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Critically discuss the role of leadership and management in ensuring that Network Solutions’ new performance management system is effective.

Critically discuss the role of leadership and management in ensuring that Network Solutions’ new performance management system is effective.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Critically discuss the role of leadership and management in ensuring that Network Solutions’ new performance management system is effective.

 

26 PART I • Strategic and General Considerations Case Study 1-2 PERFORMANCE MANAGEMENT AT NETWORK SOLUTIONS, INC. Network Solutions, Inc.," is a worldwide leader desired outcomes of the new system included rais- in hardware, software, and services essential to ing the performance level of all employees, identi- computer networking. Until recently. Network fying and retaining top talent, and identifying low Solutions, Inc., used more than 50 different systems performers and improving their performance. to measure performance within the company, many employees did norreceive a review, fewer than 5% of all employees received the lowest category of rating, and there was no recognition program in place to reward high achievers Overall, it was rec- ognized that performance problems were not being ment system was the future of Network Solutions addressed, and tough pressure from competitors and by encouraging all senior leaders to ensure was increasing tite costs of managing human per- formance ineffectively. In addition, quality initia- tives were driving change in several areas of the encouraged senior leaders to use the system with business, and Network Solutions decided that these initiatives should also apply to "people quality." Finally, Network Solutions wanted to improve its ability to meet its organizational goals and realized that one way of doing this would be to ensure that they were linked to each employee's goals Given this situation, in 2001 Network Solutions' CEO announced that he wanted to Network Solutions also wanted the performance expectations for all employees to be clear. Before implementing the program, the design team received the support of senior leadership by communicating that the performance manage- that those reporting directly to them understood the process and also accepted it. In addition, they all of their direct subordinates and to demand and utilize output from the new system. Next, the design team encouraged the senior leaders to stop the development and use of any other perfor- mance management system and explained the need for standardization of performance manage- ment across all divisions. Finally, the team asked senior leaders to promote the new program by implement a forced distribution performance involving employees in training of talent manage- management system in which a set percentage ment and by assessing any needs in their divisions of employees was classified in each of several categories (eg., a rating of 1 to the top 20% of per- formers; a rating of 2 to the middle 70% of per- agement cycle consisted of the following process formers; and a rating of 3 to the bottom 10% of performers). A global cross-divisional HR team was put in place to design and implement the new system. The first task for the design team was to build a business case of the new system by showing that if organizational strategy was carried down to team contributions and team contributions were translated into individual goals, then business goals would be met. Initially the program was rolled out as a year-round people management system that individual contributors, including access to all would raise the bar on performance management necessary forms In addition to the training avail- at Network Solutions by aligning individual per- formance objectives with organizational goals by took place before each phase of the program was focusing on the development of all employees. The begun. that would not be addressed by the new system. The Network Solutions global performance man- 1. Goal cascading and team building 2. Performance planning 3. Development planning 4. Ongoing discussions and updates between. managers and employees 5. Annual performance summary Training resources were made available on Network Solutions' intranet for managers and able on the intranet, 1- to 2-hour conference calls "This ce study is based, in part, on actual information. Network Solutions, Inc., is a pseudonym which is
Transcribed Image Text:26 PART I • Strategic and General Considerations Case Study 1-2 PERFORMANCE MANAGEMENT AT NETWORK SOLUTIONS, INC. Network Solutions, Inc.," is a worldwide leader desired outcomes of the new system included rais- in hardware, software, and services essential to ing the performance level of all employees, identi- computer networking. Until recently. Network fying and retaining top talent, and identifying low Solutions, Inc., used more than 50 different systems performers and improving their performance. to measure performance within the company, many employees did norreceive a review, fewer than 5% of all employees received the lowest category of rating, and there was no recognition program in place to reward high achievers Overall, it was rec- ognized that performance problems were not being ment system was the future of Network Solutions addressed, and tough pressure from competitors and by encouraging all senior leaders to ensure was increasing tite costs of managing human per- formance ineffectively. In addition, quality initia- tives were driving change in several areas of the encouraged senior leaders to use the system with business, and Network Solutions decided that these initiatives should also apply to "people quality." Finally, Network Solutions wanted to improve its ability to meet its organizational goals and realized that one way of doing this would be to ensure that they were linked to each employee's goals Given this situation, in 2001 Network Solutions' CEO announced that he wanted to Network Solutions also wanted the performance expectations for all employees to be clear. Before implementing the program, the design team received the support of senior leadership by communicating that the performance manage- that those reporting directly to them understood the process and also accepted it. In addition, they all of their direct subordinates and to demand and utilize output from the new system. Next, the design team encouraged the senior leaders to stop the development and use of any other perfor- mance management system and explained the need for standardization of performance manage- ment across all divisions. Finally, the team asked senior leaders to promote the new program by implement a forced distribution performance involving employees in training of talent manage- management system in which a set percentage ment and by assessing any needs in their divisions of employees was classified in each of several categories (eg., a rating of 1 to the top 20% of per- formers; a rating of 2 to the middle 70% of per- agement cycle consisted of the following process formers; and a rating of 3 to the bottom 10% of performers). A global cross-divisional HR team was put in place to design and implement the new system. The first task for the design team was to build a business case of the new system by showing that if organizational strategy was carried down to team contributions and team contributions were translated into individual goals, then business goals would be met. Initially the program was rolled out as a year-round people management system that individual contributors, including access to all would raise the bar on performance management necessary forms In addition to the training avail- at Network Solutions by aligning individual per- formance objectives with organizational goals by took place before each phase of the program was focusing on the development of all employees. The begun. that would not be addressed by the new system. The Network Solutions global performance man- 1. Goal cascading and team building 2. Performance planning 3. Development planning 4. Ongoing discussions and updates between. managers and employees 5. Annual performance summary Training resources were made available on Network Solutions' intranet for managers and able on the intranet, 1- to 2-hour conference calls "This ce study is based, in part, on actual information. Network Solutions, Inc., is a pseudonym which is
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