Organizational Development Evaluation

Abstract

Performance Management is crucial to organizational success in many aspects. Strong performance evaluation practices rely on developing an effective management policy and actions that create strong employee commitment to the organization. Employee development is a by-product of strong performance management practices, that stems out of the right policy making and decisions that aim to create a sound overall organizational culture.

Table of Contents

Introduction1

Discussion and Analysis1

The Performance Measurement System2

Role of Effective Leadership in Employee Evaluation3

Advantages and Disadvantages3

Appraisal process4

Benefits of Performance Evaluation5

Benefits to Individual Employees7

Benefits to the Supervisors8

Business Benefits8

Conclusion9

Organizational Development Evaluation

Introduction

A performance appraisal can be defined as "a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview [annual or semi-annual], in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development." As methods of measuring performance are imperative in assessing a company's success or failure, performance appraisals are necessary in assessing the employee base that is responsible for the company's overall performance.

Discussion and Analysis

In 1975, Steven Kerr published "On the Folly of Rewarding A, While Hoping for B." The argument was simple: you get what you pay for. Kerr distilled this unifying theme from a disparate set of examples involving politicians, soldiers, doctors, orphanage directors, professors, and students, as well as manufacturing and clerical employees and even human-resource managers. From these examples, Kerr (pp. 779-80) concluded that two main causes of distorted incentives are "fascination with an 'objective' criterion, [where] individuals seek to establish simple, quantifiable standards against which to measure and reward performance" and "overemphasis on highly visible behaviors, [when] some parts of the task are highly visible while others are not." It took agency theory 15 years to express Kerr's title, not to mention to evaluate or extend his conclusions. During this period, agency theory was obsessed with the trade-off between incentives and insurance, even though clear-eyed observations like Kerr's about the design and performance of real incentive contracts suggested that several other issues are at least as important. Fortunately, recent work has brought agency theory not only to Kerr's position but beyond.

The Performance Measurement System

The current performance appraisal method used at Midwestern Health Care Center and Rehabilitation; uses the graphic rating scale provided 90 days after hired and annually on the anniversary date of hire. The graphic rating scale is a performance appraisals form that the rater checks of the subordinate's level of performance. The performance appraisal form consists of six sections: the performance rating scale, performance factors, supervisory factors, summary or rating total, performance goals and comments and signatures. Ratings for the performance appraisal form for the performance evaluation is 1 through 5 with 5 being the highest possible rating. Section one of the performance appraisals is the rating scale. The ratings are as follows:

(A)Excellent, (b) Normal, (c) Below Average (Non performer)

Section two of the performance appraisal is the performance factors. Some of the performance factors considered for the performance appraisal are: ...