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EdXCorp PM System Recommended Improvements


Kimberly Trares-Jordan

Argosy University

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Abstract:

“EdXCorp” (actual name of the Organization has been altered) is the second

largest For-Profit, Post Secondary education system in the United States. Currently, the

Admissions department is experiencing significant difficulty with; employee morale, job

satisfaction and consequently employee retention. All business generated, starts with this

department and drives the momentum of the rest of the organization.

Information assessing the current Performance Management System and Rewards

System was obtained by collecting explicit documentation currently implemented for;

performance reviews, observations, feedback and coaching and employee development.

Interviews were also conducted with employees, including management and

subordinates of the department. Each individual interviewed was asked the same six

questions in order to gauge their overall impressions of the current systems effectiveness

and areas of opportunity. Questions were constructed utilizing rating scales and narrative

sections to allow individuals to suggest ways of making improvements and identifying

improvements that would be meaningful to them. All individuals that participated in the

survey and interview process were kept anonymous.

Results:

Bridging the gap between employees and upper corporate management and the

organization as a whole may be facilitated with the creation of an orientation to the

Organizational Vision Statement. “A shared vision is the first step to achieving business

success”, (Chaneski, Wayne S., 2001). Shared vision will assist employees with feeling

personally connected to the company.

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All interviewed agreed that the thoroughness of the data collection and

monitoring of the measured variables of performance were sufficient. However, the

general impression was that the some of the variables being measured were inaccurate of

little importance or value or able to be accurately compiled, therefore lacking

meaningfulness.

Suggestions for improvement include:

Eliminating the monitoring of variables that are “pointless and a waste of time”. In

other words, altering the criteria and variables that are currently in place to measure

productivity and predict successful outcomes. Make sure that measurements are

meaningful and valid. (Aguinis, 2008)

Including more; “self review and more frequent reviews” of performance compared

to the observations and feedback/coaching to determine if feedback/coaching is

effective and facilitating positive change. In essence, tying observations to reviews

and personalizing reviews based on areas of opportunity. This addresses the one of

the ideal characteristics of an ideal PM, inclusiveness, (Aguinis, 2008)

Management getting to know each individual more personally to better understand;

personal goals and how to best align them with the organizational goals. For instance

identifying career paths and professional development to strengthen employee

commitment and job satisfaction

Other areas of opportunity that were identified were the need for respect for the

work/home balance, the need for increased trust, faith and acknowledgment for good

performance from management higher within the organization for both individual and

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team accomplishments and the ability to provide more opportunity for team building

activities.

During the on-boarding and orientation process of new hires, a communication plan

may begin to be implemented in order to familiarize employees with: the PM system.

This will increase understanding of, how it fits into strategy, what’s in it for each

individual, how it works, key responsibilities and how the plan relates to administrative

decisions such as; initiatives, training and promotions. Having insight into the system

will foster employee acceptance and overall satisfaction with the system, (Aguinis, 2008,

p 155).

Clearly, there are multiple areas of opportunity to be addressed. There is the potential

for improvement in the Performance Management and Reward Systems on many levels.

Improving the current Performance Management and Reward System includes

appropriately uncovering, addressing and rectifying these issues to improve overall

employee satisfaction, morale, commitment and productivity. These results will

contribute to organizational growth, viability and competitive advantage. This process

will need to include a dialogue between employees and management to openly discuss

and collaborate on how to make improvements and be an ongoing process of continued

evolution, growth and communication.

Once recommended changes have been made to the system at large, a pilot test would

be beneficial to test the effectiveness of the implemented changes and allow for further

adjustments where appropriate. Ongoing measurements of the system will need to be

taken in order to assess whether the implemented changes are culminating in desired

results, (Aguinis, 2008, p 175).

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INTRODUCTION

Mission, vision, goals and strategies create the framework of an organization.

These key components define the organizations; identity, reason for existing, identifies

short and long term goals and provides a structure for day-to-day activities, (Aguinis,

2008). Strategies outline how an organization will move toward attainment of the

mission, vision and the desired outcomes. When appropriately executed they, create a

culture of cooperation and collaboration toward common goals within the organization as

a whole.

