Performance Apraisals

A performance appraisal is a formal, structured system that compares employee performance to established standards. Assessment of job performance is shared with employees being appraised through one of several primary methods of performance appraisals. Elements in performance appraisal methods are tailored to the organization's employees, jobs, and structure. They include objective criteria for measuring employee performance and ratings that summarize how well the employee is doing. Successful appraisal methods have clearly defined and explicitly communicated standards or expectations of employee performance on the job. (Allen, pg 28, 2002)

After reading the scenario between Jennifer and Mel's argument on evaluating the workers performance formally or informally, I have to agree with Jennifer. Giving performance appraisals formally ensures that compensation and other reward disbursements are consistent with actual salesperson performance. It also identifies that particular salesperson that might be promoted, whose employment should be terminated, and to supply evidence to support the need for termination. (Dessler, pg 313)

Formal evaluations also determine the specific training and counseling needs of individual salespeople and the overall sales force. It provides information for effective human resource planning identifies criteria that can be used to recruit and select salespeople in the future, and it advises salespeople of work expectations. All in all formal evaluations motivates salespeople, helps them to set career goals, and improves their performance. (www.business.bond.edu.au/mktg13-310)

To a degree I could see Mel's point of view as well. According to Peter Wildblood who is the founder of Wildblood Performance Appraisal Systems, there are two main reasons why performance appraisals tend not to work. First the appraisal system itself, and the accompanying documentation, is often badly designed. Second and most important is that the underlying relationship between team leader and team member is often quite poor. Performance shortfalls by team members have not been picked up or spoken about. The team leader has omitted actions which could have done to better support team members

I worked in sales for 5 years and I personally don't recall having a formal performance appraisal. Our motivation to do better was based on the merits we received such as vacations, cash bonuses, and prizes. We were told upfront how much we were expected to sale on a weekly basis and that our hours could be lessened if we did not meet those expectations. Basically if you wanted to work more hours you would set a personal goal for yourself to meet expected sales quotas.

The type of performance appraisal I would use in this scenario would be the Behaviorally Anchored Rating Scale (BARS). BARS is an appraisal method that measures behavior against levels of performance. BARS combine elements from critical incident and graphic rating scale approaches. The supervisor rates employees according to items on a numerical scale. (Dessler, pg 322)

BARS uses judgmental measures developed to define the rating points in relation to actual work behaviors. Steps in the process include:

- Generation of critical incidents (examples of effective and ineffective behavior).

- Refinement of the critical incidents and the creation of performance dimensions (the overall qualities defined by specific critical