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Performance Appraisalwww.humanikaconsulting.com

1. Introduction2. Performance Appraisal3. Designing Effective Performance Appraisal 3. Key Success Factors & Critical ElementPerformance Appraisal

HR Management Attracting, managing and developing people in line with the competency and culture required by the organization in order to function synergistically with other organizations resources as well as creating an atmosphere of productivity, satisfaction and loyaltyTo support the achievement of organizational goals and to improve the constructive and productive contribution of peopleto the organization in an ethical and socially responsible wayIntroduction The Mission of HRM

Personnel AdministrationReactive ResponsiveControllerManagement ToolTransactionalPeople Based ManagementProactiveFacilitatorExecutive/Management MemberTransformational & SynergisticHR Paradigm

OldFunctional OrientationInternal FocusReactiveRule MakerPolicy DrivenTraditional approachDistrust OrientationCentralized decision makingOne size fits allNewBusiness OrientationCustomer focusProactiveConsultantValue DrivenThinking outside the boxPartneringCollocate decision makingTailored programsHRM Concept

Strategic HR Deliverables

CapitalCompetenceCultureCore ValuePerformance DriversStrategic HR DevelopmentPerformance AppraisalCompetency HRMetcOrganizations StrategyImplementation PlanStrategic HR DeliverablesHuman Resource

HR Enablers

Entire system ( from selection to development & reward )Guidance/handbook/SOPHRISetc

Competency Based of HRM Underlying characteristics of an individual that results in effective and or superior performance A cluster of related Knowledge , Skills and AttitudeA system approach to Develop, Evaluate, Reward, and separate HR in relation to the achievement of strategic corporate goals

Basic element of competency Skill ability to do something better , because he/she has the necessary experience from past learning Knowledge useful information Social role behavioral pattern in group/organization Self image self concept ( existence, personality, values etc ) Trait basic characteristic showed in daily behaviour Motive driver in behaviour CompetencyPossession of required skill, knowledge and experience to meet current performance requirement in current job

Performance AppraisalUltimate GoalMaximizing contribution to achieve business objective

Purposes Lead to optimum performance and optimize potential Provide ongoing development cycle ( planning, coaching & counseling, and feedback ) Develop on going communication Identify potential, development need, and near future advancement Provide input for salary administration

As a part of Performance Management System Future oriented Continuing process Measurable and observables Simple and easy implement Open and constructive system Empowering Motivating Development purpose For all employee

Characteristics

Objectives1. Identifying & evaluating performance List of accomplishment Appraisal system Feedback Competency measurement Observation2. Identifying competencies used to meet accomplishment3. Analyzing strength and weaknesses in competencies for career path and development program4. Deciding required competencies for future work assignment5. To define or redefine future objectives

Performance Appraisal Strategy ( EPR Continuum )The Strategy Appraisal System : Appraisal - PA Interview - PA Form Inter Relation with other HRM : HR Planning - Learning&Development - Compensation&Benefit - Career&Planning Not Merely for remuneration adjustment

Relevance : sesuai & tajam Sensitivity : gradingnya jelas Reliability : terukur Practicality : aplikatif , dapat dipakai Acceptability : diterima Focus on future : development focus Requirement for effective Performance Appraisal System

Performance Appraisal SystemNext SuperiorDirect SuperiorEmployee

AppraiseConventional Employee Participates Competency based Accomplish based Next leader involvement Developmental 1.

Performance Appraisal SystemDirect SuperiorEmployeeAppraisePeersPeers

AppraiseAppraiseAdvantage Reliable Valid Highly CredibleDisadvantage Peers often are insufficient as the only source Not enough staff at the same level to provide quality feedback Differences in experience, education, and work responsibility can create concern about abilities to provide high quality information2. 180

Performance Appraisal SystemDirect SuperiorEmployeeAppraiseInternalcust.Externalcust.AppraiseAppraise3. 360OtherSuperiorSkip-levelreportDirectreportPeersSelf

Advantage Higher Accuracy Provide F/B from all direction ; internal & external customerDisadvantage F/B providers avoid saying what need to be heard Rater may inflate grades System manipulation by user

4 element to be appraised Design Effective Performance Appraisal1. Traits approachDistinguishing Quality ( as inherited characteristic )Examples : initiative effort dependability leadership analyticaljudgment creativity attitudematurity critical thinking enthusiasm versatile self control accuracy

2. Task approachJob, duty, assignmentExample : knowing the job handling people Meeting deadlines Following through

3. Goals approachThe result desire in the job ( KPI )Examples :

GoalsAnnual Sales Rp 10 million By direct order receivedMeasurementDeadline Dec 30,2002

Improve competitor knowledgeBy ability to respond question in sales presentation June 30,2002

4. Job Behaviour approachBehaviour demonstrated in carrying out/ executing the assignment / job / dutyExample : Complete project on time Open to subordinates idea Well liked by team members Show patience in training new employees Contributes innovative approaches to solve problem

PerformanceAgreementPlanning ReviewProcess in Performance Appraisal Final Review ReportAppraisal system, policy & procedureInformal progress reviewFollow UpBusinessObjectivesUnit/Teamgoals

Format Performance AppraisalAccomplishment only Employee rating based on a accomplishment only Reward based on accomplishment and productivityAccomplishment plus Skill and Competency level Employee rating and reward based on accomplishment skill and competency level Motivation to self improvement Continual learning

Content in Performance Appraisal Key job Responsibility Goal & Objectives Achievement Enablers Development Plan Direct superiors comment Members comment Next superiors comment

Set TargetAgree main tasksDefine PerformanceStandardsSelect Projects

Define the overall purpose of the job Identify main tasks Define what and why it has to be done Identify Key Result Areas from the list of main tasks Quantified & Time base Define in outcomes & quantified terms Specify required outcomes of the project, budget and time scale Goal setting

Performance MetricsTangible , example1. Cost: Cost of rework serving2. Time: Response Time, Cycle time, and delivery time3. Quantity: Customers of employee served, claims processed4. Error: Defect rate, Communication failured, Process error rate5. Reaction: employee satisfaction, trainee responses, turnover reason6. Productivity: Unit/employee, Unit cost/empl, Reject/empl

1 2 3 4 5

5 = Excellent

1 = PoorIntangible , exampleDimension1. Interpersonal skill Communication Negotiation Empathy Team Building2. Leadership Motivating others Decision Making Counseling Strategic orientation

Linkage Business Objectives with Individual Performance PlanCorporate ObjectivesMission,Core Values,Strategic PlanFunctional ObjectivesCorporate objectives,Specific Mission,Target & purpose of departmentTeam ObjectivesPurpose of teamIndividual ObjectivesJob related, referring to the main activitiesareas or key task which constitutewith individual jobPerformance ManagementSystemParticipativeGoalSetting

Key Success Factors & Critical ElementKeySuccessFactorsCommunicationCultural AspectsSystemPlayers