Xerox Revamp Appraisal

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qoebja1988

Business Finance

HRM 6698

Troy University

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Please answer all four questions on pg.331.

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APTER 10: STRATEGIES FOR EFFECTIVE PERFORMANCE APPRAISAL SYSTEMS 329 7. Training programs should be implemented to (a) help raters avoid common perceptual errors in evaluations and (b) help raters with their performance r eview/feedback skills. The link between the performance appraisal system and the organization's 8. long-term strategic plans should be clearly defined. 9. In general, a successful performance appraisal system should be built around clear objectives, have the support of both management and employees, be flexible enough to adapt to organizational changes, and foster open discussions between supervisors and employees. 0. The validity of the performance appraisal system should be examined at regular intervals. Questions for Review 1. What are some of the major strategic choices that organizations should make prior to implementing a performance appraisal system? 2. Why is a job analysis important to the performance appraisal system design? 3. What are the differences between the behavioral methods and the personnel comparison methods of performance appraisal? 6. How does the halo effect differ from stereotyping? 7. What are some ways that an evaluator can avoid recency effects? 8. How can evaluators avoid leniency, strictness, and central tendency errors in ratings? 9. What are some characteristics of an unsuccessful versus a successful performance appraisal system? 4. What is the purpose of a performance appraisal? 5. What is the relationship between the performance appraisal system and the strategy of the organization? Case: Xerox Revamps Performance Appraisal System 47 Kerox Corporation was faced with a problem—its performance appraisal system was not working. Rather than motivating the employees, its system was leaving hem discouraged and disgruntled. Xerox recognized this problem and developed a iew system to remedy the situation. rHE OLD SYSTEM [he original system used by Xerox encompassed seven main principles: 1. The appraisal occurred once a year. 2. It required employees to document their accomplishments. 3. The manager would assess these accomplishments in writing and assign numerical ratings. 4. The appraisal included a summary written appraisal and a rating from 1 (unsatisfactory) to 5 (exceptional). 5. The ratings were on a forced distribution, controlled at the 3 level or below. 6. Merit increases were tied to the summary rating level. pauttuiapp SEM as!ri ;paw matp M04 poolsiapun Aay pus luamad omi-Aluanas mrj irs!eiddr matt ay panpsuop luappd Jnoj-A4OH • satippatqo dno.12 opom poolsiapun pnaq miaand auo-Ampg • • :smogoj se alaM slinsaN •tualsAs lus!riddr At► 2u alp jo uopuluatuaidun ay pip iraA 01.11 papnpuop SEM Aaions dn-mogoj •apm! 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Woad Jo; sas!EJ ►iaTAT -irs!riddr may uo JO E P nya paAppai saaAoidtua sij jo %s-6 Try papodai `1.10ISTATp 13T(103 uiUw SX0.13X `(9gN) dnoi9 ssau!sng ppidui2oida21 ay ‘lpuj uj -uoporjspussno jo aPmtos iotruz E sr saaAoidula Aq pamp SUM pug sSupri alqrmnbaut ui palinsa.t tualsAs - UOTSS2S aptns U Ui paunopo sres!riddr apuruuojnd pur uoputumoju! asraipu! miaw A11A113110021d 338110S32I miwnti ONIZIWIXVIN 2103 S31931WI1S :£ ltIVd 0££ PTER 10: STRATEGIES FOR EFFECTIVE PERFORMANCE APPRAISAL SYSTEMS 331 Seventy percent met their personal and work objectives Seventy-seven percent considered the system a step in the right direction In conclusion, it can be clearly seen that the new system is a vast improvement er the previous one Despite the fact that some of the philosophies, such as the use f self-appraisals, run counter to conventional management practices, the results peak for themselves. In May 2008, Xerox was awarded one of the prestigious National nvironmental Performance Track awards by the Environmental Protection Agency. "al-daily due to an improved performance evaluation system for employees and ,inanagers, Xerox reached out to local communities, worked with state agencies, and 4emonstrated environmental stewardship at the corporate level. The Performance Track is the EPA's most comprehensive environmental leadership program. Xerox made a commitment to go beyond its legal requirement and through commitment, performance communication, and employee performance feedback and awards, they were able to earn this top honor. QUESTIONS FOR DISCUSSION 1. What type of performance appraisal is central to the new system at Xerox? Which, if any, of the criteria for a successful appraisal system does this new system have? 2. Given the emphasis on employee development, what implications does this have for hiring and promotions? 3. How do you think management feels about the new performance appraisal system? Why? 4. Are there any potential negative aspects of the new performance appraisal system? Additional Readings Banker, R. D., S. Lee, G. Potter, and D. Srinivasan. "Contextual Analysis of Performance Impacts of Outcome-Based Incentive Compensation." Academy of Management Journal 39 (1996), pp. 920-948. Bartel, A. P. "Productivity Gains from the Implementation of Employee Training Programs." Industrial Relations 33 (1994), pp. 411-425. Becker, B. E., and M. A. Huselid. "Strategic Human Resources Management: Where Do We Go From Here?" Journal of Management 32 (2006), pp. 898-925. Cho, S., R. H. Woods, S. Jang, and M. Erdem. "Measuring the Impact of Human Resource Management Practices on Hospitality Firms' Performances." Hospitality Management 25 (2006), pp. 262-277. Collins, C. J., and K. G. Smith. "Knowledge Exchange and Combination: The Role of Human Resource Practices in the Performance of High-Technology Firms." Academy of Management Journal 49 (2006), pp. 544-560. Combs, J., Y. Liu, A. T. Hall, and D. Ketchen. "How Much Do High-Performance Work Practices Matter? A Meta-Analysis of Their Effects on Organizational Performance." Personnel Psychology 59 (2006), pp. 501-528. Evans, W. R., and W. D. Davis. "High-Performance Work Systems and Organizational Performance: The Mediating Role of Internal Structure." Journal of Management 31 (2005), pp. 758-775. Felin, T., W. S. Hesterly. "The Knowledge-Based View, Nested Heterogeneity, and New Value Creation: Philosophical Considerations on the Locus of Knowledge." Academy of Management Journal 32 (2007), pp. 195-218. Grandey, A. A., G. M. Fisk, A. S. Mattila, K. J. Jansen, and L. A. Sideman. "Is 'Service with a Smile' Enough? Authenticity of Positive Displays during Service Encounters." Organizational Behavior and Human Decision Processes 96 (2005), pp. 38-55. Hatch, N. W., and J. H. Dyer. "Human Capital and Learning as a Source of Sustainable Competitive Advantage." Strategic Management Journal 25 (2004), pp. 1155-1178. Hui, L. "Do It Right This Time: The Role of Employee Service Recovery Performance, Perceived Justice, and Customer Loyalty after Service Failures." Journal of Applied Psychology 92 (2007), pp. 475-489.
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The improved appraisal system is better in many ways; it has three stages rather than onestep process of the previous system that ensure the validity of appraising employees’ performance.
Moreover, it clearly outlines objectives and goals set by an employe...


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