MEMBERS

Performance
Performance appraisal
appraisal Diola, Chany Rose
The
The benefit
benefit determination
determination
process
process Dela Torre, Irene

Alivio, Christian

Devilleres, John Niel

Alidon, Rhogiemae
 “Labor
“Labor isis prior
prior to,
to, and
and independent
independent of,of, capital.
capital. Capital
Capital us
us only
only the
the fruit
fruit of
of labor,
labor,
and
and could
could never
never exist
exist ifif labor
labor has
has not
not first
first existed.
existed. Labor
Labor isis superior
superior to
to capital,
capital, and
and
deserves
deserves much
much the
the higher
higher consideration”-
consideration”- Abraham
Abraham Lincoln
Lincoln

Introduction
A performance appraisal allows superiors to evaluate team members and give
feedback so that they will know where they are lacking and work on to improve such.
Superiors should be objective when assessing the subordinates. Performance Appraisal
is defined as the process by which a manager or consultant (1) examines and evaluates
an employee’s work behavior by comparing it with preset standards, (2) documents the
result of the comparison, and (3) uses the results to provide feedback to the employee to
show where improvements are needed and why. Performance appraisal are employed to
determine who needs what training, and who will be promoted, demoted, retained, or
fired (Business Dictionary.com)
Objectives
Objectives of
of Performance
Performance Appraisal:
Appraisal:

•To Identify the strength and weaknesses of the employee in which

superior can mentor coach.
•To provide feedback to team members in which their upto.
•To maintain the records in order to determine compensation packages,
salary raise and structure.
•To review performance of the employee and determine the need for
training and development.
•To influence working habits of the employees.
•To assess employee for possible transfer, promotion, retention or
demotion.
 Benefits
Benefits of
of performance
performance Appraisal
Appraisal
1. Promotion: Performance Appraisal helps the superior to draw out the
planned promotion for effective and efficient employees.
2. Compensation: Performance Appraisal can help in planning compensation
package for the employee.
3. Determination of Training and Development: Performance Appraisal helps
the superior to determine the training and development needed by the
employee.
4. Selection Validation: Performance Appraisal helps the superiors to
know the effectiveness and validity of selection processes and procedure.
5. Communication: In every organization, effective communication between
employees and employers is imperative in achieving the goals and
objectives of the company.
6. Motivation: Performance Appraisal will serve as a tool in motivating
employee.
 Sometime,
Sometime, performance
performance appraisal
appraisal can
can create
create anxiety
anxiety to
to the
the employee
employee ifif
not
not carried
carried outout properly
properly whichwhich definitely
definitely should
should not
not be
be the
the case.
case. IfIf the
the
employee
employee is is working
working hard hard throughout
throughout thethe year,
year, then
then he/she
he/she hashas nothing
nothing
to
to worry
worry about
about thethe appraisal.
appraisal. In
In order
order for
for us
us to
to effectively
effectively execute
execute the the
performance
performance appraisal
appraisal we we need
need toto understand
understand thethe need
need to to communicate
communicate
among
among employees.
employees. Generally,
Generally, performance
performance appraisal
appraisal varies
varies from
from one one
organization
organization to to the
the other
other but
but should
should contain
contain the
the information
information about
about
employee
employee and and must
must be be kept
kept confidential.
confidential. In
In discussing
discussing thethe performance
performance
appraisal
appraisal ifif there
there isis aa need
need for
for counseling
counseling itit should
should bebe done
done onon one
one on on
one
one basis.
basis. Address
Address the the queries,
queries, confusion
confusion of of the
the employee
employee privately
privately
remember
remember that that itit is
is aa very
very sensitive
sensitive subject
subject and
and should
should be be handled
handled
professionally.
professionally.
10 Rating Errors to Avoid during Performance Reviews

Rating errors are factors that mislead or blind us in the

appraisal process. Armstrong warned that “appraisers must be
on guard against anything that distorts reality, either favorably
or unfavorably”. These are the 10 rating errors seen most often.
They’re where we can really go off track( S.Armstrong
HR.BLR.com)
1. Central Tendency - Clustering everyone in the middle performance categories to avoid extremes of good or bad
performance, Its easy, but its wrong. This isn’t fair to employees who are really making an effort, and it can be
demoralizing.
2. Favoritism – Overlooking the flaws of favored or “nice” employees, especially those whom everyone likes.
3. Grouping- Excusing below-standard performance because it is widespread; "everyone does it.”
4. Guilt by association- Rating someone on the basis of the company they keep rather than on the work they do.
5. Halo effect - Letting one positive work factory you like affect your overall assessment of performance.
6. Holding a grudge - A dangerous luxury that may result in your ending up in court. Never try to make employees pay for
past behavior.
7. The horns effect - The opposite of the halo effect – Letting one negative work factor or behavior you dislike color your
opinion of other factors.
8. Bias - Allowing your bias to influence the rating. Bias can come from attitudes and opinions about race, national origin,
sex, religion, age veterans status, disability, hair color, weight, height, intelligence, etc.
9. Recency - Rating only recent performance, good or bad . Data should be representative of the entire review period. If
you’re not keeping good notes, you may not remember the whole period. Armstrong noted that “you want to make sure,
again that you're keeping records so that you can adequately describe performance over an entire performance period”
10. The sunflower effect – Rating everyone high, regardless of performance, to make yourself look good or to be able to
give more compensation.
 sSome of the things that can help improve Performance Appraisal

Training - Orient the people conducting the appraisal and ensure that they understand
the process and importance of it as they will find a wide range of skill and abilities.
Feedback to Raters – Raters should be well trained and provide managers who
evaluated their subordinates with feedback, including information on ratings from other
managers to reduces leniency errors.
Employee Participation – By involving employee in the evaluation process, subjective
appraisal will be eliminated and the discussion for any discrepancies between employees
self rating and superior rating, will increase job satisfaction and motivation.
Job Evaluation – Is the systematic way of determining the importance of a job. Its
objectives are to provide hierarchy of jobs that is free from discrimination and felt to be
fair by the employee.
 The process of Job Evaluation
1.
Acceptance – Before performing job evaluation top management must discuss the importance
and uses of the program to the employees and organization. It should be communicated to the
employee through presentations, letters, memo, or orientation to let them know the relevant
aspects of the job evaluation.

