Unit 7 Developing and Managing Performance Assignment Answer

Introduction - Developing and Managing Performance

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Executive Summary

An appraisal system should be chosen based on the needs and objectives of the organisation. A proper analysis should be done prior to choosing any appraisal system. Organisations are continually looking for approaches to get their representatives to feel aroused and perform with most extreme energy and eagerness. For that reason, they are receiving sure evaluation framework so as to enhance the hierarchical and workers' execution.A legitimate examination ought to be done earlier picking any evaluation framework. In this report, the IPRP examination framework will be basically investigated, wherein the points of interest and impediments will be discussed. Likewise, the IPRP plot has certain hindrances that influence its viability that will likewise be talked about in here alongside a few suggestions. Furthermore, a concise exchange on gathering related examination framework will likewise be represented. There are a few recommendations that are additionally given in this report.

Organisations are always seeking ways to get their employees to feel motivated and perform with utmost zeal and enthusiasm. For that purpose, they are adopting certain appraisal system in order to improve the organisational and employees' performance. An appraisal system should be chosen based on the needs and objectives of the organisation. A proper analysis should be done prior to choosing any appraisal system. In this report, the IPRP appraisal system will be critically analysed, wherein the advantages and disadvantages will be talked about. In addition to this, the IPRP scheme has certain barriers that affect its effectiveness that will also be discussed here along with some recommendations. In addition to this, a brief discussion on group-related appraisal system will also be illustrated. There are some attachments that are also provided in this document based on the case study provided.

Overview of the Appraisal System and Its Importance

Performance appraisal is a sort of formal system that aims at evaluating and reviewing the evaluation of employees working individually or as a part of a team. The top-managers consider performance appraisal as a fundamental to the performance management. Individual Performance Related Pay (IPRP) is one of the widely used performance appraisal systems that is based on financial rewards to the workers whose performance meets the set organisational standards. In simple words, this is the method, wherein the organisation link the progression of monthly salary based on the assessment of individual performance (Bernardin and Wiatrowski, 2013). This system is widely accepted in those organisation where the performance of the employees cannot be monitored based on the accomplishment of target or output. As per the given case study of Wellton Hospital, the employees are demotivated by their work and the manager's approach. If the manager's approach is linked to the monetary reward, then this would help in encouraging staff members to give quality services and performance, thereby improving the organisational performance.

According to Sarkarand Sarkar, (2016), the objectives of the IPRP should be made clear to each and every staff member and it should be specific. The attributes of the appraisal system should match with the job description of the employee while evaluating the performance. For instance, in Wellton Hospital, every care employee needs to collect the data regarding every patient in order to carry out treatment and provide healthcare facilities. Based on the quality of services provided by the employees will help the management to analyse their performance.

Performance appraisal system has many uses for the organisation:-

• Assist in decision-making: Performance appraisal can also be used byWellton Hospital for evaluating the effectiveness of the individuals, team, and department. By considering the data gathered in the due process, organisation can make decision regarding the skill gap and the need of training for the staff on regular basis (Pichler, 2012).
• Human Resource Planning:The performance appraisal can be very useful in human resource planning. The data collected from the appraisal process will help the HR managers to determine the potential and weaknesses of each employee. This would help them in allocating task, promoting, demoting, transferring, and terminating the staff member.
• Determining training needs:Wellton hospital has clerk and supporting staff that are working under the waiting list manager. As given in the case study, the staff makes certain mistakes. Therefore, with the help of the appraisal system, it is important to identify the areas where they make mistakes. The management can determine the need of providing training.
• Promotion:the senior management of Wellton Hospital can make use of appraisal as an instrument to decide the promotion of employees based on criteria, such as meeting the expectations, following standards, customer dealing, and satisfaction.

