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

Healthcare, Post a short list of your personal vision, mission, values, and...

Post a short list of your personal vision, mission, values, and ethics, social accountability, and stewardship values related to the health care field you are in or will be enterin

Determine the average waiting time, Build a simulation model using the dist...

Build a simulation model using the distributions you get in part A to verify whether the claim by trucking associations that the average time it takes a truck to cross the border h

What is the meaning of term entrepreneurship, What is the meaning of term E...

What is the meaning of term Entrepreneurship? Meaning of Entrepreneurship: Entrepreneurship refers to a process of action an entrepreneur undertakes to establish h

Explain how effective brand management can assist ib4e''s, Over the past fe...

Over the past few years, the company iB4e has underperformed compared with its competitors which enjoy stronger brand recognition. In addition, lots of experienced staff responsibl

Explain market development life cycle, A) Explain what the dependent variab...

A) Explain what the dependent variable referred to by Delone and McLean (2005) is and how it is depicted. Outline how practitioners might use the Delone and McLean framework to ana

What are the different types of decisions, What are the different types of ...

What are the different types of decisions? Decisions might be of different types: Several of the significant kinds of managerial decisions are described below: • Programm

Explain relationship development theories, Question: i) Recall a time w...

Question: i) Recall a time when you have been the target of rumours or gossip. How might these influence the development of a friendship (whether the gossip is spread by the pe

Discuss the role of the wto, QUESTION 1 The World Trade Organization (W...

QUESTION 1 The World Trade Organization (WTO) deals with the rules of trade between nations at a global or near-global level. Discuss the role of the WTO in promoting internati

Main approaches to quality that are available to ld2, The LD2 group has gr...

The LD2 group has grown rapidly over the past five years by acquiring a number of smaller kitchen accessory manufacturers and kitchen suppliers and fitters. As a consequence of thi

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