The Appraisal System of a Company and Its Strengths and Weaknesses - Essay Example

Abstract The purpose of the review was to examine the appraisal system of a company, identify its strengths and weaknesses, and provide improvement suggestions. This report outlines these study elements systematically, by initially providing background information about performance appraisals, the present appraisal system in the firm, that is, 360-degree appraisal, research findings and eventually potential recommendations. The report is founded on the basic fact that performance appraisal is a significant component of numerous company interventions. However, managers wrongly hold the assumption that simple provision of feedback is sufficient in enhancing employees’ performance. This paper examines factors that render appraisal systems in a company ineffective, with particular focus on the 360-degree appraisal mechanism. The paper then evaluates the implications of findings from the company in question and applies them in formulating ways of improving appraisal. Introduction Performance appraisal is one of the most common platforms used by employers to determine whether their employees are sufficiently qualified for promotion. However, the contemporary work environment is changing with teamwork gradually replacing hierarchical management. Further, organizations are increasingly shifting their focus toward employee empowerment and participative leadership, as opposed to the traditional authoritative leadership style. In addition, companies are reducing managerial positions thus increasing workloads and making supervisors responsible for large groups of employees. This means that supervisors are no longer capable of observing employees and providing fair, precise, valid and inspiring performance evaluations. As a result, modern companies have no choice but to look for appraisal mechanisms that adopt these changes and, at the same time, support and promote employee development. Most organizations in the present business environment have resorted to using the 360-degree appraisal approach. This method is popular for its ability to provide workers with the information they need to change and align their abilities or talents with functions that meet company goals. However, this appraisal mechanism is not without faults. This research project was meant to analyze usage of a performance appraisal method in a company, and to collect information that would aid in the system’s improvement in regard to accuracy, fairness, credibility and objectivity. Discussion Outline of the 360-degree Appraisal System The company chosen for this research applies the 360-degree feedback method. The inception of this appraisal system can be linked to past satisfaction surveys, which were used to enhance morale and communication among workers. The system also has its foundation in employers’ desire to encourage employees in their efforts to set goals, as well as, the provision of feedback to motivate workers. At this time, performance reviews were usually conducted by supervisors who also provided participating employees with the relevant feedback (Sharma, 2002, pp. 23-26). However, changes in the 21st century prompted many organizations to abandon the conventional supervisor-partisan appraisal method. For instance, there are no longer many managerial positions, meaning that administrators have more pressing concerns than supervising junior staff. Further, the employees participating in the review are supposed to interact with others in different organizations or departments, making it rather difficult for supervisors to monitor them effectively and provide credible feedback. The modern environment is also characterized by acute competition, which has made companies exert extra focus on customers as opposed to employees (Brett, 2006, pp. 579-580). Given the above changes, participants in modern performance reviews are subject to scrutiny by stakeholders other than employers. This is where the 360-degree appraisal mechanism comes into play. In this method, workers of the company are evaluated by superiors, colleagues and even the company’s customers. The appraisal method is a multi-source feedback system (MSFS), since it requires input from multiple information sources. It is popular because many people associate the traditional method of employee review with bias on the part of the supervisor. With increased focus on internal and external customers, coupled with new measures of performance like innovation, initiative and teamwork, the 360-degree appraisal method lays the foundation for an assessment that is more objective. This is because; it facilitates collection of information and analyses from diverse sources (Sharma, 2002, p. 31). The multiple input performance review derives its name from the circle, since it integrates all the information sources involved in the circle of service delivery or production. The 360-degree feedback approach is considered holistic because of its tendency to incorporate views from all levels. In this performance review approach, the participating employee is usually evaluated occasionally, either annually or in the middle of the year. The parties responsible for the evaluation include high ranking personnel, subordinates, co-workers or colleagues, and external or internal customers. This evaluation is normally done on a questionnaire specifically formulated to measure employees’ behavior (Sharma, 2002, pp. 35-38). Advantages and Disadvantages of the 360-degree Appraisal Method One of the principal pros of the 360-degree review method is that, it gives different stakeholder a chance to provide feedback. This is unlike in the traditional performance appraisal, where only one person who came into contact with the employee gets the opportunity to give feedback. An added advantage of the review and appraisal method is that it focuses on other stakeholders influenced by the employee, and not just the superior. This means that workers gain the motivation to meet their responsibilities not only with the intent of being perceived as hard workers, but also as a way of upholding the company’s reputation. The other benefit of the approach is that, it has a higher chance