A PROPOSAL FOR PERFORMANCE APPRAISAL SYSTEM IMPROVEMENT

Abstract

This is a proposal for the implementation of an improved performance appraisal system in the C Squared Communications Inc’s performance evaluation system. The improved performance appraisal system incorporates the 360-degree feedback system in the company’s current performance appraisal system.

This proposal covers the background, problems, and the purpose of the proposed performance appraisal system improvement. The proposal also highlights the planning and scheduling of the improved performance appraisal system. The proposal will also explain the staffing requirements for the proposed performance appraisal system, budgeting needs of the system and authorization.

 

 

Table of Contents

Background and Goals. 4

Proposed Plan. 5

Statement of the Problem.. 5

Statement of Purpose. 6

Work Schedule. 6

Staffing. 8

Budget 9

Conclusion and Authorization. 9

References. 11

 

 

 

 

Background and Goals

It is noticeable that there is an existing performance appraisal system in C Squared Communications Inc. that is mainly used as an evaluation and promotion tool for the employees. In the current performance appraisal system, it has been established that each employee is evaluated by their supervisor on a bi-annually basis. The performance appraisal system that is currently used by C Squared Communications Inc. is highly biased and unreliable since the information availed for the purpose of employee performance appraisal is mainly produced by individual supervisors and lacks a cross-checking mechanism. The current performance appraisal system that is used by the company also gives a limited scope of the employees’ performance since only one individual evaluates the employees. This shows that the currently used system lacks the qualities of a good performance appraisal system (Anderson, 1993, p. 48).

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Due to the various weaknesses associated with the currently used performance appraisal system in the company, this document proposes the adoption of an improved performance appraisal system that incorporates the 360-degree feedback system in the company’s current performance appraisal system. Since C Squared Communications Inc.’s objective as far as employee promotion and evaluation is concerned, is to promote the employees having the required knowledge, skill, and experience, the 360-degree feedback system would provide more reliable and accurate evaluation information for performance appraisal. Other benefits of using the 360-degree feedback system include increasing the employees’ self-awareness, promote teamwork, increases employee accountability, and clarify behaviors (Rogel, n.d.).

The 360-degree feedback system is a process or system that involves performance analysis of an individual or organization done by other persons or groups of people close to the individual or organization (Avery, 2000, p. 148). Therefore, the 360-degree feedback system focuses on providing appraisal information from various sources of such information, thus covering a wider scope and eliminating biases associated with individual assessment.

Proposed Plan

The 360-degree feedback system usually uses evaluation information from various sources such as individuals close to the one being analyzed (Rao, 2000, p. 87). Some of the sources of evaluation information for the 360-degree feedback system may include fellow employees, supervisors, and self-evaluation. The 360-degree feedback system may also use evaluation information from external sources such as customers, suppliers, and critiques.

The proposed performance appraisal system for C Squared Communications Inc. will use both internal and external sources of evaluation information. The internal sources of evaluation information that will be used in the improved performance appraisal system include fellow employees and supervisors. To collect this evaluation information, questionnaires will be filled in by these individuals and analyzed by management to establish the employee’s performance. Their decision will then be supported by information provided by external sources of evaluation information. The external sources of evaluation information that will be used for the 360-degree feedback system are the company’s customers. To collect this assessment information, the customers asked to rate the level of service provided by employees.

Statement of the Problem

The performance appraisal system currently used by C Squared Communications Inc. is highly biased and unreliable. The performance appraisal system also gives a limited scope of the employees’ performance since only one individual evaluates the employees. Therefore, it is recommended that C Squared Communications Inc. should adopt an improved performance appraisal system that is less biased and unreliable. Incorporating the 360-degree feedback system into the company’s current appraisal system can help eliminate the shortfalls of the currently used appraisal system.

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Statement of Purpose

The purpose of this proposal is to give an in-depth analysis of the 360-degree feedback system and provide a guideline for the implementation of the proposed performance appraisal system for C Squared Communications Inc. To achieve its purpose, the proposal gives a background of the 360-degree feedback system and the goals of an effective performance evaluation system. The proposal also explains the plan that shall be used to implement and integrate the 360-degree feedback system with the currently used performance appraisal system.

Through analyzing the appraisal system that is currently used by C Squared Communications Inc and the goals of an effective performance evaluation system, the gaps, problems and shortcoming of the currently used performance appraisal system can be established and a better performance appraisal system can be developed. Since the 360-degree feedback system has been suggested to be the answer to the currently used performance appraisal system’s shortfalls, the 360-degree feedback system can be examined in light of the identified gaps, problems, and shortcomings.

