The document discusses personnel development and employee training programs. It defines training as programs that develop skills, abilities, and attitudes in employees. The purposes of training are to increase performance, develop employees for higher roles, utilize human resources effectively, and integrate individual and organizational goals. Training methods include on-the-job training like coaching and job rotation, and off-the-job training like lectures and role playing. Management development focuses on improving managerial performance through knowledge and skills training. Career development involves planning and growth opportunities to help employees achieve career goals.

1. PERSONNEL DEVELOPMENT PROGRAM

2. EMPLOYEE TRAINING Training enhances job related skills and also facilitates acquiring of new skills. Training may be defined as a systematised tailor made program to suit the needs of a particular organisation for developing certain attitudes, actions, skills and abilities in employees irrespective of their functional levels.

3. PURPOSE Training serves following important purposes for an organisation: To increase the performance level of an employee and to develop him/her in such a manner that he/she can rise to a position of higher responsibility. To constantly develop manpower to meet the current as well as future needs of the organisation. To ensure effective utilisation of human resources. To integrate individual goals with organisational goals.

4. TRAINING METHODS Training methods are classified by the location of instruction. On the job training is provided when the workers are taught relevant knowledge, skills and abilities at the actual work place. Off the job training requires that the trainee learns at a location other than the real work place.

5. TRAINING METHODS ON THE JOB TRAINING: An employee is put on the job and is trained to perform the said job thereby helping the employee to acquire the skills for performing the said job in future. Creation of assistant to positions, job rotation and special assignments are different nature and forms of such training.

6. Contd… JOB INSTRUCTION TRAINING: This is a training through step by step training. Usually steps necessary for a job are identified in order of sequence and an employee is exposed to the different steps of a job by an experienced trainer.

7. Contd… COACHING: It is a kind of daily training and feedback given to employees by immediate supervisors. It may be defined as an informal, unplanned training and development activity provided by supervisors and peers.

8. Contd… MENTORING: It is a relationship in which a senior manager in an organisation assumes the responsibility for grooming a junior person. Technical, interpersonal skills etc are generally conveyed in such a relationship from the more experienced person. The main objective of mentoring is to help an employee attain psychological maturity and effectiveness and get integrated with the organisation.

9. Contd… JOB ROTATION: This involves movement of training from one job to another. This helps the person to understand how the organisation functions. The purpose of job rotation is to provide trainees with a larger organisation perspective and a greater understanding of different functional areas as well as a better sense of their own career objectives and interests.

10. Contd… The cross trained personnel offer a great amount of flexibility for organisations when transfers, promotions or replacements become inevitable. APPRENTICESHIP TRAINING: Most craft workers such as plumbers etc are trained through this method. Apprentices are trainees who spend a prescribed amount of time working with an experienced guide, coach or trainer.

11. Contd… OFF THE JOB TRAINING: Under this method of training, the trainee is separated from the job situation and his attention is focused upon learning the material related to his future job performance. There are various methods of off the job training:

12. Contd… VESTIBULE TRAINING This method duplicates on the job situation away from actual worksite with machinery and equipment similar to those used in actual production or operation and is used to help employees to acquire new skill. Usually training is given away from the production center.

13. Contd… Role Playing: It is defined as a method of human interaction that involves realistic behaviour in imaginary situations. The participants play the role of certain characters, such as Production Manager, Mechanical Engineer, Superintendents, Maintenance Engineer, Quality Control Inspectors, Foreman, Workers and the like. This method is mostly used for developing interpersonal interactions and relations.

14. Contd… LECTURE METHOD Traditional and direct method of instruction. An advantage of this method is that it is direct and can be used for a large group of trainees.

15. Contd… CONFERENCE/DISCUSSION APPROACH The trainer delivers a lecture and involves the trainee in a discussion so that his doubts about the job get cleared. When big organisations use this method, the trainer uses audio-visual aids such as blackboards, slides etc; in some cases the lectures are video taped or audio taped. The conference is therefore a group centered approach where there is a clarification of ideas, communication of procedures and standards to the trainees.

