Health Information Technology

The article about compensation and performance reviews at the Arrow Electronics was very interesting. Being a local company my interest in this article was amplified. The CEO of Arrow Electronics, Steve Kaufman, was not satisfied with their current performance evaluations and compensation management. Kaufman argues that their performance evaluation system is wrong and that management is not evaluating the employees in the right way. The reason is that the average of all employees’ ratings was 4.5 points on a scale of 1 to 5. Also his unhappiness is fueled by the fact that no employee got a 1 or 2 on this performance rating. I understand his aggravation especially since he has been rated at 2 by the board of directors. The current average is just bellow perfect score and it would mean that there is very little room for improvement. I have always been in favor of the system that truthfully evaluates employees and have admired bosses that are straight forward. If one is not given right feedback they do not know how to improve and what to work on. It would be ok to rate employees in customer oriented settings with such high numbers as they would lead to even better customer service environment. In a company such as Arrow Electronics much of the work is focused on competency, accuracy and as such company Arrow has to address its performance review system right away or it could lead to reduced performance and quality.