Managing Employee Performance.

Managing Employee Performance
Brandon Berzas
HMRT 300 Unit 4 IP
Professor Horvath
May 1, 2019

Executive Summary
This assignment on managing employee performance aims to understand the lacuna in the
existing performance appraisal used by Matrix and implement a new one to improve the
performance of the staffs and revenue of the company. In the process the company also
conducted the training need analysis to close the openingamongst actual performance and set
performance of the employees. Further various motivational theories are compared and
contrasted to evaluate how performance appraisal process gets influenced by the motivation of
the staff and the relationship between inspiration and capability to achieve is also identified.
Finally, strategies are identified to advancepersonal performance at Matrix and lowerundesirable
reaction to performance appraisal process.

Table of Contents
Executive Summary.........................................................................................................................2
Performance Appraisal....................................................................................................................4
Motivational Theories......................................................................................................................5
Maslow‘s Need Hierarchy Theory...............................................................................................5
Herzberg’s Motivation Hygiene Theory:.....................................................................................7
McClellan’s Need Theory:...........................................................................................................7
Vroom’s Expectancy Theory:......................................................................................................8
Relationship between Performance appraisal and employee motivation.....................................9
Correlation between Motivation and ability to perform............................................................10
Strategiesto reduce negative reactions to the performance appraisal process:..........................10
Ethical and legal dilemmas associated with "potential bias" within performance appraisal
systems.......................................................................................................................................11
Absence of adverse impact........................................................................................................11
Court case studies (e.g., Albemarle Paper Co. v. Moody).........................................................12
Why formal evaluation criteria will ensure a reduction in rater bias and increase legal
compliance.................................................................................................................................12
References:....................................................................................................................................14

Performance Appraisal
Performance Appraisal is processing to evaluate the work ethic of the workers. Employees’ job
dutiesshould beassessedon the basis of the projects on which the employees have worked and
have contributed to the organization. This is also known as an annual review or performance
review (Dusterhoff , Cunningham &MacGregor,2013).
(Source:Lussier, & Hendon, 2017)
The above figure shows the standard performance appraisal process that has taken place in the
organization.This process is conducted twice a year that include semi annually and annually.

The method of apprising the performance of an employee can be devided in to two broader
categories which are nemely “Traditional methods” and “Modern methods”.The ranking of the
employee performances,holding comp[arison between the two pairs of employees, grading of
performance of the employees are som eof the methods used under “Traditional methods” of
employfe p[erformance apprisal.On the ,other hand the methods like “management by
objectives” and the 3600 feedback apprisal process, and ratin sacle basesd on eployee behaviour
are some of the key methods under “Modern methods” of employee apprisal (Lussier, & Hendon,
2017).
In the context of Matrix the management can use the MBO process to conduct the performance
appraisal of the employees and suggest the required training to improve the skill and
performformance of the staff.It ensures that managers at Matrix conduct performance appraisals
that involve the process designing,training employees and training managers and achieve the set
performance goals.Training and development has enabled the organizations to confirm that the
employees have the ability and familiarity to complete the job tasks.
Motivational Theories
Maslow‘s Need Hierarchy Theory
The Maslow’s theory of needs presents that how an individual’s needs develops one after another
in a hierarchal structure and the structure defines that how human being climbs from the need of
the upper tier when the need of lower tier is being fulfilled. Thus, the model demonstrates once
the “Physiological need” of an individual is being fulfilled then the person moves to the next
higher tire of “, Safety Needs” and thus once the lower tire needs are being fulfilled the

individuals move chronologically to the upper tire needs [“Social Needs, Esteem Needs and Self
actualization needs”]one after another.
Once it is fulfilled an individual move to achieve his safety and security needs. As this is
achieved, an individual move to the third level where he looks for social interaction
companionship and belongingness. It is the motivation of the individual (Ozguner, &
Ozguner,2014). In the fourth level one is motivated by the self respect and self esteem. It leads to
self-assurance, aptitude and strength. After fulfillment of all the four levels, one looks for self
actualization. Itsignifies the conclusion of all lower, middle and higher needs of the individual. It
is the motivation of the individual to transform self-perception into reality (Ozguner, &
Ozguner,2014).
(Source:Ozguner, & Ozguner,2014)

