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Chapter 02

CHAPTER 9

PERFORMANCE
MANAGEMENT

hat is performance Appraisal

Performance Appraisal
is a formal management system
That provide for the evaluation of the quality of
An individuals performance in an organization

Performance Appraisal and


Performance Management
Its some time assumed that performance appraisal
is the same thing as performance management.
But there are significant differences.
Performance appraisal can be defined
as a formal assessment of Individuals by their managers,
usually, annual review meeting.
In contrast performance management is
a continuous and much wider,
More comprehensive of management that clarifies mutual expectation,
Emphasize the support role of managers
who are expected to act as coaches rather than
Judges and focuses on the future .

PERFORMANCE APPRAISAL COMPARED


WITH

PERFORMANCE MANAGEMENT
Performance appraisal

Performance management

Top down
Annual
Focus on quantified objectives

Joint process through dialogue


Continuous review
Focus on values and behavior
As well as objectives
Owned by line managers

Owned by HR departement

Tujuan Penilaian Performansi

To align individual and organization objectives

= 64 %

To improve organization performance

= 63 %

To improve individual

performance

= 46 %

To provide the basis for development

= 37 %

To develop a performance culture

= 32 %

To inform contribution/ perf. Pay dec.

= 20 %

VALUASI KINERJA

INPUT
INPUT

OUTPUT
OUTPUT
PROCESS
PROCESS

FOUR PHASE MODEL


OF
PERFORMANCE MANAGEMENT

Phase I : Performance planning


Phase II : Performance Execution
Phase III : Performance Assessment
Phase IV : Performance review

STRATEGY BASED PERFORMANCE MANAGEMENT


OVERALL
ORGANIZATION STRATEGY

STRATEGIC PLAN
Mission/vision/values
WHAT : objective
standards
goals
results

PHASE I
PERFORMANCE
PLANNING

PHASE I V
PERFORMANCE
REVIEW

Managers responsibilities :
eliminate performance problem
update obejective
provide development oppurtunities
reinforce effektive behavior

HOW : Competencies
behavior
skills
performance factors

PHASE II
PERFORMANCE
EXECUTION

Individuals responsibilities :
achieve objectives
solicit feedback and coaching
prepare for review

JUDGES :

strengths
weaknesses
compensation
potensial

PHASE III
PERFORMANCE
ASSESSMENT

:COACHING

training
development
career planning

Strategic Management Model


EXTERNAL
EXTERNAL ENVIROMENTAL
ENVIROMENTAL OPPURTUNITIES
OPPURTUNITIES AND
AND THREATS
THREATS
Macroenviroment

Industry Enviroment
INTERNAL
INTERNAL ENVIROMENT
ENVIROMENT ::

The Firm`s Resources, Organizational Mission, and Goals

STRATEGY
STRATEGY FORMULATION
FORMULATION

Corporate strategy
formulation

Business unit strategy


formulation

STRETEGY
STRETEGY IMPLEMENTATION
IMPLEMENTATION

Organizational Structure
Leadership and Organizational Culture
STRATEGIC
STRATEGIC CONTROL
CONTROL
Strategic Control Process and Performance

Functional strategy
formulation

MATRIKS PEMUNCULAN SASARAN STRATEGIS - BISNIS

Strengths (Kekuatan)
Pemimpin pasar
Reputasi dihadapan pembeli
Terjaga terhadap kekuatan tekanan pesaing
Existensi bisnis
Kemitraan mendapatkan bahan baku
Kualitas produk
Loyalitas pelanggan
Jaringan distribusi
Loyalitas dan didikasi SDM
Kinerja keuangan

Oppurtunities (Peluang)
Industri tumbuh didalam maupun diluar negri
Pasar bio energi dimasa datang
Pasar eksport
Kondisi makro ekonomi indonesia/dunia membaik
Mengembangkan supply bahan baku
Diversifikasi produk
Masuk kedalam segmen pasar tertentu
Melakukan aliansi strategis
Business process improvement
Tumbuh bersama investor

Visi kedepan pimpinan perusahaan


Kemampuan kepemimpinan ditingkat atas
Perencanaan strategik untuk mencapai visi
Kapasitas produksi yang telah maximal
Rencana aktivitas pemasaran yang tidak agresif
Struktur organisasi dan kesisteman
Kesisteman SDM secara komprehensif
Sistem keuangan
SI/TI monitoring implementasi strategi bisnis
..................... dst

SO. Strategies

1.

