This method can be very useful in a startup situation when employees and

This method can be very useful in a startup situation

This preview shows page 37 - 39 out of 66 pages.

This method can be very useful in a startup situation when employees and management need clear definitions of what behaviors constitute effective or ineffective performance. To cite one example, this method can be used to identify effective customer service behaviors. The disadvantage is that determining effective behaviors for every job in the organization can be difficult. It is also a difficult method to implement for complex jobs or for jobs subject to high levels of change. A results approach focuses on measuring the extent to which specific goals or objectives have been met, exceeded, or not met, perhaps due to circumstances beyond the employee's control. For example, a software project leader may be expected to roll out a new product in the second quarter that will significantly increase revenue, but unexpected delays in software coding or testing make the product late, so the project leader cannot meet his objectives. An advantage of using a results-based method is that using quantifiable or clearly measurable outcomes eliminates much of the bias inherent in the attribute and behavioral approaches. Goals or objectives set by the employee and manager can be aligned with the strategic goals of the company. However, in fast-moving entrepreneurial companies, the evaluation may be based on results no longer relevant to the company. This method also provides employees with limited feedback on the quality of their performance or on what they can do to improve. Another type of performance appraisal system is the 360-degree appraisal. In this type of appraisal, performance information is gathered from a number of sources. Sources include employees familiar with different facets of the employee's work, including superiors, subordinates, peers, customers, and suppliers. Generally, the results are summarized by the employee's manager and are shared with the employee. Although more complicated than a single form, this system can more accurately reflect the employee's performance. Since many people contribute to the employee's performance appraisal, the results limit bias and suggest clear
Image of page 37
38 directions for improvement. Such appraisals are also effective for strategic and developmental purposes. For example, in new ventures, input from customers on employee performance is vital to the success of any business. This input can be used to keep the employee on point as the company grows. In their early stages, entrepreneurial companies may believe performance appraisals aren't worth the effort. However, as the company grows, performance appraisals become a way to link employee performance to motivational tools and rewards. Understanding Motivation and Incentive When developing the team, entrepreneurs should try to understand what will motivate their employees. What will make them move mountains with teaspoons? Some people are motivated based on their ego, title, and security. Others are motivated by being part of a business crusade.
Image of page 38
Image of page 39

You've reached the end of your free preview.

Want to read all 66 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors