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Best Practices in Employee Performance Management and Development

ID: HR-44


20 Info Graphics

3 Data Graphics

3 Metrics

5 Narratives

116 Best Practices

Pages: 120

Published: Pre-2019

Delivery Format: Shipped


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Integrate disparate personnel development efforts into a cohesive system that stresses continuous learning, measurement, and advancement and recognition. Best Practices, LLC undertook this multi-industry study on behalf of a large, world-class pharmaceutical client. This project examines the best practices of employee performance management from over 70 companies in 31 industries.

Industries Profiled:
Financial Services; Computer Hardware; Telecommunications; Medical Device; Chemical; Consumer Products; Manufacturing; Health Care; Insurance; High Tech; Sports; Automobile; Pharmaceutical; Shipping; Banking; Utilities; Aerospace; Retail; Consulting; Office Equipment; Computers; Electronics; Internet; Professional Services; Defense; Service; Publishing; Computer Software; Research; Education; Multiple; Government; Biotech

Companies Profiled:
A Leading Pharmaceutical Company; American Express; Apple Computer; AT&T; Baxter Healthcare; BP Amoco; Campbell Soup; Chaparral Steel; Chemical Bank; Cigna; Cisco Systems; Cleveland Cavaliers; Compaq; Corning; DaimlerChrysler; Dow; Dow Chemical; Eli Lilly; Etec; Federal Express; FedEx; Fidelity Investments; Florida Power & Light; General Electric; GlaxoSmithKline; Hamilton Standard; Hannaford Brothers; Health and Safety Executive; Herman Miller; Hewlett-Packard; Honeywell; Iams; IBM; Intel; John Hancock; Johnson & Johnson; KPMG Peat Marwick; Levi-Strauss; Lockheed Martin; Marriott; McGraw-Hill; Merck; Merix; Michigan Consolidated Gas; Microsoft; Motorola; National Institutes of Health; North Yorkshire College of Health Studies; Novartis; PepsiCo; Pharmacia; Power of One; Raychem; Remmele Engineering; Rich Products; Ritz-Carlton; RJR Nabisco; Saturn; SBC; Siecor; Starbucks; StorageTek; Tenneco; Texas Instruments; Toyota; University of York; US Army; US Robotics Iams; USAA; U.S. Dept of Transportation; various; Varian; Verizon; Wichita State University; Xerox

Study Snapshot

This Best Practices Benchmarking® Report profiles a diverse group of practices employed by over 70 companies in over 31 industries. These practices have demonstrated effective operating processes and winning strategies in the management and development of employee performance.

Key Findings

The Best Practices, LLC systematic model for performance management is depicted below. This model is designed to group the disparate areas of personnel development into a cohesive, systematic representation. Within each area, practices are grouped by key practice headings. Analysis of best practices in the area of performance management has identified the following key practices and findings:

  • New Hire Orientation and Training
  • Career Path Definition
  • Continuous Learning
  • Measurement and Appraisal
  • Advancement and Recognition
Sample Practice
From the Section: Measurement and Appraisal

Design an implementation plan to align 360-degree evaluation processes with corporate culture and goals.
Companies that employ 360-degree performance evaluations offer key "lessons learned" on the development and implementation of such systems. The 360-degree system must be oriented to reflect the particular needs and culture of the company to obtain better performance information and increase employee development and accountability. Companies such as Digital and Ford have identified key factors that drive implementation success:

Communicate goals to all levels of the company.
Top companies stress the need for management to buy into and clearly communicate the goals of the 360-degree appraisal and how it relates to the company's business strategy and competitiveness. Top management should also appoint a committee of representative managers and employees to develop the appraisal forms and process.

Train all employees in the process.
Second, perhaps the single most important key is to provide training to employees on:

    • The specific details of the new appraisal process and
    • How to give constructive feedback in a productive, noncritical manner.
    • Learning to receive feedback.
For example, employees at Ford received training on how to evaluate specific critical incidents and to give feedback before they took part in 360-degree performance appraisals.

Test the program with a small pilot.
The appraisal should first be pilot tested with a select group of employees before it is instituted elsewhere in the organization. Once instituted, it is essential that top management reinforce the goals and responsibilities of employees related to this new appraisal process on an ongoing basis — first to the employees involved in the pilot and then to the organization as a whole.

Table of Contents

Executive Summary
    •  Purpose 
    •  Key Practice Findings 
    •  Best Practice Blueprint for Excellence
    •  Methodology 
    •  Research Benchmark Class 
    •  Performance Management Project Map 

Chapter I: New Hire Orientation and Training
    •  Process Model 
    •  Practice Index 
    •  Create and Deploy Corporate Values and Mission Statements 
    •  Design Effective Orientation Programs 
    •  Institute Headstart Training Programs 

Chapter II: Career Path Definition
    •  Process Model 
    •  Practice Index 
    •  Develop Individual Career Plans 
    •  Align Individual and Corporate Strategies 
    •  Facilitate Employee Progress 

Chapter III: Continuous Learning
    •  Process Model 
    •  Practice Index 
    •  Employ Formal Training Programs 
    •  Focus on Competencies 
    •  Coach and Nurture Employees 
    •  Employ Continuous Feedback 
    •  Incorporate Alternative Training Methods 

Chapter IV: Measurement & Appraisal
    •  Process Model 
    •  Practice Index 
    •  Design and Implement an Integrated Appraisal Process 
    •  Develop a Set of Critical Employee Measures 
    •  Link Measurement to Individual and Corporate Goals 
    •  Appendix 

Chapter V: Advancement & Recognition
    •  Process Model 
    •  Practice Index 
    •  Link Compensation to Strategy and Goals 
    •  Reward & Recognize Employees 
    •  Advance & Develop Employees

List of Charts & Exhibits

Performance Management Model
Performance Management Process Map
Best Practice Project Map: Career Path Definition
Corning Training Model
Ames Rubber’s Career Development Model
Process Evaluation Feedback
Best Practice Project Map: Continuous Learning
AT&T Measurement Regime
Scaling Toward Teams At Motorola
Motorola Employees on Empowerment
Training Delivery Methods
Total Training Expenditure Per Employee
Best Practice Project Map: Measurement & Appraisal
Employee Measures By Company
USAA’s Human Resource Performance Measures
Appendix: A Sample from Eli Lilly’s MAPS Program
Best Practice Project Map: Advancement Recognition
AT&T UCS Chart for Tracking the Quality Pie
GTE Directories Recognition Systems
Monitoring Satisfaction with Advancement & Recognition Programs at Xerox