Chapter 3

Managing Employee Performance and Training

Introduction
In today’s ever-growing industry, Training and
development (T/D) has become an integral part of any
organization’s policy.
Definition
Training as “ the act of enhancing the knowledge and
skill of an employee for accomplishing a specific
job”.
Training is an act of increasing the Knowledge & skill
of an employee for doing a particular job. It is to
develop skills that are usually needed to perform a
specific job.
Need & Importance of Training in today's world

Globalization:
* Global Business Expansion
* Exploring New Probable Markets
* New Corporate Culture
* Cross cultural avenues & tie – ups
* Off shoring of Jobs
Attracting & Retaining Talent.
Catering to customer satisfaction & Quality.
Change in Demography & Diversity of the Work
force.
Need for Leadership.
Increased value placed on Knowledge.
New Technology.
Economic Changes.
Training Objectives
1) Employee should find work interesting.
2) Employee should realize their own weaknesses and drawbacks.
3) Co-operation among the employees should increase.
4) The feeling of giving one’s best to the organization should be
inculcated.
5)Employees in times of difficulty should try to find out some
way by consulting friends or colleges instead of panicking.
6) Employee self confidence must be increased and also their
should be improvement in communication.
7) There should be better communication between
bosses –subordinate.
8) Employee should start planning for their day’s work.
9) Selfishness should be reduced and replaced by
teamwork.
10) The tendencies to hide one’s own mistakes and
drawbacks should be replaced by an awareness of
mistakes and the need to overcome them.
11) Negative attitude towards work should be replaced by the
positive attitude.
12) The tendency to think against the management should be
replaced by the willingness to understand the point of view of
the management.
13) To impart to new entrants the basic knowledge and skill they
need for an intelligent performance of definite tasks.
14) To assist employees to function more effectively in their
present positions by exposing them to the latest concepts,
information and techniques and developing the skills they will
need in their particular field.
15) To broaden the minds of senior managers by
providing them with opportunities for an inter-change
of experiences within and outside with view to correct
the narrowness of the outlook that may arise from
over specialization.
16) To build up of a second line of competent officers
and prepare them to occupy more responsible
positions.
Kinds of Training Programmes
Induction Training .
On the Job Training .
Training for Promotions .
Supervisory Training .
Management Development Training .
Trainers Training .
Major areas in which training is provided
1) Knowledge – the training in this area aims at helping the
trainee to learn to understand and to remember facts
information and principles.
2) Technical skills – the trainee is taught physical acts or action
like operating machine ,working with a computer, using
mathematical models to take decisions etc.
3) Social skills – the employees are provided opportunities to
acquire and sharpen such behavioral and human relation
skills as are necessary for improved inter personal
relationship, better teamwork and effective leadership.
4) Techniques – this involves teaching of application of
knowledge and skill to dynamic situations.
5) Attitudes – this involves attitudinal change towards increased
work commitment and a positive orientation towards the
organization and society. The basis of attitudes, and the
knowledge and skill with which to change them have to be
carefully diagnosed.
6) Experience – it cannot be taught in the class room. It is the
result of practicing the use of knowledge, skills technique and
attitudes over a period of time in different work situations.
Typical topics in Employee Training
Communication
Computer skills
Customer service
Diversity
Ethics
Human relations
Quality
Safety
New Technology
New employee Orientation
Five steps in Training
1) Prepare the employee
2) Tell him
3) Show him
4) Let him do
5) Check him
Training Process
Need Assessment –
Diagnoses present problem and future challenges to be
met through training and development.
Need assessment occurs at 2 levels
1) Individual Level
2) Group Level
Issues in Needs Assessment
1) Organizational Support –
-To implement the program successfully
-To minimize the disruptions
2) Organizational Analysis-
-examine the goals of the organization and the trends that are
likely to affect these goals.
3) Task and KSA Analysis-
To assess and identify what tasks are needed on each job and
which knowledge skills and abilities are necessary to
perform these tasks.
 4) Person analysis –
To determine which necessary KSAs have already been learnt by
the prospective trainee so that precious training time is not
wasted repeating what has already been acquired .Also,
employees who need to undergo training are identified at
this stage.
Benefits of Needs Assessment –
1) Trainers may be informed about the broader needs of the
trainees.
2) Trainers are able to pitch their course inputs closer to the
specific needs of the trainees.
3) Assessment makes training department more
accountable and more clearly linked to other human
resource activities, which may make the training
program easier to sell to line managers.
Consequences of absence of training need assessment-
Loss of business
Poorer-quality applicants
Increased overtime work
Constraints on business development
Need for job redesign
 Deriving Instructional Objectives –
Describes the objectives to be achieved by the trainee
upon completion of the training program.
Instructional objectives provide the input for designing
the training program as well as for the measures of
success( criteria ) that would help assess effectiveness
of the training program.
Responsibility for Training
The top management which frames the training policy.
The personnel department which plans, establishes & evaluates
various instructional programs.
Supervisors who implement & apply the developmental
procedure .
Employees who provide feedback, revision & suggestions for
corporate educational endeavors.
Designing Training and Development Program

While designing the T & D program Following issues

must be considered
✔ Who participate in training program?
✔ Who are the trainers ?
✔ What methods and techniques are to be used for
training?
✔ What should be level of training?
✔ What learning principles are needed?
✔ Where is the program conducted?
Steps in Training Program

Who are Who are the What methods

trainees? trainers? and technique?

