Professional Documents
Culture Documents
Introduction
With the development of the Red Square Industries, a matter of human resources has
appeared recently. A forced ranking distribution (listed in table 1) is used by Red Square
Industries to assess employees, whose salary increases are based on their "title".
Employees, however, quickly learn these different levels and what level others stand
although the industry does mean to be confidential. The situation is becoming
increasingly terrible because even the managers think it is difficult to continue to
manage the company. As time goes by, the performance appraisal program has become
regarded more as an HR exercise.
As a role of a HR professional, here comes out some analysis about the current issues
and give out some recommondations according to some academic materials.
It is indeed a good choice to distribut the employees into different levels according to
their own knowledge, experience and ability, because it is far easier for the managers to
manage the company and arrange the suitable workforce to different positions under
this situation. However, a forced ranking distribution will affect the later work
arrangement and performance because employee's performance may change after going
on their own duties and jobs. Some people who rated 1 (regarded as the superior
performancers) will try to slack off their jobs even though they are really with a store of
knowledge and rich experience; some people who rated 4 and 5 (regarded as
unsatisfactory performancers) will not have enough opportunities to perform well
because the so called rated 1 or 2 employees who are regarded as hotshots and will be
asked to solve significant problems. The five different "titles" are listed in table1 below:
Table1: the five-level performance appraisal system
Level
Bonus
Salary increase
Legally required increases
"titles"
1
Superiro performers
(Top 10%)
-
-
Stars
2
Good performers
(The next 25%)
-
-
Starlets
3
Acceptable performers
(The next 45%)
-
Workhorses
4
Marginal performers
(The next 15%)
-
dogs
5
Unsatisfactory performers
(The bottom 5%)
-
Problems caused by this appraisal system
First, non-cooperative attitude will arise in "level-1 group". People in level-1 group,
called "stars", may consider that one or some other star employees are incapable to
stand in their goroup, they may refuse to communicate and cooperate. So they may fail
to finish assignment and even strike, which results in an irreversible disaster to the
industries. The industries can not take the losses when the people regarded as the top
staff of the company can not do the job effectively.
Second, employees rated 3 will loss their motivation when they learn that they are only
average. What is more? At this time, employees rated 2 will try to quit the job because of
the industry's attitude----let the hotshots solve the problems. Those graded as "dogs",
therefore, become the major workforce of this industry. Employees who are rated 5 who
belong to a union are favourite by managers, inspite that the company denies, even the
people in this group are non-performing. This becomes a vicious circle and the
managers are reluctant to them.
Third, there also exists a major problem in the distinction of employees rated 3 and 4.
Although clarified in the appraisal record, the boundary is not easy to mark. Some
people rated 4 because they are new but they have good learning ability, but some
people rated 3 because they have been trained but are still not capable for the job. So the
coompany will loss many forces in these two groups.
possible that the law will cover every possible case in the industry, but it does not mean
that the managers can do what they want. What the employers can do is to learn the
rules of law and follow them even the employment law is changing occasionally.
Thirdly, who has right to decide whether to hire or lay off a staff? The manager or the
HR? As Purcell et al (2003) claimed, "There is a need for HR policies to be designed for
and focused on front line managers", on the other words, the HR should have more
responsibility for implementing the policy, while the managers have priority and finally
decide about people. But the performance appraisal program will creat too much ill and
unfair over time, the HR department now should try to set up a new and complete
system to solve this problem. If the employees and employers can not cooperate well, it
is not easy to find suitable person to do the particular job.
make sure that this people can do well in this position, or at least, after training, because
the employers need a valid reason for dismissal to demonstrate substantive. With the
comparatively improvement of legislation and standard system on the employment, and
a scepticism about the morality of leaders of industry, they may get caught in trouble
even have a contract.
In this case, the company gives the employees who are rated 4 and 5 only legally
required increases. On the other words, employment laws at least protest the right for
these people, but once these people are hired, it is hard to fire them even they are not
capatable to finish the task of this position. But there are some reasons for an
organization to summary dismissal, such as serious misconduct, physical abuse, bribery
and incompetence. Why would the company still hire them? It is possible that they
ignore some important details during employment which are listed following.
the generalization that respondent will try to guess the answers and result in distortion
of the profiling.
In this case, if the managers or the HR managers can distribute the employees into
appropriate positons, a number of matters can be deterred in the following hiring. If the
assessment system can be ideal and most people can also their own interests as well
through this system, the managers will also allocate them into suitable fields. But this is
not the only significant thing the industries should do; also important is to redesign an
effective performance appraisal system to follow when the human resources
management is facing problems. (George Bohlander & Scott Snell, 2010).
According to (Dick Grote 1996), the cycle is consisted by a five-phase process, which
start with the company has set up its strategies and general instructions. The five phases
are listed below:
Performance Planning
At this stage, the appraiser and appraisee should reach an agreement on the
responsibility of the subordinate's task, some specific objectives, standards of
subordiantes' achievement, performance factors and the development plan the
employee should complete.
Performance Execution
After reaching an agreement in phase 1, the supervisor should consider the feedback and
fix the obsolescent plans as long as they meet a mature agreement. Only in this way can
the plan be completed well.
Performance Assessment
After finishing some plans, these two groups need assess the accomplishments of plans,
and decide what degree they achieve independently. Not only the subordinate should
submit the self-appraisal to the supervisor, but they can also read others'.
Performance Review
When reviewing others' appraisal, they should focus on some elements, such as final
achievement, action effectiveness, general behaviour evaluation and developing
progress and so on. As metioned previous, people should exchange the self-appraisal in
addition submit to supervisor.
Performance Renewal and Recontracting
As time goes by, some outdate rules are not appropriate any more. Industries should
update and make sure that they will fit to the changing environment. This phase comes
back to phase 1 and complete an ideal circle.
employees to the compensation or salary increase, they should try to update job analysis
date to identify employee specifications. (David Walsh, 2007),
The job advertisment should describe cleary what kind of person they need; the job
description should include but not limite to: job title, qualifications, required
experience, and the person the occupant reports to etc. The organization can get the
person with appropriate quality when they describe the details clearly to the public.
Conclusion
A good performance appraisal system is a very important element and process in the
whole development of industry. Red Square Industries is facing a common problem that
many other industries, especially those trying to expand its size. The industries should
use academic and professional methods to solve these problems; also important is that
the employees and employers should cooperate when they are applying these methods.