Category Archives: Career Assessment

Career Assessment

Do Unintended Consequences of Forced-Ranking of Employee Performance Outweigh their Short-Term Benefits?

Forced ranking (“stack ranking” or “rank and yank”) of employee performance was one contribution to MSFT’s loss of momentum, according to Kurt Eichenwald’s article on How Microsoft lost its Mojo. 

His extensive interviews with current and past Microsoft employees point to forced rankings leading to:

  •     Competitive sabotage and undermining of peers
  •     Focus on short-term results that coincide with twice-yearly rankings
  •     Undermined intrinsic motivation in face of  “impossible”-seeming odds
  •     Reduced innovation
  •     Lack of collaboration
  •     Focus on “visibility” to managers’ peers instead of improving performance
  •     Misguided decisions
  •     Mistrust of management and colleagues
  •     Unwanted attrition
  •     Stress for all.Forced ranking systems, used by a substantial number of Fortune 500 companies, is the eighth most-frequently used appraisal technique in the U.S.

It requires management teams to evaluate employees’ performance against other employees, rather against pre-determined standards.
The goal is to create a meritocracy in which superior performance is recognized and under-performance is “managed.”

Steve Scullen

Steve Scullen evaluated “forced distribution rating system” (FDRS) in a simulation study of 100 companies of 100 employees each over a three year period.
He reported in Personnel Journal that forced ranking and hypothetically firing of the bottom 5% or 10%, resulted in a 16% productivity improvement.
Productivity gains increase when more low performers were removed.

He acknowledged the negative consequences of forced rankings for employee morale, teamwork, collaboration, recruitment, shareholder perception, and brand image.
Nevertheless, Scullen found that the potential problems were counterbalanced by benefits.

Scullen determined that most benefit from forced ranking comes in the first few years of implementation: “…each time a company improves its workforce by replacing an employee with a new hire, it becomes more difficult to do so again… the better the workforce is, the more difficult it must be to hire applicants who are superior to the current employees who would be fired.

Dick Grote’s Forced Ranking: Making Performance Management Work, argues that most companies achieve benefits of forced ranking systems in “a few years” and are advised to replace
forced ranking with other talent management initiatives after the organization has implemented a refined selection process to ensure hiring top talent.

Peter Capelli

Peter Cappelli of The Wharton School and author of Talent on Demand: Managing Talent in an Age of Uncertainty, quantified the benefit of removing low performers:  This group contributes about five times less to organizations than high performers, according to his research.

In contrast, Alys Woodward of IDC challenged these arguments in her article on misunderstanding and misuse of statistics in stack ranking.

Alys Woodward

She concluded that “stack ranking assumes the statistics dictate reality, rather than reflect reality.”

Likewise, W. Edwards Deming opposed ranking because he thought that it destroys pride in workmanship, and opined that “the only way to improve a product or service is for management to improve the system that creates that product or service. Rewarding or punishing individuals trapped in the system is pointless and counterproductive.”

W. Edwards Deming

Robert Mathis and John Jackson pointed out potential legal challenges to stack-ranking.
They note that the practice may be difficult to defend in a court test because it does not comply with the following legal criteria:

  •     Criteria based on job analysis
  •     Absence of disparate impact and evidence of validity
  •     Formal evaluation criteria that limit managerial discretion
  •     Rating linked to job duties and responsibilities
  •     Documentation of appraisal activities
  •     Prevents action from controlling employee’s career
  •     Counseling to help poor performers improve

Though most employees do not seek out employers who use stack ranking, organizations may realize a short-term benefit in streamlining the workforce.
However, the practice may have unintended “soft” consequences, legal challenges, and time-limited value.

-*What positive and negative impacts have you observed related to forced-ranking appraisal systems?

Twitter:  @kathrynwelds
Facebook Notes:

 

©Kathryn Welds

Advertisements

Developing “Big 8” Job Competencies

George Hallenbeck

George Hallenbeck

Better job performance is associated with eight capabilities known as “The Big 8”, according to Korn-Ferry International’s George Hallenbeck, in the Leadership Architect® Library of Competencies:

• Dealing with Ambiguity,
• Creativity,
• Innovation Management,
• Strategic Agility,
• Planning,
• Motivating Others,
• Building Effective Teams,
• Managing Vision & Purpose.

