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“Performance management is an ongoing process throughout the year. It’s not just about performance appraisal, in fact, performance appraisal is only a small part of it. Performance management is about preventing and solving problems.”

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Performance appraisal is an attempt to assess an employee’s performance. The assessment may be taken into account in determining wage or salary increases. Claims are made that some schemes are objective, but most of them are bases on ‘subjective opinion’. Some schemes involve the employee in making an assessment. Employees know they are being evaluated and they are told the criteria that will be used in the course of the appraisal. Nothing is kept secret. The appraiser and the appraisee should carry out this task jointly in a cordial atmosphere stressing on the plus points and finding out ways and means of overcoming drawbacks, if any, of the appraisee.

Appraisal has three purposes: To help improve performance by identifying strengths and weaknesses and by getting things done which will develop the former and overcome the latter.

To identify those with potential for greater responsibility, now or in the future, and to provide guidance on what should be done to ensure that this potential is realized.

To assist in deciding on pay increases which fairly equate the level of reward with the level of performance. Performance appraisal is …….or should be, a continuous process, but it is necessary from time to time to carry out a stock-taking exercise which reviews performance and progress over a period of time, so that a more comprehensive story can be built up to from the basis for considered action. The starting point is the performance review, which posses three questions. 1. What has actually been achieved during the period against what was expected to be achieved ? 2. What are the factors that influenced the level of achievement ? These could relate to the personal efforts or abilities of the individuals concerned, or to external factors beyond his direct control. 3. What needs to be done to improve performance ?

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why. it is necessary to understand clearly the objectives of the performance appraisal.e. what kind of training is required to improve his performance. where.The performance review leads to the potential review. Therefore. While doing the performance appraisal. It induces supervisors and department heads to think more seriously and objectively about the performance of their employees. which should answer two questions. Employee performance appraisal indicates whether the present job makes full use of an employee’s abilities and if any change is desirable in his duties. It gives evidence of management’s interest in the individual employee. What potential has this individual to advance beyond his present level of responsibility ? 2. What needs to be done to ensure that he fulfils his potential by the company. While doing the performance appraisal. training. his manager and himself ? COMPONENTS OF PERFORMANCE APPRAISAL There are a number of reasons for performance appraisal of employees such as counseling. when. i. promotion etc. promotion. It gives an opportunity to an employee to know his plus and minus points and to improve his performance. training. the department and the employee. Page 4 of 76 . ADVANTAGES OF EMPLOYEE PERFORMANCE APPRAISAL The principal advantages of employee performance appraisal are : It provides a regularly scheduled uniform system of reviewing the employee’s performance and an opportunity for exchanging views about each other.: 1. the appraiser should address the question in respect of the five Ws. what. or a combination of them. who. Viz. as also the how of performance appraisal. It provides and objective basis for many types of personnel decisions including pay increase..

have faith in its effectiveness and carry out their part conscientiously. training. It is important that the employee performance appraisal system has to active support of the top executive who make the final decisions on promotion. The original rating is made by the employee’s immediate supervisor. A well designed from is of great help in securing accuracy and uniformity in doing the appraisal. it is only accepted and acted upon if it is felt to be fair – and it will only be considered fair if the individual fully accepts that he has not achieved standards which had previously been agreed by him as reasonable and attainable. If the system is too complex or too time-consuming. It is unreasonable to criticized. The aim is to get agreement between the boss and his subordinate on what the latter has achieved and what he needs to do to improve his performance. Page 5 of 76 . with objectively observed facts rather than subjective opinions. It must identify persons of proven competence and leadership. An appraisal from that has been thoughtfully and skillfully designed should be used. as far as possible. transfer. it may be non-starter and ultimately be rejected by those who are to use it. An important part of any employee’s performance appraisal plan is the statement of standards of performance standards will enable both the employee and the rather to have some basis for judgment as to how satisfactory the employee’s performance has been. It must have the support of all the line managers who administer it. etc. Such agreement is more likely to occur if the discussion is based on comparing agreed results with agreed targets or standards of performance. It must be easily understandable. no amount of care and intelligence elsewhere will be able to save the programme. If this rating is made carelessly.THE APPRAISAL PROCESS The appraisal process should deal. otherwise they will not take interest in its operation. REQUISITES OF A GOOD APPRAISAL SYSTEM The following are the requirements of a good employee performance appraisal system: The most important condition for the success of any rating system is that the supervisors fully understand the plan. These standards should be stated in writing and in as specific terms as possible. increment.

Complete privacy and freedom from telephone and other interruptions should be ensured. If properly handled appraisals can provide a wide variety of information. GUIDELINES FOR EFFECTIVE APPRAISAL What you get from an appraisal depends on what you put into it. The best method of continuous appraisal is the encouraging of greater cooperation between management and individual employees. it is a must to establish rapport before commencing the employee performance appraisal interview. so that the employee may be mentally prepared. encouraging initiative and setting new goals. If people like to be told how they are doing. As much notice as possible should be given to the employee regarding the performance appraisal interview. This may vary according to circumstances and the persons taking part in it. Just allocate extra time for studying the work of individuals. and that keep the convergence of the person and the job firmly insight. help you set largest and reveal problem areas hitherto unsuspected. APPRAISAL SHOULD HAVE CONTINUOUS PROCESS Generally. you should let them know constantly. because the line managers are primarily concerned with subordinate and his job. they may feel emboldened to comment constructively on your own behaviour and approach. Adequate time should be allowed for the performance appraisal interview. Page 6 of 76 . once a year is not enough. performance appraisals are made annually. and sorting out problems.There should be very close collaboration between line managers and the HR manager. As a rule the questions you ask should be those that lead to the most detailed discussion. discussing it with them. Too much will have happened between appraisals to them to be adequate reflections of work done. However. and the human resource manager focuses on the man and his career. Finally. There is no need to set up elaborate procedures for continuous assessment. and what their prospects are. Once the staff becomes used to a flow of reaction and response.

Staff are encouraged to examine their own work more closely. Page 7 of 76 . A halt is put to lingering. Personal conflicts are identified / resolved. Information is provided for salary and promotion reviews. Job descriptions are scrutinized and updated.INPUT – (Questions to ask) What do you think you are particularly good at ? What are you weakest points ? What are the most difficult problems you have had to face in the past six months ? Who (confidentially) do you find it difficult to work with ? Are there any parts of he office procedure you consider to be in need of a radical overhaul ? Which parts of your job interests you most ? How do you see your future within the company ? How do you see your future in the department ? Is there anything / anyone you need in order to develop your job and become more effective ? Why did the project under your care fail to deliver on time / run massively over budget ? Where is the weak point in your communication chain ? Is there anything in your job description that has become redundant or you would wish to change ? Are you happy ? OUTPUT Executives’ progress over the fast six months / year is reviewed. Feeling of motivation are refreshed. agreed between appraiser and apprised are set. Ambitious new targets. unresolved problems.

where they ought to be going to get there. you most decide on the results that you as a manager expect to see and these goals must be agreed on. The manager dispensing wisdom. Finish by setting a date by which certain results should be evident.ADVANTAGES OF PERFORMANCE MANAGEMENT Performance Management ensures that managers and their subordinates are aware of what needs to be done to improve performance. Page 8 of 76 . It can be linked to performance related pay where the rewards are clearly dependent on the results achieved. Its provides feedback so that people know where they stand. An appraisal must be worked through together by appraiser and appraised. DISADVANTAGE OF APPRAISAL Appraisals are a waste of time and effort unless some form of counseling results from them. Before you can really discuss and evaluate performance. The employee telling the manager how he / she is doing followed by 2. It is always advisable to have something definable and / or measurable to appraise. Appraisals should end in mutual agreement. An appraisal should not be thought of as 1.