What should be What principles

Where to conduct
the of
the program?
level of training? Learning?
Who are the trainees?
Self nomination
Recommendations of supervisors
By HR department itself
Who are the Trainers?
Immediate supervisors
Co-workers
Outside consultants
Faculty members at Universities
In-house & Outside Trainers
In-house:
HRD of the Organization itself provides the training.
It is handled by the Specialists.
Types of Training needs to be addressed, Development of
Training Schedule accordingly & the evaluation .
In this , system places a higher reliance on the Train the Trainer
method & then to be shipped out to various business units.
Outside Trainer’s:
Private Training & Consulting agencies or firms,
Professional associations, Colleges ,Universities
provide such products & services to Organization.
If the services provided by such avenues tend to be
effective as well as less costly in comparison to the
in-house services then the company tends to go for it
only.
In-house training must monitor the Outside training
providers as Bench markers as they are
the once who face tough Competition in the
Market.
Some of the key areas where Outside Training providers are
preferred as : New Programme Development, Specialized
Programme Development etc.
Budget or Cost of Training Programs
The Training Need Analysis is done as on the basis of which the
Programme Schedule, length of the Training or the duration is
to be estimated.
Next thing important is the amount of time it will take to
develop the Training Programme for delivery.
Some important Costs are:
Developmental Cost : Related to the development of the
Programme Schedule.
Direct Cost : Attributed to the delivery of training programme
as Travel, Media, Materials, Food & Beverage, Equipment
Rental etc…
Indirect Cost: If at all the Training is cancelled due to any
reason the cost of material used to develop the programme etc
… is to be bared.
Overhead Costs: For in-house training maintenance of training
equipments, Training facilities etc..If Outside Training is
provided then no such cost is there.
Participants Compensation: Those attending the training
schedule their salaries, benefits etc…
Evaluation Costs: Cost related to evaluating the training
imparted as.
Development of assessment tools, Time & money spent on
administering them, Analysis & preparation of reports,
Material & Travel cost if any…
Different Aids of Training Program
Divided into 3 categories
1) Mechanical
2) Electrical
3) Electronic
Mechanical

a) Hard boards – a Varity of wood ,glass and plastic boards are

available. Some of theses avoid problem of dust ,as erasable
ink pens are used .Some can also be put on pulleys against a
wall, so that more than one board can be used at time.
b) Flip chart boards – usually a tripod stand with regular board.
Large drawing sheets are clipped on. The trainer can write
on the sheet with different colour marker pens .As each page
is used ,it can be flipped over ,so that the trainer can write on
a fresh sheet .
Electrical
a) Electrical boards – The black or green boards made
of glass or plastic ,are operated by electrical switches .
b) Overhead projector- this operates with projector
screen and transparencies .
c) Films – A tremendous range of video films for
training is available in the market.
d) Audio Cassettes – recorded cassettes on various
training topics are available .
Electronic
a) Video cassettes –
b) Simulator –theses are devices to simulate the real world of
flights , manufacturing process etc. These are useful
particularly in technical training.
c) Audio-visual aids – serve as a very important ,effective and
useful tool for the leader or a lecturer to seek a quick and
better appeal and response from the trainee or the student .
d) Computers –
e) Internet -
 Methods of Training
1) On the Job Method
2) Off the Job Method

1)On the Job Method-

1) Coaching
2) Job Instruction
3) Vestibule Training
4) Demonstration and examples/Learning by seeing
5) Simulation
 2) Off-the Job Training-
1) Lectures
2) Conferences
3) Group Discussions
4) Case studies
5) Role-playing
6) Program Instruction
7) T-group training
1)On the Job Method-
Coaching
It is also referred as internship. The employee is trained
on the job by his immediate superior.
Merits -
The trainees learns on the actual equipment of his
job.
It is highly economical, as no additional personnel
or facilities are required for training.
 Demerits –
1) Learners are often subjected to distraction of a noisy shop or
office.
2) Low productivity ,particularly when the employee is unable to
fully develop his skills.
3) Trainee may not have freedom to expres his own views
2) Job Instruction –
This technique of training requires skilled trainers ,extensive job
analysis, training schedules and prior assessment of the job
knowledge of the trainee. This technique is also referred as
training through step-by-step learning. In this method all
necessary steps in the job are listed .These steps show “what “is
to be done, “how” it is to be done and “why” it is to be done.
Process of Job Instruction –
Preparation of the trainee for instruction like putting him at
ease, giving general description of job duties and
responsibilities.
Presentation of the instructions giving essential information
giving essential information in clear manner.
Having the trainee to ask try out the job to show that he has
understood the instructions.
Encouraging the trainee to ask questions and allowing the
trainee to work as part of the training.
 Merits –
1) This technique of training provides immediate feedback on
results.
2) The trainee gets additional practice when required, to ensure
quality work.
Demerits –
1) It requires a skilled trainer.

