Aligning Strategic Goals to People Development Case Study

Performance Appraisal at Telespazio: Aligning Strategic Goals to People Development Case Study 

Telespazio is an international aerospace company that in 2011 was being headed by Carlo Gualdaroni as its chief executive officer (CEO). In that year he challenged his managers within the company to strengthen their human resource philosophy by paying more attention to performance appraisal using the Performance Management System. Being a subsidiary of the Finmeccanica Group, the company through its CEO had set its eyes on transforming itself from a simple local telecommunications organization to a global giant specializing in aerospace and satellite solutions. To achieve this, the CEO knew that their human resource philosophy and practices had to mirror those of the parent multinational. Aligning strategic goals to the development of its human resource became a major agenda of the company. It therefore decided to focus first on stringent and evidence-based performance appraisal. This refers to an evaluation and documentation of the performance of employees at particular intervals by the managers of the company with a view to identifying areas of strengths and weaknesses and addressing them appropriately. It developed its dual employee appraisal system in the year 2005. This was an electronic appraisal system that was anchored on employee values which include the understanding of the company’s strategic objectives and transparency (Dessler, 2014). Some of the incentives and reinforcement measures that were inherent in the system included better remuneration, incentives for professional development and advancement such as training, and mobility in terms of promotions. Significant emphasis was also placed by the dual system of appraisal on the results feedback from the employees themselves. The purpose of this paper is to address the existing Telespazio performance appraisal system at the time, an appropriate appraisal tool, and recommendations of strategies that the company can use to advance its strategic objectives.  Aligning Strategic Goals to People Development Case Study

Telespazio’s Prevailing or Existing Appraisal Methods at the Time

As can be seen in the introduction above, the staff appraisal system adopted by Telespazio at the time gave a lot of weight to employee rewards for good performance. This included professional development and advancement through higher education and further training such as upskilling. The system however allocated these rewards through focusing on the role played by the employee as well as their unique competencies. This system was referred to as the Telespazio Performance Appraisal for Development or TPAD (Profili et al., 2014; Serio, 2016). The main idea in the system design was to strengthen employee capacity so that the company could be able to deal with emerging challenges in the long run and emerge with competitive differentiation. Aligning Strategic Goals to People Development Case Study

The mangers identify the competencies and skills that each employee possesses during the appraisal and then matches them to the appropriate roles. All this happens during the appraisal interviews conducted at known intervals within the year. Apart from being transformational managers who empower and motivate their employees (Choi et al., 2016), the company’s managers also adopted a management by objectives (MBO) style. With this, they could set the objectives and goals together with the employees and then let them work towards achieving them before the next appraisal. Before then, they utilized the strategy of 360-feedback to gather communication from the employees about challenges and successes (Peacock, 2015). This feedback strategy is inclusive and allows the employee to feel that they are part of the process that is being used to measure their performance and usefulness to the company. In other words, the 360-feedback method is a transformational leadership tool used by the company’s mangers. Three categories are recognized in the Telespazio appraisal system. With them, an appraised employee may meet expectations, show unsatisfactory performance, or be categorized as needing improvement. Aligning Strategic Goals to People Development Case Study


Suggested Changes or Strategies for Telespazio

The TPAD system of appraisal as adopted by Telespazio was proving effective in the global arena and was fulfilling its objective. However, differences in leadership styles and work cultures in different countries soon started presenting some difficulty in standardizing the appraisal method. Countries such as France demonstrated some resistance to the method while in the United States the system worked very well as designed. These differences meant that minor adjustments at the local level in different countries had to be made (Profili et al., 2014; Serio, 2016).  As such, a suggested change or strategy for Telespazio would be to incorporate the local cultural beliefs and practices in the appraisal process by involving the local mangers more freely in each country. This way, the employees would feel that they are being treated with fairness and respect and that they are not being held up to foreign and alien standards. What this means is that Telespazio would need to adapt the TDAP system to the local environment in every country.

