complete by deadline

Issue:

An issue that the New Horizon team has noticed is CanGo’s managements tendency to rate all employees either average or above average, for appraisal purposes. When performing the appraisals CanGo’s managers will tend to give the employee the “benefit of the doubt”, and give them a higher score rather than a lower one. None of CanGo’s employees received less than a three on their appraisal, while most of them received a four. This issue really involves two performance appraisal problems: central tendency and supervisor leniency. By giving all employees similar ratings it distorts the evaluations, making them less useful for salary, promotion, and counseling purposes (Dessler, 2011).

Recommendation:

For the issue of supervisor leniency and central tendency the New Horizon team would recommend using some sort of employee ranking system. The use of a ranking system would force supervisors to identify the employees as either high or low performers. Ranking categorizes employees from best to worst, in terms of performance, so there is no possibility of giving all employees similar ratings. There are a couple of different methods used for the ranking of employees. Those methods include alternation ranking, paired comparison, and forced distribution. The alternation ranking method starts with listing the best and worst performing employees, as they are usually the most distinguishable, and from there working your way toward the middle. The paired comparison method is a little more precise than the alternation ranking method; it compares every employee against every other employee for every rated characteristic. And finally the forced distribution method is more of a combination of graphic rating and ranking, where only a certain portion of the employees are allowed to be placed within certain performance categories. The use of any of these employee ranking methods would eliminate CanGo’s problems with central tendency and supervisor leniency.

Reference:

Dessler, G. (2011, December). Human Resource Management, 13th Edition. [devry]. Retrieved from https://devry.vitalsource.com/#/books/9781269550970/