Telespazio Performance Appraisal: Challenges And Strategies

Telespazio: From Its Origins to Its Development into a Leading Global Company in the Space Industry

“Dear colleague,

The Telespazio Performance Appraisal is one of the primary tools for human resource development and management, and its correct use is one of your main responsibilities.

Our organization sets important challenges at the transnational level, leveraging on personnel motivation. Optimal use of the appraisal system is extremely important when it comes to achieving this. For these reasons, this year, I am looking forward to receiving your full commitment to the management of the process, which is divided into two phases:

• Phase 1: evaluations related to the previous year must be finished by no later than April l5^th, 2011.

• Phase 2: you are asked to define the 2011 objectives for your subordinates by no later than April 30^th, 2011.

Regarding Phase 1, I have to stress the importance of the evaluation, which must be based on fair and realistic criteria, while also respecting deadlines.

I look forward to receiving your full commitment to the appraisal process.”

It was January 2011 when Telespazio’s CEO, Carlo Gualdaroni, sent this letter to all of the company’s managers in order to strengthen their commitment to the appraisal program. Gualdaroni considered the Performance Management System to be crucial to the organizational change process undertaken by the company. As a matter of fact, the top management team had been renewed and a new organizational matrix model had been introduced in the fall of 2010. This re-organization also involved the HR Function. With the change in top management, the entire HR Management and Development System had been redesigned by the new Organizational Development, Management and Training Function. Marta di Santo was in charge of this, and it had been validated by the senior management team. The CEO, Carlo Gualdaroni, stated: “For the very first time, all of the components of the HR System (Development, Organization, HR Management and Training) fall under a single coordinating structure in the HR Department; this can only provide a new momentum to Telespazio, which will be even more market-driven, international and based on a matrix model”

Telespazio: From Its Origins to Its Development into a Leading Global Company in the Space Industry

Telespazio, a space services company, headquartered in Rome (Italy), has roots dating back to 1961, when Italcable and RAI founded the business under the auspices of the CNR (National Research Council) and the Ministry of Posts and Telecommunications.

From the very beginning, the heart of the firm’s activities was telecommunications using artificial satellites, and it quickly partnered with NASA. The creation of the company opened the horizons of space to Italy, and enabled the country to take part in experiments with new forms of telecommunication.

The Telespazio Performance Appraisal System

In just a few years, Telespazio expanded by way of its successful technological developments, achieving important goals that marked the history of telecommunications, such as the live television broadcast of the moon landing on July 20, 1969, which was made possible by the parabolic antennas at Fucino, the Space Centre inaugurated by Telespazio in 1967. The Fucino Space Centre was, at that time, one of only four such stations on the continent (the others being Plemeur Bodou in France, Goonhilly in the UK and Raisting in West Germany) that were capable of receiving TV signals via satellite from anywhere in the world.

The aim of the system is twofold: (1) to ensure that the company achieves positive results, and to promote the professional development of employees. Accordingly, it focuses on two aspects of employee performance: goals/objectives and competencies/skills

The identification of objectives is a crucial phase, as it is considered to be the basis on which each employee focusses his/her efforts throughout the year.

Each objective should: be related to an individual department’s budget plan, be coherent with the activities planned for an employee’s team, and cover an employee’s development needs. Along with business related objectives, attention should also be paid to the definition of goals that are geared towards an employee’s professional development, such as the attainment of an advanced proficiency in English, or the acquisition of the technical knowledge needed to operate a specific application.

Importantly, in order to ensure joint ownership of, and involvement in, this process, the system allows middle managers, professionals and specialists to set their own objectives and enter them directly into the system. Their supervisor can then modify them or add new ones with the approval of the employee.

T-PAD. The revised appraisal program

At the end of April 2011, the HR development team decided on how to improve the PAT program. The major revisions included:

Revised rating categories: the old numerical, three-level rating scale for the evaluation of both objectives and competencies was replaced by a new four-level rating scale that is consistent with the one used for the overall evaluation. This expansion was made at the request of a number of different evaluators, who expressed the need to have a better opportunity to differentiate between different performance levels

These revisions were communicated to all managers and employees through an email sent by the CEO during the launch phase of the new appraisal process for 2012. Furthermore, a meeting with all supervisors was planned, with the objectives being to share the previous year’s evaluation results and to explain how to handle the new program. The revised PAT, now named T-PAD (Telespazio Performance Appraisal for Development), was illustrated in an article published on the intranet. A new brochure was also distributed to all employees.

