Adobe’s Performance Evaluation
a) Summary of the Case Study
The purpose of this case is to show how Adobe converted its traditional Performance Appraisal Method into the ‘Check-In’ system. Donna Morris, then senior vice president of human resources at Adobe Systems, spearheaded and executed this procedure. Because the company was transforming its business model, such as substituting annually every two years software packages with cloud-based services that were supplied in instantaneously, employee performance management had to be real time as well. Establishing and assessing expectations, continual coaching and mentoring, and opportunities for improvement were all part of the new approach. Both the corporation and its employees benefited greatly from this strategy (Stanford Technology Ventures Program, 2017). Adobe had a typical annual performance review approach in which management would assess every employee’s prior performance using a 360-degree review and prepare a report. Every employee received an overall evaluation from one of three categories; low performer, solid performer, strong performer or high performer.
The traditional approach had flaws and limits that have been highlighted in the case study. Some of these include Stack Ranking because the evaluation was based on Stack Ranking, individuals were concentrated on surpassing their peers, diverting their attention away from the importance of collaboration at Adobe. Another is timing where the appraisal was still not made immediately because it was done yearly (247essayhelp.com). It never recognized real-time difficulties and instead concentrated on assessing previous performance with little regard for future results (Stanford Graduate School of Business, 2012). It also concentrated on performance over the previous few months instead of the entire year. People grew jittery at this period of year, and attrition rates skyrocketed. Also, the issues of having labels were identified in which employees were given labels that were not very inspiring and stayed with them for a long time.
b) Industry Analysis
I) See examples at https://247essayhelp.com/assignment-help-service/get-business-assignment-help-from-expert-writers/
The industry analysis of Adobe is meant to showcase the position of the organization in comparison to other participants within which it operates. The Porter’s Five Forces provides an almost accurate analysis of the competitive environment (Lichtenthaler, 2016). The factors described in the analysis are substitute products, customers, suppliers, new market entrants’ threat, and competitive rivals.
New Entrants Potential
Entry into the business takes significant cash and resource investment, which is one element that lessens the threat of new entrants for Adobe Inc. If differentiation is substantial and clients place a high value on the special experience, this pressure ultimately loses power. Also, Adobe Inc will encounter the minimal new entrants if present regulatory environment applies various difficulties towards the new firms willing to engage in the industry. In this scenario, entry-level companies may be deterred from coming to market by the need to satisfy stringent, time-consuming regulatory standards (Hassan, 2022). By focusing on customer relationship management, Adobe Inc. can increase brand loyalty and counter this danger. The psychological changing costs will increase. Additionally, it can establish long-term business contracts with suppliers to increase control of the target market.
Substitute Products
For Adobe Inc. and other established businesses, the competitive landscape is difficult given the abundance of substitute services. High substitution threat indicates that consumers have access to substitute goods and services from other sectors of the economy. The severity of this challenge to Adobe Inc. depends on a number of things. When a less expensive equivalent product or service is offered by another sector, the threat of substitute services increases (Michaux et al., 2015). If Adobe Inc. can demonstrate how its provided product or service is superior to the alternatives that are now available, it will be able to lessen the threat of substitute services. As a result, it should give customers compelling reasons by giving a superior experience and excellent value.
Customers
This influence has a direct impact on Adobe Inc.’s capacity to meet its goals. Strong negotiating position reduces profitability and increases industry competition. Conversely, whenever prices were low, it makes the sector less aggressive and enhances the profit and growth potential for Adobe Inc. The purchasers’ negotiating leverage against Adobe Inc (Schwarz, 2014). is influenced by a number of factors, like more focused existing customers. In contrast to a large number of suppliers (corporate organizations), a small number of buyers will likewise have a strong purchasing power.
