...Performance appraisal systems and their impact on employee compensation. Daniel Schroder MBA 533 Human Resources Saint Leo University Professor Michael J. McCabe J. D. In any organization, employee compensation and benefits are a sizable percentage of the cost associated with running a business. Although most employees would consider themselves under paid, most companies would consider their employees as being fairly or even over compensated. The determination of employee compensation and benefits is often based on factors such a seniority, dependability, and quality and quantity of the work performed. The decision of which employees will receive higher compensation, and how much the increase will be is often determined by many factors. The overall profitability of the business, the individual productivity of the employee or department, a across the board cost of living increase, and often the factors are nothing more than the suggestions of a manager or the owner of the business. In many small businesses these simple systems for compensation determination may be fine, and individual needs of the employee may be just as big a determining factor as any other reason related to performance. In larger businesses it is important to design, implement, and maintain a performance appraisal system, as well as a system that compensates its employees based on the outcomes of the appraisal system. A well designed employee appraisal system should include an evaluation by the...
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...Consulting Paper: An Effective Appraisal System Jessica Kaplaner Introduction There are several performance rating methods used by the official rater when evaluating employees’ performance. Some are more effective than others. Performance rating scales are one of the most effective scales to use when assessing an employee’s performance and are constantly being used to determine employees’ job performance (Cascio, 2013). They’ve been heavily relied on to thoroughly assess and precisely convey job performance specifically through behaviors. These systems are easy to understand by providing specific behavior statements related to employee behavior and the organization’s objective. Context In my current position, I am a full time Analyst with a collateral duty to work on the Cultural Transformation Initiative. This initiative began in 2011 and became a priority of the Secretary of my agency. The initiative is to ensure that all employees have the opportunity to meet their full potential by improving every area that affects employees’ reaching their full potential within the agency such as Human Resources, Civil Rights, Leadership, and Process Improvement. My job as well as other employees who have taken on this collateral duty is to report monthly progress to the Department, provide employees with all agency updates, but most importantly, I am to bring awareness to employees about this initiative and ensure that employees are impacted directly by...
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...The problems with performance appraisal Introduction Formal performance appraisals form an integral part of overall performance management programs in many organisations. Indeed, for many decades performance appraisals have been a key method for monitoring employee performance and they often play a major role in promotion or salary increments. However, though appraisals continue to be widely used, there is significant and ongoing debate about the validity of results obtained, as well as their effectiveness in positively influencing employee productivity and performance. This paper examines performance appraisals in the modern organisation. It discusses the development of performance appraisal theory, the perceived problems with performance appraisal systems as well as the potential performance and productivity improvements that may be achieved with their use. OK! Performance Appraisals It is widely contended that many (if not most) organisations conduct regular employee performance appraisals (Gliddon 2004; Varma & Pichler 2007). Thus, it is understandable that there is a very large body of literature around the subject (Schraeder & Simpson 2006). Indeed DeNisi and Pritchard (2006, p. 253) state that ‘performance appraisal has been the focus of considerable research for almost a century’. Yet there is surprisingly little consensus on any aspect of performance appraisals, not merely in terms of how they should be constructed or conducted, but even whether...
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...gauge the efficiency and effectiveness of the workforce? The answer is, through the implementation of a competent performance appraisal system. In light of the results of the recent employee survey conducted, there are both real and perceived issues that exist between HR and the management team. The lack of cohesion within the organization has resulted in low employee morale which affects performance and ultimately, profitability. The purpose of this presentation is to explain the merits of a good performance appraisal system, for both individuals and teams of the organization and to show how it will help to resolve the problems uncovered by the survey. Moreover, my intention is to describe the process for assessing team performance and the differentiating factors for executing an appraisal for an individual versus a team in an organization. Lastly, the board of directors asked for a report with regard to succession planning in the last board meeting. I want to describe the benefits of succession planning and propose a solution for the implementation of succession planning in our organization. Performance Appraisals Performance appraisals, when properly used, are an essential and invaluable tool in the managers arsenal to plan and control productivity. Managers should use appraisals for the proliferation and oversight of their subordinates. For example, appraisals can be used to determine promotions, commendations, and terminations, as well, they are permissible evidence Maximizing...
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...Performance Appraisal Paper By Carlos M. Maldonado Human Resource Principles and Practices in Health Care: 427/Healthcare Services Professor: Sarah Popowski April 29, 2011 Performance Management There are many ways in which to rate an employee’s performances in an organization. Performance appraisals are being used more and more in organizations throughout the world. Performance appraisals are periodic examinations of employee performance to ascertain how well the employee is performing relative to what is expected. (McConnell, 2007) One of the performance appraisals that are in use today is the essay approach which is currently in use by the University of California Davis to use on its staff employee’s. In this performance appraisal, the manager describes employee performance at whatever length they deem necessary. They then discuss the contents of the evaluation with the employee and they provide a copy for the employee’s personnel file. Performance appraisals, not matter which ones are used, are used to facilitate improvement in employee performance, provide formal, official feedback to employees concerning performance, provide information for decisions concerning compensation and other personnel transactions for example promotions and transfers to other departments or facilities (McConnell, 2007). Advantages and Disadvantages As with each different type of performance appraisal there are some advantages and disadvantages. Some of the advantages with the form...
