1. PERFORMANCE MANAGEMENT
A journey into the abyss of employee evaluations
WCU HR 698, Spring 2009
C. David Crouch
Lindsay Handsel
Ryan Mitchell
Angela Trull
Frank Wheeler 1 1

2. Introduction
Our group chose “performance management” as our topic to explore. In that exploration process, we discovered that the topic itself is much too broad for this assignment. Realizing that there has been much research and data presented in relation to organizational and team performance management, i.e. balanced scorecards and the like, we chose to narrow our focus to performance management of employees, typically referred to as the employee evaluation process. This area carries with it much debate, confusion and frustration in American business. It seems though well engrained in American business, the employee evaluation process is questioned and viewed as non-valued by many. Why is that? Our group decided to investigate best practices and processes and explore any alternative perspectives we could find. We invite you to join us on a journey into the abyss of employee evaluations and the frustrations leaders face with this highly polemic issue. 2
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 2

3. Your Perception
From the Zoomerang survey week of March 24, 2009
75% of you said the leaders in your organizations don’t like employee evaluations or are neutral to them
92% of you said your leaders have only one conversation per year with their employees about their performance
58% of you said your current system does not improve team or organizational outcomes
83% of you said your leaders do not use the process on a daily basis to encourage desired performance
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 3

4. What’s good about it? They don’t have to determine pay raises
According to you…
They don’t have to determine pay raises
It’s quick, easy and standardized
Requires leaders to have a conversation at least once/year with their employees about their performance
Determining future goals
Eval form guides them thru the process
First step in building a case against the employee
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 4

5. What’s bad about it? Too time consuming
According to you…
Too time consuming
No consistency manager to manager
Employees don’t value it either
Forced bell curve of performance
Just more paperwork
Doesn’t accurately represent performance
No one pays attention to it
Too many to do
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 5

6. What would you change? Remove the link to pay Make it relate to pay
Require more frequent conversations
Reduce subjectivity
Stop holding people accountable for things they have no control over
Use a different rating scale
Use cameras periodically
Everything!
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 6

7. Generally speaking,
You seem to be saying…
Our leaders and employees place little, if any, value on our own employee evaluation processes
Those processes do little to help us accomplish our team and organizational outcomes
Leaders don’t use the process on a daily basis to encourage desirable performance
In other words, we seem to be wasting our time, and a lot of it!
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 7

8. What do others say?
The importance of supervisors communicating to employees throughout the performance appraisal cycle with clarity and ensuring mutual understanding was emphasized in Salary.com's 2006 Performance Review Survey. The survey showed significant gaps between employer and employee views on performance management. For example:
82% of managers believe they provide clear goals to their employees prior to their formal performance review, but only 46% of employees say the same
83% of employers say that they include the input of their employees in the review process but only 43 % of employees feel their input is valued and included
Nearly half of the 2,000 employees surveyed said their performance has at some time been reviewed against goals that were not previously communicated 8
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 8

9. Introduction
It’s apparent there’s a problem with the way we attempt to manage performance in America. In our presentation, we’ll first define performance management and clarify its intended purpose and benefits. We’ll try to identify the elements of effective evaluation processes and then look at some of the problems. Finally, we’ll suggest alternative approaches that some believe are better than the current methods commonly in practice today.
Join us now as we journey into the abyss of the employee evaluation process…. 9
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 9

10. Table of Contents Performance management defined
The history of performance management
The purpose of performance management, why we do it & the underlying assumptions
Elements of an effective performance management system
Problems with performance management
Should evaluations be abolished altogether?
What could we do instead?
Unanswered questions & key take-aways
Conclusion 10
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 10

11. Performance Management Defined11 11

12. Performance Management Defined
Performance Management, in its broadest context, deals with processes to manage performance at the organizational, team, and individual levels. For the purposes of this presentation, we have chosen to focus on the individual level, the employee evaluation process.
The process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. 12
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 12

