Performance Appraisal Systems in Red Square Industries - Free Essay Example

Title Page Performance appraisal systems in Red Square Industries Executive Summary The Red Square Industries implemented performance appraisal system. This report evaluates the current appraisal system and provides implementable solution to the problem. HR director analyses the advantage of the current performance appraisal system in terms of grading, discriminating on basis of performance, rewarding performance and performance appraisal record. Next, he analyses the disadvantage of the appraisal system in respect of lacking top management commitment, leniency bias, poor communication, violation of EEO and static performance appraisal. Following are the recommendations that the HR director provides to the CEO: †¢Top management commitment †¢Prevention of leniency bias †¢Dynamic performance appraisal †¢Enhancing communication †¢Legal treatment in performance appraisal system †¢Employees feedback Table of Contents Pg Title page Executive Summary 2 Table of contents 3-4 1. 0 Introduction 5 1. Background 5 1. 2Aims 5 1. 3Scope 5 2. 0Literature review 5 3. 0Analysis 6 3. 10 The advantage of the performance appraisal systems in Red Square Industries 6 3. 110 Major type of performance appraisal systems 6 3. 20 Performance appraisal objectives 6 3. 130 The performance appraisal record 7 3. 20 The disadvantage of the performance appraisal system in Red Square Industries 7 3. 21 Lack of top management support 8 3. 22 Leniency bias 8 3. 23 Poor communication 8 3. 4 Violation of EEO requirement 8 3. 25 Static performance appraisal 9 3. 30 Implementable solution 9 3. 31 Management commitment 9 3. 2 Prevention of leniency bias 9 3. 33 Considering the validity and accuracy of the performance system 9 3. 34 Dynamic performance appraisal 9 3. 35 Enhancing communication 10 3. 36 Legal treatment in performance appraisal system 10 3. 37 Employee feedback 10 4. Conclusion 10 Reference list 1. 0 Introduction 1. 1 Background The Red Square Industries implemented performance appraisal system. At same time, it has been troubled for some time by the apparent lack of effectiveness of the appraisal system. 1. 2 Aims The purpose of the report is to evaluate the current performance appraisal system in terms of advantage and disadvantage. As well as, provide the relevant solutions to overcome the problems. 1. 3 Scope The pros of the current performance appraisal system consist of the grading, discriminating performance, rewarding performance and the performance appraisal record. In turn, the cons of the current system include that lacking top management commitment, leniency bias, poor communication, violation of EEO and static performance appraisal. Finally, the recommendation comprises with top management commitment, prevention of the leniency bias, dynamic performance appraisal, considering the validity and accuracy of the performance system, enhancing communication, legal treatment in performance appraisal system and employee feedback. 2. 0 Literature review The current performance appraisal system brings some advantages to Red Square Industries. For example, the rewards are corresponding to the related contribution, which is supported by Khan, Farooq and Ullah (2010). They state that the change in reward affects the change in the motivation and performance of employees. At the same time, there are some disadvantages of current performance appraisal system existing in the Red Square Industries. It could reduce the feeling of satisfaction and organisation commitment by the certain types of performance (Stathakopoulos 1997) when lacking top management commitment. In addition, the leniency inhabits the delineation of the rating quality (Frah and Dobbins 1989). What is more, the employees belong to the union are more lenient and only those rated 1 2 get bonus payments, which against the opinion that the EEO in performance appraisal is the minimum requirement (‘EEO is everyone’s responsibility’ 1981). The unfair treatment also creates ill feeling to the employees that may ‘doom the most carefully constructed appraisal system’ (Jawahar 2007). Finally, employee feedback is one of the recommendations. Nickols (2007) states that the Performance appraisal provides employees with feedback regarding their performance to reduce errors and waste, increase quality and enhance employee motivation, commitment. . 0 Analysis 3. 10 The advantage of the performance appraisal systems in Red Square Industries 3. 110 Major type of performance appraisal systems Stone (2010) expresses that performance appraisal systems focus on the individual employee. To judge the performance of staff, the organisations choose several performan ce systems, including grading. 3. 111 Grading Grading system could describe workers’ performance clearly in specific performance levels, comprising with superior, good acceptable, marginal and unsatisfactory (stone 2010). Stone (2010) further argues that the forced ranking distribution is the refinement of the grading system, which places the fixed percentage in each grade. For example, the Red Square Industries adopt the forced distribution as its appraisal system. Particularity, the top 10 per cent are superior performers, the next 25 per cent are good performers, the next 45 per cent are acceptable performers, the next 15 per cent are marginal performers and the bottom 5 per cent are unsatisfactory performers. As a result, the evolution expresses the performers and non-performers. At the same time, it helps managers to overcome the problem that overrating, underrating or rating people as average (stone 2010). Also, it requires managers to take more time to consider about their employees (stone 2010). 