This recommendation offers a solution to appraise the performance of an employees. It consists of regular reviews of employee performance within organization. Performance appraisal helps in identifying the weakness and strength of an employees so that they can improve themselves and contribute much to their company.
This report consists of both primary research- In-person interview with the manager and employees and secondary research.
According to my research plan, Performance appraisal is very crucial in running a successful business because more effective way for a business to differentiate themselves in s highly competitive, service-oriented, global marketplace is through the quality of employees. Manager held meetings with employees to set goals collaboratively. Hence, employees become more engaged and committed to the goal, leading to the higher rate of success.
Having weekly meetings, discuss problems with employees and suggest how to develop their own individual goals helps them a lot in improving their performance and enhance their morale.
I am very ecstatic and grateful to Anuradha Sharma for giving me her precious time out of her busy schedule and give her suggestion how to appraise the performance of employees. Her opinions and judgement give a plenty of ideas to complete this report.
For any suggestions, queries, concerns or need further help, please do not hesitate to contact me. I would feel happy to solve your problems.
- Purpose of the proposal
The main purpose of this proposal is (1) to find the problems of performance appraisal (2) What are the effects of problem of performance appraisal of employees on the company, (3) Strategies and methods of performance appraisal, (4) show the positive consequences of performance appraisal on the company’s outcomes.
Five scholars and five professionals were used for this report and having interviews with Anuradha Sharma, Mary, Sukh.
Performance appraisal of employees
Primary and subsidiary research conclude that by determining the performance of employees by using different formal appraisal methods helps them to evaluate their performance that whether they are doing their job well or need to improve their performance.
By appraising the performance of employees, it aligns employee with strategic company’s goal and improve their potential to do their job well. It helps an organisation to identify the strength and weakness of employees which become a basis for future training and development programmes.
Eventually, the result of this research is that every employee needs his/ her performance feedback and manager must provide the necessary support to employees to facilitate improvement.
Recommendations for improvement in employee appraisals at Subway
- Tell the employee know his/her performance is not acceptable and explain your least expectation.
- Ensure that your expectations are reasonable.
- Give enough time to employee so that he/she can improve his/her performance.
- Provide enough support to employee to improve his/her performance.
Performance Appraisal in today’s organization and recommendations for the Subway
A performance appraisal is a method of analysing employees performance and overall contribute to the organization. It evaluates the employee talent, development. Many company use performance appraisal to give employees big picture feedback on their work and to justify increment in the pay and promotions, as well as turnover.
The major reason for performance appraisal is to provide an opportunity to have a formal conversation between management and employees about the performance.
According to researchers, only 8% of organisations contribute to performance appraisal. The performance appraisal helps employee to evaluate his/her performance and should increase his/her effort in the performance. A supervisor or manager is responsible to tell the employees whether they are doing job well or require any additional efforts in their job. It is found that through recent researcher, though performance appraisal consuming too much time but in final it is very beneficial for the organisation as it provided more motivated and improved employees.
Subway1 is also one of the company among those companies facing performance appraisal difficulties. The performance appraisal is usually yearly but every employee needs it at a regular interval. Performance feedback keeps employees attentive encourage and committed on their organization’s aim and recognise their contributions which will helps the manager in the promotion and enhancement of the pay of the employees.
The purpose of this report is to focus on the main problems of performance appraisal and how to tackle with that problem.
1Subway Ip Inc. is an American privately held food eatery establishment that offers nautilus sandwiches and salads. Fred DeLuca had open a submarine sandwich shop in1965 and initiate his business from thousand dollars. But contemporary it is owned by the family of DeLuca and its headquarter located in Bridgeport, Connecticut, U.S. Subway is one of the swiftly developing restaurant with 44,834 stores in 112 countries.
The advertising slogan used by Subway is “Eat Fresh” and main focused on the procedure of baking of breads. Subway comes after McDonalds in the US as a advisor of junk food.
- Problems of Performance appraisal of employee
In this contemporary era, employees tend to worry more about their rating scale in an organization. Performance appraisal involves an emotional component and it is difficult to evaluate the performance of the employee if the manager is not obtained an adequate amount of training. Hence, it will lead to rupture the morale level of the employees, efficiency to perform the task.
Rating Scale Problems: Methods used in performance appraisal must be valid, accurate and justifiable to produce useful results and benefits. There are several rating scale problems which will affects the performance appraisal of the employee.
