Hi Gina,

The performance contracts were negotiated between the
Organizational leader and the individuals or teams
operating a process.

It required that the contractee (staff performing the
function) develop a baseline for the process, core
functions, performance standards, a value for each
core function, a projected level of acheivement, and
an interval of review (quarterly, bi-annually, or
annual)

At the end of the established review interval, the
contractee would present their results to the
contractor (management/leadership). The evaluation
would be based on the level of performance at the end
of the interval compared to the projected performance
at the beginning of the interval.

The contractee had a larger more meaningful degree of
self determination, an opportunity to communicate
about their performance and future improvements at
regular intervals with management, and an opportunity
to be an active participant in setting their own
acheivement level.

The contractor was able to provide direction that
linked performance to strategic objectives, direction
in the focus of the contract acheivements, and an
opportunity to review progress at regular intervals.
An interesting by product for the contractor was the
reduction in stress levels related to performance
evaluation.

The contractees were much harder on their performance
than management would have been. The contractee felt
ownership for the integrity of the performance
contract system.

Ownership of the process among staff increased,
commitment to process improvement increased, and
innovative improvements increased.

Your thoughts?

Mike
--- Gina Fornario <gina@...> wrote:
> Hello Michael,
> Thank you for taking the time to answer my question.
> I have very little
> about performance contracts and am very interested
> in learning more. I
> woulld greatly appreciate any details you could
> provide. Thank you for your
> time and I hope to hear from you soon.
> Regards
> Gina
>
> -----Original Message-----
> From: Michael Murphy
> [mailto:michaelemurphy@...]
> Sent: Tuesday, June 27, 2000 9:57 AM
> To: perftips@egroups.com
> Cc: jblount@...
> Subject: Re: [perftips] Performance Appraisals
>
>
> Hi,
>
> How about performance contracts with individuals
> and/or teams that focus on outcomes and a few
> outputs?
> A few years ago while working for a state agency
> that
> was piloting a pilot TQM project, the division that
> I
> worked for used performance contracts. These
> contracts were very effective in developing a
> buy-in,
> ownership, and the commitment of the individuals and
> teams in their own and organizational success.
>
> If you're interested, I can provide details.
>
> Mike
> --- gina@... wrote:
> > Hello,
> > Currently I am working on redoing the performance
> > appraisals for my
> > company. However, while I understand the reason
> why
> > performance
> > appraisals exist I do not believe that they are
> the
> > most effective
> > tool for improving an employee's productivity. If
> I
> > can come up with
> > an alternate system of providing feedback to
> > employees, my boss has
> > agreed to implement the plan and get rid of
> > performance appraisals.
> > Does anyone have any suggestions? Thanks :)
> >
> >
>
>
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