Organizational Change Management: Performance Appraisal at Telespazio

This report analyzes organizational change management within Telespazio, a company facing intense market competition. It examines the importance of performance appraisal systems, particularly in a matrix management structure, and contrasts the advantages and disadvantages of double-rater and single-rater systems. The report addresses HR's concerns regarding equity and selectivity in manager evaluations, highlighting the need for revised performance analysis models and training. Furthermore, it outlines strategies for successfully implementing the appraisal system in Telespazio's foreign subsidiaries, emphasizing the importance of ethical codes, organizational structure, and disciplinary models. The analysis covers the challenges of organizational change and strategic adaptation across various organizational processes, offering insights into effective performance management in a global context.

Running head: ORGANIZATIONAL CHANGE MANAGEMENT
Organizational Change Management
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Introduction:
The organizations in the modern day business world are subjected to intense market
competitions. In the competitive business market they are facing the need to analyse the
competencies and skills of their employees. In doing so the introduction of the appraisal
policy is significant for the organization. The appraisal usually includes the evaluation of the
employee’s performances which has greater importance for the management of the
organization. The evaluation of the employee’s performances will be significant for the
organization in order to search for the competencies or the skills that can be considered as the
strong points for the employees and along with that it will also be crucial for the management
in order to accumulate the weak points of an employee. The evaluation of the weak point will
be highly helpful for the management in order to structure appropriate training for the
employees so that they be able to improve in the sections which are considered as their
weaknesses. Apart from this, the rewarding or appraisal policy will be significant for the
organizations in order to manage or lead the organizational change that the organization is
facing.
The effectiveness or success of any change process is not restricted to the
participation of the policy makers or senior level management who decides regarding the
change. Rather it is the general employees that are also a crucial party in the effective
management of the change process. The proper communication regarding the goals or the
objectives of any organization under the change process to the employees is significantly
needed from the part of the management in order to ease out the difficulty that is associated
with the management of the change. The paper is focused in describing the appropriate
method of the assessment of the performances of the employees of a chosen organization
Telespazio. It also describes the concerns of the organization’s HR team regarding the equity
and selectivity of the manager’s evaluations along with the necessary steps that needs to be
taken in order to trigger the acceptance of the method in the international subsidiaries of the
organization.
Choice of Performance Assessment System:
It is highly inappropriate for an organization that is striving towards the matrix
management or at the important stage of being a matrix organization to put the responsibility
of the performance appraisal only on one supervisor. As the general concept of the matrix
organization becomes contradictory in implementing one supervisor based performance

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analysis system. The conceptual definition of the matrix organization specifies that the
organization that incorporates dual layer management system can be considered to have a
matrix management. The organizations which are aligned with the matrix management are
observed to have employees who serves twofold responsibility. Usually in these
organizations, the employees of different departments are observed to be assembled for a
project under a supervisor who is not their actual head of the department.
The temporary supervisor is the only concerned person for the purpose of the project.
Hence at the time of the participation in the project, the employees of different departments
will be answerable to the project head. In actual normal operation of the organization, the
employees of the concerned department are answerable to their department heads. Hence
these organizations will observe a dual layer of supervision as the concerned employees are
point of concern for two different supervisors at the same time. Owing to the above
mentioned reason, the assessment of the employees will be full of faults if the organization
concentrates on one supervisor based performance analysis system. Hence the preferred
choice will be the double-rater system. As in this case the organization will be able to assess
the employees depending their expertise, observed by the two managers of them. In case of
the operations of the employees at the projects, the competency level showed by the
employees is not available for their department heads for the evaluation but the project heads
has significant availability of the resources evaluate. On the other hand, the general
operations of the employees at the departmental level will have the scope to be evaluated by
the departmental head rather than the project head. Hence in order to introduce a 360 degree
analysis of the total performance of the employees, the double-rater system will have
significant importance.
The advantages of the Double-rater System:
 The double-rater system allows the employees to have an assessment of the strong
and the weak points of them from the evaluation of key individuals of the
organization at different levels of the organization which is significantly helpful for
them in order to undertake the necessary professional development activities.
 The double-rater system is significantly helpful for the employees as it incorporates
the assessment of the employees’ performances from the different individuals
belonging to different levels of the organization. It helps the employees to have the
evaluation of their performance not only from one end that may be their department

