Performance Appraisal
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When working with Strategic relevance in performance appraisals, there are quite a few challenges when it comes to developing a system that works for the company as a whole. When a company adopts a policy each department must adopt a policy or new guideline to help the company meet that goal. Say for example a company decides in order to beat out their competition they will offer a guaranty on their product for 5 years. In order to make sure the company sells that product and that it will work for 5 years. The assembly department must add extra steps to ensure the product is properly assembled. The purchasing department must make sure the parts they secure for the product are the best quality and can indeed last the 5 years the company is guaranteeing it will. Each department must assist in backing up the policy. Now as far drawbacks go, what if the product contains cheap parts that wont last the 5 years? What if the company attempts to upgrade to better part but the cost now goes up and the company cannot be competitive because their competition can still build it and not offer the guarantee. The effects on employees and managers could be catastrophic, the company could decide to go forward and buy the better quality but to keep the cost low and “decide to trim the fat” many employees could lose their jobs in an effort for the company to sell more products.
With Criterion Contamination the manager must take into account each different employee and there operating station. They have to make sure that each employee is on a level applying field when it comes to evaluating them. Say the manager is rating employees based on their computer knowledge; however, the manager does not take into account that Edna has Windows XP and when he rates Joe, Joe has Windows 2007. The manager in order to fair to both employees must take into consideration the systems each is working with. Both systems can do the same functions but it will take Windows XP longer to complete because there will be more steps to complete as the program is older. If the manager does not take this into account he could rate Joe and give him a really good score because he completed the task very quickly. But at the same time he could give Edna a very low score because it took her so long to complete the same task. The playing field for each employee should be the same and it is up to the manager to make sure that the process is fair and thorough.