trainingdevelopment performanceappraisalbyrajaraopagidipalli 130429022027 phpapp01

8/11/2019 Trainingdevelopment Performanceappraisalbyrajaraopagidipalli 130429022027 Phpapp01

1/18

Human Resource Management M.B.A. PRINCE

R a j a R a o P a g i d i p a l l i Page 1

TRAINING & DEVELOPMENT

AND PERFORMANCE APPRAISAL

RAJA RAO PAGIDIPALLIM.B.A.(HRM), M.A.(ENG), M.Phil, (Ph.D)


2/18



TRAINING & DEVELOPMENT

AND PERFORMANCE APPRAISAL

Introduction: Organization and individual should develop and progress

simultaneously for their survival and attainment of mutual goals. So, every modern

management has to develop the organization through human resources development.

Employee training is the most important sub-system of human resources development.

Training is a specialized function and is one of the fundamental operative functions for

human resources management.

Meaning: After an employee is selected, placed and introduced in an organization

he/she must be provided with training facilities in order to adjust him to the job.

Training is the act of increasing the knowledge and skill of an employee for doing a

particular job. Training is a short-term educational process and utilizing a systematic

and organized procedure by which employees learn technical knowledge and skills for a

definite purpose. Dale S. Beach defines the training as.. the organized procedure by

which people learn knowledge and skill for a definite purpose. In other words, training

improves changes and moulds the employees knowledge, skill, behavior and aptitude

and attitude towards the requirements of the job and the organization. Training refers to

the teaching and learning activities carried on for the primary purpose of helping

members of an organization to acquire and apply the knowledge, skills, abilities and

attitudes needed by a particular job and organization.Thus, training bridges thedifferences between job requirements and employees present specifications.

Training and Development: Employee training is distinct from management

development or executive development. While the former refers to training given to

employees in the areas of operations, technical and allied areas, the latter refers to

developing an employee in the areas of principles and techniques of management,

administration, organization and allied areas.

Importance of Training and Development: Optimum Utilization of Human

Resources Training and Development helps in optimizing the utilization of humanresource that further helps the employee to achieve the organizational goals as well as

their individual goals.

Development of Human Resources Training and Development helps to provide

an opportunity and broad structure for the development of human resources technical

and behavioral skills in an organization. It also helps the employees in attaining

personal growth.


3/18



Development of skills of employees Training and Development helps in

increasing the job knowledge and skills of employees at each level. It helps to expand the

horizons of human intellect and an overall personality of the employees.

Productivity Training and Development helps in increasing the productivity of the

employees that helps the organization further to achieve its long-term goal.

Team spirit Training and Development helps in inculcating the sense of team work,

team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within

the employees.

Organization Culture Training and Development helps to develop and improve the

organizational health culture and effectiveness. It helps in creating the learning culturewithin the organization.

Organization Climate Training and Development helps building the positive

perception and feeling about the organization. The employees get these feelings from

leaders, subordinates, and peers.

Quality Training and Development helps in improving upon the quality of work and

work-life.

Healthy work environment Training and Development helps in creating thehealthy working environment. It helps to build good employee, relationship so that

individual goals aligns with organizational goal.

Health and Safety Training and Development helps in improving the health and

safety of the organization thus preventing obsolescence.

Morale Training and Development helps in improving the morale of the work force.

Image Training and Development helps in creating a better corporate image.

Profitability Training and Development leads to improved profitability and more

positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e. Organization

gets more effective decision making and problem solving. It helps in

understanding and carrying out organisational policies

Training and Development helps in developing leadership skills, motivation,

loyalty, better attitudes, and other aspects that successful workers and managers

usually display.


4/18



Training Objectives: Generally, line managers ask the personnel manager to

formulate the training policies. The personnel manager formulates the following

training objectives in keeping with the companys goals and objectives.

(i) To prepare the employee, both new and old to meet the present as well as the

changing requirements of the job and the organization.

(ii) To prevent obsolescence.

(iii) To impart the new entrants the basic knowledge and skills they need for an

intelligent performance of a definite job.