Characteristics of Effective and Ineffective Appraisal System

Effective Appraisal System

The major qualities of effective appraisal design include:-

• Clear Objectives:For any appraisal system to be effective, its objectives should be cleared. Employees should understand them and act according to the marking criteria.
• Reliability:The effective appraisal system helps in generating the reliable information about the employees. Moreover, the data consistency will further improve the decision-making process.
• Well-defined:The main quality of an efficient team is that they are well-defined and employees are aware of each and every aspect of the design.
• Initiates Follow-up:One of the crucial quality of an effective appraisal system is that it initiates the follow up in order to fulfil the desired criteria and objectives. It also helps

Ineffective Appraisal Design

• Lack of transparency:Organisation should take care of the proper transparency in the appraisal system. The criteria should be cleared to the employees in order to build their trust in the appraisal system. Otherwise, the system will be criticised for demotivating the employees.
• Lack of Clarity:All the parameters for analysing the performance should be cleared to the employees. Ineffective appraisal designs are not clearly informed and explained to the employees.
• Heavy workload:High performance does not mean increasing the workload on the employee that further results in burnout. Hence, it is important for the Wellton’s management to take care of the workload with quality.

Components of High-Performance Work System

The characteristics of High-Performance working environment has been defined below:-

• Link with Culture: The organisational culture should support the individual values of the care members working at Wellton. Culture plays a significant role in influencing the perception of the employee and their development. Organisation should focus on promoting a high-performance working culture in order to make the staff to perform better and fulfil the expectation of the organisation (Peretz and Fried, 2012).
• Job Infrastructure:The facilities and working infrastructure provided to the employees should be based on the needs of the care workers and they should support them to achieve high performance. In addition to this, Wellton hospital should try to provide training and development opportunities based on the performance of the employee and should provide the good infrastructure for self-learning and improvement as well.

Advantages of the IPRP Appraisal System

Based on the IPRP appraisal systems, the manager of Wellton Hospital can be able to set goals and define objectives for the staff members and the team that will assist in improving the productivity of individuals and organisation. It will motivate the employees to hone their existing skills in order to prove the management that they are valuable and this would help them in getting a promotion. For instance, if the manager formulates an organisational goal that every staff member will be analysed based on the quality of services provided by them to the patients as per the proposed way, then this would motivate them to work hard for the incentives. This would help in establishing a well-organised and well-controlled workplace system. It is also very useful in identifying the individual with poor performance and organisation can also determine the communication gap. The advantages of the IPRP system is that it increases the satisfaction of workers from their work and organisation. It increases the employee retention rate and such highly motivated employees are easy to administer and control (Peretz and Fried, 2012). This would ultimately lead to improvement of organisational productivity. Furthermore, it would help Wellton Hospital to establish a performance-based increment culture and motivates new joiners to achieve the organisational goals for incentives.

Disadvantages of IPRP Appraisal System

One issue that is often related to the IPRP is lack of transparency in providing the incentives to the employees. This severely affects the morale of the workers and demotivates them toward their work. It has also been noticed that incentives are often given based on the quantity of work carried out by an employee. This makes them work on their output quantity and that result in a decrease in the quality of work and services they provide to the patient. The incentive plans are based on the organisational goals that might conflict the individual’s goals. This would demotivate him/her (Armstrong, et.al, 2014). Such incentive plans cannot be effective in an organisation where the work is carried out by the team as the incentives come for the whole team. In addition to this, the performance-based incentives increase the workload on the manager as they need to gather and record the performance related data of employees. In addition to this, the organisation might face problem in deciding the equal pay policies for the Wellton Hospital. IPRP system would help in paying the employees as per the performance of the employees based on quantity but demotivates those who focus on quality (Child, 2015).

Barriers to the Implementation of the IPRP System

Employees may get demotivated when their expectations are not met. Employees can walk an extra mile for the organisation if they see that their efforts are being rewarded. On the other hand, if the organisation fails in doing so, then this would demotivate them. There are many barriers to the implementation of individual IPRP system (Akhter, et.al, 2016).

