First in the series of HR stories by empxtrack
The Curious Tale of
hero of our
2A Performance Management
Story by Aishwarya
Aishwarya likes to help managers
understand their people better through
data insights. He further enjoys helping
make processes easier on people through
simplified user experiences. At empxtrack,
Aishwarya finds customers, learns about
their problems and solves them through a
mix of activities that span sales, digital
marketing, user onboarding and product
Produced by Tushar
Tushar believes that people are an
organization’s most important asset. He
likes to help leaders manage their people
well and realize the true potential of their
workforce. With over 20 years of
technology experience, he has built
technology products in partnership with
and even used by Fortune 100
companies. Tushar is the Founder & CEO
Follow me at tbhatia on LinkedIn
Follow me @aichaturvedi on twitter &
aichaturvedi on LinkedIn
3A Performance Management
| Basics of Performance Management
| Recording & Reviewing Your People’s
| Develop Your People and Drive Performance
| Ways to Train your Employees
in distress –
4A Performance Management
In the introductory chapter, you will be taken through
1. The Story of John & Janet
2. The nature of their HR challenge
3. Multiple problem scenario mapping
Finally you can also evaluate If your company faces similar challenges
5A Performance Management
Janet works in Human Resources at YourFavouriteCompany.
While her manager, John, is evaluating his team, he wonders if Janet has performed well in the previous
quarter or not.
He meets with Janet and tells her that he is concerned by the fact that Janet, an ambitious person, signed
up for more responsibilities than she could handle. He is further airs the worry that she will fail to build
good-will among the people she has engaged with in her initiatives, if she doesn’t achieve her targets.
On the other hand, Janet feels that she has been putting in more hours than she is supposed to, but
is unhappy that she is not able to contribute real value to the company. She tries to recall where she went
wrong and pulls together all the work she did in the last quarter.
It turns out that John is correct about the fact that Janet signed up for more things that she could complete.
But Janet also realizes that she wasn’t ever too sure on what her goals were. She had to work with a lot of
people to understand where she could make the most impact. John should have been there to help clear
her state of confusion.
You already know Janet & John .
Before we go any further, here is
a look at the hierarchy of human
resources (the people) at
You will learn more about all of
them as you read on.
The Story Overview
6A Performance Management
People in John’s shoes are forced to take decisions on the basis of their gut-feeling, every day. On the
other hand, ‘Janets’ of this world, simply exclaim, “Why didn’t you tell me earlier? I would have appreciated
Helping people perform is a tough job. And we commend you for staying put at your job, all this while.
This eBook takes you through different situations that John and Janet go through and you can see how that
relates to your organization.
We believe, “To succeed, all you need is a framework and a vision”. Our goal, with this guide, is to provide
you this basic framework to weave your HR strategy around. All you now need to do is - plug in your vision
for the business.
We don’t make large promises; but if this eBook helps you solve one problem in your businesses, we would
consider it a job well done. We would love to hear from you on your experiences and feedback on the
eBook. @ (Twitter, email)
* This story is based on actual HR scenarios. Any resemblance, of characters in this story, to real people
should be plainly apparent to them, and to those who know them. This similarity is not the result of chance.
It is DELIBERATE.
The Story Overview
7A Performance Management
Naomi Bloom is a renowned thought leader in the HRM delivery system (HRMDS) industry. She
believes that human resources in most companies, is same as the story behind the legendary Tower
As there are no standard terms to describe most HR processes, it creates confusion at the
workplace. Ms. Bloom likens this situation to how your attempt to build a better organization for your
people is thwarted by ‘God’, who says;
“Let us go down there and confuse their language; that they may not understand one another’s
Disagreements crop-up within the organization if you fail to communicate effectively. This builds
frustration and disengages your employees. At a time when retaining talent is what is most prized in
the HR economy, this sort of a scenario spells disaster for your business.
So we begin this book by defining what exactly we are referring to when we say ‘performance
Performance Management involves setting goals, reviewing progress continuously and
improves performance through feedback.(Fig 1.1) This way you can run employee
development programs and reward achievements’.
This closed-loop system creates clarity and alignment to organizational goals and
expectations for performance.
And you end up asking questions like:
• “How does performance management help retain
employees? What about, performance review or
performance appraisal; does that help in retention
• “It’s the end of the year. Let’s conduct the
performance review. Hey, how about a 180 degree
performance appraisal? Or maybe a 360 feedback?
