Management - University of Western Australia - Extract Engineering’s Performance Management Process - Case Study Assessment Answer

Case Study Assessment Answer

• Position descriptions for most of the job roles are out of date – the business has grown significantly over the past five years and tasks, roles and responsibilities have evolved as the business has grown. The performance indicators used are also often inconsistent with the job task information in the position descriptions. 
• Performance appraisal meetings are not being held when and how they should be according to the current organisational requirements. Both the managers and employees have complained that the performance appraisal process is cumbersome, embedded in the past, and not forward-looking (1.4) It’s time-consuming and there’s not enough time to complete the process. It’s seen as just another people management task in an already crowded schedule. HR currently spends a lot of time chasing up managers to get them to complete the performance appraisals for their direct reports.

• Managers have real concerns about the inability of the current performance management system to effectively deal with underperforming employees, and at the other end of the spectrum, the system doesn’t provide the opportunity for managers to properly acknowledge great work performance. 
• Other than a brief written guide on ‘how to appraise performance’, there has been no training provided to managers about how to conduct performance appraisals and manage performance on an ongoing basis. No formal performance management training has been provided to employees – they’re given a copy of the performance appraisal form approximately three weeks before their performance appraisal meeting with their direct manager and asked to complete it (including self-rating their performance against each of the performance indicators) and bring it along to the meeting for discussion with their manager. 
• Managers are asked to rate employees for each performance area/category using a scale from 1 (unacceptable) to 5 (exceptional). They are also advised by HR to keep a file on each employee and make note of examples of good or poor performance during the year, which can then be used to support their ratings when completing the appraisal form. An overall rating of 1 or 5 can only be given if documentation exists to support the rating.

• Most of the managers are not diligent about recording specific performance examples in employee files and believe that it’s too time-consuming to write up all of the necessary information. Managers generally provide their direct reports with informal feedback on the job. Not much attention is given to the under-performing employees other than to more closely monitor their activities and to make sure that they’re completing their work tasks to the best of their ability. 
• Employees generally do not have a high opinion of the performance appraisal process as they don’t see any real outcomes or benefits associated with the process. Learning and development needs are addressed independently and on an ad hoc basis when a defined training need arises, and there is no direct link between performance and pay. 
• Some employees have complained about their performance appraisal rating and feedback – they often complain that their annual performance appraisal meeting is the first time they’ve heard about any performance issues (substandard performance) and that if their manager had brought the matter to their attention earlier/when it occurred this would have provided them with opportunity to address the issue. 
• When an employee complains about their performance rating/feedback, managers often feel that they don’t have the evidence they need to support their ratings. So, if a direct report complains about their performance appraisal process and outcomes, managers generally just advise the employee that they’ll note their complaint/lack of agreement on the performance appraisal form. 

• Encourage regular performance check-ins between managers and their direct reports, and that it is focused as much on performance development as it is on performance review 
• Have the ability to review employee skill or performance gaps and consider options for performance development 

• Include a rewards and incentive scheme to reward good performance 
• Include a process to manage under-performing employees 
• Align with and support existing people management policies and procedures 
• Include suitable training to ensure understanding and effective use of the performance management process 
• Be promoted to managers and staff to ensure understanding and effective use of the organisation’s performance management process 
• Include feedback mechanisms for evaluation of the revised/new performance management process to ensure its effectiveness.

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