Performance appraisal of senior executives in private

sektor

Experience from practice

Astana May 2014

Prof.h.c. Mag. Stefan HlawacekAustria

Why this intervention?

To share experience of consulting in SMEs

To present a design of an appraisal that has proved to be fit for senior executives

To stimulate a discussion with you

Prof. Mag. Stefan Hlawacek 2

The structure Introduction

My background in profession and academics

Basics My understanding and comments towards appraisal

systems

Just to remember why appraisals My Way Some management considerations

Prof. Mag. Stefan Hlawacek 3

My background in profession and academics

25 years in the institute of Economic Promotion Consultant – head of consultancy service - Director of head quarter of WiFi

Austria Wifi is part of the Economic Chamber Organization

Training 32 000 different courses 365 000 participants every year 25 000 consultancy cases per year Has organized 120 participations of Austrian Companies in international fairs.

Lecturer Institute Small Business Management and Entrepreneurship at the Vienna University of

Economics and Business Institute for controlling at the Alpe Adria University in Klagenfurt

Academic interest: strategy and organization in SMEs

Director business promotion programs in CEE countries at UEAPME

Prof. Mag. Stefan Hlawacek 4

Basics

Senior experts perform most uncertain, unstructured, but most important jobs

SEs need qualified feed back but the higher the rank the more infrequently an haphazardly it is done

In business strategy a vision has to be developed and communicated, goals implemented …..

Motivation of all levels of the staff has to be raised

Prof. Mag. Stefan Hlawacek 5

Basics

To keep strategy alive Recurrent systematic dealing

Many tools early warning system Special appraisal systems

Prof. Mag. Stefan Hlawacek 6

How to select who is suitable Mainly medium and large organizations Investor owned enterprises do it more likely Family owned do it only in middle and lower

ranks Culture has the most influence

Patriarchal and authoritarian system will just use scalar ratings

Prof. Mag. Stefan Hlawacek 7

Why appraisals Pinpointing and enforce or discontinue

specific behavior Job performance

Employee development and coaching tool Readiness for promotion Basis awarding or merit pay Communicate vision and strategy …..

Prof. Mag. Stefan Hlawacek 8

My way To keep strategy alive

One time effort permanent process

Early warning system appraisal system

Scalar system, Management appraisal

Prof. Mag. Stefan Hlawacek 9

Risks of traditional scalar ratings Halo effect Leniency / stringency Contrast effect Central tendency error First impression Reputation of the department Nobody can be good or better than the boss Don’t hurt anybody

Prof. Mag. Stefan Hlawacek 10

Start Information to CEOs / board of directors

What it can and what should not be expected Keep strategy alive At the beginning not employee comparison / layoff

selection and pay determination

Selection what hierarchical level will be included

What training is necessaryProf. Mag. Stefan Hlawacek 11

The dialog Early fixing time and date (1 -2 hours) Personal discussion Environment Personal situation Personal strengths - outcome, needed support

Prof. Mag. Stefan Hlawacek 12

Future of the organization View of the interview partner Overview re the global vision and strategies Break down to the very field of work of the

employee

Prof. Mag. Stefan Hlawacek 13

Expectations and obstacles Personal goals

Private Career

Facts that are in favor – how to use? Obstacles hindering the implementation of the

given strategies – how to overcome? Role of the superior

Prof. Mag. Stefan Hlawacek 14

Fix the targets Contributions to reach the goal – concrete

targets The employees part – the part of the supervisor What can be measured?

Personal development Financial Organization Leadership Market Technology ect.

Prof. Mag. Stefan Hlawacek 15

Contract Documentation of the whole conversation by the

ratee Signature of ratee and rater Document is kept confidential Basis for the next appraisal conversation Only the part with measurements or scalar

information may go to the personal department.

Prof. Mag. Stefan Hlawacek 16

Conclusion Clear instructions and training for the raters Raters familiarity with

Nature and importance of job duties of the ratee The actual performance of the ratee

Job related and understandable appraisal system

Precautions against improper bias Supervision statistics

Prof. Mag. Stefan Hlawacek 17

Practical considerations Appraisals to be done regular and in time Ensure that the written contract matches any

numerical appraisal Avoid arbitrary decisions

Prof. Mag. Stefan Hlawacek 18

My management considerations Appraisal system should help to support the

strategy implementation If selection for promotion is the the main issue scalar

systems will be favored by managers (easy, no discussion can be done even without the ratee)

Emphasis on communication, matching expectations and mutual goal setting

System of traditional and collaborative approach desirable

Motivation triggered Prof. Mag. Stefan Hlawacek 19

Prof. Mag. Stefan Hlawacek

Prof. Mag. Stefan Hlawacek

Prof. Mag. Stefan Hlawacek