CHAPTER 5

PERFORMANCE APPRAISAL

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 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.

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 USES OF
PERFORMANCE APPRAISAL
• Administrative process

• Developmental process

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 COMPONENTS OF
EMPLOYEE’S PERFORMANCE
• Knowledge and skills

• Motivation

• Work environment

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 SOURCES OF INFORMATION
IN APPRAISAL
• Employee’s manager

• Employee’s co-workers

• Employee’s subordinates

• Customers / Clients
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 EMPLOYEE PERFORMANCE
MANAGEMENT SYSTEM
• Objective setting

• Implementation of work and monitoring

• Appraisal of the individual workers

• Follow-up action

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 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
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 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
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 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
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 CHAPTER 6
TRAINING AND DEVELOPMENT

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 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
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 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

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 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
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 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

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 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

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

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 EVALUATING TRAINING AND
DEVELOPMENT
• Trainees’ responses

• Trainee learning

• Application of new skill and knowledge

• Assessing the results

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 LEARNING PRINCIPLES
• The learner must want to learn

• Active or passive learning

• Feedback or knowledge of results

• Learning is faster in teams

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