Staffing defined, страница 9

A single problem faces both the manager and the employee. Rather than leading to dialogue about performance, the system can result in the two parties trying to defend interpretations of performance. Because of the lack of specific criteria (described factors of performance) and of a specific rating scale (increasing or decreasing descriptors of performance), the subjective appraisal system can result in the citing of critical incidents, comparisons to other employees, and judgments based on personality traits (positive and negative).

Objective Performance Appraisal System. The second type of performance appraisal system is objective in design. Both the criteria for evaluation and the method of measurement in an objective performance appraisal are specific. The criteria (production, turnover, quality control, absenteeism, and safety) are specific in nature. The rating scale has been replaced by specific goals or objectives to be reached in performance. The production goal, for example, is 15.000 units per month.

The employee knows what criteria the performance appraisal will be based on and what the measures will be (how performance measures up to goals). In this system, the employee and the manager establish goals together. They know what performance is based on and how it will be measured. Feedback is provided through reports. The employee knows where he or she stands at all times.

Methods of Appraisal

The discussion to this point has centered on two methods of perfomance appraisal-manager appraisal of the subordinate and subordinate self-appraisal. In addition, peer appraisal can be used in a subjective appraisal system: The employee's peers are asked to evaluate him or her. This information is used as part of the manager's appraisal of the subordinate. Another method is upward appraisal, in which the subordinate evaluates the effectiveness of the superior, using a subjective system. Neither the peer nor upward system has had wide adoption.

7.  IMPLEMENTING PERSONNEL DECISIONS

Through the process of performance appraisal, management acquires information to make employment decisions. For example, management can reward positive performance with an increase in pay by an amount based on the company's compensation program.

Other possible uses of the appraisal include decisions on promotions, transfers, demotions, and separations. These employment decisions not only affect employees but also influence the operation of the staffing process. They result in individuals changing jobs or leaving the organization and in new jobs being created. Each possibility is examined next.

v Promotions

One employment decision is a promotion. A promotion is a movement by a person into a position of higher pay and greater responsibilities. Promotions reward competence and ambition. They act as incentives to perform above the average in one's present job and to expand one's abilities, aptitudes, and knowledge through additional training and development.

Promotion decisions, even though they should be rewards for performance, are often influenced by other factors. Federal and state laws affect the ways in which promotions can be made. Affirmative action programs may dictate who or what kind of person gets the promotion. Perhaps promotion of the best qualified and most eligible will be blocked by seniority rules and the union agreement. Regardless, promotions should be based as much as possible on performance.

v Transfers

A second employment decision is a transfer. A transfer represents a lateral move from one position to another that has similar pay and responsibility levels. Although there may be small differences between the jobs, they are relatively inconsequential. Management uses transfers most often to fill temporary vacancies. Sometimes, positions are created as a reward to allow a person to intern with or understudy another, higher job. These "assistant-to" positions help the transferee study the higher job up close and under the direct tutelage of the person who occupies it. Such moves are common when management is preparing to replace a person who is about to move up or out of the company.