This document discusses performance management and appraisal. It covers topics such as employee engagement, the importance of performance management, defining performance appraisal and its uses. It describes the performance appraisal process and factors like environmental considerations. It also discusses different performance appraisal methods, potential problems, characteristics of an effective system, legal implications and how culture can impact appraisals.
This document discusses various aspects of direct financial compensation. It begins by outlining learning objectives related to executive pay, forms of compensation, equity in compensation, and determinants of compensation. It then covers determinants like the organization, labor market, job, legislation, and individual employee factors. Various compensation methods are examined, including job evaluation techniques, pay grades, performance-based plans, and benefits. Executive pay and its regulation are also addressed.
This document discusses training and development in human resource management. It covers topics such as determining training needs, selecting training methods, and evaluating training programs. Specific training methods discussed include instructor-led training, e-learning, case studies, role playing, and on-the-job training. Factors that influence training and development include technological advances, the shortage of skilled workers, and the need for continuous learning. The document also explores trends like mobile learning and different delivery systems for training such as corporate universities, online education, and videoconferencing.
The document summarizes key topics related to indirect financial compensation (benefits) and nonfinancial compensation from Chapter 10 of a human resource management textbook. It defines benefits, legally required benefits like Social Security and workers' compensation, discretionary benefits including health insurance and retirement plans, and nonfinancial compensation factors like flexible work schedules and job content. Major health care legislation impacting benefits is also summarized, such as COBRA, HIPAA, and the Affordable Care Act.
This document discusses the employee selection process. It covers the importance of selection and matching the right candidates to jobs. The selection process involves preliminary screening, reviewing applications and resumes, interviews, tests, and background checks. Interviews are a primary selection method but require structure and legal compliance to avoid biases. The goal is to select candidates most qualified for the job through valid and reliable screening methods.
This document discusses recruitment methods and sources. It begins by outlining learning objectives related to recruitment, including internal and external recruitment methods. It then discusses alternatives to recruitment like outsourcing. The recruitment process is described as attracting qualified candidates in a timely manner. Internal sources include job posting and referrals. External sources range from colleges to job boards. A variety of traditional methods are also outlined like advertising, agencies, and job fairs. The document stresses tailoring recruitment methods to the specific position and source. It concludes by discussing the trend of reshoring jobs back to the US.
The document discusses concepts related to job analysis, strategic planning, and human resource planning. It begins by outlining learning objectives covering topics like the importance of job analysis and disaster planning. It then provides details on conducting job analysis, including determining job requirements and developing job descriptions. The document also discusses using job analysis for legal compliance and strategic human resource planning. Finally, it covers strategic planning processes and challenges like managing worker surpluses or shortages through forecasting.
This document discusses managing employee careers. It covers traditional versus career planning-oriented approaches, the roles of employees, managers and employers in career development, and how to enhance diversity through career management. Promotion decisions involve factors like seniority versus competence. Career development can foster employee commitment through programs and appraisals aligned with commitment. Managing older workers involves practices like flexible work and part-time options. The chapter aims to explain these concepts and how career management relates to employee commitment.
This document provides an overview of training and development techniques discussed in Chapter 8. It begins with an introduction to employee orientation and the training process. It then discusses various training methods like on-the-job training, apprenticeship training, lectures, and computer-based training. It also covers management development, overcoming resistance to change, and evaluating training efforts. The document is from a 10th edition human resources textbook and aims to help readers understand key concepts around employee training.
This document discusses various aspects of direct financial compensation. It begins by outlining learning objectives related to executive pay, forms of compensation, equity in compensation, and determinants of compensation. It then covers determinants like the organization, labor market, job, legislation, and individual employee factors. Various compensation methods are examined, including job evaluation techniques, pay grades, performance-based plans, and benefits. Executive pay and its regulation are also addressed.
This document discusses training and development in human resource management. It covers topics such as determining training needs, selecting training methods, and evaluating training programs. Specific training methods discussed include instructor-led training, e-learning, case studies, role playing, and on-the-job training. Factors that influence training and development include technological advances, the shortage of skilled workers, and the need for continuous learning. The document also explores trends like mobile learning and different delivery systems for training such as corporate universities, online education, and videoconferencing.
The document summarizes key topics related to indirect financial compensation (benefits) and nonfinancial compensation from Chapter 10 of a human resource management textbook. It defines benefits, legally required benefits like Social Security and workers' compensation, discretionary benefits including health insurance and retirement plans, and nonfinancial compensation factors like flexible work schedules and job content. Major health care legislation impacting benefits is also summarized, such as COBRA, HIPAA, and the Affordable Care Act.
This document discusses the employee selection process. It covers the importance of selection and matching the right candidates to jobs. The selection process involves preliminary screening, reviewing applications and resumes, interviews, tests, and background checks. Interviews are a primary selection method but require structure and legal compliance to avoid biases. The goal is to select candidates most qualified for the job through valid and reliable screening methods.
This document discusses recruitment methods and sources. It begins by outlining learning objectives related to recruitment, including internal and external recruitment methods. It then discusses alternatives to recruitment like outsourcing. The recruitment process is described as attracting qualified candidates in a timely manner. Internal sources include job posting and referrals. External sources range from colleges to job boards. A variety of traditional methods are also outlined like advertising, agencies, and job fairs. The document stresses tailoring recruitment methods to the specific position and source. It concludes by discussing the trend of reshoring jobs back to the US.
The document discusses concepts related to job analysis, strategic planning, and human resource planning. It begins by outlining learning objectives covering topics like the importance of job analysis and disaster planning. It then provides details on conducting job analysis, including determining job requirements and developing job descriptions. The document also discusses using job analysis for legal compliance and strategic human resource planning. Finally, it covers strategic planning processes and challenges like managing worker surpluses or shortages through forecasting.
This document discusses managing employee careers. It covers traditional versus career planning-oriented approaches, the roles of employees, managers and employers in career development, and how to enhance diversity through career management. Promotion decisions involve factors like seniority versus competence. Career development can foster employee commitment through programs and appraisals aligned with commitment. Managing older workers involves practices like flexible work and part-time options. The chapter aims to explain these concepts and how career management relates to employee commitment.
This document provides an overview of training and development techniques discussed in Chapter 8. It begins with an introduction to employee orientation and the training process. It then discusses various training methods like on-the-job training, apprenticeship training, lectures, and computer-based training. It also covers management development, overcoming resistance to change, and evaluating training efforts. The document is from a 10th edition human resources textbook and aims to help readers understand key concepts around employee training.
This chapter discusses personnel planning and recruiting. It covers the recruitment and selection process, including forecasting personnel needs, determining internal and external candidate sources, and evaluating recruiting effectiveness. The key steps in recruitment are deciding what positions to fill, building a candidate pool through sources like referrals, screening applicants, selecting candidates through interviews, and making offers. Effective recruiting requires evaluating factors like the job market and legal compliance.
The document discusses job analysis which is defined as determining the duties, skills, and type of person required for a job. It covers topics such as talent management, collecting job analysis information through interviews and questionnaires, writing job descriptions and specifications, and competency-based job analysis. The overall purpose of job analysis is to understand the requirements of jobs in order to inform recruiting, performance management, compensation, and other human resource processes.
