CHAPTER 5 PERFORMANCE APPRAISAL 1 DEFINITION Performance appraisal

CHAPTER 5 PERFORMANCE APPRAISAL 1

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. 2

USES OF PERFORMANCE APPRAISAL • Administrative process • Developmental process 3

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

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

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

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

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 8

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 9

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

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

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 12

CHAPTER 6 TRAINING AND DEVELOPMENT 13

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 14

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 15

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 16

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

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 18

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 19

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 20

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

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

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