Performance appraisal system & Management systems of various companies

Performance Management Assignment

Topic: Performance appraisal system & Management systems of various companies

Submitted by:SHERYL MEHRA Division- CBatch: 2012-2015

Performance Management at Google Planning1. Goals Management: managers and Individuals jointly set goals based on the overall objectives of the company, this is agreed on. Goals once set become the basis for assessing individuals and managers. Everything needed in order to achieve such goals are provided including incentives and training. Individuals are made aware of their contribution towards the achievement of the organizational goals.2. Recruitment /Hiring: One of the core values of Google is to recruit great people, who have the desire skills and experience in the field they operate. They closely link their recruitment process to the organizational goals, which intend yield a high result of equally high quality workers.SOURCE: Google (2011)

3. Training/Development: There are several training programs at Google which aims at equipping individuals with the needed skills in order to be able to be abreast with time. This actually helps Google increase the knowledge base in the organization and therefore tends to help them achieve their objectives (Google, 2011)

Coaching: Management give the necessary support to staff to help them achieve the standards and objectives of the organization, this involves review of the organizational performance plan, observing and documenting performance and giving feedback. At Google, individual performance towards the achievement of the organizational goals is monitored by their line managers; this includes regular checks, and guiding individuals throughout the process(Beasley, 2008)1. Communication: Communication is very paramount in every organization, Google therefore, ensure that there is effective flow of information throughout the organization. Since decisions are made based on information, individuals are well informed about their performance, as well as changes in operation, these information are authentic and tends to help individuals achieve their goals (Rudnick et al.2011)

Appraisal: Assessment at Google is 360 degrees, this is where individual performance is accessed and feedback is given by number of people including managers, subordinates, Colleagues and customers (Armstrong, 2009). The assessment is based on initial goals set and agreed, on by both line managers and staff, with effective monitoring and feedbacks to employees on their actions towards the achievement of the goals. This measurement is not only based on individuals ability to exhibit his skills, but his involvement in most activities, including voluntary work. (Na, 2011) Rewarding/Retaining: Google view its employees as their greatest assets, and believes that satisfied employees = satisfied customers = high profitability and market share. (Andersen & Mittal, 2000). High performances are highly rewarded, Google gives founders award which is to reward good contribution, all these and more help to achieve high performance goals of the organization.Performance Management at Apple Planning:1. Goals Management: unlike Google, Apple goals are made known to employees immediately organizational goals are set. This is jointly discussed by line-managers and the necessary steps taking in order to achieve such goals. However, individuals are measured based on these goals agreed on and initiated. Individuals are informed on their contribution to the achievement of the objectives of the company (Lliev et al. 2004).2. Recruitment/Hiring management: The HR objectives in Apple are: Provide the company with necessary personnel to assure superior performance. Employees should at all times strive for the highest quality in all they do. Ensure proactive internal career progression (Lliev et al. 2004).Apple is noticed of recruiting peoples whose attitude and qualities meet the needs of the company. Employee competence and the ability to deliver in order to achieve the overall objectives of the company, is considered during the recruitment process. Apple also tends to recruit people who admire their product and services, thus people who love to work with them. (Lliev et al. 2004).SOURCE: (www.apple.com, 2011)3. Training/Development: The secret to Apples innovations are the intellectual capital they have, knowledge management is the most important key in this firm, Apple therefore ensure that employees are highly trained, they realise the need for their staffs to get additional skills rather than what they require to do their work. This clearly define the organizational strategy of aligning individual objectives with that of the organization, employees feel more attached to work when they receive such trainings (www.accessessays.com, 2011) Coaching: management give the necessary support to staff to help them achieve the standards and objectives of the organization, this involves review of the organizational performance plan, observing and documenting performance and giving feedback. Management tends to ensure that individuals whose performance is not up to standard are corrected and given the necessary guidance 1. Leadership: Leaders in Apple are supposed to lead by example, Steve Jobs was one of the greatest leaders who really impacted on apple not just technologically but also leadership, he had good leadership qualities which make employees prompt to work whenever he is involved: Leaders at Apple act as mentors and coaches, this is what we call leadership by example, and they also encourage teamwork and togetherness (Little, 2011).2. Communication & Decision making: Since communication is very important in every organization, Apple has a very strong skill of communicating information from top to down and the vice versa, feedbacks are given on time and the necessary steps are taking to improve performance Pros and Cons: Employees in Apple are not allowed to use social media at work, not only that but also are not allowed to make any critical comment on the company on any social media, since Apple considers its image as the centre of its success. Individuals in the organization are no allowed to do anything that will destroy their image since it is the centre of their success (Knzler, 2011) Appraisal: Appraisal at Apple is on-going and tends to give feedbacks to both appraiser and appraised and to serve as formal opportunity for personal counselling, motivation salary reviews and allocation of merit payments. Staff members are accessedbased on terms of objectives, tasks and results achieved based on pre-determined goals planned and agreed jointly by individuals and their line managers. The appraisal system helps the HR to determine any shortage in a particular skill, and therefore undertake recruitment to replace such efficiency. Rewards are given for good performance.The figure below shows how appraisal is done in Apple(Lliev et al., 2004)

