Performance Evaluation
Employee resourcing strategies and approaches have an impact upon the organizational effectiveness through their effect on the performance of the individuals and groups. Performance is what individuals actually do and can be observed. Performance is referred to action itself and it is not the consequence of action (Davis & Scully, n.d.). Research has indicated, in the present existence, individuals are acquiring good educational qualifications and augmenting their competencies and abilities to acquire employment opportunities. When the individuals are able to acquire employment opportunities, they feel contented and pleasurable. They have the main objective of carrying out their job duties in a well-organized manner and attain the desired outcomes. Hence, they ensure that they put in their best abilities to carry out satisfactory job performance.
Within the course of performance of job duties, evaluation of job performance is regarded indispensable. Evaluation involves putting into operation the methods and approaches that enable the human resources to find out whether they are able to carry out their job duties in a well-organised manner and meet the job requirements. The evaluation processes helps in identifying the limitations and bring about improvements. Traditionally performance has been interpreted as measurable outputs, the achievement of which is dependent on the skills and efforts, which the individuals bring to their jobs. However, within the knowledge or service economy, effective performance relies at least as much on how the tasks are carried out, or contextual performance, as on the ability to perform the task (Davis & Scully, n.d.). The individuals, who are in leadership positions, such as, managers or supervisors are vested with the authority and responsibility to carry out the evaluation processes. When they observe that employees are experiencing setbacks and are finding certain job duties difficult, they formulate measures and procedures to provide solutions to their problems. Therefore, it can be stated that evaluation processes are indispensable in enabling the employees to put into operation their job duties in an efficient manner.
The performance evaluation methods have been stated as follows: (Chapter 5. Performance Appraisal Methods, n.d.).
Feedback Mechanism Method – In this method, the management evaluates the performance of the employees on periodic basis. In this method, the management evolves the system for motivating the high performers to do even better and identify the flaws and inconsistencies that have been experienced by other employees to carry out their job duties in a well-organised manner. In this method, the managers are meant to design the mechanism for identifying the employees, who have a high potential for advancement, and those who consistently remain low performers to be encouraged to look for other employment opportunities, where they will be able to make use of their skills and abilities and generate the desired outcomes. One of the major limitations of this method is, at times, feedback that is given by the leaders is even biased.
Performance Ranking Method – The subordinates are evaluated and rewarded differentially according to the performance. Performance ranking method is one of the methods that is of utmost significance. The reason being, through this method, the leaders too can acquire an efficient understanding in terms of how the individuals are working and individuals too can generate awareness in terms of where they stand. This is the method that is prevalent in various types of organizations. This is regarded as some sort of implied performance ranking. Such ranking is close to the normal distribution curve, which is known as the bell curve. This method too has limitations. It sets an average score to remain in the same level year after year. As a result of this method, the actual performance does not get reflected. In this manner, the employees may feel stressed and frustrated.
Grading Method – Grading method is not prevalent to a major extent in the present existence. In this method, the workforce are given a certain task. After they have completed the task, their supervisors evaluate their performance by giving them grades. Good grades motivate them to do even better. On the other hand, when the grades are low, it is vital for the workforce to bring about improvements. Hence, it can be stated that grading method has proven to be effectual and worthwhile. This method has been replaced by modern and innovative methods. But grading method has played an important part in making provision of promotional opportunities and increase in salaries and reimbursements. In this context, experience matters more as compared to educational qualifications, competencies and abilities. One of the major limitations of this method is absence of incentives. Complacency is set as the salary increment and promotions are given irrespective of performance.
Comparative Standard or Multi-Person Comparison Method – This method compares an employee relative to others. In the individual ranking, the supervisor lists the employees from the highest to the lowest levels. The difference between the job performances of two employees, who are in top positions is assumed equivalent to the performance of the employees, who are in low positions. In the group rank ordering, the supervisor places the employees in a particular classification such as, top one-fifth and second one-fifth. If the supervisor heads the ten employees under his supervision, only two could be included in the top fifth and two will be assigned the bottom fifth. In paired comparison method, supervisor compares each employee with every other employee in the group and rates each as either superior or subordinate. After all the comparisons have been made, each employee is assigned ranking based on the scores, he or she receives.
Critical Incidents Method – In the critical incidents method, the attention of the supervisor is focused on specific or critical behaviour that is vital for performing one’s job duties successfully. The behaviour is termed as negative, when the employees are leaving the machines running, while unattended. On the other hand, behaviour is termed as positive, when employees are taking adequate precautions. Therefore, it is vital for the members to be aware of safety and precautions that need to be taken, particularly when employed in hazardous occupations. In this method, major emphasis is put on whether employees are taking care of their health care and implementing adequate safety measures. It is vital for employees to take care of their health care and well-being in order to attain the desired outcomes.
