Question 3 (20)
Assume you are the CEO of a company that employs a large number of industrial workers who are below graduate level and who possess technical job-specific skills. Your organisation is highly technology driven and requires everyone to perform well, keeping pace with the machine cycle time. Any below the standard performer can create a total mess in the assembly line production system, as the job remains in each work station for specific period of time. On the expiry of time schedule, job reaches to next workstation, even if it’s not fully completed in the earlier workstation. In the assembly-line production system, we cannot back track a job as a result when the job travels through different work stations with incomplete workmanship, the end product fails to conforms to the requires quality and is rejected.
3.1 As CEO, you want to outline the objectives and reasons for adopting performance appraisal system in your organisation. Explain the main objectives of performance appraisals. (10)
The main objectives of performance appraisals in this organization are as follows:
1. Identify and recognize high performers: Performance appraisals allow the CEO to identify and recognize employees who consistently perform above the expected standard. This recognition can help motivate these high performers and encourage them to continue their excellent work.
2. Identify areas for improvement: Performance appraisals provide an opportunity to identify areas where employees may be struggling or not performing up to the required standard. By identifying these areas for improvement, the CEO can provide necessary training and support to help employees enhance their skills and perform better in their roles.
3. Establish performance standards: Performance appraisals help establish clear performance expectations and standards for the organization. By setting these standards, the CEO can ensure that all employees are aware of what is expected from them, and can hold them accountable for their performance.
4. Provide feedback and coaching: Performance appraisals allow the CEO to provide employees with valuable feedback on their performance. This feedback can help employees understand their strengths and areas for improvement, and can guide them in their professional development. Additionally, performance appraisals provide an opportunity for coaching and mentoring, as the CEO can provide guidance and support to employees in achieving their goals.
5. Support decision-making: Performance appraisals provide valuable data and information that can support decision-making within the organization. The CEO can use performance appraisal results to make decisions related to promotions, bonuses, training opportunities, and even disciplinary actions.
6. Facilitate performance-based rewards: Performance appraisals allow the CEO to determine and allocate rewards and incentives based on individual and team performance. By linking rewards to performance, the CEO can create a culture of high performance and motivate employees to strive for excellence.
7. Improve overall organizational performance: By monitoring and evaluating individual and team performance through performance appraisals, the CEO can identify trends and patterns that may be affecting overall organizational performance. This allows for timely interventions and improvements to be made, ultimately leading to better overall outcomes for the organization.
Overall, the main objectives of performance appraisals in this organization are to recognize and reward high performers, identify areas for improvement, establish performance standards, provide feedback and coaching, support decision-making, facilitate performance-based rewards, and improve overall organizational performance.