Chapter 45- appraisal and workforce performance

Question 1

Appraisal

Answer 1

• A formal assessment of an employees performance
• usually a formal meeting between an employee and their line manager once a year
• employee is encouraged to reflect upon achievements, workload and development needs and to agree targets to be achieved in the next year
• process should be a positive one

Question 2

How are appraisals often regarded?

Answer 2

• with deep suspicion by employees who view the process as ‘spying’ and showing a lack of trust in their ability to complete the job

Question 3

What can help give a competitive edge over rivals through increased motivation, productivity and commitment to the job?

Answer 3

Responding to employee needs

Question 4

What is important that any appraisal system is introduced and operated with?

Answer 4

• as much co operation from employees as possible
• without this it may be regarded by the workforce as irrelevant and a waste of time

Question 5

Careful thought needs to be given to exactly what?

Answer 5

The process designed to achieve before it is introduced
- as this will affect how the process is designed, how it will operate and how it is perceived by employees

Question 6

What is the main purpose and benefit of appraisal ?

Answer 6

• identify an employees strengths and weaknesses
• judgement can be formed about whether the employee is effective in their current post
• can be used to gather information for human resource planning and employee development needs can be linked to a programme of training in order to make the employee more effective

Question 7

What does an appraisal presents ?

Answer 7

• an opportunity for an employee to discuss their expectations of the future

Question 8

How are employees likely to be valued by the business?

Answer 8

• if these are linked to training and initiatives such as work shadowing
• such investment in career development is likely to be motivating as it is helping to meet self-esteem and achievement needs

Question 9

What also will be considered?

Answer 9

• employees workload
• important because of the obvious link to morale motivation

Question 10

What can appraisals also be used to see?

Answer 10

• if the workload has changed over the past year

Question 11

What will also be a discussion?

Answer 11

• how work is actually performed and it can therefore highlight any procedural issues, communication problems or other difficulties that are hindering efficiency

Question 12

Introducing appraisal

Answer 12

• never should be introduced for its own sake
• not a stand alone process
• should be clearly linked to Human Resource issues such as training and pay

Question 13

What can appraisals be linked to?

Answer 13

• an increase in pay or a bonus of some kind based on the assessment of performance
• process must be transparent and judged objectively
• if employees feel that there is a degree of favouritism when bonuses are awarded they will become distrustful of the whole process

Question 14

What will make appraisal ineffective?

Answer 14

• lack of commitment by senior staff
• inconsistent approach by line managers: can lead to discontent especially if appraisal is linked to a reward
• inadequate time allowed for the appraisal process: employees may regard employees as a waste of time
• failure to respond to employee concerns and aspirations
• unrealistic targets being set: manager should ensure that the employee targets are SMART, no point in setting an employee up to fail
• use of ambiguous language

Question 15

What makes an appraisal effective?

Answer 15

• senior managers ensure that all managers are committed to the process
• consultation with employees
• ensuring that employees understand the system, how it will affect and benefit them
• ensuring line managers are adequately trained in the skills necessary to perform an effective appraisal
• willingness to modify the process if it seen to be failing in reaching its stated objectives
• allowing employees to comment on the outcome of their appraisal

Question 16

SMART target setting

Answer 16

A framework within which to set an employees targets for the coming year
Targets should be specific, measurable, agreed, realistic and time limited
SMART targets are much more likely to be successful than worded in an ambiguous way

Question 17

Common characteristics for most processes (appraisal process)

Answer 17

• it is usual for the employee to fill out a question and answer sheet relating to the targets that were agreed the previous year
• employees can comment on the extent to which they feel that they have met it
• these targets and the employees comments will then be reviewed by the line manager
• employee must be rated against the targets with statements such as ‘fully met’, ‘partially met’, or ‘no progress towards target’
• in this case of receiving the last rating an employee should be given the opportunity to offer an explanation
• in any event the inability to meet a target should be approached by offering support to achieve it
• a constructive approach focusing on improvement and development is likely to prove more beneficial in terms of employee morale than condemnation - likely to be a section for ‘other achievements’ and a section for the employee to comment on development needs for the future
• all sections are discussed with the line manager and an overall judgement on the employee will then be made
• a formal written record of the appraisal meeting and any forms completed will be kept

Question 18

Self assessment

Answer 18

• self reflection on performance can be useful
• issue of how objective the person is likely to be when doing this
• questions need to be specific and focused
• employees are encouraged to assess their performance using a simple tick sheet
• this sheet grades employees on certain aspects of their job
• another issue with any form of self assessment is the likelihood of objectivity if a pay increase or bonus depends partly or wholly on the self assessment
• can be used as a starting point for the whole process

