Individuals are then rated by their supervisors or managers. General Electric GE used perhaps one of the most well-known forced ranking systems. As with other methods, it also suffers from some limitations as catalogued below: i Setting Un-measurable Objectives: One of the problems MBO suffers from is unclear and un-measurable objectives set for attainment. It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviours. The review process involves the following activities: a Identify areas of inter-rater disagreement. Obviously, there is room for bias with this method, and it may not work well in a larger organization, where managers may not interact with each employee on a day-to-day basis. Then, average effectiveness ratings for each incident are determined to decide which incidents will be included in the final anchored scales. The Practice of management. It is also highly simple to understand and easy to apply in appraising the performance of employees in organisations. In case the employee is not able to achieve the pre-established goals, then management decides on a new strategy or policy that should be undertaken for the accomplishment of unattainable goals. Result oriented. In other worlds, in degree feedback appraisal system, an employee is appraised by his supervisor, subordinates, peers, and customers with whom he interacts in the course of his job performance. This consists in simply putting a man in a rank order.
There can be three categories established for employees: outstanding, satisfactory and unsatisfactory. Result oriented. It is claimed that the Behaviourally Anchored Rating Scale method is one of the most equitable technique compared to other methods of appraisals. General Electric GE used perhaps one of the most well-known forced ranking systems.
Checklist Scale A checklist method for performance evaluations lessens the subjectivity, although subjectivity will still be present in this type of rating system. You may find that for some more routine positions, such as administrative assistants, another method could work better.
Then when it is time for the performance evaluation, the manager and employee sit down to review the goals that were set and determine whether they were met.
It involves using situational exercises like an in-basket exercise, role-playing incident, business game and many other similar exercises. The courts found no correlation between age and the lowest-ranking individuals, and because Exxon had a set of established ranking criteria, they won the case.
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