BUS FPX 3040 Assessment 2 Performance Management and Training

Student Name

Capella University

BUS-FPX3040 Fundamentals of Human Resource Management

Prof. Name

Date

Introduction

Throughout the 20th century, General Electric (GE) stood as the quintessential American corporation, deeply intertwined with the nation’s technological and economic prowess. However, with pioneering success comes inevitable failures. One such failure was GE’s performance management system in the late 20th century. Today, GE is once again pioneering, this time by developing a more equitable, humane, and effective performance management system.

From EMS to PD@GE

From 1976 to 2016, GE employed its in-house performance management system, known as the Employee Management System (EMS). Under CEO Jack Welch’s leadership (1981-2001), the EMS, notably the ‘vitality curve,’ ranked employees against each other, resulting in a competitive and demoralizing environment. Despite Welch’s successful tenure, criticism mounted against this system, citing its detrimental effects on morale and company success. Over time, numerous companies, influenced by GE’s approach, adopted similar systems. However, GE and others have transitioned towards more personalized and effective performance management, exemplified by the PD@GE system introduced in 2015.

But Is It Effective?

A case study by Narasimhan, Jordan, and Huang (2018) highlights GE’s recognition of the flaws in its old system and the subsequent development of PD@GE. Early indications suggest positive reception among employees, with an emphasis on immediate feedback and greater individual liberty. This shift aligns with broader trends in corporate America, emphasizing team performance over individual metrics.

Formal vs. Informal Feedback

While EMS relied heavily on formal, periodic reviews, PD@GE prioritizes informal, ongoing feedback. Research suggests that formal feedback alone often fails to drive performance improvement, emphasizing the importance of routine, personalized feedback in fostering employee development.

Best Practices to Improve Employee Performance

Dorsey and Mueller-Hanson (2017) identify five root causes of performance management failures and propose best practices to address them. These include simplifying systems, flexible goal-setting, emphasizing performance measurement, coaching, and using different criteria for various decisions.

Importance of Training and Protection from Litigation

Comprehensive training programs are crucial for preparing employees for their roles and shielding organizations from legal liability. Various training modalities, including classroom-based, material aids, and web-based, can be employed to ensure effective onboarding and continuous development.

Conclusion

GE’s transition from EMS to PD@GE reflects a broader evolution in performance management, prioritizing personalized feedback, employee development, and team success. By addressing the shortcomings of traditional systems and embracing innovative approaches, companies can cultivate a more engaged, productive workforce poised for success in the 21st century.

References

Dal Pino, J. (2014). Do You Know the Standard of Care? Retrieved from https://docs.acec.org/pub/18803059-a2fd-2d06-cc39-a6d1dd575265#:~:text=Engineers%20have%20a%20duty%20to

Donkor, C., Slobodjanjuk, A., Cremer, K., & Weisshar, J. (2017). The way we work -in 2025 and beyond. Retrieved from https://www.pwc.ch/en/publications/2017/the-way-wework-hr-today_pwc-en_2017.pdf

General Electric – 60 Year Stock Price History | GE. (2022). Macrotrends.net. Retrieved from https://www.macrotrends.net/stocks/charts/GE/general-electric/stock-price-history

Ivy Panda. (2018). Performance Appraisal – Case study of Coca and General Electric – 1203 Words | Essay Example. Free Essays. Retrieved from https://ivypanda.com/essays/performance-appraisal-case-study-of-coca-andgeneral-electric/

Narasimhan, A., Jordan, J., & Huang, S.-H. (2018, October 4). Performance development at GE: Shaping a fit-for-purpose performance management system (A). IMD Business School. Retrieved from https://www.imd.org/researchknowledge/case-studies/case-studies/performance-development-at-ge-shapinga-fit-for-purpose-performance-management-system-a/

BUS FPX 3040 Assessment 2 Performance Management and Training

Pulakos, E. (2004). Performance Management A roadmap for developing, implementing and evaluating performance management systems. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expertviews/Documents/Performance-Management.pdf

Workopolis. (2016, December 22). How GE replaced a 40-year-old performance review system – Workopolis Hiring. Workopolis Hiring. Retrieved from https://hiring.workopolis.com/article/ge-replaced-40-year-old-performancereview-system/

BUS FPX 3040 Assessment 2 Performance Management and Training