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HR Challenge: Choosing a Performance Appraisal System

Introduction

The effectiveness of problem-solving strategies depends on the quality of appraisal systems, which depends on the degree to which they have been successfully integrated into the organizational setting (Cappelli & Canyon, 2018). As a result, achieving and addressing perfection is crucial to developing an effective business strategy. A five-tiered evaluation structure is the most effective way to ensure that all necessary goals are met.

Selection Process

Performance Appraisal Systems

Performance appraisal systems come in various types: grading, management by objective, 360-degree reviews, behavior-based appraisals, straight-ranking, and trait-based appraisals. The grading appraisal system allows the leaders to rank the skills of each employee using 1-5 or A-F. It is unreliable when independently used. A linear ranking system ranks employees from the best to the worst, assuming that the staff members share the same responsibility to the hospital. The other system is the management by objective, where the staff and leaders jointly make goals. It is a fair modern method that avoids bias through its self-awareness technique that promotes productivity. The 360-degree appraisal mainly focuses on obtaining feedback from stakeholders like clients to gauge their productivity.

Behavior and trait-based appraisals focus on employee task output and personalities, respectively. Such appraisal systems are ineffective because they could be subjective when obvious traits hide other characteristics. The hospital’s new three-level system corresponds to the linear ranking appraisal system that ranks employees from levels 1 to 3, believing that all employees are similar, which is unrealistic in a hospital work environment. Similarly, the five-level system categorizes employees from levels 1 to 5, lying under the grading appraisal system. An alternative system to ensure that all employees feel valued could be the management by objective, where the leaders and workers get to make their specialized goals based on their roles in the company.

Impact

The first option is the five-level appraisal system demonstrates the grading system as an effective way to group employees. The method would assist the hospital in maintaining its high-value staff, managing their financial responsibilities well, attracting talented individuals, and promoting vision and compliance (Sharma & Sharma, 2017). The option is disadvantageous as most people may fall under the ‘developing’ and ‘needing improvement’ level leading to untapped potential among the talented employees in the rank. It effectively spreads the 700 employees evenly through the five rank levels.

The second option is the newly adopted three-level appraisal system, whose benefits include eliminating unhealthy employee competition. The disadvantage includes low staff morale as minimal motivation is linked to it. The third alternative is the management by objectives system, which would be beneficial as it would allow the Human resources to be fully utilized, and the method has better communication. The method would need support from leadership, and in the high-demand hospital work environment, it could be challenging as it is time-consuming (DeNisi & Murphy, 2017).

In the case where the minority defers the opinion on the performance appraisal inflation system, and the management team overlooks their feedback in favor of the majority, the consequences could have lasting effects as it could lead to the loss of trust among the minority employees. It could lead to a long-lasting communication gap as some employees feel less valued than most colleagues (Daniel, 2019).

Course of Action

After considering the appraisal methods, the selected system is the five-level evaluation structure. The outcomes of the system would highly benefit the hospital as it would ensure employees felt heard, leading to higher retention, productivity, and engagement. The barrier to its effectiveness would be a generalization of employees, yet each employee might have different needs, and it could have minimal interactions between the employees and their managers (Daniel, 2019).

How the proposed HR solution contributes to organizational goals and strategies

Superior, outstanding, contributing substantively, developing, and needing improvement are the five tiers of the suggested HR solution’s evaluation scale (Cappelli & Conyon, 2018). Unlike any other method, this evaluation procedure helps the business achieve its stated objectives, making its workers more valuable. Despite being the current solution, the new three-tiered assessment method is not ideal because it demotivates most workers; this level of unreliability presents a significant obstacle that needs to be met head-on (Dessler, 2020). There must be an emphasis on quality and effective integration in light of valuable measures and concerns for success.

Success and productivity on the job are integral to the organization’s overall mission. Given the severity of the problems, top management must prioritize high-caliber responses and work to guarantee that the appropriate measures are put in place and effectively used before launching any strategy or policy action (Dessler, 2020). Empowering human resources to work tirelessly toward the setting’s goals and ensuring the appropriate tactics and strategies are put into place on an as-needed basis are both crucial. To ensure that human resources are adequate for the tasks, some policies are implemented with a particular focus on vital paths.

The combined efforts of everyone involved allowed for successfully implementing all of the suggested objectives and plans (Cappelli & Conyon, 2018). The appraisal technique is effective because it considers every employee’s unique history and skill set, which helps to propel performance levels to new heights. Discerning and assessing essential concerns that need to be implemented to help achieve the goals and objectives is all that matters in the organization (Cappelli & Conyon, 2018). Implementing the ideal procedures and necessary tactics for success relies heavily on a high-quality strategy and methodology. The best and ideal approaches must constantly adhere to integrated measures to guarantee that the correct success metrics and due merits are implemented.

When workers are unhappy with the current performance review processes, it can be difficult for the company to achieve its goals (Cappelli & Conyon, 2018). One reason it is important to prioritize quality and use the proper procedures is that employee motivation plays a part in achieving corporate goals. A successful and effective system can only be promoted with the help of the correct meter and approach, which in turn relies on fundamental metrics and critical factors. Essential and realistic measures must be taken, and proper management strategies must be used to facilitate this (Schoeneberg, 2016). Effective evaluation strategies should focus on pinpointing the best ways to track and analyze high-quality process results. Natural and appropriate methods are used to complete the job to the company’s satisfaction.

