Understanding Human Resource Management
To establish a successful business, it is crucial to recruit dedicated and skilled employees who are committed to maximizing company profits Effectively managing this workforce is a key responsibility of the Human Resource Management Department.
Human Resource Management is a lengthy process of tactful managing and controlling people in a good relationship between employers and employees The term
"Human Resource Management", thus, has become no strange to any companies regardless of its type and size in recent years.
Human Resource Management plays a crucial role in aligning human resource needs with organizational objectives There are various definitions of human resource management that highlight its importance in achieving these goals.
According to Harris (2000: 4), "Human Resource Management may be defined as programs, policies, and practices for managing an organization's workforce".
Human Resource Management emphasizes the significance of an organization's workforce as essential assets that contribute to its objectives It involves various functions and activities aimed at ensuring the effective and equitable utilization of these human resources, benefiting individuals, the organization, and society as a whole.
Stone (1995) defines Human Resource Management as the practice of managing the employer-employee relationship, emphasizing the effective use of personnel to meet organizational goals while also addressing the needs of individual employees.
Because Human Resource Management seeks to integrate the interests of an organization and its employees, some main Human Resource Management activities
-~ of benefits have the purpose of improving the quality of work life and attracting employees for a safe and reliable place to work in.
Industrial relations refer to the dynamic between an organization and its employees Positive industrial relations foster a sense of collective spirit among workers, enhancing teamwork and collaboration Conversely, poor relations can lead to conflict, as employees may feel undervalued and disengaged in a low-commitment environment.
Organizations must ensure a safe working environment to protect employees' rights, free from physical hazards and unhealthy conditions By implementing effective health and safety programs, companies can safeguard both the physical and mental well-being of their employees.
Importance of Human Resource Management
Human Resource Management (HRM) plays a crucial role in managing the employer-employee relationship by effectively utilizing personnel to achieve organizational goals while addressing individual employee needs It significantly contributes to an organization's success through the coordination of its human resources As noted by Stone (1995), ineffective HRM can hinder employee satisfaction and overall organizational success, highlighting the importance of aligning HRM objectives with these considerations.
• To attract potentially qualified job applicants
Hiring qualified workers is essential for a company's success, regardless of its size or type These individuals bring valuable experience and a strong work ethic, contributing significantly to the company's goals Attracting skilled job applicants is crucial for enhancing business growth in today's competitive marketplace.
A key goal of Human Resource Management is to retain valuable employees who are committed to the long-term success of the company To achieve this, HR managers must effectively encourage these individuals to remain with the organization Successful companies create an environment that attracts desirable talent by offering opportunities for professional development and pathways for promotion, ensuring that employees feel valued and motivated to contribute to the company's growth.
"Motivation refers to forces within an individual that account for the level, direction, and persistence of effort expended at work." (Schermerhorn, Hunt, and Obsorn, 1997:87)
Motivation is crucial in any job, regardless of its size, especially in the workplace where repetitive tasks can lead to boredom Employees often require motivation to combat stress and reignite their interest in their work Managers play a vital role in this process by providing encouragement and support Human resource managers can implement various motivational strategies, such as rewarding hard work with bonuses, promoting high-performing employees, or offering opportunities for advancement These approaches aim to enhance job satisfaction and inspire employees to perform at their best.
In general, "all human resource objectives and activities must be evaluated in terms of how each contributes to the achievement of organization objectives." (Stone, 1995: 12). This means that they must:
Include deadline dates for accomplishment
IdentifY and involve the key stakeholders and/ or human resource customers to ensure the necessary collaboration.
Nominate the individual or parties responsible for implementation.
According to Shermerhorn (1996:250), the major elements in the Human Resource Management Process are:
- Attracting a quality workforce: managing human resource planning, recruitment, and selection.
- Developing a quality workforce: managing employee orientation, training and development, and career planning and development.
- Maintaining a quality workforce: managing retention and turnover, performance appraisal, compensation and benefits, and labor- management relations.
Performance appraisal
Another key human resource management function is performance appraisal, which helps both the manager and subordinates maintain the organization - job - employee characteristics match.
"Performance appraisal is a process of systematically evaluation performance and providing feedback on which performance adjustments can be made." (Schermerhorn, Hunt, and Obsorn, 1997:116)
• The role of performance appraisal
Performance appraisal should serve two purposes:
Performance appraisal serves to inform individuals about their standing in relation to performance objectives and standards by comparing past and present performance This evaluation helps determine if results align with organizational goals Human resource managers utilize these assessments to measure outcomes against established standards, which aids in making informed decisions regarding improvements or training programs Additionally, documenting performance creates a record that supports the allocation of performance rewards.
Consequently, the manager acts in the judgmental role of giving a direct evaluation of another person's performance accomplishments.
The primary aim of performance appraisal is to support the ongoing training and personal development of employees, as highlighted by Schermerhorn (1996) This process emphasizes future performance and evaluates how well employees meet success standards in their daily tasks It helps identify performance obstacles that employees face, enabling managers to determine effective strategies for overcoming these challenges Consequently, managers can pinpoint relevant training and development opportunities while taking on a counseling role to address the developmental needs of their subordinates.
The assessment of employees' performance contributes positively to training and development as a Human Resource Management function (Schermerhorn, 1996: 257)
( Locher, A.H & Teel, K.S (1997) Performance Appraisal: A Survey of Current
Practices, Personal Journal, Vol 56, No.5, pp 245-257, URL: http://www.performance-appraisal.com/benefits.htm [accessed May 2005]).
An effective appraisal system is essential for enhancing product quality and improving employee performance within an organization Implementing performance appraisals offers numerous benefits that organizations must carefully consider to foster growth and development.
In the hectic pace of daily work life, performance appraisals provide a valuable opportunity for supervisors and employees to engage in one-on-one discussions about crucial work-related issues that often go unaddressed.
If the performance appraisal is conducted properly, both employees and employers can exchange valuable and meaningful experience in doing the job.
Appraisal offers opportunities for both supervisors and subordinates to concentrate on work activities and goals, to correct existing problems as well as to encourage better
PAGE 9 performance if needed Therefore, the performance appraisal of the whole organization is enhanced.
For many employees, an "official" appraisal interview may be the only time they get to have exclusive, uninterrupted access to their supervisor.
Performance appraisal significantly impacts employees' work abilities, motivation, and job satisfaction When appraisals yield fair and accurate evaluations, they enhance employees' sense of worth, commitment, and belonging, leading to improved performance and job satisfaction Conversely, inaccurate or negative appraisals can result in boredom and dissatisfaction, increasing absenteeism and turnover rates within the organization Therefore, conducting regular performance appraisals is essential for delivering precise assessments of employee performance.
