Question

In: Operations Management

Mr. Allan is recently transferred to claim settlement department of Karma Insurance, the South Bend Branch....

Mr. Allan is recently transferred to claim settlement department of Karma Insurance, the South Bend Branch. He has worked in the head office for 5 years and was considered as a task manager. He decided to enforce a strict discipline at the branch level. According to him, there is no standard set for any working. Employees come late, they don't complete their work on time, customers have to wait for long and unnecessary delays which are made on account of paper formations at the time of claim settlement. Mr. Allan decided to discuss these matters with the regional HR manager and came up with the idea that a new performance appraisal method should be applied which will solve the problems at all branch levels.

Which methods from the chapter should Mr. Allan suggest to the HR manager for appraisal and why?

How can Mr. Allan evaluate the effectiveness of a new system selected?

Solutions

Expert Solution

answer-

Performance appraisal is the best way to review the performance of employees in this company according to the set standards which are communicate to each employee so that their actual performance can be compared with standard performance.

The method which would work in this situation or suggest to HR manager is MBO performance appraisal method. MBO (management by objectives) involves setting objectives for the employees on the job which they have to accomplish and are further appraised on that basis .

In this case, Employees are coming late, delaying work etc so manager would set objectives which are SMART like Specific, Measurable, Actionable, Relevant and Time-bound so that each employee and management agree on objective and ready to show high performance in order to achieve these objectives.

for example- Objective will be lower the absenteeism and complete the customer's work in time so each employee will work harder to achieve this and come at work on time.

The effectiveness of this new system can be evaluated by monitoring and controlling the outcome. if results or outcomes are great then Mr. Allan will see that system is effective like performance is increasing, employees are not late at work, work is done on time etc like outcomes will show the effectiveness.


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