ADMINISTRATIVE OFFICE MANAGEMENT (OBM345)

CASE STUDY
CHAPTER 8: APPRAISING AND PROMOTING OFFICE PERSONNEL
JOHNSON APPLIANCE COMPANY

The Johnson Appliance Company was founded about ten years ago in Pierre, South Dakota.
The philosophy of the company is to sell home appliances at wholesale prices while providing
quality service. The result has been the rapid expansion of stores through the Mid-west. The
company now has twenty stores in four states.

To meet the demands of increased business, the central office of the company has had to
triple its office staff in the last three years. The office staff now numbers forty employees.
Performance appraisal within the company has been rather informal. The supervisors simply
discuss with subordinates the areas in which improvement is needed.

Ample evidence now exists to support the need for a formal appraisal program. Several
managers have discussed the possibility of implementing an appraisal program, but no formal
action has yet taken place. Because none of the managers knows much about performance
appraisal, they have decided to use the services of a consultant. You are a consultant and
have been assigned by your employer to work with the company.

At the time of your first meeting with the managers, they mentioned the necessity of using an
appraisal method that is easy for supervisors to use and easy for employees to understand.
They also expressed a preference for using the appraisal information in promoting the
employees.

1. What suggestions of performance appraisal can you offer to help assure the success
in the company?
(10 Marks)

2. Justify your report to the company about the uses of information obtained from the
performance appraisal.
(5 Marks)

3. Discuss few factors to determine in promoting the employees.

(5 Marks)