3)Vestibule Training-
It attempts to duplicate on the job situations in a company
classroom/ workshop. Theoretical training is given in the
classroom while practical work is conducted on the
equipment in workshop.
 It is a very efficient technique of training semi skilled
personnel such as machine operators ,testers ,etc.
many large organizations have a separate training
department with specially equipped classroom and
workshop.
Merits –
1) Training is given in a separate room ,distractions
are minimized.
2) It permits the trainee to practice during training
period without the fear of failure.
 Demerits –
1) An additional investment in equipment is necessary.
4) Demonstration and examples –
It is an effective technique .it is easier to show a person
how a person how to do a job than to tell him or ask
him to gather instruction from the reading material.
Demonstrations are often used in combination with
lectures ,pictures, text materials ,discussions.
5) Simulation –
Simulation technique has been used in aeronautical
industry. It is a technique which duplicates the actual
conditions encountered on a job.
Trainees interest and the employees motivation are high
in simulation exercises because the actions of a trainee
closely duplicate the “real job “conditions. This
method is essential in cases in which actual on-the-job
practice might result in a serious injury, a costly
errors. This technique is very expensive one.
2) Off-the-Job Training –
1)Lectures –
The simplest way of imparting knowledge to trainees is
by lectures. Concepts or principles, attitudes ,theories
and problem solving abilities can be taught. The
lecture method can be useful when large groups are to
be trained within a short time ,thus reducing the cost
per trainee. Lectures are enlivened with discussions
,film shows, case studies ,role-playing and
demonstrations .Audio-visual aids enhance their
value.
 Merits –
1) It is simple, efficient and less costly.
2) Upcoming training programs or organizational changes can be
communicated to large number of employees by adopting
this method. This reduces anxiety among the employees.
Demerits –
1) The learners are not active participant. It is one way
communication.
2) A clear and vigorous verbal presentation requires a great
deal of preparation for which management personnel often
lack the time.
2) Conference Method –
Conference is a formal meeting, conducted according to
an organized plan, and the leader seeks to develop
knowledge and understanding by obtaining a
considerable amount of oral participation of the
trainees. Learning is facilitated by building up on
the ideas contributed by conferences.
 Merits –
1) It is an excellent method for development of conceptual
knowledge and reducing dogmatism. As various viewpoints
are presented ,it helps in modifying attitudes.
2) It is ideally suited for the purpose of analyzing problems and
issues and examining them from different perspectives.
Demerits-
1) It is limited to small group of 15-20 persons.
2) Irrelevant issues easily creep in.
 3) Seminar –
It is established method for training. The different ways in which
the seminar is conducted are:
a) It may be based on a paper prepared by one or more trainees
on a subject selected in consultation with the person in
charge of seminar. The trainers read their papers . This is
followed by a critical discussion.
b) It may be based on the statement made by the person in
charge of the seminar or on a document prepared by an
expert ,who is invited to take part in the discussion.
4) Case Studies-
A case is a written description of an event ,it is a
broad range of skills, it contains information regarding
many facets of the enterprise i.e. its history ,internal
and external environment, its operations etc.
The information given in the case may not be
sufficient to arrive at a decision ,however the manger
has to make reasonable assumption about things
which are unknown.
 A case study enables participants to develop a new
since of judgment ,analytical ability ,interpretative
capacity and a creative behaviour based on vision
and perspective.
Merits –
1) It promotes analytical thinking.
2) It encourages open-mindedness.
Demerits –
1)It may suppress the voice of average trainees, as only
those who are analytical and vocal will dominate
the session.
 5) Role-playing –
The trainee act out a given role as they would in a stage play. The
role players are informed of a situation and the respective
roles they have to play. Role playing basically covers topics
such as employee-employer relationships ,hiring, firing,
conducting a post-appraisal interview ,disciplining a
subordinate, making a representation to a customer etc.
Merits-
1) The outcome and feedback is known immediately.
2) The trainee participate in the entire proceedings and so they
take interest and are involved.
6. Programmed Instruction –
A programmed instruction involves breaking information down
into meaningful units and then arranging these in a proper way
to form a logical and sequential learning program or package .
Knowledge is imparted with use of a textbook or teaching aids
.
Merits -
1) Trainees learn at their own pace.
2) Instructors are not a key part in the training process except in
preparing the learning modules.
3) Material to be learnt is divided into smaller units and
so it is easy to set the pace for learning in a more
relaxed manner .
4) Immediate feedback is available.
5) Training can be imparted at any time or place . This
helps in reaching a large number of trainees.
6) There is a high level of learner motivation.
Demerits -
1) Only factual subject matters can be programmed .
Much will depend on how the trainees develop their
analytical skills and learn how to apply the
principles to actual situations.
2) Philosophical and attitudinal concepts and motor
skills can’t be taught by this method. The cost of
creating any such program is very high.
7) T-group Training :
This comprises audio-visual aids and planned reading
programmes. Through a regular supply of professional
journals or organizing gatherings , members are kept
informed of the latest developments in the particular field.
The more the participants digest , synthesize and assimilate
the matter , the better their capability to accept change. The
challenge for the management is in helping the participants
to transfer this new learning back to their work team .
Implementation of the training programme
Once the training program has been designed , it needs to be
implemented . Implementation is beset with certain problems .
In the first place , most managers are action –oriented and
frequently say they are too busy to engage in training efforts.
Secondly , availability of trainers is a problem . In addition to
processing communication skills , the trainers must know the
company's philosophy , it’s objective , it’s formal and informal
organizations , and the goals of the training programme.
Training and development requires a higher degree of creativity
than , perhaps any other personnel specialty.
Scheduling training around the present work is
another problem . How to schedule training without
disrupting the regular work ? There is also the
problem of record keeping about the performance of a
trainee during his or her training period . This
information may be useful to evaluate the progress of
the trained in the company.
Program implementation involves action on the
following lines-
Deciding the location and organizing training and other
facilities.
Scheduling the training program .
Conducting the program .
Monitoring the progress of trainees .
Evaluation of the program
The last stage in the training and development process
is the evaluation of results . Since huge sums of
money are spent on training and evaluation
development , how far the program has been useful
must be judged / determined . Evaluation helps
determine the results of the training and development
program . In practice , however , organizations either
overlook or lack facilities for evaluation .
The process of training evaluation is defined as “ any
attempt to obtain information on the effects of training
performance & to assess the value of training in the
light of that information”
Evaluation helps in controlling & correcting the
training programme.
Need for Evaluation
The main objective of evaluating the training programmes is to
determine if they are accomplishing specific training objectives
, that is correcting performance deficiencies . A second reason
of evaluation is to ensure that any changes in trainee
capabilities are due to the training program and not due to any
other conditions . Training programmes should be evaluated to
determine their cost effectiveness .
 Evaluation is useful to explain programme failure ,
should it occur. Finally m credibility of training and
development is greatly enhanced when it is proved that
the organization has benefited tangibly from it.
Principles of evaluation -
Evaluation of the training program must be based on
the following principles :
Evaluation specialist must be clear about the goals and
purposes of evaluation .
Evaluation must be continuous.
Evaluation must be specific.
Evaluation must provide the means and focus for trainers to
be able to appraise themselves , their practices and their
products .
Evaluation must be based on objective methods and
standards.
Realistic target dates must be set for each phas of the
evaluation process. A sense of urgency must be developed ,
but deadlines that are unreasonably high will result in poor
evaluation .
Criteria for evaluation
Training validity : Did the trainees learn during training ?
Transfer validity : What has been learnt in training , has it
been transferred on the job ? has it enhanced performance in
the work organization ?
Intra-organizational validity : Is performance of the new
group of trainees , for which the training program was
developed , consistent with the performance of the original
training group ?
Inter-organizational validity : Can a training program
validated in one organization ca be used successfully in
another organization ?
Five Levels of Evaluation

