Wednesday, 8 February 2017

Appraisal system at Tesco


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. 

Introduction

Motivational methods are very important in an organisation. This blog is about responses from staff to request in newsletter about how effective Tesco is using these methods.