The problems in appraisal systems can be avoided and minimized due to a great extend. The first factor is to know the problem since understanding the problem will help in gaining insight into the root cause and that will assist in drafting out a solution. In this case it was the database system or introduction of technology which was the problem since the management needs to realize the importance of training and development. The second is to use the right tool to appraise performance and in this case it was dependant on the system which itself was inefficient. The third is to train supervisors since if they are not efficient in their job it will affect the appraisal and the performance of employees. The fourth is to control outside influences like turnover and the way supervisors treat the employees who leave the organization. In this case the HR manager was not bothered with the increasing turnover rate and they believed they could simply hire much more bright individuals and this gave the existing employees the feeling that the company did not care for them. The fifth and the last are to keep a record of employee performance for over a year to also give them a benefit of doubt (Werther & Davis; 2000).
Another important problem to be considered is the flow of communication in the organization which according to the management has been informal whereas, the employees were not being involved in decision making and communication was mostly downwards that aimed at informing and influencing employees to approve and accept the management decisions regardless of their own perceptions and beliefs. In this case the sales are dependant on the representative so communication should be upwards that goes up the hierarchy and seeks to inform plus influence those higher up in the organization’s hierarchy. It should be effective in order to involve and motivate employees to bring more sales to the company. Communication and employee involvement are essential for the company’s success in the long run since these aim to retain employees and motivate them to work efficiently and reap effective results for the organization (Dessler; 2000).
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