A trickle down effect takes place in the alignment of mission, vision and strategic

goals from the top down, from the highest corporate levels, to the various departments

and finally to each individual. However, the developmental needs are directed from the

bottom-up, (Chaneski, 2011).

Strategic Planning

Identifying which factors are most appropriate to the strategic plan is key to

developing a performance management system that will be relevant: effective and lead to

desired mission and vision. A cohesive PM system will also foster a sense of belonging,

collaboration and common focus.

Training

Training is designed to meet the organizational goals, by identifying behaviors and

results that contribute to success. Formally developing the associated skills, likelihood of

repeated desired behaviors and results will thus increasing the likelihood of successful

outcomes.

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At EdXCorp, prior to employees’ going “live” on the admissions floor, they

undergo approximately 3 weeks of training. This training centers mainly on compliance

issues and certification. Training is conducted with a Director of Admissions as well as

independent partnered practice. Online training modules are also completed via the

online “University”, covering ethical, cultural and corporate expectations. Corporate

University training has been shown to increase; employee performance as well as

increased employee retention. Employees tend to be more satisfied and have more long-

term commitment when they have quality training and developmental opportunities,

(Morin, L., & Renaud, S., 2004). Ideally, there is a corporate training on appointment

setting and interviewing within the first 90 days of hire. However, training has been

somewhat inconsistent in timing. Some new-hires have gone as long as 8 months before

receiving the corporate training modules, (information gathered via direct employee

interviews). This inconsistency in training has potential legal ramifications. If

employees are held to a productivity-standard, without the proper training, it may be lead

to potential issues regarding appraisals and administrative decisions. An employee that is

terminated for failure to perform may argue that they were improperly trained.

Consistent implementation and timing of training is recommended for employee

development as well as the increased likelihood of goal attainment.

Managers are primarily committed to the development of their employees to the

extent that, they are able to develop their skills to a degree that they are able to meet or

exceed their minimum expectations. There is little discussion regarding career

aspirations and goals.

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Performance management-processes:

The existing PM system was broken down into specific management processes,

strategic planning and measurement systems. The identified components of the PM

system were then evaluated using the factors outlined by (Aguinis, 2008, p 20-21)

Behavioral Measurements

Quarterly, “SuccessFactors”, reviews are conducted. These factors are primarily

behavioral measurements. Behavioral measurement is most appropriate when: the link

between behaviors and measurements is not obvious, outcomes occur in the distance

future and poor results are due to factors outside of the performers control, (Aguinis,

2008, p 88).

SuccessFactors variables include:

Communication: (behavior)

Credibility: (behavior, emotional intelligence)

Job Knowledge: (procedural, declarative)

Problem Solving: (procedural, emotional intelligence)

Professionalism: (declarative, emotional intelligence)

Student Focus: (behavioral, procedural, contextual)

Teamwork and Collaboration: (contextual, emotional intelligence)

When comparing the appraisal form to the major components of an appraisal form as

outlined by (Aguinis, 2008, p 121) the following may be observed:

Basic employee information- present

Accountabilities, objectives, and standards- present

Competencies and indicators- present

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Major achievements and contributions- not present

Developmental achievements [could be included in a separate form]- not present

Developmental needs, plans, and goals [included in a separate form, but only

utilized when there is a pattern of failure to meet expectations]- not present

Stakeholder input- included only via Director narrative and input. There is no input from peers or students or other relevant parties.

Employee comments- present

Signatures-present

An area of opportunity here would be to include sections on major achievements and

contributions, developmental achievements, developmental needs, plans and goals as well

as inclusion of feedback from major stakeholders such as team members and students for

a more comprehensive evaluation.

Results Measurement

A results approach is most appropriate when; workers are skilled in the needed

behaviors and results are obviously related, results show consistent improvement over

time and there are many ways to do the job right, (Aguinis, 2008 p 88).

