MODULE-4: Training & Development

INTRODUCTION & MEANING:

Training is the act of increasing the knowledge and skill of an individual for doing a particular
job. In the present scenario training is increasingly viewed as a means of fostering the growth of
the individual employee but as an integrated part of organizational growth.
Training is a process of learning a sequence of programmed behaviour. It is application of
knowledge. It attempts to improve their performance on the current job or prepare them for an
intended job.
Training is an organized procedure for increasing the knowledge & skill of people for a specific
purpose. The trainees acquire new skill, technical knowledge, problem solving ability etc.
DEFINITIONS:
“Training is the act of increasing the knowledge and skills of an employee for doing a particular
job.” Edwin. [Link].
“Training is the organized procedure by which people learn knowledge and \or skill for definite
purpose.” Dale [Link].
IMPORTANCE/ NEED OF TRAINING
Training enables the employees to get acquainted with jobs and increase their aptitudes, skills and
knowledge.
 Follow up of selection procedure: Training is a follow up of selection procedure. It helps
in choosing the most appropriate individuals for different jobs. It can be used in spotting
out promising persons and in removing defects in selection process.
 Better Performance: Training is about improvement of the quality of output by increasing
the skill of the employee. This makes the fresh and old employee acquire more skills and
thus, be accurate in performance of their work.
 Reduction in Cost Production: Training personnel is to make better and economical use
of materials and equipments besides decreasing wastage. In addition, the rate of accidents
and damage to machinery and equipment is at the minimum by the well trained employees
amounting to lesser cost of production per unit.
 Reduced Supervision: If the employees are given proper training, the need of supervision
gets lessened. A well trained employee is self-reliant in his work as he comes to know
what is to be and how. Under such situations, close supervision is not much required.
Leaving the scope for the management focus its attention on other basic and important
functions.

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  Increased morale: The morale of the employee gets boosted, if they are given proper
training. Training programme moulds its employees’ attitude to achieve support for
organisational activities and obtain better cooperation and greater loyalty.
 Organisational Stability and Flexibility: It increases the stability and flexibility of the
organisation. Creation of a reservoir of trained replacements increases the stability of the
organisation that is; the organisation is able to sustain its effectiveness despite the loss of
key personnel.
 Job Security: Training can help an executive to develop his ability to earn make the
official adaptive to new work methods, besides learning to use new kinds of equipment
and adjusting to major changes in job contents as well a work relationship.
 Technological changes: every organization in order to survive & to be effective should
adopt the latest technology, i.e. mechanization, automation, computerization etc. So the
organisation should train the employees to enrich them in the areas of technical skills &
knowledge from time to time.
 Change in job assignments: It is also necessary when existing employee is promoted to
the higher level in the organization & when there is some new job or occupation due to
transfer.
 Easy adaptability: The methods of work are constantly undergoing change. This will
necessitate the adaptability of workers to changing work environment. The present
employees can easily learn new work techniques with little bit of guidance.
 Increased Competition: There is always a difference in untrained & trained employee.
Due to training both get trained & face competition due to egotism, which indirectly
influences productivity & efficiency. HR manger has to ensure that this does not lead to
any conflicts among employees.
 Reduced turnover & absenteeism: These are mainly caused due to job dissatisfaction.
When a worker is properly trained he/ she will take keen interest in job & derive
satisfaction from it.
 Less wastage: Untrained workers may waste more materials, damage machines &
equipment & may cause accidents. A trained worker will know the art of operating, use of
material & other equipment’s in a systematic way causing less wastage.

