Managing Performance Forced Distribution Method

  • Uncategorized

ManagingPerformance: Forced Distribution Method

ManagingPerformance: Forced Distribution Method

ManagingPerformance

1.0Introduction

Performanceassessment provides management teams ability to monitor standards andagrees on common expectations and objectives as well as a delegationof responsibilities and tasks with employees (Aguinis, 2014). Thisassessment proffers a depiction of the way organizations appliescomparative systems of performance management in appraisal processesusing the forced distribution method. The appraisal shall beundertaken by individual employees who shall be required toself-assess themselves by answering specific questions on anappraisal form, which shall then be compiled by the supervisor toanalyze their performance. The appraisal is scheduled to take placewithin the first two weeks of February 2016.

1.1Comparative systems: Forced distribution method

Theappraisal shall use comparative systems of measuring behavior usingthe Forced Distribution Method. Forced distribution involves aligningemployees according to pre-assigned performance distributionpercentages enabling a person to the standard comparison(Chattopadhayay &amp Ghosh, 2012 Aguinis, 2014). Thisclassification groups the respondents into three classes, whichinclude 20% of the employees being classified as exceedingexpectations, 70% as meeting expectations and 10%, are classified asnot meeting expectations. In this performance appraisal exercise, thecategories to be used include 10 percent low 20 percent belowaverage 40 percent average 20 percent above average and 10 percentexcellent. Sprenkle (2002) asserts that forced distribution rankingapproach enables managers to create a high performing culture that issustainable. Weak performers are eliminated while strong performanceis awarded.

1.1.1Advantages

Theapproach highly correlates with the organizations shareholders’interests and return on investment. According to Sprenkle (2002),companies that have developed a strong performance management processare likely to achieve higher shareholder return. The approachestablishes clearly defined consequences for employees’ actions.Employees who demonstrate higher performance are awarded morecompared to average and low performers. Firms identify low performingemployees and put them on training to enable them to improveperformance (Chattopadhayay &amp Ghosh, 2012 Aguinis, 2014)

1.1.2Disadvantages

Itis also important to note that comparative systems of appraisalincluding the forced distribution approach has challenges such ascomparing employees regarding single overall category and not onindividual behaviors and competencies. The rankings, therefore, failto provide employees with specific feedback making the rankingssubject to legal challenge (Chattopadhayay &amp Ghosh, 2012Aguinis, 2014). Forced distribution is also considered a contributorto negative teamwork cultures in workplaces, which makes it difficulto implement in organizations that are already experiencing fallbacks.When employee keeps on being eliminated due to being ranked bottomevery year, it is likely that the organization will end up losing thevery important labor that drives its competitiveness (Alamchandani,2014).

2.0Performance Review and Performance Renewal

2.1Phase I: Preparation before the appraisal meeting

Effectiveperformance management requires a strong foundation, which requires aconsiderable amount of thought in the firm’s corporate strategy,approach to job analysis, appraisal tools to be used and howdocumentation of performance is undertaken. Goal setting andcommunication are also critical for an effective performancemanagement program. A communication plan in a performance managementprogram involves sharing of new processes with all employees. It isimportant to address issues head on as well as being able to listenand address past grievances (Oberoi &amp Rajgarhia, 2013).

2.1.1Appraisal Strategy

Havinga strategy enables managers to determine the skills and competenciesemployees are needed to have currently and the behaviors that will beneeded in the future. The strategy should, therefore, be closelylinked to the performance goals given to each employee (Benson &ampMcDemermott, 2015). The strategy provides a guideline to employeesensuring they remain focused on the actions that will translate tothe organization`s success. Organizations that have set their primarygoal to increase customer satisfaction will need to develop decisionsthat are driven by factors that ensure employees’ actions result inincreased customer satisfaction.

2.1.2Appraisal Tools

Theappraisal tool to be used is an important concern to the managementteam undertaking the exercise. It is, therefore, important that theforms being used are designed to be simple to understand with clearinstructions and definitions of the rating criteria being used. Theusers should find it easy to use and the formatting should not becomplicated but should have a logical flow and provide space forcomments (Haynes &amp Bobrow, n.d).

2.1.3Responsibility analysis

Thereare two approaches to job analysis, which include formal and informalways. This helps managers to determine the tasks being performed andthose that need to be performed in the future depending on thechanging business conditions (Benson &amp McDemermott, 2015). Jobanalysis is critical to any performance management program as itprovided a link between job behaviors and the organization`sstrategy. The purpose and process of every job position should bewell understood to be able to determine how to measure and evaluatethe performance. This provides clarification on every employee’saccountability making it possible to establish appropriate goalsbased on where an employee accountability starts and ends (Haynes &ampBobrow, n.d).

