Microsoft removes ratings and encourages collaboration
In 2013, Microsoft took a big step. It removed its previous system of performance management – which used a process known as 'stack ranking' to divide employees into five performance categories along a targeted distribution of ratings – and replaced it with a new approach to performance and development that emphasises collaboration, feedback and rewards for impact. According to Lisa Dodge, Director – Global Performance Programmes, the change – now covering its 112,00-strong workforce worldwide – has brought positive results, with over two-thirds of employees and managers expressing satisfaction with the company’s new approach in staff surveys.
CONTENTS OF THIS SEVEN-PAGE CASE STUDY
Research and written by E-reward.co.uk
- Organisation profile
- Who E-reward interviewed
- A new company culture
- The old approach to performance management . . .
- . . . and the new approach to performance and development
- The three priorities
- Deliver results differently through teamwork
- Feedback that helps you learn, grow and deliver results
- Reward contributions to business impact
- Framing the Connect conversation
- Structuring the Connect process
- Monitoring Connects
- Providing support for managers
- Leveraging and contributing
- Reward decisions
- Managers feel in control
- Talent management
- A positive response
This is the second part of a major E-reward project on 'new' approaches to performance management. It comprises a batch of in-depth case studies designed to highlight how a wide range of disparate organisations are rethinking their approach to performance management.