Performance Appraisal, Employee Empowerment, and Rewards
Learning Organization
A learning organization is a firm that recognizes the critical importance of continuous performance-related training and development and takes appropriate action.
Implementation of Training and Development Programs
Implementation of training and development programs is difficult due to the fact that managers are too occupied for training and development, qualified trainers are needed, employees may resist change, etc. The Kirkpatrick model provides the metrics which evaluate training and development.
Organizational Development
Organizational development is a planned process of improving an organization by developing its structures, systems, and processes to enhance effectiveness and achieve desired goals.
Interventions
- Survey Feedback
- Quality Circles
- Team Building
- Sensitivity Training
Performance Appraisal
Performance appraisal is the systematic evaluation of the performance of any employee by his or her superiors. It is a tool which compares and ranks an individual with others.
Purposes
- To value the quality of performance of different employees.
- To be used for employee training.
- To provide a standard procedure so managers can measure employees on the same qualities and method.
- To provide a systematic basis for any increase in wages.
- To help identify employees considered for promotion.
Process
- Establish performance standards: There must be clear, objective, understood, and measurable standards.
- Communicate performance expectations to employees: They should know what is expected.
- Measure actual performance:
- Personal observation
- Statistical reports
- Oral reports
- Written reports
- Compare performance with standards: Find differences between standard and actual performance.
- Discuss appraisal with employees: Indicate strong and weak points.
- It is easy to mention the good news.
- It is hard to discuss the bad news.
- Initiate corrective action, if necessary:
- Either immediate (dealing with symptoms)
- Deep into causes (counseling, training courses)
Methods
- Graphic or Linear Rating Scales Method: This is the most common method, using one printed form per person. Factors that are rated are employee characteristics (initiative, leadership, attitude, loyalty, etc.) and contributions (quality and quantity of work, responsibility assumed, goals achieved, etc.).
- Free Essay Method: The supervisor makes a free-form, open-ended appraisal of an employee in his or her own words and puts down his or her impressions about the employee. Factors measured are job knowledge, employee characteristics, production, relationships with colleagues, etc.
- Field Review Method: The appraiser goes to the field and obtains information about the work performance of the employee by questioning the individual, peer group, and superiors.
- 360º Degree Performance Appraisal: Evaluation of an employee by people above him, below him, and alongside him. It includes self-appraisal, subordinates’ appraisal, and customer appraisal.
Potential Appraisal
Potential appraisal aims to inform the employee of their future prospects and requires updating training efforts regularly.
Pros and Cons
Pros:
- Provides a record of performance over time.
- Provides a chance for managers to meet and discuss performance.
- Provides employees with feedback about performance. If not done right, it could be a waste of time.
- Can be motivational with support and a good reward.
Cons:
- Very long procedures.
- If not done appropriately, it can be a negative experience.
- If not done right, it could be a waste of time.
- Stressful for all involved.
Empowering Employees
Empowerment occurs when individuals in an organization are given autonomy, authority, trust, and encouragement to accomplish a task.
Providing an Effective Reward System
Rewards demonstrate to employees that their behavior is appropriate and should be repeated.
Redesigning Jobs
- Job Enlargement: Increases the variety of tasks a job includes. It may reduce monotony.
- Job Rotation: Assigns different jobs or tasks to different people on a temporary basis to add variety and to expose people to the dependence that one job has on other jobs.
- Job Enrichment: Includes not only an increased variety of tasks but also provides an employee with more responsibility and authority.
Flexi-time
Flexi-time permits employees to set and control their own work hours.
Job Sharing
Job sharing occurs when one full-time job is split between two or more persons.
Telecommuting
Telecommuting is a work arrangement that allows at least a portion of scheduled work hours to be completed outside of the office, with work at home as one of the options.
Remunerations
- Time Rates: Payment of an agreed amount is made for an agreed period of “working time”.
- Piece Work Rates: Payment is made according to the “output”.
- Bonus: A reward for output or achievement above previously agreed levels.
- Incentives: Given to employees for a variety of factors.
- Commissions or Target Bonuses: Based on the values of sales achieved above a certain pre-determined “target”.
- Allowances: Costs of transport, cost of expenses, cost of buying, etc.
Standard Employee Benefits
- Annual paid holiday
- Sickness pay