8. (TCO8) Briefly explain what is meant by objective and judgmental performance evaluation. Discuss two methods of judgmental evaluation. (Points : 10)

Objective performance evaluation refers to the assessment of an employee's performance based on measurable and tangible criteria. It involves using quantitative data such as sales figures, production numbers, or percentage of goals achieved to evaluate performance. Objective evaluations are considered more unbiased and fair since they are based on concrete evidence rather than subjective opinions.

On the other hand, judgmental performance evaluation is based on the subjective assessment and judgment of a supervisor or manager regarding an employee's performance. This evaluation method relies on the opinions, observations, and qualitative judgments of the evaluator. It can be influenced by personal bias or preferences, making it less reliable and potentially unfair.

Two methods commonly used for judgmental evaluation are:

1. Ranking: Ranking involves comparing employees against each other and creating a list from the highest performer to the lowest. This method helps differentiate employees based on their relative performance levels. However, ranking can lead to unhealthy competition and discourage teamwork if employees perceive their rankings as threats to their job security.

2. Rating scales: Rating scales involve using a predefined set of criteria or performance dimensions to assign ratings to employees. Each criteria is ranked on a numerical scale that indicates the level of employee performance. This method allows supervisors to evaluate multiple aspects of performance, but it can also be subjective as different supervisors may interpret the criteria differently.

To sum up, objective performance evaluation is based on quantifiable data, while judgmental evaluation relies on subjective assessments. Two common methods of judgmental evaluation are ranking and rating scales.