An effective performance evaluation system that can benefit an organization fully has to start with supervision. At supervisory level, evaluation mainly depends on the way leaders give out instructions like the leaders of teams and supervisors.
The manner of interaction between them and their juniors, how they encourage and counsel them and the manner in which they correct bad behavior and performance matters in evaluation. According to Gordon (1991), supervisors of an organization need to be given extensive training on important issues of the company.
For effective evaluation, supervisors have to give their subjects targets that are reasonable and clear and ensure that they follow them up to make sure they are well understood. Feedback on behavior of employees and their performance should be regularly taken to ensure that they work according to the expectations of the organization. Evaluation should be based on job specification of the employees and all information pertaining evaluation should be disclosed to the employees.
Another aspect that is critical to effective evaluation in an organization is documentation. In case there are disciplinary actions to be taken, termination of employment or any issues arising, documentation is important to protect the decisions and integrity of the company.
Documentation should be done in time and should mainly focus on performance and behavior of the employees. An evaluation system that has the support of top management of an organization and is viewed by all the stakeholders in the organization as fair and productive is the one suitable for effective evaluation.
Assessment of individuals within an organization has to be on the basis of performance agreement which is essential in the performance of the organization. I would recommend an organization to use the following tools for evaluation purposes; an evaluation matrix which will assist in close monitoring of evaluation procedures of the organization, an evaluation planner which will give guidelines on how to conduct planning and evaluation processes, and an outcomes planner to help identify the main targets of evaluation.
I would agree to Management by objectives (MBO) because it brings together the management and the employees to agree on objectives that are agreeable by all stakeholders which is an important aspect for effective evaluation (Gordon, 1991).
Human resource management practices are very important to an organization. It is a legal identity that links the employees and the organization as well as guides the organization on employment procedures and laws that may be different from the government laws.
Stigler (1950), argued that, for any organization to be successful, there is need for skilled personnel, a work force that is dynamic and committed to the organization, a management that is innovative and flexible, the ability to reward and nurture its experienced employees and a link between labor unions and management. In order for the management to realize these goals, a company needs to have a reliable human resource practices.
Besides hiring new staff, human resource management is responsible for making sure that employees are committed and loyal to the organization by setting up systems and procedures that make employees to be committed to their work. The human resource department updates employees of the company requirements and setting up conditions for job security and conditions of work. It is in this regard that I agree with the fact that human resource practices add value to an organization.
Marginal utility is based on the assumption that utility can be measured by assigning numerical numbers which implies that utility can be quantified. In this regard, a person’s work can be expressed in terms of quantitative terms by allocating numbers that signify a given level of performance.
It is also based on the assumption that you can come up with an hypothesis of a person by observation. Marginal utility analysis has a weakness since it comes up with solutions that are not specific, but using an analysis that is based on cost and curves, human resource activities can be made to have definite decisions (Stigler, 1950).
References
Gordon, S. (1991). “The Scottish Enlightenment of the eighteenth century”. History and Philosophy of Social Science. Edinburgh: Routledge.
Stigler, G. (1950) “The Development of Utility Theory”, I and II, Journal of Political Economy, issues 3 and 4.