Uncertainty even in matured organizations makes managers to look for instant gratification for they work creating a window for Vulnerability. Most of the managers want to have instant recognition or appraisal of the action forgetting about the implication or contribution towards the end strategy. The appraisal system Gaps like span of appraisal and time of appraisal creates the space for managers to exploit the gaps in the overall strategy of the business to tactics that help them in appraisal.
Most managers give they best to only activities that they are measured individually creating vulnerability as this creates a gap in overall function of the system. Since the modern appraisal system clearly show how they are measured on they performance they only act towards it.They use tactics which elevates the individual performance leaving the overall strategy requirement for the system.This is especially true in the growing organization and when markets are growing ,since the overall business strategy is not static and this creates a gap for people to use tactics.And tactic is only focused on that particular business assignment or activity .Success in that assignment will make the manager great about his work and crave for recognition.He was appraised by everyone for that particular assignment and evaluates him as best. But most of the time the evaluation metrics misses this assignment fitment to the overall business strategy.
The other gap we can see in evaluation is about human value in the business.In a Long term strategy we take into consideration the cost of human assets for evaluation but in short time tactic we ignore the business value of human resources.This often Show managers performance at peak in certain intervals for appraisals but the value creation will be actually low.
Most of the time we appraise the sales team only on number of sales done as performance .We miss the quality of sale,customer services the source of sale etc and to keep the sales team high we evaluate them monthly and give instant commissions.We evaluate them only on absolute numbers but we don't often add the cost at which this sales happened may be the rise in the marketing budget for that month,the rollover sales must have happened,the renewal sale of old client, can be reason .we value all this sales with the absolute number .This creates vulnerability for the system.For example from march to September half year mostly business don't run any campaigns ,offers etc.whatever sales happened its purely on demand.The real sales guy can be evaluated on how he created demand and captured it during this period .But when we consider October to march ,we have thanks giving ,Christmas and new year offers and we spend a lot on campaigns during this period .so when we evaluate we evaluate the sales team in both the periods with the same metrics creating vulnerability in appraisal.The Input interms of cost and other external market factors are not considered as part of the metrics for evaluation.
- Uncertainity in the Business strategy.
- Appraisal Methods
- Need for instant gratification.
- Focus on pay ,promotion and succession
- ambiguity On plan and target.
- Estimating Business Value of Human Assets
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