The document discusses employee testing and selection. It covers topics such as reliability and validity, how to validate tests, guidelines for testing programs, legal and ethical considerations, examples of common tests used for selection like cognitive abilities tests and personality tests, work sample tests, background checks, substance abuse screening, and how applicant tracking systems can help with recruitment. The overall purpose is to explain key concepts and best practices for using tests and assessments legally and effectively during the employee selection process.
Dessler ch 09-performance management and appraisalShamsil Arefin
This PowerPoint presentation summarizes key concepts from Chapter 9 of the 11th edition of the textbook "Human Resource Management" by Gary Dessler regarding performance management and appraisal. The presentation covers defining performance appraisal and management, setting employee goals and work standards, potential problems with appraisals and solutions, who should conduct appraisals, conducting effective appraisal interviews, and key terms from the chapter.
Chapter 16 management (10 th edition) by robbins and coulterMd. Abul Ala
The document summarizes key concepts from a chapter on leadership from a management textbook. It defines leadership and discusses early theories on leadership traits and behaviors. It then covers contingency theories of leadership, including Fiedler's model, situational leadership theory, and path-goal theory. Contemporary views of leadership presented include transactional vs transformational leadership as well as charismatic, visionary, and team leadership.
This document discusses compensation and benefits management. It defines key terms like salary, wages, and compensation. Salary refers to regular money received by an employee on a weekly, biweekly or monthly basis including benefits. Wages refer to payment for labor, especially on an hourly, daily or weekly basis. Compensation is the total payment and rewards provided to employees for their work, including pay, incentives and benefits. The document also outlines the components of an effective compensation strategy, and discusses different types of financial and non-financial compensation.
This document discusses different concepts and methods related to job evaluation. It covers the following key points in 3 sentences:
Job evaluation involves systematically evaluating jobs within an organization based on factors like skills, effort, responsibility, and working conditions to determine their relative worth and establish a pay structure. Common methods of job evaluation include ranking, classification, factor comparison, and point methods which break jobs down and compare them based on compensable factors. The goal of job evaluation is to establish equity and fairness in compensation by objectively assessing the value of different jobs within an organization.
Chapter 6 management (10 th edition) by robbins and coulterMd. Abul Ala
The document outlines key concepts about managerial decision making including:
1) The eight step decision making process involves identifying a problem, criteria, alternatives, selecting an alternative, implementation, and evaluation.
2) Managers face bounded rationality and may satisfice rather than optimize. They can also escalate commitment to past decisions.
3) Decisions are either programmed and routine or nonprogrammed and unique. They also occur under certainty, risk, or uncertainty.
This document discusses employee benefits and compensation. It covers several types of benefits including supplemental pay benefits like vacations, holidays, and severance pay. Insurance benefits like workers' compensation and health insurance are examined. Retirement benefits such as defined benefit plans and defined contribution plans are also outlined. The document considers policy issues in designing benefit packages and strategies for controlling healthcare costs. Flexible benefit programs and work arrangements are described as well. Key terms related to benefits and compensation are defined.
Organizational Behavior Chapter 5 Perception and Individual Decision MakingDr. John V. Padua
This document discusses perception and decision making. It defines perception as how individuals organize and interpret sensory impressions to understand their environment. Perception is influenced by factors like the situation, perceiver, and target. Attribution theory holds that people try to explain behaviors as either internal or external to the person. Common shortcuts used in judging others include selective perception, halo effect, contrast effects, and stereotyping. Decision making is linked to perception, which can influence problem identification, information processing, and conclusions. The document also outlines rational decision making, bounded rationality, intuitive decision making, and common decision biases. [/SUMMARY]
compensation in a knowledge based economy
,
compensation strategy
,
compensation history
,
what is compensation
,
importance of compensation
,
pay and social class
Chapter 10 management (10 th edition) by robbins and coulterMd. Abul Ala
The document provides an overview of Chapter 10 from the textbook "Managing Human Resources" by Stephen P. Robbins and Mary Coulter. It covers the key topics in the chapter, which include the human resource management process, identifying and selecting competent employees, providing employees with needed skills and knowledge through orientation and training, retaining high-performing employees, and contemporary issues in managing human resources such as downsizing and diversity. Learning outcomes are listed for each section, with definitions and explanations of important terms.
This document discusses components of employee compensation and benefits programs. It covers statutory benefits that are legally required such as Employees Provident Fund (EPF), social security, and paid leave. Non-statutory or discretionary benefits are also examined, including health insurance, retirement plans, education assistance, and work-life programs. Components of total compensation including direct financial pay, variable pay, and indirect benefits are broken down.
This chapter discusses theories of motivation. It begins by defining motivation as the processes that account for an individual's intensity, direction, and persistence of effort toward attaining an organizational goal. Early theories discussed include Maslow's hierarchy of needs, McGregor's Theory X and Y, Herzberg's two-factor theory, and McClelland's three needs theory. Contemporary theories covered are self-determination theory, job engagement, goal-setting theory and management by objectives, self-efficacy theory, equity theory, and expectancy theory.
Internal pay structures should support the organization's strategy, work flow, and motivate behavior toward objectives. They refer to pay relationships among jobs within an organization. An effective structure has the right number of levels, pay differentials between levels, and criteria for determining pay. It should align with strategy, support work processes, and incentivize employees to achieve goals.
Dessler ch 12-pay for performance and financial incentiveShamsil Arefin
This PowerPoint presentation discusses various types of pay for performance and financial incentive plans. It covers individual incentives like commissions for salespeople as well as organization-wide plans like employee stock ownership plans (ESOPs) and gainsharing plans. It also discusses incentives for managers, including short-term annual bonuses and long-term stock options. The presentation seeks to outline the main incentive plans and their pros and cons as well as steps for developing effective incentive compensation programs.
This document outlines the key components of a performance management process, including prerequisites, planning, execution, assessment, review, and renewal. It discusses conducting job analyses to understand job requirements and writing descriptions. Performance planning involves setting objectives, standards, and development plans. Execution requires commitment from both employees and managers. Assessment incorporates self and manager evaluations. Reviews cover past performance and future goals. Renewal recaps the cycle and allows for adjustments. The components are interrelated, so weak implementation of any part negatively impacts the overall system.
The document is a PowerPoint presentation on Chapter 10 from the 11th edition of the textbook "Human Resource Management" by Gary Dessler. The chapter discusses managing employee careers, including: 1) comparing traditional and career planning-oriented HR focuses; 2) explaining the roles of employees, managers, and employers in career development; 3) describing issues to consider when making promotions; 4) enhancing diversity through career management; and 5) how career development can foster employee commitment. The presentation provides an overview of key topics in career management including the employer's role, making promotion decisions, enhancing diversity, and attracting older workers.
establishing strategic pay plans
equity and its impact on pay rates
job evaluation methods
how to create a market-competitive pay plan
pricing managerial and professional jobs
contemporary topics in compensation
This document discusses performance management and appraisal. It covers topics like emotional intelligence, performance management goals, training and appraisal, and performance appraisal methods. Specifically, it defines performance appraisal as a formal review and evaluation system of individual or team task performance. It also outlines common problems with performance appraisals, such as bias, lack of objectivity, and employee anxiety. The document provides details on methods for performance appraisals, including ranking, forced distribution, paired comparisons, and graphic rating scales.
