SECTION B

1. What do you understand by performance management

system? What do you understand by Performance Appraisal?
What is the difference between the two?
Ans. Performance management includes activities which
ensure that goals are consistently being met in an effective and
efficient manner. Performance management can focus on the
performance of an organization, a department, employee, or
even the processes to build a product or service, as well as
many other areas.

A performance appraisal also referred to as a performance

review, performance evaluation, (career) development
discussion, or employee appraisal is a method by which the job
performance of an employee is documented and evaluated.
Performance appraisals are a part of career development and
consist of regular reviews of employee performance
within organizations.

Performance Management VS Performance Appraisal:

Performance management and Performance appraisal are two

terms that are often used in the field of the evaluation of
employee efficiency. These two procedures differ in terms of
their concept and connotations. Performance appraisal consists
in the setting of job standards and evaluation of the past
performance. It is understood that the evaluation is carried out
based on the job standards that have earlier been set. On the
other hand performance management concentrates on
managing the performance in state time so that the
performance can reach the expected level.
This is one of the main differences between performance
management and performance appraisal.
In short it can be said that both are two methods of evaluation
of the performance of employee in a firm or in an organization.
Between the two it can be said that performance management
is the older and traditional approach. On the other hand
performance appraisal is a sort modern method or approach of
evaluating the performance of an employee of a firm or an
organization. It is interesting to note that both these types are
employed by the company or a firm in a bid to evaluate the
performance skills of its employees especially in the present
scenario characterized by competitive nature of economy and
rapid changes in the environment. Performance appraisal is a
limited function in the sense that it concentrates only on the
evaluation of the past performances and it is usually done once
or at the most two times in a year. In other words it can be said
that performance appraisal is all about distinct staff activity. On
the other hand performance management is a continuous
function in the sense that it is done in anon-going fashion to
ensure that the employees discharge their capabilities in such a
way that targets are achieved in real-time basis. Hence it is
often said that performance management is continuous in
purpose whereas performance appraisal is occasional in
purpose. Both the methods differ in terms of their
methodology too. Performance appraisal is more formal and
structural in nature. On the other hand performance
management is more casual and flexible in nature. This is also
an interesting difference between the two methods of
evaluation. Performance management is more customized for
employees work. On the other hand performance Appraisal is
more standardized based on the designation of the employee
of the firm.
 2. What are the steps in the training process? Explain
Ans. A training is not a one sort affair; rather it is a step-by-step
process that will completed only after successful completion of
given sequential activities.
1. Identifying Training Needs
Training need is a difference between standard performance and
actual performance. Hence, it tries to bridge the gap between
standard performance and actual performance. The gap clearly
underlines the need for training of employees. Hence, under this
phase, the gap is identified in order to assess the training needs.

2. Establish Specific Objectives

After the identification of training needs, the most crucial task is to
determine the objectives of training. Hence, the primary purpose of
training should focus to bridge the gap between standard
performance and actual performance. This can be done through
setting training objectives. Thus, basic objective of training is to bring
proper match between man and the job.

3. Select Appropriate Methods

Training methods are desired means of attaining training objectives.
After the determination of training needs and specification of
objectives, an appropriate training method is to be identified and
selected to achieve the stated objectives. There are number of
training methods available but their suitability is judged as per the
need of organizational training needs.

4. Implement Programs
After the selection of an appropriate method, the actual functioning
takes place. Under this step, the prepared plans and programs are
implemented to get the desired output.
Under it, employees are trained to develop for better performance
of organizational activities.

5. Evaluate Program
It consists of an evaluation of various aspects of training in order to
know whether the training program was effective. In other words, it
refers to the training utility in terms of effect of training
on employees' performance.

6. Feedback
Finally, a feedback mechanism is created in order to identify the
weak areas in the training program and improve the same in future.
For this purpose, information relating to class room, food, lodging
etc. are obtained from participants. The obtained information, then,
tabulated, evaluated, and analysed in order to mark weak areas of
training programs and for future improvements.

3. What are the steps in the performance Management system?

Ans. There are many ways to approach the task of creating a

performance management process, but most are organized
something like this:

Individual goals and corporate strategy are defined and

communicated company-wide.
Progress on goals is monitored, and management provides
coaching on performance.
Individual performance is appraised with feedback and formal
documentation.
Compensation is given based upon performance. If
performance meets or exceeds the desired standard, a reward
is given. If performance does not meet the desired standards, a
performance development plan is created to address the gap,
and a new performance date is scheduled.
 Defining Goals

The first step in performance management is setting the stage

correctlydefining individual goals and aligning them with the
corporate strategy.

The process of setting goals should be a collaborative process

between a manager and his or her employees. Once the company-
wide strategy is established, individual goals should be created that
support the big picture. Major Job functions and responsibilities,
both shared and individual, should be addressed within
a SMART goal framework.

Specific: Well-defined to inform employees exactly what is expected,

when, and how much. Measurable: Provide milestones to track
progress and motivate employees toward achievement. Achievable:
Success needs to be attainable with effort by an average employee,
with a bit of a stretch. Relevant: The goals should focus on the
greatest impact to the overall corporate strategy. Timely: A goal
should be grounded within a time frame to create a sense of urgency
for completion.

Monitoring Progress on Goals

Managers need to be aware of their employees progress on goals in

order to step in with coaching assistance or resources when it
appears that goal targets may be missed or, even better, to
acknowledge successes with appropriate monetary or non-monetary
rewards. In addition to the need for managers to review the
employees productivity, its also important for the employees to
track their own progress on goals. Having this information handy is
helpful during the all-important appraisal process to inform
management of the steps involved in reaching a goal or to highlight
successes from earlier in the year.
The secret to high performance: review individual and team goals at
least once a week or month to clarify your focus and use this
information as a basis for performance discussions. You can use the
opportunity to review the progress and adjust timelines, request
additional resources if necessary, or even broaden the goal once
more information is gathered from other sources.

Appraisal Process

In order to get the most out of their employees, the appraisal

process should include listening, observing, giving constructive
feedback, and providing recognition. Most performance
management solutions include writing assistants and coaching tools
to help managers find just the right words to give constructive
analysis of the employees performance. The most important part of
the appraisal is to provide feedback about what the employee has
successfully learned and still needs to learn and create a plan to
provide the opportunity for the employee to develop those
necessary skills. This can be an important factor not only in the
employee's growth, but also in the health of the entire organization
since employees have a greater sense of loyalty to companies that
develop talent from within and thus become more engaged in their
work. These development plans also allows the company to create a
pool of talent for strategic succession planning.
Pay-for-Performance Compensation

A successful pay-for-performance compensation strategy can be the

key to retaining your top talent and driving organizational
performance that exceeds all expectations. At its core, pay-for-
performance serves to align your people with the goals and
objectives of the company and motivate and reward your top
performers, while continuing to develop the under performers to
become greater assets to your organization.

It is important for an employee to know that if his or her work

performance meets or exceeds expectations that he or she will be
rewarded for the hard work appropriately through pay raises,
bonuses or other rewards (flexible schedule or time-off, gifts,
recognition through awards, etc.) Pay for performance compensation
structures not only account for the individual, but also for the
working environment and performance of the team as well,
encouraging the employees to band together to reach the common
goal.

Conclusion

A first-rate performance management plan is the key to creating an

engaged and aligned workforcethe hallmark of all successful
businesses. Without one, your organization could lose more than just
time and money you could lose knowledge, employees and, in the
end, your competitive edge.