Indeed, making a business successful in a particular setting demands crucial and detailed studies and examination of the factors that will generate the best results that will serve the aims and objectives of the company. In this light, owners of big business organizations operating in a competitive business environment should be in constant look out with its competitors and the overall status and events in the industry. Taking advantage of the opportunities and intensifying the strengths while minimizing the risks and weaknesses of a business firm greatly helps in predicting the success in business enterprise.
Graphic rating scale can be used in appraising the performance of an organization's employees. Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked. Another method is the Alternation ranking method - An appraisal method that aims at combining the benefits of narrative and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance. (bars) .
Paired comparison method - Keeping a record of uncommonly good or undesirable examples of an employees work-related behavior and reviewing it with the employee at predetermined times. (critical incident). While in forced distribution method, uses a scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her performance for each trait. Similar to grading on a curve; predetermined percentages of rates are placed in various performance categories. (forced distribution) Management by objectives (MBO) - Involves setting specific measurable objectives with each employee and then periodically reviewing the progress made.
Management By Objectives (MBO), is a traditional management approach to directing the efforts of managers and the organizational units for which they are responsible. It is intended to motivate stronger performance on the part of managers and employees through goal setting, participative decision-making, and objective feedback (Rodgers and Hunter, 1992). In its broadest construction, it is seen as a planning and control system which is designed to encourage self-control over an individual's work while assuring that managers' efforts are aligned with the organization's overall goals and priorities. According to Swiss (1991), the heart of a full-fledged MBO process is the negotiation between a higher level manager and a subordinate manager of a performance contract that has the components such as major objectives to be accomplished by the subordinate manager within specified completion dates, resource commitments to support these objectives, action plans and milestones for accomplishing these objectives, periodic meetings of the manager and subordinate to review progress and make midcourse corrections if necessary, and an assessment at the end of the MBO cycle of the subordinate's performance, which should feed into both personnel appraisal processes and MBO planning for the next cycle. Swiss (1991) characterizes MBO as being particularly useful for providing direction and control over project oriented agencies where workloads shift and priorities tend to change frequently, as opposed to another major management approach, performance monitoring, which may be more appropriate for managing the continuing operations of organizations whose outputs are relatively stable.
LearnInMotion.com: The Performance Appraisal Jennifer and Mel disagree over the importance of having performance appraisals. Mel says it's quite clear whether