This “Case Study for Practice” section explores the theory of Human Resource Management subject and helps you provide a practice of solving a case study by applying the theoretical as well as practical knowledge.
Here we present Human Resource Management Case Study For Practice:
Touch Communication bases its employees annual pay raises on how well they perform their job duties. For the past many years the ratings have hovered around 10% of the basic pay. Through a survey conducted by the HR, it was realized that employees did not see a connection with pay and performance. Majority of the workers were given an excellent rating by their supervisors, consequently there was not much difference in the merit raises awarded to the employees. The General Manager, HR felt the supervisors were not doing justice to their task of appraising their employees objectively. As a result, a new system for appraising performance was developed under which the supervisors had to distribute the employees in various categories based on their performance ratings. The top 10% got ‘excellent’, the next 20% got ‘very good’, next 35% got ‘satisfactory’ and the lowest 10% got ‘unsatisfactory’.
After the system was put in place, there was even greater resentment towards the supervisors and allegations of favoritism by the employees. The employees could not understand why their performance had fallen suddenly.
1) Identify the problems in the appraisal method originally adopted by the company? Is the management’s decision to install the new procedure appropriate?
2) What can the management do to address the problem?