Case study

Case: ABC Technology Group describes itself as a high-tech enterprise specializing in the R&D and manufacture of technological products and solutions that bring convenience to peoples everyday lives. The company employs the connecting the dots strategy to help bring this vision to fruition. This strategy consists of research and development as well as innovation and expansion to aid their customers and partners in integrating technology into every area of their lives. This company group houses over one million employees, and is the largest manufacturer in the electronics technology industry, with locations across the globe. This case focuses on the logistics division of the company. The strategic emphasis of this division is efficiency and service quality.

In this division, employee performance is appraised semi-annually. The performance evaluation consists of the completion of an appraisal form, followed by a supervisor-subordinate face-to-face meeting to discuss the results of the appraisal. The total evaluation period is 3 to 5 days long. In this company group, the results approach is commonly used, which is consistent with the companys focuses on the achievement, capability, and competence of employees. The same can be said for the logistics division, with the exception that the department gives approximately 20% of its performance measurement focusing on behaviors. Each employee must receive a minimum of 70% on their performance appraisal in order to pass the evaluation. Should an employee receive a score of 60%-69%, a meeting with the supervisor is arranged, and a score below 60% indicates that the employee must be suspended. However, those who receive a score of 90% or above (about 10% of the employees) will obtain very attractive salary increments, bonuses, and promotion opportunities.

The performance evaluation consists of both self-appraisal and supervisor ratings. 20%-30% of the assessment is based on self-evaluation, showing that the division values the opinions of subordinates and giving their self-insight and critique of their performance a significant amount of weight when analyzing and creating the final evaluation score. This practice also fosters a more balanced, well-rounded evaluation, and provides for greater acceptance of final evaluation results from employees. Furthermore, the final step in the 3 performance appraisal process includes a meeting between the supervisor and the subordinate that allows supervisors to give verbal feedback to subordinates about evaluation results. This creates a trusting, open relationship between supervisors and subordinates, which allows appraisal results to be more readily understood and accepted, as well as frustrations to be expressed.

Despite the merits mentioned above, the performance management systems and practices have several problems. First, the appraisal form is designed in November. However, the particular job that this form is meant to evaluate for each employee does not end until December. As a result, appraisal forms and their criteria are designed for jobs that employees have yet to have the chance to complete. Second, the criteria measuring behaviors in the forms are subjective and based on the supervisor's opinions. The definitions of the evaluation criteria are not clear. Supervisors are not well trained in performance evaluation. Third, the division requires that at least 5% of the employees receive a performance evaluation score of below 60%, meaning that these employees are subject to suspension. This practice creates a lot of stress on employees and is also taxing on company resources. Each time an employee is suspended, the department must hire new employees for replacement. Usually, it is not easy to hire suitable and qualified new employees timely. Many departments in this division must work in an understaffing situation, further worsening the high work stress problem.

Overall, the division would benefit from shifting an evaluative focus to a developmental focus. This change would help supervisors understand how to improve the performance of employees, assist employees in having better task completion and performance evaluations in the future, and make the performance management for the division more efficient and effective.

Question:

Already posted question 1 in another post, so please answer question 2 is fine.

(FYI, Q1. Analyze the performance management of the logistics division of ABC Technology Group in terms of (1) measurement approach(es) and (2) appraiser(s). Evaluate the strengths and weaknesses/problems of the system and practices in this division)

Q 2. Provide practical suggestions to the Human Resource Department of this division to help it address the performance management weaknesses/problems you identified in Question 1.