This document outlines a presentation on performance appraisal. It begins with definitions of performance appraisal and management. It then discusses the importance of performance appraisal for making decisions around promotions, preventing grievances, and more. Key topics covered include objectives of appraisal, how the system is used, responsibilities, elements, steps, criteria, methods, qualities of good appraisal, and types of appraisal interviews. Factors that can distort appraisals are also addressed.
This chapter discusses personnel planning and recruiting. It covers the recruitment and selection process, including forecasting personnel needs, determining internal and external candidate sources, and evaluating recruiting effectiveness. The key steps in recruitment are deciding what positions to fill, building a candidate pool through sources like referrals, screening applicants, selecting candidates through interviews, and making offers. Effective recruiting requires evaluating factors like the job market and legal compliance.
The document discusses job analysis which is defined as determining the duties, skills, and type of person required for a job. It covers topics such as talent management, collecting job analysis information through interviews and questionnaires, writing job descriptions and specifications, and competency-based job analysis. The overall purpose of job analysis is to understand the requirements of jobs in order to inform recruiting, performance management, compensation, and other human resource processes.
The document discusses employee testing and selection. It covers topics such as reliability and validity, how to validate tests, guidelines for testing programs, legal and ethical considerations, examples of common tests used for selection like cognitive abilities tests and personality tests, work sample tests, background checks, substance abuse screening, and how applicant tracking systems can help with recruitment. The overall purpose is to explain key concepts and best practices for using tests and assessments legally and effectively during the employee selection process.
Dessler ch 09-performance management and appraisalShamsil Arefin
This PowerPoint presentation summarizes key concepts from Chapter 9 of the 11th edition of the textbook "Human Resource Management" by Gary Dessler regarding performance management and appraisal. The presentation covers defining performance appraisal and management, setting employee goals and work standards, potential problems with appraisals and solutions, who should conduct appraisals, conducting effective appraisal interviews, and key terms from the chapter.
Chapter 16 management (10 th edition) by robbins and coulterMd. Abul Ala
The document summarizes key concepts from a chapter on leadership from a management textbook. It defines leadership and discusses early theories on leadership traits and behaviors. It then covers contingency theories of leadership, including Fiedler's model, situational leadership theory, and path-goal theory. Contemporary views of leadership presented include transactional vs transformational leadership as well as charismatic, visionary, and team leadership.
This document discusses compensation and benefits management. It defines key terms like salary, wages, and compensation. Salary refers to regular money received by an employee on a weekly, biweekly or monthly basis including benefits. Wages refer to payment for labor, especially on an hourly, daily or weekly basis. Compensation is the total payment and rewards provided to employees for their work, including pay, incentives and benefits. The document also outlines the components of an effective compensation strategy, and discusses different types of financial and non-financial compensation.
This document discusses different concepts and methods related to job evaluation. It covers the following key points in 3 sentences:
Job evaluation involves systematically evaluating jobs within an organization based on factors like skills, effort, responsibility, and working conditions to determine their relative worth and establish a pay structure. Common methods of job evaluation include ranking, classification, factor comparison, and point methods which break jobs down and compare them based on compensable factors. The goal of job evaluation is to establish equity and fairness in compensation by objectively assessing the value of different jobs within an organization.
Chapter 6 management (10 th edition) by robbins and coulterMd. Abul Ala
The document outlines key concepts about managerial decision making including:
1) The eight step decision making process involves identifying a problem, criteria, alternatives, selecting an alternative, implementation, and evaluation.
2) Managers face bounded rationality and may satisfice rather than optimize. They can also escalate commitment to past decisions.
3) Decisions are either programmed and routine or nonprogrammed and unique. They also occur under certainty, risk, or uncertainty.
This document discusses employee benefits and compensation. It covers several types of benefits including supplemental pay benefits like vacations, holidays, and severance pay. Insurance benefits like workers' compensation and health insurance are examined. Retirement benefits such as defined benefit plans and defined contribution plans are also outlined. The document considers policy issues in designing benefit packages and strategies for controlling healthcare costs. Flexible benefit programs and work arrangements are described as well. Key terms related to benefits and compensation are defined.
Organizational Behavior Chapter 5 Perception and Individual Decision MakingDr. John V. Padua
This document discusses perception and decision making. It defines perception as how individuals organize and interpret sensory impressions to understand their environment. Perception is influenced by factors like the situation, perceiver, and target. Attribution theory holds that people try to explain behaviors as either internal or external to the person. Common shortcuts used in judging others include selective perception, halo effect, contrast effects, and stereotyping. Decision making is linked to perception, which can influence problem identification, information processing, and conclusions. The document also outlines rational decision making, bounded rationality, intuitive decision making, and common decision biases. [/SUMMARY]
compensation in a knowledge based economy
,
compensation strategy
,
compensation history
,
what is compensation
,
importance of compensation
,
pay and social class
Chapter 10 management (10 th edition) by robbins and coulterMd. Abul Ala
The document provides an overview of Chapter 10 from the textbook "Managing Human Resources" by Stephen P. Robbins and Mary Coulter. It covers the key topics in the chapter, which include the human resource management process, identifying and selecting competent employees, providing employees with needed skills and knowledge through orientation and training, retaining high-performing employees, and contemporary issues in managing human resources such as downsizing and diversity. Learning outcomes are listed for each section, with definitions and explanations of important terms.
This document discusses components of employee compensation and benefits programs. It covers statutory benefits that are legally required such as Employees Provident Fund (EPF), social security, and paid leave. Non-statutory or discretionary benefits are also examined, including health insurance, retirement plans, education assistance, and work-life programs. Components of total compensation including direct financial pay, variable pay, and indirect benefits are broken down.
This chapter discusses theories of motivation. It begins by defining motivation as the processes that account for an individual's intensity, direction, and persistence of effort toward attaining an organizational goal. Early theories discussed include Maslow's hierarchy of needs, McGregor's Theory X and Y, Herzberg's two-factor theory, and McClelland's three needs theory. Contemporary theories covered are self-determination theory, job engagement, goal-setting theory and management by objectives, self-efficacy theory, equity theory, and expectancy theory.
Internal pay structures should support the organization's strategy, work flow, and motivate behavior toward objectives. They refer to pay relationships among jobs within an organization. An effective structure has the right number of levels, pay differentials between levels, and criteria for determining pay. It should align with strategy, support work processes, and incentivize employees to achieve goals.
Dessler ch 12-pay for performance and financial incentiveShamsil Arefin
This PowerPoint presentation discusses various types of pay for performance and financial incentive plans. It covers individual incentives like commissions for salespeople as well as organization-wide plans like employee stock ownership plans (ESOPs) and gainsharing plans. It also discusses incentives for managers, including short-term annual bonuses and long-term stock options. The presentation seeks to outline the main incentive plans and their pros and cons as well as steps for developing effective incentive compensation programs.
This document outlines the key components of a performance management process, including prerequisites, planning, execution, assessment, review, and renewal. It discusses conducting job analyses to understand job requirements and writing descriptions. Performance planning involves setting objectives, standards, and development plans. Execution requires commitment from both employees and managers. Assessment incorporates self and manager evaluations. Reviews cover past performance and future goals. Renewal recaps the cycle and allows for adjustments. The components are interrelated, so weak implementation of any part negatively impacts the overall system.
