HR analytics and performance appraisal system | ScienceGate (2024)

Author(s):

Anshu Sharma◽

Tanuja Sharma

Keyword(s):

PurposeThis paper aims to explore the role of human resource (HR) analytics on employees’ willingness to improve performance. In doing so, the paper examines issues related to the performance appraisal (PA) system which affect employees’ willingness to improve performance and how HR analytics can be a potential solution to deal with such issues.Design/methodology/approachThe paper develops a conceptual framework along with propositions by integrating both academic and practitioner literatures, in the field of HR analytics and performance management.FindingsThe paper proposes that the use of HR analytics will be negatively related to subjectivity bias in the PA system, thereby positively affecting employees’ perceived accuracy and fairness. This further positively affects employees’ satisfaction with the PA system, which subsequently increases employees’ willingness to improve performance.Research limitations/implicationsThe paper provides implications for both researchers and practitioners in the performance management area for improving employees’ performance by applying HR analytics as a strategic tool in the PA system. It also provides implications for future researchers to empirically test the conceptual framework in different organizational settings.Originality/valueThe paper offers insights into how the use of HR analytics can deal with issues of subjectivity bias in the PA system and positively affects employees’ willingness to improve performance.

Purpose– Examines the weaknesses of many current performance appraisals and shows how to improve them.Design/methodology/approach– Draws on examples from companies such as Cisco, Google and Infosys.Findings– Shows that there are two main sets of reasons for the failure of performance management – system related and people related. System-related problems crop up while defining the performance goals or designing the appraisal system. People-related problems usually arise while discussing the results of appraisals.Practical implications– Investigates the importance of the three key elements of performance appraisal – the appraiser, the appraisal period and the rating method.Social implications– Shows how important performance appraisal can be in the modern business world where skilled and talented workers are at a premium.Originality/value– Argues that present-day organizations need to develop an ongoing process to manage employee performance, make sure the right things are being measured, and that the feedback is carried out as constructively as possible.

Study level/applicabilityThis case is suitable for undergraduates, MBA students and students from business administration departments in the teaching of human resources management and performance management.Case overviewLuodian Electric Power Construction Corporation Group (LEPCC Group) is a state owned enterprise transformed from a construction unit of Luopu Power Supply Bureau (LPSB), a governmental organization in charge of all the electricity supply in Luopu City. The general manager of LEPCC, Gu Ming tried to set up a modern market-oriented management system for LEPCC. Unfortunately the problems that had accumulated in the past two decades during which LEPCC was a governmental organization made his reforms very difficult. The first headache for Gu Ming was the performance appraisal reform in LEPCC. The existing performance appraisal system seemed to have at least three problems in practice: unclear appraisal objectives, an improper assessment system, a different appraisal standard for similar positions. What should Gu Ming do to build a proper performance appraisal system to help the fast-growing LEPCC Group to make LEPCC a competitive market-oriented player?Expected learning outcomesThe first objective of this case is to enable students to understand that the issues of working performance are issues of people first, rather than issues of the management system. If the management focuses on the system instead of on the staff of the company to design the performance management system, the system will be fruitless and inefficient. The second objective is to cultivate students' capability to apply the basic theories of human resource management and the knowledge of performance appraisal in case analysis and practical management. This case, seemingly about performance appraisal, is in fact about the organizational structure and processes of the organization. Reform should start with organizational analysis, job analysis and job descriptions. Only when all these have been done correctly, can the performance management system be designed more reasonably, scientifically and efficiently.Supplementary materialsTeaching notes are available; please consult your librarian for access.

SynopsisThis case about the Core Business School enunciates the development of a performance appraisal criterion for the faculty members. The case highlights the situation when despite the administration of an appraisal process for the academic year 2012-2013, there was a uniform increment announced which was lower than the previous year’s increment on the pretext that the admission numbers for the next academic session were much low. The faculty and staff were in a dilemma of whether to continue in such an organization where the absence of a formal appraisal system would hamper their career progression or wait for another year for things to change.Research methodologyThis case is developed after an in-depth interview with the dean academics and the HR faculty of the Core Business School who headed the designing of the performance appraisal system and thereafter its implementation.Relevant courses and levelsThis case can be used for the elective course on performance management or human resource management course in MBA program.