Performance appraisals provide insights into employees' current capabilities, offering human resource managers a clear view of both present performance and future career aspirations within the organization These insights enable HR managers to identify and implement necessary training programs to enhance overall workforce efficiency.
Appraisal data plays a crucial role in evaluating the effectiveness of an organization's recruitment and induction practices It enables the monitoring of changes in recruitment strategies and assesses whether the overall quality of the workforce is improving, remaining stable, or declining.
Employee evaluation is a key aspect of performance appraisal, revealing each employee's true working competence Based on appraisal outcomes, human resource managers can implement appropriate reward or improvement strategies for high performers, while providing encouragement and development opportunities for those who fall short of expectations.
To establish a fair performance appraisal system, managers must objectively differentiate between high and low-performing employees Those underperforming should receive support and opportunities for improvement, while top performers should be rewarded with praise, pay raises, promotions, and development opportunities This differentiation enables managers to understand each employee's capabilities and tailor plans accordingly Ultimately, effective performance appraisal is essential for organizational survival, growth, and the retention of top talent, making it an unavoidable aspect of managerial responsibilities.
Recognizing and rewarding exceptional performances is crucial for motivating employees who contribute significantly to a company's success Those who demonstrate outstanding talent and dedication deserve the highest accolades, as this acknowledgment reinforces their commitment to achieving impressive results Without an objective performance measurement system in place, organizations may struggle to encourage employees to enhance product quality Therefore, implementing a comprehensive performance appraisal system is essential for fostering a culture of excellence and continuous improvement.
Implementing an objective performance appraisal system can enhance employee performance by effectively linking their contributions to rewards According to Stone (1995), this approach ensures that organizations maximize the value of their compensation expenditures.
The primary goal of performance appraisal is to foster employee development by enhancing professional skills through targeted developmental programs These initiatives aim to empower employees to take initiative, strengthen their abilities, and create opportunities for career advancement Consequently, performance appraisals should be viewed as a constructive and dynamic process focused on individual growth As noted by Stone (1995), "Performance improvement comes about by building on strengths and overcoming weaknesses." Thus, an effective evaluation system not only distinguishes high performers from low performers but also establishes improvement plans to support employee advancement.
Effective communication of an employee's performance results is a crucial and ongoing aspect of the evaluation process This transparency allows employees to clearly understand their strengths and weaknesses, enabling them to take corrective actions and enhance their job performance Managers must also recognize employees' strengths and weaknesses, identify necessary training and development, and create opportunities for new job experiences Therefore, communication with employees is a key purpose of performance appraisal.
;::iS1 Uses of performance appraisal. f::iSI Responsibility for appraisal.
:':iSI Characteristics of an effective appraisal system. f::iSI Problems in performance appraisal.
:::iSI Performance appraisal and Equal Employment Opportunity (EEO)
Performance appraisal in details
Uses of performance appraisal
Human resource planning is essential for aligning organizational objectives with recruitment, selection, and promotion decisions Performance appraisal plays a crucial role in assessing employee performance, allowing organizations to evaluate how effectively staff meet job expectations and compare this data against organizational goals This information is vital for determining the promotability and potential of all employees, particularly key executives.
Performance appraisal plays a crucial role in recruitment and selection by predicting job applicants' performance Human resource managers utilize behavioral interviews to evaluate whether candidates possess the necessary qualifications for job vacancies Additionally, performance appraisals establish benchmarks that facilitate the assessment of applicant responses after they have spent a specific period in their new roles.
Training and development play a crucial role in identifying an individual's strengths and weaknesses, enabling managers to design tailored programs that enhance employees' skills while addressing their shortcomings.
Effective career planning and development are crucial for identifying high-performing employees and assessing their strengths and weaknesses This process enables organizations to create tailored plans that address career advancement and development needs, ultimately fostering a more skilled and motivated workforce.
• Compensation programs: provide a basic for rational decisions regarding pay adjustments.
Data from employee performance appraisals plays a crucial role in shaping internal employee relations, enabling managers to make informed decisions regarding motivation and promotions for high-performing workers Conversely, consistent underperformance can lead to demotion or layoffs Additionally, if an employee is deemed unsuitable for their current role, managers have the option to transfer them to a new position that better aligns with their skills.
Performance appraisals enable managers to assess employee potential by identifying individuals who excel in their roles This evaluation process helps create a list of high-potential employees, who are considered valuable human resources These talented individuals are likely to contribute significantly to the company's success through their dedication and skills.
Source: Mondy, Noe, and Premeaux, 2001, Human Resource Management.
The performance appraisal process is influenced by both external and internal environments As noted by Nguyen (2004: 322), the external environment encompasses competitors and labor laws Specifically, Articles 108-109 of Vietnam's Labor Law, effective from January 1, 1995, emphasize the prohibition of discriminatory practices, particularly against women, in performance appraisals Consequently, administrative managers must adhere to these legal stipulations when evaluating employee performance.
Labor's Trade Union and Labor's Union League significantly influence the appraisal process by exerting pressure on managers This often manifests in demands for higher salaries and the establishment of seniority thresholds for workers, which can overshadow performance-based evaluations.
There are 5 steps in this performance appraisal process.
Step 1: Identifying specific performance appraisal goals.
To ensure fair evaluations for all employees, organizations must clearly define appraisal goals tailored to different positions It's crucial for employees to understand their expected contributions and the outcomes that will be valued Additionally, performance appraisal goals should be communicated to all staff, enabling them to identify effective strategies for achieving high performance According to Schermerhorn, Hunt, and Osborn (1997: 116), the primary purpose of performance appraisal is to provide feedback on employee performance.
- Define the specific job criteria against which performance will be measured.
- Measure past job performance accurately.
- Justify the rewards given to individuals and! or groups, thereby discriminating between high and low performance.
- Define the development experiences the ratee needs to enhance performance in the current job and to prepare for future responsibilities.
Step 2: Establish job - expectations (job- analysis).
After identifying specific performance appraisal goals, the task of human resource managers is to establish job expectation or job analysis.
Job expectation or job analysis contains information about what tasks, duties, and responsibilities that one employee needs to carry out in relation with other jobs, the
PAGE 16 conditions under which work is performed, and the required characteristic for successful completing the job The purpose of establishing job analysis is to obtain answers to such question as:
Why does the job exist?
What physical and mental activities does the worker undertake?
When and where is the job to be performed?
What qualifications are needed to perform the job?
What machinery or equipment is used in the job?
Job analysis is crucial for managers as it allows them to assess the quantity and quality of work produced by employees By evaluating employee performance, managers can effectively conduct performance evaluations, ensuring a fair and comprehensive assessment of their team's contributions.
