HR

FUNDAMENTAL
S
WORKSHOP
By: Bassem El-Diftar
If you could change one
thing about your job,
what would it be?
Module
THREE
3
 PART ONE
PERFORMANCE MANAGEMENT

DEFINITION OF WHO SHOULD DO

PERFORMANCE MANAGMENT THE APPRAISING

BENEFITS OF PERFORMANCE APPRAISAL

PERFORMANCE MANAGEMENT PROBLEMS

STAGES & METHODS OF

OKRA VS KPI’S
PERFORMANCE MANAGEMENT

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 WHAT IS
PERFORMANCE
MANAGEMENT?

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Definition of Performance Management

• Continuous Process of identifying, measuring

and developing the performance of individuals
and teams and aligning performance with the
Strategic Goals of the organization.

• Performance Management fundamental

goal is to promote and improve employee
effectiveness.
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PERFORMANCE MANAGEMENT
BENEFITS

Most employers consider base pay, promotion, and retention

decisions on the employee s appraisal.

Develop a plan for correcting any deficiencies, and to reinforce the

things the subordinate does right.

Provide an opportunity to review the employee’s career plans in light

of his or her exhibited strengths & weaknesses.

Identify employees training and development needs.

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 PERFORMANCE MANAGEMENT
PROCESS

PLANNING Employee will meet with his/her supervisor to

agree upon key accountabilities, standards, and
development plan if needed to achieve goals.

MONITOR Employee will start working on his targets

reverting to supervisor for coaching /guidance and
supervisor should focus with subordinate
achievement and provide support.
Review Employee will assess himself against agreed upon
objectives and Supervisor will assess employee
against the targets but separately
RATE the actual meeting between the employee and his/her
manager takes place to review status of goal
accomplishments
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 PERFORMANCE MANAGEMENT
METHODS

01 GOAL SETTINGS
04 360 DEGREE

CONTINOUS
02 PERFORMANCE
MANAGEMENT
05 PERFORMANCE
APPRAISALS

03 MANAGEMENT
BY OBJECTIVE 06 COACHING

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1- GOAL SETTINGS – PURPOSE

Setting SMART goals gives It helps them understand

01 the employees clarity,

purpose, and motivation. 02 how their work and
performance help the
company achieve its goals

Employees know how to

prioritize day-to-day
03 tasks and are more
motivated to achieve
them.

10 10
HOW TO SET SMART GOALS

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 TYPES OF SMART GOALS

Goals that Goals that help Challenge

are usually aligned employees employees by
with specific job develop their skills getting them out of
requirements & competencies their comfort zone
that prepare & stretching their
them for current capabilities
progression to
other roles
PERFORMANCE DEVELOPMENT STRETCH
GOALS GOALS GOALS

SMART goals can set together with employees depending on the company needs and the
objectives of the business 12
2- CONTINUOUS PERFORMANCE MANAGEMENT

• Continuous performance management is a holistic approach to

performance management where managers and employees discuss
the employee’s work performance and goals on a continual basis
throughout the year by providing constructive, real-time
performance feedback.

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3- MANAGEMENT BY OBJECTIVE

• Management by objectives (MBO) is a performance management method that helps

analyze the overall performance of an employee in their role by aligning it with
organizational objectives.

• This enables them to gain an understanding of what they’re

doing well and where they can improve, and what they are
struggling with.
• Ex: Increase client satisfaction rate by 15% over the next
six months.
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4- 360- DEGREE FEEDBACK
• 360- degree feedback (also known as 360 review) is a performance management
method where an employee receives feedback from their manager, peers, and self-
evaluation.

5- PERFORMANCE APPRAISALS
• This will typically take place annually, bi-annually, or quarterly, and involve a one-to-
one meeting between the employee and their manager.
• Managers will often prepare thoughtful constructive feedback relating to all areas of
the employee’s performance, identifying their strengths, weaknesses, and key
areas for improvement.
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6- COACHING

• Coaching is a performance management process aimed at mentoring

and developing an employee’s skills, knowledge, and performance
primarily through one-to-one conversations, by focusing on specific
skills or goals,

• In this method the employees are not given specific

solutions but encouraged to find solutions for themselves.

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WHO SHOULD DO THE
APPRAISING?

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 PEER
1 APPRAISIAL

RATING
4 COMMUNITY
WHO
360-
SHOULD
DO THE
2 DEGREE
FEEDBACK
APPRAISING? SELF-
5 RATINGS

APPRAISAL
3 BY
SUBORDANITES
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PEER APPRAISAL

• Peer appraisal is a type of feedback system in

the performance appraisal process, where the
employee is assessed based on the feedback
given by his/her colleagues or people within
his/her close working environment. This
feedback is anonymous.

