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How does the shift to a learning organization
play out in terms of the management functions we have studied?
Performance
appraisal
- Problems:
- if it isn't done fairly, workers
may be disenchanted, demoralized, quit
- New Realities:
- in a more mobile workplace,
workers are more likely to leave if they don't feel appreciated,
compensated
- anti-discrimination laws may
lead to lawsuits by those who feel they've been discriminated
against in performance review
- New Practices:
- May be used for evaluative purposes,
developmental, or both:
- evaluative ones related to activities
such as promotion, salary, and individual's performance compared
to others'
- developmental ones are to give
feedback on performance, isolate individual's strengths and weaknesses,
and then decide how to help them improve.
The latter are typically better received by workers, because
they often feel the evaluation isn't fair.
- Two aspects contribute to employees'
perception that evaluation is fair:
- Procedural justice:
This refers to workers' perception that the process is fair,
not biased. Important because research shows that people who
feel they were treated fairly will have higher levels of job
satisfaction even if they don't get good evaluations. Workers
will want to feel they have some degree of control over the process
-- what's called instrumental control. They also want to feel
they can present evidence that is relevant to their performance:
" Also known as process control.
- Distributive Justice:
this refers to how the company allocates rewards among employees.
"..rewards related to the outcomes of the PA process must
be allocated in accordance with the findings from the appraisal."
Link between performance and rewards must be clear and understandable.
To achieve distributive justice, workers should be involved in
the process' design and implementation.
- using a combination of the many
new performance appraisal tools may make the process fairer,
as well as easier to administer.
- Benefits:
- Gives worker feedback on
performance
helps make certain there's consistency between a worker's behaviors
and organization mission goals and objectives. Particularly important
for new workers , so they can tell how they're doing and how
others perceive them --can help workers become more effective,
and motivated. Should
concentrate on results, not on behaviors.
- A tool for organizational
socializing and control
helps workers understand the company's goals and expectations,
culture, etc. -- to do well, you have to understand corporate
objectives, help to achieve them (and can be used to discipline
workers as well).
- Hidden benefits:
- If a company links pay to performance,
then it must establish criteria to justify raises, based on employee
performance. Can also be used to determine merit pay.
- can help workers "learn
what activities are important, relevant and peripheral, and to
adjust their actions as necessary."
- Can also involve setting goals,
and helping workers to refine skills, which in turn makes them
more motivated and satisfied.
- doing them continuously throughout
year, rather than just once a year, can take stress out of process,
make them more of a motivational tool
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