of inspiring change in employees. This is because feedback is provided by multiple sources, making it difficult for the participant to ignore the recommendations and assert that the reviewer is biased. The 360-degree appraisal method, just like other performance appraisal approaches, is not exempt from disadvantages. For example, the parties reviewing the employee may not always offer a candid and fair response. This method also relies extensively on technology, making it difficult for some reviewers to comprehend it and also questioning its credibility in judging employees’ performance (Brett, 2006, p. 582). Another disadvantage is that, the 360-degree approach involves an extensive and bureaucratic process. This makes it difficult and tedious for reviewers to participate and they may occasionally refrain from filling in the questionnaires or provide answers for granted. The method is also time-consuming, since it requires training prior to the appraisal. Improvements on the strengths and Weakness Identified in the Appraisal Method In order to improve the 360 degree feedback appraisal method, the management should embark on having an active support to the employees as they take part in the said activity. This will be achieved by ensuring that the employees are well trained on the appraisal method. It is also imperative to ensure that the questions that are provided for the employees are meaningful. Additionally, the questions should also reflect crucial behaviours that are depicted by the employees. This is why the management should try and improve actual events that are experienced by all individuals. The employees do not seem to understand how the appraisal method works. This is a crucial weakness which can only be improved by ensuring that there are comprehensive and well stipulated training programs for the employees. The training program will assist all the employees to effectively follow all the actions that will enhance their appraisal methods. It is also extremely imperative to make sure that the employees will feel motivated but not threatened by the appraisal process. This should be improved by ensuring that the questionnaires are anonymously completed. This way the workers will feel less threatened by the procedure and agree to take part (Brett, 2006, pp. 583-585). Some of the employees found it difficult to understand some of the questions that were presented to them during the appraisal process. This is also a weakness that should be solved by ensuring that all the questions on the questionnaire are simple and easy to understand. This means that the employees will find the questionnaire easy to complete. The organization has a good administration that is well managed. However there is a lot of bureaucracy which results to a lot of influence on the employees’ opinions. Therefore, to improve the appraisal process, there is need to shorten the chain of command in order to enhance communication between the employees and the executives. This way they will be able to give genuine answers that are extremely imperative in conducting a successful appraisal. Conclusion The 360 degree feedback performance review procedure may be termed as positive, comprehensive, as well as, efficient. This is only possible if the organization is devoted towards designing a procedure that will not only enhance performance, but also easy to understand. In this case, the organization did not have a well stipulated purpose for conducting the appraisal using the 360 degree method. The principal reason why the implementation of the 360 degree feedback process was unsuccessful was because it lacked clear purpose. This is attributed to the fact that the procedure does not concentrate on the performance issues facing the organization. Instead, the company adopted this method because it was the newest appraisal method that is being used world class organizations. Another issue that affected the organization’s appraisal method was lack of conducting a pilot test. 360 degree feedback method can only be used when an organization wants to completely its operations. Therefore, before the organization started to use it, there was need for a pre test in order to determine if it is the right method to use for their company. It was also evident that the company lacked sufficient communication. Lack of communication can provoke a threatening aspect t the employees if the purpose of the appraisal is not well conducted. This is because in many case when a company is conducting an appraisal it is because they want to lay off people that are not up to the task. Therefore, without sufficient communication, employees are bound to give incorrect information in order to be safe from such outcomes. Additionally the organization did not consider communicating about confidentially which is extremely imperative in such an appraisal exercise. Additionally, they did not provide a vivid purpose for the need to conduct an appraisal. This made it difficult for the employees to full participate in the exercise. Suggestions The organization should ensure that they should perform an appraisal with a clear purpose. This means that there should be a specific issue being addressed as well as strategic need. For example, it is imperative for the executives to perform an appraisal in order to know how they will enhance competitive aspects in the organization. The organization should make sure that they conduct a pre-test before adopting a new method to conduct an appraisal. This is imperative because most of the companies only use a new method in conducting appraisals because it is trendy. 360 degree feedback method assists s in raising concerns in the organization. Therefore, the organization should embark on communicating the intention of conducting the appraisal. Clear potential decisions should be communicated to the employees before such an exercise is conducted. This will enhance confidence when they are undergoing the exercise and encourage them to give the right answers. Bibliography Brett, J. 2006. 360 Degree Feedback to Leaders. Group and Organization Management, 31: pp. 578- 600. Sharma, R. 2002. 360 Degree feedback, Competency Mapping and Assessment Centers. New Delhi: McGraw Hill. Read More