Case Study Assignment
Student’s Name
Institution Affiliation
Gentleman’s three is a case study that contemplates a performance appraisal system at Arrow Electronics Company, which is based at Circale Corporation. After the corporation made two acquisitions after consulting Michael Milanese, Nils Ekdahl, who is in charge of the human resource, was assigned with the CEO’s directives reduction of $20 million within four months from the payroll. The CFO of the company Anita Fierst opposed the duplication process after the new acquisitions were secured and suggested that the company should have begun with the departmental cooperation in order to attain combined productivity. She argued that the number in the company was more crucial as long as the employees cooperate. However, Ekdahl’s suggestion was not only to have the numbers but also to have employees placed in their right positions (Hall & Wasynczuk, 2011). The new system of the company was designed to lower some after merge decisions meant to reduce the employee’s payroll, and its main goal was to place each person in the best position.
Nils Ekdahl came up with a formula for evaluating the employees based on 5 points and was to be submitted to him by the managers. Ekdahl was not pleased by the managers’ first evaluation because almost every employee was above average, which was not his expectation. The VP ordered the managers to do a second evaluation, which would reflect his expectation, and when the results were out, most of the employees had three-point with only a few with two points. The results were neither pleasing to the VP because the managers manipulated the result to meet his expectations.A business composed of many employees should employ communication as a key tool because it is a major determinant of success or failure. The VP at Circale Company did not put in place the communication skills because he never informed the employees of the assessment they were to take up. The VP failed to motivate both the employees and the managers, which is a negative feature of any business. Although Circale Company is a global business entity, it is faced with the challenge of not involving employees in discussions of the new performance system.
HBR case study: The Gentleman’s Three holds up performance based on individual compensation using an analysis. It is connected to the person-based and job structures which were discussed in chapter 3 and the four policy choices in the contribution of employees. Nils Ekdahl states, “but as you know, it is not just about the number. It’s also about making sure we have the right people in the right positions”. Meaning the right person acquires the correct job match with the illustrated policy on how management should ensure that employees receive the right pay when they acquire the right achievement.
From the case study titled “The Gentleman’s Three,” there are concepts that are related to chapters 1-5. The job analysis concept studied in chapter 4 entails gathering information about a particular job, and from the case study, Milanese had started visiting other companies gathering information and studying best practices in the area of performance review. Another concept is the equity theory discussed in chapter 3, which entails fairness. Employees usually compare their outcome ratio to that of others. From the case study, the equity theory concept is evident when the top officials struggled together to develop a system by which each of Circale’s more than 3000 nonsales of employees would be explicitly compared with colleagues ( salespeople continued to be evaluated depending on their sales number) (Hall & Wasynczuk, 2011).
Job evaluation methods used by different companies are another concept that was covered in chapter 5, which involves three methods; job ranking, job classification, and point method. In the case study, job ranking is evident where the managers ranked the employees between 1-5 points where each employee had to fall within1-5.
The total reward is another concept that involves total compensation and relational returns, which was discussed in chapter 1. From the case study, leaders should reward managers who have the most constructive conversations about performance. Additionally, supervisors who attain a lot from their employees should be awarded financially, or their roles can be expanded so that they can be mentors. Through the rewarding success of an employee, other employees are given an incentive to follow the example of those who acquired an honor.
Divisions may arise due to poor communication between or among departments in an organization among the employees. This can lead to low-performance levels due to a lack of teamwork and motivation. Every employee should be granted an opportunity to utter their opinions on decisions made by the company. A large number of managers in many companies are always afraid of being honest in their work while rating their fellow employees because they don’t want to be viewed as bad people and thus end up giving wrong information about the employees. It is a major problem, and managers should always have in mind that the future of a company lies in the hands of employees, and giving wrong information may affect the company adversely in the near future. It is also important for any organization leadership to embrace ways of encouraging and implementing cooperation of all departments so as to improve and attain efficiency. Circale Corporation is experiencing a difficult time implementing the new strategy in the case study since there are poor communication and a lot of conflicts and misunderstandings among the employees.
This case study emphasizes the importance of performing reviews on performance because they are very crucial, and their Centre of attention is providing employees the results for the purpose of analyzing their performance so that they can know how to improve them. Low performance of an employee can give rise to a new challenge for an individual, as Fierst stated, to start trying new approaches to increase the score. Another method evident in the case study is that the company uses its managers to do reviews repeatedly to acquire their desired results.
References
Hall, B., & Wasynczuk, A. (2011). The Gentleman’s’ Three’.
Ehrenfeld, T., Coil, M., Berwick, D., Nyberg, T., & Beer, M. (1992). The case of the unpopular pay plan. Harvard business review, 70(1), 14-8.