A Critical Analysis Of Employee Performance Appraisal Assignment Sample
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Introduction
Effective performance management is unique and extremely important concept widely used by businesses. The use of performance management is playing an essential role in increasing and improving organization efficiency and also enhancing employee’s performance to perform well in order to achieve organizational goals and objectives. In performance management, there is a key component used by businesses to examine the performance level i.e., performance appraisal process (Buckingham and Goodall 2015). Performance appraisal process is very effective way to evaluate and analysis the employee performance so that required development challenges and opportunities are identified.
This report will discuss performance management system in depth in order to understand its importance for improving company’s performance. In the context of it, performance management system of Capgemini will also be outlined by contrasting it with defined literature review and also with the difference in strategic goals is differentiated with individual or team goals. At the same time, performance appraisal process will also be conducted in order to identify a proper process used for performance appraisal of employees by a company. In addition, this report will highlight some shortcomings and good practices that are found while evaluating a performance appraisal process used by a company.
Background of Capgemini Company
Capgemini is global leading consulting company which provides consulting, outsourcing and technology services in more than 40 countries. In simple words, Capgemini is French multinational professional and consultancy business services which have its headquarters in Paris, France. The founder of Capgemini is Serge Kampf, who founded a company in 1967 as a data processing and enterprise management company (Capgemini, 2017). Capgemini emphasizes more on managing the performance of enterprise for which it focuses on staff satisfaction for which company engaged in doing continuous effort for creating and sustaining in a complex working environment. For measuring a performance management system, Capgemini uses digital performance management components or techniques in order to appraise the overall performance of employees.
Discussion
Performance Management
Performance management is defined as an activity which helps to ensure that goals and objectives of the company are met consistently in an efficient and effective manner. In other words, Schalk et al., (2013) clearly defined performance management as a system that is used by companies in order to examine and evaluate the performance of company, department, employee, workers as well as process used for developing a products or services. The main focus of performance management is to improve and develop the performance efficiency of employees as it is an effective continuous process where line mangers and employee work together in a group for meeting common goals and objectives.
Performance management system is considered as a strategy that is used by a company for analyzing the performance of the company for which it ling the system with HR policies and procedure. In oppose to it, Van Dooren et al., (2015) described that every company has different performance management system which they use for measuring and analyzing the performance of company and employees to some extent. In the research study of Buckingham and Goodall (2015), it is clearly explained that performance management is an important tool which is used by an organization for operational work as well as it provides support in managing organizational strategies and objectives. Capgemini defined performance management as a structural approach which is used to enhance the ability and capability of a company and its employees so that best quality of services is delivered with respect to strategic objectives. The performance management system used by Capgemini is also efficient as the company focuses on satisfying employees and developing their organizational goals and objectives (Vasconcelos and Kaminski, 2014). For Capgemini, maintaining an effective performance management is considered on top priority by a company as it addresses the clear performance efficiency of enterprise and employees. In addition, Capgemini performance management services help in motivating the employees by linking employee’s performance with organizational objectives.
According to Raffoni et al., (2017), performance management system is analyzed by linking the individual or group performance with organizational goals and objectives. But at the same time, it is found that Capgemini follows a successful performance management framework which consists of five components that helps a company to mobiles towards strategic objectives. In performance management framework, the top component is leadership and governance in which management team focuses on improving its communication system and providing a clear vision about organization objective (Capgemini, 2017). This component helps a company to achieve greater success by engaging organization towards implementation of a strategy.
On the other side, priority and measure is next component which Capgemini uses for identifying the risk and effects involved with performance management. During the study, it is also identified that Capgemini has invested in improving the performance management system and process used by a company. Similarly, capability and culture of Capgemini are highly dependent on the employee’s knowledge and teamwork performances (Capgemini, 2017). But at the same time, performance management system of Capgemini also emphasizes on information and insights which help the company’s employees to make their decisions effectively according to company’s ambition and action. Therefore, it can be stated that Capgemini is highly representing a long-term commitment which is done for improving the performance management system of a company.
Performance Appraisal Process
Performance appraisal process is considered as important aspects of the organization in regards to boost the morale of employees which directly influences the productivity of a company. According to Espinilla et al., (2013), different companies use several performance appraisal processes as per their organizational structure. Likewise, 3600 degree performance appraisal is a widely used process in the current scenario. This is because, 3600 degree allows the employee to get reaction about their performance not only from peers once but it also includes customer, stakeholders and investors response. This practice allows the employee to get the whole idea about their performance with gaining a different perspective. In a similar manner, Thurston Jr and McNall (2010) defined different process use by the companies in regards to evaluate the performance of employees. However, it includes certain steps such as establishing performance standards for the employees so that they will understand their roles and expectation which company wants to them. Measuring the actual performance of the employees is a next and important step for monitoring their performance throughout the year. Furthermore, the company compares the actual performance with the desired performance in order to find the deviation in the performances. The deviation indicates the area where the employee is lacking. On the Basis of deviation, an employer would guide the employee in order to bring improvement. Thus, this is the most suited process which helps the company to provide accurate and right feedback to the employees.
