Handout 4 PERFORMANCE MANAGENEMT AND EMPLOYEE MOVEMENT

✔ The clamor for an effective performance management system has become

increasingly important due to globalization, increased competition, and other social
and economic pressures.
✔ Performance management is effective if it identifies excellent performance, uses
appropriate appraisal techniques, provides feedback to employees regarding their
performance, evaluates employees fairly, minimizes biases, and exercises fairness.
✔ There is a difference between performance management and performance
appraisal.
✔ The stages in the performance management cycle are the following: planning,
monitoring, reviewing, and acting.
✔ The areas covered by planning are roles, key result areas, technical competence,
behavioral competencies, objectives, and core values of the organization.
✔ The agreed-upon integrated objectives include corporate, functional, team and
individual ones.
✔ Performance objectives can be done in terms of outputs and outcomes.

✔ Performance monitoring provides a performance plan, personal development plan,

and process details.
✔ Performance reviewing has the following objectives: planning, motivation, learning
and development, and communication.
✔ The purposes of performance appraisals involve needs assessment, employee
movements, basis for merit increases, legal concerns, development, channels of
communication, and sources of motivation.
✔ Performance appraisal techniques are divided into individual evaluation and multiple
person evaluation methods.
✔ Individual evaluation methods include the following: graphic rating scale, forced
choice technique, critical incident technique, checklists and weighted checklists,
behaviorally anchored rating scale (BARS), and essay evaluation.
✔ The multiple person methods are as follows: forced distribution, ranking, paired
comparison, 360-degree feedback and management by objective.

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 ✔ The 360-degree feedback is a comprehensive assessment tool that evaluates
individual performance across all qualified raters that are associated and affected by
the rater’s performance.
✔ The common errors committed by raters are the halo effect, ambiguous evaluation
standards, stereotyping effect, recency effect, primacy effect, central tendency, hard
and/or easy to please tendencies, and mirror effect.
✔ The following areas should be included in training raters: methods, techniques and
guidelines for setting goals and objectives, documentation of performance
standards, uplifting employee morale and motivation, how to observe employee
performance, how to deal with employee resistance to performance evaluation, and
providing constructive feedback, among others.
✔ The four main types of employee movement are promotion, demotion, transfer, and
separation.
✔ The steps in demoting an employee are as follows: identify the reasons for demoting
an employee; communicate the decision to the employee; make a follow-up after
demotion; and have a contingency plan.
✔ The types of employee transfers are production transfer, replacement transfer,
remedial transfer, and versatility transfer.
✔ The types of separation are termination with just cause, termination with authorized
cause, resignation, and retirement.
✔ Issues related to resignation are the following: compensation, work relationships,
major changes in the organization, organizational culture, and career development
program.

Performance management is the process by which managers, supervisors,

and executives assess the performance of employees to ensure that it accords with
the company’s objectives. Armstrong defines it as “a systematic process for
improving organizational performance by developing the performance of individuals
and teams.” It is the best way of managing and rewarding performance based on
planned goals. Armstrong and Baron describe it as a “strategic and integrated
approach to delivering sustained success to organizations by improving the
performance of the people who work in them and by developing the capabilities of
teams and individual contributors.”

Performance management is effective if it does the following:

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 1. Identify excellent performance
2. Use appropriate appraisal techniques
3. Provide feedback to employees regarding their performance
4. Evaluate employees fairly
5. Minimize biases
6. Exercises fairness

PERFORMANCE APPRAISAL AND PERFORMANCE MANAGEMENT

Performance appraisal is often synonymous to performance management.

Performance appraisal is a formal annual assessment of employees by their
immediate superiors. Periodic performances reviews are done routinely by
managers.

In contrasts, performance management is a continuous and more

comprehensive process of managing people. It is not exclusive to evaluating
employees annually or periodically. It is about motivating, guiding, and rewarding
employees, thus helping them hone their potential and improve organizational
performance.

