Performance appraisal design
As seen in organisation X performance appraisal takes place once a year. Also there is little evidence regarding employee involvement in appraisal system. The rating does not have explanation on what each score means. Pulakos, 2004 emphasises that performance management should be based on two-way communication and ongoing feedback rather than being a yearly exercise. Food ingredients manufacturer, who experience very low staff turnover ensure that they are transparent with the two way communication so that their employees are strongly integrated and have a sense of integrity. They have introduced self scoring system to build up on personal responsibility ...view middle of the document...
Armstrong, 2009 emphasises that well designed rating lets people see where they stand and identifies high talent thus can add value if used accurately. It is essential to choose a rating that is effective and meaningful to the organisation, therefore would benefit from appraisal being designed in a way that offers visible benefits and is fair and consistent.
Performance review meeting and its effectiveness
As we can see in case study Simon spend little time preparing, despite this being a curtail groundwork to obtain a successful appraisal meeting. Further, there is a lack of evidence regarding the purpose of the meeting being the alignment of individual performance to the business objective. For a review to be effective there need to be clear purpose of the meeting, which aims to align individual performance to business objectives. During the review it is best to concentrate on behaviour of employee and its relation to achievements on individual and organisational level.
To measure effectiveness of review meeting we need to assess outcomes of performance appraisal and to do this we can use KPI’s (Dobbins and Cardy, 1994 - Performance appraisal: alternative perspectives). Exploring this further Australian Industry Group, 2012 suggest that the main indictors of effective performance management review meeting include visible higher productivity due to employee feeling valued and better quality of work due to constructive feedback, which helps to focus on required improvements. In addition, job satisfaction increases, which can be measured by employee survey as well as visible reduction in turnover, absence and stress level.
Measurement should always reflect the vision of the organisation and there should be periodical assessment conducted to review results. It should be recorded and communicated to employees at all level. By doing this organisation can improve engagement and improvement effort (Ahmed et al., 2010) As an example Utilities, which are growing business use balanced score card across the company on individual, departmental and organisational level. They use those KPI’s, which help to measure effectiveness of each part of performance management. Armstrong, 2009 suggests that another good approach includes peer reviews and monitoring. This way outcome of the review meetings together with ratings agreed is reviewed by senior managers or HR department to eliminate unusual patterns and big differences across various departments.
There is lack of information in the case study regarding the effectiveness of their performance management...