Module 3 0 Performance Appraisal in Shipping Human

Module 3. 0 Performance Appraisal in Shipping Human Resource 6 1

CHANGE OF DIRECTION IN SHIPPING HUMAN RESOURCE MANAGEMENT 2

Directional Change � Dynamic change in global geopolitical, economic, financial market, international trade, and international shipping. � Fluctuation in international shipping…. . i. e shipping cycle, freight cycle, asset management, and technological changes need PEOPLE, people who are not only capable and effective, but also who are committed, and passionate about their work � Human capital management is paramount/critical in shipping industry/company � Traditional human resource management practices need change � Human resource department is an active partner in this endeavour rather than merely receiving instruction from business units. � Be proactive in driving the organizational mission , vision, strategy and goals. 3

Directional Change…cont � It is about business proposition, it makes a business sense to actively participate in the development of PEOPLE, and grooming of present and future leaders/employees of a shipping organization � Appraising employees annually is inadequate � There is a need for systematic monitoring and management intervention if the need arises. � Based on these backdrop, the HR performance appraisal strategy, tactics , and processes need to change in line with the dynamic change in the human capital development worldwide 4

Performance Appraisal is a strategic human resource activity focusing on employees’ performance 5

Managing Dynamic Workforce � It is about PEOPLE, and the human element in shipping is critical in managing and moving billions/trillions of assets and cargoes worldwide. � It is not only about qualifications and competencies, and management but also about leadership in shipping organization. � It is about PEOPLE, human capital as an asset managing company’s resources in meeting organizational mission, vision, goals and objectives. � It is about empowerment, motivation, commitment, do more than what is required, have a sense of belonging, and passion 6

Managing Dynamic Workforce…cont � It is about “not only how to do but more important what to do” � It is about talent management i. e talent acquisition, development, and retention � There must/should be a systematic approach, and Human Resource Information System (HRIS) is one of the effective tools in this endeavour � Staff profiling, training needs, and various training tools such as accelerated training programmes are employed. � Effective communication is critical, between not only departments but also between shore and onboard personnel for the seamless shipping operations. 7

Managing Dynamic Workforce…cont � The shipping workforce is international in nature of various nationalities with different cultures, religions, and values. � It is about managing varied expectations, needs, and requirements. � Not only physical needs but also emotional, spiritual needs that need to be managed effectively for the benefit of the shipping organization. � Coaching is another critical areas as grooming of shipping personnel, be it onshore or onboard takes a considerable period of time to reach a certain credible levels managing those sophisticated vessels and the capital intensive shipping organization. � Managing current and future challenges in the shipping industry with the various stringent international maritime laws and conventions is awesome and command a workforce with character and high values. 8

Performance Appraisal �It is about employee performance and accountability �Feedback for employer/employee for career planning, training and development, pay increases, promotions, and other placement decision �HR department used the information gathered through performance appraisal to evaluate the success of recruitment, selection, orientation placement, training, and other activities 9

Performance Appraisal…. cont � Performance Appraisal activity is DYNAMIC, and not working in isolation by itself � It is an effective HR management tool to measure past performance of an employee and plan ahead. � It is not only about looking into the performance, compensation packages, promotion, and placement � It is more than that, … it is about determining the future direction of the company… � PA direction has CHANGE to suit/in line with global changes in human resource management � There is an urgent need for a dynamic competent seafarers managing sophisticated vessels… facing future challenges 10

Performance Appraisal…. cont �Its (PA) activity should be in line with company’s mission, vision, goals and objectives �It is about providing training and development needs of seafarers…. Technological change, customer changing needs, geopolitics, economy, market change! �Focus on career planning and development… individual career path…not only job �It is about COACHING, MOTIVATION and CARING 11

Performance Appraisal…. cont �PA is an opportunity/platform for manning department to not only nurturing quality present and future competent seafarers but also look into bigger picture of inculcating positive values �Looking for TALENT, talent management…i. e talent acquisition, talent development, talent retention �YES there is a change in the DIRECTION of Human Resource Performance Appraisal 12

Uses of PA �Performance improvement… it allows manager to intervene with appropriate actions to improve performance �Compensation adjustment… performance evaluation help decision makers to reward based on merit �Placement decision, promotion/demotion/transfer �It acts as an INDICATOR on…. 13

Uses of PA. . cont � Staffing process deficiencies…. Implies/indicates the strength and weakness of the HR processes/procedures � Informational inaccuracies… reliance on inaccurate information may led to inappropriate hiring, training, counseling decisions � Job design error…. Poor performance is a symptom of poor job design � Equal employment opportunity. Same standard measurement � External challenges/disturbances… personal, emotional, financial � Good or bad performance throughout the organization indicates how well the HR function is performing 14

Motivation in Asia’s Shipping Company �Asia is the engine of growth �HR has both direct and indirect influence on seafarers motivation and satisfaction �Motivation is complex. It involves the unique feeling, thought and past experience. �It is actually an internal drive to take an action because he/or she want to do so �Motivation through orientation, training and development, career planning, and counseling activities. 15

Motivation in Asia’s Shipping Company…cont � Policies and practices also influence motivation � Rigorously enforced safety and health programs give seafarers a greater sense of safety from accidents. � Favorable compensation packages � Listen well. It is HR responsibility to ensure effective communication between shore/onboard/it is critical � Good organizational culture such as people focus/orientation, trust and openness, people empowerment � Sharing and caring! organization 16

