Major Job analysis is critical to developing an effective performance system that motivates employees to be star performers. When employees do not understand or don't have well-defined objectives it is difficult for them to perform at their highest level. Long ago, the management expert W. Edward Deming, a proponent of total quality management, advocated eliminating performance appraisals. Among his arguments was that in many organizations performance reviews turn into bureaucratic routines that emphasize the interests of supervisors only. The problem with Deming's solution, however, was that it placed employees in the same classification regardless of their contributions.
Employees tend to be quick studies.
While some are quite conscientious and driven to always work hard, others may quickly shift to a pace that appears to fit the system. When companies make it clear to employees that their extra effort does not count, many pull back. Because a performance review system that clearly meets performance guidelines is so important to retention and promotions, as well as employee satisfaction, it is definitely to the small-business owner's advantage to invest time in designing a good system. An ongoing program of updating the job analysis of key organizational positions puts owners and managers in the position of motivating employees while completely complying with performance law. Because the duties and the knowledge, abilities, skills and other characteristics needed to carry out the various organizational tasks form the basis of the hiring and retention decisions, this is the place to start.