09 Performance Management and Appraisal

Continuing Case:

Carter Cleaning Company

Prepared byGroup Dynamic

Kelvin Lye, Wong Shwu Fen & Masood

Performance Management and Appraisal

Attracting – DEVELOPING - Keeping

Case Details

Problem? No formal evaluation of employee’s performance for all these years

Reasons?1. Jack has many other priorities (boosting

sales, lowering cost etc.)2. Staff turnover (employees not staying long

enough to be appraisable)

How?(Informal

)

Manual Workers• Praise them for job

well done• Give criticism when

things don’t look right

Managers• Inform them directly

about store problems• Give useful feedback

on where they stand

Case Details

Solution?

Use more formal appraisal approach

Manual Workers• Include criteria such as

1. Quality2. Quantity3. Attendance4. Punctuality

Managers• Include a list of quality standards

for matters such as1. Store cleanliness2. Efficiency3. Safety4. Adherence to budget

What should be included?

Questions

Question 1Is Jennifer right about the need to evaluate the workers formally? The managers? Why or why not?

Question 2Develop a performance appraisal method for the workers and managers in each store.

Question 1Is Jennifer right about the need to evaluate the workers formally? The manager? Why or why not?

Jennifer right?

Need to evaluate the workers and manager formally

Why?

YES!


Why?

Through formal performance appraisal,manager and workers will know• Scope of appraisal• Guidelines of appraisal • Consequence action related to

appraisal result.

Translate the employer’s goals into specific employees’ goals (Manager and workers’ goals aligned with CCC’s goal)

Store manager and workers assist in1. Identify and set the expected goal

(SMART)2. Avoid counter productivity goal


Why?

Standards of performance

Manual Workers• Include criteria such as

1. Quality2. Quantity3. Attendance4. Punctuality

Managers• Include a list of quality standards for

matters such as1. Store cleanliness2. Efficiency3. Safety4. Adherence to budget

Through formal performance appraisal,manager and workers will know• Scope of appraisal• Guidelines of appraisal • Consequence action related to

appraisal result.


Why?

Manager and workers will have an appointment for developing a plan

• for correcting any deficiencies• to reinforce the things that managers

or workers do correctly.

Many employees didn’t stick around long enough to be appraisable

Positive feedback

Negative feedback

Promotion or salary arise

Need training or counseling

Solve the problem

Consequence action related to appraisal result


Why?

Result of appraisal is exhibited manager or workers’ strengths and weaknesses

Career planning decision

Affect

• Provide opportunity to review the manager’s or the worker’s career plans

BACK

Question 2Develop a performance appraisal method for the workers and store managers in each store

A perfect appraisal method could be achieved over time, but at the moment we recommend the following appraisal method for Workers and Managers at CCC to best meet the owner’s ends.

A perfect appraisal method could be achieved over time, but at the moment we recommend the following appraisal method for Workers and Managers at CCC to best meet the owner’s ends.

Question 2Performance appraisal method for the workers

Effective appraisal method?

We need to1. Measure the work output2. Base our appraisal on actual job duties

1. Graphical scales in this specific case2. Behaviorally Anchored Rating Scale

(BARS) with lower considerationRecommended techniques?Appraiser

?Feedback

?

Store manager

Given by store manager


Graphical Scales

• Provides the appraiser with easily interpretable data

• The preferred traits are listed with a range of performance.

Quality Quantity Attendance Punctuality

In this example, what are the preferred traits?In this example, what are the preferred traits?


Excellent“the Worker performs with highest motivation and dedication”

Very Good“Very Good performance, but no extra”

Satisfying“the Worker

performs his work, but not at his best”

Bad“The worker fails to

perform well, intentionally or unintentionally

Very bad“The worker performs intentionally bad, and decreases quality”

Quality“in terms of quality, is his work output satisfying customers?”

Quantity“in terms of quantity, does he work efficiently, or just wastes time wandering around”

Attendance“in terms of attendance, is the worker always attending work?”

Punctuality“in terms of punctuality, is the worker on time?”

Graphical Scales - Example


Outstanding

Terrible

Satisfying

Bad

-Arrives at the shop few minutes before opening.

-Arrives at the shop sharp on time.

-Arrives at the shop within one hour after opening.

-Arrives at the shop between two to three hours after opening.

-Arrives at the shop after four hours.

Behaviorally Anchored Rating Scale

• Provides the appraiser with numerical scale to evaluate workers regarding one of their most critical behaviors.

A critical incident considering punctuality could be:A critical incident considering punctuality could be:

Question 2Performance appraisal method for the store managers

Effective appraisal method?

We need to1. Measure the personal competencies

and objective achievements2. Base our appraisal on generic

dimensions and actual job duties

1. Management by Objectives (MBO) in this specific case

2. Graphical Scales with lower considerationRecommended techniques?Appraiser

?Feedback

?

Jennifer or other directors

Given by Jennifer or other directors


Management by Objectives (MBO)

• Provides the appraiser with deeper goal setting of the organization

• Organizational-wide goals are better measurable using MBO, especially for shop managers.

CCC branch-wide goals:1. Quality in terms of cleanliness2. Quality in terms of work safety3. Quality in terms of work efficiency4. Quality in terms of financial

management

• As there is no departments, the goals are discussed within the framework of branches.

• All branches have the same structure, hence the expected results would be the same for the job description of the store managers.

In this example?In this example?


Management by Objectives (MBO)Example


Graphical Scales

• Provides the appraiser with easily interpretable data

• The preferred traits are listed with a range of performance.

Efficiency Cleanliness Safety Adherence to budget

In this example, what are the quality standards?In this example, what are the quality standards?

Progress Rating of success and effectivenessObjective 1:Safety: In Terms of Safety, how has the manager performed in applying TQM in terms of Safety in the work area?

Outstanding Dissatisfying

Objective 2:Cleanliness: In terms of 5 s of operation in the shop, how has the manager performed to maintain neat and clean work area?

Objective 3: Efficiency: In Terms of Efficiency , how has the manager performed to reduce unnecessary costs?

Objective 4:Adherence to budget: In Terms of Budgeting, how has the manager performed to maintain financial balancing fit?

Graphical Scales - Example


Acknowledgement

Thank You!

Documents

09 Performance Management and Appraisal