Table Of Content

Management for Professionals Armin Trost The End of Performance Appraisal A Practitioners’ Guide to Alternatives in Agile Organisations Management for Professionals Moreinformationaboutthisseriesathttp://www.springer.com/series/10101 Armin Trost The End of Performance Appraisal A Practitioners’ Guide to Alternatives in Agile Organisations ArminTrost Tübingen,Germany TranslatedbyEmilyPlank ISSN2192-8096 ISSN2192-810X (electronic) ManagementforProfessionals ISBN978-3-319-54234-8 ISBN978-3-319-54235-5 (eBook) DOI10.1007/978-3-319-54235-5 LibraryofCongressControlNumber:2017939705 #SpringerInternationalPublishingAG2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinor for anyerrors oromissionsthat may havebeenmade. Thepublisher remainsneutralwith regardtojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland To Elena Preface ThefirstprojectofmycareerasanHRprofessionalinvolvedintroducinganannual performance appraisal at SAP AG. I actively participated in countless project meetings and workshops on the topic and attended numerous information events foremployeesandmanagers.Asanemployee,Iwasthevictimoftheperformance appraisal,andasamanager,theperpetrator.Inthebackofmymindwasaconstant nagging feeling that something about the whole matter just wasn’t right. It was moreavagueimpression,fuelledbyless-than-euphoricreactionsfromthepartiesin question.Butwhatcouldbewrongwiththeideathatmanagerssettargetswiththeir employees at least once a year, discuss their development and provide structured feedback? Years later, I became a professor. In this capacity, coupled with my role as academic, advisor and coach, I held many controversial discussions with HR professionals,managers andMBAstudentswho had designed orexperienced this instrument during their careers. The dilemma still remained. What appeared so simple and well intended in theory proved to be a highly complex, multifaceted conceptinpractice.Naivetyappearedtobethelastthinganyonewouldwanthere. In 2012, more out of acute despair than anything else, I dedicated one of my columnsintheGermanversionoftheHarvardBusinessReviewtothistopic.The article was, admittedly, highly polarising, even cynical. The first day after it was published,itreceivedmorethan10,000hits.Thiswasthenfollowedbyadelugeof comments and opinions, most of which were sent to me by email. The topic had evidentlycausedquiteastir.Buttherewasstillnosolutioninsight.Somesawitone way;otherssawitanotherway. In2013,Ithenbegangraduallycollatingrelevantinformation.Istudiedtomesof literature, developed models and sought out discussions with HR professionals, managers and students. Things eventually started making more sense, and I feel I am now in a position to provide more clarity and structure to this issue. Before embarking on this book project, I engaged in extensive dialogue with relevant figuresfromtherealworld.Iwouldliketotakethisopportunitytosincerelythank them.Iftheirfeedbackhadn’tbeensopositive,Iwouldnothavewrittenthisbook. vii viii Preface Ibelievetheideasraisedinitarehighlyrelevanttopracticeandhopeitcanserveas a source of guidance and consolidation for anyone having to deal with annual performanceappraisals. Tübingen,Germany ArminTrost 31/9/2016 Contents 1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2 TheAnnualPerformanceAppraisalSystem. . . . . . . . . . . . . . . . . 7 2.1 It’saSystem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.2 WeAllayWorldHunger. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3 WhoAretheCustomersofPerformanceAppraisals?. . . . . . . . . 21 3.1 FromBenefittoDesign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3.2 TheUsualIntendedBenefits. . . . . . . . . . . . . . . . . . . . . . . . . 25 3.3 PerformanceAppraisalCustomers. . . . . . . . . . . . . . . . . . . . . 34 3.4 InternalPositioning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.5 ObjectiveRelevance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 4 RelevantFrameworkConditionsofPerformanceAppraisals. . . . 49 4.1 TaskEnvironment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 4.2 LeadershipRole. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 4.3 Organisation. . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . 73 4.4 HierarchicalWorld:AgileWorld. . .. . . .. . . .. . . .. . . .. . . 84 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 5 PossibilitiesandLimitsofTraditionalPerformanceAppraisals. . . 91 5.1 RewardingtheBest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 5.2 AddressingtheWeak. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 5.3 IdentifyingTalent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 5.4 EstablishingInternalSuitability. . . . . . . . . . . . . . . . . . . . . . . 109 5.5 EmployeeDevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 5.6 OfferingProspects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 5.7 LearningThroughFeedback. . . . . . . . . . . . . . . . . . . . . . . . . 123 5.8 ManagingCompanies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 5.9 MotivatingbyObjectives. . . . . . . . . . . . . . . . . . . . . . . . . . . 134 ix x Contents 5.10 RetainingEmployees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 5.11 InterimConclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 6 BetterAlternativestoPerformanceAppraisalinanAgile Context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 6.1 Responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 6.2 OpennessandDiversity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 6.3 NetworkedThinking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 6.4 SortedFormats,Content,TimesandPlayers. . . . . . . . . . . . . 161 6.5 LettingGo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 6.6 WhatNow?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 7 ConclusionandFinalRemarks. . . . . . . . . . . . . . . . . . . . . . . . . . . 177 AbouttheAuthor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 AbouttheTranslator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

