Performance Management at Countrywide - Essay Example

Performance Management at Countrywide Name Institution ‘ QUESTION 1 The problem with the performance appraisal at countrywide is that the institution continues to decreasing sales while the level of customer satisfaction in some branches is persistently poor. Kevin, one of the employees of countrywide has been tasked with conducting annual performance appraisal for 27 branch managers. The problems that the company continues to experience have a direct correlation with the manners in which Kevin conducts the performance appraisals in all the branches. The company has made a commitment to pay a bonus and a fixed salary to all branch managers, which depends on the review rating of their annual performance as per the results obtained by Kevin. However, Kelvin does contrary to this as he grants the branch managers a fixed bonus of only 20% despite the performance of that particular branch. As such, the bonus strategy aimed at motivating the manager has failed to achieve its intended goals, a phenomenon depicted by the decreasing sales. In addition, the managers are paid inequitable bonuses while the compliance levels in other branches were persistently poor because some employees were not equipped with ample training in the relevant financial regulations facets. Moreover, the performance appraisals processes conducted involves the use of mere questions without any thorough scrutiny analysis in each of the countrywide branches. A scenario in which Kelvin actually takes Wayne one of the branch managers out for lunch as a way of gaining information about performance of the branch and the manager further depicts Kelvin’s wrong approach to the performance appraisal process. This one incident raises numerous questions about his commitment to conduct effective performance appraisal as a key aspect in any organization’s performance and success. To conduct a performance appraisal whose efficacy will be guaranteed, Kevin should either design a performance appraisal program which he should always conform to when conducting his appraisals, identify the opportunities variables, use physical processes, social processes, and both human and computer assistance (Cardy, 2011, pp. 17-35). In the performance appraisal that was conducted with Julia, Kevin had the audacity to over look the process and insist that he was attending other meetings and letting Julia rate herself of which she was to be given the 20% bonus just like everybody else regardless of whether her rating was 5*(maximum)or 1* (minimum). This implies that Kevin does not maintain a business relationship with his managers and treats them in a not so friendly manner. This is not in line with the motivation theory, which is a Human Resource Management theory. The theory is a conceptualization that perceives employees as the reservoirs of potential talent and suggests that it is the responsibility of the management to seek ways, in which they can tap such resources (Greenberger & Heneman, 2002, p 139). Another Human Resource Management Theory that Kevin did not conform to is the employee training and development theory, known as the human resource development theory. According to the proponents of this theory, much emphasis has been made on the significance of increasing the skills of employees through both development initiatives and group-based training. The theory is widely implemented in employee training programs where the productivity of employees is directly related to the level of skills and knowledge they possess (Fandray, 2001, pp. 37-39). Kevin downplayed this aspect of employee’s qualifications and proficiency in that some branches had poorly qualified staff that lacked adequate training in the relevant fields. As a result, the compliance levels became poor in these branches, which subsequently lowered the satisfaction of customer. Performance appraisal should never be perceived as an isolated event where the managers merely give their feedbacks regarding their performance more so if the feedback is negative. Instead, employees should be given a regular and constructive feedback throughout the review period and the obtained results should be recorded for future comparisons in subsequent periods. In addition, the human resource management model encompasses diverse activities such as employee involvement, disputes and their settlements and participative management. Kevin should utilize all these in Countrywide Credit Union, as they will result in a willing and competent workforce that will help in the realization of organizational goals. The other human resource model is the environment, that stated that functions of human resource do not operate in vacuum and is influenced by both external and internal forces such as technology, politics, law and the professional conditions. QUESTION 2 Performance appraisal which is also known as performance review is a formal interaction between the manager and the employee where the employee’s performance is assessed and the manager gives a comprehensive feedback on the strengths and weaknesses observed and identifies opportunities in which the employee can professionally develop (Fandray, 2001, p. 38). Various methods of performance appraisal are explained below; Behavioral Checklist Method A behavioral checklist is essentially a rating form that contains statements, which describe the ineffective and effective job behaviors (Kleynhans, 2009, 74). In Countrywide Credit Union, I would use this method to conduct performance appraisal by gathering sales information from customers, salespersons, and trade journals, calling and discussing any complaints that may arise on the customer’s side, gathering all the facts that are relevant to the customer complaints and resolving problems to their satisfaction. This will ensure that any flaws that might be committed by the branch managers in the course of their operations will be rectified in due time. This method will be favorable, as the evaluation will be based on the individual performance of the branch managers of Countrywide without any comparison. For the performance reviews of Countrywide to be effective, I will ensure that the branch managers are well acquainted with the criteria that ought to be used for evaluation just before the review meeting. Besides, the behavioral checklist method has a list of criteria, which an employee has to work up to so as to become a diligent worker. Nevertheless, the behaviors tend to differ depending on the type of job that is being assessed. The advantages of this method are that the evaluators are asked to describe the subordinate’s behavior as opposed to evaluating. For this reason, the behavioral checklists meet less resistance from the evaluator as compared to other performance appraisal methods. It is more inclined to measuring results and behaviors by focusing only on the absolute comparative standards (Greenberger & Heneman, 2002, p 143). Everyone has strengths and weaknesses whereby skills fall on a continuum. The method therefore ensures that inflammatory language has not be used in making exaggerated statements as it rates skills on a certain scale (Tziner, Joanis & Murphy, 2000). It also avoids discrimination in the sense that all the branch managers will be evaluated on the same criteria and scale by using checklists. This enables the reviewers to evaluate employees only on a skill-by-skill base while removing any emotional bias that might go into performance reviews. The obvious disadvantage associated with behavioral checklist method is that the method calls