Training and Development and Performance Management

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Chapter 8: Performance Management: 8.3d Which Performance Evaluation Method Should You Use? Book Title: Managing Human Resources Printed By: Cedric Turner ([email protected]) © 2016 Cengage Learning, Cengage Learning

8.3d Which Performance Evaluation Method Should You Use?

Figure 8.8 lists some of the strengths and weaknesses of trait, behavior, and results approaches to appraising employees. Although researchers and HR managers generally believe that the more sophisticated and time-consuming methods offer more useful information, this may not always be the case. Ronald Gross, an industrial psychologist and human resources consultant, states: “I can’t judge a performance appraisal system just by looking at the paperwork. The back of an envelope can work just fine. I’ve seen many systems fail miserably because they’re too complex, too time-consuming, and too burdensome. I’ve never seen a system fail because it was too simple.” One way to assess whether an organization’s evaluation system is effective is by doing an annual, or at least periodic, audit of the process using a survey instrument that both managers and employees complete on a periodic basis. This should give HR a better sense of whether the evaluation process is improving.

Figure 8.8

A Summary of Various Evaluation Methods

ADVANTAGES DISADVANTAGES

Trait Method

1. Are inexpensive to develop

2. Use meaningful dimensions

3. Are easy to use

1. Have a high potential for rating errors

2. Are not useful for employee counseling

3. Are not useful for allocating rewards

4. Are not useful for promotion decisions

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ADVANTAGES DISADVANTAGES

Behavioral Methods

1. Use specific performance dimensions

2. Are acceptable to employees and superiors

3. Are useful for providing feedback

4. Are fair for reward and promotion decisions

1. Can be time-consuming to develop/use

2. Can be costly to develop

3. Have some potential for rating error

Results Methods

1. Have less subjectivity bias

2. Are acceptable to employees and superiors

3. Link individual performance to organizational performance

4. Encourage mutual goal setting

5. Are good for reward and promotion decisions

1. Are time-consuming to develop/use

2. May encourage a short- term perspective

3. May use contaminated criteria

4. May use deficient criteria

© Cengage Learning

Of course, having a first-rate evaluation method does no good if the manager simply “shoves the information in a drawer.” Even a rudimentary system, when used properly, can initiate a discussion between managers and employees that genuinely leads to better performance on the part of individual workers.

Chapter 8: Performance Management: 8.3d Which Performance Evaluation Method Should You Use? Book Title: Managing Human Resources Printed By: Cedric Turner ([email protected]) © 2016 Cengage Learning, Cengage Learning

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