The document discusses performance appraisal and training needs. It explains that performance appraisal involves setting standards, measuring performance against those standards, providing feedback, and using the results to determine training needs. If performance meets standards, employees are rewarded, and if not, a performance development plan is created which may include additional training. The objectives of performance appraisal are also outlined.

1. Performance Appraisal and
hapter III Training

2. Objectives of the chapter
 Performance Appraisal and Training Needs
 Meaning of Performance Appraisal
 Purpose of Performance Appraisal
 Significance of Performance Appraisal
 Objectives of Performance Appraisal
 Performance Appraisal Process
 Methods of Performance Appraisal
 Post Appraisal Interviews and Feedback

3. Performance Appraisal
 A successful performance appraisal process
involves explaining the job, communicating
expectations, observing and documenting
behavior and providing frequent informal
feedback. It means getting the job done
through people.

4. Performance Appraisal
contd…
 The continual process of evaluating an
employee’s performance helps the supervisor
and the employee to –
 Understand individual strengths and
weaknesses of performance.
 Mutually understand expectations for
performance.
 Form a basis for personnel action.
 Determine training and development needs of
employees.

5. Performance Appraisal and
Training Needs
• If a supervisor uses good principles of
performance appraisal system, then training
and development can be a straight forward
activity which almost always contributes to the
organization’s bottom lines which are given
below:
• Review organizational goals to associate
preferred organizational results in terms of
units of performance, that is, quantity, quality,
cost or timeliness.

6. Performance Appraisal and
Training Needs contd…
 Specify desired results for the domain, give
guidance and focus on results needed by
other domains (for example, products or
services needed by internal or external
customers).
 The domain’s desired results directly
contribute to the organization’s result. A good
training plan must be geared to help the
employee to produce specific results, which in
turn, directly contribute to results needed by
the organization.

7. Performance Appraisal and
Training Needs contd…
 Weight, or prioritizing the range of results needed
from the employee helps the supervisor and the
employee to pick what training is needed and
when.
 Identify measures to evaluate if and how well the
domain’s desired results were achieved. This
refinement of expected results from the employee
helps the supervisor and the employee to ensure
that training is highly focused on results for the
employee and the organization.

8. Performance Appraisal and
Training Needs contd…
 Identify standards for evaluating how well the
desired results were achieved.
 Document a performance plan – including
desired results, measures and standards. This is
similar to developing the training plan, with
preferred training goals and measures.
 Conduct ongoing observations and
measurements to track performance of
employees. The training plan is implemented and
includes ongoing evaluation before, during and
after carrying out training methods.

9. Performance Appraisal and
Training Needs contd…
 Exchange of ongoing feedback about
performance of employees gives the feedback
between learners and trainer.
 Conduct a performance appraisal (sometimes
called performance review). Effective training
includes evaluation to judge the quality of the
training itself and identify what results were
achieved by learners.

10. Performance Appraisal and
Training Needs contd…
 Ifperformance meets the desired performance
standard, then reward performance (the nature
of the reward depends on the domain).
Hopefully, the learning experience includes
time to acknowledge such success and the
trainers’ and learners’ roles in such success.

11. Performance Appraisal and
Training Needs contd…
 Ifperformance does not meet performance
standards, develop or update a performance
development plan. A good training plan will
include measures for noting changes in the
employee’s performance. If improvement is
needed, a performance plan should be
updated or started, and may include causes
for more training.

12. Meaning of Performance
Appraisal
 Performance here refers to the degree of
accomplishment of the tasks that make up an
individual’s job. It indicates how well an
individual is fulfilling the demands of job.
 Some of the important features of performance
appraisal may be captured thus –
 Performance appraisal is the systematic
description of an employee’s job, relevant
strengths and weaknesses.
 The basic purpose is to find out how well the
employee is performing the job and establish a
plan of improvement.

13. Meaning of Performance
Appraisal contd….
 Appraisal process is always systematic in the
sense that it tries to evaluate performance in the
same manner using the same approach.
 Appraisals are arranged periodically according to a
definite plan.
 Performance appraisal is not job evaluation.
Performance appraisal refers to how well someone
is doing the assigned job. Job evaluation
determines how much a job is worth to the
organization and, therefore, what range of pay
should be assigned to the job.
 Performance appraisal is a continuous process in
every large-scale organization.

14. Purpose of Performance Appraisal
 Purposes of performance appraisal are
 Informational Purposes
 To let employees know how their performance
compares with job standards.
 To provide a written record of employee
performance.
 To assist in identifying special talents and
abilities.
 To identify employees whose performance
must improve or face disciplinary action, and
make this a matter of record.

15. Purpose of Performance Appraisal
contd…
 Motivational Purposes
 To establish closer supervisor-employee
relationships and communicate to the
employee the job requirements and standards
of performance.
 To provide recognition for a job well done.
 To establish plans to solve performance
problems.
 To encourage initiative and develop a sense of
responsibility.

16. Purpose of Performance Appraisal
contd…
 Developmental Purposes
 To identify individual employee training needs.
 To help the employee strengthen current
performance and prepare for promotional
opportunities.
 To identify situations in which reassignment
can be used to develop potential.