Reactions:- Trainees reactions to the overall usefulness of the

training including the coverage of the topics, the method of
presentations, the techniques used to clarify things often throw
light on the effectiveness of the programme
Learning:- In training programme trainers ability & trainees
ability are evaluated on the basis of quantity of content learned
& time in which it is learned & learners ability to use or apply
the content learned
Job behavior:- This evaluation includes the manner & extent to
which the trainee has applied his learning to his job
Organization:- This evaluation measures the use of training,
learning & change in the job behavior of the department
/organization in the form of increased productivity, quality,
morale.
Ultimate value:- It is the measurement of ultimate result of the
contributions of the training programme to the company goals
like survival, growth, profitability & to the individual goal like
development of personality.
Methods of Evaluation
Questionnaire:- Comprehensive questionnaire could
be used to obtain opinions, reactions, views of
trainees.
Tests:- Standard tests could be used to find out
whether trainees have learnt anything during & after
the training.
Interviews:- Interviews could be conducted to find the
usefulness of training.
Studies:- Comprehensive studies could be carried out
eliciting the opinions & judgments of trainers,
supervisors etc
Human resource factors:- It can be evaluated on the basis of
employee satisfaction which in turn can be examined on the
basis of decrease in attrition, absenteeism, accidents,
grievances, discharge, dismissals.
Cost benefit analysis:- The cost of training (cost of hiring
trainers, tools to learn, training centre, wastage, production
stoppage) could be compared with its value in terms of
improved learning, superior performance.
Feedback:- The training evaluator should follow the feedback
system sincerely to ensure effective implementation of the
feedback report.
 Performance Appraisal
Performance is always measured in terms of result
Evaluation is different from Judgment
Performance Appraisal
Definitions According to Newstrom,
“It is the process of evaluating the
performance of employees, sharing
that information with them and
searching for ways to improve their
performance’’.
Meaning Performance appraisal is the
step where the management finds out
how effective it has been at hiring and
placing employees . A “Performance
appraisal” is a process of evaluating
an employee’s performance of a job in
terms of its requirements.
P Purpose
E employment
R relationship
F Flexibility
O optimal performance
R Recognition and rewards
M Morale
Introduction
Performance Appraisal is essential to acquire and /or develop
technical ,managerial and behavioral knowledge ,skills and
abilities.

