Performance appraisal(the gentleman’s three )
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Transcript of Performance appraisal(the gentleman’s three )
Session 8Performance Appraisal
The Gentleman’s Three by Brian J. Hall & Andrew Wasynczuk
-When they are going to get time?
-They‘ll make time.
-Don’t they have real work to do?
-This is the real work.
The Gentleman’s Three by Brian J. Hall & Andrew Wasynczuk
Conflicting Roles for Performance Appraisal
Types of Performance Information
Trait-basedInformation
Trait-basedInformation
Behavior-basedInformation
Behavior-basedInformation
Results-basedInformation
Results-basedInformation
JobPerformance?
JobPerformance?
Uses of Performance Appraisal
Criticisms of Performance Appraisal
◦Focus is too much on the individual and does little to develop employees.
◦Employees and supervisors believe the appraisal process is seriously flawed.
◦Appraisals are inconsistent, short-term oriented, subjective, and useful only at the extremes of performance.
Potential Performance Criteria Problems
ObjectivityObjectivity
DeficiencyDeficiency ContaminationContamination
PerformanceCriteria
PerformanceCriteria
© 2002 Southwestern College Publishing. All rights reserved.
11–7
Common Rater Errors
Figure 11–11
8
The Balanced ScorecardBalanced Scorecard
21 languages
17 languages
What is the BSC?
InitiativeTargetsMeasuresObjectives
FinancialTo succeed financially, how should we appear to our shareholders?
InitiativesTargetsMeasuresObjectives
Learning & GrowthTo achieve our vision, how will we sustain our ability to change and improve?
Init
iati
ves
Targ
ets
Measu
res
Ob
ject
ive
s
Cust
om
er
To a
chie
ve
ou
r vis
ion
, h
ow
sh
ou
ld
we a
pp
ear
to o
ur
cust
om
ers
?
Initia
tives
Targ
ets
Measu
res
Obje
ctives
Inte
rnal B
usin
ess
Pro
cess
To sa
tisfy
ou
r sh
are
hold
er
s an
d
custo
mers,
wh
at
bu
siness
pro
cesse
s m
ust w
e
exce
l at?
VISION AND
STRATEGY
10
Performance Measures in Financial Perspective
Return on investmentEconomic value addedSales growth rate by
segmentPercentage revenue
from new product, service, or customer
Share targeted customer an account
Cross-selling
Cross-selling Customer and product
line profitability Revenue/employee Cost reduction rate Unit cost Payback Return on Capital
Employed Working capital ratios
(cash-to-cash cycle)
11
Information about market & customer
Customer selection, acquisition, retention & growth
Who are profitable customers? — Target Segmentations
What do they need? [same as the thing we serve them]— Customer Values Propositions (e.g. QSC&V – quality, services, cleanliness, and value)
Customer Perspective
12
Performance Measures in Customer Perspective
Market Share: Reflects the proportion of business in a given market (in term of number of customer, dollar spent, or unit volume sold) that a business unit sells.
Customer Acquisition: Measures, in absolute or relative, the rate at which a business unit attracts wins new customers or business.
Customer Retention: Measures, in absolute or relative, the rate at which a business unit retains or maintains ongoing relationships with its customers.
Customer Satisfaction: Assesses the satisfaction level of customers along specific performance criteria within the value proposition.
Customer Profitability: Measures the net profit of a customer, after allowing for the unique expenses required to support customer.
13
Performance Measures in Customer Perspective
Market Share: Reflects the proportion of business in a given market (in term of number of customer, dollar spent, or unit volume sold) that a business unit sells.
Customer Acquisition: Measures, in absolute or relative, the rate at which a business unit attracts wins new customers or business.
Customer Retention: Measures, in absolute or relative, the rate at which a business unit retains or maintains ongoing relationships with its customers.
Customer Satisfaction: Assesses the satisfaction level of customers along specific performance criteria within the value proposition.
Customer Profitability: Measures the net profit of a customer, after allowing for the unique expenses required to support customer.
14
Performance Measures in Internal Process Perspective
QualityResponse timeCostYieldsWasteScrap
Rework New product
introduction Service error rate Product development
cycle Hours with customer Time to market
15
Performance Measures in Learning & Growth Perspective
Employee satisfactionEmployee retention/turnover rateEmployee productivityInformation system availabilityOrganizational Climate IndexPersonal Goals Alignment IndexStaff development