Xerox_Appraisal_System

Xerox_Appraisal_System - XEROX CHANGES PERFORMANCE...

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1 XEROX CHANGES PERFORMANCE APPRAISAL SYSTEM Xerox corporation was faced a problem - its employee performance appraisal system was not working. Rather than motivating the employees, its system was leaving them discouraged and disgruntled. Xerox recognized this problem and developed a new system to eliminate it. THE OLD SYSTEM The original system used by Xerox encompassed seven main principles: 1. The appraisal occurred once a year. 2. It required employees to document their accomplishments 3. The manager would assess these accomplishments in writing and assign numerical ratings. 4. The appraisal included a summary written appraisal and a rating from 1 (unsatisfactory) to 5 (exceptional). 5. The ratings were on a forced distribution, controlled at the 3 level or below. 6. Merit (salary) increases were tied to the summary rating level. 7. Merit increase information and performance appraisals occurred in one session. This system resulted in inequitable ratings and was cited by employees as a major source of dissatisfaction. In fact, the Reprographic Business Group (RBG), Xerox' s main copier division, reported that 95% of its employees received either a 3 or 4 on their appraisal. Merit raises for people in these two groups only varied by 1 or 2 percent. Essentially,
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This note was uploaded on 09/05/2011 for the course ECO 103 taught by Professor Mary during the Spring '11 term at FH Joanneum.

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Xerox_Appraisal_System - XEROX CHANGES PERFORMANCE...

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