Question 19

360 degree appraisal

Answer 19

• involves the appraisee receiving feedback from several people
• useful for employee development since the feedback gives an insight into how others perceive them
• can be used to judge management style in terms of issues such as consultation and communication
• appraisee can then alter their behaviour and/or seek training to improve their skills in the light of comments
• can be a problem with this kind of appraisal as those responding may not fully appreciate or understand the ‘wider picture’ of the managers roles and responsibilities and may not appreciate why certain why certain decisions affecting them have been taken
• they are complicated and time consuming
• highly unlikely to be appropriate for all employees
• tends to be a focus on behaviour rather than specific job requirements and the review of previously set targets

Question 20

Peer assessment

Answer 20

• being assessed by work colleagues
• questions that are asked need to be very specific to the role the appraisee is playing in the team
• issue of the peer appraisal being used to settle an old score and peers deliberately commenting in a negative manner
• all employees may agree to provide very positive comments on each other in the hope of gaining a pay rise

Question 21

Other methods of evaluating workforce performance

Answer 21

• could also be measured by the number of units of output produced which can then be related to pay that an employee receives
• productivity of employees is important
• motivated/ productive workforce will give a business an advantage in reaching its strategic objectives

Question 22

Labour turnover

Answer 22

• concerned with measuring the number of employees who have left the business
• usually calculated as an annual percentage

Labour turnover= number of employees leaving during the year/ average number employed during the year x100

• the higher the figure obtained the more likely it is that motivation is low
• figure doesn’t explain why employees are leaving
• figure is useful as a guide to motivation
• a workforce that has a zero rate of labour turnover is likely to become stale and resistant to change

Question 23

Absenteeism

Answer 23

• imposes an extra cost on the business in the form of a replacement employee or puts pressure and stress on existing staff who have to do extra work to cover for their absent colleague

Question 24

Long term absence

Answer 24

• when an employee is off work for a lengthy period and is usually due to illness
• could be symptomatic of an unsafe and unhealthy working environment

Question 25

Short term absence

Answer 25

- when an employee is absent from work for a day (or a dew days) because of a minor ailment - this sort of absence that is referred to as ‘absenteeism’ and can be used as an indicator of the level of morale and motivation - if there is an upward trend overall in a specific environment is an indicative of a problem - absenteeism is also known as lost time rate - calculation is useful for an overall picture of lost time in the business as a whole

Question 26

Absenteeism formula

Answer 26

Lost time rate generates as answer in the form of a percentage Absenteeism= total days absent in month x 100/ total available working days in the month - high absent rates need to be identified - distinction between authorised and unauthorised absence

Question 27

Labour turnover

Answer 27

A measure of the number of employees who have left the business (usually over the past year) relative to the number employed in that period A high percentage is an indicator of poor morale and motivation

Question 28

Absenteeism

Answer 28

- employees are absent from work within minor medical ailments such as an upset stomach or a headache - absenteeism can be a key indicator of low morale and motivation levels

Question 29

Lateness

Answer 29

- if there is a perception among managers that many employees are arriving late to work, this needs to be investigated and monitored properly - calculation could be done by department or section to see if the lateness is a general or localised problem Formula Lateness= total number of late arrivals x 100/ totals number of scheduled attendances - high percentage is usually a good indicator of low motivation levels - persistent lateness shows a disregard for taking the appropriate actions to arrive at work on time that is a lack of motivation

Question 30

Motivation productivity

Answer 30

- how productive employees are - not just a measure of how much is produced; it is a measure of output per employee in a particular period of time - productivity is harder to measure in the tertiary sector where there is no physical product produced

Question 31

Productivity

Answer 31

A measure of output per employeee in a particular period of time - productivity is a key indicator of employee performance

Question 32

Limitations to the use of quantitative data

Answer 32

1. Averages can be misleading - to use a single figure for the whole business would disguise the differences in the data can be misleading 2. Not all departments employ the same number of people - if only a small amount of people work in a department a percentage will have a bigger impact on them compared to a large amount of people working in a department 3. A single figure in isolation is of limited use 4. Numbers do not explain the situation - figures for employee performance cannot explain what is happening in the workplace - many businesses conduct ‘exit interviews’ or ask employees to fill out a questionnaire to discover the reason for leaving

Question 33

Potential benefits to employees of improving performance

Answer 33

- job security - higher pay - a bonus - an improvement in conditions of service e.g. an increased holiday entitlement - an improvement in conditions of work - financial assistance for career development