APPRAISING AND IMPROVING PERFORMANCE

Eka Dewi Octiana Nur Kholishoh Rahmah Taufiqullah Jaya Ramdhani

SDP 4

WHAT IS PERFORMANCE APPRAISAL ???

Performance Appraisal is the identification, measurement, and management of human performance in organizations. (Luis R. et. all, 1995:256) Performance Appraisal is the process an employer uses to determine whether an employee is performing the job as intended. (Leon C. Meggison, 1981:310) Employee Appraising is the systematic evaluation of a workers job performance and potential for development. Appraising is the process of estimating or judging the value, excellence, qualities, or status of some object, person or thing. (Andrew E. Sikula, 1981:205)

Purpose of Performance Appraisal

1. To give employees the opportunity to discuss performance and performance standarts regularly with their supervisor. 2. To provide the supervisor with a means of identifying the strengths and weaknesses of an employees performance. 3. To provide a format enabling the supervisor to recommend a specific program designed to help an employee improve performance. 4. To provide a basis for salary recommendations.

Uses of Performance Appraisal

1. Salary administration 2. Performance feedback 3. Identification of individual strengths and weaknesses 4. Documentation of personnel decisions 5. Recognition of individual performance 6. Determination of promotion 7. Identification of poor performance 8. Assistance in goal identification 9. Decision in retention or termination 10. Evaluation of goal achievement

Ruang Lingkup Pengukuran Kinerja (5W+1H) menurut Andrew E. Sikula (1981), sebagai berikut :
1. Who ? Siapa yang harus dinilai ? Yaitu seluruh tenaga kerja yang ada dalam organisasi dari jabatan yang tertinggi sampai dengan pegawai jabatan terendah. Siapa yang harus menilai ? Penilaian kinerja dapat dilakukan oleh atasan langsung dan tidak langsung atau penilai kinerja dapat ditunjuk orang tertentu yang dianggap memiliki keahlian dalam bidangnya. 2. What ? Apa yang harus dinilai ? Yaitu : Objek/ materi yang dinilai a.l. hasil kerja, kemampuan sikap, kepemimpinan kerja, dan motivasi kerja. Dimensi waktu, yaitu kinerja yang dicapai pada saat ini (current performance) & potensi yang dapat dikmbangkan pada masa datang (future potential). 3. Why ? Mengapa penilaian kinerja harus dilakukan ? Hal ini untuk : Memelihara potensi kerja Menentukan kebutuhan pelatihan kerja Dasar pengembangan karier Dasar promosi jabatan

4. When ? Waktu pelaksanaan dapat dilakukan secara formal & informal Penilaian formal dilakukan secara periodik, seperti setiap bulan , kwartal, triwulan, semster atau setiap tahun. Penilaian informal dilakukan secara terus menerus setiap hari kerja. 5. Where ? Penilaian kerja dapat dilakukan di 2 alternatif tempat, yaitu : Di tempat kerja (on the job appraisal) Di luar tempat kerja (off the job appraisal) 6. How ? Bagaimana penilaian kerja dilakukan ? Yaitu dengan menggunakan metode tradisional & modern. Metode tradisional : rating scale, employee comparison. Metode modern : management by objective (MBO), assessment centre.

Deciding Who Should Appraise Performance

Manager/ Supervisor Appraisal Performance appraisal done by an employees manager and often reviewed by a manager one level higher. Self-Appraisal Performance appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview. Subordinate Appraisal Performance appraisal of a superior by an employee, which is more appropriate tha for administrative purposes.

 Peer Appraisal Performance appraisal done by ones fellow employees, generally on forms that are compiled into a single profile for use in the performance interview conducted by the employees manager. Team Appraisal Performance appraisal, based on TQM concepts, that recognizes team accomplishment rather than individual performance. Costumer Appraisal Performance appraisal, which, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal cutomers.

Performance Appraisal Methods

Trait Methods 1. Graphic Rating Scales A trait approach to performance appraisal where by each employee is rated according to a scale of characteristics. 2. Mixed Standarts Scales A trait approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standart.

3. Forced-Choice Method A trait approach to performance appraisal that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance. 4. Essay Method A trait approach to performance appraisal that requires the rater to compose a statement describing employee behavior.