(iv) To prepare employees for higher level tasks.

(v) To assist employees to function more effectively in their present positions by

exposing them to the latest concepts, information and techniques and developing

the skills they will need in their particular fields. (vi) To build up a second line of competent officers and prepare them to occupy

more responsible positions.

(vii) To broaden the minds of senior managers by providing them with

opportunities for an interchange of experiences within and outside with a view to

correcting the narrowness of outlook that may arise from over-specialization.

(viii) To develop the potentialities of people for the next level job.

(ix) To ensure smooth and efficient working of a department.

(x) To ensure economical output of required quality.

(xi) To promote individual and collective morale, a sense of responsibility, co-

operative attitudes and good relationships.

Training Methods: As a result of research in the field of training, a number of

programs are available. Some of these are new methods, while others are improvements

over the traditional methods. The training programs commonly used to train operative

and supervisory personnel are discussed below. These programs are classified into on-

the-job off-the-job training programs.

On-the Job Training Methods:This type of training, also known as job instruction

training, is the most commonly used method. Under this method, the individual is

placed on a regular job and taught the skills necessary to perform that job. The trainee

learns under the supervision and guidance of a qualified worker or instructor. On-the-

job training has the advantage of giving first hand knowledge and experience under the

actual working conditions. While the trainee learns how to perform a job, he is also a

regular worker rendering the services for which he is placed on rendering services in the

most effective manner rather than learning how to perform the job. On-the-job training

methods include job rotation, coaching, job instruction or training through step-by-step

and committee assignment.


5/18



Job Rotation:This type of training involves the movement of the trainee from one job

to another. The trainee receives job knowledge and gains experience from his supervisor

or trainer in each of the different job assignments. Though this method of training iscommon in training managers for general management positions, trainees can also be

rotated from job to job in work-shop jobs. This method gives an opportunity to the

trainee to understand the problems of employees on other jobs and respect them.

Coaching:The trainee is placed under a particular supervisor who functions as a coach

in training the individual. The supervisor provides feedback to the trainee on his

performance and offers him some suggestions of his burden. A limitation of this method

of training is that the trainee may not have the freedom or opportunity to express his

own ideas.

Job Instruction: This method is also known as training through step by step. Under

this method, the trainer explains to the trainee the way of doing the jobs, job knowledge

and skills and allows him to do the job. The trainer appraises the performance of the

trainee, provides feedback information and corrects the trainee.

Committee Assignments:Under the committee assignment, a group of trainees are

given and asked to solve an actual organizational problem. The trainees solve the

problem joint6ly. It develops team work.

Internship:Internship is one of the on-the-job training methods. Individuals enteringindustry in skilled trade4slike machinist, elect6ician and laboratory technician are

provided with thorough instruction though theoretical and practical aspects. For

example, TISCO, TELCO, and BHEL select the candidates from polytechnics

engineering colleges and management institutions and provide apprenticeship training.

Apprenticeship training programs are jointly sponsored by colleges, universities and

industrial organizations to provide the opportunity to the students to gain real-life

experience as well as employment. Exhibit presents the benefits of apprenticeship

training.

MAKE INTERNSHIPS BENEFICIAL: Most of the Universities and Colleges

encourage students for internship as part of the curriculum, as it is beneficial to all

concerned.

Benefits to Students:

Practical knowledge and exposure

Higher initial salaries

Faster promotions


6/18



Quick job orientation

Benefits of Universities: Touch with market place

Improvement in recruitment chances

Improvement in attraction of quality students

Benefits to Potential Employers:

Competent assistance

Opportunity to evaluate potential employees

No obligation to continue relationship at the end of internship

Reduce recruitment expenses.

Off-the-Job Methods:Under this method of training, the trainee is separated from

the job situation and his attention is focused upon learning the material related to his

future job performance. Since the trainee is not distracted by job requirements, he can

place his entire concentration on learning the job rather than spending his time in

performing it. There is an opportunity for freedom of expression for the trainees.