In a parallel manner, Boachie-Mensah and Seidu (2012) stated that Capgemini also focuses on the performance appraisal system in which it uses the appraisal rating system. In this, it develops the scale with 1-5 rating as a best or worst. The particular employee performance is rated by making compare with peers. The reason for adopting this strategy by the Capgemini is to judge the employee enthusiasm level regards to work. Basically, the aim of Capgemini HR manager is to measure the performance of employee not only based on their delivery but also their capability to work in a team with positive behavior. In addition to this, the company follows the round table initiatives to provide the appraisal to employees. This process provides support in terms to make an employee comfortable and relax. Besides that, HR manager in the appraisal process makes the employee clear that he/ she is evaluated on the basis of project rating as well as their code of conduct rating. With the use of bell curve, the manager decided the overall rating which is finally given to an employee at the round table. From this appraisal rating system, Liebowitz (2010) analyzed that both employer & employee able to conduct right appraisal process as employer able to judge properly the employee contribution while employee gets the right appraisal without including any type of biases. This system also helps in guiding the employees related to their strength and weakness. Therefore, Capgemini appraisal rating system is proved to be effective for their organisation in terms to retain an employee or reduce turnover. Such practices also attract higher productivity towards the firm. Depend upon this, it is depicted that performance appraisal is the crucial aspect for sustaining the organization at a longer duration.
Evaluation of the performance appraisal process
Capgemini uses the appraisal rating system for evaluating their employee performance and accordingly gives them hike. This system also provides good practices in the form of offer employee opportunity to bring improvement in their skills. In concern to this, it is found that Capgemini employees believe that the company offers good onsite opportunities to improve their skills and create employee friendly environment (Sanyal and Biswas, 2014). This practice becomes possible only because of company systematic appraisal processes as this system helps the company to rate the employees on the basis of their performance and their behavior in a group. So, these practices give the correct rate to employees without including biases. As it is fact that performance appraisal system has high biases chances in the organization. But with the rating method, the probability gets minimize and employee perceives right evaluation. Thus, this will contributes towards the enhancing ability of employee for performing a task successfully. Other than that, this system also assists in the improvement of employee’s weakness. It is because with performance evaluation, employer able to communicate its strength area and weakness to the company. At the same time, HR manager could also guide employee that how they overcome their weakness and convert it into their strength. Thus, this helps an employee to learn something and adds to their growth that’s directly reflects in task performances.
On the other side, there are some weaknesses that are also found in the performance appraisal system of Capgemini. Likewise, a rating system is sometimes proving to be inappropriate because employees feel de-motivated when they are compared to their peer members. It creates dissatisfaction among the employee which influences their work performance and relationship with peer members. So, the chances of occurring frustration are high with the rating system. At the same time, the major weakness that found in a company is that it does not adopt the 3600 degree appraisal process which is considered as a more relevant process and it is also used widely by the current organization. 3600 performance appraisals also contribute towards increasing employee’s satisfaction level. So, not using 3600 degree process is the biggest weakness that is noticed in their evaluation system. Moreover, Herrnstein and Murray (2010) identified that Capgemini appraises the employee only once in a year which is not considered as good practice as an employee does not get updated about their performance level on regular basis and this limit their skills to perform a certain task. So, it is important for the company to include the monthly performance appraisal system by making the separate department of the appraisal system. Such practices would help in achieving right technique to appraise the performance of employees.
Conclusion
From the above study, it can be concluded easily that performance management system is playing a vital role in improvement and development of business and employees performance in efficient and effective manner. While studying, it is clear that performance management framework used by Capgemini provides various potential benefits in terms of achievement of strategic goals, creating a performance culture, increasing level of satisfaction in customers and employees, developing performance efficiency and so on. On the other side, this report also helped in determining that Capgemini uses performance appraisal rating process for appraising the employee’s performance because company finds it useful and effective for rating the employee performance. In addition, this report also helped in identifying the weakness of using performance appraisal rating system is that it de-motivates and dissatisfies the employees. At last, it can be concluded that Capgemini needs to focus more on using different ways of performance appraisal system such as 3600 degree performance appraisal or following a proper set of steps of performance appraisal.
References
Boachie-Mensah, F. and Seidu, P.A., 2012 Employees’ perception of performance appraisal system: A case study. International Journal of Business and Management, 7(2), p.73.
Buckingham, M. and Goodall, A., 2015. Reinventing performance management. Harvard Business Review, 93(4), pp.40-50.
Capgemini (2017). Achieving performance improvement through Performance Management [Online] Available at: https://www.capgemini.com/2013/02/achieving-performance-improvement-through-performance-management/# (Accessed: 18th November, 2017)
Capgemini (2017). Our Company [Online] Available at: https://www.capgemini.com/our-company/ (Accessed: 18th November, 2017)
Espinilla, M., de Andrés, R., Martínez, F.J. and Martínez, L., 2013 A 360-degree performance appraisal model dealing with heterogeneous information and dependent criteria. Information Sciences, 222, pp.459-471.
Herrnstein, R.J. and Murray, C., 2010. Bell curve: Intelligence and class structure in American life. Simon and Schuster.
Liebowitz, J., 2010 The role of HR in achieving a sustainability culture. Journal of sustainable development, 3(4), p.50.
Raffoni, A., Visani, F., Bartolini, M. and Silvi, R., 2017. Business Performance Analytics: exploring the potential for Performance Management Systems. Production Planning & Control, pp.1-17.
Sanyal, M.K. and Biswas, S.B., 2014. Employee motivation from performance appraisal implications: Test of a theory in the software industry in West Bengal (India). Procedia Economics and Finance, 11, pp.182-196.
Schalk, R., Timmerman, V. and Van den Heuvel, S., 2013. How strategic considerations influence decision making on e-HRM applications. Human Resource Management Review, 23(1), pp.84-92.
Thurston Jr, P.W. and McNall, L., 2010 Justice perceptions of performance appraisal practices. Journal of Managerial Psychology, 25(3), pp.201-228.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. UK: Routledge.
Vasconcelos, D.M.D. and Kaminski, P.C., 2014. Development of a supplier and purchase order management product/service under the 4PL logistics concept: a case study. Product: Management & Development, 11(2), pp.125-135.
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