MGMT 201 Managing People and Organizations | Accounting Policies

Simple accounting changes that could reduce biases in performance measures

For any organization, its performance evaluation is a must in which is generally done at management level. People sitting at the managerial level may use different accounting policies for performance evaluation of an organization which is also important for the purpose of decision making of business. Some of the data organization can rely on during performance appraisals, or evaluations are compensation adjustments, succession planning, development initiatives, engagement plans and, recruitment and retention strategies in which for them to be executed and be successful relies on the accuracy and fairness of the data for performance evaluation.

One of the changes which can help in minimizing and avoiding bias in the performance measures process is for managers having appraisals on periodic and timely feedback instead of an annual basis. For instance, the managers are instead of doing the performance evaluations at only the end of the year; they should do it on a monthly basis. Embracing a management system for performance in which employees can attach files and notes it ensures their actual accomplishments are in consideration while the managers are done with their appraisal.

By having different and, several parties input and use of the reviews result in forms a basis of an accurate look at the performance of an employee when rating their overall performance hence being one of the keyways of reducing or eliminating bias.

Through benchmarking and calibration, managers and supervisors of any organization it’s useful for them to meet and deliberate why and how they rate performance hence ensuring rate consistency in all departments. (Bol, 2011)

Also for managers to reduce the chances of bias, while making a judgment on the performance they consider using ‘Goal completed, Goal Started’ rating scale instead of the traditional ‘Exceeds Expectations, Meets Expectations’ rating scale.

Using automated or online performance management system in which appraisal templates can be customized and built, and also an organization can maintain and update them. It is a flexible and quick way of avoiding bias in the appraisal.

In addition, the use automated performance management software helps in monitoring the ratings of performance evaluations done by managers and supervisors, which is not only helps in fairness to employees appraisal but also useful in making business decisions based on accurate results. (CRG emPerform, 2015)

Some of the implications of different types of change for the change manager

Most of the change management work is done by managers, senior leaders, and supervisors in an organization. The change management is a discipline which involves ensuring a smooth implementation of change with lasting benefits and also considering its impacts on the organization and its people. A change manager facilitates the process of the change.

For a happened change, it is unpredictable and uncontrollable in nature which is due to impact of external factors like currency devaluation, political and social changes, which their effects are unknown and cannot be controlled directly.

For a change manager, reactive change occurs due to response to a certain event, for instance, increase or decrease in demand and supply of company’s service or products, response to a serious crisis like stiff competition, technological changes, etc.

In an organization, implementation of a change can be due to prior anticipation by either tuning or reorienting themselves in facing environmental pressures as an anticipatory measure.

Planned or developmental change which can be calculated involves organization restructures, incentive system changes, team building and introducing employee welfare measures are implemented aimed at how to improve current operational processes and achievement of pre-defined goals.

For the purpose of forming a healthier and robust system in an organization, an incremental change which happens at subunits or micro level can be implemented through learning from own experience and creating an adaptive mechanism in order to achieve targeted organizational goals.

Due to competitive pressures, an organization can need an operational change which more focused on improvement of quality or service delivery. (Thought Leadership, 2018)

Management style change is an example of a strategic change in an organization which affects various organizational components and strategy and its overall performance.

Due to rapid changes in governmental policies and control or increased competitive pressures can necessitate the implementation or execution of directional change.

In the case of a volatile business environment, productivity decline or leadership failure may lead to having a fundamental change in order to redefine the vision/mission of an organization.

Business failure in the long-term, a total change can be required for the purpose of aligning the vision of an organization with its strategy, business performance and, employee morale and also commitments. (Juneja , 2014)

LIRN-based research and, internet learned outcomes are applied to management, leadership, or any decision-making position.

For any organization, the top leaders and managers are the one responsible for making decisions. They control, coordinate, plan and give directions in the business operations of an organization. This ensures the effective and efficient running of operations in the organization aimed at achieving its organizational goals and objectives. It is the work of the management in an organization to make fruitful decisions aimed at improving the organizational operations and activities. The management is responsible and accountable in case of business failure.

References

Bol, J. C. (2011). The Determinants and Performance Effects of Managers' Performance Evaluation Biases. 1549-1575.

CRG emPerform. (2015, May 08). How to Avoid the 5 Most Common Employee appraisal Biases. Retrieved from CRG emPerform: https://employee-performance.com

Juneja , P. (2014). Different Types of Change. Change Mangement, 45-78.

Thought Leadership. (2018, November 08). What is Change Management and How does it work? Retrieved from Thought Leadership: https://www.prosci.com