- Numerical Ranking is the most common type of performance review. Employees are evaluated on a scale of 1-5 or 1-10. This type of review gives managers a tangible number to work with when evaluating employee performance.
- Forced Ranking is typically used by larger companies to simplify their human resource decisions. This system is used to identify the top and bottom percent of employees. In most cases, the bottom percent of employees will either resign or be fired and replaced with better performing individuals.
- Management by Objectives is the most black and white system used to conduct performance evaluations. This system is based on specific goals and deadlines given to the employees. Managers evaluate employee’s performance simply by seeing whether or not the goals are met.
- 360 degree appraisal is a performance evaluation system that is used by gathering information from multiple parties such as, managers, coworkers, customers, and even vendors. The more information that is collected, the better the evaluation will be. The appraisals are filled out anonymously by multiple people depending on the size of the organization.
- Critical Incidence is used by identifying and describing specific events or incidents that can be either negative or positive. A positive incidence would be when an employee does something extraordinarily well, for example an employee could have acted very well in a stressful situation. A negative incidence would be when an employee needs to improve their performance, for example an employee could have made a serious mistake that could have caused damages to a patient. Detailed records are kept in order to evaluate the effectiveness of employees.
Pros and Cons of performance evaluations
Pros:
- Allows managers to enhance the quality of their employees and workplace.
- Gives employs feedback on their personal performance, and encourages hard work.
- Allows employees to improve their performance through constructive criticism.
Cons:
- Could cause conflicts, and result in damaged morale of employees.
- Could not be taken seriously by either party, or both.
- Could increase negative competition and lead to aggressive behavior
- Could obstruct teamwork
Good notes from the class. Which would you use if you were setting up an organization and why?
ReplyDeleteI would probably use 360 degree appraisal because employee performance is evaluated by multiple different parties that interact with the employee on a daily basis. Also since it is anonymous I believe the evaluator's are more likely to be honest in there evaluations.
ReplyDeleteThere is some risk to the 360, and to anonymity as well. What if you have an employee who is lazy or a trouble maker and you are in the process of counseling that employee out of the organization - do you think that employee will give you a good evaluation? Is that fair to the manager? With a small number of employees, one employee giving the manager a bad rating could really hurt his scores. With anonymity, that would be compounded - the bad employee's ratings couldn't be excluded from the overall evaluation.
DeleteJust something to think about.