Modern Methods of Performance Appraisal in Case Study : Money4u
Implementing Modern Performance appraisal in Money4U
In the case study, we understand that Penny wants Sam to implement performance management in Money4U and review all Human Resource policies that were put in placed previously.
First we look at the advantages of modern performance appraisal and why Sam should apply these methods in the organisation.
Modern methods concentrate not only on organisational development and success, but as well develop individuals in an organisation. Through the suitable method, it improves communication between the superior and subordinate. This allows any constructive suggestions and improvement to be sounded and heard. Moreover, modern methods as compared to traditional methods are more formal and structured. Although it may be more time consuming to apply modern methods, but the end result will be more effective as compared to traditional methods.
In Money4U case, Sam can first introduce the Management by objectives (MBO) method to all existing levels in the organisation. Where the superior of each level or department will formally discuss with their subordinates on the organisational and individual goals. This method is applicable to Money4U as it can replace the old traditional way of performance appraisal. MBO also encourages motivation in its employees as it allows them to be part of setting and achieving the organisational goal. MBO can be executed in 2 levels, first level by which the board of directors and the managers of the various department. They have to identify first what the organisation wants to achieve before bringing these organisational goals to the next level of managers and subordinates for them to discuss on how achieving these goals will benefit both the organisation and its employees. When organisational goals and objectives are fixed, it has to be communicated to all levels in the organisation. By taking part in process of