Analyzing the situation
Annual employee surveys are handy for the management in evaluating the organizational environment, needs of the employees, employee-employer relationship, employees expectations, performance and other factors affecting the performance of the employees. As performance appraisal is a process of evaluating or comparing the performance of an employee with the set of standards and then giving feedback to employee about it, this issue is one of the most important for employees. It is commonly used for administrating wages and salaries, providing performance feedback, and identifying the strengths and weaknesses of an individual employee.
According to studies it has been observed that effective use of performance appraisals are directly linked with the motivation and satisfaction of the employee, and thus leading towards the performance. As shown in the annual employee survey, employees have their concerns about the use of performance appraisal (Daft, 2001). If not handled effectively this issue might lead employees towards dissatisfaction or towards tense relationship between employees and employer, which is never a good sign for a company. Company should take measure in order to deal with this situation and the Human Resource department should come up with a creative and best solution in order to motivate employees and on the other hand resolving the issue.
As the issue comes under the direct responsibility of Human Resource Management, the department should consider following recommendations to handle the issue effectively.
Ø Form a team including HR manager and representative from all the departments.
Ø The team should have the representative from all the departments and from all the hierarchical level.
Ø Team should look at the current performance appraisals and should identify the issues in it.
Ø Each member must provide solutions and they should come up with a mutual solution.
Ø The team would be responsible for analyzing the problems and the ways in which they can be solved, and coming up with the best-fit solution on which employees and the organization, both agrees (Amabile & Khaire, Oct 2008).
Ø The representatives should be selected by the department it self.
Ø After the completion of the objectives of the team, departments should be re-organized as a team and they should follow the four steps of teams mentioned below. This will lead the department to coordinate effectively and to avoid many other factors, which create hurdles in performance.
Ø If the company has flexible job description and has delegated control over the job to their employees, then the best method used for performance appraisal would be Management by Objectives (MBO) (Robbins & Judge, 2004).
Developing a Team
Developing a team is not an easy task, as the failure to form an effective team can cause loss of time, money, efforts and the opportunity cost (Amabile & Khaire, Oct 2008). Four (Forming – Storming – Norming – Performing) widely known steps are used to form an effective team. These phases are necessary and inevitable for a team to progress, face challenges, tackle different issues, planning things, and finding solutions and in delivering the results. But before actual team is formed and starts working following things should be decided by the Human Resource Department.
Ø Purpose of creation of team (issues identified in annual employee survey)
Ø Mission and objectives of the team (improvement in performance appraisal)
Ø Who will be in team (HR Manager and representatives from all departments)
Ø How long the team will work (can be for 1 or 2 months)
Ø What are the expected results from the team (improved performance appraisal and motivated employees)
After answering the above-mentioned questions four phases of team development can be implemented. Following are the four phases of team development:
It’s the first step of team building, where the making or forming of a team takes place. It is a stage where team members get to know each other and they are informed about the purpose and objectives of the team. In this situation the purpose is defined as the improvement in the performance appraisal system (Robbins & Judge, 2004).
It’s a brain storming stage of team development as ,members provide ideas and suggestion for the problem or problems and then these are evaluated. It’s a very critical stage and the facilitator or the team leaders should direct the stage towards the point and avoid deviating from the purpose (Robbins & Judge, 2004).
Members develop work habits that make teamwork fluid and natural. Members agree on rules, values, methods and even taboos (Robbins & Judge, 2004). The role-playing is also defined in this stage and the team members get ready for performance.
In this stage team will work as a unit and will perform the action for which it was formed (Robbins & Judge, 2004). The conclusions are drawn in this stage as the actual action takes place in this stage (Daft, 2001).
Group performance factors
Many factors can affect the performance of the group, because different people from different department, different levels, different personality, and different cultures are present in the teams. These factors can create conflicts in among the team members or will restrict some of the junior teams members to disagree from their seniors. For avoiding such problems, the Human Resource Manager or the leader of the team should play an effective role in norming the team and avoiding such conflicts. Management can take following steps to avoid such things:
Ø Taking people from same level but different department.
Ø If taking people from different level is necessary, make more than one team.
Ø Taking suggestion in written or privately if required.
Ø Ratio of employees from different level should be close, so that every member feel comfortable. (Robbins & Judge, 2004)
Currently Performance appraisal is not used effectively in the organization, which is why employees have shown their concern about it in annual survey. It is currently used in traditional way which is its Administrative role, where as it should be used in Development role as shown in the figure below.
(Robbins & Judge, 2004)
Using it in development role will not only provide motivation to the employees, but will also help the Human Resource in developing their Human assets and then using them effectively.
1. Amabile, T. M., & Khaire, M. (Oct 2008). Creativity and the Role of the Leader. Harvard Business Review , 101-109.
2. Daft, R. (2001). Organization Theory and Design, 9th ed. Chicago: South-Western.
3. Robbins, S. P., & Judge, T. A. (2004). Organizational Behavior. New York: Pearsons.