Chapter 02

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PERFORMANCE

MANAGEMENT

CHAPTER 9

What is “performance Appraisal

Performance Appraisal

is a formal management systemThat provide for the evaluation of the quality of An individual’s performance in an organization

Performance Appraisal and

Performance Management

Its some time assumed that performance appraisalis 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 managerswho are expected to act as coaches rather thanJudges and focuses on the future .

PERFORMANCE APPRAISAL COMPARED WITH

PERFORMANCE MANAGEMENT

Performance appraisal Performance management

Top downAnnualFocus on quantified objectives

Owned by HR departement

Joint process through dialogueContinuous reviewFocus on values and behaviorAs well as objectivesOwned by line managers

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 %

EVALUASI KINERJA

INPUTINPUT OUTPUTOUTPUT

PROCESSPROCESS

FOUR PHASE MODELOF

PERFORMANCE MANAGEMENT

Phase I : Performance planning

Phase II : Performance Execution

Phase III : Performance Assessment

Phase IV : Performance review

STRATEGY BASED PERFORMANCE MANAGEMENT

OVERALLORGANIZATION STRATEGY

STRATEGIC PLANMission/vision/values

PHASE I PERFORMANCE PLANNING

PHASE II PERFORMANCE EXECUTION

PHASE III PERFORMANCE ASSESSMENT

PHASE I V PERFORMANCE REVIEW

WHAT : objective standards goals results

HOW : Competencies behavior skills performance factors

JUDGES : strengths weaknesses compensation potensial

:COACHING training development career planning

Manager’s responsibilities :• eliminate performance problem• update obejective• provide development oppurtunities• reinforce effektive behavior

Individual’s responsibilities :• achieve objectives • solicit feedback and coaching • prepare for review

Strategic Management ModelStrategic Management Model

EXTERNAL ENVIROMENTAL OPPURTUNITIES AND THREATSEXTERNAL ENVIROMENTAL OPPURTUNITIES AND THREATSEXTERNAL ENVIROMENTAL OPPURTUNITIES AND THREATSEXTERNAL ENVIROMENTAL OPPURTUNITIES AND THREATS

Macroenviroment Industry EnviromentMacroenviroment Industry Enviroment

INTERNAL ENVIROMENT :INTERNAL ENVIROMENT :INTERNAL ENVIROMENT :INTERNAL ENVIROMENT :

The Firm`s Resources, Organizational Mission, and GoalsThe Firm`s Resources, Organizational Mission, and Goals

STRATEGY FORMULATIONSTRATEGY FORMULATIONSTRATEGY FORMULATIONSTRATEGY FORMULATION

Corporate strategyCorporate strategyformulationformulation

Business unit strategyBusiness unit strategyformulationformulation

Functional strategyFunctional strategyformulationformulation

STRETEGY IMPLEMENTATIONSTRETEGY IMPLEMENTATIONSTRETEGY IMPLEMENTATIONSTRETEGY IMPLEMENTATION

STRATEGIC CONTROLSTRATEGIC CONTROLSTRATEGIC CONTROLSTRATEGIC CONTROL

Strategic Control Process and PerformanceStrategic Control Process and Performance

Organizational StructureOrganizational Structure

Leadership and Organizational CultureLeadership and Organizational Culture

MATRIKS PEMUNCULAN SASARAN STRATEGIS - BISNIS

Pemimpin pasarReputasi dihadapan pembeliTerjaga terhadap kekuatan tekanan pesaingExistensi bisnisKemitraan mendapatkan bahan bakuKualitas produkLoyalitas pelangganJaringan distribusiLoyalitas dan didikasi SDMKinerja keuangan

Industri tumbuh didalam maupun diluar negriPasar bio energi dimasa datangPasar eksportKondisi makro ekonomi indonesia/dunia membaikMengembangkan supply bahan bakuDiversifikasi produkMasuk kedalam segmen pasar tertentuMelakukan aliansi strategisBusiness process improvementTumbuh bersama investor

Kompetisi lokal dan internasional semakin ketatKetersediaan dan harga bahan bakuRegulasi pemerintahKetersediaan lahan bahan bakuKompetitor ilegal Kemungkinan kompetitor masuk pada bisnis sejenisPertumbuhan pasar yang melambatKebijakan pemerintah Pesaing besarTekanan terhadap harga

