Question 1.Why did Adobe abandon traditional performance reviews?Adobe management was highly agile, had increased collaboration and speed but it was clearly seen to neglect the advance itself for managing as well as leading the people. Adobe Management realized that their previous annual review process was not able to deliver the expected results. The following problems were seen in the traditional performance review:1.With the stack ranking, the employees were seen to feel compelled make sure that they are among the top 15% performed. Due to which every employee aimed to maximize his own personal success, at the expense of the team. This led to decreased team efforts, creating issues for the company. The employees were force fully evaluated their employees in four categories namely: high performer, strong performer, solid performer and low performer. This evaluation took place on the annual basis resulting in increased employee frustration and demotivation.2.The performance reviews were highly infrequent and problematic as they did not help in identifying the issues. The reviews were usually seen to be based on the past performanceand did not focus on future aspects therefore impacting the employee aspects adversely. The review process was dreaded by employees because the feedback was unexpected.3.The performance labels were highly dreaded by the employees and the performance reviews are not even aligned with the organizational realities of the business operations.Therefore the traditional performance review system was seen to have high voluntary attrition after the reviews and was seen to be highly consuming for the managers. The whole performancereview system made the employees feel scared and frustrated as they were not having clue of their performance until that particular time of the year. This way the performance review gave no
opportunity for the employees to improve. With all the employees being rated against their own team member, the organization lacked team management and no employee was able to determinetheir financial worth to the organization. The traditional approach was highly demotivating and frustrating for the employees leading to inclination in the attrition and involuntary departure of the employees. Therefore, Adobe realized that the best way is to abolish forced ranking for determining the compensation for their employees. (Why Adobe Abolished The Annual Performance Review And You Should, Too, 2014).Question 2. What does “stack ranking” for performance reviews refer to? Identify the positive and negative impacts of stack ranking for employees and firms/organizations.Stack Ranking or Forced ranking is a performance review system which ranks its employees against each other. In simple words, the manager is directed towards evaluating the performance of the employees against their own team members rather than in a common measure of evaluation against the standards which are pre-determined. And the results of these type of performance reviews are seen to be highly blunt where the top 15 percent of the performers are rewarded amply and the bottom ones are straightway shown the door (Forbes Welcome, 2016). The organizations are seen to believe that the implementation of the forced ranking procedure will help in differentiating talent and as a tool for stipulating the employees falling under the assigned category. Benefits1.The stack ranking helps in differentiating the productive and unproductive employees. This ranking method helps in preventing the managers to assign average or related rating
across the board. This type of ranking helps to compare the performances of the employees and thereby helps in identifying the high and low performers. 2.With the identification of the high performers, the organization can take proactive measures for retaining their best employees. The organization can organize various programs and workshops for retaining their best talents.3. The stack ranking can easily identify their low performers and thereby provides organization to motivate these employees and increase productivity by monitoring and coaching these employees towards giving better performance. By addressing the low performers, the organization can motivate and engage other employees also (What is Stacked Ranking? Should You Use It?, 2016).Challenges1.The stack system prevents real evaluation of the employees. Certain share of workers are seen to have their rating altered for creating a mere accurate distribution of score leading to suspecting of the whole performance management process in the employee’s eyes. 2.It created an individual culture in the organization promoting individual competitiveness which is directly detrimental to the team dynamics and the essence of team work. This leads to decreased team ethics in the organization and therefore decreased productivity.3.The performance review process is turned into a demotivation among the employee thereby obstructing the cultivation of growth and improvement in the working environment.4.The sharing and coaching is discouraged and the low performers do not get a chance of improvement.
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