Managing Employee Performance and Training

Managing Employee Performance and Training

Introduction

• Training and Development (T/D) is an integral part of any organization's policy in today's growing industry.

Definition of Training

• Training is defined as enhancing the knowledge and skill of an employee for accomplishing a specific job.

• It increases an employee's knowledge and skill for doing a particular job and develops skills needed to perform a specific job.

Need & Importance of Training

• Globalization:

  • Global business expansion requires training.

  • Exploring new probable markets necessitates understanding diverse market dynamics.

  • Adapting to new corporate cultures is crucial for global integration.

  • Cross-cultural avenues & tie-ups require employees to navigate cultural nuances.

  • Offshoring of jobs demands skill enhancement to meet global standards.

• Attracting & Retaining Talent: Training opportunities attract skilled employees and encourage them to stay with the organization.

• Catering to Customer Satisfaction & Quality: Well-trained employees provide better customer service and improve the quality of products or services.

• Change in Demography & Diversity of the Workforce: Training helps manage diverse workforces by promoting inclusivity and understanding.

• Need for Leadership: Training programs develop leadership skills to guide teams effectively.

• Increased Value Placed on Knowledge: In the knowledge economy, continuous training ensures employees remain updated and competitive.

• New Technology: Training on new technologies is essential for maintaining productivity and innovation.

• Economic Changes: Adapting to economic changes requires employees to learn new skills and strategies.

Training Objectives

• Employees should find their work interesting.

• Employees should recognize their own weaknesses and drawbacks.

• Cooperation among employees should increase.

• The feeling of giving one’s best to the organization should be instilled.

• Employees should seek solutions by consulting peers instead of panicking in difficult situations.

• Employee self-confidence must be increased, and communication should improve.

• There should be better communication between bosses and subordinates.

• Employees should start planning their day’s work.

• Selfishness should be reduced and replaced by teamwork.

• The tendency to hide mistakes should be replaced by an awareness of mistakes and the need to overcome them.

• Negative attitudes towards work should be replaced by positive attitudes.

• The tendency to think against management should be replaced by the willingness to understand management's point of view.

• New entrants should be given the basic knowledge and skills they need for effective performance.

• Assist employees to function more effectively in their current positions by exposing them to the latest concepts, information, and techniques, and developing skills needed in their field.

• Broaden the minds of senior managers by providing opportunities for interchange of experiences to correct narrowness of outlook.

• Build a second line of competent officers and prepare them for more responsible positions.

Kinds of Training Programmes

• Induction Training

• On-the-Job Training

• Training for Promotions

• Supervisory Training

• Management Development Training

• Trainers Training

Major Areas of Training

1. Knowledge:

   • Aims to help trainees understand and remember facts, information, and principles.

2. Technical Skills:

   • Teaches physical acts like operating machines or using computer software.

3. Social Skills:

   • Provides opportunities to acquire and sharpen behavioral and human relation skills.

4. Techniques:

   • Teaching the application of knowledge and skill to dynamic situations.

5. Attitudes:

   • Involves attitudinal change towards increased work commitment and a positive orientation towards the organization and society.

6. Experience:

   • The result of practicing the use of knowledge, skills, techniques, and attitudes over time in different work situations.

Typical Topics in Employee Training

• Communication

• Computer skills

• Customer service

• Diversity

• Ethics

• Human relations

• Quality

• Safety

• New Technology

• New Employee Orientation

Five Steps in Training

1. Prepare the employee

2. Tell him

3. Show him

4. Let him do

5. Check him

Training Process

• Need Assessment: Diagnoses present problems and future challenges to be met through training and development occurring at two levels:

  1. Individual Level

  2. Group Level

Issues in Needs Assessment

1. Organizational Support: Necessary to implement the program successfully and minimize disruptions.

2. Organizational Analysis: Examines the goals of the organization and trends affecting these goals.

3. Task and KSA Analysis: Assesses what tasks are needed on each job and the required knowledge, skills, and abilities (KSAs).

