You Manage It! 3: Technology/Social Media Going Digital with Appraisal

Many managers avoid performance appraisals because the task makes them uncomfortable. Some managers may not do a very good job of appraising the performance levels of their workers. A growing number of companies are now offering technology that promises to solve these difficulties.

A number of software programs can make the rating task a paperless process. Further, some performance review software even automates improvement suggestions. As presented in the chapter-opening illustration involving George using technology to appraise the performance of Estelle, clicking a score on a performance dimension could automatically generate the text of a performance review. A below-average score could generate text that identifies the performance as deficient and recommends steps that the employee should take to improve performance.

Depending on the vendor, electronic performance review systems can use generic goals and competencies as evaluation criteria or they can be customized so that organizationally specific goals and competencies are used. The software can report the extent to which an employee has contributed to the goals of the organization.

Critical Thinking Questions

  1. 7-25. Place yourself in the position of an employee receiving a performance review. Would it matter to you whether your performance review, the narrative description of your performance levels, and suggestions for improvement were generated by computer or by your manager? Why?

  2. 7-26. From the perspective of a manager, what advantages might be associated with taking an electronic approach to reviewing the workers’ performance levels? List these advantages into two categories: rational and political. The rational category is for advantages such as the speed with which the appraisal task could be completed. The political category is for advantages such as being able to blame the computer software for a poor performance review that a worker is not happy with.

  3. 7-27. What rational and political disadvantages are associated with the use of electronic performance review?

  4. 7-28. Given your answers to the previous questions, would you recommend the use of electronic performance reviews? Justify your position.

Team Exercise

  1. 7-29. A number of companies offer software for reviewing worker performance. Some offer technology that can be installed on computers within an organization. Others offer Web-based services.

    As a team, identify a couple of companies that offer electronic performance review technology. (Some company names you will likely run across in a computer search include Halogen, Workscape, and [no longer online] PerformanceReview.com.) For each company selected by your team, describe the performance review service that is provided.

    1. a. What claims do the vendors make with regard to the benefits their services provide?

    2. b. If possible, determine the typical cost associated with the use of the technology for a small or medium-sized firm. Estimate the per-employee cost of the electronic approach. Given your cost figures, do you think purchasing electronic review technology is something you would recommend to a small or medium-sized firm?

      Share your findings and conclusions with the rest of the class.

Experiential Exercise: Team

  1. 7-30. As discussed in the Manager’s Notebook, “From Performance Appraisal to Performance Management,” social media is being used in some organizations as a tool to support performance. As a team, consider the possible roles for performance appraisal software, social media, and face-to-face performance reviews. Does each serve a purpose?

    1. a. An organization has asked for a recommendation from your team regarding how they should measure and manage employee performance. Consider yourselves a team of consultants and make recommendations regarding how they should measure and manage employee performance.

    2. b. Also make recommendations regarding the use of appraisal software, social media, and face-to-face review. Should all three be used, or should only one or two be relied on? Why? For what purposes should each be used? Share your recommendations with the rest of the class.

Experiential Exercise: Individual

  1. 7-31. Develop a set of criteria for judging the effectiveness of performance appraisal. For example, are the evaluation and feedback likely to be accepted? Will performance appraisal be useful? Will it improve performance? Does it support an organizational goal of coaching and developing employees? Given your criteria, evaluate the use of appraisal software, social media, and face-to-face performance review meetings.

    Present a summary of your criteria and evaluations to your class. Share your recommendations regarding the use of the three approaches.

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