Companies have started using multimedia technology and information technologies in

training off-the-job training methods are as follows:

Vestibule Training:In this method, actual work conditions are simulated in a

class room, material, files and equipment which are used in actual jobperformance are also used in training. This type of training is commonly used for

training personnel for clerical and semi-skilled jobs. The duration of this training

ranges from days to a few weeks. Theory can be related to practice in this method.

Role Playing: It is defined as a method of human interaction that involves

realistic behavior in imaginary situations. This method of training involves

action, doing and practice. The participants play the role of certain characters

such as the production manager, mechanical engineer, superintendents,

maintenance engineers, quality control inspectors, foremen, workers and the like.

This method is mostly used for developing inter-personal interactions and

relations.

Lecture Method:The lecture is a traditional and direct method of instruction.

The instructor organizes the material and gives it to a group of trainees in the

form of a talk. To be effective, the lecture must motivate and create interest

among the trainees. An advantage of the lecture methods that it is direct and can

be used for a large group of trainees. Thus, costs and time involved are reduced.

The major limitation of the lecture method is that it does not provide for transfer

of training effectively.


7/18



Conference or Discussion: It is a method in training the clerical professional

and supervisory personnel. This method involves group of people who pose ideas,examine and share facts, ideas and data, test assumptions and draw conclusions,

all of which contribute to the improvement of job performance. Discussion has

the distinct advantage over the lecture method, in that the discussion involves

two-way communication and hence feedback is provided. The participants feel

free to speak in small groups. The success of this method depends on the

leadership qualities of the person who leads the group.

Programmed Instruction:In recent years, this method has become popular.

The subject-matter to be learned is presented in a series of carefully planned

sequential units. These units are arranged from simple to more complex level ofinstruction. The trainee goes through theses units by answering questions or

filling the blanks. This method is expensive and time consuming.

The Training Procedure: The training procedure discussed below is

essentially an adoption of the job instruction training course, which has been

proved to have a great value. The important steps in the training procedure are

discussed below:

Preparing the Instructor:The instructor must know both the job to be taught

and how to teach it. The job must be divided into logical parts so that each can betaught at a proper time without the trainee losing plan. For each part, one should

have in mind the desired technique of instruction, that is, whether a particular

point is best taught by illustration, demonstration or explanation.

A ser i o u s a n d com m i t t ed i n st r u c t o r m u st :

Know the job or subject he is attempting to teach.

Have the aptitude and ability to teach.

Have willingness towards the profession.

Have a pleasing personality and capacity for leadership.

Have the kno2wledge of teaching principles and methods.

Be a permanent student, in the sense that he should equip himself with the latest

concepts and knowledge.

Preparing the Trainee:As in interviewing, the first step in training is to attempt to

place the trainee at east. Most people are some what nervous when approaching an

unfamiliar task. Though the instructor may have executed this training procedure, many

times he or she never forgets its newness to the trainee. The quality of empathy is a

mark of the good instructor.


8/18



Getting Ready to Teach:This stage of the program is class hour teaching involving

the following activities:

Planning the program.

Preparing the instructors outline.

Do not try to cover too much material.

Keep the session moving along logically.

Discuss each item in depth.

Repeat, but in different words.

Take the material from standardized texts when it is available.

When the standardized text is not available, develop the program and course content

based on group approach. Group consists of employer, skilled employees, supervisors,trade union leaders and others familiar with job requirements. Group prepares

teaching material.

Teach about the standard for the trainee like quality, quantity, waste or scrap, ability

to work without supervision, knowledge or procedure, safety rules, human relations

etc.

Remember your standard, before you teach.

Presenting the Operation:There are various alternative ways of presenting

the operation, viz. explanation, demonstration etc. an instructor mostly uses

these methods of explanation. In addition, one may illustrate various pointsthrough the use of pictures, charts, diagrams and other training aids.

Try Out the Trainees Performance:As a continuation of the presentation

sequence given above, the trainee should be asked to start the job or operative

procedure. Some instructors prefer that the trainee explains each step before

doing it, particularly if the operation involves any danger. The trainee, through

repetitive practice, will acquire more skill.