Methods of PA a) Rating scale Excellent Good Acceptable Fair Poor 5 4 3 2 1 1. Dependability 2. Initiative 3. Attendance 4. Attitude 5. Cooperation ……… 20. Quality of work Result Total 17

Methods of PA …cont b) Accomplishment records c) Behavioral anchored rating scale d) Performance tests and observation e) Management by objectives f) Psychological Appraisals. . In-depth interview, psychological test, intellectual, motivational, emotional, discussion with superiors/peers, other work related characteristics g) Assessment centre… 1) in-basket test, 2)peer rating, 3)leadership group discussion, 4) simulated work exercises, 5) background histories, 6) in-depth interview, 7) role play, 8) presentation 18

(h) 360 -Degree Evaluation Top Management The primary objective of the 360 Degree performance Manager evaluation is to pool feedback from all the employee’s Suppliers (Internal customers) (External customers) Employee Clients (External customers) Subordinates (Internal customers) customers. Co-workers or team members (Internal customers) Other department representatives (Internal customers 19

Development Toolbox 20

Cross Business Assignment a. Cross –Unit Accelerated Development b. Cross-Border Action Learning Teams Stretch Goal Setting Accelerated Development Individual Resources a. Personal Learning b. Mentors Multisource Feedback Real – World Coaching Job Enlargement and Career Progression 21

Development Toolbox Learning From Others On The Job: • Job Enrichment • Working With a Mentor • Special Projects • Teaming with an Expert • Committee Assignments • 360 Feedback • Task Force Participation • Focused Interviews • Lead Person Responsibilities • Giving Presentations • Preparing Proposals Training & Education • Installing a New System • Seminars & Conferences • Leading a New Program • Continuing Education • Temporary Job Assignments • E Learning • Full Job Change • Cross Training 22

Critical to built meaningful behavioral competency specific to your values and organizational culture. 23

Functional and Leadership Competencies FUNCTIONAL LEADERSHIP Management of Budget and Metrics Drive for Results Emphasizes profitability, financial viability and performance potential to ensure business performance. Develops financial measurement frameworks, and identifies key metrics to drive business performance. The ability to continuously raise performance standards and drive outstanding organizational performance. It includes achieving superior performance not only for one’s own area, but also for organizational performance as a whole. 24

Functional and Leadership Competencies…cont FUNCTIONAL LEADERSHIP Market Knowledge Adaptability Understands business and regulatory environment, major industry players, and the business dynamics. Has indepth knowledge of the full range of organizational business products and key competitors in the market place. Adaptability relates to taking action to improve current approaches or solutions. Facilitates a creative or innovative approach to working. Responds with agility to changing goals, processes or environments. 25

Functional and Leadership Competencies…cont FUNCTIONAL LEADERSHIP Cutting-Edge Technology and Business Organizational Alignment Methods The ability to rapidly align people, Understands and takes action to maintain, processes and organization structure with develop, and apply specialized knowledge strategic direction. This includes the of technology and business methods active identification and removal of relevant to one’s role. Takes the initiative barriers that block change and impede to keep abreast of key technological desired behavior. changes and trends. 26

Functional and Leadership Competencies…cont FUNCTIONAL Business Strategy and Planning LEADERSHIP Communication and Influence The ability to effectively communicate and Formulates appropriate business strategies influence others inside and outside the and supporting plans that drive the organization to build commitment to objectives. success of the business areas and support overall business plans. Developing and Motivating Self and Others Efforts to apply and grow one’s expertise / knowledge (and to help others do so) within and across specialized technical / functional areas. 27

Justice in PA � Bias in PA happened. Therefore PA Rater should remain emotionally unattached while evaluating employee � Do it objectively � Rater bias led to inaccurate distortion of a management � Most common rater biases are: a. The halo effect. . rater personal opinion affect individual b. Error of central tendency…. Just average out c. Leniency and strictness bias… between two extremes d. Cross-cultural biases… Arab cultures, Asian culture e. Personal prejudice… prejudice affect entire group 28

Justice in PA. . cont f) The decency effect… recent actions/activities more likely to be remembered by the rater HOW TO REDUCE RATER BIAS �Training… train the trainer/all must attend �Feedback… awareness on the importance of PA �Proper selection PA techniques 29

PA/Malaysian Context � Performance Appraisal in Malaysian Shipping Industry is in the right direction � HR Manning role is commendable taking into consideration both the traditional basics activities and objectives, and at the same time using PA as a tool focusing on career development, seafaring as a career option � Talent management…. . talent development and talent retention � It is unique and there is a clear distinction between shore and onboard PA tools, techniques, evaluation and assessment, basis…. . � Hence among others , reward system , training and motivation are tailored/aligned to the need of the Malaysian shipping industry 30

PA/Malaysian Context. . cont �It is an Integrated Approach and top management are supportive. Their involvement and decision making is encouraging �It is a strategic business priority, ensure continuity of performance and unified corporate culture. �Human Resource is the strategic partner: role as ”Confidential Advisory Role”. �Performance Appraisal is the integral part of Human Resource Development Plan and Strategy. �Increasing importance of Human Resource Manager in Identifying, Developing, and Managing the processes effectively 31

PA/Malaysian Context. . cont �Corporate ownership – build a super-manager ownership of the various performance appraisal processes �Use the assessment processes for feedback and development �Review the processes periodically –clearly identify individuals who are not pulling their weight �Make it known –clearly challenge emerging leaders that they are to be groomed for leadership roles –but warn them that consistent performance is essential to make it 32

THANK YOU 33