Compensation and Performance Evaluation at Arrow Elcetronics

Topics: Ethics, Root cause analysis, Evaluation Pages: 2 (490 words) Published: March 5, 2013
It seems that Steve Kaufman is committing the fundamental attribution error with his reason for using the performance evaluation. The article states that “Kaufman had been determined not automatically select Arrow employees and terminate the acquired company’s people, but to choose the strongest player for each position.” He wants to use the performance review to create stats of all of the individual workers and then choose each individual from the top of the list on down to fill the available positions. Right there Kaufman is focusing on individuals thinking they are the main reason for determining Arrow’s success.

His RTO program is another example of his root cause analysis gone wrong. His focus was on how to keep the W-2 hoppers out of the company rather trying to figure out how to stop his sales force leaving in the first place. Maybe if their variable pay didn’t have such a great impact on their overall pay they might not think so quickly about switching between companies.

These examples and several others stated in the article show that when he sees a problem he tries to change the behavior directly with some kind of limitation or incentive rather than asking why the problem is happening in the first place.

The CEO of Arrow Electronics, Steve Kaufman is a highly self motivated, self esteemed with high self monitored personality. He is trying to identify talents by performance evaluation in order to sustain the organizational performance. He strongly believes that defining the right strategy and getting the right people are the top most quality of a CEO.

This is another failure story of Performance evaluation. The CEO is getting engaged in fixing and re-fixing the performance evaluation and finally there is no great result or success on this system. He has taken a good measure to deal with the unethical sales force and opportunists but he is still not clear about what would be the right decision to sustain his employees.

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