Improving Employee Performance Through Coaching

HUMAN RESOURCES MANAGEMENT
CHECK POINT 36: EMPLOYEE PERFORMANCE APPRAISAL

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1.	the purpose of employee performance appraisal
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4.	management performance appraisal
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6.	employee confidential questionnaire
7.	small business example employee confidential questionnaire
8.	employee performance appraisal review
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10.	small business example plan of action schedule
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12.	for serious business owners only
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Management Level	Yes	Optional
Level 1: I Am An MBA Student.	V
Level 2: I Am A Professional Manager In A Company.		V
Level 3: I Plan To Start A One-Person Business.		V
Level 4: We Plan To Start A Small Business Without Employees.		V
Level 5: I/We Plan To Start A Small Business With Employees.	V
Level 6: I Am A One-Person Business Owner.		V
Level 7: I Am A Small Business Owner With Employees.	V
Level 8: We Are Small Business Owners Without Employees.		V
Level 9: We Are Small Business Owners With Employees.	V
Level 10: I Am A Management Consultant Or A CPA.	V

HUMAN RESOURCES MANAGEMENT
CHECK POINT 36: EMPLOYEE PERFORMANCE APPRAISAL

Please Select Any Topic In Check Point 36 Below And Click.

1.	the purpose of employee performance appraisal
2.	employee performance appraisal factors
3.	small business example employee performance appraisal report
4.	management performance appraisal
5.	small business example management performance appraisal report
6.	employee confidential questionnaire
7.	small business example employee confidential questionnaire
8.	employee performance appraisal review
9.	plan of action schedule
10.	small business example plan of action schedule
11.	management by objectives
12.	for serious business owners only
13.	the latest information online

DO I NEED TO KNOW THIS CHECK POINT?

Management Level	Yes	Optional
Level 1: I Am An MBA Student.	V
Level 2: I Am A Professional Manager In A Company.		V
Level 3: I Plan To Start A One-Person Business.		V
Level 4: We Plan To Start A Small Business Without Employees.		V
Level 5: I/We Plan To Start A Small Business With Employees.	V
Level 6: I Am A One-Person Business Owner.		V
Level 7: I Am A Small Business Owner With Employees.	V
Level 8: We Are Small Business Owners Without Employees.		V
Level 9: We Are Small Business Owners With Employees.	V
Level 10: I Am A Management Consultant Or A CPA.	V

WELCOME TO CHECK POINT 36

TUTORIAL 1 General Management				TUTORIAL 2 Human Resources Management				TUTORIAL 3 Financial Management				TUTORIAL 4 Operations Management				TUTORIAL 5 Marketing And Sales Management
1	6	11	16	21	26	31	36	41	46	51	56	61	66	71	76	81	86	91	96
2	7	12	17	22	27	32	37	42	47	52	57	62	67	72	77	82	87	92	97
3	8	13	18	23	28	33	38	43	48	53	58	63	68	73	78	83	88	93	98
4	9	14	19	24	29	34	39	44	49	54	59	64	69	74	79	84	89	94	99
5	10	15	20	25	30	35	40	45	50	55	60	65	70	75	80	85	90	95	100

HOW CAN YOU BENEFIT FROM CHECK POINT 36?

The main purpose of this check point is to provide you and your management team with detailed information about Employee Performance Appraisal and how to apply this information to maximize your company's performance.

In this check point you will learn:

• About the purpose of employee performance appraisal.
• About employee performance appraisal factors.
• How to complete employee performance appraisal.
• About management performance appraisal.
• How to complete management performance appraisal.
• About employee confidential questionnaire.
• How to complete employee performance appraisal review.
• About a plan of action schedule for employees and management personnel.
• How to complete a plan of action schedule for employees and management personnel.
• How to incorporate management by objectives in a company... and much more.

LEAN MANAGEMENT GUIDELINES FOR CHECK POINT 36

You and your management team should become familiar with the basic Lean Management principles, guidelines, and tools provided in this program and apply them appropriately to the content of this check point.

