Performance Appraisal - Mr. Biggs - Case Study Example

Performance Appraisal Name Class Unit Introduction Mr. Biggs is a fast food retailer with presence in many countries. The organisation is able to serve more than 200,000 customers daily in 20 countries. The organisation has its headquarters in United States. The organisation operates its business as a franchise in countries of operation. The products offered by the organisation are French Fries, soft drinks, hamburgers, chicken and cheese burgers. The organisation has been in operation for long time with the first store opening using the trademark on the name Mr Biggs in 1992. The organisation carries out performance appraisal on regular intervals. The pay in the organisation is based on the performance. Method used Mr. Biggs uses performance appraisal as a verdict to back up salary increases, demotions, carry out promotions, transfers and job terminations. Performance appraisal is designed in a way that enables it to be beneficial to the employees as well as the organisation. The organisation uses Behavioral Anchored Ratings Scales (BARS) (Waseem, 2012). The method was introduced by Smith and Kendall. The performance dimensions are clearly defined and based on the observable behaviors. The method have gained high acceptance due to its use of specific behavior which are derived for each job. This helps in gaining a reliable system which is error free (Barclay, Dann & Holroyd, 2000). The organization has started adopting Graphic Rating Scale (GRS) in its current appraisal system. GRS looks at the employees rating in specific areas only. The rater marks the employee based on the scale and determines the employee performance in the organisation. The employees are analyzed on a scale which is quantitive which helps to compare and contrast. The method has been adopted due to fact that it allows comparison with individuals from other job categories (MacKenzie & Queensland Fire and Rescue Authority, 2000). Parameters used The PA system used in the organisation has the following parameters; business acumen, people leadership, effective communication, execution and customer centricity (Furtwengler, 2000). Business acumen This refers to rating the employee ability to make decisions fast and accurately. This helps the organisation to know the employee business activities in the organisation (Furtwengler, 2000). People leadership This is the employee ability in showcasing leadership skills. This helps the organisation to know whether the employee have the capability to motivate others. An employee who scores well in this parameter has the ability coordinate other team members. The organisation has placed a lot of value in this aspect as it enables to determine employee leadership skills (Furtwengler, 2000). Effective communication The organization values communication as an integral part. The organisation looks at the employee communication skills and gauges them. An employee is gauged whether they can communicate at all levels (MacKenzie & Queensland. Fire and Rescue Authority, 2000).79 Execution The employee ability to execute a given task at a specified time is gauged. The method looks at the employee efficiency and potential. The ability to handle workload under pressure is gauged. Customer centricity The employee way of handling a customer is gauged. The employee promptness in handling the customers is gauged. All the parameters are measured using a three points rating chart. The chart ratings are; outstanding, meet expectations and need improvements (Furtwengler, 2000). The process A special team of accesors carries out performance appraisal in the organisation. The team carries PA biannually where the employees are notified in advance. If the team finds an individual performance to be below the set standards, some form of criticism takes place. The organisation also makes sure that they give employees feedback after the assessment (Waseem, 2012). The organisation gives the employee their feedback during November and December through direct manager. The feedback is provided by the manager on one to one basis. The organisation has ensured that the feedback takes about 20 minutes. The organization knows that feedback helps the employees to keep focused and directed towards the desired organisation goals. The employees are able to know their progress in meeting their personal goals (MacKenzie & Queensland Fire and Rescue Authority, 2000). Strengths The most relevant factors in the PA form are assessment of the employees’ goals, what can be done to improve job satisfaction and assessment for further training needs. These are vital factors that organisation depends on in order to improve productivity. The PA used in the organization has been accepted to have uniform standards in all departments. Ratings by the system are scientific which makes the employees to have faith in the system. PA system used encourages communication between the employee and accesors. The accesors is able to communicate to the employee on the feedback. This makes the assessment to be a two sided affair where the employer and employee participate (Barclay, Dann & Holroyd, 2000). PA in the organisation is carried out without time wastage. Feedback is provided in November and December and takes 20 minutes. This is due to fact that the organisation keeps track of the employee records and keeps observing them continuously. The organisation PA has able to be gain positive attitude among the employees since it is not subjective (Jamaica Employers' Federation, 2002). One of the unique features on the organisation PA is