INSEAD Library

Includes bibliographical references and index and glossary

Digitized

Performance Appraisals Contents 1 The Goals of Performance Appraisal 1 The Elements of Performance Appraisals ............................................ 1 Performance Improvement ................................................................... 1 Employee Development........................................................................ 4 Employee Satisfaction .......................................................................... 5 Compensation Decisions ...................................................................... 6 Communication .................................................................................... 8 The 30-Second Recap ........................................................................... 8 2 Improving Performance 9 Measuring Performance........................................................................ 9 Current Performance .......................................................................... 15 Desired Performance .......................................................................... 15 The 30-Second Recap ......................................................................... 18 3 Encouraging Employee Development 19 Becoming a Mentor ............................................................................ 19 Evaluating Strengths .......................................................................... 21 Exploring Employee Interests ............................................................ 22 Matching Strengths and Interests ....................................................... 24 The Need for a Development Plan ..................................................... 25 Creating a Development Plan ............................................................. 26 The 30-Second Recap ......................................................................... 28 4 Striving for Employee Satisfaction 29 The Benefits of Having Happy Employees ........................................ 29 What Makes Employees Happy?........................................................ 35 Employee Differences ........................................................................ 40 The 30-Second Recap ......................................................................... 41 5 Compensating Employees 42 A Common Occurrence ...................................................................... 42 Avoiding Problems ............................................................................. 44 The Value Proposition .......................................................................45 Base Pay............................................................................................. 49 Incentive Compensation ....................................................................50 The 30-Second Recap ....................................................................... 51 6 Improving Communication 52 The Impact of Poor Communication .................................................52 The Keys to Effective Communication .............................................53 The Role of Communication in Performance Appraisals ................. 61 The 30-Second Recap ....................................................................... 64 7 Looking at Sample Questions 65 Appraisal Form Design ..................................................................... 65 Performance....................................................................................... 70 Other Evaluation Criteria .................................................................. 72 360° Feedback ...................................................................................77 The 30-Second Recap ....................................................................... 78 8 Three Approaches to Performance Appraisals 79 Approach One: Favors the Evaluator ................................................79 Approach Two: A Balanced Approach .............................................79 Approach Three: Employee Participation .........................................80 A Few Reminders ..............................................................................82 The 30-Second Recap ....................................................................... 83 9 Preparing for the Meeting 84 Process Versus Project ...................................................................... 84 Your Style ......................................................................................... 84 Employee's Style ............................................................................... 87 Blending Styles ................................................................................. 90 The 30-Second Recap ....................................................................... 91 10 The Meeting 92 Factors Influencing Employee Comfort ............................................92 Setting the Tone of the Meeting DCF ...............................................95 The 30-Second Recap ....................................................................... 99 11 Gaining Your Employees' Trust 101 The Importance of Trust .................................................................101 Trust--Right or Privilege? ............................................................. 102 The 30-Second Recap .....................................................................107 12 Forging Agreements 108 Levels of Agreement ...................................................................... 108 Agreeing on Your Employee's Strengths ....................................... 109 Discussing Improvement Opportunities ......................................... 110 The 30-Second Recap .....................................................................116 13 Feedback Systems and Recognition Programs 117 Feedback Systems--The Missing Link ..........................................117 Marketing ........................................................................................119 Sales ................................................................................................122 Production .......................................................................................123 Credit and Collection ......................................................................123 Human Resources ........................................................................... 124 Finance ............................................................................................125 Recognition Programs .................................................................... 127 The 30-Second Recap .....................................................................128 14 You Can't Win 'Em All 129 The Problem.................................................................................... 129 The Solution ....................................................................................133 The 30-Second Recap .....................................................................138 15 Pulling It All Together 140 Performance Appraisal--A Process ...............................................140 Time Commitments ........................................................................ 141 Establishing Time Frames For Corrective Action ..........................143 The 30-Second Recap .....................................................................146 A Glossary B Further Readings Index 147 150 151