Planning

Performance
Acting Management Monitoring
Cycle

Reviewing

Performance Management Cycle

Adapted from: Performance Management Cycle by Michael Armstrong,

Performance Management: Key Strategies and Practical Guidelines, 2006

1. Planning – this pertains to the setting of performance goals and expectations of

groups (departments and units) and individuals (subordinates and superiors). It

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 ensures that all efforts work toward the achievement of company objectives. All
employees ae involved in the planning process so that they will understand what the
company wants to achieve. It also explains the importance of managing effective
performance and how such management is to be carried out. Planning covers the
following areas which should be defined clearly and comprehensively as a first step
for a successful performance management system:
a. Roles. The manager (immediate superior) and the employee should
discuss key result areas and define their respective roles. Thus, discussion
ensures that both possess the necessary behavioral competencies and
the core values that each of them should uphold.
b. Key result areas. The employee at this point should think of the most
important tasks that he/she has been assigned with and the kind of
performance that is expected from him/her. He/she should also find out
how others have performed the same tasks before. This examination
should be discussed so that all the tasks (which may appear multiple or
many) can be summarized or grouped into key result areas,
c. Technical competencies. The employee should possess the essential
knowledge and skills (e.g., procedural, problem-solving, planning, and
communication) to be able to do his/her tasks well.
d. Behavioral competencies. The manager or the immediate supervisor
should discuss the behaviors/traits expected by the organization. These
traits include drive, teamwork, leadership, planning, communicative skills,
etc.
e. Objectives. The employee and the immediate superior should agree on
the performance objectives (e.g., sales representatives should aim to
minimize customer satisfaction). Objectives should be quantifiable and
measurable in terms of sales, income level, output, cost reduction, etc.
Importantly, the employee and the immediate superior should agree on
and integrate the performance objectives.

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 CORPORATE FUNCTIONA TEAM INDIVIDUAL
L
Define the aspects Agree on
Provide a quality Ensure that individual
of customer service performance
product that standards are in line
in terms of value standards set
satisfies customers, with team objectives
for money, quick previously &
coupled with and make sure that
response, superior ensure that they
superior customer skills & competencies
quality product are congruent to
service and required are known
performance, & corporate &
support. and used.
customer functional

Agreed-upon Integrated Objectives

Adapted from: Two-way Process of Agreeing on Integrated Objectives
By Michael Armstrong; Performance Management: Key Strategies & Practical
Guidelines, 2006
f. Core Values of the Organization. The core values of the organization
include integrity, loyalty, industry, and honesty.

2. Monitoring – monitoring provides the mechanisms by which performance will be

measured. It also entails giving constant feedback to employees regarding their
progress in achieving the goals of the organization. In monitoring performance, a
performance plan using the agreements made during the planning stage is provided.
A personal development plan is also accomplished so that the immediate superior
can support the employee’s improvement of knowledge and skills. This may include
coaching, mentoring, job enlargement, or job enrichment activities. Performance
measures can be established in terms of output and outcome. What is quantifiable is
an output whereas what can be visible but cannot be measured in quantifiable terms
is called an outcome.
3. Reviewing – performance is reviewed from time to time and compared with the
performance standards, goals, and expectations which were agreed upon during the
planning stage. the act of reviewing performance should be a continuous process.
Managers should always allot time to dialogue with their subordinates. During such
sessions, the agreed-upon objectives and development plans should be reviewed to
give room for revisions if any are needed.
Reviewing has the following objectives:
a. Planning. This is the opportunity to find out if there is a need to revise the
performance agreement between the employee and the immediate
superior.
b. Motivation. This encourages the employee to grow or take control of
his/her performance.

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 c. Learning and development. This is an opportunity to further develop the
employee’s knowledge and skills to provide hm/her with learning
activities that maximize his/her potential.
d. Communication. This promotes two-way communication between the
superior and the subordinate. Roles and performance expectations are
clarified and a relationship between them is built on mutual trust is
developed.
4. Acting – this includes activities based on the performance review. It means giving an
employee feedback on his/her accomplishment of organizational goals. Feedback
based on evidence which should be fair to the employee. It should describe what
actually happened and should not be based on the mere judgment of the superior.
Thus, it is not all subjective. The manager should focus on the aspects of employee
performance that can still be improved. If there is a need for training – enhancing
employee skills or acquiring new tasks and responsibilities – specific programs
should be devised. Outstanding performances, on the other hand, are rewarded and
recognized.

The three R’s of performance management and employee movement are rewards,
retention, and remuneration.

