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Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
Edition 6ISBN: 978-0077718367Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
Edition 6ISBN: 978-0077718367 Exercise 17
A Goal-Oriented System of Performance Management
Until recently, Minneapolis-based Medtronic had a performance management system with many of the features employees complain about. Managers assigned each employee a rating on a scale of 1 to 5, and a company-imposed curve told the managers how many employees the managers could include in each category. Managers spent a lot of time trying to figure out a fair way to decide that some employees were a "3" and others a "2," even if their impact on the department was essentially the same. On top of that, the performance measurement took place in a system separate from the company's efforts at employee development and rewards.
In her role as chief talent officer at Medtronic, Caroline Stockdale wanted a system that would better support Medtronic's strategy. As a developer and maker of medical devices, the company needed performance management that encouraged innovation and knowledge sharing, not competition for a higher rating. Also, in a dynamic industry, employees needed frequent feedback to help them stay on track toward goals.
In response to these challenges, Stockdale launched a "performance acceleration" system in which employees meet with their managers four times a year. During these feedback sessions, they focus not on ratings, but on each employee's performance goals. The manager fills out a one-page summary of the employee's progress toward the goals. They discuss what employees should start doing, stop doing, and continue doing. In addition, annual reviews provide the documents needed to fill administrative requirements.
Stockdale says focusing on goals instead of scores helps employees understand what they are doing well and need to do better. She also says the quarterly meetings force managers and employees to identify more specific, practical goals, because it is easier to plan activities for just 12 weeks at a time. Quarterly feedback creates more opportunities to observe and praise accomplishments. According to surveys of employee engagement, Medtronic's employees are more satisfied with the new system, and HR analytics show that managers now are more strategic about targeting the biggest rewards to those who contribute the most.
Evaluate how well Medtronic's performance acceleration system, as it is described here, meets the standards for validity and reliability.
Until recently, Minneapolis-based Medtronic had a performance management system with many of the features employees complain about. Managers assigned each employee a rating on a scale of 1 to 5, and a company-imposed curve told the managers how many employees the managers could include in each category. Managers spent a lot of time trying to figure out a fair way to decide that some employees were a "3" and others a "2," even if their impact on the department was essentially the same. On top of that, the performance measurement took place in a system separate from the company's efforts at employee development and rewards.
In her role as chief talent officer at Medtronic, Caroline Stockdale wanted a system that would better support Medtronic's strategy. As a developer and maker of medical devices, the company needed performance management that encouraged innovation and knowledge sharing, not competition for a higher rating. Also, in a dynamic industry, employees needed frequent feedback to help them stay on track toward goals.
In response to these challenges, Stockdale launched a "performance acceleration" system in which employees meet with their managers four times a year. During these feedback sessions, they focus not on ratings, but on each employee's performance goals. The manager fills out a one-page summary of the employee's progress toward the goals. They discuss what employees should start doing, stop doing, and continue doing. In addition, annual reviews provide the documents needed to fill administrative requirements.
Stockdale says focusing on goals instead of scores helps employees understand what they are doing well and need to do better. She also says the quarterly meetings force managers and employees to identify more specific, practical goals, because it is easier to plan activities for just 12 weeks at a time. Quarterly feedback creates more opportunities to observe and praise accomplishments. According to surveys of employee engagement, Medtronic's employees are more satisfied with the new system, and HR analytics show that managers now are more strategic about targeting the biggest rewards to those who contribute the most.
Evaluate how well Medtronic's performance acceleration system, as it is described here, meets the standards for validity and reliability.
Explanation
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The case discusses about how an organiza...
Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
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