Performance management, Business Management

Assignment Help:

You just got an important request from the organization's President to conduct an audit of the company's current appraisal system.  By far the most problematic and volatile issue at Electronics Incorporated has been salary increases and promotions.  Because the company promotes from within, comparisons generally have to be made across employees in different departments.  To combat arguments of subjectivity and bias in the decision-making on raises and promotions, Electronics Inc. links these rewards directly to objective measures of performance.

More specifically, rather than using the subjective ratings of employees' performance by their supervisors, ongoing accounts of sales results are maintained for each employee through the use of the Human Resource Information System (HRIS).  Based on this sales information, each department manager assigns the employees in their department to one of the following five categories:

1.       Superior/Top 10%

2.       Very Good/Next 20%

  • Good/Middle 40%

3.       Fair/Lower 20%

4.       Poor/Lowest 10%

Administrative decisions (regarding pay and promotions, etc.) are then made across departments using these ratings that people receive in this forced distribution.  Additionally, to provide feedback to the employees concerning their relative performance, data on sales are updated daily on the HRIS and are posted in the employee break room.  It is hoped that the feedback is motivating to employees.  In addition, the posting of the sales data provides that there will be no surprises for the employee when the semi-annual performance appraisals come around.  It is interesting to note that since the performance appraisal system has been implemented, there have been no formal complaints registered regarding the performance appraisal system or salary and promotion decisions.  However, sales managers themselves have mentioned that they do not feel as comfortable now that they are required to assign employees to the "fair" and "poor" categories.

Overall, Electronics Inc. has tried to create a top-rated personnel system in their company.  Despite their efforts, management fears that there are some personnel issues that may be contributing to the loss of sales for the company.  Again, the poor economy is a favorite excuse for the decline in sales, but there is more to it than that.  Human resource policies may also be contributing to it as well.

For example, there have been many recent complaints that employees have not been as patient or courteous with customers as they should be.  This was best summarized by the manager who said, "My people are beating up the clientele to make a sale - the very opposite of what the training program trains them to do."  This lack of customer service is frustrating since the training program has been proven to be effective in the past.  Additionally, there seems to be a great deal of competition within departments that is hurting a team effort.  Although intergroup rivalries between departments have always been viewed as healthy and normal, the lack of cohesiveness within each department is seen as a problem.

Please complete the following questions thoroughly. 

1. Identify and describe at least three strengths of the performance management system.  Explain why they are strengths.

2. Identify and describe at least three weaknesses of the performance management system.  Why are they weaknesses?  What are some of the negative consequences that are caused by these weaknesses?

3. What changes would you recommend for this performance appraisal system (you must include at least three substantial changes to the system)? How would each of the changes you suggest improve the system? Be ready to report all suggestions to the President (and then to managers, employees, etc.).


Related Discussions:- Performance management

Three phases of customer relationship management, QUESTION a) Briefly e...

QUESTION a) Briefly explain the following two methods of e-procurement: i. Reverse Auctions ii. Industrial Malls b) Elaborate on three characteristics essential for e-

Decision making, Fred, a 17-year employee with Sam''s Sauna, was fired for ...

Fred, a 17-year employee with Sam''s Sauna, was fired for poor job performance and poor attendance, after accruing five disciplinary penalties within a 12-month period under the co

What are the different features of interpersonal skills, QUESTION 1 (a)...

QUESTION 1 (a) What are the different sources of noise and interference that can occur in a communication process? (b) What are the ten aspects of communication that are use

Describe the formal communication networks, Question 1: a) Briefly desc...

Question 1: a) Briefly describe the formal communication networks in an organisation. b) What are the functions of the informal flow of information in an organisation? Q

Describe the features of the business, Question 1: You are the chief ac...

Question 1: You are the chief actuary to a general insurance company. The company's main lines of business are employers' liability, marine, aviation and private motor insuran

Problem based on vision and mission statements, a) Mission statement refe...

a) Mission statement refers to the avowal of an organisation's overall purpose, such as Nokia's "Connecting people..." It outlines the basis for setting the objectives of a busin

What is a theory, QUESTION 1 i) What is a theory? ii) Identify and d...

QUESTION 1 i) What is a theory? ii) Identify and describe the functions of theories. QUESTION 2 i) How do communication theories help us? ii) What is communicatio

Merit of team as compared to a solo player, QUESTION 1 You are the new ...

QUESTION 1 You are the new Human Resource Manager of a company where a thick communication climate is prevailing. In an attempt to resolve this situation, outline and explain a

Explain the step in developing a global outsourcing strategy, List and expl...

List and explain the seven steps in developing a global outsourcing strategy. Seven steps in developing a global outsourcing strategy - Segment the marketplace, Project change

Research methods, good morning I have an assignment for research methods ...

good morning I have an assignment for research methods and my topic Is a study on employee retention Strategies among Mohammed LLC & i will send the assignment way and one Exa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd