Performance Management and Appraisal

Lecture 8- Week 4

Reference
Dessler, G. (2017) Human Resource Management, 15 edition, Pearson education.
 Unit 8.1: What is Performance Appraisal
The process of evaluating employees’ current/past performance against some
established performance standards
Basic Steps:
1. Setting Standards
It shows the pre-established standards for actual assessment.
2. Actual Assessment
The process of assessing employees’ performance
3. Feedback to employees
Provide feedback to employees about their performance outcomes
Basic Concepts in Performance
Management and Appraisal
Why Appraisal?
1. For Reward and Retention
2. To match employees’ performance with overall Organizational goals
3. To identify the need for training and development
4. To review employees career plans and their strength and weak-
nesses

Performance goals should be SMART:

S= Specific
M=Measurable
A=Attainable
R=Realistic
T=Timely
Defining the Employee’s Goals and Work Standards
Setting Goals

• SMART Goals:
 Specific, and clearly state the desired
results.
 Measurable in answering “how much.”
 Attainable, and not too tough or too
easy.
 Relevant to what’s to be achieved.
 Timely in reflecting deadlines and
milestones.
 Performance Appraisal Roles

• Supervisors
 Usually do the actual appraising.
 Must be familiar with basic appraisal
techniques.
 Must understand and avoid problems
that can cripple appraisals.
 Must know how to conduct appraisals
fairly.
• The HR Department
 Serves a policy-making and advisory
role.
 Provides advice and assistance
regarding the appraisal tool to use.
 Trains supervisors to improve their
appraisal skills.
 Monitors the appraisal system
effectiveness and compliance with EEO
laws.
 Managing the Appraisal Interview
An interview in which the supervisor and subordinate review the appraisal and
make plans to remedy deficiencies and reinforce strengths” (Dessler, 2017, p.
292).

Four types of situations during the interview:

1. Satisfactory—Promotable (Promotion is due)
2. Satisfactory—Not promotable (cannot promote but provide incentives to retain)
3. unsatisfactory but correctable (take corrective action for correcting the performance)
4. unsatisfactory but uncorrectable (Dismissal)
 Guidelines to conduct Appraisal Interview

1. Talk in terms of objective work data.

2. Don’t get personal.
3. Encourage the person to talk.
4. Get agreement.
Unit 8.3 Managing Employee Turnover and Retention
 Who is responsible for turnover?
• Managers tend to have the biggest impact on retention
and
face the most immediate consequences when someone
leaves their team.
• That said, it is often the senior leadership team or HR who
is
responsible for tracking and reporting turnover. These
groups
may also work together on wider efforts to reduce turnover.
• And overall, every member of an organization can influ-
ence
When should we pay attention to retention?
• Retention may not always be the organization’s priority if
your
best people never leave for unavoidable reasons. Even if this
is
the case for you, though, retention is a competitive advantage
that you will want to monitor and nurture.
• From the very first employee-employer interaction, likely
the
job application, you have an opportunity to build a culture of
commitment. Every aspect of the candidate and employee
experience can help you keep the people who make your
 Unit 8.4 Employee Lifecycle Career Management

Employee Life-Cycle Career Management. An employee’s

tenure with a firm tends to follow a life cycle, from
employment interview to first job, promotion, transfer, and
perhaps retirement. We’ll look here at the latter three.

1- Making Promotion Decisions

2- Managing Transfers
3- Managing Retirements
 Making Promotion Decisions
Promotions traditionally refer to advancements to positions of increased
responsibility. Most people crave promotions, which usually mean more pay,
responsibility, and (often) job satisfaction. For employers, promotions can provide
opportunities to reward exceptional performance, and to fill open positions with
tested and loyal employees.

Yet the promotion process isn’t always a positive experience. Unfairness or

secrecy can devalue the process. Furthermore, with more employers downsizing,
some “promotions” take the form of more challenging but not necessarily
higher-ranked or better-paid jobs.
 Managing Transfers

A transfer is a move from one job to another, usually with no change in salary or
grade. Employers may transfer a worker to vacate a position where he or she is no
longer needed, to fill one where he or she is needed, or more generally to find a
better
fit for the employee within the firm.

Many firms today boost productivity by consolidating positions. Transfers are a way
to give displaced employees a chance for another assignment or, perhaps, some
personal growth. Employees seek transfers for many reasons,
including personal enrichment, more interesting jobs, greater convenience— better
hours, location of work, and so on—or to jobs offering greater advancement
possibilities. Transfers for the firm’s convenience—once widely used—are used less
of late.
 Managing Retirements

Retirement planning is a significant issue for employers. In the United States, the
number of 25- to 34-year-olds is growing relatively slowly, and the number of
35- to 44-year-olds is declining. So, with many employees in their 60s approaching
retirement age, employers face a problem: “Companies have been so focused on
downsizing to contain costs that they largely neglected a looming threat to their
competitiveness … a severe shortage of talented workers.”