Developing & Managing Performance: IPRP Appraisal System Analysis

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Unit 7 Developing and Managing Performance Assignment
Course 2: Appraisal Management Report
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Executive Summary
An appraisal system should be chosen based on the needs and objectives of the organisation.
A proper analysis should be done prior to choosing any appraisal system. Organisations are
continually looking for approaches to get their representatives to feel aroused and perform
with most extreme energy and eagerness. For that reason, they are receiving sure evaluation
framework so as to enhance the hierarchical and workers' execution. A legitimate
examination ought to be done earlier picking any evaluation framework. In this report, the
IPRP examination framework will be basically investigated, wherein the points of interest
and impediments will be discussed. Likewise, the IPRP plot has certain hindrances that
influence its viability that will likewise be talked about in here alongside a few suggestions.
Furthermore, a concise exchange on gathering related examination framework will likewise
be represented. There are a few recommendations that are additionally given in this report.
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Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Overview of the Appraisal System and Its Importance.............................................................5
Advantages of IPRP Appraisal System......................................................................................5
Disadvantages of IPRP Appraisal System.................................................................................6
Barriers to the Implementation of IPRP System........................................................................6
Recommendations......................................................................................................................7
Appraisal Documents.................................................................................................................9
Document 1: Appraisal Preparation......................................................................................9
Document 2: Feedback Sheet..............................................................................................11
Document 3: Appraisal Form..............................................................................................14
References................................................................................................................................19
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Introduction
Organisations are always seeking ways to get their employees to feel motivated and perform
with utmost zeal and enthusiasm. For that purpose, they are adopting certain appraisal system
in order to improve the organisational and employees' performance. An appraisal system
should be chosen based on the needs and objectives of the organisation. A proper analysis
should be done prior to choosing any appraisal system. In this report, the IPRP appraisal
system will be critically analysed, wherein the advantages and disadvantages will be talked
about. In addition to this, the IPRP scheme has certain barriers that affect its effectiveness
that will also be discussed here along with some recommendations. In addition to this, a brief
discussion on group-related appraisal system will also be illustrated. There are some
attachments that are also provided in this document based on the case study provided.
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Overview of the Appraisal System and Its Importance
Performance appraisal is a sort of formal system that aims at evaluating and reviewing the
evaluation of employees working individually or as a part of a team. The top-managers
consider performance appraisal as a fundamental to the performance management. Individual
Performance Related Pay (IPRP) is one of the widely used performance appraisal systems
that is based on financial rewards to the workers whose performance meets the set
organisational standards. In simple words, this is the method, wherein the organisation link
the progression of monthly salary based on the assessment of individual performance
(Bernardin and Wiatrowski, 2013). This system is widely accepted in those organisation
where the performance of the employees cannot be monitored based on the accomplishment
of target or output. As per the given case study of Wellton Hospital, the employees are
demotivated by their work and the manager's approach. If the manager's approach is linked to
the monetary reward, then this would help in encouraging staff members to give quality
services and performance, thereby improving the organisational performance.
According to Sarkar and Sarkar, (2016), the objectives of the IPRP should be made clear to
each and every staff member and it should be specific. The attributes of the appraisal system
should match with the job description of the employee while evaluating the performance. For
instance, in Wellton Hospital, every care employee needs to collect the data regarding every
patient in order to carry out treatment and provide healthcare facilities. Based on the quality
of services provided by the employees will help the management to analyse their
performance.
Wellton Hospital can make use of any category of Performance-based pay programs. There
are three types of such programs, namely individual incentive programs, organisation-based
program, and team-based incentives programs. One thing to note here is that each of these
programs has their own advantages and disadvantages based. Wellton Hospital can make use
of a combination of two or more incentive programs.
Advantages of the IPRP Appraisal System
Based on the IPRP appraisal systems, the manager of Wellton Hospital can be able to set
goals and define objectives for the staff members and the team that will assist in improving
the productivity of individuals and organisation. It will motivate the employees to hone their
existing skills in order to prove the management that they are valuable and this would help
them in getting a promotion. For instance, if the manager formulates an organisational goal
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that every staff member will be analysed based on the quality of services provided by them to
the patients as per the proposed way, then this would motivate them to work hard for the
incentives. This would help in establishing a well-organised and well-controlled workplace
system. It is also very useful in identifying the individual with poor performance and
organisation can also determine the communication gap. The advantages of the IPRP system
is that it increases the satisfaction of workers from their work and organisation. It increases
the employee retention rate and such highly motivated employees are easy to administer and
control (Peretz and Fried, 2012). This would ultimately lead to improvement of
organisational productivity. Furthermore, it would help Wellton Hospital to establish a
performance-based increment culture and motivates new joiners to achieve the organisational
goals for incentives.
