The article entitled “Performance management is broken” written by Nabaum, Barry and Garr was published online through the official website of Deloitte University Press. The authors discussed relevant issues pertaining to current performance management concerns and practices applied by contemporary organizations. As asserted, the traditional method of rating employees according to pre-defined standards and ranking them in comparison with other colleagues were deemed broken and ineffective. An innovative and more appropriate approach was noted in terms of applying continuous coaching and focusing on training and development for professional growth.
The information disclosed in the article illustrates the topic on performance management, specifically that which was published in The Wall Street Journal, entitled “'Rank and Yank' Retains Vocal Fans” . The need to re-evaluate the use of the forced ranking, more popularly known as the ‘rank and yank’ approach, was reiterated. In view of studies conducted by Deloitte, the author contended that the forced ranking method seemed to be inappropriate in contemporary work settings due to the need to exhibit a pattern of evolving skills. The dynamic environment reportedly calls for measuring performance in terms of the ability of employees to manifest creativity, innovativeness and initiating changes. As emphasized, these skills develop over time and should not be measured through the ranking method that is scheduled at a defined time frame.
the organizations that Deloitte has surveyed attested the need to re-evaluated the traditional performance management approach that was currently implemented in their respective work settings. In addition, the assessment of human resources practitioners on the capacity levels of performance management systems indicated that the current approach was deemed weak in improving performance or in driving business value . As such, in conjunction with the dynamic work environment, the impetus for changing performance management approach was rationalized and established. In addition, statistics on organizations in identified countries state readiness versus urgency in applying the proposed evolving approach to performance management. Most organizations in countries such as Japan, Brazil, United Kingdom, and Germany exhibit lack of readiness to apply the new approach .
The new approach to performance management presented a more dynamic method that emphasized more frequent management reviews, as well as coaching and professional development endeavors. Through the recommended approach, various organizations were reported to have signified improvements in productivity and performance of workers. Specifically, Nabaum, Barry and Garr cited actual organizational experiences of Microsoft and Adobe that shifted from the traditional ranking method. The rank and yank approach were deemed to generate unhealth competitions and power struggles at Microsoft . Likewise, for Adobe, the marked improvement in turnover rates had been realized due to the application of the continuous coaching and improvement method.
Overall, the authors recommended ways to slowly shift from the traditional performance evaluation approach to the new method through six strategies. The strategies include: (1) getting senior management involved; (2) using the new performance management approach to build skills; (3) instructing management to present regular performance feedback; (4) simplifying the method through lessening documents; (5) eliminating the link between compensation and scores on performance; and (5) focusing on coaching . Through efforts that are more constructive and evolving, employees are encouraged to exhibit innovativeness and creativity in applying strategies that would actually improve performance and productivity in the long run.
Kwoh, Leslie. "'Rank and Yank' Retains Vocal Fans." 31 January 2012. The Wall Street Journal. http://online.wsj.com/news/articles/SB10001424052970203363504577186970064375222. 21 May 2014.
Nabaum, Alex, et al. "Performance management is broken." 4 March 2014. Deloitte University Press. http://dupress.com/articles/hc-trends-2014-performance-management/. 21 May 2014.