REWARDS
Rewards are tangible manifestations of a job well done or a good deed. They
are included in the scope of performance management because conducting
performance appraisal involves acknowledging the employees’ contribution in the
attainment of the firm’s objectives. The outstanding performance of employees benefit
the organization. Employees who perform outstandingly, as indicated in the
performance appraisal, are rewarded by the organization in different ways.
Under the performance management system, there are periodic
performance assessments conducted using various tools and techniques, either
individually or by group. Performance appraisal determines whether employees
perform effectively and are on a par with the company’s expectations. It concretizes
and measures performance as an aspect of the performance management system.
Formal evaluation as opposed to the informal one is highly preferred and recommend.
An informal evaluation is done by mere observation. Over the years,
performance appraisal has expanded its role from simply determining salary increase or
job promotions to making of other employee-related decisions which dramatically affect
long-term organizational performance.

The following are the purposes of performance appraisal:

a. Needs assessment – the result of performance evaluation provides
relevant information about the specific training needs of the employees.
b. Employee movement – the appraisal helps management decide who will
be promoted aided by concrete evidence of meritorious performance.
c. Basis for merit increase – in addition, it also justifies merit increases.

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 d. Legal concerns – if there are issues triggered by certain actions like
termination of employment, the appraisal document serves as basis of
such decision. Other questions about performance issues include
rewards provision, layoff, and transfer.
e. Development – a series of performance appraisals monitors the growth of
employees. These periodic records can assist the career pathing and
development of personnel.
f. Channel of communication – this is a good source of enhancing
discussions on performance issues between the employee and the
immediate supervisor. It becomes an avenue for ironing out differences
and articulating certain career concerns or questions on performance
ratings.
g. Source of motivation – performance evaluation is one of the best ways to
keep employees motivated. Every performance appraisal period
generates excitement on the part of the employees. It is one way of
boosting their morale and encouraging them to make good impressions
and give outstanding work performance.

The following are the different performance appraisal techniques:

1. Individual Evaluation Methods

a. Graphic Rating Scale - This is the most popular technique. Employees
are rated using a set of traits or characteristics such as punctuality,
quality of work, flexibility, cooperation, and the like.
Advantages
⮚ It is very popular and easy to use and makes comparisons
between employees possible.
⮚ It clearly defines the core traits needed for the job.
Disadvantages
⮚ The traits it identifies are too general and rater may tend to
underrate or overrate an employee.
⮚ As a result, it may not accurately describe the employee.

Traits Outstanding Good Satisfactory Fair Unsatisfactory

Attitude towards
work
Teamwork
Creativity
Flexibility
Honesty
Punctuality

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 b. Forced Choice Technique – this is a technique that branched out from
the graphic rating scale. The HR develops a set of descriptive
statements and the supervisors rate their subordinates based on how
they behave on the job.
Advantages
⮚ This method is inexpensive and fairly easy to use.
Disadvantages
⮚ The rater is forced to choose from a number of statements
that may or may not describe an employee.
⮚ The rater can become subjective
Here are some examples of descriptive statements:

____________ mingles well with co-employees

____________ understands directions quickly
____________ manages time well
____________ resourceful
____________ innovative
____________ controls his or her emotions

c. Critical Incident Technique – in this technique, the rater or immediate

supervisor keeps track of all the critical or relevant behaviors of the
subordinates. A logbook is used to record these behaviors, whether
good or bad. Supervisors should accurately track positive and
negative works behaviors using this technique.
Advantages
⮚ It provides an actual picture of performance through the
handling of a critical incident, thereby giving a clear, fair,
concrete, and accurate evaluation.
Disadvantages
⮚ It becomes tedious though to the supervisor because
continuous observation should be done for each of his/her
subordinates.

d. Checklists and Weighted Checklists – the HR provides a list of

descriptive statements with corresponding weights. The rater checks
the statements which would likely describe the employee. Otherwise,
he/she leaves it blank. He/she can check as long as they apply to the
traits of the employee concerned.
Advantages
⮚ The technique is not time-consuming.

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 ⮚ The checklists are simpler than the weighted checklists
because there are no weights.
⮚ The supervisor just checks the statements that likely describe
the employee.
⮚ There are corresponding scores based on a number of checks.
Disadvantages
⮚ It may not provide all the possible tasks of an employee.

⮚ There is also a tendency for the supervisor to merely check the

statements without mulling over all the relevant factors
involved.
⮚ In such cases, the evaluation becomes perfunctory.

Descriptive Statements Weights

____________ tactful in dealing with concerns

Of fellow workers 8.0
____________ systematic in doing the job 7.5
____________ submits reports on time 4.9
____________ shows leadership in group activities 5.9
____________ speaks clearly 5.7
____________ shows initiative in meaningful projects 6.3

e. Behaviorally Anchored Rating Scale (BARS) – there are about nine

performance dimensions with anchor statements of critical incidents
in a scale. The ability of the sales representative to provide accurate
information to customers is an example of a performance dimension.
Advantages
⮚ It describes a particular aspect of a job in great detail.

⮚ It provides more objectivity than the previous techniques

mentioned.
Disadvantages
⮚ It is too complicated

⮚ It is not a very popular technique because it is time-consuming

9

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 Very high

8
could be expected to make actual purchase from a
customer who was provided with accurate product
information 7

6
could be expected to be assured by the customer fore the
purchase of the product in the next few days because of
accurate product information. 5

could be expected to ask the help of immediate supervisor 4

to provide more accurate product information.
3

could not warrant actual purchase because of inaccurate

product infomation provided to customers. 2

1
Very low

f. Essay Evaluation – in this technique, the rater discusses in narrative

form all the levels of performance manifested by his/her
subordinates.
Advantages
⮚ The rater can discuss what he/she feels is relevant to an
employee’s performance without the use of statements to
describe them.

Disadvantages
⮚ It is not advisable if the rater has many direct reports.

⮚ It is time-consuming and helpful only to managers who have a

flair for writing.
⮚ There is no consistent and specific criterion by which to gauge
performance.

2. Multiple Person Evaluation Needs

a. Forced Distribution. The forced distribution technique allows a
supervisor to group his/her subordinates at his/her own discretion.
This technique is very easy to use, so it is widely popular. However, it
is controversial because employees may not fit into the groups
identified by the manager.
b. Ranking. In this method, the supervisor rates all the employees from
first to last. A manager can easily make decisions such as who
becomes employee of the month or who gets laid off. It also

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 motivates the employees to work better since they will know where
they stand in comparison with the others.
c. Paired Comparison Technique. The supervisor rates employees by
pair. The supervisor determines the most preferred employee based
on his/her appearance in the pairings. The advantage of this method
is that managers rank employees by pair so assessing them becomes
simpler because it is done two at a time. The employee who has a
mediocre performance when paired to an outstanding performer,
nevertheless, may cause the outstanding employee to obtain a lower
rating as opposed to when the latter is evaluated individually.
d. Management by Objectives (MBO). This technique allows an
employee to set his/her own goals or objectives by himself/herself.
During the evaluation period, the director should meet the manager
and discuss the ratings based on the achieved objectives. The director
or department head should emphasize that the objectives should be
realistic, challenging, and achievable under normal circumstances.
This technique is ideal because it develops the work commitment of
ratees as members of the team and, thus, motivate them to further
excel in performance. Moreover, it focuses on results that are
relevant. However, it is too individual-focused and mainly based on
the goals that have been achieved. The performance of an individual
is not compared with the performance of other employees. Also, a
goal is only set on a short-term basis.
e. 360-degree Feedback. As the term implies, immediate supervisors are
not the only raters. Other people also evaluate the employees. This
technique is said to be comprehensive and gives a full-blown
evaluation of the employee or an assessment done in a circular
fashion. The advantage of this technique is that employees are
provided with a clear picture on how others see them as performers.
Thus, it gives a more accurate view of their performance. It also
increases their awareness of their competencies, skills, and
knowledge because more valid and objective feedback they receive.
However, one obvious disadvantage is that not all employees give
honest feedback. There may be politics involved as people become
subjective and provide feedback based on their personal biases
against the people being evaluated.

RETENTION
Retention is the act of maintaining the employees in the organization. It entails
earning their loyalty. One of the best ways to do this is to evaluate them fairly and
objectively.

1. Halo effect – this usually happens when a rater uses one particular aspect of the
employee’s good traits.
2. Ambiguous Evaluation Standards – ambiguity occurs if one rater’s standard for
outstanding work performance contradicts that of another rater from a different

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 department. The former may be hard to please and, therefore, may only give an
average rating as compare d to the latter who may give an outstanding rating.
3. Stereotyping Effect – stereotypes may influence the rater’s decision as to who
will garner a high ranking and who will earn a low one.
4. Recency Effect – if recent events prior to the actual evaluation period are easily
remembered and given more weight than the accumulation of performance
behaviors for the whole evaluation period, the raters commit the recency effect.
5. Primacy Effect – raters may have first impressions of the employees that linger
and influence that ratings they give during an evaluation. For these raters, first
impressions last and become a dominant assessment criterion.
6. Central Tendency – in statistics, there are measures of central tendency such as
mean, median, and mode. The central tendency deals mostly with the mean or
average.
7. Hard/Easy to Please Tendencies – there are raters who are hard to please and
feel that employees do not meet their expectations in terms of performance.
They set their own high standards that are not only difficult to meet but are also
beyond the standards set by the firm.
8. Mirror Effect – this error happens when a rater gets affected or influenced by
his/her, immediately preceding performance assessment of an employee. To
eliminate this error, it is suggested that companies provide extensive training
programs for raters.