Threats (Ancaman)
Kompetisi lokal dan internasional semakin ketat
Ketersediaan dan harga bahan baku
Regulasi pemerintah
Ketersediaan lahan bahan baku
Kompetitor ilegal
Kemungkinan kompetitor masuk pada bisnis sejenis
Pertumbuhan pasar yang melambat
Kebijakan pemerintah
Pesaing besar
Tekanan terhadap harga

Weakness (Kelemahan)

Peningkatan pertumbuhan bisnis


melalui perluasan Peluang pendapatan
dan memperbaiki Nilai pelanggan.

WO. Strategies
1.

Pengelolaan kompetensi SDM agar


strategi yang telah ditetapkan dapat
diimplementasikan.

2.

Peningkatan produktivitas melalui


perbaikan
struktur biaya dan
menumbuhkan pemanfaatan asset

3.

Peningkatan nilai-nilai fokus pd strategi

4.

Pembangunan infrastruktur fisik dan


manajemen Teknologi Informasi

ST. Strategies

1.

Pengelolaan bisnis dengan


menciptakan Produk berkualitas dan
harga bersaing

WT. Strategies
1.

Peningkatan kepuasan pelanggan


Melalui operasional exellent dan
pelayanan prima

2.

Peningkatan citra pada pelanggan


Melalui program CSR dan pengelolaan
proses berbasis ramah lingkungan

3.

Peningkatan kompetensi kualitas


dan perbaikan berkesinambungan.

Menterjemahkan
Visi - Strategi pada sasaran-sasaran
Agar sukses
Secara berkesinambungan,
Bagaimana Seharusnya
Kita Terlihat
oleh pemegang
Saham ?

Perspektif Keuangan
Sasaran

Indikator
Utama

Target

Perspektif Pelanggan
Untuk
Mencapai Visi, Bagaimana
Seharusnya kita terlihat
Oleh para
Pemegang saham?

Sasaran

Indikator
Utama

Target

Perspektif Proses internal


Untuk memuaskan
Pemegang saham
dan pelanggan
Maka proses bisnis apa
Yang harus kita unggulkan?

VISI &
STRATEGI

Perspektif Pembelajaran
Untuk
Mencapai visi, Bagaimana
Kita mendukung kemampuan
Kita untuk berubah
Dan meningkat

Sasaran

Indikator
Utama

Target

Sasaran

Indikator
Utama

Target

STRATEGY MAP

FINANCIAL
PERSPECTIVE

(F-1)
Tercapainya
Outstanding Financial return
(F-2)
Bertumbuhnya
Pendapatan

CUSTOMER
PERSPECTIVE

(C-1)
Terbangunya
Citra perusahaan

INTERNAL
PERSPECTIVE

(I-1)
Terbangunnya
Sistem adaptasi terhadap
UU keselamatan, lingkungan
Serta proses sosial

LEARN. & GROWTH


PERSPECTIVE

(L-1)
Tersedianya
Competensi untuk
Mengimplementasi strategi

(F-3)
Berkurangnya
biaya

(C-2)
Terbangunya
Atribut produk

(I-2)
Meningkatnya
Kualitas proses pengelolaan
pelanggan

(C3)
Meningkatnya
Kualitas hubungan
Dengan pelanggan

(I-3)
Tercapainya
Keunggulan bersaing
Melalui proses inovasi

(L-2)
Terbangunnya
Sistem informasi, dan infrastruktur
IT terintegrasi`

(I-4)
Terwujudnya
Pengelolaan proses
Operasional unggul

(L-3)
Terbangunya
Budaya perbaikan berkelanjutan

MATRIX KORELASI
CORPORATE SCORECARD DENGAN FUNGSI TERKAIT

FUNCTIONAL SCORECARD FUNGSI OPERASI

INDIVIDUAL SCORECARD FUNGSI SALES - PRODUKSI

ORGANIZATION ALIGNMENT
(both strategies and values provide important direction and contribute to organization success)

WHAT
need to be done

MISI / VISI

STRATEGIC GOALS

OBJECTIVES

HOW
It should be done

VALUES

INFRASTRUCTURE
(policies, system, support)

ACTIVITIES

PRACTICES

BEHAVIORS

RESULT

PERFORMANCE
RESULTS ???
a.