The document is a PowerPoint presentation on Chapter 10 from the 11th edition of the textbook "Human Resource Management" by Gary Dessler. The chapter discusses managing employee careers, including: 1) comparing traditional and career planning-oriented HR focuses; 2) explaining the roles of employees, managers, and employers in career development; 3) describing issues to consider when making promotions; 4) enhancing diversity through career management; and 5) how career development can foster employee commitment. The presentation provides an overview of key topics in career management including the employer's role, making promotion decisions, enhancing diversity, and attracting older workers.
establishing strategic pay plans
equity and its impact on pay rates
job evaluation methods
how to create a market-competitive pay plan
pricing managerial and professional jobs
contemporary topics in compensation
This document discusses performance management and appraisal. It covers topics like emotional intelligence, performance management goals, training and appraisal, and performance appraisal methods. Specifically, it defines performance appraisal as a formal review and evaluation system of individual or team task performance. It also outlines common problems with performance appraisals, such as bias, lack of objectivity, and employee anxiety. The document provides details on methods for performance appraisals, including ranking, forced distribution, paired comparisons, and graphic rating scales.
This document outlines a presentation on performance appraisal. It begins with definitions of performance appraisal and management. It then discusses the importance of performance appraisal for making decisions around promotions, preventing grievances, and more. Key topics covered include objectives of appraisal, how the system is used, responsibilities, elements, steps, criteria, methods, qualities of good appraisal, and types of appraisal interviews. Factors that can distort appraisals are also addressed.
The document discusses performance appraisals, which are methods used by organizations to evaluate employee job performance. Performance appraisals aim to assess both quantitative and qualitative aspects of work. They seek to improve performance, develop employees, help supervisors understand subordinates, and facilitate fair compensation based on performance. Appraisals are conducted periodically according to a plan and include self-appraisals, peer evaluations, staff evaluations, and 360-degree appraisals that gather feedback from various colleagues. Compensation and collective bargaining are also discussed.
The document discusses performance management and describes its five key steps: 1) defining performance expectations, 2) providing ongoing feedback, 3) conducting performance appraisals, 4) determining rewards/consequences, and 5) conducting career development discussions. It also examines various appraisal methods, issues with performance appraisals, ensuring effective discussions, and the future of performance management focusing on linking goals to strategy and investing in employee development.
The document discusses performance appraisals, including their benefits and purpose. It describes the typical appraisal process of establishing expectations and standards, observing performance, and providing feedback. Several types of appraisals are compared, such as graphic rating scales, paired comparisons, and 360-degree feedback. Potential sources of bias in appraisals are also examined. The document provides guidance for supervisors to effectively prepare for and conduct performance appraisal interviews.
This document discusses performance management in organizations. It defines performance management as a systematic process that involves employees in improving organizational effectiveness through accomplishing goals and missions. Key aspects of performance management include planning work, monitoring performance, developing capacity, periodically reviewing performance, and rewarding good performance. The overall aims are to align individual goals with organizational goals and improve performance at individual, departmental, and overall levels. Performance management helps clarify expectations, set goals, and encourage coaching and feedback to enhance commitment and performance.
Performance Management and Performance Appraisalsminnoo
This document discusses performance management and performance appraisals. It defines performance as successfully accomplishing tasks through skills, knowledge and motivation. Performance management is establishing shared goals and developing employees to achieve organizational objectives. Key aspects of performance management include identifying, measuring, evaluating, improving and rewarding employee performance. Performance appraisals systematically evaluate employee performance against standards and provide feedback. They are used to provide rewards, training, determine potential and review performance. The document outlines the performance appraisal process and various appraisal techniques. It also discusses challenges in performance appraisals such as biases and ineffective practices.
This document outlines the key steps in the performance appraisal process and how it can be used to establish an effective employee evaluation system. It discusses identifying training needs, setting objectives, measuring performance, providing feedback, and evaluating results. When using performance appraisal for the construction industry specifically, the document recommends focusing on key performance indicators like project timelines, costs, and quality. It also emphasizes regular communication, training opportunities, and celebrating successes to boost employee motivation.
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Performane evaluation and employee retention my reportAileen Banaguas
This document provides details on performance appraisal methods and strategies for employee retention. It discusses various past-oriented and future-oriented methods for performance appraisal, including rating scales, forced choice, management by objectives, and 360-degree feedback. It also outlines strategies for retaining employees such as clear communication, coaching, performance metrics, growth opportunities, and positive feedback. The document concludes with a sample performance appraisal form for a teacher, assessing instructional competence, professional characteristics, and punctuality.
This document discusses performance management and the roles of various parties involved. It outlines the key steps in developing an effective performance evaluation system, including creating evaluation forms, setting performance measures, providing feedback guidelines, and establishing disciplinary procedures. It emphasizes that performance evaluations should be conducted fairly and consistently using standardized forms and measures. The roles of top managers, line managers, and employees are also summarized. Top managers are responsible for setting goals and culture, while line managers implement policies and need proper training. Employees should actively participate in the performance management process.
This document discusses performance appraisal at the Islamic University in Uganda. It begins with definitions of performance appraisals and describes different types including manager/employee, peer, and interview appraisals. It then outlines benefits like improved communication and motivation, and criticisms such as being prone to inflation and negative employee perceptions. The document provides best practices for performance appraisals and links them to rewards, discipline, and grievance procedures. It also examines appraisal methods, data sources, procedures, reports, and common errors.
Chapter 7 Implementing a Performance Management SystemPreeti Bhaskar
This document discusses how to implement an effective performance management system. It recommends gaining buy-in through communication and training. The communication plan should explain what performance management is and how it benefits employees. Training should minimize rater biases and teach how to accurately evaluate performance. A pilot test allows working out issues before full implementation. Ongoing evaluation ensures the system meets its goals.
The document discusses the importance of needs assessment for training programs. It describes that needs assessment involves organizational analysis, person analysis, and task analysis to determine if training is the appropriate solution, who needs training, and the relevant content. It highlights that needs assessment ensures training addresses real performance gaps, has the right objectives, and trainees are ready. The document provides details on different needs assessment techniques and stresses using multiple methods. It also outlines the needs assessment process and factors to consider when evaluating performance issues and employee readiness.
This document discusses performance appraisals and how to conduct them effectively while avoiding bias. It outlines the benefits of appraisals in motivating employees and providing records for decisions. The appraisal process involves establishing expectations, observing performance, and providing feedback. Various appraisal methods are described, including rating scales, paired comparisons, essays, and checklists. The document emphasizes establishing objective standards and avoiding biases from personal preferences, central tendency, proximity, harshness, or leniency that could undermine fair evaluations.
This document discusses performance appraisals and how to conduct them effectively while avoiding bias. It outlines the benefits of appraisals in motivating employees and providing records for decisions. The appraisal process involves establishing expectations, observing performance, and providing feedback. Various appraisal methods are described, including rating scales, paired comparisons, forced-choice, and checklists. The document emphasizes establishing objective standards and avoiding biases from leniency, harshness, proximity, and personal preferences that could discriminate against employees.