17. Significance of Performance
Appraisal
 McGregor says, “Formal performance appraisal
plans are designed to meet three needs, one is of
the organization and the other two are of the
individual,” namely –
 They provide systematic judgments to back up
salary increases, transfers, demotions or
terminations.
 They are the means of telling a subordinate, how
he is doing, and suggesting needed changes in
his behavior, attitudes, skills, or job-knowledge.
They let him know ‘where he stands’ with the
boss.
 They are used as a base for coaching and
counseling the individual by the superior.

18. Objectives of Performance
Appraisal
Objectives of performance appraisal system of an
organization are given below:
 To enable each employee to understand his
role better and become more effective on-the-
job.
 To understand his own strengths and
weaknesses with respect to his role in the
organization.
 To identify the developmental needs of each
employee.

19. Objectives of Performance
Appraisal contd…
 To improve relationship between the superior
and the subordinate through the realization that
each is dependent on the other for good
performance and success.
 To serve as mechanisms for improving
communication between the superior and his
subordinates.
 To provide an opportunity to the employee for
introspection, self-evaluation and goal setting so
that he remains on the path of development.

20. Objectives of Performance
Appraisal contd…
 To enable every employee to adopt the norms
and values of the organization so that an
organizational identity and commitment is
developed throughout the organization.
 To prepare employees for higher jobs by
continuously reinforcing development of
behavior and qualities for these higher level
positions.

21. Objectives of Performance
Appraisal contd…
 To be an instrument for creating a positive and
healthy climate in the organization that moves
people to give their best and enjoy doing so.
 To help in a variety of personnel decisions by
generating relevant data on each employee
periodically.

22. Performance Appraisal Process
 The following are the steps in the performance
appraisal process.
i. Establishing Standards.
ii. Communicating Standards to Employees.
iii.Measuring Actual with Standards.
iv. Comparing Actual Performance.
v. Discussing Reports with Employees.
vi. Taking Corrective Action.

23. Methods of Performance Appraisal
 Traditional approach is also known as ‘traits
approach’.
 It is based on the evaluation of traits in a
person.
 This system considers both personal and work
related characteristics.

24. Confidential Report
 Itis written for a unit of one year and relates to
the performance, ability and character of the
employee during that year.
 A very casual attitude is found among raters
while filling confidential reports of the
employees working under them.
 The report is not data based but subjective.
 No feedback is provided to the employee
being appraised and therefore, its credibility is
very low.
 The employee who is apprised never knows
his weaknesses and the opportunities
available for overcoming them.

25. Graphic Scale Method
 It is a simplest and most popular method for
appraising performance.
 It consists of lists of traits and a range of
performance values for each trait.
 The supervisor values each subordinate to
describe his performance for each trait.
 The assigned values for each trait are then
totaled.
 The selection of factors to be measured on the
graphic rating scale is an important point
under this system.

26. Graphic Scale Method
contd…
 These are two types namely,
(i) Characteristics such as initiative and
dependability and
(ii) Contribution such as quantity and quality of
work. Since certain areas of job performance
cannot be objectively measured, it is likely
that graphic scale will continue to use a
mixture of both characteristics and
contribution.

27. Straight Ranking Method
 In this method every employee is judged as a
whole without distinguishing the rates from his
performance.
 A list is then prepared for ranking the workers
in order to their performance on the job so that
an excellent employee is at the top and the
poor at the bottom.

28. Paired Comparison Method
 In this method every person is compared trait-
wise, with other persons one at a time, the
number of times one person is compared with
others is tallied on a piece of paper. These
numbers help in yielding rank orders of
employees.

29. Grading System
 In this system the employees are given grades
according to the judgment of the rater. The
rater will consider certain features like
analytical ability, cooperativeness,
dependability, job-knowledge, etc.

30. Forced Distribution Method
 This system is based on presumption that all
employees can be divided into five categories,
viz. outstanding, above average, average,
below average, and poor.
 The main idea in this system is to spread
ratings in a number of grades.
 This method eliminates the room for subjective
judgment on the part of the supervisors.

31. Checklist Method
 Itis a list of statements that describes the
characteristics and performance of employees
on the job.
 The rater checks to indicate whether the
behavior of an employee is positive or
negative to each statement.
 The performance of the employee is rated on
the basis of numbers of positive checks.

32. Checklist Method
contd…
 There are three types of checklists that can be
used. They are – Simple, Weighted and
Forced Choice methods.
 Simple Checklist
In this method the supervisors are provided with
printed forms containing descriptive questions
about the performance of employees. The
supervisor has the answer in Yes or No. After
ticking these questions the forms are sent to
Personnel Department where final rating is
done.

33. Checklist Method
contd…
 Weighted Checklist
In this method, weights are assigned to different
statements to indicate their relative
importance. It involves a very lengthy and time
consuming procedure. It is used particularly
with the objective of avoiding scope for
personal prejudices

34. Forced Choice Method
 Inthis method five statements are given for
each traits, two most descriptive statements,
two least descriptive statements, and one
neutral statement.
 The rater is required to tick one statement
each from the most descriptive and least
descriptive ones. The aim of this method is to
minimize the rater’s personal bias.