You are required to answer all three questions: 

1. In a context where the company is evolving into a matrix organisation, should Telespazio adapt a double-rater system or should responsibility for performance appraisal be given to only one supervisor (e.g. the Business Unit Manager or the Country Manager)? What are the advantages and disadvantages of each approach? Discuss .

2. Why is the Telespazio HR team concerned about equity and the selectivity of managers' evaluations? What actions would you suggest to improve managers' rating skills?

3. How does Telespazio plan to address the transfer of the appraisal system to its foreign subsidiaries? What strategies would you suggest to facilitate this process?

Telespazio: From Its Origins to Its Development into a Leading Global Company in the Space Industry

Since it is incorporated as the Finmeccanica Group, the company has tried to align its employees strategies plus performs towards those for the parental corporation. The greatest trial for the HR crew is for fostering the calculated plus organizational modification which will convert the internal telecommunications corporation into the leading firm that is global in terms of satellite resolutions plus the amenities. The instance will focus on the strategy plus enactment for the new act system of appraisal. This will begin with the formation of the charge force that will help form the fresh appraisal scheme (O’Donnell, 2000,pp.548). Next, this case offers for the comprehensive explanation of performance appraisal platform and also describes main leavers that adopted the change from the modest appraisal standpoint to a more tactical approach that is multifaceted. To add to that, the case tries to explain system support for the shift of the company towards the project-based union. The leading part which is the first face will end in a few years’ time. This will happen in six years’ time after the first application. Therefore the HR crew needs to meet up and assess the end-results that are accomplished. Therefore, the performance appraisal should be allocated to only one supervisor considering the fact of how their system is arranged and run. This is because the appraisal tries to illustrate and show the person that is in charge of assessment plus the steps that are involved in the appraisal. The approach has various benefits and at the same time, it has some disadvantages. Among the advantages; the approach will promote transparency, the will be equal sharing of the resources, there will also be a clear definition of the objectives that will be jointly, the approach will also help in focusing on the roles plus the competencies of each individual and lastly the approach will help to focus on the observable behaviors (Armstrong, 2011, pp.57)  The approach is also paperless. Another advantage is that the approach will help the company in achieving its positive results. It will also help in the promotion of professional development for the employees. The approach will also help to look at the performance of the employees and the skills of the workers. On the other hand, the program has some disadvantages. One of the disadvantages is that there were delays which occurred. The delays were against a planned schedule hence becoming a problem to the smooth running of the program. This led to the budget deadlines taking precedence over the performance appraisal. Another disadvantage is that of equity plus selectivity. This is because the data that was generated from the HR signified that rating distributors became biased towards the positive performance plus uneven amongst the different business units plus departments. Another disadvantage is that of rigidity. This is because some of the remarks were considered and amended in relation to the rigidity of the system. The last disadvantage is that of HR management. This is because there was the presence of dual line for authority.

The Telespazio Performance Appraisal System

The HR crew has a great concern towards equity plus the selectivity of the manager’s evaluations because e of the significant investments made by the company in the targeted training assessors. Another reason for the concern is that there are no steps for the ranking of the distribution. Another concern is that most of the ratings become inflated, others do not become differentiated and also some of the managers give superior ratings for their staff (Graham, 1994, pp.81). Therefore this kind of ratings cause appraisal risks hence having some demotivating effects towards those workers that have been evaluated in a correct way by their seniors. The concern is also to ensure that more and more effort is put in for the training and even communication purposes. However, that cannot be enough because some changes need to be made. The other reason for the concern of HR team is that the managers need to have in mind differentiation of their employees because it helps in the system effectiveness. Every action has to be evaluated well for action to be taken in the right direction. Revision for PAT also draws a great concern to the HR team. This is because it will aid in addressing the importance of the change that is needed within the organization. This will make the employees in the organization to have confidence in the new working technique.  Another reason for the concern is that as the company, it has to achieve rigid integration for the operations all over the world plus adjust to the multicultural context. On the other hand, some actions need to be taken so as to improve the skills of the manager (Langewitz, 1998, pp.276). One of the ways is through defining the vision of the company plus going further to broadcast it. As a manager of the company, he or she should develop a vision which is clear. He or she should also spell out clearly the purpose of the company, the impact the purpose will have on the company.  The way of achieving this is through holding meetings with the employees to share the vision and also writing the vision and even posting it on the places where it can be seen by everyone within the organization. Another way that can improve the rating skills of the manager is through recognizing the power for influence through the personal branding of the organization. This involves creating a positive picture in the employees of the company who will be looking up to the manager as their leader. Therefore personal branding will help to create the power for influence within the organization. This can be achieved by setting a dress code for the company which is very clear and at the same time very consistent (Smither, 2003, pp. 44). Another way is through making the work within the organization to be fun. When one enjoys working he or she becomes more productive hence creating and a smooth working environment. This can be achieved through lightening up, having a laugh in workplaces plus encouraging the employees to enjoy themselves as they work (Harzing, 2001, pp.379). This is because work is a day to day activity hence it should be enjoyable so as to create a conducive environment for working.