4. Person Analysis: Determines which necessary KSAs have already been learned by prospective trainees to avoid repeating already acquired knowledge.

Benefits of Needs Assessment

1. Trainers are informed about the broader needs of the trainees.

2. Trainers can align course inputs more closely with the specific needs of the trainees.

3. Assessment makes the training department more accountable and linked to other HR activities, making the program easier to sell to line managers.

Consequences of Absence of Training Need Assessment

• Loss of business

• Poorer-quality applicants

• Increased overtime work

• Constraints on business development

• Need for job redesign

• Deriving Instructional Objectives: Describes the objectives to be achieved by the trainee upon completing the training program. These objectives provide input for designing the training program and measures of success.

Responsibility for Training

• Top management frames the training policy.

• The personnel department plans, establishes, and evaluates instructional programs.

• Supervisors implement and apply the developmental procedure.

• Employees provide feedback, revisions, and suggestions.

Designing Training and Development Program

• Consider the following issues:

  • Who participates in the training program?

  • Who are the trainers?

  • What methods and techniques are used for training?

  • What should be the level of training?

  • What learning principles are needed?

  • Where is the program conducted?

Steps in Training Program

• Who are the trainees?

• Who are the trainers?

• What methods and techniques?

• What should be the level?

• What principles of learning?

• Where to conduct the program?

Who are the Trainees?

• Self-nomination

• Recommendations of supervisors

• HR department selection

Who are the Trainers?

• Immediate supervisors

• Co-workers

• Outside consultants

• Faculty members at Universities

In-house Trainers

• The organization's HRD provides the training.

• Handled by specialists.

• Addresses training needs, develops schedules, and conducts evaluations.

• Relies on the Train the Trainer method.

Outside Trainers

• Private training and consulting agencies, professional associations, colleges, and universities.

• Companies opt for outside services if they are more effective and less costly than in-house services.

• In-house training must monitor outside providers as benchmarks.

• Preferred for new and specialized program development.

Budget or Cost of Training Programs

• Based on Training Need Analysis, the program schedule and duration are estimated.

• Developmental Cost: Related to developing the program schedule.

• Direct Cost: Attributed to the delivery of the training program, such as travel, media, materials, food & beverage, and equipment rental.

• Indirect Cost: Costs incurred if the training is canceled.

• Overhead Costs: Maintenance of training equipment and facilities for in-house training.

• Participants Compensation: Salaries and benefits of those attending.

• Evaluation Costs: Costs related to evaluating the training, including developing assessment tools and report preparation.

Different Aids of Training Program

• Mechanical

• Electrical

• Electronic

Mechanical

• Hard boards: Variety of wood, glass, and plastic boards, including erasable ink pens and pulley systems.

• Flip chart boards: Tripod stands with large drawing sheets clipped, allowing trainers to write with marker pens and flip pages.

Electrical

• Electrical boards: Black or green boards operated by electrical switches.

• Overhead projector: Operates with projector screen and transparencies.

• Films: A wide range of video films for training available.

• Audio Cassettes: Recorded cassettes on various training topics.

Electronic

• Video cassettes

• Simulator: Simulates real-world flights or manufacturing processes, useful in technical training.

• Audio-visual aids: Tools to seek a quick and better response from the trainee.

• Computers

• Internet

Methods of Training

1. On-the-Job Method

2. Off-the-Job Method

On the Job Method

1. Coaching

2. Job Instruction

3. Vestibule Training

4. Demonstration and examples/Learning by seeing

5. Simulation

Coaching

• Also referred to as internship, the employee is trained on the job by their immediate superior.

• Merits:

  • Trainee learns on actual job equipment.

  • Highly economical, requiring no additional personnel or facilities.

• Demerits:

  • Learners are often subjected to distractions.

  • Low productivity when skills are not fully developed.

  • Trainees may lack freedom to express views.

Job Instruction

• Requires skilled trainers, extensive job analysis, training schedules, and prior assessment of job knowledge. Also known as step-by-step learning.

• Process of Job Instruction:

  • Preparation of the trainee including easing them and describing job duties.

