Performance Appraisal
Team 9
Niina Saarinen
Helen Jiang
Miia Wahlroos
Laura Malin
Agenda
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What Performance Appraisal Is?
Purposes
Development of Appraisal Program
Training of Appraisers
Implementation
Appraisal Interviews
Conclusions
What Performance Appraisal Is?
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Evaluation of the employees
Many different methods
Not a punitive process
Linked to company goals
Administrative Purposes
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Compensation
HR functions: promotion, transfer, layoff
HR planning
“Paper trail”
Influences employee behavior
=> improves organizational performance
Developmental Purposes
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Eliminate problems
New goals
Training needs
Individual development
– Feedback and discussions
– Possibility to improve job performance, not only
evaluate past
Performance Standards
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Strategic relevance
Criterion deficiency
Criterion contamination
Reliability
Development of the Program
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Organizational chart
Cultural characteristics of BP-Centro
General rating methods
Sample items of appraisal form
Cultural Characteristics
• Appraisal - an unfamiliar concept
– Traditionally only hard facts measured
– Qualitative sides neglected
• Finns tend to be discrete
– Avoid negative feedback
– Seldom discuss personal traits
• Russians and Baltics are different from Finns
General Rating Methods
• Trait Approaches
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Graphic rating-scales
Mixed-standard scales
Forced-choice forms
Essay method
• Results Methods
– Management by objectives (MBO)
General Rating Methods cont.
• Behavioral Methods
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Critical incident rating
Behavioral checklist
Behaviorally anchored rating scale (BARS)
Behavioral observation scales (BOS)
Sample Items
• General skills
• Management/Leadership skills
Management Skills
Actual
5 4 3 2 1
-Planning
-Organization
-People development
-Decision making
-Control
Ranking A B C D E
Requested by position
5 4 3 2 1
Comments
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Training of Appraisers
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Explain the objectives
Define the standards
Avoid misunderstanding
Reduce biases
Using the form
– Scales and rankings
– Comments serve as references for interview
Implementation
• CEO
• Country and functional mangers
• Regional, facility and assistant facility
managers
CEO Appraisal
• Annually
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Self-appraisal
HQ
Functional managers
Country managers
• Semi-annually
– MBO
MBO
A philosophy of management that has
employees establish objectives through
consultation with their superiors and
then uses these objectives as basis for
evaluation.
MBO Requirements
• Co-operation
• Objectives easily quantifiable
• The employees can control the process and
outcome
• Consistent goals
• Review times specified
MBO Advantages
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Mutual goal setting
Reward and promotion decisions
Objectives defined
Performance improved
Co-operation improved
MBO Disadvantages
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Time consuming
Costly
Some goals difficult to measure
Hard to get full commitment
Functional and Country Managers
• Annually
– Self-appraisal
– 360-degree appraisal
• Semi-annually
– MBO
Regional, Facility and Assistant
Facility Managers
• Annually
– Self-appraisal
– 360-degree appraisal
360-Degree Method
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Appraisal by manager and/or supervisor
Subordinates
Peers (teams)
Customers
360-Degree Advantages
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Comprehensive system
Quality of information
Lessens bias/prejudice
Complements TQM
Increases employee self-development
360-Degree Disadvantages
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Administratively complex
Feedback can be intimidating
Conflicting opinions
Invalid evaluations
To Ensure Quality and Acceptance
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Assure anonymity
Use statistical procedures
Identify and quantity biases
Make respondents accountable
Prevent “gaming” of the system
=> Training
Appraisal Interview
• Training the interviewers
• Data analyzing
– HR department
• Face to face conversations
– Feedback
– Training needs
Conclusion
• Highly related with compensation plan
• Successful appraisal program can eliminate
the misunderstandings between employees
• It helps employee improve their future
performance
• It guarantees the achievement of company’s
goals.
Thank You for Your Attention!
Questions?