Is this really an appraisal?

As Helen Wu completes the staff appraisal forms for her staff she thinks what a waste of time the whole process is.

Helen is the assistant manager of a small company that imports specialty food items. The head office is comprised of 7 people, including her. It is the company's practice to tie employees' salary increases and bonuses to the staff appraisal delivered by Helen. Employees must achieve at least 85% of the potential score to receive the maximum salary increase and bonus. Helen rates all of her staff between 85% and 100%.

The company pays relatively low salaries and Helen knows that regular salary increases and bonuses are necessary to keep staff with the company. As a result Helen always gives her staff a high score in all categories even if their performance is not really of a high standard.

She has confided in a friend that several 2 of her employees are only average performers and 1 staff member is actually well below average.

Questions

1. What potential benefits are being lost by Helen Wu's approach to staff appraisal from:

a. The company's point of view?

b. Helen's point of view?

c. The individual employee's point of view?

2. What would you suggest to achieve a more effective staff appraisal system?

3. What difficulties might you experience in trying to implement a more effective system?