Human Resources Appraisal

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Lecture 8
Appraising and Managing Performance

After studying this chapter, you should be able to:
 

Describe the appraisal process Develop, evaluate, and administer different performance appraisal tools Explain and illustrate the problems to avoid in appraising performance List and discuss the pros and cons of different appraisal methods







Perform an effective appraisal interview

Performance Appraisal Vs Performance Management

• Performance Appraisal
– Evaluating an employee’s current and/or past performance relative to his or her performance standards

• Performance Management
– The process employers use to make sure employees are working toward organizational goals

Performance Appraisal Vs Performance Management

Performance Appraisal

Performance Management

1. Setting work standards 2. Assessing performance 3. Providing feedback to employees to motivate, correct, and continue their performance

An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims

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An Introduction to Appraising Performance
WHY Appraise Performance?
1

Is basis for pay and promotion decisions
Plays an integral role in performance management Helps in correcting deficiencies and reinforcing good performance Is useful in career planning

2 3

4

WHY Performance Management
• Increasing USE by employers of performance management reflects: – The popularity of the total quality management (TQM) concepts – The belief that traditional performance appraisals are often not just useless but counterproductive – The necessity in today’s globally competitive industrial environment for every employee’s efforts to focus on helping the company to achieve its strategic goals

Continuous Improvement?
• A management philosophy that requires employers to continuously set and relentlessly meet ever-higher quality, cost, delivery, and availability goals by: – Eradicating the seven wastes:
• overproduction, defective products, and unnecessary downtime, transportation, processing costs, motion, and inventory

– Requiring each employee to continuously improve his or her own personal performance, from one appraisal period to the next

A FUNCTIONAL FRAMEWORK INTEGRATING PERFORMANCE IMPROVEMENT ACTIVITIES Organizational Objective Setting Intrinsic and Extrinsic Reward Performance Improvement Activities Succession Planning Identification of Potential Performance Assessment

Training and Career Development

MODEL OF
PERFORMANCE MANAGEMENT PROCESS
Mission Strategies
Objectives Values

Critical Success Factors Identification of Potential

Performance Indicators (KPI) and Standards

Performance Review
Succession Planning

Total Reward System

Performance Improvement Programmes

Better Performance

PERFORMANCE MANAGEMENT

CONTINUUM
Objectives Setting Recognition
* Positive if performance is as expected * If performance is not up to standard identify problem and communicate need for improvement

* Individual clear when to perform and what is expected
* Performance targets, measures and standards exist * Seen as attainable by individual

The Individual
* Capability to perform as desired – skills and knowledge * Willing to perform (Attitude)

Performance Monitoring
* Interim reviews of performance * Identify ‘milestones’ or interim targets * Take action to remedy poor performance

Resources
* People * Equipment, materials * Information

Feedback
* Relevant, immediate and frequent
* Constructive, balanced

* Plans

THE COMPONENTS OF AN EFFECTIVE PERFORMANCE MANAGEMENT PROCESS  Direction

sharing  Role clarification  Goal alignment  Developmental goal setting  Ongoing performance monitoring  Ongoing feedback  Coaching and support  Performance assessment (appraisal)  Rewards, recognition, and compensation  Workflow and process control and return...
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