Case analysis

Banishing performance ratings at iQmetrix

Working Group O2

20F322 - Gursheen Kaur

20F328 - Jay Narendra Gagnani

20F329 – Kavya Gupta

20F344 – Ravi Ranjan

20F348 – Shashank Shekhar

a) Identification of issue/ objective/problem

IQmetrix had a decentralized and a flat-decision making structure in which the employees had access to
information, autonomy and authority to make decision. The founders of the company wanted to build
an organization in which people could flourish and be creative. Hence, they called this type of
organizational structure as “Ultimate organization”. But with growth and expansion of the company, the
pressure of formalization and centralization increased. The protagonist, Jessica Taplow, head of people
and culture, found a middle ground for their organizational design, that is Holacratic organizational
design. The structure created an organization with simple rules for recognizing, articulating and creating
task. In this, tasks were divided, and teams were created called “Circles”. After the completion of the
task, the teams formed were disband. Now, the objective for Jessica is to find an appropriate model to
measure the performance of the employees in this new organizational design. She identified 3 different
types of performance assessments required and created 4 models based on them. After the collection of
data on the implementation of 4 different models in different parts of organization, Jessica must finalize
which system should be rolled out in the organization.

b) Identification of factors and necessary strategies which affect the problem

SWOT Strategies

OPPORTUNITIES THREATS
 STRENGTHS The well developed and efficiently Workplace diversity can help the
integrated IT infrastructure IQMetrix organization to take globalization as an
can allow organization to take opportunity instead of threat due to high
advantage of emerging innovative cross-sectional intelligence.
technologies.
Holacracy IQMetrix approach to use two
Its geographical presence in various approaches- building upon present
regions can help organization to target strengths or analyze the trend and build
geographically dispersed customer processes to two prolonged market
base. penetration approach.

WEAKNESSES Project management practices can be All the environmental factors can be
improved to exploit opportunities considered as threat as they could affect
offered by emerging market segments. the efficiency and effectiveness of the
organization in the long run.
Building strategies based on customer-
oriented product development and
marketing approach.

c) Using concepts to reach at the solution or decision in the case

The four models used for performance assessment were traditional rating model with graphic rating
scale, Rating system, relative rating model and qualitative feedback. In the assessment using graphic
scale the employees were given score from 1-5 based on some behavioral dimensions. In rating system
and relative rating model the employees are given rating on some specific parameters.

These 3 systems do not provide the employees with a proper feedback on which one can improve upon.
They employees can even feel demotivated on being ranked or scored. The Qualitative method will not
have any biases and there will be clarity on what basis everyone is measurement. Hence, the qualitative
method of assessment should be used.

d) Action plan recommended to implement the solution/decision

The company IQ Metrix should implement Qualitative feedback model for performance management

The action plan to be followed can be –

1. Set clear and feasible goals for each employee beforehand.

2. Spread major goals throughout the year and include checkpoints periodically to help stay on
track.
3. Inform the employees about the clear pathway which can be followed to achieve those goals
4. Inform the employees about the deadlines and the evaluation parameters.
5. Promote an open-door policy so that employees can anytime discuss about their tasks at hand
and problems faced with the managers.
6. Conduct feedback sessions at regular intervals to inform the employees about the drawbacks
and areas to improve. This can be done via feedback platforms.
 7. Conduct a thorough face to face feedback after every quarter, to inform the employees about
their effort and future actions oriented towards their goals.
8. A 360-degree feedback for overall development of the employees

e) Exhaustive list of possible options with justification to why they should or should not be
adopted
Absolute rating models – 1 (Graphic Rating Scale)

Graphic rating scale lists the traits each employee should have and rates workers on a numbered scale
for each trait.

Pro-

 The scores are meant to separate employees into tiers of performers, which can play a role in
determining promotions and salary adjustments.
 The method is easy to understand and quite user friendly.
 It allows behaviors to be quantified making appraisal system much easier.

Con

 Even with intense training, some evaluators can have a tendency of confirmation bias. Some will
be too lenient, and others may find it hard to screen out their personal agendas.
 Although it is good at identifying the best and poorest of employees, it does not help while
differentiating between the average employees.

Absolute rating model – (9 box grid)

The nine-box method provides a framework to assess each employee in a similar way and it can be
effective if it’s used correctly.

Pro:

 This method helps identify potential future leaders in your organization so that you are being
strategic with succession planning.
 It can help focus attention on low performers who might not be in the right role or need
additional training or mentorship to perform at the expected level.

Con:

 Just because someone is a high performer with their job duties, doesn’t automatically mean
they have the management acumen to take on a future leadership role. That individual may also
not have any interest in taking that career path. Hence it creates a deception in terms of
leadership skills

Relative rating model - (RPM model)

It was based on relative percentile method. Modern social comparative rating method that asked
managers to assign percentile scores to each employee’s performance across a set of performance
dimensions. The rating was made in reference to performance of employee’s peers both within and
outside company.

Pro -

 The employees were told pre hand about the performance dimensions to be evaluated. Hence,
the method was a very open and un biased way of evaluation
 A modern method to keep up with the industry practices

Con -

 Employees are compared on some unclear standards, that is different supervisors will have
different perception of metrics used.
 Comparison with outside employees can create unnecessary pressure among employees.
 Assigning scores to actions can promote a selfish culture in the company and can also
demotivate the employees

Qualitative feedback

Used only because of emerging trend in HR community. Because of abandonment in scoring in

performance management system.

Pro

 No scores and numbers used as feedback. Hence no unnecessary pressure and competition
among employees
 Qualitative feedback would encourage high level of engagement and improve overall job
performance
 Positive feedback can promote employees towards improvement and reduce the stress rather
than discouraging them.
 Honest and growth-oriented conversation between manager and employee can set goals
aligned with employee’s career interest.
 Companies like Infosys, IBM and Accenture have promoted this method. Infosys has introduced
a new platform called iCount for qualitative feedback.

Con -

 The performance measurement parameter are not clearly defined, which can create a rift
between the manager and employees at the time of promotion