The results approach is implemented via individual goals that are set forth clearly

defining: daily, weekly and monthly expectations. These results based performance

measures are continuously self-monitored (subjective) and supervised directly by

management (objective) and tracked electronically via automated tracking systems

(validity).

Each day, admissions employees’ are responsible for meeting their “minimum

expectations”, including; level of outreach (outgoing calls), number of appointment sets,

number of interviews, number of applications and number of personally developed

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referrals. A daily team email is created in order to provide a way for individuals to report

where they are for the day with regard to their expectations and gauge their productivity

in relation to the team. It also keeps management abreast of the daily activity and

performance. Strategy may be adjusted in order to keep individuals and the team on track.

Each day employees report to, the Director of Admission and present their DPR

(daily productivity report). This report comprises the data representing the day’s

results/numbers. There is no evaluation of the behaviors that were carried out in regard

to other crucial facets of the position. A lot of time is spent, responding to the email

chain, reporting on productivity, self-monitoring and data collection. In essence there is a

lot of time spent on collecting and reporting data that takes away from productivity.

Many of the factors that comprise, SuccessFactors are not reported. These behaviors are

key components to the success of each individual as well as the team and ultimately the

organization as a whole. This daily focus on results without regard or weight to crucial,

unmeasured-factors creates an overall impact on morale. Employees have expressed

feeling that the system is not fair or reliable, (information gathered via personal

interviews).

It is recommended that improvements be made to the automatic data tracking to

account for factors outside of the employee’s control. An assessment or recognition of

behavioral factors that impact contextual performance may help improve morale.

Measurements of effectiveness

Ultimately, the bottom-line, is whether the numbers were met. This translates into the

start plan being met, i.e. x-number of students that were enrolled and started class.

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There is little concern for how the number was met as long as it was obtained ethically

and compliantly.

Measurements that are consistent with the ideal PM were evaluated as outlined by,

(Aguinis, 2008 p 21).

Factors Present:

Strategic congruence: All individual goals are established by team and unit

goals, which are set forth by the organizational goals.

Thoroughness: All employees are evaluated and all major responsibilities are

evaluated including both behaviors and results.

Practicality: Observation forms are concise and clear and provide areas to

document feedback and also provide areas and opportunity for employee feedback

of the assessment.

Specificity: Provide detailed, concrete guidance of what is expected and how to

meet the expectations. This is satisfied via ongoing observation and feedback.

Identification of effective and ineffective performance: Distinguish between

effective and ineffective behaviors and results. This is achieved by assessing over

time, trends and behaviors that lead to successful results. This is also

continuously monitored and adjusted on a daily basis.

Openness: A culture that fosters the acceptance of observation, feedback and

coaching has been established. This allows for personal and professional growth.

Correctability: There is an appeals process for the PM appraisal/evaluation.

Standardization: Evaluations are done consistently across people and time.

Ethicality: Management is forthcoming and model ethical standards and foster, a

sense of trust and leadership.

Factor that require attention:

Meaningfulness:

o There are factors that are tracked and evaluated that are not relevant to the

job function and seem to serve as a distraction and time robbing activity.

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o There are many factors that play into the final outcomes beside the

behaviors of the employee. For instance; financial issues, (i.e. default) or

personal circumstances (i.e. family emergency, pregnancy, etc).

o The main administrative decision dictated by reviews, is the

implementation of a training plan.

Reliability: Data collected does not always accurately track/measure the variables

that are being evaluated.

Validity: Only include relevant facets, not contaminated (outside the control of

employee).

Acceptability and fairness: Due to the issues outlined with the meaningfulness,

reliability and validity, some perceive the results measurements to be off and thus

not a fair assessment.

Inclusiveness: Employees do not participate, in the process of determining what

behaviors and measurements are important and how they will be measured. This

is handed down to the employees by corporate.

SuccessFactors and the Start Plan are combined to formulate the overall evaluation of

“exceeds, meets or is below expectations”. The Start Plan is weighted 40% and the

Successfactors are weighted 60% to comprise the final mechanical evaluation.