Rating Scale Method – In this method, the main aspects that have been taken into consideration are set of job performance factors such as, job knowledge, work quality, and co-operation that the supervisor expects to rate the employee performance, making use of the incremental scale. The Behaviourally Anchored Rating Scales (BARS) is the combination of elements of the critical incident and graphic rating scale approaches. The supervisor rates the employees in accordance to the items on the numerical scale. Behavioural Observation Scale (BOS) is frequency rating of the critical incidents that the worker has performed. This method has been primarily used to assess the performance of the employees. In the mixed standard rating scale, the different job dimensions of behaviour are rated as poor, average and good.
Management by Objectives – The concept of ‘Management by Objectives’ was initiated by Peter Drucker in 1961. In this method, the employees and superiors work in collaboration and integration with each other to identify the common goals. The former is expected to achieve for considering the criterion for the measurement of performance and making decisions in terms of course of action to be followed. The essence of MBO is participative goal setting, making selection of the course of action and decision making. The important part of MBO is measurement and comparison of the actual performance of the employees with the standards set. Ideally, the employees themselves get involved with setting of the goals and making selection of the course of action. This method aligns the objectives with the quantitative performance measures, such as, sales, profits and zero-defect units produced.
Peer-Comparison Ratings Method – This method is typically used to rate the peers in the organization. In this case, the superiors render a significant contribution in rating. In this case, the entire team is considered while rating. In zero-sum game rating, the changes that takes place for the participants adds up to zero. In nonzero-sum game rating, the appraisal is based on the assumption that the workforce have the potential to improve, gain more efficiency, produce more, augment proficiency and carry out things in a better way as compared to the past. This method has certain limitations, such as, whether a single number percentile or decile reflects the important realities. An organization is usually trusted by the employees to make fair and competent judgments and appraisals. However, it is only when the organization attempts to emphasize how all the human resources are rank ordered that its judgement is challenged.
Balanced Scorecard Method – The Balanced Scorecard method was a breakthrough technique innovated by Robert Kaplan and David Norton. It takes into account four aspects covering areas, such as, financial, customer, learning and growth. This method retains the traditional financial measures. These measures are adequate only for the industrial age companies for whom investment in long-term capabilities and relationships with the customers were not critical for achieving success. Moreover, the financial measures were inadequate for guiding and evaluating the journey that the present information age organizations must make to create future value through investments in the customers, suppliers, employees, processes, technologies and innovations.
HR Scorecard Method – The HR scorecard is the management system for filling the gap between usually measured in HR and actually necessary to the organization. In this case, major emphasis is put upon HR architecture, HR culture, HR functions and HR behaviour. The ideal scorecard for an HR measurement system includes four themes, i.e. identifying the HR deliverables, identifying and measuring high performance work system elements that generate deliverables, developing a validated competency model that put emphasis on the outcome, besides identifying the HR efficiency measures that establish a connection between costs and benefits.
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Reflection and Key Takeaway:
The recruitment process is also important for every organization as the good and skilled staff will benefit to the company long term goal. The company good image and reputation will attract both applicant and the customer. Employees are best ambassadors for your culture and company reputation. They can help you showcase your culture by sharing their stories to the new company and the market, Showcasing and presenting your culture in every stage of the recruitment process, from the job description and application form to the interview and onboarding. You can also provide your candidates with opportunities to experience your culture first-hand, (1) Define your culture (2) Hire for culture fit (3) Communicate your culture (4) Train and develop your culture (5) Empower and involve your culture (6) Evaluate and improve your culture
I completely agree with the importance of performance evaluation in the context of strategic human resource management and strategic resourcing. Performance evaluation is a crucial aspect of managing employees effectively and ensuring that they contribute to the organization's goals and objectives. The Balanced Scorecard and HR Scorecard methods, which consider various dimensions beyond just financial metrics, are essential for organizations looking to thrive in the information age. They emphasize that success is not solely dependent on financial outcomes but also on factors like customer satisfaction, learning and growth, and HR efficiency. These methods provide a more comprehensive view of an organization's performance.
ReplyDeleteThe Balance Scorecard is the high level decision making method which suitable for the managerial level.
DeleteI think all of these methods are valid and can be applied to various types of organization. Different organizations, different cultures, different people, so I think we need to what and who our company are and then select the method that match with the company and it is important that the evaluation must be based on unbiased, fair, explainable, and reasonable.
ReplyDeleteSame as what @Girah Jam comment , the selection of the method and tool are upon the current size of the company and the situations we are up to.
DeleteThese methods might be suitable in medium or large organizations . Small organizations might not have so many hierarchy, departments and enough people to evaluate in to deep details. But Small company could also pick the one that suits their situation at that time.
ReplyDeleteThe flexibility in the medium and small size company is very high. They will easily choose and adapt the tool against the situations they are with.
DeleteManagement By Objective is more inclusive method where employee get involved in goal setting. In this method they are rated by performance efficiency , profit and loss.
ReplyDelete