GCSE Business Studies Unit 2 Developing a Business Human Resources: Appraisal

Images © thinkstockphotos.co.uk Developing People Learning outcomes to be covered: Explain the reasons for and the importance of staff appraisal Analyse the advantages of appraisal for employers and employees Identify and evaluate the following methods of appraisal: Observation Self evaluation Interview Images © thinkstockphotos.co.uk

What is a staff appraisal? Performance appraisal, performance review or employee appraisal It is a way of evaluating the performance of employees to identify areas for development and their strengths It is carried out against set criteria and the organisations objectives It can take place monthly, quarterly, six monthly or annually depending on the organisation Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Reasons for Appraisal To identify training requirements To identify the skills gaps in employees To identify training needs of employees To identify the strengths of employees Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Reasons for Appraisal To give the employee feedback on their performance To use as a basis for rewarding an employee To review pay levels To set and review employee targets Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Activity – 10 minutes Working in groups identify the advantages of appraisal for the employee and employer. You can use the table below as your template. Employee Employer Images © thinkstockphotos.co.uk

Advantages of Appraisal Employees Opportunities for promotion Identifies training needs Opportunity to communicate with employer Sets objectives Employers Human Resource planning Increase in staff competence and productivity Highlights strengths and weaknesses, so employee can be used most efficiently Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Methods of Appraisal Observation – Employee is watched doing his/her job and their observation may be followed up with an interview. Advantages Employees are observed in usual surroundings Gives a true picture of employee’s work Disadvantages Employees may find it off-putting being observed Time consuming Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Methods of Appraisal Interview – one to one discussion between employee and supervisor/manager Advantages Opportunity to discuss performance and work issues Employees can have their say Disadvantages Employee and employer needs to be well briefed and prepared for the appraisal Employees may not be open and honest Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Methods of Appraisal Self-evaluation – looking critically at one’s own work Advantages Employee is given more responsibility which can be motivational Employee evaluates their performance against a set of criteria Disadvantages Employee may not be the best person to assess his/her own strengths and weaknesses If not prepared then the appraisal may not be effective Images © thinkstockphotos.co.uk

Sample Questions – 15 minutes Working individually complete the following past paper questions June 2016 question 1f June 2014 question 1e May 2013 question 1e June 2011 question1d Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Learning Check Do you know: The reasons for carrying out staff appraisal? The advantages of appraisal for both employers and employees? How to evaluate the following methods of appraisal observation, self evaluation and interviews? Images © thinkstockphotos.co.uk

Images © thinkstockphotos.co.uk Useful websites en.wikipedia.org/wiki/Performance_appraisal www.businessdictionary.com/definition/performance-appraisal.html www.bbc.co.uk/education/subjects/zpsvr82 Images © thinkstockphotos.co.uk