Performance Appraisal - Essay Example

1. In the problem d, ARCO Transportation appraises its employee’s performance based on personality traits. Personality traits because appraising employees based on “communication”- specifically, “listens and observes attentively, allowing an exchange of information” and “speaks and writes clearly and concisely, with an appropriate awareness of the intended audience is appraising employees based on its personality and skill trait of being able to clearly communicate thus appraising them based on personality traits.

Employees of ARCO Transportation should be appraised on all three aspects of performance to have a holistic assesment on how its employees performed. The importance of personality traits is not only able to communicate effectively but also the ability to work with others. Job behaviour is the employees professionalism and attitude towards the job whereas outcome is the final output of an employee. These three aspects of job performance must be imbued by employees to make the organization competitive and thus should be appraised as well. 2. Objective data may be less effective performance measures than subjective ratings because these figures are incomplete determinant of   performance.

It does not and cannot measure important intangibles such how well an employee works in a team that gets a job done. Motivation cannot also be measured by performance measures. 3. Rating formats are important in performance ratings because they standardized the way employees are appraised thus ensuring not only objectivity but also consistency in performance reviews. 7. The best way to measure team performance is its total output. By determining its output, other intagibles such as team work, professionalism can be indirectly measured as well because these intagibles contribute to an optimum performance of a team. 8. The problem assumes that the best way to motivate an employee is through monetary reward.

While monetary reward is important to an employee, it has very litle bearing on improving or maintaining a desired work outcome as explained by Herzberg. What matters more than pay or raise is a fulfilling job that employees find meaning that makes them stay and motivated. Having said this, the employee will appreciate an honest and transparent talk that the company is grateful and has high praises for an employees’ performance only that the increase in pay may not be that significant because suppliers has to be paid.

Employees will appreciate the company’s transparency and will understand that suppliers has to be paid to keep the company a going concern. It would help explain to the employees if the management will publish its financial report that shows such payment to suppliers. Performance rating has to be expanded that would include other intangibles that is important to work outcome such as ability to work with others and professionalism. While productivity metrices are important, they only tell one part of an employees performance.

Other aspect should be included to holistically evaluate employees. Using these appraisal system, not all should be able to have done exceptionally and reward will be given to those who really stood out. Others who performed well but not exceptionally well should not be left out in handing out bonuses or raises. Leaving them out in giving rewards will surely demotivate them that would cause their performance to decline. What the managers should do is device an appraisal system that could identify those who are real stand outs in terms of performance so that they can be appropriately rewarded.

Giving a uniform bonus or reward should be avoided because it will encourage mediocrity among employees because it will send the message that regardless of performance, they will receive the same bonus.