16. Contd… PROGRAMMED INSTRUCTIONS This method has become popular in recent years. The subject matter to be learned is presented in a series of carefully planned sequential units. These units are arranged from simple to more complex levels of instructions. The trainee goes through these units by answering questions or filling the blanks.

17. MANAGEMENT DEVELOPMENT

18. ROLE OF DEVELOPMENT Managers are indispensable resources, the priceless assets of an organisation. The basic purpose of executive/management development program is to improve managerial performance by imparting knowledge, changing attitudes or increasing skills.

19. Contd… Companies spend lavishly on such programs with a view to attract and retain the best brains in the industry.

20. DEFINITION Executive or management development is a planned, systematic and continuous process of learning and growth by which managers develop their conceptual and analytical abilities to manage. It is a result of not only participation in formal courses of instruction but also of actual job experience.

21. Contd… It is primarily concerned with improving the performance of managers by giving them stimulating opportunities for growth and development.

22. CONCEPT Development is an education process as it tries to enhance one’s ability to understand and interpret knowledge in a useful way. Development is different from training in that it is often the result of experience and the maturity that comes with it.

23. Contd… Executive development focuses more on the manager’s personal growth. It is more future oriented and more concerned with education that is employee training.

24. NEED FOR EXECUTIVE DEVELOPMENT It helps managers to acquire k nowledge, s kills and abilities (KSAs) required to grapple with complex changes in environment, technology and processes. They can have a better grip over market forces and get ahead of others in the race in a confident manner.

25. Contd… Developmental efforts help executives to realise their own career goals and aspirations in a planned way. Executives can show superior performance on the job. By handling varied jobs of increasing difficulty and scope, they become more useful, versatile and productive.

26. Contd… Executive development programs help managers to broaden their outlook, look into various problems dispassionately, examine the consequences carefully and discharge their responsibilities taking a holistic view of the entire organisation.

27. MANAGEMENT DEVELOPMENT METHODS Management development programs help in acquiring and developing different types of managerial skills and knowledge. There are different types of techniques acquired to develop various types of managerial skills and knowledge.

28. Contd… These are: Decision-Making Skills In basket Business games Case study Interpersonal skills Role play Sensitivity training Behaviour modelling

29. Contd… Job Knowledge On the job experiences Coaching Understudy Organisational Knowledge Job rotation Multiple management

30. Contd… General Knowledge Special courses Special meetings Special readings Specific Individual Needs Specific projects Committee assignments

31. DECISION MAKING SKILLS The main job of a manager is to make both strategic and routine decisions. His ability to take effective decisions can be enhanced by developing decision making skills through various techniques.

32. Contd… In-basket: In it, the participant is given a number of business papers such as memoranda, reports and telephone messages. These call for actions ranging from urgent to routine handling. The participant is required to act on the information contained in these papers.

33. Contd… Business games: Simulations that represent actual business situations are known as business games. It involves two or more hypothetical organisations competing in a given product market. The participants are assigned such roles as MD, GM, Manager etc.

34. Contd… They make decisions affecting price levels, production volume and inventory levels. Participants are able to see how their decisions affect the other group and vice-versa.

35. Contd… Case Study: It employs simulated business problems for trainees to solve. The individual is expected to study the information given in the case and make decisions based on the situation. When cases are meaningful and are similar to work related situations, trainees can certainly improve their decision making skills and problem solving abilities.

36. INTERPERSONAL SKILLS A manager can achieve results only when he is able to put individuals on right track. Managerial skills in the area of interpersonal relations can be enhanced through various techniques.

37. Contd… Role Play: In it, some problem- real or imaginary, involving human interaction is presented and then spontaneously acted out. It develops interpersonal skills among participants. They learn by doing things.

38. Contd… Sensitivity Training: This is a method of changing behaviour through unstructured group interaction. Sensitivity training is sought to help individuals towards better relations with others. The primary focus is on reducing interpersonal friction.

39. JOB KNOWLEDGE In addition to decision making skills and inter-personal skills, managers must also possess job knowledge to perform their job effectively. Trainers acquire job knowledge through on the job experience, coaching and understudy.

40. Contd… On the job experience: Most widely used. This is especially useful for certain groups like scientific and technical personnel. The success of these techniques depends on the immediate supervisor and his teaching abilities.

