Strategic Performance Appraisal Power Point


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  • Also: this approach helps managers actually manage performance, rather than just discuss it. It allows for performance to be a function of training and development and a means to reaching company goals.
  • Give the example: if employees are measured on creativity and innovation, then one of the company objectives should involve being the leader in innovation.
  • Note: talk about how in the traditional appraisal, there is a manager talking about specific individual productivity goals only and if they were met or not met. There is no mention of future career goals, organizational objectives or employee specific plans on how to reach goals.
  • Note: talk about the evaluation process. The employee fills out an evaluation of their own performance and then the manager and ee have a discussion about it. The future goals and then established and skill development necessary to reach these goals is determined. They do not discuss compensation.
  • Strategic Performance Appraisal Power Point

    1. 1. Strategic Performance Appraisal Delana Eichinger Melissa Holthaus Erin Silver
    2. 2. What is Strategic Performance Appraisal and Why Does it Matter? <ul><li>Strategic Performance Appraisal- employees evaluated by individual goals that are linked to overall organizational goals and objectives </li></ul><ul><li>Part of the performance management system , which organizes, facilitates and assesses employee contribution to overall company success </li></ul>
    3. 3. What is Strategic Performance Appraisal and Why Does it Matter? <ul><li>Performance management- requires demonstration of performance outcomes using specific metrics (i.e. productivity, decrease in costs, etc…) </li></ul><ul><li>The process of performance appraisal, in conjunction with overall performance management, seeks to explain how employees contribute to the BOTTOM LINE. </li></ul>
    4. 4. Strategic Performance Appraisal Trends <ul><li>Forced Ranking </li></ul><ul><ul><li>Forces managers to make serious choices about employee performance </li></ul></ul><ul><ul><li>Empowers managers to adhere to strict performance objectives </li></ul></ul><ul><ul><li>Recent criticism </li></ul></ul><ul><ul><li>Suggestion: make forced ranking systems more flexible </li></ul></ul>
    5. 5. Strategic Performance Appraisal Trends <ul><li>Calibration meetings- managers and supervisors discuss performance ratings and come to a consensus on individual ratings </li></ul><ul><li>Improves differentiation factor </li></ul><ul><li>Strengthens credibility and validity of ratings </li></ul><ul><li>Reinforces perceived importance of process </li></ul>
    6. 6. Strategic Performance Appraisal Trends <ul><li>Performance management as a function of training and development </li></ul><ul><li>New function deemed ‘L&P’ </li></ul><ul><li>Workforce performance and learning goals identified, based on organizational objectives </li></ul><ul><li>Developmental processes to achieve goals then formed (not courses) </li></ul>
    7. 7. Strategic Performance Appraisal Trends <ul><li>Reducing the scope of topics in PA sessions </li></ul><ul><li>Day-to-Day feedback </li></ul><ul><li>Feedback as a valuable service, not a reprimand </li></ul><ul><li>Manager as a ‘coach’ instead of ‘appraiser’ </li></ul><ul><li>Allows for future career planning and organizational goal linkage </li></ul>
    8. 8. Strategic Performance Appraisal Trends <ul><li>Changing the employee perception of performance management </li></ul><ul><li>Help employees set appropriate goals </li></ul><ul><li>Establish performance metrics </li></ul><ul><li>All metrics and rewards should be tied to organizational strategy; goals should reinforce company culture </li></ul>
    9. 9. Examples of Traditional PA <ul><li>A manager performs the appraisal annually, based on individual productivity stats </li></ul><ul><li>The appraiser fills out a form which states the employee’s productivity and some subjective comments about behavior </li></ul><ul><li>The appraisal’s main purpose is to determine raises and promotions </li></ul>
    10. 10. A ‘Performance’ Example
    11. 11. Examples of Strategic Performance Appraisal <ul><li>An organization’s core values include continuous improvement of customer service. A goal is set during the PA process that involves reducing customer service complaints by 15% in the coming year. This is linked to organizational values and is measurable . </li></ul>
    12. 12. Examples of Strategic Performance Appraisal (cont.) <ul><li>The manager establishes bi-monthly feedback sessions, where employees and managers have a brief one-on-one conversation regarding current performance goals and standards related to the status of the organization at that specific point in time. </li></ul>
    13. 13. Another ‘Performance’ Example
    14. 14. How are Organizations Using Strategic PA? <ul><li>Serono S.A. </li></ul><ul><li>Employees set their own goals, which must include one of the 15 core competencies </li></ul><ul><li>The core competencies are all tied into one of the five “pillars of excellence” </li></ul><ul><li> </li></ul>
    15. 15. How are Organizations Using Strategic PA? <ul><li>Bristol-Myers Squibb </li></ul><ul><li>Change in focus from past performance to forward-focus and goal attainment </li></ul><ul><li>Employees and managers now have an ongoing ‘performance partnership’ </li></ul><ul><li>Expectations adjusted and based on global corporate demands </li></ul><ul><li> </li></ul>