Performance management

You've been hired to consult on an FIRM project for the O'Leary Organisation, a medium sized manufacturing firm employing around 200 employees and contractors; the firm's located in Sydney's western suburbs. Most HRM and ER functions are largely undertaken by line managers with policy, advice and some strategic input given by the HR Department which consists of a degree-educated HR officer and their assistant. Payroll and EAP services are outsourced. Your task is to review the current performance appraisal system (PAS) and make evidence-based recommended changes to the system which you can justify.

Under the current system all new employees are evaluated at the end of a 90-day probationary period and on a yearly basis thereafter. Supervisors are required to complete a form (see attached) for each of their employees, discuss the appraisal, ask the employee to sign the completed form and return it to the HR Department. There is no formal direct link between the PAS and remuneration; the evaluations are used mainly to informally address training and development needs plus, should the business need to shed labour, to identify those which the firm like to like to 'let go' although this hasn't happened to date.

A recent series of appraisals has led to a flurry of emails (see attached); such a flurry that it has prompted the CEO to arrange your consultancy. These should inform your considerations.

Length: 2,000 words excluding references.

This PBL was adapted from 'Developing Effectiveness in Human Resources'.

Item I
To: HR Department
From: Matt Chester
RE: 90-Day Employment Evaluation
I just received my 90-day employee evaluation and received mostly 3s on it. My boss explained his evaluation to me by saying that I was making good progress on the job. He added that if I continue to show improvement, I will receive 4s and 5s like the more experiences employees do. Why am I being evaluated against older, more experienced workers? That doesn't seem right. I believe that considering my limited experience, I deserve "excellent" evaluations.

Item 2
To: HR Department
From: Paul Lands
RE: Performance Evaluation
Joe Meena and I started together at the O'Leary Organisation two years ago. We are both in the Computer Centre doing the same job, only he works one shift, and I work another. Two weeks ago, when we compared our performance evaluations, I discovered that he received all 5s whereas I received mostly 4s. The thing that irks me is that he and I both know we are doing an equally good job. His boss is just more lenient in his evaluation than is my boss. I don't think this whole system is fair, particularly since he may get promoted (based on his performance evaluation) before I do. Can't something be done about this?

Item 3
To: HR Department
From: Sue Church
RE: Administering Employee Evaluations
I have recently received from your office a request to conduct evaluations this month on three of my employees. As you probably know, I was promoted to this supervisory position just one week ago as a result of the former supervisor's termination. I don't feel that I can presently conduct a fair evaluation of these employees. Do you want me to do them anyway?

Item 4
To: HR Department
From: Karen Blackwell, Supervisor
RE: Evaluation of Heather Morrison

This morning I conducted an evaluation interview with Heather Morrison. Although I had given her a 4 on initiative last year I gave her a 2 in that category this year. When I told her this, she became very angry and said the evaluation should have been at least a 3 and probably a 4 again. I attempted to explain my evaluation to her, but she wouldn't listen. Instead, she continued to argue with me,but could not give me any concrete examples that would allow me to improve her rating on this category. If a situation like this comes up again, how should I handle it?

Item 5
To: HR Department
From: Howard Adams
RE: Necessity of Signing Evaluation Forms
Recently I conducted a performance evaluation interview with Harold Wallace. At the end of the interview, when I asked him to sign the appraisal form at the bottom, he refused. I asked him if the evaluation was accurate, and he said yes. I also explained to him that signing the form only represented an acknowledgement that he had been evaluated. He replied that he had nothing to gain from signing the form, and, therefore, why sign it? I don't know what I should do. Harold is somewhat of a problem and is often quite stubborn.

Item 6
To: HR Department
From: Margaret Windell, Purchasing RE: Annual Performance Review
I have a rather troublesome question to ask you. I would ask it of my boss but she is currently in the hospital. For the last 23 years I have received an overall performance review, and my evaluations have all shown that I am an excellent employee. I am six years from retirement and, frankly, I have reached the point where performance evaluations aren't of any consequence to me. I know I am doing a good job. I know I won't get promoted or transferred, and I am at the top of my pay grade. So why should I continue to be evaluated formally?

Item 7
To: HR Department
From: Sarah Wade, Maintenance Engineer
When I was over in the HR Department yesterday looking at my file, I saw the appraisal that was completed on me one month ago. I was shocked to see the following statement written on it under "Remarks": "Sarah has a very poor work attitude and doesn't appear willing to change it." My boss, Marilyn Turner; had also changed my evaluation on "attitude" from 4 to a-2,TI am positive the negative statement was not on the evaluation when I signed it. Needless to say, I want you to do something about this!

Item 8
To: HR Department
From: Chris Green, Supervisor
RE: Performance Evaluation of Bill Young

Next week, I must conduct a performance evaluation interview with Bill Young who works by himself in the evenings. While I was completing the evaluation on him, I realised that it was impossible for me to evaluate him on one of the evaluation categories, "Work with Group." What should I do? I am afraid if I leave it blank it will affect his "Overall Level of Performance" score and hence, his chances of promotion.

Item 9
To: HR Department
From: Jeff Skala, Finance Department
RE: Confidentiality of Performance Evaluation
As you know, over the past year I have been experiencing a series of personal problems, all of which have adversely affected my job performance. These problems reflected themselves on my recent performance evaluation as my "marks" slipped from mostly 4s to mostly 2s. I can't disagree with my evaluation, but I don't think it was right for my boss, Helen Jackson, to tell two of my co-workers that she had given me a 1 on "Quality of Work." It seems to me that this type of information should be confidential since it is none of their business.