cover feature
reviews and rankings with what he calls
timely, personalized employee feedback.
Microsoft completely retired ratings and
annual reviews and says it’s now emphasizing
continual learning and growth.
Deloitte has made some of the biggest
changes of the pack, doing away with cascading
objectives, annual reviews and
360-degree feedback tools, and replacing
them with new ways of collecting reliable
performance data, constant learning and
feedback and one-size-fits-one initiatives.
If there’s change in the air – and the
number of organizations redefining PM
systems suggests there is – that’s really
just par for the evolutionary course. A
quick review of the history of PM shows
distinct shifts in philosophy over time.
The personality appraisals popular in the
1950s, for example, eventually gave way
to the introduction of psychometrics and
ratings scales in the 1970s, followed by an
increased focus on engagement and motivation
in more recent decades. If we’re
in the midst of change, then, it’s perfectly
natural.
A TOUCH-UP, OR A RENOVATION?
There’s more than one school of thought
about if and how to shake up a PM system
for better results. But much like an
underperforming employee, a system
that’s not living up to expectations may
not necessarily need out-and-out replacing;
adjustments to specific trouble zones
could potentially solve the problem in a
less disruptive way.
After all, the bones of a traditional
performance management system make
sense.
“The system drives you to establish
goals for the next performance period,”
said Tony Papa, SVP of global HR
at Federal-Mogul Motorparts. “It drives
you to meet, set up a review process and
drives you to meet again – to track the
performance against the actions and
against the objectives.”
At that point, says Papa, managers and
employees have a chance to adjust course,
if necessary.
THE EVOLUTION OF WORK
One frequent complaint about PM systems
is that they no longer reflect the way
business works. The 12-month cycle of the
typical PM program, for example, lines
up with very little in most work environments.
A December review to talk about a
project that wrapped in August, for example,
or a major bump in the road in May
or a big win in March isn’t practical or all
that useful.
Younger employees, in particular, tend
to want more consistent direction and
feedback. As a result, many organizations
are encouraging managers and employees
to connect more often between official review
periods.
“We seem to be identifying a move towards
more regular informal checkpoints,
or ‘performance conversations,’ as well
as tools that allow employees to register
‘performance moments,’ like completed
projects, positive feedback, awards and
achievements and so on,” said Tolovi Neto.
There’s no one correct formula. The frequency
for those check-ins is something
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