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PEER APPRAISAL - PROCESS
SET CLEAR GOALS
Make sure everyone at work understands why they are FORMATE REVIEW
being Provide clearly formatted, specific questions
reviewed and what you hope to get out of the process for employees to answer about their peers

DISCUSS & INVISTIGATE

Set up a process to work with your ESTABLISH METRICS
employees to address the issues Systematic way to measure your
brought up by their peers in the employees numerically
performance reviews

KEP REVIEW ANONYMOUS REVIEW EVERYONE

Keep the reviews anonymous so employees Peer reviews should be done among
aren't discouraged from answering honestly .employees who work together
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.about their peers
360- Degree Feedback

• 360- degree feedback, is a type of feedback in which the employer collect

performance information all around- from his or her supervisors,
subordinates, peers, and internal or external customers.

• Usually this appraisal completed by online appraisal

surveys “computerized systems” then compile all this
feedback into individualized reports to ratees.

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APPRAISAL BY SUBORDANITES

• A subordinate appraisal is an appraisal

system whereby managerial employees are
evaluated by their subordinates.

• To prevent inflated ratings or inaccurate data,

feedback responses should remain anonymous.

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Rating Committees

• A rating committee is usually composed of the employee’s

immediate supervisor and three or four other supervisors.

Self- Ratings
• Some employers obtain employees self-ratings, usually in conjunction with
supervisors ratings. The basic problem, of course, is that employees usually rate
themselves higher than do their supervisors or peers.
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 MOST COMMON
APPRAISAL PROBLEMS

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•
Un-clear Standards
Different supervisors might define ”good’
01
02
performance “fair” performance and vice
versa.
Halo Effect
• If a manager is particularly impressed with an

03
employee’s strong performance in one area,
Bias
they might assume that the employee excels
• Bias occurs when subjective opinions in other areas, even without proper evidence.

04
influence employee evaluations, instead of
using objective and measurable criteria. Leniency or Strictness
• Leniency bias occurs when a manager gives

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higher-than-deserved ratings to employees &
Recency Effects Strictness bias occurs when a manager gives
• Focus more on an employee's recent employees lower than their actual performance.
performance rather than their overall
performance during the entire evaluation
period.
06 •
Central Tendency
A supervisors stick to the middle when
filling in rating scale
OKRA VS KPI’S

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 LEARNING & DEVELOPMENT

DEFINITION OF TRAINING NEED ASSESSMENT

LEARNING & TRAINING & DEVELOPMENT DEFINITION & TECHNIQUES

WHY LEARNING & DEVELOPMENT

TRAINING & DEVELOPMENT METHOD & TECHNIQUES

HOW TO CREATE PERSONAL

LEARNING & DEVELOPMENT
DEVELOPMENT PLAN
ANALYTICS

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WHAT’S
LEARNING
TRAINING
DEVELOPEMNT
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LEARNING, TRAINING, AND DEVELOPMENT

Acquiring knowledge, skills, behaviors, and

LEARNING competencies.

Providing knowledge, skills, or abilities (KSAs)

TRAINING specific to particular task or job.

DEVELOPME Preparing for future responsibilities through job

experiences, relationships, assessment,
NT and educational courses.

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 WHY TRAINING & DEVELOPMENT?
01 -SUPPORT THE ORGANIZATIONAL 05 - REDUCE OR REMOVE
MISSION AND STRATEGY PERFORMANCE DEFICIENCIES

02 - ENHANCE WORKFORCE 06 -PROMOTE PERSONAL &

FLEXIBILITY TO MEET CHANGING PROFESSIONAL DEVELOPMENT
MARKET CONDITIONS.

03 - MEET REGULATORY REQUIREMENTS 07 - INCREASE EMPLOYEE

COMMITMENT

04 - INCREASE PRODUCTIVITY AND QUALITY OUTCOMES 08 –LOWER TURNOVER

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 The JOURNEY OF LEARNING

UNCONSCIOUS CONSCIOUS CONSCIOUS UNCONSCIOUS

INCOMPETENCE INCOMPETENCE COMPETENCE COMPETENCE

You don’t know You know that you

You know that you You know that you
that you don’t know how to do
don’t know how to know how to do
know how to do something and it
do something and something and it
something is second nature;
it bothers you takes efforts
you rock on it
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TRAINING & DEVELOPMENT
METHODS

01 02
70, 20, 10
ADDIE MODULE LEARNING THEORY

The ADDIE model is a framework The 70-20-10 theory is a learning

and development model
used for instructional design and emphasizing that:
stands for Analysis, Design,
Development, Implementation, • 70% of learning comes from
on-the-job experiences.
and Evaluation. It provides a • 20% comes from social
structured approach to creating interactions, coaching, and
effective training and educational mentoring.
• 10% comes from formal
programs education
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 HOW TO CREATE
PERSONAL DEVELOPMENT PLAN

W W W H
WHAT WHY WHEN HOW

Areas need to be improved This training is required? The plan will This competency will
(professional & personal What is the anticipated take Place? be improved?
competencies)? effect on business results/
job performance /
personal development? 35
 TRAINING NEED ASSISMENT
A training needs assessment, also known as a training needs analysis or
training gap analysis, is a tool used by organizations to identify specific
knowledge or skill gaps across their departments and staff.