Performance monitoring involves appraising employee performance on an ongoing basis to ensure goals are met and competencies are developed. It is done through maintaining performance records, identifying key performance indicators, and conducting periodic reviews. The objectives of performance monitoring include fulfilling tasks and goals on time, improving employee performance, and facilitating career development through continuous learning. The process involves using written reports, scheduled meetings, and on-site inspections to gather information on employee performance.
The document discusses performance appraisals, including their definition, purpose, elements, characteristics of effective appraisals, and obstacles to effective appraisals. Performance appraisals are used to review employee performance, provide feedback, identify training needs, and inform personnel decisions. They should be systematic, impartial, and involve setting goals, measuring performance, and providing feedback. Effective appraisals clearly define standards and purposes, train evaluators, and have management support.
The document discusses performance appraisals, including their definition, purpose, methods, and best practices. It defines performance appraisal as the systematic evaluation of an employee's job performance and potential. Some key points include: performance appraisals aim to provide feedback, identify training needs, and form a basis for personnel decisions. Effective methods include setting goals/objectives, collecting data on performance, conducting interviews, and providing follow-up. Common errors to avoid are rater biases like the halo effect.
This document provides an overview of global human resource management. It discusses topics such as the evolution of global business, global staffing approaches, compensation for expatriates and host country nationals, global human resource development, safety and health, and legal/political factors. The objectives are to describe the impact of globalization on HR and explain considerations related to areas like staffing, development, compensation and labor relations from a worldwide perspective.
This chapter discusses internal employee relations and managing employee movement within an organization. It covers topics like discipline, termination, downsizing, transfers, promotions, resignations, and retirement. It describes the importance of retention and defines internal employee relations as HR activities associated with employee movement after joining. It explains the concept of employment-at-will and exceptions to it. It also discusses approaches to disciplinary action, the disciplinary process, terminations, demotions, downsizing, alternative dispute resolution, and the challenges of administering discipline globally.
This document provides an overview of Chapter 12 from a human resource management textbook on labor unions and collective bargaining. It covers key topics such as project labor agreements, reasons why employees join unions, union growth strategies, laws affecting collective bargaining, the collective bargaining process, preparing for and conducting negotiations, potential issues that can arise, and administering collective bargaining agreements. The chapter objectives are to describe these various concepts and processes related to unions and collective bargaining.
This document discusses topics related to maintaining a safe and healthy work environment. It covers resilience training, the role of the Occupational Safety and Health Administration (OSHA) in ensuring workplace safety, common workplace injuries and how to prevent them through ergonomics programs. Other topics include workplace violence, domestic violence, workplace bullying, and stress management through wellness programs. The overall goal is to educate about maintaining workplace safety and health.
This document provides an overview of chapter 3 from a human resource management textbook. It discusses several topics related to workplace diversity, equal employment opportunity, and affirmative action. Specifically, it defines key terms like diversity and discusses components of a diverse workforce such as different generations, minorities, immigrants, and persons with disabilities. It also outlines many important laws that promote equal employment like the Civil Rights Act, Americans with Disabilities Act, and Age Discrimination in Employment Act. Finally, it summarizes some landmark Supreme Court cases that have impacted equal opportunity and affirmative action.
This document summarizes the key topics and learning objectives covered in Chapter 2 of the 13th edition of the textbook "Human Resource Management". The chapter discusses business ethics and corporate social responsibility. It covers defining ethics and sources of ethical guidance, legislating ethics through various acts, creating an ethical culture and code of ethics, the importance of ethics training, and defining and approaches to corporate social responsibility including sustainability and social audits. It also notes challenges to corporate social responsibility succeeding globally.
This document provides an overview of strategic human resource management. It begins by listing learning objectives related to defining HRM, identifying HRM functions and factors that influence HRM. It then discusses employer branding, corporate culture, and the utilization of individuals to achieve organizational objectives. The major HRM functions are identified as staffing, human resource development, compensation, and employee and labor relations. External environmental factors like the legal system, labor market and economy are described as influencing HRM. The roles of various individuals and departments in performing HRM tasks are also outlined.
E-business allows companies to execute transactions over the internet, including providing product information, placing orders with suppliers, allowing customers to place orders, track orders, receive payments, and more. It plays a significant role in many supply chains today. E-business can impact a company's responsiveness by enabling new revenues through direct sales and 24/7 access, and impact efficiency by reducing inventory, facility, transportation, and information costs. For a company to be successful with e-business, it must integrate the internet with existing distribution channels in a way that leverages the strengths of each.
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Burger King needs to improve its marketing and publicity strategies to better compete with McDonald's. Currently, BK has a wide portfolio of quality products but does not effectively promote them. The document recommends implementing unconventional below-the-line marketing tactics to reach consumers' unconscious minds. These could include viral videos, merchandising, printed articles, and increased advertising on local TV and radio channels. Strengthening community partnerships and loyalty programs are also suggested to attract new customers and increase brand awareness.
The document discusses the Theory of Constraints (TOC), an overall management philosophy introduced by Dr. Eliyahu M. Goldratt. TOC helps organizations continually achieve their goals by identifying the core constraints blocking them, then devising strategies to overcome those constraints. It uses a five-step process to identify the constraint, exploit it, subordinate everything else to addressing it, elevate its performance, and re-evaluate if the constraint has shifted. TOC has been applied successfully across industries to improve production, project management, distribution, supplier relations, and marketing. It provides an integrated problem-solving methodology to develop sustainable strategies that benefit all stakeholders.
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Employee engagement refers to the level of commitment workers make to their employer, seen in their willingness to stay at the firm and to go beyond the call of duty. The concept of engagement serves as a reminder that people ultimately drive an organization’s success. Engagement is found in employees’ minds, hearts, and hands. It evolves into the positive culture that exists within the organization. Engaged workers want to come to work every day and do what is needed to get the job done right.
Performance management is a goal-oriented process used to maximize the productivity of employees, teams, and the overall organization. Whereas performance appraisal occurs at a specific time, performance management is an ongoing process. Each part of the system, such as training, appraisal, and rewards, is integrated and linked for the purpose of improving organizational effectiveness. To encourage this, performance management systems often include incentives so that workers are rewarded for achieving strategic goals.
Performance appraisal is a formal system of review and evaluation of individual and team performance. Performance appraisals are often a disliked requirement of organizational life. It usually goes without saying that most managers do not like giving performance appraisals and most employees do not like receiving them. However, appraisal is a critical part of performance management because it helps provide feedback, encourage performance improvement, identify training and development needs, and defend personnel decisions. As such, developing an effective performance appraisal system has been, and will continue to be, a high priority for management.
For many organizations, the primary goal of an appraisal system is to improve individual and organizational performance. There are often other goals, but rarely can one system do everything well without taking a lot of time and effort:
In assessing a firm’s human resources, data must be available to identify those who have the potential to be promoted or for any area of internal employee relations.
Performance evaluation ratings may be helpful in predicting the performance of job applicants.
Performance appraisal should point out an employee’s specific needs for training and development.
Career planning is an ongoing process whereby an individual sets career goals and identifies the means to achieve them. On the other hand, career development is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Performance appraisal data is essential in assessing an employee’s strengths and weaknesses and in determining the person’s potential.