Visi kedepan pimpinan perusahaanKemampuan kepemimpinan ditingkat atasPerencanaan strategik untuk mencapai visiKapasitas produksi yang telah maximalRencana aktivitas pemasaran yang tidak agresifStruktur organisasi dan kesistemanKesisteman SDM secara komprehensifSistem keuangan SI/TI monitoring implementasi strategi bisnis ..................... dst

Oppurtunities (Peluang)

Threats (Ancaman)

Strengths (Kekuatan) Weakness (Kelemahan)

1. Peningkatan pertumbuhan bisnis melalui perluasan Peluang pendapatan dan memperbaiki Nilai pelanggan.

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

1. Pengelolaan bisnis dengan menciptakan Produk berkualitas dan harga bersaing

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.

SO. Strategies WO. Strategies

ST. Strategies WT. Strategies

Menterjemahkan Visi - Strategi pada sasaran-sasaran

VISI &STRATEGI

Agar suksesSecara berkesinambungan,

Bagaimana SeharusnyaKita Terlihat

oleh pemegangSaham ?

Perspektif Keuangan

Sasaran Indikator Utama

Target

UntukMencapai visi, Bagaimana

Kita mendukung kemampuanKita untuk berubah

Dan meningkat

Perspektif Pembelajaran

Sasaran Target

Untuk memuaskanPemegang saham

dan pelangganMaka proses bisnis apa

Yang harus kita unggulkan?

Perspektif Proses internal

Sasaran Target Untuk

Mencapai Visi, Bagaimana Seharusnya kita terlihat

Oleh paraPemegang saham?

Perspektif Pelanggan

Sasaran Target Indikator Utama

Indikator Utama

Indikator Utama

(F-1) Tercapainya

Outstanding Financial return

(F-2) Bertumbuhnya

Pendapatan

FIN

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STRATEGY MAP

(C3) Meningkatnya

Kualitas hubunganDengan pelanggan

(C-2) Terbangunya Atribut produk

(C-1) Terbangunya

Citra perusahaan

(F-3) Berkurangnya

biaya

(I-1)Terbangunnya

Sistem adaptasi terhadapUU keselamatan, lingkungan

Serta proses sosial

(I-2)Meningkatnya

Kualitas proses pengelolaan pelanggan

(I-3)Tercapainya

Keunggulan bersaing Melalui proses inovasi

(I-4)Terwujudnya

Pengelolaan prosesOperasional unggul

(L-1)Tersedianya

Competensi untukMengimplementasi strategi

(L-2)Terbangunnya

Sistem informasi, dan infrastrukturIT terintegrasi`

(L-3)Terbangunya

Budaya perbaikan berkelanjutan

MATRIX KORELASICORPORATE 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

HOWIt should be doneMISI / VISI

STRATEGIC GOALS VALUES

OBJECTIVES

ACTIVITIES

RESULT

PRACTICES

BEHAVIORS

INFRASTRUCTURE(policies, system, support)

PERFORMANCE

RESULTS ???

PROCESSES ???

RESULTS & PROCESSES ???

a. Result atau hasil terdiri dari Output, produk yang dapat dihitung, outcomes yang dapat diukur, dan pencapaian sasaran. (What the individual achieved)

b. Behavior atau perilaku mencalup competencies, keahlian, nilai-nilai, dan pendekatan-pendekatan. (How the individual performed)

c. a + b

LONG-TERM SHARE HOLDER VALUEGrowth Strategy

(tumbuh)Productivity Strategy

(bertahan)

Improve costStructure

Increase assetUtilization

EnhanceCustomer Value

Expand RevenueOpportunities

QUALITY BRANDPRICE

PARTNERSHIPSERVICEFUNTIONALLITYSELECTIONAVAILIBILITY

CUSTOMER VALUE PROPOSITION

Product/Service Atributes Relationship Image

Operation Management Processes

InovationProcesses

Regulatory & Social Processes

FINANCIAL PERSPECTIVE

CUSTOMER PERSPECTIVE

INTERNAL PERSPECTIVE

LEARNING & GROWTH PERSPECTIVE

A STRATEGY MAPS (HOW THE ORGANIZATION CREATE VALUE)

