PERFORMANCE REVIEW SOFTWARE: MAKING A DIFFICULT JOB EASIER OR MAKING THINGS WORSE?
Many managers dread appraising the performance of worker and either put it off or do it poorly. However, everyone wants and deserves to know how they are doing. A growing number of companies are offering technology that promises to solve this problem. Software can now not only make the rating task paperless and as easy as point and click, but also generating feedback and performance improvement suggestions can be entirely automated. For example, performaWork is a company that offers a software package, called eWorkbench, that allows 3600 appraisal by bosses, peers, subordinates, and even customers. The ...view middle of the document...
While the suggestion of managers being able to blame a poor review on the software is convenient, managers who are doing an effective job of performance appraisals will appreciate the user-friendliness of these systems and will view them as a tool to help the to develop individuals who report to them.
2. What disadvantages might there be to using the electronic approach to performance reviews? Examine this issue from the perspective of both managers and employees.
The disadvantages are that because of the ease of the use of the system, participants in providing feedback may move through the responses quickly in a “point an click” mode and neglect to put the appropriate amount of thought required into the questions.
3. The major vendors of hosted online performance appraisal systems include KnowlegePoint, Softscape, PerformaWorks and SuccessFacors.com. These applications can vary in price depending upon the number of employees and degree of functionality desired. However, a price of around $100,000 is typical for a midsized firm. The electronic approach offers savings in time and labor. A traditional (paper-based) approach to performance appraisal has been estimated to cost $1,500 per employee with some of the sources of this cost being time spent (1) creating goals and objectives, (2) conducting reviews, (3) designing, printing, copying, filing and distributing appraisal forms, (4) training supervisors to conduct appraisals, and (5) dealing with post-appraisal appeals and grievances. An electronic approach might eliminate the costs of designing, printing, and so on, but the approach may not influence the other sources of cost. Do you think the costs of the online performance appraisal systems are worth it? Why? Consider expected costs and benefits to provide a rationale for your answer.
While the costs for implementing an online performance appraisal system may at first seem daunting, the benefits in such a system can improve the efficiency of the organization from an administrative standpoint. As mentioned, the automated aspect of the system reduces the need to have the clerical support necessary to administer traditional systems, and there is a clear value to that component of the process. However, the...