The process of performance appraisal helps the employee and

the management to know the level of employee’s performance
compared to the standard/predetermined level.
Definitions

It is the systematic evaluation of the individual with respect

to his or her performance on the job potential for
development.

Performance appraisal is a formal ,structured system of

measuring and evaluating an employee's job related
behaviors and outcomes to discover how and why the
employee is presently performing on the job and how the
employee can perform more effectively in the future so that
the employee ,organization ,and society all get benefit.
Performance Appraisal continues to be one of the most criticized
HR functions in organizations
Features

Performance appraisal is the systematic description of an employee's

job relevant strengths and weaknesses.

The basic purpose is to find out how well the employee is performing
the job and establish a plan of improvement .

Appraisals are arranged periodically according to definite plan.

Performance Appraisal is not job evaluation. It refers to someone is
doing the assigned job.

Job evaluation determines how much a job worth to the organization

and therefore what range of pay should be assigned to the job.

Performance Appraisal is a continuous process in every large scale

organization.
 Who Performs the Appraisal?
Immediate Supervisor
Higher Management
Self-Appraisals
Peers (Co-Workers)
Evaluation Teams
Customers
“360° Appraisals”
Supervisor Appraisal

Performance appraisal done by an employee’s manager and

often reviewed by a manager one level higher.
Self-Appraisal

Performance appraisal done by the employee

being evaluated, generally on an appraisal
form completed by the employee prior to the
performance review.
Subordinate Appraisal

Performance appraisal of a superior

by an employee, which is more
appropriate for developmental than
for administrative purposes.
Peer Appraisal

Performance appraisal done by one’s fellow

employees, generally on forms that are
complied into a single profile for use in the
performance interview conducted by the
employee’s manager.
Team Appraisal

Performance appraisal, based on TQM concepts, that

recognizes team accomplishment rather than individual
performance.
The 360º Appraisal Interview
Supervisor

Other Other
Superiors Superiors

Individual
Peers Staff Customers
Self-Assessment

Teams Teams

Sub-Ordinates
Performance Appraisal process
Performance Appraisal is planned
Establish performance standards
Communicate the standards
Measure actual performance
Compare actual performance with standards and discuss
the appraisals
Taking corrective action if necessary
Performance Appraisal Problems

Popularity Contest
disciplinary Implications
Stereotypes
Poor Training of Raters
 Types of Rating Errors
Leniency/Strictness Error
Define Anchors (Dimensions)
Force A Curve
Central Tendency
Reluctant to Give High/Low
Explain Need for Variability
Recent behavior Error
Last Action Halo
Encourage Frequent Evaluation
 Error of Central Tendency

Performance-rating error in which all employees are rated

about average.
 Leniency or Strictness Error

Performance-rating error in which the appraiser tends to give

employees either unusually high or unusually low ratings.
Recent behavior Error

Performance-rating error in which the appraisal is based

largely on the employee’s most recent behavior rather than
on behavior throughout the appraisal period.
Similar-To-Me Error

Performance-rating error in which an appraiser inflates the

evaluation of an employee because of a mutual personal
connection.
 Methods of Performance appraisal
Modern method
Traditional Method
Paired comparison Assessment Center
Appraisal by Results or
Graphic Rating scales
Management by Objectives
Forced choice Description method
Human Asset Accounting
Forced Distribution Method
Behaviorally Anchored Rating
Checks lists scales
Free essay method Traditional Methods Modern
Critical Incidents Methods
Group Appraisal
Field Review Method
Confidential Report
Ranking
Companies using 360 degree appraisal
Wipro
Infosys
Reliance Industries
Maruti Udyog
Appraisal Training Programs Needs

1. Explain Objectives
2. Review the Instrument
3. Define the Performance Standards
4. Understand Typical Subjective Errors
5. Teach Interviewing Skills
Scheduling the Performance Appraisal
1. Schedule the review and notify the employee ten days or two
weeks in advance.
2. Ask the employee to prepare for the session by reviewing his
or her performance, job objectives, and development goals.
3. Clearly state that this will be the formal annual performance
appraisal.
Preparing for the Review
for the Performance Appraisal
1. Review the performance documentation collected
throughout the year. Concentrate on work patterns
that have developed.
2. Be prepared to give specific examples of above- or
below-average performance.
3. When performance falls short of expectations,
determine what changes need to be made. If
performance meets or exceeds expectations, discuss
this and plan how to reinforce it.
4. After the appraisal is written, set it aside for a few
days and then review it again.
5. Follow whatever steps are required by your
organization’s performance appraisal system.
Appraisal Interviews
Schedule the interview 10 to 14 days in advance.
Provide subordinates with a “guide” to follow in planning for
the interview.
Consider which of the following approaches to use:
Tell-and-sell method
Tell-and-listen method
Problem-solving method (generally preferable)
Tell-and-Sell Interviews