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This book demonstrates, in detail, why annual performance appraisals might still work in hierarchical environments, but largely fail in agile ones. The annual performance appraisal is one of the world’s most widely used management tools. For many years, it was indeed seen as a pre-requisite for su
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by  Armin Trost (auth.)
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Management for Professionals Armin Trost The End of Performance Appraisal A Practitioners’ Guide to Alternatives in Agile Organisations Management for Professionals Moreinformationaboutthisseriesathttp://www.springer.com/series/10101 Armin Trost The End of Performance Appraisal A Practitioners’ Guide to Alternatives in Agile Organisations ArminTrost Tübingen,Germany TranslatedbyEmilyPlank ISSN2192-8096 ISSN2192-810X (electronic) ManagementforProfessionals ISBN978-3-319-54234-8 ISBN978-3-319-54235-5 (eBook) DOI10.1007/978-3-319-54235-5 LibraryofCongressControlNumber:2017939705 #SpringerInternationalPublishingAG2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinor for anyerrors oromissionsthat may havebeenmade. Thepublisher remainsneutralwith regardtojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerInternationalPublishingAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland To Elena Preface ThefirstprojectofmycareerasanHRprofessionalinvolvedintroducinganannual performance appraisal at SAP AG. I actively participated in countless project meetings and workshops on the topic and attended numerous information events foremployeesandmanagers.Asanemployee,Iwasthevictimoftheperformance appraisal,andasamanager,theperpetrator.Inthebackofmymindwasaconstant nagging feeling that something about the whole matter just wasn’t right. It was moreavagueimpression,fuelledbyless-than-euphoricreactionsfromthepartiesin question.Butwhatcouldbewrongwiththeideathatmanagerssettargetswiththeir employees at least once a year, discuss their development and provide structured feedback? Years later, I became a professor. In this capacity, coupled with my role as academic, advisor and coach, I held many controversial discussions with HR professionals,managers andMBAstudentswho had designed orexperienced this instrument during their careers. The dilemma still remained. What appeared so simple and well intended in theory proved to be a highly complex, multifaceted conceptinpractice.Naivetyappearedtobethelastthinganyonewouldwanthere. In 2012, more out of acute despair than anything else, I dedicated one of my columnsintheGermanversionoftheHarvardBusinessReviewtothistopic.The article was, admittedly, highly polarising, even cynical. The first day after it was published,itreceivedmorethan10,000hits.Thiswasthenfollowedbyadelugeof comments and opinions, most of which were sent to me by email. The topic had evidentlycausedquiteastir.Buttherewasstillnosolutioninsight.Somesawitone way;otherssawitanotherway. In2013,Ithenbegangraduallycollatingrelevantinformation.Istudiedtomesof literature, developed models and sought out discussions with HR professionals, managers and students. Things eventually started making more sense, and I feel I am now in a position to provide more clarity and structure to this issue. Before embarking on this book project, I engaged in extensive dialogue with relevant figuresfromtherealworld.Iwouldliketotakethisopportunitytosincerelythank them.Iftheirfeedbackhadn’tbeensopositive,Iwouldnothavewrittenthisbook. vii viii Preface Ibelievetheideasraisedinitarehighlyrelevanttopracticeandhopeitcanserveas a source of guidance and consolidation for anyone having to deal with annual performanceappraisals. Tübingen,Germany ArminTrost 31/9/2016 Contents 1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2 TheAnnualPerformanceAppraisalSystem. . . . . . . . . . . . . . . . . 7 2.1 It’saSystem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2.2 WeAllayWorldHunger. . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3 WhoAretheCustomersofPerformanceAppraisals?. . . . . . . . . 21 3.1 FromBenefittoDesign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 3.2 TheUsualIntendedBenefits. . . . . . . . . . . . . . . . . . . . . . . . . 25 3.3 PerformanceAppraisalCustomers. . . . . . . . . . . . . . . . . . . . . 34 3.4 InternalPositioning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.5 ObjectiveRelevance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 4 RelevantFrameworkConditionsofPerformanceAppraisals. . . . 49 4.1 TaskEnvironment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 4.2 LeadershipRole. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 4.3 Organisation. . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . 73 4.4 HierarchicalWorld:AgileWorld. . .. . . .. . . .. . . .. . . .. . . 84 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 5 PossibilitiesandLimitsofTraditionalPerformanceAppraisals. . . 91 5.1 RewardingtheBest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 5.2 AddressingtheWeak. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 5.3 IdentifyingTalent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 5.4 EstablishingInternalSuitability. . . . . . . . . . . . . . . . . . . . . . . 109 5.5 EmployeeDevelopment. . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 5.6 OfferingProspects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 5.7 LearningThroughFeedback. . . . . . . . . . . . . . . . . . . . . . . . . 123 5.8 ManagingCompanies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 5.9 MotivatingbyObjectives. . . . . . . . . . . . . . . . . . . . . . . . . . . 134 ix x Contents 5.10 RetainingEmployees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 5.11 InterimConclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 6 BetterAlternativestoPerformanceAppraisalinanAgile Context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 6.1 Responsibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 6.2 OpennessandDiversity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 6.3 NetworkedThinking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 6.4 SortedFormats,Content,TimesandPlayers. . . . . . . . . . . . . 161 6.5 LettingGo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 6.6 WhatNow?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 7 ConclusionandFinalRemarks. . . . . . . . . . . . . . . . . . . . . . . . . . . 177 AbouttheAuthor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 AbouttheTranslator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

Description:
This book demonstrates, in detail, why annual performance appraisals might still work in hierarchical environments, but largely fail in agile ones. The annual performance appraisal is one of the world’s most widely used management tools. For many years, it was indeed seen as a pre-requisite for su
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