Follow-up: The final step in most training procedures is that of follow-up.

When people are involved in any problem or procedure, it is unwise to assume

that things are always constant. Follow-up cab be adopted to a variable

reinforcement schedule as suggested in the discussion of learning principles.

Every training program should have follow-up otherwise the training programs in

the future cannot be improved.

EVALUATION OF TRAINING PROGRAMME


9/18



The specification of values forms a basis for evaluation. The basis of evaluation and the

mode of collection of information necessary for evaluation should be determined at the

planning stage. The process of training evaluation has been defined as any attempt toobtain information on the effects of training permance and to assess the value of

training in the light of that information. Evaluation leads to controlling and correcting

the training program. Hamblin suggested five level at which evaluation of training can

take place, viz, reactions, learning, job behavior, organization and ultimate value.

Positive Attitudes Make an Organisation

Determine training needs through job description, performance appraisal forms

and potential appraisal discussions.

Prepare a training calendar in discussion with managers.

Training programs should be well defined specific objectives. Nominate the employees for training based on a need for training.

Trainers should be qualified and experienced, and preferably internal.

Reactions:Training program is evaluated on the basis of the trainees reactions

to the usefulness of coverage of the matter, depth of the course content, method

of presentation, teaching methods etc.

Learning: Training program, trainers ability and trainee ability are evaluated

on the basis of quantity of content learned and time in which it is learned and the

learners ability to use or apply the content he learned.

Job Behavior: This evaluation includes the manner and extent to which the

trainee has applied his learning to his job.

Organisation: This evaluation measures the use of training, learning and

change in the job behavior of the department/organization in the form of

increased productivity, quality, morale, sales turnover and the like.

Ultimate Value: It is the measurement of the ultimate result of the

contributions of the training program to the Company goals like survival, growth,

profitability etc., and to the individual goals like development of personality and

social goals like maximizing social benefit.

MANAGEMENT DEVELOPMENT INTRODUCTION

W ha t i s M ana g em en t D ev el o pm en t ?


10/18



Management development is a systematic process of growth and development by which

the managers develop their abilities to manage. So, it is the result of not only

participation in formal courses of instruction but also of actual job experience. It isconcerned with improving the performance of the managers by giving them

opportunities for growth and development, which in turn depends on organization

structure of the company.

Role of the Organisation: The role of the company in management development is

to establish the program and the development opportunities for its present and

potential managers. Executive development is eventually something that the executive

has to attain himself. But he will do this much better if he is given encouragement,

guidance and opportunity by his company.

Objectives of Management Development:The management development

programs are organized with a view to achieving specific objectives. They are:

(i)To overhaul the management machinery.

(ii) To improve the performance of the managers.

(iii) To give the specialists on overall view of the functions of an organization and

equip them to coordinate each others efforts effectively.

(iv) To identify persons with the required potential and prepare them for senior

positions.

(v) To increase morale of the members of the management group.

(vi) To increase versatility of the management group.

(vii) To keep the executives abreast with the changes and developments in their

respective fields.

(viii) To create the management succession that can take over in case of

contingencies.

(ix) To improve thought process and analytical ability.

(x) To broaden the outlook of the executive regarding h is role position and

responsibilities.

(xi) To understand the conceptual issues relating to economic, social and

technical areas.

(xii) To understand the problems of human relations and improve human

relations skills and

(xiii) To stimulate creative thinking.

Evaluation of Management Development Programs:Management development

programs should be evaluated in order to find out whether the objectives of the

programs are achieved or not. The development programs would be effective, if they


11/18



contribute to the organizational group and individual goals. Management should

delegate the responsibility of evaluation to a senior manager in the HRD department.

