HRM and Performance Appraisal Process

This project focuses on improving the performance appraisal process for fair promotion opportunities. It discusses the evaluation of the current process, recommended changes, and the development of a goal setting table. The HRM area involved in this case is performance appraisal, motivation, and promotion of employees. Subject: HRM, Course Code: N/A, Course Name: N/A, College/University: N/A, Document Type: Case Study, Assignment Type: N/A

HRM and Performance
Appraisal Process

EXECUTIVE SUMMARY:
This project which is based on a case of improving performance appraisal process for
providing a fair promotion opportunity. It has shown reasons and consequences of unfair
performance appraisal. For removing the problem which financial security investment is facing,
HR recommended some ways of improving the process along with criteria on which basis
performance of employees will be measured.

Contents
EXECUTIVE SUMMARY:............................................................................................................2
INTRODUCTION...........................................................................................................................1
PROJECT 1......................................................................................................................................2
Evaluation of current performance appraisal process at the financial security investment. . .2
Recommendation of changes need to improve the process of performance appraisal...........5
Development a goal setting table with 3 deliverables............................................................7
Analyses of which HRM area is involved in this case...........................................................8
PROJECT 2....................................................................................................................................10
1. a) Job Analysis.................................................................................................................10
b) 4 stages of job analysis.....................................................................................................10
c) Job analysis investigation.................................................................................................11
2. a) Organisational empowerment.......................................................................................11
b) Strategies adopted for empowerment...............................................................................12
c) Some of the top empowerment activities followed in UK...............................................12
d) Obstacles in empowerment..............................................................................................13
3. Employee engagement in a company...............................................................................13
4. a) HR manager strategies to hire staffing officer.............................................................14
b) Recruitment process.........................................................................................................15
5. a) Requirement for change and steps involved in the change..........................................16
b) Resistance and reasons for minimising resistance...........................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
HRM and performance appraisal process plays an important role as it helps the company
in motivating employees by promoting them on the basis of measuring their actual performance
with desired or established standards. Organizational empowerment is a procedure of making
able to employees to adopt new behaviours and work collaboratively to improve products and
service quality (Noe and et.al., 2017). Present study will be divided in 2 projects. Project 1 is
based on a case and project 2 is question based. The main focus on both projects in upon
performance appraisal issue and job analysis. Project 1 will show about the importance of
performance appraisal process as it helps the company to give fair and equal opportunity and
appraisal on the basis of their actual performance. It will also discuss about 2 changes related to
performance appraisal along with goal setting table with 3 deliverables. All these documents help
Financial Security Investments to care and give a fair promotion opportunity to employees.
Project second is going to explain about job analysis along with information’s required in job
analysing investigation. This project shows more about the importance of organizational
empowerment that helps an organization for developing talent and transforming an attractive
working culture. Further, it will also discuss about employee engagement and their relationship
with recruitment process. An effective process of recruiting skilled workforce help out the
company in engaging employees and retaining them. Lastly, this project explains steps which are
involved in organizational change model that is required by company to consider.

PROJECT 1
Evaluation of current performance appraisal process at the financial security investment
Performance appraisal can be defined an important document that is being used in several
industries for evaluating employees’ performance on the basis of their work quality. The main
aim of using this document is to increase the work quality and promote employees on the basis
of employees’ actual performance and remove biasness. In this case, it is evaluated that Brooks
who was one of the fairest manager at financial security investment for almost7 years. After
some years he felt that he was being ignored and was not getting promotions on the basis of
performance. By using performance appraisal steps and document, financial security investment
industry can solve the problem of performance appraisal. It is important to solve this problem
with the help of performance appraisal process because this company and industry is facing the
problem of labor turnover due to inappropriate performance evaluation process. There are mainly
5 steps included in an effective performance appraisal process that can be used at financial
security investment such as:

