Network Solutions, Inc. is a worldwide leader in hardware, Network Solutions and by encouraging all senior...

 

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Network Solutions, Inc." is a worldwide leader in hardware, Network Solutions and by encouraging all senior leaders to software, and services essential to computer networking. Until ensure that those reporting directly to them understood the recently, Network Solutions, Inc., used more than 50 different process and accepted it. In addition, they encouraged senior systerns to measure performance within the company, many leaders to use the system with all of their direct subordinates employees did not receive a review, fewer than 5% of all em- and to demand and utilize output from the new system. Next, ployees received the lowest category of rating, and there was the design team encouraged the senior leaders to stop the no recognition program in place to reward high achievers. development and use of any other performance management Overall, it was recognized that performance problems were not being addressed, and tough pressure from competitors was performance management across all divisions. Finally, the increasing the costs of managing human performance ineffec- team asked senior leaders to promote the new program by tively. In addition, quality initiatives were driving change in involving employees in training of talent management and by several areas of the business, and Network Solutions decided assessing any needs in their divisions that would not be system and explained the need for standardization of that these initiatives should also apply to "people quality." addressed by the new system. The Network Solutions global Finally, Network Solutions wanted to improve its ability to performance management cycle consisted of the following meet its organizational goals and realized that one way of process: doing this would be to ensure that they were linked to each employee's goals. Given this situation, in 2001, Network Solutions' CEO 1. Goal cascading and team building 2. Performance planning 3. Development planning 4. Ongoing discussions and updates between managers and employees 5. Annual performance summary announced that he wanted to implement a forced distribution performance management system in which a set percentage of employees were classified in each of several categories (e.g., a rating of 1 to the top 20% of performers; a rating of 2 to the middle 70% of performers; and a rating of 3 to the bot- tom 10% of performers). A global cross divisional HR team Solutions' intranet for managers and individual contributors, was put in place to design and implement the new system. including access to all necessary forms. In addition to the The first task for the design team was to build a business case training available on the intranet, 1- to 2-hour conference calls of the new system by showing that if organizational strategy took place before each phase of the program was begun. Training resources were made available on Network was carried down to team contributions and team contribu- Today, part of the training associated with the perform- tions were translated into individual goals, then business ance management system revolves around the idea that the goals would be met. Initially the program was rolled out as a year-round people management system that would raise the round responsibility of managers and employees. Managers bar on performance management at Network Salutions by are responsible for scheduling meetings, guiding employees development planning phase of the system is the joint year- aligning individual performance objectives with organizational on preparing for meetings, and finalizing all development goals by focusing on the development of all employees. The plans. Individual contributors are responsible for documenting desired outcomes of the new system included raising the per- the developmental plans. Both managers and employees formance level of all employees, identifying and retaining top are responsible for preparing for the meeting, filling out the talent, and identifying low performers and improving their per- development planning preparation forms, and attending the formance. Network Solutions also wanted the performance meeting. expectations for all employees to be clear. Before implementing the program, the design team of employees that have to fall into set rating classifications. received the support of senior leadership by communicating As noted, in the Network Solutions system employees are that the performance management system was the future of given a rating of 1, 2, or 3. Individual ratings are determined by With forced distribution systems, there is a set number This case study is based, in part, on actual information. Network Solutions, Inc., is a pseudonym which is being used to protect the identity of the actual company in question. Part I • Strategic and General Considerations 32 the execution of annual objectives and job requirements as than in the past. There is also a plan to monitor for and correct well as by a comparison rating of others at a similar level at any unproductive practices and implement correcting policies Network Solutions. Employees receiving a 3, the lowest and practices. To do this, Network Solutions plans on continued rating, have a specified time period to improve their perform- checks with all stakeholders to ensure that the performance ance. If their performance does improve, then they are management system is serving its intended purpose. released from the plan, but they are not eligible for stock options or salary increases. If performance does not improve, ment system in light of what we discussed as an ideal system. Consider Network Solutions' performance manage- they can take a severance package and leave the company or Then answer the following questions: they can start on a performance improvement plan, which has more rigorous expectations and time lines than did the origi- nal action plan. If performance does not improve after the second period, they are terminated without a severance pack- age. Individuals with a rating of 2 receive average to high salary increases, stock options, and bonuses. Individuals 1. Overall, what is the overlap between Network Solutions' system and an ideal system? 