Performance Appraisal

Mohsin, Putri Saniyah

Fullerton, Christopher

Rautajuuri, Ilkka

Agenda Introduction

Definition Purposes of performance appraisal

How to develop an effective program Who is involved? The evaluated are… Performance appraisal in Finland How to convince the employees that is not a punitive process

Appraisal methods MBO 3600

Conclusion

Introduction

Definition Purposes of performance appraisal Performance appraisal in Finland Why BP-CENTRO must use this

approach

Definition

Performance appraisal are very helpful tools an organization can use to maintain and enhance productivity and facilitate progress toward strategic goals.

They can serve many purposes that benefit both the organization and the employee whose performance is being appraised

Definition (continue)

They give employees the opportunity to discuss performance with supervisors

They provide the supervisor with a means of identifying the strengths and weaknesses of an employee’s performance

They provide a basis for salary recommendations

The most common uses of performance appraisal are: Administrative Purposes: they provide input

that can be used for the entire range of HRM activities (ex. Compensation decisions)

Developmental Purposes: they provide the feedback essential for discussing strengths and weaknesses as well as improving performance

Purposes of Performance Appraisal

How to develop an effective program

Who is involved? Who is evaluated? What is the frequency? How to convince employees that this is not a

punitive process?

Who is involved ?

To develop an effective program, the HR department has to take the primary responsibility for co-ordinating the activities with the managers from the other departments whom must be actively involved in helping to establish the objectives for the program

Later, give the chance to participate low level employees

The evaluated are:

CEO BP-CENTRO: ==> Annually, MBO Top Managers: ==> Annually, MBO Country managers: ==> Annually, MBO, 3600

Regional managers:==> Annually, MBO, 3600

Facility managers: ==> Quarterly, MBO, 3600

Facility assistants: ==> Quarterly, 3600

Performance Appraisal in Finland

Appraisal system is very familiar to every Finnish company and the managers are used to work with this system

In Eastern European Countries and Russia this system is not that familiar as it is in Finland

How to convince employees that is not a punitive process?

In Finland it should not be a problem In Eastern Europe and Russia, before

implementing the appraisal system, it should be an introduction. (Ex. Seminars, take employees to Finland and show how the system works, etc)

Appraisal Methods

Management by objectives

3600

Management by objectives

measures performance on the basis of employee achievement of goals set by mutual agreement of employee and manager

Why MBO is chosen? The system acts as a goal setting process whereby

objectives are established for the organization (BP-CENTRO), and departments, and individual managers and employees (country, regional and facility managers)

BP-CENTRO MBO PROGRAMCEO

Organization’s common goals.

Finance, Marketing, HR, Logistics managers

Departments’ specific goals

Country, regional, facility and assistant facility manager lists goals and measures for subordinate

Country, regional, facility and assistant facility manager proposes goals and measures for his or her job

Review period providing feedback on results measures against establish goals

Joint agreement on goals

New input provided

Inappropriate goals eliminated

Review of organization performance

Final review of results measures against establish goals

3600 Is an all-rounder form of evaluating

employees’ performance from all angles that includes supervisors, peers, subordinates and customer

Quality of information is better than other systems

It may lessen bias/prejudice because feedback comes from more people

Conclusions

The success of an organization depends largely on the performance of its human resources and how they design effective appraisal programs

Performance appraisal programs give the basis to compensation