  • Presentation of the instructions giving essential information clearly.

  • Having the trainee try out the job to show understanding.

  • Encouraging questions and allowing the trainee to work as part of the training.

• Merits:

  • Immediate feedback on results.

  • Additional practice provided as needed.

• Demerits:

  • Requires a skilled trainer.

Vestibule Training

• Duplicates on-the-job situations in a company classroom/workshop with theoretical training in the classroom and practical work in the workshop.

• Merits:

  • Training is given in a separate room, minimizing distractions.

  • Permits practice without fear of failure.

• Demerits:

  • Requires additional investment in equipment.

Demonstration and Examples

• Effective technique where it is easier to show someone how to do a job than to tell them.

• Often used in combination with lectures, pictures, text materials, and discussions.

Simulation

• Duplicates actual conditions encountered on a job used often in the aeronautical industry.

  • Trainee interest and motivation are high as actions closely duplicate real job conditions.

• Essential when actual on-the-job practice might result in serious injury or costly errors.

• Can be a very expensive technique.

Off-the Job Training

1. Lectures

2. Conferences

3. Group Discussions

4. Case studies

5. Role-playing

6. Program Instruction

7. T-group training

Lectures

• The simplest way of imparting knowledge to trainees covering concepts, principles, attitudes, theories, and problem-solving.

• Useful when large groups are trained in a short time, reducing the cost per trainee.

• Merits:

  • Simple, efficient, and less costly.

  • Upcoming training programs or organizational changes can be communicated to large numbers.

• Demerits:

  • Learners are not active participants, it is one-way communication.

  • Requires great preparation which management may lack time for.

Conference Method

• A formal meeting conducted according to an organized plan, developing knowledge and understanding via oral participation.

• Merits:

  • Excellent for developing conceptual knowledge and reducing dogmatism.

  • Suited for analyzing problems and issues from different perspectives.

• Demerits:

  • Limited to small groups of 15-20 persons.

  • Irrelevant issues can easily arise.

Seminar

• An established method for training involving paper preparation by trainees followed by critical discussion, or statements by experts followed by discussion.

Case Studies

• A written description of an event with information on the enterprise's history, environment, and operations.

• Enables participants to develop judgment, analytical ability, interpretative capacity, and creative behavior.

• Merits:

  • Promotes analytical thinking.

  • Encourages open-mindedness.

• Demerits:

  • May suppress average trainees as analytical and vocal individuals dominate.

Role-Playing

• Trainees act out a given role as they would in a stage play covering topics such as employee relations, hiring, firing, and disciplining.

• Merits:

  • Immediate outcome and feedback.

  • Trainees actively participate and are involved.

Programmed Instruction

• Involves breaking information into meaningful units arranged in a logical sequence using textbooks or teaching aids.

• Merits:

  • Trainees learn at their own pace.

  • Instructors are not a key part.

  • Material is divided into smaller units.

  • Immediate feedback is available.

  • Training can be imparted at any time or place.

  • High level of learner motivation.

• Demerits:

  • Only factual subjects can be programmed.

  • Philosophical concepts and motor skills can’t be taught.

  • The cost of creating a program is high.

T-Group Training

• Comprises audio-visual aids and planned reading programs to keep members informed of the latest developments encouraging them to digest, synthesize, and assimilate the material.

Implementation of the Training Programme

• Once the training program is designed, it needs to be implemented, but managers are often too busy to engage in training efforts.

• Availability of trainers is a problem, as they must know the company's philosophy and objectives, and formal/informal organizations.

• Scheduling training without disrupting regular work is another problem, and record-keeping about trainee performance is necessary to evaluate progress.

• Program implementation involves:

  • Deciding the location and organizing training facilities.

  • Scheduling the training program.

  • Conducting the program.

  • Monitoring the progress of trainees.

Evaluation of the Program

• The final stage is evaluating results to determine the program's usefulness, including whether it accomplishes specific training objectives, that is correcting performance deficiencies.

