When the HR department realizes the fact that performance management across other departments is highly inconsistent, there is a need to create a performance management program, which would be comprehensive to employees and easily monitored by responsible managers. There are numerous performance appraisal programs, and we have to take into account all essential factors to design consistent appraisal and disciplinary action policy. “Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.” (Mohrman et al 2007, p.

32)Performance management programs are extremely valuable to assess the effectiveness and efficiency of employee conduct. They are exceptionally helpful in taking immediate measures to improve employee performance or to terminate employment in case any improvement is impossible. Trying to design the best performance appraisal and disciplinary action policy, several options were considered: the system of annual reviews, the system of quarterly performance surveys, and the appointment of immediate supervisors who would monitor performance of certain departments (employees) and recommend appropriate improvement or disciplinary actions. As company’s management strives towards improving performance across all departments, appointing performance supervisors is the best option: they will conduct quarterly performance reviews and recommend appropriate progressive disciplinary actions.Supervisors as a tool of performance appraisal and evaluation have been chosen for the following reasons. First of all, supervisors are directly responsible for the evaluation of employee performance.

Second, they can monitor the process of evaluation through quarterly performance reviews. Third, on the basis of performance evaluation, supervisors can recommend an appropriate disciplinary action. Fourth, they will personally encourage employees to improve their performance and will be able to clarify the standards of performance and the importance of performance management to employees.This performance management program will include: 1. Appointing performance supervisors in each department; 2.

Monitoring employee performance through the specified rating period (no less than 90 days); 3. Monitoring employee performance on an ongoing basis through quarterly reviews and oral two-way communication between an employee and the supervisor; 4. Filing quarterly reviews and supervisor’s recommendations to senior management; 5. Taking appropriate disciplinary measures to enhance employee performance or to terminate employment of those, who have not displayed any improvement through the specified rating period.

Communicating the new policy to employees is difficult and should be based on several assumptions. First, in order to make employees understand the value of their performance evaluation, they need to have a set of clear performance standards.“The critical elements and associated descriptions of expected performance must be documented and signed by the rating official and the employee” (Purcell & Hutchinson 2007, p. 12). It is important to remember that any feedback in performance appraisal is effective when it reflects the achievement or failure to achieve a clear and specified goal (Zaccaro & Klimoski 2001, p. 79).

Second, employees must be confident and must be aware of the fact that they can address their supervisors at any stage of the rating/ reviewing process. This will also help to enhance the productivity and performance of employees.Ultimately, employees must have a clear idea of progressive disciplinary actions, which include “counseling employee about performance; verbally warning employee of poor performance; trying to improve employee performance through written verbal warning in the employee’s file, providing escalating number of days when employee is suspended from work; terminating employment with those who refuse to enhance their performance” (Taylor & Pierce 1999, p. 427). It is no less important to coach supervisors, so that they should exercise their rights and understand their obligations, as well as perform objective evaluation.“Providing managers (supervisors) with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps them to stay objective in assessing employees’ performance” (Zaccaro & Klimoski 2001, p.

84). To make supervisors prepared, they must know the standards of organization’s excellent performance, the techniques of dealing with poor performance, and the techniques of counseling employees upon the issues they may have in their performance evaluation. These supervisors and their managers should be trained to pursue objectivity in their evaluation, and to minimize the application of radical disciplinary actions towards their employees.“When dealing with unsatisfactory performance, managers must provide an employee with information concerning his/ her performance, and how it can be improved” (DeNisi & Pritchard 2006, p.

258). Supervisors and managers must realize that they have to provide an employee with an opportunity to display “minimally successful” performance before any disciplinary measures are applied (DeNisi & Pritchard 2006, p. 261). One of the most serious challenges in implementing the designed policy is setting clear standards of performance for employees.

Purcell & Hutchinson (2007) suggest that employees should be allowed to participate in the process of designing these standards. In this case there is a risk that employees may initially reject the standards they view as inappropriate. This is why managers and supervisors should clearly realize their employees’ potential, and be both reasonable and flexible in creating the set of performance standards. Another challenge is connected with applying job suspension or termination with those who do not display any performance improvements.Supervisors should follow the sequence of actions determined and communicated within the organization.

It will include a written notice to the employee upon his/ her unsatisfactory performance with the specification of critical elements (standards) which were failed. It is crucial that employees have enough time to reply to this notice and to represent their arguments against the notice. The final decision should be taken only after all procedures were followed and all employee arguments have been taken into account (Mohrman et al 1999, p. 107).ConclusionDesigning the system of performance appraisals and progressive disciplinary actions, it is essential to make the ultimate performance policy flexible, clear, and understandable to employees, responsible performance supervisors, and company’s management.

The challenges in policy implementation process should be addressed. Employees should be encouraged to participate in designing the set of performance standards. The value of such programs should not be underestimated. Performance appraisal policies are efficient tools for assessing and improving employee performance.