CASE 3

CASE 3; Performance appraisal

Continuing our findings with HRM, we have quickly come to topic of Performance appraisal. Our case start with real life horror story of employee which in the end turns into favor of employee, in other words as title of blog says “A Performance AppraisalHorror Story (With A Happy Ending)”.

Hero of our example, Jerry Bumgarner received his very first performance appraisal after been seven years into HR-career. While in his own mind he had been nothing more than excellent employee, when receiving negative feedback about his performance it crushed him to the point he never wanted to receive appraisal feedback ever. After feedback, he felt like he is total loser, and failure after years of success. Receiving negative feedback was so upsetting, that he was considering to leave his job and to move to work in another company. However, little he did know, that purpose of performance appraisal is not to bring employee emotionally down, but rather to point his/her weaknesses, that he/she haven’t realized earlier to improve on to maximize his output of work assignments. Thanks to HR director who knew he need to step up and layout a plan with supervisor and employee about goals, expectations and compensations of achievements. With this clear and well planned plan, employee was able to show his supervisor best of his work, which results win-win situation to all three parties, employer, employee and supervisor. (1)

So, what is this so called “Performance Appraisal? According to businessdictionary.com, definition of Performance appraisal is “process where manager examines and evaluates an employee’s work behavior by comparing it with preset standards, document findings and uses the results to provide valuable feedback to employee what improvements are needed and why.” Also, another task of Performance appraisal is to determine who needs what kind of training, and who will be promoted, demoted, retained or in worst case scenario to be fired. (2)

Performance appraisal includes (figure 7.1, Managing human resources, Gomez, Balking & Cardy, 2016, 233);

Identification; which means managers must identify and determine which areas of work should he/she be examining when measuring performance. The appraisal system must focus on relative characteristics that affects success of company, thus leaving out characteristic such as race, age or sex.

Measurement; This is the key part of appraisal system, where managers are reviewing results of employees based on their performance and conclude how “good” or “bad” it was. To keep it fair measurement and reviews must be consistent.

Management; Instead of taking into consideration only past-oriented activities, Appraisal must take future-oriented view of to encourage employees to achieve their potential in the company. This means, employees must be provided feedback and necessary coaching to achieve goals of not only employee but of company as well.

The uses of Performance Appraisal

As we know already, performance appraisals are periodic assessments of employees, to provide them feedback., and pointing out weaknesses, strengths and laying out necessary plan to improve performance of employees. So shortly, performance appraisal is to evaluate, develop, recognize and feedback the employee. Performance appraisal start with evaluating how employees have meet the goals and objectives set by their managers/supervisors, and if necessary by pointing out how the can improve from this point. While evaluation is to identify weaknesses, developing is more of working with weaknesses turning them into strengths. This can be achieved by providing employee necessary training session. For example, in Managing Human Resources (chapter 7, Gomez, & al, 2016, 231), manager George was having performance review with employee Estelle. As it was pointed out that Estelle’s poor ratings on technical aspects, such as filing paperwork, placing orders and keeping account information up-to-date. As she admits her weaknesses, she doesn’t see it to be necessary for her to go for training as it was suggested. Recognition is when employee is outstanding an is constantly in top five percent in their group. As a recognition, they might be assigned to management role and receive extra bonus. Appraisals can be useful when collecting employee feedback about their feelings towards employer and satisfaction of their career development.

Measuring performance and tools

How to measure employee’s performance then? It is not easy as it sounds. It is like school grading where you grade students by numbers from one to five or labels such as, excellent, good, average and poor. Grading need to be relevant on topic, and sometimes only grading is not enough, but explanation is need to be provided. Overall, no matter which grading system is used, it is difficult to express dimensions of performance grading. Thank you for era of digitalization that managers nowadays have various of appraisal formats from which to take into practice and use on performance appraisal. Appraisal formats are divided into two ways, by the type of judgement (relative or absolute) and by the focus of the measure (trait, behavior, or outcome). (chapter 7, Gomez, & al, 2016, 236).

Relative judgment appraisal system compare all employees into same ranking based on the job they are executing. Basically, it means comparing employees with one to another. This provides ranking among fellow employees from best to worst. However, this does not mean whoever is best, is best in actual rating, only compared to his fellow coworkers. (figure 7.3, Managing human resources, Gomez & al, 2016, 236)

In figure 7.3, there is three teams in compare, and each team member’s performance is rated from best to worst, also there is rating of “actual performance” in left graded from one to ten. In team 1, even though Marcos is evaluated as number one in his group, he gets only overall grade of seven from perfect performance. If we compare team 1 and team 2, we can see huge differences between number one of team 1 and team 2, Marcos and Jill. Jill is graded as ten, where Marcos is rated only for grade seven.

