Performance Management Flashcards
What is an appraisal
A formal assessment of an employees performance
Sometimes called assessment
What are the sections of an appraisal
- Strengths
- Development areas
- Performance targets
- Training needs
- Promotion opportunities
- Pay progression
What are the purposes of an appraisal
- Motivate staff
- Give staff focus
- Staff feel valued
- Set standard/expectation
- Record any issues
What is a managerial appraisal
A method of appraisal where a manager examines and evaluates an employers performance
Advantages of a managerial appraisal
- Employee receives expert input from manager
- Subsequent actions such as promotion, rewards or disciplinary procedures seem fairer
Disadvantages of managerial appraisal
- Manager may not work closely with appraisee to know their strengths and development areas
- Input is limited to one point of view
What is a self appraisal/assessment
When employees assess their own performance, often using a tick sheet to grade aspects of work
Benefits of self appraisal
- Person can formally assess themself
- better if manager isn’t close to employee
- Easy, less intimidating
Disadvantages of self appraisal
- Person May think they’re better than they are
- Person May be conservative in judgement so they don’t seem ‘big-headed’
What is a 360 degree appraisal
Receiving feedback from several people within the business
What may a 360 degree appraisal be appropriate
In a large business where an employee works for multiple teams
State an advantage of 360 degree appraisals
More perspectives allows for a broader picture of performance
State a disadvantage of 360 degree appraisals
Different people may have conflicting targets for an employee
What is a peer appraisal
A method of appraisal where the employees performance is assessed by a colleague
What is an advantage of peer appraisals
If they work closely they are likely to have a better idea of their performance
State a disadvantage of peer appraisals
Both positive and negative relationships may influence the appraisal
What is meant by labour turnover
The number of employees who have left the business, as an annual percentage
What is the formula for labour turnover
Number of employees leaving during year/number employed during year x 100
What is meant by absenteeism
Being absent from work
What is the formula for absenteeism
Total days absent x100/ total available working days per month
What is meant by short term absenteeism
Being absent for a few days
What is meant by long term absenteeism
Longer periods
What is meant by authorised absenteeism
Where permission has been granted for absence
What is meant by unauthorised absence
Absence is by the choice of the employee
What is the formula for lateness
Total number of late arrivals x 100/total number of scheduled attendances
What is meant by workforce productivity
Measure of output relative to input
What is the formula for workforce productivity
Units of output/avg number of employees
What are benefits to a business of improving performance
- Increase output
- Increase efficiency
- Reduce recruitment and selection costs
What are the benefits to employees of improved business performance
- Job security
- Higher pay
- Potential bonuses
- Improvement in work conditions eg safety, holiday entitlement
Limitations of quantitative data (eg labour turnover/absenteeism etc)
- May be misleading (2 people leave out of 6, 33% turnover)
- Numbers aren’t explained eg why people leave
- Averages don’t represent each worker eg productivity
- Figures in isolation are limitless in use eg 20% labour turnover is good if it was 30%
What is minimum holiday entitlement
28 days per year (inc bank hols)
Why may firms increase holiday entitlement
Increase staff morale
What is meant by performance related pay
Financial reward to employees for high performance
When is performance related pay usually used
When work can’t be measured in terms of output
