1. Performance Management There are many factors which create disruption to the existing performance management methodologies with rapid changes being.

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2 1. Performance Management There are many factors which create disruption to the existing performance management methodologies with rapid changes being adopted by many global organizations going from performance management to performance development. Gallup’s recent research indicates clearly that current performance management systems aren’t yielding the Return On Investment (ROI) they planned to have. Many large organizations spend thousands of hours resulting to millions of dollars in performance activities which have vague results and do not go along with top talents nor redevelop their potential leadership poll to higher levels of performance enhanced to more measurable contributors to the organizations. Gallup also indicates to their research that only one in five employees strongly agrees that their company's performance systems motivates them.

3 2. Current Performance Management Systems Many global industries such Accenture, Adobe, General Electric, Google, Microsoft have already started to change their traditional performance evaluation systems with new methodologies which will contribute more measurable strategic results to the organizations. Research indicates that in America employees who are actively disengaged may be costing the economy over 1 trillion per year. The cost of lost times spent on traditional performance evaluation may range from 2 million to 30 million dollars per year for a company with approximately 7 to 8 thousand employees. Accenture senior management has estimated that will be spending 2 million hours per year on performance evaluation.

4 Furthermore many managers assure that employees who performing well in certain tasks could also be a point of reference of good performance in other tasks. Although the purpose of performance management is to improve performance. Traditional approaches have consistently failed to achieve this goal. As a result many companies are abandoning traditional approaches and seek to make improvement for methods with high degree of frequency, great accuracy and greater predictability. Only 2 in 10 employees strongly agree that their performance is managed in a way that motivates them to do outstanding work. Many short flaws of performance evaluation are based on the fact that there are many subjective judgments of managers, who like many other persons are usually more inclined to like people who are similar to themselves. Therefore many of them may have positive evaluation to employees with work style personality or background that is similar to their own.

5 3. Forced Rankings Include many disadvantages depending on multiple teams working within an organization. Whereby a good performer could rank relatively low on an outstanding team, while that same performer could rank high on a lower performing team. Rankings can induce competition among teammates. Many organizations historically have been using performance evaluations which include ratings, rankings, goals or objectives. This method has helped them for many years to define performance expectation and track progress consistently for their organization. Nevertheless pass performance of a manager may not be a strong or a valid indicator for future performance. The outcome is that performance evaluations have little effect for inspiring employees to achieve better long-term performance.

6 *Gallup, Rogel, Pulakos, Rafter, Armstrong & Baron Only 29% of employees strongly agree that the performance reviews they receive are fair, and 26% strongly agree they are accurate. Only 29% of employees strongly agree that the performance reviews they receive are fair, and 26% strongly agree they are accurate. Therefore performance evolution have reached the point in becoming a methodology linked to pay incentives and promotional decisions. The hard fact is that annuals review’s reputation for being inaccurate and unfair is in the heart of employees simulated with negative feeling for this approach. When employees see their work minimized to a single number that describes their performance, whether it is a rating or a ranking, their focus shifts from how to improve their performance to whether their manager is qualified to judge their performance*.

7 So far the results are very disappointing and in most cases employees feel disengaged because of infrequent feedback, lack of clarity, manager bias, adverse reactions to evaluation and feedback, and too much focus on pay incentives. *Reference: Gallup, Rogel, Pulakos, Rafter, Armstrong & Baron, More than 75% of employees and managers receive an annual performance review and even less than once a year. In contrast the new emergent work environment an organization needs is that most significant need is to have more frequent feedback on how to improve individual team performance to higher levels.

8 5. The need for a change In summary, because of the inherent bias in performance ratings and rankings, infrequency of feedback, and employees’ adverse reactions to the evaluation process, traditional performance reviews tend to demotivate employees. Managers develop these reviews using insufficient information and processes, which creates uncomfortable — if not seemingly threatening — personal conversations and interactions that do not teach or inspire employees to continually improve. Emerging workplace expectations are changing very rapidly Gallup in one of their global services have identify how future workplaces will be shaped.

