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

How is dividing and grouping work affected in organisation, How is the divi...

How is the dividing and grouping work affected in the organisation? Dividing and grouping work: Divisionalisation gives a broader perspective, a greater sense of responsi

Explain features of the unitarist and pluralist approaches, Question 1: ...

Question 1: (i) Outline and comment on the main features of the Unitarist and Pluralist Approaches to industrial relations. (ii) Which of these two approaches is more preva

Industrial and commercial bank of china (icbc), Industrial and Commercial B...

Industrial and Commercial Bank of China (ICBC) a) An Initial Public Offering (IPO) happens when a publicly-listed company floats its shares on a stock exchange for the awfully

Business leader''s, Explain the business leader's primary business or busin...

Explain the business leader's primary business or businesses, highlighting how the leader got started and examine the leader's three (3) main business challenges in establishing an

How can a retail bank deal with liquidity risk, QUESTION 1 Discuss the ...

QUESTION 1 Discuss the main components and functions of the financial system making reference to Rodrigues Island. Suggest measures which could be implemented to develop the fi

Improve the communication process among students, QUESTION Globalisatio...

QUESTION Globalisation has impacted in various spheres of our lives and has made our world become small. In the educational field, classrooms have become smaller and increasing

Business objectives, OUR AIM IS TO BRING INNOVATION BY ADOPTING FOLLOWING S...

OUR AIM IS TO BRING INNOVATION BY ADOPTING FOLLOWING STRATEGIES. - Competitive strategy: want to adopt competitive business strategy; we will attempt a sustainable competitive

What is inventory control, What is Inventory Control? Inventory Contr...

What is Inventory Control? Inventory Control: Scope and importance of Inventory Control: It is the scientific method of determining how much stock is maintained so as to

Discuss the limitations to rational decision making, Question 1: (i) A...

Question 1: (i) An organisation evolves in a specific and general environment. Discuss, using examples, the components of each environment. (ii) ‘Ethical workplace behavi

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