Figure 1: Performance Appraisal in Apple.SOURCE: (Lliev et al., 2004) Rewarding/Retaining: Apple give great reward to employees for high performance, they have a partnership program (which include managers and employees) which tends to steer the affairs of the company; employees who make immense contribution to this program are also rewarded. Apple believes in giving recognition to people who impact on the company which in turn raise their morale. (Lliev et al., 2004)Performance Management at Statoil PlanningPlanning starts with understanding risk and actions needed to manage risk and includes: actions required to move towards strategic objectives and deliver on KPI (Key Performance Indicators) targets, including action planning (what, how, who, when) unbiased forecasts (what they expect to happen)of these actions expected effect on relevant KPIs, providing an early warning of possible gaps in reaching targets(what they want to happen,) and for other financial/operational trends, this forecast is aimed at supporting decision making.(Statoil Book,2011)1. My Performance Goals (MPG): The goals of the company are set based on delivery defining members accountability and support evaluation, and behavioural goals help them to live their values, and to address the behaviour required and expected in order to achieve delivery goals. These goals are set on feedback from the People@Satoil dialogue, the Even stronger Values (EVS) survey, Global People Survey (GPS) results, and day-to-day observations from leaders and colleagues.(Statoil, 2011)

(SOURCE: http://www.statoil.com, 2011)2. Recruitment/Hiring: Statoil is an international oil and gas company with 25,000 employees and business activities in 34 countries. The company employs skilful personnel whose capabilities aids in the achievement of the companys goals. (Statoil.com, 2011)3. Training/Development: Selected employees receive regular training on new technologies, however, there is on-going training in the organization between line managers and employees which tend to ensure effectiveness and constant agreement and review of employee goals.

Coaching/ Compliance and leadership: Leaders are made to understand task, know the requirement and identify the risks involved and give the possible training. The leaders communicate with the individuals and give them the necessary feedback and support about the quality of work, and behaviour. The diagram below shows a system they call compliant and leadership. (Statoil Book, 2011)Coaching at Statoil

Fig. 3 SOURCE: Statoil Book (2011)1. Communication & Decision making: there is free flow of information between employees and information about new developments is communicated to all within the shortest possible time (Stat Book, 2011)

Appraisal: the appraisal in Statoil start with an initial review of the ambition of team members, this is followed by a review of the previous years delivery and behaviour. After this, new goals are set which includes the creation of awareness of the companys long-and short-term developmental plans is based on goals established between team members in the organization. There is constant review to give feedback to employees on their ability to achieve their pre-determined goals, and the necessary guidance given to those who have some shortfalls. From here, individual capabilities are identified in each team and developmental actions are taking for improvement. This appraisal aims at rewarding, deploying and counselling. This system however, tends to closely link individuals to the organization through effective teamwork and a clear understanding of corporate objectives is ensured through effective team management. The figure below shows how performance appraisal is done in Statoil (Stat Book, 2011)

Performance Appraisal at Statoil

Fig. 2 SOURCE: Statoil book (2011) Rewarding and Retaining: As a former national oil company in a Nordic social democracy, Statoils policies of reward and remuneration seek to balance a broad range of objectives and concerns. Their reward system is based on both result and process, and are closely linked with the performance, higher performance at higher levels attract higher rewards. This they do to achieve a common goal of developing the community interest between the groups employee and its owners (http://www.statoil.com, 2011)

Performance Management at Coca Cola:

Performance Management at IBM:Performance Appraisal in IBM In thecompetitive era, IBM focuses onemployee satisfaction because ofsatisfy employees provide their best efforts to the organizational growthby providing customer satisfaction. IBM provides monetary and nonmonetary benefits to their employees on the basis of their performance. IBM focuses on team work ratherthan peer pressures that enhance the motivation towards theorganization. IBM believes on their traditions. IBM has itsown culture, values, traditions, history, practices and rules and regulations for wholeemployees. Performance Appraisal system of IBM shows their uniqueculture. According to thisWalton E. Burdick, Quality employees play a vital role in this competitive environment to achieve the organizational goals.Thomas Watson (Founder of IBM) stated that creativity and values of an individual makes an organization. An organizationsuccess depends on their employees performance. Louis V. Gerstner (Former chairman &CEO IBM) focused on flexible and innovative consistent performance eappraisal system. IBM focuses on innovation through the effective workforceperformance. So they have launched Personnel Management's Training and Management Assistance Program at theirU.S. Office. IBM helps to govt. agencies to produce effective workforce by providing relevants kills, knowledge, supportive environment and team work fororganizational growth as well as self advancement. (IBM, 2010)

Conclusion IBM focus on employee satisfaction because thesatisfy employee play a vital role toachieve the organizationgoals through the innovation and creativity towards their assignedtasks. Motivated employees provide their best efforts for theorganization growth as well as self improvement.