Gerald E. Ledford, Jr. (CEO), Edward E. Lawler III (CEO), George Benson (U Texas)
After years of increasingly strident criticism of performance management from inside and outside the organization, some companies are making major, disruptive changes in their practices. Adobe Systems, Microsoft, Deloitte, and GE, among others, have adopted innovations that have changed the way performance management is being conducted. With support from WorldatWork, the Center for Effective Organizations has conducted a survey study of 244 organizations that have adopted one or more of three cutting edge practices: ongoing performance feedback, ratingless reviews of performance, and crowd-sourced feedback. Ongoing feedback involves performance and development discussions multiple times per year, typically monthly or quarterly. Ratingless reviews avoid assigning a numerical or letter grade to the level of performance. Crowd-sourced performance feedback uses social media for employees to provide real-time feedback to others. This article focuses on issues that are specific to rewards.