Result atau hasil terdiri dari Output,


produk yang dapat dihitung, outcomes yang dapat diukur,
dan pencapaian sasaran. (What the individual achieved)

PROCESSES ???
b.

Behavior atau perilaku mencalup competencies, keahlian,


nilai-nilai, dan pendekatan-pendekatan.
(How the individual performed)

RESULTS & PROCESSES ???


c.

a+b

A STRATEGY MAPS (HOW THE ORGANIZATION CREATE VALUE)


LONG-TERM SHARE HOLDER VALUE

Productivity Strategy
(bertahan)

Growth Strategy
(tumbuh)

FINANCIAL
PERSPECTIVE

Improve cost
Structure

Increase asset
Utilization

CUSTOMER
PERSPECTIVE

Expand Revenue
Opportunities

CUSTOMER VALUE PROPOSITION

PRICE

QUALITY

AVAILIBILITY

SELECTION

FUNTIONALLITY

SERVICE

Operation Management
Processes

Supply
Production
Distribution
Risk Management

Selection
Acquisition
Retention
Growth

Oppurtunity ID
R & D Portofolio
Design/Develop
Launch

Image

Enviroment
Safety and Health
Employment
Community

Human Capital
LEARNING &
GROWTH
PERSPECTIVE

Information Capital

Culture

Leadership

BRAND

Regulatory &
Social Processes

Inovation
Processes

Customer
Management
Processes

PARTNERSHIP

Relationship

Product/Service Atributes

INTERNAL
PERSPECTIVE

Enhance
Customer Value

Organization
Capital

Alignment

Teamwork

OPERATION MANAGEMENT STRATEGY MAP TEMPLATE


LONG-TERM SHAREHOLDER VALUE

Productivity Strategy

Growth Strategy

FINANCIAL
PERSPECTIVE

Industry cost
Leader

Maximize use of
Existing asset

CUSTOMER
PERSPECTIVE

New revenue
sources

CUSTOMER VALUE PROPOSITION


Perfect quality

Competitive
prices

Speedy, Timely
purchase

Low total cost

Develop supplier
relations

INTERNAL
PERSPECTIVE

lower cost of ownership


Just in time delivery
High quality supply
supplier partnership

Human Capital
LEARNING &
GROWTH
PERSPECTIVE

Increase share
Of Customer

Skills in mgt. process


improvement

Distribute
To customers

Produce products and


services

Lower cost of production


continuous improvement
Process cycle time
Fixed asset utilization

Lower cost to serve


Responsive delivery time
Enhance quality

Information capital
Technology that facilitates
Proccess improvement

Exellent
Selection

Manage Risk

Financial risk
Operating risk
Technological risk

Organization Capital
Culture for conntinuous
improvement

OBJECTIVES AND MEASURERS FOR


MANAGING SUPPLIER RELATIONSHIP
OBJECTIVES

MEASURES
ACTIVITY-BASED COST OF ACQUIRING MATERIAL

LOWER COST OF OWNERSHIP

ACHIEVE JUST IN TIME SUPPLIER


CAPABILITY

COST OF PURCHASING AS PERCENTAGE OF TOTAL PURCHASE PRICE


SUPPLIER RATING : QUALITY, DELEVERY, COST
LEAD TIME FROM ORDER TO RECEIPT
ON TIME DELEVERY PERCENTAGE
PERCENT OF LATE ORDER
PERCENT OF ORDERS DELIVERED DIRECLY TO PRODUCTION
PROCESS BY SUPPLIERS

