Module 3 Flashcards
(29 cards)
Steps in the performance appraisal process
Step 1: Set performance objectives and standards
Step 2: Perform day to day performance coaching
Step 3: Perform formal performance review and appraisal
Step 4: conduct annual performance appraisal
Step 5: Forward appraisal ratings to the HR department
Objectives of performance appraisal
-control the performance of employees against previously set performance standards
-identify the extent to which employees are performing effectively
-identify performance problems and improve the performance of employees
-Ensure that employees are rewarded fairly
-assist with HR planning as it provides a method of career planning
Roles and responsibilities in the performance appraisal
Employees are responsible for performing to their beat ability.
Managers and supervisors are responsible for managing the performance of employees
HR department is responsible for:
Providing guidance to managers on appraisal profiles
Administering the system for the organisation
Potential pitfalls of performance appraisal
Impact on employee trust and initiative
Impact on teamwork
Lack of recognition of risk taking
Information problem.
Poor measurement of quality
Administrative load
Actual impact
Trade union opposition
Design problems
Inappropriate standards
Results are ignored
Potential pitfalls of performance appraisal
Impact on employee trust and initiative
Impact on teamwork
Lack of recognition of risk taking
Information problem.
Poor measurement of quality
Administrative load
Actual impact
Trade union opposition
Design problems
Inappropriate standards
Results are ignored
Different approaches to performance appraisal
The traditional approach : conducted by relevant department manager
Peer ratings: rated by coworkers
Self appraisal : employee evaluates themself
Subordinate appraisal : evaluation of management skills of supervisor
360 evaluations: done by daily contacts of an employee
Management by objectives
An evaluation method that is often used in the oerocess of performance appraisal and employee development and where the supervisor and employee wm jointly decide on what the employee needs to accomplish
MBO disadvantages
Management might not be able to reward the employee for goals achieved
Short term success is overly stressed
Many supervisors do not understand the strategy and get have to implement it
Goals are seldom adapted as a situation changes
Supervisory staff are burdened with too much paperwork and record keeping
MBO advantages
Enhanced communication between management and the employee
Improved quality of life
Effective control as work is broken down into measurable units
Opportunity for creative thinking and personal involvement on the part of employees
Efficiency is reached in tasks where performanxe is monitored
MBO advantages
Enhanced communication between management and the employee
Improved quality of life
Effective control as work is broken down into measurable units
Opportunity for creative thinking and personal involvement on the part of employees
Efficiency is reached in tasks where performanxe is monitored
Job analysis methods
Individual interviews
Observation
Structured questionaires
Self report
Diaries and logbooks.
Checklists
Purpose of job evaluation
To assist I drawing up job descriptions and job specifications that are objective.
To determine objective remuneration criteria for new jobs
To assist in remuneration negotiations and to justify existing reward management system
Limitations to job evaluation
It is costly to implement and maintain
Introducing job evaluation may upset long standing salary differentials
There is a danger of oversimplification.
Job evaluation relies on human judgements.
Averaging does not make the system more objective
Reward management
The management of a system where individuals are rewarded for their work diligence and level of performance within an organisation with financial incentives
Components of a reward management system
Financial components: the remuneration or paying of salaries, and granting the benefits and subsidies according to the level that the employees are in the organisation
Salary
A salary is the remuneration paid to a permanent member of staff, where the employee is paid a similar amount at regular intervals
Take home pay
The amount of money that the employee receives after deductions such as income tax and unemployment insurance
Bonus
An amount of money paid to employees over and over their agreed upon remuneration.
Bonus
An amount of money paid to employees over and over their agreed upon remuneration.
Fringe benefits
Pension schemes
Personal security benefits
Personal needs
Financial assistance
Company cars and fuel
Improvements to standard of living benefits
Advantages of fringe benefits
Motivate employees and increase their commitment
Provide for the needs of the employees
Demonstrates that the organization cares for the needs of its employees
Provides a tax efficent method of remuneration
Factors that influence the introduction of fringe benefits
The nature of the organisation
Labour market conditions
Annual changes to the income tax regime
The extent to which benefits satisfy individual needs
Labour union participation in the determination of benefits for various levels of employees
Problems regarding termination of service
High costs involved with te hiring of new employees
High costs involved with the training of new employees.
Loss of production during recruitment period.
Loss of skill and experience
Wastage is higher for new employees
Layoffs
A situation where a qualified employee is requested not to report to work due to financial situation with the organisation
