Performance Appraisal System

Analysis and interpretation of the data from the climate survey

The climate survey shows the employee reactions to the performance appraisal system of medco.

It is a good indicator of the overall acceptance and viability of the system. In this case it exposes that there is a significant discrepancy between P&A´s and Mo´s regarding their attitude towards the performance appraisal system of medco. The majority of the MO´s have a tendency to refuse the system or see it as irrevelant whereas it finds high acceptance in the P&A faction. Many union workers feel treated unfairly. In their eyes the evaluation of their performance   is not objective and not without bias. Moreover, a lack of feedback and communication is obvious, so many MO´s were surprised by the things they were told during their performance appraisal. All that leads to dissatisfaction and frustration with the effect of worse individual performance. The psychological contract between the employee and the organisation can be negatively impacted. It becomes clear that the system needs changes to be successful. Adopting exactly the same appraisal system of the non union workers misses its effect. It rather has to be fitted to the needs of the MO´s. A positive attitude towards the system is extremely important because with dissatisfaction and feelings of unfairness in process and inequity in evaluation, any performance is dommed to failure. Unbiased and   equitable accessment should be a central aspect. To reach that, candidates for management positions should be selected from the external labour market. They dont know anything about the union workers, so impartial treatment would be guaranteed. Another point is the lack of feedback and communication. More than half of the MO workers agreed that the performance appraisal review is the only time they get feedback about their performance. As a result the expectations of managers can not be fulfilled satisfactorily.   Employees should always be told what is...