41. Contd… Behavior Modelling: This is an approach that demonstrates desired behavior, gives trainees the chance to practice and role play those behaviors and receive feedback.

42. Contd… Coaching: In it, the trainee is placed under a particular supervisor who acts as an instructor and teaches job knowledge and skills to the trainee. He tells him what he wants him to do, how it can be done and follows up while it is being done and correct errors.

43. Contd… He may also ask them to tackle some complex problems and participate in decision making. Understudy: An understudy is a person who is in training, to assume at a future time, the full responsibility of the position currently held by his supervisor. This method supplies the organisation a person with as much competence as the supervisor. Chosen by head of a particular department.

44. Contd… The head then teaches what all the job involves. The superior involves him in decision making by discussing the daily operating problems as well.

45. ORGANISATIONAL KNOWLEDGE Managers should also possess knowledge of various jobs, products, markets, finances, creditors of the organisation. The techniques for it are job rotation and multiple management.

46. Contd… Job Rotation: The transferring of executives from job to job and from department to department in a systematic manner, so as to give them the required diversified skills and a broader outlook. The management should provide a variety of job experiences for those judged to have the potential higher ranks before they are promoted.

47. Contd… Multiple Management: It is a system in which permanent advisory committees of managers study problems of the company and make recommendations to higher management. It is also called a junior board of executives.

48. Contd… These committees discuss the actual problems and different alternative solutions after which the decisions are taken.

49. GENERAL KNOWLEDGE GK is important as the external environment interacts with and influences the business. GK can be acquired through special courses, special meetings, special readings.

50. Contd… Special Courses: Like workshops or executive development programs organised by the institutes, universities and colleges. Special Meetings: Organised in consumer forums, voluntary organisations etc. Special Readings: Articles published by various journals etc.

51. SPECIFIC INDIVIDUAL NEEDS Some trainees may be weak in some areas. Such trainees are provided with special facilities for development. These include special projects and committee assignments.

52. Contd… Special Projects: In it, a trainee is put on a project closely related to the objectives of his department. Committee Assignment: An ad-hoc committee is appointed to discuss, evaluate and offer suggestions relating to an important aspect of business. Other off the job methods may be: Conferences, Lectures, Group Discussions etc.

53. CAREER PLANNING AND DEVELOPMENT

54. Introduction Traditionally, career development referred to programs offered by organizations to help employees advance within the organization. Today, each individual must take responsibility for his or her career.

55. Introduction Organizations now focus on matching the career needs of employees with the requirements of the organization . While many organizations still invest in their employees, they don’t offer career security and they can’t meet the needs of everyone in a diverse workforce.

56. What is a Career? Definition Pattern of work-related experiences that span the course of a person’s life. Reflects any work, paid or unpaid. Broad definition helpful in today’s work environment where employees and organizations have diverse needs.

57. What is a Career? Individual versus Organizational Perspective Organizational career planning – Developing career ladders, tracking careers, providing opportunities for development. Individual career development – Helping employees identify their goals and steps to achieve them.

58. What is a Career? Career Development versus Employee Development Career development looks at the long-term career effectiveness and success of organizational personnel. Employee training and development focuses on performance in the immediate or intermediate time frames.

59. What is a Career? Value for the Organization Ensures needed talent will be available. Improves the organization's ability to attract and retain talented employees. Ensures that minorities and women get opportunities for growth and development. Reduces employee frustration. Enhances cultural diversity. Promotes organizational goodwill.

60. What is a Career? Value for the Individual Individuals’ external career success is measured by criteria such as: progression up the hierarchy, type of occupation, long-term commitment, and income. Internal career success is measured by the meaningfulness of one’s work and achievement of personal life goals.

61. What is a Career? Mentoring and Coaching Effective coaches give guidance through direction, advice, criticism, and suggestion in an attempt to aid the employee’s growth. Mentors are typically senior-level employees who: support younger employees by vouching for them answering for them in the “highest circles” introducing them to others advising and guiding them through the corporate system

62. What is a Career? Mentoring and Coaching Disadvantages include: tendencies to perpetuate current styles and practices reliance on the coach’s ability to be a good teacher Considerations for organizations: coaching between employees who do not have a reporting relationship ways to effectively implement cross-gender mentoring

63. Traditional Career Stages

64. Traditional Career Stages Exploration Includes school and early work experiences, such as internships. Involves: trying out different fields discovering likes and dislikes forming attitudes toward work and social relationship patterns

65. Traditional Career Stages Establishment Includes: search for work getting first job getting evidence of “success” or “failure” Takes time and energy to find a “niche” and to “make your mark”.

