Business: Management and Performance Appraisal Essay

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Performance Appraisals

Cynthia Malone

BUS303

1/7/13

Performance appraisal is the process which employee performance is assessed, feedback is provided to the employee and corrective action plans are designed. (Youssef, 2012) Performance appraisal is a well thought out plan to ensure the employee of their strengths and weaknesses regarding the position they are in. Also it is used to determine job placement decisions and promotions. There are different types of performance appraisal methods. Some of these includes; Performance Ranking Method, Essay
Evaluation Method, and Management by Objective Method. I will go in detail on these methods later in this paper. Performance appraisals can provide necessary information to ensure training needs and provide initiatives to meet those needs.

Performance Ranking Method
The ranking system shows a small percentage of overachieving employees, a large number of average workers and a small amount of underachieving employees. (Deeb, 2005) This system ensures that employees that deserve recognition will not be taken for granted when it comes to documenting success. This will help the employer to know who to rely on when difficult assignments come up. But there are some disadvantages with this method. Identifying the performance accomplishments of an employee can be clouded by how well liked they are in the group. Then you can have undesirable competitive behavior when the employees at the top ranking are earning more financially. So if all the employees are working at a satisfactory level or above you will have to choose the one that is ranked at the lowest levels.

Essay Evaluation Method
In this method the appraiser prepares a written statement about the employee performance. This method describes specific strengths and weaknesses in job performance. It also suggest courses of action for the problem area. The employer may place whatever degree of emplasis on issues that they feel appropriate. The disadvantage to this method is the time consuming of preparing this appraisal.
The writing skills of employers can upset the whole process.

Management by Objective Method
The system of management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual's
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