Chapter 10: Evaluating Individuals

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Western University
Management and Organizational Studies
Management and Organizational Studies 3342A/B
Jody Merritt

MOS3342 Chap 10 Pg 360387 Evaluating IndividualsCS Tying Bonuses to Performance Ratings at RBCRBC created its QPIQuality Performance Incentive plan which applied to all emps The annual bonus pool depends on if the bank meets certain objectives and then is split among the emps based on their performance ratings Less than satisfactory emps usually dont receive anySatisfactory receives 100Higher than satisfactory receives 130 etc Different salary bands receive different maximums Performance appraisal A method to asses the overall performance levels of individual emps 361Experiences and Reasons for Performance AppraisalCS Pratt and Whitney Jet engine manufacturer were dissatisfied with their performance appraisal system like many companies kept changing it Experience with Performance Appraisalst 21 century 90 of HR managers felt their PA system should be changed or abolished 95 emps 90 of medlarge CND firms use PA systems Companies Want to use PA systems but many cant find the right fit Why Do Performance Appraisals4 main reasons1 Administrative reasons Identifying individuals who are not performing to standards to improveremove them or to identify who is worth keepingpromoting Useful feedback to help emps understand 2 Developmental Reasonswhat the employers needs in their performance and strengths and weaknesses to improve Helps supervisors think systematically about 3 Supervisory Reasonsemp performance and encourages communication with emps4 Symbolic Reasons To give the impression management cares about good emp performance Pitfalls in Performance Appraisal Reliability Two different judges will come up with the same scoreValidity Measures what its suppose too The highest rated emps are in fact the best performers Should two measures be usedSome argue that two different performance measures should be used one developmental feedback for emps and one administrative for employers Creates a defensive atmosphereLinking pay to appraisals makes sure everyone will take it seriously however with money involved the appraised often feel the need to defend and it is not a open communication ground for improvement May not create accurate evaluations 1 The system may not allow the appraisers to make accurate assessments 2 Accurate measurement may not be the intention of the appraiserIntentional Inaccuracies in Appraisals Supervisors may use the appraisal system as a tool to achieve their own goals not a true assessment of the emps Help certain ppl succeed and hold back others
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