Reference no: EM132888274

SAYING GOODBYE TO PERFORMANCE APPRAISAL AND RANKINGS

 Accenture, one of the world's biggest professional services firms, recently announced its decision to fundamentally change its performance management process by ending annual employee evaluations and rankings. Pierre Nanterme, CEO of Accenture, told The Washington Post, "Imagine, for a company of 330,000 people, changing the performance management process - it's huge." "We're going to get rid of probably 90 percent of what we did in the past." Accenture will implement a more "fluid system in which employees receive timely feedback from their managers on an ongoing basis following assignments." "All of this terminology of rankings - forcing rankings along some distribution curve or whatever - we're done with that," Nanterme said. "We're going to evaluate you in your role, not vis-à-vis someone else who might work in Washington, who might work in Bangalore. It's irrelevant. It should be about you." Author of "The Leadership Edge," Ray Williams describes why the traditional approach to performance reviews and rankings don't improve and may actually harm performance in an article that appeared in Psychology Today. "The reality is that the traditional performance appraisal as practiced in the majority of organizations today is fundamentally flawed and incongruent with our values-based, vision-driven and collaborative work environments." However, some managers, HR professionals, and consultants defend the use of performance appraisals and rankings. Retired Fortune 500 CEO, Victor Lipman, wrote in a Forbes.com post that reviews and rankings can bring a sort of "disciplined rigor" to the management process And at Facebook, employee focus groups and follow-up surveys revealed that 87 percent wanted to keep performance ratings. CEO Nanterme describes Accenture's new process as "moving performance management back stage and bringing performance achievement center stage." "Performance is an ongoing activity. It's every day...It's much more fluid. People want to know on an ongoing basis.... Am I moving in the right direction? Do you think I'm progressing? Nobody's going to wait for an annual cycle to get that feedback." 

QUESTIONS:-

1. Should companies get rid of performance reviews and rankings? Why or why not?

• Discuss from the case, & share other Examples that support each opinion and your point of view

2. What is your advice to Canadian organization, and public sector in designing a performance management system that effectively supports employee performance and accountability?

• Explain your advice regarding the methods of performance appraisals and why you think will be relevant for each sector to maximize performance
• Discuss what problems do you think might occur in implementing the performance management you are recommending