He analyzed more than 1500 ratings on this 360 degree assessment, and found that just 12% of executives possessed four or more of “The Big 8.”
None of these organizational leaders demonstrated more than six of these competencies, though they consistently showed more than individual contributors.
This suggests that although executives demonstrate more of critical leadership capabilities than non-leaders, the vast majority have significant room for professional development.

Daniel GolemanExecutives and individual contributors who had more of “The Big 8” competencies also had more of “Career Staller and Stopper” behaviors.
Bold individuals who demonstrate persistance may effectively execute, but may run afoul of key stakeholders and influencers.

Self-Awareness and Self-Management, identified in Daniel Goleman’s framework for Emotional Intelligence, may be a key to balancing between the Big 8’s performance enhancing impacts while mitigating their potential drawbacks in stalling careers.

-*What have you found the most important job competences among organizational leaders and those preparing for future leadership roles?

Related Posts:

Twitter: @kathrynwelds
Facebook Notes:

©Kathryn Welds

Developing Executive Self Awareness to Enhance Leadership Impact

Vicki Swisher

Lack of self-awareness among organizational leaders is pervasive and costly, according to Korn Ferry’s Vicky Swisher and Evelyn Orr.
They studied executives using the FYI: For Your Insight assessment tool, based on research from FYI for Insight: 21 Leadership Characteristics for Success and 5 That Will Get You Fired.

Evelyn Orr

Evelyn Orr

Executives’ most significant blind spots were:

• Making tough people calls,
• Demonstrating personal flexibility, adapting approaches to new circumstances.

Similarly,  the top leadership problems were:
• Not inspiring employees, not building talent,
• “Too narrow”, relying on deep expertise without broadening perspective.

Leaders vastly underestimated their effectiveness in “managing up”, suggesting that they focused more on their next promotion, rather than on developing their employees.

Joe Luft

Joe Luft

Lack of self-awareness can be reduced by using a “Reality Check” including:

o Feedback from others to provide “early warning” of difficulty.
However, this requires that evaluators are willing to provide candid observations, despite widespread discomfort in providing corrective feedback.

o Self-reflection concerning effective and ineffective behaviors, documented in a personal journal for review.

Harry Ingham

Harry Ingham

Executives learned most to enhance leadership skills and self-reflection from on-the-job experiences, distantly followed by learning from other people.
Structured trainings are least effective and most costly approaches to enhance leadership cognitive, emotional, motivational, self-awareness, and learning agility capabilities.

These leadership development processes reduce individual blind spots, portrayed by San Francisco State University’s Joe Luft and Harry Ingham of National Training Labs in The JoHari Windowjohari-window

Korn Ferry’s Michael M. Lombardo and Robert W. Eichinger provided additional executive development recommendations based on research in FYI: For your Improvement, A Development and Coaching Guide(3rd Edition).

-*How do you increase your self-awareness at work and reduce your “blind spots” about yourself and others?

Twitter: @kathrynwelds
Google+:
Facebook Notes

©Kathryn Welds

Four Career Trajectories: Linear, Expert, Spiral, Transitory

Kenneth Brousseau

Kenneth Brousseau

Successful careers can follow forms other than “up or out,” according to Decision Dynamics’ Kenneth Brousseau, Michael Driver of USC, with Lund University’s Kristina Eneroth, and Rikard Larsson.

Their “pluralistic career concept framework” classified careers as:

Four Career Concepts

Four Career Concepts

LinearTraditional upward movement, with variable job role tenure, and motivated by power and achievement.

Behavioral competencies include leadership, competitiveness, cost-efficiency, logistics management, profit orientation.

This career concept is most seen in tall hierarchies with a narrow span of control.

Michael Driver

Michael Driver

Expert – Little movement and long role tenure due to deepening expertise in a narrow discipline.

