Performance Appraisal Overview

A method of evaluating employee performance, providing feedback, and motivating improvement.

Performance appraisal failures can stem from using the wrong factors, ignoring important factors, or using vague and hard-to-measure factors like attitude and initiative.

A strategic management framework with four perspectives (Financial, Customer, Internal Processes, and Learning & Growth) to align actions with overall strategy.

The four components of the Balanced Scorecard: Financial, Customer, Internal Processes, and Learning & Growth.

To communicate organizational goals, align employee work with the strategy, prioritize projects, and measure progress toward strategic targets.

A framework for evaluating organizational performance from four interconnected viewpoints: financial, customer, internal processes, and learning and growth.

Focuses on the financial health of the organization, typically using metrics like operating income, profitability, and return on investment.

Evaluates the organization's performance from the viewpoint of its customers, considering factors like customer service, retention, and satisfaction.

Examines the efficiency and effectiveness of internal processes and technologies, linking them to strategic goals.

Evaluates the organization's ability to adapt and innovate, focusing on employee skills, knowledge, and systems for continuous improvement. (Not explicitly named in the text, but inferred from the context)

A disciplined framework linking parts of strategic planning, including projects, measurements (KPIs), strategic objectives, mission, vision, and overall strategy for improved visibility and coordination.

A change in job location without a change in position, pay, or responsibilities.

Transfers that primarily benefit the employee, often due to personal reasons.

Transfers prompted by organizational needs, temporary or permanent.

Different reasons drive employee transfers, from health to career advancement.

Organizational changes or employee needs (e.g., workload, skill development) trigger company transfers.

Transfers are within a similar company level, unlike promotions that imply a pay or responsibilities increase.

A strategic management system that helps companies translate strategic goals into measurable performance objectives across four perspectives.

The four perspectives used in a balanced scorecard: financial, customer, internal processes, and learning and growth.

Focuses on how a business creates value for its shareholders, e.g., revenue growth, profitability.

Focuses on customer satisfaction and loyalty through metrics like customer retention and satisfaction scores.

Focuses on optimizing internal business processes to support customer value propositions, e.g., efficiency in order processing or manufacturing.

Focuses on employee satisfaction, retention, and the organization's ability to adapt and improve over time

The time taken to introduce a new product or service into the market.

A common objective, but achieving it poorly can harm competitive advantage.

The edge a company has over its rivals in the market, based on factors like product differentiation or better cost-effectiveness.

An eight-step process for creating a balanced scorecard to align business unit performance with strategic goals.

Selecting the relevant business unit for a top-level scorecard, typically having its own customers, distribution channels, facilities and financial targets.

Gathering input from senior managers on strategic goals and performance measures via 90-minute interviews guided by a facilitator.

Top management collaborates with a facilitator to establish a scorecard's mission, strategy, and measure linkages, potentially incorporating stakeholder feedback.

Facilitator consolidates executive workshop insights and interviews to develop a preliminary balanced scorecard.

Senior and middle managers discuss the proposed scorecard, defining implementation plans and stretch objectives for metrics.

Senior executives finalize the scorecard's vision, objectives, measurements and stretch targets, along with the implementation plan.

Linking performance measures to systems, communicating the scorecard throughout the organization, and developing lower-level metrics for decentralized units.

Regular (quarterly or monthly) reviews of the scorecard measures, aligned with the strategic planning process for annual revisions.

Transfers initiated by government or politicians, usually due to employee behavior against social norms, public interest issues, or political reasons.

A transfer to another department to stabilize employment and avoid layoffs.

Transferring a long-service employee to a department to replace someone with less seniority.

Training an employee on multiple jobs to prepare them for different roles or replacements.

Transferring an employee to a different shift (common in manufacturing).

Transferring an employee to a different position if their current role doesn't suit them due to personal issues or health problems.

Various types of transfers that aren't categorized as production, replacement, versatility, or shift.

Transfers are conducted for numerous reasons, encompassing reasons ranging from stabilizing company employment to addressing employee concerns.

Employees being transferred out of their position due to political pressure or favoritism.

Transfers initiated by a company, often for reasons related to work assignments or adjustments.

Transfers initiated due to political or personal connections instead of merit or need.