Performance Evaluation and Separation Pangasinan State University Urdaneta City Philippines

1. Human Resource
Development and
Management
ME 212 - SUMMER 2012
ALVIN PEREZ ABALOS
Master in Management Engineering
Module 13
Performance Evaluation
Pangasinan State University – Urdaneta City

2. Performance Appraisal System: The concept
 Performance
appraisal is a
management tool which
is helpful in motivating
and effectively utilizing
human resources.
Assessment of human
potential is difficult, no
matter how well
designed and
appropriate the
performance planning
and appraisal system is.
2–2

3. Objectives of Performance Appraisal
Employees would like to know from a performance
appraisal system:
 concrete and tangible particulars about their work;
 assessment of their performance.
This would include how they:
 did;
 could do better in future;
 could obtain a larger share of rewards; and
 could achieve their life goals through their position.
2–3

4. Objectives of Performance Appraisal
Therefore an employee  their work satisfaction;
would desire that the
appraisal system should
aim at:
 their personal
development;
 their involvement in the
organization
2–4

5. Objectives of Performance Appraisal
From the point of view of  measuring the efficiency
the organization, with which human
performance appraisal resources are being used
serves the purpose of: and improved;
 providing information
about human resources and
their development;
2–5

6. Objectives of Performance Appraisal
 providing compensation  maintaining
packages to employees; organizational control.
2–6

7. Objectives of Performance Appraisal
Performance appraisal should also
aim at the mutual goals of the
employees and the organization.
This is essential because
employees can develop only
when the organization's interests
are fulfilled. The organization's
main resources are its employees,
and their interest cannot be
neglected. Mutual goals
simultaneously provide for growth
and development of the
organization as well as of the
human resources. They increase
harmony and enhance
effectiveness of human resources
in the organization.
2–7

8. Uses of an Appraisal System
A properly designed performance appraisal system can:
 help each employee understand more about their
role and become clear about their functions;
 be instrumental in helping employees to better
understand their strengths and weaknesses with
respect to their role and functions in the organization;
 help in identifying the developmental needs of
employees, given their role and function;
increase mutuality between employees and their
supervisors so that every employee feels happy to work
with their supervisor and thereby contributes their
maximum to the organization;
2–8

9. Characteristics of an Appraisal System
Some of the important
considerations in
designing a performance
appraisal system are:
 Goal The job
description and the
performance goals should
be structured, mutually
decided and accepted by
both management and
employees.
2–9

10. Characteristics of an Appraisal System
 Reliable and  Practical and simple
consistent Appraisal format The appraisal
should include both format should be practical,
objective and subjective simple and aim at fulfilling
ratings to produce reliable its basic functions. Long &
and consistent complicated formats are
measurement of time consuming & do not
performance. elicit much useful
information.
2–10

11. Characteristics of an Appraisal System
 Regular and routine  Participatory and
While an appraisal open An effective
system is expected to be appraisal system should
formal in a structured necessarily involve the
manner, informal employee's participation,
contacts and interactions usually through an
can also be used for appraisal interview with
providing feedback to the supervisor, for
employees. feedback and future
planning. During this
interview, past
performance should be
discussed frankly and
future goals established.
2–11

12. Characteristics of an Appraisal System
 Rewards both positive  Feedback should be
and negative - should be timely Unless feedback
part of the performance is timely, it loses its
appraisal system. utility and may have only
Otherwise, the process limited influence on
lacks impact. performance.
2–12

13. Characteristics of an Appraisal System
 Feedback must be  Relevance and
noticeable The staff responsiveness
member being appraised Planning and appraisal of
must be made aware of performance and
the information used in consequent rewards or
the appraisal process. An punishments should be
open appraisal process oriented towards the
creates credibility. objectives of the
programmed in which
the employee has been
assigned a role.
2–13

14. Characteristics of an Appraisal System
 Commitment
Responsibility for the
appraisal system should
be located at a senior
level in the organization
so as to ensure
commitment and
involvement throughout
the management
hierarchy.
2–14

15. Approaches in Performance Appraisal
 Trait approach This
is the conventional
approach. The manager
or supervisor evaluates
the employee on the
basis of observable
dimensions of
personality, such as
integrity, honesty,
dependability,
punctuality, etc.
2–15

16. Approaches in Performance Appraisal
 Intuitive approach  Self-appraisal
In this approach, a approach Employees
supervisor or manager evaluate their own
judges the employee performance using a
based on their common format.
perception of the
employee's behavior.
2–16

17. Approaches in Performance Appraisal
 Group approach The  Behavioral method
employee is evaluated by This method focuses on
a group of persons. observed behavior and
observable critical
incidents.
2–17

18. Approaches in Performance Appraisal
 Appraisal based on
achieved results In
this type of approach,
appraisal is based on
concrete, measurable,
work achievements
judged against fixed
targets or goals set
mutually by the subject
and the assessor.
2–18

19. Human Resource
Development and
Management
ME 212 - SUMMER 2012
ALVIN PEREZ ABALOS
Master in Management Engineering
Module 14
Personnel Separation
Pangasinan State University – Urdaneta City

