Perfomance Psychology of Wal-Mart Stores Inc - Case Study Example

PERFOMANCE PSYCHOLOGY Name Institution Date It does not matter what type of an organization one is running, whether it is a profit or a nonprofit organization, a well laid out employee appraisal is good for management. An employee appraisal evaluation is vital to an organization as it helps to create a platform for employees to table questions, concerns and weakness of an organization. It also helps increase employees job satisfaction and dedication. It also proves the employer on a basis to analyses the employees and look for suitable candidates for promotion. Employee performance in any company or in institution was once considered an annual ritual done at the end of a financial year of a company in the past. As time passed, employee performance has become a very important process in companies as employee performance is directly related to a company’s growth and its returns. Employee performance analysis enables employees to point out the areas a company needs to improve for the general growth of the company and also enables employer to establish a base for rewarding great work done by employees hence motivating the employees, employee evaluation also enables an employer to find a suitable candidate for promotion, also provides a basis of knowing is a given employee should be in a certain field of work in the company, it also helps in assessing training requirements for individual employees. The major challenge that all employers and employees alike undergo in the process of analyzing the employee performance is how to evaluate employees in a free and fair manner as it involves one person judging the other which always leaves a sense of doubt and dissatisfaction whether the analysis is free from any unfair judgment. To ensure fairness in employee performance analysis, a company needs to prepare a checklist customized for the specific works of the companies that include all criteria they require to fully analyses employee performance. The criteria may include timeliness, absenteeism, cost effectiveness, hygiene, dress code, adherence to company rules and regulations. In this text I am going to discuss about the performance of Wal-Mart Stores Inc. and how they evaluate their employees in relation to general performance on how all companies should evaluate employee performance. Wal-Mart stores Inc. is an American department store which has grown to a multinational company. It deals with many chains of discount stores and warehouses. This company was founded in 1962 and has grown to the world biggest revenue and also it has grown to be the biggest private employer in the world. It is for this reason that I have decided to discuss Wal- Mart performance and how they analyze their employees and how their method of analysis of employee performance has led to its growth economically. Wal-Mart has establishes its own process of performance evaluation in which its employees are evaluated annually. Before we embark on the process of evaluation, it is important to note that Wal-Mart has come up with its own ways of workings which has led to its growth; Wal-Mart employees are not just regarded to as employees but are called associates. (Wal-Mart by Hiramalik) Wal-Mart also works under three main basic beliefs and values that have led to its success these are, respect for individual, this value is set because Wal-Mart is targeted for ordinary people and it has grown to extraordinary levels because of the ordinary fork which has led them to respect every one whether it is a customer or an associate. (Wal-Mart by Hiramalik) The second value is giving service to customers who are at Wal-Mart, the everyday customer or occasional customer who is just passing by is the reason why the company is still in business hence they strive to respect each and every customer in the store. Wal-Mart also has a value to strive for excellence, this is only achieved when one has a great passion for the work they do. Great achievements can only be made by a person who has great love for what they are working on. This subtle rules and values lead to employees who get an opportunity to work at Wal-Mart to want to strive for more psychologically and have led to the steady and sure increase in returns for wall mart. Wal-Mart employee performance evaluation is done to all managers and associates annually. Evaluation in Wal-Mart is mostly done to provide a platform for promotion of associates. Wal-Mart associates are hired at a salary that is priced higher than the minimum wage and can expect to rise in their level of employment within one year based on their performance. (Wal-Mart by Hiramalik) Performance evaluation of new employees is done twice within the first year of employment. Wal-Mart employees who have outstanding results from the two evaluations in the first year first evaluation are done after ninety days and second evaluation is done at the anniversary of the employment. (Wal-Mart by Hiramalik) Employees who are evaluated and are outstanding are given a pay rise at any given time in the course of the first year. This is done to fully motivate the new employees to put more effort in their job as more output gives more return. It also helps the employees to enjoy and value their work. There are four performance evaluation levels in Wal-Mart they are, below standard, standard, above standard and outstanding. Outstanding employees receives a pay rise at any given time of the year while above standard employees receive a pay rise at the ninety day evaluation and also at the annual evaluation. All employees in Wal-Mart are required to be in their current position for six months before any promotion is given. Promotions are also given according to performance ratings. (Wal-Mart by Hiramalik) Performance ratings in Wal-Mart provides a basis for taking different actions on the employees, actions can range from demotion, reduction of salary, being given a warning of due to nonperformance to promotion, being given awards and recommended to further levels of employment which can lead to a very big impact to the associate career. Due to all this consequences and changes every associate whether a manger, cashier, supervisor or an associate in hospitality field takes performance evaluation very seriously. The first questions asked in a Wal-Mart collogue performance evaluation are to discuss a colleague job performance based on individual evaluation based on position requirements and achievement goals established in the beginning of a financial year. Wal-Mart uses that type of performance as it is customized for them and works for that particular field of work in their company. The united stated