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Case Analysis About Performance Management at Network Solutions Inc

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Question Description

Each question must be answered with equal word count. Overall total should be 1500 words or more. Please make sure it is answered in apa format and sources mustbe cited with no less than four scholarly sources.

Case Study Analysis: Read Case Study Network Solutions 1-2 in your text.

1.Based on the systems described in Network Solutions what will be the disadvantages and negative outcomes from implementing this PM system and why?

2.Overall what is the overlap between the Network Solutions and the ideal PM system? Describe the gap? Is there an ideal or perfect PM system? What is the goal of a PM system?

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G A T E S , D E A N D R A 1 1 2 3 T S Third Edition Performance Management Herman Aguinis Kelley School of Business Indiana University G A T E S , D E A N D R A 1 1 2 3 T Boston Columbus Indianapolis New York Amsterdam Cape Town Dubai SLondon Madrid Delhi Mexico City Sao Paulo Sydney San Francisco Upper Saddle River Milan Munich Paris Montreal Toronto Hong Kong Seoul Singapore Taipei Tokyo Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc. Editorial Director: Sally Yagan Acquisitions Editor: Brian Mickelson Director of Editorial Services: Ashley Santora Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Ian Gold Editorial Project Manager: Sarah Holle Production Project Manager: Clara Bartunek Creative Director: Jayne Conte Cover Designer: Suzanne Behnke Cover Art: Fotolia: Teamwork © Les Cunliffe Full-Service Project Management: Kiruthiga Anand, Integra Software Services Pvt. Ltd. Printer/Binder: Courier Companies, Inc. Cover Printer: Lehigh /Phoenix - Hagerstown Text Font: 10/12 Palatino G A Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this T text. textbook appear on the appropriate page within E Copyright © 2013, 2009, 2007 by Pearson Education, Inc., publishing as Prentice Hall. All rights reserved. SThis publication is protected by Copyright, and permission Manufactured in the United States of America. should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or , transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. D E Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appearA in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. N Library of Congress Cataloging-in-Publication D Data R Aguinis, Herman Performance management / Herman Aguinis. — 3rd ed. A p. cm. ISBN-13: 978-0-13-255638-5 (alk. paper) ISBN-10: 0-13-255638-3 (alk. paper) 1. Employees—Rating of. 2. Performance—Management. I. Title. HF5549.5.R3A38 2013 658.3'125—dc23 2011037274 10 9 8 7 6 5 4 3 2 1 1 1 2 3 T S ISBN 10: 0-13-255638-3 ISBN 13: 978-0-13-255638-5 Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc. CONTENTS Preface viii Acknowledgments xiii Dedication xiv About the Author xiv PART I Strategic and General Considerations 1 Chapter 1 Performance Management and Reward Systems in Context 1.1 1.2 1.3 1.4 1 Definition of Performance Management (PM) 2 The Performance Management Contribution 4 Disadvantages/Dangers of Poorly Implemented PM Systems 8 Definition of Reward Systems 10 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.4.6 1.4.7 1.4.8 Base PayG 10 A Adjustments and Contingent Pay 11 Cost-of-Living Short-Term T Incentives 11 Long-Term Incentives 11 Income E Protection 12 Work/Life SFocus 13 Allowances 13 , Relational Returns 13 1.5 Aims and Role of PM Systems 14 1.5.1 1.5.2 1.5.3 1.5.4 1.5.5 1.5.6 StrategicDPurpose 15 Administrative Purpose 16 E Informational Purpose 16 A Developmental Purpose 16 Organizational N Maintenance Purpose 16 Documentational Purpose 17 D 1.6 Characteristics of an Ideal PM System 18 R 1.7 Integration with Other Human Resources and Development Activities 23 A 1.8 Performance Management Around the World 24 왘 CASE STUDY 1-1: Reality Check: Ideal Versus Actual Performance Management1System 28 왘 CASE STUDY 1-2: Performance Management at Network Solutions, Inc. 31 1 왘 CASE STUDY 1-3: Distinguishing Performance Management Systems from Performance2 Appraisal Systems 32 Chapter 2 Performance Management Process 3 37 2.1 Prerequisites 38 T 2.2 Performance Planning 46 2.2.1 Results S46 2.2.2 Behaviors 46 2.2.3 Development Plan 47 Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc. iii iv Contents 2.3 2.4 2.5 2.6 Performance Execution 48 Performance Assessment 49 Performance Review 50 Performance Renewal and Recontracting 52 왘 CASE STUDY 2-1: Job Analysis Exercise 55 왘 CASE STUDY 2-2: Disrupted Links in the Performance Management Process at "Omega, Inc." 55 왘 CASE STUDY 2-3: Performance Management at the University of Ghana 56 Chapter 3 Performance Management and Strategic Planning 59 3.1 Definition and Purposes of