DO YOU AGREE WITH THE CHIEF EXECUTIVE’S VIEW THAT PERFORMANCE APPRAISAL SHOULD BE DISCONTINUED

CONTENTS
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GROU P 4
PREAMBLE
With a staff worker, or you are head of an organization, a department within the
organization, the staff assessment is an important work. However, the choice of
appropriate methods for evaluation of business goals is difficult. Against targets such
as promotion, pay rise, the company generally applicable rating scale is the most
appropriate method. In contrast objective assessment to help employees work
effectively, the management objective method applied. Sometimes disagreements
occur in the evaluation of the company requires employees to have the answers and the
most reasonable measure. Therefore before solving exercises given situation, we first
need to understand overview of the evaluation, personnel evaluation process.
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TOPIC
“Unique Funds Ltd, is a reputed finance company having 10 branches in different
parts of the country. Its staff includes 290 operative employees and 70 excutives.
The company has a performance rating plan under which the staff members are
rated at the end of each financial year by a commitee of two executives by means of
graphic scale. The qualities considered are: Responsibilities, initiative,
dependability, leadership potential, cooperative attitude and community service.
After the performance is evaluated, the ratings are discussed with the concerned
employees by their immediate boss and are used to counsel them and arrange
further training for them. The ratings are also used for increments and promoting.
Recently, two employees working at the Head Office have been denied annual
imcrements due to comparatively low ratings. They have made a representatiom to
the Chief Executive of the company expressing their dissatisfaction with the
appraisal system and insisting that community service is not a part of their job and it

should not influence their ratings. The employees seem to organize a union and
demand that annual increments should be granted automatically. The Chief
Executive feels that performance appraised is a dangerous source of friction and so
it should be discontinued altogether”.
 QUESTION: DO YOU AGREE WITH THE CHIEF EXECUTIVE’S VIEW
THAT PERFORMANCE APPRAISAL SHOULD BE DISCONTINUED?
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CHAPTER 1
BASIC KNOWLEAGE ABOUT EMPLOYEE EVALUATION
1. The concept of employee evaluation
Employee evaluation is a systematic assessment and the implementation of official
work of staff in relation to comparable standards have been developed and discussed
the evaluations for staff
2. The goal of the staff appraisal
 For employees: finishing the job done in the next work cycle
 For managers: Based on the evaluation results to make staff personnel
decisions.
3. The employee evaluation methods
 Methods of assessment scales graphics
 Checklist method
 Method of recording important events
 The method is based on the behavior scale
 Comparative method
 Narrative method
 Management approach with the goal
4. The requirements of the employee evaluation system
 The appropriateness
 Susceptibility
 Reliability
 The practicality

5. The basic elements of employee evaluation system
 . Construction work performance standards
 Measure job performance of employees in accordance with the construction
standards
 The resulting response assessment staff: staff, management staff, personnel staff
6. The common mistake when evaluating employees
 Bias error: you need to separate job evaluation to assess human nature by staff
that is not the nature of your work at this time. Let's goals based on the work that you
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and your employees have agreed, frankly acknowledged that the results of the work
they created for the organization. You really mind whether the relationship between
you and any employee in any situation. Whenever you need staff assessment principles
in mind: record results pre-work solutions proposed changes later
 Average fault trend: the evaluation concerns deal with reality, do not want to
offend other people. Tend to evaluate everyone in the average
 Error extremes: This error occurs when the evaluation proved too strict or lax
assessment
 Error due to the impact of the most recent events: the opinion of the evaluation
may be dominated by the last acts of the employee occurred, assess the results of your
work are not evaluating the merits of staff. Be wise to separate emotions from the job.
Evaluation results recently viec- leverage Help Desk promote the ability of employees
to contribute under quyen- but if you do not respect the principles of assessment will
make your employees dissatisfied and leave you anytime
 Error biases: let your employees self-assessment of their work results. At the
same time you also need to have an assessment of your own personnel on the
manager's perspective. Certainly when comparing the two assessments will be
differences in perspectives and expectations. when it is your task negotiation, analysis
to reach a consensus with his staff about the differences. You need to skillfully use
negotiation skills and communicate their results to assess true work of staff, as well as
motivate, encourage them to strive for more in their work. Do not let his prejudices

influence the assessment
7. Construction employee evaluation program
 Selection and design assessment methods
 Selection of auditors
 Define cycle assessment
 Interview assessment (feedback rating)
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CHAPTER 2
CASE SITUATION
“Unique Funds Ltd, is a reputed finance company having 10 branches in different
parts of the country. Its staff includes 290 operative employees and 70 excutives.
The company has a performance rating plan under which the staff members are
rated at the end of each financial year by a commitee of two executives by means of
graphic scale. The qualities considered are: Responsibilities, initiative,
dependability, leadership potential, cooperative attitude and community service.
After the performance is evaluated, the ratings are discussed with the concerned
employees by their immediate boss and are used to counsel them and arrange
further training for them. The ratings are also used for increments and promoting.
Recently, two employees working at the Head Office have been denied annual
imcrements due to comparatively low ratings. They have made a representatiom to
the Chief Executive of the company expressing their dissatisfaction with the
appraisal system and insisting that community service is not a part of their job and it
should not influence their ratings. The employees seem to organize a union and
demand that annual increments should be granted automatically. The Chief
Executive feels that performance appraised is a dangerous source of friction and so
it should be discontinued altogether”.
 QUESTION: DO YOU AGREE WITH THE CHIEF EXECUTIVE’S VIEW
THAT PERFORMANCE APPRAISAL SHOULD BE DISCONTINUED?
It can be seen that the purpose of the company is promoted to staff salaries and
bonuses, the company has applied evaluation methods to measure graphics