35. Critical Incident Method
 This method attempts to measure worker’s
performance in terms of certain events or
incidents that occur in the course of work.
 The assumptions of this method are that the
performance of the employee on the
happening of critical incidents determines his
failure or success.

36. Critical Incident Method
contd…
 The supervisor keeps a record of critical
incidents at different times and then rates him
on this basis.
 This method can increase the chances that the
subordinates will improve because they learn
precisely what is expected from them.

37. Free Essay Method
 In this method the supervisor writes a report
about the employee which is based on his
assessment.
 The supervisor continuously watches the
subordinates and writes his assessment in the
report.
 It is non-quantitative technique of appraisal.

38. Free Essay Method
 Itprovides a good deal of specific information
about the employee and can reveal even more
about the supervisor.
 This method may suffer from personal bias
because of likings and disliking of the
supervisor.

39. Group Appraisal
 Inthis appraisal method, employees are rated
by an appraisal group, consists of supervisor,
and three or four other persons who have
some knowledge of their performance. This
method is devoid of personal bias but only
drawback is very time consuming.

40. Field Review Method
 In this method, an expert from the personnel
department interviews line supervisors to
evaluate their respective subordinates.
 The expert questions the supervisor and
obtains all the important information on each
employee and takes notes in his notebook.
 The employees are generally classified into
three categories as outstanding, satisfactory
and unsatisfactory.

41. Nomination
 In this method, appraisers are asked to identify
the exceptionally good and exceptionally poor
performances who are then singled out for
special treatment.

42. Work Sample Tests
 In this method, employees are given, from
time to time, work related testes which are
then evaluated

43. Modern Methods
 ASSESSMENT CENTER
 It is a central location where the managers
may come together to participate in job related
exercises evaluated by trained observers.
 The principle idea is to evaluate managers
over a period of time, by observing and later
evaluating their behavior across a series of
select exercises or work samples.

44. Assessment Center
contd…
 Managers are asked to participate in in-basket
exercises, role playing and similar activities,
which require the same attributes for
successful performance as on the actual job.
 After recording the observations, the raters
meet to discuss these observations and
decision regarding the performance of each
manager is based upon the discussion of
observations.
 It is time consuming and an expensive
method.

45. Human Resource Accounting
 This method attaches money values to the
value of a firm’s internal human resources and
its external customer goodwill.
 Performance is judged in terms of costs and
contributions of employees.
 Costs of human resources consist of
expenditure on human resource planning,
recruitment, selection, indication, training, etc.

46. Human Resource Accounting
contd…
 Contribution of human resource is the money
value of labor productivity or value added by
human resources.
 Difference between cost and contribution will
reflect the performance of employees.

47. Behaviorally Anchored Rating
Scale
 It combines the benefits of critical incidents
and graphic rating scale by anchoring a scale
with specific behavioral examples of good or
poor performance.
 It is time consuming and expensive method.
The behaviors used are more activity oriented
than result oriented.
 This technique is not biased by the experience
and evaluation of the rater.

48. Management By Objectives (MBO)
 It refers to comprehensive, organizational
measurable goals for each employee and then
periodically discusses his progress towards
these goals.
 It leads to greater satisfaction, greater
agreement, greater comfort and less tension
and hostility between the workers.

49. Management By Objectives (MBO)
contd…
 It can be applied with great success if the
performance appraisal program consists of the
following elements.
 Detailed job descriptions.
 Superior should have trust in subordinates to
establish goals.
 Emphasis should be on problem solving.

50. 360-Degree Performance
Appraisals
 It is a systematic collection of performance
data on an individual or group, derived from a
number of stakeholders, team members,
customers, peers, and self.
 It provides a broader perspective about an
employee’s performance by facilitating self-
development of employees.
 This appraisal is effective in identifying and
measuring interpersonal skills, customer-
satisfaction and team-building skills.

51. Post Appraisal Interviews and
Feedback
 The post appraisal interview is an essential
part of the performance appraisal system.
 The employee gets useful feedback
information about how effectively and
efficiently he is able to discharge the assigned
duties.
 It also gives the opportunity to an employee to
explain his views about the rating standards,
rating methods, internal and external causes
for low level of performance.

52. Post Appraisal Interviews and
Feedback contd…
 It, serves to meet the following objectives.
 To let employees know where they stand.
 To help employees do a better job by clarifying
what is expected of them.
 To plan opportunities for development and
growth.
 To strengthen the superior-subordinate
working relationship by developing a mutual
agreement of goals.
 To provide an opportunity for employees to
express themselves on performance related
issues.

53. Summary of the chapter
 Performance Appraisal and Training Needs
 Meaning of Performance Appraisal
 Purpose of Performance Appraisal
 Significance of Performance Appraisal
 Objectives of Performance Appraisal
 Performance Appraisal Process
 Methods of Performance Appraisal
 Post Appraisal Interviews and Feedback