- Halo effect: It is sometimes also called “horns errors”. It occurs when rating of an employee on one trait influences the rating of that employee on all trait. This problem occurs with employees who are especially kind or not kind towards the supervisor and it is faced by the employees of subway also.
- Central Tendency: It occurs when supervisors rating all employees in the middle of the scale. For example- If the rating scale ranges from one to nine and supervisor tend to avoid the lows (one to three) and highs (seven to nine) and rate all employees in between four to six.
- Leniency / Strictness: Many supervisors tend to rate the employees either too high or too low. Some instructors give high grade and others are not. Reason for the leniency is the fear of interpersonal conflicts
- Appraisal bias: It is also known as idiosyncratic factors. It is a tendency to permit individual discriminations such as race sex age which will affect their ratings, which is quite different from their performance. Rating of an employee performance on the basis of this discrimination will result in inaccurate feedback and it is also illegal under the human right legislation.
- Recency effect: In this effect, ratings are based on the employee’s most recent performance rather than on performance throughout the appraisal period.
- Similar-to me bias: In this if a supervisor gives higher rating to those who are perceived to be more similar-to the rater. This bias can be discriminatory if it is based on similarity in age, race, sex.
- Rater bias: Most of the employees hate the performance appraisal because manager do not rate them according to their performance. If non-performance factors- age, race, gender include at the time of performance appraisal, it will affect the rating of the employees, as a result, employees react with decline in job satisfaction and turnover.
Consequences of performance appraisal on company
- Demotivate employees: Sometimes performance appraisal decreases morale level of the employees if rating is not done accurately by the manager. As a result, it will affect the performance of the employee which will directly affect the company’s sale rate and employee’s turnover rate.
- Time consuming: Performance appraisal is very time-consuming process and it requires a plenty of time to discuss the performance of every employee. In a big organisation, it is very difficult to determine the performance appraisal of the employee. Hence, time issue can distort the evaluations, and create problems in promotion, salary or counselling process and it will lead to more turnover rate because employee will not satisfy with the job and company may suffer due to that.
- Creative negative experience: If performance appraisal is not done in an accurate way, then it will create a negative environment in the workplace for employees and supervisor. It will be removed by proper training for appraisal process.
- Stressful workplace: It will create stressful workplace if performance appraisal is not done in adequate way. It will be removed by simply provide proper training to supervisor on how to eliminate rating errors.
Methods to appraise the performance of employees
Benefits of performance appraisal
- Performance appraisal helps employee in improving his/her skills by providing feedback on his/her performance.
- It motivates employees if they get good scores on his/her performance. As a result, they will give their best to earn promotion, bonuses, and enhancement in their pay.
- It will help to identify the employee who is not performing well and helps in the employee eliminating process.
- Managers and employee set goals collaboratively. Hence, employees become more engaged and committed towards company’s goal.
- It also gives an opportunity to manager and employees to interact with each other, discuss their problems and find the solution.
Results of an interview with manager at subway
Results of personal interviews
Anuradha Sharma is the manager of subway at arbutus street, Vancouver. She has with the company since 2011. She has earned a bachelor’s degree in management. She has 15 years experience in Subway.
According to her personal experience, performance of the employee will be increase if weekly positive feedback given to the employee because if in case employee perform worst due to some reason, then it should be responsibility of the manager to approach the employee and listen to his/her problem and try to find the solution and motivate them to give their best during the job and try not to blend their personal or professional life. She also said that it is very important that the feedback of the employee should not disclose in front of another employee. Sometimes, employee feels embarrassed in front of their colleagues.
Mary and Sukh are manager assistants. Both are students doing their graduation in business management. They are working there since 2016.
According to them, it is very difficult to gather all the employees together to discuss their problems and solutions. As everyone have different schedule. They also want that there should be special motivation session by the owner once a year for their employees. This will also reduce the stress in the workplace and employees will perform happily and stress-free.
Manager must provide weekly performance feedback to the employees personally and also tell them where they have to improve and if they are performing well, then there should be a weekly reward for the employees.
According to my primary and secondary research, the following conclusions are drawn:
- Providing positive feedback to employees will result in improvement in the efficiency of the employee to perform the task rather than providing negative feedback which is the main problem now a-days to ruin the emotional level of the employee.
- Recommendations in the improvement of employee appraisal:
- Meeting goals
- Attention to detail
- Communication skills