Evaluation , Feedback and Rewards

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Evaluation ,Feedback and Rewards

Objectives:
To develop an understanding of:
Evaluation of Performance
Performance Evaluation feedback
Reinforcement theory
A model of Individual rewards
Rewards Affect Organizational concerns
Innovative reward system

Organizations use rewards to attract, retain, and motivate people. But methods for distributing rewards vary from organization to organization, within the same organization across different levels and according to the nature of rewards. Some rewards may be universal or across the board rewards, some rewards may be a function of seniority while others may be related to job performance. To distribute rewards equitably, organizations develop systems for performance evaluation. To maximize effectiveness of the organization, it is necessary to link employee evaluation systems with reward systems. Evaluation of Performance: Performance of an individual is the function of ability, motivation, resources available to perform the task and direction / target set for the job. Purposes of evaluation may be judgmental or developmental. Judgmental purposes focus on past performance, helping mangers evaluate training programs and decide on how rewards should be distributed. It provides a basis for reward allocation, identifies high-potential employees, validates the effectiveness of employee selection procedures and evaluates previous training programs. Developmental purposes seek to improve future performance by clarifying expectations and identifying training needs. It stimulates performance improvement, develops ways of overcoming obstacles and performance barriers, identifies training and development opportunities and establishes supervisor-employee agreement on performance expectations. Methods of Performance Evaluation

Rating formats-Evidence indicates that ratings are not strongly related to results.Rating depends heavily on the mental process of the rater and as the processes are complex, there may be errors of judgment in the rating. Results depends heavily on conditions that may be outside the control of the individual employee and most measures of results provide only partial coverage of the overall domain of job performance

Behavior – Oriented rating method
Relative rating system
Absolute rating system
Result – Oriented rating system
Management by objective
Work planning and review

Behavior – Oriented rating method
Relative rating system
Ranking and paired comparison-Good for making comparison across employees, but provides little basis for individual feedback and development •Forced Distribution-Forces rater to make distinction among employees but may be unfair and inaccurate comparisons across employees if a group of employees, as a group, is very effective or ineffective •Graphic rating scales( including behavioral anchored rating scales - BARS) are easy to use and very helpful for providing feedback for individual development. It facilitates comparison across employees but does not define dimensions and scale points are not defined clearly •BARS – Very time consuming to develop, but dimensions and scale points are defined clearly Absolute rating system

Narrative essay-Good for individual feedback and development , but difficult to make comparisons across employees •Behavioral checklist -Are easy to use and provide a direct link between job analysis and performance appraisal. They can be numerically scored and facilitate comparison across employees. However meaning of response categories may be interpreted differently by different raters •Critical incident-Focus directly on job behavior.Emphases on what employees did that was effective or ineffective, but can be very time consuming to develop Result – Oriented rating system

Management by objective- Focuses on results.Each individual contribution to the success of the unit or organization. It is short – term oriented in approach. It provides few insights into employee...
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