Performance Appraisal & Potensial Assesment

ROLE OF MANAGERS

(support by HR)
MANAGING PERFORMANCE
FOR ACHIEVEMENT OF
DESIRED RESULT.

PERFORMANCE EVALUATION
HAS BEEN A PARTICULARLY
DIFFICULT AND FRUSTRATING
CHALLENGE FOR COMPANIES
 ROLE OF MANAGERS

(support by HR)
• HELPING EMPLOYEES UNSDERSTAND WHAT IS EXPECTED OF
THEM TO ESTABLISHING PERFORMANCE OBJECTIVES
• HELPING THEM MEET THESE EXPECTATIONS SUCCESFULLY
• EVALUATING PERFORMANCE AND PROVIDING FEEDBACK

• PROVIDING MEANINGFUL
RECOGNITION AND REWARD
 Variables which influence
performance are controllable
by management

• Work desgin (the task &

activities to be performed,
job content)
• organizational context
(supervisory style,
organization of the work, etc)
• performance objectives
(related to organizational
objective).
 INDIVIDUAL
COMPETENCE IS AN
IMPORTANCE VARIABLE

• Hard-working
individual withaut the
necessary skills,
abilities, or knowledge
are not likely to achive
much on their jobs.
• Effort is a prerequisite
for performace.
 EFFORT DEPENDS ON:

• Positive or negative feelings about the outcome or reward

associated with perrformance.
• Expectancy that effort will result in accomplishment of
defined tasks
• Expectancy that accomplishment will obtain or avoid
outcomes or rewards
WORK
DESIGN • The actual tasks undertaken
by individual are also
important for effective
performance.
• The activities are performed
by individual should be
identifiable, tangible and
controllable.
• It is important for managers
to help employees understand
and define the structure and
content of their work
activities.
Job design can strecth individual
performace
• Job are formally defined in job description.
• Job can be designed in ways that will
provide maximum motivational impact.
• Job can help individuals stretch and grow as
human beings and increase their sense of
competense and worth.
• Five job characteristics which Job have greater motivational
contibute to these conditions: value when they give
• - skill variety individuals greater planning &
• - task identity control responsibilities over
• - task significance
their work.
• - Autonomy
• - Feedback.
Several ways of Managers to empower employee to
perform effectively
• Ensure that employees have
the resources they need,
particularly information.
• Give individuals and teams
the authority and
responsibility to act and
manage themselves.
• Help them build lateral
relationships across the
organization that facilitate
problem solving & learning.
Performance Appraisal

1. Introduction
2. Performance Appraisal
3. Designing Effective Performance Appraisal
3. Key Success Factors & Critical Element
Introduction

HR Management, Definition

Attracting, managing and developing people in line with the

competency and culture required by the organization in order to
function synergistically with other organization’s resources as well as
creating an atmosphere of productivity, satisfaction and loyalty

The Mission of HRM

To support the achievement of organizational goals and to

improve the constructive and productive contribution of people
to the organization in an ethical and socially responsible way
HR Paradigm Shift
Old
•Personnel Administration
•Reactive--->responsive
•Controller
•Management Tool
•Transactional
New
•People Based Management
•Proactive
•Facilitator
•Executive/Management Member
•Transformational & Synergistic

Changes in the HRM Concept

Old Old
•Functional Orientation •Business Orientation
•Internal Focus •Customer focus
•Reactive •Proactive
•Rule Maker •Consultant
•Policy Driven •Value Driven
•Traditional approach •Thinking “outside the box”
•Distrust Orientation •Partnering
•Centralized decision making •Collocate decision making
•One size fits all •Tailored programs
 Strategic HR Deliverables

Organization’s Strategy
Human Resource
Implementation Plan

Strategic HR Deliverables

Culture Core Value HR Enablers

Performance
Drivers •Entire system ( from selection
Capital Competence to development & reward )
•Panduan/handbook/SOP
•HRIS
Strategic HR Development •etc
•Performance Appraisal
•Competency HRM
•etc
 Competency Based of HRM
• Underlying characteristics of an individual that results in effective and or
superior perfomance
• A cluster of related Knowledge , Skills and Attitude
•A system approach to Develop, Evaluate, Reward, and separate HR in
relation to the achievement of strategic corporate goals
Competency
Possession of required skill, knowledge and experience to meet current
perfomance requirement in current job

Basic element of competency

• Skill : ability to do something better , because he/she has the
necessary experience from past learning
• Knowledge : useful information
• Social role : behavioral pattern in group/organization
• Self image : self concept ( existence, personality, values etc )
• Trait : basic characteristic showed in daily behaviour
• Motive : driver in behaviour
 Performance Appraisal

Ultimate Goal
Maximizing contribution to achieve business objective

Purposes
• Lead to optimum performance and optimize potensial
• Provide ongoing development cycle ( planning, coaching & counseling,
and feedback )
• Develop on going comunication
• Identify potensial, development need, and near future advancement
• Provide input for salary administration
Characteristics
• As a part of Performance Management System
• Future oriented
• Continuing process
• Measurable and observables
• Simple and easy implement
• Open and constructive system
• Empowering
• Motivating
• Development purpose
• For all employee
Objectives
1. Identifying & evaluating performance
• List of accomplishment
• Appraisal system
• Feedback
• Competency measurement
• Observation

2. Identifying competencies used to meet accomplishment

3. Analyzing strength and weaknesses in competencies for career

path and development program

4. Deciding required competencies for future work assigment

5. To define or redifine future objectives

 Performance Appraisal Strategy ( EPR Continuum )

Effort Performance Result

The Strategy
• Appraisal Sytem :
Appraisal - PA Interview - PA Form
• Inter Relation with other HRM :
HR Planning - Learning&Development - Compensation&Benefit -
Carier&Planning
• Not Merely for remuneration adjusment