3. 120 Performance appraisal objectives 3. 121 Discriminating on the basis of performance The organisations must distinguish the subordinates who perform well or not in the company. Stone(2010) notes that the inadequate performance can not exist in the organisation. He further stresses that the failed performers would be supplied opportunity and assistance to improve their grads, but they will be transferred, demotion or termination if they can not match the requirement. For instance, Red Square Industries give employees rated 5 roughly 3 to 6 months to improve their performance by training before they get sack. Grote (2000, cited in Stone 2010) notifies that the organisation like’ Microsoft annually weeds out about 5 per cent of its employees through its performance appraisal system’. The up or out program brings great benefits to the organisation. it not only motivates those well- done performers by discriminating the good performers and non-performers, but also it saves much potential costs if they continue keeping the poor employees , such as dissatisfy the customers, damage public images, lost sales (stone2010). In a word, the Red Square Industries discriminate staff, which is one of performance appraisal objectives. 3. 122 Rewarding performance Most organisations would reward the employees who have contributions. Stone (2010) indicates that based on the objective measure of performance like forced distribution system or performance based discrimination, the organisations make decisions that who is being rewarded. In Red Squared Industries, the salary increases and bonus payments are performance related. Those rated 1,2 and 3 would receive relevant salary increase. Those rated 1 or 2 would get bonus payments. The employees rated 4 and 5 are given legally required increases. As Murray (2005, cited in Stone 2010) says that ‘if you deliver, you will get paid but if you do not deliver, you will suffer the impact of that’. As a result, the reward performance related system motivates the staff to contribute and approach good performance. In addition, the different level of contribution, the rewards that staff receives are correspondingly different. The bonus payments are only rewarded to those rated 1 or 2. Those rated 4 and 5 only get legally required salary increases. Stone (2010) points out that the excellent performers with higher rewards and the lesser performers with least rewards could ‘encourage a performance-oriented behaviour and a performance-oriented culture’. Therefore, the change in reward affects the change in the motivation and performance of employees (Khan, Farooq and Ullah 2010). Employees may lose their passions and give up forwarding if everyone gets the same awards no matter how good the performance is. In other words, the top performers would be motivated to keep remaining their excellent contributions while the bad performers would be encouraged to do better due to the incentive of the high performance related awards. 3. 130 The performance appraisal record The record is the document that records the ’performance rating and comments for employees’ (stone 2010). As we know, the Red Square Industries do make the performance appraisal record to note down the distinction of subordinates’ performance. The record could largely help the organisation identify those who play important role in achieving the objective of the organisation. 3. 20 The disadvantage of the performance appraisal system in Red Square Industries 3. 21 Lacking top management support The factor that lack of top management support is the barrier to the effectiveness of performance appraisal schemes (stone 2010). Stone (2010) supports his opinion that ‘the best CEOs never hesitate to fire when they must’. However, the managers of Red Square Industries are reluctant to fire trouble some non-performing employees who belong to a union. As well as, they refuse to rank anyone as a 4 or 5. They fail to follow the grading system and discriminate on the basis of performance. Otherwise, the managers send the wrong signal to employees that they do not need to worry if they do not perform well (stone 2010). What is worse, it could reduce the feeling of satisfaction and organisation commitment by the certain types of performance (Stathakopoulos 1997). 3. 22 Leniency bias Leniency bias occurs when manager rates their employees either consistently high or low’ (stone2010). For example, some managers argue that their department is different. They say that most of their employees are stars or starlets and refuse to rank anyone as a 4 or 5. Leniency bias is one of the aspects that cause rating errors. It makes the appraisal system become inaccurate and nonsense (stone2010). Farh and Dobbins (19 89) further support Stone’s perspective, they say the leniency inhabits the delineation of the rating quality. 3. 23 Poor communication Negative communication and participation inhabit development scheme, hence prevent the appraisal process (Lansbury 1998, cited in Stone 2010). In Red Square Industries, when a ‘star’ is perceived by co-workers as really belonging to another ranking group, they are reluctant to communicate and cooperate. What is worse, the rating system fosters envy and negative competition. The typical attitude is that if they are hothots, let them solve the problem. As a result, it stops employee development that is the aim of performance appraisal. 