Performance Appraisal| Unit 5

Prepared by: Safaa S.Y. Dalloul

Performance Appraisal| Unit 5

2013-2014http://safaadalloul.wordpress.com

KYTC

Performance Appraisal Uses Of Performance Appraisal PA Methods

The 360 Degree Feedback Evaluation

Rating Scales Critical Incidents Essay Work Standards Ranking Forced Distribution Behaviorally Anchored Rating

Scales Use of Computer Software

Elements of Lecture

Compensation Safety The electronic way |

Programs Avantos Review-Writer Austin-Hayne Employee

Appraiser Knowledge-Point's

Performance

Challenge!!

Before the beginning of chapter who remembers

training and development definitions

Note: Revise Chapter 4

Performance Appraisal

1. Why does the company conduct

performance appraisal from to time to

time?

2. What is a performance appraisal?

3. How does the company do the

performance appraisal?

4. Do you think PA is a positive or

negative function?

The focus of performance appraisal in most firms remains

on the individual employee.

An effective appraisal system evaluates accomplishments

and initiates plans for development, goals, and objectives.

Performance Appraisal

It is a formal system of review and evaluation of individual or team task performance.

• Management system is consisting of all organization processes that determine how well employees, teams, and ultimately, the organization perform.

• PAM includes: HR planning, Employee recruitment and selection, T&D, career planning and development and compensation.

• An organization must have some means of assessing the level of individual and team performance in order to make appropriate development plans.

Performance Appraisal Management

• Conducting performance appraisals is often a frustrating human resource management task.

• If a performance appraisal system has a faulty design, the employees will dread receiving appraisals and the managers will despise giving them.

Appraiser Discomfort

Challenge!!

Do you think is a relationship between PA

management and HR Functions?

• For many organizations, the primary goal of an appraisal system is to improve individual and organizational performance.

Uses of Performance Appraisal

Performance Appraisal data are potentially for virtually every human resource functional areas:

• HR Planning • Recruitment and Selection• Training and Development• Career Planning and Development • Compensation Programs• Internal Employee Relations• Assessment of Employee Potential

Uses of Performance Appraisal

• Data that describe the promo ability and potential of all employees, especially key executives must be available in order to assess the firm's human resources.

• Management succession planning is a key concern for all firms.

• All-designed appraisal system provides a profile of the organization's human resource strengths and weaknesses to support this effort.

HR Planning

• Performance evaluation rating may be helpful in predicting the

performance of job applicants.

Recruitment and Selection

Internal or External

• A performance appraisal should point out an employee's specific needs for training and development.

• Determining T&D needs is more precise when appraisal data are available.

Training and Development

• Performance appraisal data are essential in assessing an

employee’s strengths and weaknesses and in deterring the

person’s potential.

Career Planning and Development

• Performance appraisal result provide a basis for rational decisions regarding pay adjustment.

• Rewarding the behaviors is necessary for accomplishing organizational objectives which is at the heart of a firm’s strategic plan.

• To encourage good performance, a firm should design and implement a reliable performance appraisal system and then reward the most productive workers and teams accordingly.

Compensation Programs

• Performance appraisal data are frequently used for decisions in

several areas of internal employee relations, including promotion,

demotion, termination, layoff and transfer.

• When performance level is in unacceptable, demotion or even

termination, it may be appropriate.

Internal Employee Relations

• Some organizations attempts to assess employee potential as

they appraise their job performance.

Assessment of Employee Potential

PA-Methods

The 360 Degree

Feedback Evaluation

Rating Scales

Critical Incidents

Essay Work Standards

RankingBehaviorally

Anchored Rating Scales

Use of Computer Software

DEPEND ON ITS PURPOSE

A popular appraisal method

Involves evaluation input from multiple levels within the firm and external source as well

It is only appropriate for development purpose

PA-MethodsThe 360 Degree

Feedback Evaluation

PA-MethodsRating Scales

• It is a method that rates employees according to defined factors.

