Reference no: EM133765000
Case: What's driving this change is a recognition that traditional appraisal systems are a significant expense that doesn't add value. The HBR article quotes a Deloitte manager who "referred to the review process as ‘an investment of 1.8 million hours across the firm that didn't fit our business needs anymore.'" A Washington Post business writer provided a more dramatic explanation, referring to the process as a "‘rite of corporate kabuki'" [translation: a form of traditional Japanese drama with highly stylized song, mime, and dance[2]Links to an external site.] that restricts creativity, generates mountains of paperwork, and serves no real purpose." Dollars and drama aside, the primary factor driving this shift is a realization that traditional end-of-year performance appraisal processes tend to be focused on rewarding or punishing past performance and miss the opportunity for improving performance-and developing talent-in real time. In contrast to a rearview mirror view, "regular conversations about performance and development change the focus to building the workforce your organization needs to be competitive both today and years from now."
To summarize, Cappelli and Tavis identify three business imperatives driving decisions to abandon traditional appraisal processes:
The return of people development
Given the competitive labor market, retention is "once again critical" and companies are attempting to eliminate employee ‘dissatisfiers,' which include annual reviews
A focus on numerical ratings is believed to interfere with essential learning
Switching to a project or event debrief model "helps managers do a better job of coaching and allows subordinates to process and apply the advice more effectively"
The need for agility
With innovation increasingly seen as a source of competitive advantage, organizations need agility and employee adaptability-something that traditional backwards-facing appraisal approaches don't support.
The centrality of teamwork.
Fostering teamwork is easier to do when an organization doesn't use forced ranking or focus on individual accountability
The way we work has changed; in order to remain relevant, performance management systems need to change as well.
Cappelli, Peter and Anna Travis. "The Performance Management RevolutionLinks to an external site.." Harvard Business Review. October 2016. Accessed August 20, 2019.
"KabukiLinks to an external site.." Lexico. Accessed August 20, 2019.
Instructions:
1. Do you believe employee performance appraisals are important and effective? Please thoroughly explain your rationale with supporting examples.
2. What do you think is or would be an effective way to evaluate employee performance?