3. 24 Violation of EEO requirement EEO requires ‘performance appraisal must be job-related and non-discrimination’ (stone 2010). However, employees in Rea Square Industries rated 5 who belong to a union are treated more leniently in terms of termination and pay increases than the employees who are not union members. Additionally, those with a 1 rating are referred to as ‘star’. Those with a 4 or 5 rating are called ’dog’. Employees rated 3 are called ‘workhorses’. What is worse, bonus payments are only given to those rated 1 or 2 and those rated 4 or 5 are only given legally required increases. Many managers claim that the forced distribution of employees creates too much ill feeling due to the unfair treatment. Jawahar (2007) says that ‘an unfavourable reaction may doom the most carefully constructed appraisal system’. What is more, EEO in performance appraisal is the minimum requirement (‘EEO is everyones responsibility’ 1981). 3. 25 Static performance appraisal The appraisal program is not successful among the managers and workers in the Red Square Industries. Mohrman (1995, cited in Stone 2010, p. 295) says that ’they are concerned with the past performance rather than with improving future performance’. People look back where they have been and do not attempt to explore how to grow and develop. For instance, those rated 3 become unmotivated, because they regard their rating as meaning they are only average. The static performance can not match the aim of the performance appraisal of the employee continual development. 3. 30 Implementable solution 3. 31 Management commitment To succeed the performance appraisal system, it requires the management commitment (Regel 1987, cited in Stone 2010). Regel (1987, cited in Stone 2010,p. 04) further states that ‘all members of the management team need to understand appraisal’s purpose and should agree that it is critical for management to participate in and support the system’. Therefore, if the management commit to the appraisal system, it will work. 3. 32 Prevention of leniency bias Due to leniency bias, the rating error generates. Therefore, the managers should prevent it to create the fair and accurate appraisal system. T he managers of Red Square Industries should correctly distinguish the performance. As a result, the appraisal system would not be nonsense and it ould facilitate employees to grow and develop. 3. 33 Considering the validity and accuracy of the performance system Sometimes the rating will not reflect the actual judgement, so it requires the manager to recognise this (stone2010). Stone (2010) further illustrates that ensure performance related are being assessed to achieve validity and make sure generating the consistency results to reach reliability. 3. 34 Dynamic performance appraisal Stone (2010) explains this system is not just judgement about performance, but the motivation to employees toward new goals. The Red Square Industries workers should learn to improve themselves relying on the rating system. Compared to the static program, the dynamic program is ‘more likely to be effective, credible and sustainable’ (Anderson 1992, cited in Stone 2010, p. 315). 3. 35 Enhancing communication Positive communication develops the employees themselves and facilitates job satisfaction (Stone 2010). The workers in the industries should cooperate and well communicate to each other, no matter others’ rating. Help each other and improve together to accomplish the organisational goal. 3. 6 Legal treatment in performance appraisal system Get rid of the call like ‘dogs’ or ‘workhorses’ which refer to those rated a 5 and 4 respectively, which will eliminate the ill feeling of employees. Furthermore, the fairness of the appraisal system would encourage people to participate to the organisation. Legal treatment is the desire of employee. Also, it is the proces s of EEO. 3. 37 Employee feedback Performance appraisal provides employees with feedback regarding their performance to reduce errors and waste, increase quality and enhance employee motivation, commitment (Nickols 2007). There are pros and cons of performance appraisal system in Red Square Industries. Employee feedback could help to minimize the disadvantages of the appraisal system. 4. 0 Conclusion In a word, the current performance appraisal system presents advantages in the Red Square Industries. Firstly, the grading system describes the specific performance level, which helps managers to overcome the overrating, underrating, rating people as average and requires managers to take more time to consider about their employees. Secondly, discriminating performance leads to motivate those well- done performers and save potential costs. Thirdly, reward performance results in motivating contribution and good performance. Finally, performance appraisal record helps to identify those who play important role in achieving the objective of the organisation. There are also some disadvantages of the current performance appraisal system. Firstly, it lacks top management commitment, which leads to send wrong signals and reduce the feeling of satisfaction to employees. Secondly, the leniency bias causes rating errors and inhabits the delineation of