2Learning ObjectivesDefine performance appraisal and clarify the supervisor’s role in the process.Explain how often performance feedback should be provided.Discuss the advantages of a formal performance appraisal system.Explain the concepts and techniques in using a written employee appraisal form.
3Learning ObjectivesDiscuss the process of conducting an effective appraisal meeting.6. Discuss coaching as a follow-up to performance appraisal.Identify the benefits of a promotion-from-within policy.Discuss the supervisor’s rolein employee compensationand outline the goals of aneffective compensationprogram.
4Performance Appraisal A systematic assessment of how well employees are performing their jobs and the communication of that assessment to them.
5Performance Appraisal Regular feedback on performance is essential to improve employee performance and to provide the recognition that will motivate employees to sustain satisfactory performance.
6EvaluationSupervisor’s evaluation—the immediate supervisor is the best person to observe and judge performancePeer evaluation—peers with close working relationships may know more than the supervisor about employee contributionsSelf-evaluation—supervisors can supplement their judgments with a self-evaluation
7Evaluation360-degree evaluation—performance appraisal based on data collected from around the employee—from customers, vendors, supervisors, peers, subordinates, and so on.
8Timing Performance Appraisals Ongoing feedback throughout the year, both positive and negative, rewards good performance and fosters improvement.
9Advantages of a Formal Appraisal System Provide systematic judgments to support salary increases, promotions, transfers, layoffs, demotions, and terminations.Means of telling subordinates how they are doing and of suggesting needed changes in behaviour, attitudes, skills or knowledge.Help supervisors coach and counsel.
10Value of Performance Appraisals Who should be promoted?Who should get merit raises?What should be the raise differential?Who needs training?What training do they need?Does an employee need coaching or discipline?Do you have adequate documentation?
11Performance Appraisal Process Completing a written appraisal formConducting an appraisal interview
12Some Measures of Performance SafetyAptitudeAdaptabilityQuantity and quality of workAbility to learnCustomer orientationAppearanceJob knowledgeTimeliness of outputPositive and negative effects of effortDependabilityInitiativeIdeas generatedCooperation
13Making It FairNot all raters agree on the meaning of “exceptional,” “good,” “fair,” etc.Some supervisors may be more severe.Some supervisors may be overly generous.Supervisors should use performance standards.
14Purpose for the Appraisal Meeting Let employees know how they are doing.Formally praise employees.Help employees develop good future performance.Explain opportunities for growth.Explain behaviour that needs correcting and improvement.
15Conducting the Meeting Hold meeting shortly after appraisal form is completed. State the purpose of the meeting.Review employee’s achievements.Identify strengths.Discuss areas that need improvement.Limit criticisms to a few major points and mix in positive statements.
16Difficult Responses You hired me. How can I be so bad? You’re just out to get me.You don’t like my lifestyle.This evaluation is not fair!I didn’t know that was so important. You never told me.My job depends on getting good work from others.
17Closing the MeetingBe certain the employee clearly understands their ratings.Agree on mutual goals.Set a date to discuss progress towards goals.Ask the employee to sign the form if required.Review appraisals with managers or HR if required.
18Improving Performance Let people know what is expected.Set clear and high goals.Find out what you can do to help.Supervise and coach employees so they can succeed.Catch people doing something right.
19Improving Performance Give timely feedback.Thoroughly document performance.Solicit feedback about your own performance.There is no substitute for daily performance feedback.
20CoachingGiving employees information, instructions, and suggestions relating to their job assignments and performance.If you want your people to be high performers (winners), then you need to help them get there (coach).
21PromotingMost employees are more motivated when they see a link between excellent performance and promotion.More interesting workHigher pay and statusBetter working conditions
22Promoting from Within Seniority—length of service Merit—quality of job performanceAbility—potential to perform higher-level tasks
23Objectives of Compensation Program Eliminate pay inequitiesEstablish sufficiently attractive pay ratesConduct periodic employee merit ratingsControl labour costsReward employees for performance and improvement
24Employee Incentives Pay for performance Piecework Skill-based pay Suggestion plans
25Employee Benefits Vacations with pay Holidays Retirement plans Insurance and health programsTuition-aid programsEmployee-assistance programs