Egan's Clothiers Term Paper Example | Topics and Well Written Essays - 1750 words

Egan's Clothiers - Term Paper Example This made the employees want to sell as much items as possible in order to be ranked at a higher level of productivity. This appraisal system did not perform at it best though, the sales of the firm increased. At one time, the store manager acknowledges that the performance of the employees got worse because they did not respect customers. They would harass them in order to make more sales. Performance appraisal is one of the major tools that are used to improve the productivity of workers at their place of their work and to be effective. In order for an organization to attain its stipulated goals, appropriate performance appraisal tools should be put in place in order to increase workers performance. Most organizations perform below the required level, making very little sales per day since their workers are not encouraged to perform better and to work harder. If an organization does not invest in to the welfare of the workers, problems are bound to happen such as low morale and pro ductivity and low level of commitment at work. Attractive systems of appraisal are set up in order to motivate workers to work harder and recognized through promotions and rewards (Selden & Sowa, 2011). For instance, Egan Clothier uses a promotion strategy that is based on the productivity of the workers. The workers are encouraged to sell as much as possible. The retailers made more sales as compared to its competitors because the Egan’s Clothiers hired employees based on their past experiences. The employees would then undergo through a retail selling skills training and customers services training. This put the Clothier ahead of its competitors who hired inexperienced students from high schools (Snell & Bohlander, 2011). Although, the training program cost the Egan’s approximately 750, 000 dollars, the management thinks it was worth the cost because the workers would perform at their best making more sales and hence more revenue in the long run. On the other hand, t he Egan’s associates rewarding of the workers based on their performance. Their on-going sales would be recorded and used to categorize the workers. The firm would then use the categories to promote the workers within the firm. This activity ensured that the workers sold as many items as possible hence increasing the overall sales turn out of the form. This appraisal system was ineffective because the workers would do everything possible to hit the set individual targets. They would even beat up their customers in order to sell. Are there other performance effects directly and/or indirectly caused by the appraisal system? Appraisal system used by Egan Clothiers had several effects, both directly and indirectly. For instance, the system is not effective in reducing cost of labor instead the worker’s productivity is worsening. According to Paul Kelly, the store manager, the workers are beating up the customers in order to make a sale. Peter Drucker, on the other hand say s that establishing effective decision making is important at every level of the employees. Egan failed to acknowledge the satisfaction of the workers based on the appraisal system used. Egan Clothiers only took the first of improving performance of the workers and neglecting other aspects that affected the performance of the organization. An organization should use successful criteria of evaluation. The criteria based on the performance o