Developmental Plans

Providing recognition and outlining developmental goals and career paths help

foster long term commitment and growth for the employee which translate into long term

benefits for the organization via money saved on retraining new employees and utilizing

ongoing growth and skills of long term employees. Employees that feel more confident

and competent will tend to have better performance. Developmental plans create the

foundation from which to build success, (Aguinis, 2008, p 6).

Developmental plans, take into account key questions, including:

How can I continually learn and grow in the next year?

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How can I do better in the future? (Aguinis, 2009, p. 180)

How can I avoid performance problems faced in the past?

Ideally, all employees have a plan (including managers from all levels in the

organization). At EdXCorp, not all employees have developmental plans. “Training

Plans” are only implemented when there is a pattern of behaviors and results of an

employee, failing to meet expectations. The developmental plan has thus taken on a

negative and anxiety provoking association. Rather than being an integral part of the PM

system and a tool for growth and development it is currently met more frequently with

defensiveness, resistance and anxiety. According to Aguinis, (2009, p 180) the more that

employees believe the system is being used for developmental purposes, the more

satisfied they are with the system. Belief that the system is being used for evaluative

purposes results in more dissatisfaction with the system. All “training plans” are

reviewed and sanctioned by HR prior to implementation. As far as other professional

developmental practices, they are virtually non-existent.

Developmental plans, should also; prepare employees for advancement, enrich the

employee’s work experience, provide employees with growth opportunities and

opportunities to learn new skills. There is virtually no focus on employee advancement,

growth opportunity or enrichment of work experience at EdXCorp. Professional

development plans are not addressed. There is a system in place with supporting

documentation and procedures. However, as reported by senior management, “No one

utilizes them with their staff. I had to reach out and request the documentation. There is

no training what so ever for management on how to implement the system.” The reason

identified by senior management for the lack of focus on professional developmental

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plans was mainly, time. In the grand scheme, which in the case of admissions is a very

fast paced, multi-dimensional environment, there is little time to devote to employee

development since the major focus is on meeting start plans and assisting students with

their personal development. This is contrary to the Mission of EdXCorp. The mission

states, “Our Mission: Education that builds careers and transforms the lives of those who

teach, learn and work here.” There is excellent student focus, however the professional

staff development is being neglected. Aguinis (2009), states, “All employees are entitled

to developmental opportunities on an ongoing basis.” A good plan however, also

provides employees with growth opportunities and opportunities to learn new skills,

(Aguinis, 2009 p. 183).

Overall, objectives included in the developmental plans should be practical, specific,

time oriented, linked to a standard, and developed jointly by the supervisor and the

employee. Training plans at EdXCorp do address these facets; accept for the fact that;

training plans are primarily developed by management and HR, rather than management

and the employee, prior to implementation.

Once an employee is put on a “training plan”, there is a very clear outline of:

Competencies (areas that need improvement only)

Individual goals and objectives (measureable)

Action Items (including, “must implement all feedback”)

Timeline

Follow up

And ongoing documentation regarding progress (via weekly meetings on

progress)

In order to revamp the impression and reception of the training plan, it must be

routinely implemented with all employees (including management) and seen as a tool for

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development and growth, rather than a negative administrative instrument. “Edmonson

(1999) showed that high levels of psychological safety led teams to view failure as a

learning opportunity and to seek feedback from outside sources. Alternately, low levels

of psychological safety led to an unquestioning acceptance of team goals for fear of

reprisal from managers as well as a disinclination to seek help”,

There are various ways that management can assist employees’ with meeting the

expectations of their development plan objectives, (Aguinis, 2009, p 186), including:

On-the-job-training Courses

Self-guided reading

Mentoring

Attending a conference

Getting a degree

Job rotation

Temporary assignments

Membership or leadership role in professional or trade organizations

Currently, the main modes of employee training include: direct mentoring and limited

on-the-job training courses via the corporate online university.