The role of the HR practitioner in advancing a proposed HR solution

Human resources professionals might improve their proposed solution by asking employees for their thoughts and concentrating on their essential needs (Dessler, 2020). A targeted and unified approach to opinion gathering is usually necessary to ensure the implementation of high-quality strategies and policies. For goals to be met and approaches to be applied effectively in the workplace, there must be an impartial and holistic evaluation method.

As a human resources professional, you can improve the recommended solution by tweaking it and checking that all the work is logged. For integrated processes to be successful, it is necessary to employ efficient interventions and vital metrics that aid in developing a targeted approach and eradicating negative circumstances (Cappelli & Conyon, 2018). By weighing the value of suggestions for change against their likelihood of success, HR departments may improve their response to problems and ensure that the steps needed to fix them are in place (Cappelli & Conyon, 2018).

Human resources are responsible for making and reinforcing expert judgments that will assist the company in overcoming its problems. Given the variety of factors and angles at play, it is crucial to establish and adhere to a solid methodology to increase the likelihood of a fruitful conclusion (Cappelli & Conyon, 2018). The HR department ensures the project runs well and takes the necessary steps to complete the essential deliverables.

Application of SHRM behavioral competencies to the process of solving an HR challenge

Society for Human Resource Management (SHRM) defines “ethics in practice” as a behavioral competency that must be used to achieve the best possible outcome in any given situation (Human Resource Management 2018). Ethical considerations are essential in developing the most important ideas and suggestions for action in every business endeavor. Integrated techniques should be established and re-applied appropriately, and the emphasis should always be on the most efficient means of achieving one’s goals (Human Resource Management 2018). Focus and vital integrations are essential in creating the ideal working environment.

Employee input is crucial to developing the best strategies and procedures for success. The consensus of the workforce is an essential factor that should be given due weight and evaluated thoroughly (Human Resource Management 2018). Whether standalone or part of a larger whole, approaches with a chance of success should always be built on the basics. Fundamental criteria, critical conditions, and observations can only be set up after the best possible measures have been taken. Professionals’ requirements for meeting various objectives often dictate the shape of an integrated practice (Human Resource Management 2018). A tremendous and fundamental measure of the SHRM behavioral competency, respect for others’ opinions, requires a weighting towards this value.

Communication as a Competency in solving the HR recruiting challenge

The appraisal system determines the performance of the employees under an agreement laid concerning the goals, future objectives, and mission, among other things surrounding an organization. They are important in that they measure achievements and shortfalls of employee performance, which sheds some light on the strategic plans and the future of an organization (“Competency model for HR,” 2016). Good mmunication should be considered for appraisal systems to be effective or yield the expected results. Communication methodology determines the accuracy of appraisal systems. Effective communication is important for managers to execute an organization’s basic duties, such as controlling, planning, and organizing. Analogously, effective communication from HR gives employees a good, positive attitude and a friendly environment through which goals and plans for an organization can be addressed for the betterment, which leads to the expansion of the organization and its success.

Appraisal systems can be improved by good communication through which the managers effectively perform their responsibilities. Effective communication forms a good foundation for planning, and this is because, when timely communicated to the manager, in case of a shortfall, the manager immediately communicates the plans to implement and improve the shortfall. On the other hand, in case of good progress, the manager can call for the employee’s promotion and an increase in salary. Organizing calls for effective communication about the progress of the tasks at hand. In order to achieve the team goals, there needs proper communication between the manager and their subordinates. Effective controlling of team goals, missions, and future goals requires written or oral communication. In addition, there is other importance of communication that inter-twins with appraisal systems, including motivation to the employees, source of information at all levels down the hierarchy, boosts an individual’s attitudes, improves socialization, and finally assists in the controlling process.

References

Cappelli, P., & Conyon, M. J. (2018). What do performance appraisals do? ILR Review, 71(1), 88–116.

Daniel, C. O. (2019). Analyzing the Concept of Performance Appraisal System on Employees Development. American Journal of Humanities and Social Sciences Research (AJHSSR)3(2), 61–68.

DeNisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of progress. Journal of applied psychology102(3), 421.

Dessler, G. (2020). Human resource management (16th ed.). New York, NY: Pearson. Available in the courtroom via the VitalSource Bookshelf link. Chapter 9, “Performance Management and Appraisal.”

Schoeneberg, W. (2016, September). The six pillars of professional power: PAMPER your way to success. Personal Excellence Essentials.

Sharma, A., & Sharma, T. (2017). HR analytics and performance appraisal system: A conceptual framework for employee performance improvement. Management Research Review40(6), 684–697.

Society for Human Resource Management. (2018). The SHRM Body of Competency and Knowledge [PDF]. Available from https://www.shrm.org

Competency model for HR. (2016). The Handbook of Competency Mapping: Understanding, Designing and Implementing Competency Models in Organizations, 240–252. https://doi.org/10.4135/9789353280352.n11

 

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