the rating quality. Thirdly, poor communication stops employee development. Fourthly, the Red Square Industries violate EEO which is everyone’s responsibility. Last but not least, the static performance appraisal can not match the aim of the performance appraisal of employee continual development. Finally, the solution comprises with top management commitment, prevention of the leniency bias, dynamic performance appraisal, considering the validity and accuracy of the performance system, enhancing communication, legal treatment in performance appraisal system and employee feedback. Reference list ‘EEO is everyones responsibility’ 1981, Management Review, Vol. 70 Issue 3, (online ebscohost). Farh, JL Dobbins, GH 1989, ‘Effects of self-esteem on leniency bias in self-reports of performance: A structural equation model analysis’, Personnel Psychology, Vol. 42 Issue 4, p835-850,(online ebscohost). Jawahar, I 2007 ‘The Influence of Perceptions of Fairness on Performance Appraisal Reactions’, Journal of Labor Research, Vol. 28 Issue 4, p735-754,(online ebscohost). Khan, KU, Farooq, SU Ullah, MI 2010, ’The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan’, Research Journal of International Studies, Issue 14, p37-54, (online Ebscohost). Nickols, F 2007, ‘performance appraisal’, Journal for Quality Participation, Vol. 30 Issue 1, p13-16, (online ebscohost). Stathakopoulos, V 1997, ‘Effects of Performance Appraisal Systems on Marketing Managers’, Journal of Marketing Management, Vol. 13 Issue 8, p835-852, (online ebscohost). Stone, RJ 2010, Managing Human Resources, 3rd edn, John Wiley Sons, Milton.

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Reflective Portfolio

Question: Discuss about the effect of internship for the future development of the carrier. Answer: Introduction: This particular assignment has provided an extensive knowledge and deep insight about my experience while working with the organization. From ten weekly learning journal entries, I have chosen week seven. An extravagant wedding had been celebrated on 15th march of 2016. I was playing in the role of an in-charge. In this particular study, I would like to highlight my role, responsibilities, learning experience, scopes of learning and so many. While executing my job inside the wedding event I had to face immense difficulties to control the entire event. Therefore, I had learnt from my coordinator how to overcome various challenges skillfully. Role and responsibility associated with the internship I had been appointed for the post of in charge on the wedding ceremony of Amy and Cesur. This particular job is completely related to the event management. I had to play a big responsibility to take care of the event decoration in an organized way. The entrance of bride and grooms were decorated an incredible manner. I had to treat the guest carefully. By maintaining an effective communication with them, I convinced the guests to have their own seats instead of blocking the brides entrance. Besides, I had to play a key role to cooperate the photographers as well. While taking a good snap with the bride and grooms, photographers as well as the videographers had to face immense challenges (Cameron and Green 2015). My role as an in-charge was to manage the entire situation skillfully so that the entire event could be conducted systematically. Elsbach (2014) stated that the role of an in change of a wedding event is very delicate as the success of the event is entirely dependent on the managing skill of the in-charge. I personally felt the same while executing my job at the workplace. On the contrary, it has been highlighted that after achieving the business goal the event in-charge has been highlighted first among the entire team members. Therefore, I have realized that an in charge has to play a major role in order to deal with the wedding members effectively. My own experience while working with the organization I have gone through a blended experience while working as an in charge of the wedding ceremony of Amy and Cesur. While interacting with the guests properly I had to face immense difficulties. People have entered into the ceremony from various culture and background. Therefore, it was definitely challenging for me to communicate with them properly. Linguistic barrier was one of the major factors that prevented an effective communication with the guests. I had tried my best to apply both kinds of communication including verbal and non-verbal. The people who had to face verbal communication barriers, I liked to use my expression and body language in order to communicate those people. Apart from the communication barriers, I faced numerous difficulties while treating with the photographers, celebrities, other guests of bride and groom and so many. In addition, I had to keep a constant control on the service procedure as well. As per my instruction, the service providers intended to keep themselves alerts in order to provide an effective service to the guests. As a whole, this internship has remained a memorable learning experience in my life. Brief discussion on the problem solving activity Rationale of my action While dealing with the post of an in-charge I had to take many immediate actions. For an example, in order to deal with the people of different culture and attitude I had to learn non-verbal communication method. In addition, amidst the extravagant gathering of a wedding ceremony I had gave