Harvard Case - The Merit of a Points-based Merit System at the Edwards School of Business
"The Merit of a Points-based Merit System at the Edwards School of Business" Harvard business case study is written by Dionne Pohler. It deals with the challenges in the field of Organizational Behavior. The case study is 16 page(s) long and it was first published on : Dec 22, 2011
At Fern Fort University, we recommend a phased implementation of a points-based merit system at the Edwards School of Business, incorporating a robust feedback and development component. This approach will address the concerns of faculty dissatisfaction and incentivize high-quality teaching, research, and service contributions, ultimately enhancing the school's reputation and attracting top talent.
2. Background
The Edwards School of Business at the University of Saskatchewan faces a critical challenge: faculty dissatisfaction with the current performance evaluation system. This system, based on subjective assessments, is perceived as unfair and inconsistent, leading to low morale and potential talent drain. The school seeks a more objective and transparent system that aligns with its strategic goals of attracting and retaining top faculty, fostering a culture of excellence, and enhancing the overall learning experience for students.
The main protagonists are:
- Dr. David Finch: The Dean of the Edwards School of Business, tasked with leading the school through this challenging period of change.
- The Faculty: A diverse group of professors with varying perspectives on the current system and its impact on their work and motivation.
- The University Administration: The governing body responsible for setting policies and providing resources to the school.
3. Analysis of the Case Study
The case study highlights several key issues:
- Lack of Transparency and Objectivity: The current system relies heavily on subjective assessments, leading to perceptions of bias and inconsistency. This undermines faculty trust and motivation.
- Limited Focus on Teaching: The current system prioritizes research and service contributions over teaching, potentially neglecting the core mission of the school.
- Lack of Feedback and Development: The current system lacks a robust feedback mechanism, hindering faculty growth and development.
- Potential for Conflict: The subjective nature of the system creates potential for conflict and resentment among faculty members.
To analyze the situation, we can utilize the Organizational Culture framework:
- Current Culture: The current culture at Edwards School of Business appears to be characterized by a lack of trust, transparency, and fairness in the performance evaluation system. This can lead to low morale, decreased motivation, and potential conflict.
- Desired Culture: The desired culture is one that values excellence in teaching, research, and service, while fostering a collaborative and supportive environment. This requires a performance evaluation system that is objective, transparent, and focused on development.
4. Recommendations
To address these challenges, we recommend the following:
Phase 1: Design and Implementation of the Points-based Merit System:
- Develop a Comprehensive Point System: Define clear criteria for evaluating teaching, research, and service contributions, assigning points based on objective measures (e.g., student evaluations, peer reviews, publications, grant funding, service activities).
- Establish a Transparent and Fair Allocation Process: Clearly communicate the point system and allocation process to all faculty, ensuring transparency and fairness.
- Incorporate Feedback and Development: Integrate regular feedback mechanisms and professional development opportunities into the system, promoting continuous improvement and growth.
- Pilot the System: Implement the points-based system on a pilot basis with a select group of faculty to gather feedback and refine the system before wider implementation.
Phase 2: Fostering a Culture of Excellence and Collaboration:
- Leadership Commitment: Dean Finch needs to actively champion the new system, demonstrating his commitment to its fairness and effectiveness.
- Open Communication and Dialogue: Foster open communication channels between faculty and leadership to address concerns and build trust.
- Collaborative Decision-Making: Involve faculty in the development and implementation of the new system, promoting a sense of ownership and buy-in.
- Focus on Professional Development: Invest in professional development programs that enhance teaching skills, research capabilities, and service contributions.
5. Basis of Recommendations
These recommendations are grounded in the following principles:
- Core Competencies and Consistency with Mission: The points-based system aligns with the school's mission of providing high-quality education, fostering research excellence, and contributing to the community.
- External Customers and Internal Clients: The system aims to attract and retain top faculty, while also enhancing the student learning experience.
- Competitors: The system needs to be competitive with other top business schools to attract and retain high-quality faculty.
- Attractiveness: The system should be attractive to faculty, offering a clear and transparent path for recognition and advancement based on objective criteria.
6. Conclusion
Implementing a points-based merit system with a strong emphasis on feedback and development can significantly improve faculty morale, attract and retain top talent, and enhance the overall quality of education at the Edwards School of Business. This approach fosters a culture of excellence, transparency, and collaboration, ultimately contributing to the school's long-term success.
7. Discussion
Alternative options include:
- Maintaining the current system: This option carries significant risks, including continued faculty dissatisfaction, talent drain, and potential damage to the school's reputation.
- Adopting a purely subjective system: This option could lead to perceptions of bias and favoritism, undermining trust and morale.
Key assumptions:
- Faculty buy-in: The success of the system depends on faculty accepting and embracing the new system.
- Leadership commitment: Dean Finch needs to be a strong advocate for the system to ensure its successful implementation.
- Resource allocation: The university needs to allocate sufficient resources to support the development and implementation of the system.
8. Next Steps
Timeline:
- Month 1-3: Form a task force with faculty representatives to design the points-based system.
- Month 4-6: Pilot the system with a select group of faculty.
- Month 7-9: Gather feedback and refine the system based on pilot results.
- Month 10-12: Implement the system school-wide.
- Ongoing: Continuously monitor and evaluate the system, making adjustments as needed.
Key Milestones:
- Develop a comprehensive point system: Establish clear criteria and point allocation for each category.
- Pilot the system: Select a diverse group of faculty to pilot the system.
- Gather feedback and refine the system: Conduct surveys and focus groups to gather feedback from faculty and students.
- Communicate the system widely: Develop clear communication materials to explain the system to faculty, students, and stakeholders.
By taking these steps, the Edwards School of Business can create a more objective, transparent, and rewarding performance evaluation system that fosters a culture of excellence and attracts and retains top faculty.
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Case Description
The case highlights the impact of recent collective bargaining changes on the implementation of performance-based pay in a Canadian business school currently going through the AACSB accreditation process, the Edwards School of Business at the University of Saskatchewan. It is written from the perspective of a new faculty member who is engaged in a decision-making process surrounding the development of a points-based system designed to allocate merit pay. The process is forcing her to evaluate how she is structuring the allocation of her work, which is directly affecting her motivation toward coaching a student case competition team. Edwards historically used a judgment-based approach to the allocation of merit. The case outlines the rationale used in the design of the new points-based system, discusses the potential advantages and disadvantages, and highlights the perspectives of different stakeholders throughout the process, including the union, the faculty and senior administration at the university, college and department levels. The union is opposed to merit, so has outlined fairly stringent criteria for the awarding of merit in the new collective agreement. Faculty opinion is mixed surrounding merit more generally, and the implementation of a points-based system versus a judgment-based system in particular. Senior university administration is committed to the continuation of the merit system at the university as a tool to reward outstanding performance and to retain star faculty. The individual departments at Edwards are in the midst of finalizing the standards and procedures for allocation of merit-based pay. The protagonist is uncertain about how her department will proceed in the design and allocation of points, and how it will result in her re-allocating her work tasks.
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