Requirement for effective Performance Appraisal System

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

1.
Next Superior • Employee Participates
• Competency based
• Accomplish based
• Next leader involvement
• Developmental
Direct Superior

Appraise

Employee
 Performance Appraisal System

2. Direct Superior

Appraise

Peers Employee Peers

Appraise Appraise

Advantage Disadvantage
• Reliable • Peers often are insufficient as the only source
• Valid • Not enough staff at the same level to provide
• Highly Credible quality feedback
• Differences in experience, education, and
work responsbility can create concern about
abilities to provide high quality information
 Perfomrance Appraisal System

Direct
3. Superior Other
Self
Appraise Superior

Internal Employee External

cust. Appraise cust.
Appraise
Peers Skip-level
Direct report
report

Advantage Disadvantage
• Higher Accuracy • F/B providers avoid “saying what need to be
• Provide F/B from heard”
all direction ; internal • Rater may inflate grades
& external customer • System manipulation by user
 Design Effective Performance Appraisal

4 element to be appraised
1. Traits approach
Distinguishing Quality ( as inherited characteristic )
Examples :
• inisiative • judgment • enthusiasm
• effort • creativity • versality
• dependability • attitude • self control
• leadership • maturity • accuracy
• analytical • critical thinking
2. Task approach
Job, duty, assigment
Example :
• knowing the job
• handling people
• Meeting deadlines
• Following through
3. Goals approach
The result desire in the job ( KPI )
Examples :

Goals Measurement Deadline

Annual Sales Rp 10 million By direct order received Dec 30,2002
Improve competitor knowledge By ability to respon June 30,2002
question in sales
presentation

4. Job Behaviour approach

Behaviour demonstrated in carrying out/ executing the assigment / job / duty
Example :
• Complete project on time
• Open to subordinates idea
• Well liked by team members
• Show patience in training new employees
• Contributes innovative approaches to solve problem
 Process in Performance Appraisal
Appraisal system, policy & procedure
Business
Objectives Perfomance
Final
Agreement Review
Review
Report Follow Up
Unit/Team Planning
goals
Informal progress review

Format Performance Appraisal

Accomplishment only
• Employee rating based on a accomplishment only
• Reward based on accomplishment and productivity
Accomplishment plus Skill and Competency level
• Employee rating and reward based on
• accomplishment
• skill and competency level
• Motivation to self improvement
• Continual learning
Content in Performance Appraisal
• Key job Responsbility • Development Plan
• Goal & Objectives • Direct superior’s comment
• Achievement • Member’s comment
• Enablers • Next superior’s comment

Goal setting
• Define the overall purpose of the job
Agree main tasks • Identify main tasks
• Define what and why it has to be done
• Identify Key Result Areas from the
Set Target list of main tasks
• Quantified & Time base
Define Perfomance • Define in outcomes & quantified terms
Standards

Select Projects • Specify required outcomes of the project,

budget and time scale
 Performance Metrics
Tangible , example
1. Cost : Cost of rework serving
2. Time : Response Time, Cycle time, and delivery time
3. Quantity : Customers of employee served, claims processed
4. Error : Defect rate, Communication failured, Process error rate
5. Reaction : employee satisfaction, trainee responses, turnover reason
6. Productivity : Unit/employee, Unit cost/empl, Reject/empl
Intangible , example
Dimension 1 2 3 4 5
1. Interpersonal skill
• Communication
• Negotiation
• Empathy
• Team Building
2. Leadership
• Motivating others
• Decision Making 5 = Excellent
• Counseling
• Strategic orientation 1 = Poor
Linkage Business Objectives with Individual Perfomance Plan

Performance Corporate Objectives

Management Mission,Core Values,Strategic Plan
System
Functional Objectives
Corporate objectives,Spesific Mission,
Target & purpose of departemen

Participative Team Objectives

Purpose of team
Goal
Setting
Individual Objectives
Job related, referring to the main activities
areas or key task which constitute
with individual job
Key Success Factors & Critical Element

Cultural
Players
Aspects
Key
Success
Factors

System Communication
Problems Identification

Man Atasan tidak

menginformasikan
kategori PA

Karyawan tidak
tahu kategori PA

•Kekecewaan
karyawan akan
nilai PA
•PA dianggap
kurang objektif
PA tidak menilai
performance kerja
aktual
Karyawan tidak
mengetahui Goal
Performance aktual ≠ Performance &
Kategori PA kategori PA

Method Penyusunan Goal

Performance dan
alignment dengan PA
Why Genero Scientific?
• Problem : Central Tendency
Hasil PK
2009
AS
Grade
% Jumlah
KU 0.0 0
CU 0.0 0
BA 86.2 25
BS 13.8 4
IS 0.0 0
TOTAL 100.0 29
Why Genero Scientific?

• Problem : Central Tendency

Hasil PK
2010

AS
Grade
% Jumlah
KU 0.0 0
CU 3.0 1
BA 90.9 30
BS 6.1 2
IS 0.0 0
TOTAL 100.0 33
 PA Methods
Tools Advantages Disadvantages
Graphic Rating Scale Simple to use Standards maybe unclear
Quantitative rating Halo effect
Central tendency
Leniency
Bias
BARS Behavior Anchor Difficult to develop
BARS is very accurate

Alternation Ranking Simple to use Disagreements among employees

Avoids central tendency Unfair if all employees are
excellent

Forced Distribution Predetermined number or people in Result depends on our choice of

each group cutoff points
Method
Critical Incident Method Specify details about ‘right’ and Difficult to rate or rank employees
‘wrong’ relative to one another
MBO Agreement upon performance Time consuming
objectives
 Approachs

1. Setting Goal
Performance or KPI

2. Revise PA Form and

added it with the KPI