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In this report I am going to investigate and evaluate different human resource topics. I am then going to discuss in full detail one of these topics in relation to my work experience placement in Monkstown Pharmacy.
3.0 Method of Procedure:
In order to gather relevant information to complete my assignment. I used my class notes and modern management and
4.1 Description of HR Topic
The HR topic I have chosen to do my report on is Performance Appraisal. According to Gunnigle & Flood (1990) performance appraisal is a "systematic approach to evaluating employee performance, Characteristics/ potential, with a view to assisting decisions in a range of areas e.g. pay, promotion, employee development and motivation". Performance appraisal loop
Performance appraisal is necessary for the running of a business as it assess the performance of an employee on an individual basis. It encourages employees to set individual objectives and assess how well the employees meet these objectives. Performance Appraisal can determine who is due a promotion or who needs a transfer to different department. It can also determine if an employee is struggling with their work and if they need training in a particular area. Performance appraisal gives a clear understanding of what jobs are actually being done in the workplace.
Benefits of performance appraisal for managers:
It gives the manager a chance to learn more about their employee's hopes and fears relating to the future of the organisation.
It encourages employees to set goals in order to meet their targets.
It motivates employees by recognising their achievements.
It measures the change in employee's performance towards their work and can help determine if an employee needs to be transferred to a different department.
Benefits of performance Appraisal for employees:
Employees receive feedback on their work
It gives employees a chance to communicate their to views to the management
It identifies the employees training and development needs.
Employees get recognition if they achieve their objectives.
Benefits of performance appraisal for Employers:
It facilitates the HR planning.
It improves communication in the workplace.
Gives opportunity to improve performance.
It ensures that employees perform to their best potential.
There are many methods of performance appraisal they consist of:
Performance/ objective-oriented systems
4.2 Behavioural Theory's
There are many approaches a company can use to promote Performance Appraisal in an organisation. I am going to discuss four.
Provide incentives and rewards
Incentives and rewards play a huge role in motivation as they encourage people to work to their full potential in order to receive a reward. This has a short term effect on the individual as once they have been rewarded they can lose all means of motivation. Employees are motivated more by a boost in their self esteem that comes when the management recognises good work and praises their staff. This is seen in Maslow's Hierarchy of needs. This states that once the needs of an employee such as physiological needs e.g. job and salary, security needs, belonging needs e.g. acceptance by work group and esteem needs have been met by the employer then the employee can work to their full potential.
Select the best
This process involves only hiring people who have the potential to be motivated. Candidates are manly selected if they have values consistent to those of the company. There is a lot of time and effort involved when selecting the best candidate and the interview process can be very thorough it includes personality, behaviour and management styles. The most essential trait to look for when selecting a new candidate is their work ethic values e.g. discipline, desire, commitment to self development, willingness to work hard and enthusiasm. This is seen in
Reversing the trend
This process involves motivating employees to become part of the organisation's corporate culture. Superior companies use this technique to motivate their staff to achieve the organisations goals. This process is seen in Adams Equity Theory which focuses mainly with the employee's feelings and how fairly they are being treated in comparison to other people in the organisation. People in the work place are constantly comparing their own circumstances to those of their colleges who are in similar ones as an attempt to perceive the equity of their position. Equity in the workplace arises when a person feels that there is an unequal ratio between their inputs and outcomes. The feeling of inequity is very unpleasant to any individual and the size of the inequity determines how high the level of tension can become. Adams outlines six ways a worker can respond when feeling inequity in their work place:
Changes to input levels-adjust the input level
Changes to outcomes e.g. more pay
Cognitive distortion to inputs and outcomes
Leaving the field e.g. moving department or company
Acting on others e.g. distort the input and output of others
Changing the object of comparison e.g. change point of reference
There is one main problem with Adams theory which is that different workers may view inputs and outcomes as different in nature and different in importance. This will affect the perception of equity.
Confidence and enthusiasm create energy in any organisation in order to direct that energy objectives and criteria must be established. This process involves telling the workers exactly what is expected of them and the criteria that will be used to evaluate their performance. This must not be done in a critical or demeaning manner. In order to avoid downfalls in the organisation there must be regular performance evaluations and good communication. This can help managers to focus on ways to improve and develop their organisation. Many managers feel performance appraisal is on opportunity to punish an employee and is viewed in a negative way by both parties. This should not be the case as performance appraisal is a powerful way of motivating staff and is a way of meeting their needs.
4.3 Behavoural Theroy & HRM
In Monkstown Pharmacy performance is undertaken once a month. Due to the fact that Monkstown Pharmacy is a small business Performance Appraisal is not a formal procedure. Every month the management organises an individual meeting with each member of staff to evaluate their performance and to set new targets for the month. The management discuss the objectives that were made the previous month and assess whether or not the employee has met these objectives. If objectives have been met then the staff receives a bonus sum of money which is added to their wages at the end of the month. If the staff fail to meet their objectives the management will conduct an assessment on that employee, the employee may then be transferred to a different department or may need more training depending on the outcome of the assessment.
The staff at Monkstown Pharmacy feel highly motivated and the end of each month as they feel the management have recognised their achievements and the staff feel more encouraged to meet targets in the future. Performance appraisal also gives staff the chance to discuss any problems they are having with the management the staff at Monkstown Pharmacy feel this is an excellent way of communication between management and staff. Monkstown Pharmacy is a small but highly successful business and has not been affected yet by the economic down turn. I feel this is due to the highly motivated staff and the good communication levels between management and staff. Performance appraisal has proven to be a highly successful method of meeting targets and motivating employees at Monkstown Pharmacy the management feel that Performance appraisal has contributed a lot to the success of their business.
In conclusion of doing this assignment I have found performance appraisal to be a highly successful method used to motivate staff and meet objectives in an organisation. Performance appraisal encourages employees to set individual objectives and assess how well the employees meet these objectives. Performance Appraisal can determine who is due a promotion or who needs a transfer to different department; it can also determine if an employee needs training in their particular department. Performance appraisal benefits the manager as it gives the manager a chance to learn more about their employee's hopes and fears relating to the future of the organisation. It also benefits staff as they receive feedback on their work and gives staff a chance to communicate their views to the management. There are any methods of performance appraisal that management can choose from they consist of: Rating, ranking, paired comparison, critical incident, free-form, performance/ objective-oriented systems and assessment centre. Performance appraisal provides a pleasant atmosphere in the workplace as there is no tension between staff and management due to the good communication levels, if staff have a problem or feel they need to talk to the management they can do so at the monthly meetings.
From doing this assignment I have found performance appraisal to be a very successful method used in my organisation. I feel it contributes hugely to the success of the business and encourages staff work hard in order to meet their objectives and leaves staff feeling highly motivated and confident. Performance appraisal provides a pleasant atmosphere in the workplace as there is no tension between staff and management due to the good communication levels. I feel good communication contributes hugely to the success of this organisation. The one recondition I have for my organisation is, in order to keep up the good communication levels and the good staff morale they should have an annual meeting once a week with all members of staff to discuss any problems the staff are having as I feel a month is too long to wait to talk to management if an employee is having problems. I feel that it an employee is having a problem in the work place is will have a huge effect on their motivation which will affect the organisation.