BLOG: What is Training and Development? | Blog | OrangeHRM

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METHODS/TECHNIQUES OF TRAINING:
Training methods are means of attaining desired objectives set for a training programme. In
practice, a variety of training methods are employed for achieving these objectives. But an
organization cannot use all types of training methods for the reason like cost involved and also
their relevance to organizational need.
organization needs to select a method or mix of methods to meet its training needs the choice of
training method would depend on a Variety of factors, such as purpose of training, nature of
contents, relevance to the participants, level of trainees, competence of trainers/instructors, cost,
etc.
I- ON THE JOB TRAINING:
On the job training is the heart and soul of all training in business and industry. On the
job training is development. This method of learning is designed to maximize learning while
allowing the employees to perform his job under the supervision and guidance of a trained worker
or instructor, providing him practical application and making principles and concepts of learning
meaningful and realistic.
a) Job instruction training: Job instruction training is basically used to teach the workers
how to do their current jobs. In this method, a trainer or supervisor gives instruction to an
employee how to perform his job. This method of training is appropriate for acquisition or
improvement of motor skills and routine and repetitive operations
→ A supervisor in a textile factory shows the worker how to work a weaving machine step
by step by commanding and instructing him.
b) Coaching: On the job coaching by the supervisor is an important and potentially effective
approach. In this method, the superior teaches or guides the new employee about the
knowledge and skills of a specifically defined job. The superior points out the mistakes
committed by the new employee and then also gives suggestions to improve upon.
Effectiveness of coaching depends upon the patience and communication skills of their
coach.
→ A branch manager in a bank trains a new relationship officer based on how they interact
with customers and provides feedback on a daily basis to help him or her enhance
communication skills.
c) Mentoring: Here senior person from the organization takes responsibility of training &
grooming the junior. The basic objective of mentoring is to help an employee gain
psychological maturity, effectiveness and get integrated with the organization.
→ A senior software architect in an IT Company mentors a junior developer helping him/her
make career choices and supporting his/her integration into the organizational culture.

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 d) Position/ Job Rotation: Position/ job rotation training is the broadening of the
background. In this method, a trainee moves from one job to another and from one
department to another, they understand the larger organizational perspective and different
functional areas. He/she attains a better sense of his own career objectives and interests.
→ A management trainee in a manufacturing company is rotated in the production
department, quality department, and supply chain to have a general idea of how a company
works.
e) Apprenticeship: Apprenticeship training is a structured process by which people become
skilled workers through a combination of classroom and on the job training. It is widely
used to train includes for many occupations. Many organizations have apprenticeship laws
with supervised plans.
→ A trainee mechanic in an automobile service center acquires the knowledge of repairing
vehicles in a classroom-based theory and goes on to work under a certified technician.
f) Committee assignments: In this method, the trainers are asked to perform special
assignments and to solve actual organizational problems. In this method, trainers acquire
knowledge about the assigned activities and learn how to work with others. They also
understand the personalities issue and processes governing the organization.
→ In a hospital, junior administrators are assigned to a safety committee to analyze patient
complaints and suggest process improvements.
II-OFF THE JOB TRAINING
In these methods the trainees have to leave their workplace & devote their entire time to the
training. It is based on the principle of learning by acquiring knowledge rather than by doing. The
location of off the job training may be company classroom, outside place owned by the
organization, educational institute or association etc. as the employees have to be free from job
stress & pressure during the training period.
a) Vestibule training: A training centre called vestibule, as they setup actual job conditions
are duplicated or stimulated in it. This method of training is used primarily where there is
large no. of employees must be trained quickly, as needed as a result of expansion of
business activities by forms of industries, although it is helpful as preliminary on the job
training.
→ The workers employed in a packaging factory are trained on duplicate machines in a
separate training room and then they are allowed to work on the actual production line.
b) Classroom training: The classroom training is the traditional way of education which
places the trainee in a class room. It takes place either inside the organization or at some
external selected sites, maybe institutes, universities or professional associations’, which

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 have no connection with the company. The aim of classroom training is to bring about
change in the attitude and point of view of employee capable of looking at problems
differently.
→ In a company headquarters, workers are taken to classrooms, where labor laws and
company policies are taught by HR specialists.
c) Internship training: Here educationist, institutions, & business firm have a joint
programme of training. This method helps to provide a good balance between theory &
practical.
→ MBA student undertakes an internship in an FMCG company to take the concepts of
classroom marketing to actual sales projects.
d) Role-play: this is just like acting out a given role as in stage play. In this method of training,
the trainees are required to enact defined roles on the basis of oral or written description of
particular situation.
→ Trainees in a call center can be asked to role-play customer complaint scenarios to learn to
deal with angry customers properly.
e) Case method: the case is an actual event or situation on organizational problems, which is
a written description for discussion purpose. Trainees are asked to analyses the event or
circumstances with an objective to identifies problems, trace out the causes for it and find
out the solution to solve the problems.
→ In a training session, management trainees analyze a case of an actual employee turnover
in a firm and discuss potential HR solutions.
f) Management games: the game is devised on the model of business situation. Then,
trainees are divide into groups who represent the management of competing companies.
They make decisions just like these are made in real life situations. Decisions made by the
groups are evaluated and the likely implications of the decisions are fed back to the groups.
→ Trainees compete in a business school corporate program and operate virtual firms, are
required to make pricing and investment decisions.
g) In basket exercise: this is also called ‘in tray’ method of training. This is built around the
‘incoming mail’ of manager. The trainees is presented with a pack of papers and files in
tray containing administrative problems and are asked to take decision on these within a
specified time limit. The decision taken by the trainees are compared with another. The
trainees are provided feedback on their decisions.
→ A new manager is being promoted, and emails, complaints, and reports are sent to him/her
to make a decision within a short period of time.