1. Supervisor persuades employee to change

in a prescribed way.
2. Employees sees how changed behavior will
be of great benefit.
Tell-and-Listen Interviews
1. Supervisor covers strengths/weaknesses for first half
2. Solicits employee’s feelings about comments
3. Deal with disagreement, non-defensively
4. Negotiate future concrete objectives
The Problem Solving Interview
1. Discuss strengths and weaknesses since last review
2. Explore feelings of sub-ordinate
3. Listening, accepting, and responding are essential
4. Stimulate growth (performance) job
5. Discuss problems, needs, innovations, satisfactions and
dissatisfactions since last review
6. Listen and respond with goal of helping person and
productivity.
Appraisal Interviews
During the Interview:
Emphasize strengths to build on.
Suggest more acceptable ways of acting.
Concentrate on present opportunities for growth.
Techniques:
Listen more than you talk.
Use a variety of types of questions.
Avoid the sandwich technique.
Establishing Job Related
Performance Standards

1. Relevant
2. Free From Contamination
3. Reliable - Inter Rater Consistency
Appraisal Program Failure Concerns
1. Little Benefit Relative to Time Commitment
2. Face to Face Confrontation
3. Unskilled Appraisers
4. Role Conflict: Judge or Teacher
Appraisal Methods

Rating Scales
Essay
Management by Objectives
Check Lists by Key Words
Forced Choice Statements
Ranking of Employees
Rating Scale Methods
(most popular)
(Check each trait being evaluated)
1. Global Scale (Total Performance)
2. Mixed Standard Scale (Choose from Different
Statements)
3. Behaviorally Anchored Rating Scale
(Descriptions along the scale to define)
Behaviorally Anchored Rating Scale (BARS)
A behavioral approach to
performance appraisal that consists
of a series of vertical scales, one for
each important dimension of job
performance.
Graphic Rating-Scale Method

Performance appraisal whereby each

employee is rated according to a scale of
pre-defined characteristics that are job
performance related.
Forced-Choice Method

A trait approach to performance

appraisal that requires the rater to
choose from statements designed to
distinguish between successful and
unsuccessful performance.
Essay Method

A trait approach to performance appraisal that requires the rater to

compose a statement describing employee behavior.
This traditional form of appraisal, also known as "Free Form
method" involves a description of the performance of an employee
by his superior.
The description is an evaluation of the performance of any
individual based on the facts and often includes examples and
evidences to support the information. A major drawback of the
method is the inseparability of the bias of the evaluator.
Essay Method

Write a Behavioral Statement

Strengths versus Weaknesses
Describe Selected Traits
Evaluate Performance

Advantages Disadvantages
Critical Incident

Unusual event that denotes superior or

inferior employee performance in
some part of the job.
Management By Objective (MBO)

Philosophy of management that rates

performance on the basis of employee
achievement of goals set by mutual agreement
of employee and manager.
Management by Objectives
(Peter Drucker)
Integrates performance and goal setting
Frequent intervals
Record maintenance
Objective review jointly
Mutual buy-in
Advantages of MBO

Employees Can Measure Performance

Quantifiable Goals
Joint Effort
Employee Satisfaction in Participation
Disadvantages of MBO

Success Not Validates by Research Studies

Easy to Set Unrealistic Goals
Hard to Get Full Commitment to Process
Difficult to Define Some Goals
Performance Appraisal
Interview Needs

Trained Interview Techniques

Honesty in Appraisal
Well Planned Structure
Carefully Conducted
Feedback Openness
Adequate Time (more than one session occasionally)
Procedural Guidelines
1. Listen More Than Talk (1/3 rule)
2. Vary the Questions (Open ended/elaboration)
3. Follow-up Questions (force through responses)
4. Reflect Feelings (clarify-sincerity)
5. Avoid Sandwich Technique (Positive-Negative-Positive)

Why? Signals Bad News

No More Bad News
Discourages Real Communication
Measuring Performance
Organization’s common
goals Measures of
organization performance

Department-specific
goals Measures of
department performance

Supervisor lists goals Subordinate proposes

and measures for goals and measures for
subordinate his or her job

Joint agreement on
subordinate goals and
measures

Final review of Periodic review periods New inputs provided

subordinate results providing feedback on
measured against interim results measured
esta-blished or revised Inappropriate goals
against established goals eliminated
goals
Performance Appraisal

Amoco Performance Management

Description
Process
Developing
Reviewing
Pay Decision
Skills Assessment
Appraisal
Performance Appraisal

Amoco Performance Management

Description
Process
Developing
Reviewing
Pay Decision
Skills Assessment
Appraisal
Performance Appraisal Examples