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...Research Paper The role of performance appraisal system on the development of human resource of Komenda College of education Introduction In every administration, whether private or public, there exist laid down aims and objectives that are to be achieved within a specific period. Nevertheless, these cannot be possible if the organisation focuses only on its financial and physical resources. There is therefore the need to concentrate on the human resource as well. This is necessary because it is only the people who are employed in the institution that can put together both the financial and physical resources of the institution in order to achieve its aims and objectives. With this in mind, each institution has to take the planning of its human resource as one of the most important issue. Pinnington and Edwards (2000) have defined “human resource planning as “the systematic and continuing process of analysing an organisation’s human resource needs under changing conditions and developing personnel policies appropriate to the long-term effectiveness of the organisation”(pp. 22). Cascio (1996) indicated that this can be done quarterly, bi-annually or annually and through some interrelated activities stated by Cascio (1996) and which include the following: i. Personnel inventory which is done to assess the current human resource base and how they are currently being used. ii. Human...
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...Project TitleA Study on Performance Appraisal System at WiproObjectivesHRM aim at constantly the competency requirements of different individual to perform the job assigned to them, effectively and provides opportunities for developing these competencies. As HRM deals with humans it is necessary to keep a check on their performance after regular interval of time given jobs, it is necessary to corrective actions term or there is need to appraisal their performance. The process of appraising for doing their work effectively is known as performance appraisal system. PRIMARY OBJECTIVE: To identify the actual performance of the employees and performance standards used in performance appraisal program (opinion, satisfaction, benefit, outcome, etc.)....
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...A Proposal to Study the Performance Appraisal System of 2GO Group Inc. RSH 630 Emilyn L. Protacio, MBA Polytechnic University of the Philippines M. H. Del Pilar Campus, Sta. Mesa, Manila ABSTRACT 2GO Group Inc. is a shipping and supply chain company driven by the vision of providing the nation with the best shipping services. This company is using the Performance Appraisal System to review the performance of the people in the organization within prescribed procedures and timetable. Performance Appraisal has been considered as the most significant and an indispensable tool for an organization, the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increases. Performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation. This research will concentrate on examining the effect of the performance appraisal on an individual as well as on the organizations. The sample size of 50 (employees) shall be chose within the organization. The data to use for the study shall be collected through the help of questionnaire and will be evaluated with the help of statistical tools. The research findings will show a noticeable effect of the performance appraisal on the organization as well as on the Individual. STATEMENT OF THE PROBLEM All organization faces the problem...
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...The Performance Appraisal Process: Three Key Aspects and Company Examples Terry Student MGT/431 February 1, 2010 (BOLDING – red print done to highlight APA issues) The Performance Appraisal Process: Three Key Aspects and Company Examples In most organizations, periodic performance appraisals are a formal method of evaluating employee work and determining merit increases. Noe, Hollenbeck, Gerhart and Wright (2003) suggest there are three key aspects of the performance appraisal process: (1) establishing mutual goals and objectives, (2) using a valid and objective measurement method, and (3) linking employee performance to compensation. This case study will define the performance appraisal process, these three aspects of performance appraisals, discuss their importance, and illustrate their general impact upon the organization. Finally, specific company examples will be offered to demonstrate how these appraisal steps are practiced at Hewlett-Packard, New York Life Insurance, and IBM. Establishing Mutual Goals and Objectives at Hewlett-Packard According to Noe et al. (2003), many companies establish goals and objectives as a means of communicating desired employee performance targets. The authors suggest that company interests can only be achieved when those interests are aligned with the skills and energies of the individual employee. A process of negotiation and compromise must occur between management and the employee in order to define specific standards...
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...A RESEARCH PAPER On HUMAN RESOURCE PRACTICE IN DEPZ Prepared for: Ms. Rubina Easmin Research paper Supervisor Assistant lecturer Faculty of business administration Prepared by: Md Abu Yusuf chy ID-120204047 MBA (1) Human Resource Management Date of Submission: 30/08/2013 Faculty of Business Administration BGC Trust University Bangladesh EXECUTIVE SUMMARY To meet the requirement of the course outline as well as to comprehend the application of the theoretical knowledge in the practical fields, the research report on HUMAN RESOURCR PRACTICE in DEPZ has been conducted. The main focus of the study is Hrm Practices And Firm Performance Recruitment And Selection Performance Appraisal ,Unionisation ,Training And Development ,Compensation ,Hrm Practices to analyze the, to identify the strengths and weaknesses of existing Recruitment and selection Process and suggest some measures for bringing effectiveness in Recruitment and Selection Process. I prepared an overview of “Foreign Direct Investment in Bangladesh” based on secondary data and information. For this specific purpose I collected data and information from various sources like published materials such as the Bangladesh Economic Review, Different articles of Board of Investment (BOI) and Bangladesh Export Processing Zone (BEPZA), Daily Statement of Affairs of different Internet based publication and other books on Foreign Direct Investment in Bangladesh and articles related to...