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 h) Lectures: lecture is by far the most commonly used direct method of training. In this
method the trainer provides knowledge to the trainees usually from prepared notes. Notes
are also given to the trainees. This method is found more appropriate in simulations where
some information is required to be shared to a large number of audience and which does
not require more participation from audience. It is a low cost method. The major limitation
of this method is that it does not provide for active involvement of the trainees.
→ In an organization with many staff, lectures on cybersecurity awareness are given to
hundreds of staff members simultaneously by experts.
i) Conferences/seminars: in this method, the trainer delivers a lecture or writes papers on a
specific topic or on the particular subject, which is followed by queries and discussions. In
conference the participants pool their ideas & experience to arrive at improved methods of
dealing with the problem. The conference leader must have the necessary skills to lead the
discussion in a meaningful way without losing sight of the topic or theme. This method is
used to help employees develop problem-solving skills.
→ The HR professionals go to a national seminar where they also exchange the best practices
in talent retention and employee engagement.
j) Programmed instructions: this is the recently developed technique based on the principle
of positive reinforcement developed by [Link]. This technique is used to teach
nonmotor and behavioral skills. The subject matter to be learned is prepared and condensed
into logical sequence from more complex. The trainer monitors trainee’s independent
progress through the programme. The trainee gets instant feedback on his learning
however; this method is expensive and time consuming also.
→ The employees are subjected to online compliance training module where they get
immediate feedback after every learning unit.
k) Sensitive training: sensitive training is also known by a Varity of names such as T-
group’s, laboratory training and encounter groups. (The “T” is for training.)The objective
of sensitive training is to increase participants’ insights into their behavior and the behavior
of others by encouraging an open expression of feelings in the trainer guide T-group.
→ During a leadership development program, managers are involved in T-group sessions to
learn about their behavior and seek to improve their interpersonal relationships.
l) Simulation: It is a work up of real things. Under this method the situation is duplicated in
such a way that carrier closer resemblances to the actual job situation. It is essential in cases
which might result in serious injuries, errors, destruction of materials etc when practiced
actually.

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 → Flight simulators are used to train pilots by simulating real flight conditions, without the
need to risk airplanes and lives.
To conclude, each method of training has some strengths and weaknesses. Given the purpose of a
training programme, the level of participants the competence of trainers, etc., the appropriate
method has to be chosen to impart training.
DIFFERENCE BETWEEN ON THE JOB & OFF THE JOB TRAINING:
ON THE JOB TRAINING OFF THE JOB TRAINING
On the job training refers to a form of When the employees are given training
training which is provided at the work place outside the actual work location, such a type
during the performance of the actual job. of training is termed as off the job training.
It has a practical approach Off the job training is theoretical.
It training involves the hands-on experience The same is not with the case of off the job
of the trainees. training.
It is less time consuming It is more time consuming
‘On the job’ training involves learning by ‘Off the job’ training involves learning by
doing the task. acquiring knowledge.
Employees who are new to a job role Workers may be able to obtain qualification
become productive as quickly as possible. & certificates.
There is no work disruption as the training The work is hampered because first of all
and production go hand in hand. training is provided then the performance.
It is carried out by the experienced It is provided by the experts
employees.
It is less expensive It is more expensive
It is appropriate for manufacturing entities It is suitable for non-manufacturing entities
It aims at developing the best practices for a It aims at learning basic facts and skills and
specific job and getting the job done is more general in nature
e.g. Coaching, job rotation, apprenticeship e.g. role-play, simulation, conferences etc.