Figure 1Performance appraisal process

Establishing performance standards: It is the first step of performance appraisal
according to which, the company can compare the actual performance of their employees. The
main aim of using this step is to set the criteria in order to judge employees’ performance of
financial security investment industry to the degree of their contribution to the organizational
goals.
Communicating performance standards to employees: After setting performance
standards, it is important for the manager of financial security investment to communicate all
standards to all employees. All performance standards need to be explained to employees as it
will help them out in understanding their roles and to know what the company exactly expect
from them (Performance Appraisal Process, 2018).
Measuring actual performance of employees with suitable methods: When employees
and manager clearly understand about performance standards then it becomes easy to measure
the actual performance of employees which they have to do in the specified period of time. For
making this more successful, the company requires to select appropriate techniques of
measurement. There are 2 methods of measuring performance of employees such as traditional
methods and modern methods. Ranking methods, grading are some examples of traditional
method. Management by objectives, 360 degree appraisal, and cost accounting methods is
example of modern method of measuring performance. It is evaluated that all documents like
360 degree and check list have some disadvantages and advantages. In the 36 degree there is a
chance that feedbacks might have filtered. In the type of check list it is evaluated that it does nit
explain each detail about employees.

Comparing employees’ performance with standard performance: It is the main stage
of performance appraisal which can solve the problem of this study of performance appraisal in
which by comparing actual performance with desired performance of employees. It can tell
everything about employees by analyzing differences and deviation between actual and desired
performance (Steers and Lee, 2017)..
Identifying gaps in employees’ performance: After comparing employees’ performance
with standard performance or established performance standard, financial security investment
can identify the gap in employees’ performance.
Rewarding for best and taking actions for poor performance: After comparing and
identifying gap between actual an d desired performance by employees, an organization can take
corrective and appropriate actions for negative deviation and employees actual performance is
lower than desired performance. On the other hand it can provide benefits and rewards to those
employees whose actual performance is more than desired or established standards. The main
aim of providing rewards is to motivate employees for accomplishing goals and also encourage
and improve skills of those employees whose actual performance is beyond expectations.
So, it can be said that by using all these steps of performance appraisal, financial security
investment industry can make better decision for promoting their employees on the basis of
performance. It can also motivate employees and decrease employee turnover (Kim and Holzer,
2016).
Recommendation of changes need to improve the process of performance appraisal
The main problem which financial security investment is facing is increasing labor
turnover, low loyalty and high employee mobility. The main reason of all these issues is unfair
promotion opportunity and performance appraisal to employees. For solving this problem, Brook
who is a fair manager of financial security investment, has aware of a document that called goal
setting document that is being used to evaluate employees performance. Rather than goal setting
document, 360 degree feedback document process and check list method. Both these document
can help the company to evaluate employees performance and give them fair promotion
opportunity on the basis of their performance.

360 degree feedback: This is other important document and change rather than goal setting
document by which financial security investment can solve the problem related to evaluation of
employees’ performance and fair promotional opportunity. It can also be recommended to this
company that they should measure performance of their employees on the basis of feedbacks.
For making changes in processes and documents which are being used by financial security
investment it can be recommended that feedbacks should be taken from manager, peers,
customers, direct reports and from higher level supervisors in the meeting rather than online.
These feedbacks can be taken while preparing team members to take on responsibilities at a
higher level. It can motivate employees and can also retain them within an organization for the
long term. It can solve the problem of filtered feedbacks (Das and Panda, 2017).
Check list method: In this type, the company measure effectiveness of performance of
employees on the basis of their behavioral criteria. This behavior criteria is based which need to
meet by employees for measuring their actual performance on this regard. For example,
teamwork or on time delivery. It can be recommended to manager and employers that by asking
some explanation along with yes and no check list, manager can get each detail of employees. In
another words this document can be defined as a series of statement that consists of some
behaviors and performance framework along with positive and negative statement. For each
behavior and performance basis, evaluator and employer can answers yes or no. If employee
posses that behavior then evaluator marks it yes which is called a positive feedbacks and can also
give reason of saying yes. On the other hand, if employee does not possess that behavior then
evaluator can mark it no which means employee needs to improve that by identifying the reason.