DEVELOP HIGH QUALITY SUPPLIER


CAPABILITY

PERCENT OF DEFECT INCOMING ORDER


PERCENT OF SUPPLIER QUALIFIED TO DELIVER WITHOUT INCOMING
INSPECTION
PERCENT OF PERFECT ORDERS RECEIVED

USE NEW IDEAS FROM SUPPLIERS

NUMBER OF INOVATION FROM SUPPLIERS

ACHIEVE SUPPLIER PARTNERSHIP

NUMBER OF SUPPLIERS PROVIDING SERVICES DIRECTLY TO CUST.

OUTSOURCE

NUMBER OF OUTSOURCING RELATIONSHIPS


BENCHMARKED PERFORMANCE OF OUTSOURCING PARTNERS

OBJECTIVES AND MEASURERS FOR PROCESSES PRODUCTION


OBJECTIVES
LOWER THE COST OF PRODUCING
PRODUCT/SERVICE

CONTINUOUSLY IMPROVE
PROCESSES

MEASURES
ACTIVITY-BASED COST OF KEY OPERATING PROCESSES
COST PER UNIT OUTPUT
MARKETING, SELLING, DISTRIBUTION, AND ADMINISTRATIVE EXPENSES
PERCENT OF TOTAL COST
NUMBER OF INEFFICIENT OR NON VALUE ADDED PROCESSES
ELIMINATED .
YIELD PERCENTED
COST OF INSPECTION AND TESTING
TOTAL COST OF QUALITY (PREVENTION, APPRAISSAL, INTERNAL
FAILURE, EXTERNAL FAILURE)

IMPROVE PROCESS
RESPONSIVENESS

CYCLE TIME
PROCESS TIME
PROSES EFFICIENCY (RATIO OF PROCESS TIME TO CYCLE TIME)

IMPROVE FIXED ASSET


UTILIZATION

PERCENT OF CAPACITY UTILIZATION


EQUIPTMENT RELIABILITY
NUMBER AND PERCENT OF BREAKDOWNS
FLEXIBILITY (RANGE OF PRODUCT/SERVICES THAT PROCESSES
CAN PRODUCE AND DELIVER)

IMPROVE WORKING CAPITAL


EFFICIENCY

DAYS INVENTORY, INVENTORY TURNOVER


DAYS SALES IN RECEIVABLE
PERCENT OF STOCKOUTS
CASHTO-CASH CYCLE

OBJECTIVES AND MEASURERS FOR DISTRIBUTE PRODUCTS


AND SERVICES TO CUSTOMERS
OBJECTIVES

MEASURES
ABC COST OF STORAGE AND DELEVERY

LOWER COST- TO - SERVE

TO CUSTOMERS
PERCENT OF CUSTOMERS REACHED VIA
LOW COST TO SERVE CHANNELS

DELIVER RESPONSIVELY
TO CUSTOMERS

LEAD TIME, FROM ORDER TO DELEVERY


TIME FROM COMPLETION OF PRODUCT/SERVICE
UNTIL READY FOR USE BY CUSTOMER
ON TIME DELEVERY PERCENTAGE

ENHANCE QUALITY

PERCENT OF ITEM DELIVERED WITH NO DEFECT


NUMBER AND FRECWENCY
OF CUSTOMER COMPLAINT

OBJECTIVES AND MEASURERS FOR MANAGING RISK

OBJECTIVES

MEASURES
BAD DEBT PERCENTAGE

MANAGE FINANCIAL RISK/


MAINTAIN HIGH CREDIT QUALITY

MANAGE OPERATING RISK

MANAGE TECHNOLOGICAL RISK

PERCENT OF UNCOLLECTIBLE RECEIVABLE


EXPOSURE OR LOSSES FROM INTEREST RATE
FOREIGN EXCHANGE, OR COMODITY PRICE
FLICTUATIONS
INVENTORY OBSOLESCENCE AND SPOILAGE
DEBT-TO EQUITY RATIO
MONTHS OF PAYROLL HELD IN CASH
ORDER BACKLOG
PERCENT OF CAPACITY FROM EXISTING
AND BACLOGGED ORDERS
TECHNOLOGY RANKING OF PRODUCT AND
PROCESSES COMPARED TO COMPETITORS

