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Performance Management System Review Case Study 1-1, Reality

Review Case Study 1-1, "Reality Check: Ideal Versus Actual Performance Management System", on pages 24-5 of the text. Consider the performance management system in operation at your organization or, if necessary, find an example on the Web. Identify two characteristics that are not present at all--or barely present--in the system. Discuss the implications that the lack of these characteristics is likely to have on the effectiveness of the system.

Note: This posting does not answer the case questions, it answers the question posed above.

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Characteristic one:

My response is based on my friend who is an engineer at Georgia Power Company in Atlanta GA. He says that each year the supervisors are only allowed to give the highest rating (a "five") to three people in his group, regardless of how well everyone performs. So, his boss tells him that he can get a five this year but not next so that the other strong performers can get a five rating at least every other year. The five rating means a different level of pay raise compared to overall ratings of 4, 3, 2, or 1.

This is a weakness of the "acceptability and fairness" aspect of an ideal performance system and the "standardization" of measurement. The impact is that this engineer knows that no matter what he does in the "off year," he cannot get a five rating. It also ...

Solution Summary

Your tutorial is 494 words and gives a story about an engineer at Georgia Power Company in Atlanta GA where there are issues about identification of effective and ineffective performance, acceptability and fairness, openness, and ethicality. The impact of these weaknesses in the performance management and reward system are discussed.

NOTE: This posting does not answer the case questions. It answers the question in the posting.