Question

PERFORMANCE APPRAISAL/COMPENSATION EMAILS Situation:

The OL organization is a medium to large-sized service organization in New England. The OL organization’s performance appraisal system, which was designed by the HR Department several years ago, requires that all employees be evaluated by their supervisor on an annual basis except for new employees, who are appraised after the first 90 days (the probationary period). The performance appraisal form, which is used for all employees, is shown below. Supervisors are required to complete this form covering each of their employees at the appropriate time. They should discuss the evaluation with the employee, ask each employee to sign the form at the end of the interview, and return the completed form to the HR department. The organization has several different wage structures, including one for executives, one for managers, and one for all the other workers. The job evaluation is the point factor technique in which all jobs receive a point value based on an assessment of compensable factors. Jobs are then assigned to a grade level, and each grade has an entry or minimum rate and a maximum salary payable for the jobs in that grade. The amounts between the entry rate and maximum comprise the salary range for the grade. Adjustments to the ranges are made periodically as area market rates change. Salaries are directly related to the work they do and how well they do it. The salary is based on the point evaluation and the survey results. The company is generally considered to be competitive when surveyed in their market. Usually employees begin at the bottom of each pay grade. Employees are considered for a merit increase after six months of service and then they annual receive a merit increase at the end of each year. Cost-of-living increases are also granted periodically by the organization to all employees. You are Sandy, the Human Resource Manager, and have received the following memos and emails over the last several days while you were out of the office. Please respond to each of the memos. First, you should reply to the memo. Then if necessary state what other actions you might take (other than replying to the email). Finally, you should state the importance of each memo as either critical, medium, or of low importance.

Item 1 FROM: Charlie Counter, Accounting Department, [email protected] SUBJECT: 90-Day Employee Evaluation TO: Human Resource Department, [email protected]

I just received my first performance evaluation and received mostly “3s” or very average ratings. I asked my supervisor why I did not receive better ratings she said that her evaluation of me was good. She said that I was making good progress on the job. She added that, if I continue to show improvement, I will receive higher ratings in the future. When I asked her why I did not receive better ratings, she replied that I was relatively inexperienced compared to other employees. Why am I being evaluated against older, more experienced employees? That does not seem fair. I believe that considering my limited experience I deserve higher evaluations.

Item 2 FROM: Johnathon Pine, Computer Center, [email protected] SUBJECT: Performance Evaluation TO: Human Resource Department, [email protected]

I just received my evaluation and found out that I received mainly 4s. I have been working at the Computer Center a few years and I don’t seem to improve much. I asked my supervisor for feedback so that I could improve. I wouldn’t complain but I have asked my supervisor for feedback so that I could get a better appraisal next time, and he had difficulty telling me how to do it. If I can’t get the proper feedback how am I expected to improve? I don’t think this system is fair. Can somebody give me feedback? ________________________________________________________________

Item 3 FROM: Bonnie Jell, [email protected] SUBJECT: Administering Employee Evaluations TO: Human Resource Department, [email protected]

I have recently received from your office a request to conduct evaluations this month on my employees. As you probably know, I was promoted to this supervisory position only one month ago from another company as a result of the former supervisor’s termination. I don’t feel that I can presently conduct a fair evaluation of these employees because I have only observed them for one month. Can I receive help since the appraisal should assess a full year’s performance?

Item 4 FROM: Kelly Pool, Supervisor, [email protected] SUBJECT: Evaluation of Karen Kent TO: Human Resource Department, [email protected]

Yesterday afternoon I conducted an evaluation interview with Karen Kent and when I told her I gave her a “3” on “Teamwork” she got quite upset and defensive. She said that the evaluation should have been at least a “4” and possibly a “5.” I attempted to explain my evaluation to her, but she disagreed and would not listen to me. She continued to argue with me stating that I did not really understand her teamwork skills. Karen received a “4” evaluation last year on “Teamwork” and a 3.5 overall evaluation this year. What should I do if this happens again?

Item 5 FROM: Matt Million, Supervisor, [email protected] SUBJECT: Evaluation complaints TO: Human Resource Department, [email protected]

I have received a number of complaints from some of my employees that I grade too hard compared to other supervisors. These employees complain that this results in very little merit pay for them each year. They are not listening to the feedback I am giving them since they are so concerned with some of the low ratings which result in lower pay increases. I don’t know what to do. Should I ignore it or should I change the way I give ratings? Please advise.

Item 6 FROM: Mary Smith, Purchasing, [email protected] SUBJECT: Improving Performance TO: Human Resource Department, [email protected]

I was wondering if you can offer me some advice or assistance. I have been getting good appraisals, mostly 4s. I would like to improve and spent a lot of time working on my self- appraisal. When we sat down for my evaluation, my supervisor pretty much ignored everything I had written. In fact, he seemed to concentrate on some of the more trivial duties. Please advise.

