relative standard

relative standard

The evaluation process being used in this case is the relative standard method. It is because the employee’s performance is compared to other employees. In the Ford’s case, the performance of the employees is evaluated as 1, 2, 3, 4 where 1 is the highest rating and 4 is the lowest. The managers are also required to give a rating of 4 to 10% of employees each year. In the relative standard method, the evaluator rates employees based on a pre-determined distribution. The strategy separates the high performers from the average, below-average, and the poor ones. The 4-point scale makes it easy for the organization to rate employees based on their performance. It creates a distinct performance metrics based on a predetermined scale. An organization also sets its own curve before the performance appraisal is utilized. In the Ford’s case, there is an element of forced ranking because some managers are required to provide a rating of 4 to 10% of the lowest performing employees. It means that the organization may also rely on some form of individual ranking to rate the employees.

1. What effect, if any, do you believe rank and yank evaluations have on managers? Do you see these effects as positive or negative? Defend your position.

The rank and yank evaluations puts pressure on managers to motivate employees. The managers are always under pressure to ensure that the level of performance is high and this might make employees feel discontented. Also, rank and yank involves getting rid of the employees who perform below average. In such a case, the managers may be forced to dismiss good workers just to keep those that occupy essential post. I also feel that the evaluation does not provide managers with the room to motivate employees.

This is because those who do not perform are always fired at the end of the year. The managers should be provided with room to motivate employees because there are different factors that affect their performance. I also feel that the rank and yank evaluation creates pressure to the managers especially when the employees are against it. In most cases, employees may feel the evaluation is punitive hence exert unnecessary pressure to the manager not to use it. One positive effect that might come with this evaluation is that it can make the manager have motivated team. It is because all the employees do not want to be ranked at the bottom hence they have to be intrinsically motivated. The manager may thus find it easy working under such program as employees understand the consequences of poor performance. Generally, the rank and yank evaluation has a negative effect on the managers.

2. What role does such a system have in distorting performance appraisals?

Under such system, managers may avoid at all means giving lower marks to the employees they want to retain. The impact of such behavior is the presence of workers with poor performance in the workplace. Such behaviors may affect the organization’ ability to understand the best working employees and those who are lazy and ineffective. Another role that this system can create is diminishing team work as employees work on their own so that they can stand out from the rest. Also, employees may engage in unethical practices as they try to make themselves look better that the others. Such acts may affect the performance appraisal process as it may be hard to determine the effectiveness of the employee in the workplace.

On the positive side, employees who fear their job is at stake may become more hard working. They can spend that extra energy to ensure that they still retain their job. Also, it may cause the employee to become innovative as they try to find ways of doing more within a short period of time. Such happenings may enhance the performance appraisal process as more information is available regarding the performance of the employee.

3. Write your suggestions/opinions to create better performance appraisal system in the organization.

A better performance appraisal system in an organization should begin by setting a strong performance plan. From that plan, it can be determined what the organization expects and what the employees are expected to do for a certain period. I also think that there should be a uniform evaluation cycle to provide employees with equal opportunities during the evaluation period. The evaluation should not pose any form of biasness because it can demotivate and demoralize some employees. There should also be formal interim reviews to determine whether the set targets are achievable. A lot of changes take place throughout the year and it is crucial to review the performance appraisal and make any necessary changes. Also, it is crucial to build a culture that values feedback in the workplace. The workers should be provided with the room to contribute in setting up the performance appraisal. I also feel that it is crucial to set clear expectations to the supervisors. Doing so ensures that they plan and push the employees to achieve the set goals in accordance with the performance appraisal. With the stated opinions, it can be easy to create an inclusive and better performance appraisal system that is supported by all employees.