Motives include mastery, expertise, and security.
Meaningful rewards are continued training, benefits, recognition.

Competencies are quality, commitment, reliability, technical competence, stability orientation.
This career concept is well-matched to flat functional organizations.

Career Motives, Competencies

Career Motives, Competencies

SpiralLateral movement to broaden functional exposure, with seven to ten year tenure in roles.

Motivated by personal growth, creativity, and suited to matrix organizations with cross-functional teams, this pattern is seen in loose, temporary team structures.

Rewards include cross-functional lateral assignments and training.
Key competencies include creativity, teamwork, skill diversity, lateral coordination, people development.

Transitory – Lateral moves with three to five year tenures are motivated by desire for variety, independence.
Most often found in temporary team structures, behavioral skills include speed, networking, adaptability, fast learning, project focus.
Meaningful rewards are job rotation, temporary assignments, immediate cash bonuses.

This team’s research was distilled into assessment tools focused on career “fit” with an organization’s structure and objectives.

Timothy Butler

Timothy Butler

A similar emphasis on cultural fit is found in CareerLeader Inventory, based on Timothy Butler and James Waldroop’s research at Harvard Business School.

James Waldroop

James Waldroop

-*Which of the four career trajectories seems most like yours?

-*Which career assessment tools have you found most useful to determine your skills, interests, and best-fit organizational context?

Twitter: @kathryn.welds
Facebook

©Kathryn Welds

Three Approaches to Identifying a Career Path

-*What’s the best way to find your professional path?

Mark Savickas

Mark Savickas

Career interventions have evolved over the past 70 years from individual differences assessment to occupational development to current emphasis on life planning.
Vocational guidance was supplanted by “career education,” focused on fulfilling developmental tasks and adapting to occupational requirements.
More recently, “career counseling” built on the preceding approaches by considering each individual as the designer and author of a career path.

Mark Savickas of Northeast Ohio Medical University traced this incremental change, and noted that “each time that society has changed the prevalent form of employment, psychology has changed its methods of career intervention to help people deal with new identity issues and lifestyle problems.”

John Holland

John Holland

Early attempts to help people find their occupational paths focused on matching six personality prototypes incorporating six related value types with six associated vocational categories, thanks to John Holland of Johns Hopkins, who developed the Self Directed Search assessment.

Holland's Six Career Themes

Holland’s Six Career Themes

Individual were seen as “actors” who needed to match individual differences with occupations that best fit these characteristics.

John Crites

John Crites

Next came an emphasis on careers as a developmental challenge that requires adaptation and training to develop new attitudes, beliefs, and competencies that foster their vocational adaptation.

Donald Super

Donald Super

People were seen as “agents” striving to develop into an occupational role, with insight from assessments including the Career Maturity Inventory by University of Maryland’s John Crites and Career Development, Assessment, and Counseling (C-DAC) conceived by Donald Super of University of Connecticut.

Careers are currently seen as a “narrative construction” or a “life design project” drawing on emotion valence, autobiographical career stories and life themes that suggest professional construction and reconstruction.

Individuals are seen as “authors” of their career narrative in context of a life story.
Savickas developed this constructivist perspective to serve “workers in societies that have de-standardized the life course and de-jobbed employment” after applying Holland’s individual differences approach and developmental views of Crites and Super.

Three Career Development Approaches

Three Career Development Approaches

Paul Hartung

Paul Hartung

To enable this career narrative, Savickas and Northeast Ohio Medical University colleague Paul Hartung developed a structured career interview.
This “Autobiographical Workbook” asks people to share stories about self, identity, and career, including inquiries about role models, favorite magazines, how they made important decisions, and what their parents wanted for their lives to uncover prevailing interests, values, concerns, and precipitants to action.Career Construction Interview

Ludwig Wittgenstein

Ludwig Wittgenstein

This approach helps people “envision how to use work to actively master what they passively suffer” and “fit work into life rather than life into work” by collecting stories about “…how a person constructed a career, then deconstructs and reconstructs these stories into an identity narrative, and finally co-constructs intentions that lead to action in the real world.
Narrative Construction and Life Design perspectives echo Ludwig Wittgenstein’s observation that problems are solved not by giving information but by rearranging what we already know.

