Human Resource Management - Performance Appraisal
HUMAN RESOURCE MANAGEMENT
Word count: 2,956
TABLE OF CONTENT
Pages
Cover page i
Table of content ii
Executive summary iii
1. Introduction 1
2. The literature review of performance appraisal methods 1 2.1 Graphic rating scales 1 2.2 Management by objectives (MBO) 2 2.3 Critical incidents 4 2.4 Ranking 5
3. Applications to XXX Company and ABC clubhouse 6
4. Recommendation 8
5. Conclusion 9
References 10
Appendix 12 Appendix A: Graphical rating scale form 12 Appendix B: MBO appraisal form 17 Appendix C: Critical incident reporting form 19 Appendix D: Ranking appraisal form 21
EXECUTIVE SUMMARY
In this report, it has a particular interest in performance appraisal methods regarding graphic rating scale, MBO, ranking and critical incidents. Using the evidences of XXX Construction Company and ABC clubhouse, it derives strong and weak points of these appraisal methods. Overview, both companies implement single-source of rater, viz., supervisors to evaluate their employees. Therefore, both deal with hinders of personal biases, previous performance appraisal’s results or prejudices.
In XXX Company, graphic rating scale brings benefits of convenience, simplicity and fast completion. The company has adopted this method to evaluate many aspects of its operation and management. However, this method generates problems, especially the low level of reliability, ambiguous definition of evaluations and central tendency effect. Furthermore, XXX Company has strengths in the ability to achieve strategic objectives via MBO technique. It helps the company ensure operative goals to align with overall organizational missions. On the other hand, the company probably finds it difficult and time-consuming in setting objectives and it is hard to change established objectives.
In contrast, ABC clubhouse uses critical incidents that allow the company to examine employee’s performance and behaviors
Word count: 2,956
TABLE OF CONTENT
Pages
Cover page i
Table of content ii
Executive summary iii
1. Introduction 1
2. The literature review of performance appraisal methods 1 2.1 Graphic rating scales 1 2.2 Management by objectives (MBO) 2 2.3 Critical incidents 4 2.4 Ranking 5
3. Applications to XXX Company and ABC clubhouse 6
4. Recommendation 8
5. Conclusion 9
References 10
Appendix 12 Appendix A: Graphical rating scale form 12 Appendix B: MBO appraisal form 17 Appendix C: Critical incident reporting form 19 Appendix D: Ranking appraisal form 21
EXECUTIVE SUMMARY
In this report, it has a particular interest in performance appraisal methods regarding graphic rating scale, MBO, ranking and critical incidents. Using the evidences of XXX Construction Company and ABC clubhouse, it derives strong and weak points of these appraisal methods. Overview, both companies implement single-source of rater, viz., supervisors to evaluate their employees. Therefore, both deal with hinders of personal biases, previous performance appraisal’s results or prejudices.
In XXX Company, graphic rating scale brings benefits of convenience, simplicity and fast completion. The company has adopted this method to evaluate many aspects of its operation and management. However, this method generates problems, especially the low level of reliability, ambiguous definition of evaluations and central tendency effect. Furthermore, XXX Company has strengths in the ability to achieve strategic objectives via MBO technique. It helps the company ensure operative goals to align with overall organizational missions. On the other hand, the company probably finds it difficult and time-consuming in setting objectives and it is hard to change established objectives.
In contrast, ABC clubhouse uses critical incidents that allow the company to examine employee’s performance and behaviors
References: 2.3 Critical incidents This is a performance appraisal method that requires managers or supervisors to keep written records of particularly favorable and unfavorable work actions during the appraisal period (Kleynhans, 2005) 2.4 Ranking Under this appraisal method, managers will compare their subordinates’ performance, and then rank each in order from ‘best’ to ‘worst’ (Stone, 2010) Chron.com, Small Business, Managing Employees, “Advantages and Disadvantages Of Employee Ranking Tools”, Available from: http://smallbusiness.chron.com/advantages-disadvantages-employee-ranking-tools-22523.html, (Accessed on 17 Mar, 2013). Dinesh, D. and Palmer, E. (1998), "Management By Objectives And The Balanced Scorecard: Will Rome Fall Again?", Management Decision, Vol. 36 Iss. 6; pp.363 – 369. Drucker, P. (1979), Management: Tasks, Responsibilities, Practices. In Erik Goel, D Grobler, P.A. and Warnich, S. (2006), Human Resource Management in South Africa, 3rd edn, Thomson Learning, UK. Grupta, M. (2009), Principles Of Management, PHI, New Delhi. Kleynhans, R. (2005), Human Resource Management, 1st edn, Maskew Miller Longman Pty Ltd, South Africa. Lloyd, K. (2009), Performance Appraisals And Phrases For Dummies, 1st edn, Wiley Publishing Inc., Canada. Murphy, K.R. and Cleveland, J. (1995), Understanding Performance Appraisal: Social, Organizational, And Goal-Based Perspectives, 1st edn, Sage Publication Inc., USA. Singla, R.K. (2010), Business Organization And Management, V.K. Enterprises, New Delhi. Snell, S.A. and Bohlander, G.W. (2012), Managing Human Resources, 16th edn, Thomson South-Western, USA. Stone, R.J. (2010), Managing Human Resources, 3rd edn, John Wiley & Sons, Milton.