Case Scenario:
Before I enlisted I worked at a mortgage collections company. It was tedious work done solely through the telephone. The department set particular goals for contacting overdue customers and meeting their needs. The goals were:
1. Number of customers helped per hour.
2. Specific customer criteria checklist covered (e.g. confirm telephone number, confirm address, thank them for calling, etc.).
If an employee somehow managed in the 10% of call volume, and met 90% of their checklist on randomly pulled recordings, they were entitled to a $375 monthly bonus. According to exhibit 9.4, regarding goal setting theory performance based pay should be contingent upon goal completion, challenging and specific, and match the amount of goal difficulty. This goal failed to match the degree of difficulty in achieving both goals one and two above. Whenever my call volume increased into the top 10%, my criteria checklist percentage dropped drastically. Whenever my criteria checklist was above 90%, I was not in the top 10% of call volume. Why? Because it takes longer to go through a checklist! This was the most frustrating goal I have ever experienced in my life. As a result, many employees lost line-of-sight with the performance goal, deeming it impossible and refusing to pursue it. In fact, shortly after I left the company, the division was shut down. My guess is that it had something to do with impossible goals.
I need to produce an employee performance with a peer response.