MGT501 Human Resource Management Assignment 2 Solution Fall 2012

Tarakee Bank is a medium-sized financial institution that has witnessed dramatic growth over the last five years. One of the areas that the bank has stressed is productive performance. The bank uses performance evaluation at the management level and now wants to take its performance evaluation process farther down the line and applying it to operating personnel. Specifically, the bank wants to develop an evaluation system for gauging the performance of bank tellers. Although there has been no formal decision regarding either the performance evaluation form to use or the specific criteria to evaluate, there are some general areas that the management feels should be evaluated: (a) The speed with which a customer is served (b) The number of daily mistakes that a teller makes in entering transactions into the computer (c) The accuracy with which the individual handles cash (d) The employees’ friendliness and general manners toward the customer These are only four of the criteria that the bank has in mind. Now the bank managers are more concerned about which method would be most accurate to evaluate their performance. Some of the bank managers believe that a graphic rating scale would be best; others feel that some form of paired comparison or behaviorally anchored rating scale would be preferable. The bank has formed a committee to look into this matter and hopes to have the situation resolved by early next month.
Questions:
1. Could a graphic rating scale be used in carrying out this evaluation? Or could a paired comparison be used? 2. Would the number of tellers to be evaluated have any influence on the form of evaluation that will be used? Explain.

Solution:




The specific reasons for doing employee performance reviews vary among small businesses. Objectives should help build a commitment to do the reviews, build enthusiasm for the reviews within the management team, and gain support from employees. Possible objectives include:

  1. Help employees improve their performance.
  2. Help employees with their career planning.
  3. Take advantage of employee insights for improving the business.
  4. Identify training and retraining needs.
  5. Encourage and motivate employees.
  6. Promote teamwork and employee cohesiveness.
  7. Provide information for compensation decisions.
  8. Increase supervisor satisfaction with their human resource accomplishments.
  9. Identify needed changes in human resource management practices.
  10. Provide information for the redesign of jobs.
  11. Eliminate legally indefensible personnel actions.

Such a list can be a starting point for discussion in the management team and with key employees. Their support will be critical to success with employee reviews. Facing misunderstanding, skepticism, fear, and outright rejection comes most easy early in the planning process. Consensus building on objectives can be used to promote honest discussion.


Performance appraisals (PAs) are conducted at least annually,[22] and annual employee performance reviews appear to be the standard in most American organizations.[8] However, “it has been acknowledged that appraisals conducted more frequently (more than once a year) may have positive implications for both the organization and employee.”[11] It is suggested that regular performance feedback provided to employees may quell any unexpected and/or surprising feedback to year-end discussions.[12] In a recent research study concerning the timeliness of PAs, “one of the respondents even suggested that the performance review should be done formally and more frequently, perhaps once a month, and recorded twice a year.”[12]
Other researchers propose that the purpose of PAs and the frequency of their feedback are contingent upon the nature of the job and characteristics of the employee.[30] For example, employees of routine jobs where performance maintenance is the goal would benefit sufficiently from annual PA feedback. On the other hand, employees of more discretionary and non-routine jobs, where goal-setting is appropriate and there is room for development, would benefit from more frequent PA feedback.

The performance of the employee can be marked on a continuum with the help of a rater, based on the particular characteristics of the individual, indicating whether the person has had a low level performance or a high level performance, and this entire process is allowed by the graphic rating scale. The process of the evaluation of performance can be carried out continuously with the help of the graphic rating scale, and also because the process is very straightforward. The following illustration shows a combination ofgraphic rating scale with essays in the form of a sample appraisal form. The graphic rating scale is used to appraise three aspects of the appraisal of the performance of the individual. These are the descriptive category which includes dependability, attendance and quantity of work performed by the individual next is the behavioural dimensions, these include processes such as decision making, development of employee, and the effectiveness of communication.

Graphic Rating Scale
For the purpose of different jobs each of these types are used. Either numerically or verbally the performance standard met by the employees are expressed. This can be explained with the help of an example, numerically the performance standards are expressed as 5,4,3,2,1 and verbally it is expressed as ‘outstanding’, ‘meets standards’ and ‘below standards’. If the standard evaluation of the employee performance is carried out by two people then it is quite possible that both of them will not be able to agree upon the similar ratings for measuring the level of performance achieved by the individual. There is expectation and particular performance standard at the different levels of measurement, so that when the standards are interpreted by the different employees and superiors in the organisation, the variation in the evaluation can be reduced.

Graphic Rating Scale And The Various Concerns
In order to evaluate the job performance of several employees in the organisation, the graphic rating scale is used as it has a uniform set of criteria and it is also easy to use in theevaluation of performance of the employees. However, there can be instances of rater error while using the scale, as the importance of certain job character cannot be indicated in the form, along with this there are certain factors in the form which needs to be deleted and some factors needs to be added in order to calculate the actual rating. The scales work well if the form suits both the person and the job. However, in certain cases when the form doesn’t fit the work and the employee the managers and the employees must complain about the pattern of rating available in the form.

There i


s one very important point which needs to be discussed in here. The concentration must be on the duties and the responsibilities of the job that is identified in the job description, rather than on the scale that is being used. If the people are able to perform the functions as mentioned in the job description then the link will be close to the scale and between the rating and the job there will be a strong relationship, which will be witnessed by both the employees and the managers.

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