Strategic Planning 60 3.2 Process of Linking Performance Management to the Strategic Plan 61 3.2.1 3.2.2 3.2.3 3.2.4 Strategic Planning 65 Developing Strategic Plans at the Unit Level 74 Job Descriptions 76 G Individual and Team Performance 77 A 3.3 Building Support 79 T 3-1: Evaluating Vision and Mission 왘 CASE STUDY Statements Eat Pepsico 82 왘 CASE STUDY 3-2: Dilbert's Mission Statement Generator 83 S 3-3: Linking Individual with Unit and Organizational 왘 CASE STUDY Priorities 84 , 왘 CASE STUDY 3-4: Linking Performance Management to Strategy at Procter & Gamble 84 D 87 E Defining Performance and Choosing a Measurement Approach 4.1 Defining A Performance 88 4.2 Determinants N of Performance 89 4.2.1 Implications for Addressing Performance Problems 90 D 4.2.2 Factors Influencing Determinants of Performance 91 R Dimensions 91 4.3 Performance A to Measuring Performance 95 4.4 Approaches PART II System Implementation Chapter 4 87 4.4.1 Behavior Approach 95 4.4.2 Results Approach 96 1 4.4.3 Trait Approach 99 왘 CASE STUDY 1 4-1: Diagnosing the Causes of Poor Performance 101 왘 CASE STUDY 4-2: Differentiating Task from Contextual Performance 102 2 4-3: Choosing a Performance Measurement Approach at 왘 CASE STUDY Paychex, 3 Inc. 102 왘 CASE STUDY 4-4: Deliberate Practice Makes Perfect 103 T S Measuring Results Chapter 5 Measuring Results and Behaviors 5.1 106 107 5.1.1 Determining Accountabilities 107 Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc. Contents 5.1.2 Determining Objectives 109 5.1.3 Determining Performance Standards 111 5.2 Measuring Behaviors 112 5.2.1 Comparative Systems 115 5.2.2 Absolute Systems 118 왘 CASE STUDY 5-1: Accountabilities, Objectives, and Standards 126 왘 CASE STUDY 5-2: Evaluating Objectives and Standards 126 왘 CASE STUDY 5-3: Measuring Competencies at the Department of Transportation 127 왘 CASE STUDY 5-4: Creating BARS-Based Graphic Rating Scales for Evaluating Business Student Performance in Team Projects 128 Chapter 6 Gathering Performance Information 6.1 6.2 6.3 6.4 6.5 130 Appraisal Forms 131 Characteristics of Appraisal Forms 137 DeterminingGOverall Rating 140 Appraisal Period and Number of Meetings 143 A Who Should Provide Performance Information? 146 6.5.1 6.5.2 6.5.3 6.5.4 6.5.5 6.5.6 T 146 Supervisors Peers 146 E Subordinates 147 S Self 148 , 149 Customers Disagreement Across Sources: Is This a Problem? 149 6.6 A Model of Rater Motivation 150 D 6.7 Preventing Rating Distortion Through Rater Training Programs E153 왘 CASE STUDY 6-1: Evaluating an Appraisal Form Used in Higher Education 157 A 왘 CASE STUDY 6-2: Judgmental and Mechanical Methods of Assigning Overall Performance Score at The Daily Planet 162 N 왘 CASE STUDY 6-3: Minimizing Intentional and Unintentional Rating Errors 164 D 6-4: Minimizing Biases in Performance Evaluation at Expert 왘 CASE STUDY Engineering,R Inc. 165 Chapter 7 Implementing a A Performance Management System 168 7.1 Preparation: Communication, Appeals Process, Training Programs, and Pilot Testing 169 1 7.2 Communication Plan 170 1 7.3 Appeals Process 174 7.4 Training Programs for the Acquisition of Required Skills 176 2 7.4.1 7.4.2 7.4.3 7.4.4 Rater Error Training 177 3 Frame of Reference Training 180 T Observation Training 181 Behavioral Self-Leadership Training 182 S 7.5 Pilot Testing 184 7.6 Ongoing Monitoring and Evaluation 185 Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc. v vi Contents 7.7 Online Implementation 188 왘 CASE STUDY 7-1: Implementing a Performance Management Communication Plan at Accounting, Inc. 192 왘 CASE STUDY 7-2: Implementing an Appeals Process at Accounting, Inc. 192 왘 CASE STUDY 7-3: Evaluation of Performance Management System at Accounting, Inc. 192 왘 CASE STUDY 7-4: Training the Raters at Big Quality Care 193 PART III Employee Development 195 Chapter 8 Performance Management and Employee Development 195 8.1 Personal Developmental Plans 196 8.1.1 Developmental Plan Objectives 197 8.1.2 Content of Developmental Plan 199 8.1.3 Developmental Activities 200 8.2 Direct Supervisor's Role 203 G Feedback Systems 206 8.3 360-Degree 8.3.1 Advantages of 360-Degree Feedback Systems 213 A 8.3.2 Risks of Implementing 360-Degree Feedback Systems 215 T 8.3.3 Characteristics of a Good System 215 E 8-1: Developmental Plan Form at Old Dominion University 220 왘 CASE STUDY 왘 CASE STUDY 8-2: Evaluation of a 360-Degree Feedback System Demo 220 S 왘 CASE STUDY 8-3: Implementation of 360-Degree Feedback System at Ridge Intellectual , 221 왘 CASE STUDY 8-4: Personal Developmental Plan at Brainstorm, Inc.—Part I 221 왘 CASE STUDY 8-5: Personal Developmental Plan at Brainstorm, Inc.— Part II 222 D Chapter 9 Performance E Management Skills 226 9.1 CoachingA 227 9.2 Coaching Styles 233 N 9.3 Coaching Process 233 D 9.3.1 Observation and Documentation of Developmental Behavior and Outcomes 235 R 9.3.2 Giving Feedback 239 A 9.3.3 Disciplinary Process and Termination 245 9.4 Performance Review Meetings 248 왘 왘 왘 왘 CASE STUDY 9-1: Was Robert Eaton a Good Coach? 