armin trost :performance appraisal in agile environments
DESCRIPTION
Talent Lab - HR Tech EuropeTRANSCRIPT
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Performance Appraisal in an agile Environment
Prof. Dr. Armin TrostHFU Furtwangen, Business School
HR Tech Europe 2014, Amsterdam
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2Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Traditional Performance Appraisal
ObjectivesReview
Overall Objectives Between an employee and his/her immediate supervisor
Leads to decisions and judgments
Common approach across levels and functions
Supervisor is in the leading position
It‘s a system – not an event
Central system-owner (usually HR)
Mid-year Review
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3Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Interfaces to other HR-related Processes
Performance Appraisal
Talent-management
Compensation
Learning
Out-placement
Balanced Scorecard
Employee Retention
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4Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Focus on Tool versus Results
Tool Design Conditions Results
?
Results Conditions Tool Design
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5Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Intended Results
Retain employees
Motivate through
objectives
Management by objectives
Develop employees
Treat low-performers
Identify potential
Track suitability
Offer perspectives
Reward high-performers
Learn through
feedback
Judgements & Decisions
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6Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Principal, Customer, and the Role of HR
Ex
E
HR
M
A
HR
E
Ex
M
B
E
Ex
C
HRM
Ex
M
E HR
D
Executive Board (Ex), Manager (M), Employees (E)
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7Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
The man who gives Flowers to his Wife
Intrinsically motivated behavior
Policy BehaviorAttribution to
extrinsic motivation
Behavior not valued
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8Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Relevand Conditions
Employee-Organization-Relationship
Employee-Supervisor-Relationship
Employee-Work-Relationship
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9Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Certainty of Work Results and Processes
low
high
lowhigh
certainty of results
certainty of process
large
project
small
B
ED
A
C
Scope
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10Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Task Interdependance and Dynamic
D
A
B
E
C
strong effect
weak effect
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11Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Task Dynamics (Sensitivity Model)
strong
weak
strongweak
Reaction
Influence
reactive critical
activebuffering
neutral
AB
E D
C
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12Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
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13Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
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14Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Roles of supervisors
Boss
Enabler
CoachPartner Employee
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15Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
„The role of judge and the role of counselor are incompatible
-- Douglas McGregor
Source: McGregor, D. (1960). The human side of enterprise. New York: McGraw-Hill.
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16Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Social Judgement Process
Criterion interpretation
Recall relevant memory content
Initial judgement
Anticipation of consequences
Judgement communication
Required adjustment
Judgement available?
yes
no
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17Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Employee-Organization-Relationship
Autonomy/self-control
Professionalindependence
Socialcollaboration
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18Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Employee-Organization-Relationship
Autonomy/self-control
Professionalindependence
Socialcollaboration
A
Autonomy/self-control
Professionalindependence
Socialcollaboration
B
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19Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Two extreme Worlds
Hierarchy Agility
Task uncertainty low high
Dynamic low high
Supervisor role Boss Partner/Coach
Autonomy/self-control low (top-down) high (bottom-up)
Social collaboration individual linked teams
Professional independence low high
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20Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Traditional Performance Appraisal in both Worlds
Hierarchy Agility
Reward high-performers
Tread low-performers
Identify potential
Track suitability
Offer perspectives
Learn through feedback
Develop employees
Management by objectives
Motivate through objectives
Retain employees
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21Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Agile Design
Think in terms of teams and networks
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22Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Feedback in Hierarchies
...
Client
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23Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Agile Feedback
Customer Teams Enabler
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24Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Commited to whom?
E
SuperiorObjectives
M
A
M
E
Customer
Sponsor
B
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25Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Agile Design
Think in terms of teams and networks
Put employees and teams at the center
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26Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Talent Identification
Employee
Target Position
Decider
Supervisor
Talent Manager
Employee
Decider
Target Position
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27Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Agile Design
Think in terms of teams and networks
Put employees and teams at the center
Act on demand with relevant responsibilities
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28Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Performance Distribution
Performance
C B AF
req
uen
cy
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29Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Learning
individual learning
from managers & trainers
off-the-Job
planned
formal
ordered
long cycles
requirements
learning transfer
social learning
from and with others
on-the-Job
on demand
informal
employee driven
short cycle
curiosity & uncertainty
work = learning
Hierarchy Agility
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30Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Agile Design
Think in terms of teams and networks
Put employees and teams at the center
Act on demand with relevant responsibilities
Allow openess, simplicity and diversity
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31Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
A simple Form
What I want to be proud of in 12 months:
Where I want to improve in the up-coming 12 months:
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32Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Forced Ranking?
10%
70%
20%
C B A
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33Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Agile Design
Think in terms of teams and networks
Put employees and teams at the center
Act on demand with relevant responsibilities
Allow openess, simplicity and diversity
Let things go -- rely on natural dynamics
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34Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Playing Field
„Darwinism“
Central/planned approach
Market approach/enablement
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35Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Talentmanagement -- Varieties
„Darwinism“
Central/planned approach
Market approach/enablement
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36Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Career 1.0
„In our board meeting we‘ve spoken about you and I‘m happy to tell you about your promotion. You will be our future Head of Purchase. Concratulation and all the best.
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37Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Talentmanagement -- Varieties
„Darwinism“
Central/planned approach
Market approach/enablement
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38Prof. Dr. Armin Trost HR Tech Europe 2014 www.armintrost.de
Summary
It‘s a system – not a one-time incident
First, think about results – not about the tool
Be clear about who the customer is
Consider internal conditions: organization, supervision and work
Even under hierarchical conditions performance appraisal does not fully work
In an agile environment traditional performance appraisal does not work
Agility requires focused, social, open approaches, driven by employees and customers
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Performance Appraisal in an agile Environment
Prof. Dr. Armin TrostHFU Furtwangen, Business School
HR Tech Europe 2014, Amsterdam