Beruflich Dokumente
Kultur Dokumente
Submitted by:
Otis Elevator Company is the world’s leading manufacturer and service provider of
elevators, escalators and moving walkways, and has been operating for more than 150 years since
its foundation in 1853 (Marks, 2018, p. 1). From the 19th century where elevator was symbolic of
dirty industrialization, Otis has introduced various inventions and pioneered innovations, making
them one of the biggest players in the elevator industry, where they boast signature elevator
projects like the Eiffel Tower, World Trade Center, Petronas Twin Towers, and many among
One of the values that Otis Elevator Company embodied is putting people at the center of
everything they do (Marks, 2018). Hence, even in their human resources management, Otis
Elevators has been adopting relevant changes to better serve their employees. For example, they
have addressed issues in the credibility and confidentiality of their old paper-based appraisal
systems by introducing a 360-degree feedback system for their managers using internet and/or
intranet. In this system, subordinates, superiors, peers, and customers may be able to provide
performance feedback which will be used in the performance appraisals of the concerned
employees. This was developed and maintained by an independent external party called E-Group
to maintain its integrity. Prior to using the 360-degree feedback system, the company was using a
one-way appraisal system where managers are solely responsible for the performance evaluation
of the employees. Tan & Falcone (2013) opined that this is not effective because “many leaders
view the performance appraisal as a mandatory paper chase only, rather than a true opportunity to
heighten employee engagement.” (p. 60). This is prone to abuse when managers do not give credit
where credit is due, and when they want to solely claim the credits of good performance.
II. Point of View
Sandra Lee, Director of Human Resources, Otis Southeast Asia at Otis Elevator Co.
What performance appraisal system should Otis Elevator Company use to effectively
and project team leadership skills by suggesting an inclusive employee appraisal system
V. Assumptions
● The 360 degree feedback system has been implemented smoothly with no major issues
of Otis
appraisal of the managers of the Otis Company, the group identified important areas of
consideration to guide us in coming up with sound and feasible alternative courses of action.
to understand the abilities of a person for further growth and development. The main objective of
performance appraisals is to measure and improve the performance of employees and increase
their future potential and value to the company (Jordan, 2009, p.1). Other objectives include, but
1. To identify the strengths and weaknesses of employees to place right men on right job.
2. To maintain and assess the potential present in a person for further growth and
development.
Performance appraisals offer a variety of benefits not only for the employees but also to
the management. Appraisal offers a valuable opportunity to focus on work activities and goals, to
identify and correct existing problems, and to encourage better future performance. Thus, the
performance of the whole organization is enhanced. Further, it also boosts employee morale as
this is an avenue for the supervisors to sit down with employees and basically to ask how they are
doing. The value of this intense and purposeful interaction between supervisors and subordinates
B. Industry Practices
Top players in the elevator industry based on revenues in 2017 include Otis Elevators,
Mitsubishi Electric, Kone, Schindler, and ThyssenKrupp, and while their corporate offices are
mostly located in Finland, Switzerland, Germany and the United States, most of the demands of
the industry come from the most populous countries such as China and India (Wagner, 2019).
Mikkola (2000) further adds that “the elevator industry is characterized by a few large and a high
number of small local companies. Over 80 % of the world market share belong to the seven global
players” (p.13). In relation to the case of this paper, there is no common industry practice on
employee appraisal system, because this is mainly dependent and influenced by the values of the
respective companies in the elevator industry. Therefore, we give more weight to the values,
mission, and strategic imperatives of Otis Elevators in our consideration, identification, and
In its 2017 annual report, Marks (2018) emphasized their vision of giving people freedom
to connect and thrive in a taller, faster, and smarter world, and further highlighted the company
values of leading the industry with their pioneering spirit, culture of innovation, and the trust of
their customers. The company has six strategic imperatives: People first, safety, accessibility,
innovation, digitalization, and growth (p.17). Marks (2018) further reiterated how they value
people in their organization when she said that “we are convinced that our activity should focus
on people. The people who form our group are those who enable the customers to feel satisfied
and also those who allow millions of users to feel safe and comfortable when using Otis equipment.
