Improving the performance appraisal to enhance operational efficiency and employee engagement: The case of the Mayonnaise Production Unit

Abstract

This research explores the critical factors impacting the efficiency and productivity of the mayonnaise production unit at AVN Company, with a particular emphasis on the role of employee performance appraisals. Through a qualitative methodology involving in-depth interviews with 25 employees, the study identifies unclear performance appraisal standards as a significant barrier to operational efficiency, evidenced by a 0.75% increase in defective products and a 3% decline in employee engagement. The investigation further reveals that inefficiencies in operational processes, heightened job stress, inadequate income, and diminished employee motivation are contributing factors, with unclear performance appraisals emerging as the most pivotal issue. The study identifies poor communication between management and employees, along with insufficient training and development opportunities, as key contributors to the ambiguity surrounding performance appraisals. To address these challenges, the research proposes the establishment of objective-based performance appraisal standards and the implementation of a 360-degree continuous feedback system. A strategic 24-month action plan, collaboratively developed with HR, production managers, and employees, emphasizes optimal resource allocation, streamlined workflows, and enhanced communication channels. The proposed interventions are designed to improve employee performance, align managerial expectations, and ultimately boost overall productivity and engagement within the unit. The findings suggest that by adopting these measures, AVN Company can significantly reduce production errors, enhance cost management, and foster a collaborative, efficient working environment, thereby improving profitability and operational outcomes across its production activities. The study offers practical, evidence-based insights for advancing workplace efficiency and employee satisfaction.