Performance Appraisal Mohsin, Putri Saniyah Fullerton, Christopher Rautajuuri, Ilkka

Agenda Introduction  Definition  Purposes of performance appraisal How to develop an effective program  Who is involved?  The evaluated are…  Performance appraisal in Finland  How to convince the employees that is not a punitive process Appraisal methods  MBO  Conclusion

Introduction Definition Purposes of performance appraisal Performance appraisal in Finland Why BP-CENTRO must use this approach

Definition Performance appraisal are very helpful tools an organization can use to maintain and enhance productivity and facilitate progress toward strategic goals. They can serve many purposes that benefit both the organization and the employee whose performance is being appraised

Definition (continue) They give employees the opportunity to discuss performance with supervisors They provide the supervisor with a means of identifying the strengths and weaknesses of an employee’s performance They provide a basis for salary recommendations

The most common uses of performance appraisal are:  Administrative Purposes: they provide input that can be used for the entire range of HRM activities (ex. Compensation decisions)  Developmental Purposes: they provide the feedback essential for discussing strengths and weaknesses as well as improving performance Purposes of Performance Appraisal

How to develop an effective program Who is involved? Who is evaluated? What is the frequency? How to convince employees that this is not a punitive process?

Who is involved ? To develop an effective program, the HR department has to take the primary responsibility for co-ordinating the activities with the managers from the other departments whom must be actively involved in helping to establish the objectives for the program Later, give the chance to participate low level employees

The evaluated are: CEO BP-CENTRO: ==> Annually, MBO Top Managers: ==> Annually, MBO Country managers: ==> Annually, MBO, Regional managers:==> Annually, MBO, Facility managers: ==> Quarterly, MBO, Facility assistants: ==> Quarterly, 360 0

Performance Appraisal in Finland Appraisal system is very familiar to every Finnish company and the managers are used to work with this system In Eastern European Countries and Russia this system is not that familiar as it is in Finland

How to convince employees that is not a punitive process? In Finland it should not be a problem In Eastern Europe and Russia, before implementing the appraisal system, it should be an introduction. (Ex. Seminars, take employees to Finland and show how the system works, etc)

Appraisal Methods Management by objectives 360 0

Management by objectives measures performance on the basis of employee achievement of goals set by mutual agreement of employee and manager Why MBO is chosen?  The system acts as a goal setting process whereby objectives are established for the organization (BP- CENTRO), and departments, and individual managers and employees (country, regional and facility managers)

BP-CENTRO MBO PROGRAM CEO Organization’s common goals. Finance, Marketing, HR, Logistics managers Departments’ specific goals Country, regional, facility and assistant facility manager lists goals and measures for subordinate Country, regional, facility and assistant facility manager proposes goals and measures for his or her job Review period providing feedback on results measures against establish goals Joint agreement on goals New input provided Inappropriate goals eliminated Review of organization performance Final review of results measures against establish goals

360 0 Is an all-rounder form of evaluating employees’ performance from all angles that includes supervisors, peers, subordinates and customer Quality of information is better than other systems It may lessen bias/prejudice because feedback comes from more people

Conclusions The success of an organization depends largely on the performance of its human resources and how they design effective appraisal programs Performance appraisal programs give the basis to compensation