PurposeThis study aims to examine the impact of employees' satisfaction with human resource management (HRM) practices (i.e. training satisfaction, performance appraisal satisfaction and pay satisfaction) on work engagement and subsequently employee turnover intentions. The mediating role of work engagement between employee satisfaction with HRM practices and turnover intentions is also assessed.Design/methodology/approachData were collected from Malaysian oil and gas (O&G) professionals. A total of 442 useable questionnaires were obtained for the final data analysis. Partial least squares structural equation modeling (PLS-SEM) was performed to test the hypothesised relationships.FindingsThe findings indicate that training satisfaction and performance appraisal satisfaction are the key drivers of employee engagement at work. Work engagement in turn has a negative impact on employee turnover intentions. Furthermore, work engagement mediates the relationship between employees' satisfaction with HRM practices (i.e. training satisfaction and performance appraisal satisfaction) and turnover intentions. Nevertheless, it did not have any mediating effect on pay satisfaction and turnover intention.Practical implicationsTraining plans should be designed to make the relevant jobs more attractive and fulfilling, thus increasing employees' level of work engagement. Besides, ensuring that the appraisal system is fair is pivotal to work engagement. Work engagement will cultivate a strong sense of emotional attachment between employees and employers, thus reducing the turnover intention of Malaysian O&G professionals.Originality/valueTo date, little has been done on employees' satisfaction with HRM practices with respect to their attitudinal and behavioural outcomes. The present study enhances our understanding of the importance of employees' satisfaction with HRM practices and its relation to employees' work engagement and turnover intentions.

Subject areaThe case throws light on performance management in general and performance appraisal in a specific Indian context, its linkages with various other HR systems in an organization and the various issues and challenges attached with it. The case is especially suited for understanding people management in small organizations and organizations in emerging markets.Study level/applicabilityThis case has been tried and tested in the classroom setting with management students pursuing a post graduate diploma in business management (PGDBM). The case has been administered to students in Chennai Business School, Chennai in their core course human resource management (first year PGDBM) and to second year students specializing in HR in their course “Performance management and compensation management” in G D Goenka World Institute, Sohna.Case overviewThe case is set in the southern part of India in a retailing organization which grew from a small retail store catering to the daily needs of the student community to a four store retail store (Bolts'). Mr Andrew (Head, HR), introduced performance management and appraisal at Bolts'. Since the appraisal was interrelated with various other HR systems like motivation, compensation, training and development and promotions, it generated a lot of excitement among the employees. After implementation of performance appraisal, the organization seems to experience one problem after another. There were complaints from customers, followed by a range of challenges such as discontented employees, unprofessional behavior, low motivation in the organization and loss of profit.Expected learning outcomesUnderstand and analyze the performance management in general and performance appraisal in a specific Indian context, its linkages with various other HR systems in organization and the various issues and challenges attached with it. Understand people management in small organizations and organizations in emerging markets. Assess and identify HR practitioners' problems in studying SMEs' HR related problems in an Indian context.Supplementary materialsTeaching notes are available to faculty. Please consult with your librarian.

AbstractManaging and measuring performance became an important part of administrative reforms motivated by the New Public Management ideology. However, a badly implemented system designed for measuring and managing performance may distort the behaviours of actors. The goal of this paper is to outline the preliminary picture of the current situation of performance management generally and particularly of performance appraisal at the level of the Czech local and regional self-governments. The presented data, despite the fact that our field research covers only a non-representative samples of the “best” self-government bodies, show first that performance and quality management is not a neglected area in the Czech Republic. Its practice is rather decentralized, and the central government focuses on methodical support and coordination rather than on being strict and requiring certain tools to be implemented. The core problems revealed by the interviews are that the implementation of new instruments is usually based on a trial-and-error approach in its beginnings and that the implementation is award- and project-driven. Our preliminary data clearly indicate that the performance-appraisal situation is even more problematic - they indicate that performance-appraisal systems are introduced in only a limited number of self-government authorities. The set of criteria used in the evaluation is problematic, and the objectives of the performance appraisal are unclear for managers. As a general rule, a performance-appraisal system is not directly linked with implemented performance management and especially not with a payment system.