Paper Example on Egan's Co. Should Invest in Recruiting Trainable Personnel for Long-Term Success

Introduction

Egan's company has proven cautious about their method of employee selection and their effort in equipping the employees through training. However, the results have not been fully satisfactory to the executive as it stands. For this reason, the company should invest in recruiting personnel that is trainable rather than personnel. Personnel that is teachable will undergo training and become more competent. Resultantly, the company will be in a better position to achieve its long term goals of effective customer service; therefore retaining customers. The company will also have higher bargaining power in terms of salary with its employees. Additionally, Egan's executive should change the mode of payment to the employees. Rather than having the demands of salary increments, the company can adopt a model basic salary plus commission mode of payment. This will motivate the employees to make to work by putting them on toes and will reduce the pressure of salary increments. Additionally, Egan's executive can come up with a program that awards people who hit their targets and beyond.

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Pros and Cons of Egan's Performance Appraisal System

Pros: The system of appraisal adopted by Egan fully exploits human resources. This is because it gives the employees the pressure to give their best. Resultantly, the company makes more sales in the short run.

Cons: The method only works to increase sales in the short run but not in the end. This is because it lays less emphasis on customer service and customer satisfaction. Consequently, the company is bound to suffer from customer churn.

Effectiveness of Egan's Method of Appraisal

Since Egan's method of appraisal measures short term outcomes, it does not accurately identify the best employees. This is because the method does not give the employees adequate time of growth. Ideally, even when growth occurs, it is compromised as the scales used do not measure long term growth. The lack of long term rewards limits the employees' effort for long term results as they are not appreciated. As a result, the employees' growth is compromised and so is the company's.

How Egan's System of Appraisal Relates to Sales

Ideally, the system of appraisal adopted by Egan could be directly linked to the increased sales that the company is experiencing. This is because it is a direct motivator for the employees. Additionally, the appraisal system does not measure other performances of the employees such as customer care and service as it focuses on the sales. Following the suppression of the employee's ability and productivity, I would change the system to such a way that it will be in a position to measure gradual improvements. The system of appraisal should be based on value addition and the achievements of the objectives. An appraisal system that focuses on gradual improvements, gives the employees and the company at large a great opportunity to grow. This is because it helps identify faults that can be easily corrected. It also helps the company gauge their position in terms of the achievement of objectives.

Absenteeism and Turnover

It is within the employee's liberty to leave a company at choice as long as they are not bound by a contract. An increase in employees turns over calls for a more workforce to cater for the big loads of work. For this reason, the exit of personnel from the Egan Company can account for the decrease in employees' absenteeism. This can be attributed to the fact that 43 percent of the exiting personnel had been highly ranked due to their competence.