• “How does a performance review done for
development, different from performance review
done for salary increment”
HR’s Tower of Babel
8A Performance Management
This guide discusses all of performance management in 3 simple steps and is peppered with
real-life story inspirations and anecdotes from our experience in the Human Resource
Management System (HRMS) space.
The idea is to help you understand the situation, relate to it, and start taking steps to build a
high performing organization.
Are you ready?
Develop your people
HR’s Tower of Babel
9A Performance Management
If John and Janet, or the HR manager -Terri, are able to take care of these three issues(above) at
YourFavouriteCompany; you’re looking at a business that knows all there is to know about Performance
But do all companies face the same issues? Are these the same issues that your company faces?
Read on to find out…
Here is a quick recap of the three main issues faced by
employees in the YourFavouriteCompany case study :
1. Janet felt that having goals set for her, in the beginning of
the quarter, may have helped her keep track of and achieve
2. While John and Janet met regularly and discussed
progress; their last conversation about ‘Janet taking on
more than she could handle’ came as a surprise to her. She
wondered why John had never hinted at it before, all
through the previous quarter.
3. Lastly, when John told Janet that he is concerned about her
performance, Janet was clueless about what she should do
next. His feedback didn’t include an actionable plan for the
Click Here To Know About EMPXTRACK’s
Performance Management Solutions
10A Performance Management
I’m glad you asked!
In its essence, the story of John and Janet shows the case of a failed performance management system at
YourFavouriteCompany. The issues that John and Janet faced have absolutely nothing to do with what the
company does, what departments they are in or how large the company is. Since the situation is not
unique to any one organization, it can easily happen at your organization too.
Here is a list of a sample companies, we have complied, to further describe how such HR issues “appear”
different across industries and companies of various sizes; but are essentially the same.
•Managing performance in manufacturing and service organizations with a large workforce – empxtrack’s
experience in working with Marotta Controls, Millennium Engineering and KePRO
•Managing faculty and staff in an educational institution – Case Study of Colby Sawyer College, New
•Why it’s even more important for a small business to manage performance – Our experiences of running a
performance driven organization, here at empxtrack
•Managing performance for people who work across functions and report to more than one person – Key
challenges and how to solve them
But if you’re still persistent on the thought that you have a more unique HR situation, let’s look at
YourFavouriteCompany in three different HR avatars.
Pick the company model that best suits your situation.
Does the performance management problem of
YourFavouriteCompany also apply to my corporation?
11A Performance Management
•Janet and John discuss goals during meetings, but rarely use goal sheets to jot them down
•Performance reviews are spontaneous and often it is gut-instinct that drives John’s advice to Janet
•Almost all that Janet learns happens to be informally, on the job. There are not performance driven training
•YourFavouriteCompany 1.0 does not have a performance management system in place
•People at YourFavouriteCompany 1.0 either executes reviews, goal tracking and other processes on paper;
or they don’t run them at all
•Also, since Janet spends more time and effort, than necessary, acting on her goals; she is left with no time to
devote towards developing her skills
•If you are part of YourFavouriteCompany 1.0, you need an automated performance management system
that can help you set up holistic HR processes
•Also the processes thus installed need to be easy to use for employees such as, Janet and John
“You can improve performance management
without investing substantial resources in IT
12A Performance Management
•Terri, the HR Manager at YourFavouriteCompany 2.0, wants to fix the issue of lack of efficient feedback that
John & Janet face
•So she goes to the marketplace and buys a performance appraisal software. With this system in place,
John and Janet find that their situation has improved - they can agree on a defined time to discuss
•Then, John and Janet evaluate Janet’s performance and discuss the reports that they have prepared for the
meeting. John feels that it would be a good idea to take feedback from Janet’s peers, Catherine and Tom, as
well as Terri; to help Janet get a “360 feedback” on her performance. But the software doesn’t offer 360
•They will have to buy a new product to manage it, which John feels frustrated about
•What Terri did at YourFavouriteCompany 2.0, was buy the best Performance Appraisal Software she could
find. However, she lost out in the bargain, as this best-of-breed product could only offer limited data on
employee performance and didn’t evolve as John and Janet needed it to
•If you find yourself in Terri’s position, you need a performance management system that can offer solutions
that can be configured to your changing needs.
•Also, look for the system’s capability to integrate with your payroll and learning management systems, if
“Don’t invest in your systems substantially in form
of best-in-class products. Chances are that your
real problem is managerial, not technological.”