256 1 CASE STUDY 9-2: What Is Your Coaching Style? 257 CASE STUDY 1 9-3: Preventing Defensiveness 259 CASE STUDY 9-4: Recommendations for Documentation 260 2 3 PART IV Reward Systems, Legal Issues, and Team T Management 263 Performance Chapter 10 Reward Systems S and Legal Issues 263 10.1 Traditional and Contingent Pay Plans 264 10.2 Reasons for Introducing Contingent Pay Plans 265 Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc. Contents 10.3 10.4 10.5 10.6 Possible Problems Associated with Contingent Pay Plans 268 Selecting a Contingent Pay Plan 270 Putting Pay in Context 272 Pay Structures 276 10.6.1 Job Evaluation 277 10.6.2 Broad Banding 279 10.7 Performance Management and the Law 280 10.8 Some Legal Principles Affecting Performance Management 281 10.9 Laws Affecting Performance Management 284 왘 왘 왘 왘 CASE STUDY 10-1: Making the Case for a CP Plan at Architects, Inc. 289 CASE STUDY 10-2: Selecting a CP Plan at Dow AgroSciences 289 CASE STUDY 10-3: Contingency Pay Plan at Altenergy LLC 290 CASE STUDY 10-4: Possible Illegal Discrimination at Tractors, Inc. 291 Chapter 11 Managing TeamG Performance 294 11.1 Definition and A Importance of Teams 295 11.2 Types of Teams and Implications for Performance T Management 296 11.3 Purposes E and Challenges of Team Performance Management S 298 11.4 Including Team Performance in the Performance Management , System 299 11.4.1 11.4.2 11.4.3 11.4.4 11.4.5 11.4.6 Prerequisites 300 Performance D Planning 302 Performance Execution 303 E Performance Assessment 304 A Review 305 Performance Performance N Renewal and Recontracting 306 11.5 Rewarding Team Performance 307 D 11-1: Not All Teams Are Created Equal 309 왘 CASE STUDY 왘 CASE STUDY R 11-2: Team Performance Management at Duke University Health Systems 310 A 11-3: Team-Based Rewards for the State of Georgia 312 왘 CASE STUDY 왘 CASE STUDY 11-4: Team Performance Management at Bose 313 Index 315 1 1 2 3 T S Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc. vii PREFACE AND INTRODUCTION In today's globalized world, it is relatively easy to gain access to the competition's technology and products. Thanks to the Internet and the accompanying high speed of communications, technological and product differentiation is no longer a key competitive advantage in most industries. For example, most banks offer the same types of products (e.g., various types of savings accounts and investment opportunities). If a particular bank decides to offer a new product or service (e.g., online banking), it will not be long until the competitors offer precisely the same product. As noted by James Kelley, performance management project leader at Idaho Power, "technology is a facilitator, but not a guarantor, of effectiveness or efficiency of a company's workforce."1 So, what makes some businesses more successful than others? What is today's key competitive advantage? The answer is people. Organizations with motivated and talented employees offering outstanding service to customers are likely to pull ahead of the competition, even if the products offered are similar to those offered by the competitors. This is a key organizational resource that many label "human capital" and gives organizations an advantage over the competition. Customers want to get theGright answer at the right time, and they want to receive their products or services promptly and accurately. Only having the right human capital can make A these things happen. Only human capital can produce a sustainable competitive advantage. And, performance management systems T are the key tools that can be used to transform people's talent and motivation into a strategic business advantage. Unfortunately, although 96% of human E that performance management is their number 1 concern, resources (HR) professionals report fewer than 12% of HR executivesS and technology managers believe that their organizations have aligned strategic organizational priorities with employee performance.2 , This edition includes the following six important changes. More detailed information on each of these issues is provided in the section titled "Changes in This Edition." • There is an emphasis on the D role of the context within which performance management takes place. E knowledge generated regarding performance management is • This edition emphasizes that essentially multidisciplinary. A • This edition emphasizes the important interplay between science and practice. • This edition describes the N technical aspects of implementing a performance management system in detail and, in addition, it emphasizes the key role that interpersonal dynamics D play in the process. • This new edition includesR new cases in almost every chapter. Taken together, this new edition