• Evaluation is “any attempt to obtain information on the effects of training performance & to assess the value of training in light of that information”

• Evaluation helps control and correct the training program.

Need for Evaluation

• The main objective is to determine if training programs are accomplishing specific training objectives.

• Ensuring changes in trainee capabilities are due to the training program.

• Determining cost-effectiveness of the training programs.

• To explain program failure, should it occur.

• Enhancing credibility of training and development by proving the organization has benefited tangibly.

Principles of Evaluation

• Be clear about the goals and purposes of evaluation.

• Evaluation must be continuous and specific.

• Provide means for trainers to appraise themselves.

• Be based on objective methods and standards.

• Set realistic target dates.

Criteria for Evaluation

• Training validity: Did the trainees learn during training?

• Transfer validity: Has what was learned in training transferred to the job and enhanced performance?

• Intra-organizational validity: Is the performance of the new group of trainees consistent with the original training group?

• Inter-organizational validity: Can a training program validated in one organization be used successfully in another organization?

Five Levels of Evaluation

• Reactions: Trainees' reactions to the usefulness of the training, including topics and method of presentation.

• Learning: Evaluating trainers' and trainees' ability based on content learned and time taken, and learners' ability to apply the content.

• Job behavior: Evaluating the manner and extent to which the trainee has applied learning to the job.

• Organization: Measures the use of training and change in job behavior in the form of increased productivity and morale.

• Ultimate value: Measurement of the training program’s contributions to company goals like survival and profitability, and individual goals like personality development.

Methods of Evaluation

• Questionnaire: Obtain opinions and views of trainees.

• Tests: Standard tests to find out if trainees have learned anything.

• Interviews: Conduct interviews to find the usefulness of training.

• Studies: Conduct studies eliciting opinions of trainers and supervisors.

• Human resource factors: Evaluate on the basis of employee satisfaction, decreased attrition, and absenteeism.

• Cost-benefit analysis: Compare the cost of training with its value in terms of improved learning and performance.

• Feedback: Follow the feedback system to ensure effective implementation of the report.

Performance Appraisal

• Performance is always measured in terms of result

• Evaluation is different from Judgment

Case Study – Mobile App Company

• Client: High growth mobile application software company.

• Brief:

  • Improve company performance by driving individual performance toward shared business objectives.

  • There was no mechanism to review future demands or translate them into objectives.

  • Identify support, direction, or allocation of activities within the open office.

• Solution:

  • Employees had limited opportunities to receive feedback and support.

  • Needed to identify skill and knowledge gaps and map a formal mechanism for communication.

  • Appraise performance by reviewing achievements.

  • Deliver feedback constructively.

  • Motivate employees to meet new objectives.

  • Formalize under-performance.

  • Get employees to self-assess.

  • Identify skills and knowledge gaps.

  • Identify how an individual’s performance could contribute to business goals.

  • Identify opportunities/career paths for over-achieving employees.

Performance Appraisal Definition

• It is the process of evaluating the performance of employees, sharing that information, and finding ways to improve their performance.

• Performance appraisal assesses how effective management has been at hiring and placing employees and evaluates performance in terms of job requirements.

Purpose

• Employment

• Relationship

• Flexibility

• Optimal performance

• Recognition and rewards

• Morale

• Performance Appraisal is essential to develop technical, managerial, and behavioral knowledge.

• The process helps employees and management know the level of employee’s performance compared to the standard level.

• A performance appraisal is a regularly scheduled process evaluating an employee’s overall performance and contribution with the goal of improving performance.

• It provides feedback, evaluates job performance, and helps distribute raises and bonuses.

• HR outlines the process, managers execute, and employees’ active involvement is crucial.

• Identifying opportunities for improvement based on pre-determined goals and metrics is a key goal.

Definitions

• The systematic evaluation of the individual with respect to performance on the job and potential for development.

• A formal, structured system of measuring and evaluating job-related behaviors and outcomes to discover how and why someone is performing and how they can perform more effectively.

Features

• Performance appraisal is the systematic description of an employee's job relevant strengths and weaknesses.

• The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement.