You and your team should adhere to basic lean management guidelines on a continuous basis:

•	Treat your customers as the most important part of your business.
•	Provide your customers with the best possible value of products and services.
•	Meet your customers' requirements with a positive energy on a timely basis.
•	Provide your customers with consistent and reliable after-sales service.
•	Treat your customers, employees, suppliers, and business associates with genuine respect.
•	Identify your company's operational weaknesses, non-value-added activities, and waste.
•	Implement the process of continuous improvements on organization-wide basis.
•	Eliminate or minimize your company's non-value-added activities and waste.
•	Streamline your company's operational processes and maximize overall flow efficiency.
•	Reduce your company's operational costs in all areas of business activities.
•	Maximize the quality at the source of all operational processes and activities.
•	Ensure regular evaluation of your employees' performance and required level of knowledge.
•	Implement fair compensation of your employees based on their overall performance.
•	Motivate your partners and employees to adhere to high ethical standards of behavior.
•	Maximize safety for your customers, employees, suppliers, and business associates.
•	Provide opportunities for a continuous professional growth of partners and employees.
•	Pay attention to "how" positive results are achieved and constantly try to improve them.
•	Cultivate long-term relationships with your customers, suppliers, employees, and business associates.

1. THE PURPOSE OF EMPLOYEE PERFORMANCE APPRAISAL

EMPLOYEE PERFORMANCE APPRAISAL

Business owners and managers must be familiar with various employee performance appraisal procedures to ensure a high level of performance within the organization on a continuous basis.

Employee Performance Appraisal is a process of evaluating the performance of all employees within an organization and to provide them with a constructive feedback designed to increase their productivity and to maximize the overall performance of the organization.

If you don't have employees in your business then this check point is not applicable to you. However, if you do have employees, you would like to know how well they perform their tasks to ensure that your company is on the right track. For this reason you need to become familiar with various issues related to employee performance appraisal.

The main objectives of employee performance appraisal are outlined below.

OBJECTIVES OF EMPLOYEE PERFORMANCE APPRAISAL

1.	To review the employees' performance during a specific period of employment.
2.	To provide employees with feedback regarding their performance and to identify their strengths and weaknesses in various areas of work.
3.	To provide employees with an opportunity to express their opinions concerning their work.
4.	To identify suitable candidates for short- or long-term promotions and salary or wage increases.
5.	To identify employees whose performance is not in accordance with the company's standards.
6.	To develop training programs in order to improve the employees' performance deficiencies.
7.	To identify candidates for succession.

ADDITIONAL INFORMATION ONLINE

•	How To Prepare A Performance Review By Margaret Buj.
•	The Performance Appraisal By Kathy, Random But Deadly.
•	An Introduction To Performance Evaluation By Ag Careers.
•	HR Performance Appraisal By Sheryl Wolowyk, My HR Pro.
•	What Is Performance Appraisal By Matt Alanis, Alanis Business Academy.

2. EMPLOYEE PERFORMANCE APPRAISAL FACTORS

EMPLOYEE PERFORMANCE APPRAISAL METHODS

Employee Performance Appraisal is considered one of the most important managerial functions. Unfortunately, this process is often carried out spontaneously and without any preliminary planning. There are, however, numerous methods of providing a systematic approach to employee performance appraisal.

Probably, the simplest and most widely used method of appraisal is a Descriptive Graphic Rating Scale. This method is based on employee performance rating factors illustrated below.

DESCRIPTIVE GRAPHIC RATING SCALE

Performance Appraisal Factor	Description
Quality Of Work	This includes evaluation of working skills, experience, accuracy, and thoroughness of the employee.
Quantity Of Work	This reflects work output by the employee under normal conditions and under pressure.
Required Supervision	This reflects the need for advice, dependability, and promptness of performance by the employee.
Conservation	This reflects the employee's effort in preventing waste, spoilage and protection of equipment.
General Attitude	This reflects the employee's attitudes toward the company and fellow employees.

Performance Appraisal Of An Employee entails a separate rating of each of the above mentioned factors illustrated below.

EMPLOYEE PERFORMANCE APPRAISAL RATING

Superior Performance	Good Performance	Fair Performance	Poor Performance

Employee performance appraisal in small and medium-sized companies may be accomplished by using an Employee Performance Appraisal Report. A typical illustration of such a report is presented below.

ADDITIONAL INFORMATION ONLINE

•	Performance Appraisal - Part 1 By Humrro.
•	Employee Performance Mistake #1 By Anne-Marie Orrock.
•	Employee Performance Mistake #2 By Anne-Marie Orrock.
•	Employee Performance Mistake #3 By Anne-Marie Orrock.
•	Employee Performance Mistake #4 By Anne-Marie Orrock.

