Case Study of IPD Company

Basing on the information provided in the case material and refers to our class learning, the causes of the ineffectiveness of the performance appraisal program which installed in the BID Company are as follows: Goal misalignment with company’s overall goal Whenever appropriate, employees’ performance goals should be ensured aligning tit organization’s what an organization exists for, things that an organization and Its employees consider Important and desirable, courses of action to achieve organization’s overall goals. Aligning employee performance goals is known as the Strategic Role of performance appraisal.

In this case, we can see that the company had enjoyed good profitability by emphasizing excellent service quality before the performance appraisal program was installed, three major departments which of Front office is responsible for communicate with both external clients and internal co-workers, the first stage of heir working chain and also the door of business of the company; Warehousing department responsible for inventory control, this is the second stage of the working chain to ensure the warehouse has sufficient Inventory; Delivery department responsible for transporting the products to retail for selling, this is the third stage of the working chain which provide sufficient supply for frontline sales.

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Refer to their job description, the weight of mission, values and strategies of the BID Company somehow is approach to provide services to clients and emphasis on quality but quantity thus meet with overall’s goal rather than others.

After the new program has launched, It was not exercise properly the strategic role of performance appraisal and learnt the lesson in the hard way because the program approach to measuring what employees produce but how employees do their Job, it focus on quantity rather than overall quality and corporate communication. For example, front office staffs performance measured by number of orders taken per person per week but no approach to measure the service and communication quality; warehousing staff measured by number of cases of product handled per man-hour and time squired to load each truck but no mention of communication and occupational safety standard: as for truck driver, performance is measured by the length of time to complete teen livery route out tenure Is unclear Instruction AT teen evaluation criterion.

A performance management system would be only effective when the employees in BID Company are clear about their duties and Job standards and match with the organizational goals so that they work with their full potential to meet organizational objectives. Any misalignment would seriously undermine the performance of an organization 2. Discuss how to improve the Company’s performance planning and propose a set of performance evaluation criteria that you consider appropriate for the Company’s three major department.

A major challenge for The BID Company is to have employees who are passionate about what they do and constantly strives to perform at their best. The aim of which is to ensure that the employee’s performance is supporting the strategic aims.

The consensus of most existing research on appraisal systems is that to be effective, the appraisal process must be considered fair and accurate by those having their reference evaluated, set in establishing performance goals should accordance to employees’ duties and responsibilities, as for appropriate performance evaluation criteria that Vie propose for the company’s three major department are as follows: Front office Since office staff is responsible for receiving and processing orders, it involves telephone services manner to both internal and external parties so that telephone service performance at front office should be including measure both behavior and result: 1 . Telephone service manner as rated monthly by supervisor should 4 or above on a 5-point Liker Scale. 2. Incoming calls answered within three rings in a month should be 90% or higher.


Customer satisfaction monthly rating on telephone service should be 4 or above on a 5-point Liker Scale. 4. Number of customer complaints per month on telephone service should be 3 or lower. Warehousing department Warehouse staff responsible for receiving, storing and loading computer products on trucks, the evaluation criteria should be focused on result and behavior: 1 .

Communication with front office as rated monthly by supervisor should 4 or above on a 5-point Liker Scale. 2. Receiving and storing computer products which from front office should be finished within a day. 3. Time to load each truck per month should be average 30 minutes or lower. 4.

Number of warehouse accidents per month should be lower than 1.

Delivery department Delivery department responsible for transporting the computer products to retail outlets, it involves time management and driving safety and so that the evaluation criteria should be focused on result: 1 . Delivery products to retail in a month should De on time according to teen livery gleefulness AT company wanly Including teen time needs for delivery in each route. . Products must be 100% in good condition whether received from warehousing department and/or delivered to retail. 3.

Recommend what other actions the Company should take to make the performance appraisal program become a big success. Performance appraisal is a system where not every employee in the company may like but every employee should be treated as the same because they are a huge part of a company in order for the company to become successful.

Thus, a few suggestions are recommended for the appraisal system in BID Company, to be better serving as an effective efficient system. One of the things on is to offer proper training to each line supervisors. Through training, supervisors may then rank the employees with correct Judgment. This will mean that there is no sign of them using progressive discipline.

In simpler term, no bias error will occur. Secondly, positive feedback on performance related to goals shall be conducted, as this will gives the worker a sense of achievement, recognition and accomplishment, in which the company might miss it. Thirdly, BID Company needs to incorporate multiple sources of information from peers, subordinates, customers, and employee self-evaluations.

The company will ant to conduct additional research on how these types of measures can be reliably and validly developed and integrated into the appraisal process. This helps reducing sampling error by increasing the number of observations and reduces the effect of possible biases.

This way, the supervisors and managers will feel more comfortable, since they are no longer solely responsible for what happens to the person as a result of the rating. Probably there are still many ways to be researched and then be conducted. However, I do think these three ways are as important as they will lead the performance appraisal to a better system in BID Company.