important to Millennial employees, who are used to ously spent completing employee performance evaluation real-time communications through texting and postings. forms. Managers no longer have to complete lengthy performance evaluation forms and submit them to HR. HR's role is to provide managers with consulting and tools to help with QUESTIONS performance discussions rather than policing to see if re- 1. What steps should managers take to ensure that perforviews are completed or discussions have occurred. Both manmance discussions are effective? agers and employees can access a resource center that 2. What are the benefits and potential disadvantages of provides materials about coaching, giving feedback, and per- more frequent performance discussions between managsonal and professional development. For example, managers ers and employees? might use the resource center to help them with tough perfor- 3. Which purpose of performance management will be mance conversations such as those involving giving employmore difficult to achieve for companies like Adobe that ees difficult feedback. HR relies on what is known as a decide to abandon ranking or rating employee perforskip-level process to ensure that performance discussions are mance? occurring throughout the year. This means that the manager's own boss holds the manager accountable for having per- SOURCES: Based on R. Feintzeig, "The Trouble with Grading Employees," formance discussions. The boss asks employees if discussions Wall Street Journal, April 22, 2015, pp. B1, B7; D. Meinert, "Reinventing are occurring and if they have a development plan. Reviews," HR Magazine, April 2015, pp. 36-40; J. Ramirez, "Rethinking the Review," Human Resource Executive, July/August 2013, pp. 16-19