REI’s Purpose Drives Its Performance Management REI, Recreational Equipment, Inc

Question

REI’s Purpose Drives Its Performance Management REI, Recreational Equipment, Inc. designs and sells equipment for outdoor recreation, is a consumer cooperative rather than a publicly traded corporation. The culture is casual, fun and nontraditional, but also concerned with high performance. Michelle Clements, REI’s SR VP for HR recommend to abolish the current performance appraisal system and the employees agreed. She developed a new program called “Real Talk, Real Results.” Instead of focusing on annual reviews, the new system focused on training managers to give meaningful feedback. A unique part of the system was built around “anchor points”, using the analogy of rock climbing, and managers earned anchor points through training on various performance topics. The program has been a great success. Post to the discussion board the answer to the following question. Be thorough! How did REI address the strategic, administrative, and developmental purpose of performance management?

Explanation / Answer

How did REI address the strategic, administrative, and developmental purpose of performance management?

REI actually mofdified the performance appraisal system to the anchor based system, it serves the same purpose and acts the same way as the best appraisal systems which are based on the goals and achievement of the goals to get appraised.

But the difference was all the goals were more clear, as it came after the short or long training, the intnet the ways and the methods were learnt, proper feedback was provided and then these anchors were set, so it made more sense for them to relate to the goals or anchors and when the training outcome were to be measured just after the training it is more relevant and the output will be better.

So the trategic part was alwys there, as the plans were laid out and was long term in vision as the trainees will remember them better.

The administrativepart of documentation went as logging in the learnings and so setting own target and those are for all managers to review when required, from a forcing of goals now it was proactive ownership of goals that were shared with seniors.

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