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head rather it gives them the opportunity to have an evaluation from the other parties
of the organization, involved in their operations.
 The system is significantly helpful for the employees to have an overall assessment as
it is observed that a section or an individual responsible for the assessment of
performance of the employees may assess one employee not in the desired fashion or
the assessor may come to the conclusion where the analysis may be not perfect. In
those sort of cases the second assessor’s comment or analysis is significantly crucial
for the employee as that will enable the employee to have a second chance in getting
the proper and perfect evaluation.
Disadvantages:
 One of the major disadvantage is that the personal grudges of the assessor may that be
the project head or the biased nature of the assessor for a preferred section of the
organization may lead to a situation where the overall assessment of the other
employees will be subjected to significant faults. Hence the actual deserving
employees can be deprived from the rewards.
 The model does not allow the employees to have an idea of the identity of the assessor
and at times that becomes significant concern for the employees as they do not have
the idea of the basis behind the assessor’s comment which could have made it easier
for the employees in getting improved.
The advantages of the Single-rater System:
 The primary advantage of this model is that the assessment of the performances of the
employees will not incorporate any sort of conflict between assessors like Double-
rater system.
Disadvantages:
 The major issue in the system is that the employees will not be able to get a 360
degree review of their performances.
 Along with this, it may incorporate biased judgement from the part of assessor and as
there is no second option for the organization, it will force the organization to follow a
faulty report.

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HR’s concern in equity and selectivity:
The organization observed a significant concern of their HR team over the equity and
the selectivity of their manager’s evaluations. This was evident with the comment from Ms
Di Santo when she was able to show that the evaluation of the data generated from the
Human Resource Management system was significantly portraying the biased distributions of
rating towards positive performance. Along with that it was uneven among the different
departments of that organization. Mr Dettori also expressed concern over the issue while
stating that no effective forward step was taken in the ranking distribution. Ms Di Santo
claimed that most of the ratings are inflated and superior ratings are given to majority7 of the
employees without any proper analysis of their work. This results in injustice towards the
employees who were deserving for the superior ratings and the rewards. This also
demotivates the deserving employees and their interest of producing top level performances.
The action that needs to be taken from the part of the HR management to solve this
issue will be to create or restructure the performance analysis model with the introduction of
increased number of levels. The managers will be able to evaluate the performances of the
employees and will have the opportunity to mark appropriate ratings for the performances
employees. The revision of the company’s performance analysis system was observed to
incorporate an advice for the managers where they will have the chance to mark “outstanding
performances” only to 15% of the entire department and this is a significant policy as it will
test and increase the skills of the managers in evaluating the performances of the employees.
The managers will need to be more specific in their analysis at that case and that will make
sure they mark the correct label to employee. In order to increase the skills of the managers in
evaluating the performances of the employees, appropriate training activity will have
significant importance and result as well. The training will be instrumental as the company
will be able to incorporate the meaning and the desired level of expertise that are associated
with a particular level of rating among the managers.
Acceptance Procedure for the Foreign Subsidiaries:
There are several strategies undertaken by Telespazio plan to address the transfer of
the appraisal system to its foreign subsidiaries. The main challenge for the human resource

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team of Telespazio is to undertake the process of organizational change and strategic change
across the various process of the organization. The given case study focusses the design and
implementation of performance appraisal system. In addition to this, it can be inferred that
there are several practices that needs to be required to be implemented by the firm in order to
meet the needs and requirements of the stakeholders. Due to this reason, it is of utmost
importance for the firm to create an effective performance appraisal system to its foreign
subsidiaries. In addition to this, it can be also inferred that there are several forms of critical
issues faced by different Multinational companies to harmonize the different forms of
performance management system across the world. In addition to this, it can be also inferred
that in case of Telespazio, it has brought a new challenge for the Human resource team to
extend the implementation of new performance management system worldwide across the
different foreign subsidiaries. In addition to this, it can be also inferred that the organization
needs to adopt an effective management control framework in order to transfer the
performance appraisal system to all its subsidiaries in the global arena. In addition to this, it
can be referred that the organization can set up an effective organizational structure which
will be in line with the corporation business. An organizational chart needs to be developed
with pre-defined objectives and this needs to be connected with different diverse
organizational units across the worldwide. In addition to this, it can be also inferred that there
needs to be a separate body of control who will monitor and review the corporate macro-
organizational structure. Apart from this, it can be also reflected that there needs to be an
effective disciplinary model which will suitable to punish any violation across the entire
system of operations of the organization Telespazio.
However, in order to implement this, the board of directors of the firm need to
implement certain strategies across the entire system. First and foremost thing, the
organization needs to implement the Code of Ethics and the Anti-Corruption Code in the
corporate intranet. This will help the organization to carry out the process of operations in an
effective manner. In addition to this, it can be also inferred that the management of the firm
needs to update on the changes to the Model, the Code of Ethics or the Anti-Corruption Code
as per the requirements of the stakeholders. In addition to this, it can be also deduced that the
firm needs to make participation in training session compulsory for the employees so that the
process of performance appraisal system takes place in a wide spread manner. In addition to
this, the firm needs to provide clear definition of the powers of the proxy and limits for

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exercising authorities in line with corporate objectives so that it is spread among the foreign
subsidiaries.