2.1.4Documentation

Documentationis an obvious requirement for every human resource management issue.Recording specific behaviors with correct dates and consequences iskey to establishing a comprehensive performance assessment. This alsohelps to eliminate judgmental terms that may cause misunderstandings.Documented evidence on performance fosters dialogues that is based onfacts. Documenting performance should be done on a continuous basisover time to prevent current actions influencing the judgment on theoverall level of performance. Maintaining documentation over timeensures a balanced picture of employee performance is attained andaccurately reveals areas of improvement.

2.1.5Goals Identification

Goalsthat are carefully crafted have a high influence on the effectivenessof an organization`s productivity. It is, therefore, important thatemployees are guided to understand their job requirements clearly,and the expected quality and quantity they are needed to produce.This enables them to set realistic goals and expectations. Managersshould also be able to reward the right behavior, which will benefitthe organization.

2.1.6Communication Plan

Communicationalso allows the management team to explain how the system beingintroduced will address those issues. Communication effort,therefore, is the first step in changing an organization’s cultureand highly influences the level of success of the implementationprocess. Communication, therefore, should focus on explaining thebenefits of the new system to all parties. All concerns that havebeen raised by the organization`s members should be collected, andthe issues raised be incorporated into the communication efforts.This therefore calls for a systematic approach to be used whendeveloping the organization`s performance management program(Pulakos, et al., 2004). Three phases should be considered whichinclude the preparation stage before the appraisal exercise,conducting the appraisal meeting and the follow up after theexercise.

2.2Phase II: During the appraisal process

Appraisalmeetings are stressful exercises to both the employees andsupervisors. Supervisors face challenges due to the uncomfortablepositions they are put when needed to confront poor performance andgive appropriate ratings. If the scores given are not accurate, andthe feedback given is not honest, motivation to higher performancewill be undermined. It is important for the appraisal meetings to bewell organized giving each party enough time to address all issues toarrive at common understandings (Haynes &amp Bobrow, n.d).

Fistit is important to have an agenda in place in advance so that boththe parties get to know what they expect. This can include a reviewof the performance appraisal form and the ratings to be used.Employees’ opinions on the ratings can also be considered and areasof improvement identified as well as the need for personaldevelopment and career advancement opportunities determined. Theinterview should be focused on the employees’ behavior and nottheir personality. This should be describing events and the behaviorthat can be rewarded (Pulakos, et al., 2004).

Feedbackis also important in the appraisal process, should be constructive,and focused on behaviors that can be changed. The management teamshould also offer suggestions and alternative ways on how employeescan improve or change those behaviors. Employees should be givenchange to suggest on how they think the behaviors under discussioncan be changed. Employees, therefore, should be included in theproblem-solving process and be allowed to suggest ways to avoid themistakes they made previously (Haynes &amp Bobrow, n.d).

Theimprovement being recommended should be specific regarding the amountof improvement expected and timelines should be given to employees inwhich they should make corrections to their behaviors. Both positiveand negative consequences should be identified. Employees shouldunderstand what they would gain or lose from the changes they arebeing requested to make. An action plan should be made, and employeesshould be involved to give their input. When an employee input isconsidered, the chances of reaching the goals being set are higher.Follow-up meetings should be set to evaluate employees’ progress onthe set goals and the action plans. This will enable supervisors toidentify arrears that employees need support.

2.3Phase III: After the appraisal meeting

Performanceappraisal should be undertaken as a continuous process. Employeesshould constantly be guided and provided opportunities to train anddevelop their capabilities for their jobs. It is, therefore, criticalthat all employee performance is monitored continuously throughfollow-up meetings and observations through their supervisors andworkmates (Haynes &amp Bobrow, n.d). This demonstrates theseriousness of the appraisal exercise preventing employees from goingback to the problems that were affected during the appraisal meeting.Immediate feedback on behavioral changes is important. This includesacknowledging good performance and denouncing bad actions on thespot. Providing support through training, mentoring is impotent as away to ensure continued efforts to improve. This lets employeesunderstand that the management team is willing to make them better intheir work for the general success of the organization (Pulakos, etal., 2004).

