ISHITA ROY 25/06/2021

ALLIANCE SCHOOL OF BUSINESS

HUMAN RESOURCE
Task 1
❖ Appraisal Strategy

• What is performance appraisal?

Evaluating an employee’s current and/or past performance relative to his or he performance
standards.
• Why performance appraisal?
o employers base pay, promotion, and retention decisions on the employee’s appraisal
o appraisal plays a central role in the employer’s performance management process
o the appraisal lets the manager and subordinate develop a plan for correcting any
deficiencies, and to reinforce the subordinate’s strengths
o appraisal provide an opportunity to review the employee’s career plans in light of his
or her exhibited strengths and weaknesses
o appraisal enables the supervisor to identify if there is a training need and the remedial
steps required

• Performance appraisal methods

• Now-a-days companies most of the companies are adopting Modern methods, as these
methods focus on job achievement and evaluation of work results.
❖ Take 2 companies one which uses the appraisal system and one which doesn’t use the
appraisal system

o So here I will compare two companies one which follows traditional as well as
modern method of appraisal and one that follows only modern method.
o Two companies that I have selected are Facebook and Netflix

❖ Compare and contrast how the appraisal decision is important for the company

• Facebook
o Performance appraisal at Facebook is done biannually
o Facebook has adopted 360 real-time feedbacks through dedicated software
o Facebook also uses the stack ranking performance appraisal method

Two weeks before the review, employees write self-assessment and peer reviews are
collected.

Managers go through the data and give the employee “Performance Assessment” rating
i.e., the performance evaluation over the previous six months.

Through this evaluation manager decides whether or not to promote the employee.

• Benefits
As Facebook is a big company performance review twice a year is easy for employees to
give and receive recognition and visibility.
360 real-time feedbacks give the manager an understanding about the employees’ strengths
and weaknesses and an insight to their professional development.
Through 360 real-time feedback they have reduced employee turnover and increased
retention.
The appraisal process is transparent to everyone in the company.
It helps the employees to understand how their contribution matter to the company’s growth,
as well as to more easily recognize and reward top performance.

• Potential problems
As Facebook uses only two appraisal methods employees feel a distinct pressure to never
show dissent, to keep up appearances on their Facebook profiles, and to force cordiality and
friendship with their co-workers in order to advance.
Peer review sometimes depend on the popularity of the employee i.e., if an employee is
popular among his or her co-workers and manager, he or she will get more advantage in the
peer review component.
The stack ranking method encourages competitiveness but also creates various issues like
unethical behaviour. This method creates a hostile work environment where people are
incentivized to plot against each other.
• Netflix
o Netflix completely removed the annual performance evaluations. It was irrelevant one
year later, and waste of time.
o Netflix opted for 360-degree feedback procedure.
o They also use management by objectives (MBO).
o They evaluate their employees after every project or during the project.

In their 360-degree review procedure, employees are advised by their colleagues on what
they should stop, start, or continue so that there is full transparency.
The evaluation is informal and Netflix make the reviews public so that employees work
together as a team and there is no politics among the employees.
In Netflix the manager and employee discuss their work i.e., whether the employee will be
able to reach his or her goal on time.
As there are frequent reviews the company can collect more data points about their
employees’ performance over time. On the basis of these reviews, they can promote or fire
an employee at any time of the year.

• Benefits
360-degree reviews are done frequently by the colleagues that makes the procedure more
transparent and it helps build trust among colleagues as their reviews depend on each other’s
hand.
This review system also helps employees to understand where they and their colleagues
stand.
Netflix employees think independently and they are allowed to make decisions.
As the employees can choose their task this give them authority as well as responsibility to
complete it on time.
As the evaluations are done frequently, they work sincerely to achieve their goals.

• Potential problems
As the feedbacks have no anonymity employees might hold grudge on the respondents or
the respondents might give average feedback.
Public review can also demotivate some mediocre employees.
❖ How does the organization which doesn’t use the appraisal system actually benefit?
(i.e., using modern appraisal system)
Netflix has succeeded at retaining prime talent as well as in achieving a hight-performance culture.
The 360-degree review system provides self-reflect and reflect on your peers.
Netflix use the “start, stop, continue” template which is a common management tool that focuses on
things a person should start doing, stop doing, and continue doing.
Every person in the company has the access to feedback the employee gives and receives, this
maintains transparency in the system.
Management by objectives (MBO) gives the employees the freedom to work on their own terms.
This method gives them authority and responsibility. If the employee is not able to achieve his or
her goals, he or she could be fired or they are put on different projects that have achievable goals.
Netflix’s appraisal is so designed that they have retained some of the best employees in their
company. Through the appraisal they decide raise in salary, promotion, compensation, rewards for
the best employees.

❖ Prepare a in detail Appraisal Strategy for the Outlook Group which benefit the employees.
Strategy for Outlook Group
Outlook Group’s performance is based on KPI/KRA i.e., on the basis of measurable values
of matrices HR can track the performance of the employees and can optimize recruiting
processes, employee engagement, turnover rates, training costs, etc.
Through KPI Outlook Group collects data and at the end of the year i.e., annually, they
evaluate.
Outlook Group can adapt the 360-degree feedback
• Around 8-10 respondents complete an anonymous online feedback form
• Arrange the respondents into groups on the basis of relationship with the employee, such as
manager, colleague, subordinates etc.
• The survey questions are going to be based on competency for example rating management
competencies, such as leadership and communication skills and open ending questions like
“how does X manage his team?”
• The feedback questions should be on observable behaviour as that will help the respondents
to quantify
• The subject of the feedback also completes the same questionnaire
• The whole process should be then evaluated by the HR manager
• This 360-degree feedback process should be done every 3 months.

Example of 360-degree feedback questions

Please rate (Subject’s Name/Yourself) on self-awareness relative to peers:

• Keeps control of his/her emotions and behaviour, even when involved in high-pressure
situations
• Is highly ethical
• Acts professionally
• Learns from his/her mistakes

Please rate (Subject’s Name/Yourself) in terms of drive for results relative to peers:

• Is focused on the needs of the customer

• Is a problem solver

Please rate (Subject’s Name/Yourself) proficiency in leadership relative to peers:

• Inspires continuous growth and learning in others

• Handles conflict in an appropriate manner
• Takes initiative to solve problems
• Motivates others to reach their goals

Please rate (Subject’s Name/Yourself) ability with interpersonal communication:

• Communicates openly/effectively with others

• Is open and receptive to feedback/seeks out feedback

Please rate (Subject’s Name/Yourself) ability with teamwork:

• Works well in a team

• Gives constructive and helpful feedback
• Treats others with respect
• Responds constructively to the mistakes of others
• Is open to change and innovation

How is it beneficial?
• 360-degree feedback system will help managers to understand each individual of the
company, their weaknesses and strengths and an insight to their work.
• This will help the employee to see the difference between how he/she sees himself/herself
and how others see them.
• This gives the employees the drive to develop and the managers can decide who will need
training or not.
• 360-degree feedback method will make sure that every employee works harmoniously in their
group.
• This method will help each employee to keep a tap on their colleagues which will provide
some competitiveness, little competition is necessary.
• As the rating will be done by the subordinates, colleagues and supervisors, employees will
try to be in the good books of them.