20. Definition
Employee Separation is one of the very important and
crucial function / process of HR Department. This process,
if not handled in an efficient manner, can lead to various
legal complications.
Let’s understand the term employee. According to
various definitions an employee can be defined as:
1. a worker who is hired to perform a job
(wordnet.princeton.edu/Perl/webwn)
2. An individual who provides labor to a company or
another person (en.wiktionary.org/wiki/Employees)
3. An individual who provides services for compensation to
an employer and whose duties are under the control of
the employer.
(www.aspa.org/resources/res_news_glossary.htm)
2–20

21. Overview:
 An employee works for an employer and gets paid for
his work and nothing else. The relation of an employer
and employee has a beginning; they stay together for a
while and then they separate. Beginning of the relation
is called as recruitment process or talent acquisition that
passes through selection phase and followed by
induction. Staying together in the relation comprises the
various phases such has performance management;
career management; professional growth; development
and etc. And the final stage of the relation is the
separation.
2–21

22. Overview:
 Generally, an employee separation describes any
event that separates the employer and the employee.
Some human resources practitioners refer to
"separation" as the process of informing the employee
of the termination, completing paperwork for
continuation of benefits and retrieving company
property from the employee. Other HR practitioners
distinguish between separation and termination based
on why the employee is no longer employed.
2–22

23. Types of Separation: Resignation
Resignation – This is the So, an employee resigns for:
most common way of 2)Better compensation and
separation. Employee benefits
leaves his job and
employment with his
employer to pursue better
opportunities.
2–23

24. Types of Separation: Resignation
2) Higher position / level 3) Challenging role
2–24

25. Types of Separation: Resignation
4) To move from an 5) For foreign or
unknown or lowly branded international assignments
company to a highly
branded and reputed
company
2–25

26. The Process of Separation
Resignation
Once an employee gives his resignation to the
department head or the management, it is important
for HR to schedule the first meeting with him.
Preferably the meeting should be scheduled within 24
hours or else it will give an impression that “no one
really cares”. Being a neutral department, the meeting
should be administrated by HR Manager (Employee
Relations Manager) or anyone senior to him to
understand the root cause of separation.
2–26

27. The Process of Separation
1. If the root cause is an issue with the reporting
manager of an individual; or some conflict with a
team-member or some other human issue, try to
address the same with the concerned person.
3. If the reason for resignation is better opportunity or
a higher position, explain to him the Performance
Management System and Career Management
System of the company. If possible, show him his
performance records. Do not make any commitment
that you might not be able to fulfill, such as, “we will
give you a promotion in this appraisal” or “will send
you overseas for an assignment” and etc and etc.
2–27

28. The Process of Separation
1. If an employee has given his resignation because he
is getting a better compensation package, explain to
him the grading system and compensation package
of your company and also share with him the
minimum possible increase that he might get in his
next appraisal but do not give any hike immediately.
You might be required to repeat this exercise after
another couple of months. So, don’t show any blood
to the lion.
2–28

29. The Process of Separation
After the meeting give your feedback to the department
head and advise him on whether to accept the
resignation or not.
Once the resignation is accepted, issue the “letter of
acceptance of resignation” to the concerned employee
and inform the IT, Payroll and Finance Department.
2–29

30. The Process of Separation
Responsibility of the Department Head: Now, the
department head needs to plan the process of handover
of duties, projects and assignments to other member(s)
in the team.
2.Let the departing employee complete all the tasks and
assignments he has in hand.
3.Do not assign any new project or assignment to this
employee.
4.If there is nothing to complete and proper hand-over
is done, then relieve the employee as soon as possible.
2–30

31. The Process of Separation
 It is a proven fact that once an employee decides to
leave the organization and gives his resignation, they
show less commitment, sincerity and dedication in
their work. Hence, it is important to relieve them as
soon as possible rather than them coming to the
office and wasting the time of people who are
dedicated to their work and resources of the company.
2–31

32. Responsibility of the HR Department
HR, on the date of acceptance of resignation letter, should
instruct the IT department to keep track on all the
outgoing emails from the system of separating employee.
All IT permissions and rights should be withdrawn from
that employee and he should not be allowed to send any
email to any other email ID except the office email ID’s.
He should not be allowed to copy or edit or delete any file
from his system.
HR should ask the concerned employee to obtain no-due
letter from all the concerned departments.
HR should calculate all the amount payable to that
employee and the payment should be made on the last
working day of the employee. On his last day, the
company should also give him the relieving letter.
2–32

33. Types of Separation: Termination
Termination – Usually, 1) Non-Performance
this process is perceived
negatively by employees.
In termination, an
employer uses his right to
terminate the contract of
an employment.
There can be many
reasons for an employer
to terminate the contract
of employment but some
of the common reasons
are:
2–33

34. Types of Separation: Termination
2) Indiscipline in the
workplace can be
disruptive to productivity
and profit, so it must be
identified and addressed
immediately. Examples
include not calling to
report an absence ahead
of time, using profane
language, behaving
unprofessionally with
customers or blatantly
defying orders from
employers.
2–34

