Sunday, March 15, 2015

Appraisal System:21st Centuries Exploitation System!!!

In post 1991 period of the technology revolution and the raise of new liberal policies gave way to many new business management concepts. Jack Welch,a former anti employee CEO of GE was the one formalized the most exploitative concept of 21th century in appraisal system. In 1980's Welch introduced a concept to exploit employees in new way know as 'Stack Ranking' or 'Forced Ranking' or 'rank or yank' or 'Forced distribution' or 'Bell Curve' or 'Vitality Curve' etc. It's new concept that introduced to increase competitive environment, Increase production, divide workers unity, In equal distribution of wages, enable firing with poor performer, reduced overall wage rates, Changed work culture and wipe social security.
  The system is implemented by all major corporate across the globe. In India, all new age corporate follow this appraisal concept. During 20th century, across globe there is a problem for corporate with continues raise in fixed hike for all employees and process of unionization. So some mechanism required to minimize this effect of workers unity. The system also creates a isolated work culture and way of life. Appraisal system is not only depends on performance of individual but various others hidden baseless parameters were consider by the managers in appraisal process. Core understanding of this system can be simple stated as "Survival Of the Fittest".

The problem in this system as three perspective as technical flaws,cultural flaws and Indian flaws. This practice based on 80-20 rule and pareto distribution curve.Where some people granted high rating in appraisal process under a category high performance on other hand equal number of people given low rating. The distribution between the two extreme may not be equal like a exact bell curve but something like a power law curve. In between this both extreme variance lies a bulk number of average performers. The distribution of compensation is widely varied across the curve. One more outcome of the process is the sudden promotion's for high performers and pushing out low performers of the company. It's one way were this corporate companies drive out high salaried low perform aged employees and  pull in low salaried young employees. This gives corporate additional chances of pumping in fresh blood of employees into high work time exploitative environment to increase productivity. This complete appraisal process hangs in the decision of the manager. so this process can never be a standard to judge a employees performance since finally its going to be each employees manger going to give force rate. A team of high performance employees can never rate all its employee as high so the manager need to be distribute the rating. This system allows a employee of 10 years experience to be compared with fresher for appraisal process, In noway this way of comparison can give justified rating for employees. It naturally tempt employee with feeling of unworthy decision taken on them will quiet the company, most the companies want this to happen so they can keep getting fresh hands in productivity and destroys the concept of permanent jobs. They tempt for more casual and contract employees.  

   Among employees this system creates negative thought process on fellow employees. The system makes team work a act of dynamics but individuality makes heavy production. The competitive environment developed by this system make every employee too fight individual proving them for salary hike rather than collective bargaining of union for common hike in 20th century. So employees started to involve in isolated act of production This process created culture started to reflect in social life of the employees. They started to think about there social problem in isolated environment and solve it individual  rather than united approach of solving a social problem. It creates a attitude of superior for people with high performance and a stressful depression state for people in low performance cadre. This system also stagnant employees mind from developing them self rather then allow to experience new ideas.

  In one way technically the system is wrong and other way system in cultural flaw. In India the system is further biased by some geographical identities. As I wrote previously the complete system hangs in the hands of employees manager decision, mangers are like slave lords in India. Indian Managers are mostly biased in decision making during appraisal process. The parameter is not alone performance based in India it dependent on Manager's tit for tat , Manager's favoritism, caste, region, language, religion ,gender etc. Indian managers are mostly upper caste Hindu male dominated people seated to rate a diverse spectrum of employees. Most of the people getting this good rating/promotion are from upper caste is that mean other caste people not talented. It's biased nature to pull up people of there orgin strongly exists in work culture. Managers use it as assault weapon to employees in wrong terms with him/her to rate low. Women's have additional problem from there male bosses as in the form harassment. They were not aware its a harassment but they need to keep quite. Women employee were saturated after certain level of hierarchy. Is it happen naturally? No, our common Indian male attitude about women saturating them from progress.  A women's are not qualified to do more than this work is deep imprinted in most of the male managers. This system completely wiped the rebel sprite of employees to question the managers of wrong doings.

  Jack welch introduced this system into GE corporation the productivity increased to pinnacle. During his tenure of CEO, company value rose by 4000% but other side employees were regularly thrown out with poor performer brand. One sample of GE is enough to show case how much this appraisal system driven company value. Actually this growth not reflected in big deal in employee salary and job security of the employees. The system can make employee to feel good but overall this appraisal system is a new way of exploitation of employees labor. It's the reason every time a employees union formed in a corporate office first demand would be wipe out appraisal system. So the solution for it may be common fixed hike for all employees based on there seniority. Open promotion policy based on seniority and single window system. To achieve this Employee union is must for our collective bargaining.  Let keep marching towards a society without exploitation by keep uprooting system like this on the path. 
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