HUMAN RESOURCE MANAGEMENT

LECTURE - 8

& Performance Appraisal

 Recap on Lecture-7 (T&D)

1) Training is based on 2 theories as laid down by an German Educator

Alexander Kepp in 1833, which was later reinforced by an American
Educator Malcom Knowles in 1960.

What are those two theories ?

a. Andragogy - Learning of Adults

b. Pedagogy – Learning of Minors

2) Andragogy, Learning of Adults is based on 6 factors, What are those?

a. Reason – Why to learn? Adults need to know the reason?

b. Experience – Professional and Personal Experience to gel with the
relevant training one is going through.
c. Involvement – Pro activeness in the training session.
d. Applicability – in professional and personal life the knowledge of the
training acquired and its immediate benefits on applicability
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e. Problem Solving – Utilization of the acquired knowledge of Training in

resolving issues as and when required.
f. Motivation - Self motivation through acquired knowledge thus enhancing
self esteem.

3) What is training ? The Process to learn something new and valuable

vis a vis an employee’s JD + UJP.

4) What is the Goal of Training? To sharpen and multiply the existing

skills and competencies of an employee for better performance and
productivity with acquiring of new knowledge.

5) Which sort of training programs you consider should be imparted

across the board ? a. Effective Communication, b. Functional Training,
c. Time Management, d. Team Management, e. Interpersonal Skills.
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6. Generic definition of TNA? Why is it necessary in any Company ?

TNA means Training Need Analysis. TNA determines the need for training
for any Human Capital, so that the deficiency is eliminated. TNA could be
for an individual, group or entire workforce.

7. Which sort of training programs you consider should be imparted

across the board ?

a. Effective Communication, b. Functional Training, c. Time Management,

d. Interpersonal Skills.

8. TTT stands for what ? How does it assist an Organization?

Train the Trainer. This concept enables a department choose the best
performer through Performance Appraisal for a certain training program.
He goes through it and upon his return and imparts the acquired
knowledge to others in the department. TTT concept saves costs for the
organization in a big way.
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7.What is IDP? How is IDP linked to TNA?

IDP = Instructional Design Process. IDP assists in designing, creation and

delivery of effective training programs once identified through the process
of TNA.

8. What could be the most viable methods or tools of TNA?

a. Questionnaire - put up to employees to know what they are looking

forward towards the relevant training program.
b. Observation – the Line Head keeps an eye on the weaknesses of his
subordinates and nominate him accordingly in the pertinent training
program.
c. Interviews – While Interviewing employees in know their deficiencies
and the training programs they would prefer to attend to overcome the
same.
d. Examining Employee’s work performance – Through his productivity
and quality which the Line Head is in a better position to authenticate,
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f. Assessment – Evaluate employee’s knowledge with online multiple
choice questions revolving around his work to estimate his short falls.
g. Competitive Analysis – Company needs to keep an eye on their
competitors / adversaries in context to their progress in their sales, stock
rise and customer satisfaction. Company needs to come up with such
training programs which will give an edge to their business when
deciphered to their employees.

9. What would be the repercussion if TNA is not properly calculated?

a. it will not assist in formulating an effective training program.
b. Waste of time and money.
c. 0% enhancement in performance of the concerned Human Capital.
d. Company Objective totally lost.

10. Who participates in TNA? Who are they identified as ?

Its imperative that every employee is perfect in his set of job skills and
competencies and the experts who take part in pinpointing the
deficiencies or identifying the need in overcoming the same are called
SME’s – Subject Matter Experts eg. Line Heads, Training Experts etc.
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10. What is HLT ?

HLT = High Leverage Training. HLT is linked to Strategic Business Goals
& Objectives of a Organization. HLT is assisted by IDP to develop an
effective training program. Training should not be a one time go. People
usually have Gold fish memory hence training of any module should be
refreshed annually if not biannually.

11. Learning is a continuous process, what is it called?

It is called Kaizen, a Japanese terminology

12. IDP is also referred as the ADDIE Instructional Design Model. What is
ADDIE based upon?

It is based upon Rudyard Kipling's 5 W’s and 1H, just like JA, HRPP etc.

