Performance Appraisal System Adoption

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StopNShopToday Inc has to adopt a performance appraisal system which will objectively evaluate and allow continuous interaction between its employees and managers.

The Employee Performance Appraisal System should enable the managers provide objective descriptions and evaluations of the employees’ performance standards. There are several types of performance appraisal systems which can be adopted by StopNShopToday Inc.

StopNShopToday Inc can adopt 360-Degree or Full Circle Appraisal to evaluate the performance of its employees. In 360-Degree Appraisal, an employee’s performance will be evaluated by everyone within StopNShopToday Inc with whom he or she interacts (Eichinger, 2004).

This will include the managers, colleagues, customers as well as members of other departments. Hakala (2008) asserts that although this appraisal system is expensive, it can be used to comprehensively evaluate the performance of key employees of an organization.

StopNShopToday Inc can also adopt Management by Objectives (MBO) appraisal system. By implementing this appraisal system, each departmental manager will set objective goals with his or her subordinates so that at the end of the period, the manager evaluates the employee’s achievement of the set objective goals (Deming, 1994).

Action statements in the MBO process begins with statements like “reduce rejected parts by 5%” (Hakala, 2008). It involves continuous monitoring as well as review of objectives to enable the manager keep the employees focused on achieving the set goals. During the annual review, an assessment is conducted on progress towards objectives so that new goals are set.

Rating Scale is another important appraisal system which can be implemented by StopNShopToday Inc. The Rating Scale would require each manager or the management to develop an in-depth grading system which would be used to evaluate each employee’s success within a range of areas which could include technical skills, creativity, communication skills, and teamwork among others.

The management/manager sets a minimum required grade which an employee has to receive to enable the manager consider the performance appraisal as a success. This method allows the organization to put those who do not make the minimum required grade on a performance improvement plan (Henderson, 2011).

StopNShopToday Inc also needs to improve how it rates its performance assessment categories. Evaluating an employee’s procedural knowledge and skill as well as customer service Skills should involve rating performance standard by entering whole numbers on the Employee Performance Appraisal System Form to represent the manager’s perception/evaluation.

The numerical values should include 0 meaning unacceptable; 1 meaning development needed; 2 meaning fully competent; and 3 meaning Excelling. The manager has to document performance of each staff throughout the appraisal period by keeping written record of every staff’s accomplishments. It is this information that the manager should use to rate the performance of every employee.

In situations where the manager assigns an employee value 0 or 1, he or she has to list all areas which need improvement as well as recommendations for improvement. The manager must also provide a narrative explanation for his or her evaluation of each performance assessment category to justify the overall score assigned.

It is important that each manager for every department keeps written record of every employee’s creative work examples and judgment examples. This would allow the manager to quantify every employee’s creativity and consistent good judgment.

As a result, the manager can use comparative rating scale to evaluate every employee’s creativity and consistency in good judgment by using words such as low, medium and high. The examples should be used to justify the employee’s creativity and consistency in good judgment as rated by the manager.

Evaluation of employee attendance should be more objective and accurate adopting rating scale which assigns numerical values to the employee’s average attendance.

This should involve calculating the number of days attended during the appraisal period as a percentage of the total number of days the employee is supposed to have attended, and assigning values 1-6 where 1represents less than 50%; 2 represents 50-60%; 3 represents 61-70%; 4 represents 71-80%; 5 represents 81-90%; and 6 represents 91-100%.

StopNShopToday Inc would be able to improve its performance appraisal system by adopting a combination of appraisal systems. Besides, it has to improve its performance assessment categories to make them more objective and accurate.

Reference List

Deming, W. E. (1994). Out of the crisis. Cambridge, Massachusetts: The MIT Press.

Eichinger, R. (2004). Patterns of rater accuracy in 360-degree feedback, Perspectives, 27: 23–25.

Hakala, D. (2008). 16 ways to measure employee performance. Web.

Henderson, K. J. (2011). What are the different types of performance appraisal. Web.

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Performance Appraisal System Adoption

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