(Solved Homework): As a manager, you have a number of choices to make regarding your evaluation approach to…

As a manager, you have a number of choices to make regarding your evaluation approach to managing the performance of your employees. First, you can use a ranking-based approach such as a straight ranking, forced distribution, or paired comparison. Second, you can use an attribute-based approach that focuses on evaluating your employees’ traits via a graphic rating scale or your employees’ behaviors via behaviorally anchored rating scales and behavioral observation scales. Finally, you can use a results-based approach that measures direct employee outcomes or uses a management by objectives approach.

1- What are the advantages and disadvantages of using ranking, absolute-trait, absolute-behavior, and results-based approaches to evaluate your employees’ performance?

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2- When should each approach be used? When should they be avoided? Why?

Expert Answer

Ans. 1:

Method Advantages Disadvantages
Ranking Easy to justify and clear indication of top performers can be gauged. Not a fair method to rank all employees of various educational backgrounds and different designations on 1 single scale.
Absolute-Trait A better judgement is achieved as specific traits like handling pressure, team handling skills etc. are judged. It is very subjective and chances of conflicts between employees and between employees and management increases.
Absolute Behavior Every employee gets a fair chance to get judged and his/her behavior compensate for lack of performance at times. The results are very biased as the employees who are favourite to the bosses get promoted.
Result Based The best of all the methods as it is very objective and can be measured by each and every employee. The employee becomes narrow minded and thinks of only his/her product and not entire organization as a whole.

Ans. 2:

  • Ranking and result based approach should be used whenever the results are very objective and are not debatable i.e. it becomes easy to justify and credibility of the performance analysis increases. It should be avoided when employees of different backgrounds are getting judged and ranking on a single scale is incorrect and unfair and also result based cannot apply here as the expectations of the organization is different from different employees.
  • Absolute behavior and absolute trait are the approaches that should be used when different educational background employees are to be judged and in cases where subjectivity can be accommodated but quality of the appraisal process cannot be compromised. They should not be used where subjectivity cannot be adjusted and concrete results are expected.

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