Assume that you are part of a task force charged with revising your organizations performance management system. Your organization currently requires supervisors conduct annual performance appraisals for all of their employees. A rating form is completed and signed by both the supervisor and employee after the appraisal interview has been complete. Unfortunately, there has been very little guidance given to supervisors concerning how to conduct these interviews, or concerning what should be done after they have been complete. There seems to be very little consistence across supervisors as to the extent to which they should include goal setting, coaching, and employee development issues in their appraisal interview. Although the stated objectives for appraisals are that they should be linked to the organizations rewards systems, there is no formal means for doing this either.

Your Task: Consider the following topics: annual appraisal ratings, appraisal interviews, feedback, goal setting, coaching, linkages to employees development and linkages to employee rewards. Using as many of these element as you wish, design what you think would be an effective performance management system. If pressed to pick three topic or areas that you think are most important to do well, which topic would you emphasize? Why?