October 15, 2009

Compensation and Performance

Posted in Uncategorized at 5:22 am by ctennert

Get rid of the performance review!  At Arrow, Kaufman is on a mission to have the performance review work for his company, but he will only accept the process if he is satisfied with the results.  I cannot believe he even went as far as send initial results from performance reviews back to his managers because his employees were scoring too high.  Maybe he just has good employees, did he ever think of that?  No, he was hell-bent on scoring people lower than maybe they deserved, just so he could inspire them to work harder.  In my eyes, this would inspire me to find a job where I was more appreciated.  Even if a certain employee was doing a great job, he or she may score low on their evaluation from their manager by Kaufman’s instructions.

This system causes turmoil with both employees and managers alike.  The one good idea Kaufman had was his college-recruitment plan.  I have heard of companies being inclined to hire employees straight out of college so they can mold them into employees they want them to be.  They can also pay them a lot less than seasoned pros.  I do agree with his decision to not try and match competitor’s offers when trying to lure the college grads away from Arrow.  However, he later says that this was a mistake because the employees that stayed with the company long-term ended up being very loyal, obviously, and became managers, etc.

I agree that the biggest problem with performance reviews is usually the wording.  It is so general, and subjective.  Kaufman is trying to put a performance system in place that will tell managers how to rate their employees by setting performance review goals, yes, REVIEW goals, for the managers to follow.  They had to follow a certain percentage allowed to give employees good or bad scores.  He wanted to see more 1’s and 2’s in reviews that went to 5.  I would feel pretty worthless if I got a 1 on that system.  I think Kaufman is putting entirely too much time and effort into a system that will eventually backfire on him.

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