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...Analysis of an Appraisal System Submitted to Professor Kaushik Choudhury By Aravind Mahendran, Mansi Makhijani, Nakul Paruthi, Nikhil Abhishek Mishra, Shishir Kumar 3.04.2015 Gautam Budh Nagar, U.P., 201314 ABSTRACT Appraisal is a continuous yearly exercise done by the HRD department of any organisation to evaluate the performance of the employees. It is a very important tool which can motivate employees to perform better and gain respect in an organisation. This project tries to find out the effectiveness of an appraisal system in today’s corporate culture and also tries to find out the loopholes in it which causes its failure. INTRODUCTION When a company makes any investment it evaluates...
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...Aspects of Performance Management Ben France The importance of understanding the legal issues involved in performance management and the performance appraisal process have grown in the past few years as a result of the globalization of the world’s economy, and as a result of companies and organizations trying to become more productive at a lower cost. Most cases over the last few years have focused on the performance management process, and its ability to withstand legal scrutiny. Organization’s performance management systems are viewed as a test by the court system, and as they are used to make staffing decisions, merit decisions, and separation decisions, the systems themselves must be designed to minimize the chances of discrimination. In the present paper, the elements of the performance management system are examined as a foundation to help recognize the aspects of the process that are subject to litigations, and to help reduce problems that could result in legal disputes. In the Manager’s Guide to HR (Muller, 2009), the legal issues involved in the performance management process can be minimized by the proper planning, design, understanding, and actions involved in a well-designed process. “Proper preparation and structuring of a performance evaluation can transform it from a confrontation into a worthwhile collaboration between you, the employer, and the employee.” (Muller, 2009) The starting point of a legally sound performance management system begins with...
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...Do you think performance appraisal should be done? Is it worth the cost? Discuss. Introduction: Performance Appraisal is the process whereby the HR Department procures analyzes and document facts about the performances of the employees of the organization. These processes are usually done annually. As described by Margaret Francis "Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development. In short, performance and job appraisals are vital for managing the performance of people and organizations." ls are important for staff motivation, attitude and behavior development, communicating organizational aims and fostering positive relationships between management and staff. Definition: Performance appraisal being one of the developmental activities under the HR functions is in organizations defined by Amstrong 2006 as the as the formal assessment and rating of individuals by management at usually an annual meeting. Gomez et al 2007 also defines it as the identification, measurement and management of human performance in organisations. Cost Determining the Different Kinds of Costs involved in appraisal performance When talking about the cost of something like performance appraisals, to get an accurate sense of value/cost, one needs to understand a few things. First, there are actual out of pocket costs. Those are costs that somebody actually has to pay in real money. For example, if a...
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...Armstrong and Baron (1998) performance management is a strategic and integrated approach of delivering sustained successes to the company by improving individual and group performances and also developing the capabilities of teams and individuals. Currently at work performance management appraisal (PMA) is carried out on a quarterly basis and is a conversation carried out by a line manager and an employee, it is aimed at improving the effectiveness and capability of an employee through development. It is aimed at personnel who want to achieve excellence in their respective fields and want to acquire more skills and knowledge, which will assist in the achievement of personal and professional development goals. Performance management serves as an important tool for realizing organisational goals by implementing competitive HRM strategies. It helps in aligning and integrating the objectives of the company with the key performance indicators (KPI’s) in an organisation across all job categories and levels. This helps in driving all the employees right from the bottom level towards one single goal. Performance management is an important driver in most companies today and is regarded as the tool to use to ensure that the people working for them will deliver the agreed contract and objectives which were set mutually. This study will reveal the importance of a well managed, performance management system by conducting a critical analysis of the performance management system used and what benefits...
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...Zappos Case Study Introduction Zappos is a successful company with a unique corporate culture and impressively low turnover rate. This case study explores the human resources strategy employed by the company, focusing first upon the significance of the environment upon human resources. The paper then identifies how the Zappos strategy fits within the human resource management model. The final section discusses the core strengths and weaknesses of the Zappos HR strategy. While the Zappos human resource practices are characterized by many strengths, they could be improved by enhancing the accountability of managers responsible for conducting performance appraisals and inviting a greater degree of employee feedback into the appraisal system. Both of these relatively small opportunities for change are consistent with the company's overall company culture. Environment and HR The external environment plays an important role in determining the direction of a company's human resources strategy. "An organization's strategy must be appropriate for its resources, environment circumstances, and core objectives. The process involves matching the company's strategic advantage to the business environment."[1] Companies develop networks with external entities, such as customers, suppliers and investors, which must be cultivated to ensure longevity.[2] Human resources must ultimately support the business with practices that will enable it to interact and compete within the surrounding competitive...
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