The evaluation specialist should be clear of the objectives and goals against which theevaluation is conducted. Evaluation should be a continuous process and specific. The

evaluation specialist should inform the trainees well in advance the content, objectives,

areas and the method of evaluation. Evaluation must be objective oriented. Evaluation

must be realistic in terms of direction, standards etc., The areas of evaluation include

different managerial skills, knowledge, technical skills and knowledge and conceptual

skills and knowledge. The areas should be specific for each MDP based on the content

provided. Further, the evaluation can also be conducted regarding the training

methodology, input/output/content, infrastructure and physical facilities, teaching aids

etc.,

Evaluation should not only immediately be after the completion of the programs but

also in specific intervals in the long-run in order to find out the impact of the MDP on

the job behavior and efficiency of the trainee. Further, their evaluation may also

measure the improvement in decision-making skill, interpersonal relation, strategy

making and implementation skills, role modeling skills etc., these areas depend upon

the content of each MDP. The evaluation results should be provided to the trainees,

their superiors, subordinates and HRD department of the organization. These results

can be used for further improvement of the future programs in the company.

Methods of Management Development:There are mainly two types of methods bywhich managers can acquire the knowledge, skills and attitudes and make themselves

competent managers. One is through formal training and the other is through on-the-

job experiences. On-the-job training is of utmost importance as the real learning takes

place only when the learner uses what he has learnt. The saying an ounce of practice is

worth tons of theory is true, whoever said it. But it should also be remembered that

class-room training or pedagogical techniques have also get their own importance in

learning new knowledge, learning new techniques and broader concepts.

Performance Appraisal

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is

measuring and improving the actual performance of the employee and also the future

potential of the employee. Its aim is to measure what an employee does. According to

Flippo, a prominent personality in the field of Human resources, performance

appraisal is the systematic, periodic and an impartial rating of an employees excellence

in the matters pertaining to his present job and his potential for a better job.


12/18



Performance appraisal is a systematic way of reviewing and assessing the performance

of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It

helps to analyze his achievements and evaluate his contribution towards the

achievements of the overall organizational goals. By focusing the attention on

performance, performance appraisal goes to the heart of personnel management and

reflects the managements interest in the progress of the employees.

Objectives Of Performance appraisal:

trol.

subordinates and management employees.

the training and development needs of the future.

rovide feedback to the employees regarding their past performance.

organization.

performed by the employees.

organization such as recruitment, selection, training and development.

Traditional Methods of Performance Appraisal

| Essay Appraisal Method: This traditional form of appraisal, also known as

Free Form method involves a description of the performance of an employee by

his superior. The description is an evaluation of the performance of any

individual based on the facts and often includes examples and evidences to

support the information. A major drawback of the method is the inseparability of

the bias of the evaluator.

| Straight Ranking Method: This is one of the oldest and simplest techniques of

performance appraisal. In this method, the appraiser ranks the employees from

the best to the poorest on the basis of their overall performance. It is quite useful

for a comparative evaluation.


13/18



| Paired Comparison: A better technique of comparison than the straight

ranking method, this method compares each employee with all others in the

group, one at a time. After all the comparisons on the basis of the overallcomparisons, the employees are given the final rankings.

| Critical Incidents Methods: In this method of Performance appraisal, the

evaluator rates the employee on the basis of critical events and how the employee

behaved during those incidents. It includes both negative and positive points.

The drawback of this method is that the supervisor has to note down the critical

incidents and the employee behaviour as and when they occur.

| Field Review: In this method, a senior member of the HR department or a

training officer discusses and interviews the supervisors to evaluate and rate theirrespective subordinates. A major drawback of this method is that it is a very time

consuming method. But this method helps to reduce the superiors personal bias.

| Checklist Method: The rater is given a checklist of the descriptions of the

behaviour of the employees on job. The checklist contains a list of statements on

the basis of which the rater describes the on the job performance of the

employees.

| Graphic Rating Scale: In this method, an employees quality and quantity of

work is assessed in a graphic scale indicating different degrees of a particulartrait. The factors taken into consideration include both the personal

characteristics and characteristics related to the on the job performance of the

employees. For example a trait like Job Knowledge may be judged on the range of

average, above average, outstanding or unsatisfactory.

| Forced Distribution: To eliminate the element of bias from the raters ratings,

the evaluator is asked to distribute the employees in some fixed categories of

ratings like on a normal distribution curve. The rater chooses the appropriate fit

for the categories on his own discretion.