2. What are the features of the system implemented at Network Solutions that correspond to the features described in the chapter as ideal characteristics? Which receiving the highest rating of 1 receive the highest salary increases, stock options, and bonuses. These individuals are also treated as "high potential" employees and given extra of the ideal characteristics are missing? For which of the ideal characteristics do we need additional information to evaluate whether they are part of the system at development opportunities by their managers. The company also makes significant efforts to retain all individuals who receive a rating of 1. Looking to the future, Network Solutions plans to con- Network Solutions? 3. Based on the description of the system at Network Solutions, what do you anticipate will be some advantages and positive outcomes resulting from the implementation of the system? 4. Based on the description of the system at Network tinue reinforcing the needed cultural change to support forced distribution ratings. HR Centers of Expertise of Network Solutions continue to educate employees about the system to ensure that they understand that Network Solutions still rewards good performance; they are just measuning it in a different way Solutions, what do you anticipate will be some disad- vantages and negative outcomes resulting from the implementation of the system? CASE STUDY 1-3 Distinguishing Performance Management Systems from Performance Appraisal Systems What are the differences between a performance appraisal system and a performance management systerm? How are the two systems related to each other? After answering these questions, consider the following 11 criticisms. Which of the following criticisms pertain to performance appraisal systems but not to performance management systems? Which criti- cisms pertain to both performance appraisal and performance management systems? Use Xs on the table below to denote answers. Then, provide an explanation for categorizing the 11 criticisms in the way you did. months to say something about it. How does that help next week's performance?" Criticism 3: "Never make the evaluation a hit-and-run. It should take the form of a dialogue between the supervi- sor and subordinate, not an isolated event but rather a part of performance/career management more generally." Criticism 4: "A number of years ago, the U.S. Equal Employment Opportunity Commission (EEOC) created a "Like Me' task force. Its general conclusion there was a human tendency to favor employees who are like the managers making the employment assessment." Criticism 1: "There can be] inconsistency between comments and scores on an employee's evaluation." Criticism 5. "Few managers jump with glee at appraisal time. When they triage workplace demands, many times appraisals end up at the bottom. As a result, late appraisals are often the norm and not the exception." Criticism 2: "The annual performance review is a bad management tool. To start with, it is not timely. If your subordinate is deficient in some ways, you wait 11 Network Solutions, Inc." is a worldwide leader in hardware, Network Solutions and by encouraging all senior leaders to software, and services essential to computer networking. Until ensure that those reporting directly to them understood the recently, Network Solutions, Inc., used more than 50 different process and accepted it. In addition, they encouraged senior systerns to measure performance within the company, many leaders to use the system with all of their direct subordinates employees did not receive a review, fewer than 5% of all em- and to demand and utilize output from the new system. Next, ployees received the lowest category of rating, and there was the design team encouraged the senior leaders to stop the no recognition program in place to reward high achievers. development and use of any other performance management Overall, it was recognized that performance problems were not being addressed, and tough pressure from competitors was performance management across all divisions. Finally, the increasing the costs of managing human performance ineffec- team asked senior leaders to promote the new program by tively. In addition, quality initiatives were driving change in involving employees in training of talent management and by several areas of the business, and Network Solutions decided assessing any needs in their divisions that would not be system and explained the need for standardization of that these initiatives should also apply to "people quality." addressed by the new system. The Network Solutions global Finally, Network Solutions wanted to improve its ability to performance management cycle consisted of the following meet its organizational goals and realized that one way of process: doing this would be to ensure that they were linked to each employee's goals. Given this situation, in 2001, Network Solutions' CEO 1. Goal cascading and team building 2. Performance planning 3. Development planning 4. Ongoing discussions and updates between managers and employees 5. Annual performance summary announced that he wanted to implement a forced distribution performance management system in which a set percentage of employees were classified in each of several categories (e.g., a rating of 1 to the top 20% of performers; a rating of 2 to the middle 70% of performers; and a rating of 3 to the bot- tom 10% of performers). A global cross divisional HR team Solutions' intranet for managers and individual contributors, was put in place to design and implement the new system. including access to all necessary forms. In addition to the The first task for the design team was to build a business case training available on the intranet, 1- to 2-hour conference calls of the new system by showing that if organizational strategy took place before each phase of the program was begun. Training resources were made available on Network was carried down to team contributions and team contribu- Today, part of the training associated with the perform- tions were translated into individual goals, then business ance management system revolves around the idea that the goals would be met. Initially the program was rolled out as a year-round people management