HRM2602 - Human Resource Maintenance and Retention (HRM2602)
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Assessment 04
Human Resource Maintenance and Retention
HRM2602
, Question 1
1.1
The partiality displayed by certain managers indicates that the performance issues at Isivikelo Pty (LTD)
are the result of a lack of objectivity in the performance appraisal process. Workers want to be handled
impartially and fairly. Unfairness-related feelings can lead to low morale, absenteeism, employee
turnover, and grievances. Management must apply discipline consistently and without partiality or
bias in order to minimise these issues (Warnich et al., 2022). Due to this favouritism, some employees
consistently receive high ratings despite their actual performance, which demotivates the workforce,
especially for those who consistently receive lower rankings (Armstrong & Taylor, 2020). The subjective
nature of the appraisal process erodes the legitimacy and equity of the system, leading to discontent
and a lack of faith in the management. This, in turn, impacts overall employee morale and productivity,
as employees feel that their efforts are not being evaluated on a fair and equal basis (Armstrong &
Taylor, 2020). To address these issues, it is crucial for the company to implement a more transparent
and equitable performance management system that aligns with the organization’s goals and allows
for fair recognition of all employees’ contributions.
1.2
The newly proposed appraisal method that Isivikelo Pty (LTD) wants to use is a goal-setting approach.
This method involves managers and employees working together to set specific, measurable,
achievable, relevant, and time-bound (SMART) goals, which align with the organizational objectives.
To overcome the current performance problems, techniques such as Management by Objectives
(MBO) can be utilized. MBO is a systematic and organized approach that allows management and
employees to focus on achievable goals and to attain the best possible results from available resources.
It involves setting clear, objective performance standards and benchmarks, and providing regular
feedback, ensuring that employees’ efforts are aligned with the company’s strategic aims (Locke &
Latham, 2002). Additionally, implementing 360-degree feedback can help address favouritism by
incorporating multiple perspectives into the appraisal process, including self-assessment, peer review,
and subordinate feedback, thus providing a more balanced and comprehensive evaluation of
performance (Bracken, Timmreck, & Church, 2001; Warnich et al., 2022).
1.3
Based on the scenario provided, the newly proposed appraisal method at Isivikelo Pty (LTD) appears
to be a goal-setting approach, which emphasizes direct and mutual agreement on objectives between
managers and employees. This method is likely to positively influence the design of Training and
Development (T&D) initiatives by aligning them with the specific goals agreed upon. The T&D
initiatives can be tailored to address the competencies and skills required to achieve these goals, such
as problem-solving, communication, and tactical training for protection services. Techniques such
as SMART goal setting (Specific, Measurable, Achievable, Relevant, Time-bound) and continuous
feedback mechanisms can be employed to ensure that performance problems related to favoritism
and undervaluation of certain jobs are mitigated (Wärnich et al., 2022). By focusing on the
development of competencies that directly contribute to organizational goals, employees are likely to
feel more valued and motivated, leading to a reduction in workplace issues such as substance abuse.
This approach also supports a more equitable job valuation system, recognizing the importance of
specialized knowledge and skills across different divisions.
1.4
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