13. Performance Management Defined (cont.)
An assessment of an employee, process, equipment or other factor to gauge progress toward predetermined goals. See also organizational development (OD), performance appraisal, application performance management (APM), business performance management (BPM), operational performance management (OPM)
“Simply put, performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner.”
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

14. Performance Management at a Glance
Managing performance is a critical focus of HR activity. Well-designed strategies to recognize and improve performance and focus individual effort can have a dramatic effect on bottom-line results. The problem is to determine what the processes, tools and delivery mechanisms are that will improve performance in your organization, as well as determine which ones are best avoided. Managing Performance will help you: - design performance management processes that reflect the context and nature of the organization; - create supportive delivery mechanisms for performance management; and - evaluate and continuously develop performance management strategies to reflect the changing business environment.
(M. Armstrong and A. Baron)
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

15. The History of Performance Management15 15

16. History of Performance Management
Businesses began approximately 60 years ago to determine an employee’s wage based on performance.
Performance appraisal (PA) systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified.
Performance Management (PM) was used by employers to drive employee behaviors to achieve certain outcomes. For those driven by $, this worked well. For ones who were seeking development and training it failed to drive the desired behaviors. 16
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 16

17. History (cont’d)
The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay raise was in order.
Little consideration, if any, was given to the developmental possibilities of appraisal. It was felt that a cut in pay, or a raise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

18. History (cont’d)
Early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence on Performance Appraisal as an attempt to drive desirable performance.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

19. History (cont.)
Goal setting was futilely attempted (employees set goals low to ensure achievement, managers gave common ratings to employees to avoid upsetting individuals).
Employees were paid to work and not to think.
Gap between pay justification and skill development and knowledge widened.
Employees began to request pay increases.
In the 1980’s a more formalized approach was used and emphasis was placed on the Performance Appraisal as an attempt to drive desirable performance.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

20. History (cont.)
Employee’s performance tended to accelerate shortly before the next PA.
In the 21st century, PA’s have been absorbed into PM. Talent Management, Career Management, MBO’s and differentiation of employee performance are common.
Evolved into an on-going process and not a one time or annual event.
Performance Management progressed from an HR policy firmly within the remit of the HR department to a business process that is central to aligning activity with strategic goals and is as much about managing the business as it is about directing people and controlling the flow of training or rewards.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

21. The Purpose of Performance Management. Why we do it. Expected benefits
The Purpose of Performance Management Why we do it Expected benefits Underlying assumptions 21 21

22. Purpose of Performance Management
Linking people to performance and profits.
Drive improvement in business results through individual, group, organizational goal attainment, measurement, performance coaching and performance information sharing.
To drive org and individual capability development by role clarity, establishing an environment of constructive feedback through formal developmental coaching/mentoring.
Help employees understand what they should be doing, and how well they should be doing it.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

23. Purpose of Performance Management (cont.)
Motivate and retain high performers by providing career development programs encompassing motivational and reward strategies, challenging work assignments and other on-the-job learning initiatives that will lead to career advancement and job satisfaction.
Helps prevent problems from occurring throughout the year and identify barriers to performance before they impact performance.
Improve future performance.
Helping people to do a great job.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

24. Source: “The Leader’s Handbook,” by Peter Scholtes
Why do we do it?
Source: “The Leader’s Handbook,” by Peter Scholtes
We believe it works.
We believe we can accurately and objectively identify those employees whose performance is consistently above or below average.
We believe that the individual’s performance contributes to the bottom line, for better or worse.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

25. Source: “The Leader’s Handbook,” by Peter Scholtes
Why do we do it?
Source: “The Leader’s Handbook,” by Peter Scholtes
Our logic goes like this…
There are good performers and bad performers.
We can tell the good from the bad.
Good performers make a positive contribution to the company.
Bad performers are detrimental to the company’s performance.
Performance appraisal serves to clarify an individual’s work responsibilities, align the worker with the organization’s goals, hold each worker accountable for their part, and motivate them to continuously improve.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

