Introduction
Over the years, health care organizations have developed performance management systems that evaluate various strategic plans geared at promoting staff performance as a way to ensure high-quality patient care (Giannini, 2015). This management system is achieved through the performance appraisal system, a structured formal evaluation system that examines the accomplishments and weaknesses of the staffs and initiates plan for skills development and improvement (Vaghela, 2015).
In this paper, we evaluate three performance appraisal methods that could be used in a health care organization. Next, it discusses the advantages and disadvantages of the performance appraisal method. Also, the paper analyzes legal ramifications applied the performance appraisal processes. The paper winds up by analyzing the most beneficial performance appraisal method that could be applied to assess the performance of health care employees.
Research a minimum of 3 performance appraisal methods that could be utilized within your organization
360-Degree Feedback Appraisal
This performance appraisal method is highly popular and involves evaluation of staffs from multiple levels in the organization and external sources. In this method, the staffs are rated from people around them, including the senior managers, team members, subordinates, employees themselves and the patients. This system depends on anonymity; the feedback received does not state the sender’s identity, which makes it convenient for the staff to give authentic feedback without any fear of a lash back or victimization. Research advocates that 360-degree feedback is helpful in performance improvement and behavior change (London & Beatty, 1993). A general method of the way this process is carried out is about 8-12 people fill out a form regarding the performance of an employee. It is mostly done online where the respondents are asked to answer a few multiple choice questions regarding the performance of a department or title. The respondents can also write in additional comments for explanations, suggestions or complaints. The survey questions are formatted as a rating scale, where the respondents ‘rate’ the performance. The same survey is then given to the person receiving the feedback, where they are required to self-rate their performance based on the same questions. Managers use this appraisal method to evaluate their strengths and weaknesses.
Graphic Rating Scales
The graphic rating scale is one of the most widely applied methods to evaluate and reward the performance of employees. Essentially, the evaluator records the performance of the staff on a scale that incorporates various categories, usually from 5 to 7 in number. These numbers define the scale of performance such as needs improvement, meet expectations, or outstanding (Performance management, 2011). Typically, the evaluation aspects are comprised quality, behaviors, quantity of work, and interpersonal skills.
Management By Objectives (MBO)
Management by Objectives is a performance appraisal method where managers and the staffs set various objectives to be accomplished by the employees (Vaghela, 2015). These objectives are evaluated periodically by assessing the performance of the staff and are then rewarded according to the results. In essence, it focuses more attention on what the staffs should accomplish and not how it has to be accomplished. It is a system where both the managers and the employees set goal(s) together. In this arrangement specific goals are set for a specific time. The process of setting organizational goals is top down, and in this appraisal system, the organizational goals are translated into personnel goals. Peter Drucker, a management expert, was the first to utilize this technique (Wood & Wood, 2005). The main focus of MBO is on planning (strategy), which means that the managers and employees take a pro-active approach instead of reacting to events and resorting to tactics. These goals are specific and measureable, which are later evaluated for performance as these goals are directly in sync with the organizational goals. An example would be insurance agent achieving a personal goal of selling hi services to two additional clients, which would be part of the organizational goal of monthly revenue growth. MBOs are personal goals on the surface but they are managed and supervised the way an organizational goal is monitored.
Discuss the positives and negatives of each performance appraisal process
360-Degree Feedback Appraisal- Positives
The method is highly popular and can be used for training, succession planning, and professional development.
It provides a more objective measure for staffs’ evaluations since it applies multiple criteria for evaluation.
It helps to reduce or eliminate common appraisal errors since it incorporates perspectives from numerous sources.
Negatives
The appraisal method applies numerous evaluators which who obviously take more time.
Input from other staffs and physicians who may compete for similar rewards and promotion may distort the evaluation information intentionally.
Input from external sources may impact negatively on the confidentiality of the feedback.
Graphic Scale Method- Positives
It’s a highly popular method due to its simplicity, which allows immediate evaluation of many staffs.
Since the method quantifies the ratings, it allows for comparison of the performance of employees.
The appraisal method creates a space for the evaluator to justify the comments made; thus, it helps the evaluated staff to identify and improve on the commented deficiencies.
It allows the manager or the evaluator to compare the staff performance to other staffs in the organization.
Negatives
Different supervisors tend to use the same graphic scale in different ways; some may be too strict or too lenient.
This method tends to add up the final performance score and assumes that a particular excellent performance in a specific area can correct another poor performance.
It is hard to evaluate and rate the average performing employees since it tends to identify the best and the poor performers.
Management by Objectives (MBO) - Positives
It rates the employees based on their own goals and capabilities using the set targets under the SMART criteria.
It is a means of achieving a constructive end since it emphasizes on the future rather than on the present.
It is a suitable method to develop the employees as they acquire ongoing feedback, usually at regularly scheduled intervals.
Negatives
In most cases, the staffs have different goals and expectations, which make it more difficult and time- consuming to evaluate them, unlike when using standard assessment criteria.
It applies an inflexible and rigid evaluation of set goals; thus, it may be hard to accept desirable changes that may arise.
It over-uses the quantitative goals, which may jeopardize the qualitative aspect of those goals.
Discuss the legal ramifications that could be inherent in each of the performance appraisal processes
It is extremely crucial for the health care organizations to consider the implications of the performance appraisal. Legal ramifications ensure that employers and evaluators apply clear and positive evaluations to prevent employee lawsuits (Performance management, 2011). A review of court cases stipulates that the evaluators should apply legally defensible performance appraisal methods. The performance appraisal method applied should prevent the evaluator from controlling the career of the employees. Besides, the legal applications of the appraisal method recommend that the evaluators should have adequate knowledge and skills of the staffs’ job performance.
Choose which of the performance appraisals would be most beneficial and explain why you chose that appraisal method
Basing from the aspects of each performance appraisal method, the 360-degree feedback evaluation method would be the most beneficial method. Primarily, it is a popular method applied by almost 90 percent of organizations (Tracy & Juan, 2007). Since it can also be used for training, succession planning, and professional development, it is an efficient way to boost the performance of the staffs in a positive way. It is highly effective and provides a more objective measure for staffs’ evaluations since it applies multiple criteria and evaluators for evaluation. Most importantly, it is highly legally defensible.
References
Giannini, M. (2015). Performance and quality improvement in healthcare organizations. International Journal of Healthcare Management, 8(3), 173–179.
London, M., & Beatty, R. W. (1993). 360‐degree feedback as a competitive advantage. Human Resource Management, 32(2‐3), 353-372.
Performance management and appraisal 8 learning outcomes. (2011). Performance management and appraisal 8 learning outcomes. Human Resource Development, 8(4), 234-260.
Tracy, M. & Juan, R. (2007). Using 360° Feedback to Predict Performance. T&D, 61(1), 48–52.
Vaghela, M. (2015, June 9). Smart learning way. Retrieved June 5, 2016, from http://smartlearningway.blogspot.co.ke/2015/01/advantages-disadvantages-of-performance.html
Wood, J. C., & Wood, M. C. (2005). Peter F. Drucker: critical evaluations in business and management (Vol. 1). Taylor & Francis.
