Chapter 10

Appraising and Managing Performance

Lecture Overview

• Performance Appraisal

• Relationship between Performance Appraisal and Job Evaluation

• Objectives of Performance Appraisal

• Multi Purposes of Performance Appraisal

• Performance Appraisal and Competitive Advantage

• Process of Performance Appraisal

• Performance Appraisal Methods

• Goal Based Performance Appraisal

• 360 Degree Performance Appraisal

Recap of Previous Lecture

• Training Process

• Phases in Training Process

• Steps in Training Program

• Training Methods

• Training and HRD

Training Process

Need Assessmenta) Organization support b) Organizational Analysisc) Task and KSA analysis d) Person Analysis

Instructional ObjectivesDevelopment of

criteriaTraining Validity

Transfer Validity

Intraorganizationalvalidity

Interorganizationalvalidity

Selection and designof instructional

program

Training

Use of evaluation modelsSource: Aswathappa, 2008, p. 216

Training Process

Phase 1Training Need

Phase 2Training Design

Phase 3Training Implementation

Phase 4Training Evaluation

Training Methods

Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 221

Training Method

Orienting new employees, introducing innovation

Special skills training

Safety education

Creative technical and professional education

Sales, administrative and managerial education

On the jobOrientation training

Yes - - - -

Job Instruction training

Yes Yes - - -

Apprentice training

Yes Yes - - -

Internship - Yes - Yes Yes

Job rotation Yes - - - Yes

Coaching - Yes Yes Yes Yes

Training Methods

Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 218

Training Method

Orienting new employees, introducing innovation

Special skills training

Safety education

Creative technical and professional education

Sales, administrative and managerial education

Off the jobVestibule Yes Yes - - -

Lecture Yes Yes Yes Yes Yes

Films Yes Yes Yes Yes Yes

Conference Yes - Yes Yes Yes

Case Study - - - - Yes

Role Playing - - - Yes -

Simulation Yes Yes Yes Yes -

Programmed Instructions

Yes Yes Yes Yes -

Laboratory Training

- - Yes Yes -

1 Training Need Assessment

Organizational Analysis

1 How training will assist to achieve organization goals?2 What cost is expected and what is benefit to the organization?

Task Analysis 1 What are job responsibilities and duties?2 What knowledge and skills are required to increase work performance?

Person Analysis 1 What is trainee's skill and knowledge level? 2 Which learning style trainees prefer?

Training Process

2 Training Design

Instructional Objectives/strategy

1 Based on TNA, learning objectives are set (desired skills and knowledge and attitude change)2 This includes detailed plan regarding methods, material, resources and training objectives etc.

Trainee Readiness 1 Assessment of trainee's background knowledge and skills to determine level of readiness to absorb new learning2 Knowledge of level of trainee to develop contents/strategy of training program3 Categorizing and grouping trainees according to their capacity to learn4 To enforce and motivate trainee's desire to learn new knowledge and skills

Training Process

2 Training Design Learning Principle

1. Setting training goals and objectives2. Meaningful presentation3. Social learning theory focusing on learning based on modeling and visual aids4. Appreciate differences in learning style; some learn quickly in group discussion while some prefer to work alone on problems5. Practice and Practice (Exercises/work on solutions)6. Feedback on progress7. Time duration (continuous or distributed)

3 Training Implementation

Material and Equipment

Posters and ChartsWhiteboard/Projector

Trainee's Manual

1. Contains Information on Training Content

Trainer's Manual

Contains information given in trainee's manual and instruction on how to deliver

Facilities 1. computer/furniture/training room

Trainer 1. Who will deliver the training?2. Trainer's qualification, experience, expertise and background

Training Process

4 Training Evaluation

Reactive 1. Did the trainees find the training interesting (Questionnaires)? Immediate feedback response on training

Learning 1. Did the trainees have made advancement in knowledge and skills (written test)?

Behavior 1. Is trainee behaving in different way after receiving training (performance appraisal)

Results 1. Is organization/unit performing better (Quality/Productivity/Cost/ Profit/Morale/Work environment/team work

Training Process

Source: Blanchard, P. & Thacker, J: Effective Training, Systems, Strategies, and Practices(3rd Edition, 2007)

“A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands”

Werner and DeSimone (2006)

Definition of HRD

• Human Resource Management (HRM) covers many functions

• Human resource development (HRD) is just one of the functions within HRM

Relationship Between HRM and HRD

• Training and development (T&D)• Organizational development• Career development

HRD Functions

• The process of improving an organization’s effectiveness and member’s well-being through the application of behavioral science concepts

Organizational Development

• Training – improving the knowledge, skills and attitudes of employees for the short-term, particular to a specific job or task

• Development – preparing for future responsibilities, while increasing the capacity to perform at a current job

Training and Development (T&D)

• Ongoing process by which individuals progress through series of changes until they achieve their personal level of maximum achievement

Werner and DeSimone (2006)

Career Development

Appraising and Managing Performance

Performance Appraisal

• Performance appraisal is to evaluate the performance of an employee to determine whether he is performing his given task and duties well or to monitor whether he has given his best effort and performance on given job

• Performance appraisal is an assessment of individual performance, the performance is measured against such factors as job knowledge, quality, quantity of output, initiative, leadership, abilities, supervision, cooperation, judgment, analytical skills, problem solving skills, etc.

(P. 239)• The other similar terms often used for performance appraisal

are performance rating, employee performance review, employee assessment, personal appraisal, employee evaluation, or performance evaluation

Performance Appraisal

Job Analysis PerformanceAppraisal

Performance Standards

Describe work and professional requirementof a job

Describe the job relevant strengths and weaknesses of each individual

Translate job requirementsinto levels of acceptableor unacceptable performance

Relationship of Performance Appraisal and Job Analysis

Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 240

Objectives of Performance Appraisal

• Make promotion decisions based performance

• To confirm services of employee on probation

• To identify training and development needs of employees

• To decide compensation

• To inform employees of their performance and give them feedback and guidance to improve performance

• Performance appraisal helps to know the effectiveness of other HR functions such as recruitment and selection, training, and promotion etc.

Multi Purposes of Performance Appraisal

Administrative DevelopmentalSet selection criteria Identification of individual training

needs

Promotion Performance feedbackRetention or termination Determining job assignment and

transfer

Identification of poor performers Identification of strengths and weaknesses of employee

Compensation Recognize and appreciate individual performance

Evaluate training effectiveness Goal setting and evaluation

Adopted from: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 240

Performance Appraisal and Competitive Advantage

Adopted from: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 240

Competitive advantage

Consistency between strategy and behavior

Improving performance

Minimizing dissatisfaction and turnover

Ensuring legal compliance

Making correct decisions