DISTINGUISH BETWEEN TRAINING & DEVELOPMENT

Training is a systematic & organized Development is a systematic & organized
procedure by which non-managerial personnel procedure by which managerial personnel
learn technical knowledge. learn conceptual & theoretical knowledge
Training refers to instruction in technical and Development refers to philosophical and
mechanical operations. theoretical educational concepts.
It is a short term reactive process. It is a long term proactive process.
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 It helps an individual learn how to perform It involves preparing the individual for a
present job satisfactorily. future job & growth of individual in all
respects.
It is result of external motivation as initiative It is result of internal motivation.
is taken by management.
It is undertaken for job related purpose. It is undertaken for long term development as
it involves broader education.
Training attempts to improve their Development covers not only those activities,
performance on the current job or prepare which improve job performance, but also
them for an intended job. those, which bring about growth of the
personality; maturity & actualization of their
potential capacities.
Training is one-shot deal. Development is a continuous on-going
process.
Training is usually imposed Development activities, such as those
supplied by management development
programs are generally voluntary.
The staff members may have no clear The staff members have experience and
perception of the relationship between knowledge; a clear, direct relationship
learning and career development between self-development and career success.
Training is job-oriented process and is The development is general in nature and
vocational in nature. strives to inculcate initiative, enterprise,
creativity, dedication and loyalty amongst
executives.
Training usually requires guidance (or Often includes education in philosophical and
instruction) in a series of steps to gain a skill, theoretical concepts
or set of predictable knowledge.
Purpose is to improve productivity and Purpose is to improve
workforce flexibility leadership effectiveness through planned and
structured learning.
Induction training, vestibule training, Coaching, mentoring, counselling, job-
apprenticeship training, job training, rotation, role playing, case study, conference
promotional training, internship training are training, special projects are some of the
some of the major types of training. methods of development.

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Recent Trends / Developments in Training and Development.

1. Artificial Intelligence-Powered Personalized Learning.

Artificial Intelligence is becoming common to generate personal learning paths based on
the data on employee performance and suggesting the appropriate training content.
Example: AI upskilling programs are organized by companies such as Indeed whereby
employees are given role-specific artificial intelligence training modules to enhance
productivity.
2. Microlearning (Bite-Sized Training)
Organizations are moving away long training sessions into short and focused learning
modules (2-10 minutes) that enhance knowledge retention and fit in the work schedules of
the employees. Example-Linked In Learning micro-courses, used by many companies
where workers learn new skills in short courses during work breaks.
3. Online and E-Learning Systems.
The remote and hybrid work is on the rise, and businesses resort to online learning
solutions providing the ability to receive training anywhere and anytime.
Example: IBM has its own digital learning platform called Your Learning which delivers
thousands of online courses to its employees worldwide.
4. Simulation Training and Virtual Reality (VR).
VR and simulation technologies enable the staff to learn through the trial and error of a
virtual setting, as the technology can enable employees to train on complex or dangerous
tasks. Example: VR simulations are applied by Walmart to educate workers in customer
service and emergencies.
5. Constant Reskilling and Upskilling.
With the automation and fast technological advancement, companies are emphasizing on
the constant development of the skills so that the employees remain relevant and
competitive. Example: Amazon has created Upskilling 2025, a program that teaches
workers digital, cloud, and machine learning.
6. Experiential Learning and Gamification.
Gamified modules, hackathons, and simulations are becoming popular in training
programs to make them more engaging and enhance their practical learning results.
Example: In a lot of IT firms, internal hackathons allow employees to gain skills in coding
and innovation under the competition

VIDEO: (43) Learning & Development & HR Trends 2026 - YouTube

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MANAGEMENT DEVELOPMENT
INTRODUCTION:
Management is described as ‘making organisations perform’(Smith et al. 1980).
Management is concerned with:
• Individuals to manage work;
• Activities for achieving goals;
• A body of knowledge represented by theories and frameworks about people and organisations.
The general assumption is that management education and training themselves constitute
management development, but they do not.
Management training is primarily concerned with teaching managers the skills to perform
their jobs more effectively.
Development is a long-term educational process utilizing a systematic & organized procedure by
which managerial personnel learn conceptual & theoretical knowledge for general purpose.
DEFINITION OF MANAGEMENT DEVELOPMENT
Management development is defined as
• A conscious and systematic process to control the development of managerial resources in the
organisation for the achievement of goals and strategies. (Molander, 1986).
• An attempt to improve managerial effectiveness through a planned and deliberate learning
process. (Mumford, 1987).
CONTRIBUTION OF MANAGEMENT DEVELOPMENT TO HRD
Leadership Development:
The management development produces good leaders who are capable of guiding, motivating and
inspiring employees to improve their performance.
Skill Enhancement:
It enhances managerial capabilities including decision making, communication and problem
solving among other human related developments.
Succession Planning:
Development of management helps to equip the employees towards greater positions and the
continuity of leadership as well as an organized advancement of career.
Organizational Effectiveness:
It advances management capability, which results in greater productivity, coordination as well as
efficiency in organization.
Change Management:
Management development prepares the managers to deal with the changes (technological,
structural and cultural changes) without difficulties.