• Appraisals are arranged periodically according to definite plan.

• Performance Appraisal is not job evaluation, which determines how much a job is worth.

• Performance Appraisal is a continuous process in every large-scale organization.

Performance appraisal process

• Performance Appraisal is planned

• Establish performance standards

• Communicate the standards

• Measure actual performance

• Compare actual performance with standards and discuss the appraisals

• Taking corrective action if necessary

Who Performs the Appraisal?

• Immediate Supervisor

• Higher Management

• Self-Appraisals

• Peers (Co-Workers)

• Crowd Appraisals

• Virtual Games

• Rating committees

• Evaluation Teams

• Customers

• “360° Appraisals”

• Subordinate Appraisal: Performance appraisal of a superior by an employee

• Peer Appraisal: Performance appraisal done by one’s fellow employees

• Team Appraisal: Performance appraisal based on team accomplishment

• Crowd Appraisals: Using a social media performance platform

• Virtual Games: Creating virtual games to evaluate and reward each other

• Rating Committees: Consisting of the employee's immediate supervisor and a few other supervisors.

• Self-Appraisal: Performance appraisal done by the employee being evaluated

The 360º Appraisal Interview

• Individual

  • Staff Self-Assessment

  • Supervisor

  • Other Superiors

  • Peers

  • Teams

  • Sub-Ordinates

  • Customers

  • Other Superiors

Performance Appraisal Problems

• Popularity Contest

• Disciplinary Implications

• Stereotypes

• Poor Training of Raters

• Unclear Standards

Types of Rating Errors

• Leniency/Strictness Error

  • Performance-rating error in which the appraiser tends to give employees either unusually high or unusually low ratings.

• Central Tendency

  • Reluctant to Give High/Low

  • Explain Need for Variability

  • Performance-rating error in which all employees are rated about average

• Similar-To-Me Error

  • Performance-rating error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection.

• Recent behavior Error

  • Last Action Halo

  • Encourage Frequent Evaluation

  • Performance-rating error in which the appraisal is based largely on the employee’s most recent behavior rather than on behavior throughout the appraisal period.

Methods of Performance appraisal

• Traditional Method

  • Paired comparison

  • Graphic Rating scales

  • Forced choice Description method

  • Forced Distribution Method

  • Checks lists

  • Free essay method

  • Critical Incidents

  • Group Appraisal

  • Field Review Method

  • Confidential Report

  • Ranking

• Modern method

  • Assessment Center

  • Appraisal by Results or Management by Objectives

  • Human Asset Accounting

  • Behaviorally Anchored Rating scales

  • Traditional Methods

  • Modern Methods

Companies Using 360 Degree Appraisal

• Wipro

• Infosys

• Reliance Industries

• Maruti Udyog

• Barclays

• Nissan

• Netflix

• Google

Appraisal Methods

• Rating Scales

• Essay

• Management by Objectives

• Check Lists by Key Words

• Forced Choice Statements

• Ranking of Employees

Rating Scale Methods (most popular)

• Check each trait being evaluated

  1. Global Scale (Total Performance)

  2. Mixed Standard Scale (Choose from Different Statements)

  3. Behaviorally Anchored Rating Scale (Descriptions along the scale to define)

Behaviorally Anchored Rating Scale (BARS)

• A behavioral approach to performance appraisal that consists of a series of vertical scales, one for each important dimension of job performance.

Graphic Rating-Scale Method

• Performance appraisal whereby each employee is rated according to a scale of pre-defined characteristics that are job performance related.

Forced-Choice Method

• A trait approach to performance appraisal that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance.

Essay Method

• A trait approach to performance appraisal that requires the rater to compose a statement describing employee behavior.

• This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior.

• The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information.

• A major drawback of the method is the inseparability of the bias of the evaluator.

Essay method should include::

• Write a Behavioral Statement

• Strengths versus Weaknesses

• Describe Selected Traits

• Evaluate Performance

Critical Incident

• Unusual event that denotes superior or inferior employee performance in some part of the job.