• The scale includes several categories (five to seven in number) define by adjectives such as (outstanding, meets expectation, or need improvement).

Job-Related Personal Characteristics

EvaluationFactors

Critical Incidents

It is a performance appraisal technique that require a written record of highly favorable

and highly unfavorable employee work behavior

PA-Methods

PA-Methods

It is a performance appraisal method on

which the rater writes a brief narrative

describing and employee’s performance.

Essay

PA-MethodsWork Standards

It is a performance method that compares each employee’s performance to a predetermined standard or expected level of output.

PA-Methods

It is a performance appraisal method in which

the rater simply places all employees from a

group in rank order of overall performance.

Ranking

PA-MethodsBehaviorally

Anchored Rating Scales

• It is a method which combines elements of the traditional rating scales and critical incident methods.

• The difference between this methods and rating scales method is: instead of using adjective at each scale point, it uses behavioral anchors related to the criterion being measured.

PA-Methods

• Computer software is available for recording the appraisal data.

• The software simplifies reviews and provides not only consistency, but also a professional.

Managers have the option of customizing

most programs.

Reduction of paperwork required.

Advantages

Use of Computer Software

What is Compensation?

• Compensation is the total of all rewards provided employees in return for their services.

• Compensation administration is one of management’s most difficult and challenging human resource areas, as it contains many elements and has a far-reaching impact on an organization’s strategic totals.

Kinds of compensations

• Compensations can be divided into two categories:

A. Financial compensations:

• Direct financial compensations: is the pay that a person receives in the form of wages, salary, bonuses and commissions.

• Indirect financial compensations (benefits): consists of all financial rewards that are not included in direct compensations.

B. Non-financial compensation:

• The various rewards comprise a total compensation system.

• Historically, compensation practitioners have focused primarily on financial compensation and benefits.

• To remain competitive, organizations are increasingly rewarding employee performance that influences their key goals.

Kinds of compensations

Equity In Financial Compensations (What)

• Equity: is the perception by workers that they are being treated fairly.

• Fair pay treatment for employees.

Equity In Financial Compensations (How)

• External equity: exists when a firm’s employees receive pay comparable to workers who perform similar jobs in other firms.

• Internal equity: exists when employees receive pay according to the relative value of their jobs within the same organization.

• Employee equity: exists when individuals performing similar jobs for the same firm receive pay according to factors unique to the employee.

• Team equity: is achieved when teams are rewarded based on their group’s productivity.

Equity In Financial Compensations (Why)

• Inequity may make employees feel that their compensation is unfair, and then they may leave the firm. A great damage may result for the firm if the employees choose not to leave and to restrict their efforts.

– Note: reward and compensation has the same meanings.

Reward (Compensation) Objectives

• Any organizational reward system has three behavioral objectives:

1) Membership behavior to recruit and retain a sufficient number of qualified workers

2) Task behavior to motivate employees to perform to the fullest extent of their capabilities

3) Compliance behavior to encourage employees to follow workplace rules and undertake special behaviors beneficial to the organizations without direct supervision or instructions.

Reward Techniques

• Internal equity refers to comparisons between jobs or skill levels inside the organization, to achieve the organization's goals.

• Internal equity is established through three reward techniques:

– Job analysis– Job evaluation– Appraisal

Reward Techniques: Job Analysis

• Knowledge on jobs and their requirements is collected through job analysis, which is the systematic process of collecting and evaluating information about the tasks, responsibilities and the context of a specific job.

– Job analysis consists of two mains stages: (How)

• Data collection (Questionnaire, Interview, Observation, Test…etc)

• The application of that data by the preparation of job descriptions, job specifications and job standards.

