Tips for Effective Performance Appraisal System

Question: Describe about the Effective Performance Appraisal System? Answer: Introduction: In this given case study there is a lack of performance appraisal system. So, a good and effective performance appraisal is required. Performance appraisal is a process through which, the performance level and ability of an employee can be evaluated. It is required in the future growth and development. It is generally done in a systematic way. The Relationship between strategic and operational plans: Plans are assigned goals of an organization. Without any plan, none of the employees can achieve their goals. Strategic plans help to meet the organizations large-scale goals. On the other side, operational plans holding excellent points for implementing and executing, strategic plans in day-to-day works. Strategic plans cover a long span of time that may be several years. On the other side operational plans have to cover within a year. Strategic plans are stated in a less-detail manner, but operational plans provide excellent details(Kerzner, 2014). Five things that needs to be considered in case of decision making: Relationship- 1) Relationship with managers. 2) Relationship with peers. 3) Relationship with subordinates. Work and life-1) location. 2) Travel. 3) Amount of work. The kind of work-1) autonomy. 2) Type of work. 3) Contribution. 4) Growth opportunity. Company-1) values. 2) Leadership. 3) Industry. Financial consideration-1) base pay. 2) Incentive. Key result area and critical success factors: Key result area refers to the common area of production and result. Critical success factors have very limited number of variables, conditions and characteristics that have a serious impact on the efficiency, effectiveness and viability of a project, program or an organization. Example of KRA or CSF, Role- product manager, Goal- ensuring of quality product. Key result areas: Satisfaction of customers. Managing the new level product. Controlling operational cost. Quality check. Keeping all the records SMART goals: every business required a set of objectives which is very important to focus on the organization. SMART goals can be defined as following: Specific Measurable Achievable Realistic Time scales. Importance of documentation in PMS and risk: Documentation is the process where information about employees performances is recorded. It is important for an interaction between the managers and the employees. Mainly, primary information is recorded in the documentation so that it would not be lost or forgotten. Example when a customer and an employees interaction went badly, feedback is recorded is the employees PMS (Aguinis, 2013). No risk is there for managing all the documentation effectively because HR develops this process by using feedbacks, measure work level, comments and observation. This all are general information which can get help an employee to develop their performance level. Four way of giving informal feedback and two formal feedbacks: Informal feedbacks are as follows: Ongoing- this type of feedback generally comes when the assigned work are in ongoing process. Day to day- when feedback provide as day to day basis. After checking someone- when the feedback coming after checking someone. Immediate feedback- the immediate feedback is generally comes informally (Aguinis, 2014). Formal feedbacks are as follows: Formal coaching sessions- it is a coaching session where HR and employee interact face to face and discuss about the employees progression and also analyze that there is any further support is required or not. Management by objective- MBO help to improve the performance of an organization by defining objectives which are decided both management and employees. Motivate staff through formal performance appraisal and self motivate for future performance: Motivation is the process which helps to encourage employees towards their work. Well execute and well design performance appraisals have a powerful motivational impact. Appraisal provides some benefits which help to motivate employees are as follows: Performance appraisal helps to improve an individual performance. Performance appraisal help to meet the higher-level psychological needs of an individual Performance management helps to increase an individuals overall development. Performance appraisal helps to build a sense of personal value. Performance appraisal gives a check to employees who are performing poorly. Performance appraisal helps to increase the satisfaction level of an individual (Falcone and Tan, 2013). Self motivation helps to improve an individual performance. By judging the past work performance review, an individual can improve their work in future. Performance appraisal help to interact manager and employees face to face and have a conversation regarding employees week areas, which also helps an employee to develop their performance in future (Mattone, 2013). Four different ways of Reward and recognition for an individual performance: Rewards and recognitions are the best way of motivating employees which help to change their work habits and the main behaviors to benefits a business. Types of rewards programs are- Variable pay Bonuses Profit sharing Stock options Types of recognitions programs- Recognize an Employees as a performer of the year or month Banquets or breakfast (Noe, 2013). Advantages and disadvantages of on the job training: In the On-the-Job training methods, skilled co-workers or supervisors instruct employees and they learn the job personal observation and practice. Advantages- This type of training is very economical as there are no additional personnel or facilities. The trainee will know the actual production conditions and requirements, since they work in the real environment with actual equipment. The trainee acquires full knowledge of the rules, regulation, and procedures by watching and doing. Companies with adequate jobs and employees can easily adopt this type of training (Beebe, Mottet and Roach, 2013). Disadvantages- Instruction may not be properly comprehended at times in these types of training. Learners are often distracted by the noise at the office or workplace. This may cause low productivity if the employee fails to develop adequate skills during the training (Mba-mentor.com, 2015). Plans for an individual are who is not able to meet the deadline: Performance Investment Plan (PIP) is taken for those who are underperforming level. The main purpose of PIP is to direct an employee regarding their performance and try to correct their work if any issues affect the business. Steps which help to improve an individual performance are as follows: Explain the performance issues. Establish an expectation level. Establish a fixed timelines. Progress an action plans which includes organizational objectives and goals. Determine a particular method of evaluation. Analysis PIP with the employee(Siddiqui, 2014). Monitor effectiveness of performance investment plan: There are six steps to monitor effectiveness of performance investment plan Collect all the data. Set a baseline for a normal performance. In this step employee receiving an alert, if they deviate from the baseline. Some typical repot appraise from the employee. In this step, data analysis and visualization take place. All data share with the employee after analysis.(Siddiqui, 2014). Benefits to manage unsatisfactory performance: There are some ways, which helps to benefit to manage unsatisfactory performance: Performance management only focuses on result, not the behavior and activities of an individual. If there is unsatisfactory performance, it will affect on the performance result. Performance management builds a meaningful measurement. It compares the standards and benchmark with the other organization(Successfactors.com, 2015). Steps involve in termination employees: Termination of an employee is the last decision which is taken by an organization. There are six steps which help us to handle termination process effectively: Address to the legal matters. Plan should be prepared before termination meeting. Assess security concerns. Finally conduct a termination meeting(Team, 2014). Conclusion: In the given case study it shows that an effective performance appraisal system is required. It shows that the appraisal system is not fair, so the employees are not aware of their own performance level. So, there a good appraisal system is required which helps to motivate employee and gives a good opportunity in future. References: Aguinis, H. (2013).Performance management. Boston: Pearson. Beebe, S., Mottet, T. and Roach, K. (2013).Training and development. Boston: Pearson. Falcone, P. and Tan, W. (2013).The performance appraisal tool kit. New York: AMACOM, American Management Association. Kerzner, H. (2014).Project management best practices. Hoboken: Wiley. Mattone, J. (2013).Powerful performance management. New York: AMACOM, American Management Association. Mba-mentor.com, (2015).Off the job training methods. [online] Available at: https://www.mba-mentor.com/off-the-job-training-methods [Accessed 21 Feb. 2015]. Noe, R. (2013).Employee training and development. New York: McGraw-Hill/Irwin. Siddiqui, M. (2014).Performance Appraisal Alignment in Perspective of Work Performance. Saarbrucken: LAP LAMBERT Academic Publishing. Successfactors.com, (2015).Employee Appraisal Systems. [online] Available at: https://www.successfactors.com/en_us/lp/articles/employee-appraisal-systems.html [Accessed 21 Feb. 2015]. Team, B. 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[online] Available at: https://www.whatishumanresource.com/on-the-job-methods [Accessed 21 Feb. 2015]. Yamamoto, S. (2013).Human interface and the management of information. Berlin: Springer.