Network Solutions, Inc. is a worldwide leader in hardware, software, and services essential to computer networking (Aguinis, 2013, p.31). In the past, this company has used over 50 different systems to measure performance management. Even with the large amounts of different systems to measure performance, only a fraction of employees were receiving performance reviews, and less than 5% of employees received the lowest category of ratings. Also, the organization had no recognition program for employees with a higher category of ratings. In addition to the lack of employees not receiving reviews, it was noticed in the organization that performance problems were not being addressed or resolved.
With the current performance management issues that have surfaced, the CEO of Network Solutions, Inc. announced that he wanted to begin an initiative to implement a forced distribution performance management system in which employees are reviewed and classified into several categories. An example of this rating system is as follows: a rating of 1 to the top 20% of performers; a rating of 2 to the middle 70% of performers; and a rating of 3 to the bottom 10% of performers (Aguinis, 2013, p.31). Another part of the initiative included implementing a cross-divisional HR team to be in charge of the new program.
Before the program was fully implemented, the design team took the process to the senior leadership team of Network Solutions for final approval. The design team also encouraged the senior leaders to use the performance system with all of their direct subordinates. Another request of the senior leaders is to ensure that the performance management system is standardized across all division...
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... them trying to develop skills to achieve goals. Theoretically, the bottom 10% of employees should be placed on a development plan to help guide the employee and supervisor on how to achieve specified goals. However, if an employee development plan has been worked through by both the employee and supervisor and there has been no improvement in productivity, an organization may choose to cut the losses and terminate or let the employee go.
When implementing a new performance management system in an organization there are both advantages and disadvantages that need to be taken into consideration by the design team. However, one of the best ways to know if a performance management system is effective is by implementing the system within the organization and then continuously monitor and reevaluate if the system is still relevant to the organizational needs.
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