They focus on required forms rather than communication. They try to avoid it or they try to cut corners or they simply mess up. and allowing coordination of each employee’s work with the goals of the unit and the organization. What barriers hinder performance and how they can be minimized or eliminated. that involves establishing clear expectations and understanding about the following: • • • • • The employee’s essential job functions How the employee’s job contributes to the goals of the organization What it means. In fact. Performance management is an ongoing communication process. in concrete terms. They focus on appraisal rather than planning.MANAGING PEERFORMANCE Why should you care about managing the performance of your employees? Because communication between manager and employees is essential for increasing productivity. very simple and . They focus on a one-way flow of words (manager to employee) rather than dialogue. to do the job well How job performance will be measured. in some ways. So they waste time and effort and just don’t get out of performance management the benefits that it can provide – if done properly. they’re focusing on the wrong things. their time and efforts often oly make the situation worse. Many managers dislike performance management. It consists of lots of parts and requires some skills.” Page 9 of 76 . They focus on the past rather than the present and the future. How the employee and the supervisor will work together to improve the employee’s performance. in other ways. It’s often because they don’t understand performance management. But if you approach it with the proper mindset. They focus on blaming rather than solving problems. So. • “Performance management is. undertaken in partnership between an employee and his or her immediate supervisor. you can make it work – and pay great benefits. improving morale and motivation. very complex.

on their own. what is it? It’s a broad set of tools used for the purpose of optimizing the success of each employee. can improve performance only a little bit. It’s not for attacking the personality and attitudes of employees. If these goals are to be achieved. and the purposes associated with performance management. This means you must be looking forward. cajole. when you and each employee realize you are on the same side and work together. For example. Accept the fact that. the roles of manager and employee. managers who believe their role is to tell staff what to do rather than work with them to solve problems don’t fare well with performance management. but also for your work unit. These aren’t based on theories. Performance management isn’t a way to threaten. Commit to the idea that your job is to build success in the preset and future and not to manage by looking at the past (managing by looking in the rearview mirror). And managers who refuse to take on the role of helping everyone succeed quite simply don’t get success. It isn’t a method to blame or find fault in employees. or intimidate employees into being more productive. not only for each employee. and the organization. not just evaluating performance. then you can improve performance by huge amounts. the manager. Page 10 of 76 . you can improve performance only a little bit. However. but on observations of what works and doesn’t work in real work places. on your own. each work unit. Employees. the manager must adopt a modern mindset.MODERNIZE YOUR THINKING One of the challenges of making performance management and appraisal work involves leaving behind older ideas of how work gets done. There are two things to understand-what performance management should be and what performance management should not be. So. Managers who believe performance appraisal is the venue for bashing employees over the head don’t do well. Understand that the benefits you can achieve through performance management will come only when you complete all the steps.

Share responsibility: The responsibility for productivity lies with you and the employee. skills. They are closest to the action. You need information to move things along. it means that if you invest the time and effort. They do the work every day. The employee needs information. effort. you will save time. Often they know better than you how to fix things. For responsibility to be shared. there needs to be two-way communication between manager and employee. that means you need to do the work. and costs.” Page 11 of 76 . and experience of employees.Here are three other suggestions: Invest: Performance management requires an investment on your part. Seek out employee wisdom: Performance management is a good way to harness the knowledge. “Employees need to play an active role in defining and redefining their jobs. Yes. Most important.

The bottom line is that performance management can improve productivity. The need to discipline is reduced as a result. many don’t understand the benefits for the employee. Performance management takes an upfront investment to achieve certain very practical aims. and the organization. If an employee files a complaint. You’ll recoup your investment. Page 12 of 76 . Besides being the tool for improving productivity. Performance management. As a result.if you commit to the entire process. Most of us haven’t had a chance to participate in performance management done properly. Solid performance management documentation can even deter frivolous lawsuits and complaints. For example. properly done.IDENTIFY THE BENEFITS It’s not surprising that managers tend to skip the performance management process. performance management also protects you in situations where you fire an employee or have to make other difficult decisions about employees. Performance management can be valuable-provided you understand what it can do for you. It can reduce the amount of “supervision” you need to provide by clarifying for employees what they need to do and why they need to do it. allows you to identify problems when they occur so you can fix them early. Performance management involves documenting problems and communicating those problems to employees. your documentation will show that your decisions were based on performance issues and that the employee knew about those issues and had a chance to address them. performance management can be used to make sure each employee’s work contributes to the work unit’s goals. the manager.

that’s when you get the payoff. diagnose problems. communication during the year. Plan performance. Be patient about results: You will see some benefits from the performance management process very quickly after starting. Do all the steps: Performance appraisals alone don’t improve performance.Here are three ways to focus on the benefits you want: Keep the goal in sight: Before any step into the performance management process. it gives them a degree of empowerment – the ability to make day-today decisions. Performance planning. and review performance. remind yourself that your goal is to improve performance and help everyone succeed. “Since performance management helps employees understand what they should be doing and why.” Page 13 of 76 . by itself. Focus on that and you will start seeing benefits quickly. When you do all the steps of performance management. The full benefits won’t be obvious until you’ve been through the entire one-year cycle at least once or twice. should help reduce wasted effort and the need to closely supervise your staff.

If you successfully complete all of the other steps. the review meeting is simply a fast formality. To improve performance and create a more enjoyable workplace. there’s the performance appraisal meeting. present and future). Proper documentation (done during all stages of the process) makes performance discussions easier. do all the steps. If you just evaluate. Part of the overall performance management process involves observing and collecting data so you and the employee know how things are going. Documenting is the process of recording significant discussions and events related to an employee’s performance. not more. since you and the employee don’t have to rely solely on memory. Diagnosis and problem-solving refer to how you and the employee identify barriers to performance (past. you need to manage performance. which yields a summary / review of the year. is it surprising that nobody looks forward to the process? Performance evaluation is just a small part of performance management-and probably the least important part. So. Managing involves making the right decisions. Finally. believing they are one and the same. This critical step involves making sure both you and the employees understand what he or she must do in the next year to contribute to the overall goals of your work unit. Documentation may involve complex forms or it may be as simple as jotting down some notes.MANAGE PERFORMANCE a major misconception about performance management. What do you need to make those decisions? Data and information. When employees and managers believe that performance management consists of one annual meeting where the manager evaluates performance for the purposes of punishing employees who don’t make the grade. That helps you identify and solve problems early before they result in significant costs. Many people confuse performance appraisal and performance management. so you can formulate plans to overcome those barriers. chances are you’ll end up with less productivity. since everything would have been discussed during the year. Both of you should be clear about how the employee needs to do the job. That’s why the actual performance appraisal meeting is the least important part of performance management. Make sure you communicate about performance all year round. Start out by planning performance. There’s Page 14 of 76 . not just evaluate it.

too: Performance management isn’t just about what the employee does. what you can do.” Page 15 of 76 . The employee gets and gives information to you.Here are three important things to do: Ensure that employees know the difference: Employees need to understand these steps. Make it about you. Explain how the process will benefit them. Explain the point of each part. it’s just not going to work. You get and give information to the employee. Explain what will happen. “If you believe that performance appraisal is performance management. It’s about identifying your role in improving performance. Make it two-way: Remember that performance management involves an exchange of information. Talk about and decide how you can help. That’s how you improve performance.

and problem solving. particularly experienced ones. you improve performance. but it will tell employees that you value their knowledge and insight. You do not have to agree with input from your employees and you’re certainly not bound to act on it. at the end of the year.WORK WITH EMPLOYEES You have a pretty good idea about what your employees are doing and need to be doing. right? Since that’s the case. as experts in their jobs until they demonstrate a lack of expertise. But there’s a problem: this approach doesn’t work very well. Involve employees as equal contributors in the performance management process. Guard against the tendency to rely on just your perspective. tell them how well they’ve done. you could simply tell your employees what they need to do and then. particularly during performance planning. Treat employees. Employees have another perspective. That’s essential if employees are to become active and enthusiastic participants in performance management. Managers are often just too removed from the details of the job to have a good grasp of the source of work problems. They complement each other and you need both. A fair number of managers do just that. but you should not dismiss it out of hand. They feel they know best about the work that needs to be done. particularly when the goal is to identify why performance has been below expectations or how performance can be improved. Page 16 of 76 . performance reviews. Managers have one perspective about the work. Not only will this make the best use of available information. When you and your employees combine your knowledge. Involvement also builds a sense of ownership and responsibility. Here’s why.

Listen. valuable. When necessary. and informed partners in performance management. confrontation is inevitable. commit to action to help improve performance-and then follow through on your commitment. Once their contributions are on the table. “If managers look at performance management as something they do to employees.” Page 17 of 76 . It allows them to be active. Listen firstand then make sure the employee knows you’re listening. and ideas by asking questions.Here are three components to create a collaborative situation: Give employees the information they need: Make sure employees have enough information about the goals and challenges your work unit faces. That helps them connect their own goals and work to those of the work unit. they reduce confrontation. and act: Don’ t ask for participation and then ignore what the employee says. information. respond. present yours. Use more questions than statements: Encourage staff to share knowledge. Questions about goals and objectives and questions that encourage selfevaluation are particularly valuable. If they view it as a partnership. rather than telling. Then respond with your own understanding and perspective.