• Poor Communication with Workers: Poor communication within the organisation might directly affect the motivation and inspiration of the employees. It is the duty of the manager to clearly communicate the organisational policies, incentive criteria, and appraisal plans. This would be very helpful in dealing with the demoralised employee problem as an organisation can communicate the reward policies and system to the employees through some well-established communication channel.
• Under-developed strategy: One of the major challenges for the organisation is the implementation of the appraisal plan when it is fully developed. If in any case, the organisation implement an underdeveloped appraisal strategy, then it will not only affect the organisation but also the employees. The strategy should clearly highlight the financial goals, benefits, incentives, and time of bonus delivery (Armstrong, et.al, 2014).
• Employee Behaviour: Many a time it happens that the workers are not accepting the performance evaluation plan due to any reason bothering them. This reduces the effectiveness of the appraisal system. It is important for Wellton Hospital to communicate the plan to the employees and make necessary changes after a thorough discussion. The plan should not promote the quantity over quality. In fact, there should be a right balance between the two.
• Poor Employee Performance-Evaluation: The performance evaluation is the cumbersome and time-consuming process and it required top-notch evaluation skills. Wellton Hospital management should understand that the evaluation process should go parallel with the compensation plan. A poor performance evaluation plan contains those criteria that are meaningless and are very subjective.

Appraisal discussions and performance management in Wellton Hospital

The manager should back the plans for the incentives with some well-structured and sound strategy. It should be aligned with the organisational goals and strategy in order to become effective. In addition to this, it should also ensure that the goals of the reward system should sync with business objectives (Akhter, et.al, 2016). In order to bring more transparency in the appraisal system, the organisation should spell out the parameters that would be considered in the evaluation of the performance. Employees once understand the criteria, they will focus on those parameters (Alonso-Alonso, et.al, 2015). It is very important for the organisation to incentivise the right behaviour. Not only with the increment in pay, but can organisation also reward them with gifts or promotion. The last but not the least, it is advised to the Wellton Hospital to make use of mix strategy for incentives instead of just one. As this is already discussed that there are three types of such programs, namely individual incentive programs, organisation-based program, and team-based incentives programs.

Conclusion

The overall discussion was done on IPRP system that could be implemented in the Wellton Hospital. From the above examination, it is been viewed as that reward and incentives inspire and urge the staff to meet the standards. The report has given the data about the IPRP for enhancing the execution of staff and keeps up the focused workplace. Moreover, it has examined the issues that are impacting the structure and execution of IPRP. In the following part, the report has given brief data about execution examination and basic assessment of segments of elite work framework.

Appraisal Documents

Document 1: Appraisal Preparation

Document 2: Feedback Sheet

Document 3: Appraisal Form

1. Review: How well has the manager met the objectives set at their last meeting? Explain why this rating has been given.

2. Going forward: What objectives have you agreed the manager should achieve by your next meeting?

3. Support: Agree on learning and development support required to achieve objectives

4. Career Aspirations: Record discussion about appraises future career direction

5. Comments

1. Assessment

References

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• Armstrong, C.S., Ittner, C.D. and Larcker, D.F., 2014. An Exploratory Investigation of the Determinants and Rating Implications of Performance Appraisal Plan Characteristics.
• Bernardin, H.J. and Wiatrowski, M., 2013. Performance appraisal.Psychology and Policing, 257.
• Child, J., 2015. Organization: contemporary principles and practice. John Wiley & Sons.
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• Manning, J., Reynolds, G., Saygin, Z.M., Hofmann, S.G., Pollack, M., Gabrieli, J.D., and Whitfield-Gabrieli, S., 2015. Altered resting-state functional connectivity of the frontal-striatal reward system in social anxiety disorder.PloS one, 10(4), p.e0125286.
• Marqués-Iturria, I., Scholtens, L.H., Garolera, M., Pueyo, R., Garcia-Garcia, I., González-Tartiere, P., Segura, B., Junque, C., Sender-Palacios, M.J., Vernet-Vernet, M. and Sanchez-Garre, C., 2015. Affected connectivity organization of the reward system structure in obesity. NeuroImage, 111, pp.100-106.
• Peretz, H. and Fried, Y., 2012. National cultures, performance appraisal practices, and organizational absenteeism and turnover: a study across 21 countries. Journal of Applied Psychology, 97(2), p.448.
• Pichler, S., 2012. The social context of performance appraisal and appraisal reactions: A meta?analysis. Human Resource Management, 51(5), pp.709-732.
• Sarkar, A. and Sarkar, A., 2016. Is it time to do away with Annual Performance Appraisal System? Benefits and challenges ahead. Human Resource Management International Digest, 24(3), pp.7-10.