Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways. Performance appraisals are employed to determine who needs what training, and who will be promoted, demoted, retained, or fired.
At Tesco we
have appraisal scheme which is very motivating and engaging. When I started to
work at Tesco they put me on 3 month probation. The reason for putting me on
this is so that they can see how I am coping with the job and if I am a
competent worker. During the 1st month of the probation I had weekly reviews
where they asked how I am doing and set targets for what I should do. The
targets were often related to the overall business objectives e.g.
Supermarkets want to reduce queues so they will set checkout workers targets to
scan a certain amount of products a minute. As I was on probation, I was on the
'buddying scheme' which means that I spend the first two weeks working with
another member of my department to see how they do their job. Tesco also
use 360 degree feedback which is a review of their business, leading to a new
strategy and business priorities. One aim was to foster a
warmer culture where colleagues feel listened to and inspired by their manager.
360 degree feedback is a first step for managers to understand their strengths
and development needs. This program highlights strengths and development versus
the new leadership skills. Results then help shape personal development plans.
Another appraisal system which Tesco uses is smart targets. Tesco set smart
targets to help employees meet the requirements of their job role. They set
targets for departments to try and meet the company target. For example, they
set OSCA targets (On Shelf Customer Availability) where we have to attain a
certain percentage of when we check to see if products are on shelf's and ready
for sale. Tesco uses performance indicators which are an important management
tool that help to monitor the achievement and progress towards targets. A well
made set of performance indicators enables a business to know if they are on
the right track. Management accountants in Tesco are familiar withe the
strategy for the whole business, they can work with the department managers to
identify the appropriate measures for recording progress in each area. For
example, Tesco uses the 'Tesco Steering Wheel' as a tool to drive performance.
This states key performance indicators for people, finance, customers,
operations and he community. Every store has its own steering wheel and its own
market performance indicators. Quarterly results are then reported to the head
office. Example could include 'reduce carrier bags given out by 25% over 2
years to 2015', then managers at Tesco will measure their performance of how
well they performed, to see of they achieved it. Using the feedback from
performance indicators, Tesco managers are able to make informed decisions and
adjust their strategy if necessary. At Tesco, they also care about
discipline. Tesco has discipline policy which is there for employee’s
performance. There are three stages; verbal, written and final.
The
appraisal system is very effective as feedback is provided on regular basis,
not in the form of written annual evaluation reports, but in the form of daily,
weekly, and monthly comments from staff's supervisor or manager. The appraisal
system helps me to improve my work and become more efficient as the managers
give me feedback on what should be improved. If employees are not doing well,
they provide for us training so we can develop our skills.
However
there is one disadvantage of appraisal system. The fairness of system
could possibly lead to discrimination charges and raise motivational issues
related to perceived inequity. I have access to performance appraisal records,
so I can take corrective actions to improve the way in which I fulfil my job
duties and responsibilities. The managers need to make sure that they treat
everyone's equally and provide for them the same type of support.
Tesco use
appraisal system very well, but they could improve this to make it even better.
Tesco could ask the employees to complete self-assessment form to see how
they think they are doing and provide for them tips and recommendations for
improvements. Tesco could also increase the frequency of appraisals and use
automates appraisal system to manage the performance.