LINKAGE (DIRECT AND INDIRECT) TO FINANCIAL PERSPECTIVE OBJECTIVES

OBJECTIVES

MEASURES
COST PER UNIT, BENCHMARKED

BECOME THE INDUSTRY COST


LEADER

MAXIMIZE USE OF EXISTING ASSETS

AGAINST COMPETITORS
PERCENT OF ANNUAL REDUCTION IN COSTS
PER UNIT OF OUTPUT
PERCENT OF COST BUDGET VARIANCE
GENERAL, SELLING, AND ADMINISTRATIVE EXPENSES
PER UNIT OF OUTPUT OR PERLOCATION
SALES / ASSET RATIO
INVENTORY TURNOVER RATIO
INVESTMENT EFFICIENCY (NPV OF NEW PROJECTS
TO TOTAL INVESTMENT)
PRODUCT AND DEVELOPMENT PIPELINE TO CAPACITY
AVAILABLE
PERCENT OF INVOICES PAID ON TIME

INCREASE ACCOUNT SHARE WITH


EXIISTING CUSTOMERS

PERCENT OF GROWTH IN EXISTING CUSTOMERS


BUSINESSES

INCREASE REVENUE FROM


NEW CUSTOMERS

REVENUE FROM ACQUIRING NEW CUSTOMERS

LINKAGE TO LEARNING AND GROWTH PERSPECTIVE OBJECTIVES

OBJECTIVES

MEASURES
PERCENT OF EMPLOYEES TRAINED IN QUALITY

DEVELOP SKILLS IN QUALITY


MANAGEMENT AND PROCESS
IMPROVEMENT

TECHNOLOGY THAT FACILITTATES


PROCESS IMPROVEMENT AND
CUSTOMER SATISFACTION

CULTURE FOR CONTINNUOUS


IMPROVEMENT

MANAGEMENT TECHNIQUES
NUMBER OR PERCENT OF EMPLOYEES QUALIFIED AT
BLACK BELT SIX SIGMA QUALITY LEVEL
PERCENT OF EMPLOYEES WITH KNOWLAGE AND
TRAINING IN ACTIVITY BASED MANAGEMENT,
JUST IN TIME, AND THEORY OF CONSTRAINS
PERCENT OF EMPLOYEES WHO OBTAIN IMMEDIATE
FEEDBACK FROM OPERATIONS
PERCENT OF CUSTOMERS WHO CAN TRACK
ORDER STATUS ELECTRONICALLY
EMPLOYEE SURVAY ON ON CULTURE FOR CONTINUOUS
IMPROVEMENT AND KNOWLADGE SHARING
NUMBER OF PROCESS IMPROVEMENT IDEAS GENERATE
PERCENT OF EMPLOYEE PROCESS IMPROVEMENT
SUGGESTIONSS ADOPTED
NUMBER OF IDEAS FOR QUALITY AND PROCESS
IMPROVEMENT SHARED ACROSS MULTIPLE
ORGANIZATIONAL UNITS
PERFORMANCE IMPROVEMENT FROM FROM EMPLOYEE
SUGGESTIONS AND ACTION (COST SAVINGS, DEFECT
REDUCTION, YIELD ENHANCEMENT, PROCESS
TIME REDUCTION

PERFORMANCE
RESULTS ???
a.

Result atau hasil terdiri dari Output,


produk yang dapat dihitung, outcomes yang dapat diukur,
dan pencapaian sasaran. (What the individual achieved)

PROCESSES ???
b.