Challenges Faced by Telespazio

Telespazio has plan of transferring its appraisal system through various ways. One way is through the implementation of a system for Telespazio in Argentina. This is the pilot country for the company. This was achieved by working with the local human resource department. The HR helped to create a structured system. The system helped in bringing all the ten local supervisors together hence making them aware that the strategic appraisal system has various roles. Another way is that the company set some targets (John, 1994, pp.238). One of the targets is that by the year of 2013 in the month of September the implementation process within Germany and even in France will have come into an end and achieved the targets that were put in place. This is because the managerial systems plus the leadership styles in these countries are very different.  In France, Telespazio has almost four hundred employees hence creating a very strong culture that is well established for local evaluation. This will aid in the transfer of the T-PAD program. Another way is the careful planning of the international implementation. This will help in the smooth running of the company activities within the foreign countries. Various processes can be used to facilitate the process. One of the ways is using ethnocentric approach. This approach will aid in making decisions within the headquarters and the foreign subsidiaries that have little autonomy. This is because most of the domestic plus foreign operations are always held within the headquarters management (Lee, 2008,pp.281). On top of that, the subsidiaries are always managed by the expatriates within the home country. Therefore this will help to facilitate the process because the competence for development for the expatriates is applicable to the local managers. Another strategy is the usage of the polycentric approach. In this approach, the expatriation stops becoming the center for international development scheme. This, therefore, treats each subsidiary as the entity that is distinct plus at the similar time, it empowers the policymaking autonomy. Most of the time the subsidiaries are managed locally by the locals who become promoted to the headquarters. This enables those appointed to gain more experience that can help them to operate even in foreign countries.  By doing this, it will help to integrate the process of achieving the international activities of the organization. Another way is that of strategic planning plus job analysis. This is done through the establishment of the international assignment. It is also done through stating clearly the goals of the organization and the job description plus even job specification (Wayne, 1999, pp. 595)

References

Armstrong, M., 2011. How to be an even better manager: A complete AZ of proven techniques and essential skills. Kogan Page Publishers. Pp.57

Armstrong, M. and Baron, A., 2005. Managing performance: performance management in action. CIPD publishing.

Graham, S., Wedman, J.F. and Garvin?Kester, B., 1994. Manager coaching skills: What makes a good coach?. Performance Improvement Quarterly, 7(2), pp.81-94.

Harzing, A.W., 2001. Of bears, bumble-bees, and spiders: The role of expatriates in controlling foreign subsidiaries. Journal of World Business, 36(4), pp.366-379.

John, K.A., 1994. Enhancing effectiveness: An investigation of the advantages and disadvantages of value-based intragroup conflict. International journal of conflict management, 5(3), pp.223-238.

Lee, A., 2008. How are doctoral students supervised? Concepts of doctoral research supervision. Studies in Higher Education, 33(3), pp.267-281.

Langewitz, W.A., Eich, P., Kiss, A. and Wossmer, B., 1998. Improving communication skills-a randomized controlled behaviorally oriented intervention study for residents in internal medicine. Psychosomatic Medicine, 60(3), pp.268-276.

O’Donnell, S.W., 2000. Managing foreign subsidiaries: agents of headquarters, or an interdependent network?. Strategic management journal, 21(5), pp.525-548.

Profile, S., Samarra, A., Innocenti, L. and Gabrielli, G., 2018. Performance appraisal at Telespazio: Aligning strategic goals to people development.  The Italian Model of Management (pp. 31-48). Routledge.

 Roth, K. and O'Donnell, S., 1996. Foreign subsidiary compensation strategy: An agency theory perspective. Academy of Management Journal, 39(3), pp.678-703.

Smither, J.W., London, M., Flautt, R., Vargas, Y. and Kucine, I., 2003. Can working with an executive coach improve multisource feedback ratings over time? A quasi?experimental field study. Personnel Psychology, 56(1), pp.23-44.

Wayne, S.J., Liden, R.C., Kraemer, M.L. and Graf, I.K., 1999. The role of human capital, motivation and supervisor sponsorship in predicting career success. Journal of Organizational Behavior, 20(5), pp.577-595.