We’re pleased to congratulate Ed Lawler, Distinguished Professor at the Marshall School of Business at the University of Southern California! The Academy of Management recently awarded Dr. Lawler both the Herbert Heneman Jr. Award for Career Achievement for his impact in the field of human resources management and the Research Center Impact Award for his work with the USC Center for Effective Organizations, of which he is the founder and director.
In honor of this award, you can read Dr. Lawler’s article which appeared in Compensation and Benefits Review entitled “What Makes Performance Appraisals Effective?” free for the next two weeks! The article was coauthored with George S. Benson of University of Texas at Arlington and Michael McDermott of McDermott Sitzman & Associates, PC.
Performance appraisals are often criticized and poorly done. However, they are not going away and should not go away. They are needed to effectively manage an organization’s talent. Our research suggests that performance management systems can be effective if they are designed and executed correctly. Performance management systems are effective when they are based on goals that are jointly set and are driven by an organization’s business strategy. The use of competency models that are based on business strategy is strongly associated with organizational effectiveness. When they drive salary increases and bonuses, they are executed better. Often absent but critical to the success of performance management systems is senior management leadership and ownership; much less important is ownership by human resources. Additional keys to effectiveness are training managers to do appraisals, holding them accountable for how well they do appraisals and using measures of how results are achieved.
You can click here to read “What Makes Performance Appraisals Effective?” from Compensation and Benefits Review. Want to know about all the latest research from Compensation and Benefits Review? Click here to sign up for e-alerts!