QUESTION 10- When developing a PMS, managers need to choose between various option and features of design available to them. Outline at least four such options. Your discussion should also outline the strength and weaknesses of the various performance management methods.

360-degree Feedback

360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.  The appraisers may be the colleagues/friends, for instance.

·          Advantages

Ø  360-degree Feedback Disadvantages Feedback is perceived as more valid and objective, leading to acceptance of  results and actions required

Ø  Individuals get a broader perspective of how they are perceived by others. (supervisor, customer, and colleague)

Ø  This system increase awareness and relevance of competencies

Ø  Employee has a more rounded view of their performance

Ø  Increased awareness by senior management that they too have development need

o   360-degree Feedback Disadvantages

Ø  Time consuming and resource intensive

Ø  People may not always be frank or honest feedback

Ø  Too much bureaucracy

Ø  Lack of action following feedback

Ø  Over –reliance on technology

Ø  People may be put under stress in receiving or giving feedback

Critical Incident Method

The critical incident for performance appraisal is a technique in which the chief marks down positive and negative performance behavior of workers throughout the performance period.

o    Advantages

Ø  The appraiser records all events to illustrate what the employers has failed to do or done.

Ø  A method where the manager write down positives and negatives performance behaviors of employees throughout the performance period.

Ø  Each performance appraisal will be based on logs that are in the one’s evaluation form and will be evaluated as such.

Ø  The manager periodically records critical incidents of the workers behavior and maintains logs on each employee

Ø  At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers’ performance.

Ø  The critical incidents file of performance appraisal is a form of documentation that reflects all data about employee performances.

Disadvantages

Ø  Critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates.

Ø  Negative incidents may be more noticeable than positive incidents.

Ø  It results in very close supervision which may not be liked by the employee.

Ø  The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it.

Ø  The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session.

Forced ranking Method

Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution.

o   Advantages

Ø  They force reluctant managers to make difficult decisions and identify the most and least talented members of the work group.

Ø  They create and sustain a high performance culture in which the workforce continuously improves.

Ø  A method where the manager write down positives and negatives performance behaviors of employees throughout the performance period.

o   Forced ranking Method Disadvantages

Ø  They increase unhealthy cut-throat competitiveness

Ø  They discourage collaboration and teamwork

Ø  They harm morale

Ø  They are legally suspect giving rise to age discrimination cases.

Weighted Checklist Method:

This method contains questions and these questions may be weighted equally or certain questions may be weighted more heavily than others.

·         Advantages

Ø  This method describes a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs.

Ø  This method helps the manager in evaluation of the performance of the employee.

o   Forced ranking Method Disadvantages

Ø  The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions.

Ø  This method also is expensive and time consuming.

Ø  It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employee’s characteristics, contributions and behaviors.