Heartland greeting cards is experiencing a high employee turnover problem due to issues with their selection process and performance appraisal system. Their existing selection procedure relies only on employee referrals and newspaper ads. Their performance appraisal system has no formal process and evaluations are done through infrequent and unannounced spot checks with no feedback provided. The document proposes designing a new selection instrument using various tests and interviews to evaluate candidates. It also recommends designing a new performance appraisal system where area managers provide formal evaluations through announced spot checks, frequent feedback including 360-degree feedback, and standardized ratings to make the system more legally defensible.

1. HEARTLAND
CONSULTING PROBLEM
GROUP: CREATORS

2. SUMMARY OF THE CASE
Heartland greeting cards has a high turnover
problem due to faulty selection procedure and
ineffective performance appraisal system

3. INTRODUCTON
 National greeting card company based out of St.
Louis, Missouri.
 Hammonds greeting cards and Patriot greeting
cards are two competitors
 Competitors have its own specialty stores
 Greeting card merchandiser interacts with the
store managers and store customer

4. EXISTING SELECTION
PROCEDURE
 EMPLOYEE REFERRALS
 LOCAL NEWSPAPER ADS

5. EXISTING PA SYSTEM
 No formal performance appraisal system
 Performance is evaluated by unannounced spot
checks
 Infrequent
 No feedback

6. DESIGN OF A SELECTION INSTRUMENT
1) Mathematical ability to carry out calculations
Assessment method: cognitive ability test
2) A 12th grade reading level in English
Assessment method: cognitive ability test
3) Ability to attend to details
Assessment method: work sample test
4) Ability to carry out company procedures while
adapting to situational need
Assessment method: situational judgment

7. 5) Ability to resolve customer complaints
Assessment method: structured interview
6) Basic body mobility and ability to stand
Assessment method: work sample
7)Ability to work alone with no supervision
Assessment method: integrity test
8)Must provide own transportation to all stores
Assessment method: structured interview

8. DESIGN OF A PA SYSTEM
Q.1) Who should be responsible for evaluating the greeting
card merchandiser’s performance?
 Area manager should be the responsible
 Performance should be evaluate by announced spot
checks
 Frequent
 Proper feedback

9. Q.2) What rating formats will allow you to
incorporate the job performance criteria identified
in the job analysis directly into the rating form?
Rating format:
comparisons among performances
RATINGS
1 = Poor 2 = Fair 3 = Satisfactory 4 = Good 5 = Excellent
Work quality
Comments

10. Q.3) What techniques do you recommend to ensure that the
greeting card merchandiser is provided with accurate and
timely feedback concerning his or her performance.?
360-DEGREE FEEDBACK

11. Q.4) What other components of the PA system
will help make it more legally defensible?
 Job-related
 Standardized appraisal system
 To respond to performance appraisal
 Employees are informed before the appraisal
 Give opportunity to employee to rectify the
problem
 No bias against color, race, religion, sex, or any
other legally protected group