Performance appraisal involves assessing employee work to aid managers in making decisions about rewards, promotions, and transfers Employees who meet job quantity and quality standards are recognized as good performers and rewarded at the end of the evaluation cycle Those who consistently excel may be offered special training and development programs to enhance their skills Conversely, employees who demonstrate weaknesses will receive encouragement to improve their performance.
Step 5: Discuss appraisal with employees.
Discussing appraisal results with employees is a crucial aspect of the assessment process, as it allows them to understand their actual performance and identify areas for improvement This dialogue not only helps employees recognize their strengths and weaknesses but also addresses any concerns regarding unfair evaluations, prompting them to seek reconsideration Consequently, ongoing discussions about appraisals are essential for human resource managers to foster a transparent and constructive feedback environment.
Responsibility for appraisal
Supervisors play a crucial role in assessing employee performance, as they are well-acquainted with their team's daily tasks and responsibilities Traditionally, these immediate supervisors have been responsible for conducting performance appraisals, leveraging their in-depth knowledge of each employee's capabilities Their primary function is to oversee daily operations and implement appropriate training and development programs tailored to the individual strengths of their employees.
Appraisal programs and employee development are interconnected, yet assessments often focus on a narrow range of performance aspects Immediate supervisors may prioritize specific job-related criteria while overlooking critical factors such as employee ethics, professional conduct, and communication skills This limited evaluation approach can result in inaccurate or misleading assessments of employee performance.
The disadvantage of assessment by immediate supervisor is that managers have been known as manipulate evaluations to justify their pay increases and promotions.
Subordinates have a unique perspective on their supervisor's managerial effectiveness due to their close working relationship Their extensive experience working together allows them to assess their supervisor's skills and qualifications accurately Therefore, subordinates play a crucial role in evaluating and providing feedback on management performance.
PAGE 18 evaluating their supervisors However, those employees will be fearful of reprisal; they sometimes do not provide exactly information about their supervisor's performance. The disadvantage of assessment by subordinates is that how employees can know what instructions their supervisors have been received from other managers in order to give him or her accurately performance appraisal.
While it may seem that our supervisor is strict and unfriendly due to his tendency to punish late or lazy workers, this perception may not reflect the full picture It's important to consider that his strictness could stem from directives from higher management or pressure he faces from superiors Understanding this context can lead to a more accurate evaluation of his behavior.
Team members have a unique insight into each other's performance, often understanding strengths and weaknesses better than anyone else Due to the time spent working together, colleagues are well-positioned to make accurate assessments of one another's job performance.
Peer appraisal can be effective when conducted objectively and accurately; however, inaccuracies may arise from personal biases such as jealousy or animosity Additionally, peers who do not interact regularly may lack the necessary information to provide a fair evaluation of their team members.
Self-appraisal offers a valuable perspective for evaluating individual performance, as many individuals are aware of their strengths and areas for improvement However, in practice, self-appraisal may be unreliable, as few people are willing to candidly acknowledge their true work abilities This often leads to a tendency to downplay weaknesses while emphasizing strengths.
In service industries like reception and cashier roles, customer satisfaction is crucial for a company's success Managers often rely on customer feedback to assess employee performance However, this method can be misleading, as job-related stress may lead employees to display negative behaviors or unprofessional expressions, causing customers to perceive them as insincere or unfriendly.
No method guarantees complete accuracy in performance appraisal The choice of method or a combination of methods should be tailored to the organization's size, type, structure, and existing appraisal practices.
Perform an ce apprai sal methods
A number of methods are usually used in performance appraisal.
Rating scales are a popular method for performance appraisal due to their simplicity and ease of implementation This approach involves assessing performance on a scale typically consisting of four or five levels, using descriptive adjectives such as outstanding, average, or unsatisfactory to categorize the results.
The critical incident method allows supervisors to document specific behaviors of employees that contribute to positive or negative outcomes, ultimately influencing performance evaluations However, this approach can be time-consuming, making it less suitable for large organizations where managing numerous employees can overwhelm managers.
Managers utilize essays to articulate their assessments of employee performance, focusing on various aspects such as the quantity and quality of work, job knowledge, interpersonal skills, and identifying strengths and weaknesses (Stone, 1997:192).
The effectiveness of an employee's evaluation, which influences decisions on rewards, promotions, or transfers, largely hinges on the manager's writing skills A well-crafted essay can lead to an outstanding assessment of the worker's performance, while poor writing, including misspellings, can tarnish a positive evaluation.
• Work standards: this is an objectively method that compares each employee performance to a predetermined standard This method is suitable for production jobs.
Ranking is the most traditional and straightforward method of evaluation, where employees are assessed based on their performance This approach involves comparing individuals and organizing them from highest to lowest according to their results and job execution over a specific period.
Forced distribution is a performance appraisal method that categorizes employee performance into limited groups, such as "very good," "good," "poor," and "very poor," resembling a normal frequency distribution (Schermerhorn, Hunt, and Osborn, 1997: 120) This approach requires assessors to classify a specific percentage of employees—5% as very good and 10% as good—thereby preventing the tendency to rate all employees as outstanding or average However, this method can pose challenges when a majority of employees perform at similar high levels or when many are genuinely superior performers.
Forced-choice performance reports are a specific performance appraisal method where evaluators assess employees by selecting from a series of statements that describe their work performance This technique requires evaluators to identify which statements best or least represent each employee, providing a structured approach to performance evaluation.
Weighted checklist performance reports are a performance appraisal method that assesses the relative difficulty or weight of different jobs This technique involves raters completing a form that resembles a force ranking system, allowing for a comparison of job complexities and responsibilities.
- choice performance report except that the various responses have been assigned different weights.
Behaviorally Anchored Rating Scales (BARS) are a comprehensive performance appraisal method that assesses observable employee behaviors This approach merges traditional rating scales with critical incident techniques, making it intricate and time-consuming to develop Despite its complexity, BARS offers specific behavioral insights that enhance counseling and feedback, while also serving quantitative evaluation purposes (Schermerhorn, Hunt, and Osborn, 1997:122).
An assessment centre is a method used by our company to evaluate employee performance, outsourcing this task to specialized centres Its primary aim is to identify high-potential or promotable employees through various simulated activities, including interviews, in-basket exercises, group discussions, and business games While assessment centres can be costly and time-consuming, their effectiveness largely hinges on the expertise of trained assessors and psychologists (Stone, 1995:194).
Management by Objectives (MBO) is a collaborative approach where managers and subordinates set specific task-related goals together This method clearly defines the major areas of responsibility for subordinates, allowing for performance evaluation based on expected results MBO is straightforward and effectively aligns subordinate assessments with established objectives.