Herzberg’s Motivation Hygiene Theory:
The opposite of satisfaction is not dissatisfaction. It is the removal of dissatisfying
circumstances from a job that does not fulfillthe job.
(Source: Velmurugan & Sankar 2017)
McClellan’s Need Theory:
It is associated with the learning theory. This theory has focused on three needs-achievement “n
Ach”, power” n Pow” and affiliation “n Aff”. They are Need for Achievement,Need for Power,
and Need for Affiliation (Velmurugan&Sankar 2017). The first oneis directed towards the
competition with the standard of excellence while the second need makes an impact on others;the
want to make a difference in life and strive to change individuals. The result is the ultimate

satisfaction to man. The last need explores the longing to set forth and help to maintain friendly
and warm relations with other people (Velmurugan&Sankar2017).
(Source: Ozguner, & Ozguner,2014)
Vroom’s Expectancy Theory:
It is the notions that people will motivate to exert a high level of effort. The three elements are
effort, satisfaction and performance
It is essentially required to apprise the performance of an employee as the appraisal of
performance helps the employee fulfill his need of appreciation or esteem needs especially when

the employee is a highly engaged employee and is devoted enough to the organizational
activities. If a good working employee get good appraisal, then the employee become more
motivated as the employed has received the required recognition from the organization and the
organization also get the most effective direction regarding how they will plan the employee
improvement frameworks for enhancing their productivities (DeNisi & Murphy2017).
Performance Appraisals have the power to motivate employees because theyprovide a number of
interconnected benefits. The benefits are-they have demonstrated the need for improvement, by
helping to understand the higher level of psychological needs. At the same time it helps to
develop the sense of personal value and enhance personal development. Thus, it can be
concluded thatPerformance Appraisals have motivated employees around and they have
increased the satisfaction and performance (DeNisi& Murphy2017).
Relationship between Performance appraisal and employee motivation
The managers of an organization should focus on motivating the employees of an organization as
the motivation acts as an internal driver for the employees which leads them to deliver better
performances for the organization. Thus, the HR. managers of an organization should focus on
developing a good plan of action for motivating the employees at regular intervals, so the
employees can deliver good performance on a continuous basis. The process of motivation helps
an employee to fulfil the esteem need self-actualization as well need and thus helps an employee
to get the required job satisfaction Chaudhary & Sharma (2012). A satisfied employee at the
workplace always offers better productivity compared to a employees who are not satisfied with
their job(Khan, 2014). An employee who is not satisfied with his or her job always looks for
avenues to reduce his responsibility or accountability with respect to the task that has been
assigned to them. It is often seen that the unhappy employees have registered high absence rate

and sometimes they also get involved in to politics for disturbing the work of the other
employees who are happy with their own job. Thus, the technique of employee appraisal must be
applied by the hr manager not only to motivate the employees but also to find out the possible
causes of dissatisfaction which must be reduced for enhancing the productivity of the
employees.Thus it can be concluded from the evaluation that there exist a strong relation
between employee motivation and job performance.
Correlation between Motivation and ability to perform
As evident from the above evaluation that employee motivation has direct and positive impact on
the performance while performance appraisal helps an employee to identify the areas of
improvement by finding the gap between actual performance and set goal with regard to
Management by objective (MBO)(Tampubolon, 2016).Thus, it is possible for the manger of
Matrix to use the appropriate motivational drive with the help of above discussed motivational
theories so that ability of an employee can be put to optimum use. In other word motivate to
perform better.
Strategiesto reduce negative reactions to the performance appraisal process:
Matrix has implemented the MBO as the performance appraisal process in the company where
the goal of individual employees ispre-defined (Birasnav, 2014). During the performance
appraisal, the manager identifies the gap between actual delivery and set goals to suggest
appropriate training for that employee. Finally, the employee is trained to eliminate the identified
weakness and improve the ability to perform to the optimum. The whole is conducted by having
open discussion with the individual employee to reduce negative reaction.