26. What are the expected benefits?
Source: “The Leader’s Handbook,” by Peter Scholtes
Identifying and responding to outstanding performers
Creating a basis for pay
Providing feedback to individual employees
Giving direction and focus to the workplace
Identifying career goals
Identifying education and training needs
Identifying candidates for promotion 26
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 26

27. What are the expected benefits?
Source: “The Leader’s Handbook,” by Peter Scholtes
Identifying candidates for layoff
Fostering communication between employees and their supervisors
Creating a paper trail that will serve as a defense against suits for wrongful dismissal or other perceived unfair treatment
Conforming to regulatory requirements
Motivating employees
Go forward to “Debundle the Cart “ 27
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 27

28. Underlying Assumptions
Source: “The Leader’s Handbook,” by Peter Scholtes
Evaluation will improve an employee’s performance
The employee being evaluated has control over the results.
The employee’s individual contribution can be discerned from the contributions of the system and other managers and workers in the system.
All processes with seemingly identical equipment, materials, training, job descriptions, etc., are, in fact, identical.
The standards of evaluation are related to factors demonstrably important to the business and its customers.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

29. Underlying Assumptions
Source: “The Leader’s Handbook,” by Peter Scholtes
The standards are reasonable and achievable.
Each system in which an employee works is stable and capable of delivering the expected results.
The evaluation covers performance over the entire cycle of evaluation, not just the period recallable by recent memory.
All evaluators are consistent with each other.
Each evaluator is consistent from one employee to the next.
Go forward to “Unquestioned Premises”
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

30. The Elements of an Effective Performance Management System
The Elements of an Effective Performance Management System General practice Balanced measures Demings methodology Gallup’s best practices 30 30

31. General Practice Effective employee performance management includes:
planning work and setting expectations,
continually monitoring performance,
developing the capacity to perform,
periodically rating performance in a summary fashion, and
rewarding good performance.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

32. General Practice - individual level
Using a Balanced Measures Approach affects employee performance management. Many of the best practices of balancing organizational measures cited significantly affect employee performance management methods and processes, including:
Cascading Accountability
Involving Employees
Keeping Employees Informed
Rewarding Employees
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

33. Balanced Organizational Measures
Balancing measures is a strategic management system for achieving long-term goals. Organizations using a "family of measures" to create this balance consider the perspectives of their customers, stakeholders, and employees while achieving a specific mission or result.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

34. Best practices for using balanced measures include:
establishing a results-oriented set of measures that balances business goals, customer needs and satisfaction, and employee involvement, development, and satisfaction with working conditions
establishing accountability at all levels of the organization, through leading by example, cascading accountability, and keeping everyone informed
collecting, using and analyzing performance data, which includes providing feedback
connecting performance management efforts to the organization's business plan and budget
sharing the leadership role, which strengthens the continuity of the performance management process despite changes in top management
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

35. Source: http://deming-network.org/files/tqmorpa.txt
Deming’s Methodology
Source:
Common characteristics of performance appraisals
Focus is on the individual’s work
There are expectations or standards of performance
Usually two sessions between employer and evaluator
One to establish the standards, and
Another to review performance 35
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 35

36. Source: http://deming-network.org/files/tqmorpa.txt
Deming’s Methodology
Source:
Common characteristics of performance appraisals
Evaluator is usually the person who has line authority over the one evaluated
Usually results in a written conclusion
There are various consequences:
Merit pay
Determining promotability
Basis for layoffs 36
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 36

37. Deming’s Quality Systems Check
Source: blog post by Terence Seaman
Does your performance management process support these values:
Customer focus
Systems thinking
Teamwork
Process improvement
Fact-based decision making using measurement
How employees are treated, motivated and developed 37
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 37