Disadvantages of IPRP Appraisal System
One issue that is often related to the IPRP is lack of transparency in providing the incentives
to the employees. This severely affects the morale of the workers and demotivates them
toward their work. It has also been noticed that incentives are often given based on the
quantity of work carried out by an employee. This makes them work on their output quantity
and that result in a decrease in the quality of work and services they provide to the patient.
The incentive plans are based on the organisational goals that might conflict the individual’s
goals. This would demotivate him/her (Armstrong, et.al, 2014). Such incentive plans cannot
be effective in an organisation where the work is carried out by the team as the incentives
come for the whole team. In addition to this, the performance-based incentives increase the
workload on the manager as they need to gather and record the performance related data of
employees. In addition to this, the organisation might face problem in deciding the equal pay
policies for the Wellton Hospital. The performance can be deteriorated as the employees give
more focus on financial rewards instead of development needs. IPRP system would help in
paying the employees as per the performance of the employees based on quantity but
demotivates those who focus on quality (Child, 2015).
Barriers to the Implementation of the IPRP System
Employees may get demotivated when their expectations are not met. Employees can walk an
extra mile for the organisation if they see that their efforts are being rewarded. On the other
hand, if the organisation fails in doing so, then this would demotivate them. There are many
barriers to the implementation of individual IPRP system (Akhter, et.al, 2016).
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Poor Communication with Workers: Poor communication within the organisation might
directly affect the motivation and inspiration of the employees. It is the duty of the manager
to clearly communicate the organisational policies, incentive criteria, and appraisal plans.
This would be very helpful in dealing with the demoralised employee problem as an
organisation can communicate the reward policies and system to the employees through some
well-established communication channel.
Under-developed strategy: One of the major challenges for the organisation is the
implementation of the appraisal plan when it is fully developed. If in any case, the
organisation implement an underdeveloped appraisal strategy, then it will not only affect the
organisation but also the employees. This might even affect organisation-employee
relationships. The strategy should clearly highlight the financial goals, benefits, incentives,
and time of bonus delivery (Armstrong, et.al, 2014).
Employee Behaviour: Many a time it happens that the workers are not accepting the
performance evaluation plan due to any reason bothering them. This reduces the effectiveness
of the appraisal system. It is important for Wellton Hospital to communicate the plan to the
employees and make necessary changes after a thorough discussion. The plan should not
promote the quantity over quality. In fact, there should be a right balance between the two.
Poor Employee Performance-Evaluation: The performance evaluation is the cumbersome
and time-consuming process and it required top-notch evaluation skills. Wellton Hospital
management should understand that the evaluation process should go parallel with the
compensation plan. A poor performance evaluation plan contains those criteria that are
meaningless and are very subjective.
Recommendations
 The manager should back the plans for the incentives with some well-structured and
sound strategy. It should be aligned with the organisational goals and strategy in order to
become effective. In addition to this, it should also ensure that the goals of the reward
system should sync with business objectives (Akhter, et.al, 2016).
 In order to bring more transparency in the appraisal system, the organisation should spell
out the parameters that would be considered in the evaluation of the performance.
Employees once understand the criteria, they will focus on those parameters (Alonso-
Alonso, et.al, 2015).
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 It is very important for the organisation to incentivise the right behaviour. Not only with
the increment in pay, but can organisation also reward them with gifts or promotion.
 The last but not the least, it is advised to the Wellton Hospital to make use of mix strategy
for incentives instead of just one. As this is already discussed that there are three types of
such programs, namely individual incentive programs, organisation-based program, and
team-based incentives programs.
