Al Maddi Insurance knew there were problems with its performance management system and went ahead and hired a consultant to examine the system a report, detailing the situation and making recommendations for improvement.
When consultant submitted the report, the Human Resources Department was dismayed at the findings:
1. Each employee's performance appraisal showed little change from the previous year; poor performs rated poor year in and year out.
2. The majority of the appraisal were not initialed by the employee, even though company policy required managers and employees to do so after discussed their review.
3. Of the small number of employees who initialed the evaluations, several indicated that they believed the work standards were irrelevant and unfair.
4. Nearly all past employees who were contacted revealed that performance feedback had been too infrequent to be of any value.
5. The majority of employees complained about the lack of advancement opportunities since Al Maddi Insurance filled most job vacancies externally; employees were never told they were unpromotable.
What do you think these findings are telling al maddi about its management performance system?
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