Staff performance review. Paulo Aguiar, Tallinn, 13/01/2015

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1 Paulo Aguiar, Tallinn, 13/01/2015

2 Learning Objectives Develop a staff performance system Identify staff performance components Understand how to relate the staff performance system with recognition mechanisms

3 Expected Outcomes Develop and use effectively a Staff Performance System in your own Organization Manage a list of evaluation performance criteria Develop and use effectively Recognition Mechanisms

4 Types Skills and behaviors checklists Skills and behavioral checklists has a list of criteria that can differ according to the type of position been assessed. This method is considered favorable as the evaluation is done on the basis of individual employee performance. Usually, the checklist is prepared taking into consideration the job description manual.

5 Types Management by objectives This is an objective type of evaluation which falls under modern approach of performance appraisal. In this method appraiser and the employee agree upon specific and obtainable objectives. With this method, the appraiser can define success and failure easily.

6 Types 360 degree appraisal This method involves feedback of the manager, supervisor, team members/peers and outside parties (clients, suppliers and others). In this method of appraisal, employees complete profile has to be assessed. In addition, to assess the employees work performance and technical skill set, an appraiser collects a broad feedback which provides a multi-dimensional picture of performance that can minimize assessment errors.

7 Objectives Compensation decisions It can serve as a basis for pay raises. Managers need performance appraisal to identify employees who are performing at or above expected levels. This approach to compensation is at the heart of the idea that raises should be given for merit rather than for seniority. Under merit systems, employees receive raises based on performance.

8 Objectives Promotion decisions It can serve as a useful basis for job change or promotion. When merit is the basis for reward, the person doing the best job receives the promotion. If relevant work aspects are measured properly, it helps in minimizing feelings of frustration of those who are not promoted.

9 Objectives Training and development programs It can serve as a guide for a suitable training and development program. Performance appraisal can inform employees about their progress and tell them what skills they need to develop to become eligible for pay raises or promotions or both.

10 Objectives Feedback Performance appraisal enables the employee to know how well he is doing on the job. It tells him what he can do to improve his present performance.

11 Objectives Personal development Performance appraisal can help reveal the causes of good and poor employee performance. Through discussions with individual employees, a manager can find out why they perform as they do and what steps can be initiated to improve their performance.

12 General characteristics Reliability and validity Appraisals systems should provide consistent, reliable and valid information. Appraisals must also satisfy the condition of validity by measuring what they are supposed to measure.

13 General characteristics Job relatedness The appraisal technique should measure the performance and provide information in job related activities/areas. Standardization Appraisal forms, procedures, ratings, should be standardized as appraisal decisions affect all employees.

14 General characteristics Practical viability The techniques should be practically viable to administer and possible to implement continuously. Training to appraisers Because appraisal is important and sometimes difficult, it would be useful to provide training to appraisers (set objectives, rating scales, appraisals templates and conducting appraisal interviews).

15 General characteristics Open communication A good appraisal system provides the needed feedback on a continuing basis. The appraisal interviews should allow both parties to learn about the gaps and prepare themselves for future.

16 General characteristics Employee access to results Employees should receive adequate feedback on their performance, so they can perform better. Permitting employees to review the results of their appraisal allows them to detect any errors that may have been made.

17 The development of a staff performance system PLAN Performance appraisal process MONITOR REVIEW AND EVALUATE

18 The development of a staff performance system PLAN Annual corporate objectives, in the 4th quarter of the previous year Job description manual and skills/behaviours matrix (update, if needed) Initial interview, in the beginning of January i. Define the individual objectives ii. Identify the skills/behaviours standards iii. Negotiation and agreement

19 The development of a staff performance system MONITOR Monitor and evaluate progress Take corrective action or make changes, if required Intermediate interviews, if required

20 The development of a staff performance system REVIEW AND EVALUATE Self appraisal Appraisal Annual performance interview, including the analysis of results and improvements Recognition mechanisms

21 Recognition mechanisms Compensations and promotions decisions Perfomance bonuses Alternative rewards: traning opportunities, additional vacation days, vouchers/tickets for events and others

22 The development of a staff performance system GROUP EXERCISE 1: 1. The objective of the exercise is to develop an example of a staff performance system template with 2 components: Objectives Skills/behaviors. 2. Apply the model to a specific position within the organization (3 objectives and 5 skills/behaviours) 45 minutes

23 Thank you for your attention and participation Paulo Aguiar

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