HRP Performance Appraisal WISAG Holding PLC
...tivation of every single employee has a direct impact on customer satisfaction. Motivated people tend to be more open to problems of other people and take responsibility to solve these problems in a constructive and creative way. Highly motivated employees and an investment in their development and improvement of their skills is the source of continues increase in productivity. Not only working environment has an impact on motivation but also an appropriate wage that reflects the efforts that has been attempted to satisfy customer’s needs. The employees are WISAG’s most important asset. The performance appraisal is therefore a perfect tool to identify, evaluate and develop the performance of WISAG’s employees to create a constructive working environment which is an essential part on the way to becoming the most successful service operator throughout Germany. Taking the importance of the employees to the company’s success into consideration, the performance appraisal used in the company is extremely important. It has to provide information on which promotion and salary decisions can be made, deliver an opportunity to review the subordinate’s work-related behaviour together with the subordinate and show an employee’s strengths and weaknesses. Providing feedback to improve the employee’s performance by identification of training and development needs is also necessary to ensure a constant development of competencies. 2 Analysis The measurement form used by WISAG is designed to measure the performance of each head of the 121 subsidiaries. The structure of the company is rather easy to understand. The holding is placed at the top level of the organization, controlling the 10 divisions mentioned earlier. These 10 divisions form the second level in the organizational hierarchy. The 10 divisions are in charge of 121 subsidiaries, forming the third organizational level. The head of each division acts as the supervisor and is responsible for about 12 subsidiary managers (subordinate) when it comes to the appraisal interview. Measuring and improving the performance of this group of leaders is very effective and important to the company’s performance because they are directly responsible for the largest group of the 16.000 people which is formed by the employees working on the operating level. Improving the subsidiary manager’s skills enhances the working conditions for every person working under their direct control. 2.1 Description of form and system The analysed performance appraisal consists of three different parts: Part 1: Introduction to discussion and interactive feedback This section is filled out by the subordinate. It helps the supervisor to define and understand the job taken by subsidiary manager. The technique used in this part can be regarded as a self rating that reflects the subordinate’s self-evaluation. To avoid performance appraisal problems it is necessary that both parties agree on the subordinates job standards. The first two questions concentrate on the subsidiary manager’s performance and his self-evaluation. The manager has to state what he has achieved in his role as a subsidiary manager over the last year and if he is satisfied with his performance or not. The third and the fifth question concentrates on the subordinates work patterns, what he likes and dislikes about his job. Questions six and seven try to evaluate the relationship between the division manager and the subsidiary manager. The manager’s current position and his perceptions of his future development are covered in questions eight and nine. This adjustment of performance perception is necessary to create a common basis for the second part of the performance appraisal. Part 2: Appraise performance This section is the actual performance measurement part of the performance appraisal. WISAG uses the BEHAVIOURALLY ANCORED RATING SCLAE model. This model combines the benefits of narrative, critical incidents and quantified ratings by anchoring a quantified scale with specific behavioural examples of good or poor performance . It can be classified as a competency based performance measurement appraisal, as the employee is measured in the main competency sectors, personal, entrepreneurial and social competency. 1. Personal competencies This part is considered to measure the manager’s competencies that have a direct impact on his role as the leader of the subsidiary 2. Entrepreneurial and strategic competencies The Entrepreneurial and strategic competencies are assessed to measure planning and organizational skills that are necessary to independently run a subsidiary 3. Social competencies Social competencies reflect leadership behaviour, the role in team working and the ability to accept criticism. These competencies will have a direct impact on the working environment for the manager’s subordinates. Each sector consists of three to eight hard and soft competencies. e.g. ability to co...