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CHAPTER 5PERFORMANCE APPRAISAL

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DEFINITION

• Performance appraisal involves:– Identification

• Determining what areas of work the manager should be examining when measuring performance

– Measurement• Making managerial judgements of how ‘good’ or ‘bad’

employee performance

– Management• The overriding goal of any appraisal system.

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USES OF PERFORMANCE APPRAISAL

• Administrative process

• Developmental process

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COMPONENTS OF EMPLOYEE’S PERFORMANCE

• Knowledge and skills

• Motivation

• Work environment

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SOURCES OF INFORMATION IN APPRAISAL

• Employee’s manager

• Employee’s co-workers

• Employee’s subordinates

• Customers / Clients

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EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM

• Objective setting

• Implementation of work and monitoring

• Appraisal of the individual workers

• Follow-up action

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PERFORMANCE APPRAISAL PROCESS

• Interview– Opening– Begin discussion

• Counselling– Non-directive counselling– Advice giving– Information giving– Teaching and coaching

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BENEFITS OF PERFORMANCE APPRAISAL

• Employer perspective– Individual differences in performance can

make a difference to company performance– May be needed for legal defense– Provides a rational basis for constructing

bonus– Can help to implement strategic goals– Providing individual feedback– Can include teamwork and teams

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BENEFITS OF PERFORMANCE APPRAISAL

• Employee perspective– Performance feedback is needed and desired– Improvement in performance requires

assessment– Differences in performance levels across

workers be measured and have an effect on outcomes

– Can motivate workers to improve performance

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PROBLEMS IN PERFORMANCE APPRAISAL

• Rater errors and bias

• Influence of liking

• Organizational politics

• Individual or group focus

• Legal issues

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• Recent effect

• Halo effect

• Central tendency

• Prejudice and stereotype

• Fatigue

PROBLEMS IN PERFORMANCE APPRAISAL

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EFFECTIVE PERFORMANCE APPRAISAL

• Conduct appraisal in private

• Allow enough time for employee to discuss issue

• Refer to performance not individual

• Provide specific not general behaviour

• Give feedback in a good manner

• Avoid loaded terms which produce emotional reactions

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CHAPTER 6TRAINING AND DEVELOPMENT

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DEFINITION OF TRAINING• Organizational activity which aims to

improve an employee’s current performance

• The attempt by an organization to change employees through the learning process

• Training programmes are designed to change attitudes, develop skills or impart knowledge

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WHAT WILL HAPPEN IF NO FORMAL TRAINING?

• Learning on the job will take longer

• Costs of wasted materials, sales and customers lost

• Management time cost taken

• Lowered morale, demotivated

• Accident-related costs

• High turnover

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BENEFITS OF TRAINING

• Increase worker’s productivity

• Increase worker’s job satisfaction

• Keeps worker’s skills and knowledge up-to-date

• Helps to motivate workers

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SYSTEMATIC TRAINING

• Identify training needs

• Set training objectives

• Design training programme

• Implement training programme

• Evaluate training programme

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TRAINING NEEDS AND TRAINING PLANS

• Individual workers face difficulties in performing job satisfactorily

• New workers are recruited

• New technology and procedures are introduced

• Individuals are transferred or promoted

• Major change in the organization

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DESIGNING TRAINING PLANS

• Identify a performance problem

• Decide whether the problem is serious enough

• Identify the cause of the problem

• Generate alternative solutions to the problem

• Choose the best solution and implement

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SET TRAINING OBJECTIVES

• Purpose of training is to improve employee’s abilities and performance on the job

• Consists of three parts:– Terminal behaviour– Standards to be achieved– Conditions of performance

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DESIGN TRAINING PROGRAMME

• Facilitators

• Venue

• Duration and scheduling of programme

• Number of participants

• Training methods

• Logistics

• Budget

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EVALUATING TRAINING AND DEVELOPMENT

• Trainees’ responses

• Trainee learning

• Application of new skill and knowledge

• Assessing the results

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LEARNING PRINCIPLES

• The learner must want to learn

• Active or passive learning

• Feedback or knowledge of results

• Learning is faster in teams