Paired comparison is an appraisal method that involves directly comparing each employee with every other employee being evaluated (Schermerhorn, 1996: 120) In this process, the evaluator uses separate sheets listing employees in a predetermined order and selects the individual they believe performs better based on specific criteria This method typically assesses the overall ability of employees to fulfill their current job responsibilities.
Characteristics of an effective performance appraisal system
• Job- related criteria: evaluation should be carried out based on job- related criteria.
To ensure effective employee performance evaluations, human resource managers must establish clear, job-related criteria tailored to each role's specific requirements For instance, the evaluation standards for a director's secretary should include attributes such as diligence, attention to detail, proficient typing skills, effective telephone etiquette, and courteous behavior By implementing these targeted standards, raters can provide more accurate and meaningful assessments of employee performance.
Performance expectation is crucial in the appraisal process, as it reflects employees' anticipation regarding the outcomes of their evaluations To mitigate anxiety and prevent unexpected results, managers should clearly communicate the objectives and criteria of the appraisal, as well as provide timely updates on the evaluation results.
To ensure fairness and consistency in employee evaluations, it is essential that all employees performing the same job under the same supervisor are assessed using standardized criteria and uniform evaluation methods.
The effectiveness of performance appraisal systems relies heavily on the expertise and techniques of trained appraisers Therefore, it is essential for organizations to implement training programs for appraisers to ensure that those evaluating employee performance possess the necessary knowledge and skills This approach helps avoid scenarios where evaluations are conducted by unfamiliar individuals rather than immediate supervisors, enhancing the overall reliability and validity of the appraisal process.
Continuous open communication is essential for employee performance, as most workers seek feedback on their job performance and areas for improvement An effective appraisal system should deliver regular, constructive feedback, allowing employees to identify their strengths and weaknesses This ongoing feedback helps them develop strategies to enhance their skills and overcome challenges, fostering professional growth and job satisfaction.
After six months to a year of conducting performance appraisals, it is essential for managers to evaluate the effectiveness of these methods This review process helps ensure that the evaluation criteria remain relevant and aligned with organizational goals.
Due process allows employees to voice proposals or complaints regarding appraisal results they believe are unfair or do not accurately reflect their true work performance during a specific period.
Problems in performance appraisal
A significant issue in performance appraisal is the lack of objectivity from managers, which can result in employee dissatisfaction and complaints Ensuring that each employee's work performance is evaluated fairly is crucial for maintaining the reliability and respectability of the appraisal process.
• Halo errors: "occurs when the manager gives an employee the same rating on all factors, through generalizing from one specific factor." (Stone, 1995: 185)
Raters often commit halo errors by not distinguishing between an individual's strengths and weaknesses For example, employees with good attendance may be perceived as intelligent and responsible, leading to inflated performance ratings Conversely, those who arrive late may actually deliver higher quality and quantity of work, yet are unfairly labeled as poor performers.
Leniency errors occur when managers assign high ratings to nearly all employees they oversee, while strictness errors involve giving low ratings to everyone This tendency can significantly impact performance evaluations and overall team dynamics.
Leniency and strictness errors in performance evaluation can negatively impact employee motivation and development When managers are perceived as overly lenient, employees may feel less compelled to address their shortcomings, leading to a decline in overall performance It is crucial for managers to strike a balance in their evaluations to foster a productive work environment.
PAGE 24 to make progress in work Likewise, managers who are too strict in appraising will disappoint employees for the feeling of getting nothing after trying to make a host of efforts in correcting their faults and in overcoming their job-difficulties.
• Central tendency: is a method used by a manager giving all employees an average or acceptable rating, regardless of actual performance (Stone, 1995: 185)
The central tendency method leads to biased evaluations, as it fails to distinguish between high and low performers This approach unfairly impacts employees who consistently exceed average work performance, undermining their contributions and achievements.
• Recent behavior bias: occurs when the rater allows recent events to influence a performance rating without reviewing the whole process of employees' work performance.
Performance appraisals can be significantly impacted by isolated incidents, such as an employee who is typically punctual arriving one hour late just two days before their performance review Despite a history of being on time, this single tardiness can lead to a lower rating in "promptness," overshadowing their overall dedication and reliability.
A cunning employee may exploit performance bias by showcasing exceptional work just before appraisal time, such as arriving early, staying late, or demonstrating high motivation, ultimately leading to a "high" performance rating.
To ensure fair and accurate evaluations, managers should regularly assess employee performance based on the entire working period rather than solely on recent behaviors This approach maintains the effectiveness of performance reviews as a management tool and aligns the evaluation results with actual performance.
Personal bias errors in performance evaluations occur when raters allow their specific biases, influenced by attitudes towards individuals or groups, to affect their assessments These biases can stem from demographic factors such as age, sex, gender, disability, and religion Research indicates that we are more likely to favor individuals who share our religious beliefs, and findings also show that high-performing females are frequently rated higher than their male counterparts (Stone, 1995: 187).
Performance appraisal issues arise when managers influence employees to perform well solely for the sake of completing the evaluation process To ensure fairness, appraisers must base their assessments on objective, job-related criteria rather than personal biases This manipulation often stems from managers who are overly lenient and avoid taking responsibility for accurate ratings, resulting in inflated evaluations where all employees receive rewards regardless of their actual performance.
Effective performance appraisal is crucial in the workplace, as it can prevent feelings of jealousy and resentment among employees When an appraisal system is not utilized properly, it can lead to dissatisfaction and increased absenteeism Conversely, a well-structured appraisal process enables employees to identify their strengths and weaknesses, paving the way for personal and professional development.
Performance appraisal and Equal Employment Opportunity (EEO)
Every employee, regardless of their position—from managers to assembly line workers—strives to excel in their roles and contribute to the company's success Consequently, a reliable performance appraisal system is essential for accurately measuring each employee's capabilities and aligning with equal employment opportunity (EEO) requirements It is crucial that performance evaluations genuinely reflect employees' overall work processes and their attitudes toward challenging tasks.
PAGE 26 behaviors toward the working environment Furthermore, these recorded data must base on EEO requirements Human resource managers should learn how to conduct an effective performance appraisal that is job related and non- discriminatory.
According to Raymond J Stone (1997, 2000) these following practices should be utilized if an organization is to be successful in defending its appraisal system as being non-discriminatory:
Job analysis must be used to develop the system.
The performance appraisal scheme must be behavior- oriented rather than trait- oriented.
Managers must be given definite instructions and are training on how to make appraisals.
Results must be communicated to employees.
There must be a provision for appeal in the case of disagreement.
An ineffective performance appraisal system can lead to employee grievances and dissatisfaction, potentially violating Equal Employment Opportunity (EEO) standards and incurring significant costs related to complaints and lawsuits Therefore, managers responsible for appraisals must consider factors such as public relations, confidence in personnel decisions, and employee morale to ensure that performance evaluations are objective and non-discriminatory.
