Swati Rajput (2006 – 2008)
General Electric Money (GE Money) Performance Appraisal
The Report is Analysis of the Performance Appraisal of the GE Money.
The findings of the report begin with an overview of GE Money corporate history, its origin, developments, expansions, strategies etc. there after an intense study about the performance appraisal system, its policies, process, objectives etc. and thereby a discussion about the chosen area i.e. performance system at GE Money.
Performance Appraisal is an integral part of Human Resource Management. And HRM deals with personnel i.e. people.
“People” is the most important and valuable resource that every organization or institution has in the form of its employees. Dynamic people can build dynamic organization. Effective employees can contribute to the effectiveness of the organization.
HRM has multiple goals, which includes employee’s competency development, employees’ motivation development and organizational development. Employees require a variety of competencies, knowledge, attitude skills in technical areas, managerial areas, behavioral and human relations areas and conceptual areas to perform different tasks or functions required by their jobs.
HRM aim at constantly assessing the competency requirements of different individuals to perform the jobs assigned to them, effectively and provide opportunities for developing these competencies. As HRM deals with humans it is necessary to keep a check on their performance after a regular interval of time given jobs, it is necessary to correct their actions, a need to appraisal their performance. The process appraising for doing their work effectively is than known as performance appraisal system.
The main objectives of the study are to throw the light on the different policies, techniques of the performances Appraisal system of the GE Money.
To show the implementation of the appraisal methods used to get the information about the performance.
Today, many organizations are structured very differently from the way they could have been 10 years ago. The implication of this is that performance appraisal cannot be the same as it was then and still claim to be relevant.
The traditional model of a centrally devised and run appraisal system, with an emphasis on assessment and overall ratings of performance, applied to all staff in the same manner, is no longer appropriate to a high proportion of advanced companies., and is likely to be decreasingly suitable for many organizations as to who is the most appropriate person to be the appraiser for an individual is enough in itself to indicate how things have changed. Performance appraisal centered on performance improvement and development, is likely to be more successful- and perhaps even essential for organizational growth. In recent years the emphasis on bottom line considerations has been so strong, and the changes in organizations so great, that an atmosphere of considerable uncertainty and a focus on short term objectives have prevailed. These are conditions that erode the psychological security necessary for individuals to be willing to take the risks involved in innovation. Yet the need for organizations to foster innovation has never been stronger and is recognized right up to government levels. A more developmentally and future focused appraisal system can contribute to creating the right conditions for innovations.
The HR department, and/or external consultants generally do it. There are a number of strategies that can be used, individually or in concert, to effect change in this area:
The use of questionnaire surveys of attitudes to management, to communications, to reward systems and to the current appraisal arrangements is often a powerful way of highlighting problems and the need to take action.
The use of external examples is something that tends to hold senior management attention. Knowing what other, high performing and respected companies are doing can have a salutary effect. No board of directors likes to feel that the company is looking dated and backward in its approach, and that the competition is stealing a march on them. The HR department can be judicious in picking its examples for comparisons.
Using research findings on appraisal from studies done elsewhere can be quite useful in presenting a case in the more science and technology based companies. This can be done through written briefings, but is usually more effective if embedded with a presentation by Consultants and outside experts. Such people can make boardroom presentations about what is going on in appraisal and what the latest thinking is. They will often, and probably quite unjustifiably, are more listened to than would the organizations own HR staff.
Getting senior management to participate in any kind of strategic analysis of where the organization is going, what it will look like in a few years time, what sort of staff it will need, and so on, should in veritably lead to a reconsideration of how people are selected, appraised and developed. This kind of exercise may be facilitated by the HR department, with or without external consultants, and can be presented as part of organizations development as a whole rather than as simply a mechanism for reviewing appraisal.
The adoption of performance management within the organization can act as a vehicle for the review of appraisal arrangements- indeed, it has to, as appraisal in one form or another is the pivotal mechanism of performance management.
The HR professional are always the key facilitators in bringing about changes in appraisal. Making appraisal a line led activity actually strengthens their hand. They are in position to guide and support, rather than being in the individual’s role of demanding and enforcing. They will have access to much wider knowledge and expertise in the area than will the line managers and they can use this to great effect in shaping what is set up and how it runs. By involving the line in setting the agenda for appraisal and in determining how it will run, the HR department is able to work alongside them in a more cooperative and positive relationship than is the case where appraisal is seen as an activity imposed by personnel and for personnel.
The next few years will probably see the shift in emphasis from 360-degree feedback as a development device to its use in appraisal.
It can be used for both purposes, though if it is to part of appraisal, one would hope that it would be treated as just one input to the process, rather than taking centre stage.
The enthusiasm and the speed with which 360 degree feedback has embraced are remarkable. The concept of multi-source, multi-level feedback makes a lot of sense and, if used well, should have a great deal to offer. It seems to suit the move towards the less hierarchical, more flexibly structured, and knowledge based organization of the future. But the parallels with psychometric testing are striking. Tests are often presented as easy to use, but actually they are only easy to use badly. And the merits of any one test are difficult to judge on superficial characteristics alone. The rush to use tests in the 1980s is similar to the wholesale adoption of 360-degree systems. In case of tests, it led all too often to poor practice, the presentation of deficient instruments to the market, and ultimately to increasing legal challenges. There is every chance that 360degree feedback systems will follow the same route if they are not introduced more carefully and examined more critically than is usually the case at present.
Employees should have a right to know what is being expected from him/her and how he / she is suppose to meet those expectations.
Performance appraisal is the best tool which employees have to analyze his/ her performance, accomplishments of goals and work expectation.
In GE they have a performance management under HRD department, which looks after performance appraisal of whole bunch of employees. GE has a well-defined appraisal system with three main appraisal techniques; namely EMS, Session C and 360 degree survey.
Employees are communicated well by their managers about how to fill the form or the techniques to be used to fill the form. Employees get ample opportunities to improve their skills and learning areas.
GE Company helps in the personality development of the employees by giving enough exposure about the market conditions and work environment.
Post September 11th and December 13th when economic situation was shattered, GE still stands high and showed a remarkable achievement in its field. In order to make sure that the employees don’t leave the company after they avail the benefits of training and development.
The above article was extracted from dissertations by the students of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR)
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