Work Schedule

Once approved, the 360-degree feedback system will be incorporated into the currently used performance appraisal system. Since performance appraisal is currently done on a bi-annual basis in C Squared Communications Inc, incorporating the 360-degree feedback system into the currently used performance appraisal system would mean evaluation is done twice in a year. The first evaluation period will be done in the month of June of every year while the second evaluation period will be done in the month of December of every year.

The performance evaluation criteria would involve scheduling of the various activities involved in the proposed 360-degree feedback appraisal system. The first activity that should be considered when undertaking the 360-degree feedback appraisal is collecting appraisal information from internal sources using the developed questionnaires. The internal sources include fellow employees and supervisors. The second activity that should be considered when doing the 360-degree feedback appraisal for C Squared Communications Inc’s employees is collecting appraisal information from external sources using employee rating forms. The external evaluation information will be collected from the company’s customers. The evaluation information collected from external sources will act as a cross-checking mechanism for the evaluation information collected from internal sources, thus making the proposed performance appraisal system more reliable and less biased. The third activity that should be reflected on is the analysis of the collected evaluation information. After the analysis, the training needs of the employees can be established, and reliable promotion decisions can be made. The below schedule will be used to undertake the 360-degree feedback appraisal for the two months.

June Evaluation Period

Development of employee rating forms for customers                      June 1

Questionnaire development and mailing                                            June 1-6

Deadline for returning questionnaire                                                  June 15

Collection of Customer rating forms                                                  June 20

Data tabulation and processing                                                           June 24-26

Compilation and final report                                                              June 28-30

December Evaluation Period

Development of employee rating forms for customers                      December 1

Questionnaire development and mailing                                            December 1-6

Deadline for returning questionnaire                                                  December 15

Collection of Customer rating forms                                                  December 20

Data tabulation and processing                                                           December 24-26

Compilation and final report                                                              December 28-30

Staffing

            Though the proposed appraisal system will mainly use information from both internal and external sources, the information collected will be compiled and analyzed by the human resources staff. Since the proposed 360-degree feedback appraisal system will be mainly used for promotional purposes and evaluating employees’ training needs, the final decision regarding promotion of employees will be made by the human resources department manager (Peacock & Hailstone, 2007, p. 62,).

Junior employees working in the human resources department will assist the departmental manager with the development of employee rating forms for customers, questionnaire development, a collection of evaluation information from both the internal and external sources and compilation and analysis of the evaluation information. The evaluated information will then be presented to the departmental manager for final decision-making.

Budget

The proposed 360-degree feedback appraisal system may be more costly than the currently used performance appraisal system, but its benefits far outweigh the currently used performance appraisal system. The reason for this is that the 360-degree feedback appraisal system provides more reliable and accurate evaluation information for decision-making. Below is the costing of the various activities involved in the 360-degree feedback appraisal system if the implementation process services were outsourced.

Activity Estimated Hours Rate Total
Questionnaire and employee rating forms development 6 $180/hr 1,080
Data processing and tabulation 18 $60/hr 1,080
Analysis and findings 21 $180/hr 3,780
Preparation of final report 10 $180/hr 1,800
Personnel 40 $60 2,400
TOTAL COSTS     10,140

Conclusion and Authorization

From this proposal, it can be established that it is of great significance that C Squared Communications Inc considers using the improved performance appraisal system. The reason for this is that the 360-Degree Feedback system will enhance the efficiency of the current performance appraisal system since the employees’ performance information may be obtained from various sources (Lepsinger & Lucia, 2009, p. 132). This will be an advantage to the managers because the more accurate information needed for employee promotion will be obtained.

References

Anderson, G. (1993). Managing Performance Appraisal Systems. Oxford: Blackwell Business.

Avery, K. (2000). The Effects of 360 Degree Feedback over Time. New York: Wiley.

Lepsinger, R., & Lucia, A (2009). The Art and Sience of 360 Degree Feedback (2nd ed.). Somerset: Wiley.

Peacock, T., & Hailstone, P. (2007). The 360 degree feedback pocketbook. Alreford:         Management Pocketbooks.

Rao, T. (2000). 360 Degree Feedback and Performance Management System. New Delhi: Excel.

Rogel, C. (n.d.). 8 Benefits of 360 Degree. DecisionWise.

Retrieved from https://www.decision-wise.com/benefits-of-360-degree-feedback/

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