Evaluation Makeovers

The traditional job performance evaluation process is getting a much needed makeover. Some organizations divide talent into three groups--a top 20%, a middle 70% and a bottom 10%, many of whom get shown the door. Company's like GE, Yahoo! and American Airlines are realizing this system may not work for encouraging innovation. They want to use a system that rewards risk-taking and helps people become more comfortable with failure. GE managers were for the first time evaluated on traits such as imagination and external focus that represent the company's goals.

 

Read the full article: in the January 9, 2006 Business Week Magazine (www.businessweek.com) titled The Struggle to Measure Performance.

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