A – Analysis : What is the need of the concerned training? Who should be

attending. Will the relevant training resolve and overcome the present
gap?
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D – Design : After TNA, the relevant training program is prepared. It needs to

be designed to cater to the need of those who have been part of TNA? How
should the training program designed? What should be offered in the training
program? Also decision is taken if it should be a board / class room session
or distance / e-learning? Should it be in the Office premise or out station?
D – Development : The right content, learning activities, manual and
handouts, slides synched according to the topics.
I – Implementation : Prior floating the training program, a mock session is
organized to feel the effect of the program. To gauge the effectiveness of the
program’s content and get a random feedback from the attendees so that if
necessary it could be altered accordingly, prior rolling out the final program.
E - Evaluation : After the training program, two way evaluation is carried out.
Trainer = Trainees, giving feedback to the management which employee was
most interactive during the session and has acquired the maximum
knowledge. Similarly Trainees = Trainer , his performance, his knowledge,
his enthusiasm while imparting, his expertise on the subject.
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13. When can an organization opt for LMS or e-learning?

When the organization has sufficient budget, When human capital is
geographically dispersed and not constrained to a single city, When human
capital support and adapt the change management related to technological
or electronic advancement.

14. What is the benefits of gamification ?

Gamification in training boosts the effectiveness in corporate training
programs, It accelerates the learning process, It increases the engagement
of the trainees in the program, It makes the program more fun. Enhances
the training experience, Previous old training programs can be enhanced
and revamped by adding gamification in slides thus making it more
interesting, It helps in icebreaking activities during a training program.

15. How does training benefit an organization?

a. Improves the job knowledge and skills and eliminates deficiencies.
b. Helps create better corporate image / branding.
c. Leads to increase profitability with positive attitude.
d. Trainee’s learn through the TTT concept.
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e. Improves Organizational Communication.

f. Assists in Change Management
g. Improves relationship between Superior and Subordinate.
h. It helps in promotions from within.
i. Employee’s become competent and develop a sense of responsibility
towards the Organization.

16. What are the Seven Principles to Deliver Training effectively and the
rationale being each?

1.The Principle of The Learning Specialist

2.The Principle of The Learner
3.The Principle of The Language
4.The Principle of The Lesson
5.The Principle of The Teaching Process
6.The Principle of The Learning Process
7.The Principle of Review and Application
RATIONALE ON NEXT SLIDE
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1.The Principle of The Learning Specialist - The trainer / facilitator should be

fully abreast of the topic/training program he is to impart.
2.The Principle of The Learner – Trainee’s attitude should be positive and
should attend the training program with full enthusiasm to learn something
new.
3.The Principle of The Language – Language should be equally
comprehendible on both sides, i.e. the trainer and the trainee.

4.The Principle of The Lesson – Learner should attend the training program
with the motive of enhancing new skills, knowledge and competencies,
matching his JD and UJP.
5.The Principle of The Teaching Process – The training program needs to be
exciting and interactive to the trainee’s. Trainee’s should pitch-in their
personal and professional experience.
6.The Principle of The Learning Process – Imperative that the trainee’s
attend with a positive mindset to grasp new knowledge with openness.
7.The Line Head is the best person to review the change in his subordinate
after the training program and how he implements the acquired knowledge in
his job.
 Topics to be touched based

• Introduction to KRA’s and KPI’s in Performance

Management System.
• Performance management Vs Performance Appraisal
• Various Appraisal Methods/Techniques
• Errors/biases in Appraisal process
• Competency based Performance Management
 Purpose

Empowerment

Relationship

Flexibility

Optimal
Performance

Recognition &
Acronym of “Perform”

Rewards

Morale
 What is Performance ?
Performance is actually what an employee:
“Does” OR “Does Not Do”
Performance of employees are based upon:
1. Quantity of output
2. Quality of output
3. Timeliness of output
4. Cooperativeness
Other dimensions of performance might be appropriate in
certain jobs, but those listed above are common to most.
 Performance Management System

Performance Management is the Systematic Process to:

1. Communicate Organizational Mission, Vision, Strategic Goals and
Objectives to the employees across the board.
2. Reinforce individual accountability for meeting those Goals along
with his own Goals, and evaluate or review the same on the given
time frame to gauge the individual’s Performance Result !
3. Reflects a partnership in which Managers share responsibility to
Develop their subordinates in such a way
that it enables employees to make
contribution to the organization.
 What is Performance Appraisal ?

Performance Appraisal is a tool (Appraisal Methods ahead)

through which the Management evaluates:

1.Effectiveness of a new employee at the time when he / she

was hired and the time when he / she is being Appraised…. &

2. Those who have been with the Organization for long, PA

reviews not only employee’s Performance, but also identifies
deficiencies in Skills & Competencies if any, thus eliminating the
Gap and enabling the concerned employee to reach the requisite
standard / productivity of that UJP.

