Communication Strategies

Concerns with current evaluation form
The evaluation is not taking into consideration professional parameters for appraising the employee. The focus is only on personality traits and relationship with co-workers. Although these are important too, they still cannot undermine the technical know-how of the person, and the manner in which he deals with his work.

There is a lack of objectivity in the ratings being given. The individual is being rated for his seeming behavior, and not on hard facts. The manager feels a certain way about him, and is also biased with the employees reaction to his appraisal last year.

The appraisal so far is not clear and specific. For example, it is vague as to what sort of attitude it intends to measure, and hence it needs to be more specific. The attitude being measured could be for anything from work or deadlines to attitude towards criticism.

The value of common sets of evaluation criteria
There is immense value in having common sets of evaluation criteria, since it automatically ingrains objectivity into the process. Also, all employees are rated on the same factors, and hence the chances of a personal bias get minimized. Having said that though, it should be kept in mind that there would always be evaluation criteria specific to a particular job description, and these should be considered too. Also, having all common criteria could lead to a central tendency of giving average ratings to all.

Advantages of a 360-degree appraisal
The 360-degree appraisal incorporates feedback from the supervisor, peers and also the sub-ordinates of a manager. The biggest advantage of such an appraisal is that it is multi-centered, which means that the feedback comes from various sources, hence ensuring a greater level of objectivity and fairness. Also, it takes the sole onus of evaluation from the manager and distributes it to the others in the team, ensuring that manager biases get negated. This also promotes a sense of involvement in the system, and sets a foundation for a participative culture in the organization. Another important aspect is that it is often felt that the leadership abilities of an employee can be most accurately evaluated by the people who work under him, and hence they should be a part of the evaluation to make it more comprehensive.

Disadvantages of a 360-degree appraisal
Despite the above mentioned points, the 360-degree appraisal has met with mixed responses since its inception. The biggest issue that is noticed is that the chances of getting clear concise feedback get reduced. A number of peers and co-workers might not be in a position to evaluate the person due to lack of technical knowledge on his work and not knowing where his core competencies lie. Also, it is questionable whether subordinates can be entirely objective about their bosses, and not let any bias affect their ratings. Finally, the system makes sense only if it is linked to personal goals of the individual, so that he knows what he needs to change, and how he should go about doing it.

Compare and contrast at least three common performance evaluation methods

Confidential report
A largely outdated method of evaluation, the confidential report is a descriptive document which is handed over to the employee at the end of the year which details out his work the whole year, and areas of strengths and weaknesses. This is a confidential document which is not shared with the public, and is for the consumption of only the appraised. There is no scope of a feedback from the appraised and he is often left to wonder the reasons for what is written about him. Also, it is not possible for him to have a conversation about it and seek any sort of improvement.

Behaviorally anchored rating scales
A relatively modern appraisal method, this technique uses several parameters key to the performance of an employee, and then develops a rating scale which is then used to evaluate the employee. For example, being punctual could be a key parameter to be evaluated, and then a scale is developed to measure the employees performance on that parameter. The good part of this technique is that it clearly offers an opportunity for improvement, and its quantitative nature helps in getting specific feedback on performance. However, it is considered fairly time consuming, and also leads to a bias of central tendency wherein the manager tends to give average rating for several parameters due to his inability to take an extreme stand.

Management by objectives (MBO)
The most evolved form of appraisal is the management by objectives technique. This works at an organization level, and that is its biggest strength. The company decides on the larger goals that it needs to achieve, and then these goals are broken down to smaller goals in line with the various work profiles of the employees. The employee is then evaluated on this basis of his performance vis--vis preset goals. The best part of this appraisal technique is that it is highly participative, and it helps quantify the actual involvement each individual has in achieving the objectives of an organization. It is also forward looking, and recognizes specific achievements that the person might have made to reach closer to his goals.

Biases that impact performance evaluation accuracy
The Halo effect
One of the most common appraisal errors is the Halo effect. The Halo effect is the tendency to rate the overall performance of a person on the basis of his performance in a few parameters.  This could work both positively and negatively, and leads to a clear bias in the appraisal. For example, an employee might be extremely hard working, but incompetent in the work required of him. Still, he could end up with good ratings due to the Halo effect.

Central Tendency
Another common appraisal bias is the tendency of managers to give an average rating to several employees, and across several parameters. This is called the central tendency. It is extremely damaging bias since it impacts the accuracy, and does not provide the employee with adequate feedback on his strengths and weaknesses.

Recency Bias
The recency bias creeps in when managers evaluate their juniors on the basis of their most recent work accomplishments. This is what is fresh in the managers memory and he forms a judgment basis this. It leads to an inaccurate evaluation since past work gets ignored.

Leniency bias
The leniency bias occurs when the manager has a general tendency to be lax about giving a bad appraisal, and fears that it will not be taken in the right spirit by his subordinate. So he gives higher ratings on parameters where actually a lower rating is deserved.

Appropriate changes in the current appraisal system
The current appraisal method is in urgent need of a revamp. It has glaring inconsistencies, and if continued will not only bring down the confidence levels in this person, but also eventually lead to his resignation. For starters, it needs to be made more systematic, clear, objective and constructive. The 360-degree evaluation doesnt seem to be a very good idea here since this particular employee has not been really liked by his co-workers. There is a high possibility that he will be given a very subjective and biased appraisal.

My recommendation for him would be the management by objectives (MBO) appraisal method. He is clearly a very valuable resource for the factory and possesses skills that no one else does. In that sense it is not possible to evaluate him on his technical competencies, unless a specialist is also made a part of the process. But what his manager can evaluate him on are his contributions to the business (in terms of cost savings) and also his ability to meet his deadlines always. The management by business objective will help link his personal goals with the goals of the company, and hence be more holistic. Also, he will get an accurate picture of his contribution to company growth, and pride in his work will increase.

Regarding his seeming attitude towards co-workers, it could come from a sense of superiority or it could be instigated by them due to a difference in personalities. Whatever is the case, this is clearly an issue, and the manager needs to look into this. Constructive feedback and improvement on his relationship management will make this a complete and comprehensive appraisal.