HUMAN RESOURCE MANAGEMENT

ASSIGNMENT

Submitted by

VIVEK DEVASIA

Roll no. 179

Batch 20

Section C

Case Study Seven: Conducting performance appraisals at National Office

Supplies

Performance appraisal basically means evaluating an employee’s current or past

performance relative to his or her performance standards. It usually involves the setting of

work standards, assessing the employee’s actual performance relative to those standards, and

providing feedback to the employee with the aim of motivating him or her to eliminate

performance deficiencies or to continue to perform above par.

Here, in my company, National Office Supplies, there are two regional sales

managers Alex Scally and Daniel Rossen, handling the South-West region office and the

Southern region office, correspondingly.

Alex Scally is a gregarious, extrovert woman, who runs her office in a very informal

manner and is well-liked by her team. Her appraisals are best described as an informal chat

and she takes the view that appraisals are ‘no big deal’, downplaying their significance. She

doesn’t want them to be turned into a focus for criticism or praise. She does not do appraisals

based on facts and figures and relies only on gut instincts when it comes to wage hikes.

On the other hand, Daniel Rossen is an altogether different character to Alex. He is

reserved and fastidious in his work and well-respected among his colleagues. Daniel views

the appraisal process as the focal point on the HR calendar and plans meticulously for each

appraisal collecting and collating performance data that he has recorded and reviewing the

year’s performance against the agreed objectives set in the previous appraisal. His appraisal

largely represent a series of questions fired by Daniel at the appraisee, many of which require

simply a one word answer which the manager records by ticking a box on a pro forma that he

has prepared himself. The questions asked of the team members focus on areas for

improvement, typically by asking appraisees about why, for example, they failed to obtain or

have lost a particular contract. Daniel takes the view that performance can only be improved

if previously-made mistakes are avoided in future. Daniel makes his decision over the

allocation of bonuses, partly on the basis of the number of ticks in the ‘right’ box, along with

a consideration of volumes of sales generated, although he is keen to stress that he seeks to

reward his team not only on the basis of total sales but also on the context and way that those

sales have been achieved.

Now, the task in hand for me is to set out some guidelines based on what I have

witnessed at the Southern and South West offices and to circulate these to the managers in

every regional offices and to help them conduct more effective appraisals. For this, I need to

start by analysing the areas of good and bad practices in the appraisal process done by both

these regional offices.

ASSESSING THE GOOD AND BAD PRACTICES

To begin with, I have to talk to both the sales managers individually regarding their

styles of appraisal.

Alex takes appraisals to be too light and of least importance. She considers it to be

more of a regular normal procedure which is not of much use. Her method of

conducting the appraisal interview also needs to be changed. The casual talking style

of appraisal interview can create a stress free and relaxed environment for the

employees, but she does not use a proper method of appraisal. No formal set of

questions are put forth and the employee’s replies and responses are not properly

noted down or marked. This does not bring out the best use of these interviews and

the resultant appraisal is based only on gut instincts and the manager’s own

perceptions rather than real factual data and performance. Such an appraisal report

can be affected by various appraisal problems like various biases and recency effects.

There are various positives as well with Alex’s approach. The casual way of the

interview and the good relations she holds with her employees can bring out a stress

free and relaxed atmosphere. This can lead to proper and free responses from the

employees, which if well used, can be very useful in assessing them and

understanding the reasons for their failure.

Daniel Rossen takes appraisals to be the most important part of the HR calendar every

year. He considers appraisals to be of prime importance and takes it very seriously.

He collects all the data available and utilizes them in his appraisal process. He sets

forms and predetermined questions and marks every answer given by the employee.

Thus the process of appraisal by Daniel can be very effective and well planned.

The negative side of Daniel’s appraisals is that, his serious and strict nature, and the

seriousness he puts into the whole procedure, make the appraisals a process full of

tension and stress to the employees. This cannot bring out the best results for the

company. As the employees, under the heavy stress they feel, cannot be true or clear

in their responses. The stress will not bring out the best responses from the employees

and can never prove to be good for any appraisal process.

SUGGESTING VARIOUS GUIDELINES FOR APPRAISAL

First of all, both these managers need to be taught and explained the need for the

performance appraisal process. They should be explained why it is important for the company

to conduct performance appraisals and how crucial it can be in the company’s smooth and

efficient operations. They need to be explained about the extend at which the company is

growing and how appraisals can bring out the best out of the employees.