Aspects where managers and supervisors who conduct performance appraisals

need/require training in the following:
a. Methods, techniques, and guidelines for setting goals and objectives
b. Ways of evaluating the performance of employees
c. Documentation of performance standards
d. Filling out a performance appraisal form
e. Prevention of performance evaluation errors
f. Questions on appraisal techniques
g. How to answer employee questions and queries
h. Improvement of rapport and communication
i. Uplifting employee morale and motivation
j. How to observe employee performance
k. How to deal with employee resistance to performance evaluation
l. Tracking results
m. Providing constructive feedback
n. Post-review actions
Training can be done through special workshops conducted by professional HR
consultants or experts in the field of HRM. Sessions can be held in seminar halls,
training rooms, conference halls, boardrooms, or some other venue far away from
the workplace.

REMUNERATION
Remuneration refers to payments equivalent to the value of the tasks performed. In
performance evaluation, remuneration is equated with employee movement or how

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performance evaluation transforms an employee’s status – higher, lower, or at same level
by either promoting or demoting him/her or keeping him/her at the same level. It may also
mean quitting or resigning from the organization.

The Four (4) Main Types of Employee Movement

1. Promotion refers to an employee’s movement to a higher level or position.

Promotion decisions can be made either on the basis of seniority or through merit
based on performance. Seniority refers one’s length of service in an organization.
Merit is one’s value in terms of performance. Under a straight seniority system, the
only factor considered in promotion is seniority. In the straight seniority system, all
employees have the chance to get promoted if they have worked with the
organization long enough.
Advantages
⮚ There is no conflict or competition among employees because the basis of
promotion is very clear to them.
⮚ Employees are not pressured at work since what they are building is loyalty
to the organization.
Disadvantages
⮚ Not all employees want this kind of system to be the basis of moving up the
career ladder.
⮚ Some employees like to be challenged on the job, and the more ambitious
employees are not willing to wait for their turn to get promoted.
⮚ Employees are not motivated to work harder because they are not
challenged to perform better on the job.
Promotion by merit uses qualifications and performance as the basis for
promotion. This is ideal because good performance is rewarded. Employees are also
encouraged and motivated to perform well because of promotion opportunities.
Performance management is fostered because employees work their way up the
career ladder and the organization promotes managing performance through the
use of the set performance standards. However, it is quite difficult to gauge merit
base on the basis of qualifications and performance. There is too much politics as
well as conflicts associated with it. Employees tend to figure conflicts, and personal
issues arise due to promotion. There are questions about how people are selected
for promotion.
Promotion on the basis of a combined seniority and merit produces mixed
reactions because of the relative ways or variations in applying this system. There
are promotions where seniority has a higher percentage than merit, or vice versa.

2. Demotion refers to an employee’s movement to a lower level or position. There are

instances when an employee is demoted because of inefficiency or poor
performance. Instead of being terminated, an employee is given the chance to work
in the firm, but in a lower position.

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 Steps on how to demote an employee without triggering conflicts and issues of unfair
treatment:
a. Identify the reasons for demoting an employee
b. Communicate the decision to the employee
c. Make a follow-up after demotion
d. Have a contingency plan

3. Transfer is an employee’s movement to another position but within the same rank
or responsibility. It is a part of job rotation. Transfer may also mean relocation to
another branch if the company has many branches nationwide.

