Highlights
Keeping Good People: Staffing
Given the current labor market, the costs of recruiting and hiring are becoming more apparent than ever to organizations. After going through the difficulty of attracting and hiring talented people, business do not want to lose them to competitions. Difficulty is staffing has created an emphasis on retaining human resources.
Applied Industrial Technologies, a Cleveland-based business, has taken steps to reduce turnover. Specifically, they have made self-fulfillment the process of helping each person reach their full potential a central value in the organization. According to CEO John Dann miller, the company views its self-fulfillment mission as important as salary and benefits in motivating talented employees. He attributes a doubling in revenues over the past eight years and a turnover rate below the industry average to the self-fulfillment program. Here is a summary of Applied Industrial’s self-fulfillment strategy:
QUESTIONS
Performance Appraisal
Unique Funds Ltd. is a reputed finance company having 10 branches in different parts of the country. Its staff includes 290 operative employees and 70 executives. The company has a performance rating plan under which the staff members are rated at the end of each financial year by a committee of two executives by means of graphic scale. The qualities considered are: Responsibilities, initiative, dependability, leadership potential, cooperative attitude and community service. After the performance is evaluated, the ratings are discussed with the concerned employees by their immediate boss and are used to counsel them and arrange further training for them. The ratings are also used for granting or with holding of increments and promoting or meritorious staff.
Recently, two employees working at the Head Office have been denied annual increments due to comparatively low ratings. They have made a representation to the Chief Executive of the company expressing their dissatisfaction with the appraisal system and insisting that community service is not a part of their job and it should not influence their ratings. The employees seem to organize a union and demand that annual increments should be granted automatically.
The Chief Executive feels that performance appraised is a dangerous source of friction and so it should be discontinued altogether.
QUESTIONS
On what lines would you recommend modifications in the performance appraisal system of the company?
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