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TRAINING NEED
ASSISMENT
EXAMPLE

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KIRKPATRICK MODEL FOR
TRAINING EVALUATION

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LEVEL Training
Attendance Rate
Average Participant
Satisfaction with the an

ONE
L&D Program

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TRAINING ATTENDANCE RATE
The training attendance rate is a key HR metric that measures the
percentage of employees who attend scheduled training sessions.

Formula
# of employees who attend
Training Attendance Rate = ____________________________ * 100
# of employees scheduled to attend

Example
An organization scheduled a training session on effective communication skills for 50
employees. Out of these, 40 employees attended the session.

Solution
40/50*100 = 80%
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Average Employee Satisfaction - eNPS

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LEVEL Learner
Retention
Rate

TWO
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LEARNER RETENTION RATE

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THE LEARNING PYRAMID 45

LEARNER RETENTION RATE – Cont.

Number of Learners Who Retained Knowledge or Skills

Learner Retention Rate ____________________________________________________ * 100
# of employees scheduled to attend

Example

An organization conducts a cybersecurity training course for 100 employees. All 100 employees
attended the course. To measure retention, the organization conducts a follow-up assessment
three months later. In this assessment, 80 employees demonstrate that they have retained the
knowledge and can apply the cybersecurity principles learned.

Answer
80/100* 100 = 80% 46
LEVEL Impact on
Employee Job
Performance

THREE 47

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EMPACT ON EMPLOYEE JOB PERFORMANCE

Measures the change of the employee performance after participation in an L&D

program.

Formula

Y2 Performance appraisal score - Y1 performance appraisal score

__________________________________________________________ * 100
Y1 performance appraisal score
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 Example

Sarah, a Sales Representative at a mid-sized company, currently closes an average of 10 sales per
month. The company implemented a 3-month Advanced Sales Techniques Training program for
Sarah, covering customer relationship management, effective communication, negotiation skills,
and product knowledge, with the objective of improving her sales performance.

Before the training,

Six months after completing the training,:
• Average sales : 10 per month
• Average sales increased to 15 per month
• Customer satisfaction score: 75%
• Customer satisfaction score improved to 85%
• Sales cycle time : 30 days.
• Sales cycle time decreased to 25 days,

Required: Demonstrate the significant enhancements in her job performance on her sales,
customer satisfaction and sales cycle time.

Y2 Performance appraisal score - Y1 performance appraisal score

__________________________________________________________ * 100
Y1 performance appraisal score
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 Answer
1. Sales Performance Improvement =
2. 15-10/ 10 * 100 = 50%  Sarah's sales performance improved by 50% after the
training.
3. Customer Satisfaction Improvement= 85-75 / 75 * 100 = 13.33%  Customer
satisfaction improved by 13.33% after Sarah completed the training.
4. Sales Cycle Time Reduction = 30-35/35 * 100 = 16.67%  The sales cycle time
reduced by 16.67%, indicating that Sarah can close deals faster after the training.

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LEVEL Training
Return on
Investmen

FOUR 51
t

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 TRAINING ROI
Return on investment (ROI) in training and
development refers to the financial yield or benefit an
organization receives from its employee development
investment compared to the cost of running those
programs.

Formula

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Examples of costs associated with employee training
and development:

1. Training fees
2. Course material
3. Equipment & technology
4. Employee time
5. Loss of productivity
6. Administration
7. Evaluation: ex: surveys
8. Overhead expenses

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 TRAINING ROI – CONT.
Example

Sarah is a sales representative, that took an advanced sales techniques course for 3 months,
calculate the revenue increase after 6 months

• Pre-Training Sales Benefits:

o 10 sales/month • Increase in Sales: 5 sales/month
• Training Cost: • Revenue per Sale: $1,000
o Training Program Cost: $5,000
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o Sarah’s Productivity loss time (60

hours at $25/hour): $1,500
Total Cost: $6,500

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 TRAINING ROI – CONT.
Answer
Monthly Increased Revenue

• Increased Revenue per Month=5 sales (month) × $1,000 (sale) =$5,000/month

Total Increased Revenue Over 6 Months

• Total Increased Revenue=$5,000/month × 6 months=$30,000

ROI Calculation

• 30,000-6500 / 6500 *100= 361.53%

The training program delivered an ROI of 361.53%, indicating a substantial return on investment
over the 6-month period. 55
THANK YOU
SEE YOU NEXT SESSION