Case | HBS Case Collection | June 2000 (Revised December 2000)

Compensation and Performance Evaluation at Arrow Electronics

by Brian J. Hall and Carleen Madigan

Abstract

Describes a company's struggles in implementing a subjective performance rating system for its employees. In particular, it describes the difficulties faced by the CEO in getting managers to combat "ratings inflation"--that is, to produce numerical ratings that are both differentiated and "not too high."

Keywords: Behavior; Performance Evaluation; Compensation and Benefits; Electronics Industry;

Citation:

Hall, Brian J., and Carleen Madigan. "Compensation and Performance Evaluation at Arrow Electronics." Harvard Business School Case 800-290, June 2000. (Revised December 2000.)