includes a total of 43 case studies. A new sections. • Each of the chapters includes SOME UNIQUE FEATURES 1 OF THIS BOOK Performance management is a continuous process of identifying, measuring, and developing the 1 performance of individuals and teams and aligning their performance with the strategic goals of 2 the organization. Performance management is critical to small and large, for-profit and not-for-profit, 3 Generating buzz: Idaho Power takes T on performance management to prepare for workforce aging. (2006, June). Power Engineering. Retrieved November 26, 2010 from http://www.powergenworldwide.com/index/ display/articledisplay/258477/articles/power-engineering/volume-110/issue-6/features/generating-buzzS idaho-power-takes-on-performance-management-to-prepare-for-workforce-aging.html 1 2 Workforce performance is top HR priority. (2005). T+D, 59(7), 16. viii Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc. Preface and Introduction domestic and global organizations, and to all industries. In fact, the performance management model and processes described in this book have been used to create systems to manage the performance of college students.3 After all, the performance of an organization depends on the performance of its people, regardless of the organization's size, purpose, and other characteristics. As noted by Siemens CEO Heinrich von Pierer, "whether a company measures its workforce in hundreds or hundreds of thousands, its success relies solely on individual performance." As an example in the not-for-profit sector, the government in England has implemented what is probably the world's biggest performance management system, and, by statutory force, the performance of teachers and "headteachers" (i.e., school principals) is now evaluated systematically. This particular system includes a massive national effort of approximately 18,000 primary schools, 3,500 secondary schools, 1,100 special schools, 500 nursery schools, 23,000 headteachers, 400,000 teachers, and an unspecified number of support staff.4 Unfortunately, few organizations use their existing performance management systems in productive ways. Performance management is usually vilified as an "HR department requirement." In many organizations, performance management means that managers must comply with their HR department's request and fill out tedious, and often useless, evaluation forms. These evaluation forms are often completed only because it is required by the "HR cops." G Unfortunately, the only tangible consequence of the evaluation process is that the manager has to spend time away from his or her "real" job duties. A This book is about the design and implementation of successful performance management systems. In other words, it focuses T on research-based findings and up-to-date applications that help increase an organization's human capital. Performance management is ongoing and cyclical; however, for pedagogical reasons, theEbook needs to follow a linear structure. Because performance observation, evaluation, and improvement are ongoing processes, some concepts and practices S may be introduced early in a cursory manner but receive more detailed treatment in later sections. , and describes the necessary steps to create a top-notch Also, this book focuses on best practices performance management system. As a result of practical constraints and lack of knowledge about system implementation, many organizations cut corners and do not implement systems that follow best practices because of environmental and political issues (e.g., goals of raters may not be D aligned with goals of the organization). Because the way in which systems are implemented in Esystem, the book includes numerous examples from actual practice is often not close to the ideal organizations to illustrate how systems A are implemented given actual situational constraints. N CHANGES IN THIS EDITION D This edition includes important updates and additional information. In preparation for revising R and updating this book, I gathered more than 300 potentially relevant articles and books. About 150 of those were most relevant, and A about 50 of those new sources are now included in this edition. These sources have been published since the second edition of the book went into production. This vast literature demonstrates an increased interest in performance management on the part of both academics and practitioners. 1 This edition includes five important changes throughout the book. First, there is an emphasis 1performance management takes place. Performance manageon the role of the context within which ment does not operate in a vacuum. Rather, it takes place within a particular organizational context, 2 and organizations have a particular...
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Running head: PERFORMANCE MANAGEMENT SYSTEMS

