Performance appraisal(the gentleman’s three )
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The document discusses performance appraisal and the balanced scorecard approach. It describes the balanced scorecard as a framework that uses financial measures and measures regarding customers, internal processes, and learning/growth. It provides examples of performance measures that could be used for each of these perspectives in a balanced scorecard.
![Customer Perspective
Information about market & customer
Customer selection, acquisition, retention & growth
Who are profitable customers?
— Target Segmentations
What do they need? [same as the thing we serve them]
— Customer Values Propositions (e.g. QSC&V –
quality, services, cleanliness, and value)
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Performance appraisal(the gentleman’s three )
- 1. Session 8 Performance Appraisal The Gentleman’s Three by Brian J. Hall & Andrew Wasynczuk
- 2. -When they are going to get time? -They‘ll make time. -Don’t they have real work to do? -This is the real work. The Gentleman’s Three by Brian J. Hall & Andrew Wasynczuk
- 3. Conflicting Roles for Performance Appraisal
- 4. Trait-based Information Job Behavior-based Performance? Information Results-based Information Types of Performance Information
- 5. Criticisms of Performance Appraisal ◦ Focus is too much on the individual and does little to develop employees. ◦ Employees and supervisors believe the appraisal process is seriously flawed. ◦ Appraisals are inconsistent, short-term oriented, subjective, and useful only at the extremes of performance. Uses of Performance Appraisal
- 6. Deficiency Contamination Performance Criteria Objectivity Potential Performance Criteria Problems
- 7. Common Rater Errors © 2002 Southwestern College Publishing. All rights reserved. 11–7 Figure 11–11
- 8. The Balanced Scorecard Balanced Scorecard 21 languages 17 languages 8
- 9. What is the BSC? Financial To succeed Objectives Measures Targets Initiative excel at? must we processes business what customers, s and shareholder our To satisfy Initiatives financially, how should we appear to our shareholders? Objectives Targets Customer VISION s Measure Measures Internal Business AND STRATEGY Process Targets Objective Learning & Growth s Initiatives To achieve our vision, Objective Measures Targets Initiatives customers? vision, how To achieve s should we appear to how will we sustain our ability to our our change and improve?
- 10. Performance Measures in Financial Perspective Return on investment Cross-selling Economic value added Customer and product line Sales growth rate by segment profitability Percentage revenue from new Revenue/employee product, service, or customer Cost reduction rate Share targeted customer an Unit cost account Payback Cross-selling Return on Capital Employed Working capital ratios (cash-to- cash cycle) 10
- 11. Customer Perspective Information about market & customer Customer selection, acquisition, retention & growth Who are profitable customers? — Target Segmentations What do they need? [same as the thing we serve them] — Customer Values Propositions (e.g. QSC&V – quality, services, cleanliness, and value) 11
- 12. Performance Measures in Customer Perspective Market Share: Reflects the proportion of business in a given market (in term of number of customer, dollar spent, or unit volume sold) that a business unit sells. Customer Acquisition: Measures, in absolute or relative, the rate at which a business unit attracts wins new customers or business. Customer Retention: Measures, in absolute or relative, the rate at which a business unit retains or maintains ongoing relationships with its customers. Customer Satisfaction: Assesses the satisfaction level of customers along specific performance criteria within the value proposition. Customer Profitability: Measures the net profit of a customer, after allowing for the unique expenses required to support customer. 12
- 13. Performance Measures in Customer Perspective Market Share: Reflects the proportion of business in a given market (in term of number of customer, dollar spent, or unit volume sold) that a business unit sells. Customer Acquisition: Measures, in absolute or relative, the rate at which a business unit attracts wins new customers or business. Customer Retention: Measures, in absolute or relative, the rate at which a business unit retains or maintains ongoing relationships with its customers. Customer Satisfaction: Assesses the satisfaction level of customers along specific performance criteria within the value proposition. Customer Profitability: Measures the net profit of a customer, after allowing for the unique expenses required to support customer. 13
- 14. Performance Measures in Internal Process Perspective Quality Rework Response time New product introduction Cost Service error rate Yields Product development cycle Waste Hours with customer Scrap Time to market 14
- 15. Performance Measures in Learning & Growth Perspective Employee satisfaction Employee retention/turnover rate Employee productivity Information system availability Organizational Climate Index Personal Goals Alignment Index Staff development 15