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Performance appraisal system

This principle is a process of assessing whether organizational objectives are met. It would evaluate how the employee’s performance has fared to satisfy the organization (Debrah, et al. , 2003). Evaluation seeks to monitor and improve effectiveness by giving the employee feedback on his/her performance. This process should be carried out at regular intervals and should follow specific protocols to maintain objectivity in the evaluation process.

This concept has its strengths as defined by Caruth & Handlogten, (1997) for it helps the manager to be able to identify individual present performance along with the employee’s future potential. Evaluation also assesses the weaknesses and the accompanying disciplinary actions (Torrington and Taylor, 2005). The third strength is that it can determine which training aspect should be developed for the particular employee. It also increases the communication line between the employer and the employee because of the feedback and evaluation process.

According to Spencer (2004), evaluation is also a way for the organization to assess the role of the manager as well for evaluation and supervision are interdependent because evaluation is a tool for measuring supervision. Moreover, another advantage is that evaluation aims to establish trust among the entire organization because objectivity and fair play are called into this task. Lastly, the evaluation process is a good way of providing employee satisfaction and maturation which will improve the performance in the future. E. 360-degree feedback evaluation:

The emergence of 360-degree feedback systems provides an alternative to traditional appraisal systems that are used by Jetblue Airways (Greller and Jackson, 1998). The 360-degree can be seen as an attempt to improve the process by expanding the information available (Thomas & Bretz, 1994), but limitations and failures specific to 360-degree systems have been noted as well (Antonioni, 1996). The 360-degree feedback process encompasses the creation and execution of employee development plans (Jackson and Greller, 1998).

The HR department of Jetblue Airways have seen 360-degree feedback used in a number of ways, including (1) to achieve business strategy and culture change by clarifying the behaviors that are required to support these initiatives by “re-focusing the workforce to attain changed organizational goals through changing their behavior” (Lepsinger, 1997, p. 19); (2) to enhance team effectiveness by identifying gaps in team skills sets in organizations seeking to implement a team structure (Lepsinger, 1997, p. 20); and (3) as part of human resource management systems.

“Just as individuals use 360 degree feedback to determine their own development needs, organizations can use aggregate reports to create a profile of training and development needs across the company” (Lepsinger, 1997, p. 20). These 360 degrees appraisal systems in Jetblue Airways serve two main purposes. They may assist in the individual’s development, or they may be used administratively to help the organization make decisions (Heneman, 1992). Alternatively, a company may try to have one appraisal system do both jobs.

There seems to be little disagreement as to the appropriateness of 360-degree feedback for development, as it is the most common use for 360-degree (Bracken, 1994; Timmreck, 1995). Sharing data gathered from co-workers and subordinates has been a key element of many training and development programs. F. Identify 4 employee-related factors that are essential in determining financial compensation. Employee compensation and benefits, for Jetblue Airways, constitute a substantial expense that is burdensome but not crushing. However, for some the costs are so great they cannot remain viable without change (Hronsby and Kuratko, 1990).

In others, unless wages and benefits are increased to attract and hold employees, the business cannot grow or survive. Due diligence is reviewed by Jetblue Airways for actual compensation and benefits and causative factors such as competition, affordability, government regulations, customs, employee demands, levels necessary to recruit and retain employees and industry standards. Knowledge of these key factors is particularly important if the investment results in a merger necessitating the integration of operations and work forces.

Jetblue Airways often have a general policy regarding employee compensation that may be written or unwritten, but nevertheless followed. The policy may be to pay superior compensation to employ and retain superior employees, pay substandard rates and expect high turnover, or simply pay rates comparable to those paid in the area. Wage surveys are usually available from industry associations, chambers of commerce and trade groups or can be conducted (Burack, 1986). The primary concerns of Jetblue Airways are whether the compensation philosophy makes good business sense and if management’s and the investor’s approach are compatible.

Wage and benefit cost differentials between the Jetblue Airways and some or all competitors become significant when the cost of the product or service sold is affected to a material degree. Benefit costs have become so large that cost comparisons must include both wages and benefits (Mondy et al, 2005). Since a competitor with a significant labor cost advantage can underprice his competition, the investor’s concern is whether a serious competitive advantage or disadvantage exists. G. Discretionary employee benefits:

The terms of employment contracts of Jetblue Airways vary widely but usually cover compensation, job responsibilities, and provisions for termination, non-competition and confidentiality. In many countries, the government establishes the terms and amounts of separation pay with amounts so large that significant changes in the business are discouraged (Mondy et al, 2005). This potential liability probably will not appear on financial statements but must be considered in any reorganization plans.

Because some separation pay plans are interpreted as contracts, a change of ownership may trigger separation pay benefits even though employees do not actually lose their jobs. If the investor is planning reductions or consolidation of operations, separation pay costs must be included in financial projections. Jetblue Airways also gives vacations and sick leaves benefits, along with this the level of vacations and sick leave benefits, an investor should determine if days not taken in one year can be taken in future years and whether unused days are paid when the employee terminates.

This practice has permitted employees to build huge nest eggs, worked contrary to the purpose of vacations and sick leave and created large, unrecorded employer liabilities (Mondy et al, 2005). If accumulation has been permitted, the records should be reviewed and verified to calculate the liability and avoid controversy with employees.

References

Bowman, James A. & Elliston Frederick A. (1988). Ethics, Government, and Public Policy: A Reference Guide. New York: Greenwood Press. Burack, E. H. (1986).

Corporate, business, and human resource planning practices: Strategic issues and concerns. Organizational Dynamics, 15, 73-87. London: Routledge Butensky, C. F. , & Harari, O. (1983). Models vs. Reality: An analysis of human resource planning systems. Human Resource Planning, 6, 11-17. London: Routledge Caruth, DL & Handlogten, GD (1997). ‘Staffing the contemporary organization’, In Riley, D (ed. ), PDAS 313: Fundamentals of staff development resource book 2, University of New England, Armindale.

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