Figure 2 Check list
So, it can be recommended that the company can improve performance evaluation process and
can also minimize this type of problems
Development a goal setting table with 3 deliverables
Goal setting process in performance appraisal can be defined as a shared responsibility
between manager and employees that builds commitment. It is stated that performance
management begins with clearly defined goals by making an effective use of SMART model. By
setting goals in an effective manner (Govindan and et.al., 2015). Some deliverables and criteria
on which basis the company can develop a goal setting and effectiveness of performance
appraisal process includes:
Criteria Importance
Accuracy and quality of work The first criteria on which basis individuals can set goals and
employer’s measure performance of employees is quality of work.
Quality is something which shows effectiveness and skill level of
employees. Customers seek qualitative work and it is the main reason of
company’s goodwill. On the basis of accuracy and quality of given work
to employees, employer can provide them promotional opportunity. For
knowing quality of products and work, employer can take help of
customers’ feedbacks as customers give both positive and negative
feedbacks on the basis of their satisfaction level.
Communication skill Communication skill also plays an important role while making decision
of employees’ appraisal. An effective communication skill shows about
confidence level of employees. This confidence level and
communication skills can help employees in influencing them for
buying products and services of their company. So it is other main
criteria and deliverable in the process of goal setting and performance
appraisal.
Attendance and dependability Dependability and attendance is also being considered at the time of
taking decision of promotion or appraisal. Dependability shows
effectiveness of employees. Every company seeks employees who have
dependability because dependable person try to produce consistent work
and can also perform wide variety of work. Absenteeism can decrease

overall productivity of the company, so it is important for employees to
posses punctuality and attendance ability and come on the work daily. It
also gives negative impacts on employers and shows that employees are
not serious and dedicated for their work (Rauch, 2018).
So, it can be said that all these criteria plays a vital role at the time of performance
appraisal for employees. If employers make decision for employee’s appraisal on this basis then
there are a few chances of employee turnover and dissatisfaction among employees. By setting
effective goals on the basis of these deliverables, financial security investment can solve the
problem of performance appraisal and can satisfy Brook that has talk to other managers and
became aware of goal setting document. It can help employees and employers in achieving short
term, long term and lifetime goals.
Analyses of which HRM area is involved in this case
It is analyzed that in this case performance appraisal, motivation and promotion of employees
HRM area are involved. From the above case, it is analyzed that Brooks that was one of the
fairest managers and was working at financial security investment for approximate 7 years. At
the first 3 years he had received 4 quick promotions as he was so fair and most liked manager.
But after 4 years he felt that he was stuck as he was not getting promotions after applying for
higher level promotion. By comparing himself with Leslie Basking, who was also a group
manager. Brooks felt that she was getting unfair promotion by top manager. Top manager did not
give any information and explanation to Brooks, when he asked an explanation for his and
Baskin’s promotion (DeNisi and Murphy, 2017).
So, it can be said that from this case that performance appraisal HRM area is involved which
mainly focus and is employees centered Some employees felt that they will be not promoted on
the basis of their performance level and felt ignored at the time of appraisal or promotion. The
main reason which created the requirement of using an effective performance appraisal process
as followed:

Personal bias: From the above defined case, it can be said that, superior and the top
manager do personal bias. Some employees and managers try to impress their top manager for
getting promoted to the higher post. Some manager becomes bias and then they select their
favorite person for promotion not on the basis of their performance level. So, using an
appropriate process for evaluating employees’ performance is important by HR.
In the performance appraisal management which is the main part of HRM as on which basis
the company and HR cam motivate their employees and retain them. It involves plan, monitor,
review, developing performance assessment form and 360 degree feedbacks. There is a
requirement for HR to include well designed jobs, effective supervision, comprehensive
employees training and supportive working environment in performance management system. It
will help them in establishing a clear communication, continuous feedbacks on the basis of
performance, recognition employees’ accomplishments, establishment plan for improving
performance etc.
The establishment of an effective performance management system requires adequate resources,
time and support of executive director as well. It is also important for management to support
performance management process outcomes and recognize good performance. It can also help
financial security investment to provide training to new brokers, improve cooperation and other
areas of the company (Kim and Holzer, 2016). It is stated from the case study that the company
wants to increase the number of clients on annual basis, their investment portfolio and keep an
effective relationship with clients.
PROJECT 2
1. a) Job Analysis
Job analysis can be defined as a process of analyzing and gathering the information
related to the content and requirements of the humans for the job and even in the context a job
has to be performed. Job analysis is typically used for determining the placements for the job. It
is also known as workplace analysis and in simple language means a detailed examination and
study of a job in order to understand a job (Kivimäki and et.al, 2015). Thus it can be said that job
analysis is a process of understanding a specific job in order to optimize the chosen job and also
involves the systematic process of collecting a proper information which pertains to the job. Job

