Employee Evaluation in Consumer Durables Industry
In the organizational context, performance is usually defined as the extent to which an organizational member contributes to achieving the goals of the organization (Islam, R & Rasad, S 2006). Performance appraisal is defined as “the process of identifying, evaluating and developing the job performance of the employee in the organization, so that organizational goals and objectives are effectively achieved while, at the same time, benefiting employees in terms of recognition, receiving feedback and offering career guidance (Islam, R & Rasad, S 2006).
The employee evaluation and selection system are an important problem that can significantly affect the future competitiveness and the performance of an organization (Golec, A & Kahya, E, 2007). Wu (2005) mentions that performance measurement is a complex problem and it involves various kinds of judgment about which performance measure to use. Indeed, for any kind of evaluation, it is necessary to have a well-defined set of criteria. Evaluation scores depend upon these criteria heavily. Employee evaluation or employee performance evaluation is a process incorporated in every activity of modern business organizations. Usually, through this process, the organization evaluates how well employees perform their job when compared to a set of standards and communicates the evaluation results to those employees (Mathis & Jackson, 2007). The importance of an effective employee evaluation system is universally recognized since it can promote both the institutional development of the organization and the personal development of employees (Grigoroudis, E & Zopounidis, C 2010).
Usually, an employee evaluation system is widely used for administrating wages and salaries, giving performance feedback, and identifying individual strengths and weaknesses. As noted by Mathis and Jackson (2007), an employee evaluation has two general roles in organizations.
Ø Making administrative decisions about employees (compensation, promotion, dismissal, downsizing, layoffs).
Ø Identifying and plan employees’ growth opportunities (identify strengths or areas for growth, coach, develop career).
Evaluation Criteria
Several performance dimensions may be considered when assessing the set of employee evaluation criteria. These criteria may include the quantity, quality or timeliness of output, the presence at work, and the cooperativeness since performance evaluation focuses on how much the employees contribute to the organization (Mathis and Jackson, 2007). Figure 1.0: will emphasize the key areas of the evaluation criteria.
Figure 1.0: Evaluation Criteria
Source - (Grigoroudis, E & Zopounidis, C 2010)
Benefits of a Successful Evaluation System.
Ø Helps taking stocks of an employee’s overall performance.
Ø Enables employee to pinpoint strength and spot weakness.
Ø Provides an opportunity to motivate employee and encourage for superior performance.
Ø Lets determine any need for further training.
Ø Helps setting goals for future superior performance.
Source - (Islam, R & Rasad, S 2006)
Video 1.0 describes the whole process of employee evaluation and its benefits very briefly.
Source - Turn Key Doc, 2014
Modern business organizations evaluate the performance of their employees by examining the contribution of their personnel in achieving the assessed goals. Thus, an employee evaluation is the critical link between organizational strategies and results (Grigoroudis, E & Zopounidis, C 2010). However, developing, maintaining, and improving an employee evaluation system is a complex task, given the different alternative approaches that can be adopted, the linkage with other business functions, and the subjectivity of every evaluation process. Finally, the researchers emphasize that it is not important which method is used in an employee evaluation approach, but the key is whether managers and employees understand that the evaluation process is a means to improve the organization objectives (Grigoroudis, E & Zopounidis, C 2010).
Employee Evaluation Criteria in Consumer Durable Industry
Before 2020 Singer was carried out a traditional way of performance appraisal method. At the beginning of the year the set objectives were communicated to the employee by the supervisor. After concluding of the financial year, the given objectives were appraised with performances. If the employee has gone through all the set objectives he or she will get a good grading. Furthermore, as discussed previously, supervisor and subordinate have a formal conversation regarding personal career development and future expectations at the end of the appraisal session. In addition, based on all above, the final grading will be given.
However, very recently Singer moved their appraisal method to a system designed method, which seems like more effective than the previous one hence, after the end of every quarter the set parameters were evaluated and employee has a clear idea about his or her strengths and weaknesses when achieving the objectives. And the tasks and results are very transparent since all the data were analyzed through a computer-based system which is more reliable than the previous method.
References
Golec, A & Kahya, E 2007, A fuzzy model for competency-based employee evaluation and selection, Computers & industrial engineering.
Grigoroudis, E & Zopounidis, C 2010, Developing an Employee Evalution Management System, Financial Engineering Laboratary, Technical University of Crete.
Islam, R & Rasad, S 2006, Employee Performance Evaluation, Asia Pacific Management Review.
Mathis, R & Jackson, H 2007, Human Resource Management, 12th edition, SouthWestern College Publications.
Turn Key Doc 2014,<https://www.youtube.com/watch?v=KcGhX7Htk9U>,viewed 04/12/2020.
Wu, H 2005, A DEA approach to understanding the performance of Taiwan’s steel industries, Asia Pacific Management Review.
Hi Kanishka, when competing for talent, competition becomes a priority, recruitments provide a relatively safe option in attracting potential candidates and evaluating their qualifications in a competitive environment (Thaly, 2013).
ReplyDeleteYes Kelum, globally competitive organizations depend on the uniqueness of their human resources and the systems for managing human resources effectively to gain competitive advantages. Performance evaluation of the human resources is a vital issue in this regard (Ahmed et al, 2013).
DeleteKanishka I am in agreement with your statements in your blog post. I would like to add further that performance evaluations, which provide employers with an opportunity to assess their employees’ contributions to the organization, are essential to developing a powerful work team. Yet in some practices, physicians and practice managers put performance evaluations on the back burner, often because of the time involved and the difficulties of critiquing employees with whom they work closely (Capko,2003).
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DeleteYes Malika. In creating and implementing an appraisal system, management must determine what the performance appraisal system will be used for and then decide on the process to implement the system. The methods chosen and the instruments used to implement these methods are crucial in determining whether the organization manages its performance successfully. These appraisal methods are based on quantitative techniques which provide a precise output defining the employees’ performance (Abdullahil, 2013).
DeleteOne of the most effective evaluation ways to facilitate the selection is through the competency-based employee selection process. This type of selection is based on the idea that every position requires the job incumbent to possess certain competencies in order to perform at his or her highest level. Competencies are capability, ability or attribute that escorts to success in a particular position. Within an organization context, it includes the knowledge, skills and attributes that identify the excellent performance in a specific work process (Kahya, 2007)
ReplyDeleteAgreed Asanka, Human resources with knowledge and competencies are the key assets in assisting organizations to sustain their competitive advantage (Ahmed et al, 2013).
DeletePerformance management is one of the most important functions in HRM. In order to ensure the high-level performance of an organization, there should be proper performance monitoring. Organizations can use formal surveys, questionnaires, feedback forms, rapid appraisal methods, observation, interviews and discussions to evaluate the performance of an employee (Brown, 2001)
ReplyDeleteAgreed Shenali. Adding more to your comment that, Rasheed et al. (2011), explored various aspects of performance appraisal (PA) systems used for teachers in higher educational institutions. A combination of qualitative and quantitative research approach has been adopted which consist of a questionnaire in order to get primary data for investigating different aspects of current PA system and in-depth interviews in order to study thorough perceptions of teachers regarding PA approaches in their institution. Findings have shown that obsolete evaluation system, exclusion of students’ feedback, untrained evaluators, and decreased motivation for the process are the potential hindering factors for PA systems of the case study university.
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