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    Performance Appraisal

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    Deliverable Length: 2 pages and 5 PowerPoint slides

    StopNShopNow, Inc.'s management team has implemented several of your ideas on incentive pay and is now reviewing the company's performance appraisal forms. These appraisal forms are very old: No one remembers where the forms came from or who made them. When the annual performance appraisal window comes up each store year, managers and assistant managers cringe. This reaction does not occur because the managers hate doing performance appraisals?they simply have not seen very much positive impact from the appraisal discussions, and at least one employee always reacts badly and has a downturn in performance as a result of the criticism. The managers feel that being honest with some employees is a huge risk, and they are not sure the process is worth the trouble.

    The current performance form includes these performance assessment categories:

    procedural knowledge and skill
    verbal communication skills
    consistently good judgment
    customer service skills
    The performance appraisal is an eight-page form with a copy of the employee's job description attached and six large blocks for the manager to write down his or her comments on each of the six categories. Managers differentiate between poor- and well-performing employees by using words such as "great," "OK," "always," or "rarely." An employee can usually infer the manager's overall perception of his or her performance from the way the appraisal is phrased.

    The performance appraisals are primarily used for manager and employee feedback. After they are completed and received at corporate headquarters, employees receive a 3% pay increase?unless they are about to get fired, which they may receive a lower pay increase percentage or no increase at all. This creates tension among the employees.

    Managers are not given guidance regarding how to describe the employees' positive behaviors and areas needed for improvement. Some managers take this much more seriously than others and are better at choosing factual scenarios to explain their perceptions of the employee's work performance. Several times in the past, the company's vice president of human resources has had to chastise managers regarding the quality of comments the manager included on the form.

    Prepare a presentation that you, as an HR generalist, will give to the vice president of human resources and the company's owners recommending changes to the current performance appraisal program at StopNShopNow, Inc. Include at least five PowerPoint slides.

    Address several different types of performance appraisal systems and make other comments or suggestions that address the applicability of the performance assessment categories that are currently used. Address each of the six performance assessment categories above and make recommendations for changing any or all of them. It may be beneficial to appraise the information from the job summaries you found in earlier assignments.

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    Solution Preview

    There are several changes that are recommended. At the inception, it is important to have performance assessment categories that can be expressed in quantitative form. For instance, procedural knowledge and skill can be changed to number of new procedures mastered, verbal communication skills should be the average number of customer problems solved in a day and creativity can be changed to the number of new ideas accepted by the management during the course of the year. Attendance is and objective and quantifiable performance assessment category, however it is usually dealt with directly by the HR in accordance with the company policy. The absence of a worker is first adjusted against his casual leave and then in accordance with the policy of the company, salary is deducted. So, attendance is also not a ...

    Solution Summary

    This answer provides you an excellent discussion on Performance Appraisal