MGT3045 WK 4 Discussion

Performance Management and Appraisal

HRM needs to monitor and measure employee performance. HRM uses standardized forms and

processes to measure performance and customizes them to organizational needs. These include:

Annual, half-yearly, and quarterly appraisals

360-degree appraisal

Management by objectives

Forced ranking

Most common is the annual performance appraisal. The employee and supervisor complete a

standardized form and performance review with goal setting, discussing resources to achieve goals.

Organizations may evaluate employees every six or three months. Frequent evaluations enable

employees to focus on goals and take corrective actions early. Organization can promptly reward good performers, which motivates employees to perform better.

Drawbacks to quarterly appraisals are the extensive time and effort to complete forms and conduct

interviews.

Organizations save time using 360-degree appraisals. In a 360-degree appraisal the employee

conducts a self-evaluation, accompanied by feedback from peers, teammates, subordinates, and

supervisors. This provides extensive feedback and enables employees to interact with other

employees at regular intervals instead of only with supervisors. In reality an employee may rarely meet with the supervisor.

Management by objectives is another effective appraisal technique. Together, the supervisor and

employee choose goals, a timeline, and resources to achieve goals. The employee must report progress

in achieving speci�ed goals. This can be highly motivating for employees, and reduces the supervisor's

responsibility and time commitment. Highly measurable outcomes result and are used to determine

incentives for employees.

In the forced ranking method a group of employees is evaluated using a forced ranking system based

on individual or team performance. Grades are limited; only a certain number of employees can be in a

particular category. For example, when supervising a team of 50 people, 25 are worthy of an A grade.

You are only allowed to give an A to 5 members and are forced to give the remaining members a B

grade.

The supplemental materials provide an example of how forced ranking may work, although organizations may use and manage forced ranking differently.

 

Additional Materials

Forced Ranking (media/week4/SUO_MGT3045_W4%20L2.pdf?

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