Understanding the work-unit goals also makes it easier for employees to make decisions that take into account those goals. It’s best described as a cascading process. The reasoning is simple. Not only do employees have to do things well.ALIGN EMPLOYEE GOALS The entire performance management process ends up as wasted effort if the employee’s goals and job responsibilities are not directly linked to the goals and mission of the work unit. but they also have to be doing the right things. Ideally your company should be doing some strategic and tactical planning so that the company has some clear targets. The logic goes like this: if every employee achieves his or her goals. and organization. so that each work unit ends up with a clear set of goals it must achieve. they’re more likely to be more motivated and get more satisfaction out of doing their jobs. Those work-unit goals are used during the performance planning phase to determine the goals and objectives of each employee. the work unit achieves the goals assigned to it. It helps employees put their jobs in an overall context. this process has another benefit. Those clear targets are distributed among the individual work units. It’s your job to ensure that the employee’s work contributes to the achievement of organizational goals. Page 18 of 76 . which in turn helps the organization hit overall targets. How do you align employee goals with the goals of the organization? The main mechanism for doing this is the performance planning process. department. Here’s how it should work. When they know how their jobs fit into the big picture. Apart from optimizing overall performance.

Then review what the work-unit MUST ACHIEVE.” Page 19 of 76 . Then discuss what the employee can do. don’t forget to highlight individual accomplishments and how they’ve contributed to the larger goals. “Regardless of what the rest of the company does. Reinforce during reviews: At the end of the cycle (performance appraisal). many managers find it useful to set aside one day a year to meet with staff and identify what the unit needs to accomplish in the coming year. Don’t be discouraged if the organization doesn’t plan. Get significant employee input on how he or she can continue. Tweak the timing: Aligning goals this way means that organizational and work-unit planning need to happen before individual performance planning. since you can make best guesses.Here are three ways to align employee goals: Begin with the big picture: Start the performance planning process by reviewing where the organization is going. Consider altering your performance management cycle so it aligns with the overall work-unit planning cycle. Employees who understand how they’re contributing tend to feel more ownership and pride. Reinforce the links.

Don’t make the mistake of assuming that incentives need to be of huge value. Huge bonuses are not as cost-effective as moderate ones. large financial bonuses can improve performance. Incentives are a bit different from rewards. Incentives reward superior performance. When planning incentives. Page 20 of 76 . Salary pays for “normal performance”. Access to training. In fact. small pay raises. huge bonuses can have a negative effect if not implemented properly. but so can small bonuses or other kinds of benefits. determining whether goals have been achieved is part of performance appraisal. There are two critical times with respect to incentives-setting up incentives and determining of the criteria have been met. incentives are worthless. but these three simple aspects are very powerful. consideration for promotion. If you use criteria the employee cannot possibly reach. Setting up incentives is part of performance planning. An incentive is something that is specified in advance. Whatever criteria you negotiate. make sure that the employee can reach them if he or she works hard and exceeds normal expectations about performance. For an incentive to motivate an employee. or even a nice dinner can serve as low-cost incentives. the employee must know about it in advance. The specification of incentives should be part of the performance planning process. There are other factors involved in motivating employees. and c) know what they will receive when they achieve those goals. A reward is received after the fact.SET PERFORMANCE INCENIVES We know people work best when they a) have clear goals. b) believe they can achieve those goals. negotiate with each employee. Yes. since they can pit employee versus employee in the pursuit of significant financial gain.

” Individualize incentives: Incentives works only when the employee wants the benefit offered. The employee benefits from hitting his or her targets. If employees can choose their specific rewards. Make sure you and the employee understand the criteria in the same way.” Page 21 of 76 . Specify clear goals that can be measured. Be prepared to negotiate incentives on an individual basis. Don’t link incentives to vague ratings scales. those choices are more powerful motivators.Here are some more tips: Use group and individual criteria: If you can. Trying incentives to workunit success can improve a sense that “we’re in this together. or get that promotion. The employee also benefits if the work unit or company hits targets. Avoid vague criteria: Using vague criteria linked to incentives is a recipe for disaster. “Think of your job as helping each employee hit that target. link incentives to both individual success and work-unit or company success. make that extra money.

barriers to performance. First.FOCUS ON COMMUNICATION Forms don’t improve performance. What do you do if you are forced to use a form that is too general and vague and doesn’t require recording information needed to improve performance? Complete the form if you are required to do so-but augment it in two ways. What is important is that you and the employee have a meaningful dialogue about past performance and what can be done to improve performance in the future (regardless of current levels). Include what you can do to help. In fact. you can document (write down) the important aspects of that discussion and append them to the form. People working together improve performance. don’t even bring out the form until the end of the meeting. Record any strategies or plans to improve. That’s a point that’s often lost in the minds of both managers and human resource staff who supply evaluation forms for use by managers. past performance. Talk about the job. You want to succeed in improving performance in spite of being forced to use a horrible tool. During appraisals. don’t limit your discussion to the form and its items. filling out the form is the least important part of the process. Page 22 of 76 . Ask how you can help improve performance. Second. The truth is that most appraisal forms are so bad they make employees resentful and are far too general to achieve the goals and generate the benefits of performance management. and ways to overcome those barriers.

See if you can convince decision-makers to allow you to use a more flexible approach. the actual format of the reporting system becomes less important. Lobby for better tools: Some appraisal forms are so bad that completing them will inevitably end up insulting employees. Use the form t summarize discussions and add notes to the form as necessary. not tyrannize: When given a form. people tend to fill it out and provide only what it asks for. Even if you have to use poor forms. “When you focus on performance management as a way of communicating and building relationships. As a result. Focus on communication: Performance management is about communication. or force you to rate a certain percentage of staff as below average.Keep the following in mind: Use forms to summarize. you can overcome the negative effects by being open and honest and working with employees to improve performance. rather than behaviors and results. the form controls the review process. Dialogue is the key.” Page 23 of 76 . This happens if the forms ask for evaluations about attitudes and personality. when you and the employee should be guiding the process.

make the users of the technology wiser or smarter or improve their judgment and thinking abilities. Computers are great for recording large amounts of information and automating certain kinds of repetitive tasks. people tend to do only what computer programs ask of them. Various computer . the resulting automating system will be only as good as the thinking that went into creating it. And we know that these things are the essentials that make performance management work.MAKE IT FACE TO FACE For years.based systems have been developed to make the process faster. And that’s not enough to improve performance. Keep in mind that allows us to do things faster. When systems are automated. Use the technology. As with forms. Never allow any computer program to result in less interaction between you and your employees. They do not however. we get to the wrong place more quickly. managers focusing too much on the forms have destroyed performance management. If we do the wrong things. Use technology for storing relevant information and data and for summarizing discussions you have directly with employees. but keep in mind the pay off comes from good face. Now we have a new wrinkle-the use of technology for performance management. Page 24 of 76 . but do them faster. One system allows you to “phone in “your employee ratings using a touchtone phone! Here’s the problem. Use a performance management computer program and people will do only what it requires. That’s not always a good thing.toface communication.

That doesn’t mean it’s going to get you where you want to go. The software can be tweaked. Does it make sense to be told what to do by a machine? No. Watch for poor setup: Performance management software usually needs to be customized to be useful. Fight the novelty: Don’t be seduced by the novelty of these systems. That customization is often done by information technology or human resource departments. particularly if it’s used without proper thought and care.Here are a few tips for harnessing technology: Avoid technology tyranny: Don’t restrict yourself to filling in online forms or doing only what’s asked. It may be “cool” to sit by yourself and do performance appraisals on a computer. Be alert to potential problems with your appraisal system.” Page 25 of 76 . Their needs are different from yours. so provide feedback to improve it. “Any method can have undesirable side effects.

never begin discussing a topic with the rating. When these numbers / ratings are used to make personnel decisions. I Page 26 of 76 . the rater is asked to assign a number (usually one to five) that best describes the employee’s performance on that item. for “being on time. How does it help an employee to know that he or she is a “two”? It doesn’t.AVOID RATING PERILS f you’re using a rating form in your performance appraisals. Variations include replacing numbers with evaluative phrases (e. the subjectivity involved creates a huge conflict point. Can you minimize these and other problems associated with ratings? Yes. For example.” discuss instances where the employee has been on time or not. it’s best to be aware of their limitations and do your best to reduce their negative aspects.g.g. using any data you have. In fact. In a performance appraisal..” “exhibits leadership ability”). Ratings are not usually tied to specific behaviours. but they aren’t. Only once you and the employee have done that should you choose a rating. Often the exact same form is used to evaluate employees across a wide range of jobs. For each descriptor.. a rating doesn’t give the employee enough specific information to improve. The items tend to be quite general. it’s likely to insult the employee.” “excellent”) or combining the two. Discuss the performance first. “poor. so the ratings are exceedingly subjective. Typically. Identify the causes of any late arrivals. The numbers may make things seem objective (we’re suckers for numbers). then negotiate a rating. since nobody believes he or she is a two on a five-point scale. Because the items are so general. Once that’s done. “completes tasks on time. a rating system has some sort of verbal descriptor (e. That’s the first problem.