analysis can be done by the job analyst who is also the officer or a personal trained for it. Job
analysis also involves a procedure which can help in the identification of job responsibilities,
duties, nature of job and thus help in deciding the qualifications, knowledge and skills required
for the employees to perform a job.
b) 4 stages of job analysis
Four stages which are involved in carrying out the job analysis are mentioned below:
1. Planning the job analysis: This is the first stage and is the most crucial stage in the job
analysis process. This stage involves the planning for the job analysis process before starting to
gather data for management as well as employees. It this step it in vital to set objectives for the
job analysis which is to be achieved.
2. Preparing as well introducing the job analysis: This involves the jobs which are under
review like job which are to be analysed clerical jobs, hourly jobs or all jobs in the organisation
or job in one division (Papatheodorou and Pappas, 2017). This stage also involves a crucial step
of communicating and explaining the process to senior management.
3. Conduction a job analysis: In this step job analysis is conducted and the method which is
selected will help in determining the time line for the project for this purpose time should be
allotted in order to obtain information.
4. Development of job description and job specification: This is the stage where job analysis
has to prepare JD and JS. This also involves maintaining as well as updating the JD and JS.
c) Job analysis investigation
Collecting an information related to the job requires lot of time and efforts, while
gathering a job related information it can christens, Winn and Duke, 2016e divided into three
categories which are:
Job content: It consist of the information related to job activities which are included into a
particular job and information required is:
What job an employees do
Duties related to job
Tools and equipments used.
Output level

Type of training required.
2. Job Context: It includes the situation and the conditions required to perform a job and
information collected are:
 Risks
 Working conditions
 Mental and physical demands
 Hazards
 Judgments
3. Job requirements: The information collected are as follows:
 Basic information or knowledge which is required to perform job easily
 Skills required like IT skills, communication skills, motor skills etc.
 Personal characteristics required and educational qualification required.
2. a) Organisational empowerment
Organisational empowerment can be defined as the process which enables the individuals
for adopting new behaviours which results in the individual aspirations as well as the aspirations
of the organisation. It also refers the granting employees of the organisation autonomy in order to
assume a more responsibilities (Christens, Winn and Duke, 2016). Organisational empowerment
can be achieved by strengthening the sense of effectiveness and by sharing the powers as well
responsibility and the information to employees in order to manage their work. Within the
context of organisational culture, empowerment can be referred as individual autonomy within
the various dimension of the organisation. This can help in improving the communication and
decision making process and raises the employee moral and commitment in the company which
can result in the success.
b) Strategies adopted for empowerment
Following are the strategies for empowerment which can be adopted by the organisation
are as follows:
Clear definition of strategy: It is important for the organisation to give an employees a clear
definition of business strategy which can help them to understand it better (Jiang and et.al.,
2016). This may involve where they fit and how can they support on a daily basis.