2.
Building job evaluation committee – It is not possible for single individual to evaluate all
key jobs in the organization. Usually, job evaluation committee composed of experienced
employees from different departments.
slidesmania.com

3.
Setting the jobs to be evaluated – Every job in different levels should be evaluated and must
be indentified.
 The process of Job Evaluation
4.
Preparing job description – This requires through analysis and evaluation of jobs needs for
successful performance.

5.
Selecting the method of Job Evaluation – The methods that will be used should be identified
while keeping the job factors and organizational needs in mind.
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6.
Job classification – Arranging the jobs order according to their importance using the criteria
such as experience needed, types of responsibilities, skills and knowledge requirements,
conditions in which job performed,etc.
Advantages of Job
evaluation
 It will help to determine the need for more or less skilled
labor workers than those currently employed.
 Discussion of labor allows specialization which will make an
employee focus on the things assigned to them. This will
make an employee become more productive and efficient.
 It connects to pay to the requirements of the job.
 It helps in the selection of the employee.
 It creates a harmonious relationship between employees
and superior.
 It offers a systematic procedure of understand the
importance of the job performed.
Personnel records

 Personnel Records are records relating to

employees of an organization. These
records are collected, real and far-reaching
data identified with concern records and
confined. All data with impact on HR in the
association are maintained in a methodical
control.
Paperless Environment

 With the advent of technology, everything seems to be

paper less in storing and managing records of the
employees. The information is in the variety of software
system such as, HRIS, payroll, time and attendance, on
boarding and tracking of applicants.
 Retention of records is time consuming and complex. To
ensure the reliability of personnel records, you have to
observe the following: make sure that all the records are
legible; any changes to the policy, processes and
procedures should be reflected in your records. Records
need to be complete and up to date.
The Benefits determination process

Employees benefits are part of the

compensation package, which include
the pay for time worked, other
employers payments. (e.g. insurance,
pension, workers compensation).
These are the benefits by the
employee other than the salary.
Reasons for Offering Benefits

It helps attract and retain employees

It increases job satisfaction
Uplift the image of the company with
employees and other organizations
Promoting higher morale among
employee
 Starting a Benefits Plan Design
 Prioritizing benefits
 In deciding the kinds of benefits that are more important ,you need to
have survey with your employees. The in getting all answers you need to
draw a plan consider as the budgetary requirements of the organization.
According to Duchesne

 Long term needs

 Itevaluate not only your immediate needs but looking down the road
as well. Consult with your brokers, get a sense for what your
employees want, and develop a three-year plan that looks at issues of
importance that could be driving cost and health of your employees to
anticipate trends. For example, what impact will healthcare reform
have on premiums, or do you have employee survey data indicating
that strees is an issue that should be addressed (Duchesne).
Communication Considerations

It is also important to consider

psychology when selecting and
communicating benefits to employees.
Duchesne Stated:

 Other Options Benefits Plan

 Health Care Insurance  Retirement / Pension Plan

 Disability Insurance  Flexible Compensation
 Life Insurance  Paid Leave
Other options Benefit Plan

Health Care Insurance

Disability Insurance
Life Insurance
Retirement/Pension Plans
Flexible Compensation
Paid Leave
SOME UNCOMMON
BENEFITS OFFERED IN
THE PHILIPPINES
Company trips
Some companies, advertising agencies in particular, offer free
yearly trips for all regular employees.

Perfect attendance incentive

Commonly practiced in call center companies, there are
incentives offered for people who never get sick and are
dependably punctual. Typically released every month, this
rewards perfect attendance with money and/or other gifts.
Flexitime
On the other end of the spectrum are companies that offer
flexitime and telecommuting possibilities. Some companies offer a
work-from-home day at least once a month, while others allow
their employees to tailor their own schedule to match their lifestyle.

Free meals/overflowing coffee or other drinks

There are companies that offer complimentary breakfast, or those
that offer free lunch once a month or once a week. This reduces
employee downtime by making dining choices easier and keeping
them in the office for meals.
Rice subsidy/allowance
These are offered by some companies in which regular
employees are given one sack of rice per month or per
quarter depending on the policy of the company.

Clothing allowance
Most of the banks in the Philippines offer this kind of
allowance since most of the time employees entertain clients
especially those that work in front lines.
Transportation allowance
An allowance for gas is commonly offered to those with vehicles, but
this benefit becomes unusual when offered to employees who don't own
cars. Instead of transforming the benefit to accommodate cab receipts
or other forms of commuting, those without cars instead have to get gas
receipts from friends to claim it.

Sabbaticals
A sabbatical is an extended break from your job that gives you time to
enhance your academic qualifications, reflect on your accomplishments
and decide how to prioritize your life and career or to take an extended
rest period due to professional burnout. The duration for a sabbatical is
typically one year.