3. SMALL BUSINESS EXAMPLE
EMPLOYEE PERFORMANCE APPRAISAL REPORT

EMPLOYEE PERFORMANCE APPRAISAL REPORT

4. MANAGEMENT PERFORMANCE APPRAISAL

MANAGEMENT PERFORMANCE APPRAISAL

Management's Performance Appraisal in small and medium-sized companies may be conducted in a similar manner by applying different performance factors illustrated below.

MANAGEMENT PERFORMANCE APPRAISAL FACTORS

Performance Appraisal Factor	Description
Planning Skills	These include the manager's ability to assess the existing situation, to establish work priorities, to formulate attainable plans, and to foresee possible problems.
Organizing Skills	These include the manager's ability to group activities for the most effective use of human and material resources, to clearly define responsibilities and authority limits of subordinates, and to maximize the efficiency in work operations.
Leading Skills	These include the manager's ability to guide, conduct, direct, and motivate subordinates to meet specific organizational objectives.
Controlling Skills	These include the manager's ability to monitor the subordinates' progress and to identify deviations from planned objectives, to adjust deviations in work results, and to ensure that established goals are met.
Special Duties	This includes the manager's ability to perform special duties for the company.
General Attitude	This includes the manager's attitude toward the company and employees.

Management performance appraisal in small and medium-sized companies may be accomplished by using a Management Performance Appraisal Report which is presented below.

ADDITIONAL INFORMATION ONLINE

•	5 Ways To Improve Performance Reviews By Pat DiDomenico.
•	Performance Reviews And Appraisals By New Market Learning.
•	360 Degree Performance Review By Sheryl Wolowyk, My HR Pro.
•	How To Do Effective Performance Review By Susan Business Education.
•	Employee Performance Management Evaluation Review By People Streme.

5. SMALL BUSINESS EXAMPLE
MANAGEMENT PERFORMANCE APPRAISAL REPORT

MANAGEMENT PERFORMANCE APPRAISAL REPORT

6. EMPLOYEE CONFIDENTIAL QUESTIONNAIRE

EMPLOYEE CONFIDENTIAL QUESTIONNAIRE

Performance appraisal of all employees must be carried out according to the Fair Employment Practice Principles.

The actual appraisal process should be conducted by each employee's supervisor, who is usually in the best position to assess the subordinate's performance. The supervisor is expected to demonstrate an unbiased and reasonable attitude toward the employee during the appraisal process.

It may also be useful to issue an Employee Confidential Questionnaire to selected employees to obtain their opinions on relevant work-related issues. This action may enhance the clarity of performance appraisal results. A typical Employee Confidential Questionnaire used by small or medium-sized companies is presented below.

ADDITIONAL INFORMATION ONLINE

Please watch these excellent videos professionally narrated and produced by Anne-Marie Orrock:

•	Employee Performance Mistake #6 By Anne-Marie Orrock.
•	Employee Performance Mistake #7 By Anne-Marie Orrock.
•	Employee Performance Mistake #8 By Anne-Marie Orrock.
•	Employee Performance Mistake #9 By Anne-Marie Orrock.
•	Employee Performance Mistake #10 By Anne-Marie Orrock.

7. SMALL BUSINESS EXAMPLE
EMPLOYEE CONFIDENTIAL QUESTIONNAIRE

EMPLOYEE CONFIDENTIAL QUESTIONNAIRE

8. EMPLOYEE PERFORMANCE APPRAISAL REVIEW

EMPLOYEE PERFORMANCE APPRAISAL REVIEW

The performance appraisal of an employee will indicate whether his or her performance is satisfactory or not. This, in turn, will lead to the subsequent Employee Performance Appraisal Review, entailing two possibilities illustrated below. (35)

EMPLOYEE PERFORMANCE APPRAISAL RESULTS

Satisfactory Performance Appraisal Results		Unsatisfactory Performance Appraisal Results
In this case, the manager must assess whether the employee may be suitable for promotion or not. If the manager concludes that the employee is suitable for promotion, he or she should discuss the employee's future with the company in terms of a possible promotion. If, on the other hand, the manager feels that the employee has reached his or her limits, then the objective is to ascertain that the employee's performance will continue on an acceptable level.		In this case the manager must discuss all relevant problem areas with the employee and develop solutions to rectify such problems. If the manager feels that the employee's performance is not correctable, than it will be essential to decide whether such performance could be tolerated or the employee should be dismissed. In case of potential dismissal, employers are advised to record all relevant performance deficiencies by employees, to get the employee's acknowledgment in writing, and establish a reasonable period during which the employee has the opportunity to improve. If performance does not improve, termination is the next step. More on termination of employees will be discussed later.