Four (4) Types of Employee transfers:

a) Production transfer - shortage on one department & surplus on the other.
b) Replacement transfer – replacing/relieving an old employee from a heavy
workload.
c) Remedial transfer – to rectify/correct a faulty selection in recruitment or
placement.
d) Versatility transfer – this provides the opportunity for an employee to
increase his/her skills by transferring him/her from one department to
another through job rotation. In most instances, this practice prepares
the individual for promotion

4. Separation is an employee’s movement or leave-taking (departure) from the

organization. It has four sub-types: (a) termination with just cause, (b) termination
with authorized cause or lay-off, (c) resignation, and (d) retirement.

a. Termination with just cause is due to the employee’s fault. It is the

company’s decision to terminate the employee because of a just or valid
cause such as malversation of funds, theft, and fraud. In another
instance, termination with just cause is a result of an employee’s failure
to undergo the probationary period successfully. Unsatisfactory
performance means not meeting the standards of the company.
Therefore, the services of an employee under probation are terminated,
or he/she is not “regularized.”
b. Termination with authorized cause is often called layoff. It is the
company’s decision to lay off employees on any of the following grounds;
1. A new technology has been introduced and there are positions
which have been evaluated as redundant. The se jobs only
duplicate the functions of the newly-installed technology.
2. A department or division will be closed permanently as a labor-
saving measure. The tasks of the office will be taken over by
another department.
3. The company will merge with another company. Mergers usually
result in two similar jobs or position. If there are two accountants,
one has to be retained and the other has to be laid off.

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 Layoffs usually entail fair separation packages so that the employees affected
may start anew in whatever way possible. A severance package helps an employee
prepare for temporary or permanent unemployment. It varies from company to
company and from one employee to another.
A severance package may include the following:
● The employee’s remaining regular pay

● Additional salary based on remaining months of service

● Payment of unused sick leaves

● Insurance

● Retirement benefits
A company, on the other hand, may consider the following to determine how
much to offer as severance pay:
● Current salary of the employee

● Length of service

● Current position

● Performance (for most recent years)

c. Resignation is an employee’s voluntary decision to leave the company.
The reasons for resignation are varied. Some employees transfer to other
companies to obtain higher salaries and benefits. Others consider
resignation a career move and a chance to look for more challenging jobs
and positions that maximize their skills and potential. A few opt to start
and manage their own business while a number leave the country to
work abroad.
One of the pressing problems of companies is employee retention. It
is the process by which management encourage employees to remain
with the company. One particular issue under employee retention is how
an organization can prevent employees from leaving.
Employees usually resign to look for better opportunities. They know
their value as employees and, therefore, are easily dissatisfied when
companies do not treat them fairly. They are also aware that other
companies would accept them immediately once they decide to apply.
The company should address certain issues that lead to an employee’s
resignation:
● Compensation. Employees who have high self-worth and
know their bankability always have high expectations
regarding the total compensation package. Compensation
issues should be discussed before an employee is offered a
particular job. Employees who initially have high hopes may
end up leaving the company if the latter does not keep its
promise of better salaries and benefits.

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 ● Work relationships. Aside from compensation, some
employees resign because of broken or uneasy relationships
either with his/her immediate superior or with co-workers in
the same area or department. Good relationships affect
employee motivation. Employees are enthusiastic to work in a
positive, conducive environment. Some employees are greatly
affected by how their co-workers support or relate with them.
Some workers are also uncomfortable with superiors whom
they perceive to be unapproachable or unsupportive.
● Major Changes in the Organization. Tenure has become
unpredictable in some industries. Mergers, acquisitions, and
closures have adversely affected employees. Those who were
left after massive layoffs think of leaving as well because they
felt insecure and anxious of getting laid off in the future.
People who remain after a mass layoff face uncertainties.
● Organizational Culture. Employees leave upon discovering
that the company culture does not jibe with their personal
values. Another aspect of organizational culture is the way it
shows appreciation for a job well done. In other instances,
there are employees who are dismayed at the top
management because it is not supportive of highly effective
and worthy, but quite costly, projects.
● Career Development Program. There are companies that do
not pursue career development programs for their employees.
People without foresight and incapable of imagining the
possible top positions they may assume later on in their
careers may opt to resign early. Highly skilled employees do
not want to remain in the same position or level during their
entire tenure in a company. If there are no career
opportunities in their own company, they may seek them
somewhere else.

d. Retirement is the end of an employee’s career in a company. This

happens to people between the ages of 60 and 65 years. It signals a new
beginning for retirees and the opportunity for them to do other things.
An employee retires from an organization either satisfied or dissatisfied
depending on how he/she looks at his/her entire work experience.
● Early retirement. It is availed of by employees who have
health-related issues. Due to poor health, a company may
decide to terminate an employee even before his/her actual
retirement age. If it is deemed necessary for the employee to
leave the company permanently to rest and recover from an
ailment, then this is also considered a retirement.

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