Performance appraisal results provide a basis for rational decisions regarding pay adjustments. Most managers believe that you should reward outstanding job performance tangibly with pay increases. They believe that the behaviors you reward are the behaviors you get.
Performance appraisal data are also used for decisions in several areas of internal employee relations, including promotion, demotion, termination, layoff, and transfer.
Some organizations attempt to assess an employee’s potential as they appraise his or her job performance.
External and internal environmental factors can influence the appraisal process. For example, legislation requires that appraisal systems be nondiscriminatory.
External and internal environmental factors can influence the appraisal process. For example, legislation requires that appraisal systems be nondiscriminatory. In the case of Mistretta v Sandia Corporation (a subsidiary of Western Electric Company, Inc.), a federal district court judge ruled against the company, stating, “There is sufficient circumstantial evidence to indicate that age bias and age based policies appear throughout the performance rating process to the detriment of the protected age group.” The Albemarle Paper v Moody case also supported validation requirements for performance appraisals, as well as for selection tests. Organizations should avoid using any appraisal method that results in a disproportionately negative impact on a protected group.
The labor union is another external factor that might affect a firm’s appraisal process. Unions have traditionally stressed seniority as the basis for promotions and pay increases. They may vigorously oppose the use of a management-designed performance appraisal system used for these purposes.
Factors within the internal environment can also affect the performance appraisal process. For instance, a firm’s corporate culture can assist or hinder the process. Today’s dynamic organizations, which increasingly use teams to perform jobs, recognize overall team results as well as individual contributions. A nontrusting culture does not provide the environment needed to encourage high performance by either individuals or teams. In such an atmosphere, the credibility of an appraisal system will suffer regardless of its merits.
Managers do not like administering performance appraisal and employees do not like receiving them. Historically, the performance appraisal process involved managers telling workers what they wanted them to do, determining the degree to which the task was completed, and rewarding or punishing them based on how well the job was done. Today firms stress employee empowerment and engagement. They also want employees to work in teams to accomplish their duties. Teams, not managers, are often making the decisions which run counter to the tradition appraisal system. There are those who believe that a firm cannot have an empowered and engaged workforce and still use a traditional performance appraisal system.
The starting point for the performance appraisal process is identifying specific performance goals. The next step is to establish performance criteria and communicate these expectations to employees. At the end of the appraisal period, which is typically anywhere from 3 to 12 months, the supervisor and the employee review work performance against the performance standards. This review helps determine how well employees have done, explores reasons for deficiencies, and develops a plan to correct the problems.
There is an old adage that says, “What gets measured gets done.” Therefore, management must carefully select performance criteria that pertain to achieving strategic goals. The most common appraisal criteria are traits, behaviors, competencies, goal achievement, and improvement potential.
Traits are usually thought of as resulting from biology. A personality trait is more ingrained as with a person being introverted or extroverted. Certain employee traits such as appearance and cognitive aptitude may be the basis for some evaluations.
Organizations need to be cautious when using traits for evaluations, as many of these qualities are subjective and may be either unrelated to job performance or difficult to define. In such cases, inaccurate evaluations may occur and create legal problems for the organization.
Behaviors are typically viewed as resulting from life experiences. A behavior may have been learned from parents, significant friends or from a certain work environment. A behavior can be changed but traits are usually more established. Often a young person who joins the military will have many behavioral changes take place prior to returning to civilian life. An appropriate behavior to evaluate for a manager might be leadership style. For individuals working in teams, developing others, teamwork and cooperation, or customer service orientation might be appropriate. Desired behaviors may be appropriate as evaluation criteria because if they are recognized and rewarded, employees tend to repeat them. If certain behaviors result in desired outcomes, there is merit in using them in the evaluation process.
Competencies include a broad range of knowledge, skills, traits, and behaviors that are needed to perform a job successfully. They may be technical in nature, relate to interpersonal skills, or are business-oriented. For example, analytical thinking and achievement orientation might be essential in professional jobs. In leadership jobs, relevant competencies might include developing talent, delegating authority, and people management skills. The competencies selected for evaluation purposes should be those that are closely associated with job success.
If organizations consider the ends more important than the means, then using only goal achievement as an outcome might be appropriate. The outcomes established should be within the control of the individual or team and should be those results that lead to the firm’s success. At upper levels, the goals might be profit and market share. At lower organizational levels, the outcomes might be meeting the customer’s quality requirements and delivering according to the promised schedule.
When organizations evaluate their employees’ performance, the focus is often on the past. However, firms should also emphasize the development of behaviors employees need to achieve the firm’s goals. This begins with an accurate assessment of the employee’s improvement potential to ensure effective career planning and development.
The HR department is usually responsible for coordinating the design and implementation of performance appraisal programs. However, it is essential that line managers are involved from beginning to end. These individuals usually conduct the appraisals; therefore, they should participate in the design of the program if it is to succeed.
An employee’s immediate supervisor is usually the most logical choice for evaluating performance. The supervisor is usually in an excellent position to observe the employee’s job performance and the performance of a team. On the negative side, individual supervisors may only focus on certain aspects of employee performance, or may manipulate evaluations to justify pay increases and promotions.
Historically, our culture has viewed the evaluation of managers by subordinates negatively. However, subordinates are in an excellent position to view their superiors’ managerial effectiveness. Advocates believe that this approach leads supervisors to become especially conscious of the work group’s needs and to do a better job of managing. Critics argue that managers may view it as a popularity contest or that employees will be fearful of reprisal.
A major strength of using peers to appraise performance is that they work closely with the employee and probably have an undistorted perspective on day-to-day performance. Problems with peer evaluations include the reluctance of some people, especially on teams, to criticize each other. On the other hand, if an employee has a conflict with another worker he or she might provide an unfair evaluation. Another problem concerns peers who interact infrequently and therefore lack the information needed to make an accurate assessment.
If employees understand their objectives and the criteria used for evaluation, they are in a good position to appraise their own performance. Many people know what they do well on the job and what they need to improve. If they have the opportunity, they will criticize their own performance objectively and take action to improve it. If the appraisal system is fair and equitable, self-appraisal can actually lead to more highly motivated employees.
Customers often determine a firm’s success, so some organizations believe it is important to obtain performance input from them as well. Organizations use this approach because it demonstrates a commitment to the customer, holds employees accountable, and fosters positive change.
Telecommuting is a work arrangement whereby employees are able to remain otherwise away from the office and perform their work using computers and other electronic devices that connect them with their offices. When conducting performance appraisal for telecommuters, there are some general guidelines to follow to assure that employees who are not in the office are not treated differently. Certainly there should be a well-defined understanding of job roles and performance measures. All telecommuters should have objective measurements that apply to all employees. Employers must take care not to vary the performance standards and metrics for virtual workers who have job duties that are similar to those of office-based counterparts.
Formal performance evaluations are usually prepared at specific intervals. Although there is nothing magical about the period for formal appraisal reviews, in most organizations they occur either annually or semiannually. Even more significant, however, is the continuous interaction (primarily informal), including coaching and other developmental activities, that continues throughout the appraisal period. Managers should be conditioned to understand that managing performance is a continuous process that is built into their job every day. In the current business climate, firms may want to consider monitoring performance more often. Changes occur so fast that employees need to look at objectives and their own roles throughout the year to see whether changes are in order. Southwest Airlines has asked its managers to have monthly check-ins with staff rather than semiannual ones.
