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Executive performance appraisal

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I. Contents of getting executive performance appraisal


==================
Its time to rethink the practice of evaluating your employees only once a year. A continual
feedback loop will lead to great success and engagement. Here are some painless and productive
ways to critique your employees.
Like most senior executives, Doug Bettinger believes in giving ongoing feedback to his direct
reports. He wants them to know what theyre doing right and how they can improve their job
performance.
But Bettinger doesnt rely on annual performance reviews. Instead, he prefers monthly and
quarterly process reviews that provide a more comprehensive, detailed analysis of both the
employees performance and how it ties into the firms latest product-related news.
Our process reviews usually take two to four hours and we like to do them face-to-face, says
Bettinger, chief financial officer of Avago Technologies, a semiconductor firm co-headquartered
in Singapore and San Jose, Calif. Our CEO does process reviews for our general managers and
their director-level staff, and I may travel with him or other management team members to
administer the reviews in person or via videoconference.
In these meetings, the top brass dont just rate an individuals performance or competencies in
specific areas. They discuss the companys goals and financial milestones, along with product
and project updates as they relate to each employee.

As a result, employees understand what they need to accomplish and how theyll be measured
in terms of how we define success, Bettinger says. In reviewing a new product rollout, for
example, he might address questions such as, How is this product resonating with our
customers?, Are we behind or ahead of schedule? and If were not on track, how will we
change to get back on track?
By connecting an employees daily activities to larger operational issues, a process review has
more impact than a traditional performance review thats narrower in scope. Rather than critique
a managers work in isolation, the focus expands to evaluate the status of products or projects
under that managers purview.
Keep Score of Performance
Entrepreneurs love launching businesses, but they usually dread conducting performance
reviews. Its rarely gratifying to tell employees what theyre doing wrong or why theyre not
getting a pay raise.
Fortunately, there are creative solutions that make such reviews easier to administer. Start by
placing less emphasis on formal appraisals. Shift your focus to educating workers about what
constitutes success.
For new hires, have their job description double as a performance evaluation tool. List the tasks
they need to do and your expectations for their role.
Make the job description document serve as your performance review document, says Rick
Galbreath, president of Performance Growth Partners, a leadership development firm in
Bloomington, Ill.
To ensure that employees understand how their performance contributes to the organizations
bottom line, use a balanced scorecard. Popularized in the 1990s, its based on a summary
report consisting of key measures along with desired targets.
The scorecard results enable both employer and employees to keep track on a daily basis of
individual performance as it impacts larger outcomes. Appraisals thus become a relatively
painless outgrowth of a simple scoring system that everyone understands and accepts.
Deliver Criticism That Sticks
While assessing an employees performance is typically a structured process involving forms and
rating systems, its also a test of your communication skills. You need to deliver constructive

feedback in a supportive tone while explaining the consequences of continued


underperformance.
If you overdose on faultfinding, you risk alienating the people youre trying to help. Workers
tend to tune out or defend themselves if they perceive their boss in attack mode. What you view
as straightforward input may come across as stinging criticism to your angry or quivering
listener.
You cant pat a dog and kick a dog at the same time, Galbreath says. Audit yourself to make
sure youre mixing some positive comments with negative ones.
To criticize performance without provoking a backlash, provide neutral descriptions rather than
expressing opinions. Cite specific examples to support your general observationsand include a
time, place and activity to pinpoint the behavior that needs to improve.
If you want an argumentative service rep to speak more diplomatically, for instance, say, I
observed your conversation in the showroom at noon today with the roofer who wanted shingles,
and I noticed you pointing in his face while your voice volume turned a few decibels louder.
Thats better than saying, You were too loud and aggressive today.

USING KEY PERFORMANCE INDICATORS: A CASE STUDY


At Exemplar Companies, Christopher Marston doesnt just conduct performance reviews once a
year. Instead, the chief executive of the Boston-based professional services firm tracks key
performance indicators (KPIs) for each employee and uses them as the basis for leading 15minute feedback discussions every quarter.
If you only sit down once a year and employees dont make the goals, then youre really
reprimanding them, he says. And you have to wait another year to see if they make the next set
of goals.
For a salesperson, Marston might set a goal of generating $3 million in annual revenue. Every
three months, hell meet with the individual to review pacing numbers so that they understand
whether theyre on track, he says.
Marston conducts performance reviewsand quarterly KPI discussionswith 10 of his
companys 30 employees. He models the kind of performance evaluation process that he wants
his managers to follow with their direct reports.

Every employee has metrics that are specific to the job, he says. These metrics are part of the
quarterly KPIs, which are tied to compensation.
==================

III. Performance appraisal methods

1. Essay Method
In this method the rater writes down the employee
description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.

2. Behaviorally Anchored Rating Scales


statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages helps overcome rating
errors. Disadvantages Suffers from distortions
inherent in most rating techniques.

3. Rating Scale

Rating scales consists of several numerical scales


representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases

4. Checklist method
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages economy, ease of administration, limited
training required, standardization. Disadvantages Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings

5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
group.
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
employee.
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
traits.
This method speaks only of the position where an
employee stands in his group. It does not test anything
about how much better or how much worse an employee
is when compared to another employee.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. Critical Incidents Method

The approach is focused on certain critical behaviors of


employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.

III. Other topics related to Executive performance appraisal


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