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Is a "Satisfactory" Rating Satisfactory?

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Is a "Satisfactory" Rating Satisfactory?
Andrew Hilton, employed by Hamilton Chemicals as an electrical engineer for the past 26 years, has recently been promoted to management. His new position is engineering design services manager. He has 20 engineers from all disciplines reporting to him.
The unit has not been performing well. Morale and performance are at all-time low. During the past two years, the unit’s productivity has fallen by 25 percent, absenteeism has risen by 10 percent, and job related injuries have risen by 12%.
Andrew suspects that the problem have been caused by the misuse of the performance appraisal system on the part of the previous manager, Ted Simpson. The workers are rated annually on a five-point graphic rating scale on the following job dimensions:
1. 1. Safety
2. 2. Ability to work with others
3. 3. Contribution to the company’s long term growth
4. 4. Contributions to productivity
5. 5. Cost control
6. 6. Attendance
During the past two years, Simpson gave each employee a “satisfactory” (3) rating on all six dimensions. Based on what he has observed during his first two months as manager. Andrew believes those ratings are erroneous. Six engineers have quickly surfaced as outstanding performers and three are clearly unsatisfactory.
1. Do you agree or disagree with Andrew that the performance appraisals might be contributing to the problem? Explain.
- Yes I agree with Andrew. The performance appraisal is conducted to know how well the employees are working on a day to day basis. And base on this, we would know the strengths and weaknesses each employee possesses. It is very important to take this seriously because this can affect the employee’s way of working in the company. If the employees are working outstandingly we should regard their efforts and give them a well deserve praise and if not we should give them the proper rate they deserve. The performance appraisal reflects the employee’s standing in the company and any misuse of this can lead

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