Suppliers
Buyers pay a price when suppliers have significant bargaining power because- (business organizations). High bargaining power of the suppliers can also boost industry competitiveness and reduce Adobe Inc.’s potential for growth and profitability. Corresponding to this, an industry with limited supplier power may be more alluring due to its high profitability and room for expansion. If providers have consolidated in a certain area and are more focused than their customers, Adobe Inc. will benefit from strong supplier bargaining power. The competitors’ position against Adobe Inc. is strengthened when there are few providers and a significant demand for the product they are offering. Suppliers’ advanced integration diminishes Adobe Inc’s stance because they also are contenders in that sector.
Competitive Rivals
The fight between already-established businesses reveals the number of rivals who fiercely compete with Adobe Inc. High rivalry demonstrates that competing companies can exert significant pressure on Adobe Inc., which may restrict each other’s ability to grow. Profitability in such businesses is low as competitors undertake aggressive pricing and targeting techniques against one other. If there are few competitors, the market is expanding quickly, and there is a definite market leader, then Adobe Inc. will face little competition from other companies (Schwarz, 2014). Similar to this, there are other variables that fuel competition among already-established businesses for Adobe Inc. For instance, the company will experience strong Rivalry between existing enterprises if market participants are strategically varied and seek the same industry.
c) Case Study Assignment Help SWOT Analysis
The changes that Adobe made through Morris’s the change in their system of appraisal saw a change in their operation. This SWOT for the company reveals some of these developments.
Strength
One of the core strengths of the organization following the change in their system of appraisal is the motivation among the employees. After the change of system, they adapted well and would regularly meet their goals and organizational objectives (Adobe Inc., 2019). Also, Adobe is known for its creativity and innovation. They also have a large workforce striving to meet their objectives. Adobe has strong popularity and equity, as well as a strong market position.
Weakness
From the case study, one realizes that there are some weaknesses which Adobe exhibit and needs to work on as a result. Some of these include the fact that the organization has a wide range of products and deals in many services, but most people in the public are not aware of them. Further, most of their products are on the higher side of pricing for individual buyers. It means most people cannot afford to purchase these products for individual use.
Opportunity
The opportunities which Adobe has the growth include growth in online market segment which they, as an organization, can leverage to their advantage. Through the embracement of online segment, Adobe can easily use better performance in the future in case such a need arises. Also, the organization can use their newly adopted performance appraisal to attract talent within the personnel. There could be individuals who would want such a system and could be willing to work for Adobe. This aspect can extend to them acquiring smaller companies that operate within the same segment.
Threat
The threats that Adobe as a company faces include the growth in the market. This growth is characterized with many changes which might not be engulfed in the structures and processes at the organization (Adobe Inc., 2019). As such, Adobe is forced to adapt to and embrace the changes as they come.
d) Role of leadership
Leadership within the company ensured that the strategic changes were done despite the culture to reduce the redundancy that was being seen. They checked the flaws and limitations that the company had and were willing to make a drastic change, while including the employees. Among the most important areas where there was a lack of planning was guaranteeing that the new method of giving feedback was received and understood by employees. The new technique of assessing and comparing might be judged an effective adjustment for Adobe and their staff if it ensures that perhaps the feedback given does not fall on deaf ears and also that the information results in meaningful development and reform (Stanford Technology Ventures Program, 2017). Managers spent many hours negotiating each employee’s yearly performance review procedure, which concluded in a year-end feedback session. Managers were unable to provide continual performance feedback to their staff due to a difficult and time-consuming administrative process. Work motivation and willingness to engage were hampered by feedback available at the end of the year that concentrated on past success rather than present performance or possibility for future growth. Employees would be concerned about the type of communication they would receive during their yearly review, particularly since management were unlikely to even provide progress comments during the year.