66. Traditional Career Stages Mid-Career Challenged to remain productive at work. Employee may: continue to grow plateau (stay competent but not ambitious) deteriorate

67. Traditional Career Stages Late career Successful “elder states persons” can enjoy being respected for their judgment. Good resource for teaching others. Those who have declined may experience job insecurity. Plateauing is expected; life off the job increases in importance.

68. Traditional Career Stages Decline (Late Stage) May be most difficult for those who were most successful at earlier stages. Today’s longer life spans and legal protections for older workers open the possibility for continued work contributions, either paid or volunteer.

69. Career Choices and Preferences Good career choice outcomes provide positive self-concept and opportunity to do work we think is important.

70. Career Choices and Preferences Holland Vocational Preferences Three major components People have varying occupational preferences If you think your work is important, you will be a more productive employee You will have more in common with people who have similar interest patterns

71. Career Choices and Preferences The Schein Anchors Personal value clusters determine what is important to individuals. technical-functional competence managerial competence security-stability creativity autonomy-independence Success of person-job match determines individual’s fit with the job.

72. Career Choices and Preferences Jung and the Myers-Briggs Typologies Four personality dimensions: Extraversion-Introversion Sensing-Intuitive Thinking-Feeling Judging-Perceiving

73. Career Choices and Preferences Jung and the Myers-Briggs Typologies Assessed by the Myers-Briggs Type Indicator (MBTI) and identify 16 different personality types. Job characteristics can be matched to individual preferences.

74. Enhancing Your Career The individual holds primary responsibility for his/her career. Suggestions on how to do that are:

75. CAREER DEVELOPMENT Career Development consists of the personal actions one undertakes to achieve a career plan. Career Development and Employee Development are different. Career development looks at the long term career effectiveness of employees whereas employee development focuses on effectiveness of an employee in the immediate future. The actions for career development may be initiated by the individual himself or by the organisation.

76. INDIVIDUAL CAREER DEVELOPMENT Career progress and development is largely the outcome of actions on the part of an individual. Important steps are: Performance: Career progress rests largely on performance. If the performance is sub-standard, even modest career goals cannot be achieved. Exposure: Career development comes through exposure, which implies becoming known to those who decide promotions, transfers and other career opportunities.

77. Contd… Networking: It implies professional and personal contacts that would help in striking good deals outside (eg. Lucrative job offers, business deals.) Leveraging: Resigning to further one’s career with another employer is known as leveraging. However, jumping the jobs frequently may not be a good career strategy in the long run.

78. Contd… Loyalty to Career: Companies such as WIPRO, NIIT, Infosys (all IT companies, where the turnover ratio is very high) have come out with a lucrative, innovative compensation packages in addition to employee stock option plans for those who remain with the company for a specified period.

79. Contd… Mentors and Sponsors: A mentor is, generally an older person in a managerial role offering informal career advice to junior employee. They act as Role Models. A sponsor is someone in the organisation who can create career development opportunities.

80. Contd… Key Subordinates: Qualified and knowledgeable subordinates, often extend invaluable help that enables their bosses to come up in life. Expand Ability: Employees who are career conscious must prepare themselves for future opportunities that may come their way internally or externally by taking a series of proactive steps (Eg. Attending a training program, acquiring a degree, updating skills in an area.)

81. ORGANISATIONAL CAREER DEVELOPMENT The assistance from managers and HR department is equally important in achieving individual career goals and meeting organisational needs. Tools and activities for this purpose are: Self Assessment Tools: Here the employees go through a process in which they think through their life roles, interests, skills and work attitudes and preferences. They identify career goals, develop suitable action plans and point out obstacles that come in the way.

