Running head: ENG 315 ASSIGNMENT 2.3 1
Performance Appraisal Method
Name
Institution
Course
Date
Performance Appraisal Method
Table of content
Executive summary.........................................................................................................3
Introduction......................................................................................................................3
Problem statement............................................................................................................3
Summary of report...........................................................................................................3
Main body..........................................................................................................................4
Description of possible solution........................................................................................4
MBO...................................................................................................................................4
Behavioural checklist.........................................................................................................4
Criteria for assessment of alternatives.............................................................................4
Research method................................................................................................................6
Recommendation................................................................................................................7
References...........................................................................................................................8
Executive summary
This report aims to identify the issues of sales decline in organization. It is identified
that leaving of experienced sales people of organization has resulted in the decline of sales.

The proposed methods are MBO and behavioural checklist. With questionnaire and
observation methods, it is revealed that employees need a good leadership and participative
management with improvement in constructive feedback by managers. So the MBO method
of performance appraisal is suggested to bring the desired results in the organization.
Introduction
Problem statement
The organization is a large manufacturer of the fast moving consumer goods and
company is having a pan world network of sales partner. The problem company faces is the
continuous decline of sales in a particular region. Root cause that is identified for the sales
decline is the attrition of old and experienced employees. This problems becomes more
severe due to no distribution network of company and company relies on only front line
sales. There is a strong supply chain for the direct delivery of the product but it is weakened
due to high turnover rate of old and experienced employees of the company. The company
also does not advertise products and brand building efforts lies on only front line sales force.
Experienced sales people are less than 75 percent in the sales force and in the last 10 years,
company has experienced lowest sales. There is a need for the management intervention to
address this problem.
The summary of the report
This report has identified root cause for declining the sales and that is attrition of sales
force. There are various alternatives considered for addressing this problem. One is the
assessment of the performance appraisal of the sales executive and creation of a perfect
appraisal system. There two alternatives considered. One is the implementation of the holistic
human resource policy and second is the implementation of a lucrative incentive scheme.
There are many criteria considered such as acceptance among employee, cost of
implementation, speed of implementation, flexibility, and return on investment. The research
methodology has been developed that has a structured questionnaire. This questionnaire is
answered by those employees who have left the company not earlier than one year before. It
is revealed that a transparent performance appraisal system is needed to retain the sales
executive in the organization. This report will cover the performance appraisal alternatives
evaluation and implementation of one alternative. This report also covers the criteria to select

the best alternative. This report limitation is that it does not use any mathematical model for
performance evaluation system.
Main body
Description of possible solution
MBO
Management by objective is the modern method that can be used to improve the sale
of organization. This technique was used by the management theorists Peter Drucker in 1950.
MBO is based on this philosophy that the manager and employee should agree upon the
obtainable objectives. As there is performance decline by the existing work force this
performance appraisal system can help them to understand what they need to improve
performance. This method is result oriented and proactive and encourages participation at all
levels in organization (Kreitner, 2008). Generally the issue is not related here with front line
sales force but also this issue must be dealt at top and middle level as well to improve their
performance. This process considers of forming a clear and concise statement for the sales
force and also takes in to account the development of the realistic actions plan by getting
feedback. It also ensured that systematic monitoring must be done and measurement of
performance and achievement must take place ( Shukla, 2009). It helps to take corrective
actions for achieving desired objectives. This process facilitates employees’ decision making
in setting the sales goals and in turn achieving the organizational objectives. The basic
principle of unity of management action, result to be obtained at a defined time scale,
participation and accountability for setting the goals and achieving them, and linking the
progress effort to individual can help organization to address the retention issue and decline
in sale.
Behavioural checklist
Another alternative that can be considered for the sales force performance
improvement is the behavioural checklist (Elan, 2014). This method is considered useful
because the employee performance is assessed without comparison and it also considers the
difference in behaviour to the type of jobs been assessed.
Criteria for assessment of alternatives
1. Behaviour

The behaviour of sales people must be determined to assess the performance. As the
front line sales people appearance is associated with their behavioural attitude to
increase sales it is imperative to use this criterion to assess the effectiveness of two
alternatives proposed. Motivational and morale factors of the sales force are important
to retain them and this criterion can help organization to take corrective actions for
achieving desired objectives of organization. The behavioural aspects of the sales
force demands then to be pleasant and friendly before the customers and if they do not
inculcate these values, they cannot sell the products so it is mandatory to analyze the
behaviour and behaviour factor can be taken in to consideration to assess the
effectiveness of two alternatives.
2. Knowledge development
The knowledge and information is very much important for sales force to take timely
actions and predict trends and changes in market place. The two alternatives will be
assessed on this criterion to understand that which alternative will be more effective
in knowledge creation and skills development. As today contemporary organizations
are focussing more on knowledge management because knowledge is a invaluable
asset to keep them ahead of competitors and knowledge of sales force regarding the
competitors products, trends in buying behaviour of customers and their preferences,
economy and other factors are very much important, this criterion must be assessed to
understand the effectiveness of two proposed alternatives.
3. Team work
Today organizations are becoming more flat and lean in structure and they are
promoting the team work features by delegation of power and participative
management, it will be assessed that which of two alternative can help to improve
team work skills for the organization.
4. Communication
Communication is a very vital aspect for the organization to achieve success.
Communication in the areas of job assignment and description of role and
responsibility is very important because employees can understand clearly the
expectation of management and they can also share their feelings and perceptions to
management. It should be ascertained that which performance appraisal system
should make the communication reciprocal and pervasive at all levels of organization.
For this purpose, the communication criteria must be assessed.
5. Timely and prompt rectification for errors

This is also very much important to understand the flaws of the performance appraisal
system. As the existing appraisal system of organization is not able to locate the
grievances of employees and could not prevent the high turnover rate of experience
employees, it becomes mandatory that the proposed performance evaluation system
can address this issue effectively and can take corrective action on timely basis to
retain the best employees in the organization.
Research methodology
The research methodology to understand the best alternative for performance appraisal
system has determined to use questionnaire methods and observation methods of employees.
The questionnaire methods has used the open ended questions and structured set of
questionnaire to gain the deep insights about the attitudes and perceptions of employees for
performance appraisals.
The questions of questionnaire are described below
Q1. Whether you need a constructive feedback and did you receive constructive feedback
from your managers?
Answer:
Yes, constructive feedback is essential for personal and professional growth. It provides
employees with insights into their strengths and areas for improvement, allowing them to
refine their skills and enhance their performance. Receiving constructive feedback helps
employees understand how their contributions align with company goals and how they can
contribute more effectively.
If the question refers to whether employees receive constructive feedback from their
managers, this may vary based on the organizational culture and the manager's approach. In
some cases, employees may receive detailed, actionable feedback that helps them improve,
while in other cases, feedback may be vague or infrequent. It’s crucial for organizations to
foster an environment where constructive feedback is a regular and integral part of the
performance appraisal process. This feedback should be specific, timely, and focused on
development, enabling employees to understand how they can enhance their performance
moving forward.

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