Today, part of the training associated with the performance management system revolves around the idea that the development planning phase of the system is the joint year-round responsibility of managers and employees. Managers are responsible for scheduling meetings, guiding employees on pre- paring for meetings, and finalizing all development p lans. Individual contributors are responsible for documenting the developmental plans. Both man- agers and employees are responsible for preparing for the meeting, filling out the development plan- ning preparation forms, and attending the meeting.

With forced distribution systems, there is a set number ofemployees that have to fall into set rating classifications. As noted, in the Network Solutions system, employees are given a rating of 1, 2, or 3. Individual ratings are determined by the execution of annual objectives and job requirements as well as by a comparison rating of others at a similar level at Network Solutions. Employees receiving a 3, the lowest rating, have a specified time period to improve their performance. I f their performance does improve, then they are released from the plan, but they are not eligible for stock options or salary increases.Ifperformance does not improve, they can take a severance package and leave the company or they can start on a performance improvement plan, which has more rigorous expectations and timelines than did the original action plan. If performance does not improve after the second period, they are terminated without a severance package. Individu- als with a rating of 2 receive average-to-high salary increases, stock options, and bonuses. Individ uals receiving the highest rating of 1 receive the highest salary increases, stock options, and bonuses. These individuals are also treated as "high potential" employees are given extra development opportu- nities by their managers. The company also makes significant efforts to retain all individuals who receive a rating of 1.

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Looking to the future, Network Solutions plans to continue reinforcing the needed cultural change to support forced distribution ratings. HR CentersofExpertiseofNetworkSolutionscontinue to educate employees about the system to ensure that they understand that Network Solutions still rewards good performance; they are just measuring it in a different way than in the past. There is also a plan to monitor for and correct any unproductive practices and implement correcting policies and practices. To do this, Network Solutions plans on continued checks with all stakeholders to ensure that the performance management system is serving its intended purpose.

Consider Network Solutions' performance man- agement system in light of what we discussed as an ideal system. Then, answer the following questions:

1. Overall, what is the overlap between Network Solutions' system and an ideal system?

2. What are the features of the system implemented at Network Solutions that correspond to the features described in the chapter as ideal characteristics? Which of the ideal characteristics are missing? For which of the ideal characteristics do we need additional information to evaluate whether they are part of the system at Network Solutions?

3. Based on the description of the system at Network Solutions, what do you anticipate will be some advantages and positive outcomes resulting from the implementation of the system?

4. Based on the description of the system at Network Solutions, what do you anticipate will be some disadvantages and negative outcomes resulting from the implementation of the system?