Reward Techniques: Job Evaluation

• Job evolution is a systematic process designed to determine the relative worth of jobs within a single work organization. The job evolution process comprises of four steps:

1) Gather data2) Select compensable factors 3) Evaluate the job (ranking, job-grading, factor

comparison, point method)4) Assign pay to the job

Establishing Pay Levels

• Determining the right pay means combining the results of the job analysis and job evolution processes and market pay data.

• Although the pay levels within an organization reflect external competitiveness and internal equity considerations, the decision on the final pay level – the organization’s pay policy – will be determined by many factors, including competitive strategy, HR strategy, reward objectives, organizational design and culture.

• After the attack of 11/9/2001, the world has hanged a great

deal and it becomes necessary for organizations to be

prepared to assure a safe and secure workplace.

Health, Safety and Security

• Procedures may be used to ensure safe and secure workplace include the following:

– Selection of people responsible for implementing evacuation plans.

– Training of key personnel.– A communication system for alerting employees.– A plan informing employees including disabilities of what

actions to be taken.– A description of work –site details; its capabilities and

systems.

Health, Safety and Security

• Safety: the protection of employees from injuries caused by work-related accidents.

• Health: an employee's freedom form physical or emotional illness.

• Security: protection of employer facilities and equipment from unauthorized access and protection of employees while on work premises or work assignments.

Health, Safety and Security

• Currently, the 3 market leaders in the employee evaluation software field are:

– Austin-Hayne's Employee Appraiser

– Avantos Review-Writer

– Knowledge-Point's Performance Now!

Employee Appraisal, the E-Way

Employee Appraisal, the E-Way

• Software programs can improve the pace and quality of your

employee-performance reviews.

• Help the manager to do more comprehensive performance

review in less time and effort.

• Lower Cost.

• Help to make a decision.

Website

Benefits

• All three work in a similar manner.

• The best one is “Austin-Hayne's Employee Appraiser”.

• Each program walks a supervisor through the evaluation

process.

Employee Appraisal, the E-Way

General Functionality

• Navigating them is no more difficult than using a word

processor since all three borrow from conventions associated

with Windows-based word processors.

• Getting up to speed is easier if you are used to working in

Microsoft Word, WordPerfect or AmiPro.

Employee Appraisal, the E-Way

• These programs help you set up a form with details including

the employee's name, position and date of last evaluation.

• Following this, you scroll through the setup to find the

appropriate type of appraisal-specific to a sales

representative, clerical assistant or customer service manager.

Employee Appraisal, the E-Way

• For each appraisal, the three programs offer a suggested

write-up for each performance criterion.

• A personnel evaluator can pick and choose what boilerplate to

use.

Employee Appraisal, the E-Way

• The programs also advise on the program's operation and on

HR issues.

• All three programs offer to check for any problems in

language.

Employee Appraisal, the E-Way

• In addition, they all include tools that enable you to make

their generic form look like, or contain the same performance

criteria as, the company's homegrown form.

• Finally, they include a section where you can jot down

comments about individuals throughout the year so you

won't come up blank when it's time to evaluate the

employee's performance.

Employee Appraisal, the E-Way

• These programs won't replace a manager's sharp eye in

appraising subordinates, but they do help in the writing

process.

• "The software gives you something instead of a blank sheet of

paper. It helps you to organize your thoughts and prepare

yourself to review someone's performance," Olivieri says.

Employee Appraisal, the E-Way

Avantos Review-Writer

Avantos Review-Writer

– This program offered the most in professional advice but

was the most difficult to navigate, in part because it was

hard to find the program's tutorial.

Avantos Review-Writer

– Also, the tool bar contained too many obscure buttons,

making it difficult to find the right way to activate an

operation.

• For example, its QuickBuild, the measure way to construct a

performance review, was symbolized by three alphabet blocks, or

"A", "B", "C".

Avantos Review-Writer

– Click on QuickBuild, fill out basic employee information, such as name, start date and review date, and choose job description is closest to the employee's work- that is generic from, clerical worker, salesperson or project team leader.