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Motivation and Morale of the employees:
Managers who are well trained are able to establish a good work environment that helps in
enhancing employee satisfaction, morale, and commitment.
Strategic HR Development:
It makes capabilities of the managers in line with the organizational purposes, which enhances
strategic role of HRD.
PERFORMANCE APPRAISAL.
Performance means the degree with which an employee applies his or her knowledge,
skills and effort for a job
Appraisal means analysis, assessment measuring, guiding and evaluating
Performance appraisal means evaluation of the performance of an employee in terms of
job requirement. It is a systematic and objective way of guiding the relative work or ability of an
employee in performing job.
It is a process of assessing the performance and progress of an employee on a given job
and his or her potential to present and potential for a better job.
Definition:
It is systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining
to present and potential for a better job.
FEATURES:

1. It is a process consisting of a series of steps for assessing and evaluating the performance
strength and weakness of an employee.
2. It is a systematic and objective description of an employee strength and weakness in terms
of job.
3. It is a scientific study as it involves formal procedure and actual data is used.
4. It is objective study. It attempts at accurate and timely measurement of employee’s
capabilities and performance on the job.
5. Its basic purpose is to find out how well the employees are preforming the job and establish
a plan for improvement.
6. It is an on-going and continuous process where the evaluation are arranged periodically
according to the definite plan.
7. It is the result oriented as well as potential oriented.
8. It is not similar to job evaluation, it refers to how well employees are doing the assigned
job where as job evaluation determines how much a job is worth is an organisation.

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 9. It seeks to secure information necessary for making objective and correct decision on
employees.

VIDEO LINK: HR Basics: Performance Appraisals

BLOG: What is a performance appraisal and why is it important

OBJECTIVES:

1. Providing feedback: It is the most common justification for an organisation to have a

performance appraisal system. By providing the feedback, employee and employers come
to know where they stand and can improve the performance if lacking.
2. Promotion and demotion: It makes it easier for the organisation to make good decision
promotion and demotion training, salary hikes etc to make sure that the most talented
employees are retained and organisation marginal performance are out.
3. Improving performance: performance appraisal and motivation helps the employees to
improve the performance. The appraisal process helps the employees to learn and
understand what the organisation wants, this process provide employees with means to
demonstrate that they actually are. It encourages employees to avoid being targeted as
inferior performance.
4. Setting and measure goals: goal setting has consistently being demonstrated as a
management process that generates superior performance. The performance appraisal
process is commonly used to make sure that member of the organisation sets and achieves
effective goals
5. Determining compensation: every organisation believes in pay for performance.
Performance appraisal provides the mechanism to make sure that those who do better work
receive more pay.
6. Counselling poor performance: Not everyone meets the organisation standards,
performance appraisal forces manager to confront those whose performance is not meeting
the company’s expectation.
7. Determining training and developing needs: performance appraisal includes a
requirement for individual and organisation training and development. By which plans can
be determined and discussed and employees can take decisions on need to acquire more
competitive so that their promotion chances increases.
8. Validity hiring decision: when performance appraisal is done for the employees, only then
the company learns whether it is hiring the right people or not.

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 9. Providing legal defensibility: any personal decision like termination, denial of promotion,
transferred to another department. If one of these is challenged the company must be able
to demonstrate that the decision was not made on individual or other personal aspect, but
purely on performance. A record of performance appraisal facilitates legal defensibility
when a complaint about discrimination is made.
10. Improving organisational performance: It allows the organisation to communicate
performance expectation to every member or employee and access exactly how well each
person is doing. When everyone is clear on the expectation and knows exactly how they
are performing it Results in overall improvement in organisation’s success.

TECHNIQUES OR METHODS OF PERFORMANCE APPRAISAL:

In order to achieve the organisational objectives numerous methods have been derived to evaluate
the quantity and quality of employee job performance. The choice of methods depend on
organisational method, its objectives size, product, technology etc.
The methods are divided into 2 types namely:
A. Traditional methods
B. Modern methods

VIDEO LINK:

 Performance Appraisal and its Methods - Traditional vs Modern methods (MGT Video 23)
 KRA and Performance Appraisal - Process, Problems and Examples (Management video 22)

A: Traditional methods are further B: Modern methods are further divided

divided as below: as below:

1) Straight ranking method 1) Behaviourally anchored rating scale

2) Paired comparison 2) Assessment centre method

3) Forced distribution method 3) HR accounting methods

4) Grading methods 4) Management by objectives (MBO)

5) Graphic rating scale 5) 360-degree appraisal

6) Essay or free forms 6) Balance score card.