INTRODUCTION TO LIEN THANH SEAFOOD PROCESSING JOINT STOCK COMPANY mj1J An overview of Lien Thanh Seafood Processing Joint Stock
::jj1J Managerial Organization of Lien Thanh Seafood Processing Joint
::jj1J Human Resource Organization Department of Lien Thanh
Seafood Processing Joint Stock Company.
::jj1J Administrative Department of Lien Thanh Seafood Processing
Introduction to Lien Thanh Seafood Processing Joint Stock Company
An overview of Lien Thanh Seafood Processing Joint Stock
• History of foundation and development
Established in 1906, Lien Thanh Company operates under the Ho Chi Minh City Agricultural Ministry and specializes in the production and trading of fish sauce and fish remainders, branded as Red Elephant Following the liberation of the South on April 30, the company has continued to thrive in the seafood industry.
In 1975, Lien Thanh Company transferred its assets to state control, leading to the establishment of the Seafood Processing Enterprise in Ho Chi Minh City This initiative was part of the city's reconstruction efforts, where the People's Committee allocated nine workshops previously owned by private entities to the enterprise, as outlined in decision 162/QDUB on August 1, 1975.
In December 1990, the Lien Thanh Fish Sauce Nationalized Enterprise was renamed Lien Thanh Seafood Processing Enterprise, following decision 425/QDUB by the HCM City People's Committee, which outlined its primary objectives.
- The company was organized to produce and process seafood, fish sauces and some dry- fresh goods for serving the local needs and for exporting.
- The company was permitted to associate and joint venture with economic units from inside or outside the country as stipulated of the State.
- The company was permitted to open stores near the factory to sell and introduce its products as well as its convectional goods.
In 2000, the HCM City People's Committee approved the name change to Lien Thanh Seafood Processing Joint Stock Company, reflecting the company's successful business performance over three consecutive years This transformation aimed to enhance the company's adaptability to the evolving economic environment, leading to its privatization as per decision 4225/QD-UB-KT on August 15, 2000.
The company's transaction name: Lien Thanh Seafood Processing Joint Stock Company.
Abbreviation name: Lien Thanh, Co.
(Project of Privatizing Lien Thanh Seafood Processing Joint Stock Company in 2000)
• The company's functions, tasks and developmental approaches:
According to Project of Privatizing Lien Than Seafood Processing Joint Stock
Company in 2000, the company would have its following tasks:
The company operates as an economic unit focused on the seafood sector, primarily producing fish sauce, an essential ingredient for everyday meals Additionally, it processes fish remnants to support agricultural production, enhancing economic efficiency through secondary activities.
The company's primary responsibilities included the production of fish sauce and the processing of fish by-products for sale, aimed at supporting agricultural production These initiatives were designed to stabilize and improve the quality of life for all employees and staff within the organization.
The company aims to expand its business operations beyond fish sauce production by engaging in the trading, processing, and supplying of both dry and fresh seafood commodities This strategic development not only supports the primary production activity but also enhances local and export markets.
Lien Thanh Seafood Processing Enterprise has been established following a decision 125/ QD- VB ofHCM City People's Committee on November 6 th, 1992.
Full name: Lien Thanh Seafood Processing Enterprise.
Transaction name: Lien Thanh Seafood Processing Enterprise.
Location: 710- 712 Ben Ham Tu Street, District 5, Ho Chi Minh City.
Business occupation: Processing seafood, different kind of fish sauce and trading fish remainders to serve the agriculture.
The company is an independent calculate unit.
Business capital: as recorded in the company's file, until November 31, 1999:
Dividing to the structure of capital:
Fixed capital: 2.727.585.528 VND Mobile capital: 5.189.153.994 VND Dividing to the source of capital:
Stated owned capital (including capital supported by the budget + capital originated from the budget and capital accumulated by the business) In which:
The state-owned capital amounts to 4,693,739,522 VND, while the labor force within the enterprise has borrowed 673,000,000 VND Additionally, the company has secured 2,550,000,000 VND from local confidence At the time of initiating the privatization project, there are a total of 99 employees involved.
In which: - Cadres with college or university education 6 persons
Cadres with middle level 8 persons
Long time contract labors : 71 persons Short time contract labors : 24 persons
Managerial Organization of Lien Thanh Seafood Processing Joint
The company is put under the management of the director, besides, there is a vice director and a chief accountant who assist the director's daily works.
Lien Thanh Seafood Processing Joint Stock Company is organized depend on each individual and each department's functions and tasks.
Director: is the person who organizes and operates the whole company's activities following a leader system and is the person who responsible for the State and the directly superior agency.
Vice-director: is the director's assistant, responsible for the director about the assigned jobs as well as some personal behaviors that go against the discipline.
The chief accountant plays a crucial role in supporting the director by acting as the financial controller of the company This professional is responsible for overseeing all statistical and accounting tasks, as well as managing economic information and calculations within the organization.
• The company's apparatus of managing profession includes:
Administrative Organization Department: manages and organizes human resource management, the employees' salary and the company's financial management assignments.
Accounting and Financial Department: responsible for calculating accounting and the company's organizational assignments.
Consuming and Supporting Department: responsible for the company's planned assignments, regularly material supporting and product consuming assignments.
Accounting and Product Quality Control Department: responsible for assignments that improve the production procedure and control the product's quality.
Collecting and Purchasing Department: responsible for assignments that collect and purchase materials as well as transporting, maintaining, and warehouse- entering.
Production Support Service Department: responsible for collecting, processing and supplying for export seafood commodities.
Factory 1: 243 Ben Van Don Street, Ward 5, District 4.
Factory 3: 302/5A No Trang Long Street, Ward 6, District 12.
Factory 4: 77/5 Xo Viet Nghe Tinh Street, Ward 26, Binh Thanh District.
Factory 5: Hamlet 4, Tan Kim Commune, Binh Chanh Precinct.
The processing station is located at 110 Kha Van Can Street, Linh Trung Commune, Thu Duc Each production factory is overseen by one manager and two vice-managers who are responsible for administration and discipline, supported by production group leaders.
In addition, the company also has transaction offices and product introduction offices at the company (Project of Privatizing Lien Thanh Seafood Processing Joint StockCompany in 2000)
Human Resource Department of Lien Thanh Seafood Processing
Until the late 2002, the company' total workers are 88, including 61 males and 27 females, in which 20 persons have achieved university education level and are placed into different working departments as follow:
• Profession section with four functional departments includes: Technical Department, Administrative- Organization Department" Business- Marketing Department, and Accounting and Finance Department, 30 staffed employees in which there are 10 marketing employees:
• Production sector includes three factories of producing fish sauce and one factory specializes in producing and package- entering with the presence of 46 workers do managerial and directly producing jobs.
