Chapter 4 - Employee Development

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HUMAN RESOURCE MANAGEMENT Shah M Saad Husain

Chapter 4

Employee Development


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Performance Appraisal1. Performance Appraisal: The identification, measurement, and

management of human performance in organizationIdentification means determining what areas of work themanager should be examining when measuringperformance.

Measurement, the centerpiece of the appraisal system,entails making managerial judgments of howgoodor bad employee performance was.

2. Appraisal must take a future-oriented view of what workers cando to achieve their potential in the organization.

3. Supervisors must provide workers with feedback and coachthem to higher levels of performance.


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EmploymentDecisions

Diagnosis of Organizational

Problems

Employee

Feedback

Purposes of Performance

Appraisal System

Criteria in Test

ValidationObjectives for

Training Programs

Purposes of Performance

Appraisal Systems


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A model of Performance Appraisal

identification

measurement

management


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Job AnalysisPerformance

Standards

Performance Appraisal

Describes work and Personal

requirements of

a particular job

Translate jobRequirementsinto levels of

acceptableunacceptable performance

Describes the jobrelevant strengthand weaknesses

of each individual

Relationship of performance standards tojob analysis and performance appraisal


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Uses of Performance Appraisal1. Organizations conduct appraisals for

administrative and developmental purposes: Promotions Increments, Rewards Terminations TNA Employee Training + Development Career Planning Succession Planning Transfers, Job Enrichment, Job Rotation, Multiskill Development Aligning individual performance to organizational goals


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Benefits of Performance Appraisals Employer Perspective

1. Individual differences in performance can make a difference to companyperformance2. Documentation of performance appraisal and feedback needed for legal

defense3. Appraisal provides a rational basis for increments, bonus or merit systems4. Appraisal dimensions and standards can help to implement strategic goals and

clarity performance expectations.5. Providing individual feedback is part of the performance management process

Employee Perspective1. Performance feedback is needed and desired2. Improvement in performance requires assessment

3. Fairness requires that differences in performance levels across workers bemeasured and have an effect on outcomes4. Assessment and recognition of performance levels can motivate workers to

improve their performance


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Identification of Performance Dimensions

1. Dimension: An aspect of performance that determines effective jobperformance2. Identification of Performance Dimensions is the important first step in the

appraisal process. If a significant dimension is missed, employee moraleis likely to suffer.

3. If an irrelevant or trivial dimension is included, employees may perceivethe whole appraisal process as meaningless4. What is measured should be directly tied to what the business is trying to

achieve5. Performance dimensions are identified by Job Analysis

6. Organizations identify performance dimensions based on the StrategicObjectives of the organization


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Measuring Performance

1. Measuring employee performance involves assigninga number to reflect anemployees performance onthe identified characteristics or dimensions.

2. Technically, numbers should be related to ranking,such as excellent, good, average and poor .

3. It is often difficult to quantify some performancedimensions e.g.creativity .


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Measuring Tools1. Relative and Absolute Judgments: Measures of employee performance

can be classified on the basis of relative or absolute judgement. Relative Judgment: supervisors compare anemployees performance

to the performance of other employees doing the same job

Absolute Judgment: supervisors make judgments about anemployees performance based solely on performance standards

2. Trait Appraisal Instrument: An appraisal tool that asks a supervisor tomake judgments about worker characteristics that tend to be consistent andenduring.

3. Behavioral Appraisal Instrument: An appraisal tool that asks managers toassess a workersbehaviors

4. Outcome Appraisal Instruments: An appraisal tool that asks managers toasses the results achieved by workers.

5. 360 degree appraisal


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Challenges to Effective Performance Measurement 1. Rater errors and bias2. The influence of liking3. Organizational politics4. Whether to focus on the individual or the group

5. Infrequent performance appraisal and feedback6. Immature performance appraisal system7. Inadequate Transparency and communication with employees8. Poor utilization of performance appraisal results for employee

development and organizational development.9. Inadequate correlation of performance dimensions with

appraisal ranking10. Legal issues


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Managing Performance

1. The effective management of humanperformance in organizations requires morethan formal reporting and annual ratings

2. A complete appraisal process includes informalday-to-day interactions between managers andworkers as well as formal face-to-faceinterviews

3. The ratings themselves are important, but evenmore critical is what managers do with them


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The Appraisal Interview1. Upon completing the performance rating, the supervisor conducts an

interview with the employee to provide feedback2. When money is at stake, the manager is much more likely to take the

tasks of appraisal and feedback seriously.

3. The best management practice is to combine development, career planning and salary discussion into one performance review

4. Managers who have to justify a low salary increase will probably taketime to carefully support their performance assessment, with moredetailed feedback, making the appraisal session more valuable to theemployee

5. Inclusion of salary discussion can energize the performance discussion6. Feedback, goal setting, and making action plans can become a hollow

and meaningless exercise when salary implications are not included inthe session


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Performance Improvement1. Supervisors who manage performance effectively generally share

four characteristics, they: Explore the causes of performance problems Direct attention to the cause of problems Develop an action plan and empower workers to reach a solution Direct communication of performance and provide effective

feedback

2. 3600 degree Feedback: The combination of peer, subordinate, andself-appraisal

3. With so many more employees reporting to one supervisor, it is justnot possible for the supervisor to gaugeeveryones work accurately