Ethical and legal dilemmas associated with "potential bias" within
performance appraisal systems
Ethics refer to the principles related to the external environment. Performance appraisal
can serve as a great tool for employer to assess the performance of the employees. This tool can
be used to administer wages and salaries, performance feedback, and also be useful to administer
employees strengths and weaknesses. However, performance appraisal should follow a proper
guideline so that different aspects of the employees are considered while evaluating the
performance. Elements like, quality of output, quantity of output, timeliness of output, presence
orattendance on the job, efficiency of that in which the work is completed and effectiveness of
the work completed should be considered as elements of performance appraisal (DeNisi&
Murphy 2017). Ethical and legal understand of performance appraisal can lead to potential
dilemmas. Ethical dilemma may result when the company might come across an employee who
has met the target but in the process has applied foul means to achieve it. Therefore, the system
of rewarding contains the potential bias in it because both the ends and the means must get equal
importance while understanding the performance of the individual (John Bernardin et al., 2016).
Legal sanctions like Rater bias, the person who is filling out the form and rating the other
employee may distort the information because of the person’s own personal prejudice or own
values. Instead of measuring the performance of the job, the person start measuring the personal
characteristic, thus does not remain rational. Thus, sufficient measures must be taken to reduce
the unethical and illegal bias in the process of performance appraisal.
Absence of adverse impact
Adverse impact refers to the employment practices that appear to be neutral but
havediscriminatory effect on a protected group. Adverse impact may occur while hiring or while

promotion and even during performance appraisal (EF et al., 2015). Adverse impact can also be
referred as “disparate impact”- this word was coined in a significant US Supreme court rulingon
a disparateor adverse impact (, Griggs v. Duke Power Co., 401 U.S. 424, 431-2 (1971). Formal
standards of critical appraisal will help to eliminate the spurioustension and will assist in creation
of egalitarian relationship within the work environment.
Court case studies (e.g., Albemarle Paper Co. v. Moody)
The employees of the Albemarle Paper Co. Paper claimed to suffer from racially discriminatory
hiring and promoting practices. In this case the petitioner being Albermarle Paper Compnay, et
al., and the respondent being Joseph P. Moody, et al.. The court found that the system was
working by racial segregation. The court ordered the company to implement a new system but
did not award them with backpay, this is because it was assumed the company did not work in
bad faith. The court did not enjoin Albemarle’s use of pre-employment test. Even though the
employees were recruited on the basis of racial discrimination. The court did not take their
responsibility rather it accused that the district court should have awarded the backpay and
enjoined the use of the pre-employment tests. Thus, the deprived one are still on the receiving
end even when it comes to the judgement related to the Albemarle Paper Co. v. Moody. There
was lack of adverse impact, rather the purpose behind the case caught red-tapismand hence failed
to meet the sole purpose.
Why formal evaluation criteria will ensure a reduction in rater bias and
increase legal compliance
Formal evaluation criteria refers to the performance appraisal system that is inducedwith formal
categories of assessment. This kind of assessment procedure can evaluates the person based on

the kind of performance one does. It maintain formal records, which enable one to make future
inferences (Hirsch 2015). The standards that are set in the formal assessment are based on
rational categories, which effectively reduces the raters bias. However, with the increase in the
formal record, there is an increase of the paper work, which demands legal authorization.
Therefore, formal evaluation criteria is informed with legal compliance. Legal authority are
responsible for legitimizing all the procedure, these analysis are time consuming and might take
years to operationalize. Therefore, formal guideline increases the legal compliance.

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