Why to appraise Performance?

Firstly, from a practical point of view, the base for pay and promotional decisions on

employees is the performance appraisal.

Secondly, the appraisal lets the management and the employees develop a plan for

correcting any deficiencies, and to reinforce the things the subordinate does right.

Thirdly, appraisals should serve a useful career planning purpose. They provide an

opportunity to review the employee’s career plans in light of his or her exhibited

strengths and weaknesses. He can identify the areas on which he needs to improve.

Fourthly, appraisals play an integral part company’s performance management

process.

Various key steps in appraisal

First, we need to define the employee’s job and performance criteria. Defining the job

means making sure that we and our subordinate agree on his or her duties and job standards

and on the appraisal method we will use.

Then comes the actual performance appraising part, which means, comparing the

subordinates actual performance to the standards, usually using some rating form.

Finally, an effective appraisal requires a feedback session. Here, the manager and the

subordinate discuss his or her performance and progress, and make plans for any

development required.

The appraisal actually will be conducted using a predetermined and format tool. The

two basic questions in designing the actual appraisal tool are ‘what to measure’ and ‘how to

measure it. For example, in terms of ‘what to measure’, we may measure, the employee’s

performance in terms of generic dimensions such as quality and timeliness of work, or with

respect to achieving specific goals. In terms of ‘how to measure it’, there are various

methodologies including graphic rating scales, the alternation ranking method, and MBO.

Guidelines for How to Conduct Effective Appraisals

Understand the problems – First, learn and understand the present appraisal problems.

Learning and understanding the problems with the methods and practices being used

currently can help avoid them. This can make the process more effective and bring

better results.

Selection of the right appraisal tool – Second, find out the tool that is best suit for the

company. I am planning to meet with the top management and write to the regional

managers for their suggestions on deciding on the right tool for appraisal. A

combination of various tools can be the best option at several times. Each tool has its

own pros and cons. Various criteria’s that are to be considered for deciding on the tool

are, accessibility, ease of use, accuracy and time available.

Employee record – Third, keep a record of employees performance over the year.

This provides the managers with proper data and facts to refer to, and compare real

and expected performances. A regular day to day record will note all the happenings

daily of each employees. This can help analyse each employee’s performance.

Preparing a Plan – Fourth, the main aim of the appraisal should be to improve

unsatisfactory performance and to reinforce exemplary performance. The appraisal’s

end product should therefore always be a plan for what the employee must do to

improve his or her efforts.

Fair Appraisal – Fifth, but perhaps most important, make sure that every appraisal the

manager gives is fair.

Avoid too much of Strictness – Sixth, the appraisal interviews should not be too strict

and rigid. It has to be lenient enough to bring in positive results and yet be sticking to

a plan and format. Daniel should be asked to be lesser stringent and should be asked

to bring in more of a stress free environment in performance appraisals.

Collect and concentrate more on Objective Data – Seventh, use examples such as

absences, tardiness, quality records, orders processed, productivity records, order

processing time, accident reports and so on.

Interviews should not be too personal – Eight, avoid getting too personal and never

hurt an employee’s feelings. Instead, try to compare the person’s performance to a

standard.

Listen to the employee – Ninth, but an important rule in appraisal process, stop and

listen to the employee. Understand what he is saying. Allow him time to share his

thoughts and reasons for a problem rather than blaming him for it. Make sure that the

employee gets a chance to present his case and carefully not down points that can be

taken out of it.

Frequency of appraisal – Tenth, a half yearly or a monthly system of appraisal can be

applied if it proves to be effective for a growing company like ours. The effectiveness

of such frequent appraisals need to be discussed and decided upon.

Feedback – Last, but not the least, every performance appraisal process should end

with the feedback. The employee should be made to know the feedback and how he or

she can improve. The employee should be reinforced of the good work he has done

and be motivated to carry on with the good work.

CONCLUSION

A mix of Alex’s and Daniel’s method of appraisals is what can be an effective way of

doing it. Not being too casual and uninterested towards the idea of appraisal, and not being

too strict and creating tension on the employees, is what can be considered a good way of

doing it. In addition to this basic change, all the above described guidelines and methods can

help bring out the best appraisal process and a perfect result for the company. Such a

successful performance appraisal system is always essential for every established company

and a proper systematic approach is what National Office Supplies company needs in its

system in this growth stage.