Behavior atau perilaku mencalup competencies, keahlian,


nilai-nilai, dan pendekatan-pendekatan.
(How the individual performed)

RESULTS & PROCESSES ???


c.

a+b

STRUKTUR KOMPETENSI

Personal Quality
Merupakan kompetensi yang melekat pada individu
yang bersifat umum dan berlaku menyeluruh bagi
seluruh pekerja. Yang termasuk ke dalam jenis ini
adalah corporate value dan kualitas personal lain
yang dibutuhkan

Managerial Skill
Merupakan kompetensi-kompetensi yang harus
dimiliki oleh pekerja Infomedia untuk mendukung
tercapainya target bisnis dan pengelolaan unit kerja
yang lebih efektif. Yang termasuk ke dalam jenis ini
adalah managerial skill yang mengacu kepada peran
jabatan dan core business.

Technical Skill
Merupakan kompetensi-kompetensi yang harus
dimiliki oleh pekerja sesuai dengan job-nya yang
terdiri dari skill dan knowledge, yang mengacu
kepada core business dan pengelompokan job
stream & sub stream.

PERSONAL QUALITY

Seperti telah dijelaskan di awal, bahwa salah satu wujud transformasi dan synergi menuju bisnis T.I.M.E
adalah adanya penyelarasan dan integrasi budaya antara Telkom dengan Anak Perusahaan antara lain Infomedia.
Integrasi budaya dimaksudkan untuk meningkatkan koordinasi kerja,
mempercepat sinergi pengembangan bisnis dan sinergi pengelolaan Human Capital.

T.I.M.E
BUSINESS

INFOMEDIA
INFOMEDIA NEW
NEW
CULTURE
CULTURE

PERSONAL QUALITY

PIRAMIDA BUDAYA merupakan kumpulan dari nilai-nilai perusahaan (corporate value) yang menjadi dasar,
landasan dan panduan perilaku setiap pekerja di perusahaan untuk mendukung tercapainya misi dan tujuan
perusahaan. Kumpulan nilai-nilai perusahaan ini disusun menjadi sebuah piramida dengan susunan seperti terlihat
pada gambar di bawah ini.
.
Customer First merupakan nilai perusahaan yang utama dan pelanggan menjadi
basis eksistensi bisnis dan misi perusahaan.
Collaborative Innovation merupakan nilai perusahaan ke-2 dan inovasi
adalah kunci keunggulan bersaing dan modal pertumbuhan perusahaan.
Co-Creation of Win Win Partnerhsip merupakan nilai perusahaan ke-3
dan partnership adalah wujud dari semangat bersama untuk
memenangkan persaingan bisnis.
Caring Meritocracy merupakan nilai perusahaan ke-4 dan
caring meritocracy menjadi basis penghargaan perusahaan
kepada pekerja..
Commitment for Long Term merupakan nilai
perusahaan ke-5 dan commitment menjadi landasan
berpikir dan bertindak pekerja dalam mendukung
tercapainya target perusahaan.

PERSONAL QUALITY
CORE VALUE

DESKRIPSI

KEY BEHAVIOR

Customer First

Selalu mengutamakan pelanggan internal


maupun eksternal

Mendahulukan kepentingan pelanggan setiap waktu secara bijak


Memberikan yang terbaik untuk keinginan pelanggan
Meningkatkan hubungan baik dengan pelanggan

Collaborative
Innovation

Bekerjasama dalam meningkatkan dan


mengembangkan proses dan hasil kerja
guna memberikan nilai tambah perusahaan

Mendayagunakan semua sumber daya yang ada dalam hubungan


kerja sama yang saling percaya
Terus menerus meningkatkan dan mengimplementasikan
pengetahuan ke dalam lingkup kerjanya
Memberikan nilai tambah pada setiap proses kerja

Co-Creation of win-win
Partnership

Meningkatkan kualitas relasi dengan mitra


kerja untuk mencapai sasaran bersama

Memahami peran dan tanggung jawab sebagai anggota organisasi


Menjalin koordinasi kerja secara efektif
Merumuskan sasaran bersama

Caring Meritocracy

Memberikan penghargaan sesuai dengan


kinerja dan perilaku yang bersangkutan

Mengembangkan diri secara positif


Memberikan penghargaan dan perhatian individual
Memberikan penghargaan sesuai kinerja

