In exhibit 11.10 in your text titled “An Evaluation of Performance Appraisal Formats,” the author indicates that Management by Objectives (MBO) is not suited to merit income decisions because it is difficult to compare one workers’ success with other workers. However MBO is given the highest rating on validity and avoiding rating errors by supervisors. It is also given the highest rating on value for employee development.
Others argue that when the supervisor does a good job of identifying the objectives to be accomplished, and when the degree of goal accomplishment is properly recognized, there is no better system than MBO for measuring performance and awarding merit pay differentials. They also argue that MBO is the best system for aligning the efforts of all employees or organizational units to the common purpose of successfully achieving the organization’s mission and objectives.
Review the advantages and disadvantages of the ranking, standard rating scales, behaviorally-anchored rating scales, essay and Management by Objective formats of performance appraisal. In addition, consider the list of common errors in the appraisal process.
Deduce which one of the listed performance appraisal formats you would prefer to have used when a supervisor is evaluating your performance as an employee. In addition, discuss which performance appraisal format you would prefer to use as a supervisor responsible for the productivity of a group of employees to evaluate your employees’ performance. Write your initial response in 3-4 paragraphs in which you identify the format you prefer for each situation and explain why that is the one you would prefer.
Assignment 2: Employee Incentives
For this assignment, you are to use the text, the Argosy University online library resources and the Internet to research the use of incentives in motivating employees. Find an organization with a form of incentive you consider highly motivating. Find an organization within your current industry or an industry where you would like to be employed in the future. Submit a report in which you describe, analyze and evaluate the incentive plan of your chosen company. Include the following in your report:
Description of company, industry and incentive plan.
Distinguish why you think this particular plan is highly motivating and explain how it stimulates employee productivity. Connect the plan to one or more models of motivation.
Evaluate how well the incentive plan supports a well-aligned compensation plan and how the plan aligns the employees’ efforts to the organization’s mission and objectives.
Explain how this plan helps with the supervision, retention, and recruitment of employees.
Determine which of the following you feel would be the most valid format for performance appraisal to use with this incentive plan—standard ranking, paired-comparison ranking, standard rating scales, behaviorally-anchored rating scales, Management by Objectives or essay.
Justify your responses with reasons and examples. Cite scholarly sources.
To complete this assignment, submit a 3–5 page report in Word format. Apply APA standards for writing style to your work.
Assignment 2 Grading Criteria Maximum Points
Description of company, industry and incentive plan is clear, accurate and concise. 15
Explained why the plan is motivating and how it stimulates employee productivity. Connected the plan to one or more models of motivation. 20
Evaluated how well the incentive plan supports a well-aligned compensation plan and how well the plan works for aligning the employees’ efforts to the organization’s mission and objectives. 20
Explained how this plan helps with supervision, retention, and recruitment of employees. 15
Determined which would be the most valid format for performance appraisal to use with this incentive plan. 15
Response demonstrates application of concepts, analysis of research information, justification of responses, critical thinking, Writing Craftsmanship, APA and Ethical Scholarship 15