7) Confidential report

8) Critical incident method

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 9) Field review methods

10) Group appraisal method

11) Check list

• Weight check list
• Forced choice method
• Simple check

A: Traditional method: These methods assess behaviour that has already occur. They focus on
providing feedback to employees about their action which is used to achieve greater success in the
future. The traditional methods of performance appraisal are:
1) Straight ranking method: it is the oldest and
simplest methods in which a employee is ranked
against other employees of the same work unit. Doing
the same job on the basis of certain traits and
characteristics. Here employees are ranked from the
best to the poorest on the basis of overall performance.
 Merits: simple, convenient to appraiser
comparative evaluation
 Demerits: -bias judgement ranking of different
traits is difficult defined measures are not provided.
2) Paired comparison: here every person is compared trait wise with other persons, one at
a time & is tallied on paper. This number help in yielding rank orders of employees. Here
the approaches has to fit some criteria for assessment.
 Merits: effective techniques, suitability helps to differentiate people.
 Demerits: time consuming, difficult to justify the reason.

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 3) Forced distribution method: here the employees are ranked in terms of their performance
groups rather than individual. This method operates
under an assumption that the employee performance
level confirms to a normal statistical distribution.
 Merits: simple and easy, reduces bias,
covers large group.
 Demerits: no individual scope,
restricted freedom to rates, distribution rating is questionable.
4) Grading method: Here certain features like
analytical ability, co-operativeness’,
dependability, job knowledge etc are selected
for evaluation. The employees are given
grades according to the judgement of the rater.
 Merits: simple and easy, less time
consuming, suitable for large group.
 Demerits: rather perception/ assumption, biased, tedious process.
5) Graphic rating scale: It is also known as linear or simple rating scale which presents
appraisers with a list of traits assumed to be necessary to have successful job performance,
A 7-point rating scale accompanies each traits. The supervisor rates each subordinates by
checking the score that best describes his/her performance for each traits & then assigned
values are totaled.
 Merits: practical, less expensive, easy to understand and implement, reliable and
valid.
 Demerits: vaguely defined traits, fail to provide good feedback, rating inaccuracy.

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 6) Easy or free form: It is a non-quantitative technique of appraisal. Here the supervisor
writes a report about employee which is based on assessment while preparing the essay on
the employee. The rater considers factors like job knowledge, potential of employees,
employees’ trait and attitude etc.
 Merit: can be used independently, provides good information, can be combined.
 Demerits: bias, time constrained, uneconomical to organisation.
7) Critical incident method: this method attempts to measure performance in terms of
certain events or incidents that occur in the course of work. Here it is assumed that the
performance of the employee on happening of incidents, determines his or her failure or
success. The supervisor keeps a record of critical incidents at different times & then rates
in this basis.
 Merits: based on direct observation,
time tested, provide more face time.
 Demerits: time consuming and
cumbersome, may evoke negative
emotions, involves subjective
judgement.

8) Confidential report: Here the employees’ performances assessed confidentially where

the superior appraises the performance of subordinates leased on observation judgement,
monitory etc and keeps the report confidential. It is widely used in government
departments and public enterprise.
 Merits: rater acts to be frank, regulation of increment, descriptive nature.
 Demerits: no chance of improvement, no feedback, it is subjective.
9) Field review method: Under this method, expert from HR department interviews the line
officers or supervisors. The questions are prepared in advance and the detailed notes of the
answers are made. The questions are in regard to the level of performance, work progress,
promotion, potentials etc the overall rating is given and the employees are classified into
3 categories- outstanding, satisfactory and unsatisfactory.
 Merits: relief for the supervision, information on different units , easy promotional
decisions
 Demerits: competent of interviewer, job knowledge, managerial personnel may be
busy.
10) Group appraisal method: Under this method a group consisting of the immediate
supervisors, head of the department and experts determines the standards of performance

