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)
As the CEO of a company that heavily relies on industrial workers with technical job-specific skills, it is crucial to ensure that all employees are performing at the expected level and keeping up with the machine cycle time. In order to maintain efficiency and quality in the assembly line production system, it is necessary to implement a performance appraisal system.
The main objectives of performance appraisals are as follows:
1. Evaluate individual performance: Performance appraisals provide a structured framework to assess the performance of each employee individually. By objectively measuring their productivity, efficiency, and quality of work, you can identify the top performers and areas where improvement is needed.
To achieve this objective, you can follow these steps:
- Set clear performance expectations and goals for each employee, aligned with company objectives.
- Regularly monitor and record their performance using established metrics and criteria.
- Conduct periodic evaluations to provide feedback on their performance and discuss potential areas for growth or improvement.
2. Identify training needs: By evaluating the performance of employees, performance appraisals help you identify any gaps in their skills and knowledge. This enables you to identify the need for additional training or development opportunities to enhance their job-specific skills.
To fulfill this objective, you can:
- Analyze the strengths and weaknesses of each employee based on their performance appraisal.
- Identify training programs or workshops that can address the areas requiring improvement.
- Provide resources and opportunities for skill development to help employees reach their full potential.
3. Recognize and reward top performers: Performance appraisals allow you to acknowledge and appreciate the efforts of high-performing employees. Recognizing outstanding performance is crucial to boost employee morale, motivation, and job satisfaction.
To achieve this objective, you can:
- Implement a rewards and recognition system based on the performance appraisal results.
- Provide incentives, bonuses, or promotions to those who consistently exceed expectations.
- Celebrate and publicly acknowledge the achievements of the top performers to motivate others.
4. Support decision-making: Performance appraisals provide valuable data and insights that can aid in various decision-making processes within the organization. This includes decisions related to promotions, transfers, layoffs, and succession planning.
To fulfill this objective, you can:
- Use performance appraisal data as a basis for making informed decisions about promotions or transfers.
- Identify employees who have the potential for leadership roles and plan for their development accordingly.
- Assess the overall performance of different teams or departments to identify areas of strength or improvement.
By implementing a performance appraisal system, you can ensure that all your industrial workers are performing up to the required standards, maintain efficiency in the assembly line production system, and achieve the desired level of quality in the end product.