Performance Appraisal Case Study: Financial Security Investments

This case study examines the performance appraisal process at Financial Security Investments, highlighting issues such as high employee turnover and unfair promotion opportunities. The study analyzes the existing performance appraisal methods, identifies their shortcomings, and recommends improvements, including the implementation of 360-degree feedback and checklist methods. It also develops a goal-setting table with key deliverables like accuracy of work, communication skills, and dependability. Furthermore, the assignment delves into job analysis, organizational empowerment, employee engagement, and recruitment strategies to enhance overall HRM practices. The study emphasizes the importance of fair evaluation, employee motivation, and the strategic alignment of HRM practices with organizational goals to foster a positive work environment and reduce employee turnover. The document explores the importance of employee engagement, recruitment, and organizational change within the context of performance management.

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.

TABLE OF CONTENTS
EXECUTIVE SUMMARY:............................................................................................................2
INTRODUCTION...........................................................................................................................4
PROJECT 1......................................................................................................................................5
Evaluation of current performance appraisal process at the financial security investment........5
Recommendation of changes need to improve the process of performance appraisal................8
Development a goal setting table with 3 deliverables...............................................................10
Analyses of which HRM area is involved in this case..............................................................11
PROJECT 2....................................................................................................................................13
1. a) Job Analysis......................................................................................................................13
b) 4 stages of job analysis.........................................................................................................13
c) Job analysis investigation......................................................................................................14
2. a) Organisational empowerment...........................................................................................14
b) Strategies adopted for empowerment...................................................................................15
c) Some of the top empowerment activities followed in UK....................................................15
d) Obstacles in empowerment...................................................................................................16
3. Employee engagement in a company....................................................................................16
4. a) HR manager strategies to hire staffing officer..................................................................17
b) Recruitment process..............................................................................................................18
5. a) Requirement for change and steps involved in the change...............................................19
b) Resistance and reasons for minimising resistance................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

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 behaviors 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 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 2 changes related to performance appraisal
along with goal setting table with 3 deliverable. 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 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 almost 7 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 1: Performance 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. For making
this more successful, the company requires selecting 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 appraisals, 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 feed
backs 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 and 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 feedback. For making changes in processes and documents which are being used by
financial security investment it can be recommended that feedback should be taken from
manager, peers, customers, direct reports and from higher level supervisors in the meeting rather
than online. These feedback 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 feedback (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
in other 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 feedback and can also
give reason of saying yes. On the other hand, if employee does not possess that behavior then
evaluator can mark it now 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 deliverable 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’ feedback as customers give both positive and
negative feedback 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 deliverable, 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 feedback. 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 feedback 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: