PERFORMANCE EVALUATION

Performance Evaluation

Table of Contents

INTRODUCTION3

COMPANY BACKGROUND4

Major Products And Services6

PERFORMANCE MEASUREMENT IN GENERAL7

PERFORMANCE APPRAISAL METHODS9

A) RATING SCALES9

Essay Method12

Management by Objectives13

CRITERIA OF EVALUATING PERFORMANCE APPRAISAL IN IKEA15

PERFORMANCE APPRAISAL IN IKEA17

Advantages and Disadvantages19

Effectiveness in Improving Employee Performance20

CUSTOMER FEEDBACK TOOLS IN IKEA GROUP21

IMPROVEMENT SUGGESTIONS25

CONCLUSION25

REFERENCES27

Performance Evaluation

Introduction

Performance evaluation is a necessary and benefical process, which provides annual feedback to staff members about job effectiveness and career guidance. The performance review is intended to be a fair and balanced assessment of an employee's performance. The meaning of the term "performance management" has changed over the years. In the past it was often taken to mean rating employees using a trait-based instrument - one looking at factors such as neatness, punctuality, - etc., as opposed to focussing directly on work output. The evaluation process also tended to be secretive. The employee did not participate and was not told what rating he or she received. This style of performance appraisal is no longer considered good practice. There is general agreement that performance management should be task-oriented, based on results as opposed to personal traits, and measuring results against pre-defined goals and targets participative: involving the employee as well as his or her supervisor, both in the setting of goals at the beginning of the rating period and in appraising results at the end developmental: the evaluation process should do more than rate employees - it should assist them to improve their performance, and to identify any training or other support that may be required to this end.

Many countries have introduced performance management processes along these lines. Several countries have experimented with performance-related pay. One approach is to make salary increments or progression past some point on the pay scale conditional on good performance. The disadvantage of such a system is that it can revert very rapidly to a formalistic process in which virtually everyone gets their increment. Moreover, it does not permit any distinction between adequate performers and outstanding ones. 

Company Background

IKEA offers a wide range of home furnishing product items of good design and function at prices so Low that the majority of people can afford them. Originally targeting the young buyers, who often looking to furnish their first apartments. 1953 in Almhult sales of IKEA were mail order business with 40-80 times larger turnover of the average furniture. (95.23% of the SKr 16.8 million turnovers were from mail-order business). In 1965 Kamprad opened new outlet in Stockholm on the outskirt of the city with self service concept facilitated by wide distribution of informative catalogs and the use of explanatory tickets on display merchandise, the knock down kits that allowed stocks of all displayed items to be kept in store warehouses in flat boxes with large parking lots that brought the cash and carry concept to furniture retailing. IKEA is a leader of low price furniture. 1970s, growth in the Swedish furniture market was stagnating. IKEA was expanded internationally.

In Sweden, nature and the home both play a big part in people's ...