Performance Appraisal

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© 2006 Thomson-Wadsworth
Learning Objectives
• State the reasons for having a
structured orientation program for new
employees.
• List the components of new employee
orientation programs.
• Describe the purpose of using an
orientation checklist.
• Differentiate between organizational
orientation and orientation to the job.
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Learning Objectives
• Describe the purpose of in-service
training programs.
• Differentiate between in-service training
and continuing education.
• Describe ways in which employees are
supported in continuing education
endeavors.
• State the reasons for conducting
performance appraisals.
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Learning Objectives
• Describe how performance appraisals
are conducted.
• List the characteristics of effective
compensation programs.
• Identify the relationship between
motivation and compensation.
• Differentiate among components of
compensation packages, including merit
increases, cost-of-living adjustments,
single pay rates, and pay for
performance.
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Learning Objectives
• Discuss non-monetary methods of
motivating employees.
• Describe the relationship between
motivation and job mobility.
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Employee Orientation
• Orientation
– The process of introducing a new employee
to an organization, job, and work unit.
• Orientation to the job
–
–
–
–
–
Outline of the day
Introduction to staff
Tour of the workplace
Guidance in use of equipment
Explanation of duties
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Employee Orientation
• Orientation to the job
– Written job analysis/job description may be
provided
– Mentor - A person whom one with less
experience may consult for advice and
guidance.
– Orientation Checklist - A document that
lists all of the items that are to be
accomplished or introduced during a new
employee orientation.
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Employee Orientation
• Orientation to the
organization
– May be conducted
individually or in
groups
– Introduction to
organizational
philosophy/mission
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Employee Orientation
• Orientation to the organization
– Explanation of benefits package
– Tour of entire facility
– Orientation Packet - An information
packet handed out during an orientation
that may include such items as information
on benefits, a map of the facility, a list of
commonly used telephone numbers and
Internet addresses, a copy of the
organization chart, and so on.
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In-Service Training
• In-Services - Educational activities
that are designed to update and
introduce employees to new issues or
topics pertinent to their jobs and
organization, or to review and refresh
employees on material that is already
known.
• They usually occur at the workplace and
during work hours.
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In-Service Training
• Two general types:
– Brief work-related training sessions
that occur in the workplace
– Longer, more
extensive training
sessions that
require time off
from duties and
often occur
off-site
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In-Service Training
• Off-site in-services are often used
to introduce new things
• Employees may earn educational
credits
• Off-site in-services may be
presented by specialists trained in
conducting such events
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Continuing Education
• Continuing Education Educational activities that are
conducted by an external
organization and that take place
outside of the workplace.
• ex: trade shows, educational
workshops or seminars, college or
university courses
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Continuing Education
• May be subsidized in several ways:
– Paid days off to attend
courses/events paid for by employee
– Payment of course/event costs by
employer
– Tuition reimbursement for college/
university courses
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Performance Appraisal
• Performance Appraisal - A tool
used by managers to evaluate
personnel and to help employees
identify their strengths as well as
areas that need improvement.
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Performance Appraisal
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Performance Appraisal
• Timing is often specified by
organizational policy
• Usually, a standard evaluation
document is completed
– Deals with whether employee met goals
established at previous interview
– ex: Figure 2.2 Performance Evaluation for a
Diet Clerk
• Manager meets with employee to
discuss documents
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Compensation Issues
• Merit Increases
– Pay raises that are based on
employee performance.
– These raises change the base pay
rate permanently.
– Often, a position has a salary range
to accommodate incremental merit
increases.
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Compensation Issues
• Cost of Living Adjustments
(COLAs)
– Pay raises that are based on inflation
rates and are used to keep an
employee’s purchasing power intact
despite economic changes over time.
– These raises change the base pay
rate permanently.
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Compensation Issues
• Single rate systems
– Single Rate - Pay raises that are universal
and given to all employees either on an
anniversary date or on an annual basis.
– It rewards employees equally, as long as
their work falls within the standard range.
– This pay increase results in a permanent
adjustment in the base pay rate.
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Compensation Issues
• Pay for Performance
– Incentive pay programs that may be
used alone or in combination with
other compensation plans to reward
employees based on performance.
– These are one-time incentives that do
not change the base pay rate.
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Compensation Issues
• Pay for Performance
– Annual Bonus - One type of pay for
performance that is earned at the end of
the year for outstanding performance
during that year.
• It usually results from meeting a pre-established
goal.
• This is a one-time bonus that does not change the
base pay rate.
– Variable Pay - A compensation plan in
which an employee receives a base salary
or hourly wage and then an added bonus
based on performance.
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Compensation Issues
• Pay for Performance
– Cash Award - A pay for performance
plan that awards cash to employees
for being creative, innovative, helpful,
or just good citizens.
• It is usually a one-time award.
– Employees may also be awarded for
skill development.
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Nonfinancial Incentives
• Special parking
place
• News release
• Certificates,
plaques,
trophies
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Nonfinancial Incentives
• Workplace displays recognizing group
achievements
– ex: drawing of thermometer to represent
sales goals and progress
•
•
•
•
Verbal praise
Additional training in the workplace
Departmental subscriptions to journals
Openness to staff suggestions
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Job Mobility
• Job Mobility - The ability of an
employee to change jobs.
• Moves can be downward, upward,
or lateral within an organization, or
to another organization.
• Downward Mobility - When an
employee reverts to a previous or
lower position in an organization.
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Job Mobility
• Upward Mobility - When an
employee is promoted to a higher
position in an organization.
• Lateral Move - When an
employee takes a new position at
the same organizational level as
the former position.
– This is sometimes done so the
employee can learn new skills.
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Conclusion
• New employees need to be welcomed
into an organization with an orientation
both to the job and to the organization
itself.
• Employee development includes both
internal programs, called in-services,
and continuing education opportunities
outside of the organization.
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Conclusion
• Performance appraisals are an effective
tool for managers and employees to
evaluate performance and to set goals
for future development.
• Organizations use different kinds of
compensation programs to motivate
employees to perform well and to
reward them for good performance or
longevity.
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Conclusion
• Compensation programs should be
competitive, allow for employee growth,
be well defined, and be equitably
administered.
• Nonfinancial motivational tools, though
not always as effective as financial
ones, can be used as a substitute for, or
in conjunction with, financial incentives.
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Motivation in a Union
Environment
• Unions:
– Negotiate
• Wages and differential wages,
• Work hours,
• Insurance benefits,
• Workman’s compensation,
• Paid time off, and
• Working conditions
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Motivation in a Union
Environment
• Unions:
– Define
• What constitutes the worker’s jobs, which
can only be done by union members, and
• What constitutes management jobs that
cannot be done by represented
employees
• The results are finalized as a
contract that usually lasts for a
specified period
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Motivation in a Union
Environment
• Motivational tools available to
management are limited by the
contract(s)
• Creative motivation
– Conduct thorough, timely performance
appraisals
– Nonfinancial programs
• ex: "Employee of the Month"
– Verbal praise
© 2006 Thomson-Wadsworth
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