In this collection and rearrangement process, Savickas sees the individual as a career architect whereas a career consultant is like a carpenter who suggests recombinations in light of current needs and future goals while respecting interests, values, and strengths.

This process also enables new perspectives on more productive approaches to past challenges when encountered in future contexts, working around obstacles, and drawing on past examples of competence and self-efficacy.

  • Which perspective on career development most guided your selection of work paths?

Follow-share-like http://www.kathrynwelds.com and @kathrynwelds

Related Posts:

Twitter  @kathrynwelds
Blog – Kathryn Welds | Curated Research and Commentary
Google+
LinkedIn Open Group Psychology in Human Resources (Organisational Psychology)
Facebook Notes

©Kathryn Welds

Hiring by Cultural Matching: Potential for Bias

Lauren Rivera

Lauren Rivera

Northwestern’s Lauren Rivera found that job interviewing at elite professional services firms – and perhaps in other industries – is a process of skill sorting as well as cultural matching.

She noted that hiring interviewers who did not employ systematic measures of job-specific requirements tended to use themselves as a benchmark of qualification.
As a result, interviewees rated as “most qualified” tended to resemble their interviewers in educational and geographic backgrounds, self-presentation, hobbies, and more.

Katherine Phillips

Katherine Phillips

This hiring practice leads to cultural homogeneity, which undermines innovation from diversity of thought and experience, demonstrated in research by Katherine Phillips, then of Northwestern, with Katie Liljenquist of Brigham Young University, and Margaret Neale at Stanford University.

Katie Liljenquist

Katie Liljenquist

Their laboratory study demonstrated the value of diverse groups in task performance and decision making:    Teams with out-group newcomers correctly completed a task more frequently than teams joined by an in-group newcomer.
However members of the heterogenous group expressed lower confidence in their performance.

Margaret Neale

Margaret Neale

Newcomers can improve group performance by shifting alliances and group interaction, and bringing fresh information to problems.

eHarmony, the online dating service, is developing a job search and candidate matching product intended to reduce the rate of “job-hopping,” according to Grant Langston, VP of customer experience.

Grant Langston

Grant Langston

This online offering is expected to match supervisors with potential employees based on 40 dimensions including personalities, work habits, hobbies, in addition to competency metrics, corresponding to Rivera’s observation that elite professional service firms “hired in a manner more closely resembling the choice of friends or romantic partners than how sociologists portraying employers selecting new workers.”

Though eHarmony’s candidate matching product may offer a satisfying match between candidate and supervisor, it may exclude qualified candidates who may bring a fresh perspective to the organization and work group.

-*How do you ensure cultural match and diversity of thought and experience in candidate selection?

Related Posts

Twitter:    @kathrynwelds
Google+:
Blog: – Kathryn Welds | Curated Research and Commentary
LinkedIn Open Group Psychology in Human Resources (Organisational Psychology)
Facebook Notes:

©Kathryn Welds

How Well Do Today’s Career Choices Endure Over Time?

Donald Clifton

Donald Clifton

Career development and job search are founded on uncovering individual skills, competencies, strengths, capabilities, interests and likes.

This discovery can involve introspective “personal archaeology,” often enabled by standardized career and personality assessment tools.

However, social science research suggests that it is difficult to “know” preference – career and otherwise – in order to map this “supply” to the “demand” in available career roles.

Gilbert Ryle

Gilbert Ryle

More than 60 years ago, acclaimed Oxford University philosopher Gilbert Ryle foreshadowed the philosophical and cognitive problems entailed in “knowing one’s own mind.”

Rene Descartes

Rene Descartes

Ryle considered how people acquire attitudes, traits, and their dispositions to act in The Concept of Mind  , an erudite attack on Cartesian dualism of mind and body

Daryl Bem

Daryl Bem

Two decades later, Daryl Bem of Cornell University substituted laboratory research for Ryle’s philosophical reasoning, and demonstrated that people may not know what they like or their skills until they observe their behavior in studies of “self-perception theory.”