the photographers immense space to take necessary snaps of bride and groom. Consequence of my action As per my point of view, people have definitely faced a positive consequence after taking my relevant actions against a particular situation. Videographers as well as the photographers have achieved immense opportunity to execute their job perfectly. Guests have achieved a warm treatment on behalf of the coordinator. The entire event has been conducted systematically. As per my point of view, role and responsibility of an in charge should be executed properly in order to get a positive outcome. What was going right and what was going wrong While conducting my role and responsibility I had to overcome numerous dwindling situations in order to execute the job systematically. I had observed that a large number of guests had turned up to attend the wedding ceremony. Due to the limited space, my team members could not arrange available seat capacity for the guests. As a result, I had to face an embarrassing moment after the huge gathering at a time. Some of them had to spend their time by standing in the place. Therefore, this particular thing was not going right at all. Otherwise, the communication with the invitees, the way of arranging every aspects, decoration were commendable by others. Learning experience However, it is undeniable that the entire journey was a tremendous learning experience for me. I was quite introvert in nature. After appointing in this particular post, I have come to know how to maintain an effective communication with others. Communication is one of the most important factors for the success of any kind of business process. Apart from that, I have come across people of different attitudes. I also got an opportunity to learn their culture, values and beliefs. How this experience would help to change my approach in future Before joining in the professional fields I dint not have any knowledge how to maintain professionalism inside a workplace. After doing the internship I have come to know the meaning of professionalism. Maintaining an effective communication with the clients is a part of my job. In addition, I have improved my skill and competency fervently after being appointed in the position of in charge. These particular experiences would help me to enhance my carrier in future. I would be able to control the entire business process more skillfully. Discussion on how this approach would help to develop my future career Holding the position of an in charge in a wedding ceremony is out an out a responsible job. In order to justify my dignity and position I had to change my personal gesture and style. Going beyond my introvert attitude, I had to learn how to make an effective communication with my clients to fulfill their needs and demands. In addition, I have learnt the style of approaching an opportunity or a proposal towards clients. However, these approaches would help to build my career definitely. While conducting an event I have used different kinds of methods to deal with a client effectively. The approaches include direct approach method, face-to-face method, personal selling approach and so many. Among the three approaches, international method would help to develop my future carrier first. With the help of this particular approach, I would be able to get an immediate feedback from the clients. Based on the feedback I would get the scope to develop my ability and skill. Discussion on how work placement should be developed for the future interns I personally believe that future interns should get an effective training before handling such kind of dignified position. In charge is the centre of an event management team. This particular individual has to keep a constant control over the entire process of business. Therefore, before handing this position, the person has to be skilful and competent enough to handle every kind of situation. An in change should have the capacity to accept any immediate pressure. Executing the job amidst immense pressure is the ideal responsibility of a dignified person. Therefore, an individual fresher has to face immense trouble to deal with variable circumstances at the very first stage. Therefore, training is highly needed to make a fresher efficient in terms of experience and competency. Discussion on my expectation of the industry following my placement As per my expectation, I have gained immense opportunity to expose my skill and competency. After appointing me for the post of in charge in a wedding event, I have come across numerous innovative experiences that I can apply even in my future. As per my point of view of industry, it can provide better placement even. On the contrary, It can be stated that place is least important. At the very first, an individual should have to think whether this person would be able to handle any sudden crisis or not. I am not exceptional to that. I have come across innumerable challenges while dealing with the clients at the wedding ceremony event. Conclusion This particular study has provided detailed overview about the effect of internship for the future development of the carrier. I had been appointed for the post of an in-charge of a wedding event. Therefore, I have expressed my feeling and experience while dealing with the people of different culture and attitude at the workplace. Various positive and negative aspects of arranging an event have also been highlighted here.