Performance Appraisal Form

Performance Management Form
Self-Evaluation
Critical Success Factors
Professional Staff Evaluation Process
Performance Appraisal - a Continuing Process
Is not a once-a-year or once-a-quarter
experience
Effective appraisal occurs frequently
There should be no surprises when an
employee is given his or her formal
appraisal interview
Essential for coaching &
positive motivation
 Objectives
1) To develop and maintain a satisfactory level of performance.
2) To promote development of employees through training and
self development.
3) To help superiors in having a proper understanding about
their subordinates.
4) To asses training and development needs.
5) Salary increase
6)To facilitate fair and equitable compensation based on
performance
7)To effect promotion based on competence and performance.
8) To improve communication between superior and
subordinates.
9) To determine whether HR programs like selection ,training
,transfers etc are effective or not. (effectiveness of HR
activities)
Importance
1) Performance Appraisal is useful for identifying misplaced
employees, so that suitable remedial action may be taken in
time.
2) To judge whether employees are performing at the
acceptable level.
3) To find out potential of employees for promotion
,development etc.
4) To identify the strengths and weaknesses of individuals ,so that
necessary steps can be taken to improve the quality of
employees.
5) To maintain record of performance of each individual
employee for the purpose of incentive pay and rewards.
6)To focus attention on the effectiveness of the organization and
to know about individual achievements.
7) To enable the employee to know where he stands so that he
may be motivated to develop himself.
Factors for the success of an Appraisal program
1) The appraisal program should be easily understandable.
2) Atmosphere of confidence and trust.
3) The system should be valid and reliable.
4) Results should be held of more importance rather than
personality traits.
5) The appraisal program should be less time consuming.
6) It should also be less costly.
7) Negative results should be immediately conveyed to the
employee.
8) Corrective action plan should also be suggested.
9) A post appraisal interview to be arranged.
A Key to All of This -

Supervisors must have the support

& encouragement of higher
management to make all this work
 Ethics
1) A valid reason to be known to the appraiser.
2) Appraisal to be done on the basis of representative
information rather than hearsay.
3) Relevant facts to be gathered beforehand.
4) Written and oral appraisals must be consistent.
5) Confidentiality of the information to be maintained by the
appraiser.
6) False information should be screened and also not included by
the appraiser.
7) Appraisal to be done on sufficient information.
8) The appraiser should give the appraisal as a personal opinion
rather than conclusive fact.
9) An explanation of where and how the facts were gathered
should be given
10) Time period covered should be noted.
 Performance Appraisal process
1) Defining objectives of Appraisal –
✔ it is used for different purposes, like salary increase
,promotion ,T & D
✔ Objectives must be clearly defined.

2) Defining Appraisal Norms –

✔ Confidence and trust
✔ It is done on the basis of available information
✔ Rules are binding for employee
3) Designing Appraisal program –
✔ Who are appraisers
✔ Appraisal methodology
✔ Timing of appraisal

4) Implementing Appraisal program –

The results of appraisal must be communicated to HR department
for follow-up actions which should be oriented towards the
objective of the appraisal.
5) Appraisal Feedback –
Feedback from appraisee

6) Post Appraisal Action –

Aim is to improve long-term performance
Counseling , training activities conducted to improve the
performance.
Factors to Consider in Choice of a P. A. System

Cost

Usefulness in employee development

Usefulness in administrative decisions

Validity
Appraisal Methods
Past Oriented Methods

✔ Rating scales
✔ Checklists
✔ Forced Choice
✔ Critical Incidents
✔ Bars
✔ Field Review
✔ Tests and Observation
✔ Essay
✔ Cost Accounting
Future Oriented
a)360 Appraisal
b) Assessment Center
d) MBO
Past Oriented Methods

a) Rating Scales
▪ Simplest and most popular technique
▪ Numerical scales, each representing a job related performance
criteria such as dependability, initiative ,output ,attendance
,attitude, cooperation etc.
▪ The number of points scored may be linked to salary increase.
Employee name - Dept –
Ratter name- date -
Excellent Good Acceptable Fair Poor
5 4 3 2 1

1. Dependability
2. Initiative

3. Overall Output

4. Attendance

5. Attitude

6. Cooperation

----
----
20.Quality of work

Total

Total Score
b) Checklists –
▪ A checklist of statements on the traits of the employee and his
job is prepared in two columns –that are “YES” column and
“NO” column.
▪ The raters (immediate bosses ) are supposed to answer a YES if
the statement is positive and NO if it is negative.
▪ Then this list is forwarded to the HR department where the
actual assessment is done.
▪ The HR department assigns certain points to each YES ticked.
▪ Depending on the number of YES ticked the total scored is
arrived at.
▪ When points are allotted to the checklist ,the technique
becomes weighted checklist.
▪ The advantages are economy, ease of administration ,limited
training of the rater and standardization.
▪ The disadvantages are susceptibility to raters biases halo
effect) ,use of personality criteria instead of performance
criteria, misinterpretation of checklist items, use of improper
weights by the HR department.
 Checklist for Operators
Sr.No.
Criteria YES NO
Is the employee really interested in his job?
1
Does he posses adequate knowledge about
2 the job?
Does he maintain his equipment?
3
Does he cooperate with other workers?
4
Does he obey orders?
5
Does he observe safety precautions?
6
Does he complete whatever work he starts?
7
Does he evade responsibility?
8
Is his attendance satisfactory?
9
c) Forced Choice method –
▪ In the forced choice method the rater is forced to select
statements ,which are readymade.
▪ The rater is given a series of statements about an employee.
▪ These statements are arranged in blocks of two or more and the
rater indicates which statement is most or least descriptive of
the employee.
Typical Statements are:
1.Learns fast-----------------------works hard
2. Work is reliable -----------------performance is good
3. Absent often ------------------others usually tardy.
▪ Rater is forced to select statements which are readymade.
▪ Advantage – absence of personal biased ratings.
▪ Disadvantage – the statement may not be properly framed.
Forced Distribution Method
This method operates under the assumption that employee
performance level conforms to a normal statistical distribution.