82. Contd… Individual Counselling: Employee counselling is a process whereby employees are guided in overcoming performance problems. It is usually done through face to face meetings between employee and counsellor or coach. Information Service: Employment opportunities at various levels are made known to employees through information services of various kinds. Records of employee’s skills, knowledge, experience and performance indicate the possible candidates for filling up such vacancies.

83. Contd… For compiling and communicating career related information to employees organisations basically use four methods: Job Posting System, Skills Inventory, Career Ladders and Career Paths and Career Resource Center. Employee Assessment Programme: Initially a new recruit is informed about career policies and procedures of the company. Formal orientation programmes are used to educate employees on career programmes, career paths and opportunities for advancement within the company.

84. Contd… Several assessment programmes are also used to evaluate the employees’ potential for growth and development in the organisation. They include assessment center, in which a number of performance simulation tests and exercises are used to rate a candidate’s potential, psychological testing, promotability forecasts and succession planning.

85. Contd… Employee Developmental Programme: These consists of skill assessment and training efforts that organisations use to groom their employees for future vacancies. Seminars, workshops, job rotations and mentoring programmes are used to develop a broad base of skills as a part of such developmental activities.

86. Contd… Career Programmes for Special Groups: In recent years there is a growing evidence regarding dual career families and growing tension owing to their inability to reconcile the differences between family roles and work demands. Therefore organisations are providing a place and a procedure for discussing such role conflicts and coping strategies. They are coming out with schemes such as part time work, long parental leave, child care centers, flexible working hours and promotions and transfers in tune with the demands of dual career conflicts.

87. PERFORMANCE APPRAISAL

88. BOOKS Human Resource Management: Biswajit Pattanaik Personnel/Human Resource Management: Decenzo and Robbins Human Resource Management: Mirza.S. Saiyadin Managing Human Resources: Wayne. F. Cascio Human Resource Management: Dessler

89. PERFORMANCE APPRAISAL Performance Appraisal is used by all organisations for various purposes. The main issue being what should be the criteria to appraise performance. All appraisals involve judgments that are not always fair, organisations, therefore, use techniques and tools to measure performance as objectively as possible. Besides a good technique, successful performance appraisal requires a consistent approach, clear standards and bias free ratings.

90. Contd… If performance is to be improved, the employees’ must be given feedback on their performance and advice on how to improve. Performance evaluation is the process of deciding how employees do their jobs. Performance here means the degree of accomplishment of the tasks that make up an individual’s job. It indicates how well an individual is fulfilling the job requirements.

91. Contd… Performance is always measured in terms of results. DEFINITION: Performance Appraisal is a method of evaluating the behaviour of employees in the workspot, normally including both the qualitative and quantitaive aspects of job performance. It is a systematic and objective way of evaluating both work related behavior and potential of employees. It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally, establishing a plan for improvement.

92. FEATURES It is systematic process involving three steps: Setting work standards Assessing employee’s actual performance relative to these standards Offering feedback to the employees so that he can eliminate deficiencies and improve performance in course of time. The appraisal is carried out periodically, according to a definite plan. It is a future oriented activity showing the employee where he is wrong and the way for improvement.

93. Contd… Its focus is on employee development. It forces managers to become coaches rather than judges.

94. OBJECTIVES Performace Appraisal (PA) could be taken for either evaluating the performance of employees or for developing them. The evaluation is of two types: Telling the employee where he stands Using the data for personnel decisions concerning pay, promotions etc. The developmental objectives focus on finding individual and organisational strengths and weaknesses, developing healthy superior subordinate relationships and offering appropriate counselling for future development of the employee.

95. Contd… It serves several useful purposes: Compensation decisions: It is the heart of the idea that raises may be based on merit rather than seniority. Promotion decisions: When merit is the basis for reward, the person doing best job receives promotion. Training and development programs Feedback: It tells him where to improve to climb the organisational ladder.

96. WHO APPRAISES The appraiser may be person who has thorough knowledge about the job content, contents to be appraised, standards of contents and who observes the employees while performing a job. He should be capable of determing what is more important and what is relatively less important. He should give unbiased judgements. Typical appraisers are: Supervisors, peers, Subordinates, employees themselves and users of service and consultants.

