Case 8.1 Not Spilling the Beans at Jelly Belly: Developing a More Accurate Performance Appraisal System

What might be the sweetest job in the world? Why not working alongside such tempting treats as chocolates, gummies, gumballs, buttered popcorn, cheesecake, candy corns, licorice, sour candies, cinnamon confections, jellies, and, of course, let us not forget jelly bellies! Thats the way it is at Fairfield, Californiabased Jelly Belly Candy Company (JBCC). They offer over 100 varieties of candies (including such novelty flavors as cinnamon confections and Chili Mango) in over 70 countries globally. They also operate six retail stores in California and offer tours in their Pleasant Prairie, Wisconsin, visitors center.(1)

JBCCs mission statement captures the flavor of the firm. Jelly Belly Candy Company is dedicated to producing the highest quality confections, delivering superior customer service and creating a reliable and enjoyable product line to the consuming public. We seek to be a responsible corporate citizen and to ensure high quality and safety standards. We expect our consumers and business partners to have confidence in the products bearing our name and that our products are manufactured in accordance with a guiding code of conduct. Jelly Belly is committed to conducting business with ethical business standards and asks its vendors, suppliers and licensees to conduct themselves in the same manner.(2)

Given this family firms commitment to maintaining high operating and ethical standards, there is no sugar coating employee performance and job satisfaction. Every successful firm understands that employee retention is strongly tied to the employees feeling that they are an integral part of the firm and that their work is appreciated and rewarded. JBCC understood that the best way to execute their mission statement, having employees both understand and implement the firms underlying priorities and values, was through their employee evaluation performance system. JBCC saw the need for a precise, automated talent and employee appraisal system as the panacea for maximizing the human assets.

The bittersweet truth was that it took a merger of the two branches of the family business into one unit to surface this issue. One part of the firm was doing employee evaluations using 1960s technology: hard-copy forms and personnel files. The other part was using a computer-based system, but the software was antiquated. JBCCs head of HR for their Midwest operations, Margie Poulos, and her HR staff were tasked with the responsibility of taking HR data from three locations (600 employees) and creating one integrated process.

According to Jeff Brown, JBCCs HR director, When employees feel they have gotten a thorough and accurate review, it boosts their morale. This was the foundation of their new appraisal systemcomprehensive, unbiased, and precise measurements of employee performance would serve as the viable feedback employees both wanted and needed to establish and obtain specific, quantifiable objectives. According to motivation literature, employees who know what is expected of them perform at a higher level with greater job satisfaction. Happy workers lead to higher retention, and retention is the name of the game for superior performance, industry leadership, and expansion.

JBCC used a traditional appraisal system where annual evaluations were conducted, with no comparison to prior years. They wanted a new system that would be online, use one standardized form, allow managers to have access and input periodic updates of the employees performance from remote locations, and allow for sign-offs. In our old system, a few folks in Chicago would have access to the system. However, we have managers in California with Chicago subordinates. It is important that they can share the same forms across the board. And we have folks who are on the road a lot or are working out of home offices, so having them be able to access this is a huge point for us, according to Brown. Poulos and her team did have concerns and drew up a list of factors the system had to incorporate. Primarily, they didnt want to end up with a system that is so complicated that the managers wouldnt use it, and therefore, Poulos made sure the new software system would be simple and flexible, save time, and allow for developing variations of the firms core competencies. The new software had to structure and formalize the appraisal process while allowing for customization of the firms competencies and staff or managers suggested modifications. Once the software was selected, 50 managers received fast-track training with annual appraisals immediately commencing. Brown had high praise for the system, indicating that it allows us to standardize competencies across job classifications, add signature and comment sections to make our process more interactive, and increase accessibility for remote managers. Organizing and automating the appraisal process results in performance appraisals that are more accurate and fair. This is important because, after all, an employee appraisal is a legal document. Poulos and her team were also enamored with the new system because it allowed them to connect employee training and development needs with employee performance. Weve always had a separate training manual. Now we can go into the evaluations and more easily monitor employees skills development, see what training individuals need, and check the due dates for training and renewal. That makes it much easier for us to keep track. First, the new system has achieved its primary objective of connecting employees personal objectives with employee goals. The feedback has been really positive, from both managers and employees as well. Some staff said this was the best appraisal theyve had, Poulos said. They felt the evaluations were fair and realistic, and supervisors had the scope to provide more relevant and legitimate comments than they could before. Rather than just clicking on a bunch of canned comments, they were accurately reviewing the employee. A great side effect of the new automated system is that it has proven to be far more efficient than the old one. Since this year was the first time using the new system, it took us a little longer than it will next year. But the process was a whole lot faster, Poulos said. It has already saved us a lot of time, and we got everybodys appraisals done in one shot.(3)

Questions

What is performance management, and what is the driving force behind Jelly Belly Candy Companys performance management approach?

What is performance appraisal, and what are the key features Jelly Belly Candy Company wanted in their new appraisal system?

What is the performance appraisal process, and how does Jelly Belly Candy Companys new appraisal system incorporate those processes?

How did the question of performance accuracy affect the development of Jelly Belly Candy Companys automated appraisal system?

Why did Jelly Belly Candy Company redesign their performance appraisal system?

What does Jelly Belly Candy Company evaluate when they conduct employee appraisals, and why are they using that approach?

Who is assessing training performance at Jelly Belly Candy Company?

What trends in performance appraisal are affecting Jelly Belly Candy Companys appraisal system?