Question

This case deals with the development of a comprehensive performance appraisal and management system that was designed and implemented for Wachovia Bank (by Dr. Amy Carver). Dr. Carver was Senior VP for Organizational Effectiveness for Wachovia. One of the concerns Dr. Carver had when she got to Wachovia was that the organization did not have a common performance appraisal and management system. Each year supervisors filled out evaluations, but there were no consistent standards, and raises were not closely tied to performance. To remedy this, Dr. Carver and her team put together a comprehensive system that became part of the management/supervisor system of the organization. This system tied together annual performance reviews with goal setting, employee development, and supervisor coaching.The system runs on an annual cycle beginning in December. The evaluation portion, which involves both employee self-appraisals and supervisor ratings, is entirely web-based. Each employee-supervisor pair logs onto the company computer system to complete evaluation forms. These forms are focused on the match between the employee’s competencies, as displayed for the year, and the organization’s competency model for that position. This model, which was derived from a job analysis, is a specification of the competencies and skills needed for doing the job. When both employee and supervisor are done, a report is automatically generated that highlights areas of disagreement.  Around the first of the year, each supervisor meets with each subordinate to discuss his/her performance and to agree on goals for the upcoming year. These goals specify not only what is to be accomplished, but also how it is to be done, thus providing a balanced emphasis on both work quality and quantity. The web-based system sends e-mail reminders to each supervisor at quarterly intervals to conduct required coaching sessions with subordinates to provide feedback about competencies and goal progress up to that time of the year. Goals for the future of the system include linking raises each year to performance management. As you can see, the Wachovia system goes far beyond just completing the usual “report card” on every employee each year.

1. Do you think you would like working in a company with this sort of performance system. Why or why not?
2. Why would a company like Wachovia invest so much effort into performance evaluation?
3. Why are mangers required to provide quarterly coaching sessions? Isn’t once a year enough?
4. Do you think goal setting will increase employee motivation and performance (see chapter 8’s section on goal setting).

Answer 1

1) Yes, I would like to work with this type of company where performance evaluation is used. This makes company more professional. The work done in less amount of time. The responsibility of each employee is concerned. All these results keep company in profit.

2) performance evaluation results in goal achievement. Here performance evaluation is done quarterly which gives time to correction.

3) The progress can be improved quarterly rather than yearly. The competencies or performance are evaluated effectively if it is quarterly. It yearly then it will take more time for collection.

4) Yes, goal setting can increase performance and motivation. The effectiveness of work depends on configuration of goal. The work distribution between employees with responsibility, progress test, and final result are some evaluation for goal achievement which in other word is goal setting.