Customer Management Processes

• Supply• Production• Distribution• Risk Management

• Selection• Acquisition• Retention• Growth

• Oppurtunity ID• R & D Portofolio• Design/Develop• Launch

• Enviroment• Safety and Health• Employment• Community

Human Capital

Information Capital

Organization Capital

Culture Leadership TeamworkAlignment

LONG-TERM SHAREHOLDER VALUEGrowth Strategy Productivity Strategy

Industry costLeader

New revenuesources

Increase shareOf Customer

CUSTOMER VALUE PROPOSITION

Develop supplierrelations

DistributeTo customers

Manage Risk

FINANCIAL PERSPECTIVE

CUSTOMER PERSPECTIVE

INTERNAL PERSPECTIVE

LEARNING & GROWTH PERSPECTIVE

OPERATION MANAGEMENT STRATEGY MAP TEMPLATE

Produce products andservices

• lower cost of ownership • Just in time delivery • High quality supply• supplier partnership

• Lower cost of production• continuous improvement• Process cycle time• Fixed asset utilization

• Lower cost to serve • Responsive delivery time • Enhance quality

• Financial risk • Operating risk • Technological risk

Perfect quality Competitive

pricesLow total cost

Speedy, Timelypurchase

ExellentSelection

Maximize use ofExisting asset

Information capitalHuman Capital Organization Capital

Skills in mgt. processimprovement

Technology that facilitatesProccess improvement

Culture for conntinuousimprovement

OBJECTIVES AND MEASURERS FOR MANAGING SUPPLIER RELATIONSHIP

OBJECTIVES

LOWER COST OF OWNERSHIP

MEASURES

• ACTIVITY-BASED COST OF ACQUIRING MATERIAL• 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

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

• NUMBER OF INOVATION FROM SUPPLIERS

• NUMBER OF SUPPLIERS PROVIDING SERVICES DIRECTLY TO CUST.

• NUMBER OF OUTSOURCING RELATIONSHIPS• BENCHMARKED PERFORMANCE OF OUTSOURCING PARTNERS

ACHIEVE JUST IN TIME SUPPLIERCAPABILITY

DEVELOP HIGH QUALITY SUPPLIERCAPABILITY

USE NEW IDEAS FROM SUPPLIERS

ACHIEVE SUPPLIER PARTNERSHIP

OUTSOURCE

OBJECTIVES AND MEASURERS FOR PROCESSES PRODUCTION OBJECTIVES

LOWER THE COST OF PRODUCINGPRODUCT/SERVICE

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)

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

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

• DAYS INVENTORY, INVENTORY TURNOVER• DAYS SALES IN RECEIVABLE• PERCENT OF STOCKOUTS• CASHTO-CASH CYCLE

CONTINUOUSLY IMPROVEPROCESSES

IMPROVE PROCESS RESPONSIVENESS

IMPROVE FIXED ASSETUTILIZATION

IMPROVE WORKING CAPITALEFFICIENCY

OBJECTIVES AND MEASURERS FOR DISTRIBUTE PRODUCTS AND SERVICES TO CUSTOMERS

OBJECTIVES

LOWER COST- TO - SERVE

MEASURES

• ABC COST OF STORAGE AND DELEVERY TO CUSTOMERS• PERCENT OF CUSTOMERS REACHED VIA LOW COST TO SERVE CHANNELS

• LEAD TIME, FROM ORDER TO DELEVERY • TIME FROM COMPLETION OF PRODUCT/SERVICE UNTIL READY FOR USE BY CUSTOMER• ON TIME DELEVERY PERCENTAGE

• PERCENT OF ITEM DELIVERED WITH NO DEFECT• NUMBER AND FRECWENCY OF CUSTOMER COMPLAINT

DELIVER RESPONSIVELYTO CUSTOMERS

ENHANCE QUALITY

OBJECTIVES AND MEASURERS FOR MANAGING RISK

OBJECTIVES

MANAGE FINANCIAL RISK/MAINTAIN HIGH CREDIT QUALITY

MEASURES

• BAD DEBT PERCENTAGE• 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

MANAGE OPERATING RISK

MANAGE TECHNOLOGICAL RISK

LINKAGE (DIRECT AND INDIRECT) TO FINANCIAL PERSPECTIVE OBJECTIVES

OBJECTIVES

BECOME THE INDUSTRY COSTLEADER

MEASURES

• COST PER UNIT, BENCHMARKED 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

