Graphic Rating Scale Method, Challenges, Measure Action Taken and Its Effectiveness in Poultry Private Company

HUMAN RESOURCE THESIS

GRAPHIC RATING SCALE METHOD, CHALLENGES, MEASURE ACTIONS TAKEN AND ITS EFFECTIVENESS IN PERFORMANCE APPRAISAL IN POULTRY PRIVATE COMPANY

Nur Hazlizan Binti Sulaiman

1.0        INTRODUCTION

        Poultry industry in Malaysia is very competitive and challenging. In order to meet the demand of consumers, this industry has tremendously growth and successfully exceed the self-sufficient level (SSL). In order to ensure the company with agriculture poultry basis always competitive and move forwards, it is crucial for each employee plays their roles to achieve the objectives or targets set by company. Achievement of each worker can be evaluated by using performance appraisal (PA). In addition, PA also functions for better understanding the abilities of individual; the strengths and weaknesses besides determining salaries or promotion. (Journal to support this statement).

        There are many methods of PA which are Graphic rating scale (GRS), Alternation ranking, Paired comparison, Force distribution, Critical incident, Narrative form, Behaviourally anchored rating scale, Mixed standard scale, Management by objective, Computerised and web-based performance appraisal, Electronic performance monitoring, and Appraisal in practice where each method however has advantages and disadvantages when come to practicing it. Thus, Human Resource Department plays important role in ensuring the issues arising from PA method used can be handled properly and wisely manner by first and foremost to well define the employee’s goals and set the performance standard. Poor PA conduct may portray negative consequences to company and directly impact on business growth at the end of the day.

        Completion of the thesis is by conducting interview with one of Human Resource Department Senior Executive in one of the largest poultry private company in Malaysia. A set of interview questions is emailed prior to interview session which conducted over the phone due to constraint in time and distance aspects. Basically, the interview is focus on PA topic which further elaborate in identifying the PA method (GRS) used by the company, issues or challenge arising while using GRS method and what kind of approaches have been used by Human Resource Department to tackle the issues arising. The impacts of HRD approaches are also further discuss from the point of view of HRD Senior Executive. Data obtained from the interview will be further analyzed with other related academic journals to find the significant.

2.0        ROLES OF EACH POSITIONS UNDER HUMAN RESOURCE DEPARTMENT AND THE ORGANISATION CHART

        Based on the outcome of interview, generally the level of Human Resource Department in this company is divided into two (2) levels which are Human Resource Department in Headquarters and Human Resource Department in each subsidiary’s companies. The following descriptions are the role of each position of Human Resource Department in performance appraisal from the highest to the lowest:

a)        Group Executive Chairman

Plays role in determining the objectives and goals of company, a vision to be achieved by all employees. Responsible to do final decision and approval in performance appraisal for all stage of employee in each subsidiary company. Responsible to conduct performance appraisal on Group Managing Director.

b)        Group Managing Director

Assist Group Executive Chairman further elaborate the objectives and goals of company to be further discuss with Human Resource Department in purpose to set clear performance standard. Support Group Executive Chairman in making decision and approval of employee’s performance appraisal.

c)        Senior Group Manager of Human Resource and Administration

Responsible to tabulate job scope description of each position in company to be used as performance standard in performance appraisal. Verify the outcome of employee’s performance appraisal in the aspects of training needs, and recommendation for promotion or salary increment prior to be highlighted to the top position for final approval by Group Managing Director or Group Executive Chairman.

d)        Manager of Human Resource and Administration Department

Manage Performance Management conducted in fair and equitable appraisal by setting up Guideline of Performance Assessment applicable for all subsidiary companies. Verified the elaboration of each trait or criteria used in performance appraisal from the outcome of discussion in among staff of Human Resource Department before further issued to top management.

e)        Assistant Manager of Human Resource and Administration Department

Ensure the performance appraisal conducted by subsidiary companies follows the Guideline of Performance Assessment. Manage Human Resource staff to keep proper and systematic record of each employee’s performance appraisal for reference when required.

f)        Senior Executive of Human Resource and Administration Department

Responsible to prepare and distribute Memo of Employee Performance Assessment, Employee Performance Assessment and Guideline od Performance Assessment every year on January to all subsidiary companies. Retrieve verified employee performance assessment form from General Manager of each subsidiary companies.

g)        Executive of Human Resource and Administration Department (Subsidiary company)

Support the Human Resource and Administration Department (Headquarters) in conducting performance appraisal every year on January by acting as a medium of communication between headquarter and subsidiary companies via receiving Memo of Employee Performance Assessment, Employee Performance Assessment Form and briefly explain the Guideline of Performance Assessment to Head of Department and General Manager.

h)        General Manager (Subsidiary Company)

Conduct further discussion with Head of Department if necessary. Verify the Performance Appraisal is conducted fairly by ensuring the Head of Department is well understands and follows the Guideline of Performance Assessment.

i)        Head of Department (Subsidiary Company)

Responsible to conduct performance appraisal for staff under his/her department through individual discussion to ensure two ways communication and optimizing feedback for the performance appraisal.

Chart 1.0 shows the Organisation Chart of Human Resource Department responsible in Performance Management of company.

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Headquarters[pic 14][pic 15]

Subsidiaries[pic 16]

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3.0        PERFORMANCE STANDARDS SET BY COMPANY FOR PERFORMANCE APPRAISAL PURPOSE

According to the information obtained from the interview, HRD is responsible to set the performance standard in accordance to the objective, vision and mission of the company in general. The performance standard of each position is further referred to the job scopes that has been set by the HRD which elaborate more details. The outcome of interview has stated that, the performance standards used are set in general for all level regardless in Non-Executive or Executive level. Additional of leadership criteria are included for Executive level such as planning, organizing and setting their own goals, in making decision and solving problem either for short or long terms. For the time being, performance standard based on certain competencies or skills required for particular professional position like veterinarian has not been implemented yet. Currently, this matter has been highlighted to Human Resources and Administration Department and still in discussion process and may be set in the future. Once a clear performance standard has been set, it is the responsibility of Head od Department (HOD) to communicate with his/her subordinates to ensure they are well understanding the company’s target and the expectation from them. Noted that “employees who do not know the policy and procedure are less likely to promptly comply with them” by Mani (2002:147) has shown how significant it is in communicating the standards for both employee and to the appraisers.

Based on Office of Personnel Management of United State has defined, performance standard is a management approved expression of the performance threshold(s), requirement(s), or expectation(s) that must be met to be appraised at a particular level of performance. To ensure the workers can achieve the standard, it is crucial the performance standard set to be objective, measurable, realistic and stated clearly in writing like job scope. According to (Cole, 2007), a number of researches shows that setting performance targets ensure that individual performance goals are aligned to departmental and organizational goals and objectives leading to better employee performance and general organizational effectiveness.