HUMAN RESOURCE MANAGEMENT GOALS AND FUNCTIONS

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1 EMPLOYEE APPRAISAL

2 HUMAN RESOURCE MANAGEMENT GOALS AND FUNCTIONS CSO Strategy Attract an Effective Workforce HRM planning Job analysis Recruiting Selecting HRM Environment Legislation Trends in society International events Changing technology Maintain an Effective Workforce Wage and salary Benefits Labor relations Terminations Develop an Effective Workforce Training Development Appraisal

3 WHERE ARE WE NOW 1. Staffing 2. Training and development 3. Performance management 4. Compensation and benefits 5. Employee relations 6. Personnel policies 7. Compliance with laws Performance measures Performance appraisals Discipline

4 PERFORMANCE MANAGEMENT AND MEASUREMENT Performance management system - A process of establishing performance standards and evaluating performance in order to get to objective human resource decisions and to provide documentation to support personnel actions Performance Management The process of ensuring that employees activities and outputs match the organization s goals. Performance appraisal - evaluation of an employee s job performance

5 WHY PERFORMANCE MANAGEMENT? Appraisals play an integral role in the employer s performance management process. Appraisals help in planning for correcting deficiencies and reinforce things done correctly. Appraisals, in identifying employee strengths and weaknesses, are useful for career planning Appraisals affect the employer s salary raise decisions. The belief that traditional performance appraisals are often not just useless but counterproductive. The necessity in today s competitive environment for every employee s efforts to focus on helping the company to achieve its strategic goals. A management philosophy that requires each employee to continuously improve personal performance

6 WHO SHOULD DO THE APPRAISING? Appraisal involves as minimum - the worker and a nominated appraiser - the immediate supervisor But also: Peers Rating committees Self-ratings Subordinates 360-Degree feedback is the most comprehensive

7 360-DEGREE PERFORMANCE REVIEW An appraisal device that seeks feedback from a variety of sources Process that gathers feedback from a review panel that includes coworkers, supervisors, team members, subordinates, and sometimes customers

8 PERFORMANCE APPRAISAL ROLES HR department Serves a policy-making and advisory role. Provides advice and assistance regarding the appraisal tools to use. Prepares forms and procedures and insists that all departments use them. Responsible for training supervisors to improve their appraisal skills. Responsible for monitoring the system to ensure that appraisal formats and criteria comply with EEO laws and are up to date. Supervisors Usually do the actual appraising. Must be familiar with basic appraisal techniques. Must understand and avoid problems that can cripple appraisals. Must know how to conduct appraisals fairly.

9 PERFORMANCE APPRAISAL PROCESS Process of observing and evaluating an employee s performance, recording the assessment, and providing feedback to the employee Steps Developmental goal setting Ongoing performance monitoring Ongoing feedback Observing and assessing performance Providing feedback to employee - interview Rewards, recognition, and compensation Workflow, process control and return

10 Performance Appraisal Form Graphic rating scales Alternation ranking method Group-order ranking Individual ranking approach Paired comparison approach Management by Objectives (MBO) Forced distribution method Narrative Forms DESIGNING THE APPRAISAL TOOL Behaviorally anchored rating scale (BARS) Critical incidents method

11 Share the appraisal form before Prepare for the interview Have the employee prepare, too Be direct - Don t tiptoe around HOW TO CONDUCT THE APPRAISAL Be specific - talk in terms of objective work data Don t get personal INTERVIEW Don t make the subordinate feel threatened during the interview. Give the subordinate the opportunity to present his or her ideas and feelings and to influence the course of the interview. Be a helpful and constructive supervisor when conducting the interview. Offer the subordinate necessary support for development and change. G.Dessler, 2003

12 EXERCISE 15 Appraise one employee

13 PERFORMANCE EVALUATION ERRORS Stereotyping/bias Halo/horns effect Primacy/recency effect Motivations for soft (lessthan-candid) appraisals Central tendency Leniency/strictness Blind spot Subjectivity

14 THE MOST COMMON MISTAKES Appraisal comes as a surprise no announcements, no preparation The mark comes as a surprise no feedback until the end Untrained staff Unskilled appraisers No consequences for any mark Poorly designed system or not at all Incomparable marks no standards No privacy No recording system to base marks on Misused marks

15 HOW TO AVOID APPRAISAL PROBLEMS Learn and understand the potential problems, and the solutions for each. Develop and use the right appraisal tool. Each tool has its own pros and cons. Train supervisors to reduce rating errors such as halo, leniency, and central tendency. Have raters compile positive and negative critical incidents as they occur. Have managers effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development

16 THE APPRAISAL MARKS Types of appraisal interviews Satisfactory Promotable Satisfactory Not promotable Unsatisfactory Correctable Unsatisfactory Uncorrectable What to do with them?

17 WHEN PERFORMANCE FALLS SHORT Remove performance impediments Mismatched skills Inadequate training Employee s personal problems Discipline Actions taken by a manager to enforce an organization s standards and regulations Employee counseling A process designed to help employees overcome performance-related problems Employee training and development A process designed to help employees gain necessary skills related to performance problems

18 Thank you for your attention!

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