Question

During the 2016 holiday season, you may have participated in Domino’s retweet-to-donate campaign to benefit St. Jude Children’s Research Hospital. Domino’s raised a record-setting $7.3 million for St. Jude’s in 2016, adding to the over $31 million since 2004.

St. Jude works to save children by finding cures for catastrophic illnesses through research and treatment. St. Jude currently has more than 7,500 patients annually for clinical visits or admission as a patient to one of the hospital's 78 beds. The managers and employees at St. Jude have worked hard to build America's third largest health care charity, where "no one pays for treatment beyond what is covered by insurance, and those without insurance are never asked to pay." The leaders of St. Jude believe that the effective use of donations and the reputation of St. Jude depend very much on the performance of each and every employee.

However, after experiencing tremendous growth in the 1990s, St. Jude began to suffer several performance problems, many of which were traced to employees' performance evaluations. Managers only used the top two rating categories when evaluating their subordinates' performance, virtually ignoring the bottom three categories. As a result, all employees appeared to be exceeding performance standards, and the rating system could not identify areas in need of improvement or separate high from low performers.

The performance rating system also did not distinguish between different job types. St. Jude has varied employees, such as academics, nurses, accountants, human resources and public relations personnel, who all perform different tasks in different contexts. The evaluation system was not flexible enough to tailor feedback to each employee.

In response to these problems, St. Jude began working with a consulting firm to develop an improved performance management system. To develop the new system, hundreds of employees across different job levels and functional areas gave input. The system's components now include documentation of performance goals for each employee within specific jobs and a roadmap for how to accomplish these goals. Supervisors and subordinates are encouraged to communicate about goals throughout the year. Although instituting the new system was not easy, the effort was worthwhile. Improved employee performance translates into better usage of donated funds — all of which are necessary to save lives.

St. Jude performance appraisals now evaluate behaviors tailored to a particular job type. A major benefit of this change is

• more informative feedback to employees.

• easier forced ranking of employees.

• easier control of employee behaviors.

• higher citizenship behavior.

• lower counterproductive behavior.

St. Jude appears to now use an MBO appraisal method by evaluating employees based on

• specific performance behaviors.

• feedback from peers, subordinates, and supervisors.

• individualized performance goals.

• ranking versus others in their job type.

• a “performance multiplier” system.

Answer 1

Hey!

Ans 1: St Jude appraisals now evaluate behaviors tailored to a particular job type. A major benefit of this change

a. more informative feedback to the employees.

Explanation: Each employee has been given clear goals and objectives. The employees are given a road map on how to achieve the goals. The supervisor will be sharing feedback with employees. The supervisor and subordinates were communicating regularly on how to match the goals. The employees are evaluated against the goals. The supervisors give feedback regularly throughout the year.

Ans 2: C: Individualized performance goals

Explanation: each employee was given specific job-related goals.   The supervisor and subordinate define ways to achieve the goals. The employee goals match the goals of the organization. The employee is rewarded for achieving the goals.      

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