Absolute judgement, counterpart of relative judgement appraisal, is asking supervisors judgement on employee’s performance based on solely on performance standards. This means employees are not compared with one another, but each one’s performance is individually under review.

Conclusion

As we saw in our example case, “A Performance Appraisal Horror Story (With A Happy Ending)”, negative feedback is not always bad but, vice versa, in my opinion if negative feedback is justified, the more it is important. Because usually as a human being we are self-centered, and we do not often see our mistakes and behavior. I have worked in few companies, as an employee and as an employer. I have never received feedback, but I have been giving feedback to our employees. All employees do not take negative feedback lightly, and might be crushing to them in their little perfect world they have created for themselves in their mind. I have learned a lot, how to gently give negative feedback, with first providing good feedback, but also pointing out they have room for more improvement, thus achieving unprecedented results. It is all out there within their fingertips, out there for them to take it and make something of their own. As I always tell my customers and coworkers, don’t focus too much on positive feedback, because it might blind you, and don’t focus negatively in negative feedback, as it will suffocate your ability to improve. Rather take the feedback, work on it, punch it in the face, re-format it, and make it part of your trait. It is like going in the gym, you will not get results only by going once in a gym, but results are achieved overtime.

Sources;

Source 1:

Gomez, Balkin & Cardy, 2016. Managing Human Resources, 8th edition, Pearson, chapter 7.

Source 2:

Bumgarner, 2011, A performance appraisal horror story (with a happy ending),

url; http://www.cascadeemployersblog.com/salarytrends/a-performance-appraisal-horror-story-with-a-happy-ending

accessed on the 12.02.2017 & 25.02.2017

Source 3:

Business Dictionary, Performance Appraisal,

url; http://www.businessdictionary.com/definition/performance-appraisal.html

Accessed on the 12.02.2017 & 25.02.2017

Source 4:

Wikipedia, Performance Appraisal,

url; https://en.wikipedia.org/wiki/Performance_appraisal

Accessed on the 12.02.2017 & 25.02.2017

Source 5:

Chron, Small Business,

url; http://smallbusiness.chron.com/multiple-uses-performance-appraisal-35839.html

Accessed on the 12.02.2017 & 25.02.2017

CASE 2

CASE 2;  Legal Compliance and Discipline and Grievance

Introduction

“The second-grade school teacher posed a simple problem to the class: “there are four blackbirds sitting in a tree. You take a slingshot and shoot one of them. How many are left?” “three,” answered the seven-year-old European with certainty.” One subtracted from four leaces three.”

“Zero,” answered the seven-year-old African with equal certainty. “if you shoot one bird, the other will fly away.” (managing human resource p.146) Probably one of the most important story to illustrate truth of HRM. People with different background (life experience) may deflect reality very different from one another. As an example, if you show person in mid 20 and over 50 years old as easy question of showing picture of landline phone, or rotating landline phone, and ask them how to use it, the answer may differ a lot from each other. Because person in mid-20 is born in era of technology where smartphones are in everyday use, might not recognize landline phone at all. Of course, this also differs from person’s origin. All though usage of landlines has been decreasing over years worldwide, in some part of earth, mainly in developing countries, you can still see them in number of locations. Another example is phone booths. They have been disappearing from public image a lot, and if someone in mid-20 sees it, may not even recognize it.

Thus, we can assume that persons in mid-20 way of thinking is different than elderly, this is stereotyping people by groups. Basically, by stereotyping we also are discriminating employees’ rights. Because we can’t assume that every member with same sex, ethnical and religious background are behaving same. Say employees with considerable military background are generally more accepting management with absolute authority, this might be possible only in military and governmental related jobs, but not in civilian work, such as banks, restaurants, car mechanics, and other workplaces. (picture 1, Managing human resource management, p. 147)

Picture 1- acceptance of authority

Shortly, when evaluating employees in HRM point of view, we must take into consideration all the fact about applicant as individual and not as representative of a group. It is true that some of the actions characterized by groups are applicable, but we are not to label everyone as same. Sexual orientation is the same, we can’t stereotype all homosexual to be crossdressers or “queens”. I can bet If you walk on the street you will not recognize 90% of gays just by assuming the way they look, behave or talk. Attitude towards these individuals must not change finding out about their background. As much as Ali can be European, David can be middle-eastern too. Same apply to only people with different ethnical background but those with disabilities too, who would have guess Stephen Hawking with his superior way of thinking could ever become one of the greatest scientist in our world. With discriminating people by appearance, we might lose great uncovered resources for good!

Not only individuals, but also companies need to capitalize employee diversity to survive and prosper in an heterogeneous society we are living in at the moment. This is also competitive advantage over competitors who are not focusing in these areas.

