Relative Effectiveness of Two PM Strategies Two performance-management/appraisal
ID: 1106498 • Letter: R
Question
Relative Effectiveness of Two PM Strategies
Two performance-management/appraisal strategies have been popular for the past 30 years. They are:
Management-by-objectives - is a performance management and appraisal system that calls for a comparison between specific, quantifiable target goals and the actual results ahcieved by an employee.
Multirater systems/360-degree appraisals - ratings collected from several raters.
Instructions: Which of these performance appraisal strategies has historically had the best effect in “improving” employee performance (i.e., productivity) in the U.S. Why? Give reasons.
Explanation / Answer
Both appraisal strategies are focused on improving the overall performance of the employees, but multirater system has the best effect in improving the employees performance because in 360 degree appraisal the employee receives feedback from his subordinates, co-workers and managers. So, his performance is judged by multiple people and not just by the supervisor. This provides a better idea on how the employee is performing his job. This motivates the employees to perform better and to maintain a good record. So, when the employee concentrates on his performance, the productivity of the organisation will automatically improve and increase.