The vessel group consists of two operational vessels dedicated to the collection, purchasing, and transportation of fish at sea Following the sale of one vessel in mid-2002, the team now comprises nine members, including two boat captains, two machine captains, and five boat workers.
Moreover, there are many communities in the company such as cell of the party, trade- union and the youth corps.
(According to the First Reporting Document of Annual Shareholder Congress of LienThanh Seafood Processing Joint Stock Company).
Administrative Department of Lien Thanh Seafood Processing Joint
At Lien Thanh Seafood Processing Joint Stock Company, the administrative department plays a dual role, encompassing both administrative management and human resource management The administrative management function focuses on handling business documentation, assigning tasks to employees, executing the director's directives, and establishing internal regulations In contrast, the human resource management function is dedicated to personnel oversight, including performance supervision, employee evaluations, recruitment, and the development of training programs Ultimately, the primary goal of human resource management is to cultivate a team of skilled and dedicated employees committed to the long-term success of the company.
According to Lien Thanh Company's file in 2004, its administrative department has these following principal functions:
• Setting plans, supplying needed human resource for the company's personnel need.
The administrative department is responsible for establishing, maintaining, and controlling training and development programs that enhance employees' professional skills, in alignment with the company's policies and statutes, while coordinating effectively with other departments.
• After realizing out these training and development programs, this department and other divisions support each other to evaluate the obtained achievements.
• Following to the appointment of the board of directors, internal work force have to regularly create, maintain, and develop a stable group of skillful and professional employees.
• Executing policies of the company and the government related to human resource, salary, insurance, welfare and other policies.
• Establishing human resource policies as well as disseminating and supervising the obedience of all employees toward the firm's statutes and labor oriented policies.
• Dealing with administrative and legal procedures related to laborers to ensure that these formalities must be realized out seriously relies on the firm's regulations.
• Supporting the approved specimen related to human resource management for all department to apply consistently to the whole company.
• Filing and updating necessary employees' information, human resource documents to ensure that these files are easily used, corrected, and referred when needed.
• Setting up and maintaining good relationships with agencies, individuals and organizations from outside the company so that the firm can be easily supported required labor force.
Despite its relatively small size, Lien Thanh Seafood Processing Joint Stock Company prioritizes effective human resource management, leading to high employee satisfaction and a motivated workforce dedicated to the company's success The strong collaboration among departments and the commitment of directors, managers, and administrative staff have contributed to the company's sustained achievements This success highlights the importance of the company's human resource management policies, particularly in areas such as recruitment, selection, and performance appraisal However, this paper will specifically focus on the company's performance appraisal process.
Organizational Chart
Lien Thanh Seafood Processing Joint Stock Company
(710 -712 Ham Tu Street, District 5, HCM City - Telephone: 8551650)
ADMINISTRATIVE - FINANCIAL- PRODUCTION-ACCOUNTING BUSINESS-
BORUNION ORGANIZATION ACCOUNTING AND PRODUCT OUALITY MARKETING
SECTION DEPARTMENT CONTROLL DEPARTMENT DEPARMENT
FACTORY I FACTORY 3 FACTORY 4 FACTORY 5 PRODUCTION STATION
SOME SUGGESSTIONS TO IMPROVE THE PROCESS OF EMPLOYEES' PERORMANCE APPRAISAL IN LIEN THANH SEAFOOD PROCESSING JOINT STOCK COMPANY
::jlJ Current performance appraisal process of Lien Thanh Seafood Processing Joint Stock Company.
The current performance appraisal process at Lien Thanh Seafood Processing Joint Stock Company has notable strengths and weaknesses, which warrant a thorough evaluation Similarly, preliminary assessments of the performance appraisal process at Hung Thinh Fish Sauce Company, Ltd reveal areas for improvement To enhance the effectiveness of employee performance evaluations at Lien Thanh Seafood Processing, several strategic suggestions can be implemented.
Some suggestions to improve the process of employees' performance
Current performance appraisal of Lien Thanh Seafood Processing Joint
The performance appraisal process varies significantly between large and small to medium-sized organizations Large companies implement systematic evaluation methods to align employee performance with overall organizational goals, investing heavily in comprehensive appraisal systems to maximize profits through effective people management In contrast, smaller companies often conduct simple performance appraisals without specific evaluation methods, primarily focusing on ensuring compliance with labor laws and employee rights, which may limit their efforts to enhance product quality Lien Thanh Seafood Processing Joint Stock Company exemplifies this trend.
• Performance appraisal in Lien Thanh Seafood Processing Joint Stock Company is carried out based mainly on the rater's sensibility.
Currently, Lien Thanh Company conducts performance appraisals primarily based on subjective assessments, drawing from the raters' sensitivity, experience, and understanding of each employee's capabilities, rather than utilizing established documents or formal appraisal methods previously outlined in this graduation paper.
• Performance appraisal is carried out based on employees' work seniority and some required job- related criteria.
When evaluating employee performance, administrative managers focus on personal and occupational morality, competence, and interpersonal relationships Employees who demonstrate a commitment to the company's success, adhere to internal regulations, and maintain positive relationships with colleagues are more likely to receive promotions or pay increases.
Ms Nguyen Thi Xuan Kim, the chief accountant at the company, has dedicated over fourteen years to her role, demonstrating exceptional job performance and a strong commitment to company regulations Her dedication and positive attitude have led to her promotion, resulting in a significant salary increase from VND 1,200,000 at the start of her career to VND 5,000,000 in her current position.
According to the company's regulations, the time for one employee to get a higher standard of salary is as follow:
Toward employees with university, higher university education or employees with job- seniority, they will get a pay increase after two or three years of working devotedly for the company's objectives.
Toward employees with college education or middle level, they will receive a pay raise after four or five years serving for the company.
The company will conduct professional skill examinations for factory workers and employees at or below the middle level to improve their job-specific expertise Workers who do not pass these examinations will be required to participate in subsequent training sessions, which are held regularly by company leadership.
In short, because of the standardization in the company's quality of products,employees must try their best to get better results under the help of other colleagues.
Learning the ways to produce high quality products as well as increasing job - productivity is employees' obligation.
• Performance appraisal is carried out based on the State's regulations.
Human resource managers must assess employee salary increases in compliance with state labor laws, utilizing key documents such as the State's Salary Hierarchy System and the 1999 Instructions for Salary Grade Increases within Enterprises Additionally, they refer to Circular 04/1998 from the Ministry of Social Casualty and Labor, which outlines the standards for salary increments.
