Question

Comparative performance evaluation pays employees based on their performance relative to others.
(a) Explain why employers might want to use comparative performance evaluation.
(b) Explain the trade-offs involved in choosing alternative comparisons for evaluation.

(would appreciate if you can post answers by writing down the words on web page instead of pictures in case i cannot look clearly of each words)

Answer 1

There are various performance evaluation techniques used by employees in today's world. Some of these are past oriented for example based on a rating scale system while some are more futuristic like the 360 performance evaluation system.

(a) Comparative Performance evaluation:

(i) This evaluation technique compares the performance of two individuals. The performance levels are directly covered. It uses several methods to rank to compare a individual performance with his co- workers. In one method the employers are paired in two and then rated. The other method uses ranking to rank the employees from best to worst. How the best and worst are defined  may be subjective.

(ii) One of the reasons why employers use this is that is cost effective and easier to use. The employers are also not answerable in these form of evaluations and their biases are usually reflected in this.

(iii) This is easier to follow as it is expected to follow the bell curve. Different types of jobs can be evaluated using this evaluation. The employers can cover a large number of employees easily using this evaluation and no training is required for this technique.

(b) Alternative methods of evaluation

(i)360 degree evaluation : In this evaluation, a employee chooses a number of stakeholders with who he/she has worked and then these people in turn give feedback. This technique is highly effective as a number of stakeholders give their views and employers get a better understanding of the strengths and weakness of an employee. This is also very unbiased.

A disadvantage is that some stakeholders may not be capable enough or worked long enough with a the employee to give an effective feedback.

(ii)Goal based evaluation: A employee mentions and discusses his goal for the year at the start of the year itself. This goal is broken down into several actionable tasks and recorded. At the year end, the employers actual performance is measured against these goals.

Disadvantage is that employees may undermine themselves or set too far fetched goals for themselves.