Our company employees are our principal capital, the foundations of the success of this project.”
(p.18). Otis Elevators also values being reliable, smart, and future oriented, they wanted to create
personal and connected world, and they roll up their sleeves to get things done. (Otis Website,
2019). Finally, Otis Elevators is consistent with United Technologies, their parent company, on
their commitment to create an environment and culture where all their employees can be
Leadership)
design, design review and approval, and/or determination of environmental and safety impacts of
work processes and products (buildings, utilities, systems, sites, mapping, or infrastructures);
provide project management oversight, which may include supervision of lower level staff;
implementation of projects/plans according to codes and regulations, which may include approval
authority. It also includes exercising judgment and decision-making that directly impacts life,
For purposes of this case, the following are the minimum competencies of an Engineering
Manager:
Competency Definition
Knowledge and the ability to keep up with current developments and trends in areas of
Engineering Knowledge of and ability to use effective approaches for choosing a course
Decision Ability to make decisions and take action consistent with available facts,
Making & constraints, and anticipated consequences. Identify issues, obtain relevant
Analysis information, relate and compare data from different sources, and identify
alternate solutions
Communication Ability to communicate, in written and oral form, detailed and technical
to various audiences to ensure that they understand the information and the
Design and plans and modifies methods. Identifies and plans for resources. Approves
changes
assignments.
The team decided to make use of Lewin’s Force Field Analysis in evaluating the case. The
Force Field Analysis was created by Kurt Lewin in the 1940s. It is widely used in change
management and can be used to understand most change processes in organizations. The idea is
that situations are maintained by an equilibrium between forces that drive change and others that
resist change. For change to happen, the driving forces must be strengthened, or the resisting force
must be weakened.
The force field analysis integrates with Lewin’s three stage theory of change working
towards unfreezing the existing equilibrium, moving towards the desired change, and then freezing
the change at the new level so that a new equilibrium exists that resists further change.
● First, an organization has to unfreeze driving and restraining forces that hold it in a state of
quasi-equilibrium
● Second, an imbalance is introduced to the forces to enable the change to take place. This
● Third, once the change is complete the forces are brought back into quasi-equilibrium and
re-frozen.
The Lewin’s framework will aid the team to fully understand the proposed solutions
holistically in line with the organization’s main objective in using performance appraisal to
whereby employees are appraised based on the data and feedback gathered from various sources
such as their respective superiors, peers, subordinates, clients, and even the employees themselves.
The stakeholders, which typically total eight to twelve people who have routine or significant
interactions with the manager, receive a feedback form that includes a questionnaire covering a
range of important competencies relative to the manager’s job requirements. Through this
appraisal methodology, the manager’s performance is rated by his/her superior while their
subordinates and peers also make an evaluation based on general competencies that may include
leadership, project management, decision making, communication, and coaching skills. Self-
appraisal is also an important component of this methodology where the manager is given an
opportunity to assess his/her performance reflecting on own strengths and development areas as it
relates to his job requirements and career aspirations. The clients, both internal and external, are
also asked to provide their comments about the performance of the manager and his/her team as it
relates to projects and engagements that involve them. It is called 360 degrees because the feedback
comes from the above, alongside, and below as it regards to the hierarchy, which ensures a
contributions.
Advantages:
2. The gap between self-assessment and other’s assessment about the manager’s
Disadvantages:
biased
management appraisal that focuses on a mutually agreed set of goals and objectives by the superior
and subordinate. The managers, together with their respective superiors, will jointly discuss and
agree upon measurable objectives based on the former’s major areas of responsibilities and their
need to develop themselves. The objectives should also be aligned to the common objectives of
the organization through various Key Result Areas (KRAs). With the superior’s guidance and
approval, the subordinate manager then comes up with detailed action plans as to how to achieve
the said goals that become the basis of their periodic review. During these instances, they come
together to both evaluate the progress of the employee towards the identified objectives where any
deviation needs to be addressed through action items. The superior is expected to play a supportive
role to encourage and motivate the subordinate manager to perform to his/her best ability. It is a
continuous process that should happen three to four times a year, or even more often based on
actual needs, to make sure that necessary feedback is given with the right frequency and timeliness.
Advantages:
2. It forces managers to think how the objectives can be achieved and what help and
Disadvantages
1. Manager’s important leadership and management competencies may not be
addressed
4. Stakeholders feedback, such as that of subordinates, peers, and clients, may not be
The Traditional Scoring and Bell Curve are examples of old performance appraisal
methods based on job knowledge, capacity, judgment, initiative, attitude, loyalty, and leadership.
To establish a quantifiable and standardized process, Otis Company will set numerical ratings to
represent the different levels of manager’s performance based on company expectations and
objectives.
Through Scoring or Rate Scale Method, the managers will be rated from a scale of 1 to 10
where 1 indicates negative feedback and a need for performance improvement while 10 for positive
feedback and excellent performance. Rating will come from the managers’ superiors based on the
available data at hand as well as their superior’s own judgment and observation. It will be
documented and be followed by a discussion between the managers and their respective superiors.
This method will be complemented by another traditional method, Bell Curve System. Otis
leadership will group the best, mediocre, and the least performing managers based on the ratings
provided for the by the manager’s superiors. Necessary adjustments will be made to make sure a
normal distribution of managers’ final ratings, i.e., most managers should fall in the average rating
while a few managers will be skewed to the left and right of the bell curve.
Advantages:
1. Managers will be rated by their superiors who have a clear understanding of the
2. The targeted line items in a Scoring sheet provides easier evaluating experience for
raters.
3. The Bell Curve Method has predetermined categories which are easy to understand,
Disadvantages:
3. Managers will have a low buy in rate because of its lack of transparency.
4. Leadership does not have a concrete basis how managers are ranked and grouped.
The managers and their respective superiors will agree upon quantifiable objectives based
on identified KRAs following the concepts and methodologies of MBO. To supplement this,
feedback from the manager’s stakeholders as well as from one’s self about leadership and
management competencies will be gathered and consolidated following the concepts and
company’s common objectives as well as the manager’s need for personal and professional
development, identify what resources are needed, and describe how to optimize their relationship
with their stakeholders to ensure success. Regular discussions will be arranged between the
managers and their respective superiors for check-points as to the manager’s progress. Discussions
will include assessment of the numerical targets as well as progress related to other competencies.
Stakeholders who may have significant feedback about the performance of the managers, such as
fellow managers, direct reports, and clients, will be asked to rate the manager and provide
qualitative comments about the strengths, development areas, and valuable contributions of the
manager.
Advantages
1. The integrated method aims for the holistic development of the managers. Not only
does it measure the manager’s metric attainment, but it also evaluates the managers’
Disadvantages
1. More complex materials will be created for the appraisal. Conducting the appraisal
will be more complex than traditional methods. It will require different materials
Using the Lewin Force Field Analysis, factors are ranked from 1 (weakest) to 4 (strongest).
Each factor for different ACAs were ranked in line with the organization’s use of their appraisal
system which is to improve project leadership and project management skills. The scoring was
anchored in the organization’s value wherein they clearly stated in their annual reports that “Our
company employees are our principal capital, the foundations of the success of this project”. The
ACA with the highest net forces for change will be chosen as this represents the most feasible
12 10
12 10
10 11
12 9
SUMMARY OF RESULTS
Net Score 2 2 1 3
VII. Recommendation
Based on the group’s assessment of the alternative courses of action using the Lewin Force
Field Analysis, we recommend that Otis Company follow an integrated approach of 360 Degree
integration of these two approaches presents the benefits of properly assessing and developing the
performance of the managers based on agreed set of goals that will incorporate the feedback
gathered from various stakeholders. This approach ensures a holistic evaluation of the manager’s
development because it does only capture quantifiable accomplishments based key result areas but
also the necessary skills required of a manager that are difficult to measure in numerical terms.
