Original Date: 10/07/2002
Revision Date: 01/18/2007

The Performance Management and Review System at General Tool Company clearly sets forth the needs and expectations of both the company and the employees. Furthermore, it provides a meaningful measurement of performance to those needs and expectations.

In late 2001, General Tool Company (GTC) began the difficult process of formalizing and instituting a performance management and review system that reflected commitment to its customers and employees. Work force development had long been one of the strengths deemed critical to the company’s strategic plan success factors. Prior to this effort, the employee performance plan in place hindered GTC’s ability to focus on the needs of the employee as well as the company. The old system of job descriptions, goal setting, and performance appraisals was antiquated and insufficient to support performance management and measurement needs. Clear definition and communication of performance expectations were inconsistent and, in many cases, non-existent. Finally, the old system did not clearly define ownership and accountability for performance.

Earlier in 2001, GTC management created a cross-functional team of managers and employees with the mandate to create a system that would meet the objectives and requirements of the company. Some of the objectives were to rewrite all job descriptions to include minimum levels of skill, education, experience, and knowledge; to define key result areas of deliverable expectations for each person in the company; and to develop a new annual performance management and process for annual appraisals that included self appraisal, goal setting, human resource intervention, and mandatory management review.

The team developed a system that will help the management and employees attain the company’s original objective. The new plan provides for individual performance levels that are agreed upon yearly between supervisors and the individual employees. Expectations of both management and the work force are defined and measured, career paths are clearly identified for each person in the company, and competence across the work force is constantly measured and raised. GTC has found that accountability and ownership for results is widely accepted by all employees. The philosophy of GTC in continuous improvement is defined as “What we do, not what we say.” The company’s performance appraisal and measurement system reinforces that philosophy.

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