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 for the job, measures the actual performance, analyse the causes of poor performance and
give suggestions for improvements.
 Merits: well review accountability, accurate skill evaluation
 Demerits: time consuming, inaccuracy, erodes loyalty.
11) Check list method: A check list is the list of statement that describes the characteristics
behaviour, performance of employees on the job. The rater checks indicates whether the
behaviour of an employee is positive or negative to each statement. There are 3 types of
check list that can be used
a) Simple check list: under this method the supervisors are provided with printed forms
containing descriptive questions about the performance of employees. The supervisor has
to tick the answers either yes or no. after ticking the questions, the forms are sent to
personnel department, where final rating is done.
• Merits: simple and easy, faster, personal bias
• Demerits: difficult to distinguish, lengthy

b) Weighted checklist: this method is used particularly with the objectives of avoiding scope
of personnel bias. In this method the weights are assigned to different statement to indicate
the relative importance.
• Merits: no bias. Easy and simple
• Demerits: lengthy and tedious, costly, time consuming

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 c) Forced choice check list: in this check list, 5 statements are given for each trait.2 most
descriptive statements, 2 least descriptive statement and one neutral statement. The rater is
required to tick one statement each from the most descriptive and least descriptive ones
• Merits: greater objectivity, no bias.
• Demerits: expensive, lengthy, time consuming.

B: Modern methods: Modern appraisal methods emphasis on the future performance by

assessing employees potential for achievement and by setting targets for short term and long term
performance.
1) Behaviourally anchored rating skill (BARS): It combines the benefits of critical
incidents and graphic rating scale by anchoring a scale with specific examples of good or
poor performance. A rater must indicate which behaviour and which scale best describes
an employee’s performance.
 Merits: directs and monitors behaviour eliminates ambiguity, reduces error.
 Demerits: time consuming, expensive, result oriented.

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 2) Assessment centre method: principle idea is to evaluate the employees over a period of
time by observing their behaviour across the series of selected exercise or work samples.
after recording the observations, the rater needs to discuss these observation.
 Merits: provides useful feedback. Develops participants
 Demerits: costly and time consuming, standardization is difficult.
3) HR accounting method: This method deals with cost of contribution of HR to the
organisation. Employees contribution is the money value of employee service which can
be measured by labour productivity or value added by HR. difference between the cost and
contribution will reflect the performance of employees.
 Merits: improves decision making, helps in planning and executing HR policies.
 Demerits: non availability of standards, expenditures on HR accounting
4) Management by objective: MBO requires the managers to set specific measurable goals
with each employees and even periodically discuss his or her progress towards these goals.
MBO leads to greater satisfaction, greater agreement, greater comfort, less tension between
the workers and management.
 Merits: develops clear plan, improves commitment, and reduces internal conflict.
 Demerits: deficiency is goal setting and failure to get employee support
5) 360 degree appraisal: 360 technique is
understood as systematic collection of
performance data on individual or a group
derived from a number of stake holders, the
immediate supervisor, team members,
customers and self. The appraiser should be
capable of determining what is more
important and what is relatively less
important
 Merits. It gives well rounded feedback and builds relationship.
 Demerits: focus on weakness and administrating is complex.
6) Balance score card: It is used & applied at both the individual and the organisational
level. It provides a balance approach to evaluate the employees’ performance in a
comprehensive way rather than political way. It helps to align the employee performance,
action plans with the organisational goals.
 Merits: unity on strategy, communicate strategy
 Demerits: lacks link between financial and non-financial segments, non-decision making
tool leads to lack of focus.

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 READING: Performance Appraisals: Meaning, Significance, Objectives, Types and Criticism -
GeeksforGeeks

LIMITATION OF PERFORMANCE APPRAISAL: -

1. Judgement errors : people commit mistakes while evaluating appraisal and their
performance , bias and judgement errors of various kinds may spoil the show, the various
kinds of errors are :
• Halo effect: This error exist where the evaluator is influenced by the raters 1 or 2 good
or bad performance and evaluates the entire performance accordingly. Thus the evaluators
assigns the same rating on all performance traits regardless of employees’ actuals
performance traits.
• Stereotyping: This implies forming a mental picture of a person on the basis of age, caste,
religion, etc. It results in an over simplified view and disturbs the assessment of the job
performance.
• Central tendency: These error occurs when the evaluator mark all employees as average,
it is a kind of play it safe tendency. It fails to distinguish between higher performance and
low performance. It may arise due to raters’ lack of knowledge, carelessness, indifferent
nature etc.
• Contact errors: these errors take place when employees are compared to each other rather
than to standard of performance.

