Performance Appraisal| Unit 5

1. KYTC Prepared by: Safaa S.Y. Dalloul Performance Appraisal| Unit 5 http://safaadalloul.wordpress.com 2013-2014

2. Elements of Lecture • Compensation • Safety • The electronic way | Programs • AvantosReviewWriter • Austin-Hayne Employee Appraiser • KnowledgePoint's Performance • 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

3. Performance Appraisal • 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

4. Performance Appraisal Management • 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.

5. Appraiser Discomfort • 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.

6. Uses of Performance Appraisal • 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:

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

8. HR planning • 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.

9. 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.

10. Career planning and development Performance appraisal data are essential in assessing an employee’s strengths and weaknesses and in deterring the person’s potential.

11. Compensation Programs 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.

12. Internal Employee Relations 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.

13. Assessment of Employee Potential Some organizations attempts to assess employee potential as they appraise their job performance.

14. PA-Methods Depend on its purpose

15. PA-Methods • The 360 Degree Feedback Evaluation

16. PA-Methods • Rating Scales

17. PA-Methods It is a performance appraisal technique that require a written record of highly favorable and highly unfavorable employee work behavior • Critical Incidents

18. PA-Methods • Essay It is a performance appraisal method on which the rater writes a brief narrative describing and employee’s performance.

19. PA-Methods • Work Standards It is a performance method that compares each employee’s performance to a predetermined standard or expected level of output.

20. 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

21. PA-Methods • Behaviorally Anchored Rating Scales

22. PA-Methods • Use of Computer Software

23. 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.

24. 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.

25. 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.

27. Equity In Financial Compensations (What) Equity: is the perception by workers that they are being treated fairly. Fair pay treatment for employees.

28. 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.

29. 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.

30. Reward (compensation) Objectives • Any organizational reward system has three behavioral objectives: • Membership behavior to recruit and retain a sufficient number of qualified workers • Task behavior to motivate employees to perform to the fullest extent of their capabilities • Compliance behavior to encourage employees to follow workplace rules and undertake special behaviors beneficial to the organizations without direct supervision or instructions.

31. 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

32. 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.

35. 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: • Gather data • Select compensable factors • Evaluate the job (ranking, job-grading, factor comparison, point method) • Assign pay to the job

38. 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.

39. 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.

40. 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.

41. Employee Appraisal, the E-Way Website • Software programs can improve the pace and quality of your employee-performance reviews. • Save your timeand effort • Lower Cost • Help to make a decision

42. Employee Appraisal, the E-Way • Currently, the 3 market leaders in the employee evaluation software field are: • Austin-Hayne's Employee Appraiser, • AvantosReviewWriter • KnowledgePoint's Performance Now!

43. Employee Appraisal, the E-Way • All three work in a similar manner. • Each program walks a supervisor through the evaluation process.

44. Employee Appraisal, the E-Way • 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.

45. Employee Appraisal, the E-Way • 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 salesrepresentative, clerical assistant or customer service manager.

46. Employee Appraisal, the E-Way • 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.

47. Employee Appraisal, the E-Way • 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.

48. Employee Appraisal, the E-Way • 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.

49. Employee Appraisal, the E-Way • 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.

50. AvantosReview-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".