Employee motivation

Direct Supervisors and management keep employees’ focused on “the mission”,

(i.e. why they’re doing what they’re doing), i.e. helping students to change their lives and

thus impact: individuals, families and communities overall. Employees’ are motivated to

perform and meet expectations on a daily basis so when they provide their DPR to their

supervisor, they are not questioned about their productivity or asked to stay late in order

to meet expectations. For some, the biggest reward that may be obtained is the intrinsic

reward of feeling that you are making a difference in people’s lives. There are very few,

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short-term extrinsic rewards other than; praise, team status, possibility of “employee of

the month” which entitles the employee to a covered parking space for the following

month. Long-term rewards however include benefits such as:

medical/dental/disability/life insurance, paid time off and tuition reimbursement.

Supervisor’s role

Aguinis states that, “Supervisors must be rewarded for doing a good job in

helping their employees develop”, p. 187. However, at EdXCorp, there is little reward

for supervisors that help employees’ develop. However, if employees’ are not successful,

supervisors may also be placed on training plans. This further reinforces the negative

connotation of the training plan.

Feedback systems

Ideally, feedback systems: helps build confidence, develops competence and

enhances involvement, (Aguinis, 2009 p. 219). It should also be:

Timely

Frequent

Specific

Verifiable

Consistent

Private

Consequential

Descriptive first and evaluative second

Related to a performance continuum

Based on identifiable patterns of performance

A confidence builder for employees

A tool for generating advice and ideas

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Management within Admissions successfully addresses the above variables with the

exception of privacy and confidence building. Often feedback is provided publically.

Due to the pervasive negative connotation of development plans although management

may desire to assist employees’ with improving skills and increasing success, it often has

a negative impact on confidence and overall feelings of security. Open dialogue is

encouraged. It is also expected that employee’s will seek out advice and ideas where

necessary, however some employees’ avoid seeking advice and feedback for fear falling

under scrutiny and micromanagement.

Coaching

Aguinis (2009, p. 212), outlines the major functions of coaching: give advice, provide

guidance, give support, give confidence and promote greater competence, as well as the

key behaviors: establish developmental objective, communicate effectively, motivate

employees, document performance, give feedback, diagnose performance problems and

develop of employees.

Areas of opportunity are: building confidence, motivation, and employee

development. By addressing these key issues, employee satisfaction, confidence and

competence my be increased which may in turn be reflected in overall improved success

of personal/individual goals as well as team/departmental goals and thus organizational

goals as a whole.

Rewards

In 2011, the Department of Justice and four States filed a multi-billion dollar

lawsuit against EdXCorp. The basis of the suit was the claim that they violated Federal

Law by paying recruiters based on how many students they enrolled. The claim included

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a description of the admissions department as a, “boiler-room style sales culture”, in

which recruiters were instructed to use high-pressure sales techniques and inflated claims

about career placement to increase enrollments. It also claimed that recruiters were also

led to exploit psychological vulnerabilities, (Lewin, Tamar, 2011). This legal matter has

led to a complete overhaul of the rewards system within EdXCorp. It has also

contributed to an underlying sense of insecurity and impression of expendability.

What are appropriate rewards? What keeps employees motivated in their

positions and increases the likelihood of repeated desired behavior? What factors

influence employees’ decisions to stay with an organization?

Let’s first examine rewards. Rewards can take on many forms. Primarily there are

short-term and long-term rewards, tangible and intangible rewards. Aguinis, (2009, p.

251), outlines a few recommendations for making rewards work:

Define and measure performance first, and then allocate rewards

Use only rewards that are available

Make sure all employees are eligible

Make rewards visible

Make rewards contingent

Make rewards timely

Make rewards reversible

Use nonfinancial rewards

Technically speaking, EdXCorp meets the criteria for implementing a rewards system

that works, as described above by Aguinis, (2009) however, there are rewards that may

be implemented that would be of greater value for the employees and in turn increase

overall motivation and performance.

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The admissions-staff are solely paid in on a traditional pay plan. Traditional pay

plans compensate employees for filling a position in the organization and not how they

do their work/performance, (Aguinis, 2009, p 240). Therefore, top performers do not gain

monetarily based on their performance. Long-term rewards are one of the strongest

forms of rewards available to employees. These include: medical benefits, life and long-

term disability insurance, paid time off and full tuition reimbursement. However, due to

the high rate of turnover, there is little value on long-term rewards for employees.