Explain that you realize ratings are a very vague way of evaluating. Negotiate ratings: Since ratings have very little objective meaning. Arguing over small differences creates bad feelings that affect future performance. Don’t sum ratings: Adding up the ratings to obtain a total overall rating of performance is meaningless. For a number of reasons-some simple. negotiate the final rating for each item. some statistical-adding up the items is unfair and inaccurate. They still need to hear that you understand the limitations. don’t just tell your rating. Don’t get picky. Discuss your idea of its meaning and ask the employee about how he or she understands it.Here are three ways to minimize rating problems: Be open about limitations: Employees understand the limitations of rating. “Always clarify the meaning of each rating item before doing the rating. It’s like adding up the numbers on football jerseys to determine which team is better. Whether an employee gets a “three” or a “four” is not very important. Treat them as fallible-and let the employee know that’s your stance.” Page 27 of 76 . Don’t do it.

Ranking creates a win-lose situation among employees. all the way down to the worst. then next best. There can be only one “best performer”. Page 28 of 76 . Ranking then becomes a problem. unless there is simply no need for employees to work together. it’s almost always misused and it should be eliminated. You’d think it would be possible to look at 10 employees doing the same job and determine which is the best. he or she can either become more productive … or work to bring down the performance of everyone else. Finally. and one “worst performer”. You do not want to create that kind of unpleasant competition.DON’T RANK EMPLOYEES Ranking employees as a measure of their productivity is not common. the chances are the people you hired to replace them would be worse. to contribute in other ways to the success of the company. and so on. But what about the agent who interferes with other agents through cutthroat practices? May be you expect the agent to do more than sell. everyone should be performing well… even the worst in your rankings. So. That’s a bit counterintuitive. Where employees are expected to create one or two very specific results and they can be measured accurately. A real estate agent could be evaluated in terms of a very few criterianumber of sales. dollar value. ratings can be used. using ranking to make decisions about which employees keep their jobs is bad business. number of new clients secured. If you hire the right people. But you can’t do this meaningfully and you can’t eliminate ranking perils. Where ranking is used. only one “second best”. If that’s all you care about. Is ranking ever appropriate? Yes. If you were to replace the bottom 20% each year. ranking can work. for an employee to be the best.

It rarely succeeds. may lower future performance. Ranking ties your hands and your ability to make managerial decisions.There’s no way to eliminate the problems with ranking systems. consider trying to get the requirement changed. but here are three things to keep in mind: Understand the faults: Ranking shows only relative contributions. Lobby for change: If you’re required to use ranking. at best. Augment: If you must use rankings. Companies that appeal to succeed using employee ranking are succeeding for reasons completely unrelated to rankings. “In the short run. augment them with elements that make performance management work. Communicate all year long and problem-solve. Help everyone succeed. A low rank. ranking systems can encourage some people to work harder…But they can also encourage people to passively or actively interfere with the work of others. when a person is performing well. Plan performance and set clear objectives.” Page 29 of 76 . Rankings do not tell you the actual value of an employee.

Your preparation depends on a number of factors. and the particular details of your performance management system. “I promise there won’t be any surprises during the meeting” is a good phrase. What’s important is that the employee begin to think about the things the two of you are going to discuss. Page 30 of 76 . You might ask him or he to review relevant documents-job descriptions. performance plans. Explain the purpose of the appraisal discussion and what to expect and outline any decisions that need to be made by the end of the meeting. Your goal is to limit the length of the actual appraisal meeting to about an hour. You prepare to play a lead role during the meeting in a way that encourages the employee to participate actively. you need to lay the groundwork beforehand. Be sure to review the form you’re expected to use. If you go longer than that. fatigue sets in. including the forms you have to complete. Make sure you ask if the employee has any questions about the meeting. You can discuss specific steps to help the employee prepare. Make sure you understand it and think about how you’ll use it to stimulate discussion. The employee prepares so he or she can participate actively. It is good to provide some reassurance at this time. It’s also a good idea to write a quick informal agenda outlining the critical steps you want to complete. So. don’t understand the point. job responsibilities. performance planning documents.PREPARE FOR THE APPRAISAL There are few things worse than being involved in a performance review meeting when one or both parties don’t know why they are there. Review the employee’s job description. Preparation begins at the time you schedule the review meeting. Along with fatigue comes aggravation. You can share this with the employee at the start of the review. and strategic planning and relevant documentation created throughout the year. and haven’t done any thinking or background work. tops. your style. There are two aspects to appraisal preparation. and relevant documentation. Ask the employee to go through his or her objectives and make notes about whether he or she has achieved them or not.

Here are three simple activities that can help: Get the participatory mindset: A few minutes before the meeting. remind yourself that you’re three to create a dialogue. Answer any questions. This is the employee’s time. Touch base: A day or so before the meeting. Have your phone calls held. Don’t do it by memo. Plan to foster self-evaluation. Verify that both you and the employee will be ready. Promise yourself not to get into the blame game. confirm the appointment with the employee.” Page 31 of 76 . Prepare in person: Reduce anxiety about the performance review by preparing face to face. Schedule and explain in person. “Arrange not to be interrupted. Commit to asking questions. That’s far too impersonal and very intimidating for the employee. Make it quality time.

but be sincere and specific and accurate when you recognize performance. and even regular run-of-the-mill success. Don’t limit recognition to any time. If your employees feel you do not recognize their contributions. and bonuses are examples. awards. Make sure you demonstrate an accurate understanding about the particular accomplishment. or situation. Then. of course. Salaries don’t convey that sense to employees. Recognizing success can take many forms-perks. not rise. They are dead wrong. Congratulate employees on special accomplishments. since research suggests to manipulate him or her into higher performance. and. The most practical forms of praise don’t have to cost a cent. Sincerity is critical. You can show your appreciation during all the phases of performance management: during performance planning. any time during the year. There’s no limit on praise. during the performance review meetings. For example. performance tends to drop. But keep in mind that if you praise everything. recognized. but the employee has actually been late five times during the past month. dealing with tough situations. All of us need to know that our work and our successes are noticed. they won’t go to the wall for you. They believe that salary is enough and “coddling” employees is unnecessary. employees will devalue your praise. in team meetings. place. tell him or her. when you find them. you look like a fool who doesn’t know what’s going on. Page 32 of 76 . though. and in one-to-one-meetings. and appreciated. You can recognize contributions over coffee. Look for instances where an employee is doing a good job.RECOGNIZE SUCCESS Some managers who consider themselves “hardnosed” believe it’s not necessary to praise employees and acknowledge their successes. if you congratulate an employee on always getting to work on time.

plaque.Here are three pillars of employee recognition: Explain the good: Acknowledging success in a general way is a good thing. When you find an employee doing something good.” Page 33 of 76 . It tells the employee what to continue to do and it provides a little motivational lift. Recognition rewards are best served in a context of fun and goodwill. use rewards of token value. Look actively for successes rather than for problems. It’s even better if you explain exactly what the employee did well and why it was valuable. “Celebrate success as they occur. Recognize with small rewards: When acknowledging accomplishments with some sort of tangible reward. Catch employees doing good: Get out of your office to see what’s going on and talk to staff. congratulatory coffee mug) don’t result in bad feelings or destructive competition for rewards. certificate. Small rewards (ex. small gift certificate. comment and recognize that accomplishment on the spot. That accomplishes two things.

Replace these kinds of statements with more cooperative language. Page 34 of 76 . “For years. the more likely the employee will resent you and resist you. For example. such as “If you really cared about this team. “I can recall a few instances where projects have been delayed. you would work harder” or I guess you don’t care much about this project. “You aren’t listening” and “You don’t know what you are talking about” are personal attacks. Could you explain a bit more?” Eliminate focusing on the past and using past-centered comments. Eliminate guilt-inducing phrases. “Let’s slow down a bit so we make sure we understand what each of us is saying” or “I ‘m not understanding your thinking here. By using cooperative language. For example.” Avoid comments and criticism that can be construed as personal attacks. Fear is not a good motivator. For example. comments that are meant to make an employee feel guilty. Aggressive talk breeds aggression.” That’s not true. you’ve been late in getting your work done” is a pastcentered comment that’s likely to create an argument. Let’s talk about how we can prevent that in the future” is much more constructive and less likely to start fights.USE COOPERATIVE COMMUNICATION Some managers believe that the best way to “motivate” employees is to get in their faces or “read the riot act.” If you use these kinds of phrases. For example. employees will fight you tooth and nail because they are interferences on your part and far too vague. The harder you lean. It’s OK to refer to past event in passing. but not to focus on the past. Why? Because it’s in the past and can’t be changed. you’ll reduce conflict and send the message that you and the employee are “on the same side.

