Reference no: EM132881764
Read the case below and answer the following questions:
New Edge Finance Ltd. is a reputed finance company having more than 30 branches in different parts of India. In the home office in Bangaluru, there are more than 150 employees. The company has a performance rating system in which the employees are rated in half yearly interval by a committee of two executives. Graphic rating scale has been used for the appraisal process. The qualities considered are responsibility, dependability, and initiative, interest in work, leadership qualities, team player and social activity. After the performance evaluation, the ratings are discussed with the concerned employees by their immediate supervisors and are used to discuss and give feedback about their promotion and salary adjustments and future training perspective. Recently, few employees called on the CEO of New Edge Finance to convey their dissatisfaction with their respective rating received in appraisal. Their scores and composite ratings had been discussed with them. They were denied increment because of their low rating. Approximately, two third of all employees received such score which effected their increments. The aggrieved employees argued that their ratings did not accurately represent their qualifications or performance. They insisted that social activity is not part of their job. The employees threatened of mass agitation. This particular experience convinced the CEO that this particular rating system is causing serious friction and therefore should be discontinued.
Answer the following questions based upon the case:
(i) How far do you agree with the CEO that this appraisal system should be discontinued?
(5) (ii) If you were HR manager, how would you tackle the situation immediately?
(iii) Give your suggestions for the necessary modifications in the performance appraisal system for future.