Furthermore, the managers will be empowered to work with their respective superiors in coming
up with development plans to achieve their goals and will be given the chance to assess their own
performance. Periodic reviews will be beneficial because feedback is given in a timely manner,
which then ensures that issues and concerns are addressed properly. While it is very tedious and
time-consuming for Otis Company to adapt this performance appraisal approach, the benefits will
be worth the investments because it will lead to highly performing, motivated, and engaged
managers.
Job Analysis The HR and the Management shall discuss HR and December
Review the competencies and requirements of an Management 2019
engineer manager.
Drafting of the The HR drafts the new policy incorporating HR and December
new Policy MBO in the new performance appraisal Management 2019
system. This should be approved and signed
by the management
Setting of Goals The manager sets specific goals for Manager February
himself/herself that is aligned with the job 2020
requirements and organizational objectives.
He/she also creates a developmental plan to
achieve these goals as well as identify
resources needed.
Approval of The manager and his/her superior discuss the Manager and March 2020
Goals goals and development plans and make Superior
necessary changes based on superior’s inputs
and suggestions. The final goals shall contain
the descriptive objectives based on job
requirements, numerical targets based on key
result areas, and the criteria by which
performance will be evaluated.
Establishment of The manager and his/her superior agree on Manager and February
Check-point the schedule and frequency of check-point Superior 2020
Frequency meetings which acts as a venue to
periodically assess the progress of the
manager as it relates to the objectives.
Periodic Periodic reviews with the manager and Manager and All
Reviews superior may happen quarterly, monthly, or Superior throughout
bi-weekly depending on needs. During these the year
meetings, the progress will be assessed,
priorities may be adjusted, and feedback
should be given.
Client Feedback The superior shall provide a feedback form Clients and January to
to the clients and ask them to rate the Superior October
performance of the manager and provide 2020
qualitative assessment of skills, behaviours,
and contributions.
Calibrate All superiors shall meet to discuss and share Superiors November
Feedback the overall feedback on their managers to 2020
calibrate the rating among the managers.
This will ensure that all raters are using the
same guidelines and follow the same criteria
in evaluating the performance of the
managers.
Share Feedback The respective superiors have to meet with Superior and December
the managers to share with them the overall Manager 2020
rating and performance feedback in terms of
manager’s strengths and achievements as
well as areas to improve on and suggestions
for development based on various sources.
Survey About The HR shall send out a survey to everyone HR, December
the Performance who has experienced the new performance Managers, 2020
Appraisal appraisal methodology to gather inputs for Superiors,
Method further improvement. Revisions on the Subordinates
approach may be implemented based on the
results of the survey.
In this case, we have learned the importance of performance appraisal for organizations
and development of its employees. One important point that we noted is that performance
appraisals are used for different purposes such as identifying training needs and rewarding
depending on the industry, nature of business and most importantly, the organization’s values.
360 degree feedback promotes inclusivity. However, for organizations like Otis,
requires highly technical skills that makes it difficult to assess without a well designed matrix.
Adding more objective measures reduces bias in the performance appraisal process that will lead
Lastly, frequent and timely feedback plays a significant role in the professional
development of the employees. Management should prioritize objectivity while ensuring that the
current appraisal system promotes the company’s values. A sound performance appraisal system
https://sites.google.com/site/whatishumanresource/objectives-of-performance-appraisal
https://www.managementstudyguide.com/performance-appraisal.htm
https://ts.hr.ncsu.edu/wp-content/uploads/sites/14/2016/06/Engineer.pdf
http://www.economicsdiscussion.net/performance-appraisal/modern-methods-of-
performance-appraisal/31624