Quiz 11: Performance Appraisals

Business

For any employee to stay back in an organization performance appraisal is a very important aspect, hence this needs to be accurate, since it helps the employees to judge themselves. The four methods to improve the performance evaluation process are improving the appraisal formats, selecting the right raters, understanding the way the raters process the information and training the raters to improve the rating skills. Out of the above four methods the second method i.e. selecting the right raters is the most promising method in long run. This means the organization should choose the right person to rate the employees. This can be done based on the type of work the employee is involved in. The method 360 degree feedback covers all the aspects by which the employee is reviewed. This means an employee should be reviewed by the supervisor, peer, and customer, subordinate. This not only helps in improving the understanding of the employee but also promotes communication at all levels of the organization. When an employee is rated based on all the aspects the actual performance of the employee can be revealed and the chances of biased performance of the rater or immediate supervisor are minimized. Further if the task the employee is involved in is mainly into sales then the customer would be the best to evaluate the employee. Similarly for a team leader the subordinates would be the best to judge. Hence different the field of work determines the method of appraisal. This method judge the employee in all the area of performance. Improving the appraisal formats will be of no use unless the person rating it is not appropriate. Similarly understanding the rater's process information and training the raters will be of no use unless right person for rating is chosen. Moreover in most of the cases the employee's relationship with the appraiser affects the decisions of the appraiser. If an employee has good relations with the supervisor who would be rating him, then it is obvious that he would be given good rating no matter how the employee performs. Hence we can conclude that the second method i.e. selecting the right raters is the most important method for evaluating the performance of an employee in an organization.

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ABC ltd is a non union company with 93 non exempt employees. These employees are engaged in packing books into the boxes for shipment to its customers in United States. Due to certain drawbacks in the performance review process it was decided to change the performance review method. Earlier all the employees were given same increment every year. However based on the new performance review process the employees will be rewarded based on their performances. The five types of performance appraisal format are Ranking, Standard rating scales, behaviorally anchored rating scales, Management by Objectives and Essay. These methods are adapted based on different criteria like Employee Development criteria, Administrative criteria, Personnel research criteria, Cost Criteria, Validity Criteria. To decide the best appraisal format is a judgmental question and based on different situations and type of activities of the organization the method is to be adapted. Appraisal format should be decided based on the business activities of the organization. For instance if the task involved is a routine process then a standard measuring scale can be used to evaluate an employee. In the given case Standard rating scale is the most appropriate format for performance appraisal of the employees. The employees have to regularly pack the boxes for shipment with no change in the daily activities. Hence the supervisor can set up a minimum standard that is to be met by its employees and thus evaluate the performance of its employees. The advantage of this method is that the supervisor would be able to detect the general problem areas faced by the employees. Moreover the supervisor's decisions cannot be defended easily. Further this is a cost effective method and easy to use. Once this method is implemented it is possible that few employees would complain being unhappy with the process. This is because the employee's performance can now be clearly checked and judge the best performing employee who was earlier under rated than compared to the employees who were earlier over rated yet paid equally.