system that would raise the round responsibility of managers and employees. Managers bar on performance management at Network Salutions by are responsible for scheduling meetings, guiding employees development planning phase of the system is the joint year- aligning individual performance objectives with organizational on preparing for meetings, and finalizing all development goals by focusing on the development of all employees. The plans. Individual contributors are responsible for documenting desired outcomes of the new system included raising the per- the developmental plans. Both managers and employees formance level of all employees, identifying and retaining top are responsible for preparing for the meeting, filling out the talent, and identifying low performers and improving their per- development planning preparation forms, and attending the formance. Network Solutions also wanted the performance meeting. expectations for all employees to be clear. Before implementing the program, the design team of employees that have to fall into set rating classifications. received the support of senior leadership by communicating As noted, in the Network Solutions system employees are that the performance management system was the future of given a rating of 1, 2, or 3. Individual ratings are determined by With forced distribution systems, there is a set number This case study is based, in part, on actual information. Network Solutions, Inc., is a pseudonym which is being used to protect the identity of the actual company in question. Part I • Strategic and General Considerations 32 the execution of annual objectives and job requirements as than in the past. There is also a plan to monitor for and correct well as by a comparison rating of others at a similar level at any unproductive practices and implement correcting policies Network Solutions. Employees receiving a 3, the lowest and practices. To do this, Network Solutions plans on continued rating, have a specified time period to improve their perform- checks with all stakeholders to ensure that the performance ance. If their performance does improve, then they are management system is serving its intended purpose. released from the plan, but they are not eligible for stock options or salary increases. If performance does not improve, ment system in light of what we discussed as an ideal system. Consider Network Solutions' performance manage- they can take a severance package and leave the company or Then answer the following questions: they can start on a performance improvement plan, which has more rigorous expectations and time lines than did the origi- nal action plan. If performance does not improve after the second period, they are terminated without a severance pack- age. Individuals with a rating of 2 receive average to high salary increases, stock options, and bonuses. Individuals 1. Overall, what is the overlap between Network Solutions' system and an ideal system? 2. What are the features of the system implemented at Network Solutions that correspond to the features described in the chapter as ideal characteristics? Which receiving the highest rating of 1 receive the highest salary increases, stock options, and bonuses. These individuals are also treated as "high potential" employees and given extra of the ideal characteristics are missing? For which of the ideal characteristics do we need additional information to evaluate whether they are part of the system at development opportunities by their managers. The company also makes significant efforts to retain all individuals who receive a rating of 1. Looking to the future, Network Solutions plans to con- Network Solutions? 3. Based on the description of the system at Network Solutions, what do you anticipate will be some advantages and positive outcomes resulting from the implementation of the system? 4. Based on the description of the system at Network tinue reinforcing the needed cultural change to support forced distribution ratings. HR Centers of Expertise of Network Solutions continue to educate employees about the system to ensure that they understand that Network Solutions still rewards good performance; they are just measuning it in a different way Solutions, what do you anticipate will be some disad- vantages and negative outcomes resulting from the implementation of the system? CASE STUDY 1-3 Distinguishing Performance Management Systems from Performance Appraisal Systems What are the differences between a performance appraisal system and a performance management systerm? How are the two systems related to each other? After answering these questions, consider the following 11 criticisms. Which of the following criticisms pertain to performance appraisal systems but not to performance management systems? Which criti- cisms pertain to both performance appraisal and performance management systems? Use Xs on the table below to denote answers. Then, provide an explanation for categorizing the 11 criticisms in the way you did. months to say something about it. How does that help next week's performance?" Criticism 3: "Never make the evaluation a hit-and-run. It should take the form of a dialogue between the supervi- sor and subordinate, not an isolated event but rather a part of performance/career management more generally." Criticism 4: "A number of years ago, the U.S. Equal Employment Opportunity Commission (EEOC) created a "Like Me' task force. Its general conclusion there was a human tendency to favor employees who are like the managers making the employment assessment." Criticism 1: "There can be] inconsistency between comments and scores on an employee's evaluation." Criticism 5. "Few managers jump with glee at appraisal time. When they triage workplace demands, many times appraisals end up at the bottom. As a result, late appraisals are often the norm and not the exception." Criticism 2: "The annual performance review is a bad management tool. To start with, it is not timely. If your subordinate is deficient in some ways, you wait 11

Answer rating: 100% (QA)

1 The following is the overlap between Network solutions and an optimal system The Network Solutions team wants to make sure that their workers priorities are in line with the companys Another point o... View the full answer