PERFOMANCE MANAGEMENT

Narrator – Effective performance management is essential to businesses. It is

managed in the organisation on the basis of
1. Assessing the employee’s performance.
2. To develop the employee’s performance
keeping this in mind let’s get started with our skit based on the case study given to
us.

Scene – 1
BANNER OF NETWORK SOLUTIONS INC. (on white board)
[employee 1 and 2 walk out of HR cabin and employee 3 and 4 are discussing]
Employee 1 - Even after meeting all the targets how could he not grade me well
{sad}
Employee 2 – that’s actually sad for you. Look at me, no targets with enough paid
leaves still I received the same grading as you. {sarcastic}
Employee 3 – were they just called for grading {winning}
Employee 4 – Maybe yes! {unaware}
Employee 3 – I guess we haven’t received it from last 6 or more months.
Employee 4 – Yeah, its damn true.
(all leave)
Narrator: Network solution Inc is a worldwide leader in hardware, software and
service essential in computer networking. Here around 50+ different systems are
used to measure performance within the company. But as you can see the
employee were not rewarded for high performance and they did not even receive
any review either.
 Scene - 2
[ HR team personnel enters in CEO cabin and…]
CEO: As you know the quality initiatives are coming up with changes in different
areas of business and as we are also facing some standardization issues in our
performance management system I want you to improve our organizational goals
and connect it to each employee goals. So, for this I want force distribution method
to be implemented.
(HR agrees and shakes hand with CEO)
Narrator: Because of performance recognition issue with tough pressure from the
competitors increased costs of not managing human performance effectively. Six
sigma’s change drive pushed the CEO of network solution to bring improvement.
In 2001 it was announced.
 Scene – 3
[Senior manager enters in HR’s cabin]
HR: As per the CEO’s order I am told to design and implement new system. I’ll be
building a business case of this by showing the hierarchy,

Organisational Strategy

Team Contributions

Individual Goal

Business Goals

so for the development of employees we will roll out this system for a year and see
to it that individual performance goals and organizational goals are In Sync. this
will help us identify top and low talents then also improve each employee’s
performance.
[Senior manager listens an agrees]
Narrator: Network Solutions also wanted their performance expectations for all the
employees to be clear. This shows clarity for this. They received support from
senior leadership.
HR: we need to use this system with all direct reports and utilize the output from
this too.
So Firstly, we have to stop the development and use of any other performance
management system and strictly focus on forced distribution method in all
divisions.
Scene - 4

Narrator:
[Now senior manager would call employees and would order them to carry
forward the task]
So now let’s understand their managers and employees training and responsibilities
in this company.

[senior manager employee 1 and employee 2 on stage]

Narrator: training resources available on network solution intranet for managers
and individuals’ contributors. These training keeps 1 to 2 hours conference calls
before each phase of the programme. These training programme wee focusing on
the development over one-year new system’s responsibilities for managers and
employees.
Senior managers: I am responsible for scheduling meetings, guiding employees for
meetings and finalizing all developmental plans.
Employee 1: we are responsible for documenting all the developmental plans.
Senior Manager: We are responsible for preparing for the meetings filling out the
development planning preparation forms and attending the meetings.

Narrator: now our senior manager would explain us the rating method adopted by
the company.
 Scene – 5

Senior Manager: According to the new systems of rating employees are given
ratings of a 1,2 and 3 for last 10% in the performance distribution. Here top 20%
employees would get highest hike, stock options and bonuses.
Whereas, middle 70% of employees would receive average to high salary increase,
stock options and bonuses.
But the last employees receiving a 3 would be given a specified time to improve
their performance. If performance does improve then they would be released from
the plan but won’t be eligible for stock options or salary increases.
And if performance doesn’t improve then they can either take a severance package
and leave the company or they can start and leave on performance plan that more
rigorous expectations and timelines than the original. If still there is no sign of
improvement then the employee would be terminated without severance package.