Case Study: Performance Management Is About Work and How Work Gets Done

Most companies have a unique set of core values that they believe contribute to business success through distinguishing them from competitors and helping create a brand image in the eyes of customers, clients, employees, and the general public. For example, VivaKi Nerve Center in Chicago, the research, development, and production unit of the advertising and communications firm Publicis Groupes VivaKi, has a set of core values called The Way We Work. These values include work hard playfully, develop disruptive innovate solutions, count on infectious talent and radical thinking, and believe change ignites new energy and conversations. Studies have shown that companies fixation on hitting financial targets often works against producing sustainable growth. One study found that the highest financial returns were achieved at companies whose CEOs had challenging financial goals and communicated a vision of the company beyond making profits such as creating an innovative product, providing greater customer service, or improving the quality of life. Despite the importance of values, it is challenging to define them in behavioral terms so they can be measured and included as part of a performance management system. Also, the results of a Society for Human Resource Management survey on performance management highlight the complexity of values for performance management. Survey results showed that over 85% of HR professionals agree it is more difficult to manage employee behaviors underlying values than it is to manage job performance. A number of companies are taking on the challenge of redesigning their performance management systems to ensure that they are evaluating not only what employees get accomplished but how they get it accomplished. Grange Insurance performance management system for its associates includes both jobrelevant performance objectives and core values. Managers rate the extent to which employees engage in behaviors underlying the companys core values, which include candor, do the right thing, integrity, ownership, and teamwork. For example, the evaluation for candor includes considering whether the associate engages in behaviors such as openly sharing information, seeks honest and constructive feedback, delivers honest and constructive feedback, and addresses problems and issues even when they are unpleasant or sensitive. Eastern Idaho Regional Medical Center (EIRMC) in Idaho Falls evaluates employees on seven values and their underlying behavior. The values and example behavior in parentheses include accountability (works to achieve individual, department, and hospital goals), I am EIRMC and I CARE (demonstrates the use of the centers caring model with every patient and visitor), integrity (manages conflict appropriately), respect (respects co-workers by being on time), quality (identifies a potential problem and also potential solutions), loyalty (builds teamwork by being a good team member and not backbiting), and enjoyment (greets and welcomes each person with a smiling face and a kind word). EIRMC uses a five-point scale to rate employees on the values. The scale values range from 1 meaning the employee exceeds expectations to 5 meaning their performance is unacceptable. Because values impact morale, patient satisfaction, turnover, and finances, confronting employees about behaviors that breach company values is crucial. Assessing and changing behaviors that are incongruent with company values means that at the end of the day the company stands for something and reinforces the culture and the way the company conducts its business. All employees, including top leaders, need to be held accountable for living the values. For example, at EIRMC a nurse was disciplined for yelling and swearing at another nurse during a procedure with a patient. The nurse believed he was showing his passion for patient care and demonstrating his willingness to protect them. HR had to help the nurse understand that he had violated EIRMCs respect and integrity values, despite his good intentions. After several meetings the nurse understood and accepted the violation and has since repaired the relationships he damaged.

QUESTIONS

1. Do you think evaluations of values should receive equal, more, or less weight than evaluation of objectives (or what the employee accomplishes) in employees performance evaluation? Why? Explain Briefly