A Kraft Heinz food-packing site has introduced monthly employee appraisals after output fell for three months. Each supervisor meets an employee, discusses ...
Question 1 Report
A Kraft Heinz food-packing site has introduced monthly employee appraisals after output fell for three months. Each supervisor meets an employee, discusses targets, checks attendance and agrees training needs. Some employees welcome regular feedback. Others say targets are difficult because a new packing machine often stops unexpectedly. The site manager is considering whether appraisal results should be linked to a bonus. The business needs higher output to meet supermarket orders, but it also wants employees to report machine faults honestly rather than rush work. The manager has asked for reasons why appraisals might benefit both the employee and the business.
(a) Define the term appraisal. [2]
(b) State three uses of an employee appraisal. [3]
(c) Calculate the percentage increase in output if weekly output rises from 48,000 packs to 54,000 packs. [5]
(d) Analyse whether appraisal results should be linked to a bonus at this site. [10]
Answer Details
(a) An appraisal is a formal review or assessment of an employee's performance, usually carried out by a manager. [2]
(b) Appraisals can set targets, identify training needs, give feedback, identify promotion potential, discuss performance problems and inform pay or bonus decisions. Any three. [3]
(c) Find the increase relative to the original output:
\[54000-48000=6000\text{ packs}\]
\[\frac{6000}{48000}\times100=12.5\%\]
Output increased by \(12.5\%\). [5]
(d) A bonus may motivate employees to meet targets, increasing output and helping fulfil supermarket orders. Appraisal targets can provide a measurable basis for payment, which high-performing employees may consider fair.
However, employees may focus on speed rather than quality, leading to faulty packs and complaints. Machine stoppages are outside employees' control, so output-only targets could make bonuses unfair and reduce motivation. Employees might even hide faults to avoid missing a target.
A better approach is a modest bonus based on team output and quality, with machine downtime taken into account. This rewards performance without encouraging unsafe or dishonest behaviour. [10]
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