38. Gallup’s Best Practices
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup
From 20 years of research seeking the answer to the question “what do the world’s greatest managers do differently,” Gallup’s researchers have discerned a best practice in the area of performance management. The following information describes their detailed approach to high employee engagement through a process of communication and inquiry between manager and employee.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

39. Gallup’s Best Practices
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup
Define behavior outcome measurements that align to and drive team and organizational outcomes
Differentiate between high and low performers
Minimize rater bias in the measurements by including objectivity wherever possible
Maximize employee responsibility and participation through education and self-evaluation
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

40. Gallup’s Best Practices (con’t)
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup
Train leaders how to reinforce performance on a daily basis
Connect with the employee at regular intervals throughout the performance year, at least quarterly
Identify clearly defined standards that can be fairly and consistently applied across the organization for all job roles
Provide a mechanism for integrating job specific performance measures
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

41. Gallup’s Best Practices (cont’d)
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup
Focus on performance excellence instead of mediocrity or “minimum standards”
Provide a valid, fair correlation to annual pay adjustments for those who desire “merit based pay systems”
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

42. What great managers do
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup, p
Establish a simple routine void of the usual company-sponsored schemes
Concentrate on what to say to each employee and how to say it
Engage in frequent interaction between the manager and the employee…a minimum of once/quarter
Focus on the future
Employees keep track of their own performance and learning
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

43. The Basic Routine
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup, p
At the beginning of the year, or a week or two after the person starts, spend an hour asking the following:
What did you enjoy most about your previous work experience? What brought (keeps) you here?
What do you think your strengths are?
What are your weaknesses?
What are your goals for your current role?
(Ask for scores and timelines)
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

44. The Basic Routine
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup, p
How often would you like to meet with me to discuss your progress?
Are you the kind of person who will tell me how you’re feeling, or will I have to ask?
Do you have any personal goals or commitment you would like to tell me about?
What is the best praise you’ve ever received?
What made it so good?
Have you had any really productive partnerships or mentors?
Why do you think these relationships worked so well for you?
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

45. The Basic Routine
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup, p
What are your future growth goals, your career goals?
Are there any particular skills you want to learn?
Are there some specific challenges you want to experience?
Is there anything else you want to talk about that might help us work well together?
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

46. The Performance Planning Meetings
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup, p
Once/quarter, do the following…
10 minute focus on the past
What actions have you taken?
What discoveries have you made?
What partnerships have you built?
50 minute focus on the future
What is your main focus?
What new discoveries are you planning?
What new partnerships are you hoping to build?
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

47. Career Discovery Questions
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup, p
Scatter these throughout the year
How would you describe success in your current role? Can you measure it?
What do you actually do that makes you as good as you are? What does this tell you about your skills, knowledge, and talents?
Which part of your current role do you enjoy the most? Why?
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

48. Career Discovery Questions
Source: “First, Break All the Rules” by Marcus Buckingham of Gallup, p
Scatter these throughout the year
Which part of your current role are you struggling with? What does this tell you about your skills, knowledge, and talent? What can we do to manage around this?
What would be the perfect role for you? Why would you like it so much?
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

49. Problems with Performance Management49 49

50. Our approach to the problem
To gain insight into the problems with employee evaluations, we accessed these resources:
Scholarly literature
Practitioner literature
Current online discussions with HR/OD/T&D professionals across the globe on in several discussion groups including SHRM, ODN, ISPI, ASTD, and T&D
Current survey of leaders in healthcare
Personal experiences of all the team members
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

51. Unquestioned Premises
Source: “The Leader’s Handbook,” by Peter Scholtes
Scholtes contends that the assumptions noted earlier are common, but seldom true.
At their root, are these premises and beliefs:
People cannot be trusted.
People don’t want to work or accept responsibility or carry their share of the load
People don’t want to learn or improve. They want to be left alone.
People are withholding their best effort and can be induced to do better only through incentives (carrots and sticks) imposed from the outside.
Go back to “Assumptions” 51
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 51