Item 7 FROM: Jeff Flock, Supervisor, [email protected] SUBJECT: Performance evaluation of Linda Lester TO: Human Resource Department, [email protected]

I have received a number of complaints from some of my employees. They believe that my appraisals and feedback seem to be based only on what they do in the last several weeks. They say that their evaluation ratings are not fair. Please advise.

Item 8 FROM: Donna Carol, [email protected] SUBJECT: My Performance evaluation TO: Human Resource Department, [email protected]

In my last performance appraisal, I was rated much lower than my previous appraisal. Before this current appraisal my supervisor, Tom Trash, asked me out on a date and I declined. I thought the issue was over because he did not react very negatively when I declined to date him. It seems, however, that it might have since I am pretty sure that my performance has not changed significantly even though my ratings have. Furthermore, the rumor is that the woman he is dating is receiving higher appraisals since they have been dating. I don’t believe this is fair, but I am not sure what to do?

Item 9 FROM: Sam Mullen, [email protected] SUBJECT: Pay TO: Human Resource Department, [email protected]

Tom Jenkins has been with the company for ten years. His present position is Systems Analyst 1 and is at the maximum pay level for his grade. The Wonton Company has offered him another position, which would give him a 10% increase in salary for similar duties. Based on his financial obligations to his family, he claims he is need of higher pay. Since he enjoys working for our company and has been a tremendous asset to our company, and it would be difficult to promote him to SA II, is there any way you could match their offer? I know he would stay if we could offer him a significant increase. Can we give him more than his grade allows?

Item 10 FROM: Shawn Sollen, [email protected] SUBJECT: Pay TO: Human Resource Department, [email protected]

One of my employees has been working in IT for more than 8 years and is making about the same salary as one of my new employees in the same job. This is unfair since the one with seniority, Jake, is likely to find out about this sooner or later and I don’t want to lose him. This compression problem is likely to cause conflicts since the market has continued to increase entry-level IT salaries 30% over the last three years. Can we increase the salaries of the high-performing, senior IT people? What can we do about this?

Answer 1

Item 1:

Dear Charlie Counter,

Accounting Department,

[email protected]

SUBJECT: Reply to query about 90-Day Employee Evaluation

Thank you very much for this e-mail. I appreciate that you have taken time to discuss your concern with your supervisor.

I would like to bring it to your notice that this was a 90 days employee evaluation. And your annual appraisal is due as you have successfully completed your probation period.

This appraisal form was signed by you after your supervisor completed your interview. The appraisal was based on OL’s performance appraisal policy.

I appreciate that you work hard and believe that you continue to make progress on the job in future.

Importance of above memo is medium.

Item 2:

Dear Johnathon Pine,

Computer Center,

[email protected]

SUBJECT: Reply to query regarding Performance Evaluation

Thank you very much for this e-mail. I appreciate that you have taken time to discuss your concern with your supervisor.

I understand your concern, and agree to your point that proper feedback is important so that the gap between the current performance and desired performance can be filled.

I will take the issue further and discuss it with your supervisor in person. And you will soon get the desired feedback so that you can identify the areas of improvement.

Importance of above memo is critical.

Item 3:

Dear Bonnie Jell,

[email protected]

SUBJECT: Reply to query regarding administering Employee Evaluations

Thank you very much for this e-mail. I appreciate that you have taken time to discuss your concern with me.

I find your concern valid. And will discuss the same with the management.Your tenure in this organization is still short. Human resource department will assist you to understand the evaluation process and will provide you with relevant data of your subordinates.

Importance of above memo is critical

Item 4:

Dear Kelly Pool,

Supervisor,

[email protected]

SUBJECT: Reply to query regarding Evaluation of Karen Kent

Thank you very much for this e-mail. I appreciate that you have taken time to discuss your concern with me.

I respect your concern and the evaluation process of OL. Being the supervisor of Karen Kent, you can understand better what skills she has best and what are the areas of improvement.

I would like to suggest you that give her the transparent feedback that will show her the area of improvement and ways in which she can improve this area and achieve 5 in team work.

Importance of above memo is medium

Item 5:

Dear Matt Million,

Supervisor,

[email protected]

SUBJECT: Reply to query regarding Evaluation complaints

Thank you very much for this e-mail. I appreciate that you have taken time to discuss your concern with me.

I respect your concern and the evaluation process of OL. Being the supervisor you know how to rate your employees. However, their concern of lower pay increases is also valid. Therefore, I will suggest to conduct a counselling session for you and your subordinates.

I will also arrange for a training need assessment for your subordinates. So that the defects in their performance can be identified and can overcome.

Importance of above memo is critical