13A Performance Management
•Terri, the HR manager collects a number of individual software to conduct appraisals, track employee goals
and manage trainings; for all teams similar to Janet & John’s
•Susan, Terri’s manager, informs her that she needs a report on how the training investments from the
previous year helped people achieve their goals. The Goal Tracking software will aid Terri in understanding
the percentage of goals that were met. She needs to find out, from the Learning Management System, what
training the employees underwent in that year, and club it with results of the recently conducted appraisals
•Terri completes the report and hands it over to Susan. Susan says that the report is not “robust” enough and
that Terri needs to spend more time with Susan to understand it in totality. Terri is frustrated since every
quarter, whenever Susan asks her of the report, she hears the same feedback
•Terri made proactive investments in getting all aspects of a performance management system covered.
However, she now wishes that she had she had a “single-system-of-record” that allowed her to run
customized reports to share it with Susan.
•If you find yourself in Terri’s position, you need a performance management system that has individual
modules to plug in as your team evolves, while also supporting integrations with your payroll and learning
management systems(if required).
A manager at YourFavouriteCompany 3.0 said, “We
generate one report for every 3 employees we
have. We’ve stitched together our performance
management system on blood, sweat and Excel.”
14A Performance Management
In the introductory chapter, you figured out the nature of your HR challenge. But the basic problem remains
the same - of managing performance well.
So let’s look at understanding the following elements that form the basis of a good performance
•Managing KRAs and KPIs
•Delegation of work
Chapter 01. The Basics of
15A Performance Management
An individual, a team or a business, performs
well when they meet certain objectives that they
set for themselves. So it all starts with defining
In our case study; Janet expressed how lacking a
clear picture of her goals kept her from
succeeding at work. Therefore, before you start
looking at how people are performing, you need
to know what you want them to do.
John can help the HR manager understand the
goals that he is chasing for the department. Terri
then needs encouragement to break it down for
Janet & Catherine.
To help with this process, we have put together a
list of questions which can help John come up
with SMART goals for his team.
Here’s a wonderful story about American champion
swimmer, Florence Chadwick, on clarity of goals. You
may share this with ‘the Johns’ at your organization to
get them motivated.
“A go-getter by nature, she stopped just half mile short
of her final lap, not because of the frigid water or
exhaustion, but because of the fog. She couldn’t see
the land on the other side – her goal.
Two months later, she tried again. This time, despite
the same dense fog, she swam with her faith intact
and her goal clearly pictured in her mind. And she
made it! Florence Chadwick became the first woman
to swim the Catalina Channel, eclipsing the men’s
record by two hours!”
The moral of the story is that a clear vision about your
goals is necessary to achieve your target.
Why Define Goals?
Its simple: “You
can’t manage what
you can’t measure”
16A Performance Management
What are S.M.A.R.T
Don’t just look at the
Print it, or share it on Twitter
(click to tweet) , we’ll love
you for that!
And let it help fellow Johns,
across the globe, come up
with SMART goals.
17A Performance Management
Share with me, the Key Performance Indicators you
have assigned to Janet
John has now assigned Janet a specific area to work on.
We call it Key Result Area(KRI). Within this area, Janet’s
performance depends on a few indicators, the Key
Performance Indicators(KPI). Once John and Janet have
agreed on these, merely ask him to share the two with
you. And yeah, remind him what helped him get this far
– defining a specific goal.
Get Janet involved.
Once John comes up with the priorities, ask him to break
these down into tasks and activities for his team
members, Janet, Catherine and Tom. Ask him to involve
the three of them in the process. Janet may better
identify the activities that are involved, as well as the
ones she can take up, depending on her talent and
experience; both in the company and the industry.
John, define your priorities.
It’s not that John who isn’t good at prioritizing work.
Maybe he just need to be told how to categorize
goals efficiently. It’s critical to get him started.
Doing it right comes later.
While the infographic will help John define the goals accurately, he may never get started. Terri, the HR
person, needs to motivate him. She needs to say the following three things to John, in the same order.
Role of HR in S.M.A.R.T Goal
18A Performance Management
Janet’s goals towards the KRAs and KPIs can be:
•Hire three leadership development trainers for North
America operations in Q1, 2015-16
•Improve trainee satisfaction ratings in leadership
development by 10% in Q2, 2015-16
•Attend 5 upcoming workshops in the field of leadership
development and add 2 new thought leaders to your
network on LinkedIn in the month of June
•Identify training needs for all senior managers in Human
Resources and submit the report to John, in the last
week of April, 2015
KPIs for each of the KRA above are:
•Number of trainers hired
•Training hours completed and trainee satisfaction
•Number of workshops attended or number of new
connections on LinkedIn
•Training need identification report submitted to John,
Therefore KRAs are measurable versions of the KPIs.
