QUIZ 2

Performance Appraisal

Performance Appraisal

A formalized means of assessing worker performance in line with established organizational standards, aiming to see if workers are performing according to these standards.

KPIs - Key Performance Indicators

Specific and observable metrics used to evaluate individual performance.

KRAs - Key Results Areas

Broad areas outlining the key results expected from a position or department.

Performance Development

Assessment of performance with the goal of providing feedback to facilitate improved performance through interventions like training or mentoring.

Performance Management

Incorporates appraisal and development to make performance-based administrative decisions and help employees improve.

Three-Step Appraisal Process

Setting performance standards, assessing actual performance, and providing feedback to employees.

Purpose of Performance Appraisal

Basis for administrative decisions, punishments, rewards, and employee development.

Evaluators of Performance

Supervisors, peers, subordinates, and customers who provide feedback on employee performance.

Self-Appraisal

Employees evaluating their own performance, influenced by cultural differences and used for self-awareness and improvement.

Rater Bias and Errors

Various biases and errors like Horn Effect, Halo Effect, and Leniency Errors that can impact performance evaluations.

Frame-of-Reference Training

Aims to establish a shared understanding of the rating task among evaluators.

360 Degree Feedback

Utilizes multiple viewpoints for manager feedback, involving self-assessment, peer evaluation, subordinate feedback, and supervisor appraisal.

Calibration Meetings

Conducted to address discrepancies in ratings by multiple raters and mitigate biases, enhancing appraisal accuracy.

Six Points of a Legally Defensible Performance Appraisal System

Guidelines including job analysis, job-relatedness, training for raters, management review, appeal mechanisms, and performance documentation.

Objective Measures

Quantitative performance criteria based on easily quantifiable behaviors or results, aiding in assessing job performance objectively.

Subjective Measures

Qualitative performance criteria relying on knowledgeable raters, emphasizing the subjectivity of experts in evaluating job performance.

Graphic Rating Scales

Common rating scale assessing individuals on various performance dimensions using a multi-point scale, prone to rating errors like halo effect.

Employee Comparison Methods

Techniques like rank order, paired comparison, and forced distribution for comparing employees based on performance, aiming to eliminate rating biases.

Behavior-Focused Rating Forms

Evaluation forms based on observable behaviors, including Critical Incident Reports and Behaviorally Anchored Rating Scales (BARS).

Training and Development

Planned efforts to enhance employees' job-related knowledge, skills, abilities, and behaviors, aiming to improve performance and organizational efficiency.

Mission

Describes the path towards achieving the vision and the qualities needed to reach the goal.

Training Aim

Provides a general statement of intent for the entire training program.

Instructional Objectives

Specify measurable accomplishments trainees should achieve post-training.

Components of a Learning Objective

Include performance, condition, and standard for clear objectives.

Transfer of Training

Focuses on applying training in the work setting.

Trainee Characteristics

Considers individual differences in ability and motivation for learning.

Design Factors that Affect Transfer of Training

Include feedback, identical elements, and overlearning.

Training Methods

Include on-site, off-site, lecture, case study, audio-visual instruction, role-playing, behavior modeling, and more.

Developmental Interventions

Include mentoring, executive coaching, and employee career development programs.

Presentation Skills

Tips for trainers to enhance their presentation delivery during training sessions.

Training Evaluation

Importance of evaluating training effectiveness and the steps involved in training evaluation.

Transfer of Training

Concerned with the person’s performance on the job rather than the training setting, focusing on whether trainees can apply what they have learned.

Kirkpatrick’s 4 Levels of Training Evaluation

A model consisting of four levels - Reactions Criteria, Learning Criteria, Behavior Application Criteria, and Results Criteria - to evaluate training effectiveness.

Level 1

Reactions Criteria:Measures trainees' impressions of the training program's value, learning received, and enjoyment, often through immediate evaluation surveys.

Level 2

Learning Criteria:Assesses the amount of learning that has taken place, often through pre-tests and post-tests to compare knowledge acquisition.

Level 3

Behavior Application Criteria:Evaluates the application of newly learned skills on the job, focusing on changes in behavior post-training.

Level 4

Results Criteria:Measures the impact of training on organizational outcomes like productivity, sales, or quality of work.

Pretest-Posttest Design

A study design involving performance measures before and after training to assess learning or behavior change.

Control Group Design

Compares trained employees to untrained ones to evaluate the effects of training, often using a test or task performance.

Solomon Four-Group Design

A program evaluation method using two treatment and two control groups to address limitations of other designs.

Employee Compensation

All forms of pay or rewards given to employees, including direct financial payments and indirect financial benefits.

Role of HR/Compensation Manager

Responsible for creating policies consistent with the firm’s strategic aims, conducting salary surveys, and ensuring equity in compensation.

Equity Theory of Motivation

Focuses on the balance between an employee's contributions and rewards, influenced by comparisons with others.

Four Forms of Equity

External Equity (comparison with other companies), Internal Equity (comparison within the same company), Individual Equity (comparison with co-workers), Procedural Equity (fairness in decision-making processes).

Methods to Address Equity Issues

Include salary surveys, job analysis, performance appraisal, and communication to maintain equity in compensation.

Establishing Pay Rates

Involves conducting salary surveys, job evaluation, and determining compensable factors to set fair wages.

Comparable Worth

Aims to ensure equal pay for jobs of comparable value, addressing gender pay gap issues.

Payroll Salary Compensation and Benefits in the Philippines

Governed by the Labor Code, includes minimum wage, overtime, premium pay, holiday pay, and service charges regulations.

Exceptions to Coverage of Benefits

Certain categories of workers like government employees, managerial staff, and field personnel may not be entitled to certain benefits.

Service Incentive Leave

Entitles employees with at least one year of service to five days of paid leave, convertible to cash if unused.

Parental Leaves

Includes maternity leave, paternity leave, solo parent leave, gynecological leave, and leave for victims of violence, as per the Labor Code of the Philippines.

13th Month Pay

Mandatory benefit for rank-and-file employees, to be paid in full before December 24th, with a formula based on the annual salary divided by 12 months.

Managerial vs

Managerial employees have decision-making powers, while rank-and-file employees do not influence decisions affecting others.

Prorated 13th Month Pay

Calculated for employees who worked less than a year, based on monthly basic salary multiplied by months worked divided by 12 months.

13th Month Pay

Mandatory annual payment to rank-and-file employees before December 24th, split in half by some companies, entitled even if resigned mid-year.

Separation Pay

Claimed under authorized causes per Labor Code, not for just cause terminations, computed based on contract terms or Labor Code provisions.

Retirement Pay

Entitled to private-sector employees aged 60-65 with at least 5 years of service, calculated as half month's salary for each year served.

De Minimis Benefits

Non-taxable incentives below Php 30,000, including medical cash allowance, rice subsidy, uniform allowance, and other small benefits.

Social Security System (SSS)

Mandatory for private sector employees, contributions cover maternity, retirement, sickness, disability, death, and pension benefits.