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Human Resource Specialist

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Submitted By thereseabennett
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Human Resource Specialist
MGMT 335
Unit 3 Assignment – Part 1

Abstract
This paper will design and conduct performance appraisals for different employees. It will identify different types if techniques and the techniques are subjective. The Fortune 500 companies use these performance appraisals.

Human Resource Specialist Critical to an organization the yearly performance review ensures the mutual needs of the employee and organization are being met. The first step is to have a legal performance review process; the second step is to design a standard form for the appraisal. The first performance review should be scheduled for 6 months are the employees begins and every year after; the performance review should be no surprise to the employees because a meeting was held to initiate the process. The fifth step is to allow the employee to suggest feedback about their job description; the sixth step is to document the input of the appraiser with job descriptions and performance goals. The seventh step is to hold a performance appraisal meeting to exchange feedback; the eighth step is to update and finalize the form. One thing the appraiser has to keep in mind is that any issues should be dealt with right away and should not wait until the meeting (Guidelines to Conduct Employee, 2012). Fortune magazine complies a list annually of the top 500 U.S. corporations in the Fortune 500. These companies are ranked by their gross revenues with the first list published in 1955. This list includes public and private companies with public available revenue data. Many Fortune 500 companies use a performance and talent management software firm launched by Lars Dalgaard in 2001 called Success Factors. Dalgaard had a vision of employees who were inclined to stay with a company with online tools that tracked business goals and measured performance. Performance reviews at Aetna, an insurance company, was in shambles. The company uses it to pull up a secure online dashboard which allows them to rate employee skills and competency. The system allows the employees to know their career growth and allows the companies to know who their key players are and if they need incentive to stay. Hilton Hotels had eight executive positions in hotel divisions in which they were not sure who could fill them. They were sure that region managers had list of the key employees, but with no way for other region managers to find that list, they had a hard time promoting within the company. It also hindered employees’ careers since they could not move up in their particular region. Hilton began using Success Factors which determines the strengths and weaknesses of their employees which allows for movement across divisions (Myser, 2007). Success Factors measures strengths and weaknesses of employees within a company through performance appraisals and internal reviews from managers and employees. It tracks business goals and measures performance, this system allows companies to know who their key players are, which allows the company to give them incentives to stay. Loosing key players means the competition has your key personnel and a competitive edge. I believe this is a subjective measurement because the manager goes online to rate them, the employee rates themselves, and then at a one-on-one meeting the manager and employee finalize the rating. General Electric uses a cutthroat ranking system which ranks employees according to their talent and potential. Number 1 through 5 the performance is broken down into these five categories: ones for the top 10%, twos for the next top 15%, threes for the middle 50, fours for the cautious 15%, and fives are the 10% which GE will get rid of. Ford, Microsoft, and Intel Corp. use this same type of cutthroat plan. It is not uncommon in the Fortune 500 companies because they all want to try to be the best; to be the best, you must have the best people (Grote, 2012). This system measures talent and performance. Keeping the two in mind the companies can use incentives to keep the top 10% and replace the low 10%. This keeps the company with better employees. I believe this is a subjective measurement because they are measuring talent and performance, not personal opinion on the employees. Performance appraisals take time, the managers must know the job description of all their employees and pretty much grade them for their talents and potential. Managers who take the time are left with better performing employees and happier employees. Employees who are properly evaluated and receive a good review can be rewarded with a pay raise. Employees who are properly evaluated and receive a bad review can have the pay stay the same or be fired. Performance reviews are critical to companies because employees who do not do their job properly are not very productive. When productivity slows the profits for the company also slow; a company goal is to turn a profit every year, any company not turning a profit is going into debt which could cause them to close. No company wants to loose profit because debt piles up fast and businesses are closing left and right in this economy.

References
Grote, D. (n.d.) Secrets of Performance Appraisal: Lessons From the Best. Retrieved 9 September 2012 from Grote Consulting: http://www.groteconsulting.com/resources/ articles/Secrets-of-Performance-Appraisal.asp.
Guidelines to Conduct Employee Performance Appraisals. Retrieved 9 September 2012 from Free Management Library: http://managementhelp.org/employeeperformance/ performance-appraisals.htm.
Myser, M. (6 July 2007). Big Boss is Watching. Retrieved 9 September 2012 from CNN Money: http://money.cnn.com/magazines/business2/business2_archive/2007/07/01/100117053/index.htm.

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