Internal Evaluation:

This is evaluation based solely on observation of a manager’s performance. No structured instruments are used but subjective judgements are made. It is a continuous process with no formal design—the evaluator gathers data through informal observations as the manager performs.

Used widely in small organizations and also at top levels of big firms e.g. rating of key executives by a president is highly informal. It is the best way of appraising top level managers since their success depends on many intangible factors. Unlike other evaluation methods the informal method is simple -no forms, no interviews, or even formal infraction. It is also not costly, no need for experts to design it. It may give insights regarding day to day activities. It is subjective and judgmental i.e. it is affected by personal feeling towards the individual being evaluated. Since it is not recorded, it is difficult to come up with corrective action as it is not in any usable form.

Note

Manager evaluation is essential as it provides information that is useful in making decisions regarding promotions, compensations, transfers, terminations and placement. Above all, it gives useful information on how to improve the skills and abilities of a manager. Appraisal can therefore help managers map out the course for a career in management.

Conclusions

From the methods advocated for manager evaluation, no one method is the best in all situations.However, certain steps can be followed that will help make manager evaluation more effective.
The process therefore should follow the following guidelines if it is to be effective.
•    The evaluation system is to be kept as simple as possible i.e. it should not take too much time or too much money to implement.
•    As much as is possible the system should be kept free of personal bias and subjectivity. The evaluation should not be influenced by the evaluators attitudes and preferences towards issues that will affect the evaluation.
•    The evaluations should be frank and honest.
•    The personnel affected should be advised on the methods and the purposes of the evaluation—so that they can view evaluation positively.
•    The evaluation should be frequent and at stated intervals—so that problems can be detected early and corrective action taken in time. The frequency will of course be affected by the level of job, how long the individual has been on the job, and finally the importance attached to evaluation by senior management.
•    The results of the evaluation should be used constructively, i.e. should help make decisions e.g. on promotion, help managers improve themselves and help to show the managerial talents the firm has.