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A critical evaluation of performance management and development processes within Otis PLC
It is largely focused on the measurement and monitoring of output and gives little attention to questions of development. It must also be noted that despite the large amount of management data that is collected relatively little use is made of it to improve performance.
Secondly, the planned shift to a greater focus on performance management is likely to have a negative effect on employee morale. This is supported by the findings of Stiles et al (1997) and there is already some anecdotal evidence in Otis that this is happening. Specifically, the lack of attention that has been paid to development issues in the past will have, to some extent, been compensated for by the absence of active management of performance. By becoming more active in performance management the organisation is changing the rules of the game. I will return to this point in my recommendations.
Thirdly, the established systems for performance management and development are largely not being used. The two cases where the systems are being used are interesting in that they give an insight into this issue. In the case of field employees there is a requirement to use the system which is enforced as part of a collective agreement with a trade union. Put in another way there is an external discipline that leads to compliance. In the second case, the managers in new equipment sales are using a model that is close to the IDS standard. This model was generated by them (with external consulting support), is designed to meet the specific needs of their business and has contributed to improved results. Put in another way their use of performance management is instrumental, they have adopted it because it is effective in improving their business rather than because it was an imposed “best practice”. I will return to this point in my recommendations.
Recommendations
Using my review and conclusions as a basis, and reflecting on developments in the organisation, I would make four recommendations for performance management and development within Otis PLC.
1. Increased focus on development
At present the organisation’s focus is very much on performance control. The example of the sales management process in new equipment demonstrates that an approach focused equally on development is likely to produce significant performance improvement. The competence model that was adopted during the recent restructuring process provides a framework for evaluating inputs and providing developmental feedback. Examples of the behaviourally anchored rating scales developed from the model are shown in Appendix 2.
2. Integration of different system elements
The two aspects of performance management, development and control are not managed in an integrated way. By developing a single, integrated process that addressed both issues this problem could be overcome. The sales management process within new equipment is a good model of this. In addition, this process should be integrated with the selection, training and reward processes again using the competence model as [next page]