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PERFORMANCE MANAGEMET
A process that consolidates goal setting, performance appraisal and development into a single, common system, the aim of which is to ensure that the employees performance is supporting the companys strategic aims. 1. Defining performance 2. Appraisal Process 3. Measuring Performance 4. Feedback and coaching
PERFORMANCE APPRAISAL
Evaluating an employees current and or past performance relative to his or her performance standards. Appraisal plays an integral role in the employers performance management process Appraisal lets the boss and the subordinate develop a plan for correcting any deficiencies the appraisal might have unearthed and to reinforce things the subordinate does correctly. Serves as a useful career planning purpose by providing opportunity to review the employees career plans in the light of his or her exhibited strengths and weakness. Serves as an important tool to determine the employees salary rise and promotional decisions.
Trait based approach is used to assess the personality or personal characteristics of employees such as ability to make decisions, loyalty to the company, communication skills, level of initiative. This approach focus on what a person is but relatively little about what he or she does, and as such concerns who performs the job. Disadvantage is difficulty to define accurately the different frames of reference used by different raters make agreement among raters unlikely.
Behavior measures are appropriate when the process used to accomplish the job is very important, and thus behavior measures are used to emphasize how a job is done. For e.g. the sales person should greet customers as they enter the store, help them find what they are looking for, take their payment promptly and thank them for their business.
This approach measures the results of the work behavior. For e.g. how many cars an employee sold? How much profit the employee got in for the organization during the month? Despite their intuitive appeal, this approach pose questions of practicality, contamination and deficiency. Result based measures are difficult to obtain in some jobs for e.g. how do you assess the performance result of a high school teacher? Results are necessarily based on the individual employee. It can hamper team work as each employee is preoccupied to meet his/her individual results.
ANNUAL APPRAISAL AGAINST GOALS, ADJUST GOALS AND PLAN FOR THE NEXT YEAR
METHODS OF APPRAISAL
GRAPHIC RATING SCALE METHOD: A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describe his or her level of performance for each trait.
Standards) Standards
METHODS OF APPRAISAL
ALTERNATION RANKING METHOD: Ranking employees from best to worst on a particular trait, choosing the highest to the lowest, until all are ranked. PAIRED COMPARISON METHOD: Ranking employees by making a chart of all possible pairs of employees for each trait and indicating which is the better employee of the pair.
FORCED DISTRIBUTION METHOD: is similar to grading on a curve. Predetermined percentages of ratees are placed in various performance categories. For e.g. you may decide to distribute employees like
15% high performers 20% low average performers 20% high-average performers 15% low performers 30% Average performers The proportion in each category need not be
10% 20%
POOR Below Average
40%
Averag e
20%
Above Average
10%
Excellent
CRITICAL INCIDENT METHOD: A supervisor keep a log of positive and negative examples of a subordinates work related behavior. Every six months, supervisor and subordinate meet to discuss the latters performance using the incidents as example. This method have several advantages. It provides actual incidents of good and poor performance the supervisor can use to explain the persons rating. The ratings does not just reflect the employees recent performances.
An appraisal method that aims a combination of the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.
CUSTOMER EVALUATION
This is method of assessing the performance from the feedback of the customers.
Using technology, Managers, keep note of subordinates performance through the year and then electronically rate them on a series of performance traits. There is a series of evaluation dimensions, including dependability, initiative, communication, decision making, leadership, judgment, planning and productivity.
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The immediate supervisor Peer Appraisal Rating committee Self Ratings Appraisal by subordinates
For middle level managers 1. Departmental performance 2. Coordination among employees 3. Degree of upward communication from supervisors 4. Degree of clarity about corporate goals and policies
For supervisors 1. Quality and quantity of output in a given period 2. Labor cost per unit of output in a given period. 3. Material cost per unit in a given period 4. Rate of absenteeism and turnover of employees 5. No of accidents in a given period
Review
1. How would you design a performance appraisal system based on behaviors, outcomes or both? Why would you design it this way?
Excercise
Of the companies that are consistent top performers, none use forced rank system. Proponents of the forced ranking see the system as a means of quick exchange of personnel in a way that lifts the average level of performance level of the organization. Critics see this approach as a possibility of damaging the culture and camarderie in the organization
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What is the expected impact of forced ranking system on the performance of the organization? What would be impact on the culture of the organization? Is it better to exchange a poor performer or try to develop and improve the worker?