Conclusion
The overall discussion was done on IPRP system that could be implemented in the Wellton
Hospital. From the above examination, it is been viewed as that reward and incentives inspire
and urge the staff to meet the standards. The report has given the data about the IPRP for
enhancing the execution of staff and keeps up the focused workplace. Moreover, it has
examined the issues that are impacting the structure and execution of IPRP. In the following
part, the report has given brief data about execution examination and basic assessment of
segments of elite work framework. The report ended with some recommendations for the
management of Wellton Hospital to implement IPRP system in an efficient manner.
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Appraisal Documents
Document 1: Appraisal Preparation
Structure/Plan:
 What are the key
elements you
want to cover in
the discussion?
(consider the 7
steps video)
 Think about what
order you will do
things and how
much time you
want to spend on
each part
Adaptability, motivation, attendance, communication, creativity,
customer focus, initiative, mistakes, etc.
The order will be employee’s feedback, performance review,
interview, and final discussion with the management. This would
be done within a month giving 7 days to each task.
Environment:
 How will you
prepare a relaxed
environment and
build rapport with
the waiting list
manager?
 How will you get
them involved
and talking?
The best way is to develop a channel of communication with the
waiting list manager and keep asking them about the issues and
challenges they are facing.
The involvement will increase by some informal talks about
oneself and how they are feeling after becoming the waiting list
manager.
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Review:
 What objectives
will you review
during the
interview?
 What evidence do
you want to
introduce in
relation to these?
The managerial skills and the customer dealing practices will be
the two main objectives.
Customer feedback and customer satisfaction. Employee feedback
and employee satisfaction
Questions:
 What questions
do you need to
cover during the
interview?
 What do you want
to ask the waiting
list manager
about?
The question would be regarding employees’ behaviour,
emergency situation, angry customer management, and many
others.
How would you handle the employee that has made a mistake?
How would you communicate management policies to the
employees?
How would you handle an emergency?
Feedback:
 What are the key
feedback points
you want to
provide?
 Where has the
waiting list
manager done
well and where do
they need to
develop further?
Empathetic towards the employee, problem-solving attitude, and
motivating approach.
Overall management is good but the team environment is very
demotivating. Employees are not very happy by the manager’s
approach.
Objective setting:
 What sort of
objectives do you
want to agree
with the waiting
list manager?
The objectives of getting the employees feel motivated by a
reward system.
Support:
 What sort of
support do you
think the waiting
list manager will
The guidance from senior management and training is required.
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require?
Close:
 What are the key
points you want
to cover at the end
of the discussion?
The conversation would be ended by asking the future endeavors
and current management proposals.
Document 2: Feedback Sheet
Environment
 How well was a relationship
established?
 How was it done?
 What was the climate like?
 How relaxed was the meeting?
Not very successful. It is moderate.
A meeting was held with the manager
The team environment was a bit demoralised.
The meeting was casual and go very well.
Questioning skills
 Did they use an appropriate mix
of question styles
 Did they use open questions to get
the appraisee talking
 Did they ask the employee how
they thought they had been
performing?
 Did they use closed questions to
clarify information where
appropriate
 Did they use the funnel technique
 Did they probe for further
information where appropriate
Yes, the questions were asked focusing on all the
areas.
Yes, they use open questions as well.
Yes, employee feedback was taken.
Yes, they asked closed questions.
Yes
Yes
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Listening skills
 Did they demonstrate active
listening skills
 Did they demonstrate positive
body language
 Did they allow the speaker to
finish
 Did they leave appropriate
silences
 Did they ‘reflect back’ the
appraisees comments
 Did they clarify details and check
their understanding
Yes, they do.
Yes, they do.
Yes, they do.
Yes, they do.
Yes, they do.
Yes, they do.
Feedback skills
 Did they base the feedback on
facts/observations
 Do they gain agreement with the
appraisee about how well they
performed
 Did they identify areas of strength
 Did they describe development
areas confidently and clearly
 Did they help the appraisee
explore how they could develop
these areas
 Did they help the appraisee break
development plans down into
achievable steps
Yes, they do.
Yes, they do.
Yes, they do.
Yes, they do.
Yes, they do.
Yes, they do.
Agreement
 How far did they reach agreement
on the waiting list managers
performance and contribution to
results?
 What got in the way of this?
 What did the appraiser do to
overcome areas of disagreement?
Overall the results were constructive and helped
the manager identify his weakness.
The lack of evidence got in the way
Providing guidance and training to the manager.
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