Posted: September 6th, 2023

Effective Performance Management Appraisal Methods – Traditional vs. Modern Approaches

Effective Performance Management Appraisal Methods – Traditional vs. Modern Approaches

For this assignment, you are tasked with drafting a paper of at least five (5) full pages of content for an organization of at least 1,000 employees. The topic for this assignment is effective performance appraisal methods. For this assignment, you are the corporate HR compensation manager. As such, you oversee job evaluation and classification, performance measurement, and compensation. For purposes of your research, you may choose from three different industries:

Manufacturer of Kitchen Appliances
Fast Food Franchise – Deli Sandwiches
Information Technology – HR Software
Based on the industry selected, consider three or more job categories most commonly employed at your organization. Based on these job categories, which performance appraisal methodology would be appropriate, in your opinion, for each job category identified and why? Whatever you decide, you must explain your choice(s) by job category and justify your answer(s). Your choices are:

Traditional Methods of Performance Appraisal

Critical incident Method

Forced Choice or Ranking Method

Free Form Essay Method

Graphic Rating Scales

Paired Comparison Method

Modern Methods of Performance Appraisal

360-Degree Feedback

Assessment Centers

Behaviorally Anchored Rating Scales (BARS)

Management by Objectives (MBO)

Self-Evaluation

To be successful, students are required to research and evaluate each of the typical performance appraisal methods listed above. Bear in mind that there is “no one size fits all” performance appraisal method for an organization. Performance appraisal methods used by organizations depend on the industry, the internal classification of the jobs, and the use of performance measurement systems in determining one’s level of productivity and, in turn, level of compensation. Thus, one’s eligibility for recognition and financial reward(s) depends largely on the performance measurement process selected by an organization. This is because an organization hires employees in a variety of job categories, some of which are hourly, while others fall into technical, professional, or management jobs. As such, performance appraisal methods will vary in order to capture the most realistic performance appraisal elements that would apply for a given position.

Helpful Tips:

You must support your ideas, arguments, and opinions with independent research, and include at least five (5) supporting references or sources(Note: do not use dictionaries, encyclopedias, Wikipedia, unknown, undated, or anonymous sources, such as brief articles from websites or URLs). In addition, due to the dynamic nature of HRM, your references must be drawn from peer-reviewed journal articles published within the last five (5) years. Significant points will be deducted from assignments that fail to follow these guidelines.

Your grade will be based upon:

Ability to follow instructions
Depth, scope, and applicability of the research that you conduct.
Critical thought and analysis.
APA format (APA, 7th Edition).
Professionalism.
_________________
Effective Performance Management Appraisal Methods – Traditional vs. Modern Approaches

Introduction:
Performance appraisal is a critical aspect of human resource management that helps organizations evaluate employee performance, identify areas for improvement, and make informed decisions about compensation and recognition. Selecting the most appropriate performance appraisal methods is crucial for ensuring accurate and fair assessments. This paper aims to discuss and compare traditional and modern performance appraisal methods in the context of three different industries: manufacturer of kitchen appliances, fast food franchise specializing in deli sandwiches, and information technology (IT) HR software.

Job Categories and Appraisal Methodologies:

Manufacturer of Kitchen Appliances:
a. Production Line Workers:
For job categories involving production line workers, a traditional performance appraisal method such as the Graphic Rating Scales (GRS) would be suitable. GRS allows supervisors to evaluate employees based on predefined criteria, such as productivity, quality, and adherence to safety guidelines. This method provides a systematic and consistent approach to performance evaluation.

b. Research and Development Engineers:
Modern performance appraisal methods like Behaviorally Anchored Rating Scales (BARS) would be more appropriate for job categories like research and development engineers. BARS combines the benefits of qualitative and quantitative methods by linking specific behaviors and performance indicators to different rating levels. This approach provides a more detailed assessment, capturing the unique aspects of engineering roles.

Fast Food Franchise – Deli Sandwiches:
a. Counter Service Staff:
For job categories such as counter service staff, a traditional method like the Critical Incident Method can be effective. This method focuses on identifying critical incidents where employees demonstrate exceptional customer service or encounter challenges. Supervisors can collect and review these incidents to provide targeted feedback and recognition to the staff.

b. Shift Managers:
Modern performance appraisal methods like 360-Degree Feedback would be suitable for evaluating shift managers. This method involves gathering feedback from multiple sources, including subordinates, peers, and superiors. Given the role’s leadership responsibilities, obtaining input from different perspectives provides a holistic view of the manager’s performance.

Information Technology – HR Software:
a. Software Developers:
For job categories like software developers, a modern performance appraisal method such as Management by Objectives (MBO) would be appropriate. MBO allows employees to set specific objectives aligned with organizational goals and receive feedback based on the achievement of those objectives. This approach empowers employees to take ownership of their performance and promotes a results-oriented culture.

b. Sales Executives:
Assessment Centers can be a valuable performance appraisal method for job categories like sales executives. Assessment Centers involve a series of job-related simulations, exercises, and role plays designed to assess individuals’ competencies and skills. This method provides a comprehensive evaluation of sales executives’ abilities in areas such as negotiation, communication, and relationship building.

Justification and Research:

Traditional Methods of Performance Appraisal:
a. Critical Incident Method: The Critical Incident Method is suitable for counter service staff in the fast-food industry as it focuses on specific incidents related to customer service. A study by Riggio et al. (2019) found that this method provides valuable feedback and improves employee performance in customer-facing roles.
b. Forced Choice or Ranking Method: The Forced Choice or Ranking Method may not be suitable for the selected industries as it involves comparing and ranking employees against each other. This approach can create a competitive environment and may not be conducive to teamwork and collaboration.

c. Free Form Essay Method: The Free Form Essay Method may be time-consuming and subject to evaluator bias. It may not provide structured and consistent feedback required for fair performance evaluations in large organizations.

d. Graphic Rating Scales: Graphic Rating Scales are widely used in various industries due to their simplicity and ease of implementation. They provide a quantitative assessment of employee performance based on predetermined criteria. A study by Chandrase

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