– Review-Writer gives you the appropriate performance criteria.

Avantos Review-Writer

– Fill in an appraisal after each criteria, and the program will

also make recommendations. To complete the process,

Review-Writer will check the performance evaluation for

spelling and grammar.

Avantos Review-Writer

Despite initial difficulty in getting around the program,

Review-Writer offered the best and most authoritative

advice.

Avantos Review-Writer

Review-Writer also made it easy to take notes jotted in its

Performance Log and transfer them into the review itself.

Like the other two programs, Review-Writer lets you pick how

much of the review you want to implement.

Select from a list of performance factors-from "accounting

skills" to "technical support"-for the evaluation.

Avantos Review-Writer

• The Avantos program did a better job at attractive managers

to make their own contributions to the program.

Avantos Review-Writer

• Employee Appraiser, like Review-Writer, includes a section

where a manager can keep track of specific examples of an

employee's work behavior.

– Review-Writer calls it Performance Log whereas Employee

Appraiser calls it Employee Folder.

Austin-Hayne Employee Appraiser

Austin-Hayne Employee Appraiser

This program is the best.

Like Review-Writer, you start by plugging in basic

information about the employee and then choosing the

appropriate job (sales representative, customer service,

and so on) and the appropriate points on which to judge

this person (job knowledge, initiative, communication).

Austin-Hayne Employee Appraiser

• You then rate the employee on the point (improve, meets,

exceeds), and the program gives you sample text to plug in.

• You can fine-tune the appraisal by clicking on "+" or "-" to

make the appraisal more or less complimentary.

Austin-Hayne Employee Appraiser

• The program's coaching feature is also very good about telling

you how to instruct the person being evaluated on how to

improve.

• For example, “Sue the Sales Rep” needs to work on her

written communication skills. The program lists ways for her

to improve (1. Be direct. Get right to the main point. 2.

Organize your ideas. Start with the big picture, and fill in the

details as needed.)

Austin-Hayne Employee Appraiser

• One drawback with Employee Appraiser's "canned" material

is that it is good enough to tempt a manager to rely extremely

on its writing expertise instead of supplying his or her own

examples and language.

Knowledge-Point's Performance

Knowledge-Point's Performance

• Its graphical user-interface was the best of the three

programs; it sported fewer and larger command buttons on its

tool bar.

• Like the other two programs, Performance Now! uses a word

processing, making it easy to use.

Knowledge-Point's Performance

• The program has five pre-designed review forms (universal, management, clerical, production and sales service).

• Choose one or create your own.

• Then select from a list of "performance elements," ranging from adaptability-offered on management forms, but not clerical-to oral communications-offered only on clerical.

Knowledge-Point's Performance

• Click on "N/A" if the element doesn't apply or rate it on a scale of 1 to 5, with 1 being "lowest" and 5 being "highest.“

• Some suggested material pops up to cover the point.

• Add or adjust as you see fit.

Knowledge-Point's Performance

• Knowledge-Point's program, like the other two mentioned,

will scan any evaluation for problem wording.

Other Evaluation Criteria

• When choosing employee evaluation software, check to see

what other HR related software a developer may have up its

sleeve.

• Also see whether the software maker has a companywide

solution and whether that solution will fit your company best.

• Finally, while these programs can be extremely helpful, they

are not a substitute for managers giving time and thought to

critiquing an employee's performance.

• Managers have to supply their own thoughts and suggestions

about how an employee can improve.

Other Evaluation Criteria

• It could be very easy to fall into the trap of just clicking and

"accepting" the boilerplate without tweaking the content for

its maximum effect.

Other Evaluation Criteria

• Lisa Norris said: "Performance Now! helps me to a topnotch

evaluation in much less time. That's important, but the true

advantage for me is that I squeeze my brain less hard. It really

helps stimulate my thinking so I write the best performance

appraisal that I can."

Other Evaluation Criteria

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