Donna Karan is the director of health information services at Up-Scale Heights Community Medical Center. The medical center has established an objective performance appraisal (PA) system based on supervisory ratings in each of five performance dimensions: cooperation, dependability, attitude, quality of work, and quantity of work. The ratings are based on a five-point scale ranging from 1 (unacceptable) to 5 (outstanding). Supervisors are required to provide extensive narrative documentation to justify any ratings of "outstanding." Employees receiving below an overall rating of 3 (average) will not be eligible for consideration for the annual salary increment. Donna’s managers have expressed dissatisfaction with this system because of numerous complaints by employees about perceived unfairness in its administration. In job satisfaction surveys, employees have criticized the PA system as being too subjective and unfair and not very relevant to their jobs. In addition, departmental managers are concerned that this system does not allow for encouragement of continuous improvement in performance. - What are the deficiencies in the performance appraisal system as described? - What changes would address the concerns raised by management and the employees? - How should the revised PA system be implemented to ensure effectiveness?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Donna Karan is the director of health information services at Up-Scale Heights Community Medical Center. The medical center has established an objective performance appraisal (PA) system based on supervisory ratings in each of five performance dimensions: cooperation, dependability, attitude, quality of work, and quantity of work. The ratings are based on a five-point scale ranging from 1 (unacceptable) to 5 (outstanding). Supervisors are required to provide extensive narrative documentation to justify any ratings of "outstanding." Employees receiving below an overall rating of 3 (average) will not be eligible for consideration for the annual salary increment. Donna’s managers have expressed dissatisfaction with this system because of numerous complaints by employees about perceived unfairness in its administration. In job satisfaction surveys, employees have criticized the PA system as being too subjective and unfair and not very relevant to their jobs. In addition, departmental managers are concerned that this system does not allow for encouragement of continuous improvement in performance. - What are the deficiencies in the performance appraisal system as described? - What changes would address the concerns raised by management and the employees? - How should the revised PA system be implemented to ensure effectiveness?

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