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 Assessment
a) Organization support
b) Organizational Analysis
c) Task and KSA analysis
d) Person Analysis
Development of
criteria
Instructional Objectives
Training Validity
Transfer Validity
Selection and design
of instructional
program
Intraorganizational
validity
Training
Interorganizational
validity
Source: Aswathappa, 2008, p. 216
Use of evaluation
models
Training Process
Phase 1
Training Need
Phase 4
Training
Evaluation
Phase 2
Training Design
Phase 3
Training
Implementation
Training Methods
Training
Method
Orienting
new
employees,
introducing
innovation
Special skills
training
Safety
education
Creative
technical and
professional
education
Sales,
administrativ
e and
managerial
education
Orientation
training
Yes
-
-
-
-
Job Instruction
training
Yes
Yes
-
-
-
Apprentice
training
Yes
Yes
-
-
-
Internship
-
Yes
-
Yes
Yes
Job rotation
Yes
-
-
-
Yes
Coaching
-
Yes
Yes
Yes
Yes
On the job
Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 221
Training Methods
Training
Method
Orienting new Special skills
employees,
training
introducing
innovation
Safety
education
Creative
technical and
professional
education
Sales,
administrative
and
managerial
education
Vestibule
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
-
Off the job
Source: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 218
Training Process
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
learning
2 Knowledge of level of trainee
to develop contents/strategy of
training program
3 Categorizing and grouping
trainees according to their
capacity to learn
4 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 objectives
2. Meaningful presentation
3. Social learning theory focusing on
learning based on modeling and visual
aids
4. Appreciate differences in learning
style; some learn quickly in group
discussion while some prefer to work
alone on problems
5. Practice and Practice (Exercises/work
on solutions)
6. Feedback on progress
7. Time duration (continuous or
distributed)
3
Training
Implementation
Material and
Equipment
Posters and Charts
Whiteboard/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
Source: Blanchard, P. & Thacker, J: Effective Training, Systems, Strategies, and Practices
(3rd Edition, 2007)
Definition of HRD
“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)
Relationship Between HRM and HRD
• Human Resource Management (HRM) covers
many functions
• Human resource development (HRD) is just one
of the functions within HRM
HRD Functions
• Training and development (T&D)
• Organizational development
• Career development
Training and Development (T&D)
• 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
Organizational Development
• The process of improving an organization’s
effectiveness and member’s well-being through the
application of behavioral science concepts
Career Development
• Ongoing process by which individuals progress
through series of changes until they achieve their
personal level of maximum achievement
Werner and DeSimone (2006)
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
Describe work and
professional requirement
of a job
Performance
Standards
Translate job requirements
into levels of acceptable
or unacceptable performance
Performance
Appraisal
Describe the job relevant
strengths and
weaknesses of
each individual
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
Developmental
Set selection criteria
Identification of individual training
needs
Promotion
Performance feedback
Retention 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
Improving
performance
Making correct
decisions
Consistency
between strategy
and behavior
Competitive
advantage
Minimizing
dissatisfaction
and turnover
Ensuring legal
compliance
Adopted from: Aswathappa, Human Resource Management, Text and Cases, 2008, p. 240