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The mistake sally committed was that she did not understand the value of performance review for the organization, for her and for her subordinates.

The organization should reward based on performance instead of seniority in order to encourage more interaction between Sally and Sally's employees and also motivate them.
Sally as well should understand more about her subordinates by coordinating some assessments and through the assessment, she can know better about her subordinates.

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what went wrong:
-don't emphasise on employee assessment
-no employee engagement
-no motivation for the employees
-no appropriate rewarding system to manage employee performance
-does not reflect the actual employee performance
-did not contribute to employee career development growth
-no improvement on overall organization

how to improve:
-encourage to have more engagement session between sally & her employees
so that sally can understand better on her employee performance & challenge they face.
-carry out appropriate individual assessment to highlight employee performance or area for improvement.
-based on performance review, sally can provide encouragement to the employee so the employee are more motivated to perform better.

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Room 5
1.       Manager do not understand the purpose of doing the performance review – thinks that is waste of time.

HR to educate and create awareness for manager to understand the purpose & objective of the performance review exercise.

2.       Manager did not spent effort to monitor subordinates’ performance – do not see them in persona and only gauge performance based on sales figure

Manager can initiate engagement session with their subordinates to understand their ups and down at work and not to relay only on sales figures for performance. This will provide motivation and support to employee in order to achieve their work KPI.

3.       Performance review is not translated to reward – nothing happened regardless of ratings, salary adjustment is based on seniority rather than merit. No motivation for manager and employee to execute the performance review

Rewards should be based on performance review in order to create an effective and motivated workforce.

4.       Manager did not provide correct feedback to subordinate but rather gives everyone maximum possible rating.

Constructive feedback should be provided both to manager and employee

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Negative points:
discourage competition

less motivation

less energetic

treated like factory workers

unfair rewarding system

waste of money to develop the performance management system

waste of time on bureaucracy

positive points :

sense of security(subordinates)

less toxic working environment

less competition, less office politics,

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Although self esteem is increased for her subordinates and motivation drive perhaps, but the misleading information does not provide detail insights on their performance, no differentiation between good and bad performers as it is an unfair administrative approach. Without the merit approach, missed opportunities for good subordinates under her to excel and work towards the company goals.  It is an unclear identification of effectiveness performance as she only bases them off of sales figures. The sales figure actually reflects her leadership and management approach too not solely the subordinates. Sally’s approach is unethical and unfair reflecting her poor performance management and leadership skills. Internally staff will be discontented.

To improve

Company needs to play apart in sally’s time management and segregation of task due to her workload. Managers need time dedicated to do these appraisal tasks for the team.

More managers or other higher/leveled authority to assist Sally in appraisal ratings.

Her review should be done with the team/subordinates and reviews to them so they could understand and improve better, it’s all about communication.

Rather than just ratings, should open the floor to all colleagues to voice out any opinions/suggestions.

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Room 2
So as we can see in the case of Sally what went wrong was that she completely disregarded the importance of the employee performance form which is crucial for the entire organisation to evaluate employee performance. What she should have done is taken time and individual evaluate each employee based on the strength and weakness which would have allowed the HR department to allocate resources for those employees to improve on the skills so that they can better perform in their tasks.

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Continuous process: Performance management is ongoing. It involves a never-ending process of setting goals

and objectives, observing performance, and giving and receiving ongoing coaching and feedback.

According to the case given, Sally

leverage herself as a manager by pointing less busy people

She commit dishonesty to the performance appraisal

She measures employee performance based on sales instead of motivation

She should pointed four other people to do unbiased performance review.

Improving the communication between Sales manager (sally) and the other 10 sales people.

Feedback and counseling is given a lot of importance in the performance management process..

Changing salary adjustment based on merit and ratings instead of seniority
Rating the sales people based on the performance as it is not being fair to those who really put efforts.

Sally should collaborate with the HR department to do monthly employee training.

In general, Sally should have better time management to do quarterly, setting objective, KPI and rewards clearly on the beginning of the year, this to avoid last-minute performance review submission.