Assume that you are part of a task force charged with revising your organization’s performance management system. Your organization currently requires that supervisors conduct annual performance appraisals for all of their employees. A rating form is completed and signed by both the supervisor and employee after the appraisal interview has been completed. Unfortunately, there has been very little guidance given to supervisors concerning how to conduct these interviews, or concerning what should be done after they have been completed. There seems to be very little consistency across supervisors as to the extent to which they should include goal setting, coaching, and employee development issues in their appraisal interviews. Although the stated objectives for appraisals are that they should be linked to the organization’s rewards system, there is no formal means for doing this either.
Your task: Consider the following topics: annual ratings, appraisal interviews, feedback, goal setting, coaching, linkages to employee development, and linkages to organizational rewards. Using as many of these elements as you wish, design what you think would be an effective performance management system. If pressed to pick three topics or areas that you think are most important to do well, which topics would you emphasize? Why?