Employers rights

Managers and employers are always in though position. They are not only supervisor of workplace but manage a lot more than that. For instance, they must make the right hiring decision along with other duties they have. It is not always that clear to hire right person. In CV employee, can be irreplaceable, but in real life employee can be a trouble maker, with addictions and bringing bad atmosphere to workplace. I have personally witnessed that to happen.

One of biggest headaches employers have had is to confront employee about performance problems. Key for solving this issue, is to engage problem soon enough by engaging constructive feedback before it is too late. If feedback is not helping the issue and performance is not improving, manager is to call for discipline actions. Managers not only want employee’s performance to improve but also want employees to collaborate as a team with same goal. Managers are in difficult position when one employee complains about another. In these cases, they are also in fear of losing high potential employee for violations in work place. Figure 14.4. from book shows some examples of minor and serious violations (picture 2. P. 474)

Picture 2 - violations in workplace

Employer has right to give warning to anyone who is not following regulations and rules of workplace. Warning procedure goes as following; first verbal warning, second written warning, third suspension and if none of those work, finally fourth is discharge. Note, employer is to keep official record of warnings signed by both, employer and employee. (picture 3- step of warnings)

Picture 3 - step of warnings

Employees rights

In Finland employees has four main rights (3, www.infopankki.fi),  

- Join union; Each person can Join union to fight for his/her rights in working place in case of mistreatment.

- Right for healthy and safe working environment, In Finland Employer, must provide safe working environment to all their employees equally. Employer must orientate new employee to workplace environment. Not only employer but employee has to take safety measurement when working. Employer must provide first-aid training to some of employees.

- Protection provided by acts and contracts, working contract provided by employee must not conflict with previous acts, and collective agreement.

            - Compensation under Collective Agreement and provisions for minimum salary

So basically, those mentioned above are statutory rights which have been generated to develop employees’ rights for decent salary and against discrimination in workplace. Addition to those, employer must provide enough of training for new tasks.

In addition, Employee obligations are diligence in the workplace, loyalty and confidentiality to employer and must aim to;

-       Do work carefully and efficiently

-       To follow rules and regulations set by employer

-       Notify your supervisor about conditions, improvements needed, machinery etc.

-       Do not cause any damage to your employer, for example breaking intentionally machinery or revealing professional secrets.

Keywords;

Diversity, Employee, Employer, Stereotyping, Collective agreement, Trade unions,

Progressive discipline procedure

Sources;

1.http://employment.findlaw.com/employment-discrimination/employees-rights-101.html

2. http://www.investopedia.com/articles/personal-finance/120914/8-federal-laws-protect-employees.asp

3. http://www.infopankki.fi/en/living-in-finland/work-and-enterprise/employee-s-rights-and-obligations (Last updated: 07.07.2016)

4. http://www.tyosuojelu.fi/tyosuhde/oikeudet-ja-velvollisuudet-tyossa

5. https://www.thebalance.com/top-challenges-a-manager-will-face-2275955

6. Gomez, Balkin & Cardy, 2016. Managing Human Resources, 8th edition, Pearson

7.

8.

9.

10.

Labor Unions

Week 2, Trade Unions and Employment Laws

Let’s imagine that John Silver is 16 years old teen, who desires small rowing boat for himself. To pursue his desires, he decides to start working in local store. His daily chores are to clean store, organize shelfs and other errands appointed to him. Now he doesn’t know much about labour laws, so he is satisfied with whatever salary he is getting. Of course, not knowing labour laws, he is assuming he doesn’t need to join union because of his young age, besides he has known store owner for couple years already. Together with agreement, they decided to pay-out salary in cash every two week, thus there is no official document of employment. First couple weeks, was alright for John, he worked 8 hours a day,  and was happily counting days to get his new rowing boat. First problem was encountered when it was time for his first salary, employer complained there isn’t much work now, so he will pay in couple days when he gets more money. A week past, before employer paid John’s fist salary in cash. Within a month work load increased day by day. Also, all the breaks started to disappear slowly. And it took longer for employer to pay John’s salary. By the time summer vacation was over, employer owed John salary worth of 2 month, and was paying small amounts a week at a time. Eventually it took employer 6 month to pay rest of John’s salary, leaving John’ without rowing boat he wished for. Without legal employment documents, or membership of union, there was no one to help him out. He had to contend with his fate. Learning from his mistake, next summer he joined union, and for every job opportunity, he handed contract first to union lawyers to see if there is anything shady or not.

