Performance Management Redesigning a Performance Appraisal System ended and focus on development of the individual rather than recording past performance Most production line supervisors have been very hostile to suggestions that this system be changed, but there is also a gorical perception that because the appraisals arc so vague, they are not of much consequence. There are also occasional complaints from supervisors who believed that their performance was acceptable, and were surprised to find that their foremen saw them as underperformers Learning objectives: Understand the diffcrcnilinethods of ruling performance Integrate performance management concepts with concepts of organizational culture Rationale: Comporucs lave dillucull docesions when il corties lo morloning cruiployee perlomanice: The more specific and individual the monitoring, the more each employee can control his or her outcomes. On the other hand, these specific individual monitoring policies can create an sir of suspicion and reduce teamwork. In this case, these problems are brought to a head by considering two a companies that are merging Questions: 1. Compare the two methods for performance appraisal on the following dimensions: a. Which would you rather receive as a performance appraisal? Why? . a b. Which do you think is more useful for the company? c. What is the biggest advantage of each system? What is the biggest problem with each system? 2. How does each performance appraisal fit the distinctive cultural profiles of the two companies Scenario 3. Design a performance appraisal form that combines the best features of both methods without increasing the number of items or making the form more difficult to complete. Knott's Automotive is a manufacturer of luxury automobiles, based primarily in the Northwest states ol Wastunglon and Oregori. Kroll's has recently bocn acquired by ils less expensive nivel, Jirn Img Cars, based in the same region. While the financial aspects of the merger have run smoothly, the administration across the companies is very different Jim Ima Cars has focused on efficiency, low production costs, and production output This focus requires that their workers be dependable and cooperative Knolls on the other hand, has kept their focus on being able to manufacture the unique luxury designs of the higher end automobiles. This means that their workers need to be more concemed with independence and attention to detail In developmental meetings between executive teams for the two stores, the training and performance management of supervisors has been identified as the primary concern it is believed that if factory foremen are all working off the same basic set of priorities and goals, there will be a bollor outcome for the lacioncs as a whole. The main job of inlorest is thc Production Line Supervisor A job description is provided in Exhibit 1 The Jim Ima philosophy for performance management centers around objeclive measurement systeins, goals linked to organizational performance and consequences for success or failure in relcrence lo slandards. An example of their appraisal Tom is provided in Lxtub2. Allhough goals IS change from year to year, the goals are identical for all supervisors in the company. Some foremen claim that this aspect of the system makes it difficult to customize goals to each individuals developmental needs, but the overall corporate philosophy is that uniform goals enhance perceptions of fairness and kocp employocs molivaled towards a common Corporate larget for performance Knoll's Automotive has a much more informal, personal style of performance appraisals. While the company does encourage foremen to take account of objective measures of success in their appraisal questions they also allow each foreman considerable latitude in determining performance goals. Performance goals are set for each individual supervisor based on previous periorinance levels. The aclual fons used by Knoll's shown in Exhibil 3, arc inuch noc operi- Exhibit I. Job Description for Production Line Supervisor Exhibit 2 Jim Ima Cars Goal Performance Fun Supervisor Name Factory Location The job of the production line supervisor involves coordinating the work and activities of others, as well as making decisions and solving problems related to production. Supervisors must direct, coordinate and review all activities within the production line. They nuust also guide and direct subordinates, plan and prioritize work activities, and monitor processes, materials, and surroundings. Tasks related to supervising staff involve providing infonuation to supervisors, co-workers, and subordinates by telephone, in written forn, e-mail, or in person, handling complainils, settling disputes, and resolving grievances and conflicts Organizational goal Performance marker Actual performance Performance goal 5% increase 5% increase 4% increase 3% incroUSC