Chapter Five: Management of

Performance Appraisal,
Training and Development

Chapter Outline:
Performance Appraisal
Performance Management
Training and Development

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Performance Appraisal
 System of review and evaluation of job
performance
 Assesses accomplishments and evolves
plans for development

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Performance Appraisal
Performance appraisals are used to assess
an employee’s performance and provide a
platform for feedback about past, current,
and future performance expectations.
 Performance appraisal is variously called
employee rating, employee evaluation,
performance review, performance
evaluation, or results appraisal

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Performance Appraisal
 Performance appraisals are widely used for
administering wages and salaries, giving
performance feedback, and identifying
individual employee strengths and
weaknesses.
 Indeed, performance appraisals can provide
answers to a wide array of work-related
questions, and by advancing a road map for
success, poor performance can be
improved.
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Performance Management
 Process that significantly determines how
organization performs
 Managers and employees work together to
set expectations, review results and
reward performance.
 Platform for assessing individual and team
performance

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The Nature of Performance
Management
 The performance management process
starts by identifying the strategic goals an
organization needs to accomplish to
remain competitive and profitable.
 After these ideas are crystallized,
managers identify how they and their
employees can help support organizational
objectives by successfully completing work

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The Nature of Performance
Management
 The sum of the work completed in all jobs
should advance the strategic plan.
 By adopting a “big-picture” quantitative
approach, managers can successfully
combine individual efforts in a manner that
provides practical measures of organizational
effectiveness.
 Performance management can also provide a
unified approach to dealing with individual
career development.
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Performance Management
Linkage

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Components of
Performance Management

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Types of Performance
Information

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Group Assignment
 Get performance appraisal checklist
 Label each items in the checklist against
trait, behavior or result based information
 Find out the percentage of each and then
evaluate the overall performance appraisal
information whether it less or more
useful.

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Uses of Performance
Appraisals

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Who Performs the
Appraisal?
 Immediate  Evaluation Teams
Supervisor  Subordinate
 Higher Appraisal
Management  Customers
 Self-Appraisals  “360° Appraisals”
 Peers

(Co-Workers)

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Supervisor Appraisal
 Performance appraisal done by an
employee’s manager and often reviewed by
a manager one level higher.

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Self-Appraisal
 Performance appraisal done by the
employee being evaluated, generally on an
appraisal form completed by the employee
prior to the performance review.

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Subordinate Appraisal
 Performance appraisal of a superior by an
employee, which is more appropriate for
developmental than for administrative
purposes.

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Team Appraisal
 Performance appraisal, based on TQM
concepts, that recognizes team
accomplishment rather than individual
performance.

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The 360º Appraisal/modern/
Supervisor

Other Superiors Other Superiors

Individual
Peers Staff Customers
Self-Assessment

Teams Teams

Sub-Ordinates

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Performance Appraisal
Methods

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 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.

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Graphic Rating-Scale
Method
 Performance appraisal whereby each
employee is rated according to a scale of
pre-defined characteristics that are job
performance related.

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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.

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

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Essay Method
 Write a Behavioral Statement
 Strengths versus Weaknesses
 Describe Selected Traits
 Evaluate Performance

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

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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.

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 Management by Objectives
(Peter Drucker)
 Integrates performance and goal setting
 Frequent intervals
 Record maintenance
 Objective review jointly
 Mutual buy-in

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The Appraisal Period
 Prepared at specific
intervals
 Usually annually or
semiannually
 Period may begin with
employee’s date of hire
 All employees may be
evaluated at same time

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Effective Appraisal System

 Job-related criteria
 Performance expectations
 Standardization
 Trained appraisers
 Continuous open communication
 Performance reviews
 Due process

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Legal Implications
 Performance appraisal criteria based on job
analysis
 Formal evaluation criteria that limit managerial
discretion
 A rating instrument linked to job duties and
responsibilities
 Documentation of the appraisal activities
 Personal knowledge of and contact with each
appraised individual
 Training of supervisors in conducting appraisals
 Counseling to help poor performers improve
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 Training and
Development

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Training and
Development
 Having qualified and well trained
personnel, to perform various jobs, is a
very basic necessity for any organization.
 Training and development of employees
becomes necessary because of changing
technology, up gradation of skills and
knowledge of the workers, the need to
increase the productivity of the workers,
etc…so as to retain the competitive edge.

