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Performance Appraisal Team 9

Performance Appraisal Team 9. Niina Saarinen Helen Jiang Miia Wahlroos Laura Malin. Agenda. What Performance Appraisal Is? Purposes Development of Appraisal Program Training of Appraisers Implementation Appraisal Interviews Conclusions. What Performance Appraisal Is?.

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Performance Appraisal Team 9

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  1. Performance AppraisalTeam 9 Niina Saarinen Helen Jiang Miia Wahlroos Laura Malin

  2. Agenda • What Performance Appraisal Is? • Purposes • Development of Appraisal Program • Training of Appraisers • Implementation • Appraisal Interviews • Conclusions

  3. What Performance Appraisal Is? • Evaluation of the employees • Many different methods • Not a punitive process • Linked to company goals

  4. Administrative Purposes • Compensation • HR functions: promotion, transfer, layoff • HR planning • “Paper trail” • Influences employee behavior => improves organizational performance

  5. Developmental Purposes • Eliminate problems • New goals • Training needs • Individual development • Feedback and discussions • Possibility to improve job performance, not only evaluate past

  6. Performance Standards • Strategic relevance • Criterion deficiency • Criterion contamination • Reliability

  7. Development of the Program • Organizational chart • Cultural characteristics of BP-Centro • General rating methods • Sample items of appraisal form

  8. Cultural Characteristics • Appraisal - an unfamiliar concept • Traditionally only hard facts measured • Qualitative sides neglected • Finns tend to be discrete • Avoid negative feedback • Seldom discuss personal traits • Russians and Baltics are different from Finns

  9. General Rating Methods • Trait Approaches • Graphic rating-scales • Mixed-standard scales • Forced-choice forms • Essay method • Results Methods • Management by objectives (MBO)

  10. General Rating Methods cont. • Behavioral Methods • Critical incident rating • Behavioral checklist • Behaviorally anchored rating scale (BARS) • Behavioral observation scales (BOS)

  11. Sample Items • General skills • Management/Leadership skills Management Skills Actual Requested by position Comments 5 4 3 2 1 5 4 3 2 1 ________ -Planning ________ -Organization ________ -People development ________ -Decision making ________ -Control ________ Ranking A B C D E

  12. Training of Appraisers • Explain the objectives • Define the standards • Avoid misunderstanding • Reduce biases • Using the form • Scales and rankings • Comments serve as references for interview

  13. Implementation • CEO • Country and functional mangers • Regional, facility and assistant facility managers

  14. CEO Appraisal • Annually • Self-appraisal • HQ • Functional managers • Country managers • Semi-annually • MBO

  15. MBO A philosophy of management that has employees establish objectives through consultation with their superiors and then uses these objectives as basis for evaluation.

  16. MBO Requirements • Co-operation • Objectives easily quantifiable • The employees can control the process and outcome • Consistent goals • Review times specified

  17. MBO Advantages • Mutual goal setting • Reward and promotion decisions • Objectives defined • Performance improved • Co-operation improved

  18. MBO Disadvantages • Time consuming • Costly • Some goals difficult to measure • Hard to get full commitment

  19. Functional and Country Managers • Annually • Self-appraisal • 360-degree appraisal • Semi-annually • MBO

  20. Regional, Facility and Assistant Facility Managers • Annually • Self-appraisal • 360-degree appraisal

  21. 360-Degree Method • Appraisal by manager and/or supervisor • Subordinates • Peers (teams) • Customers

  22. 360-Degree Advantages • Comprehensive system • Quality of information • Lessens bias/prejudice • Complements TQM • Increases employee self-development

  23. 360-Degree Disadvantages • Administratively complex • Feedback can be intimidating • Conflicting opinions • Invalid evaluations

  24. To Ensure Quality and Acceptance • Assure anonymity • Use statistical procedures • Identify and quantity biases • Make respondents accountable • Prevent “gaming” of the system => Training

  25. Appraisal Interview • Training the interviewers • Data analyzing • HR department • Face to face conversations • Feedback • Training needs

  26. Conclusion • Highly related with compensation plan • Successful appraisal program can eliminate the misunderstandings between employees • It helps employee improve their future performance • It guarantees the achievement of company’s goals.

  27. Thank You for Your Attention! Questions?

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