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A Case Study Performance Review

938 words - 4 pages

Taylor Woodrow is one of the largest housebuilding and general construction companies in the UK. It concentrates on building houses as well providing housing management service. Taylor Woodrow’s operating objectives contain becoming the leader of its area and keeping the best safety record. Besides, objectives of employees in Taylor Woodrow may include receiving satisfied salary, being trained properly for advanced career and feeling safe in workplace (The Times 100, 2014). Taylor Woodrow implements a series of HRM practices to create a fit between the objectives of the company and its employees. Performance management is an essential part to ensure these two sets of goals accordant.
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One crucial reason why performance review has been widely applied by enterprises is that it is believed to help information transfer between employees and managers (Rust, Lemon, and Zeithaml, 2004).
During the performance review, managers will assess, according to standard rating rules, the accomplishment degree of previous decided objectives of employees. The assessment results that received from the interview is directly associated with employees’ salaries and bonus payments in plenty of companies. In the UK, there is a trend to link pay and promotion to measured performance (The Times 100, 2014). However, when it comes to grading, managerial authority may bring out a negative impact of performance management. At first, managers have biases when they are grading employees. Although the rating process is designed for evaluating fairly, the results may be far away from fairness. The main reason is that managers who are responsible for giving grades hold different incentives and preferences (Bol, 2011). Some may appreciate positive attitude, while some others may prefer better communication skills. Some prefer to give similar ratings (Centrality bias), while some tend to inflate ratings (Leniency bias). Evaluation in performance review is subjective processes most relying on managers’ feelings. It would be a fatal experience for employees if managers treat the review as a chore instead of the responsibility. Therefore, grading biases reduced the accuracy of performance evaluation (Bol, 2011).
One factor that may cause biases is the company focusing on evaluating less important aspects instead of most important performance (Nielsen, 2013). For example, an employee is good at finishing work sufficiently alone. If both work accomplishment performance and team-work performance are measured in performance review. Then, a supervisor will probably give higher score to employee’s individual performance but lower score to employee’s team-work performance. However, losing scores in team-work performance doesn’t mean the...

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