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Training and
Development
 Training is a process of learning a
sequence of programmed behavior, which
helps the trainees in improving their job
performance and better apply their
knowledge.
 Whereas development covers not only
performance improvement activities but
also those which enhance personality, gain
better attitudes, values and behavior.
 The scope of development is wider than
training.
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Distinction between training
and development
Learning Training Development
Dimension
Who is the target? It is given to technical/ It is given for
non-managerial people managers
What knowledge to People require technical Executives require
transfer? & operational conceptual and
knowledge and skill theoretical knowledge

Why? • For job improvement. • For general

development
• It is job centered - for
specific job. • It is career oriented
or growth oriented
- for all activity of
job
When or time It is short-term process. It is long-term process
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duration?
 Needs and purpose of
training
 Economic, social, technological, and government changes can
make the skills learned today obsolete in the future.
 Planned organizational changes (such as the introduction of
new equipment) can make it necessary for employees to
update their skills or acquire new ones.
 Performance problems within an organization such as low
productivity or large scrap problems can be reduced by
training.
 Regulatory, contractual, professional, or certification issues can
require an employer to provide training for its employees
 To reduce supervision time, minimize spoilage and wastage of
material
 To assist workers to perform at the optimum level in current
jobs.
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 To develop employees for future jobs expansions or
Needs and purpose of
training
 To help the worker in adopting safe work procedures.
 To help the workers in their personal growth, within
the organization as well as outside.
 To increase the job satisfaction since training can
improve the employee’s self-esteem.
 To prepare employees for promotion to positions
which require added skill and knowledge. Trained
workers will be given priority in promotions and
transfers.
 To lower the cost of wastes and equipment
maintenance.
 To bridge the gap b/n the existing performance and
performance and potential
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performance.
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The Training and
Development (T&D) Process
Determine T&D Needs

Establish Specific
Objectives

Select T&D Method(s)

Implement T&D Programs

Evaluate T&D Programs

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 Determining Training and
Development Needs

In order to
compete
effectively, firms
must keep
employees well
trained.

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 Establishing Training and
Development Objectives

 Desired end results

 Clear and concise objectives
must be formulated

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 T&D Methods

 Classroom  Distance Learning

Programs and
Videoconferencing
 Mentoring
 E-learning
 Coaching
 On-the-Job Training
 Role Playing  Job Rotation
 Simulations  Internships
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Classroom Programs
 Continue to be
effective for
many types of
employee
training
 May incorporate
some of other
methods
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 Mentoring
 Approach to advising, coaching,
and nurturing, for creating practical
relationship to enhance individual
career, personal, and professional
growth and development
 Mentor may be located elsewhere
in organization or in another firm
 Relationship may be formal or
informal
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 Coaching

 Often considered responsibility of

immediate boss
 Provides assistance much as a
mentor

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 Role Playing
 Respond to specific problems they
may actually encounter in jobs
 Used to teach such skills as:
 interviewing
 grievance handling
 performance appraisal reviews
 conference leadership
 team problem solving
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 communication
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Simulations/Vestibule
Training

Training devices that

model the real world or
programs replicating
tasks away from the
job
site

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Distance Learning and Video
conferencing
 Interactive training
 Used to:
increase access to training
ensure consistency of
instruction
reduce cost of delivering T&D
programs

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E-Learning

Umbrella term
describing online
instruction

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On-the-Job Training

 Informal approach that permits

employee to learn job tasks by
actually performing them
 Most commonly used T&D method
 No problem transferring what has
been learned to the task

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Job Rotation

 Employees move from

one job to another to
broaden experience
 Helps new employees
understand variety of
jobs

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Internships
 Training approach where university
students divide their time between
attending classes and working for an
organization
 Excellent means of viewing potential
permanent employee at work
 Students are enabled to integrate
theory with practice
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