Designing Appraisal Systems

1. Designing Appraisal Systems MANA 4328 Dr. George Benson benson@uta.edu

2. Designing Appraisal Systems • What types of behaviors does SRP need from employees to be successful? • What type of information is needed? • Drafters / Field Sales / Machinists • How would a business owner know if employees are doing a good job? • Where is the information coming from? • Drafters / Field Sales / Machinists • What should the evaluation forms look like?

3. Designing Appraisal Systems • How can performance management systems promote two conflicting goals simultaneously? • Quality vs. Quantity • How can performance management systems promote individual performance and teamwork or coordination simultaneously? • Individual vs. Group

4. Linking Individual & Organizational Goals What are the ultimate goals? • Profits, Sales, Customer Service, Quality • Balanced scorecard • Don’t focus on intermediate goals unless they matter. • Consider the importance of coordination among employees or units. • Consult with business leaders and employees on appropriate goals

5. Balanced Scorecard “What you measure is what you get” • Financial vs. operational measures • Short term vs. long-term effectiveness Specific goals and measures for: • Shareholder satisfaction • Customer satisfaction • Operational Excellence • Innovation and Learning • Others?

6. Management By Objectives Specific process to align organizational goals and individual objectives. Instead of just a few top-managers, all managers of a firm participate in the strategic planning process. MBO principles are: • Cascading of organizational goals and objectives, • Specific objectives for each member, • Participative decision making, • Explicit time period, and • Performance evaluation and feedback.