Cango Third Analysis Report - Essay Example

? Cango Third Analysis Report Table of Contents Cango Third Analysis Report Table of Contents 2 Week 5 3 Clark’s Error 3 Clark’s Way Out 4 2.Clark’s Suggestion and Its Implication 4 3.360 degree Feedback 6 Week 6 7 1.Decision Making 7 2.Time Valuation 9 References 11 Week 5 1. Clark’s Error CanGo is a company, which follows the subjective measure of performance, while evaluating the performance of the employees and considering them for promotions in order to make them eligible for moving up the company hierarchy. Performance appraisals are often done by the company in regards to motivating the employees to engage, align and act in proper synchronization with regards to the company’s goals and objectives (Grubb, 2007, p. 2). The subjective measure of performance takes into account, the various influencing factors that can affect an employee’s performance. But at the same time, since they are dependent on human judgments rather than judged from the objective point of view, there is a tendency of errors. The reason for the errors can be mostly attributed to the human’s ability of judging an employee’s capability and performance (Jones, Steffy & Bray, 1991, p. 307). It can be clearly seen from the transcripts that Clark has confessed to the fact that he is having a serious problem of evaluating his subordinates on the basis of their performance while following the company’s normal scale of subjective performance evaluation. It is quite evident that while evaluating his team members, Clark is making errors related to the factors of leniency. As per the transcripts, Clark prefers to recommend employees with a higher rating on their subjective type performance appraisal rather than giving them a lower rating. This clearly highlights his erroneous evaluation of performance reports, due to his lenient nature of evaluation, while providing the subordinates and team members with a benefit of doubt. Clark’s habit of providing handling performance appraisals on the basis of benefit of doubt also highlights his ability of judging his team members abilities, while using the subjective scale of performance. Clark’s Way Out There can be a number of ways in which Clark can handle this problem while still following the company’s subjective performance appraisal system. Training In an attempt to handle this problem, Clark can opt for help from fellow managers who are working at Cango. Taking this approach of seeking help will lead to an informal form of training from his colleagues, thereby making him more efficient in the handling of the performance evaluation system of the company. Better judgment Another way to tackle his existing problem is through the fact of going for a one on one interview and feedback session for his team members with regards to the targets and assignments they have achieved. This will enable him to make an informed and well justified choice, thereby removing his option of benefit of doubt, while evaluating his team members. 2. Clark’s Suggestion and Its Implication It can be commonly said that the performance management system is done with the sole aim of motivating the employees. It involves the process of defining performance of the employees with regards to the competency required to perform the specified tasks. Performance analysis is also related to the process of determining and understanding the various factors that effectively contributes to the performance of the employees as well as managing them for the purpose of developing their skills and competencies thereby converting them to highly valued resources for the company. (http://books.google.co.in/books?id=qCZTEPI52pkC&printsec=frontcover&dq=performance+management+system&source=bl&ots=YB_a0Dlos7&sig=HEKfKSExUpmHdDu2Yvut9Rv17hk&hl=en&sa=X&ei=u5tyUKLbEOPEmAW6-YDgBQ&ved=0CEUQ6wEwAg#v=onepage&q=performance%20management%20system&f=false, p. 53) Performance management system can be either subjective or objective based in nature. Objective based performance management system increasingly brings into focus the fact regarding the quantity of work accomplished by the employee as well as the number of objectives that has been fulfilled. Subjective based performance management takes into account the variable factors that contribute to the employee’s performance for a particular period. Clark’ suggestion for a ranking system rather than a rating system may not be highly reliable in the case of evaluating the performance of the employees working in Cango. The reason behind that is the fact that Cango being a small organization, has a number of employees, whose work related roles and responsibilities are of variable nature and of various divisions, relating from marketing, HR, finance, software management etc. For a ranking kind of a system, to work perfectly and comparatively effective, it is of considerable importance to have a ranking system which is relative in nature. Also, for the purpose of perfect implementation, employees need to have a similar kind of roles and responsibilities rather than having a diversified category of organizational responsibilities. Hence, it can be said that the ranking system will not be very highly effective as compared to the already existing rating system. However, since the employees of Cango have mostly in-house roles and responsibilities, it can be said that effective performance evaluation can be done through the process of changing from subjective based evaluation style to a rather objective based evaluation style. 3. 360 degree Feedback The 360 degree feedback process increasingly takes into account, the process of taking feedback from a variety of sources in regards to an employee or a person’s behavioral, attitudinal as well as work related performances. The multiple point of collecting feedback increasingly comprises of the employee’s seniors, bosses, colleagues and subordinates as well as external and internal customers who are directly or indirectly related or associated with the employee in terms of employee’s workplace or arena of work related operations (Bhattacharyya, 2011, p. 56) The 360 degree feedback increasingly is very effective in the process of generating information and relevant feedback regarding the level of competency which includes an individual’s skills, knowledge, as well as his leadership and decision making abilities and styles. The data that is considered highly important as well as confidential for the successful evaluation of a 360 degree appraisal can be collected through the process of taking feedback through questionnaires as well