“In easy words PA is the last & final step in PMS”

When is Performance Appraisal conducted?

• Performance Appraisal should occur at least Once

a Year.

• However, some companies execute this exercise

Bi-annually. Modus operandi of bi-annual PA is
different from annual.
 Who could be directly involved in the
Performance Appraisal process ?

• The Appraisee
• The Appraiser
• HR Department
 What could be the Objectives of PA?

1. Evaluate
preceding year’s 1. Identify
progress 1. Recognition & Strength,
1. Transfer or Encouragement Weakness,TNA &
2. Effective Two- Re-location Areas of Growth
way 2. Employee Audit 2. Rewards –
Communication Raise, Promo. 2. Set Perform.
with Feedback 3. PIP or Dismissal Objectives /
on Past 3. Better Benefit Goals for the
Performance 4. Career & Incentive following year
Advancement Package
3. Judging gap 3. Minimize
between the Dissatisfaction &
Actual & the pre- Turnover
set Standard
Performance
Feedback / Appraisal Interview

Feedback is
a GIFT
if given and
received
constructively!
Repercussion of a Negative PA Interview
Supervisor’s Homework prior an Appraisal Interview

• Prepare in advance - Review the employee’s JD along

with his / her Goal Setting established at the beginning of
the year.

• Ask the employee for a Self-evaluation - Check and

identify variances between your evaluation and the
employee’s self-evaluation and be prepared to discuss
these differences.

• Seek Input from others - How he interacts, his attitude,

his behavior, team player, communication, humility etc.

• Do Not Lecture - Explain the employee in a subtle way

his shortfalls. Do not do all the taking, give a ear to what
the employee has to say. VDO on Feedback –
“The PA Zone”
 Rating / Ranking – the Bottom Line in PA

Good OR
Average OR
Poor OR
Rationale for Rating / Ranking (in a Nutshell)

Good OR

Average OR

Poor OR
 Ranking / Rating – based on 3 Factors
The data or information that managers receive on how well
employees are performing their jobs can be of three different
types.

1. Results-based information (Achievement of pre-assigned Goals)

What the employee has done OR accomplished – How he
fared in his Goal Setting.

2. Behavior-based information (Behavior under Critical Performance Factors)

Focuses on specific behaviors that lead to job success –
proactive OR snobbish, team player OR single player.
Behavioral information is more difficult to identify, however, management
is determined to see the behaviors of its employees for career planning.

3. Trait-based information (Core Values)

Identifies character trait - eg. pleasant OR unpleasing
personality, down to earth OR pompous.
 Merits of PA

Gives Feedback on Performance to employees.

Identifies employee’s Training Needs.

Specifies Ranking / Rating in order to allocate

Organizational Rewards.

Forms a base for HR decisions: Salary,

Increment, Promotions, Disciplinary Actions
etc.
 Demerits of PA

1. The Halo / Horn effect – Either employee’s Competence

in one area Shines or an employee does Poorly in one
area on the basis of which judgment is passed on the
employees capability!
2. Biasness – Prejudice against some Race, National Origin,
Gender, etc.
3. Central Tendency – Rating everyone as “Average” (the
COLA effect).
4. Recency Effect – Focusing on Recent Performance or some
Untoward Incident, instead of the entire year.
5. Favoritism – Favoring Friends, Family or Subordinates in
good books, rather than keeping Meritocracy in view.
 Class Exercise
Goals & KRA - Synonymous
How would you gauge a Lecturer?

KRA Weight
1. Imparting Lecture 0%
2. Research Material for the
Lecture 0%
3. Service to the Institution 0%
100%
 KRA - Lecturer

KRA /Goals Weight

1. Imparting Lecture 50%
2. Research Material for the
Lecture 30%
3. Service to the Institution 20%
100%
 PA an Unavoidable Fact

Performance Review / Appraisal / Evaluation -

An Unavoidable Fact
 Process of Employee Appeal
in case of Conflict / Disagreement

• Every employee has the Right to Appeal if discontent

with his / her Appraisal. If grievance is not resolved, it can
reach the level of the CEO for final decision.

• No reprisal against the concerned party - The

employee in particular will not suffer victimization from
anyone as a result of seeking resolution of a Grievance
through this procedure.

