Overall It was recognized that performance problems were not being addressed, and tough pressure from competitors was increasing the costs of managing human performance ineffectively. Finally, Network Solutions, Inc. Wanted to improve its ability to meet its organizational goals and realized that one way of doing this would be to ensure that they were linked to each employee’s goals.
Given this situation, In 2001 Network solution’s CEO announced that he wanted to Implement a forced distribution performance management system in which a set percentage of employees was classified in each of several categories: Rating 1 to top 20% of performers Rating 2 to middle 70% of performers Rating 3 to bottom 10% of performers
A global cross divisional HER team was put In place to design and implement the new system The first task of design team was to build a business case of the new system by showing that if organizational strategy was carried down to team contributions and team contributions were translated into individual goals, then business goals would be met. Individual performance objectives were aligned with organizational goals by focusing on the development of all employees. Desired outcomes of new system Raising performance level of all employees Identifying and retaining top talent
Performance Management Research Paper
Identifying low performer and improving their performance Performance expectations for all employees to be clear Before implementing the program, the design team received the support of senior leadership by communicating that performance management system was the future of network solutions Next, the design team encouraged the senior leaders to stop the development and use of any other performance management system and explained the need for standardization of performance management across all divisions. Finally, the designed team asked senior leaders to promote the new program by
Involving employees In training of talent management and by assessing any needs In their divisions that would not be addressed by the new system. Network solutions global performance management cycle consisted AT Toweling process: 1. Goal cascading and team building 2. Performance planning 3. Development planning 4. Ongoing discussions and updates between managers and employees 5. Annual performance summary Training resources were made available on network solutions’ intranet for managers and individual contributors, including access to all necessary forms.
In addition to raining available on intranet, 1 to 2 hours conference calls took place before each phase of program was begun Today, part of training associated with the performance management system revolves around the idea that the development planning phase of the system is the Joint year-round responsibility of managers and employees. Managers are responsible for: Scheduling meetings Guiding employees on preparing for meetings Finalizing all development plans Individual contributors are responsible for: Documenting Development plans Both manager and employees are responsible for: Preparing for meetings
Filling out development planning preparation forms Attending the meeting As noted, in the Network solutions system employees are given a rating of 1, 2 or 3. Individual ratings are determined by the execution of annual objectives and Job requirements as well as by a comparison rating of others at a similar level at Network Solutions. Rating 3 The lowest rating, have a specified time period to improve their performance. If their performance does improve, then they are released from the plan, but they are not eligible for stock options or salary increases.
If performance does not improve, they an take a severance package and leave the company or they can start on a performance improvement plan, which has more rigorous expectations and time lines than did the original action plan. If performance does not improve after the second period, they are terminated without a severance package. Rating 2 Receive average to high salary increases, stock options and bonuses. Rating 1 Receive the highest salary increases, stock options and bonuses. These individuals are also treated as “high potential” employees and given extra development opportunities by their managers.
The company also makes significant efforts to retain al individuals who receive a rating of 1. Looking to the future, HER Centers of Expertise of Network Solutions continue to educate employees about system to ensure that they understand that Network Solutions still rewards good performance; they are Just measuring it in a different way than in the past. There is also a plan to monitor for and correct any unproductive practices and implement correcting policies and practices. To do this, Network Solutions plans on continued checks with all stakeholders to ensure that the performance management system is serving its intended purpose.
QUESTIONS IQ . Overall, what is overlap between Network Solutions’ system and an ideal system? Q. What are the features of the system implemented at Network Solutions that correspond to what was described as ideal characteristics? Which of the ideal characteristics are missing? Q. Based on the description of the system at Network Solutions, what do you anticipate will be some advantages and positive outcomes resulting from the implementation of the system? Q. Based on the description of the system at Network Solutions, what do you anticipate will be some disadvantages and negative outcomes resulting from the