Case Study on Performance Management and Employee Movement $($ITech and Performance Appraisal$)$

ITechnology has been selling computer hardware, software, and other computer gadgets and accessories for the last $12$ years.$$ Sales are steady with total figures second only to MegaCD, the number one retailer of computer parts and accessories.$$ ITechnology has $10$ branches nationwide and the majority have sales personnel who man the stores.$$ ITechnology is owned by Rolando Velasquez and his family.$$ Because of his age however, Mr$.$ Velasquez handed the management to his daughter, Corazon, who recently graduated with a degree in HRM$.$ She is planning to pursue her MBA next year.

$$ Within a week of staying at ITech$$s office in Manila and visiting its store in nearby Glorietta, Cora found out that the sales personnel are happy and satisfied.$$ Pay increases are given every year.$$ Spot bonuses are given by her father in every branch based on observed outstanding performance every month.$$ However, Cora found out that the company did not practice performance evaluation.$$ All bonuses are based on $$observed$$ evaluation.$$ Cora did not want to take all things sitting down.$$ She believes performance evaluation is important as it would serve as basis for many major decisions in the future.

$$ She went around the store and wondered.$$ She felt that the sales personnel are happy with their work.$$ She thinks that something must be done to maintain their satisfaction.$$ They deserve to be appraised fairly.$$ Their performance should have been equally rewarded on fair measures of performance.

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WHAT WOULD YOU DO$?$

Is there really an urgency to install a performance appraisal system in ITechnology? Why or why not?

Why do you think Cora felt the need to install a performance appraisal system?

How can the installation of a performance appraisal system help in maintaining the employees$$ high morale?

How did ITech survive for the last $12$ years without a performance appraisal system?