Management By Objective (MBO)

• Philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.

• Managers and employees work together to establish objectives and goals. Periodically, they discuss progress and identify areas where the employee needs to improve.

• Pros: Employees appreciate being a part of the process, goals are more realistic because collaboration between managers and employees takes place, and it is easier to measure quantitative and qualitative data.

• Cons: A strong focus on the objectives might translate into ignoring other parts of work, like employee conduct and organizational culture. It’s also time-consuming to implement and execute.

Management by Objectives

• Integrates performance and goal setting

• Frequent intervals

• Record maintenance

• Objective review jointly

• Mutual buy-in

Advantages of MBO

• Employees Can Measure Performance

• Quantifiable Goals

• Joint Effort

• Employee Satisfaction in Participation

Disadvantages of MBO

• Success Not Validates by Research Studies

• Easy to Set Unrealistic Goals

• Hard to Get Full Commitment to Process

• Difficult to Define Some Goals

Tools for Appraising Performance

1. Graphical Rating Scale Method: Simplest and most popular method for appraisal performance.

Appraisal Training Programs Needs

1. Explain Objectives

2. Review the Instrument

3. Define the Performance Standards

4. Understand Typical Subjective Errors

5. Teach Interviewing Skills

Scheduling the Performance Appraisal

1. Schedule the review and notify the employee ten days or two weeks in advance.

2. Ask the employee to prepare for the session by reviewing his or her performance, job objectives, and development goals.

3. Clearly state that this will be the formal annual performance appraisal.

Preparing for the Review for the Performance Appraisal

1. Review the performance documentation collected throughout the year. Concentrate on work patterns that have developed.

2. Be prepared to give specific examples of above- or below-average performance.

3. When performance falls short of expectations, determine what changes need to be made. If performance meets or exceeds expectations, discuss this and plan how to reinforce it.

4. After the appraisal is written, set it aside for a few days and then review it again.

5. Follow whatever steps are required by your organization’s performance appraisal system.

Appraisal Interviews

• Schedule the interview 10 to 14 days in advance.

• Provide subordinates with a “guide” to follow in planning for the interview.

• Consider which of the following approaches to use:

  • Tell-and-sell method

  • Tell-and-listen method

  • Problem-solving method (generally preferable)

Tell-and-Sell Interviews

1. Supervisor persuades employee to change in a prescribed way.

2. Employees see how changed behavior will be of great benefit.

Tell-and-Listen Interviews

1. Supervisor covers strengths/weaknesses for the first half

2. Solicits employee’s feelings about comments

3. Deal with disagreement, non-defensively

4. Negotiate future concrete objectives

The Problem Solving Interview

1. Discuss strengths and weaknesses since the last review

2. Explore feelings of sub-ordinate

3. Listening, accepting, and responding are essential

4. Stimulate growth (performance) job

5. Discuss problems, needs, innovations, satisfactions, and dissatisfactions since the last review

6. Listen and respond with the goal of helping the person and productivity.

Appraisal Interviews should

• Emphasize strengths to build on.

• Suggest more acceptable ways of acting.

• Concentrate on present opportunities for growth.

• Listen more than you talk.

• Use a variety of types of questions.

• Avoid the sandwich technique.

Establishing Job Related Performance Standards must be:

1. Relevant

2. Free From Contamination

3. Reliable - Inter Rater Consistency

Appraisal Program Failure Concerns

1. Little Benefit Relative to Time Commitment

2. Face to Face Confrontation

3. Unskilled Appraisers

4. Role Conflict: Judge or Teacher

Performance Appraisal Interview needs

1. Trained Interview Techniques

2. Honesty in Appraisal

3. Well Planned Structure

4. Carefully Conducted

5. Feedback Openness

6. Adequate Time (more than one session occasionally)

Procedural Guidelines for Appraisal Interviews:

1. Listen More Than Talk (1/3 rule)

2. Vary the Questions (Open ended/elaboration)

3. Follow-up Questions (force through responses)

4. Reflect Feelings (clarify-sincerity)

5. Avoid Sandwich Technique (Positive-Negative- Positive)

Measuring Performance

• Final review of subordinate results measured against established or revised goals