Short-term rewards are solely nonfinancial in nature. By eliminating all financial

incentives from the admissions process, it is presumed that all admissions decisions,

recommendations and actions are made solely for the best interest of the student. Short-

term rewards are found in many forms including: recognition: (employee of the month,

super star, designated covered parking), certificates of appreciation and dedication, public

praise and team ranking/status. Along with these explicit rewards, there are also more

implicit, intangible rewards, including but not limited to; personal satisfaction of assisting

students, sense of accomplishment and team status, sense of security within the

organization and satisfaction of working relationships.

Currently, there is little satisfaction in regard to the short-term rewards, (reported in

personal interviews). In order for a reward system to be effective, the rewards must also

hold value. The employees surveyed expressed dissatisfaction primarily because the

biggest reward they feel they achieve for satisfactory to excellent performance is simply

not being made to feel that they are doing a poor job. This equates to negative

reinforcement, (McLeod, 2007). Rewards that were identified as valuable to employees

included: approved requests for time off (when requests are made in a timely manner and

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there is sufficient PTO available), opportunity for overtime vs. shaving hours, more trust

and autonomy and a general respect for work/home balance.

Developing an open dialogue created between corporate-management and staff in

order to further identify, valued rewards that are in alignment with ethical, legal and

organizational matters will facilitate overall employee satisfaction may help increase

retention of staff and foster an improved sense of security within the department.

Summary of Recommendations:

Improving the on-boarding and initial training process will:

o Create an understanding of and alignment with the organizational mission,

vision and strategy

o Reduce the likelihood of potential legal issues that may be associated with

training gaps and negative administrative decisions.

Implement management training on the use of professional employee

developmental plans to identify career paths and solidify employee commitment,

sense of security and belonging and overall satisfaction

Include a section for employee achievements and contributions and

developmental goals on appraisals forms

Improve the validity of data collection to improve employee sense of fairness and

accuracy of factors influencing appraisals

Implement developmental plans for all employees including management to

improve the overall reception of and effectiveness of training plans as

developmental tools

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Open a dialogue with employees to assess rewards that they hold valuable and

incorporate them as appropriate into the rewards system

Improve confidence building and professional development practices in order to

facilitate a greater sense of competence and security

By implementing recommended changes, the existing PM system will be improved

and create the groundwork for more; consistency, open, positive communication and

overall employee satisfaction that will lead to increased employee retention.

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REFERENCES:

Aguinis. (2008). Performance Management (2nd ed). Pearson Learning Solutions.

Retrieved from http://digitalbookshelf.argosy.edu/books/0558569080/id/bm01

The Making of a Dream Team: When Expert Teams Do Best. (2006). In Cambridge

Handbook of Expertise and Expert Performance. Retrieved from

http://libproxy.edmc.edu/login?qurl=http%3A%2F%2Fwww.credoreference.com/entry/

cupexpert/the_making_of_a_dream_team_when_expert_teams_do_best

Chaneski, W. S. (2011). Creating a meaningful vision statement. Modern Machine Shop,

83(11), 34-34,36. Retrieved from http://search.proquest.com/docview/862747486?

accountid=34899

Morin, L., & Renaud, S. (2004). Participation in corporate university training: Its effect

on individual job performance. Canadian Journal of Administrative Sciences, 21(4), 295-

306. Retrieved from http://search.proquest.com/docview/204889941?accountid=34899

Lewin, T. (2011, August 8). For-Profit College Group Sued as U.S. Lay Out Wide

Fraud. The New York Times, Retrieved from:

http://www.nytimes.com/2011/08/09/education/09forprofit.html

McLeod, S. A. (2007). B.F. Skinner | Operant Conditioning - Simply Psychology.

Retrieved from http://www.simplypsychology.org/operant-conditioning.html

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http://www.nytimes.com/2011/08/09/education/09forprofit.html

http://www.credoreference.com.libproxy.edmc.edu/entry/cupexpert/the_making_of_a_dream_team_when_expert_teams_do_best

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