Strategic Performance Appraisal

1
Strategic Performance Appraisal

• Delana Eichinger
• Melissa Holthaus
• Erin Silver

2
What is Strategic Performance Appraisal and Why
Does it Matter?

• Strategic Performance Appraisal- employees
  evaluated by individual goals that are linked to
  overall organizational goals and objectives
• Part of the performance management system, which
  organizes, facilitates and assesses employee
  contribution to overall company success

3
What is Strategic Performance Appraisal and Why
Does it Matter?

• Performance management- requires demonstration of
  performance outcomes using specific metrics (i.e.
  productivity, decrease in costs, etc)
• The process of performance appraisal, in
  conjunction with overall performance management,
  seeks to explain how employees contribute to the
  BOTTOM LINE.

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Strategic Performance Appraisal Trends

• Forced Ranking
• Forces managers to make serious choices about
  employee performance
• Empowers managers to adhere to strict performance
  objectives
• Recent criticism
• Suggestion make forced ranking systems more
  flexible

5
Strategic Performance Appraisal Trends

• Calibration meetings- managers and supervisors
  discuss performance ratings and come to a
  consensus on individual ratings
• Improves differentiation factor
• Strengthens credibility and validity of ratings
• Reinforces perceived importance of process

6
Strategic Performance Appraisal Trends

• Performance management as a function of training
  and development
• New function deemed LP
• Workforce performance and learning goals
  identified, based on organizational objectives
• Developmental processes to achieve goals then
  formed (not courses)

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Strategic Performance Appraisal Trends

• Reducing the scope of topics in PA sessions
• Day-to-Day feedback
• Feedback as a valuable service, not a reprimand
• Manager as a coach instead of appraiser
• Allows for future career planning and
  organizational goal linkage

8
Strategic Performance Appraisal Trends

• Changing the employee perception of performance
  management
• Help employees set appropriate goals
• Establish performance metrics
• All metrics and rewards should be tied to
  organizational strategy goals should reinforce
  company culture

9
Examples of Traditional PA

• A manager performs the appraisal annually, based
  on individual productivity stats
• The appraiser fills out a form which states the
  employees productivity and some subjective
  comments about behavior
• The appraisals main purpose is to determine
  raises and promotions

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A Performance Example
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Examples of Strategic Performance Appraisal

• An organizations core values include continuous
  improvement of customer service. A goal is set
  during the PA process that involves reducing
  customer service complaints by 15 in the coming
  year. This is linked to organizational values and
  is measurable.

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Examples of Strategic Performance Appraisal
(cont.)

• The manager establishes bi-monthly feedback
  sessions, where employees and managers have a
  brief one-on-one conversation regarding current
  performance goals and standards related to the
  status of the organization at that specific point
  in time.

13
Another Performance Example
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How are Organizations Using Strategic PA?

• Serono S.A.
• Employees set their own goals, which must include
  one of the 15 core competencies
• The core competencies are all tied into one of
  the five pillars of excellence
• http//www.serono.com/index.html

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How are Organizations Using Strategic PA?

• Bristol-Myers Squibb
• Change in focus from past performance to
  forward-focus and goal attainment
• Employees and managers now have an ongoing
  performance partnership
• Expectations adjusted and based on global
  corporate demands
• http//www.bms.com/landing/data/index.html