Performance Management Systems
Student's Name
Professor's Name
Course Title
Date

PERFORMANCE MANAGEMENT SYSTEMS
Performance Management Systems
1. Based on the systems described in Network Solutions what will be the disadvantages

and negative outcomes from implementing this PM system and why?
Network solution Incorporated is a global leader in services, software, and hardware
essential to computer networking. Previously, the firm had no measurement system for
performance appraisal, as result personnel did not get any review; there was no appreciation
program in place for rewarding high achiever. So, the organization to improve its capability to
attain the organizational goals, they wanted to install a performance management system. I
anticipate that there would be disadvantages and negative outcome from such a PM system
implementation.
Expensive and Time-Consuming
PM systems are costly and they need a lot of time, patience, and administrative work. The
divisions in the organization where the system impact negatively include finance and
organizational development and human resources department (Ferreira & Otley, 2009).
Performance management requires equipping personnel with adequate knowledge and skills. The
activities include conductive inclusive training, career development and retraining workshops for
every department and staff level (Ferreira & Otley, 2009). The process can be costly and projects
will be lost as personnel is been trained advanced improved skills. The performance of the
employees would be negative because they would consume a lot of time in workshops.
Favoritism

2

PERFORMANCE MANAGEMENT SYSTEMS
Supervisors and managers tend to depend and trust on one worker more than the others.
The particular employee could be the team leader or foreman. He or she is entrusted with the
responsibility of providing an explanation to new roles of duties and changes to other employees.
The action would result in distrust and dissension among the members of the group (Ferreira &
Otley, 2009). Favoritism will cause team fraction and affect the morale and satisfaction of
employees adversely. The attitude would be "why should I even try when the manager would
only trust a certain employee."
Risk of Internal Competition
Under the PM system, the employees would start competing amongst each other for new
roles status, pay, or position. The results could amount to backstabbing and failure among the
members of the team in effective communication and strong perso...

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Case Analysis About Performance Management at Network Solutions Inc

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