Performance AppraisalTeam 9

Niina Saarinen

Helen Jiang

Miia Wahlroos

Laura Malin

Agenda

• What Performance Appraisal Is?

• Purposes

• Development of Appraisal Program

• Training of Appraisers

• Implementation

• Appraisal Interviews

• Conclusions

What Performance Appraisal Is?

• Evaluation of the employees

• Many different methods

• Not a punitive process

• Linked to company goals

Administrative Purposes

• Compensation

• HR functions: promotion, transfer, layoff

• HR planning

• “Paper trail”

• Influences employee behavior

=> improves organizational performance

Developmental Purposes

• Eliminate problems

• New goals

• Training needs

• Individual development – Feedback and discussions– Possibility to improve job performance, not only

evaluate past

Performance Standards

• Strategic relevance

• Criterion deficiency

• Criterion contamination

• Reliability

Development of the Program

• Organizational chart

• Cultural characteristics of BP-Centro

• General rating methods

• Sample items of appraisal form

Cultural Characteristics

• Appraisal - an unfamiliar concept– Traditionally only hard facts measured– Qualitative sides neglected

• Finns tend to be discrete – Avoid negative feedback– Seldom discuss personal traits

• Russians and Baltics are different from Finns

General Rating Methods

• Trait Approaches– Graphic rating-scales– Mixed-standard scales– Forced-choice forms – Essay method

• Results Methods– Management by objectives (MBO)

General Rating Methods cont.

• Behavioral Methods– Critical incident rating – Behavioral checklist– Behaviorally anchored rating scale (BARS)– Behavioral observation scales (BOS)

Sample Items • General skills

• Management/Leadership skills

Management Skills Actual Requested by position Comments 5 4 3 2 1 5 4 3 2 1 ________

-Planning ________-Organization ________-People development ________-Decision making ________-Control ________

Ranking A B C D E

Training of Appraisers

• Explain the objectives

• Define the standards

• Avoid misunderstanding

• Reduce biases

• Using the form– Scales and rankings– Comments serve as references for interview

Implementation

• CEO

• Country and functional mangers

• Regional, facility and assistant facility managers

CEO Appraisal

• Annually– Self-appraisal– HQ– Functional managers– Country managers

• Semi-annually– MBO

MBO

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

MBO Requirements

• Co-operation

• Objectives easily quantifiable

• The employees can control the process and outcome

• Consistent goals

• Review times specified

MBO Advantages

• Mutual goal setting

• Reward and promotion decisions

• Objectives defined

• Performance improved

• Co-operation improved

MBO Disadvantages

• Time consuming

• Costly

• Some goals difficult to measure

• Hard to get full commitment

Functional and Country Managers

• Annually– Self-appraisal – 360-degree appraisal

• Semi-annually– MBO

Regional, Facility and Assistant Facility Managers

• Annually– Self-appraisal

– 360-degree appraisal

360-Degree Method

• Appraisal by manager and/or supervisor

• Subordinates

• Peers (teams)

• Customers

360-Degree Advantages

• Comprehensive system

• Quality of information

• Lessens bias/prejudice

• Complements TQM

• Increases employee self-development

360-Degree Disadvantages

• Administratively complex

• Feedback can be intimidating

• Conflicting opinions

• Invalid evaluations

To Ensure Quality and Acceptance

• Assure anonymity

• Use statistical procedures

• Identify and quantity biases

• Make respondents accountable

• Prevent “gaming” of the system

=> Training

Appraisal Interview

• Training the interviewers

• Data analyzing– HR department

• Face to face conversations– Feedback– Training needs

Conclusion

• Highly related with compensation plan

• Successful appraisal program can eliminate the misunderstandings between employees

• It helps employee improve their future performance

• It guarantees the achievement of company’s goals.

Thank You for Your Attention!

Questions?