9 THE PASTOUR FUTURE My Paycheck My Purpose My SatisfactionMy Development My BossMy Coach My Annual ReviewMy Ongoing Feedback My WeaknessesMy Strengths My JobMy Life WHAT FUTURE WORKPLACES WANT AND NEED TO ADAPT WHAT FUTURE WORKPLACES WANT AND NEED TO ADAPT Employees expect to have from their managers job clarity, extraordinary leadership qualities, ongoing feedback and communications, opportunities to learn and grow and opportunities of job enrichment.

10 At this stage one should that what employees want from their managers differs significantly from what they receive in traditional performance reviews. The emerging new leadership especially leadership which benchmark at extraordinary level have a key responsibility to guide and inspire employee performance and introduce an initiate shift from performance management to performance development. This is indeed a new cultural shift especially when is strength based. Challenging leaders to think and act as coach and not as boss. *Reference: Gallup, Rogel, Pulakos, Rafter, Armstrong & Baron, This approach precipitates that they: 1.establish expectations 2.create accountability 3.continually coach This approach precipitates that they: 1.establish expectations 2.create accountability 3.continually coach

11 *Locke & Latham Employees who clearly know what is expected of them research indicates that they can be 2.5 times more likely to be engaged than other employees. Equally employees who are highly aware that they can link their individual goals to the organization’s goals are more motivated comparatively to others and almost 3.5 times likely to be engaged in achieving their goals. The truth of the matter however is that research* indicated that only 26 % of employees strongly agree that their manager continually helps them clarify priorities*. Employees increasingly are asking and in many cases demand to have a clear understanding of their company’s strategy. The faster the strategy is been disseminating within the organization in a meaningful and bases on an advisory capacity form leaders to their teams the highest the engagement of employees and certainly the higher the possibility of attend their individuals goals which are linked to the company's strategy.

12 * Harvard Business Review, ZENGER FOLKMAN Articles: 1. The trickle down effect of good and bad leadership. 2. How to improve at work when you’re not receiving feedback. 3. How age and gender affect self-improvement. 4. People who think they are great coaches they often aren’t. 6. Leadership Coaching* Leadership coaching should have a solid approach on high frequency, be focused and future oriented. The higher the frequency of this method the higher the levels of engagement and this is a result f employees receiving meaningful feedback be motivated of doing an outstanding work. Certainly this employees will have a higher levels of engagement in attaining their goals versus other employees. Leadership the overall amount of feedback that employees receive from their managers turns to be not effective and it needs much improvement. And the need to introduce to business managers to leadership coaching of paramount importance to achieve in speed of execution combine with quality of outcome, continuous motivation, minimizing fears of employees if their approach is strength based achieving operational excellence of the organization which will impact positively strategic results of the company.

13 ONLY 20% of employees strongly agree that they have recently talked with their manager about steps to reach their goals in the past six months. ONLY 20% of employees strongly agree that they have recently talked with their manager about steps to reach their goals in the past six months. Employees who strongly agree that their manager holds them accountable for their performance are 2.5 times more likely to be engaged. 19%of employees strongly agree that their manager recently reviewed their greatest successes, and those who do strongly agree are 3.8 times more likely to be engaged. ONLY 14% of employees strongly agree that the performance reviews they receive inspire them to improve. ONLY 14% of employees strongly agree that the performance reviews they receive inspire them to improve. Gallup research indicated that on average only 3 in 10 employees agree that there is someone it work who encourages their development. When this figure increases from 6 to10 employees employee retention by at least 28% and customer satisfaction by 5%.

14 ONLY 4 in 10 employees strongly agree they have had opportunities at work to learn and grow. When this number jumps to 8 in 10 employees, productivity increases by 41% and employee retention increases by 44%. The most recent development is that extraordinary leadership has a direct impact on employee engagement. The analysis indicates that teams scoring in the top quartile of engagement tend to outperform teams scoring in the bottom quartile. This shows clearly that the higher engagement the greater profitability.

15 6. Based on researches