I have some suggestions about [topic]. People tend to fight overstatements.” every time. For example.” “never. ‘Are there things that I do or say that make you feel uncomfortable talking to me?” Page 35 of 76 . Overstatements are almost always inaccurate and intended to “win. “Get this on my desk today” is a command. but it’s best to ask first.” and “all the time. Don’t overstate: If you use words like “always. You have a right to make suggestions. while “I need this today. does that work for you?” is not. overuse tends to foster resistance and rebellion.” “Ask your staff.” you’re overstating your point. Can we talk about them?” Reduce commands: You also have a right to order or command that an employee do what you want. Usually you can send the same message without being overbearing.Here are three more tips on improving your communication: Reduce unsolicited advice: There are times to offer advice and times to to. However.

but by themselves they are simply too inaccurate to improve performance. while the more specific ones are clear about what’s needed-try this qualifying technique.” “You’re too argumentative during team meetings.” and “You need to work harder.” and “I’ve noticed that you get into work late about once a week and that prevents customers from contracting you in the morning. stop interrupting. performance tends to drop over time. Page 36 of 76 . even for better performers.” Here are examples of comments that are specific: You might be able to improve your sales if you qualify your customers by…. When that information is missing.BE SPECIFIC ABOUT PERFORMANCE We know beyond a shadow of a doubt that people need specific information about their job performance to improve. and arrive on time.” The vague comments may in fact be true. “ “I think you seem argumentative in team meetings because you tend to interrupt others. What kind of information do employees need? • Specific information about what they are doing well and should continue doing Specific information about what they should not do Specific information about what they should do-instead of what they should not do • • How specific does the information need to be? Here are examples of comments too vague to help an employee learn and improve: “You aren’t selling enough.

Here are three techniques to help you keep appraisal discussions concrete and specific:

Rely on specific examples:
Use specific examples of behavior when talking about performance. For example, “In June I received three calls from customers unable to get in touch with you because you hadn’t arrived by 9 o’clock” or “In the last team meeting, you interrupted Jane three times.”

Stick to observations and facts, not inferences’:
Observations are things you see. Facts are about things you know, based on data (e.g., sale figures, customer comments). Inferences are conclusions, usually about an employee’s attitude or personality. Avoid inferences and statements like “You’re lazy,” “You need to work harder,” and “You’re not a team player.”

Make and use informal notes:
You can’t always talk about a performance issue immediately. When you do see things about an employee’s performance that you want to mention later, make some short notes so you can be specific during the discussion. Use them to jog your memory.

“Employees need regular, specific feedback on their job performances. They need to know where they are excelling and where they could improve. If they don’t know…, how can they get better?”

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It’s not among the main reasons for managing performance, performance management is an important tool for disciplining an employee. Discipline is not quite the same as punishment. Punishment has an “I will hurt you” quality, while discipline is the process of holding an employee accountable for his or her actions by specifying consequences that will be applied under some very specific circumstances. And, of course, discipline is applying those consequences when needed. There are times when employee actions are so extreme or unacceptable that they require immediate action (e.g., assault, theft, gross safety violations). However, most disciplinary action related to performance does not require that immediacy. Enter progressive discipline. There are several components to progressive discipline. First, you identify aspects of performance that must change. Second, you determine what will happen if that change does not happen by a specific time- the consequences (e.g., probation, demotion, suspension). Third, you communicate (and document) the information to the employee. Fourth, you reevaluate at the identified time. Fifth, you apply the consequence. Usually the consequences themselves are progressive: you start with the most gentle consequences and then, if those are not sufficient to help solve the problem, you escalate. You may go through the cycle several times, depending on the value of the employee, the severity of the problem, and other factors that fit the situation.


Page 38 of 76

Here are three suggestions to help you make progressive discipline work:

Problem-solve first:
Discipline of any sort should be considered a last resort. You have an investment in each employee, an investment that you do not want to lose. Before you move to discipline, work with the employee to identify why the problem is occurring and try to help him or her overcome it. If that fails, discipline may be appropriate.

Weigh the consequences:
Disciplining an employee means crossing a bridge that you may never be able to uncross. Disciplinary action can destroy any chance of a positive relationship between you and the employee. Also, before you decide to proceed, consider the costs of disciplinary action-the cost of replacement and the effect on other staff.

Identify, communicate, provide opportunity, and help:
Give employees reasonable time to improve, except in very severe situations. Be clear about what they need to change and take an active role in helping them improve. First, be a “teacher/helper.” Then, if helping doesn’t work, be a boss.

“Any disciplinary action must be documented completely, in detail – the actual performance gap, how it was identified, how it was communicated to the employee, and steps taken to resolve the problem.

Page 39 of 76

Some managers use development opportunities. Don’t restrict yourself to just the more formal learning opportunities. such as going to conferences and seminars as rewards for good performance. therefore. such as training seminars. How does this fit with performance management? Performance management provides you with the tools for determining whether employee development is indicated and what kind of development best fits the situation. you can pair up a less skilled employee with a willing. Skill development is appropriate when you believe performance can be improved if the employee acquires or refreshes job-related skills. You can coach the employee yourself if you have the required knowledge and skills. Skill development can also be used in cases where an employee might be suitable for increased responsibility or a promotion. more skilled employee. but there are other alternatives. You can arrange for job rotations so the employee learns new skills and becomes a more adaptable part of your organization. For example. It makes sense to invest further by helping them develop and to improve their skills and.DEVEVELOP EMPLOYEES Consider that you already have a significant investment in your employees. Informal ways of learning are often more effective and less costly. It took time and money to hire them and get them up to speed. Employee development need not be costly. their ability to contribute over the long term. Performance appraisals can highlight gaps between where an employee is and where he or she needs to go. Page 40 of 76 . use performance planning to identify possible barriers to goal achievement and identify what an employee needs to learn to achieve the goals. For example. You can use seminars and training workshops.

Regardless of the learning methods.Below are three suggestions to help you optimize staff development: Follow up: Learning happens best when there is follow-up. Incorporate a development plan: The best times to plan for skill development occur during performance planning and performance appraisal. suggest reporting to other staff members what he or she has learned or meeting with you. discuss skill development goals and how to reach them. If an employee goes to training. the skills needed for employee success change over time. make sure employees understand how they’ll use what they’ve learned. During both phases. Link learning to goals: People learn best when they understand the purpose. “In a constantly changing workplace. Document any agreements and commitments for the employee and yourself.” Page 41 of 76 . Tie development to specific goals or career enhancement. Talking about learning reinforces the learning.

SOME MODEL PERFORMANCE APPRAISALS “Performance “Performance management is about people. dialogue. not about forms or forcing employees to produce. and working together. communication.” Page 42 of 76 .

you are required to support your rating with comments in the spaces provided for each category. Society. Performance is consistent. Clearly meets job requirements.PERFORMANCE APPRAISAL For : STAFF Name of Appraise: ________________________Designation: _______ Department: _____________________________ Service Start Date: _________ Appraisal Period From: ___________ to ________Purpose of Review: Confirmation Annual Review Name and Designation of Appraiser: _________________________________________ Nature of Relationship: ________________________________________ XYZ Company seeks corporate value of higher significance. Employees. Performance for each category is graded into the following: Outstanding Very Good Good Fair Needs Improvement occasionally. If your evaluation and recommendations cannot be adequately covered in the space provided. Technology. Products. Performance is consistent and exceeds expectations. Performance is inconsistent. Consistently demonstrates excellent standards. pursuing innovative quality in the areas of Customers. Meets minimum requirements of the job. Performance is satisfactory. Unsatisfactory 5 points 4 points 3 points 2 points Performance is exceptional and far exceeds expectations. Meets requirements of the job 1 point 0 point Performance does not meet minimum requirements of the job. Page 43 of 76 . Management and Fairness When completing the form. please mark “Not Applicable” (NA). For statements that do not apply to the person being evaluated. Comments should be specific (including examples) and explanatory. you should prepare an attachment to this appraisal form.

Outstanding PART I 1. CUSTOMERS Follows instructions to the satisfaction of superiors Aims to develop good relations with internal and external customers Very Good Good Fair Needs Improve ment Unsatis factory Not Applicable Customer Focus 5 5 4 4 3 3 2 2 1 1 0 0 NA NA 2. Able and willing to work effectively with others in a team 5 4 3 2 1 0 NA Communication Skills 4. PART II Teamwork EMPLOYEES 3. SOCIETY Uses practices that save company resources and minimize wastage 5 4 3 2 1 0 NA Comments Page 44 of 76 . Communicates effectively to share information and/or skills with colleagues 5 4 3 2 1 0 NA PART III Cost Consciousness 5.

