Performance Appraisal

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Measurement in organization is important to make people more achive at work

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Performance Appraisal

  1. 1. www.humanikaconsulting.com<br />Performance Appraisal<br />
  2. 2. Performance Appraisal<br />1. Introduction<br />2. Performance Appraisal<br />3. Designing Effective Performance Appraisal <br />3. Key Success Factors & Critical Element<br />
  3. 3. Introduction<br />HR Management <br /> The Mission of HRM<br />Attracting, managing and developing people in line with the competency and culture required by the organization in order to function synergistically with other organization’s resources as well as creating an atmosphere of productivity, satisfaction and loyalty<br />To support the achievement of organizational goals and to <br />improve the constructive and productive contribution of people<br />to the organization in an ethical and socially responsible way<br />
  4. 4. <ul><li>People Based Management
  5. 5. Proactive
  6. 6. Facilitator
  7. 7. Executive/Management Member
  8. 8. Transformational & Synergistic</li></ul>HR Paradigm<br /><ul><li>Personnel Administration
  9. 9. Reactive  Responsive
  10. 10. Controller
  11. 11. Management Tool
  12. 12. Transactional</li></li></ul><li>Old<br /><ul><li>Functional Orientation
  13. 13. Internal Focus
  14. 14. Reactive
  15. 15. Rule Maker
  16. 16. Policy Driven
  17. 17. Traditional approach
  18. 18. Distrust Orientation
  19. 19. Centralized decision making
  20. 20. One size fits all</li></ul>New<br /><ul><li>Business Orientation
  21. 21. Customer focus
  22. 22. Proactive
  23. 23. Consultant
  24. 24. Value Driven
  25. 25. Thinking “outside the box”
  26. 26. Partnering
  27. 27. Collocate decision making
  28. 28. Tailored programs</li></ul>HRM Concept<br />
  29. 29. Strategic HR Deliverables<br />Organization’s Strategy<br />Implementation Plan<br />Human Resource<br />Strategic HR Deliverables<br />Culture<br />Core Value<br />HR Enablers<br />Performance <br />Drivers<br /><ul><li>Entire system ( from selection to development & reward )
  30. 30. Guidance/handbook/SOP
  31. 31. HRIS
  32. 32. etc</li></ul>Capital<br />Competence<br />Strategic HR Development<br /><ul><li>Performance Appraisal
  33. 33. Competency HRM
  34. 34. etc</li></li></ul><li>Competency Based of HRM<br /><ul><li> Underlying characteristics of an individual that results in effective and or superior performance
  35. 35. A cluster of related Knowledge , Skills and Attitude
  36. 36. A system approach to Develop, Evaluate, Reward, and separate HR in relation to the achievement of strategic corporate goals </li></li></ul><li>Competency<br />Possession of required skill, knowledge and experience to meet current performance requirement in current job<br />Basic element of competency<br /><ul><li>Skillability to do something better , because he/she has the necessary experience from past learning
  37. 37. Knowledge useful information
  38. 38. Social role behavioral pattern in group/organization
  39. 39. Self image self concept ( existence, personality, values etc )
  40. 40. Trait basic characteristic showed in daily behaviour
  41. 41. Motive  driver in behaviour</li></li></ul><li>Performance Appraisal<br />Ultimate Goal<br />Maximizing contribution to achieve business objective<br />Purposes<br /><ul><li> Lead to optimum performance and optimize potential
  42. 42. Provide ongoing development cycle ( planning, coaching & counseling, and feedback )
  43. 43. Develop on going communication
  44. 44. Identify potential, development need, and near future advancement
  45. 45. Provide input for salary administration</li></li></ul><li>Characteristics<br /><ul><li>As a part of Performance Management System
  46. 46. Future oriented
  47. 47. Continuing process
  48. 48. Measurable and observables
  49. 49. Simple and easy implement
  50. 50. Open and constructive system
  51. 51. Empowering
  52. 52. Motivating
  53. 53. Development purpose
  54. 54. For all employee</li></li></ul><li>Objectives<br />1. Identifying & evaluating performance<br /><ul><li> List of accomplishment
  55. 55. Appraisal system
  56. 56. Feedback
  57. 57. Competency measurement
  58. 58. Observation</li></ul>2. Identifying competencies used to meet accomplishment<br />3. Analyzing strength and weaknesses in competencies for career path and development program<br />4. Deciding required competencies for future work assignment<br />5. To define or redefine future objectives<br />
  59. 59. Performance Appraisal Strategy <br />( EPR Continuum )<br />The Strategy<br /><ul><li>Appraisal System : </li></ul>Appraisal - PA Interview - PA Form<br /><ul><li>Inter Relation with other HRM : </li></ul>HR Planning - Learning&Development - Compensation&Benefit - Career&Planning<br /><ul><li>Not Merely for remuneration adjustment</li></li></ul><li>Requirement for effective Performance Appraisal System<br /><ul><li> Relevance : sesuai & tajam
  60. 60. Sensitivity : gradingnyajelas
  61. 61. Reliability : terukur
  62. 62. Practicality : aplikatif , dapatdipakai
  63. 63. Acceptability : diterima
  64. 64. Focus on future : development focus </li></li></ul><li>Performance Appraisal System<br />1.<br />Next Superior<br />Conventional<br /><ul><li> Employee Participates
  65. 65. Competency based
  66. 66. Accomplish based
  67. 67. Next leader involvement
  68. 68. Developmental </li></ul>Direct Superior<br />Appraise<br />Employee<br />
