Case 8-1
Summary
Jelly Belly is a company that believes in a fun work environment for employees, in addition to superior
customer service and a reliable product line. Jelly Belly also believes in a commitment to a code of
conduct and ethical business standards for both employees and vendors. Due to these high expectations,
there is an important commitment to developing both an innovative and accurate performance appraisal
system.
Analysis
The Jelly Belly case offers a potential solution for organizations to provide more accurate performance
evaluations for employees. By going to a year-round model of which information can be uploaded at any
time by managers, the opportunity for feedback to be provided increases and managing performance can
be an ongoing part of job evaluation.
The use of an electronic monitoring system may also provide a more accurate appraisal. Managers now
do not have to wait until one certain period in the calendar year to provide feedback and may make notes
regularly to help their employees improve in their positions.
Questions
1. What is performance management and what is the driving force behind Jelly Belly Candy Company’s
performance management approach?
Performance management is the process of identifying, measuring, managing, and developing the
performance of human resources in an organization. Every successful firm understands that employee
2. What is performance appraisal and what are the key features Jelly Belly Candy Company wanted in
their new appraisal system?
Performance appraisal is the ongoing process of evaluating employee performance. Poulos and her team
did have concerns and drew up a list of factors the system had to incorporate. Primarily “we didn’t want
3. What is the performance appraisal process and how does Jelly Belly Candy Company’s new appraisal
system incorporate those processes?
The performance appraisal process includes four steps: job analysis, developing standards and
measurement methods, using informal appraisal (coaching and disciplining), preparing for, and
4. How did the question of performance accuracy affect the development of Jelly Belly Candy
Company’s automated appraisal system?
Performance accuracy deals with questions of validity/reliability (we are measuring what we say we are
measuring and we are measuring it consistently), acceptability/feasibility (appropriate and able to be
5. Why did Jelly Belly Candy Company redesign their performance appraisal system?
Performance appraisals are conducted in order to inform employees as to their performance, allow
management to make decisions about employees, and motivate and develop employees (engagement).
6. What does Jelly Belly Candy Company evaluate when they conduct employee appraisals and why are
they using that approach?
There are three primary options for what to evaluate: traits (personal characteristics), behaviors (actions
taken by the individual), and results (measure of goal achievement). Jelly Belly Candy Company’s new
7. Who is assessing training performance at Jelly Belly Candy Company?
Performance appraisals can be conducted by supervisors, peers, subordinates, oneself, and customers.
8. What trends in performance appraisal are affecting Jelly Belly Candy Company’s appraisal system?
Three issues that have affected appraisal systems in general are using more continuous appraisal systems,
Case 8-2
Summary
Amazon, originally a large, online bookstore, expanded rapidly into the retail market by creating a virtual
retail megastore, in addition to offering services such as self-publishing, online advertising, their own e-
commerce platform, hosting, and credit cards. In 2013, Amazon only employed one third of the
employees that both Target and Home Depot combined did and generated the same amount of revenue.
Amazon’s strategy became to provide excellent customer service instead of the lowest price products by
capitalizing on a giant warehouse and automated work processes.
Analysis
There are multiple layers to the Amazon case study which can be addressed by an instructor. First, it must
be stated that job turnover among the lower-level positions at Amazon is considerably high, and Amazon
should have performance evaluations that ensure that those positions are filled and the higher performers
are promoted. This is where the Organization and Leadership Review (OLR) system is utilized.
Questions
1. Do you think OLRs increase employee motivation? If not, why would Amazon conduct such
performance appraisals?
Amazon accepts the fact that their turnover rate is high and it became a part of their business model.
2. How might rater bias, stereotyping, and traits appraisal impact the accuracy of OLR? Could this be
corrected? If so, how?
These are the elements that influence the promotion decisions and making the whole process unfair—
distribution may not always be in favor of high performers. Trait appraisals: If the physical and
3. Given the differing appraisal systems described in this chapter, which appraisal systems mostly
closely resembles OLR?
OLRs are conducted for two main reasons: First, to determine the lowest performing 10% and replace
these employees with fresh, ambitious candidates. Second, since there are a few promotions available and
4. Given your answer to the above question, what appraisal system do you think would best meet
Amazon’s objectives of retaining the best employees while taking corrective action with the bottom
10%?
Even though it is not as effective as it should be in distributing promotions, ranking method is the system
that would still best meet Amazon’s objectives. In terms of dismissals—detecting the bottom 10%, this
5. Amazon is a high-technology firm. How might they use electronic performance monitoring to
supplement the OLR process?
Amazon would benefit from it highly if electronic performance monitoring (EPM) system were initiated.
In OLRs, it is not certain whether the current ranking method is valid in terms of detecting the bottom
10% and the top performers. However, monitoring its employees electronically would drive more
6. What are the advantages and disadvantages of having performance reviews like OLR, versus MBO,
that are single way communication?
MBO is a method that mostly provides developmental solutions for employees whereas OLRs are highly
evaluative. There is a result-based, strict one-way communication in OLRs; employees are not even
present to hear what the managers have to say about him/her. If it is a layoff case, employees are nothing
but numbers on a report ad this is the main disadvantage of OLRs. Employee values are not taken into
