I like how the CEO took a different approach than most when it comes to performance reviews. After reviewing his managers scores of the employees in the company he came to the conclusion the scores were inflated. Expecting someone in the company to have something he/she can improve on isn’t too unreasonable, right? If the scores were truly correct the company would have reached its growth potential and would soon find it hard to compete. The management needs to be willing to “differentiate among their employees,” and by scoring each individual as excellent they appear to be unable tell the employees you need to improve.
I am not fan of employee performance review because for the most part you are being judged by a superior who really doesn’t have idea of what you are doing. The short amount of time that you are in the spotlight in front of your boss isn’t enough time to evaluate and really it should be how you operate outside of his/her presence which really matters. Majority of your interactions are with other co-workers and clients. At my place of work we have an EPR in place and it’s great if you are getting a raise but really it doesn’t matter what your boss has decided. You work an entire year and are evaluated based on a few interactions which you have been judged upon good or poor performance. The dollar amount of your pay increase has already been decided and it pretty much all depends on how much the supervisor likes or dislikes the individual.
The employees for this company make there money of sales which is a performance incentive. The system is broken which pushes individuals to lookout for themselves and undercut each other in-order to make a living. The CEO has the right idea about having a strategy but more importantly the strategy needs to be executed. They tried to fix the broken system when they implemented the college recruiting program. The problem was the clash between the existing employees and the new employees which eventually caused the system to fail. Practically all of the college grads jumped ship and moved onto someone who would show them the money. The few that stayed turned out to be Stars. This is just another example of how if you don’t constantly modify the system to make sure it is working, it will fail.