It goes without saying that an employee will feel much more at ease when they are supervised and being questioned by someone who looks and speaks the same language as them. They will also be much more open and honest to a manger that subscribes to the same cultural beliefs and practices as them. What this boil down to is cultural competence and sensitivity in the implementation of the TDAP appraisal system across the different countries in which Telespazio has operations. B y matching the system to local customs and norms, Telespazio would then be able to avoid pitfalls that befall companies in which employees do not trust their leaders (Ingram, 2017). Honesty, openness, and responsibility for actions can only be realized in an environment in which the employee feels safe and comfortable. This is only possible through local adaptation and realigning of the TDAP appraisal system.

A New Appraisal Tool and Appraisal Interview

Systems, Applications, and Products in Data Processing or what is commonly abbreviated as SAP is the performance appraisal tool that is used by Telespazio. It is a technology-based system that is effective but as with all other technological innovations, it must be updated or upgraded otherwise it will slowly become obsolete. That it already has a goals performance, learning, and professional development included in the module means that it may not need to be completely overhauled (Karthik, 2014). What would need to be done would be to bring it up to par with the current technological architecture and software complexity to make it viable and effective. For the interview appraisal technique, the employee needs to be part and parcel of the appraisal process from the time of setting objectives to the time of analyzing their strengths and weaknesses. A review of the set goals and strategic objectives has to be conducted together with the employee.

Recommendations to the Telespazio Leadership

In all, recommendations to the Telespazio leadership would include the following points drawn from the aforementioned suggestions in the paper:

  • Streamline the TDAP appraisal system to the local social, economic, cultural, and political environment in every country that the company operates in.
  • Involve local managers in appraising employees in each country. They understand better the socio-cultural and socio-political nuances that exist in their own situations.
  • Upgrade the SAP tool used by the company to avoid obsolescence.


Telespazio is a global company specializing in aerospace and satellite technology. It had just gone multinational after being acquired by the multinational giant Finmeccanica Group. To address its strategic objectives in an effective manner, the CEO identified performance appraisal of the company’s human resources as a major cog in the wheel of successful integration in the global market space. The company used the TDAP system and the SAP tool that was electronic in nature. As a suggestion, this required to be upgraded so that it would remain relevant and avoid becoming obsolete. Aligning Strategic Goals to People Development Case Study


Choi, S.L., Goh, C.F., Adam, M.B.H., & Tan, O.K. (2016). Transformational leadership, empowerment, and job satisfaction: The mediating role of employee empowerment. Human Resources for Health, 14(1), 73.

Dessler, G. (2014). Human resources management, 14th ed. Pearson/Prentice Hall

Ingram, D. (2017). How to design a performance evaluation for a multinational.

Karthik, G. (2014). SAP HCM: A complete tutorial. Packt Publishing.

Peacock, T. (2015). 360-degree feedback pocketbook. Management Pocketbooks.

Profili, S., Sammarra, A., Innocenti, L., & Gabrielli, G. (2014). Performance appraisal at Telespazio: Aligning strategic goals to people development. International Journal of Case Studies in Management, 12(1), 1-16.

Serio, L. (2016). The Italian model of management: A selection of case studies. Taylor & Francis.

Assessment Description

Read the Performance Appraisal at Telespazio: Aligning Strategic Goals to People Development case study located in Topic resources. Discuss the assessment of employees within the Telespazio organization.

In 1,000-1,250 words, explain how the organization uses the appraisal assessments to identify employee roles, the current appraisal systems, performance ratings, and Telespazio’s practices for performing appraisal interviews. Decide what changes or strategies could be implemented to current performance appraisal practices. Consider a new performance appraisal tool that would benefit this highly matrixed, global company and an effective method for conducting a performance appraisal interview. Describe the benefits of using both the proposed appraisal tool and appraisal interview during the performance evaluation process. Suggest a minimum of two recommendations to Telespazio leadership which would meet the performance appraisal expectations of fair and realistic criterion, and professional development and motivation of the employees.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center.

This assignment uses a rubric. Review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

Aligning Strategic Goals to People Development Case Study

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