  69. 69. Performance Appraisal System<br />Direct Superior<br />2. 180<br />Appraise<br />Employee<br />Peers<br />Peers<br />Appraise<br />Appraise<br />Disadvantage<br /><ul><li>Peers often are insufficient as the only source
  70. 70. Not enough staff at the same level to provide quality feedback
  71. 71. Differences in experience, education, and work responsibility can create concern about abilities to provide high quality information</li></ul>Advantage<br /><ul><li>Reliable
  72. 72. Valid
  73. 73. Highly Credible</li></li></ul><li>Performance Appraisal System<br />Direct <br />Superior<br />3. 360<br />Other<br />Superior<br />Self<br />Appraise<br />Employee<br />Internal<br />cust.<br />External<br />cust.<br />Appraise<br />Appraise<br />Peers<br />Skip-level<br />report<br />Direct<br />report<br />Advantage<br /><ul><li>Higher Accuracy
  74. 74. Provide F/B from all direction ; internal & external customer</li></ul>Disadvantage<br /><ul><li>F/B providers avoid “saying what need to be heard”
  75. 75. Rater may inflate grades
  76. 76. System manipulation by user </li></li></ul><li> Design Effective Performance Appraisal<br />4 element to be appraised<br />1. Traits approach<br />Distinguishing Quality ( as inherited characteristic )<br />Examples :<br /><ul><li> initiative
  77. 77. effort
  78. 78. dependability
  79. 79. leadership
  80. 80. analytical
  81. 81. judgment
  82. 82. creativity
  83. 83. attitude
  84. 84. maturity
  85. 85. critical thinking
  86. 86. enthusiasm
  87. 87. versatile
  88. 88. self control
  89. 89. accuracy</li></li></ul><li>2.Task approach<br />Job, duty, assignment<br />Example :<br /><ul><li> knowing the job
  90. 90. handling people
  91. 91. Meeting deadlines
  92. 92. Following through</li></li></ul><li>3. Goals approach<br />The result desire in the job ( KPI )<br />Examples :<br />Goals<br />Measurement<br />Deadline<br /> By direct order received<br /> Dec 30,2002<br />Annual Sales Rp 10 million<br />By ability to respond <br />question in sales <br />presentation<br />Improve competitor knowledge<br /> June 30,2002<br />
  93. 93. 4.Job Behaviourapproach<br />Behaviour demonstrated in carrying out/ executing the assignment / job / duty<br />Example :<br /><ul><li> Complete project on time
  94. 94. Open to subordinates idea
  95. 95. Well liked by team members
  96. 96. Show patience in training new employees
  97. 97. Contributes innovative approaches to solve problem</li></li></ul><li>Process in Performance Appraisal<br />Appraisal system, policy & procedure<br />Performance<br />Agreement<br />Planning<br /> Review<br /> Final<br /> Review<br /> Report<br />Business<br />Objectives<br />Follow Up<br />Unit/Team<br />goals<br />Informal progress review<br />
  98. 98. Format Performance Appraisal<br />Accomplishment only<br /><ul><li> Employee rating based on a accomplishment only
  99. 99. Reward based on accomplishment and productivity</li></ul>Accomplishment plus Skill and Competency level<br /><ul><li> Employee rating and reward based on
  100. 100. accomplishment
  101. 101. skill and competency level
  102. 102. Motivation to self improvement
  103. 103. Continual learning </li></li></ul><li>Content in Performance <br />Appraisal<br /><ul><li> Key job Responsibility
  104. 104. Goal & Objectives
  105. 105. Achievement
  106. 106. Enablers
  107. 107. Development Plan
  108. 108. Direct superior’s comment
  109. 109. Member’s comment
  110. 110. Next superior’s comment</li></li></ul><li>Goal setting<br /><ul><li> Define the overall purpose of the job
  111. 111. Identify main tasks
  112. 112. Define what and why it has to be done</li></ul>Agree main tasks<br /><ul><li> Identify Key Result Areas from the list of main tasks
  113. 113. Quantified & Time base</li></ul>Set Target<br />Define Performance<br />Standards<br /><ul><li> Define in outcomes & quantified terms</li></ul>Select Projects<br /><ul><li> Specify required outcomes of the project, budget and time scale</li></li></ul><li>Performance Metrics<br />Tangible , example<br />1. Cost: Cost of rework serving<br />2. Time: Response Time, Cycle time, and delivery time<br />3. Quantity: Customers of employee served, claims processed<br />4. Error: Defect rate, Communication failured, Process error rate<br />5. Reaction: employee satisfaction, trainee responses, turnover reason<br />6. Productivity: Unit/employee, Unit cost/empl, Reject/empl<br />
  114. 114. Intangible , example<br />Dimension<br />1. Interpersonal skill<br /><ul><li> Communication
  115. 115. Negotiation
  116. 116. Empathy
  117. 117. Team Building</li></ul>2. Leadership<br /><ul><li> Motivating others
  118. 118. Decision Making
  119. 119. Counseling
  120. 120. Strategic orientation</li></ul>1 2 3 4 5<br />5 = Excellent<br />1 = Poor<br />
  121. 121. Linkage Business Objectives <br />with Individual Performance Plan<br />Corporate Objectives<br />Mission,Core Values,Strategic Plan<br />Performance <br />Management<br />System<br />Functional Objectives<br />Corporate objectives,Specific Mission,<br />Target & purpose of department<br />Participative<br />Goal<br />Setting<br />Team Objectives<br />Purpose of team<br />Individual Objectives<br />Job related, referring to the main activities<br />areas or key task which constitute<br />with individual job<br />
  122. 122. Key Success <br />Factors & Critical Element<br />Cultural <br />Aspects<br />Players<br />Key<br />Success<br />Factors<br />Communication<br />System<br />

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