• Management should ensure that the employee’s grievance

is responded in a timely manner, usually within 7 working
days.
Methods of Appraisal
 MBO Method
Management by Objectives (MBO) specifies the
Performance Goals that an individual hopes to attain within
an appropriate length of time, and finally rewards are made
on the results achieved.

The objectives are derived and inter-linked with the overall

Goals and Objectives of the Organization.

With MBO came the concept of SMART goals :

Specific, Measurable, Achievable, Realistic, Time bound

.. More on MBO 
Cycle of MBO

MBO is a
total
PMS in
itself
 360o Feedback Method

A method that employees will give confidential and

anonymous assessments on their colleagues.

360 degree feedback, also known as 'multi-rater feedback',

is a comprehensive appraisal where the feedback about the
employees’ performance comes from all the sources that
come in contact with the employee on his / her job.

.. More on 360 
 Example: 360o Feedback Method
Feedback collected Anonymously from :

Suppliers /
Customers Superiors Vendors

Peers Team
(other Employee Members
Dept’s)

Subordinates
Comparative Method / Forced Distribution / Bell Curve
With the forced distribution method, the ratings of
employees’ performance are distributed along a bell-shaped
curve.
There are several drawbacks to the forced distribution
method.
One problem is that a supervisor may resist placing any
individual in the lowest (or the highest) group.
Difficulties may arise when the rater must explain to the
employee why he or she was placed in one grouping and
others were placed in higher groupings.
Further, with small groups, there may be no reason to assume
that a bell-shaped distribution of performance really exists.
Finally, in some cases the manager may feel forced to make
distinctions among employees that may not exist.
.. More on Bell Curve 
More on Bell Curve 
 (Illustration-2)
Comparative Method / Forced Distribution / Bell Curve

Example:

No.
of
employees

10% 20% 40% 20% 10%

Poor Below Average Good Excellent

Average

Force distribution curve

 Essay or Narrative Method
The Essay or “Narrative” appraisal method requires the
Manager / Supervisor to write a short essay describing
each employee’s performance during the rating period,
along with his / her Behavior, Strengths and
Weaknesses.

A Time-consuming Evaluating process. However it

could be viable for small organization’s operating in the
capacity of SME.
 Checklist Method
Checklist Method for Performance
Evaluation lessens the subjectivity,
although subjectivity will still be present
in this type of rating system.

With a Checklist Scale, a series of

questions is asked and the Manager
simply responds YES or NO to the
questions, which can fall into either the
Behavioral or the Trait method, or both.

Demerit - It doesn’t allow detailed

answers and analysis of the performance
criteria.
 Behaviorally Anchored Rating Scale-(BARS)
This is the very popular, traditional method of Performance Appraisal. Under this
method, core traits of employee pertaining to his job are carefully defined. These
traits are allotted with numerical scale to tabulate the scores gained by appraisee
(employee) in performance assessment relating to his job by appraiser (employer)
and sum-up to determine the best performer.

This method is popular because it is simple and does not require any writing ability.
The method is easy to understand and use.
Performance Trait Excellent Good Average Fair Poor
Attitude 5 4 3 2 1
Knowledge of Work 5 4 3 2 1
Managerial Skills 5 4 3 2 1
Team Work 5 4 3 2 1
Honesty 5 4 3 2 1
Regularity 5 4 3 2 1
Accountability 5 4 3 2 1

Interpersonal
5 4 3 2 1
relationships

Creativity 5 4 3 2 1
Discipline 5 4 3 2 1
 “Annual Confidential Report (ACR)”
Confidential Report System is well known method of performance
appraisal system mostly being used by the Government
Organizations.
Superior writes Confidential Report about his subordinate on the
basis of the following key factors :
1. Character and conduct of an employee
2. Knowledge of an employee
3. His nature and quality of work
4. Punctuality of employee
5. Absenteeism of an employee
6. Unauthorized absenteeism or leave without permission
7. Behavior of an employee with colleagues, superiors and with public
8. Ability of supervision and controlling
9. His/her integrity and honesty
10. If any complaints against employee
Demerit : The employee himself is not aware of his
Appraisal as it is kept Confidential from him without any Feedback
 Closing Note:

Appraisals should be conducted on a Scheduled Basis.

Appraisals tell employees How they’re doing & How they

can improve.

Appraisals help Create a System of Motivation &

Rewards based on Performance.