This might be exaggerated to you, but this is based on true story that happened to close friend of mine(name is obviously changed, and he wanted car not rowing boat.). It is true that many people think, union is waste of money, especially in Finland, because unemployment money received from government is almost as much as money received from Trade Union, if you include other benefits, such as housing support etc. But one need to keep in mind, that Trade unions are not only to pay you in time of unemployment, but also to help you out when you are mistreated in work, get fired without valid reasoning, or are not compensated enough per trade union laws. In trade union, mass is organized to help one each other. Mass can bring your voice to employers and government better than one voice. One of the greatest examples in history is generally is all slave rebellions. Slaves rebelling for better treatment by “owners”. If we compare past slave rebellions into the present time. Slave owners would be “employers” getting richer by hard work slaves “employees” do. Unsatisfied people together have brought down kings and queens of great empires.

Very “first labour” strike recorded in history is in 1619, by Polish craftsmen, which occurred in settlement of Jamestown in the Virginia colony. (1) Denying Polish craftsmens voting right in first election of colony, led to strike. Soon after strike, colonial leaders had to bow to the pressure, because of the importance of these craftmens. Leaders were afraid of loosing income and labor. In Europe, Labour movement started during Industrial revolution(1760-1840). (2.) At the time forming labour unions was forbidden, leading punishment of several groups

Human Resources Management is tool, new field to bring satisfaction to both side, Employers and Employees together. Humans have come a long way since age of slavery, and Employers realize by satisfying employee’s needs, there will be less strikes affecting production lines. However, Trade unions is widely practised and campaigning on behalf of employees only in western countries i.e developed countries. In many eastern countries, especially in middle-east and far-east (Vietnam, Laos, Cambodia, China) Trade unions are not visible or not actively fighting for employees right, or because of strict regulations and media coverage for certain topics, they are not as visible. ALL-China Federation of Trade Unions (ACFTU) which is nationalised organisation is the largest trade union in the world with 134 million members. 

Trade Unions & FINLAND

Not founding official figures, I expect there to be over ten of thousands of Trade unions worldwide. Generally, the intention of these unions are to unify workers of specific field to secure their employment rights through strength in numbers method. In Finland, there is three Trade union “federation”;

-        SAK (Suomen ammattiliittojen keskusjärjestö)

-       STTK (Toimihenkilökeskusjärjestö)

-       AKAVA (Korkeakoulutettujen työmarkkinajärjestö)

 Correspondingly there is four employer unions;

-       EK (the confederation of Finnish Industries EK)

-       KT (Local Government Employees)

-       VTML (The office for the government)

-       KiT (The Labour market organisation of the Church)

Trade Unions negotiate collective labour agreement with employer’s association. For example, those working in restaurants and other service industries, PAM from employee’s side and MARA from employer’s side will negotiate for collective agreement for their field together, which includes negotiation of salary raises and working conditions. Not only negotiating collective agreement, trade unions responsibility is to control interests of employees and follow that collective agreement. In return Trade unions are offering to their member’s protection against unemployment and against mistreatment in work life. Also, providing lawyer services for usage of their members. To sum it up, main function of unions is to not only support common interest of its members, but also to protect and defend them by being mediator between workers and employers, also result of ideals of fairness and equality on most cases of people rebelling against central government and big companies.

Employees in Finland are very actively joining to trade unions as soon as they enter work life. From this pie-chart(figure 1) I made you can spot three federation which are coalition of several trade unions. Biggest federation is SAK with 992 716 members, second is STTK with 608 000 members and last one is AKAVA with 596 947 members. Together they have 2 197 663 members in whole of Finland. For comparison population of Finland is 5 509 329 people. That is almost 40% of whole population of Finland. (3,4,5,6) For comparison there was around 6,5million trade union members in the UK in 2015. Population of UK is approximately 65million people. Amount of trade union members is only 10% of whole population. (7,8)

Figure 1 - members of trade unions

Trade union Lawsuits

Trade Unions are in many countries slowly loosing grip and members. Lately trade unions have been more active by filing several lawsuits. This could be seeing as one way to grow trust towards unions once again. They are suing not only private sector employers but also public sector and governments for mistreat of employees. In 2016 Union of Croatian Education Workers filed 4 lawsuits against government on behalf of teachers whose salary was not increased as in agreement. (9) In another case trade union PAM in Finland have filed lawsuit against government owned Alko for salary of additional working hours of their employees. (10)

Sources;

1. https://en.wikipedia.org/wiki/1619_Jamestown_Polish_craftsmen_strike

2.https://en.wikipedia.org/wiki/Labour_movement

3. https://www.sak.fi/tama-on-sak/ammattiliitot/jasenmaarat

4. https://fi.wikipedia.org/wiki/STTK

5. http://www.akava.fi/jasenmaarat

6. http://vrk.fi/etusivu

7.https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/525938/Trade_Union_Membership_2015_-_Statistical_Bulletin.pdf (trade union members, page 3)

8. http://www.worldometers.info/world-population/uk-population/

9. http://www.total-croatia-news.com/business/14966-trade-union-files-lawsuits-against-government

10. http://yle.fi/uutiset/3-8011933