In this case, KPIs showcase to Janet, how John will
measure her performance under each KRA.
Here are elements of Janet’s job description:
•Hire trainers and manage trainings
•Evaluate effectiveness of company training
•Build personal networks and attend workshops to gain
knowledge of training technologies
•Identify, plan and forecast training needs within
These are her KRAs.
Keep in mind that the KRAs, goals and Key
Performance Indicators (KPIs) are not the same.
The elements that Janet is liable to deliver results for, as the Training Manager, will be the Key Result
Areas for Janet.
Goals are the directions in which
the employee needs to move the
KPI under a specific KRA.
What do these KRAs need to look like? How are KPIs and goals,
KRAs and KPIs
19A Performance Management
We’re glad you understand how John and Janet can enjoy their work if they have their goals set, right at
the beginning. But now Terri wants to extend this goal-setting process to all departments of
So, what are these business goals that the departments need to
I understand how it works for John and Janet. So how is goal
setting done for the whole organization?
Let’s first get to know the other people
heading departments at
• Lina heads the Sales & Marketing
• Susan is in charge of the entire Human
• Kurt manages the Information
• Also introducing- Bradley Cooper, CEO
Terri would like to help Bradley identify the right
KRAs, KPIs and goals for department heads -
Lina, Susan and Kurt. She would need the
Balanced Score Card to achieve this.
What a balanced scorecard does is help align
business goals to the vision and strategy of
YourFavouriteCompany, while also aligning
priorities for the three people (Lina, Susan and
Kurt) in Bradley’s team.
Organisational Goal Setting
Bradley uses the Balanced score card to answer the following questions, linked to business
objectives, posed by the stakeholders of YourFavouriteCompany:
• How YourFavouriteCompany may make Money (Finance)
• How they get Customers (Sales & Marketing)
• How they fulfill needs of these Operations (Internal Business Processes)
• How they develop Employees (Learning & Development)
If Bradley has already agreed to these business objectives, with the stakeholders, these trickle
down as goals for each of the department heads on his team.
To keep things simple, we are only going to talk about the last 3 points; and put Lina, Kurt and
Susan in charge of them respectively. These become their KRAs at a high level.
Bradley can tell Terri how he likes to measure the performance in each of the three areas and she
can assign these KPIs to Lina, Kurt and Susan respectively.
20A Performance Management
A wonderful thing that you could do to build a performance-driven culture at YourFavouriteCompany is to
include the KRAs in the job descriptions, for all your people.
So, before joining YourFavouriteCompany, people will know what they are expected to work on; and will come
in with the right expectations.
We have put together this simple template that you may use for creating job descriptions:
1. Name and description of the job
2. Roles and responsibilities of the job – this is where the KRA comes in
3. Required skills and competencies – These should ideally come from the job KRAs defined above
4. Required experiences and qualifications of the candidate – Their experiences and educational
qualifications help people pick up some of the skills and competencies that are required for the job
5. Career plan of the person– How a person can grow within the organization. Organisation charts
become helpful here
6. Salary – You can include variable salaries for people, especially millennials, who join you. If you are
not sure how that works, we have written about how merit-based plans can help you develop your
employees as part of the performance management system.
A Job Description Check-List
Role of Job Descriptions in
21A Performance Management
Fantastic! If you followed John and Janet to this point, you would now know how to run performance engines at your
corporation smoothly. You will see merit in people setting their goals and working towards them.
But, one problem that Janet and John struggled with still lurks –
“While John and Janet met regularly and discussed progress, the last conversation came as a surprise to Janet. She
wondered why John had not hinted at his discomfort with her taking on too much work. He never mentioned it in all the
meetings they had, through the previous quarter.”
Janet cringed at the fact that the regular feedback she received from John was completely unrelated to the last review
he gave on her quarterly performance. This suggests that John didn’t have a very good view of her performance all this
time. So when he reflected back on Janet’s work in its entirety, both John and Janet were in for a surprise.
