Performance Rankings at Portland Events PlannersRob is the founder and owner of PortlandEvents Planners, a company that plans eventsfor a wide variety of companies in and aroundthe Portland area. The events include tradeshows, product demonstrations, business conferencesat hotels, and videoconferences. Astaff of five professionals performs the activitiesnecessary for selling the company’s services tobusinesses and for doing the event planning.Rob is involved in the same activities of obtainingnew business and event planning. The sixprofessionals are assisted by an administrativestaff of four people.After five years of operation without one,Rob decides that it is time to implement a formalperformance evaluation system. Afterstudying the idea of performance evaluationand speaking to a talent management professionalin his network, Rob decides that mostperformance-evaluation systems are too topdown.He thinks that he would like a moredemocratic system of performance evaluation,particularly because the staff work closelytogether as a team. Rob decided on a performanceevaluation method that focused oneach team member rating the contribution ofall other team members, supplemented by hisown rating.Next, Rob sent an e-mail to all staff membersexplaining his evaluation system. Thee-mail was followed up by a staff meeting todiscuss the new system before its implementation.Rob began the meeting with a briefexplanation:“As described in my e-mail, the new evaluationsystem is quite simple. Each of you willanonymously rate the contribution of eachstaff member to our company’s success on a1-to-10 scale, with 10 indicating a super contribution. I will also give a rating, so the maximumrating anyone could have would be 60, a score of10 from each of the six raters. The minimumscore you could receive would be a six. I willallocate salary increases based somewhat onthe results of the evaluation. What do youthink, gang? I want you to react one by one.”The five staff members of Portland Event Plannersreacted as follows:Linda: “I like the system because it is objective.Of course, the ratings tell us nothing aboutwhat each of us is doing right or wrong.”Tom: “Rob, I like the idea of peer input. ButI’m afraid that your ratings will simply reflecthow much we like each other. So, I’m expectingto receive 59 points.” [Laughter from theteam.]Kitty: “I see some good things about this newsystem. The system seems objective because wewind up with numerical ratings. But the systemis really subjective; you will not be makingsalary decisions based on tangible, measuredaccomplishments.”José: “I disagree with Kitty. Most of our salesand our planning is really a joint effort. It isdifficult to pin down who among us reallyaccomplished what on his or her own. I’d say,let’s give the new system a chance.”Laura: “Rob, I see some merit in this system.But before endorsing it, I want your assurancethat you will sit down with us one by one anddiscuss the ratings. I think you should also giveeach of us your personal feedback.”With a reflective look, Rob replied, “I’vereally learned a lot this morning about yourhigh level of professionalism and your interestin performance evaluation. Let me think aboutwhat you have told me, and I will get back toyou.”Discussion Questions1. What is your evaluation of the system of performanceevaluation Rob is proposing?2. Explain which two suggestions from the teammembers you think are the most valid.3. Considering the nature and size of PortlandEvents Planners, what type of performanceevaluation system do you recommend Robimplement?
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