• Periodic review periods providing feedback on interim results measured against established goals

• Joint agreement on subordinate goals and measures

• Department-specific goals

• Measures of department performance

• Organization’s common goals

• Measures of organization performance

• Supervisor lists goals and measures for subordinate

• Subordinate proposes goals and measures for his or her job

• New inputs provided

• Inappropriate goals eliminated

Amoco Performance Management

• Description

• Process

  • Developing

  • Reviewing

• Pay Decision

• Skills Assessment

• Appraisal

Performance Appraisal is a Continuing Process

• Is not a once-a-year or once-a-quarter experience

• Effective appraisal occurs frequently

• There should be no surprises when an employee is given his or her formal appraisal interview

• Essential for coaching & positive motivation

Objectives of Performance Appraisal

1. To develop and maintain a satisfactory level of performance.

2. To promote development of employees through training and self-development.

3. To help superiors in having a proper understanding about their subordinates.

4. To assess training and development needs.

5. Salary increase

6. To facilitate fair and equitable compensation based on performance

7. To affect promotion based on competence and performance.

8. To improve communication between superior and subordinates.

9. To determine whether HR programs like selection, training, transfers etc are effective or not. (effectiveness of HR activities)

Importance of Performance Appraisal

1. Performance Appraisal is useful for identifying misplaced employees, so that suitable remedial action may be taken in time.

2. To judge whether employees are performing at the acceptable level.

3. To find out potential of employees for promotion, development etc.

4. To identify the strengths and weaknesses of individuals, so that necessary steps can be taken to improve the quality of employees.

5. To maintain record of performance of each individual employee for the purpose of incentive pay and rewards.

6. To focus attention on the effectiveness of the organization and to know about individual achievements.

7. To enable the employee to know where he stands so that he may be motivated to develop himself.

Factors for the success of an Appraisal program

1. The appraisal program should be easily understandable.

2. Atmosphere of confidence and trust.

3. The system should be valid and reliable.

4. Results should be held of more importance rather than personality traits.

5. The appraisal program should be less time-consuming.

6. It should also be less costly.

7. Negative results should be immediately conveyed to the employee.

8. Corrective action plan should also be suggested.

9. A post appraisal interview to be arranged.

A Key to All of This -Supervisors must have the support & encouragement of higher management to make all this work

Ethics for Appraisers

1. A valid reason to be known to the appraiser.

2. Appraisal to be done on the basis of representative information rather than hearsay.

3. Relevant facts to be gathered beforehand.

4. Written and oral appraisals must be consistent.

5. Confidentiality of the information to be maintained by the appraiser.

6. False information should be screened and

7. also not included by the appraiser.

8. Appraisal to be done on sufficient information.

9. The appraiser should give the appraisal as a personal opinion rather than a conclusive fact.

10. An explanation of where and how the facts were gathered should be given

11. Time period covered should be noted.

Performance Appraisal process

1. Defining objectives of Appraisal

   • It is used for different purposes, like salary increase, promotion ,T & D

   • Objectives must be clearly defined.

2. Defining Appraisal Norms

   • Confidence and trust

   • It is done on the basis of available information

   • Rules are binding for the employee

3. Designing Appraisal program

   • Who are appraisers

   • Appraisal methodology

   • Timing of appraisal

4. Implementing Appraisal program

   • The results of appraisal must be communicated to the HR department for follow-up actions oriented towards the objective of the appraisal.

5. Appraisal Feedback: Feedback from appraisee

6. Post Appraisal Action: Aim is to improve long-term performance. Counseling and training activities are conducted to improve performance.

Factors to Consider in Choice of a P. A. System

1. Cost

2. Usefulness in employee development

3. Usefulness in administrative decisions

4. Validity

Appraisal Methods

• Past Oriented Methods

  • Rating scales

  • Checklists

  • Forced Choice

  • Critical Incidents

  • Bars

  • Field Review