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The Performance Appraisal System and Analysis: A Case Study
Barbara A. Alston, Nova Southeastern University Dr. Eleanor Marschke, Nova Southeastern University

Barbara A. Alston (Contact Person) H. Wayne Huizenga School of Business and Entrepreneurship Nova Southeastern University 624 Pensacola Lane Lake Mary, FL 32746 Email: balston@nova.edu Phone: (407) 333-1338 x22600 Dr. Eleanor Marschke H. Wayne Huizenga School of Business and Entrepreneurship Nova Southeastern University 1470 NW 70th Lane Margate, FL 33063 Email: spiriteducator1@aol.com Phone: (954) 979-6993

Submitted to: Global Academy of Business & Economic Research GABERIC.org September 17-19, 2008 Orlando, FL July 31, 2008

The Performance Appraisal System and Analysis: A Case Study

The Performance Appraisal System and Analysis: A Case Study

Abstract Researchers, Barbara Alston and Dr. Eleanor Marschke conducted an investigative performance appraisal system audit for the position of Administrative Specialist for EB Payroll and Human Resource Services, Inc.’s (a fictitious name) branch location in Seattle, Washington. The Administrative Supervisor gave oral authorization for this audit team to conduct this research. The current performance appraisal system in the Administrative Department received a grade of “D”, below standard, as assessed with the established criteria and compared with other departments within the organization as outlined in the pages to follow.

INTRODUCTION EB Payroll and Human Resource Services, Inc. is a well run company with management that truly believes that the employees are their most important asset. In order to create a sense of teamwork and commitment as well as maintain a more efficient Administrative Department, this audit includes the following summary of recommendations with explicit details outlined throughout this audit: 1. Ask the Administrative Specialist to provide feedback for their review. 2. Implement and create a 30, 60, 90 day appraisal policy for new hires in the Administrative Department to assess current level of productivity as well as in preparation for their six month and annual appraisal. 3. Administrative personnel should be given the same opportunities as other employees as it relates to internal promotions and transfers. 4. As change occurs within the organization, communication must be swift and effective. System or process changes must be communicated quickly and efficiently to staff. 5. The format of the Administrative Specialist performance review should coincide with the Payroll Specialist review (currently in place), with detailed statistical data measured against specific goals and performance level expectations. 6. An appeals policy must be instated to require every employee, regardless of the position, in the event of an appeal, to bring concerns and or suggestions to the attention of management. The Importance of Performance Management

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The Performance Appraisal System and Analysis: A Case Study

Performance Management is an organization’s capacity or capability of developing the human resources of an organization to achieve their goals to not only keep up with the competition but to outshine their competitors. Cascio and Aquinis (2005) define performance management as a continuous process of attracting, hiring, motivating and assessing the performance of individuals in an organization in achieving their goals. Both Cascio and Aquinis (2005) and Grote (2002) state the performance appraisal is defined as the process in which an organization defines responsibilities and assesses the performance of individuals or teams as a measure against performance standards set by the organization. The performance appraisal is a communication device for which managers and or supervisors can assess an employee’s performance within the organization towards the organizations mission and goals. The performance appraisal also provides feedback to the employee gauging that employee’s performance,...
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