Imagine a performance evaluation system that promotes roles, behaviors, and work outcomes appropriate to achieve organizational strategic objectives throughout the firm. Take into consideration the Two Sides of Performance Management as illustrated in your textbook on page 164, Figure 6.1. What would such a system look like? Would it be similar to the one used in your organization? How would individual and/or team performance assessment be conducted? What tools would you recommend? Would you use MBO, 360 Degrees or another system? Why?

Table 6.1 Performance Management Process Objectives, Elements, and Trade-Offs Business Execution Element: "... then Trade-off: "... but this Driver: "If you want emphasize ..." may have a negative to increase ..." impact on ..." Alignment around Processes for setting, cas- Process efficiency by common goals and cading, and aligning goals adding time to the strategies Highly detailed compe- goal-setting process and tency models that provide increasing the complexity clear behavioral defini- of performance appraisals tions of performance for different roles Productivity by maxi- Rigorously evaluating Process efficiency by add- mizing individual employees against well- ing time to the evaluation performance defined standards process Calibration methods that Scalability and sustainabil- compare employees to ity unless care is taken to one another also collect developmen- Differentiating high tally valuable perfor- from average and low mance data performers through pay, Governance by increasing promotion, staffing, and risk of complaints about development decisions unfair pay and perfor- Rigorous use of perfor- mance decisions mance improvement processes to manage out underperformers