PILE IT HIGH AND LET IT FLY AT COSTCO 5
Pileit High and Let it Fly at Costco
Assessmentsare critical in the management of employee performance. At Costco,the assessment process is seen as important in the performance ofemployees and the entity as a whole. The assessment process of thecompany focuses on the performance of the employees. In this process,there is self-evaluation of employees where employees are required toprovide details concerning their strengths, individual leadership andcommunication skills, decision making, initiative, developmentopportunities, outcomes of annual goals, as well as new goals for thefollowing year (Cassidy & Kreitner, 2009). During the process, incase the supervisor had provided a timely employee feedback andappropriate coaching, the employee then identifies areas forimprovement during the self-evaluation process (Cassidy &Kreitner, 2009). This makes it easier in addressing the concern, andit is seen as a positive step towards self-improvement. Nevertheless,in case the supervisor has not been consistent throughout the year inhandling concerns in an effective way, it may be more difficult topresent the review and suggest improvements since the employee maynot even be aware of his/her performance issues (Cassidy &Kreitner, 2009).
Thehuman resources technology is also of immense importance to thecompany. At Costco, the human resources department hires itsemployees through erecting a warehouse club. In this case, employeesare required to make inquiries concerning job openings. The companyusually hires through the use of a website and does not use radio,TV, or newspapers in advertising its job openings. This is crucial inreducing hiring expenses for the company. The company posts openingson its corporate website, which integrate recruitment and hiringsoftware (Rafter, 2005). Also, the company has employees-schemes suchas employee stock purchase plan, where new workers are eligible toenroll in the plan. This allows the employees to buy Costco stockthrough payroll reduction. The plan does not include commissions andfees that are usually associated with the buying of the company’sstock.
Thecompany uses self-evaluation method in assessing its employees. Inthis method, an employee is required to judge his/her performancethrough using a form that has to be supplied with multiple choiceanswers, essay-based answers, or even a combination of the two.Through using the self-evaluation method, the company is in aposition to understand the performance of its employees, as well asunderstand the weak areas of employees that require an improvement.
Thehuman resources technology used by the organization is of immensebenefit to the company because it helps in mitigating the hiringcosts, which in turn reduces the operating costs for theorganization. For instance, by not using TV, newspapers, or radios inadvertising open positions in the company, there are no transactionalcosts incurred in hiring (Rafter, 2005). Thus, hiring through theorganization’s website helps to save costs of operation.Alternatively, through the use of recruitment and hiring software, itis possible for the company to increase efficiencies in therecruitment and hiring process.
WhatI can learn from Costco is that putting employees first in anorganization is a vital element that would ensure the success of anorganization. The organization really values its team because theteam usually benefits from the organization this is the reason whyemployees hired by the organization desire staying in theorganization. The organization practices what it preaches since itgives its employees the promises it makes such as the benefits.
Inconclusion, it can be argued from the analysis that Costco is wellplaced for strong performance. This emanates from its human resourcestechnology, which helps it in mitigating operations cost as well asthe method of evaluation that it uses. The evaluation method helpsthe organization in identifying areas where it can support itsemployees.
Cassidy,C., & Kreitner, R. (2009). Supervision:Setting people up for success.Mason, OH: South-Western Cengage Learning.
Rafter,V.M. (2005). Compensation, Benefits & Rewards. WorkforceManagement,pp. 40-46.