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Research Paper- Performance Appraisal System

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Research Paper- Performance Appraisal System

Introduction

For clarity and comprehension of the study question, the paper employs a fictitious organization to represent others in the market. The organization’s name is Channing Communications. Channing Communications has its location in the United States. It is an organization that deals with the manufacturing and selling of home electronic appliances and communication gadgets. It is a small organization but with a potential of selling diverse products to become profitable in the future. The paper focuses on creating a performance appraisal system for Channing Communications. Employees are a significant part of an organization, and their roles/responsibilities are supposed to have a positive impact on the development of an organization. In this case, it is crucial to focus on how they perform and what motivates them to become the driving force towards operational success in their workplace.

Several internal and external forces act as barriers towards their development, and in turn, hinder their performance. A performance appraisal system is significant in influencing change and creating possibilities for employees to increase their potential. It focuses on influencing strong relationships among employees and other stakeholders. For the implementation of the new performance appraisal system, it is essential to focus on the existing one and the gaps it possesses that hinder innovation and definite propulsion of the organization towards achieving growth and acquiring a considerable market share.

Problem Statement

Channing Communications has been experiencing deteriorating status in terms of its market share in the last two years. Sales have dwindled, and it has failed to meet its annual profitability objective. Channing Communications has had to close some of its plants in its local area to meet its financial needs. Currently, the company is thinking of reducing its workforce to enable it to save enough financial resources for the shareholders and future operations. In terms of market operations, some of its major competitors (though multinationals) have already started taking its customer segments. These are customers who like quality home electronic appliances but lack the finance to purchase them.

Therefore, the situation influences them to purchase the products from Channing Communications. The scenario influences the company to think of possible ways to stop the retrenchment of employees and the negative performance it experiences. The above factor means that a strong performance appraisal system works for the company. It will serve as an engine towards influencing performance in the professional environment of the organization and the market in general.

Review of Current Practices

Bouskila-Yan & Kluger (2011) create a substantive definition of the concept of performance appraisal in the organizational environment. Also, the application and the outcome of its implementation is seen to be critical in the above case. Performance in most cases may refer to actions implemented by an organization such as Channing Communications and their consequences. Behaviors in the above case come from a performer. An act is converted into performance among employees. Behaviors may be viewed as being outcomes on their right. They have their origin from mental and physical efforts that are applied to tasks. Therefore, the above means that an organization may judge them from results. As per the above definition, the summary is that performance means achieving goals and obtaining the desired outputs (Constandachde & CHIRU, 2015). This means that employers and managers need to look at the potential of their employees in their workplace. This should also apply to their accomplishments when it comes to performance management. To achieve performance, there should be the development of measures to appraise achievements and create the rate of acquiring accomplishments. It is essential for success to involve decision making and action orientation. The above factor comes to existence through the availability of information on the gaps associated with employees’ roles and responsibilities in their workplace.

Carlos Pinho, Paula Rodrigues, & Dibb (2014) has discussed performance appraisal in detail. According to them, a performance appraisal system is also called a performance review. It focuses on the process of documenting the achievements of employees concerning set targets. It acts as a component of the performance management system. For an organization such as Channing Communications to do well in the market, it has to think of having a performance appraisal system that works as an essential management tool for its operations (So, et al., 2015). The process of managing employees in an organization may be significant compared to any other processes that are executed by managers daily. It is through a performance appraisal system that a manager acquires a formal tool of helping him/her to evaluate the performance quality of employees. It also ensures that potential is developed and harnessed to achieve overall organizational performance (Beh & Loo, 2013). An appraisal system has in the past been regarded as a communication approach that is planned and coordinated between a manager and an employee to evaluate employees’ past performance and creating a possibility for future improvement in an organization.

The electronic market whereby Channing Communications operate has and continues to demand an effective performance appraisal process. The demands and interests of the customers are the reason for the need for a more planned and formal process. A performance appraisal system, in this case, is beneficial in the identification and comparison of employees’ performances. Individuals may use appraisal data to review different decisions regarding human resource. It is also crucial in determining the need to enhance effective career development and training (Dusterhoff, Cunningham, & MacGregor, 2014). Issues regarding remunerations, rewards, and promotions are also considered by an appraisal performance system. The current market has ensured that the employers take advantage and use the results associated with their appraisals.

An organization such as Channing Communications among others have learned to create an appraisal fit for its business despite failing to understand the relevance of the system on their operational development. When it comes to such an issue, it becomes easy for an organization to make mistakes and experience adverse developments. To avoid problems regarding performance, it is essential for organizations to learn about the type of appraisal to implement in their operational developments. Many appraisals have developed systems that are intervallic and regular. Dusterhoff, Cunningham, & MacGregor (2014) argues that performance appraisals are undertaken on an annual basis. When it comes to the modern approach to appraisal, feedback becomes an integral part of it. It involves one-to-one interaction between managers and their subordinates.

This process entails effective communication that is known as a feedback process. It improves the sharing of information through an organization such as Channing Communication and reinforces strong relationships with superiors. The situation occurs because employees feel that their superiors are appreciating them and that the organization they work for continues to consider them. A performance appraisal system is a futures-based approach with an aim to facilitate the improvement of future performance through the consideration of present problems.