Management Training: Training managers in relation to how to build trust in the teams which
is really important. When employees in the organisation feel appreciated and trusted from their
top management they will feel valued and secure as well as empowered for their decision.
360 degree review: By making the 360 degree review will provide an opportunity for the
management as well teams give feedback and receive feedback as much as possible which will
help in development of employees in the organisation.
c) Some of the top empowerment activities followed in UK
List of some of the top empowerment activities which are followed in UK are as follows:
1. Spending time with employees: This is the best empowerment activity which is practiced in
UK as it has been revealed in the interviews with 5,661 employees of various organizations in
UK and they have suggested that, the only difference within the leadership behavior that results
in the low and high performance in the organization is spending time with employees.
2. Providing more than a job: This is another activity which is adopted in UK, this includes
that employees should be engaged in the meaningful work which can be done by improving their
skills and knowledge, value and respect them etc.
List continues which includes,
Identifying drivers of employee engagement,
Establishing vision for the future and
Measuring output instead of input.
d) Obstacles in empowerment
There are various obstacles in empowerment such as one of the major obstacle is lack of
trust between the staff and manager and this lack of trust can create difference among them.
Also, another obstacle is lack of clear vision as well as policy related to accountability which can
result in the hindrances in the process of empowerment and employees will not be able to take
decisions of their own. Another major obstacle can be lack of proper communication which is the
major barrier in the organizational empowerment.
3. Employee engagement in a company
Employee engagement within the organization can be referred as an extent to which
employees can feel passionate related to their jobs. Employee engagement is not same as an

employee satisfaction and it goes beyond the activities, events and games which results in
driving the employee performance (Hanaysha, 2016). It can also be referred as emotional state
where employees can feel passionate, committed and energetic towards their work. An employee
engagement should be such that it can prove good for the company for example sometime
managers of the organization are not considered in the decision-making process and does not feel
engaged in their jobs. So, this results in less employee engagement and can prove bad for the
company as they will result in the lack of interest among the employees of the organization.
Employee engagement also represents a level of enthusiasm as well as connection which
employees have with their organization. It can also help in measuring the level of motivation and
an extent an employee put extra effort for completing their job in the organization. The process
of employee engagement typically depends on the actions which are taken by the company for
example if a company adopts a democratic leadership in the organization, this will allow the
employee participation in the decision-making and this is the best way of employee engagement
in the organization.
Most of the organization try to seek higher levels of engagement process in order to
improve various things in the workplace for examples employee performance, innovation,
retention etc. When employees get engaged in the workplace it does not only provide a greater
value for the company but also employees can experience high work-life quality. For example
employees who are engaged in the workplace feel energetic due to their work and they maintain
the positive mentality towards the organization (Kaliannan and Adjovu, 2015). Employee
engagement can result in the state of flow and is the best way for improving the performance of
the organization. When companies understand the importance of employee engagement, they
will be able to take more actions on what is important for them. Within the process of employee
engagement, it takes motivated and committed employees to higher levels of performance. Also,
engaged employees of the organization focus on the goals which are set by the organization,
which is expected to be achieved by them. Employee engagement also results in the contribution
for employees for the success of the organization by optimizing their skills and abilities. So, it
can be said that employee engagement forms an important part of the organization and in the
absence of employee engagement; it will be really hard for the company to achieve its success in
the long-term.

4. a) HR manager strategies to hire staffing officer
The HR manager of Auto Access can adopt several strategies in order to hire an effective
staffing officer. The first step which goes for efficient hiring of an staffing officer is recognizing
the need to hire where the managers first identify the vacant position and the responsibilities of
same like the need for recruiting staffing officer is to hire a bunch of employees and look on the
complete process of hiring (Aslet and et.al., 2019). After recognizing the need, Mangers plan the
entire process of hiring where they post the vacant position along with its job description.
Once the plan is all set, concerned managers endeavors to search for viable candidates
who has the relevant experience to become staffing officer and those who meet the job
requirements. Managers search out via online websites as well as with the help of some third
party where they find a stock of candidates. After the searching is over, managers move on to the
next complicated stage which is recruitment. Candidates who fulfill the requirements of staffing
officer are called upon for the recruitment process where the candidates go through a series of
rounds in order to find out their skills and viability.
Candidates selected in recruitment are called for the final interview process where the
interviewer communicates with interviewee and gather as much information and possible. Those
candidates who got selected in former process are finally given the offer of employment stating
their nature of duty which is staffing officer.
b) Recruitment process
Recruitment is a well structured process through which the organizations attract a large
pool of candidates for the employment. The recruitment process includes:
Recognizing vacancy
The first step involves identifying the vacant position. In this, the different departments
analyses the various attributes like number of vacancy, its duties and responsibilities etc,
qualification required etc. Therefore, the manager ascertains whether there is need for
recruitment or not. For example For staffing officer, the job description comprises of managing
staffing process, coordinate with managers etc.
Recruitment strategy
This constitutes the second step where the roadmap or a strategy is designed for
recruitment of candidates (Chowdhury, 2018). Once the job description and job specification are

