ENG315 Performance Appraisal Method

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Running head: ENG 315 ASSIGNMENT 2.31Performance Appraisal MethodNameInstitutionCourseDatePerformance Appraisal MethodTable of contentExecutive summary.........................................................................................................3Introduction......................................................................................................................3Problem statement............................................................................................................3Summary of report...........................................................................................................3Main body..........................................................................................................................4Description of possible solution........................................................................................4MBO...................................................................................................................................4Behavioural checklist.........................................................................................................4Criteria for assessment of alternatives.............................................................................4Research method................................................................................................................6Recommendation................................................................................................................7References...........................................................................................................................8Executive summaryThis report aims to identify the issues of sales decline in organization. It is identifiedthat leaving of experienced sales people oforganization hasresulted in the decline of sales.

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TheproposedmethodsareMBOandbehaviouralchecklist.Withquestionnaireandobservation methods, it is revealed that employees need a good leadership and participativemanagement with improvement in constructive feedback by managers.So the MBO methodof performance appraisal is suggested to bring the desired results in the organization.IntroductionProblem statementThe organization is a large manufacturer of the fast moving consumer goods andcompany is having a pan world network of sales partner. The problem company faces is thecontinuous decline of sales in a particular region. Root cause that is identified for the salesdecline is the attrition of old and experienced employees. This problems becomes moreseveredue to no distribution network of company and companyrelies on only front linesales. There is a strong supply chain for the direct delivery of the product but it is weakeneddue to high turnover rate of old and experienced employees of the company. The companyalso 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 toaddress this problem.The summary of the reportThis report has identified root cause for declining the sales and that is attrition of salesforce. There are various alternatives considered for addressing this problem. One is theassessment of the performance appraisal of the sales executive and creation of a perfectappraisal system. There two alternatives considered. One is the implementation of the holistichuman resource policy and second is the implementation of a lucrative incentive scheme.Therearemanycriteriaconsideredsuchasacceptanceamongemployee,costofimplementation, speed of implementation, flexibility, and return on investment. The researchmethodology has been developed that has a structured questionnaire. This questionnaire isanswered by those employees who have left the company not earlier than one year before.Itis revealed that a transparent performance appraisal system is needed to retain the salesexecutive in the organization.This report will cover the performance appraisal alternativesevaluation and implementation of one alternative.This report also coversthecriteria to select

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the best alternative. This report limitation is that it does not use any mathematical model forperformance evaluation system.Main bodyDescription of possible solutionMBOManagement by objective is the modern method that can be used to improve the saleof 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 theobtainable objectives.As there is performance decline by the existing work force thisperformance appraisal system can help them to understand what they need to improveperformance.This method is result oriented and proactive and encourages participation at alllevels in organization(Kreitner, 2008). Generally the issue is not related here with front linesales force but also this issue must be dealt at top and middle level as well to improve theirperformance. This process considers of forming a clear and concise statement for the salesforce and also takes in to account the development of the realistic actions plan by gettingfeedback. It also ensured that systematic monitoring must be done and measurement ofperformance and achievement must take place( Shukla, 2009). It helps to take correctiveactions for achieving desired objectives. This process facilitatesemployees’decision makingin setting the sales goals and in turn achieving the organizational objectives. The basicprinciple of unity of management action, result to be obtained at a defined time scale,participation and accountability forsetting thegoals and achieving them, and linking theprogress effort to individualcan help organization to address the retention issue and declinein sale.Behavioural checklistAnotheralternativethatcanbeconsideredforthesalesforceperformanceimprovement is the behavioural checklist(Elan, 2014).This method is considered usefulbecause the employee performance is assessed without comparison and it also considers thedifference in behaviour to the type of jobs been assessed.Criteria for assessment of alternatives1.Behaviour

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The behaviour of sales people must be determined to assess the performance. As thefront line sales people appearance is associated with their behavioural attitude toincrease sales it is imperative to use this criterion to assess the effectiveness of twoalternatives proposed. Motivational and morale factors of the sales force are importantto retain them and this criterion can help organization to take corrective actions forachieving desired objectives of organization.The behavioural aspects of the salesforce demands then to be pleasant and friendly before the customers and if they do notinculcate these values,theycannot sell the products so it is mandatory to analyze thebehaviour and behaviour factor can be taken in to consideration to assess theeffectiveness of two alternatives.2.Knowledge developmentThe knowledge and information is very much important for sales force to take timelyactions and predict trends and changes in market place. The twoalternativeswill beassessed onthis criterionto understand that which alternative will be more effectivein knowledge creation and skills development. As today contemporary organizationsare focussing more on knowledge management because knowledge is a invaluableasset to keep them ahead of competitors and knowledge of sales force regarding thecompetitors products, trends in buying behaviour of customers and their preferences,economy and other factorsare very much important, this criterion must be assessed tounderstand the effectiveness of two proposed alternatives.3.Team workToday organizations are becoming more flat and lean in structureand they arepromotingtheteamworkfeaturesbydelegationofpowerandparticipativemanagement, it will be assessed that which of two alternative can help to improveteam work skills for the organization.4.CommunicationCommunication is a very vitalaspect for the organization toachieve success.Communicationintheareasofjobassignmentanddescriptionofroleandresponsibilityisveryimportantbecauseemployeescanunderstandclearlytheexpectation of management and they can also share their feelings and perceptions tomanagement. It should be ascertained that which performance appraisal systemshould 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 appraisalsystem. As the existing appraisal system of organization is not able to locate thegrievances of employees and could not prevent the high turnover rate of experienceemployees,it becomes mandatory that the proposed performance evaluation systemcan address this issue effectively and can take corrective action on timely basis toretain the best employees in the organization.Research methodologyThe research methodology to understand the best alternative for performance appraisalsystem has determined to use questionnaire methods and observation methods of employees.Thequestionnairemethodshasusedtheopenendedquestionsandstructuredsetofquestionnaire to gain the deep insights about the attitudes and perceptions of employees forperformance appraisals.The questions of questionnaire are described belowQ1. Whether you need a constructive feedback and did you receive constructive feedbackfrom your managers?Answer:Yes, constructive feedback is essential for personal and professional growth. It providesemployees with insights into their strengths and areas for improvement, allowing them torefine their skills and enhance their performance. Receiving constructive feedback helpsemployees understand how their contributions align with company goals and how they cancontribute more effectively.If the question referstowhetheremployeesreceive constructive feedback from theirmanagers, this may vary based on the organizational culture and the manager's approach. Insome 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 tofoster an environment where constructive feedback is a regular and integral part of theperformance appraisal process. This feedback should be specific, timely, and focused ondevelopment, enabling employees to understand how they can enhance their performancemoving forward.

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