STRATEGIC HUMAN RESOURCEMANAGEMENTEMGT 310

MARY JANE TEPORA, Ph. D.AILEEN H. BANAGUAS (Presenter)

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PERFORMANCE EVALUATION AND EMPLOYEE RETENTIONAILEEN H. BANAGUAS (Presenter)

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1. Define performance evaluation 2. Discuss the importance of evaluating employees performance3. Identify different methods of performance appraisal.4. Compare and contrast different strategies of employee retention used by most organization

Objectives

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How Do You View the Evaluation Process Where You Work?

The purpose of an employee evaluation is to measure job performance. When written effectively, employee performance evaluations are very helpful to the productivity of a certain organization. They provide with the tools to gather information and communicate company and individual goals to all employees. They also provide a structure for a pay-for-performance system that rewards employees for successfully achieving those goals. These evaluations are tools that have the ability to make everyone more productive and engaged in their jobs and therefore make the company more successful.4

Determination of an individual's job-related actions and their outcomes within a particular position or setting. http://www.businessdictionary.com/definition/performance-evaluation

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A performance evaluation, or employee appraisal is a method by which the job performance of an employee is evaluated. http://en.wikipedia.org/wiki/Performance_evaluationSlide 29

The purpose of an employee evaluation is to measure job performance. When written effectively, employee performance evaluations are very helpful to the productivity of a certain organization. They provide with the tools to gather information and communicate company and individual goals to all employees. They also provide a structure for a pay-for-performance system that rewards employees for successfully achieving those goals. These evaluations are tools that have the ability to make everyone more productive and engaged in their jobs and therefore make the company more successful.6

It is a systematic evaluation of an individual with respect to performance on the job and individuals potential for development.

It is formal, structured system of measuring, evaluating job related behaviors and outcomes to discover reasons of performance and how to perform effectively in future so that employee, organization and society all benefits.

PERFORMANCE APPRAISAL

Performance Appraisals is the assessment of individuals performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health. Assessment should be confined to past as well as potential performance also. The second definition is more focused on behaviors as a part of assessment because behaviors do affect job results.7

Importance of Performance Evaluations

Identify strengths and weaknesses Clarify expectations Define areas for improvement Maintain and improve communication Promote growth and development

The purpose of an employee evaluation is to measure job performance. Performance evaluation is not a one day task. Monitoring performance at periodic intervals will help every employee to1. Organizations must continually assess their employees' strengths and weaknesses. By doing so, employers are better able to match employee qualification to job assignments. Employee evaluations provide an assessment of the strengths and weaknesses for individual employees as well as the collective talents of employees by department or team. For example, an employee evaluation reveal whether your employees have strong proficiency in computer software applications for finance use, yet weaknesses in applications used for presenting finance-related information in multimedia format. The importance of employee evaluations to assess workers' skills is particularly significant in work force planning processes.2. Both manager and employees are clear about the employees goals, required outcomes or outputs, and how the success of the contributions will be assessed. Lets face it. Employees want face-to-face communication time with both their supervisors and executive management. This communication helps them feel recognized and importanT. Define areas for improvementDocumented performance evaluations are communication tools that ensure the supervisor and her reporting staff members are clear about the requirements of each employees job. The evaluation also communicates the desired outcomes or outputs needed from each employees job and defines how they will be measured.

Maintain and improve communication. Promote growth and development

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Methods of Performance Appraisal can be Divided into Two Categories

Past Oriented MethodsFuture Oriented Methods

Past Oriented Methods1. Rating Scales2. Checklist3. Forced Choice Method4. Forced Distribution Method5. Critical Incidents Method6. Behaviorally Anchored Rating Scales7. Field Review Method8. Performance Tests & Observations9. Confidential Records10. Essay Method11. Cost Accounting Method12. Comparative Evaluation Method (Ranking & Paired ComparisonsRanking Methods:Paired Comparison Methods

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Future Oriented Methods Management By ObjectivesPsychological Appraisals Assessment Centers 360-Degree Feedback

Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic. However, many consider employee retention as relating to the efforts by which employers attempt to retain employees in their workforce. ...

http://en.wikipedia.org/wiki/Employee_retention

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Employee Retention Strategies

1.Communicate, communicate, communicate2. Coach rather than manage3. Establish clear performance metrics and make employees accountable for delivering 4. Leverage performance reviews to gain insights into employee goals and aspirationsCreate growth opportunitiesUnderscore positive feedback with something tangible

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Rating ScalesEach scales ranges from excellent to poor.

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2. Checkliststatements of traits of employee in the form of Yes or No.

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3. Forced Choice MethodStatements arranged in the blocks of two or more are given and the rater indicates which statement is true or false.

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4. Forced Distribution Method Employees are clustered around a high point on a rating scale.

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Critical Incidents MethodEvaluations are based on actual job behaviors, ratings are supported by descriptions.

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6. Behaviorally Anchored Rating Scales Statements of effective and ineffective behaviors determine the points. They are said to be behaviorally anchored. Back

Field Review Methoddone by someone outside employees own department usually from corporate or HR department.

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Performance Tests & Observationsbased on the test of knowledge or skills. The tests may be written or an actual presentation of skills.

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Confidential Records:Mostly used by government departments, however its application in industry is not ruled out.

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Essay Method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, ability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee. Back

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Cost Accounting Method performance is evaluated from the monetary returns yields to his or her organization.

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12. Comparative Evaluation Method (Ranking & Paired Comparisons The usual techniques used may be ranking methods and paired comparison method.Ranking Methods: Superior ranks his worker based on merit, from best to worst. Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs.

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Management By Objectives It means management by objectives and the performance is rated against the achievement of objectives stated by the management.

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Psychological Appraisals These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. Back

Assessment Centers An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises or work samples. Back

360-Degree Feedback It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self.

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