Company ZYX is a small consulting organization with 40 employees. The manager who is responsible for employee performance appraisal has a particular way of conducting it. He has a firm belief that formal performance evaluations (with developed criteria, ratings, formal discussions etc.) are an absolute waste of time and should never be done. Instead, he thinks that he is well familiar with each employee’s work and achievements, and he can easily tell “what they are worth” by interacting with them and observing their performance on a daily basis. As a result, the manager periodically stops at employees’ desks, talks to them, asks about their progress on projects and discusses other work-related issues. Employees have a lot of daily feedback and seem to like it. However, no written performance appraisal forms are ever filled in. When it comes to pay raises and promotion, the manager makes his decisions and announces them to employees during meetings. Do you think this manager’s performance appraisal is sustainable in the long run? Explain your answer? Would you suggest any changes in the manager’s approach to performance appraisal? Explain.

Do you think this manager’s performance appraisal is sustainable in the long run? Explain your answer?
The present approach is not at all long-term focused. The manager is using his own perception (which may actually be correct) in order to evaluate his employees. The case facts suggest that the manager is following a supportive leadership style in helping out the employees to reach their daily objectives. But this is not the goal of the performance appraisal process. The ultimate objective is to facilitate a pathway for the employees’ development in order to fulfill their personal goals and organization’s goals simultaneously.
The approach followed by the manager will let the employees do their daily routine work. But the manager and the employees will completely out of the track of the employees. So, the intended objectives of the organizations will not be achieved. They will not have any idea of what is being expected from them, where they are, and how to advance further. Moreover, their pay raises and promotion will remain dependent on the manager’s bias. Quite obviously, when some other manager will take the charge in this department, he/ she will no earlier track record of the employees’ level of potential and performance and will start from zero.
Would you suggest any changes in the manager’s approach to performance appraisal?
The standard steps of performance appraisal must be followed. In the first step, the expectation from the employees must be shared with them and recorded. The manager needs to make sure that the appraiser and the appraisee are o the same platform when it comes to the understanding of the required expectation. The next process is to devise a fair and objective evaluation process with minimal intervention of appraiser’s bias. The appraisals should be planned process and need to be conducted at a regular frequency (monthly, quarterly, half-yearly, and annually). The employees should get a feedback of their present level based on the initial expectation. Finally, the appraiser and the appraisee must jointly find ways to improve the present level by devising measures such as reward & recognition, training $ development, transfer, projects, and so forth.
 
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