Strategic Plan for Change/Creation of Anticipated Change

Many organizations have tried as much as possible to introduce change in their operational environments. As reiterated above, an organization such as Channing Communications is a representation of the many issues that face other organizations daily. Its poor performance in the market has similarities to an organization such as Apple Inc. falling in the market index performance this year. A performance appraisal system works in other organizations, and it may create problems in others. However, problems relating to such a system may be nurtured by human error. Employees may think that such a system may be strict and may limit them from doing some personal things. However, in an organization such as Channing Communications, it is essential for the management to think of creating a capable system that focuses on its objectives, financial needs, and future growth. Since employees are the center of its operations, it is crucial for the organization to identify the gap that affects its employees’ performance.

An organization such as Tesco PLC has good remuneration packages and insurance for its employees. It also respects its employees through an appraisal system that introduce an effective working culture. Employees feel that they are appreciated and that their potential is developed through training and allowing them to undertake personal issues. This has made the stock of the company to rise in the last five years. The same status applies to the operations of Google Corporations. The company improves its appraisal systems daily, a significant factor that boosts the morale of employees in their professional environment. The above factor shows the crucial role that a performance appraisal system can play in the successful development of an organization.

Strategic Approach for Change Implementation

An organization such as Channing Communications requires an improvement in the employees’ portfolio. It is the role of the human resource department to consider developing a structure that is favorable for all stakeholders, mostly employees. The organization has to focus on identifying the reason as to why the employees are not performing. The reason may be because the employees are not motivated by their current remuneration, allowances, and other benefits. Employees may be having too much work compared to what the organization pays them. Many rules and regulations may also create dissatisfactions as employees may feel that they are limited from developing their potential.

Therefore, the organization should focus on issues such as reducing bureaucracies in its internal environment and allowing employees to feel free with each other but maintain an aspect of professionalism (Rusu, Avasilcăi, & Huţu, 2016). It is also essential to improve remunerations and allowances to enable employees to feel that the organization is focusing on their development. Another critical factor includes the aspect of focusing on their well-being. Employees should be left to have sometime whereby they handle their issues. This means introducing flexible hours whereby employees may choose to either come early and leave early or arrive at the workplace late and leave late. Despite the above factor, employees have to clock in the required hours.

Final Recommendations and Possible Outcomes

The above strategies show that any organization which ensures that employees are satisfied, there is a significant improvement in the operations it undertakes. Satisfied employees may create a dynamic environment to achieve the required results. When employees are free with each other, it becomes easy for them to communicate about the issues that they face in their professional environments. The situation creates the possibility of employees ensuring that they can develop transparent communication among them. They are also able to develop strong relationships.

It is through the above that it becomes possible for an organization such as Channing Communications to advertise quality products and services, and create a possibility for future growth (Kim & Holzer, 2016). It brings together different employees from a diverse range of departments to work collaboratively to achieve organizational mission. This creates a positive impact on the human resource department in terms of decision making regarding recruitment, training, and retention of employees. Also, not every organization may afford a modernized performance appraisal system. It may become expensive for employees to use it despite it being beneficial in improving the performance of employees and processes.

Conclusion

To conclude, the use of Channing Communications to represent other organization creates in-depth comprehension of the design and implementation of a performance appraisal system. It has been found that a performance appraisal system comprises factors that are positive in creating possibilities for employees’ performance. It is an engine towards creating improvement of the operations of organizations despite it being expensive in the market. Organizations that create relevant appraisal structures for their operations tend to perform well in the market. They ensure positive communications and strong relationships between employees and their senior managers. Therefore, an organization may not survive the challenges of the market without having to create a specific appraisal system that focuses on the needs and interests of employees, among other stakeholders.

References

Beh, L., & Loo, L. (2013). Human resource management best practices and firm performance: A universalistic perspective approach. Serbian Journal of Management, 8(2),, 155-167.

Bouskila-Yan, O., & Kluger, A. (2011). Strength-based performance appraisal and goal setting. Human Resources Management Review, 2,, 137–147. doi:10.1016/j.hrmr.2010.09.001

Carlos Pinho, J., Paula Rodrigues, A., & Dibb, S. (2014). The role of corporate culture, market orientation and organisational commitment in organisational performance: the case of non-profit organisations. Journal of Management Development, 33(4), 374-379.

Constandachde, N., & CHIRU, G. (2015). Balanced scorecard: Organizational performance management instrument. Euroeconomica, 34(2),, 97-112.

Dusterhoff, C., Cunningham, J., & MacGregor, J. (2014). The effects of performance rating, leader–member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of business ethics, 119(2),, 265-273.

Kim, T., & Holzer, M. (2016). Public employees and performance appraisal: A study of antecedents to employees’ perception of the process. Review of Public Personnel Administration, 36(1), 31-56.

Rusu, G., Avasilcăi, S., & Huţu, C. (2016). Organizational context factors influencing employee performance appraisal: a research framework. Procedia-Social and Behavioral Sciences, 221, 57-65.

So, J., Achar, C., Han, D., Agrawal, N., Duhachek, A., & Maheswaran, D. (2015). The psychology of appraisal: Specific emotions and decision‐making. Journal of Consumer Psychology, 25(3), 359-371.