Theyll probably recall their absolute favorites and

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mayonnaise formulas on a table and ask people to rate each one, chances are pretty good they’ll make some big errors. They’ll probably recall their absolute favorites and the recipes that made them sick. But what about all the recipes in the middle? Are you confident your tasters will correctly rank formulas three through seven—none of which made a dramatic impression, but each of which has its unique qualities? No Excuses Management 20 of 28 6/14/2018, 2:27 AM
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How Cypress Awards Raises This condensed report shows how a focal-group leader awards raises among eight SRAM product engineers. The ranking committee rated engineer DD higher than FF, so the group leader awarded DD a larger merit increase. However, the computer’s equity analysis showed that DD was overpaid by $5,500 relative to his peers, while FF was underpaid by $3,600. As a result of equity adjustments, DD received a lower raise than FF. This same problem afflicts performance appraisal. It’s not too hard to identify the two outstanding performers and the two laggards in a group of ten employees. But to the people in the middle, there’s a big difference between being ranked fourth and seventh—and managers can badly muff these rankings. That’s why our system forces comparisons between pairs that leave little room for error. Consider a ten-person focal group with members A through J. The ranking committee’s job is to review every possible two-employee comparison and determine who was the superior performer for the year: Has A performed better than B? Has A performed better than C? Has B performed better than C? And so on. The software records the outcome of each comparison and develops relative rankings as the basis for merit increases. No confusion, no mistakes, no mayonnaise effect. These rankings become the basis of merit increases decided by the focal-group leader, the senior member of the ranking committee. (The focal-group leader alone is chartered to divide up the raise budget once the rankings are completed.) And merit means merit. The software reviews the ranking committee’s No Excuses Management 21 of 28 6/14/2018, 2:27 AM
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February 24, 1988 To: Vice Presidents and Managers From: T.J. Rodgers I have not been called on to save a valued employee for some time. Last week, I became involved in two such situations—both were individual judgments and recommends appropriate merit increases. At this point in the process, no salaries have been disclosed—everything is expressed in percentages. The computer uses a pure and uncomplicated process to assign a certain percentage raise for a certain ranking. The leader can make adjustments to these recommendations, but the software checks to make sure the final numbers comply with several principles. There are 20 quality checks in all, including these: Monotonic distribution. Any group member ranked higher than another must receive a higher merit raise. This check prevents managers from taking money away from a top performer who happens to be highly paid and giving it to a weak performer.
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  • Spring '12
  • DirkJenter
  • Finance, Management, vice president, Vice President of the United States, Excuses Management

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