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Evaluation of people, black list. III HR SCHOOL 19. SEP. 2013 Maksym Stavisiuk, L&D Evaluation of people, black list. III HR SCHOOL 19. SEP. 2013 Maksym Stavisiuk, L&D Specialist/HR Account @

PMS PMS

What is your goal here? • To learn what HRs do? • To know What is your goal here? • To learn what HRs do? • To know how they do it in other companies? • To get employed as HR in the company • Не знаю, меня сюда привели. . .

SOME RULES • Active participation; • Learn from each other; • Respect each other; SOME RULES • Active participation; • Learn from each other; • Respect each other; • Questions in the end or after I ask please; • You can write down your question and pass to me;

Few things about me: • 6. 5 years with 5. 5 Materialise; • Hot Few things about me: • 6. 5 years with 5. 5 Materialise; • Hot summer 2011: – Tima was born – Started in HR as L&D Specialist • Hot summer 2013: – Fima was born – Recruitment and HR Account • Want to share some things with you

Materialise is a lot like a Family for me • • • Very good Materialise is a lot like a Family for me • • • Very good team; Open minded people; Comfortable office; Better and Healthier world mission; 1 billion personal touches goal; A lot to learn from each other (including my boss); • HR influences that! • But let’s get to the topic!

PERSONNEL EVALUATION • Why Evaluation • Methods • Criteria • How is it @ PERSONNEL EVALUATION • Why Evaluation • Methods • Criteria • How is it @ Materialise • Black list + some practice

Why do we evaluate? • Evaluation ≠ evaluation of the person = Evaluation of Why do we evaluate? • Evaluation ≠ evaluation of the person = Evaluation of results, behaviour – Personnel way of working is evaluated against the standard Personnel evaluation Managing personnel effectiveness Managing company effectiveness

Any evaluation implies • Set-up of performance standard • Evaluation of actual performance against Any evaluation implies • Set-up of performance standard • Evaluation of actual performance against the standard • Feedback to employees to motivate them work better

QUESTION: • WHAT EVALUATION METHODS DID YOU ENCOUNTER? QUESTION: • WHAT EVALUATION METHODS DID YOU ENCOUNTER?

OTHER EVALUATION METHODS • Ranking Scores for each criteria are summed and employees are OTHER EVALUATION METHODS • Ranking Scores for each criteria are summed and employees are ranked • Pair comparison for each characteristic employees are compared with each other • Compulsory distribution pre-defined percentage (e. g. 20% the best, 60% average; 20% worst) • Critical incident Positive and negative behaviour examples are recorded • Testing Employee qualities are assessed using the test

BEST OF BREED • Management By Objectives evaluation (MBO) – the most advanced and BEST OF BREED • Management By Objectives evaluation (MBO) – the most advanced and common performance evaluation system used by western companies • Why? – High productivity can be achieved when right thing is done in the right way, by right person and in right time. • PMS: Materialise operates with a Performance Management System to set specific measurable objectives for each employee with periodic review of achieved results and evaluation against objectives

Position of PMS among other people related processes l. Employees development, career planning l. Position of PMS among other people related processes l. Employees development, career planning l. Planning l. Reward l. Talent Pool manning needs Performance management & evaluation l. Employees Training l. Work l. Adaptation of new employees analysis

PMS AIMS AT ALINGMENT AND COMMUNICATION l l Not aligned Aligned Swan, crawfish & PMS AIMS AT ALINGMENT AND COMMUNICATION l l Not aligned Aligned Swan, crawfish & pike

ALIGNMENT FOCUS Company Vision & Mission Better and healthier world Company Objectives Company BHAG ALIGNMENT FOCUS Company Vision & Mission Better and healthier world Company Objectives Company BHAG “ 1 000 000 Personal Touches” Department Objectives Individual Objectives Employees Development Regular communication of TL with his team

1. Objectives setting 2. Learning and development 3. Regular Feedback 4. Performance review DEC 1. Objectives setting 2. Learning and development 3. Regular Feedback 4. Performance review DEC JUN JAN BASIC COMPONENTS OF THE PMS

PMS BENEFITS Employees benefits • • Clear understanding of own duties and responsibilities; Evaluation PMS BENEFITS Employees benefits • • Clear understanding of own duties and responsibilities; Evaluation is based on transparent & objective standards; Regular feedback; Evaluation is aimed at development; Benefits for Managers & Company • • • Objectives alignment with strategy; Tool for planning/control; Equal work distribution; More results, better performance; Increased employee satisfaction;

STRUCTURE Company Vision & Mission Company Objectives Responsibilities of the Employee Day to day STRUCTURE Company Vision & Mission Company Objectives Responsibilities of the Employee Day to day tasks and responsibilities of employee. Department objectives Employee objectives Performance Goals Employees Development Plan Competencies Short term objectives and tasks aimed to achieve department or team objectives in this specific working period Objectives to support development of specific competencies and skills Knowledge, skills and behavior relevant to job/position

Performance Management: Responsibilities l. E. g. l. Maintain Intranet page of our Business Unit Performance Management: Responsibilities l. E. g. l. Maintain Intranet page of our Business Unit

Performance Management: Performance Goals l. E. g. l. Attract new customers for our Business Performance Management: Performance Goals l. E. g. l. Attract new customers for our Business Unit l. Find at least 3 new customers l 31/12/2011

Performance Management: Development Plan l. E. g. l. Project Management l. Follow Project Management Performance Management: Development Plan l. E. g. l. Project Management l. Follow Project Management Training l. Ability to complete a project successful l 31/10/201 1

Performance Management: Competencies Performance Management: Competencies

Q: WHAT IS A GOOD OBJECTIVE? A: a SMART objective! Q: WHAT IS A GOOD OBJECTIVE? A: a SMART objective!

