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The Case Of Performance Evaluation

Issues

As Mr. Abhinav Kumar attempts to make changes in the existing performance appraisal system,
he faces the following challenges:

1. The change management had been successfully implemented and made the company a
leader in its genre. Therefore the updated Appraisal system has to be in tune with the
Organization’s imperatives and maintain the employee morale at high.

2. A uniform performance appraisal system needs to be incorporated at all levels and


grades.

3. Quantifying the work at the middle management level is a big challenge and to establish
a reward system for the same.

4. Documenting the expectations from a particular role is important and therefore the skills
underlying each attribute needs to be clearly defined.

1. Mr. Abhinav Kumar has clearly pointed out that the change initiatives which had been
implemented in different phases over two years period, was quite successful. Slowly but
steadily the quality, cost-reduction and services had all improved in quality and the
employees were having a high morale because of the highly improved efficiency and the
corresponding increase in profits which is expected soon.

With all the divisions and processes becoming more efficient, the existing performance
measures were not enough. To sustain the momentum gained by the change initiatives it
is extremely important that newer performance standards be defined and appropriately be
linked with the rewards. The existing targets and objectives have become easily
attainable because of the increase in efficiency, therefore better targets need to be set to
further improve the performance.

2. Presently the shop floor and frontline employees have a productivity-linked incentive
system. And senior management has its own goals and bonuses. However the supervisors
and managers at the middle management level do not have a well established appraisal
system. And as the organization strives towards becoming the leader in the market, it is
very important that it incorporates a uniform and fair appraisal system across the
organization at all levels.
3. The supervisors and managers at the middle management level need to be provided with
a set of KPIs and KRAs which can be measured. The existing system fails to do that,
making it extremely difficult for a fair appraisal procedure. With respect to the

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