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 ReviewWriter Austin-Hayne Employee

Appraiser KnowledgePoint's Performance

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

• 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

• 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

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

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

Uses of Performance Appraisal

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

• 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

Recruitment and selection

• Performance evaluation rating may be helpful in predicting the performance of job applicants.

Training and development

• 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.

• 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

PA-MethodsCritical Incidents

IT IS A PERFORMANCE APPRAISAL TECHNIQUE THAT REQUIRE A WRITTEN RECORD OF HIGHLY FAVORABLE AND

HIGHLY UNFAVORABLE EMPLOYEE WORK BEHAVIOR

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.

Financial Compensation

• Kinds of 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.

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.

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.

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.

Employee Appraisal, the E-Way

• Software programs can improve the pace and quality of your

employee-performance reviews.

• Save your time and effort

• Lower Cost

• Help to make a decision

Website

http://www.promantek.com/


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

– Austin-Hayne's Employee Appraiser,

– Avantos ReviewWriter

– KnowledgePoint's Performance Now!


• All three work in a similar manner.

• Each program walks a supervisor through the evaluation

process.


• 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.


• These programs then 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.


• 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.


• Along the way, the programs also advise on the program's

operation and on HR issues.

• All three programs offer to check for problematic language.


• 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.


• 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.

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.

– 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".

– 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.

– ReviewWriter gives you the appropriate performance criteria.

– Fill in an appraisal after each criteria, and the program will also make suggestions. To complete the process, ReviewWriter will check the performance evaluation for spelling and grammar.



Despite initial difficulty in getting around the program,

ReviewWriter offered the best and most authoritative

advice.

Unlike the other two programs that offer advice from

anonymous "experts," Avantos includes pointers on HR

from William Swan, author of How to Do a Performance

Appraisal and an attorney with Orrick, Herrington and

Sutcliffe.

Avantos ReviewWriter

ReviewWriter also made it easy to take notes jotted in its

Performance Log and transfer them into the review itself.

Like the other two programs, ReviewWriter 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 ReviewWriter

• The Avantos program did a better job at attractive managers

to make their own contributions to the program.

• Employee Appraiser, like ReviewWriter, includes a section

where a manager can keep track of specific examples of an

employee's work behavior.

• ReviewWriter calls it Performance Log whereas Employee

Appraiser calls it Employee Folder.

Austin-Hayne Employee Appraiser

This program's best asset is the "tune" feature.

Like ReviewWriter, 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 calls these judgment points "appraisal

topics."


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

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

• But it doesn't stop there.

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

make the appraisal more or less complimentary.


• 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.)


• 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.

KnowledgePoint'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 motif, making it easy to use.


• 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 solely on clerical.


• 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.


• KnowledgePoint's program, like the other two mentioned, will scan any evaluation for inflammatory wording.

Other Evaluation Criteria

• When choosing employee evaluation software, check to see what other HRrelated software a developer may have up its sleeve.

KnowledgePoint's first program helps formulate employee

policies.

Austin-Hayne ships its Employee Appraiser in a Best Manager

Edition, which includes other HR-related forms.

Avantos sells ManagePro, a program, in addition to

ReviewWriter, to help you become a better manager.

• Also see whether the software maker has a companywide solution and whether that solution will fit your company best.

• The programs reviewed here are all single-user programs.

AustinHayne recently unveiled an intranet version for its

program.

Avantos AMS/3 runs on a network and tracks and standardizes

the overall performance evaluation process.

KnowledgePoint has a single-user or enterprise version of its

software.


• The company also released an add-on to its Performance Now! software, designed specifically for companies in the financial sector.


• 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.

• 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.

• Or as Lisa Norris, an HR manager for Sybex, a computer book

publisher in Alameda, Calif., says:

"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."

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Performance Appraisal| Unit 5

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