35. Types of Separation: Termination
3) Misconduct
Dishonest or bad
management, especially
by persons entrusted or
engaged to act on
another's behalf.
2–35

36. Types of Separation: Termination
4) Insubordination
defined as a continuing or
constant intentional
refusal to obey an implied
or direct order that is
reasonable in nature and
issued by someone in
authority
2–36

37. Types of Separation: Termination
5) Theft & etc.
The act of stealing;
specifically the felonious
taking and removing of
personal property, with an
intent to deprive the
rightful owner of the same
2–37

38. The Process of Separation
 Termination
Can be challenged in the court of law. Hence, care must
be taken to document all the incidents that have led
to the termination of an employee.
In case of disciplinary action, the company should
take care that the proper procedure is followed.
Warnings (oral and written) were issued to the
employee and the whole incident is properly
documented.
2–38

39. The Process of Separation
In case of non- Parties involved in the
performance, the required termination process
documents must include: include:
a. Tasks given 1) The Reporting Manager
b. Expected performance 2) The Department Head
level 3) The HR and / or
c. Evaluation criteria 4) Any other senior
d. Actual performance member of the
e. Shortfall department
f. Action required
2–39

40. The Process of Separation
 Once the decision is taken to terminate the contract
of employment, the company should seize all the
belongings of that employee – such as computer,
drawer, access cards, laptop, ID Cards, files and etc.
Employee should be given the letter of termination
clearly specifying the reasons of termination.
Based on the severity of the case, the company might
decide to pay the employee for the notice period. For
example, in case of non-performance he must be paid
for the notice period but in case of any disciplinary
action, theft or misconduct, he should not be. The
entire amount due to him must be recovered.
2–40

41. Types of Separation: Absconding
Absconding - This is one of the most unethical,
unexpected and unprofessional way to terminate the
contract of an employment. In this, on one fine day an
employee decides not to go to work. He does not care
to hand-over his stuff. In case an employee decides to
abscond (or run-away), it becomes very important to
understand his motives and intentions.
2–41

42. Types of Separation: Absconding
Employees can abscond in 1) If there is a work-
either or all of the below pressure and stress
mentioned circumstances / and the individual is
situations: not able to cope-up
with it (as it happens
in call-centers, and
3)After stealing the
other high-stress
confidential information or
industries).
documents or database
from the company. 2) If the employee has
committed any crime
4)If the intentions of an
outside the office and
individual is to commit a
after working hours
crime.
2–42

43. Types of Separation: Absconding
1) Then, when priorities 1) If he has got some
are different. Employee exceptionally good
has asked for leave opportunity that
due to some urgency requires him to join
at his home (or might immediately and he
be he is trying to feels that the process
escape from his work of separation in his
responsibilities) and at company is a bit too
the same time his complicated. He
team also needs him in assumes few things
the office and his and do not really try to
leaves are not face the challenge.
approved.
2–43

44. Types of Separation: Absconding
1) Lastly, it is a personality
issue. Employees that
abscond have different
personalities. They are
low in confidence. They
are too weak to face the
reality and challenges of
life. They feel that
running away from the
problem is as good as
solving the problem.
They are cowards to
take the problems head-
on.
2–44

45. The Process of Separation
 Ifthe employee did not come to the office and nor did
he informed about his whereabouts, try to contact
him on his mobile phone.
If he is not answering his calls or his mobile phone is
not working then try to call him on his residence
number. Even if that is not working then speak to his
friends in the office to assess the situation.
In case you are not able to get any information about
the employee then assume that he has absconded. As
per the employment laws in various countries, send
him three official notices starting from the second day.
2–45

46. The Process of Separation
of his disappearance and send every subsequent notice
after every three days. If there is no response from his
side then strike-off his name from your payroll.
On the first day of his disappearance, confiscate his
workplace, his computer, drawer etc. Take the help of
Systems and Networking department to analyze all the
emails that has been sent from his computer and to
whom. Stop his salary immediately.
Seek legal help to recover your costs and /or any other
items or products that has been issued to him, such as
access cards, ID Cards, Laptop, Corporate Credit-card,
House, Car etc, as applicable
2–46

47. References
instein, W. O., & LeMere-Labonte, J. 1989. Performance appraisal: dilemma or
desire? Sam Advanced Management Journal, 54 (2): 26-30.
onga, M. L. 1983. Management of Performance Appraisal. Bombay: Himalaya
Publishing House.
berg, W. 1972. Make performance appraisal relevant. Harvard Business
Review, January-February 1972: 61-67.
atten, T. H., Jr. 1982. A Manager's Guide to Performance Appraisal. London: Free
Press.
ao, T. V. 1985. Performance Appraisal Theory and Practice. New Delhi: Vikas
Publishing House.
raig, S. E., Beatty, R. W., & Baird, L. S. 1986. Creating a performance management
2–47

48. Thank you!!!
2–48