4. The old system where the supervisor alone reviews performance isout of sync withtodays emphasis on teamwork and participativemanagement

5. Feedback from one source is easy to discount, but a message frommany sources is hard to ignore


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Key Steps in Implementing 360 o Appraisal

For a successful 360o appraisal program

1. Top management should communicate the goals of and need for 360o appraisal.

2. Employees and managers are involved in the development of theappraisal criteria and appraisal process.

3. Employees are trained in how to give and receive feedback

4. Employees are informed of the nature of the 360o appraisalinstrument and process

5. The 360o system undergoes pilot testing in one part of theorganization

6. Management continuously reinforces the goals of the 360oappraisal and is ready to change the process when necessary


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Training Employees

1. Training: process of providing employees withspecific skills or knowledge to help them correctdeficiencies in their current performance

2. Development: An effort to provide employees withthe abilities the organization will need in the future.

3. Training Versus Development :

Training Development

FocusScopeTime FrameGoal

Current jobIndividual employeesImmediateFix current skill deficit

Current and future jobsWork group or organizationLong termPrepare for future work demands


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Phases of Training

Develop Criteria

ASSESSMENTPHASE

TRAINING AND DEVELOPMENTPHASE

EVALUATIONPHASE

Pretest Trainees

Monitor Training

Evaluate Training

Evaluate Transfer

Feedback

Evaluate Transfer

Select TrainingMedia and Learning

Principles

AssessInstructional

Need

DeriveObjectives


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Assessing Training Needs

Several levels of analysis for determining the needs that trainingcan fulfill:

1. Organization analysis focuses on identifying wherewithin the organization training is needed. Important toanalyze training needs required to achieve organizationalobjectives and strategies.

2. Operations analysis attempts to identify the content of training what an employee must do in order to performcompetently

3. Individual analysis determines how well each employeeis performing the tasks that make up his or her job


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Training Needs Assessment ModelENVIRONMENT

Unions

EconomyLaws

ORGANIZATION ANALYSIS

ObjectivesResources Allocation of

resources

OPERATIONS ANALYSIS

Specificbehavior:What anemployeemust do inorder toperform jobeffectively.

INDIVIDUAL ANALYSISKnowledge

Skills Attitudes

TrainingNeed?

Alternatesolutions

Alternatesolutions

TrainingNeed?

Alternatesolutions

TrainingNeed?

(a) Currentlevel of performance

(b) Desiredlevel of performance

Yes

No

No

Yes

Training Cycle

Yes

No


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Objectives of Training (Example)

Increase interpersonal sensitivity + employee contribution

Listening skills

1. Understanding and analyzing differingview points

2. Supervisor summarizes key pointsof action plan at end of discussion.

3. Supervisor does not interrupt

the speech of others4. Supervisor provides an estimate of

how long before a request can be filled

Feedback skills

1. Supervisor describes the issuesin concrete terms.

2. Supervisor explains the Action Plan indetail

3. Supervisor attacks the problem,not the person

4. Supervisor provides feedback ina timely fashion

Overall

Objective

Specific ContentDimensions

Example BehavioralObjectives


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Types of Training1. Training approaches vary by location, and type.2. On-the-job training (OJT) approach, the trainee works in the actual

work setting, usually under the guidance of an experienced worker,supervisor, or trainer.

3. Job Rotation allows employees to gain experience in different kinds of jobs in the organization. It is often used to give future leadership a broadbackground.

4. Apprenticeships, OJT programs are typically associated with skilled

trades, (from the old practice of having the young learn a trade from anexperienced worker)5. Peer Training6. Cross Functional Training7. Multiskill Training8. Monitoring coaching and grooming9. Retraining to keep pace with job changes10. Learning as a Project/Team member 11. Organizations maintain aTraining Resource File


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Training Methods

Slides and Videotapes

Teletraining

Computers Simulations

Virtual Reality

Classroom instruction Role-Plays

Reading, Data Banks Plant/Location Visits Conferences, Exhibitions Panel, Discussions Distant Learning Tutoring Orientation Understudy, Grooming


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Training Needs Assessment

1. The need or Competency Deficit for each employee isidentified via a thorough assessment2. Specific training objectives are generated,Training

Content and Training Plan developed to achieve thoseobjectives

3. The criteria for assessing thetrainings effectiveness arealso based on the objectives identified in the assessmentphase

4. ATraining Calendar is developed for the whole company

and monitored monthly5. Training for Customer Service not only increases profitsbut also decreases lawsuits.


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The Evaluation Phase

1. In the evaluation phase of the training process, the effectiveness of the traininprogram is assessed, both for the short term and long term

2. A training program designed to increase workers efficiency is assessed by iteffects on productivity or costs.

3. The ROI of Training: calculating formula:

4. Plan ahead5. Determine what you will measure6. Design how the effectiveness of training will be assessed7. Convert nonmonetary measures to rupees terms.

(Training Benefits Training Costs)ROI = ---------------------------------------------------------- x 100Training Costs

Net Training Benefits= ----------------------------------------------------------- x 100

Training Costs


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A SO C A AG

Training Benefits Evaluation

$ 55 (average savings per job)x 55 (jobs per week)x 4 (number of weeks)

= $ 12,100 (benefits)- $ 5,355 (cost of training)

= $ 6,745 (net benefits)6.745

------------ = 1.26 = 126% ROI5,355

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Chapter 4 - Employee Development