Deloitte implemented a new performance appraisal system for several reasons. Their previous system was no longer effectively evaluating employees and fostering high performance. The new system focused on more frequent check-ins between managers and employees, provided coaching support, and used scatterplots to evaluate employees relative to peers. It proved more effective by increasing employee participation, boosting productivity, providing a more time-efficient and holistic review that enhanced communication about performance improvements. For appraisals to be fair and effective, companies should ensure managers know their employees well, include fairness reviews, and gather employee feedback to continually improve the process.

1. Principles of Human Resource Management Assignment 2
Q1) Why was there a need for a new Performance Appraisal System at Deloitte?
For a number of reasons, Deloitte needed a new way to assess employee performance. Deloitte was
forced to admit by the Millward Brown report that the experiences of their clients were comparable
to those of their rivals. They became aware that they required a plan to set themselves apart as a
result. Talent development and expansion was a great strategy for achieving this. They were also
made aware by the High-Performing Teams study that in addition to having high-performing teams,
they also needed to foster an atmosphere in which they could exist.
Lastly, in order to evaluate personnel properly, performance evaluation techniques may become
outdated over time and need to be modified.
Q2) What did the Reinvented Performance Management look like?
To enhance the previous method of performance evaluation, the process has been made simpler. In
order to maintain the information gathered current and relevant, the new strategy gave priority to
more frequent meetings between the team leader and the individual. The strategy compelled the
team manager to take a "snapshot," which gave a broader perspective on how the manager views
each team member. The participating coaches were also a crucial part of the new system since they
assisted people in understanding who they were, what they did, and how they could advance. The
last stage was scatterplots, which showed where each team member stood in respect to other team
members. The third level of compensation involves modelling pay based on performance and
evaluation of another employee.
Q3) In what ways was the new system better?
The new system outperformed the old one in certain crucial areas. Increased participation led to
more responses from employees, and it also helped to boost staff productivity. It was also a more
time-effective performance assessment tool than that of the prior method and did not limit an
employee's performance to a single number. Finally, it was less retrospective than the prior
approach, and it enhanced direct communication regarding changes in employee performance that
needed to be made.
Q4) How can companies make their appraisals more fair and more effective?
A company can ensure that the person being appraised has spent enough time with their leader so
that the leader has a solid understanding of who that employee is and leaves nothing to chance by
making sure that the appraisal is fair and effective. Regular engagement should also include a
fairness component to prevent the employee from being upset if the assessment does not go in his
or her favor. Finally, there should be a feedback system that gathers suggestions from those being
evaluated and relays them to those who evaluate employees so that management may incorporate
them into the process and improve the efficiency and personalization of evaluations.