CASE STUDY 1: PERFORMANCE MANAGEMENT SYSTEM

3T is a large fast food chain which conducts a quarterly

performance appraisal of their employees as basis for
monitoring their performance and for promotion.
For the past ten years, the company has been practicing this
personnel procedure. The management does not want to
change the appraisal system because they have been
accustomed to the practice. When Ms. A assumed the office as
the new HR maange of the 3T Company, she observed the
following.

1. The frequency of the required performance appraisal

(that is, four times a year), there were times when the
activity is not conducted as scheduled. Delays in the
appraisal occur and the quarter performance appraisal is
not actually realized in some departments.

2. The performance appraisal system a routine activity that

many raters tend to just or copy the previous rating given
to their subordinates.

3. The inadequate interval between ratings, causes the HR

office not to have enough time to review the progress of
the employee based on the results of the appraisals.
Hence, no appropriate actions were taken. Since
evaluation is done every three months, the HR office finds
itself preparing for another evaluation activity despite the
 fact that the results of the previous evaluation have not
yet been acted upon.

4. The purpose of the performance appraisal is not fully

understood by some employees. Some of them complain
that the activity is used by their supervisors to punish
them or to assert the supervisor’s superiority over their
subordinates. Employees feel that their supervisors gave
subjective ratings, favoring those are close to them, while
rating only on the average the others.

5. The performance evaluation instrument is common to all

employees coming from the different sections/positions.
Criteria is for evaluation do not specify the duties and
responsibilities of the employees being evaluated. Some
criteria are not very much related to the performance of
their job.

Questions:

1. What can you say about the performance evaluation system

of 3T Company?
2. What do you think are the advantage/disadvantages of
conducting a quarterly performance evaluation?
3. There is a problem in the attitude of some employees or
subordinates on how their supervisors rate them. If you are
Ms. A, what can you do to address this problem?
4. There is a problem in the performance evaluation
instrument itself. As a HR manager, what steps would you
undertake to revise and improve the instrument?