In order to retain existing employees and stay a competitive business option for possible new hires, Adobe was obliged to develop a fresh approach to their controversial performance management method as a result of this operating transition. Donna Morris, Senior Vice President of Human Resources, and her team moved rapidly to replace the outmoded yearly performance evaluation system with a “Check-in” method that fostered frequent two-way communication opportunities between management and the employees. Berne’s transactional analysis theory could assist managers change how they communicate with their workers and promote a more robust communication discourse amongst them. According to McGrath and Bates (2017), Vroom’s expectation theory would aid managers in determining how to inspire people to develop plans and what exact actions will result in the desired reward. Whitmore’s Grow Model will assist managers in recommending attainable and specific programs for staff to achieve a desired result. Adobe can guarantee that the input supplied does not fall on deaf ears by adopting and coaching managers on certain management philosophies. Confirming that frequent check-ins result in meaningful change and progress instead of simply wasting employees’ time. Employees desired timely feedback in these situations so they could use what they’d learned during their next project. It was critical in helping us create a new Check-in from the bottom up in order to successfully fulfill the needs of our staff as we led their internal digital-first transformation. The leadership through Morris ensued that the teams were equipped enough to embrace the changes.
e) Role of organizational culture
It is through the culture of the organization that Adobe was able to successfully implement the issues they have been having. The organizational culture supports the programs that Adobe implemented by ensuring that process align with the needs of leadership and employees. The Check-In program appears to be a novel technique to assessing employee performance. It’s a two-pronged program that assesses employee performance while also providing opportunities for advancement through continuous feedback. Until now, this initiative has had a great impact on employees, inspiring them to participate and function better. Leaders are also pleased with the reduced workload, as annual appraisals were formerly a lengthy procedure (Stanford Graduate School of Business, 2012). They are able to offer additional value to the team in this manner. The Check-In program has saved the organization money because it takes less time. Employee attrition has drastically decreased. However, because some personnel do not fully comprehend the program and its implementation varies by group, it would be monitored on a frequent basis. Furthermore, some executives feel uncomfortable having challenging conversations with their staff, which might have an impact on their performance management. Frequent, informal check-ins with the manager, where you can share what you’re doing well and where you need to develop. Staff are expected to submit feedback to their bosses on what to do or may improve on. As previously stated, this differences in management style were largely successful. As shown at case study assignment help, there were a few concerns to be resolved. Allowing this could lead to the perception that particular departments aren’t getting as much feedback as they should. Alternatively, departments may feel as if they are continually being examined, with insufficient time during check-ins to implement any behavioral changes.
f) Enumerate some reasons why Adobe’s change in performance appraisal strategy was relatively successful. Enumerate some potential adverse results of this change.
Adobe’s annual evaluation has been fairly typical up the point that Morris wanted a change. Managers would gather samples of previous performance, undertake 360-degree reviews, and compile a statement on every employee’s annual performance yearly. The management could then provide an aggregate score to the employee, which would fall into one of five classifications, that is, low performer, solid performer, strong performer or high performance. Morris discovered that attitude amongst staff and management had grown dramatically 2 years after the traditional yearly evaluation was phased out, owing in part to the more regular input. Morale has risen, which has resulted in measurable benefits. Adobe has witnessed a 30% drop in employee turnover and a 50% increase in compelled exits, indicating that workers who don’t fulfill requirements were already handled with much more haste promptly and rapidly. Most crucially, the corporation has recouped the majority of the 80,000 spending hours yearly on annual evaluations by management. Adobe’s performance appraisal strategy changed to make its minimal software less time consuming, more effective, and simple to use. The changes that happened within Adobe became relatively successful based on the steps and procedures they put in place. Adobe changed their software and incorporated greater automating based on written reviews from customers, new staff, and management in order to meet changing market requirements and remain competitive. The case details how Adobe changed and transformed its traditional and existing Performance Appraisal System in which employees would be reviewed based on their yearly performance according and get rewards depending on their level of effort put to a ‘Check-In’ System in which regular checks on performance would frequently be conducted within the organization.
Adobe made headlines when it notably ditched all conventional performance management, along with the time-consuming structure of annual evaluations, and completely altered the employee experience. Adobe’s bespoke process will benefit the organization tremendously because the services they provide are cloud-based real-time. They provide opportunities for regular evaluation, evaluation, and development (Stanford Graduate School of Business, 2012). Frequent informal engagement can enable employees establish their own professional path and empower them to achieve it, resulting in a positive relationship among them and their bosses. Adobe has also created training classes for its managers, as well as an Employee Resource Center to answer inquiries about coaching, evaluation, and other topics.