government has however come up with a general performance that all companies should use. This performance should be applied to every company and has been generalized and laid down to an eight step that should help every employer to follow. These guidelines for performance not only promote achieving organizational goals but also meet regulatory requirements that are in accordance to the United States federal laws. The steps provided are meant to measure employee’s elements and capabilities and measure their behaviors while at work place and their competencies. In general, performance management is a process of planning an organizations work, setting goals, monitoring performance given, continued developing of performance, rating of the performance given and awarding exceptionally good performance. The first step in coming up with a general performance is looking at the overall picture in a given organization. (The Government Performance and Results Act of 1993) requires all organization to come up with an objective for an organization, a quantifiable and measurable performance. The government performance and results act also requires an organization or company to come up with an annual performance plan that sets outs measurable goals that should be accomplished d at the end of a financial year. These set goals enable one to be able to measure employee’s performance effectively. The other question that is in the performance of a Wal-Mart employee evaluation is if there is any exceptional performance of an employee that should be noted in particular. This can be customer service persuasion to buy a particular product or customers requesting a particular employee while in the store. In general performance an organization is evaluated by determining the work unit and its accomplishments. Work units are the smallest organizational group of employees in a company. A work unit can comprise of 5 to 20 employees. This group of employees can be permanent or temporary but are required to work as a team. A work unit performance can be based on goals achieving, this is based on organization that have clearest goals and objectives.it can also be based on customer focus. This is also meant for companies that are focused on customer care. Performance of work unit is based on how well the work unit tends to the customers. A work unit performance can also be based on workflow. This is mostly for companies that work on physical work for their client this work can be construction. Work unit performance measures performance of a unit in completing given work like laying foundation of a building, painting completion and similar work completion In Wal-Mart another question that is used in evaluating performance is areas of performance needing more attention or improvement. The third step followed in making a general performance is determining individual accomplishments that support work unit goals. This is mostly individual responsibilities of an employee in a group. These responsibilities must be directly related to group results and expectation. Did an employee fulfill his responsibility to the group for it to fulfill its expectation? For a group to accomplish its expectation each employee must fulfill his or her responsibility, it’s like building a puzzle, each employee is a missing part of the puzzle that must be brought together. Performance is measured on employee according to their contribution to the group. Evaluation in Wal-Mart also includes individual expectations and goals of an employee while working in the store. General performance is made by converting expected accomplishments into performance elements indicating type and priority. All employees should have at least one critical element in their work. Critical elements should enable an employer to measure performance of an individual employee. Supervisors or managers are held responsible for the product or services given by a work unit. The fifth step in building a general performance for a company is determining work unit and individual measures. Measures are grades given to access how well work units and employees provided expected products or services in an organization. The general measures that should be considered are are quality of output given, how much time an employee took to give certain results, how much money an employee saved while providing a given product or service and also how much work the unit work or employee produced in a given time. The sixth step to a general performance of an organization is to develop work unit and individual standards. Performance standards are management approved expression for performance threshold; requirements or expectations.Perfomance standards should range from fully successful, standard, acceptable or unacceptable The seventh step is determining a specific way on how to measure performance of an employee. It involves monitoring employees, measuring their output and giving the feedback back to the employees. This involves determining which data to collect for each performance element, determine what time the data should be collected, whether monthly, weekly annually, reviewing existing reports and creating tables and graphs to design a feedback process. The feedback should be specific to all the fields intended for the employer, it’s should also be on time and in a manner that is best suited to improve employee performance. The eighth and final step is checking the performance plan to ensure that the critical elements are truly essential in the organization, the range of acceptability in an organization in clear and well laid out, the standards set for the employees are attainable, the employees can clearly understand what is expected of them, and also check whether the standards set are flexible. With these steps any organization can come up with the general performance that should be used in a company or an organization. Wal-Mart has simplified its performance review based on their organization and the business they deal with. The general steps of performance that should be followed are long and well laid out however most companies simplify them and work with what works best for them. References Arminio, J., & Creamer, D.G. (2001). What quality supervisors say about quality supervision. College Student Affairs Journal, 21(1), 35-44. Barr, M.J., and Associates (1993). The handbook of student affairs administration. San Francisco: Jossey-Bass Publishers. Lopez, F.M. (1968). Evaluating employee performance. Chicago, Illinois: Public Personnel Association. Pulakos, E.D. (2003). Ratings of job performance. Chapter 11 in Applied measurement methods in industrial psychology. Davies-Black Publishing: Palo Alto, California. . Read More

