Answer to Question #266182 in Management for swetha

Question

Discuss the rewards and performance appraisal components of a performance management model of an organisation of your choice. Further, state why newer, high involvement approaches of performance appraisal are preferred over the traditional bureaucratic models by organisations.

Answer 1

The components of performance management involves setting of objectives, measurement of performance, feedback result, reward and ammendments of objectives and activities.

Setting of objectives involves identification and installation of quality practices that will lead to realisation of required status of the firm.

In the next step, employee practices are measured and checked against the set standards and their performance quantified.

The next step is where employees are informed on their performance. This step is called feedback and is a vertically downward communication.

After feedback is rewarding and the reward is as good as the performances of the employee.

The final step is amending previously installed practices to check excesses and deficits and to achieve greater performance.

Transitional models of appraisal uses methods such as ranking, paired comparison, grading, essay etc to compare individual which have significant demerits like not being able to tell how much better or worse a person is than another and can be too skewed against a person that with different personal traits or even allocated different activity from the other. New methods of performance appraisal were preferred because appraised individuals don't get subjected to antagonising judgement of the raters. The methods applicable in this category include management by objectives, behaviourally anchored rating sale, and 360-degrees appraisal method.