Time Context:Afternoon performance appraisal discussion Point of View: Bobby’s standards versus established stores standards.
To measure employee performance
To know the kind of standard that would be set in the stores To know what rating methodology will work for TEAM FUN!
Alternative Course of Action
ACA 1 - Absolute standards
An employee’s performance is measured against established standards. Evaluation is independent of any other employee.
1. Reduce bias
2. Reduce distortion
3. Specific feedback leads to communicate
1. Time Consuming
2. Not Quantifiable
4. Frustration from not knowing the right answers in forced choice
ACA 2 - Relative standards
Employees are evaluated by comparing their performance to the performance of other employees.
1. Prevents rater from inflating their evaluations so that everyone looks good or average. 2. Each employee is evaluated against their co-employees.
1. If in small population, raters tend to evaluate even an excellent employee as last place. 2. Difficult to accomplish if the employees are too many.
Using Achieved Outcomes to Evaluate Employees:
Formal approach is Management by Objectives (MBO) which is a performance appraisal method that includes mutual objective setting and evaluation based on the attainment of the specific objectives.
1. Advantages are that it uses a results-oriented emphasis. It assists the planning and control functions and provides motivation. Employees know exactly what is expected of them and should have a greater commitment to goals that are mutually set.
1. Disadvantages are that it will not work well where management has little trust in its employees. The MBO process is time-consuming. Finally, it may be difficult to measure whether the MBO activities are being carried out properly.
Decision Matrix for all ACA
| | |ACA 1 |ACA 2 |ACA 3 | |Criterion |Weight |Absolute Standards |Relative Standards |Using Achieve Outcomes | | | | | | | | | | | | | |ACCURACY |20% |15% |10% |15% | | | | | | | | | | | | | |FAIRNESS |20% |10% |10% |15% | | | | | | | | | | | | | |TIME |20% |5% |5% |15% | | | | | | | |...