Essay on Employee Evaluation and Its Practice

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Employee Evaluation Microsoft announces, “it would stop ‘stack-ranking’—the much-reviled practice it has used up until now to evaluate and reward its employees” (Farnham, 2013, p. 1). A performance appraisal and reward system should provide an evaluation of employees’ performance and motivation and “establishing a clear link between efforts and reward through formalized and specified individual targets” (Azzone, & Palermo, 2011, p. 91). Types of performance appraisals include • General Appraisal: This process includes “ongoing communication between the manager and employee throughout the entire year” (JetHr, 2013, p. 1). At year-end “determine if the pre-set goals and objectives were met, provide feedback, and set new goals” (JetHr,…show more content…
“Using a bell-curve for performance evaluation process” (Vaishnav, Khakifirooz & Devos, 2006, p. 1), this method rewards “a small percentage of top performers, encourage a large majority in the middle to improve, and lay-off the bottom performers. Companies believe that such pay-for-performance system encourages employees to perform better” (Vaishnav, Khakifirooz & Devos, 2006, p. 1). Eventually, by using this stack-ranking approach, employees spend more time on a cannibalistic culture than innovating on projects. This process causes employees to pit themselves against each other and causes many to leave the firm. Many companies, such as Adobe and Expedia eliminated this “type of appraisal system” (Vaishnav, Khakifirooz & Devos, 2006, p. 1). Evaluation and Analysis “The result of the rank-stacking appraisal approach lay-offs take place, constant pressure demoralizes employees, leading to drop in performance” (Vaishnav, Khakifirooz & Devos, 2006, p. 11). “Bottom performers depart, the rigid distribution of the bell-curve forces managers to categorize a high performer … as a mediocre” (Vaishnav, Khakifirooz & Devos, 2006, p. 11). “A high performer, unmotivated by such artificial demotion behaves like a mediocre” (Vaishnav, Khakifirooz & Devos, 2006, p. 11). Never a fan of organized yearly appraisals, employee evaluations should foster improving communication and collaborative teamwork to encourage innovation and
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