prepared, the strategy is adopted regarding geographical area, sources of recruitment etc. For
example the company can post the staffing officer job ob online portal and newspaper.
Searching the potent candidate
Once the strategy has been designed, next step involves looking out for the skilled
candidates. In this stage, job seekers are attracted via internal as well as external sources. Internal
sources encompass employee referrals; transfer etc whereas external sources constitute
employment agencies, advertisements, campus recruitment etc. Example company would source
the information from newspaper about the candidate who are fit for the job.
Screening
Screening is basically a procedure where the applications of all the candidates are filtered
for next stage i.e. selection. Screening forms an integral segment of the entire processes it
enables the recruiters to filter out the irrelevant candidates and selecting the right one. For
example, In screening, company can review the resume of candidate to have a better
understanding of their education, experience etc.
Evaluation
This constitutes the last step whereby the organizations assesses validity of entire
process. This stage helps the companies to evaluate whether the desired outcome have been
achieved opr not. For example, In conducting the recruitment process for staffing officer what
salaries have been given to recruiters, advertisement cost, administrative expenses etc.
5. a) Requirement for change and steps involved in the change
There are various reason Auto Access to go for change but overall reason for the change
in the organization is to achieve organizational success. An organization may go for the changes
if there is a performance gaps within the company and these gaps acts as a barrier for achieving
the organizational success (Amarantou and et.al., 2018). Another reason can be to meet the needs
of the customer as they are constantly evolving and in order to meet their needs changes are
required. Another reason for change can be failure of organizational structure so, in order to
setup a proper organizational structure change is required.
Three steps which are involved in changes are:
1st step-Clear definition of change: This is the initial stage which involves clearly defining the
change and then aligning the change with business goals.

2nd step-communicating the change strategy: In second stage a proper communication strategy
should be applied in order to communicate a change process implemented in the organization.
Which includes aims and objectives of change process?
3rd Step-Implementing the change: In this change is implemented in the organization which
involves preparing the employees for change and minimizing their resistance.
b) Resistance and reasons for minimising resistance
Resistance to organizational change normally arises when employees does not understand
what is the real purpose of change and if the employees does not understand the process of
change and this could result in the resistance for change. There may be various reasons which
results in the resistance for change like threat of power from the individual level like from the
top management which may result in the resistance to change. Another reason may be losing the
control on employees or increase in the control of employees can also result in the change. It is
really important for the organization to reduce the resistance to change, by minimizing the
resistance can result in minimizing the conflicts in the organization which may arise between
employees and the top management (Appelbaum and et.al., 2017). Reducing the resistance will
increase the productivity of the organization to higher levels and will also result in the employee
engagement. One of the most important factor for reducing the resistance is that it will help the
company to meet the objectives for which change process have been implemented in the
workplace. Thus, minimizing the resistance to change can be beneficial for the organization in
various an can result in the success of the organization.
CONCLUSION
From the above study it has been summarized that performance appraisal process in HRM
played an important role. It helped an organization to retain their employees for the long run,
decrease labour turnover and increase loyalty. It has also shown the increasing importance of

changes in HR appraisal practices rather than goal setting document in order to more improve the
process of performance appraisal for employees and provide them fairest promotion opportunity.
Performance appraisal HRM area helped out an organization in accomplishing their pre
determined goals.
It can also be concluded from the project 2 that the meaning and importance of job analysis
as it helped an organization to identify all contents of job or activities which has been completed
by employees. On this basis it has identified potential and efficiency of employees. Further it has
also shown the importance of organizational empowerment as well as top empowerment
activities such as openness to new ideas, recognition, rewards etc. Employees’ engagement also
played a vital role as it helped out the company in increasing brand image and accomplishing
their goals. This project has also described the process of recruitment by which the company
get skilled and potential employees. Lastly, it has concluded that the reason which created the
need of changes such as inappropriate strategy etc.

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