Around 2012, Adobe made changes to its management solutions and performance appraisal system, removing the annual performance review and replacing it with a more automated and less formalized check-in procedure. At least once a quarter, the organization aims to bring together employees and managers for a meeting. This conversation should not be rehearsed, and it should focus on understanding the objectives, recommendations, and developmental and growth requirements of Adobe’s various departments. Since they had more relevant market knowledge, this strategy changed the employee’s happiness level and engaged them in the performance and decision. It will also assist employees assess themselves and their jobs and move closure to expected outcomes from the workplace.
Consequently, there have been some adverse results due the changes. Some of these were also not foreseen while the management was making the shift from the old system of operation. The performance management that Adobe was using was not as successful as it should have been for correctly evaluating their personnel, so they transferred to a different one that was far superior to the previous one. Adobe was given frequent feedback in this new method so that they could rate their personnel on a regular basis. Frequent one-on-one check-ins being held to assess performance and ensure that personnel were reaching their objectives effectively. Individual engagement grew as each employee was evaluated on how well they met targets. It also reduced attrition, which had a favorable effect on the business.
The inadequacies from the previous system could potentially play out and impact the new program. It is for this and other reasons that the change can result in further problems. Because the organization was centered on a conventional performance management process, the system was utterly inefficient. It took a long time and was a waste of effort and resources. The company was unable to fully analyze the performance of their staff as required. It is worth noting that without proper structures, it is likely for any organization changes to be problematic, where in some cases, they are bound to fail (Bateman et al., 2020). They previously used a box-ticking appraisal technique that would not have been able to adequately address all of the questions. It was also wasting a lot of man money and effort, with no noticeable results because this was a compulsory competitive element. Adobe’s objective was to have a successful system, where the employees would be motivated and work in an environment that suit their level of productivity. However, the adverse results that can still reveal because the organization resorts to using employees and subordinates as source of vital information. Although subordinates are a valuable source of knowledge, they can sometimes cause confusion. Whenever utilized for administrative purposes, subordinate appraisal might be overstated. Because it may be afraid of retaliation, confidentiality is essential. A subordinate, for instance, may be hesitant to leave a trace concerning a colleague’s bad performance since this documentation could result in negative repercussions for the individual in issue.
References
Adobe Inc. (2019). Adobe Inc. Corporate Philanthropy Report, 34(6), 4-5. https://doi.org/10.1002/cprt.30336
Bateman, T., Snell, S., & Konopaske, R. (2020). M: Management (6th ed.). McGraw Hill.
Hassan, M. (2022). Studying the effectiveness of editing digital camera raw files between Adobe Lightroom and Adobe Photoshop. International Design Journal, 12(3), 275-283. https://doi.org/10.21608/idj.2022.234846
Lichtenthaler, U. (2016). Toward an innovation-based perspective on company performance. Management Decision, 54(1), 66-87. https://doi.org/10.1108/md-05-2015-0161
Michaux, S., Cadiat, A., & Probert, C. (2015). Porter’s five forces. 50Minutes.
Schwarz, M. (2014). Global overview and a closer look into Adobe´s international marketing activity. SAGE. Retrieved from https://247essayhelp.com/assignment-help-service/get-accounting-assignment-help-from-expert-writers/
Stanford Graduate School of Business. (2012). Adobe: Building Momentum by Abandoning Annual Performance Reviews for “Check-Ins”. Stanford Graduate School of Business. Retrieved 9 June 2022, from https://www.gsb.stanford.edu/faculty-research/case-studies/adobe-building-momentum-abandoning-annual-performance-reviews-check.
Stanford Technology Ventures Program. (2017). HR-38 Adobe: Building Momentum By Abandoning Annual Performance Reviews for “Check-Ins” – Stanford Technology Ventures Program. Stanford Technology Ventures Program. Retrieved 6 June 2022, from https://stvp.stanford.edu/blog/doc_content/hr-38-adobe-building-momentum-by-abandoning-annual-performance-reviews-for-check-ins.