Managers in big companies face daily challenges in day-day decisionmaking ranging from employees coordination to customer relations.According to Kloot (2000) there exists a strong relationship betweenplanning and performance measures. Performance management andappraisal therefore refers to regular evaluation of workersperformance in relation to business standards such as qualityservices, marginal productivity, and demonstration of leadershipskills, customer relations and job’s expertise. There are bothtraditional and modern methods of weighing employee’s performance.Traditional methods are diverse and emphasize on weighing worker’sattributes such as diligence, integrity and leadership skillsdemonstrated at work place. Modern methods on the other hand are moreconcerned about final output and overall productivity of eachemployee. There is no justified method between the two as each methodhave its own pros and cons. A performance manager can thereforedecide to employ any of the two methods or even both depending withcompany’s profiles and objectives.
Traditional methods employed in performance evaluation are diverse.The most common method used is the rating scale where differentcriteria such as output and customer relations are put in a numericalscale ranging from excellent to poor and classified accordingly. Other methods employed include: use of a checklist, confidentialreports, essay methods, cost accounting methods, performanceobservations and tests among other methods. Performance manager usesworkers statistics from their day to day doings to credit ordiscredit them. According to Neely (2002) managers review theirworkers statistics regularly to avoid dysfunctional behavior. Undertraditional methods, the employee can be rated by his superiors,workmates or even customers depending with the quality of his work.This method faces a number of limitations. For instance, when essaymethod is used, the person rating a workers performance may be biasedand give wrong ratings. Another shortcoming is that traditionalmethods renders it difficult to rate all employees especially incomplex organizations which evaluates workers performance annually.However, where workers statistics are kept well, these methods canexpress true performance
This is a modern method in performance evaluation. It involvesregular evaluation of workers following constructive feedbacks andcommunication between managers and their employees. Managementcommunication have a great impact on performance (Neves 2012). Thisapproach has been initiated due to problems related to annualevaluation and assessment of workers performance. Managers find thisapproach more appealing as it empowers them to weigh workersperformance on regular basis therefore making right decisions foreffective running of business. However, this method calls forinstallation of systems and channels where seniors and juniorscommunicate the progress.
Unlike traditional methods, real time feedback approach is done regularly rather than annually. Workers are assessed after a certain period of time using communication they have been having with their employers. Traditional methods evaluation are usually done once per year.
Real-time feedback is an effective method of evaluation since it is based on actual output the workers have been providing to their employers. Traditional methods may be biased especially when workers ratings is done through essay methods which has no guarantee of accurate performance.
In traditional methods, managers file workers feedbacks over the year where specific information may be lost. Real-time feedback on the other hand ensures that no worker information is lost and can even cite various examples.
Traditional methods usually evaluates personal attributes while real-time feedback is concerned about productivity of workers.
Both methods are aimed at assessing workers performance to weigh their productivity in their place of work. The end goal of both approaches is to ensure that there are no ghost workers or free riders. Each and every worker is answerable to the authorities
In both methods, there is regular feedback only that evaluation is done at the end of the year rather than on regular basis
Both methods have their own strengths and weaknesses and none of them can be justified to be the best.
Personally, real-time feedback is more appealing to me as it ensuresthat managers make quick decisions rather than waiting for the yearto end. This method also ensures that workers records are not lostand relieves the company filing costs after evaluation is done.
Frederick W. Taylor’s response to the real-time feedback
Frederick Taylor’s theory was concerned about industrialefficiency. In his book, about principles of management, Taylorprovides various efficiency procedures that managers should considerto ensure that all activities are carried out effectively Taylor(2004). Taylor could have two views on real-time feedback:
Real-time feedback can increase efficiency- in this case, regular worker evaluation will ensure that workers adhere to the standards set by their employers having in mind that their performance is reviewed regularly.
Real-time feedback may lead to inefficiency- Taylor would argue out that regular communication and provision of feedback is a waste of time which would lead to inefficiencies. According to Sousa-poza (2002) the existence of inefficiency is explained in terms of long hours of work.
.Kloot, L., & Martin, J. (2000). Strategic performancemanagement: A balanced approach to performance management issues inlocal government. Management Accounting Research, 11(2),231-251.
.Neely, A. (2002). Business performance measurement: theory andpractice. Cambridge University Press.
Neves, P., & Eisenberger, R. (2012). Management communication andemployee performance: The contribution of perceived organizationalsupport. Human Performance, 25(5), 452-464.
Sousa-Poza, A., & Ziegler, A. (2003). Asymmetric informationabout workers` productivity as a cause for inefficient long workinghours. Labor Economics, 10(6), 727-747.
Taylor, F. W. (2004). Scientific management. Routledge
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