Realigning HR practices at Egan Colthiers

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......3. Can increased sales be linked directly and/or indirectly to the appraisal system?
Sales is a good indicator of performance, but is not the full picture on how well an employee is performing. Customer satisfaction as well as the percentage of return customers is a much more important indicator of performance. I would change the system to reward those of mid to high level sales, but with the highest levels of customer satisfaction, the highest
4. How do you account for the fact that absenteeism has decreased at Egan's while turnover has increased?
Absenteeism has decreased because the performance system is tied directly to the employee's sales, which is a function of the number of hours he or she spends on the floor. The employee cannot afford to be absent, and as such, absenteeism drops. However, this system is not satisfying to the spirit of the employee. The lack of teamwork, and the increased competition, may have created such a negative atmosphere at Egan's that top level employees, who know they're a valuable asset, thanks to the system, get tired of it and leave......

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