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TRAINING &

DEVELOPMENT

PERFORMANCE APPRAISAL &


TRAINING
Dr. V. Veera Balaji Kumar
INTRODUCTION
• Performance appraisal is an
evaluation of the performance of an
employee against the job standards
in terms of quantitative, qualitative
and behavioural aspects at the
workplace.
• A successful PA process involves
explaining the job, communicating
expectations, observing and
documenting behaviour and
providing frequent informal
feedback.
Why PA ?

• It helps the supervisor and


the employee to –
– Understand individual
strengths & weaknesses of
performance
– Mutually understand
expectations for performance
– Form a basis for personnel
action
– Determine training &
development needs of
PERFORMANCE APPRAISAL AND
TRAINING NEEDS
• Review org. goals to associate
preferred org. results in terms of units
of performance i.e. quality, quantity,
cost or timeliness.
• Specify desired results for the
domain, gives guidance & focus on
results needed by other domains 
Learning goals
• Prioritize the range of results needed
from the employee helps the
supervisor understand what training
needs to be given.
PERFORMANCE APPRAISAL AND
TRAINING NEEDS
• Identify measures to evaluate if an
how well the domain’s desired results
were achieved.
• Identify standards for evaluating how
well the desired results were
achieved.
• Document a performance plan –
desired results, measures and
standards.
• Conduct ongoing measurement to
track the performance of the
employee.
PERFORMANCE APPRAISAL AND
TRAINING NEEDS

• To provide an opportunity for the


employee for introspection, Self-
evaluation and goal-setting so that he
remains on the path of development.
• To prepare the employees for higher
jobs by reinforcing development of
behaviour & qualities for these higher
level positions.
• To generate relevant data on each
employee periodically.
• To enable employee to adopt the norms
and values of the organization and
develop commitment.
PERFORMANCE APPRAISAL
PROCESS
• Done on certain criterions or
standards fixed in advance.
• Employee should be aware of those
yardsticks.
• Steps in PA
– Establishing standards
– Communicating stds. to employees
– Measuring actual performance.
– Comparing actual with stds.
– Discussing reports with employees
– Taking corrective action
Performance Appraisal
Methods

• Individual Evaluation Methods


– Confidential report
– Essay evaluation
– Critical incidents
– Checklists
– Graphic rating scale
– Behaviorally anchored rating
scale
– MBO
Performance Appraisal Methods

• Group Appraisal
– Ranking
– Paired comparison
– Forced distribution
– Performance tests
– Field review technique
Performance Appraisal Methods

1. Confidential report Traditional


2. Essay evaluation methods
3. Critical incidents
4. Checklists
5. Graphic rating scale
6. Straight Ranking
7. Paired comparison
8. Forced distribution
9. Grading system
10.Field review technique
11.Nominations
12.Work samples
Performance Appraisal Methods

Modern methods

1. Assessment centre
2. Human resource accounting –
costs & contribution
3. Behaviorally anchored rating scale
4. MBO
5. 360º performance apparaisal
Critical Incident method

Ex: A fire, sudden breakdown, accident

Workers reaction scale

A informed the supervisor immediately 5


B Become anxious on loss of output 4
C tried to repair the machine 3
D Complained for poor maintenance 2
E was happy to forced test 1
Checklist method
Weighted checklist method

weights performance rating


(scale 1 to 5 )
Regularity 0.5
Loyalty 1.5
Willing to help 1.5
Quality of work 1.5
Relationship 2.0
Forced choice method

Criteria Rating

1.Regularity on the job Most Least


•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular
Graphic Rating Scale
• Continuous Rating Scale
• Discontinuous Rating Scale

Employee name_________ Deptt_______


Rater’s name ___________ Date________
------------------------------------------------------------------------
Exc. Good Acceptable Fair Poor
5 4 3 2 1 _
Dependability
Initiative
Overall output
Attendance
Attitude
Cooperation
Total score Continuous Rating Scale
Discontinuous Rating Scale

Indifferent
Enthusiastic

Attitude

No Interested Very
Interest enthusiastic
BARS( behaviorally Anchored rating
scale)

Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Retranslate the incidents

Step 4. Assign scales to incidents

Step 5. Develop final instrument


MBO Process

• Set organizational goals


• Defining performance target
• Performance review
• feedback
Performance Appraisal Methods

• Group Appraisal
– Ranking
– Paired comparison
– Forced distribution
– Performance tests Field
review technique
Ranking method

Employee Rank

A 2

B 1

C 3

D 5

E 4
Paired comparison method

A B C D E Final Rank
A - - - + + 3

B + - - + + 2

C + + - + + 1

D - - - - + 4

E - - - - - 5
No of Positive evaluation
Total no. of evaluation * 100 = employee superior
evaluation
Forced Distribution method

No.
of
employees

10% 20% 40% 20% 10%

poor Below average good Excellent


average

Force distribution curve


Field review method
Performance subordinate peers superior customer
Dimension

Leadership ^ ^

Communication ^ ^

Interpersonal skills ^ ^

Decision making ^ ^ ^

Technical skills ^ ^ ^

Motivation ^ ^ ^
Performance criteria for
executives
• For top managers
– Return on capital employed
– Contribution to community
development
– Degree of upward
communication from middle-
level executives
– Degree of growth and
expansion of enterprise.
For middle level managers

• Departmental performance
• Coordination among employees
• Degree of upward communication
from supervisors
• Degree of clarity about corporate
goals and policies
For supervisors

• Quality and quantity of output in


a given period
• Labor cost per unit of output in a
given period
• Material cost per unit in a given
period
• Rate of absenteeism and turnover
of employees
• No of accidents in a given period