Behavioral Methods
Critical Incidents Method Unusual event that denotes supervisor or inferior employee performance in some part of the job. Behavioral Checklist Method Behaviorally Anchored Rating Scale (BARS) A behavioral approach to performance appraisal that consists of a series of vertical scales, one for each important dimension of job performance. Behavior Observation Scales (BOS) A behavioral approach to performance appraisal that measures the frequency of observed behavior.

Results Method
Management by Objectives (MBO) Philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.

Performance Appraisal Under an MBO Program

Organizations common goals. Measures of organization performance

Departement-specific goals. Measures of department performance

Supervisor lists goals and measures for subordinate

Subordinate proposes goals and measures for his or her job

Review of organization performance

Joint agreement on subordinate goals and measures

Interim review periods providing feedback on interim results measured against established goals Final review of subordinate results measured against established of revished goals

New input provided Innapropriate goals eliminated

Summary of Various Appraisal Method

Advantages
Trait Methods
1. 2. 3. Are inexpensive to develop Use meaningful dimensions Are easy to use 1. 2. 3. 4.

Disadvantages
Have high potential for rating errors Are not useful for employee counseling Are not useful for allocating rewards Are not useful for promotion decisions

Behavioral Methods

1. 2. 3.

Use specific performance dimensions Are acceptable to employees and supervisors Are useful for providing feedback Has less subjectivity bias Is acceptable to employees and supervisors Links individual performance to organizational performance Encourages mutual goal setting Is good for reward and promotion decisions

1. 2. 3.

Can be time-consuming to develop/ use Can be costly to develop Have some potential for rating error

Results Methods

1. 2. 3. 4. 5.

1. 2. 3. 4.

Is time-consuming to develop/ use May encourage short-term perspective May use contaminated criteria May use deficient criteria

Measurements Tools
1. The type of judgment that is required : Relative or Absolute Relative judgment : An appraisal format that asks a supervisor to compare an employees performance to the performance of other employees doing the same job. Absolute judgment : An appraisal format that asks a supervisor to make judgments about an employees performance based solely on performance standards. 2. The focus of the measure : Trait , Behavior or Outcome Data Trait Appraisal Instrument : An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring. Behavioral Appraisal Instrument : An appraisal tool that asks managers to assess a workers behaviors. Outcome Appraisal Instrument : An appraisal tool that asks managers to assess the results achieved by workers.

Improving Performance
Identifying Sources of Ineffective Performance
ORGANIZATION POLICIES & PRACTICES
Ineffective job placement Insufficient job training Ineffectual employment practices Permissiveness with enforcing policies or job standards Heavy-handed management Lack of attention to employee needs or concerns Inadequate communication within organization Unclear reporting relationships

JOB CONCERNS
Unclear or constantly changing work requirements Boredom with job Lack of job growth or advancement opportunities Management-employee conflict Problems with fellow employees Unsafe working conditions Unavailable equipment or materials Inability to perform the job Excessive workload Lack of job skills

 Managing Ineffective Performance

PERSONEL PROBLEMS
Marital problems Financial worries Emotional disordes (depression, guilt) Conflict between work demands & family demands Physical limitations, inc. disabilities Low work ethic Other family problems Lack of effort Immaturity

EXTERNAL FACTORS
Industry decline or extreme competition Legal constraints Conflict between ethical standards & job demands Union-management conflict

Top 10 Reasons Performance Appraisal Can Fail

1. Manager lacks information concerning an employees actual performance. 2. Standarts by which to evaluate an employees performance are unclear. 3. Manager does not take the appraisal seriously. 4. Manager is not prepared for the appraisal review with the employee. 5. Manager is not honest/ sincere during the evaluation. 6. Manager lacks appraisal skills. 7. Employee does not receive ongoing performance feedback. 8. Insufficient resources are provided to reward performance. 9. There is ineffective discussion of employee development. 10. Manager uses unclear/ ambiguous language in the evaluation process.

Situational Factors to Consider in Determining the Causes of Performance Problems

Poor coordination of work activities among workers Inadequate information or instructions needed to perform a job Lack of necessary equipment Inability to obtain raw materials, parts, or supplies Inadequate financial resources Uncooperative co-workers and/or poor relations among people Inadequate training Insufficient time to produce the quantity or quality of work required A poor work environment (cold, hot, noisy, frequent interruption) Equipment breakdown

THANK YOU FOR YOUR KIND ATTENTION