the ability to identify and provide training needs and ways of strengthening individuals’ strengths and weakness. This has helped the system to enhance the organisation competitiveness (Barclay, Dann & Holroyd, 2000). Weaknesses In the PA form, the assessment on the best and worst job aspects is less relevant. These factors do not contribute much to evaluating the employee capabilities. The answers given may be biased and can lead to wrong evaluation of an employee when tallying the final score. One of the weaknesses of the system is lack of senior management support in some cases. This makes it hard to improve the system. There is also shortage of tools which can help in improving performance management (Furtwengler, 2000). There are some cases where the appraiser lacks good communication skills leading to ineffective performance feedback. This leads to employees not being forthright and candid. There are cases where the system has halo effect. This involves cases where the employee is rated highly by the accesors due to good earlier performance rather than current performance. There are also cases where the accesors rate an employee higher due to earlier poor performance (MacKenzie & Queensland Fire and Rescue Authority, 2000). PA leads to anxiety for both manager and employee. There are cases where the employee perceives the appraisal to be unfair. There are cases of the employees’ complaints on the system justice. Inconsistence and inaccurate information leads to the system being seen as biased. There is a probability of appraisals having negative impact on the employees if they are poorly designed or administered (MacKenzie & Queensland Fire and Rescue Authority, 2000). Recommendations The PA form should include assessment on accountability, integrity, communication skills and leadership. This can be included in the form to make it more effective. When the organisation is able to gauge these qualities, it becomes easier to judge their employees and make informed evaluation. There is need for the organization to improve on the PA system. The program should be well thought and tailored for the firm. The management should be trained on the appraisal process. This helps the management to have correct information which can be easily interpreted. Job description is required to be given to all employees in a clear manner. This ensures that the employees are not weighed against the wrong scale. The employee is thus able to know their key areas where the accesors can use them (Furtwengler, 2000). The organisation must view the appraisal process as a continuous activity. The organisation should discuss with the employees on the performance expectations in a regular basis. There is need to specifically help the weak employees. This can be done by giving the employees specific information on the areas they should improve and help them set both short and long term goals. The organisation expectations must be realistic. During PA, the employees must fully participate in the process. The accesors should be able to know barriers which the employees face that might inhibit performance (Dirk et al. 2007). The purpose of the system is to help in improving the employees’ performance as well as organisation. The system should regard all the people and note that the employees are the most important resource. The system should always ensure that the employees are satisfied. Open communications are needed between employees and accesors. The main area that the organization should look at is employee satisfaction (Barclay, Dann & Holroyd, 2000). Conclusion The organisation has been able to able to use performance appraisal to access the employees’ potential and their current performance. The organisation uses PA for salary administration, promotions, demotions and transfers. The organisation has utilized Behavioral Anchored Ratings Scales (BARS) and Graphic Rating Scale in their current assessment. The PA system used in the organisation have the following parameters; business acumen, people leadership, effective communication, execution and customer centricity. Feedback is given in November and December and takes 20 minutes. The main strength of the organisation PA system is its uniform standards which makes it scientific. The system also identifies training needs for the employees and helps them in improving. The areas of weakness of the system are; lack of management support, poor communication, halo effect and anxiety. The organisation should use a well tailored PA system. The management should also be trained and the system outcome should be able to satisfy the employees. Through the PA system, the organisation is supposed to improve its performance as well as that of the employees. References Barclay, I., Dann, Z., & Holroyd, P. (2000). New product development: A practical workbook for improving performance. Boca Raton, FL: CRC Press. Dirk, D., Clare, H., Carol, B., & Chris, S. (2007). Effects of upward feedback on leadership behaviour toward subordinates. Journal of Management Development, Vol.26, no.3, p.228-238. Furtwengler, D. (2000). Perfomance appraisals. Indianapolis, Ind: Macmillan. Jamaica Employers' Federation. (2002). The perfomance manager: Your guide to effective performance appraisal systems. Kingston: JEF. MacKenzie, I. S., & Queensland Fire and Rescue Authority. (2000). Performance appraisal systems for organizational success. Emmitsburg, MD: National Fire Academy. Waseem, M. A. (2012). Perfomance Appraisal Congruence: A Tool to Measure Attitudinal Outcomes of Employees. Saarbrücken: LAP LAMBERT Academic Publishing. Appendix Read More