• PERCENT OF GROWTH IN EXISTING CUSTOMERS’ BUSINESSES

• REVENUE FROM ACQUIRING NEW CUSTOMERS

MAXIMIZE USE OF EXISTING ASSETS

INCREASE ACCOUNT SHARE WITHEXIISTING CUSTOMERS

INCREASE REVENUE FROMNEW CUSTOMERS

LINKAGE TO LEARNING AND GROWTH PERSPECTIVE OBJECTIVES

OBJECTIVES

DEVELOP SKILLS IN QUALITYMANAGEMENT AND PROCESSIMPROVEMENT

MEASURES

• PERCENT OF EMPLOYEES TRAINED IN QUALITY 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

TECHNOLOGY THAT FACILITTATES PROCESS IMPROVEMENT ANDCUSTOMER SATISFACTION

CULTURE FOR CONTINNUOUS IMPROVEMENT

PERFORMANCE

RESULTS ???

PROCESSES ???

RESULTS & PROCESSES ???

a. Result atau hasil terdiri dari Output, produk yang dapat dihitung, outcomes yang dapat diukur, dan pencapaian sasaran. (What the individual achieved)

b. Behavior atau perilaku mencalup competencies, keahlian, nilai-nilai, dan pendekatan-pendekatan. (How the individual performed)

c. a + b

Personal Quality

Managerial Skill

Technical Skill

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

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.

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.

STRUKTUR KOMPETENSI

T.I.M.EBUSINESS

Seperti telah dijelaskan di awal, bahwa salah satu wujud transformasi dan synergi menuju bisnis T.I.M.Eadalah 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.

INFOMEDIA NEW CULTURE

INFOMEDIA NEW 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

PERSONAL QUALITY

EVALUASI KINERJA

INPUTINPUT OUTPUTOUTPUT

PROCESSPROCESS

RELEVANCERELEVANCE

SENSITIVITYSENSITIVITY

RELIABILITYRELIABILITY

ACCEPTABILITYACCEPTABILITY

PRACTICALITYPRACTICALITY

Clear links between the performance standard for a particular joband organization Objectives. (job analysis/what is to be done ----performance standards/how well work is to be done ---- performance appraissal)

Sensitivity implies that a performance-appraisaal system is capable of distinguishingeffective 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 employeesto understand And use.

Methode

RELATIVE RATING SYSTEMRELATIVE RATING SYSTEM

Clear links between the performance standard for a particular joband organization Objectives. (job analysis/what is to be done ----performance standards/how well work is to be done ---- performance appraissal)

ABSOLUT RATING SYSTEMABSOLUT RATING SYSTEM

Methode

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

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS

Numerous methods have been devised to measurethe 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

Methode

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 – Rater’s biases

RATING FACTORS

LEVEL OF PERFORMANCE

unsatisfactory Conditional Satisfactory Above satisfactory Outstanding

Attendance

Appearance

Quantity of work

Methode

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 agree Neutral Strongly disagreeDisagree

The teacher was well prepared

The teacher use understandable language

The teacher made me think

The teacher knew his or herv field

Methode

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.

Methode

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.

Methode

EVALUASI KINERJA

INPUTINPUT OUTPUTOUTPUT

PROCESSPROCESS

General Goals Specific Goals

Developmental Use Individual needsPerformance feedbackTransfers and PlacementsStrengths and Development needs

Administrative Decisions / Uses SalaryPromotionRetention / TerminationRecognitionLay offsPoor Performers identification

Organizational Maintenance HR PlanningTraining NeedsOrganizational Goal achievementsGoal IdentificationHR Systems EvaluationReinforcement of organizational needs

Documentation Validation ResearchFor HR Decisions

Goals of Performance Appraisals

Goals of Performance Appraisals