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 2. Lack of reliability: Reliability implies suitability and consistency in the measurement.
Lack of consistency over a time and among different raters may reduce the reliability of
performance appraisal.
3. Poor appraisal forms :The appraisal process might be influenced by the following
relating to the forms that are used by evaluating
• The rating sales maybe vague or unclear
• It may ignore important aspects of job performance
• It may contain addition irrelative performance
• The forms maybe too long or complex
4. Negative approach: It loses its validity when the management adopts negative approach
that is punishment, demotion etc, rather than training and developing the employees.
5. Incompetency and discrimination: The raters may fail to evaluate job performance
accurately due to lack of experience, even during screening of employees for various
opportunities it may be affected by the discrimination tendency of raters.
6. Psychological blocks: The utility of appraisal system will depend upon the psychological
characteristics of manager no matter what methods are used. Managers considers appraisal
as an extra burden. They try to treat the sub-ordinates failure as their own and dislike to
communicate unfavourable reports to subordinate.
7. Licencing and strictness: The evaluators have their own value system which act as a
standards for evaluation. Some evaluators maybe lenient and will give high rating to
everyone. On the other hand some evaluators maybe strict and will give low rating to all
employees.
SUGGESTIONS TO IMPROVE PERFORMANCE APPRAISAL:
1. Behaviour based measures: These measures deals with specific examples of
performance, good or bad. We should avoid the problems using appropriate substitute
more over since we are evaluating specific behaviour so 2 or more evaluators will see
the same thing.
2. Combine absolute and relative standards: The appraisal method that combine both
absolute and relative standards should be adopted by evaluation. The evaluation maybe
use graphic and individual rating scale by which the drawback of relative or absolute
standards can be removed.
3. On-going feedback: The manager should share with the subordinate both expectations
and disappointments as day to-day basis. By providing the employee with frequent
opportunities to discuss the performance before any reward (or) punishment,
consequence are occurred.

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 4. Multiply raters: As the member of the evaluator, multiple raters, the possibilities of
attaining more accurate information increases. By moving employees within the
organisation so as to gain a number of achieving more valid and reliable evaluation
increased.
5. Selective training: The appraisal should rate in those areas which have significant job
knowledge. If appraisal maker evaluation only on those dimensions on which they are
in good position to rate the chance of evaluations becoming more valid increase.
6. Trained appraiser: Training of appraiser can make them more effective rater.
Common error such as halo effect and leniency can be minimised or eliminated by
training.
7. Poor evaluation: The appraisers may find it difficult to evaluate their subordinate
performance because they are nor working with them every day, unless and until they
have their information they may not be making as accurate appraisal.
8. Poor appraisal interview: There should be a comprehensive system for using for
using the performance appraisal data. The information attained must serve some
purpose. The purpose is to communicate the employee how they perform.
9. Reward to accurate appraiser: The manager, if not recorded properly for doing the
accurate appraisal would try to avoid the process entirely. If purchased they will
complete the appraisal but the appraisal will suffer from various error.

DISCUSSION QUESTIONS:
Answer the following for 5 Marks:
1) Explain the importance of performance appraisal in human resource management.
2) Define training and development and its purpose using appropriate examples in the
workplace.
3) Explain the main differences between On-the-Job and Off-the-Job training methods.
4) Illustrate how Management by Objectives (MBO) can be used to minimize internal conflict
and enhance employee commitment.
Answer the following for 9 Marks:
1) Discuss modern methods of performance appraisal.
2) What are the limitations of performance appraisal? Give suggestions to overcome it.
3) Apply 360-degree appraisal technique as a way of determining the performance of a
middle level manager of a service organization.
4) Discuss in detail modern training methods.

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CASE-STUDY: Remedial Training
Amandeep Sharma has been employed for nine months in the accounts section of a large
Publishing company in New Delhi. You have been his supervisor for the past three months.
Recently you have been asked by the management to find out the contributions of each employee
in the Accounts Section and monitor carefully whether they are meeting the standards set by you.
A few days back you have completed your formal investigation and with the exception of
Amandeep, all seem to be meeting the targets set by you. Along with numerous errors, Amandeep's
work is characterised by low performance - often he does 20 per cent less than the other clerks in
the department.
As you look into Amandeep's performance review sheets again, you begin to wonder
whether some sort of remedial training is needed for people like him.
Questions
1. As Amandeep's supervisor, can you find out whether the poor performance is due to poor
training or to some other cause?
2. If you find Amandeep has been inadequately trained, how do you go about introducing a
remedial training programme?

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