In this text I am going to discuss about the performance of Wal-Mart Stores Inc. and how they evaluate their employees in relation to general performance on how all companies should evaluate employee performance. Wal-Mart stores Inc. is an American department store which has grown to a multinational company. It deals with many chains of discount stores and warehouses. This company was founded in 1962 and has grown to the world biggest revenue and also it has grown to be the biggest private employer in the world.

It is for this reason that I have decided to discuss Wal- Mart performance and how they analyze their employees and how their method of analysis of employee performance has led to its growth economically. Wal-Mart has establishes its own process of performance evaluation in which its employees are evaluated annually. Before we embark on the process of evaluation, it is important to note that Wal-Mart has come up with its own ways of workings which has led to its growth; Wal-Mart employees are not just regarded to as employees but are called associates.

(Wal-Mart by Hiramalik) Wal-Mart also works under three main basic beliefs and values that have led to its success these are, respect for individual, this value is set because Wal-Mart is targeted for ordinary people and it has grown to extraordinary levels because of the ordinary fork which has led them to respect every one whether it is a customer or an associate. (Wal-Mart by Hiramalik) The second value is giving service to customers who are at Wal-Mart, the everyday customer or occasional customer who is just passing by is the reason why the company is still in business hence they strive to respect each and every customer in the store.

Wal-Mart also has a value to strive for excellence, this is only achieved when one has a great passion for the work they do. Great achievements can only be made by a person who has great love for what they are working on. This subtle rules and values lead to employees who get an opportunity to work at Wal-Mart to want to strive for more psychologically and have led to the steady and sure increase in returns for wall mart. Wal-Mart employee performance evaluation is done to all managers and associates annually.

Evaluation in Wal-Mart is mostly done to provide a platform for promotion of associates. Wal-Mart associates are hired at a salary that is priced higher than the minimum wage and can expect to rise in their level of employment within one year based on their performance. (Wal-Mart by Hiramalik) Performance evaluation of new employees is done twice within the first year of employment. Wal-Mart employees who have outstanding results from the two evaluations in the first year first evaluation are done after ninety days and second evaluation is done at the anniversary of the employment.

(Wal-Mart by Hiramalik) Employees who are evaluated and are outstanding are given a pay rise at any given time in the course of the first year. This is done to fully motivate the new employees to put more effort in their job as more output gives more return. It also helps the employees to enjoy and value their work. There are four performance evaluation levels in Wal-Mart they are, below standard, standard, above standard and outstanding. Outstanding employees receives a pay rise at any given time of the year while above standard employees receive a pay rise at the ninety day evaluation and also at the annual evaluation.

All employees in Wal-Mart are required to be in their current position for six months before any promotion is given. Promotions are also given according to performance ratings. (Wal-Mart by Hiramalik) Performance ratings in Wal-Mart provides a basis for taking different actions on the employees, actions can range from demotion, reduction of salary, being given a warning of due to nonperformance to promotion, being given awards and recommended to further levels of employment which can lead to a very big impact to the associate career.

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