97. Contd… Supervisors: They include supervisors of the employee, other superiors having knowledge about the work of the employee and departmental heads or managers. The general practice is that immediate superiors appraise the performance, which in turn is reviewed by the departmental head or manager. Peers: It may be reliable if the work group is stable over a long period of time and performs tasks that require interaction.

98. Contd… Subordinates: Superiors rated by subordinates is being used in most of the organisations. Self Appraisal: Since employee development means self development, employees who appraise their own performance may be highly motivated and their best judge. Users of services: Performance in service organisations relating to behaviors, promptness, speed in doing the job and accuracy can be better judged by the users of that particular service. Consultants: They may be called when the employees or employers do not trust the supervisory appraisal and management does not trust the self appraisal etc.

99. WHEN TO APPRAISE? Informal appraisals are conducted whenever possible, but, systematic appraisals are conducted on a regular basis, e.g.. Every six months or annually.

100. PERFORMANCE APPRAISAL PROCESS It is planned, developed and implemented through a series of steps. These are : Establish Performance Standards: It requires performance standards, which serves as a benchmark against which performance is measured. The performance standards or the goals must be developed after a thorough analysis of the job, and must be written down.

101. Contd… Communicate the Standards: It involves at least two parties; the appraiser and the appraisee. Both are expected to do certain things. The appraiser should prepare job descriptions clearly; help the appraisee set his goal targets Measure Actual Performance: After the performance standards are set and accepted, the next step is to measure actual performance. Performance measures- to be helpful- must be easy to use, reliable and report on the critical behaviours that determine performance.

102. Contd… Compare actual performance with standards and discuss the appraisal: The assessment of another person’s contribution and ability is not an easy task. The appraisal has serious emotional overtones as it affects the self esteem of the appraisee. Taking corrective action, if necessary: It is of two types: Immediate action sets things right and gets things back on track whereas the basic corrective action gets to the source of deviations and seeks to adjust the difference permanently.

103. METHODS OF PERFORMANCE APPRAISAL It can be classified into three categories: Individual Evaluation Methods Multiple Persons Evaluation Methods Other Methods

104. INDIVIDUAL EVALUATION METHODS Confidential Reports Essay Evaluation Critical Incidents Checklists Graphic Rating Scale Behaviorally Anchored Rating Scale Forced Choice Method MBO

105. MULTIPLE PERSON EVALUATION METHODS Ranking Paired Comparison Forced Distribution

106. OTHER METHODS Group Appraisal HRA Assessment Centre Field Review

107. INDIVIDUAL EVALUATION METHOD Confidential Report : Descriptive Report prepared at the end of the year. Prepared by the employee’s immediate supervisor. The report highlights the strengths and weaknesses of employees. Prepared in government organizations. Does not offer any feedback to the employee.

108. Contd… Essay Evaluation : The rater is asked to express the strong as well as weak points of employee’s behavior. The rater considers the employee’s : Job knowledge and potential understanding of company’s programs, policies, objectives etc. Relation with co-workers and supervisors. Planning, organizing and controlling ability. Attitude and perception.

109. Contd… This method has the following limitations: Highly subjective. Supervisor may write biased essay. Difficult to find effective writers. A busy appraiser may write the essay hurriedly without assessing properly the actual performance of the worker. If the appraiser takes a long time it becomes uneconomical from the view point of the firm.

110. Contd… Critical Incident Technique : Manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents represent the outstanding or poor behavior of the employees. The manager periodically records critical incidents of employee’s behavior.

111. Contd… Limitation of this technique are: Negative incidents may be more noticeable than positive incidents. Supervisors have a tendency to unload a series of complaints about incidents. Results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned who may be too busy or forget to do it.

112. Contd… Checklist : A checklist is a set of objectives or descriptive statements about the employee and his behavior. Under weighted checklist, value of each question may be weighted. Example: Is the employee really interested in the task assigned? Yes / No Is he respected by his colleagues? Yes / No

113. Contd… Graphic Rating Scale : A form is used to evaluate the performance of the employees. A variety of traits may be used in this device, the most common being quality and quantity of work. Easy to understand and use. Permits statistical tabulation of scores of employees.