Lien Thanh Company has determined the salary rates for Mr Vo Van Nhieu, a sailor, and Mr Tran Thanh Binh, a worker at Factory 5, in accordance with the State's Salary Hierarchy System and its Salary Coefficient Table.
• Factorv's directors, office chief or deputy chief of bureau, administrative managers and peer are responsible for employees' evaluation.
Factory directors oversee and assess the performance of factory employees, ensuring efficient production processes They monitor daily tasks and provide evaluations to enhance productivity In office settings, the office chief or deputy chief is responsible for supervising and evaluating the effectiveness of office staff.
Team members serve as valuable evaluators due to their extensive collaboration, allowing them to recognize each other's strengths and weaknesses This insight enables them to recommend high-performing colleagues while identifying those who may exhibit laziness or tardiness in their work.
Employee performance evaluations are gathered from factory directors and peers, which are then reviewed by administrative managers for accuracy If an employee demonstrates strong work ethic and competence, this information is taken into account during the appraisal process.
PAGE 38 performs the job well, bonus or a pay increase will become a very close chance for them to achieve Certainly, these rewards must be based on the Standards of Increasing Salary in the Circular number 4/1998 of the Ministry of Social Casualty and Labor. Decisions for increasing salary have been carried out under a typed text that is called:
"Decision of Increasing Salary" and endorsed by the company's director.
At Lien Thanh Company, self-appraisal is a key aspect of employee responsibility, particularly for newcomers After one or two months in their roles, new employees assess their own performance in completing assigned tasks If they feel unable to meet job expectations, they often choose to resign voluntarily.
In 2004, after three months in their sales roles, Mr Nguyen Hoai Dong and Mr Quach Van Hung from the Marketing Department realized they were struggling to meet their sales targets Faced with numerous challenges in finding sufficient outlets to sell the required quantity of products within a month, they decided to resign from their positions.
• Taking good cares of employees who have to face job - drawbacks or frequently produce low standard performances.
During employee evaluations, administrative managers prioritize the well-being of those facing personal challenges or exhibiting poor performance They provide support by encouraging unhealthy employees to seek medical attention and facilitating access to medical insurance through trade union organizations If employees consistently show signs of job-related difficulties, human resource managers engage in discussions to uncover the underlying issues Once these challenges are understood, managers guide employees on overcoming obstacles and implement effective strategies to help them improve their performance.
Company leaders and colleagues actively support underperforming employees by providing resources and assistance to improve their results As a result, these employees have the opportunity to achieve productivity levels comparable to their peers, allowing them to qualify for the same pay raises and bonuses as their colleagues.
Strengths and Weaknesses of the current performance appraisal
The performance appraisal system at Lien Thanh Seafood Processing Joint Stock Company is deemed effective due to its reliance on job-related criteria, clear performance expectations, standardized processes, and trained appraisers Continuous open communication and a structured review process contribute to a fair and reasonable evaluation, leading to high employee satisfaction and consistent annual profits for the company.
At Lien Thanh Company, performance appraisals are conducted based on pre-established job-related criteria set by the factory's directors, enabling employees to clearly understand their tasks and responsibilities Employees who successfully meet these criteria are rated as "good" during assessment cycles Additionally, those who consistently demonstrate outstanding performance over a specified period may receive a pay increase in accordance with state regulations.
With reference to the company's Decision ofIncreasing Salary in 2004, Mr Vo Van Nhieu and Mr Tran Thanh Binh deserved to enjoy a pay increase.
Mr Nhieu, a sailor at the company, will receive a pay increase effective October 1, 2004, moving from salary rank 2/4 with a coefficient of 1.98 to rank 3/4 with a coefficient of 2.38 Similarly, Mr Binh, a worker in factory 5, will see his salary increase from June 1, 2004, transitioning from rank 3/6 with a coefficient of 1.70 to rank 4/6 with a coefficient of 2.01 Both employees have demonstrated excellence by meeting four key job-related criteria: successfully completing tasks assigned by their supervisors, having a long tenure with the company, adhering to internal regulations and discipline, and fostering positive relationships with colleagues.
Lien Thanh company managers understand employees' expectations regarding performance appraisal results, leading to transparent communication about the evaluation process and outcomes This openness fulfills employees' desire to know the results of their hard work over time.
In accordance with Article 17 of the Labor Law Code and Decree number 39/2003/ND-CP dated April 18, 2003, an announcement has been prepared and shared with all staff This document outlines employee salary rates, providing essential information on how to achieve a higher salary standard and the necessary performance criteria to qualify for bonuses.
Captain Phan Van Nghiep of vessel OIlVC commended Mr Nhieu's outstanding performance in a written statement, which was submitted to the board of directors and the technical-administrative department for review Subsequently, the appraisal results regarding Mr Nhieu from his captain were communicated to the entire team.
PAGE 42 staff Consequently, Mr Nhieu would certainly proud of his working achievements I strongly believe that Mr Nhieu will try his best to make more efforts in work to get another pay increases in the coming years.
• Standardization: All employees within the company have been appraised equally depend upon specific kinds of job, the same standardized criteria and the same evaluation methods under the same supervisors.
Lien Thanh Company's administrative managers are skilled appraisers with extensive experience in conducting valid and reliable performance evaluations They possess a deep understanding of each employee's capabilities and are well-acquainted with their daily performance, as they regularly engage in discussions about the strengths and challenges faced by employees in their roles.
Continuous open communication is essential for effective performance appraisal, as it allows employees to identify their strengths and weaknesses By providing consistent feedback, human resource managers can assist employees in addressing challenges and enhancing their skills, ultimately fostering professional growth and development.
At Lien Thanh Company, performance reviews are conducted regularly to assess the effectiveness of various appraisal methods Managers and factory directors meticulously evaluate appraisal criteria to ensure their relevance to specific job roles Additionally, decisions regarding rewards, promotions, demotions, transfers, training, and development are periodically re-evaluated to align with the company's salary increase standards and comply with State Labor Laws.
Due process at Lien Thanh Seafood Processing Joint Stock Company allows employees to address concerns regarding performance appraisals Although there is no specific timeframe for lodging complaints about perceived unfair evaluations, employees are encouraged to directly communicate any discrepancies in appraisal results to the factory directors or human resource managers, highlighting their actual work competence.
Currently, decisions regarding salary increases, employee allowances, and contract terminations are formalized in accordance with the State's Labor Law These procedures are essential for ensuring that all employees enjoy equal rights and benefits during their employment and upon departure Consequently, the evaluation standards upheld by both the company and state regulations positively influence employee job satisfaction.
At Lien Thanh Company, enhancing employee performance is a key focus of their appraisal methods Managers play a crucial role in identifying and removing obstacles that hinder employee growth For underperformers, they first investigate the root causes of their challenges and then provide guidance on overcoming these difficulties, creating opportunities for improvement In contrast, high performers receive special attention, including tailored training and development programs to further enhance their skills for more challenging roles.
