27-09-2016, 09:54 AM
1456244192-DifferentiationoftalentNikita.pptx (Size: 87.66 KB / Downloads: 5)
Why Is It Needed?
To make a distinction between top performers and bottom performers.
Follow it up with necessary actions:-
- Reward the top performers,
- Decide on the future of poor performers.
Obstacles
Lack of honest, truthful and straight forward performance appraisal reports by managers.
Poor criticism handling by sub-ordinates.
Performance Appraisal System
Needs-
Communicate exactly what is expected.
To assess accurately just how well people are doing.
To let them know honesty and straight forwardly exactly where they stand.
The Challenge-
Managers’ reluctance to be straightforward, especially in cases where elements like salary is directly associated with the report.
Limitations
Depending on the level of expectations setup by the managers’; if set very low, everyone can be a good performer; if set very high, everyone might become a poor performer.
Level of expectations may vary greatly across the organization.
Managers tend to set performance standards at a level that they are reasonably sure their subordinates can meet.
Can encourage the culture of mediocrity.
Can discourage the top performers due to being clubbed with the average performers.
The Other Tool- Forced Ranking System
Compares performance of an individual with others at the same positions in the organization.
Follows Relative Comparison and Person to person comparison approach.
Unlike conventional Performance Appraisal System which follows Absolute Comparison and person to standard approach.
Advantages of FRS Over CPAS
Efficiently differentiates talent as it is forced to segregate the whole workforce in top, middle and bottom performers in certain percentages.
Encourages top performers and discourages mediocrity.
Helps in replacing the bottom performers with the best amongst the available applicants.
Forces a company to articulate the criteria that are required for success in the organization.
Provides the organization with useful data on the ability of managers to spot and champion talent.
Criticisms Against FRS
The improvement in workforce may occur at a steep price-
-Negative employee morale,
-Can cause cultural dislocations,
-Teamwork and collaboration,
-The unwillingness of applicants to sign on with an employee using it,
-Shareholder perceptions.