Project Management Case Study: Employee Performance Evaluation Harvard Case Solution & Analysis

Project Management Case Study: Employee Performance Evaluation Case Study Solution

• Number of customers

The companies track the number of customers that are buying their items. ABC Company monitors the number of customers that are visiting their coffee shops. Sometimes, companies just want people to keep visiting their shops no matter if they are buying any product or not but a healthy flow of people shows that they are being liked by the customers. This helps them in bringing innovations to their offerings so that they don’t lose their customer count. On the contrary, if the customer growth rate is stagnant and isn’t increasing, it then forces the company to quickly think of new ways and strategies to bring back the customers. Therefore, a negative customer growth means that the company needs to improve inits operations and it isn’t directed towards success.

• Complaints per head

A company that is doing well will always hear a positive feedback from its customers. Whereas, in case of dull performance by the company or restaurant, people will be most likely to complain about lack of quality or poor service. This is the best way to get to know and be aware of the customers’ perspective on your offerings.

Expected Problems and Challenges

Since, the performance appraisal would allow the company in offering the constructive feedback to employees as well as determining if compensation would be appropriate. The performance appraisal helps in employees’ rating, performance evaluation, and performance review and merit evaluation. Such system is continued to be most significant Human Resource management function nowadays because the employee performance is significant for the companies to be more competitive and effective as compared to the market rivals. However, there are number of problems and challenges that should be addressed for maximizing theeffectiveness of the appraisal process.

First, the information should be obtained about each employee and having some level of assurance that such information is representingan overall performance. For supervisors, it would be common to have limited opportunities for directly observing  the employees as they perform their responsibilities, particularly in case the employees are dispersed in ways that makes it impossible to observe all employees at the same time. Such problem can overcome by waking through workplace on daily basis as suggested by Peters and Waterman (Kanter, 2009).

Secondly, next challenge is the fairness of the evaluation decisions. There is a problem in evaluating the employee performance appraisal in appropriate way. In case, the performance of the individual is not measured in proper manner,it might lead to the dissatisfaction in the system.

One of the element contributing to the dissatisfaction of employees is the limited skills and knowledge of raters, this would affect the evaluation process because reliability, bias and unfairness may occur. Even though, there is a set of standard and formal evaluation to be followed, the employees do not seem to trust the evaluation tools (Rusli Ahmad, 2013).

 Performance Appraisal Benefits

The performance appraisal would result in number of benefits to the company and its employees which are as follows;

• The individual performance of employees would influence how the company and employees are doing
• It would clarify the status and roles of the employees in an organization.
• Self-development is one of the key consideration for the employees. The system would allow the company to provide the positive feedback, and identify the key improvement areas.
• The compensation system based on merit of employees would motivate them to a greater extent.
• It would allow the company to decide on rewards, promotions and transfer of the employees.
• It would benefit the company in both short term and long term, increasing job satisfaction, improving the sense of loyalty in the employees, to the company (Sahoo, 2013).

Recommendations

The company has gone through the phase of lackluster performance from its employees which was revealed to them after performance appraisal. The employees’ motivational level has gone down the line which needs to be taken seriously by the team.

The operations manager must talk to each employee individually and should listen to them. If they are having any problems within the operations department, he needs to sort them out for them. The empathic listener will always calm down the worker and they can open up about their problems with greater confidence. If the worker can trust his manager and will start to think that the manager can take care of his problems then he can approach his manager whenever he faces a difficulty without compromising on his job. There are times when a worker looks up to his manager but when he doesn’t get a positive reaction from the manager, he becomes dejected and doesn’t works well.

The other thing that can be done to motivate the employees is to provide them with monetary benefits. The compensation policy can work quite well in this regards as workers can be given the bonuses on their efficient performances. If they are already been given bonuses, it can be increased. The wage for overtime can be increased as well, which will allow the workers to work overtime because they are assured that they are being compensated for it. With this, if they will be compensated for the number of units produced or for the higher number of orders delivered, it will allow them to work with full dedication and wholeheartedness.

In the end, it can be said that if the ABC Company would be successful to figure out the ways to make their employees happy and satisfied, they will satisfy their customers in return which could be clearly visible in the company’s top line after an increase in sales.

Performance Evaluation Form

The feedback would be received from employees twice a year in order to evaluate their performance.

Exhibits

Performance Appraisal Benefits to Students

The report would help students in acquiring the understanding of the performance appraisal system while developing their knowledge, skills and strategies in respect to motivate and encourage them, thereby increasing the productivity of company. The report contains set of recommendation that should be applied to boost the employee engagement. Also, the report helps students in writing a powerful case study, uncovering possible solutions and changes required........

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