Performance Appraisal at Telespazio: Aligning Strategic Goals to People Development
Since being incorporated into the Finmeccanica Group, Telespazio has been aligning its personnel policies and practices to those of the parent company. The challenge for the HR team is to foster a strategic and organizational change that will turn a domestic telecommunications firm into a leading global company in satellite solutions and services. The case focuses on the design and implementation of a new performance appraisal system. It starts out with the establishment of a task force to create a new appraisal system from scratch. Next, the case provides a detailed description of the performance appraisal program (What is assessed? Who is in charge? What steps are involved?) and describes the main levers adopted to move from a simple appraisal perspective towards a more multifaceted approach. The case also explains how the system supports the company's shift towards a project-based organization. The first part of the case ends in 2011 when, after six years from the first implementation, the HR team meets to evaluate the results achieved. The strengths and weaknesses of the program are discussed. The second part of the case illustrates the major revisions introduced to the program and brings a new challenge for the HR team: extending the implementation to all of Telespazio's foreign subsidiaries by the end of 2014.