Appendix1

Appraisalform

Appraisalform

Employee

Position:

Supervisor

Department:

Datefor Completion:

Self-assessmentby Employee:

Reviewand Completion by

SupervisorInstruction:Kindly issue this form in person to every employee in your departmentnot later than 15thFebruary 2016 and request the employees to complete and return theirself-assessment to you by 22ndFebruary 2016. Once received the completed self-assessment form fromthe employees, complete the supervisors section and return it to theHuman resource manager by 28thFebruary 2016.

EmployeeInstructions:Kindly complete and return you self-assessment to your supervisor by22ndFebruary 2016. Feel free to ask for clarification from yoursupervisor or with the Human resource manager.

RatingScale:

  1. Unacceptable (Low)

  2. Needs improvement (below average)

  3. Satisfactory (average)

  4. Outstanding (above average)

  5. Excellent (consistently exceeds standards)

SECTION1: Performance of Key Job Duties

EmployeeInstructions:Kindly review your job descriptions as per the attached copy and makethe necessary changes you desire and rate your performance of the keyduties listed below.

Employeescore:

Comment:

Supervisorscore:

Comments:

SECTION2: Completion of Annual Goals

Scoreon Specific Goals in 2015

Goal1.

Employeescore:

Comments:

SupervisorsScore:

Comments:

Goal2.

Employeescore:

Comments:

SupervisorsScore:

Comments:

Goal3.

Employeescore:

Comments:

SupervisorsScore:

Comments:

SECTION3: General Performance

  1. Workload and completion rate (The quantity of work undertaken and rate of completion)

Employeescore:

Comments:

Supervisorscore:

Comments:

  1. Quality of Work (accuracy in deploying work, achieving company standards and tidiness)

Employeescore:

Comments:

Supervisorscore:

Comments:

  1. Job Knowledge (Understanding of the job requirement and ability to use equipment needed)

Employeescore:

Comments:

Supervisorscore:

Comments:

  1. Dependability (Self-supervising, punctuality and attendance rating)

Employeescore:

Comments:

Supervisorscore:

Comments:

  1. Teamwork (ability to work with others, cooperative, ability to handle criticism constructively)

Employeescore:

Comments:

Supervisorscore:

Comments:

  1. Policy Adherence (Ability to work as peer company policies and procedures)

Employeescore:

Comments:

Supervisorscore:

Comments:

  1. Personal Character

Employeescore:

Comments:

Supervisorscore:

Comments:

SECTION4: General Rating

Employeescore:

Comments:

Supervisorscore:

Comments:

SECTION5: Recommendations on personal improvement and development

Employeescore:

Comments:

Supervisorscore:

Comments:

Section6: General Comments:

EmployeeComments:

Employeesignature:

SupervisorComments:

SupervisorsSignature:

HumanResource Manager Signature:

Copy:Direct Employee Supervisor

OriginalPersonal File

References

Aguinis,H. (2014). PerformanceManagement.New York: Pearson Education Limited.

Alamchandani,P. (2014).Forced Ranking Performance Appraisal Method: Is it really required?http://www.hr.com/en/magazines/all_articles/forced-ranking-performance-appraisal-method-is-it-_hr26wbz9.html

Benson,E.G. &amp McDemermott, M. (2015). HowCan Performance Appraisals be More Effective?Retrieved 11 January 2016 from:http://ceo.usc.edu/news/how_can_performance_appraisals.html

Chattopadhayay,R. &amp Ghosh, A.K., (2012). Performance appraisal based on a forceddistribution system: its drawbacks and remedies, InternationalJournal of Productivity and Performance Management,61(8), 881-896.

Haynes,K. &amp Bobrow, W. (n.d). HowTo Design And Implement An Effective Performance Management Program.Retrieved 11 January 2016 from:http://www.allaboutperformance.biz/pdfs/HRperformance.pdf

Oberoi,M. &amp Rajgarhia, P. (2013). WhatYour Performance Management System Needs Most.Retrieved 11 January 2016 from:http://www.gallup.com/businessjournal/161546/performance-management-system-needs.aspx

Pulakos,E.D. et al. (2004). Buildinga High-Performance Culture: A Fresh Look at Performance Management.Retrieved 11 January 2016 from:http://www.hrmaturity.com/wp-content/uploads/2013/06/SHRM-Perf-Mgmt-EPG-FINAL-for-web.pdf

Sprenkle,L. (2002). ForcedRanking – A Good Thing for Business? Accessed11 January 2016 from: Retrieved 11 January 2016 from:http://www.workforce.com/articles/forced-ranking-a-good-thing-for-business.

Close Menu