Module Number

Performance management

Module: Critical Thinking

Critical Thinking: Case study

Student id:

Date:
 Introduction

Technological innovation and practices Inc is lacking in the performance assessment

system. There is a practice of conducting employees' performance assessment once a year. An

improper form for conducting performance evaluation is used in the firm. All these lacking

factors directly impact the performance of employees.

The annual performance review system

A performance review system is a process of evaluating or assessing the performance of

employees. With the help of this system employees are given projects and they are suggested to

improve their lacking areas. With the help of a performance review system employees are

motivated to grow in their performance. A performance review process that is conducted once a

year is known as the annual performance review program. Technological innovation and practice

Inc evaluates the performance of its employees on annual basis (Dean & Dean, 2019).

Advantages and disadvantages of the annual review system

Advantages: employees and managers are not supposed to arrange meetings on regular

basis there is relaxation to conduct a meeting and take performance review once a year. The

annual performance review system provides broad access to information as the data about a

whole year is saved or recorded and can be accessed by any manager if any changes in the

management team occur in that specific year. Performance can be quantified easily. Employees

are motivated to give better performance and show progress over time. The annual review

process is a default system and acknowledges by every manager.

 Disadvantages: annual performance review process causes stress for employees and

managers. It is difficult to compare the performance of employees based on the annual

performance review system. Another drawback of this approach is a time issue. When feedback

is not conducted quickly it is not effective. To make the review process effective and useful it

should be conducted twice a year or even more. Review processes do not account for

collaboration and teamwork. The annual performance review process limits agility. When

employees are not given feedback quickly they are unable to decide their goals and objective for

the next projects (Nickson, 2020).

Characteristics of a good performance review system

Regarding the evaluation process, the performance review period is an important point of

consideration. It is suggested that performance review programs should be conducted semi-

annually or quarterly. It is not good to conduct a performance review once a year. Because

conducting a review after an era is not sufficient to discuss performance issues of employees.

People often value frequent feedback on their performance. Employees are often curious to get

remarks about their performance. So it is recommended that technological innovation and

practice Inc should arrange formal sit-down reviews on a semi-annual basis. A 360-degree

feedback system should be used. It is the process of collecting information from performance

touch points from all around. This system enables employees to get feedback about their

performance and let them set their goals and objectives accordingly.

Characteristics of a good performance evaluation form

Information about the performance of employees is collected with the help of a form

which is mostly administrated online. Then with the help of collected data, the improvement
factors regarding employees' performance are also suggested. Based on this information news

tasks and activities are assigned to employees. So while setting the performance evaluation form

every important factor should be added for a complete evaluation. A good performance

evaluation form contains basic information about employees. This section includes information

about job title, position and roles of employees. A second important component is the objectives

and standards; this section includes a summary of the job activities of employees. Then come

behavioural indicators, major achievements and contribution of the employee in the growth of a

firm. Development needs, plans and goals should also be added in the form. Performance

touchpoints and comment section should also be added and at last space for signature should be

given. These are components of a basic performance evaluation form (Luz Yolanda Toro Suarez,

2015).

Current performance evaluation form used by technological innovation and practice Inc

The current performance assessment form of technological innovation and practice Inc is

lacking in useful components. The form contains only three factors and there is no space for

comments or suggestions but the assessment form contains a Likert-type scale to rate the

performance of employees. The current performance evaluation form assesses the performance

of employees based on their communication, problem-solving skills, and teamwork abilities.

Employees are not allowed to give feedback about fellow employees but the feedback about the

performance of the workforce is taken from management only. Employees are only present for

the meeting and cannot provide any rebuttal if they do not agree with the rating given.

Recommended improvements for performance evaluation form

 Technological innovation and practices should improve its performance assessment

method. In the feedback process or evaluation, process employees should also be included. The

performance evaluation form of the firm should also be enhanced by adding every important

factor. The form should be added with basic information of employees, decision-making skills

teamwork abilities, communication, achievements, goals, problem-solving skills, time

management, and relationships with fellow employees should be added in the form. Any scale

for measuring the performance can be used. With every section or assessment point space for

comments should be given. Employees and managers should be allowed to give comments on

performance.

Relationship between annual performance review process and employee motivation

Performance evaluation is one of the important aspects of the operations of HR

departments. It is the responsibility of the HR department to appraise the performance of

employees and performance can be appraised if evaluated and assessed. When the performance

of employees is assessed properly and they are appreciated or suggested accordingly it motivates

them to give their best performance. Performance assessment is an aspect of the performance

management system. Performance management impacts the motivation level of employees.

When after being assessed an employee receives constructive criticism that is a mixture of

appreciations and recommendations are more likely to become a factor of motivation. If

feedback is been discussed with employees usually accept it and incorporate ideas. They show a

desire to improve their performance and grow in their job-related activities. Feedback often helps

employees devising their plans and achieving organizational goals. When performance

management is handled positively employee always finds it motivating. Feedback improvement

factors in the performance of employees. Performance management help employees creating

plans, and appreciation and constructive feedback motivate them to work hard and give their best

performance.

Conclusions

To keep employees motivated and to keep their performance aligned with job task a

proper performance management system should be adopted by the firm. A performance review

system is a process of evaluating or assessing the performance of employees. With the help of

this system employees are given projects and they are suggested to improve their lacking areas.

Companies should arrange formal sit-down reviews on a semi-annual basis. Information about

the performance of employees is collected with the help of a form which is mostly administrated

online. Employees and managers should be allowed to give comments on the performance of

fellow employees. Performance evaluation is one of the important aspects of the operations of

HR departments. Performance management help employees creating plans, and appreciation and

constructive feedback motivate them to work hard and give their best performance.
 References

Dean, J., & Dean, J. (2019). The performance management process. Implementing Performance

Management, 25–29. https://doi.org/10.4324/9780203218297-3

Luz Yolanda Toro Suarez. (2015). Performance Management (4th ed.).

https://www.dropbox.com/s/rq2hq1gwmxfaw93/Performance_Management

%2C_4th_Edition %288%29.pdf?dl=0

Nickson, D. (2020). Performance management and appraisal. Human Resource Management for

Hospitality, Tourism and Events, 185–206. https://doi.org/10.4324/9780080966496-16