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1.0 INTRODUCTION................................................................................................................1
2.0 REVIEW OF ADOBES PERFORMANCE MANAGEMENT SYSTEM AND REWARD
STRATEGY...............................................................................................................................3
2.1 PERFORMANCE APPRAISAL......................................................................................3
2.2 REWARD STRATEGY....................................................................................................4
2.2.1 SALARY INCREASE...............................................................................................4
3.0 EVALUATION OF ITS APPROPRIATENESS AND EFFECTIVENESS FOR REWARD
STRATEGY AND PERFORMANCE APPRAISAL SYSTEM................................................6
4.0 RECOMMENDATION........................................................................................................7
5.0 CONCLUSION....................................................................................................................8
6.0 REFERENCES.....................................................................................................................9
APPENDIX A: ADOBES FINANCIAL REPORTS FOR FISCAL YEAR 2014..................11
APPENDIX B: ADOBES TWO-SIDED REWARDS LEARNING REFERENCE CARD
(LRC).......................................................................................................................................15
BM036-3.5-3-MPPM
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Vinod Kumar (TP033584)
1.0 INTRODUCTION
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where they had a steady growth since 2008 in terms of annual revenues made (see Appendix
A for more financial information).
Adobe is currently one of the leading company in Software Industry with its vast innovation
in creative software development, as well as retaining itself as one of the 100 best companies
to work for by Fortune magazine (Fortune.com).
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Last but not least, check-in is an open conversation between managers and employees, where
it reduces the employees perceived unfairness in the performance appraisal procedures that
may faced earlier with traditional performance appraisal, which according to Ann Rowland
and David Hall (2013) weakens the commitment and contribution of employees. Therefore
with check-in system employees have built more trust and commitment towards the company
and its goals.
2.2 REWARD STRATEGY
Rewards and performance appraisal have an interconnected relation, where performance
based rewards are an essential component of the reward system, whether these can be
extrinsic (pay raises, bonuses, and benefits) or intrinsic (training and development) in nature
that motivates employee and impact the performance level and job satisfaction of an
employee (Chomal and Baruah, 2014).
Therefore when Adobe abolished their traditional annual performance appraisal system with
new check-in system, it became obvious that managers would also need to change their way
to make decisions about employee rewards.
As the result Adobe had created a two-sided Rewards Learning Reference Card (LRC). LRC
is a quick-reference guide for managers where the front part of LRC is about making reward
decisions and the back part are ideas given on how to conduct rewards conversations with
employees (Hci.org, 2013) (see Appendix B for LRC sample).
According to LRC, managers will reward employees in two ways; 1) Salary Increase and 2)
Bonus and/or Company Equity.
2.2.1 SALARY INCREASE
Salary increment will be provided to those employees who had meet the certain expectations
such as, by successfully accomplished the companys goal. Other than that employees
relationship with their colleagues are taken into consideration in this matter because Adobe
encourages a more collectivist environment rather than individualistic. Finally their salary
range in relation to their peers are noted as well, because Adobe practice a fair play in order
to eliminate unnecessary misunderstanding and dilemmas among the employees.
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contribution. Therefore Adobe is intelligently using its reward strategy to enhance their
performance management to a greater extend.
4.0 RECOMMENDATION
Although check-in is an appropriate system, it still has some traditional context where it is
still based on managers valuation which limits the feedback viewpoint of an employee.
Therefore it should be improved with 360 performance appraisal where it receives feedback
from all perspectives such as employees, manager, customers and other stakeholders (Banu
and Umamaheswari, 2009). Thus forming a frequent feedback from every angle will improve
the performance of an employee as well as it allows managers to identify even a minor flaw
in employees performance and helps them to overcome it.
Rewards should be more focused on what is expected from employees, since Adobes have
been practice a basic monetary benefits, however some employees might be interested in
intrinsic rewards rather than extrinsic rewards, where they want training and internal
satisfaction. Spears and Parker (2012) proclaims employees satisfaction can be enriched by
having a system which have enhanced training programs joint with effective feedback.
Through this Adobe can reduce turnover costs by using training and performance appraisal
practises to rise employees satisfaction and commitment towards the companys goal.
The prime objectives of performance appraisal is to improvise the employees performance
and commitment towards the organisations success, therefore it is necessary for Adobe to
build a more
employees. Zhang and Begley (2011) have stated that power distance influences the
empowerment and team participation of employees, where both are essential to innovative
performance in R&D companies, therefore reducing the power distance and by building a
friendlier environment will gradually improvise the performance of an employee. Adding to
this Adobe should also give a better opportunity for the exceptional performer with high
promotions and appreciations, which motivates employees to engage better in performance
management system.
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5.0 CONCLUSION
The overall conclusion made from this assignment, is that performance management system
and reward strategy are highly connected as well as both plays a major role in improvising
and motivating an employees performance. From analysing Adobes new check-in appraisal
system along with its reward strategy, it became clear of the earlier statement. By improving
the performance appraisal system from yearly once to frequent feedback we can have a more
effective and efficient results that increases the productivity and quality of an employee.
Where with frequent evaluation employees are getting better idea of their work and able to
reduce their mistakes from their managers feedback. Furthermore a good training comes with
effective performance evaluation can gradually motivates an employee and makes him/her
progressive in their next assignments. As it comes to rewards, it should work together with
performance management system, because rewards can only be given based on the
evaluation, and rewards are the tools used by managers to motivate employees so that they
can perform accordingly with the performance management system. Other than that rewards
can also be used to influence employees to work according the companys core value, as we
see from Adobe where they provide salary increment for those who had more collectivist
behaviour which Adobe believes is necessary for the growth of the company. Therefore with
an effective performance appraisal system and reward strategy we can improve an
employees commitment, contribution and performance towards achieving the companys
goal.
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6.0 REFERENCES
Adobe.com, (2015). Locations | Adobe - Career opportunities. [online] Available at:
http://www.adobe.com/careers/locations.html [Accessed 18 Feb. 2015].
Ann Rowland, C. and David Hall, R. (2013). Perceived unfairness in appraisal: engagement
and sustainable organizational performance. EuroMed Journal of Business, 8(3),
pp.195-208.
Baer, D. (2014). Why Adobe Abolished The Annual Performance Review And You Should,
Too.
[online]
Business
Insider
Australia.
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at:
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to
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J.,
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attitudes. Personnel
and
Blubaugh,
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ESOPs
and
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Giumetti, G., Schroeder, A. and Switzer, F. (2015). Forced distribution rating systems: When
does rank and yank lead to adverse impact?. Journal of Applied Psychology, 100(1),
pp.180-193.
Hci.org, (2013). Adobes Check-in Framework: Rewards Learning Reference Card - Human
Capital Institute. [online] Available at: http://www.hci.org/lib/adobe-s-checkframework-rewards-learning-reference-card [Accessed 20 Feb. 2015].
Kalman, F. (2015). Adobe Checks in With Performance Conversations. [online]
Talentmgt.com. Available at: http://www.talentmgt.com/articles/6719-adobe-checkins [Accessed 17 Feb. 2015].
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