Dovernet, a Vancouver-based tech company, employs stringent performance measurement systems like their competitor Zynga to create performance pressure and motivate workers. This includes quarterly reviews that rank employees and reward or terminate underperformers. While these systems aim to foster a competitive culture, the document discusses challenges they present for evaluating employees with unique circumstances and the tension they create between honest feedback and fear of repercussions.
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Dovernet Intro
Dovernet, a Vancouver-based tech company, employs stringent performance measurement systems like their competitor Zynga to create performance pressure and motivate workers. This includes quarterly reviews that rank employees and reward or terminate underperformers. While these systems aim to foster a competitive culture, the document discusses challenges they present for evaluating employees with unique circumstances and the tension they create between honest feedback and fear of repercussions.
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The opening lines of the case begin with the disadvantageous aspects of the tough culture
of a young and effective competitor of Dovernet, a Vancouver-based provider of enterprise
communications and social-networking technologies called Zynga. It methodically describes and shows the effects of employing stringent performance measurement systems so that performance pressure could be created, worker’s achievements could be motivated, and the firm’s competitive culture could be further honed. Dovernet has also employed the same performance measurement aspects. The founder and CEO of Dovernet, Param Venkatesan sees performance measurement systems essential for allowing the competitive, innovative work force required for Dovernet to win in the very competitive industry. And he firmly believes in encouraging stretch goals and individual accountability. This company at hand uses quarterly top-lower reviews, stack ranking and also bottom-up reviews to reward top high achievers and terminate the ones on notice due to underperformance in Dovernet’s terms. The case reveals to consider the benefits and challenges of various performance evaluation techniques and their implications for any firm's performance, culture, and worker morale. Associated with this methodology are many practical challenges such as a manager who has been assigned with interpreting and acting on the negative reviews given to two employees with unique personal circumstances or an employee who has to conduct a bottom-up review struggling to balance honesty and also deep inside afraid of the repercussions of giving a feedback to his manager that is not so perfect.