as taking one on one personal interviews (Lepsinger & Lucia, 2009, pp. 11-12). In this case, it can be said that the 360 degree feedback will be quite instrumental for the proper evaluation of the employees of Cango. The organization in order to successfully evaluate the employees for performance appraisal can take into account the view points of the internal employees working in Cango. Since the number of employees is considerably small, one to one interviews can be collected for the purpose of successful evaluation of the employees. Also, outside stakeholders like distributors and suppliers can be interviewed for evaluating the employees’ abilities who are dealing with them. Week 6 1. Decision Making The process of decision making by people increasingly takes into account the various criteria which ranges from choosing the best alternative among a list of multiple alternatives that are being presented to the people within a certain period of time, with multiple other variables increasingly acting as constraints. People always focus on making the right decisions with increasingly trying to take the right choices, which will provide them with maximum amount of marginal utility as well as satisfaction as well as successive and gainful returns for monetary value. It can be increasingly said that the people in general focus on taking a rational as well as logical move while considering the importance and resultant value associated with their decisions (Cook, Noyes and Masakowski, 2007, p. 3). While taking logical and rationalized decisions, the value of decision making increasingly holds a significant value to the process of reaction time, which differs from person to person in general. Reaction time can be claimed as a highly efficient indicator for speed and effectiveness for a person’s decision making abilities (Schmidt & Wrisberg, 2008, p. 31). As per the principles and basic concepts surrounding the Economic Way of Thinking, it can be generally said that the outcomes of the decision are purely guided by the choices made by them (Heyne, Boettke & Prychitko, 2003, p.28) In terms of the economical way of thinking, it has to be increasingly mentioned that the power of substitutes that are available readily in almost every situation of life often plays a highly critical and important role during the process of people’s idea of taking decisions. People increasingly try to value out as well as evaluate the alternatives that are being present in the particular situations and focus on getting the maximum benefit out of the existing choices and alternatives. While evaluating the alternatives, people increasingly try to weigh out the opportunity cost of the alternatives besides deciding on a particular choice. Talking about my personal choice, it can be said that the process of decision making taken by me in the case of ordering a delicacy at a restaurant varies from time to time. It can be said that the decision making process is dependent on my knowledge and idea about prices regarding the restaurant’s menu list. If I am aware and comfortable with the prices, I still prefer to check the entire menu depending on my mood to try out a new delicacy. At other times, I prefer ordering my preferred delicacy while being aware of the price of the delicacy. On the other hand, while checking out a new restaurant, I simply prefer to have a look on the delicacies that can be asked for while checking out the prices as well. Hence, it can be said that the entire process of decision making is guided by the fact of cost effectiveness and related benefits that it provides to me. 2. Time Valuation Cango is a small company with a limited availability of resources ranging from finance to human power. The company in order to grow and sustain in a highly competitive market is focusing on diversification while increasingly utilizing the financial resources in a manner which generates the maximum amount of value to the firm. Talking on these lines, it can be said that the process of purchasing of airline tickets for the employees has to be guided by the economic way of decision making, since there is a shortage of financial resource availability. The priority of the business that the employee is attending should be the determining factor of whether to book cheaper flight tickets which involve a lot of stopovers or go for high priced tickets. The priority of the business in this case, needs to be evaluated from the point of view of the opportunity cost as well as the financial cost that has to be incurred by the company. If the opportunity cost is greater than the financial cost, then the ticket booking should be done in flights with less amount of stopover, thereby reducing the travel time for the concerned employee. Again, if the financial cost is greater than the opportunity cost, it has to be increasingly taken into account and the employees can be made to travel using cheaper tickets with considerable amount of stopovers. Talking about my personal choice and option evaluation process, it can be said that I prefer to judge the time value with regards to the opportunity cost as well as the financial cost that is associated with the related activity. Talking in a more specific manner, it can be said that while I am travelling business purpose, I will not mind paying up to $120 as the opportunity cost is high and it holds more value to me. In this case, I prefer to value time as an extremely crucial factor and lot of stopovers only leads to the wastage of this critical resource. While on casual trips, I will generally prefer to buy low cost tickets as time does not feature as a very critical factor in that case. References Bhattacharyya, D.K. (2011) Performance Management Systems and Strategies. India: Dorling Kindersley (India) Pvt. Ltd. Cook, M.J., Noyes, J.M. and Masakowski,Y. (2007). Decision Making in Complex Environments UK: Ashgate Publishing Ltd. Grubb, T.(2007). Performance Appraisal Reappraised: It’s Not All Positive. [Online] Retrieved from: http://scob.troy.edu/JHRE/Articles/PDF/1-1/1.pdf Heyne,P., Boettke, P. & Prychitko, D. (2003). The Economic Way Of Thinking. (10th ed) India: Pearson Education, Inc. Jones, J.W., Steffy, B.D. and Bray, D.W. (1991). Applying Psychology in Business: The Handbook for Managers and Human Resource Professionals. New York: MacMillan, Inc. Lepsinger, R. & Lucia,A.D. (2009) The Art and Science of 360 Degree Feedback.(2nd ed). USA: John Wiley & Sons, Inc. Schmidt, R.A & Wrisberg, C.A. (2008) Motor Learning and Performance: A Situation-Based Learning Approach. Australia: Human Kinetics. Read More