Lien Thanh Company has achieved significant success in its trading and production activities, largely due to its effective performance appraisal process The brand "Lien Thanh fish sauce" is well-known among Vietnamese consumers, and this successful appraisal system contributes to high employee satisfaction and job contentment, leading to minimal complaints about performance results.
All decisions regarding employee transfers, promotions, or demotions are based on a fair assessment of individual potential, ability, and talent This equitable performance appraisal reflects the unity and enthusiasm of the entire staff Currently, the company employs over one hundred individuals, with an average of twenty employees receiving pay increases each year, a number that fluctuates based on each employee's skills and job performance.
According to statistic, in the year 2002 there was 38 employees obtained a pay raise, in
2003 there was 8 employees, in 2004 there was 23 employees and in the first quarter of 2005 there was 4 employees obtained a pay raise.
NUMBER OF EMPLOYEES RECEIVED PAY INCREASE
Source: Lien Thanh Company's file in 2004
Some suggestions to improve the process of employees' performance appraisal /
After evaluating the performance appraisal methods of Hung Thinh Fish Sauce Company, Ltd, it is evident that they lack unique evaluation techniques when compared to Lien Thanh Company While Lien Thanh's appraisal methods are perceived as superior, they still seek to improve their own processes to ensure fairness and effectiveness Continuous improvement is essential for success in the competitive market Therefore, Lien Thanh Company's administrative managers must focus on enhancing their employee performance appraisal processes, taking into account recommendations for more effective management.
• Firstly is the responsibility for appraisal.
Performance appraisals for junior-level employees should rely on insights and feedback from immediate supervisors and peers In contrast, evaluations for senior-level employees, including factory directors, supervisors, and managers, should incorporate feedback from subordinates as well as self-appraisal.
Subordinates spend significant time working under their boss's supervision, gaining insights into their problem-solving abilities, adherence to company regulations, and relationships with other employees A fair, polite, and friendly boss earns respect from subordinates, while a subjective and impolite leader faces opposition and grievances Consequently, subordinates' evaluations of their boss's capabilities play a crucial role in the accuracy of performance appraisals.
Self-appraisal is essential for senior-level employees to identify their strengths and weaknesses, enabling them to enhance their performance Managers must assess their work to discover areas for improvement and build on their strengths, ultimately gaining respect and credibility from their subordinates This process demands a strong sense of self-awareness and is particularly beneficial for individuals who are willing to acknowledge their shortcomings and actively seek solutions to address them.
• Second is the method of performance appraisal.
To ensure a fair and accurate assessment of employee performance at Lien Thanh Company, it is essential to establish systematic evaluation methods In addition to appraisals based on job analysis and relevant criteria, the company should incorporate diverse performance appraisal techniques such as rating scales, essays, work standards, and ranking systems By choosing the most appropriate methods tailored to the company's current situation and scale, Lien Thanh Company can reap significant benefits from these evaluation strategies.
These methods are useful in building a standardized job-foundation for employees to follow and are logical evaluation criteria for raters when conducting any employees' performance evaluation.
Based on this standardized job- foundation, employees' performance results are ensured as fair and non- discriminatory.
Performance appraisal methods enable companies to assess each employee's true work capabilities, allowing for a clear comparison of individual performance levels.
These methods can also help the company discover some excellent employees who have specialized skills and talents with the willingness of frequently producing outstanding work- outcomes.
• Thirdly, the company's performance appraisal should not be carried out mainly through the rater's sensibility and experience It should be conducted in the combination of three following factors:
It should be carried out based on specific documents or concrete patterns of evaluation that talking about standards of appraisal.
It should be relied on the combination of job- requirements and the raters' experience, skill, and knowledge of each employee's work competence.
The administrative department must designate a human resource manager focused on addressing unfair evaluation outcomes This individual is responsible for safeguarding employees' rights and benefits during performance assessments Their primary role is to ensure alignment and coherence between employees' actual work capabilities and the performance results they receive.
Administrative managers must establish a credible and effective performance appraisal system to emphasize its significance and motivate employee productivity within the organization.
• Fourthly, Lien Thanh Company should establish computerized data under the name
Tracking employee job performance is essential for recognizing high achievers and identifying areas for improvement This data serves as a valuable resource for companies to nurture talent through specialized training and development programs, while also providing motivation for underperformers By comparing current performance with past results, organizations can tailor training methods to meet the specific needs of each employee Ultimately, these strategies aim to enhance product quality and foster a more enthusiastic work environment.
Lien Thanh Seafood Processing Joint Stock Company should adopt a more flexible approach to employee bonuses beyond standard pay increases mandated by state regulations By incentivizing job enthusiasm with performance-based bonuses, particularly for those who excel in professional skill examinations, the company can significantly enhance employee motivation and job performance Recognizing and rewarding skillful employees through specialized training and development programs is essential for nurturing their talents Additionally, establishing clear pathways for promotion will empower potential employees and reinforce their value within the organization Ultimately, prioritizing the rights and benefits of employees is crucial, as they represent the backbone of the company's success.
Lien Thanh Seafood Processing Joint Stock Company can enhance employee motivation and product quality by implementing an effective and dynamic performance appraisal process By adopting the suggested improvements to performance evaluation, the company is likely to better meet employee expectations, boost work enthusiasm, and achieve significant profits in its trading and production activities.
Effective human resource management is essential for any society or organization to thrive, as it focuses on optimizing the potential of its workforce Regardless of financial wealth, advanced technology, or innovative solutions, a company's success hinges on its ability to manage its human resources effectively Performance appraisal plays a critical role in this process; organizations aiming for continuous improvement must prioritize accurate evaluations of employee skills and talents Proper assessments lead to enhanced performance, while inaccurate evaluations can hinder success.
This study analyzes the performance appraisal process at Lien Thanh Seafood Processing Joint Stock Company, beginning with an overview of human resource management It details the performance appraisal methods used at Lien Thanh and introduces the company itself The final chapter evaluates current evaluation methods at Lien Thanh and provides preliminary assessments from Hung Thinh Fish Sauce Company LTD Additionally, the study offers proposals to enhance the effectiveness of employee performance appraisals at Lien Thanh Company.
The study indicates that while Lien Thanh Company's performance appraisal system has some weaknesses, it is generally viewed as a fair and effective process that satisfies employees To enhance its effectiveness, the company should implement corrective measures, including redefining appraisal responsibilities and developing specific assessment methods.
PAGE 59 carrying out the evaluation based on specific texts and on the rater's experience, skill and knowledge of each employee's work ability, restoring data of employees' job achievements and offering more flexible bonuses.