Modern Methods of Performance Appraisal

Assessment Centers: An assessment centre typically involves the use of methods like

social/informal events, tests and exercises, assignments being given to a group of

employees to assess their competencies to take higher responsibilities in the future.

Generally, employees are given an assignment similar to the job they would be expected

to perform if promoted. The trained evaluators observe and evaluate employees as they

perform the assigned jobs and are evaluated on job related characteristics. The major


14/18



competencies that are judged in assessment centres are interpersonal skills, intellectual

capability, planning and organizing capabilities, motivation, career orientation etc.

assessment centres are also an effective way to determine the training and developmentneeds of the targeted employees.

Behaviorally Anchored Rating Scales: Behaviorally Anchored Rating Scales

(BARS) is a relatively new technique which combines the graphic rating scale and

critical incidents method. It consists of predetermined critical areas of job performance

or sets of behavioral statements describing important job performance qualities as good

or bad (for eg. the qualities like inter personal relationships, adaptability and reliability,

job knowledge etc). These statements are developed from critical incidents. In this

method, an employees actual job behaviour is judged against the desired behaviour by

recording and comparing the behaviour with BARS. Developing and practicing BARSrequires expert knowledge.

Human Resource Accounting Method: Human resources are valuable assets for

every organization. Human resource accounting method tries to find the relative worth

of these assets in the terms of money. In this method the Performance appraisal of the

employees is judged in terms of cost and contribution of the employees. The cost of

employees include all the expenses incurred on them like their compensation,

recruitment and selection costs, induction and training costs etc whereas their

contribution includes the total value added (in monetary terms). The difference between

the cost and the contribution will be the performance of the employees. Ideally, thecontribution of the employees should be greater than the cost incurred on them.

360-Degree-Performance-Appraisal Method: 360 degree feedback, also known

as multi-rater feedback, is the most comprehensive appraisal where the feedback about

the employees performance comes from all the sources that come in contact with the

employee on his job. 360 degree respondents for an employee can be his/her peers,

managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors

anyone who comes into contact with the employee and can provide valuable insights and

information or feedback regarding the on-the-job performance of the employee.

360 degree appraisal has four integral components:

1. Self appraisal

2. Superiors appraisal

3. Subordinates appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and

weaknesses, his achievements, and judge his own performance. Superiors appraisal

forms the traditional part of the 360 degree performance appraisal where the


15/18



employees responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like

communication and motivating abilities, superiors ability to delegate the work,leadership qualities etc. Also known as internal customers, the correct feedback given by

peers can help to find employees abilities to work in a team, co-operation and

sensitivity towards others.

360 degree performance appraisal is also a powerful developmental tool because when

conducted at regular intervals it helps to keep a track of the changes others perceptions

about the employees. A 360 degree appraisal is generally found more suitable for the

managers as it helps to assess their leadership and managing styles. This technique is

being effectively used across the globe for performance appraisals. Some of the

organizations following it are Wipro, Infosys, and Reliance Industries etc.

PROCESS OF PERFORMANCE APPRAISAL

Establishing Performance Standards: The first step in the process of performance

appraisal is the setting up of the standards which will be used to as the base to compare

the actual performance of the employees. This step requires setting the criteria to judge

the performance of the employees as successful or unsuccessful and the degrees of their

contribution to the organizational goals and objectives. The standards set should be

clear, easily understandable and in measurable terms. In case the performance of the

employee cannot be measured, great care should be taken to describe the standards.

Communicating the Standards: Once set, it is the responsibility of the management

to communicate the standards to all the employees of the organization. The employees

should be informed and the standards should be clearly explained. This will help them

to understand their roles and to know what exactly is expected from them. The

standards should also be communicated to the appraisers or the evaluators and if

required, the standards can also be modified at this stage itself according to the relevant

feedback from the employees or the evaluators.

