Performance appraisals in organizational management

Performance Appraisals

Describe two different performance appraisal methods.

There are many types of performance appraisal method. Some of them are job results/outcome; essay method; ranking; forced distribution; graphic rating scale; behavioral checklist; behavioral anchored rating scales (BARS); and management by objectives.

Two other performance appraisal methods are the following:

The manager can document performance objectives and process in a journal. This can be one way for evaluation and appraisal of performance

Supporters of this approach argue that this approach will only be effective when there is a clear psychological contract between employer and employees based on mutual trust and commitment. The organization will benefit from setting out its aims in a clear way which then gives direction to everyone in the organization ((Dransfield, 2000) p.89).

The company can try a hybrid mixture of informal / formal performance appraisal where the employees evaluate one another and the manager also informally surveys customers' feedback. Connected to this, the rate of returns, complaints, and level of customers who frequent the store may serve as performance appraisal in that it may adequately describe the level of performance and whether it needs to be intensified or where problems are occurring on some level in the company. These are 2 different ways in which the manger can solicit and conduct performance appraisal.

3. What performance appraisal tool do you find to be the most effective? Why do you feel this way?

Essentially, the manager should choose a performance appraisal tool based upon his particular company. Main considerations are: (1. who the manager should evaluate and (2) what criteria should be used for evaluation.

I find the last one more effective in that we have several factors conjoined. We have evaluation from (a) employees themselves (b) manager (c) customers. This provides different facets of the situation and can support existence of weak performance if there is one. The employees may have one perspective of a certain employee's performance. This may also be (from at least one worker) biased, but employer's evaluation can make up for this. If either of these two are biased or lacking data, customers fill in the missing gap. It needs an objective evaluator, however, to review the accumulated data in order to formulate conclusions.

Pay Systems

Is it important for companies to have a structured, formalized pay system as opposed to a subjective method of supervisors determining individual pay increases? Why or why not?

I think it is important for companies to have a structured, formalized pay system for the following reasons:

1. It would prevent conflict in company from those who suspect that manager may be distorting pay system to reflect his own bias