1. Method of assessment scales graphics
 Definition: a method assessing the job performance of employees based on the
assessment criteria table with the same form.
Depending on the objectives to be evaluated that the human resource management
and direct management department staff will provide assessment items then building
assessment form with the assessment criteria and specific scales , point scale from low
to high or from poor to excellent and the transfer of staff assessment. Evaluation
Officer will be based on the evaluation board to the point, commenting on the level of
job performance of employees is evaluated.
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Form example of graphical methods of assessment :
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2. Advantages and disadvantages of graphical methods of assessment
 Pros:
 The biggest advantage of the method is evaluated for point of this method
clearly structured: The goals of standardization and scale allow clear assessment of staff
capabilities across the enterprise - can be used to compare the capacity of the entire staff.
 Demonstrate equality in the evaluation process of all staff: for all staff undergo
the same assessment process with the same criteria, can be considered as a measure of
a person's job performance members of the Enterprise
 Simple, easy to understand, easy to use as the standard and scale very clear,
easily understandable tool for the evaluation and assessment methods so this is usually
widely used in the business small and medium enterprises
 Cons:
 There is the general assessment criteria for all employees: because the
employee has the characteristics of different tasks that should be, considering the
particularity of the work when building table gauge price. For example, the evaluation
criteria for innovative employee work processes can not be assessed accurately.
 Select all the criteria for the evaluation process: Because when developing
assessment criteria (characteristics should evaluate employees) and assess the scale of

the design sought to summarize all of the signs effects related to the job performance
of employees. They are trying to correct all signs of achievement and good jobs are
taken into consideration and evaluation forms, and all signs are wrong and irrelevant
discarded. But job performance of an employee may be subject and the criteria are not
included in the selection panel to assess
 As this situation has two staff feel satisfied with the results of the evaluation of
the company because they found they really did a good job on his part was not the
company should evaluate the results of the community service component because it is
not in their job
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CHAPTER 3
SOLUTION
 According to our opinion, the director should continue to organize the annual
review because this is a very important part of the company's ability to know the staff
and the rational for their work. For employees working fine, the company can raise
wages, reward to encourage them to maintain and develop the capacity to continue to
work and strive for the company. For employees who work less well, the company will
seek out weaknesses motivate employees, opened training courses to help them
improve their skills and work effectively
 To be able to design any models are rated good, the building must be aware of
the following principles:
 Encourage discussion of the evaluation process. Many studies have shown that
people are usually felt assess satisfaction with the evaluation results than if they had
the opportunity to exchange and discuss the performance results of their own work
freely and frankly. Also, when talking about his own accomplishments, people are still
feeling assess the fairness of the evaluation process
 The comments must be constructive. One important thing that people need to
recognize our evaluation comments critical nature of the assessment is constructive,
aimed at helping them overcome the current difficulties and to improve outcomes
analysis of their own work in the future. The assessment will be less worried about the

criticisms and found the criticisms are helpful, if they found the intention of
constructive evaluation
Conversely, the lack of constructive comment (comment is not clear, do not be
communicated to the person assessed, unfair or not shown properly) will result in
angry state, resentment, tension straight and contradictions in their work, as well as the
people do not want to be evaluated and resistance to change, not recognizing
weaknesses, and ultimately worse performance work
 Respect building targets. Develop targets is an important factor in the
motivation of the person to be evaluated. The target of the effort to encourage
employees to focus attention, increase persistence, persistence, and encourage
employees to explore new methods of working and better
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The usefulness of a target as a source of stimulating motivation is one of many
management theories are many supporters the most. It is also clear that these targets
are specific, and are difficult to accept staff will make employees achieve higher job
performance than those achievable goals, vague (as if trying best) or no targets at all
 The assessment must be believed. To get the assessment results accurately
reflect the employee's job performance, the evaluator must be qualified and have the
knowledge and credibility. Furthermore, the evaluator must feel comfortable with
methods, techniques and evaluation are applied to understand the work and
achievements of staff.
When these conditions are met, the person will feel evaluate the assessment
process is accurate and fair. Therefore, they will easily accept feedback from the
assessors and willing to change.
Besides can see the staff assessment of the company is still lacking to get the
most fair assessment that the company should adopt a variety of methods such as
method based on the behavior scale (BARS), comparative assessment method
because there may be multiple methods of assessment job performance. However, so
far no method has been assessed to be perfect. Each method has some advantages but
also some disadvantages. To evaluate the system to promote maximum effectiveness,

managers must understand the nature of each method, and apply selected / adjusted to
suit the specific conditions of your Business. It is important for managers to keep a
number of principles as described in the process of building rating system.
END.
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DOCUMENTATION REFERENCE:
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