Employers use a variety of performance appraisal methods to support their overall performance management systems. Examples of appraisal methods include graphic ratings scales, 360-degree evaluations, employee self-assessments and forced distribution. Essay performance appraisals provide the best opportunity for managers and employees to freely and openly discuss performance, since the essay approach has no limitations on the format posed by other types of employee evaluation.
The capital budgeting decisions are pertaining to investment decisions which will create assets which will in turn create products/ services which create the profits. Generally, current assets are not earning assets but they act as a buffer for the smooth operations of the business. But the long-term investment decisions includes the mission and visions of the company and hence is of strategic importance. There are various techniques available for the appraisal of investment proposals. They include the traditional methods, discounted cash flow methods. But recently there is a tendency to shift to value management models and modified versions of DCF models is reflected among companies. This essay explains the nature of each method of appraisal and also explains the recent trends to use the value management models with examples.
The advantages of essay performance appraisals are also its disadvantages in certain regards. An essay performance appraisal provides managers with an opportunity to evaluate their employees without the normal constraints of a highly-structured performance appraisal method. Managers who excel at writing essay performance appraisals are usually seasoned experts who enjoy good working relationships and excellent rapport with their employees. On the other hand, essay appraisals pose a challenge to managers with minimal skill levels in report-writing and delivering well-constructed assessments of employee performance.
Since essay appraisals are to a large extent unstructured and open-ended, lack of standardization is a major problem. The open-ended, unstructured nature of the essay appraisal makes it highly susceptible to evaluator bias, which may in some cases be discriminatory. By not having to report on all job-related behaviors or results, an evaluator may simply comment on those that reflect favorably or unfavorably on an employee. This does not usually represent a true picture of the employee or the job, and content validity of the method suffers.
Essay methods of performance appraisal
The essay method involves an evaluator's written report appraising an employee's performance, usually in terms of job behaviors and/or results. The subject of an essay appraisal is often justification of pay, promotion, or termination decisions, but essays can be used for developmental purposes as well.
Essay Method Performance Appraisal Employee …
Moreover, because the essays are descriptive, the method provides only qualitative information about the employee. In the absence of quantitative data, the evaluation suffers from subjectivity problem. Nonetheless, the essay method is a good start and is beneficial also if used in conjunction with other appraisal methods.
The Essay Method of Performance Appraisal | eHow
Graphic rating scales, management by objectives and narrative-essay are among the most common types of performance appraisals suitable for two-way exchange during a performance appraisal. Although graphic rating scales are typically a unilateral method of evaluating performance, they can be modified to create a two-way method of appraisal. Management by objectives and narrative-essay methods generally require some employee input anyway; they also can be modified to produce a formal two-way method of performance appraisal.