Possesses knowledge of work procedures and requirements of job 5 4 3 2 1 0 NA 7. Has a sense of urgency in acting on work matters 12.Outstanding PART IV PRODUCTS AND SERVICES Very Good Good Fair Needs Improve ment Unsatis factory Not Applicable Job Knowledge/ Technical Skills 6. thorough and careful with work performed 5 4 3 2 1 0 NA Quantity of Work 14. Is able to handle a reasonable volume of work 5 4 3 2 1 0 NA Safety 15. Shows technical competence/skill in area of specialization 5 4 3 2 1 0 NA 8. Displays a willingness to learn 5 4 3 2 1 0 NA 5 5 4 4 3 3 2 2 1 1 0 0 NA NA Quality of Work 13. Is proactive and displays initiative 11. Displays commitment to work Work Attitude 5 5 4 4 3 3 2 2 1 1 0 0 NA NA 9. Is accurate. Plans and organizes work effectively 10. Ensures careful work habits that comply with safety requirements 5 4 3 2 1 0 NA Comments Page 45 of 76 .

Outstanding Very Good Good Fair Needs Improve ment Unsatis factory Not Applicable Process Improvement 16. Is a positive role model for other staff 5 5 4 4 3 3 2 2 1 1 0 0 NA NA 20. responsible and reliable 25. Is trustworthy. Seeks to continually improve processes and work methods 5 4 3 2 1 0 NA PART VI Problem Solving MANAGEMENT ( to be completed for staff with supervisory duties only) 17. Is able to work with limited supervision 24. Handles problem situations effectively 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA Supervision/ Motivation of Staff 19. Effectively supervises work of subordinates PART VII Attendance/ Punctuality FAIRNESS 21. Has good attendance 22. Is adaptable and willing to accept new responsibilities 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA Comments Page 46 of 76 . Helps resolve staff problems on work-related matters 18. Is punctual 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA Dependability/ Responsibility 23.

31%-44% Needs Improvement Performance is inconsistent.100% Outstanding Performance is exceptional and far exceeds Consistently demonstrates excellent standards requirements. Supervision and training is required for most problem areas. 0%-30% Unsatisfactory Performance does not meet the minimum requirements of the job. in all job 76%-89% Very Good Performance is consistent.Evaluation Formula Total Score Total Scores X 100 % Number of Questions Answered X 5 Score Grading 90%. Meets requirements of the job. Page 47 of 76 . and exceeds expectations in all situations. expectations. 60%-75% Good Performance is consistent. Clearly meets essential requirements of job. 45%-59% Fair Performance is satisfactory. Meets requirements of the job occasionally.

will be taken to help the appraisee in their current job or for possible advancement in the company? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ Achievement (i) Describe the appraisee’s areas of additional responsibilities and/or other workrelated achievements ____________________________________________________________________ ____________________________________________________________________ ___________________________________________________________________ Page 48 of 76 .Growth and Development (i) List the appraisee’s strengths ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ (ii) List the areas for improvement ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ (iii) What specific plans of action. including training.

e.Recommendations θ θ θ Termination θ Consider for merit increment Extension of probation θ Transfer to other types of work Suitable for confirmation θ Ready for promotion (w. but not ready now Normal increment of S$________ θ Others: ________________________ No salary increment_____________________________________ θ θ Other Remarks: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________ ___________________________________________________________________________ ________________________ Signature of Appraiser Date Review by Countersigning Authority Comments by countersigning authority (if any): ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________ Name of countersigning authority Designation of countersigning authority Signature Date Page 49 of 76 .f. _______________) θ Has potential for promotion.

HUMAN RESOURCE DEPARTMENT’S USE Present Salary:____________________Date of Last Increment: ______________ New Salary: ____________________Effective Date:_____________ Comments: ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ________________________________________________ ____________________________ Signature of Director / Vice-President Date Page 50 of 76 .

Performance for each category is graded into the following: Outstanding Consistently Very Good Good Fair Needs Improvement 5 points Performance is exceptional and far exceeds expectations. Meets requirements of the job occasionally. Performance is consistent and exceeds expectations. 4 points 3 points 2 points 1 point Unsatisfactory 0 point Page 51 of 76 . For statements that do not apply to the person being evaluated. *You are required to support your rating with comments in the spaces provided for each category.PERFORMANCE APPRAISAL MANAGER Name of Appraisee:__________________ Department: ___________________ Designation: __________________ ________________________ Service Start Date: Appraisal Period From: ___________ to ___________ Purpose of Review: Confirmation Annual Review Name and Designation of Appraiser: ______________________________________ Nature of Relationship: ______________________________________________________ XYZ Copmany seeks corporate value of higher significance. you should prepare an attachment to this appraisal form. *Please refer to the goals set during the previous appraisal period. Products. Society. This form should be reviewed by the next level of authority. Management and Fairness The purpose of this evaluation is to communicate clearly to the individual evaluated how well he/she is meeting expectations for a person at his/her level. Clearly meets job requirements. before discussion with the person being evaluated. Comments should be specific (including examples) and explanatory. If your evaluation and recommendations cannot be adequately covered in the space provided. Technology. Performance is consistent. Performance is satisfactory. Employees. demonstrates excellent standards. Meets minimum requirements of the job. “Not Applicable” (NA). please mark. Performance does not meet minimum requirements of the job. as you conduct your assessment. Performance is inconsistent. pursuing innovative quality in the areas of Customers.

PART I.EMPLOYEES Staff Training and Welfare 28. Places high priority on achieving customer satisfaction (both internal and external customers) 27. Is pro-active in training new hires and less experienced staff 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA Interpersonal/ Facilitation of Teamwork 30. Displays effective interpersonal skills 5 4 3 2 1 0 NA Comments Page 52 of 76 . Demonstrates an interest in the career development of staff within the department 29. Ensures teamwork and cooperation amongst staff 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA 32. customers and internal staff 5 3 2 5 4 3 2 1 0 NA PART II. Displays effective negotiation skills with both suppliers. Strives to develop good relations with other departments 31.CUSTOMERS Outstandi ng Very Goo d 4 Good Fair Needs Improv ement 1 Unsat isfact ory 0 Not Applicab le NA Customer Focus 26.

Displays commitment to personal and career development 38. Keeps current about industry developments 36. Plans and organises work effectively 39.Outstandi ng Communication Skills Very Goo d 4 Good Fair Needs Improv ement 1 Unsat isfact ory 0 Not Applicab le NA 33. Is proactive and displays initiative 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA Comments Page 53 of 76 . Displays a high level of technical competence in job area 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA Work Attitude 37. Actively promotes practices that save company resources and minimize wastage 5 4 3 2 1 0 NA PART IV Job Knowledge/ Technical Skills PRODUCTS AND SERVICES 35. Communicates and presents information effectively 5 3 2 PART III Cost Consciousness SOCIETY 34.

Ensures that work performed in the department is accurate and of high quality 5 3 2 41. Helps resolve staff problems on work-related matters 45.Outstandi ng Quality Mindset Very Goo d 4 Good Fair Needs Improv ement 1 Unsat isfact ory 0 Not Applicab le NA 40. Ensures careful work habits that comply with safety requirements in his department PART V Process Improvement Safety 5 4 3 2 1 0 NA TECHNOLOGY 42. Exhibits sound judgement when making decisions 5 4 3 2 1 0 NA 5 Problem Solving 44. Handles problem situations effectively 5 4 3 2 1 0 NA 4 3 2 1 0 NA Comments Page 54 of 76 . Seeks to continually improve processes and work methods 5 4 3 2 1 0 NA PART VI Decision Making MANAGEMENT 43.

Ensures staff receive timely feedback 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA PART VII Integrity FAIRNESS 51. Sets realistic goals and is responsible for meeting them 5 4 3 2 0 NA Leadership /Motivation of Staff 47.Outstandi ng Very Goo d Good Fai r Needs Impro vemen t 1 Unsati sfactor y Not Applicab le Goal Orientation 46. Demonstrates ability to assume and discharge responsibility 53. Demonstrates integrity and good work ethics in the company’s best interest 5 4 3 2 1 0 NA Dependability/ Responsibility 52. Is adaptable and willing to accept new responsibilities 5 4 3 2 1 0 NA 5 4 3 2 1 0 NA Comments Page 55 of 76 . Delegates responsibilities to subordinates effectively 50. Motivates staff to perform better in all areas 49. Is a positive role model for subordinates 48.

