Looking to the future, Network Solut the performance management system revolves plans to continue reinforcing the needed cultural 28 CHAPTER 1 . Performance Managemen Today, part of the training associated with around the idea that the development planning change to support forced distribution ratings HR Centers of Expertise of Network Solutions phase of the system is the joint year-round respon sibility of managers and employees. Managers continue to educate employees about the system are responsible for scheduling meetings, guiding to ensure that they understand that Network Solutions still rewards good performance; they employees on preparing for meetings, and finalix- ing all development plans Individual contributors are just measuring it in a different way than in the are responsible for documenting the developmen- past. There is also a plan to monitor for and cor- tal plans. Both managers and employees are rect any unproductive practices and implement responsible for preparing for the meeting, filling correcting policies and practices. To do this, out the development planning preparation forms, Network Solutions plans on continued checks and attending the meeting, with all stakeholders to ensure that the perfor with forced distribution systems, there is a set mance management system is serving its intended number of employees that have to fall into set rat- purpose. ing classifications. As noted in the Network Solu Consider Network Solutions' performance tions system employees are given a rating of 1.2, management system in light of what we discussed or 3. Individual ratings are determined by the exe as an ideal system. Then answer the following cution of annual objectives and job requirements as questions: well as by a comparison rating of others at a similar level at Network Solutions Employees receiving 1. Overall, what is the overlap between Network a 3, the lowest rating, have a specified time period Solutions' system and an ideal system? to improve their performance. If their performance 2. What are the features of the system imple- does improve, then they are released from the plan, mented at Network Solutions that corre- but they are not eligible for stock options or salary spond to what was described in the chapter increases. If performance does not improve, they as ideal characteristics? Which of the ideal can take a severance package and leave the com - characteristics are missing? For which of the pany or they can start on a performance improve ideal characteristics do we need additional ment plan, which has more rigorous expectations information to evaluate whether they are and time lines than did the original action plan. If part of the system at Network Solutions? performance does not improve after the second 3. Based on the description of the system at period, they are terminated without a severance Network Solutions, what do you anticipate package. Individuals with a rating of 2 receive will be some advantages and positive out- average to high salary increases, stock options, and comes resulting from the implementation of bonuses. Individuals receiving the highest rating the system? of I receive the highest salary increases, stock 4. Based on the description of the system at options, and bonuses. These individuals are also Network Solutions, what do you anticipate treated as "high potential" employees and given will be some disadvantages and negative out- extra development opportunities by their man comes resulting from the implementation of agers. The company also makes significant efforts the system? o retain all individuals who receive a rating of 1