As well,

4) What are the issues in this case study?

5) What are the key performance management elements related to this case study? With examples

CHAPTER & Performance Management 3 goal setting). Also, the online performance manage receive feedback on a day-to-day basis as well as d ment system helps managers review and track their ing the formal annual performance review. In ad own, their employees', and the department's progress tion, managers need to understand how to set go in reaching performance goals. that link employee performance to department a One of the most important uses for performance business goals. To facilitate effective performa management systems is to help motivate and reward management, Scripps managers receive extensive p employees for effective performance. Scripps Health formance management education and training. Al uses its performance management system to help managers' performance evaluation includes lead determine pay increases and reward bonuses. Employ- ship competencies including character, relationshi ees can receive annual pay increases up to 5% based serve, change, and results which help hold th on their performance appraisals. Scripps also has a accountable for evaluating and developing employe gainsharing program called "Success Shares" which helps motivate and reward teamwork. Gainshar- QUESTIONS ing programs such as Success Shares are designed to 1. The chapter discusses five criteria for effective g reward outstanding patient care and employee con- formance appraisals: strategic congruence, valid tributions toward financial performance based on the reliability, acceptability, and specificity. Evalu overall performance of their department or business the Scripps Health appraisal system on each cr unit. Employees only receive rewards if department or rion, that is, decide whether the appraisal syst business unit goals and objectives are met or exceeded. meets the criterion, falls short of the criterion, Rewards are calculated using formulas which include exceeds the criterion. Provide evidence of each. a combination of patient satisfaction scores and finan- 2. What are the strengths and weaknesses of on cial objectives. For example, one year Scripps paid out appraisal systems such as the one used by Scrij $7.8 million to more than 9,300 employees. On average Health? What changes would you recommend these employees received $900 with a maximum pay- the system to improve its weaknesses? out of five days' pay. SOURCES: Based on S.J. Wells, "Prescription for a Turnaround," For successful performance management, employ- HR Mogazine, June 2009, pp. 88-94, website for Scripps Health at ees need to receive effective and timely performance www.scripps.org feedback from their managers. Employees need to HR IN SMALL BUSINESS Performance Management at Meadow Hills Veterinary Center Brian Conrad, the practice manager of Meadow Hills Conrad also tries to dial down the tension by se Veterinary Center, makes a claim that sounds a lot like rating compensation discussions from performa statements you often hear in management and HR evaluations. In his experience, employees don't lig circles: "The staff is my number one asset in this hos- well to feedback if they're busy calculating whet pital." Sometimes statements like that are puffery, but the review will qualify them for a raise. Instead, C in Conrad's case, he puts the claim into action in the rad meets twice a year with the owners to go over way he handles performance management at his two budget and all the employees' contributions. Ra Washington State facilities. and bonuses are determined in those meetingsi Because the organization is small, appraisal inter- awarded to employees in meetings separate from Views are handled at the highest level: each employee appraisal interviews. This keeps the appraisals focu being evaluated meets with Conrad and the owners on what is getting in the way of top performance of the practice. Conrad wants them to be full par- how employees can improve. ticipants in the process, not nervous subjects under a Conrad also tries to keep appraisal interviews p microscope, so he tries to put them at ease by giving tive by not waiting for appraisal time to address ] einployees a few months to look over evaluation forms formance problems. His understanding of his posii ahead of time, so they can see what measures will be is that he is responsible for addressing performa evaluated. He also keeps the meetings regular and pre- problems as they arise. When a situation can't dictable by scheduling a meeting with each employee resolved by a few words from a supervisor, Con invites the employee and his or her supervisor to twice a year. 400 CHAPTER 8 Performance Management him for lunch away from the workplace. There they expects that employees will keep their part of the bar- discuss the issue and look for a solution. gain by showing a willingness to try new opportuni- Conrad doesn't limit communication and feedback ties and participate in problem solving. If employees to problems. He tries to know employees and their aren't willing to buy into this culture, Conrad won't work situations better by looking for informal oppor- keep them on board. But apparently not many want tunities for two-way communication. If he needs to to leave. While the rate of employee turnover for run an errand or attend a community event, he invites the veterinary industry is about 30%, turnover of one of the employees to accompany him and uses that Meadow Hills has fallen from 25% several years ago time to ask about their career goals and how they feel to just 10% soon after Conrad made his promise to about their work. Often, he uncovers opportunities employees. for employees to develop and use untapped skills. In one case, a part-time administrative employee indi- QUESTIONS cated she was interested in full-time work. Over lunch, 1. Based on the information given, discuss how well Corrad and the employee mapped out possible career the performance management at Meadow Hills Vet- paths, and she decided to get involved in treatment of erinary Center meets its strategic, administrative, the animals. She continued to apply her administrative and developmental purposes. skills by coordinating surgeries and dentistry, and she 2. What methods for measuring employee perfor- enrolled in continuing-education classes so she could mance do you think would be most beneficial for assist in the treatment area. Meadow Hills? Why? This approach to performance managernent is part 3. Evaluate Brian Conrad's approach to appraisal of a larger objective at Meadow Hills. Conrad says he interviews. Write a paragraph or two summarizing promised employees, "No team member will leave what Conrad is doing well and how he might fur the practice feeling unchallenged, concede to a lack ther improve the effort. of direction, or have professional growth hindered." SOURCES: "Four Ways to Add Value to Employee Evaluations," Keeping that promise requires a combination of care. Veterinary Economics, January 2010, Business & Company Resource mistakes that are made. When employees don't per- Center, http://galenet.galegroup.com; and Brian Conrad, "Make the ful hiring, ongoing training, and honest review of any Center, http://galemet,galegroup.com; "Help Me to Help You," form up to expectations, managers evaluate whether Promise: Keep Your Team," Veterinary Economics, May 2008, Business changes are needed in training or hiring. Conrad Company Resource Center, http://galenet galegroup.com