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Performance Management and Appraisal: Case of MAS Linea Aqua

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The Human Resource department manages to get all the appraisal done on time and there is hardly any delay in the performance appraisals. Flexibility Determination of performance expectations are been clearly discussed between the employee and the manager during the appraisal and therefore it is a flexible process. Department Managers are forced to have a fixed percentage of employees under each rating. The performance appraisal system is a hundred percent transparent system because appraisals are done in one on one basis. When comparing the appraisal system and the performance management procedures with the competitors, the company is in an excellent position.

This can be depicted in organizational performance as well. There can be one department which has many high performers in a particular year, while there is another department which has a lot of low performers. But due to the forced Bell curve, management is forced to rate some people who have performed well, under a lower rating while they rate some low performers under a higher rating than they deserve. Due to the forced Bell curve, the central tendency effect also can be seen very often in the performance evaluations and this leads to de-motivation of employees.

It can be better and fairer to do a free rating process and when it comes to performance-related pay, it can be decided what percentage to pay based on a number of employees fall under each rating level. This method will treat people equally and fairly than the current method. The output of the method would be motivated employees and the outcome would be a better achievement of organizational goal as a result of better achievement of individual goals.

Recency effect and inconsistency in rating are some other commonly experienced difficulties in appraisals at Linea Aqua. These problems can be minimized by educating and training Managers well on doing appraisals. Also, it is recommended to introduce a criterion to test the knowledge of line managers on appraisals.

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