52. Unquestioned Premises
Source: “The Leader’s Handbook,” by Peter Scholtes
What exists in nearly all organizations is a system of profound problems that result primarily from a system of management policies and programs.
If you practice these policies and programs you will produce these problems.
If you wish to get rid of these problems, you must get rid of these policies and programs.
The premises hold the practices in place.
The practices beget the problems.
The premises are untrue and contrary to systems thinking. 52
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 52

53. Unquestioned Premises
Source: “The Leader’s Handbook,” by Peter Scholtes
Scholtes contends that typical policies and programs are based on these premises:
Problems result from individual dereliction.
Successful work requires holding people accountable for the achievement of measurable goals.
There is a reservoir of withheld effort that must be coaxed or coerced out of people.
Managers can and must motivate and control the workforce. 53
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 53

54. Source: “The Leader’s Handbook,” by Peter Scholtes
The Main Problems
Source: “The Leader’s Handbook,” by Peter Scholtes
It doesn’t work
90% of managers using performance appraisals describe them as “unsuccessful.”
Timothy Schellhardt’s report in The Wall Street Journal, November 19, 1996
There is no significant data to support the effectiveness of the performance appraisal.
Performance appraisal focuses mostly on individuals, sometimes groups. Either one is the wrong target.
Performance appraisal is judgment, not feedback.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

55. Other Problems with Employee Eval
Source: LinkedIn.com discussions; personal experiences, custom survey
Low value perception by leaders & employees
Once/year event to satisfy HR file needs
Arbitrary and meaningless criteria for measurement
Too much subjectivity & judgment required
Promotes mediocrity, not excellence
Failure to differentiate high/low performance
Inconsistently applied across the organization
Misaligned to team and organizational goals
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

56. Other Problems with Employee Eval
Source: LinkedIn.com discussions; personal experiences, custom survey
No apparent best practice or proven method available
Most people dislike them which leads to poor execution and inconsistencies
Lack forward thinking and developmental planning
It’s hard to do & takes too much time
Connections to reward and recognition are weak at best
One-sided, boss administered review
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

57. Other Problems with Employee Eval
Source: LinkedIn.com discussions; personal experiences, custom survey
Obstacle to straight talk relationships
Prime cause of low morale
Personal development is impeded
Disruptive to teamwork
The key question is “How are you performing for me?”
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

58. Should Employee Evaluations be Abolished Altogether?58 58

59. Should Evaluations be Abolished?
Source:
According to Dr. W. Edwards Deming, the father of the quality movement, they should …
Dr. Deming said “Stop doing them, and things will get better.”
He listed them as one of his 7 deadly diseases of western management
Also stated that “fair rating is impossible”
And it runs contrary to total quality management
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

60. Source: http://deming-network.org/files/tqmorpa.txt
Deming’s Methodology
Source:
The case against appraisals
Disregards and undermines teamwork
Disregards the existence of a system
Disregards and increases variation in systems
Uses a measurement system that is unreliable and inconsistent
Encourages an approach to problem solving that is superficial and culprit-oriented
Tends to establish a ceiling of mediocrity
Creates losers, cynics & wasted human resources
Seeks to provide a means to administer multiple managerial functions yet is inadequate to accomplish any of them
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

61. What Can We Do Instead. Change the way we think
What Can We Do Instead? Change the way we think Active Questioning Theory Appreciative Inquiry Debundle the cart & rethink it 61 61

62. Source: http://deming-network.org/files/tqmorpa.txt
Change the way we think!
Source:
Until managers let go of their obsession with the individual worker and understand the importance of systems and processes, they will not enter the quality era. Without this change in mind-set, managers will continue to look for alternatives that are no different from what they are trying to replace.
When you’re doing something that is demonstrably harmful, you can stop doing it without finding an alternative way to harm yourself.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

