Human Capital Management
Team Performance Appraisal System- Part Two
In our group discussion, we considered how to convert an existing individual appraisal system into a team-performance appraisal system. The subject matter of our conversation ranged from incentives for lower-level employees through lump-sum bonuses and spot bonuses to team and organization-wide incentives, which focuses on increasing productivity and morale by giving employees a sense of participation in and identification with the company (Cadrain, 2003). Our team report will focus on individual fairness, and how it affects team performance, successful strategies in discouraging social loafing, and how the employee takes responsibility within the sales team. Team performance relies heavily on how well its members perform. Individual performance and contribution directly influences the effectiveness of the team in meeting its goals and objectives. The management and team leader’s role is to ensure that he or she provides an environment that fosters harmony in the workplace in which its employees are highly motivated to perform to his or her utmost potential. To influence good performance, individuals need to believe there is individual equity or fairness in the system. “When people feel fairly or advantageously treated they are more likely to be motivated; when they feel unfairly treated they are highly prone to feelings of disaffection and de-motivation. The way that people measure this sense of fairness is at the heart of Equity Theory” (“Adam’s equity theory“, 2010). Individual members in a team compare his or her performances and efforts with other members of the team that receive praise, compensation, rewards or recognition that is not equitable to their performances. Employees tend to compare themselves to other employees to determine if they are receiving fair treatment or not. Employees may seek a balance between their inputs and outputs and it is not always possible to provide them with correct balance. To give a fair outcome to all employees, the managers should try to understand the employees better. Management should know what the employees are aiming for and try to give him or her the best reward possible, whether in the form of tangible or intangible payouts (“Adam’s equity theory” 2010). People desire respect regardless of the situation. Perceptions of fairness, notwithstanding the setting (e.g., team, school, work) often influence the behaviors and attitudes exhibited by the affected party. These attitudes and behaviors demonstrated by individuals often are instrumental in determining if organizational goals and objectives are accomplished (Jordan et al., 2004, p. 144). Team performance is enhanced when individual members of the team work in an environment in which perception of equality and fairness exists and is fostered. The term teamwork is a hot issue these days in the business world, so knowing the reason teams prevail, or fail is very important. One factor that management has to take into consideration when working or managing teams is social loafing, “Although a number of definitions of social loafing are available, the one proposed by Steven Karau and Kipling Williams is arguably the most complete. These authors define social loafing as the reduction in motivation and effort that occurs when individuals work on a collective task as opposed to coactive or individual tasks” (Rogelberg, 2007). Social loafing creates tension among team players, and needs urgent management attention to correct this detrimental conduct. This social behavior tends to occur when individual responsibilities within a team are not well defined, or when management cannot track performance with precision. When other team members observe this behavior, they often lower their intensity and efforts when working on a project. One effective way to correct social loafing is...