Case Study B.R Investments is a reputed finance company having 15 branches in di

Question

Case Study

B.R Investments is a reputed finance company having 15 branches in different part of the country. In the home office there are more than 200 employees. This company has a performance rating under which the employees are rated at six months intervals by a committee of two executives. Graphic scales have been used as means of appraisal. The qualities considered are responsibility, initiative, and interest in work, leadership potential, co-operative attitude and community activity. After the performance is evaluated, the ratings are discussed with the concerned employees by their immediate boss who counsels them. The ratings aroused to influence promotions and salary adjustments the employees and also as a criterion for assigning further rating for them.

Recently three employees of the company called on the company’s president to express their dissatisfaction with the ratings they had received. Their scores and composite ratings had been discussed with them. Because their ratings were comparatively low, they had been denied annual increments in salary. Approximately, two thirds of all the employees received such increments. The aggrieved employees argued that their ratings did not accurately represent their qualifications or performance. They insisted that “community activity” was not actually a part of their job and that what they do off the job is none of the company’s business. They expressed their opinion that employees should organize union and insist that salary increase be automatic.

The threat of a union caused concern to the officers of the company. This particular experience convinced the top officers that ratings may represent a serious hazard to satisfactory relationship with employees. Even the chief executive finds that performance appraisal is a dangerous source of friction and its hazards outweigh its values; so it should be discontinued altogether.

Questions:

What modifications would you suggest in the performance appraisal system of the company?

The word count for this assignment must be between 300 words

Explanation / Answer

Answer:

Performance Appraisal – Performance appraisal process is to review the performance of the employee based on his contribution in the organization against his work plan objective and assign the rating to the employee. This process helps the employees to review their performance for the given time period and helps them to understand their achievements and areas of improvement for the given year, so that they can improve their performances for the next working year/period.

The performance review process is the most important review process or review event between the employee and the manager. This is the review event in which manager can explain his overall assessment on the yearly/periodic performance of the employee and provide the appropriate feedback to the employee so that he can improve his performance in the coming years and can improve his career path. This process is critical from the employee point of view because it is the only review that will explain the demonstrated strength and weakness of the employees, based on which the employee can work for his future career improvements.

Case background: In the given case study, the performance review process not accepted by some employees as they are not convince with the process of performance review and appraisal for them. The employees are not on happy with the way the performance management is carried out and the management has concern that this employee dissatisfaction may leads to union culture. The senior staff is concerned due to union threat that rating process is impacting the relation between the employees and management; they are ready to remove rating system for the company.

Following are the modifications to be carried out in the performance appraisal system for the organization as below:-

So based on all above changes, it looks that the employees will be convinced with new process and they will not move towards the union culture and the management will be happy to use the process with good relationship with employees.

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