63. Active Questioning Inquiry
Source: Samuel A. Colbert, UCLA Professor of Management
Two-sided, reciprocally accountable, performance review using active questioning inquiry
What’s the best way for us to compliment one another in getting work accomplished with excellence?
How will you be going about it?
What help do you need from me?
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

64. Appreciative Inquiry
Source: “The Essentials of Appreciative Inquiry,” Bernard J. Mohr & Jane Magruder Watkins
A different approach that seeks to create positive futures by…
Choosing the positive as the focus of inquiry
Inquiring into exceptionally positive moments
Sharing the stories and identifying life-giving forces
Creating shared images of a preferred future
Innovating and improvising ways to create that future
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

65. Debundle the Cart & Re-think it!
Source:
Debundle the cart of performance management
Acknowledge each expected benefit as something important to accomplish
Treat each benefit as a separate function
For each expected benefit, ask “What is the best way to successfully accomplish this?”
Set up separate systems and processes specifically designed to successfully accomplish that benefit
Keep in mind the principles at the heart of quality when setting up the new systems
Go back to expected benefits
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

66. Debundling the Services
Source: “The Leader’s Handbook,” by Peter Scholtes
Scholtes presents alternatives to each of the 12 expected benefits noted earlier in this presentation and suggest the alternatives work more effectively to realize those benefits than the performance appraisal process does.
He contends we should do away with performance appraisals altogether and re-think our HR policies and processes.
Go back to expected benefits
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

67. Unanswered Questions 67 67

68. Unanswered Questions
Is it possible for an organization to achieve excellence (i.e. achieve its goals) without employee evaluations as we know them today?
Is the failure of performance appraisals (PA) at least in part due to a failure of the manager to execute them effectively?
What human factors inhibit the PA process?
Can managers and employees truly have an honest/productive conversation about their performance or do emotions always get in the way?
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

69. Unanswered Questions What is next for performance appraisals?
Why are we still doing them?
Is the assertion to de-bundle a better approach?
Is this bundling of objectives the cause of shortcomings?
If not this, then what?
What can be done in the future to remove subjectivity from the equation? 69
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 69

70. Key Take-Aways 70 70

71. Key Take-Aways
Employee evaluations need to be at the very least overhauled, if not eliminated
The need for a better system is great
Objectivity, frequency, better measurements and training are all attributes that the old system is lacking and the new system needs to embody
A better link to organization strategy is needed
Training on how to evaluate must be given to managers 71
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 71

72. Conclusion 72 72

73. Conclusion
The appraisal system has been a corner stone of performance management systems we find in almost every organization. While the need for driving better performance towards strategic goals is even more important in the business world, we have found that the need to overhaul this system (if not replace or abandon it) is strong. With copious research, millions of dollars and strong debate, we still find ourselves at a loss for a better solution. While some have proposed various alternatives, we have failed to see them gain wide spread adoption or validation. The issue remains polemic and the abyss continues to deepen. 73
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler 73

74. References
Archer North and Associates (2006) Introduction performance appraisal.
Retrieved March 7, 2009 from
intro.htm.
ASTD, ISPI, ODN, SHRM, T&D. (2009) Discussion boards. Retrieved March 5, 2009 from
Bacal, Robert (2000) What are the purposes of performance management?
Retrieved February 28, 2009 from – appraisals.
org/faq/performancepurpose.htm.
Bacal, Robert. (1999). Performance management. New York: McGraw-Hill.
Buckingham, Marcus & Coffman, Curt. (1999). First, break all the rules. New York: Simon & Schuster.
Culbert, Dr. Samuel (n.d.) Get rid of the performance review. Retrieved February 28, 2009 from
Harvard Business Review. (2006). Performance management. Boston, MA: Harvard Business School Press.
HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

75. References
Human Capital Management (n.d.) Explain what is performance management.
Retrieved February 28, 2009 from
is-performance-management.shtml.
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HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler