EMPLOYEE PERFORMANCE APPRAISAL WORKSHOP
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1 Phnom Penh, September 2007 CAMBODIA CANADA LEGISLATIVE SUPPORT PROJECT (CCLSP) EMPLOYEE PERFORMANCE APPRAISAL WORKSHOP Workshop objectives: Introduce participants to the general principles, approaches, challenges and technical aspects relating to the development, use and practical implementation of an Employee Appraisal Process Provide participants with concepts, options and methodology to assist them in establishing the main elements of an Employee Performance Appraisal system adapted to their particular organizational context 1
2 WHY ORGANIZATIONS INTRODUCE EMPLOYEE PERFORMANCE APPRAISALS Overall purpose : For public or private organizations OPTIMIZE ORGANIZATIONAL EFFECTIVENESS AND EFFICIENCY 2
3 Specific objectives : IMPROVE PERFORMANCE AND PRODUCTIVITY OF EMPLOYEES IMPROVE MANAGEMENT OF EMPLOYEES DELIVER BETTER STAFF TRAINING AND DEVELOPMENT PROGRAMS IMPROVE MANAGEMENT / STAFF COMMUNICATION IMPROVE MANAGEMENT OF MANAGERS 3
4 IDENTIFY POTENTIAL LEADERS IDENTIFY AND REWARD DESERVING EMPLOYEES IDENTIFY AND ASSIST POOR PERFORMERS INCREASE PROFITS REDUCE OPERATING COSTS DETERMINE PAY LEVEL OR BONUS IN THE REMUNERATION SYSTEM 4
5 HOW ORGANIZATIONS USE EMPLOYEE PERFORMANCE APPRAISALS? How performance appraisals are used is a direct consequence of why these evaluations are used. The performance appraisals become a tool to help the organization to improve in all aspects: IMPROVE COMMUNICATION BETWEEN MANAGERS AND EMPLOYEES PUNISH NON PERFORMING EMPLOYEES PLAN PERFORMANCE IMPROVEMENT FOR UNDER-PERFORMING EMPLOYEES REWARD STRONG EMPLOYEE WORK PERFORMANCE AND OPTIMIZE INDIVIDUAL POTENTIAL 5
6 PERFORMANCE APPRAISAL SYSTEMS: ADVANTAGES AND DISADVANTAGES IN PRINCIPLE, EMPLOYE APPRAISAL SYSTEMS ARE CONSIDERED AN EXTREMELY POSITIVE INSTRUMENT IN THE MANAGEMENT OF AN ORGANIZATION AND ITS EMPLOYEES THERE ARE LITERALLY HUNDREDS OF EMPLOYEE PERFORMANCE APPRAISAL SYSTEMS HOWEVER, EMPLOYEE PERFORMANCE SYSTEMS ARE COMPLEX, SENSITIVE ELEMENTS OF HUMAN RESOURCES MANAGEMENT INTRODUCING AND DEVELOPING A GOOD EMPLOYEE APPRAISAL SYSTEM REPRESENTS A MAJOR UNDERTAKING AND REQUIRES SERIOUS CONSIDERATION, PLANNING AND MANAGEMENT THERE ARE CLEAR ADVANTAGES BUT ALSO DISADVANTAGES OR DIFFICULTIES WITH PERFORMANCE APPRAISAL SYSTEMS 6
7 ADVANTAGES > > > A TOOL TO EVALUATE EMPLOYEES ACROSS THE ENTIRE ORGANIZATION ( STANDARDS, FAIRNESS, COMMON UNDERSTANDINGS,... ) AN EMPLOYEE AND MANAGER ACCOUNTABILITY TOOL ESTABLISHING AN IMPORTANT HR INFORMATION BASE EMPLOYEES KNOW WHAT IS EXPECTED OF THEM 7
8 HELP MANAGERS/SUPERVISORS RATE THEMSELVES SETS THE CONTEXT FOR WORK PERFORMANCE-BASED COMMUNICATION BETWEEN EMPLOYEES AND MANAGERS OPENS THE DOOR TO ESTABLISHING OVERALL PERFORMANCE STANDARDS LINKS INDIVIDUAL EMPLOYEE CONTRIBUTIONS TO ORGANIZATIONAL EFFECTIVENESS 8
9 CAN IMPROVE EMPLOYEE S JOB SATISFACTION HELPS TO SET EMPLOYEE WORK OBJECTIVES CONTRIBUTES TO ALIGNING EMPLOYEE ACTIVITY TO ORGANIZATIONAL GOALS AND PRIORITIES DEALS WITH PROBLEM OR NON PERFORMING EMPLOYEES ALLOWS ORGANIZATION TO REWARD / RECOGNIZE GOOD / EXCELLENT STAFF HELPS MANAGERS IDENTIFY PROBLEMS AND SUCCESSES OF SECTORS OR UNITS 9
10 DISADVANTAGES > > > DIFFICULT TO MEASURE ORGANIZATIONAL BENEFITS A CONSIDERABLE AMOUNT OF WORK FOR ALL INVOLVED A COMPLEX AREA SENSITIVE, PERSONAL CAN BE STRESSFUL FOR BOTH MANAGER AND EMPLOYEE 10
11 NO MANAGERS LIKE TO DO APPRAISALS REQUIRES TIME AND SUSTAINED FOLLOW UP TRACK RECORD FOR EMPLOYEE PERFORMANCE APPRAISAL SYSTEMS NOT VERY GOOD; ONE OF MOST DIFFICULT AREAS IN HUMAN RESOURCES MANAGEMENT OFTEN QUESTIONED BY EMPLOYEES, ESPECIALLY IN TERMS OF FAIRNESS AND OBJECTIVITY 11
12 CONDITIONS FOR SUCCESSFUL MANAGEMENT AND IMPLEMENTATION PERFORMANCE APPRAISAL PROCESS REST ON WELL-COMMUNICATED AND RESPECTED STRONG POLICY AND CLEAR PROCEDURES DEMONSTRABLE SUPPORT OF TOP MANAGEMENT SUBJECTIVITY MINIMIZED PERCEPTION OF A PA SYSTEM THAT IS FAIR AND OPEN MANAGEMENT FOLLOWS UP. CREDIBLE REDRESS MECHANISM OR POSSIBILITIES 12
13 MANAGERS COMPETENT IN DOING PERFORMANCE APPRAISALS UPDATED, VALID JOB DESCRIPTIONS OR CLEAR ASSIGNMENT OBJECTIVES NOT A PAPER EXERCISE EMPLOYEE S APPRAISALS COUNT FOR REAL THERE ARE CONSEQUENCES - GOOD AND BAD EMPLOYEE INVOLVEMENT BASED ON MEASURABLE, VERIFIABLE ELEMENTS AS MUCH AS POSSSIBLE RELATING TO BOTH QUALITY, QUANTITY 13
14 DIRECT OBSERVATION SPECIFIC WORK RESULTS ( TANGIBLE EVIDENCE EVEN W-OUT EMPLOYEE BEING PRESENT DOCUMENTS - E.G. = REPORTS, RECORDS, TEXTS, COMMENTS- CONSTRUCTIVE OR CRITICAL ON EMPLOYEE S PERFORMANCE STANDARDS ARE ESTABLISHED, COMMUNICATED, RESPECTED OBJECTIVES ARE REALISTIC = ATTAINABLE BY ANY QUALIFIED COMPETENT, TRAINED EMPLOYEE MEASURABLE OR VERIFIABLE ELEMENTS OF QUALITY, QUANTITY, TIME COST, EFFECT, METHOD/MANNER 14
15 MAJOR POTENTIAL PROBLEMS TO AVOID A SYSTEM OR APPROACH THAT IS TOO COMPLICATED A SYSTEM THAT REQUIRES TOO MUCH TIME AND WORK USING PERFORMANCE APPRAISALS FOR REASONS OTHER THAN THE STATED PURPOSES NO FOCUSED OR OVERALL QUALITY CONTROL OF PERFORMANCE APPRAISALS INSUFFICIENT TRAINING OF EVALUATORS SUPERVISORS/MANAGERS) UNCLEAR EXPECTATIONS, ASSIGNMENTS, RESPONSIBILITIES TOO MANY EXCEPTIONS or SURPRISES 15
16 ROLES AND RESPONSIBILITIES Managers KEY PLAYERS DEMONSTRATE LEADERSHIP SUPPORT TOP-LEVEL MANAGEMENT ENSURE COHERENT AND CONSISTENT APPROACH GIVE CREDIBILITY TO PA SYSTEM HELPING AND COACHING EMPLOYEES 16
17 Human resources department TECHNICAL ASSISTANCE: ORGANIZATIONAL & INDIVIDUAL INTEGRITY OF SYSTEM ANALYSIS OF PERFORMANCE APPRAISAL SYSTEM RECORD KEEPING Employees COOPERATION ACTIVE INVOLVEMENT OPEN COMMUNICATION WITH SUPERVISOR 17
18 ISSUES / DECISIONS: EMPLOYEE APPRAISAL SYSTEM YES or NO? CURRENT SYSTEM OK? IF NOT, WHAT TO CORRECT??? DO WE HAVE A CONCRETE, REALISTIC PLAN TO IMPLEMENT OR REVISE THE EMPLOYEE PERFORMANCE APPRAISAL PROCESS WORLOAD CAPACITY OF SECRETARIAT CAPACITY OF MANAGERS/SUPERVISORS TO DO EVALUATIONS FOR ALL EMPLOYEES, ALL CATEGORIES? TRIAL OR PILOT PROJECT PERIOD? 18
19 RATINGS??? TYPE OF EMPLOYEE PERFORMANCE APPRAISAL FORM FORM: SAME FOR EVERYONE OR NOT?? FREQUENCY??? USE OF APPRAISALS FOR REMUNERATION OR REWARD EMPLOYEE PARTICIPATION IN PROCESS REVIEW AND REDRESS MECHANISM TRAINING RECOMMENDATIONS: PART OF APPRAISAL PROCESS AS A COMMITMENT TO EMPLOYEE? ACCESS TO APPRAISAL DOCUMENTS 19
20 EMPLOYEE PERFORMANCE APPRAISALS PUBLIC AND PRIVATE SECTORS APPROACHES AND OVERALL GOALS ARE SIMILAR > > > PURPOSE AND OBJECTIVES; IMPROVED PERFORMANCE; BETTER QUALIFIED EMPLOYEES; BETTER MANAGEMENT OF HUMAN RESOURCES; ETC. PRIVATE SECTOR ESSENTIALLY FOCUSED ON PROFITABILITY PUBLIC SERVICE CONCENTRATES ON INTERNAL / EXTERNAL SERVICES MORE LATITUDE TO ACT IN PRIVATE SECTOR TENDENCY TO HEAVIER BUREAUCRACY IN PUBLIC SECTOR EMPLOYMENT SECURITY STRONGER IN PUBLIC SECTOR.CONSEQUENCES USUALLY LESS SEVERE 20
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