Measuring the Actual Performance: The most difficult part of the Performance

appraisal process is measuring the actual performance of the employees that is the work

done by the employees during the specified period of time. It is a continuous process

which involves monitoring the performance throughout the year. This stage requires the

careful selection of the appropriate techniques of measurement, taking care that

personal bias does not affect the outcome of the process and providing assistance rather

than interfering in an employees work.


16/18



Comparing the Actual with the Desired Performance: The actual performance

is compared with the desired or the standard performance. The comparison tells the

deviations in the performance of the employees from the standards set. The result canshow the actual performance being more than the desired performance or, the actual

performance being less than the desired performance depicting a negative deviation in

the organizational performance. It includes recalling, evaluating and analysis of data

related to the employees performance.

Discussing Results:The result of the appraisal is communicated and discussed with

the employees on one-to-one basis. The focus of this discussion is on communication

and listening. The results, the problems and the possible solutions are discussed with

the aim of problem solving and reaching consensus. The feedback should be given with a

positive attitude as this can have an effect on the employees future performance. Thepurpose of the meeting should be to solve the problems faced and motivate the

employees to perform better.

Decision Making:The last step of the process is to take decisions which can be taken

either to improve the performance of the employees, take the required corrective

actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

Purpose Of Performance Appraisal: Performance Appraisal is being practiced in

90% of the organisations worldwide. Self-appraisal and potential appraisal also form a

part of the performance appraisal processes. Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior

subordinates and management employees.

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions 80%

Training and development needs 71%


17/18



Identifying the gaps in desired and actual performance and its cause 76%

Deciding future goals and course of action 42%

Promotions, demotions and transfers 49% Other purposes 6% (including job analysis and providing superior support,

assistance and counseling)

Performance Appraisals as Career Development: Performance appraisal is a

part of career development. The latest mantra being followed by organizations across

the world being get paid according to what you contribute the focus of the

organizations is turning to performance management and specifically to individual

performance. Performance appraisal helps to rate the performance of the employees and

evaluate their contribution towards the organizational goals. Performance appraisal as

Career Development leads to the recognition of the work done by the employees, many atimes by the means of rewards and appreciation etc. It plays the role of the link between

the organization and the employees personal career goals.

| Potential appraisal, a part of Performance appraisal, helps to identify the hidden

talents and potential of the individuals. Identifying these potential talents can

help in preparing the individuals for higher responsibilities and positions in the

future. The performance appraisal process in itself is developmental in nature.

| Performance appraisal is also closely linked to other HR processes like helps to

identify the training and development needs, promotions, demotions, changes inthe compensation etc. A feedback communicated in a positive manner goes a long

way to motivate the employees and helps to identify individual career

developmental plans. Based on the evaluation, employees can develop their

career goals, achieve new levels of competencies and chart their career

progression. Performance appraisal encourages employees to reinforce their

strengths and overcome their weaknesses.

Performance Appraisal Feedback: Performance appraisal process is incomplete

without the feedback given to the employee about his appraisal and his performance.

But the way of giving as well as receiving the feedback differs from person to person and

their way of handling and their outlook towards the issue. Therefore, On the part of the

person receiving the feedback, the following points are important to be taken care of:

r The employee should have a positive attitude towards the feedback process

r He should listen to the suggestions of the appraiser calmly and try to incorporate

them in his plans.

r He should not hesitate to ask for the help of his superiors.

r Should have a co-operative attitude during the feedback meeting.


18/18



r Should take the feedback objectively.

r Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the following

points are to be taken care of:

r The appraiser should make the receiver feel comfortable during the feedback

meeting.

r The appraiser should make it a two way conversation i.e. let the employee

speak.

r Listen to the employee and note his points, suggestions, problems etc.

r The appraiser should not adopt a confrontational approach towards the meeting.

The goal is not to criticize the employee.r Provide a constructive feedback to the employee i.e. in a way which will motivate

him to perform better.

r Have a positive attitude towards the process

r Be fair and objective

r Prepare yourself for what to say and how to say.

r Make the appraisal feedback meeting useful and productive for the organization

and the employee.

trainingdevelopment performanceappraisalbyrajaraopagidipalli 130429022027 phpapp01

Documents