There are a number of performance appraisal methods available, and the methods used should reflect the intended purpose.
360-degree feedback is a popular performance appraisal method that involves gathering input from multiple sources. People all around the employee may provide ratings, including senior managers, the employee himself or herself, supervisors, subordinates, peers, team members, and customers. As many as 90 percent of Fortune 500 companies use some form of 360-degree feedback for employee evaluation or development.
Rating scales can be used by evaluators to assess employees according to defined factors. The scale typically has 4 to 7 categories, defined by adjectives such as outstanding, meets expectations, or needs improvement. This method is simple and easy to use, which permits quick evaluations of many employees and facilitates comparison of employees’ performances.
The critical incident method requires keeping written records of highly favorable and unfavorable employee work actions. When a “critical incident” affects the department’s effectiveness significantly, the manager writes it down. These records are then used to evaluate employee performance, and the appraisal is more likely to cover the entire evaluation period than other methods of appraisal may be.
The essay method entails the manager writing a brief narrative describing the employee’s performance. This method tends to focus on extreme behavior in the employee’s work rather than on routine day-to-day performance. Comparing essay evaluations is usually difficult because no common criteria exist.
The work standards method is a performance appraisal technique that compares each employee’s performance to a predetermined standard. Firms may apply work standards to virtually all types of jobs, but production jobs generally receive the most attention. An advantage of using this method is that it can be very objective if standards are fair and set in a transparent manner.
Ranking is when a rater ranks all employees from a group in order of overall performance. Some professionals believe this comparative approach is especially useful when management must make human resource decisions such as promotion or pay increases.
Paired comparison is a variation of the ranking method in which the performance of each employee is compared with that of every other employee in the group. The employee who receives the greatest number of favorable comparisons receives the highest ranking.
The forced distribution method requires the rater to assign individuals in a work group to a limited number of categories. The purpose is to keep managers from being excessively lenient and having a disproportionate number of employees in the “superior” category. Forced distribution systems have been around for decades, and firms such as General Electric, Hewlett-Packard, Microsoft, Pepsi, Caterpillar, Goodyear, and Capital One use such systems.
Although used by some prestigious firms, the forced distribution system appears to be unpopular with many managers. Critics of forced distribution contend that it compels managers to penalize a good, although not a great, employee who is part of a superstar team. Employees are often opposed to forced ranking because they suspect it is a way for companies to justify firings.
The behaviorally anchored rating scale (or BARS) method combines elements of the traditional rating scales and critical incident methods. A BARS system differs from rating scales because, instead of using terms such as high, medium, and low, it uses behavioral anchors related to the criterion being measured. This clarifies the meaning of each point on the scale and reduces rater bias and error by anchoring the rating with specific behavioral examples based on job analysis information. A drawback is that the behaviors are activity-oriented rather than results-oriented. Also, the method may not be economically feasible because each job category requires its own rating scale. Yet, among the various appraisal techniques, the BARS method is perhaps the most highly defensible in court because it is based on actual observable job behaviors.
In the past a form of management by objectives (MBO). Although all aspects of an MBO system did not work effectively, there were sections that remain as part of an effective appraisal system. The crucial phase of the MBO process requires that challenging but attainable objectives and standards be established through interaction between superiors and subordinates. Individuals jointly established objectives with their superiors, who then give them some latitude in how to achieve the objectives. Action plans require clear delineation of what specifically is to be accomplished and when it is to be completed. With MBO, performance is evaluated on the basis of progress toward objective attainment. Having specific performance objectives provides management with a basis for comparison. When objectives are agreed on by the manager and the subordinate, self-evaluation and controls become possible. In fact, with MBO, performance appraisal can be a joint effort, based on mutual agreement. With MBO, it is left up to the managers to take corrective action when results are not as planned.
Many of the problems commonly mentioned about performance appraisal are not inherent in the method, but rather reflect improper implementation. For example, firms may fail to provide adequate rater training or they may use appraisal criteria that are too subjective and are not clearly job related. The following section highlights some of the more common problem areas.
Conducting performance appraisals is often a frustrating management task. If a performance appraisal system has a faulty design or improper administration, employees will dread receiving appraisals and the managers will despise giving them. In fact, some managers have always loathed the time, paperwork, difficult choices, and discomfort that often accompanies the appraisal process. Effective training will help alleviate some, but probably not all, of this appraiser discomfort.
A potential weakness of traditional performance appraisal methods is that they lack objectivity. Employee appraisal based primarily on attitude, appearance, and personality are difficult to measure and may have little to do with an employee’s job performance. Although subjectivity will always be present in appraisal, using personal characteristics will always be difficult to defend if they are not clearly job related.
A halo error occurs when a manager generalizes one positive performance feature or incident to all aspects of employee performance, resulting in a higher rating. For example, Rodney Pirkle, accounting supervisor, placed a high value on neatness, a factor used in the company’s performance appraisal system. As Rodney was evaluating the performance of his senior accounting clerk, Jack Hicks, he noted that Jack was a very neat individual and gave him a high ranking on this factor. Also, consciously or unconsciously, Rodney permitted the high ranking on neatness to carry over to other factors, giving Jack undeserved high ratings on all factors. Of course, if Jack had not been neat, the opposite could have occurred. With the horn error, a manager generalizes a negative performance feature to all aspects of employee performance, resulting in a lower rating.
Giving undeserved high ratings to an employee is referred to as leniency. This behavior is often motivated by a desire to avoid controversy over the appraisal. When managers know they are evaluating employees for administrative purposes, such as pay increases, they are likely to be more lenient than when evaluating performance to achieve employee development. Being overly critical of an employee’s work performance is referred to as strictness. The worst situation is when a firm has both lenient and strict managers, and therefore is not able to make fair comparisons across employee evaluations.
Central tendency is an error that occurs when employees are incorrectly rated near the middle of a scale. This practice may be encouraged by some systems that require the evaluator to justify, in writing, any extremely high or low ratings. With such a system, the rater may avoid possible controversy or criticism by giving only average ratings. When a manager gives an underachiever or overachiever an average rating, it undermines the compensation and promotion systems.
Although his or her actions may not be conscious, an employee’s behavior often improves and productivity tends to rise several days or weeks before an evaluation. It is only natural for a rater to remember recent behavior more clearly than actions from the more distant past. An individual’s performance over the entire period should be considered, and maintaining detailed records of performance helps avoid this problem.
This pitfall occurs when managers allow individual differences to affect the ratings they give. If there are factors to avoid such as gender, race, or age, not only is this problem detrimental to employee morale, but it is obviously illegal and can result in costly lawsuits. The effects of cultural bias, or stereotyping, can definitely influence appraisals. Managers establish mental pictures of what are considered ideal typical workers, and employees who do not match this picture may be unfairly judged. While all people have biases of some type that can affect the appraisal process, a successful evaluator will manage these biases. Prejudice in appraisal can be based on other factors as well. For example, mild-mannered employees may be appraised more harshly because they do not seriously object to the results. This type of behavior is in sharp contrast to the more outspoken employee, who often confirms the adage: the squeaky wheel gets the grease.