Bem found that people draw inferences about who they are and they “become what they do,” particularly when people are not certain of what they think or feel, and when they believe that they freely chose to behave as they did.

Bruce Hood

Bruce Hood

Bruce Hood of University of Bristol expanded the self-perception argument to posit that “the self” is an illusion, so it is difficult to “know” what the “self” likes, values, and prefers.

However, behaviors can be shaped and constrained by external social standards:  People learn to become themselves by interacting with others, according to Charles Horton Cooley, who coined the term “the looking glass self” more than a century ago.

Charles Horton Cooley

Charles Horton Cooley

Therefore, people may choose a career acceptable to parents or social observers who attribute “respect” and “prestige.”

Hood showed that the fluid process of constructing the self is a created narrative which is experienced as “a cohesive, integrated character.”
Since the “self” is constructed, it changes over time, and people significantly and consistently underestimate how much they will change in the future.

This finding has important implications for anyone seeking to distill values, strengths, and preference a job search “elevator speech,” “value proposition,” and “pitch.”

Introspection, therefore, offers limited career insight and guidance: People need to see how they respond, then infer attitudes and preferences for career and other life choices.
This argues for taking exploratory action to “try on” choices, such as in “realistic job previews” found in internships and other on-the-job experiences.

The challenge to career development and decision-making doesn’t end there.
Even if it’s possible to infer preferences from one’s behavior, those inferences are likely to change – a lot – over time.
This means that today’s career may not change in synchrony with one’s personal changes.

Daniel Gilbert

Daniel Gilbert

Daniel T. Gilbert and Jordi Quoidbach of Harvard collaborated with Timothy D. Wilson of the University of Virginia demonstrated this shift in in personalities, values, and preferences over decades of life – and people’s underestimate of these changes – and called it the “end of history illusion.”

Jordi Quoidbach

Jordi Quoidbach

They surveyed more than 19,000 people ages 18 to 68 and found that  young people, middle-aged people, and older people all believed they had changed a lot in the past decade but would change relatively little in the future decade.

Timothy Wilson

Timothy Wilson

The researchers reported that the typical 20-year-old woman participant’s predictions for her next decade were not nearly as radical as the typical 30-year-old woman’s recollection of how much she had changed in her 20s, with this trend holding for volunteers into their 60s.

They found that participants were able to accurately recall personality changes that correlated well expected results, based on independent research charting of personality trait shifts with age.

Gilbert, Quoidbach and Wilson conducted lab studies that found people tend to overpay for future opportunities to indulge their current preferences due to this “end of history” illusion.
This trend may have significant consequences when choices involve potential life partners, long-term financial commitments, and career choices.

These researchers suggest that people underestimate future changes because people may be threatened by the idea that current values and preferences are transitory.
They speculate that such a realization may lead people to doubt many decisions, and experience decision-slowing due to anxiety.

An alternate explanation is that the mental energy required to imagine future changes exceed the effort of recalling the past, so “people may confuse the difficulty of imagining personal change with the unlikelihood of change itself.”

Dan McAdams

Dan McAdams

Dan McAdams of Northwestern University seconded this view and added, “The end-of-history effect may represent a failure in personal imagination,” based on his observations of how people construct stories about their past and future lives in Identity and Story: Creating Self in Narrative (The Narrative Study of Lives).
He noticed that many people tell complex, dynamic stories about the past but then make vague, prosaic projections of a future similar to the present.

These findings suggest that introspection and standardized assessment instruments may have more value when coupled with observing one’s actual behavior and reflected impressions from others.

Additionally, it is wise to:

  • Anticipate the value of changing, expanding, or modifying one’s job role over time
  • Develop a wide array of transferrable skills, applicable across a variety of domains to increase the breadth of options for later preferences.
  • How do you uncover or infer your career strengths and preferences?
  • How do you monitor a possible “end of history” illusion when making career plans?

Related Posts

©Kathryn Welds