What John and Janet need here is a system that allows them to share the goals they set (refer to the previous
Putting such a system in place would allow them to see how Janet is pursuing her goals; while mapping her actions
against each of them. John can also offer his feedback while he sees Janet struggling to achieve her goals, and not
after the project is complete.
But how do they do that?
Chapter 02. RECORDING &
22A Performance Management
Achieving Goals : Who is
A lot goes into getting things done at the workplace. It’s not only about Janet’s own capability to
complete the task at hand. More often than not, she will be working with others, in a team. Her
performance can vary in the two situations (below), depending on the people on her team and their
motivation to get the work done.
The graphs below showcase the contrast between two projects, where Janet worked with different sets
While in project #1, Janet and her team got a lot of work started but had to leave most of it incomplete;
in project #2, the team rapidly completed one task after the other, depicting heightened productivity.
These graphs help John decide how he needs to manage the two versions of teams differently.
In the first project, the team is signing up for more things than they can get done and John needs to
see why that is the case.
On the other hand, he needs to recognize the effort in project #2 and reward the team for the same.
Most importantly, he should try to understand what is working in the second team, as opposed to the
first, and then advise Janet to switch tactics accordingly.
23A Performance Management
Motivation Potential Score
That’s an interesting question.
It’s important to remember that with every new team, and every new project, the challenges that the
employee faces change. So the manager will need to understand what conditions his/her subordinate
is working under & understand their concerns in order to decide how often and how much of feedback
needs to be shared. There is no one size fits all approach in terms of feedback.
For instance, if Janet signs up to be part of a new team, she may need some time to gel with her team-
mates; whereas in an old team, she can drive results quickly. It is up to the Janet to regularly share
feedback about her current situation, for John to assess how long the project will take. Of course John
needs to actively seek her feedback too.
How does John address this situation?
This is where a tool like Motivation Potential Score(MPS) comes to the rescue.
According to Hackman & Oldham, a motivating job (one with a high MPS score) shows evidence of
skill variety, task identity, regular feedback from team, autonomy and task significance. All of these
contribute to a sense of "meaningfulness" for the employee.
Janet can give an MPS score to the all the KRAs(activities assigned to her), which John can use to
understand how often she requires feedback; as well as how motivated she feels doing the job.
‘Use Motivating Potential Score to see engagement scores soaring at Your Corporation.’ (tweet this)
John should value the feedback as it will help him understand how Janet’s actions are turning into
results. This recognition of her efforts could make Janet feel happy about her hard-work and also
inspire rewards from John. However, if things are going wrong somewhere, John and Janet can agree
on how the issue can be resolved.
The two can identify a time to “appraise” Janet’s performance. Alternately, John can help Janet collect
feedback from Catherine, Tom and Terri, and himself; through what is known as a 360 feedback.
Sure, feedback is important. But how often, and how much?
24A Performance Management
John feels like regularly delving into performance appraisals is a waste of a lot of time for Janet and
him. So Terri, the HR manager, comes to the rescue by making the process super easy, streamlined
and turbo-charged for them. Here’s how:
1. Terri tells John and Janet that a performance appraisal will help evaluate how Janet has achieved
on her goals. After identifying the goals that Janet has successfully achieved, she will be rewarded
2. From her goal sheet, it is clear that Janet works on quarterly goals. Terri then sets the date for a
performance appraisal in June (end of the quarter) and shares it with Janet and John. She adds a
reminder for a week before the date, to intimate the two, well in advance.
3. In the performance appraisal, Janet reviews herself and sends the document to John, who then
adds his feedback and sends it to Terri. Both, John and Janet, rate the performance on a scale of 1
to 5 which makes it easy to analyze the performance.
4. Thanks to the Balanced Score Card, goals are already categorized. All Terri has to do is get John,
and his manager, Susan, to tell Terri how important each goal was. The weight thus assigned by
the managers would go with the ratings that Janet receives, and appear as a single score, for both
John and Janet to view.
5. The appraisal, so complete, can now be used to work out rewards, as well as a learning &
development plan, for Janet. John can repeat this process at the end of each quarter and year.
Because performance appraisals almost always take a lot of time &
25A Performance Management
Types of Performance Appraisals
The ‘Janets’ of Your Corporation will often find writing an accurate self-appraisal difficult. When left to
their devices, they feel clueless as to what they should write in an appraisal. Here’s what you can tell
YourFavouriteCompany does a good job of mentioning a person’s KRA on his job description(JD).
Janet can start from here. By borrowing from her JD, she could write down the KRAs.
