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CHAPTER 5 PERFORMANCE APPRAISAL

CHAPTER 5 PERFORMANCE APPRAISAL. 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

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CHAPTER 5 PERFORMANCE APPRAISAL

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  1. CHAPTER 5PERFORMANCE 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. PROBLEMS IN PERFORMANCE APPRAISAL • Recent effect • Halo effect • Central tendency • Prejudice and stereotype • Fatigue

  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 6TRAINING 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

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