To overcome these problems, a new process called"Performance Feedback and Development" was created by a task force of senior HR personnel and middle managers. The new system requires employee objectives to be set at the outset of the year and approved by a second level manager. An interim review is conducted after months cuss good and bad performance, update objectives and review progress
Discussion of pay increases is no longer coupled to the performance review; raises are discussed one or two months later. The numerical rat ing has been dropped altogether, although a written summary is in cluded with the evaluation
When Xerox is setting out the next year's targets, financial and peo ple-related goals are discussed, but so are development objectives that relate to one's specialty and to general skills such as time management. human relations, and communications.
As this example emphasizes, an organization cannot have just any appraisal system; the system effective, and properly used. With those conditions met, performance appraisal systems can identify needed improve ments in HR information related to job analysis and design(Chapter 5), human resource planning(Chapter 6), staffing(Chapters 7 and