Performance Management System of AMAZON Assessment 2

 Identify the weakness

Amazon’s approach to managing people has been tried before, many times in fact, and mostly it has failed. A core feature of Amazon’s approach has been called “purposeful Darwinism”. This is the idea that if you create a struggle for survival among staff, they will increase their performance. It works by measuring employees on a wide range of metrics, ranking them on the basis of their performance, then splitting them into three groups: a small number of high performers who are lavishly rewarded; a large group of average performers who hold on to their jobs; and a third group of under-performers who are “managed out” of the organisation. This has created a system where, in the words of one ex-employee, “you learn how to diplomatically throw people under the bus”.

This is commonly known as the “rank and yank” system – rank people on performance metrics, then yank out the poor performers. The system was brilliantly dramatised in David Mamet’s Glengarry Glen Ross, when a senior executive from headquarters visits a sleepy sales office to “motivate” the staff. He offers them rewards for results. First prize is a Cadillac Eldorado. Second prize is a set of steak knives. Third prize is “you’re fired”.

This kind of tooth-and-claw competition drains the life blood of most organisations. When your colleagues are likely to stab you in the back to improve their own performance ratings, it is hard to trust them. As a result, people focus on protecting themselves. Sharing knowledge with them or doing things that are beyond the call of duty become very risky. This can create a toxic work environment that undermines the basis for cooperation, sharing and even innovation.

 Performance Management Module 

Behaviorally anchored rating scale definition (BARS)

Behaviorally anchored rating scale is a measuring system which rates employees or trainees according to their performance and specific behavioral patterns.

BARS is designed to bring the benefits of both quantitative and qualitative data to employee appraisal process as it mechanism combines the benefits of narratives, critical incidents and quantified ratings.

BARS is designed to bring the benefits of both qualitative and quantitative data to the employee appraisal process by comparing an individual’s performance against specific examples of behavior which are then categorized and appointed a numerical value used as the basis for rating performance.

The first step is to write CIT (Critical Incident Techniques) which compares an individual’s performance against specific examples of behavior that are tied to numerical ratings of 5 to 9.

Then the employer needs to develop performance dimensions which have to recheck. Next step evolves scaling the critical incidents which leads to developing the final instrument.

  Weakness Of Performance Management Module 

It’s behaviorally based. The BARS system is totally focused on employee performance. Ideally, it removes all uncertainty regarding the meaning of each numerical rating.

It’s easy to use. The clear behavioral indicators make the process easier for the manager to carry out and the employee to accept.

It’s equitable. With its heavy emphasis on behavior, the evaluation process comes across as fair.

It’s fully individualized. From the standpoint of consistency within a company, BARS is designed and applied individually and uniquely for every position.

It’s action-oriented. With an understanding of the specific performance expectations and standards of excellence, employees can much more easily take steps to improve their performance, and they’re more likely to do so as a result.

 Benefits Of Performance Management Module 

Behaviorally anchored rating scale can help improve organization's performance because they:

Are reliable as the appraisals remain the same even when different raters rate them.

 Have clear standards upon which an employee is appraised.

 Are very accurate in the appraisal method and therefore increase reliability.

Give an objective feedback