1) Types of performance appraisal methods Performance appraisal involves an appreciation of employees for their good performance at work (Cengia, 2011). Different methods have been used for performance appraisal. These include; Management by Objectives (MBO) This is method that awards employees depending on the employee that achieved the objectives previously set by the employer and the employee. In this method, the employer will award the employee depending on the results. The major disadvantage of this method is that performance appraisal will only occur if the employee has achieved the objectives set. However, the method has an advantage of motivating employees to achieve the set objectives. Performance ranking method This is a method that evaluates the performance of the employees and ranks them from the lowest level to the highest level.
Employees in the highest level will then be awarded more than those in the lowest level. The major advantage of this method is that it motivates employees to increase their performance in order to be ranked high. However, the method is limited by the fact that it is difficult to measure the level of performance of the employee.
The method is therefore subject to biasness (Cengia, 2011). Critical incident method This method of performance appraisal awards employees by identifying the specific instances when the employee might have done something really outstanding and extra ordinary. The major advantage of this method is that it encourages employees to be innovative and creative. One disadvantage of this method is that it limits employees who might be hardworking and yet not innovative. 2) Rater errors Rater errors refer to errors and mistakes made in the process of performance appraisal. These errors include; Halo Effect This is an error which occurs when the employer generates inappropriate results due to focusing at single outstanding positive or negative characteristics of the employee.
Halo effect also occurs when the employer allows his or her personal feelings to affect the process of the appraisal. Leniency Leniency error occurs when the rater gives all the employees positive remarks instead of giving the true remarks irrespective of whether they are negative or positive. Leniency error mostly occurs when the employer is trying to avoid conflict with the workers. Central tendency error This error occurs when the employer avoids giving exceptionally high or exceptionally low results to employees.
He therefore gives average remarks to employees irrespective of the fact that employees are different. Ways of minimizing rater errors The rater should work closely with employees in order to obtain the actual information. In addition, the rater should also prepare the performance appraisal early in advance. The rater should also minimize personal bias and be consistent in the results that he gives (Cengia, 2011). Question 3: SMART Acronym S-Specific, the employee should be defined and do things with clarity. M-Measurable, this involves setting goals which are obtainable.
The employee should also know when he or she will achieve the goals. A-action oriented, the employee should not only set the goals, he or she should go ahead and act upon them by coming up with ways of achieving them. R-Realistic, the employee should not set unrealistic goals which may be difficult for him or her to achieve. This means that he or she should analyze factors such as resources and time available. T-Time bound, the employee should set enough time for achieving his or her goals.
This time should not be too long and should also not be too short. Setting smart goals will be beneficial for the employee since he or she will increase his output. The manager will also gain in terms of the improving of the company. Smart Goals for these activities a) To get a Job, the individual should be specific about the actual job that he or she wants. b) To improve your computer activities; the individual should set goals that he or she wants to achieve from the improvement of his or her skills.
He or she should also define the time within which he or she intends to achieve the skills. c) To increase your proficiency in a sport; the individual should set the specific goals that he intends to achieve. For instance, if intends to increase his speed or if he intends to perfect his skills. d) To write a book; the person should be specific about the topic that he is writing about. He should also set goals that he intends to achieve from writing the book. The person should also set the time duration within which he intends to finish the book e) To get into grad school; the individual should be specific about the exact school that he intends to join Question 5: Advice/ Guidance that I would give to the new manager The new manager should avoid biasness in the assessment of the performance of employees.
He should also set realistic goals for the employees and should treat them with care. In the performance management, the manager should also ensure that he motivates the employees accordingly. The management expectations that I would set for the manager include; he should ensure that he completes all the duties within the required time, he or she should plan in advance, he or she should also communicate the required information clearly to the people that he leads.
The manager should also document all the required information in a well organized manner. Question 5: As an owner of the 25-employee Company how I would handle the situation I would first begin by praising the employees for their good work in boosting the company profits. I would then explain to the employees that the company has suffered a crisis and hence they cannot be fully remunerated.
I would explain to them that it is better to pay the suppliers first than remunerate them and close business. If I had handsome bonuses, the best way to evaluate the employees would be by analyzing their true performances. References Cengia, G. (2011, November 14). Performance Appraisal Rater Errors | Employee Insights [Web log post]. Retrieved from http: //blog. tnsemployeeinsights. com/? p=1138