MOD 5

• PERFORMANCE APPRAISAL - evaluation of an employees performance to provide meaningful information to assess individual needs for improvement

  *performance management

  *performance evaluation

  *performance measurement
• PURPOSES OF PERFORMANCE APPRAISAL


  1. Developmental purposes

  • facilitate employee development
  • enhance employee motivation
  • 2. Strategic purposes
  • link between tasks and activities of an employee to the goals of the organization
  • undertake research
  • 3. Administrative purposes
  • determine appropriate rewards and compensation
  • undertake decision on employee movement
• CHARACTERISTICS OF A GOOD PERFORMANCE APPRAISAL

  1. Clarity of Purpose

  • must be clear on its objectives
  • 2. Well-discussed expectation for the job
  • have prior analysis of the job, including duties and responsibilities
  • 3. Alignment of performance appraisal goals with organizational goals is understood
  • conducted to help achieve an organization's objectives
• II. POLICY DECISION

  A.1. WHO evaluates

  
  

  Supervisors

  • role conflict / incompatible demands on employee which can be challenging to accomplish
  • motivation
  • time availability
  • friendship factor

  
  

  Coworkers (peers)

  • friendship bias
  • leniency
  • high level of accuracy
  • used as source of feedback
• II. POLICY DECISION

  A.1. WHO evaluates

  SELF

  • lots of knowledge
  • leniency effect
  • good preparation for performance appraisal

  SUBORDINATES

  • bias
  • best if rating are anonymous, if not, leniency in ratings occurs
  • can add information

  CLIENT

  • good source of feedback
  • negativity bias
  • ratings on web
• 360 DEGREE PERFORMANCE APPRAISAL METHOD - involves anonymous rating
• II. POLICY DECISION

  A.2. WHAT to evaluate

  1. Traits-based measures - eg. industriousness, cheerfulness, and patience
  2. Behavior-based measures - assessing employees willingness to initiate
  3. Results-based measures - ex. no of satisfied customers
• II. POLICY DECISION

  A.3. HOW to evaluate

  1. Formal Method - survey, questionnaires, customer feedback
  2. Informal Method - interview, group discussions, telephone calls
  3. Absolute Measure - assessment based on specific performance standard
  4. Relative Measure - comparing the evaluation result to other
• II. POLICY DECISION

  A.4. WHEN to evaluate

  • managers usually conduct P.A on annual basis, however, it can be scheduled anytime the top management wants them for a specific purpose
• EMPLOYEE RELATIONS - the company efforts to enhance and maintain peaceful, productive relations between management and employee
• EMPLOYEE RELATIONS - also called LABOR-MANAGEMENT RELATIONS
• LABOR UNIONS - formal association formed by workers
• COLLECTIVE BARGAINING - a member from the union meets with a representative of management to discuss and negotiate specific issues raised by the union concerning compensation and work conditions
• EMPLOYEE RELATION IN NON UNIONIZED COMPANIES - managers develop employee relationship by having a proactive approach to promote workers welfare
• IV. EMPLOYEE MOVEMENTS

  Promotion

  • upward movement of employees
  • increase in rank
• IV. EMPLOYEE MOVEMENTS

  Separation

  • may be involuntarily/voluntarily
  • occur due to justification reasons or authorized causes

  
  

  INVOLUNTARY SEPARATION - termination by employer

  
  

  ECONOMIC GROUNDS - company are forced to lay off workers ir close the establishment due to downfall

  
  

  TERMINATION - classified as involuntary when employee is dismissed due to grave act done

  
  

  VOLUNATRY SEPARATION - job resignation by employee
• IV. EMPLOYEE MOVEMENTS 


  Retirement - ending employment when reaches the retirement age

  • under labor code, regular employees are entitled to retirement benefits
  • entitled to retirement pay equivalent to 1 half month salary for every year of service, a fraction of atleast 6mos