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Designing Appraisal Systems

Learn how to design effective appraisal systems to evaluate employee performance and align organizational goals. Explore methods to promote individual and team success while balancing conflicting interests. Understand the importance of MBO principles for strategic planning.

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Designing Appraisal Systems

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  1. Designing Appraisal Systems MANA 4328 Dr. George Benson benson@uta.edu

  2. Designing Appraisal Systems • What types of behaviors does SRP need from employees to be successful? • What type of information is needed? • Drafters / Field Sales / Machinists • How would a business owner know if employees are doing a good job? • Where is the information coming from? • Drafters / Field Sales / Machinists • What should the evaluation forms look like?

  3. Designing Appraisal Systems • How can performance management systems promote two conflicting goals simultaneously? • Quality vs. Quantity • How can performance management systems promote individual performance and teamwork or coordination simultaneously? • Individual vs. Group

  4. Linking Individual & Organizational Goals What are the ultimate goals? • Profits, Sales, Customer Service, Quality • Balanced scorecard • Don’t focus on intermediate goals unless they matter. • Consider the importance of coordination among employees or units. • Consult with business leaders and employees on appropriate goals

  5. Balanced Scorecard “What you measure is what you get” • Financial vs. operational measures • Short term vs. long-term effectiveness Specific goals and measures for: • Shareholder satisfaction • Customer satisfaction • Operational Excellence • Innovation and Learning • Others?

  6. Management By Objectives Specific process to align organizational goals and individual objectives. Instead of just a few top-managers, all managers of a firm participate in the strategic planning process. MBO principles are: • Cascading of organizational goals and objectives, • Specific objectives for each member, • Participative decision making, • Explicit time period, and • Performance evaluation and feedback.

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