Evaluation Formula Total Score Total Scores X 100 % Number of Questions Answered X 5 Score Grading 90%. 60%-75% Good Performance is consistent. 45%-59% Fair Performance is satisfactory.100% Outstanding Performance is exceptional and far exceeds expectations. Clearly meets essential requirements of job. Supervision and training is required for most problem areas. and exceeds expectations in all situations. demonstrates excellent standards in all job requirements. Meets requirements of the job. Meets requirements of the job occasionally. 0%-30% Unsatisfactory Performance does not meet the minimum requirements of the job. Consistently 76%-89% Very Good Performance is consistent. 31%-44% Needs Improvement Performance is inconsistent. Page 56 of 76 .

Growth and Development (i) List the appraisee’s strengths _____________________________________________________________________ _________________________________________________________________________ _______________________________________________________________________ (ii) List the areas for improvement _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ (iii) What specific plans of action. will be taken to help the appraisee in their current job or for possible advancement in the company? _______________________________________________________________________ _______________________________________________________________________ ________________________________________________________________________ Achievement (i) Describe the appraisee’s areas of additional responsibilities and/or other workrelated achievements _______________________________________________________________________ _________________________________________________________________________ _______________________________________________________________________ Page 57 of 76 . including training.

but not Others: _________________________ __________________ θ θ Other Remarks: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ _______________________________________________________________________________ __________________ Signature of Appraiser ________________________ Date Page 58 of 76 .f.Review with Staff My immediate superior and I have discussed my performance review. _______________) ready now Normal increment of S$________ No salary increment θ θ θ θ θ Consider for merit increment Transfer to other types of work Ready for promotion Has potential for promotion.e. ( ( ) ) I agree with the appraisal I disagree with the appraisal Comments: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ _______________________________________________________________________________ _______________ Signature of Employee _______________ Date Recommendations θ θ θ Termination Extension of probation Suitable for confirmation (w.

HUMAN RESOURCE DEPARTMENT’S USE Present Salary: ____________________ New Salary: Comments: ____________________ Date of Last Increment: _____________ Effective Date: ______________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ________________________________________________________________________________ ____________________________ Signature of Director /Vice-President Date Page 59 of 76 .

b) Liked and respected. DEPENDABILITY: (Reliability following through an assignment and instructions) a) Required more than normal follow up. needs close supervision. 7. 4. INITIATIVE: (Ability to originate or develop ideas and to get things started) a) Lacks imagination. c) Exceptionally industrious. b) Regularly meets recognized standards. 5. b) Regularly meets recognized standards. c) Highly regarded. APPLICATIONS: (Attention and application to his work) a) Wastes time. b) Has required knowledge of own and related work. PERSONALITY: a) Has difficulty in getting along with others. KNOWLEDGE OF WORK: (Understanding of all phases of this work and related matters) a) Needs instructions or guidance. QUALITY OF WORK: (Thoroughness. c) Has exceptional knowledge of own and related work. 6. 2. b) Liked and respected. c) Consistently maintains highest quality.APPRAISAL FORM Name of the Employee: Emp. 3. c) Usually resourceful.No.: Department: Section: Qualifications: Date of Joining: _____________________________________________________________________ STRICTLY CONFIDENTIAL 1. Page 60 of 76 . neatness and accuracy of work) a) Needs improvement. b) Steady and willing worker. VOLUME OF WORK: (Quality of acceptable work) a) Should be increased. c) Unusually high output. c) Highly regarded. b) Meets necessary requirements.

b) Average. Signature of the Dept. ATTENDANCE: (Assess on punctuality and record of unauthorized absence) a) Unsatisfactory.DEPT. 10. ADDITIONAL COMMENTS OF THE DEPT.HR RECOMMENDATION IN VIEW OF THIS APPRAISAL BY THE VICE-PRESIDENT (TECH): Based on this performance on the job. c) Consistently regular. c) Very effective. b) Average.Head Date: Signature of Manager . Page 61 of 76 . POSITIVE DISCIPLINE: a) Careless. Reviewed with employee on : _______________. c) Excellent manner. COMMUNICATION & EXPRESSION SKILLS: a) Unintelligible.8. 9. b) Average.HEAD: Date: ADDITIONAL COMMENTS OF THE PERSONNEL & ADMN. what is your overall appraisal of the Employee? [ ] Tick one only in the following: ( ) EXECLLENT ( ) GOOD ( ) AVERAGE ( ) POOR APPROVED BY GENERAL MANAGER Note: The Appraiser should ( ) tick any one choose only from the points 1 to 10.

Initiative in seeking out work and undertaking additional responsibility. amenability to discipline. intelegence.APPRAISAL FORM Name of the Employee: Emp.No. Performance Factor Un-satis factory Average Above Average Outstan ding Additional Comments 01 02 Proficiency and accuracy in work. Proficiency in communication. Attendance & Timekeeping 03 04 05 06 07 08 Attitude towards Management & Superiors. 09 10 ….trustworthyness. Ability to correspond independently. industry.see next page 2 -2- Page 62 of 76 .No. Physical appearance & Tidiness in work place. Keenness. Ability to organize own work. General assessment of lations with fellow employees.: Department: Section: Qualifications: Date of Joining: ___________________________________________________________________ STRICTLY CONFIDENTIAL Sl. Trustworthiness in handling confidential matters and papers.

No. on which employed and how he/she carried them out? Brief mention of any outstanding or notable work. Please specify.HR RECOMMENDATION IN VIEW OF THIS APPRAISAL BY THE VICE-PRESIDENT (TECH): 01.HEAD: 14. Do you consider him for any Increment or cash award ? 02. Employee’s record during the assessment period. Meriting special commendation.DEPT. Signature of the Dept. 12. ADDITIONAL COMMENTS OF THE DEPT. Reviewed with employee on : _______________. if any. Page 63 of 76 . 13.Sl. Does the employee need specific training in certain aspects of his job ? If so. Performance Factor Un-satis factory Average Above Average Outstan ding Additional Comments 11. what is your overall appraisal of the Employee? [ ] Tick one only in the following: ( ) EXECLLENT ( ) GOOD ( ) AVERAGE ( ) POOR APPROVED BY GENERAL MANAGER Note: The Appraiser should ( ) tick any one choose only from the points 1 to 14. Date: ADDITIONAL COMMENTS OF THE PERSONNEL & ADMN. Nature of other duties. Do you consider him suitable for promotion ? Based on this performance on the job.Head Date: Signature of Manager .

Appraisals can also be used to set measurable targets and objectives to continually spur performance improvement. Performance appraisal involves the setting of clear quantifiable goals and objectives and assessing individual performance against these measures. Why Performance Appraisal 1. measurement. planned goals and objectives. This system is the approach to the management of people using performance. knowledge and attitudes required for the different job roles. This system improves fair judgement and the perception of equity among staff. The appraisal criteria acts as a guide to the attitudes and behaviours that XYZ COMPANY would like their staff in their various capacities to have. a system for measuring performance in an equitable way is necessary. The appraisal can be used to encourage good work as well as point out opportunities for improvement.2 Aims Performance appraisals are a way to give feedback to staff regarding their performance. feedback and recognition to motivate people to realise their maximum potential. Increasing Role Clarity Performance appraisal is a tool for communicating the skills. The performance appraisal encourages the use of objective. Compensation and Reward As XYZ COMPANY bonuses and annual increments are linked to performance.GUIDANCE 1. 1.1 Definition The performance appraisal is part of a larger system known as the performance management system. Training and Development Performance appraisals measure an individual’s performance and can identify opportunities for improvement or learning through training. Page 64 of 76 . quantifiable criteria to measure performance which will be known to all staff.

Society.Career Planning Performance appraisals will allow XYZ COMPANY to assess the skill set of their existing staff to ascertain the career path for each individual. This enhances awareness of corporate values and promotes behaviours that are in line with XYZ COMPANY’s values. Technology. Products. These values are translated to performance measures that are used in the appraisal. Employees. Page 65 of 76 . Enhance Corporate Values XYZ COMPANY’s corporate value is the pursuit of innovative quality in the areas of Customers. Management and Fairness.

