Judgmental vs Development Evaluation

Judgemental evaluation—it is a subjective way of evaluation where the performance of one manager is compared against that of others (ranking) or it is compared to an obsolete standard (rating).

Used to assess managers in order to make decisions on promotion, transfer, compensation or termination —it will help answer questions on whether the personsiare promotable, whether they should be transferred or whether they should receive a pay rise.Used to make decisions on the use and reward of human resources. It must be conducted accurately and objectively otherwise it could lead to mistakes in promotion and compensation.

Development evaluation—used to improve the person being evaluated. Tries to come up with recommendations regarding the training and professional growth of the person i.e. what skills they need, what training they should undergo etc.

Note

•    After evaluation decisions on either promotion or termination can be made.

•    Promotion and the Peter Principle

•    More pay, higher status, more responsibilities, power and authority usually accompany promotion. An individual who performs well at one level may be unable to perform at a higher level therefore; the person must have leadership skills and other skills that affect results. Promotion is also based on very thorough evaluation because promotion of a less than best candidate can adversely affect morale especially from others who may also have wanted the promotion.

•    Termination based on Evaluation

Management positions are not protected by union contracts, termination of their services is not difficult. Where there is a good appraisal and evaluation system the firm can identify individuals who are performing poorly and who have little hope of moving upwards and those can be asked to retire voluntarily. Where termination is to be demanded, it should be based on a comprehensive evaluation of the individuals performance. The superior demanding the termination should have all relevant information showing that the person being told to leave may never perform satisfactorily.