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ENG315 Performance Appraisal Method

This paper discusses different performance appraisal methods used in organizations to assess employee performance and make informed management decisions.

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    Running head: ENG 315 ASSIGNMENT 2.3 1 Performance Appraisal Method Name Institution Course Date Performance Appraisal Method Table of content Executive summary.........................................................................................................3 Introduction................................................................................................................. .....3 Problem statement............................................................................................................ 3 Summary of report...........................................................................................................3 Main body.................................................................................................................... ......4 Description of possible solution........................................................................................4 MBO.......................................................................................................................... .........4 Behavioural checklist........................................................................................................ .4 Criteria for assessment of alternatives.............................................................................4 Research method.............................................................................................................. ..6 Recommendation............................................................................................................... .7 References................................................................................................................... ........8 Executive summary This report aims to identify the issues of sales decline in organization. It is identified that leaving of experienced sales people of organization has resulted in the decline of sales.

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    The proposed methods are MBO and behavioural checklist. With questionnaire and observation methods, it is revealed that employees need a good leadership and participative management with improvement in constructive feedback by managers. So the MBO method of performance appraisal is suggested to bring the desired results in the organization. Introduction Problem statement The organization is a large manufacturer of the fast moving consumer goods and company is having a pan world network of sales partner. The problem company faces is the continuous decline of sales in a particular region. Root cause that is identified for the sales decline is the attrition of old and experienced employees. This problems becomes more severe due to no distribution network of company and company relies on only front line sales. There is a strong supply chain for the direct delivery of the product but it is weakened due to high turnover rate of old and experienced employees of the company. The company also does not advertise products and brand building efforts lies on only front line sales force. Experienced sales people are less than 75 percent in the sales force and in the last 10 years, company has experienced lowest sales. There is a need for the management intervention to address this problem. The summary of the report This report has identified root cause for declining the sales and that is attrition of sales force. There are various alternatives considered for addressing this problem. One is the assessment of the performance appraisal of the sales executive and creation of a perfect appraisal system. There two alternatives considered. One is the implementation of the holistic human resource policy and second is the implementation of a lucrative incentive scheme. There are many criteria considered such as acceptance amon g employee, cost of implementation, speed of implementation, flexibility, and return on investment. The research methodology has been developed that has a structured questionnaire. This questionnaire is answered by those employees who have left the company not earlier than one year before . It is revealed that a transparent performance appraisal system is needed to retain the sales executive in the organization. This report will cover the performance appraisal alternatives evaluation and implementation of o ne alternative. This report also covers the criteria to select

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    the best alternative. This report limitation is that it does not use any mathematical model for performance evaluation system. Main body Description of possible solution MBO Management by objective is the modern method that can be used to improve the sale of organization. This technique was used by the management theorists Peter Drucker in 1950. MBO is based on this philosophy that the manager and employee should agree upon the obtainable objectives. As there is performance decline by the existing work force this performance appraisal system can help them to understand what they need to improve performance. This method is result oriented and proactive and encourages participation at all levels in organization (Kreitner, 2008) . Generally the issue is not related here with front line sales force but also this issue must be dealt at top and middle level as well to improve their performance. This process considers of forming a clear and concise statement for the sales force and also takes in to account the development of the realistic actions plan by getting feedback. It also ensured that systematic monitoring must be done and measurement of performance and achievement must take place ( Shukla, 2009) . It helps to take corrective actions for achieving desired objectives. This process facilitates employees’ decision making in setting the sales goals and in turn achieving the organizational objectives. The basic principle of unity of management action, result to be obtained at a defined time scale, participation and accountability for setting the goals and achieving them, and linking the progress effort to individual can help organization to address the retention issue and decline in sale. Behavioural checklist Another alternative that can be considered for the sales force performance improvement is the behavioural checklist (Elan, 2014) . This method is considered useful because the employee performance is assessed without comparison and it also considers the difference in behaviour to the type of jobs been assessed. Criteria for assessment of alternatives 1. Behaviour

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    The behaviour of sales people must be determined to assess the performance. As the front line sales people appearance is associated with their behavioural attitude to increase sales it is imperative to use this criterion to assess the effectiveness of two alternatives proposed. Motivational and morale factors of the sales force are important to retain them and this criterion can help organization to take corrective actions for achieving desi red objectives of organization. The behavioural aspects of the sales force demands then to be pleasant and friendly before the customers and if they do not inculcate these values , they cannot sell the products so it is mandatory to analyze the behaviour and behaviour factor can be taken in to consideration to assess the effectiveness of two alternatives. 2. Knowledge development The knowledge and information is very much important for sales force to take timely actions and predict trends and changes in market place. The two alternatives will be assessed on this criterion to understand that which alternative will be more effective in knowledge creation and skills development. As today contemporary organizations are focussing more on knowledge management because knowledge is a invaluable asset to keep them ahead of competitors and knowledge of sales force regarding the competitors products, trends in buying behaviour of customers and their preferences, economy and other factors are very much important, this criterion must be assessed to understand the effectiveness of t wo proposed alternatives. 3. Team work Today organizations are becoming more flat and l ean in structure and they are promoting the team work features by delegation of power and participative management, it will be assessed that which of two alternative can help to improve team wo rk skills for the organization. 4. Communication Communication is a very vital aspect for the organization to achieve success. Communication in the areas of job assignment and description of role and responsibility is very important because employees can understand clearly the expectation of management and they can also share their feelings and perceptions to management. It should be ascertained that which performance appraisal system should make the communication reciprocal and pervasive at all levels of organization. For this purpose, the communication criteria must be assessed. 5. Timely and prompt rectification for errors

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    This is also very much important to understand the flaws of the performance appraisal system. As the existing appraisal system of organization is not able to locate the grievances of employees and could not prevent the high turnov er rate of experience employees, it becomes mandatory that the proposed performance evaluation system can address this issue effectively and can take corrective action on timely basis to retain the best employees in the organization. Research methodology The research methodology to understand the best alternative for performance appraisal system has determined to use questionnaire methods and observation methods of employees. The questionnaire methods has used the open ended questions and structured set of questionnaire to gain the deep insights about the attitudes and perceptions of employees for performance appraisals. The questions of questionnaire are described below Q1. Whether you need a constructive feedback and did you receive constructive feedback from your managers? Answer: Yes, constructive feedback is essential for personal and professional growth. It provides employees with insights into their strengths and areas for improvement, allowing them to refine their skills and enhance their performance. Receiving constructive feedback helps employees understand how their contributions align with company goals and how they can contribute more effectively. If the question refers to whether employees receive constructive feedback from their managers, this may vary based on the organizational culture and the manager's approach. In some cases, employees may receive detailed, actionable feedback that helps them improve, while in other cases, feedback may be vague or infrequent. It’s crucial for organizations to foster an environment where constructive feedback is a regular and integral part of the performance appraisal process. This feedback should be specific, timely, and focused on development, enabling employees to understand how they can enhance their performance moving forward.

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