Financial Security Investments: HRM and Performance Appraisal

This case study examines the HRM and performance appraisal processes at Financial Security Investments, focusing on issues of employee turnover, unfair promotion opportunities, and the need for improved evaluation methods. The analysis begins with an executive summary and an introduction highlighting the importance of performance appraisal in motivating employees and ensuring fair treatment. Project 1 evaluates the current performance appraisal process, identifying its shortcomings and recommending changes such as implementing 360-degree feedback and checklist methods. It also includes a goal-setting table outlining criteria like accuracy, communication skills, and attendance. Project 2 delves into job analysis, organizational empowerment, employee engagement, recruitment strategies, and change management. The study concludes with a discussion of the HRM areas involved and the importance of fair and effective performance appraisal systems in fostering employee loyalty and reducing turnover. The document also contains references used in the case study.

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: