1. Performance Appraisal Team 9 Niina Saarinen Helen Jiang Miia Wahlroos Laura Malin

2. Agenda What Performance Appraisal Is? Purposes Development of Appraisal Program Training of Appraisers Implementation Appraisal Interviews Conclusions

3. What Performance Appraisal Is? Evaluation of the employees Many different methods Not a punitive process Linked to company goals

4. Administrative Purposes Compensation HR functions: promotion, transfer, layoff HR planning “Paper trail” Influences employee behavior => improves organizational performance

5. Developmental Purposes Eliminate problems New goals Training needs Individual development –Feedback and discussions –Possibility to improve job performance, not only evaluate past

6. Performance Standards Strategic relevance Criterion deficiency Criterion contamination Reliability

7. Development of the Program Organizational chart Cultural characteristics of BP-Centro General rating methods Sample items of appraisal form

8. Cultural Characteristics Appraisal - an unfamiliar concept –Traditionally only hard facts measured –Qualitative sides neglected Finns tend to be discrete –Avoid negative feedback –Seldom discuss personal traits Russians and Baltics are different from Finns

9. General Rating Methods Trait Approaches –Graphic rating-scales –Mixed-standard scales –Forced-choice forms –Essay method Results Methods –Management by objectives (MBO)

10. General Rating Methods cont. Behavioral Methods –Critical incident rating –Behavioral checklist –Behaviorally anchored rating scale (BARS) –Behavioral observation scales (BOS)

11. Sample Items General skills Management/Leadership skills Management SkillsActualRequested by position Comments 5 4 3 2 1 5 4 3 2 1 ________ -Planning ________ -Organization ________ -People development ________ -Decision making ________ -Control ________ Ranking A B C D E

12. Training of Appraisers Explain the objectives Define the standards Avoid misunderstanding Reduce biases Using the form –Scales and rankings –Comments serve as references for interview

13. Implementation CEO Country and functional mangers Regional, facility and assistant facility managers

14. CEO Appraisal Annually –Self-appraisal –HQ –Functional managers –Country managers Semi-annually –MBO

15. MBO A philosophy of management that has employees establish objectives through consultation with their superiors and then uses these objectives as basis for evaluation.

16. MBO Requirements Co-operation Objectives easily quantifiable The employees can control the process and outcome Consistent goals Review times specified

17. MBO Advantages Mutual goal setting Reward and promotion decisions Objectives defined Performance improved Co-operation improved

18. MBO Disadvantages Time consuming Costly Some goals difficult to measure Hard to get full commitment

19. Functional and Country Managers Annually –Self-appraisal –360-degree appraisal Semi-annually –MBO

20. Regional, Facility and Assistant Facility Managers Annually –Self-appraisal –360-degree appraisal

21. 360-Degree Method Appraisal by manager and/or supervisor Subordinates Peers (teams) Customers

22. 360-Degree Advantages Comprehensive system Quality of information Lessens bias/prejudice Complements TQM Increases employee self-development

23. 360-Degree Disadvantages Administratively complex Feedback can be intimidating Conflicting opinions Invalid evaluations

24. To Ensure Quality and Acceptance Assure anonymity Use statistical procedures Identify and quantity biases Make respondents accountable Prevent “gaming” of the system => Training

25. Appraisal Interview Training the interviewers Data analyzing –HR department Face to face conversations –Feedback –Training needs

26. Conclusion Highly related with compensation plan Successful appraisal program can eliminate the misunderstandings between employees It helps employee improve their future performance It guarantees the achievement of company’s goals.

27. Thank You for Your Attention! Questions?