Managers often control virtually every aspect of the appraisal process and are therefore in a position to manipulate the evaluation. For example, a supervisor may want to give a pay raise to a certain employee and will give the employee an undeserved high performance rating. Or the supervisor may want to get rid of an employee, and may give the individual an undeserved low rating. In either instance, the system is distorted, the performance appraisals are not valid, and the evaluations would not be defensible in court.
The evaluation process may also create anxiety for the appraised employee. Managers should be aware that this is a serious issue because opportunities for promotion, better work assignments, and increased compensation are at stake for the employee. This could cause not only apprehension, but also lack of full and honest participation.
The basic purpose of a performance appraisal system is to improve the performance of individuals, teams, and the entire organization. The system may also serve to assist in making administrative decisions concerning pay increases, promotions, or terminations. Although a perfect system does not exist, every system should possess certain characteristics and should honestly inform employees of how they stand with the organization.
Job-relatedness is the most basic criterion needed in employee performance appraisals. The Uniform Guidelines on Employee Selection Procedures and court decisions are clear on this point: Evaluation criteria should be determined through job analysis. Subjective factors, such as initiative, enthusiasm, loyalty, and cooperation may be important, but should NOT be used unless they can be shown to be job related.
Managers and subordinates must agree on performance expectations in advance of the appraisal period. How can employees be expected to function effectively if they do not know the standard against which their performance will be measured? If employees clearly understand the expectations, they can evaluate their own performance and make adjustments as they perform their jobs, without having to wait for a formal review.
Firms should use the same evaluation instrument and procedure for all employees in the same job category. Supervisors should also conduct appraisals covering similar periods for these employees. Having regular feedback sessions, documenting appraisal data, and standardizing the entire process makes it more effective and protects against possible legal action.
A common deficiency in appraisal systems is that the evaluators seldom receive training on how to conduct effective evaluations. Unless everyone evaluating performance receives training in the art of giving and receiving feedback, the process can lead to uncertainty and conflict. The training should be an ongoing process in order to ensure accuracy and consistency. It should cover how to rate employees and how to conduct appraisal interviews. Instructions should be rather detailed and the importance of making objective and unbiased ratings should be emphasized.
Most employees have a strong need to know how well they are performing. A good appraisal system provides highly desired feedback on a continuing basis. There should be few surprises in the performance review. However, in one survey, only 45 percent of individuals felt their managers consistently communicated their performance concerns throughout the year. Managers should handle daily performance problems as they occur and not allow them to pile up for six months or a year and then address them during the performance appraisal interview. When something new surfaces during the appraisal interview, the manager probably did not do a good enough job communicating with the employee throughout the appraisal period. Even though the interview presents an excellent opportunity for both parties to exchange ideas, it should never serve as a substitute for the day-to-day communication and coaching required by performance management.
In addition to the need for continuous communication between managers and their employees, a special time should be set for a formal discussion of an employee’s performance. Since improved performance is a common goal of appraisal systems, withholding appraisal results is absurd. Employees are severely handicapped in their developmental efforts if denied access to this information. A performance review allows them to detect any errors or omissions in the appraisal, or an employee may disagree with the evaluation and want to challenge it. Constant employee performance documentation is vitally important for accurate performance appraisals. Although the task can be tedious and boring for managers, maintaining a continuous record of observed and reported incidents is essential in building a useful appraisal.
Ensuring due process is vital. If the company does not have a formal grievance procedure, it should develop one to provide employees an opportunity to appeal appraisal results that they consider inaccurate or unfair. They must have a procedure for pursuing their grievances and having them addressed objectively.
Employee lawsuits may result from negative evaluations. Employees often win these cases, thanks in part to the firm’s own performance appraisal procedures. A review of court cases makes it clear that legally defensible performance appraisal systems should be in place. Perfect systems are not expected, and the law does not preclude supervisory discretion in the process. However, the courts normally require an absence of adverse impact on members of protected classes or validation of the process. It also expects a system that keeps one manager from directing or controlling a subordinate’s career. There should also be a system whereby the appraisal is reviewed and approved by someone or some group in the organization. Another requirement is that the evaluator must have personal knowledge of the employee’s job performance.
The appraisal interview is often the Achilles heel—or weakest point—of the entire evaluation process. To minimize the possibility of hard feelings, the face-to-face meeting and the written review must have performance improvement, not criticism, as their goal. We will now look at ways to make the appraisal interview more effective in the areas listed here.
Supervisors usually conduct a formal appraisal interview at the end of an employee’s appraisal period. It should be made clear to the employee as to what the meeting is about. Employees typically know when their interview should take place, and their anxiety tends to increase if their supervisor delays the meeting. Interviews with top performers are often pleasant experiences for all concerned. However, supervisors may be reluctant to meet face-to-face with poor performers. They tend to postpone these anxiety-provoking interviews.
Supervisors should always let employees know what is on the agenda well before meeting for the appraisal interview. Supervisors may be reluctant to meet face-to-face with poor performers, but these are often the employees who can benefit most from honest feedback and coaching on how to improve. The interview structure should facilitate this sort of open discussion and planning for future development.
There is tremendous value in separating the discussion on employee performance and development from the discussion about pay. Many managers have learned that as soon as the topic of pay emerges in an interview, it tends to dominate the conversation, with performance improvement taking a back seat. For this reason, it is advisable to defer the discussion on pay until several weeks after the appraisal interview.
Conducting an appraisal interview requires tact and patience on the part of the evaluator. Praise is appropriate when warranted, but should not be given if it is not deserved. If an employee must eventually be terminated because of poor performance, a manager’s false praise could bring into question the “real” reason for the employee’s termination.
Criticism, even when constructive, is almost always difficult to give. Effective managers can help minimize threats to an employee’s self-esteem by criticizing the specific behavior or action, and not the person.
About two weeks before the review, employees should go through their notes on all the projects on which they have worked during the review period. Providing a summary of how they added value or what they learned on these projects can help managers in developing a more objective and accurate appraisal.
Ideally, employees will leave the interview with positive feelings about management, the company, the job, and themselves. If the meeting results in a deflated ego, the prospects for improved performance will be bleak. Although you cannot change past behavior, future performance is another matter. The interview should end with specific and mutually agreed-upon plans for the employee’s development. Managers should assure employees who require additional training that it will be forthcoming and that they will have the full support of their supervisor. When management does its part in employee development, it is up to the individual to perform in an acceptable manner.
Performance appraisal is an area of human resource management that has special problems when translated into different countries cultural environments. The use of performance appraisal in the United States is relatively new compared to many older countries. Here, formal performance appraisal came into systematic use toward the beginning of the 20th century. However, performance appraisal in China has evolved over many centuries.
Chinese managers often have a different idea about what performance is than do Western managers, as Chinese companies tend to focus appraisals on different criteria. Chinese managers appear to define performance in terms of personal characteristics, such as loyalty and obedience, rather than outcome measurement. Chinese performance appraisals place great emphasis on moral characteristics. On the other hand, Western performance appraisal seeks to help achieve organizational objectives, and this is best obtained by concentrating on individual outcomes and behaviors that are related to the attainment of those objectives.