Performance Management
CASE STUDY
PERFORMANCE MANAGEMENT AT NETWORK SOLUTIONS, INC.
Network solutions, inc. is a worldwide leader in hardware, software and services essential to computer networking. Until recently, Network Solutions, inc. used more than 50 different systems to measure performance within the company, many employees did not receive a review, fewer than 5% of all employees received the lowest category of rating, and there was no recognition program in place to award high achievers. Overall it was recognized that performance problems were not being addressed, and tough pressure from competitors was increasing the costs of managing human performance ineffectively. Finally, Network Solutions, inc. wanted to improve its ability to meet its organizational goals and realized that one way of doing this would be to ensure that they were linked to each employee's goals.
Given this situation, in 2001 Network Solution’s CEO announced that he wanted to implement a forced distribution performance management system in which a set percentage of employees was classified in each of several categories:
Rating 1 to top 20% of performers
Rating 2 to middle 70% of performers
Rating 3 to bottom 10% of performers
A global cross divisional HR team was put in place to design and implement the new system
The first task of design team was to build a business case of the new system by showing that if organizational strategy was carried down to team contributions and team contributions were translated into individual goals, then business goals would be met. Individual performance objectives were aligned with organizational goals by focusing on the development of all employees.
Desired outcomes of new system
Raising performance level of all employees
Identifying and retaining top talent
Identifying low performer and improving their performance
Performance expectations for all employees to be clear
Before implementing the program, the design team received the support of senior
PERFORMANCE MANAGEMENT AT NETWORK SOLUTIONS, INC.
Network solutions, inc. is a worldwide leader in hardware, software and services essential to computer networking. Until recently, Network Solutions, inc. used more than 50 different systems to measure performance within the company, many employees did not receive a review, fewer than 5% of all employees received the lowest category of rating, and there was no recognition program in place to award high achievers. Overall it was recognized that performance problems were not being addressed, and tough pressure from competitors was increasing the costs of managing human performance ineffectively. Finally, Network Solutions, inc. wanted to improve its ability to meet its organizational goals and realized that one way of doing this would be to ensure that they were linked to each employee's goals.
Given this situation, in 2001 Network Solution’s CEO announced that he wanted to implement a forced distribution performance management system in which a set percentage of employees was classified in each of several categories:
Rating 1 to top 20% of performers
Rating 2 to middle 70% of performers
Rating 3 to bottom 10% of performers
A global cross divisional HR team was put in place to design and implement the new system
The first task of design team was to build a business case of the new system by showing that if organizational strategy was carried down to team contributions and team contributions were translated into individual goals, then business goals would be met. Individual performance objectives were aligned with organizational goals by focusing on the development of all employees.
Desired outcomes of new system
Raising performance level of all employees
Identifying and retaining top talent
Identifying low performer and improving their performance
Performance expectations for all employees to be clear
Before implementing the program, the design team received the support of senior