Commitment to Long
Term

Kemampuan dan kemauan menyelaraskan


perilaku untuk mendukung keberlangsungan
bisnis di masa mendatang

Menunjukkan tanggung jawab terhadap pekerjaan untuk menjaga


keberlangsungan bisnis perusahaan
Mendukung pencapaian target perusahaan
Menyelaraskan perilaku dengan tata kelola kebijakan perusahaan

VALUASI KINERJA

INPUT
INPUT

OUTPUT
OUTPUT
PROCESS
PROCESS

ethode

RELEVANCE
RELEVANCE

Clear links between the performance standard for a particular job


and organization Objectives. (job analysis/what is to be done ---performance standards/how well work is to be done ---- performance appraissal)

SENSITIVITY
SENSITIVITY
RELIABILITY
RELIABILITY
ACCEPTABILITY
ACCEPTABILITY

PRACTICALITY
PRACTICALITY

Sensitivity implies that a performance-appraisaal system is capable of distinguishing


effective from Inefective performers.

In this context it refer to consistency of judgment.

HR programs must have support of those who will use them

Appraissal instruments are easy for managers and employees


to understand And use.

ethode

RELATIVE RATING SYSTEM


RELATIVE RATING SYSTEM

ABSOLUT RATING SYSTEM


ABSOLUT RATING SYSTEM

Clear links between the performance standard for a particular job


and organization Objectives. (job analysis/what is to be done ---performance standards/how well work is to be done ---performance appraissal)

Relies on goal setting to establish for the organization as a whole

ethode

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS


Numerous methods have been devised to measure
the quantity and quality of performance appraisals.
Each of the methods is effective for some purposes for some organizations only.
None should be dismissed or accepted as appropriate except as they relate to the particular
needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
Past Oriented Methods
Future Oriented Methods

ethode

Past Oriented Methods


Rating Scales: 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

RATING
FACTORS

Attendance
Appearance
Quantity of work

LEVEL OF PERFORMANCE
unsatisfactory

Conditional

Satisfactory

Above satisfactory

Outstanding

ethode

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.

Strongly agree
The teacher was well prepared
The teacher use understandable language
The teacher made me think
The teacher knew his or herv field

agree

Neutral

Disagree

Strongly disagree

ethode

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.
Cost Accounting Method:
Here performance is evaluated from the monetary returns yields to
his or her organization. Cost to keep employee, and benefit the
organization derives is ascertained. Hence it is more dependent
upon cost and benefit analysis.

ethode

Future Oriented Methods


1.

Management By Objectives: It means management by objectives and the performance is rated against the achievement of objectives
stated by the management. MBO process goes as under (Establish goals and desired outcomes for each subordinate,
Setting performance standards, Comparison of actual goals with goals attained by the employee, Establish new goals and new strategies
for goals not achieved in previous year ).

2.

Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one
It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations.
It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance.
This approach is slow and costly and may be useful for bright young members who may have considerable potential.

3.

Assessment Centers: This technique was first developed in USA and UK in 1943. An assessment center is a central location where managers
may come together to have their lations, role playing and other similar activities which require same attributes for successful performance
in actual job. The characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating ability, planning and
organizational ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative ability,
creativity and mental alertness etc.

4.

360-Degree Feedback: It is a technique which is systematic collection of performance data on an individual group,
derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self.
In fact anyone who has useful information on how an employee does a job may be one of the appraisers.
This technique is highly useful in terms of broader perspective, greater self-development and multi-source feedback is useful.
360-degree appraisals are useful to measure inter-personal skills, customer satisfaction and team building skills.

VALUASI KINERJA

INPUT
INPUT

OUTPUT
OUTPUT
PROCESS
PROCESS

Goals of
Performance Appraisals

General Goals

Specific Goals

Developmental Use

Individual needs
Performance feedback
Transfers and Placements
Strengths and Development needs

Administrative Decisions / Uses

Salary
Promotion
Retention / Termination
Recognition
Lay offs
Poor Performers identification

Organizational Maintenance

HR Planning
Training Needs
Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational needs

Documentation

Validation Research
For HR Decisions