for the investment of ample time and money in instruments construction. It is therefore time consuming and expensive and makes it almost impossible for managers to analyze, weigh and assemble statements pertaining to the characteristics of employees, behaviors and contributions.. Graphic Rating Scale The graphic rating scale is one of the most common methods of performance appraisal. The method requires an evaluator to mark on a scale the degree in which employees are demonstrating performance result, particular traits, or behavior. The rating forms used consist of a number of scales where each relates to a performance –related dimension or a specific job. The performance related dimension may include quality of work, job knowledge, or responsibility. The scale points may or may not be defined by the graphic rating scales. Characteristics of acceptable rating scales include performance dimensions that should be well defined, avoidance of abstracts that bear trait names such as integrity, loyalty, and honesty (Buzzotta, 1988, pp 40-44). I would apply this method in Countrywide Credit Union by rating the degree at which branch managers achieve certain characteristics such as punctuality and job knowledge. I will then rate the results obtained in a scale of 1 to 5 where 5 will represent an exemplary perfomnce and 1 to represent a poor performance. In the appraisal form, I will include a space for remarks where I will provide support for my ratings. The predominant advantage of this method is that it is easy to use which is why it is applied by most organizations. It is also user friendly and allows for quantitative comparisons among various branches or departments (Cardy, 2011, pp. 34-47). Moreover, quantitative rating scales helps managers to easily identify when branch managers need further training in some specific area of his work performance. The demerits are that the method makes it difficult to identify those branch managers who lie in the middle group especially when they have varying strengths and weaknesses. The rating scales also calls for different performance evaluators whose ratings may vary as some may be too strict while others are too lenient. The method therefore acquires full efficacy whenever employees and managers come to a consensus on what should be included in the evaluation criteria (Rao, 2004, pp. 44-87). 360–Degree Feedback This method involves systematic collection of data on employees’ performance, which is derived from immediate stakeholders such as customers or the supervisors. Under this method, I would conduct performance appraisals at Countrywide by interviewing all the branch managers and obtaining their complete full profile information (Cardy, 2011, p. 9). In Countrywide Credit Union, this method will support performance culture by reinforcing the link between behaviors, competencies, and values that are required for a certain job performance. It will also provide a transparent and fair process that will entrench an open culture, which values feedback. The main advantages of this method is that it accords the multi-source feedback which measures the subjectivity areas of employees such as leaderships skills and character while will allow the Human Resource manager to take care of the employees development (Linman, n.d). The method has also been found as equally useful in measuring customer satisfaction, interpersonal skills, and team building skills (Longenecker & Fink, 1999). On the flip side, the drawbacks associated with the 360-degree feedback method is that it can be both intimidating and threatening at times to obtain feedback from multiple sources at the same time. Moreover, multiple raters and stakeholders might be less adept at providing a feedback, which is balanced, and objective. The average standards of this method may disregard the uniqueness and the differing aspects of the various circumstances in which the branch managers may be exposed to as the information obtained in this method may unduly project someone in bad or good light in comparison with others (Rao, 2004, pp. 46). It is also dishonest and creates difficulties and complications in the consistent interpretation almost rendered it almost impossible in the rendering of consistent interpretation. As a result, the employees may not want to offer genuine feedback to their supervisors. I would also apply this method in Countrywide Credit Union to make some general personnel decisions e.g. promotions, pay increases, terminations as well as probationary status. Management by Objectives This method falls under the modern approach of conducting performance appraisals. In this method, the branch managers and the employees agree on some obtainable and specific goals within a certain predetermined deadline. The progress towards these goals is then periodically discussed. Under this method, the appraiser can define both failure and success quite easily. I would utilize this method in Countrywide Credit Union by setting the organizational goals of Countrywide (Findley, Amsler & Ingram, 1999). I would also set the departmental goals where the various branch managers would be required to set goals for their corresponding branches and perform the appraisal process. I would discuss and allocate the departmental goals of the organization by ensuring all the branch managers of countrywide discuss their branch goals with all their subordinates and come up with strategies under which every employee will contribute to the attaining of those goals (Rao, 2004, pp. 66). The rating usually awarded in this method is obtained by using the formula; Rating = Performance/ Objective & Goals. The advantages of this method are that the goal setting of the organization takes place with lively participation of the personnel that is concerned (Arthur, 2008). In addition, the goals and objectives are predetermined invariably and expressed as quantitative terms because there is no misconception or ambiguity at any point in time. These remains to be the most versatile and transparent exercise that is extensively used in organizations (Dutton, 2001, p 76). The demerits of the management by objectives method is that the qualitative performance dimensions are mostly less emphasized. Additionally, absence of express acceptance of objectives and goals by the concerned personnel has their willingness and consent taken for granted. Conclusion For Countrywide Credit Union, the most appropriate performance appraisal would be the Behavioral checklist method because the method only focuses on comparative standards. The method will also avoid discrimination on the branch managers as it uses checklists, which enable the reviewers to evaluate the branch members only on skill-by-skill bases. This will rule out any emotional bias that might come into play. References Appraisal with regard to goal properties, goal perception and rate satisfaction. Group and Arthur, D. (2008). Performance appraisals: Strategies for success. New York: American Management Association. Buzzotta, V. R. (1988). Improve your performance appraisal. Management Review 77, 40-44. 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Building better theory: Time and the specification of National Productivity Review, winter 2000, 39-42. Organization Management,25(2), 175-190. Rao, T. V. (2004). Performance management and appraisal systems: HR tools for global competitiveness. New Delhi: Response Books. Tziner, A., Joanis, C. & Murphy, K. R. (2000). A comparison of three methods of performance When things happen, The Academy of Management Review, October 2001, 26. Read More