114. Contd… Behaviorally Anchored Rating Scale : Combination of rating scale and critical incidence. Steps: Collect critical incidents. Identify performance dimensions. Reclassification of incidents. Assigning scale values to incidents. Producing the final instrument.

115. Contd… Forced Choice Method : This method uses several sets of paired phrases, two of which may be positive and two negative. The rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker. Favorable qualities earn plus credit and unfavorable ones earn the reverse.

116. Contd… Management by Objectives (MBO) : MBO emphasizes collectively set goals that are tangible, verifiable, and measurable. Focuses attention on goals rather than on methods. Concentrates on Key Result Areas (KRA) Systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals

117. Contd… Key Elements Of MBO : Arranging organizational goals in a means-ends chain. Engaging in joint goal setting. This process has the following steps: Identify KRAs. Define expected results. Assign specific responsibilities to employees. Define authority and responsibility relationship. Conducting periodic progress review. Conducting annual performance review.

118. MULTIPLE PERSON EVALUATION METHODS Multiple Person Evaluation Methods : Ranking method. The evaluator rates the employee from highest to lowest on some overall criteria. Paired comparison method. Each worker is compared with all other employees in a group. For several traits paired comparisons are made, tabulated and then rank is assigned to each worker This method is not applicable when the group is large.

119. Contd… Forced Distribution Methods : The rater is asked to appraise the employee according to predetermined distribution scale. Two criteria used for rating are: job performance and promotability. A five point performance scale is also used without mentioning any descriptive statements. The worker is placed between two extremes of “good” and “bad” performance.

120. Contd… Group Appraisal : Employee is appraised by a group of appraisers. The group consists of immediate supervisor of the employee. Other supervisors who have close contact with the employee’s work, manager or head of the departments. Consultants or Clients

121. Contd… Field Review Technique : The appraiser goes to the field and obtains the information about work performance of the employee by way of questioning the said individual, his peer group, and his superiors 360 o Appraisal System : It is a systematic collection and feedback of performance data on an individual or group, derived from a number of stakeholders. Data is gathered and fed back to the individual participant in a clear way designed to promote understanding, acceptance and ultimately behavior.

122. Contd… Appraisal Interview and Feedback - Let the Employee Know Where He Stands : To help employees do a better job by clarifying what is expected of them. To plan opportunities for development and growth. To strengthen the superior-subordinate working relationship by developing mutual agreement of goals. To provide an opportunity for employees to express themselves on performance related issues.

123. Contd… Human Resource Accounting: It is a sophisticated way to measure in (financial terms) the effectiveness of personnel management activities and the use of people in organisation. It is the process of accounting for people as an organisational resource. It tries to place a value to human resources as assets and not expenses.

124. Contd… Assessment Centre: It was first applied in German army in 1930. It is not a technique of performance appraisal but a system or organisation, where assessment of several individuals is done by various experts using various techniques.

125. OBSTACLES Judgement Errors: People often commit mistakes while judging others. There are various types of biases and judgement errors: first impression, Halo, Horn effect, Leniency, Central tendency, Stereotyping, Recency effect. Poor Appraisal Forms: It may be influenced by following factors: The rating scale may be quite vague and unclear. Rating form may ignore important aspects of job performance and contain irrelevant dimensions. The forms may be too long and complex.

126. DESIGNING EFFECTIVE PERFORMANCE APPRAISAL SYSTEM It should possess the following essential characteristics: Reliability and Validity, job relatedness, standardisation, practical viability, legal sanction, training to appraiser, open communication, employee access to results.

127. PERFORMANCE APPRAISAL IN INDIAN ORGANISATIONS There are three different approaches for carrying out performance appraisal. Employers can be appraised against: Absolute standards, where employee’s performance is measured against some established criteria. Relative standards, where the subjects are compared against other individuals. Objectives, where the employees are evaluated by how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of their job.

128. Contd… Hughes Escorts: It uses a competency based performance enhancement program. Each position in the organisation is defined in terms of 23 key competencies, categorised into four groups: attitude based, knowledge driven, skill centered and value based. The company uses these competencies to measure shortfalls and provide relevant training inputs. This is done to both maximise productivity and make employees aware of their professional standing.