Schedule for Performance Appraisals STAGES OF THE PERFORMANCE MANAGEMENT SYSTEM 1st week of July Schedule interviews Schedule interviews • Appraisers to schedule 1hr sessions for each employee 1st week of July Inform Employees Inform Employees • Appraisers to inform employees at least one week before the scheduled interview 2nd week of July Preparation for Review Preparation for Review • Conduct performance appraisal interview • All Execs and Managers will undergo the appraisal interview including setting performance targets and goals for the next time period 3rd and 4th week of July • HR Dept to identify Appraisers for each department.2. particularly for departments with more than one appraiser • HR Dept to provide Appraiser with appraisal forms • Appraiser to complete forms for respective staff • Appraisers to submit completed form to respective superiors for review and countersigning • Appraisers to submit form to HR Dept Performance Review Performance Review and and Agreement Agreement 4th week of July Management Management Review Review 1st week of August HR Dept Review HR Dept Review • HR Dept to confirm recommendations on salary increments and promotions with Managing Director • HR Dept to prepare letters to staff accordingly • HR Dept to file appraisals in personnel forms Page 66 of 76 .

Avoid postponing the appointment. Explain the meeting agenda DURING THE APPRAISAL Encourage communication Outline what is about to happen for the session • • • • • listen encourage two-way communication ask for ideas on how they can improve their performance ask for how they feel you can help them ask for feedback on the appraisal section Stay focused Keep the session focussed on past and future performance.set aside at least one hour. Conducting the Performance Appraisal Both praise and criticism are most meaningful when supported by factual examples Use previous goals to evaluate progress Keep good records Review previous goals Get input from others Prepare carefully Prepare administrative details BEFORE THE APPRAISAL Seek feedback from others who work with the appraisee in areas they will have objective knowledge of and get examples where available Prepare in advance so that you can deliver the message that you intend to • agree on a time . and come prepared with questions.3. • select a location . • ask employee to prepare .office or conference room is best. and give the employee full attention.ask the employee to review his/her goals. summarise discussion issues often to ensure agreement The employee expects and should know what he/she needs to improve Communicating shortcomings Be open Be versatile and open-minded if you hear things that cause you to change your opinion DURING Evaluation process • Begin with the positive things that were well done • Follow this with areas that need improvement and a plan on how to address them • Conclude with a reinforcement of your desire to help the person grow and improve Page 67 of 76 .

g. promotions. Try to encourage continuation and growth in the areas of strength. the appraisal process and your management style Page 68 of 76 . your records and systems. salary increments.things that make a difference. transfers etc) Concentrate on a few areas. yourself.Making promises Review goals Don’t make promises you do not have control over (e. Set up “smart” goals that will build strength in areas needing attention AFTER THE APPRAISAL Administration • Complete the paperwork required for the results of the appraisal • Make sure the appraisee signs on the bottom line • Mark the calendar on when your next appraisal session with the person will be Follow-up Learning Follow-up on agreements made during the appraisal Review what you have learnt about the employee.

as there may be several pitfalls which may skew the assessment: Halo Effect A person outstanding in one area tends to receive outstanding or better than average ratings in other areas as well. even when such a rating is undeserved Negative Effect A low rating in one area yields lower than deserved ratings for other accomplishments Central Tendency Assigning an average rating for all qualities Confrontation Avoidance Discomfort with giving negative feedback Initial Performance Rating an employee based solely on initial impressions of performance Recency Rating an employee based solely on most recent performance which overshadows the entire year’s performance Page 69 of 76 . Common Rating Errors Whilst completing the appraisal form. the appraiser is advised to exercise caution.4.

5.2. Using the Appraisal Form 5.strengths and areas for improvement Training requirements Achievements Goals and targets (for managers and executives) Review with staff (for managers and executives) Recommendations Management review. listens and writes clearly and logically to share information and skills Employees Society Cost Consciousness • Demonstrates concern for the society through practices that save company’s resources and reduce wastage Page 70 of 76 .1 Key Performance Indicators Manager Executive Staff Core Values Customers Customer Focus • Maintains high priority in achieving customer satisfaction (both internal and external customers) by quickly and accurately identifying and responding to customers actual needs • Is effective in dealing and negotiating with internal and external customers Staff Training and Welfare • Actively provides guidance and helps staff in their career development Interpersonal/ Facilitation of Teamwork • Promotes and develops good working relationships with other staff Communication Skill • Speaks.2 Completing the Appraisal Form 5.Review by Countersigning Authority 5.1 Elements of the Appraisal Form The appraisal form covers the following key areas: • • • • • • • • Assessment of performance Employee’s growth and development .

initiative and a sense of urgency toward work and a willingness to learn Quality Mindset • Maintains high standards for how work is done in terms of accuracy and consistency Safety • Ensures careful work habits that comply with the safety requirements Quantity of Work • Ability to handle a reasonable volume of work Technology Process Improvement • Recognises the need for continuous improvement Problem Solving • Identifies issues and problems. planning and organisational skill. secures relevant information from different sources and resolves problems effectively Leadership/ Supervision & Motivation of Staff • Sets a good example for subordinates and effectively controls and leads them Goal Orientation • Sets realistic challenges and acts to achieve them Decision Making • Takes the right action at the right time Management (to be completed for appraisees with supervisory duties) Fairness Integrity • Acts ethically and honestly in line with the company’s code of conduct Dependability / Responsibility • Is reliable in the discharging of duties and is willing and adaptable in taking on new responsibilities Attendance/ Punctuality • Has good attendance and is punctual Page 71 of 76 .Core Values Products and Services Manager Executive Staff Job Knowledge/ Technical Skills • Demonstrates good knowledge and skill in job area Work Attitude • Displays commitment.

Consistently demonstrates excellent standards in all job requirements. Page 72 of 76 .2 Evaluation (a) Total Evaluation The final score is the average score.2. Very Good Performance is consistent. Good Performance is consistent. calculated as follows Total Scores X 100 % Number of Questions Answered X 5 (b) Gradings The appraisee is then graded according to the level of his/her performance in each category according to the final score: Outstanding Performance is exceptional and far exceeds expectations. Needs Improvement Performance is inconsistent. Fair Performance is satisfactory. Meets requirements of the job occasionally. Supervision and training is required for most problem areas. Clearly meets essential requirements of job.5. Meets requirements of the job. and exceeds expectations in all situations. Unsatisfactory Performance does not meet the minimum requirements of the job.

Review by Director The Managing Director will provide comments prior to filing with the Administration Department. Page 73 of 76 . In particular.Growth and Development In this section. Specific action plans can also be developed together with the appraisee (for Executives and Managers) to address these areas. termination. describe how the appraisee demonstrates their strengths and areas for improvement by providing specific examples. Goals are specific and measurable objectives that the individual wishes to achieve by the end of the following appraisal period. extension of probation. contain a section for goal setting and goal achievement assessment. Recommendations The appraiser provides recommendations for the career development for the employee. increments. etc. Achievement This section allows any additional responsibilities outside of the appraisee’s job scope (e.g. ISO 9002 Steering Committee) to be acknowledged. Training requirements refer to the skill set required by the employee to either successfully fulfil current job responsibilities or to prepare the employee for greater responsibility. Goals Achievement Appraisals for Executives and Managers. training requirements can be identified for the areas that can be enhanced or developed through training. promotion. These may include: confirmation.

Writing Performance Targets and Goals (Managers and Executives only) 6.2 Steps in Writing Performance Targets and Goals Step 1 Begin by writing down the basic nature of the task using only a verb and a noun Include the quantity or quality that must be met by the person responsible for the task • • • • • • • • Examples Source new clients Increase sales volume Reduce rejection rates Complete planning phase Source X number of qualified clients within Y months Increase sales volume by X% by June Reduce rejection rates by 5% by the end of the year Complete the planning phase by 30 October Source X number of qualified clients within Y months by actively advertising services to potential clients within the electronics industry Step 2 Step 3 If necessary.6.1 Objectives of Writing Performance Targets and Goals • • Specific and measurable targets and goals define what is expected from a job holder The performance targets and goals serve as standards by which performance can be accurately measured 6. add any procedures or criteria that describe the action to be taken to achieve the target or goal Review and refine the target or goal if necessary • Step 4 Page 74 of 76 .

3 Checklist “SMART” Performance Goals: S pecific M easurable A chievable R esults-oriented T ime-bound To ensure that the objectives are properly defined.6. each of the following questions must be answered positively:(i) Does the statement of performance targets/goals limit the results to one specific area? Are the results well defined in terms of what is expected of the job holder? Are the objectives measurable and observable? Were objectives quantified whenever possible? Was a time frame specified? Are the performance targets/goals reasonable and within the reach of the job holder? (ii) (iii) (iv) (v) Page 75 of 76 .

supervisory Page 76 of 76 .6.4 Example of Performance Targets Position Performance Targets/Goals Sales Manager 15% to 20% Increase share of market of Product J from by December 31. Human Resource Manager from 20% Decrease turnover of clerical employees to 15% by Dec 31 Complete planning and installation of training programme. Reduce response time to internal customers by 10%. Warehouse Supervisor Reduce accident rate by 10% .

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