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.