Questions If you were Stan (the manager), what would you do during this appraisal? If you were the HR manager of this company, how would you make sure that the how part of the job was evaluated without frustrating employees like Jim?

Read this case study:

The Abominable Performance Review Jim, a top-performing salesman for his company, looked across the table at his boss, Stan, who had flown into town this beautiful spring day to go over Jims annual performance review. The two men sat in a booth in a small diner just down the street from the offices of one of Jims best customers. As Stan talked on his cellular phone to another sales rep, Jim thought about his past year, one of his best yet. His sales-closing percentage was up, and his sales were at 120% of goal. He was clearly outperforming his competitors -- he had taken several accounts away from his competition while growing his existing client base. Overall, Jim felt very good about his performance and was quietly basking in his accomplishments. Jim figured this would be a short discussion. Stan would sign off on his full bonus, they would get on with his calls for the day, and Jim would take Stan back to the airport. All Jim could recall was an e-mail stating that the company was going to use a new performance management system. He remembered getting information and looking at some statements about organizational skills, territory management, etc. But thats about it. Besides, he thought, what really matters in selling is selling. I really dont remember much about it, Stan. Fill me in, Jim said. Well, Stan said, we decided that if our salespeople would follow some specific steps to organize and manage their territories and report the information back to the home office, wed have a more productive year. So these items were created, and I have to rate you on each of them to the best of my ability. We just tally up the overall rating, and thats what determines 75% of your bonus. Jim paused for a moment, then asked, You mean most of my bonus has nothing to do with my sales performance this year? Nope, Stan replied. Its based mostly on this process. Now Jim really began to pay attention. Okay, Stan explained, under the item Organizes his time for maximum impact, I rated you a 3 out of 5. Stan looked sheepishly at Jim. Im supposed to stop after each of these and ask for your input. Any comments? Jim was getting anxious. He asked, A 3? Why a 3? Well, Stan said, because a 3 means youre average, and I figured you were average based on the way you described how you track your sales calls. What have I told you I do, Stan? Jim asked. Stan recalled, Well, you said you just keep basic notes, not more detailed notes like a) the time of the call, b) the main topic of conversation, c) the next steps from the call, and d) the next appointment set. Those are the main areas of importance under the organization category.

Jims coffee was getting cold. This beautiful day was becoming drearier by the minute. Jim suddenly felt like he was a kid being yelled at for some minor infraction. Jim, Stan said, does that make sense? Jim looked out the window, then back at Stan. He asked, Based on this process, what overall score do I need to get 75% of my bonus? Stan: Well, there is some variability, but basically between 4.3 and 5. Jim: And how many more of these individual items did you rate me on? Stan counted down the list. 24, he said. Jim: So, you and I are supposed to walk through all 25 of these items, and youre going to tell me what you said and ask me if I have any comments? Right, Stan said. And this is supposed to make me more productive? Jim asked. Right, Stan said. Jim was getting angrier. Trying to keep his temper in check, he stated that out of 50 sales reps, he was third overall in the company. He had clearly exceeded his quota and had done so without much input or help from Stan or anyone else. Im always invited to the Top Producers celebrations, and I get outstanding customer ratings, Jim said. You dont ask me if I need anything. You just assume that because Im one of your best sales reps, everything must be fine. Now someone has determined that I need to do these 25 things not only to be a top performer, which I already am, but also to get my bonus. Does that really make sense? Stan looked at Jim and fiddled with the evaluation form. Finally, he gave the answer he and the other managers were instructed to give: Well, we have to look at the how part of your job.