SMART • Specific: the defined performance goals can only be subject to one interpretation. SMART • Specific: the defined performance goals can only be subject to one interpretation. • Measurable: each performance goal describes the goal in concrete and measurable terms. Abstractions as ‘atmosphere’, ‘communication’, ‘dedication’ need to be avoid, together with non-quantifying adjectives such as: correct, good, optimal, better, … • Acceptable: both parties in the contract have to put the means and activities deployed, in reasonable perspective to the performance goals that need to be reached. • Realistic: a performance goal is realistic when the parties, who come to the agreement for the performance goal, are convinced that the goal can be reached. • Time: the formulated performances goals need to be reachable within a defined period. Goals on the long term have to be translated as much as possible into partial goals that can be reached on a short term.

DEVELOPER OBJECTIVES EXAMPLES • Release our product with high quality and in time • DEVELOPER OBJECTIVES EXAMPLES • Release our product with high quality and in time • 1. Release dates • • • 2. KPIs: • • • implement high quality features • • Software project quality ratio >=90 Bugfixing quality >=96 3. Positive feedback • • • Web Release date <= 05/10/2012 CD release date<= 09/11/2012 from product manager from customers Feature bugfixing time / feature implementation time shoud be less than 0. 65 codereviews (for big or risky features)

OTHER OBJECTIVES EXAMPLES • Increase sales and piipeline; • Number of contacts increased by OTHER OBJECTIVES EXAMPLES • Increase sales and piipeline; • Number of contacts increased by 20%, Monthly sales target of 30 k EUR is achieved; • Increase quantity and quality of processed orders • Process more than 200 orders a month with not more than 2 complaints starting June 2014 • Develop the system to record and handle complaints more efficiently; • Time spent on handling complaints is decreased by 50%; • Complaints are handled within 2 business days of receiving; • Feedback from system users is positive;

KPI KEY PERFORMANCE INDICATOR KPI KEY PERFORMANCE INDICATOR

KPI EXAMPLE 28 KPI EXAMPLE 28

PRACTICE: Objectives settings Unite in PAIRS • Each person should set 1 SMART obhective PRACTICE: Objectives settings Unite in PAIRS • Each person should set 1 SMART obhective for him/her -self; • 2 minutes; • To be continued;

PRACTICE: Objectives settings • Ask your neighbor to assess how smart is it: score PRACTICE: Objectives settings • Ask your neighbor to assess how smart is it: score 0. . 5; –S –M –A –R –T • Discuss the outcome/argue (2 minutes);

EVALUATION CRITERIA Criteria Quantitative o. Sales volume in quantity and revenue o. Number of EVALUATION CRITERIA Criteria Quantitative o. Sales volume in quantity and revenue o. Number of processed documents o. Number of contracts concluded o. Number of training programmes conducted o. Number of bugs Qualitative o. Customer satisfaction level o. Turnover % o. Work effectiveness Individual qualities o. Competencies o. Education o. Qualification (experience, skill level)

SCORES: RESPONSIBILITIES AND GOALS: • NC (Not Completed): the employee reached less than 50% SCORES: RESPONSIBILITIES AND GOALS: • NC (Not Completed): the employee reached less than 50% of the responsibility/performance goal. The performance of the employee does not satisfy; the responsibility is not executed in a proper way. • PC (Partially Completed): the employee reached more than 50% of the responsibility/performance goal. The performance, the responsibility is not fully completed. • C (Completed): the employee executes the task in a satisfying manner and within the set period. The goal is reached, the responsibility is completed. • E (Exceeded): the employee exceeded the goal result wise or period wise. The performance in responsibility is exceeded. DEVELOPMENT PLAN: • Yes – Partially - No + COMMENTS for scores other that C; + MANAGER SUMMARY in the end; + EMPLOYEE SUMMARY in the end;

PERFORMANCE SCORES ABOVE AA NORMA A- A A+ B C BELOW OOOPS l. AA PERFORMANCE SCORES ABOVE AA NORMA A- A A+ B C BELOW OOOPS l. AA l 1% l. A+ l 25% l. A l 62% l. Al. B l. C l 11% l 0% l 10% l 20% l 30% l 40% l 50% l 60% l 70%

CONNECTION TO SALARY • • • Performance consists of Goals and Responsibilities; Competencies are CONNECTION TO SALARY • • • Performance consists of Goals and Responsibilities; Competencies are essential part of it; Development plan is aimed at performance and competencies; Evaluation is based on performance; Professional level is based on evaluation and competencies; Salary is based on professional level, business results, labor market conditions’ Business results; Labor market; Recent increase; Development plan Professional Level Compe tencies Respons ibilities Goals Performance Evaluation C, B, A-, A, A+, AA Junior-Professional. Senior Salary

BLACK LIST • • Not usually done in Materialise; More focus starting from 2013; BLACK LIST • • Not usually done in Materialise; More focus starting from 2013; People with poor performance or People whose output divided by salary is low; • Short-term improvement plan is set to these people; • If the plan is not fulfilled – it is a good-bye; B C

Conclusions • It is essential to set SMART objectives; • Regular feedback with Manager Conclusions • It is essential to set SMART objectives; • Regular feedback with Manager is essential; • Regular evaluation of objectives is performed; • Evaluation results influence salary and black list;

Thank you! Thank you!