BSBMGT502: Performance Management at Adobe Systems - Report

This report examines the performance management practices at Adobe Systems, a multinational computer software company. It details the company's evolution from a traditional annual performance review system to a more dynamic, subscription-based model. The report highlights the implementation of the 'Check-in' system, which involves continuous performance management practices to align with the rapid changes in the IT and software industry. The analysis covers key factors like feedback collection from customers and management, data analysis to measure employee performance against set metrics, and appraisal processes that provide comments and results in one-on-one sessions. The report emphasizes the importance of adapting performance management strategies to the evolving needs of the business and the benefits of a flexible approach. The report also references the relevant literature, highlighting how Adobe Systems' approach to performance management has changed to meet the demands of the current market and maintain business viability.

1
Running head: PERFORMANCE MANAGEMENT
Performance management
Name
Course
Date

2
PERFORMANCE MANAGEMENT
Adobe systems is a multinational computer software company based in California, USA.
The company has been in the computer software market since 1982 and is a global leader in the
computer software industry. Some of the products of the company include text reading and
formatting software as well as a number of online and native multimedia tools. Since its
inception, the company has always been a one-time software vendor for millions of customers
until recently when the company decided to shift to a subscription-based, cloud-based service
with multiple annual software releases. With the revised model, it became inevitable for the
company to review its performance appraisal policies to match up with the new corporate
landscape. I chose this corporation as a result of the dramatic shift from traditional performance
analysis practice they accomplished while retaining the beneficial aspects of the former.
Performance management is an intricate process whose ultimate goal is to optimize the
output of each and every particular employee in order to subsequently maximize their
productivity ergo the company’s revenue (Van Dooren et al., 2015). As I uncovered, the process
of performance management continuously involves various measures and practices undertaken to
assure that the performance of the employees matches up with the objectives of the business.
Traditionally, performance management is undertaken during yearly performance reviews where
each employee’s annual performance is analyzed against a particular performance threshold set
by the employer. The threshold could be the number of sales made by the employee, the amount
of revenue raked in by the employee or any metric that an employer finds suitable for measuring
the performance of their employees (Mueller-Hanson & Pulakos, 2015). Subsequently, I realized
that this method was slow with regards to the dynamic nature of software technology that
evolves multiple times a year.

3
PERFORMANCE MANAGEMENT
Prior to the change in the mode of operation, Adobe systems would operate through one-
time annual sale of software. This involved release of software to the public with updates sent
only once a year to customers of Adobe products. With this system, performance analysis can
only be conducted one a year and only after the release of a product. However, the company then
sought to revise this model by instead adopting a subscription-based system for sales and
distribution of their products. Essentially, the company sought to start a subscription system for
all customers of their products that involves continuous updates to the products via the cloud at a
particular subscription fee. As a result, and in my understanding, there needed a more dynamic
performance analysis system to keep up with the needs of the software market.
As would be expected, the first step in this process was to scrap yearly performance
reviews which then proved maladaptive to the company forcing the company to institute a
different kind of performance analysis strategy. The new Check-in system was thus selected by
the company as a suitable performance analysis strategy (Buckingham & Goodall, 2015, pp. 43),
and for a number of reasons discussed below.
In order to conduct a successful performance analysis process, several important factors
need to be considered. Such factors, as I uncovered, involve some key aspects of human resource
performance and include the feedback from various employees and stakeholders, feedback
analysis as well as appraisal or reprimand depending on the results of the analysis process
(Parmenter, 2015).
Feedback collection
This process involves collection of necessary information that indicates the performance
of an employee. The information may include customer feedback or comments from

4
PERFORMANCE MANAGEMENT
management that are made and recorded form time to time (Mone & London, 2018, pp. 91). This
information is used to assess the efficacy of an employee in the task assigned to them as
perceived by the recipients of the service. The information is collected and the next stage of the
process ensues.
Analysis
At this stage, the performance of an employee is ascertained through analysis of the
feedback collected over the duration of the review period as well as any other relevant data such
as performance values for each employee in areas such as sales, mileage etc. this data is checked
against the expected performance values of each employee to ascertain their performance (Cardy
& Leonard, 2014, pp. 126). For example, at Adobe, a programmer’s performance would be
measured by the number of functional modules presented by the worker to the supervisor or the
amount of revenue raked in by the employee.
Appraisal
Once performance is ascertained, the management of a company then goes ahead to
indicate performance comments and results on the review documents of each of the employees
(Carter, Day & Klein, 2002, pp. 108). The review documents are accompanied by any relevant
feedback from other employees or customers and helps establish the vindication for the results
issued. The results are further elaborated to the employees in a one-on-one manner to truly
inculcate the lessons of the process within the said employees.
The check-in system implemented by adobe involves continuous performance
management practices that break away from traditional annual performance assessment methods
(Cappelli & Travis, 2016, pp. 62). This is as a result of the dynamic nature of the IT and software

5
PERFORMANCE MANAGEMENT
industry that requires multiple annual performance analysis sessions in order to retain the
viability of the company’s business model. In my opinion, the move should be welcome and
beneficial to the performance management efforts in the company as well as other daily business
operations.

6
PERFORMANCE MANAGEMENT
References
Buckingham, M., & Goodall, A. (2015). Reinventing performance management. Harvard
Business Review, 93(4), 40-50.
Cappelli, P., & Tavis, A. (2016). The performance management revolution. Harvard Business
Review, 94(10), 58-67.
Cardy, R., & Leonard, B. (2014). Performance Management: Concepts, Skills and Exercises:
Concepts, Skills and Exercises 15(3), 96-151. Routledge.
Carter, N., Day, P., & Klein, R. (2002). How organisations measure success: The use of
performance indicators in government, 25(2). 108. London, England. Routledge.
Mone, E. M., & London, M. (2018). Employee engagement through effective performance
management: A practical guide for managers 55(2), 88-96. Routledge.
Mueller-Hanson, R. A., & Pulakos, E. D. (2015). Putting the “performance” back in performance
management. SHRM–SIOP Science of HR White Paper Series, 91(1). New York.
Parmenter, D. (2015). Key performance indicators: developing, implementing, and using
winning KPIs. John Wiley & Sons.
Van Dooren, W., Bouckaert, G., & Halligan, J. (2015). Performance management in the public
sector, 14(2). Routledge.