The department of human resource in Egan’s Clothiers formulated a method which links these rewards to objective measures of performance by each department manager assigns each employee to one of five categories which are superior, very good, good, fair and poor. This performance appraisal method is not effective at all in reducing labour cost instead the productivity and performances of the employee are getting worst. 3.1
Changes in categories
According to the store manager by Paul Kelly had reported that their subordinates beating up the client in order to make a sale. This performance appraisal method proved that is not effective in handling their employees in Egan’s Clothiers. According to Peter Drucker, he said that “making good decisions is a crucial skill at every level.” Thus, the changes that I would execute if I was the human resource manager in Egan’s Clothiers are restructuring the existing performance appraisal system. Which the categories are changed to rewards (incentive) in terms of monetary based on their total sales of the each department instead of assign their employee within the five categories which are superior, very good, good, fair and poor. The self-esteem of Egan’s Clothiers employees will not be affected. For instances, every four weeks, the department calculate the profit per labour hour for every team in every store, teams which exceed a certain threshold get a bonus in their next pay check. This method is called pay for performance is generally given for specific performance results rather than simply for time worked. The job satisfaction of employees in Egan’s Clothiers could be increased. 3.2
Assign the right person into the right position
Meanwhile, the motivation of the employees would be increased and the anxiety of gaining reward is generated. These indirectly motivate the employees in Egan’s Clothiers. On the other hand, the Egan’s Clothiers management executives and staffs or equivalent who manages the...
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