Decoupling appraisal from pay increases LO19663

Daniel DeMaioNewton (DDeMaioNewton@sengi.com)
Wed, 28 Oct 1998 12:48:29 -0500

Was: Employee Development Plans LO19595

Jessica's recent message on employee development plans was the right issue
at the right time for me. I really appreciate the responses and have not
only learned much, but have great tools and reasoning to help
organizations develop performance appraisal systems that really help
increase personal, team, and organizational learning.

I'm faced with a problem, and I'd like to ask for your help, guidance, and
suggestions. The place I work is new to learning organizations. They're
one of the fastest growing companies in the US, and don't have an internal
system for performance reviews. They hired an outside consultant who
delivered a performance review plan straight from the 1950's, with one way
evaluations, ranking employees from competent to incompetent, etc. This
system was designed with only the HR person's input and bombed miserably
when introduced to project managers.

The president of this company has the mental model that performance
reviews must be tied to salary increases. In fact, that's the reason for
them, right? I hope you can see where I'm coming from. What I need help
with is:

* What's wrong with coupling performance reviews to pay increases?
* If they're de-coupled, how does an organization give pay increases?
* What are the reasons for formally scheduled performance appraisals?
What other models exist to break the mold?
* Are there any best practices you're aware of that are contemporary
models of learning organizations using successful performance appraisal
systems.

Any insights or feedback or help will be sincerely appreciated,
Dan

Learning-org -- Hosted by Rick Karash <rkarash@karash.com>
Public Dialog on Learning Organizations -- <http://www.learning-org.com>