1. Performance Assessment Pertemuan 9 Matakuliah: L0074/Psikologi Industri dan Organisasi 2 Tahun: 2008

2. PERFORMANCE MANAGEMENT Definition  a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. BINA NUSANTARA2

3. 360 Degree for Performance Management RATINGS BY : Customer Satisfaction Subordinates rating Peers rating Bosses rating Self rating

4. 360 degree as psychometric Using 360 degree especially for customer, peers, and subordinates raters needs necessary statistical tests  questionnaires. When used ratings it’s like census not a sampling approach  because not all customers, peers and subordinates were covered.

5. PROS ON 360 DEGREE Quite cost-effective Because the area to be judged are made very explicit to a large number of people, these process also be seen as reinforcing messages about what the organization sees as important.

6. CONS OF 360 DEGREE Those undertaking the ratings needs to have knowledge of the relevant behaviours, & the opportunities to make the necessary observations to supply such knowledge are likely to differ from one rater to the other. Organizations rarely provide any training for 360 degree  biases such as halo effect. Conflict between bosses & peers in giving rating. People can seen it as “yet another” piece of bereaucratic administrivia. People do not have an equal balance all around  subordinate giving ratings to his/her manager.

7. PERFORMANCE MANAGEMENT DAY TO DAY – CONTROL & FEEDBACK Feedback  effective  needs to be timely & specific Feedback can be seen as positive and negative. Feedback can be a daily debrief.

8. PERFORMANCE APPRAISAL Appraisal have commonly been used with the purpose of reviewing performance over the previous period and setting some standards and objectives for the future. Some people see it as determining pay rises. Another definition  a tools to evaluate an employee’s performance  observable & describable results of that’s person work.

9. THE TERM OF PERFORMANCE APPRAISAL Appraisal (of performance) take place at regular intervals. A standardized method is used, on the grounds of previously agreed upon performance criteria/ Either the employee’s behaviour or outcome of performance is to be evaluated. The employee is evaluated by the next higher-ranking superior, equally ranking colleagues, other coworkers or makes a self-appraisal.

10. PERFORMANCE APPRAISAL PROCESS 1. Determine purpose of appraisal 2. Identify environmental and cultural limitations 3. Determine who will evaluate performance. 4. Select the best appraisal methods to accomplish goals. 5. Train trainers. 6. Observe and document performance Provide immediate feedback as needed 7. Evaluate performance 8. Communicate appraisal results to employee 9. Make personnel decisions BINA NUSANTARA10 As needed Annually Daily

11. Step 1. Determine the reason for evaluating Employee Performance Determining Salary Increases Making Promotion Decisions Providing Employee Training and Feedback Making Terminations Decisions Conducting Personnel Research BINA NUSANTARA11

12. Step 2. Identify Environmental and Cultural Limitations Because it could affect the system, e.g. supervisors are highly overworked, an elaborate, time-consuming performance appraisal system will not be successful BINA NUSANTARA12

13. Step 3. Determine who will evaluate performance Supervisors Peers Subordinates Customers Self-Appraisal BINA NUSANTARA13

14. Step 4. Select the Best Appraisal Methods to Accomplish Your Goals Decision 1 : Focus of the Appraisal Dimensions - Trait-Focused Performance Dimensions - Competency-Focused Performance Dimensions - Task-Focused Performance Dimensions - Goal-Focused Performance Dimensions - Contextual Performance BINA NUSANTARA14

15. Decision 2 : Should Dimensions Be Weighted?  which one more important than other. Decision 3 : Use of Employee Comparisons, Objective Measures, or Ratings - Employee Comparisons  rank order - Objective Measures  quantity of work,quality of work, attendance, safety. - Rating of performance  graphic rating scale, behavioral checklists, Comparison with other Employee, frequency of desired behaviors, extent to which organizational expectations are met. BINA NUSANTARA15

16. Step 5. Train Raters Because few organizations spend the time and resources necessary to do this properly. Raters that have been trained become aware of the various rating errors and how to avoid them often increase accuracy, and increases employee satisfaction with the ratings. BINA NUSANTARA16

17. Step 6. Observe and Document Performance Document Critical Incidents as they occur. Critical Incidents are examples of excellence and poor employee performance. Should be communicated to the employee at the time they occur. BINA NUSANTARA17

18. Step 7. Evaluate Performance Obtaining & Reviewing Objective Data Reading Critical – Incident Logs Completing the Rating Form BINA NUSANTARA18

19. Step 8. Communicate Appraisal Results to Employee Prior to the interview - Allocating time - Scheduling the interview - Preparing for the interview During the Interview It’s a good idea to begin with some small talk. BINA NUSANTARA19

20. Step 9. Terminate Employee Legal aspect will be different for every country  Hukum Tenaga Kerja Indonesia BINA NUSANTARA20

21. BINA NUSANTARA21 THE END