All Theses, Dissertations, and Capstone Projects

Year of Award



Master of Business Administration (MBA)


College of Business & Professional Studies

Degree Program



Business Administration


management, employee, appraisal, review


For years company's have struggled with issues relating to the assessment of employee performance. McDonnell Douglas Corporation (MDC) is no exception. Along with recent economic changes coupled with contract setbacks, MDC is in a spiral of personnel decline.

In the past, die different components, divisions, and departments of MDC exercised great autonomy in defining the criteria for internal assessment. There was no consistency throughout the corporation, no measurement of effectiveness, and no real scale for measuring performance for the individual within the corporate structure. The workers and management did not fully participate in the process. Most felt that the rating scale did not relate to the work performed in their group. In distributing the information, management was not consistent. The environment that die appraisals were being completed was not conducive.

Reductions in force have made it increasingly necessary for companies to maintain documentation on all aspects of die employee interaction within the organization, and to ensure the criteria used is fair, legal and defensible in court Utilized correctly, the performance appraisal process can be a valuable tool for management In the face of a changing economy and work force, the performance appraisal can better assist managers in retaining the best employees and developing an appropriate match to the employees skill base.

The disparity in MDC's employee appraisal processes made it difficult to evaluate employees across components, divisions and departments. Under the directive of the Chief Executive Officer, John McDonnell, a uniform performance appraisal process was developed. The Continuous Performance Improvement Process, CPIP, is intended to be consistent, participatory, and developmental to the overall goals for employee development and maintenance at McDonnell Douglas.

In formatting the thesis, it is necessary to explore several aspects of employee appraisal processes and CPIP:

o What are the components of successful appraisal processes?

o Does CPIP meet the criteria of a successful appraisal process?

o Does CPIP successfully tie performance to merit pay?

An analysis will be conducted and recommendations made to improve the performance evaluation process at MDC. Recommendations will be sent to the People Policies Committee, of the corporation, for further review.

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