Janet can now mine through her e-mails, diaries and minutes of the meeting with managers, to note
down what she did under each of thee KRAs. Let’s call these elements - activities.
She will find that there are a few activities which stand out as important, while others were regular run-
of-the-mill things she did, because it was needed at the time. Each of these “important” activities would
give Janet three things – what she accomplished (her success), what she learned (her learning), and
where is it that she struggled (her challenges). Ask her to write these down under the relevant KRA.
A summary of the successes, learnings and challenges, from the important activities she did under
each KRA, is what should go on her self-appraisal.
We have put this nice little template to help you get her started on self-appraisals:
Because each performance appraisals is different
Activity KRA Success Learning Challenge
26A Performance Management
Types of Performance Appraisals
Manager’s appraisal of his team
Here’s where John struggles with the appraisals and feedback for his team, which includes Janet,
Catherine and Tom.
• John needs all three of them to complete their self-appraisals to review them. While Janet
completed her self-appraisal, Catherine and Tom didn’t. Worse still, John is busy in his own
work and finds no time to remind them, except when he is out with his wife on a Saturday.
• The feedback form asks John to evaluate Janet on her analytical skills. While he knows she’s
good at analytics, he doesn’t have a very clear idea if she “needs improvement”, or is
“satisfactory”. So he needs to compare her performance with that of her colleagues.
Unfortunately, Tom hasn’t yet completed his appraisal, so John doesn’t have the requisite
ratings to compare with Jane’s analytical skills. He’s stuck.
• Janet and Tom are exactly at par, as far as their communication skills go. They worked on
identical projects that required them to communicate well, and both delivered great results. But
John dreads the extra time and effort that will be needed to write Tom’s feedback, which would
be similar to what he wrote for Janet today, when he submits his self-appraisal. Also, he may not
remember the nice things he wrote for Janet, to replicate it for Tom’s appraisal.
The solution to these problems lies in performance management software, which can:
1. Send regular and automated reminders for employees to fill in their self-appraisals
2. Keep record of each employee’s past performance to compare the current evaluation with
3. Provide an option to duplicate appraisal entries for similar employees
Because each performance appraisals is different
27A Performance Management
In order to keep employees satisfied, boost morale, and remain competitive, employers need to be aware of the need
for continual development of the individual.
Imparting training and education to employees to ensure that work skills stay current is one form of developing them.
Other things that employees associate with growth and development are:
1. Climbing up the ladder of the organizational hierarchy
2. Ongoing increase in remuneration
3. Acquiring higher level skills and competencies
4. Availing some exclusive benefits (perks & privileges)
Chapter 03. DEVELOP
YOUR PEOPLE AND DRIVE
28A Performance Management
The new generation of workforce, millennials, have the desire to be involved in entrepreneurial work
and also have a stake in the business outcome. You can channel this energy to build profits for your
organization by enabling the concept variable pay.
What is merit based compensation?
1. Salary Increment: Commonly believed to be the only motivator, from an employee perspective, and
typically the least important from the management’s view
2. Goal achievement and related bonus/commission
3. Promotion and transfer
You can model variable pay in your company on:
1. Performance-based targets
2. Individual targets
3. Time-based targets
4. Evaluation and recognition
5. Negative indicators
30A Performance Management
Performance Reviews help you identify the top performers and non-performers in your organization. By
talking to each one of them and understanding what worked for them, you can come up with the skill
and competency gaps in your non-performers and enable trainings; for them to turn them into star
Training Need Identification
Some employers think that imparting training is a luxury and not a necessity for competitive and
strategic performance of their organization. They often ask – what if you train an employee, and they
leave? But they forget to consider – what if they don’t leave!
An effective training program allows organizations to hire a wider range of employees and then
develop them over a period of time, rather than finding exact talent matches.
The employee training and development module needs should be refreshed at least once a year for
relevant training to be imparted to your people. However, it is essential to analyze the actual training
needs of an organization and its employees at multiple levels. If the right skills are not targeted,
employees cannot meet their business goals and ineffective learning programs lead to excessive
expenditure, frustration and little or no organizational benefit.
The training needs can be identified at the following three levels:
1. Organizational Level: The organizational level training needs refer to skills and competencies that
are required by an organization to meet its business objectives and help it grow. Each organization
requires a critical bank of core skills for its survival and this becomes an important constituent of
the training needs identification process. Often the skill bank is depleted because of attrition,
addition of new employees or geographic and functional growth and one should review the skill
bank on a periodic basis.
