A performance appraisal system is an essential tool that assesses employees' performance. Consequently, the administration team can develop effective strategies to motivate and train the underperforming employee and reward the high-performing ones. As a human resource professional in a medium-sized community hospital, I agree that the organization requires a performance appraisal system that will promote, motivate and recognize employees' performance. As a result, the hospital will achieve its mission of providing a comprehensive range of healthcare services because an effective performance appraisal will help in retaining employees and motivating them to offer quality services in their sectors. As an HR professional, I would recommend the organization adopt an alternative appraisal system instead of retaining the original one or using the three-level system.
Types of Performance Appraisal System and the Preferred One
There are several types of appraisal systems that organizations can apply. A business can use management by objectives appraisal system, a result-based evaluative program (Idowu, 2017). Organization's stakeholders: employees, subordinates, and supervisors design the performance goals. This system begins with the formulation of clear objectives for the employees. Secondly, a plan on how to achieve the objectives is created, and lastly, the employees are permitted to implement the designed goals (Idowu, 2017).
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Additionally, businesses can also adopt the 360-degree appraisal system, which involves opinions from diverse people who interact with employees (Idowu, 2017). Most of the people involved in providing employees' reviews include managers, co-workers, and customers. The employees are also allowed to give opinions about themselves and their performances.
The 720-degree is also another type of appraisal performance system. This system is an intense form of 360-degree system, and it focuses on reviewing the upper-level management team ( Aggarwal & Thakur, 2013 ). The 720-degree system focuses on customers' and investors' perceptions about the organizations' work. Therefore, they are considered the primary reviewer; however, the subordinates also provide their reviews, especially during the senior management team's evaluation. Furthermore, an organization can use a behaviorally anchored rating scale (BARS) as an appraisal system. BARS rates employees based on work behavior incidents that could be positive or negative ( Aggarwal & Thakur, 2013 ). It uses behavioral statements to determine multiple levels of performance.
Lastly, a graphical rating scale appraisal system is commonly used in many organizations. It contains a rating checklist that the administration team rates employees on a continuum ranging from poor to excellent. As the hospital's HR practitioner, I would suggest adopting management by objectives as the third alternative.
Analysis of my Proposed Solution
I have proposed using the third alternative instead of the original or three-level system developed by the administration team. Both the original and the three-level system limit the achievement of the organization's goals. They also do not support the organization's strategies. One of the primary objectives of the hospital is to provide a comprehensive range of quality services. The initial five-level appraisal system cannot facilitate this goal's achievement because it cannot differentiate performance outcomes in an organization that constitutes a broad spectrum of healthcare professions. Furthermore, the third level system has been rejected by most employees who deem it ineffective.
Fortunately, using a third alternative accepted by all the employees will facilitate achieving the organization's goal. It should be designed in a way that motivates employees. Additionally, it should consider the broad spectrum of professionals and create different expected outcomes. Using management by objectives will help achieve the organization's goals because all participants are involved in establishing the goals. Furthermore, since employees are engaged in designing the objectives and strategic planning, they will focus on their specific professions.
Weighing the Impacts of Minority and Majority groups
The minority group complained about the original appraisal performance system while the majority did not. Rejecting the minority group request and using the majority system will prompt various implications and consequences. Suppose the minority request is not considered, they will lose a sense of belonging in the organization. Consequently, it will demotivate them, thus affecting their overall performance. Additionally, using the employee-rated system will create an unhealthy working environment because it may feel superior to the minority. Furthermore, it may weaken teamwork as the two teams view each other as rivals. As a result, it will affect the organization's general performance.
Outcomes of Adopting Management by Objectives
Management by objectives is most likely to lead to better management. A good management process defines the organization's objectives clearly and provides a plan to be adhered to by employees. All employees will understand the hospital goals and what is expected of them. Therefore, this alternative system will improve the organization's performance. Additionally, this system will help in clarifying the hospital's roles and structures of various departments. The objectives will be designed based on the employees' profession.
Role of HR Practitioner and SHRM Behavioral Competency
The HR practitioner can help advance the proposed HR solution by training the staff about the changes and their significance. As one of the HR practitioners, I will influence the eventual outcome by convincing the administration team about the benefit of adopting management by objectives. Subsequently, making the implementation of the system easy. Additionally, I will consult the top managers for their views regarding the plan. Lastly, to minimize the possibility of system rejection, I will engage the employees to provide their views.
The SHRM behavioral competency constitutes knowledge, skills, and abilities that influence a particular action ( Badran & Maayouf, 2019 ). One of the most applicable competencies in the successful resolution of the hospital's challenge is communication. Human resource managers should possess the ability to conduct concise and informative communication. The proposed solution should be communicated to all employees and senior management. Additionally, through communication competency, the HR practitioners should listen and address other people's concerns.
References
Aggarwal, A., & Thakur, G. S. M. (2013). Techniques of performance appraisal-a review. International Journal of Engineering and Advanced Technology (IJEAT) , 2 (3), 617-621.
Badran, N., & Maayouf, M. (2019). Does SHRM Body of Competency and Knowledge behavioral competencies be beneficial for Hotel HR Managers? The Case of Cairo Five-Star Hotels. International Journal of Heritage, Tourism and Hospitality , 13 (2), 299-313.
Idowu, A. (2017). Effectiveness of Performance Appraisal System and its Effect on Employee Motivation. Nile Journal of Business and Economics , 3 (5), 15. https://doi.org/10.20321/nilejbe.v3i5.88
