The High Price of Perceived Unfairness: Performance Evaluation Alexa has been with an MNC for 15 years, most recently as an upper mid-level leader in the company’s consumer products division. Alexa took her current post in 2014. That year she led her group to earn Best Retail Operation for the region, going from worst-to-first in a single year. Along with a public award, Alexa received a “Far Exceeds” rating on her annual performance appraisal. Unfortunately, at the time of her next review, Alexa’s group was slightly below its Key Performance Indicators (KPI) targets and so her boss rated her performance as only “Meets Expectations.” It turned out to be a case of poor timing as the group rebounded and by year’s end had once again won Best Retail Operation. For Alexa, the difference between “Meets Expectations” and “Far Exceeds” was important—and tangible. In her company, a rating of Far Exceeds meant the employee had a greater chance of a promotion in the next 12 months. Alexa’s boss apologized for the 2015 rating and said he would make it up to her in the 2016 review. Unfortunately, the damage was done; Alexa interpreted her boss’s decision as unfair, given her history of taking a last place group to first place in less than a year, and then repeating that high performance. Her boss said nothing could be done. The impact of that interpretation was that Alexa went from being highly interested and innovative in her role to being more or less disinterested—just going through the motions. She said, “You rate me as Meets Expectations, and I will meet expectations. Nothing more.” a) Identify the performance appraisal errors in the organization’s appraisal process? b) What could have been done to avoid this situation? Suggest how the company can overcome such issues in future? c) What can be done to help Alexa regain her motivation? d) Suggest 2 best performance evaluation methods to evaluate employees of the organization and justify why?
The High Price of Perceived Unfairness: Performance Evaluation Alexa has been with an MNC for 15 years, most recently as an upper mid-level leader in the company’s consumer products division. Alexa took her current post in 2014. That year she led her group to earn Best Retail Operation for the region, going from worst-to-first in a single year. Along with a public award, Alexa received a “Far Exceeds” rating on her annual performance appraisal. Unfortunately, at the time of her next review, Alexa’s group was slightly below its Key Performance Indicators (KPI) targets and so her boss rated her performance as only “Meets Expectations.” It turned out to be a case of poor timing as the group rebounded and by year’s end had once again won Best Retail Operation. For Alexa, the difference between “Meets Expectations” and “Far Exceeds” was important—and tangible. In her company, a rating of Far Exceeds meant the employee had a greater chance of a promotion in the next 12 months. Alexa’s boss apologized for the 2015 rating and said he would make it up to her in the 2016 review. Unfortunately, the damage was done; Alexa interpreted her boss’s decision as unfair, given her history of taking a last place group to first place in less than a year, and then repeating that high performance. Her boss said nothing could be done. The impact of that interpretation was that Alexa went from being highly interested and innovative in her role to being more or less disinterested—just going through the motions. She said, “You rate me as Meets Expectations, and I will meet expectations. Nothing more.” a) Identify the performance appraisal errors in the organization’s appraisal process? b) What could have been done to avoid this situation? Suggest how the company can overcome such issues in future? c) What can be done to help Alexa regain her motivation? d) Suggest 2 best performance evaluation methods to evaluate employees of the organization and justify why?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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The High Price of Perceived Unfairness: Performance Evaluation
Alexa has been with an MNC for 15 years, most recently as an upper mid-level leader in the company’s consumer products division. Alexa took her current post in 2014. That year she led her group to earn Best Retail Operation for the region, going from worst-to-first in a single year. Along with a public award, Alexa received a “Far Exceeds” rating on her annual performance appraisal. Unfortunately, at the time of her next review, Alexa’s group was slightly below its Key Performance Indicators (KPI) targets and so her boss rated her performance as only “Meets Expectations.” It turned out to be a case of poor timing as the group rebounded and by year’s end had once again won Best Retail Operation.
For Alexa, the difference between “Meets Expectations” and “Far Exceeds” was important—and tangible. In her company, a rating of Far Exceeds meant the employee had a greater chance of a promotion in the next 12 months. Alexa’s boss apologized for the 2015 rating and said he would make it up to her in the 2016 review. Unfortunately, the damage was done; Alexa interpreted her boss’s decision as unfair, given her history of taking a last place group to first place in less than a year, and then repeating that high performance. Her boss said nothing could be done. The impact of that interpretation was that Alexa went from being highly interested and innovative in her role to being more or less disinterested—just going through the motions. She said, “You rate me as Meets Expectations, and I will meet expectations. Nothing more.”
a) Identify the performance appraisal errors in the organization’s appraisal process?
b) What could have been done to avoid this situation? Suggest how the company can overcome such issues in future?
c) What can be done to help Alexa regain her motivation?
d) Suggest 2 best performance evaluation methods to evaluate employees of the organization and justify why?
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