2. Job Role Level: The job role level training needs refer to skills and competencies that are required
by the employees at the team level to perform well. For example, the entire team needs to be
trained on a new compliance related process when it is introduced or a new technology that has
come up recently. This helps a group of employees to work together at a minimum expected
31A Performance Management
Personal Level: The personal level training needs refer to skills and competencies that are required
by an individual to perform well in their job roles. In many cases you may need to train or re-certify
employees periodically based on compliance requirements (most often seen in healthcare and financial
domains). Further, employee or their managers indicate the training requirements and their career
growth plans during the appraisal process. The skill gaps identified during the annual appraisal helps
identify specific weaknesses. Each of these can constitute the relevant training programs for the
Training needs are identified by the combined efforts of everyone in the team as well as L&D
specialists, either in your HR team or as consultants.
What you need to manage:
1. Define goals
2. Track them
3. Conduct appraisals
4. Identify why the person failed to perform
5. What skills and competencies need to be developed
6. Identify the right training and trainers for them
What you need to manage:
1. Integrate with goal setting, appraisals and job
2. Enlisting trainings and trainers as well as the skills
3. Administer the trainings
4. Get the feedback
5. View the change in performance in the next year
32A Performance Management
In this chapter, we will wrap things up with an overview of the different types of training:
*Bonus Chapter. WAYS TO
TRAIN YOUR EMPLOYEES
33A Performance Management
Types of Corporate Training
When employees learn cross-training, which is
learning to do the jobs of other employees, the
business gains security as it enables an
employee to step in should another become
unavailable due to illness, leave of absence, or
promotion. The company can remain productive
when the option of relocating employees as
needed, is available. In addition, exposing staff to
different jobs and departments within the
company helps them to understand how each
position is important to the big picture. Employees
understand the value of each role and develop a
greater respect for individual contributions. This is
a morale booster and a great way of encouraging
respect among employees
On the job Training
Another common method of training is the
workshop model, where groups of employees
learn through a combination of audiovisual aids,
games, role-playing, and occasionally through
lecture. This method encourages employees to
get to know each other and fosters cooperation
between different job classifications and
Computer Based Training
One of the most popular methods of further
training is that of computer-assisted instruction.
Employees complete specific modules of
instruction, usually at the employee’s own pace.
Accurate monitoring of the employee’s progress
is possible, and the amount of time an employee
spends on a specific module is adjustable,
dependent upon need.
34A Performance Management
You now know how to define goals and performance standards at your organization; conduct effective reviews and
record performance; and use these reviews to develop your people and drive performance.
For any queries or feedbacks, please contact the authors on:
35A Performance Management
Communicate. Communicate. Communicate.
• Publish on the employee portal the start of the appraisals, the process details and key time-lines.
If yours is a large company, it may be a good idea to print some posters and display these at
• Definitely include the details of your employee performance evaluation process in the Employee
• Hold workshops for employees and managers: explain the appraisal process, answer queries,
describe scenarios and mention benefits.
• Develop an introduction form that communicates the performance evaluation process from each
stakeholder’s perspective. The form should communicate the role of employee, manager, and
any other people involved in the process.
• Don’t hide any surprises. If you Normalize employee scores, include that in all communications
such that employees and managers are aware that final scores may be changed.
• If possible, involve senior management in talking about the importance of the appraisal process
and its timely completion
36A Performance Management
It is important to analyze appraisal scores well, as they can be deceptive at times. You and
other reviewers on your team, may also find these tips useful.
Also, you can use appraisals in many ways from developing individual people to evolving the
Steps in Performance Evaluation Proposed Timelines(business days)
Employee Completing their self-evaluation and
submitting to their managers
Managers completing the employee evaluation and
submitting to the next level
5 to 10 days (depending on the team size)
Heads of Departments finalizing employee scores for
their departments and releasing to HR
2 to 5 days
HR conducting Normalization (removal of manager bias)
across the organization, finalizing scores and
submitting evaluations for discussions
3 to 12 days (depends on the level of interaction
Managers discussing appraisals with employees and
submitting for their final acceptance
2 to 5 days (depending on the team size)
Employees accepting their appraisal and signing off 1 day
Total Time Taken 15 to 35 days
You may connect the performance evaluation time-line(below) with the goals set for the appraisal
time period and access previous year records of appraisals and goal tracking.