1 CHAPTER 5 PERFORMANCE APPRAISAL

2 DEFINITION Performance appraisal involves: –Identification Determining what areas of work the manager should be examining when measuring performance –Measurement Making managerial judgements of how ‘good’ or ‘bad’ employee performance –Management The overriding goal of any appraisal system.

3 USES OF PERFORMANCE APPRAISAL Administrative process Developmental process

4 COMPONENTS OF EMPLOYEE’S PERFORMANCE Knowledge and skills Motivation Work environment

5 SOURCES OF INFORMATION IN APPRAISAL Employee’s manager Employee’s co-workers Employee’s subordinates Customers / Clients

6 EMPLOYEE PERFORMANCE MANAGEMENT SYSTEM Objective setting Implementation of work and monitoring Appraisal of the individual workers Follow-up action

7 PERFORMANCE APPRAISAL PROCESS Interview –Opening –Begin discussion Counselling –Non-directive counselling –Advice giving –Information giving –Teaching and coaching

8 BENEFITS OF PERFORMANCE APPRAISAL Employer perspective –Individual differences in performance can make a difference to company performance –May be needed for legal defense –Provides a rational basis for constructing bonus –Can help to implement strategic goals –Providing individual feedback –Can include teamwork and teams

9 BENEFITS OF PERFORMANCE APPRAISAL Employee perspective –Performance feedback is needed and desired –Improvement in performance requires assessment –Differences in performance levels across workers be measured and have an effect on outcomes –Can motivate workers to improve performance

10 PROBLEMS IN PERFORMANCE APPRAISAL Rater errors and bias Influence of liking Organizational politics Individual or group focus Legal issues

11 Recent effect Halo effect Central tendency Prejudice and stereotype Fatigue PROBLEMS IN PERFORMANCE APPRAISAL

12 EFFECTIVE PERFORMANCE APPRAISAL Conduct appraisal in private Allow enough time for employee to discuss issue Refer to performance not individual Provide specific not general behaviour Give feedback in a good manner Avoid loaded terms which produce emotional reactions

13 CHAPTER 6 TRAINING AND DEVELOPMENT

14 DEFINITION OF TRAINING Organizational activity which aims to improve an employee’s current performance The attempt by an organization to change employees through the learning process Training programmes are designed to change attitudes, develop skills or impart knowledge

15 WHAT WILL HAPPEN IF NO FORMAL TRAINING? Learning on the job will take longer Costs of wasted materials, sales and customers lost Management time cost taken Lowered morale, demotivated Accident-related costs High turnover

16 BENEFITS OF TRAINING Increase worker’s productivity Increase worker’s job satisfaction Keeps worker’s skills and knowledge up- to-date Helps to motivate workers

17 SYSTEMATIC TRAINING Identify training needs Set training objectives Design training programme Implement training programme Evaluate training programme

18 TRAINING NEEDS AND TRAINING PLANS Individual workers face difficulties in performing job satisfactorily New workers are recruited New technology and procedures are introduced Individuals are transferred or promoted Major change in the organization

19 DESIGNING TRAINING PLANS Identify a performance problem Decide whether the problem is serious enough Identify the cause of the problem Generate alternative solutions to the problem Choose the best solution and implement

20 SET TRAINING OBJECTIVES Purpose of training is to improve employee’s abilities and performance on the job Consists of three parts: –Terminal behaviour –Standards to be achieved –Conditions of performance

21 DESIGN TRAINING PROGRAMME Facilitators Venue Duration and scheduling of programme Number of participants Training methods Logistics Budget

22 EVALUATING TRAINING AND DEVELOPMENT Trainees’ responses Trainee learning Application of new skill and knowledge Assessing the results

23 LEARNING PRINCIPLES The learner must want to learn Active or passive learning Feedback or knowledge of results Learning is faster in teams