9. PLAN OF ACTION SCHEDULE

PLAN OF ACTION SCHEDULE

An employee should be notified about the pending Performance Appraisal Interview at least one week in advance and be informed that it is a routine procedure. For the interview to be successful, both the manager and the subordinate must have the opportunity to express their views as openly as possible.

All problem areas need to be identified during the interview and a suitable Plan Of Action must be developed. Such a plan should include a description of specific goals and time limits in which these goals should be attained. All details pertaining to the plan of action should be summarized in a Plan Of Action Schedule presented below.

The plan of action developed by each manager or employee must become an integral part of the overall operational planning activity within your company. For this reason, it is essential to ensure that each individual plan of action is developed in accordance with your company's overall operational objectives designed to maximize performance and profitability.

Operational Planning is discussed in detail in Tutorial 1.

ADDITIONAL INFORMATION ONLINE

•	How To Write An Action Plan By Denise O'Berry.
•	Putting Your Business Plan To Action By David Lee.
•	How To Set SMART Goals By Erica Olsen, Virtual Strategist.
•	How To Develop Action Plans For Your Business Goals By Erica Olsen.
•	Top Tips For Writing An Action Plan By Jurgen Wolff, Video Jug Artscrafts.

10. SMALL BUSINESS EXAMPLE
PLAN OF ACTION SCHEDULE

PLAN OF ACTION SCHEDULE

To: A. Green Credit Control Manager		Department: Accounting Department
Problems		Objectives
1.	The age and value of accounts receivable is too high.	To reduce the age and value of accounts receivable by 20%.
2.	Recent increase in bad debts from customers.	To introduce a stricter credit control procedures and reduce bad debt by 30%
3.
4.
5.

PLAN OF ACTION

Action Step		Date To Complete	Expected Result
1.	Collect all accounts receivable 60 days and older.	October 2014	Outstanding period of accounts receivable should not exceed 60 days.
2.	Review all credit application forms from current customers.	December 2014	Bad debt should be reduced by 30%.
3.
4.
5.
Prepared By: B. Gray, Vice President, Finance		Accepted By: C. Green, Credit Control Manager	Date: July 1, 2014

11. MANAGEMENT BY OBJECTIVES

MANAGEMENT BY OBJECTIVES

The performance appraisal interview must incorporate the principles of Management By Objectives (MBO). The main purpose of the MBO Approach, discussed earlier, is to provide employees with clear guidelines and specific objectives related to their duties and responsibilities within the company.

The MBO Approach is particularly useful in developing a set of meaningful and measurable goals for managers as outlined below.

MBO APPLICATION IN SETTING SPECIFIC PERFORMANCE GOALS

Objectives for vice president, finance:

• A 10% reduction in overdraft by September 1, 2014.
• A 20% reduction of accounts receivable by October 1, 2014.

Objectives for vice president, manufacturing:

• A 10% increase of production output by September 1, 2014.
• A 15% reduction of production reject by October 1, 2014.

LIMITATIONS OF THE MBO APPROACH

The MBO Approach has certain limitations in being too individualistic rather than organizationally oriented. Furthermore, this approach is sometimes ineffective for certain non-managerial positions.

However, management should view the MBO method as an integral aspect of managerial responsibility in ensuring a high standard of employee performance.

Management By Objectives (MBO) is discussed in detail in Tutorial 1.

ADDITIONAL INFORMATION ONLINE

•	Management By Objectives By Shatheeshl.
•	Management By Objectives By Team Momentum.
•	Management By Objectives By Christopher Hunt.
•	Management By Results By Dr. Bachman, Mayo Clinic.
•	Management By Objectives (MBO) By B2B Whiteboard.

12. FOR SERIOUS BUSINESS OWNERS ONLY

ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY?

Reprinted with permission.

13. THE LATEST INFORMATION ONLINE

LESSON FOR TODAY:
If You Can't Measure It, You Can't Manage It!

Peter F. Drucker

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