Performance appraisal is a systematic and continuous process that involves the rater and the ratee, where the former evaluates the performance of the later with respect to laid down standards (Bauer & Erdogan, 2009). During the performance review cycle, the evaluator constantly interacts and observes with the employee in order to establish his or her level of performance based on the company criteria.

Feedback is essential during this process to give the employee a vivid report with regard to achievement of objectives as initially set. This paper seeks to compare Coca-Cola and General electric’s performance appraisal policies and examine their effectiveness. In 2011, GE emerged number six on fortune 500 companies according to fortune magazine. On the other hand, Coca-Cola attained the rank of 70 on this list of top 500 fortune companies based on revenues and profits (CNNMoney, 2011).

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Analysis of Co-Cola’s Employee Performance Appraisal

In Coca-Cola, performance management entails all programs designed for annual employee appraisal. This concerns procedures used in communicating work expectations and relaying of feedback on a continuous basis through yearly performance rating. Performance appraisal in Coca serves to promote and compensate employees among other management decisions (Bauer & Erdogan, 2009).

Management/Performance by Objectives (PBO)

The company has implemented a single performance appraisal system for all employees geared toward achieving fairness based on job-related metrics. The process implemented offers an opportunity for improvement in internal oversight as a means to achieve equal employment opportunity (EEO).

Management by Objectives’ (MBO) is a process by which employees and their seniors meet to identify the underlying goals and objectives. In this process, employees set their own goals, but the set company standards are used as standard measures against which their performance will be rated. Peter Drucker introduced this concept of management by objectives in the early 1950s (Taylor, 1994). The figure below shows an overview of MBO process.