Generally it is assumed that employee performance levels

conform to a bell shaped curve.
For e.g. the distribution might be assumed to Excellent
10%,Good 20%, Average 10 % ,Below Average 10 %,
Unsatisfactory 10 %.
Forced Distribution Method

Excellent Good Average Below average

Unsatisfactory
10% 20% 40% 20% 10%
The major weakness of this method lies in the assumption that
employee performance levels always conform to a normal
distribution. In organization that have done a good job of
selecting and retaining only good performers ,the use of this
method would be unrealistic. As well as possible destructive for
the employee morale.
The error of central tendency may also occur as the rater resists
from placing an employee in the lowest and highest group.
Difficulties also arise for the rater to explain the ratee why he or
she has been placed in a particular group.
It is also not acceptable in groups which are small or where the
ability of the members is too high.
Critical Incidents Method

Based on Observation of Behaviors

• Positive
• Negative
Written Notation of Behaviors is
Made & Placed in Each
Employee’s File
▪ The approach focuses on certain critical behaviour of that
make all the difference between effective and non effective
performance of a job.
▪ Such incidents are recorded by the superiors as and why they
occur.
▪ Advantages –
1) Evaluation are based on actual job behaviour.
2) The approach has description in support of particular ratings
of an employee.
3) Giving job related feedback to the employee is easy.
 4) It also reduces the recency bias, if raters record incidents
throughout the rating period.
5) This approach can increase the chances that the sub ordinates
will improve because they learn more precisely what is
expected of them.
Limitations –
1) Negative incidents are generally more noticeable than
positive ones.
2) The recording of incidents is a chore to the supervisor and
may be put off and easily forgotten.
Behaviourlly Anchored Rating Scales (BARS)
These are sometimes called as behaviourlly expectation scales.
These are rating scales whose rating points are determined by
statements of effective and ineffective beahviour.
The statements range of descriptive statements varying from
most effective to least effective.
A rater must indicate which behaviour on each scale best
describes an employees performance.
The features of BARS are:
▪ Areas of performance to be evaluated are identified and
defined by the people who will use the scale.
▪ The scales are anchored by descriptions of actual job
behaviour that supervisors agree, represent specific level of
performance.
▪ The result is a set of rating scales in which both dimensions
and anchors are precisely defined.
▪ All dimensions are based on observable behaviours and are
relevant to the job being evaluated since BARS are tailor made
for the job.
▪ Since the raters who will actually use the scales are actively
involved in the development process, they are more likely to be
committed to the final product.
▪ BARS are developed to provide subordinates as a measure to
improve performance.
▪ Supervisors feel comfortable while giving feedback to the
ratees.
Field Review Methods
This is an appraisal by someone outside the own department,
usually the corporate office or HR department.
The outsider reviews records and hold interview with the ratee
and his or her supervisor.
The method is primarily used for making promotional decisions
at the managerial level.
These reviews are also used to compare employee performance
in different units or locations.
 Disadvantages –
An outsider is usually not familiar with conditions in an
employee’s work environment.
He also does not observe the employee behaviour and
performance over a certain period. He is called only for the
structured interview.
Performance Tests and Observation

The employee assessment may be based on a test of knowledge

or skills.
Test may be of paper and pencil variety or an actual
demonstration of skills.
These are to measure potential more than the actual
performance.
In order for the test to be job related observations should be
maid under circumstances likely to be encountered.
Practically may suffer if costs of test development or
administration are high.
Confidential Records

These are also called ACR –Annual Confidential Report

Mostly maintained in government departments .
It normally has 14 items- Attendance ,Self expression , ability
to work with others ,Leadership, Initiative , Technical ability
,ability to understand new material ,Ability to reason
,originality and resourcefulness ,areas of work that suit the
person best, Judgment ,Integrity and Defect –Indebtedness
,Memo served etc.
The system is highly secretive and confidential.
Feedback to the assessee is given only in case of an adverse
entry.
Essay Method

The rater must describe the employee within a number of broad

categories such as rater’s overall impartation of the
employee’s performance ,promotability of the employee, Jobs
that the employee is qualified to perform ,strengths and
weaknesses, training and development needs.
This method is frequently used in combination with others.
The strengths of this method depends on writing skills and
analytical ability of rater.
It is time consuming method.
Cost Accounting Method
This method evaluates performance from monitory returns the
employee gives to his organization.
A relationship is established between the cost included in
keeping the employee and the benefit the organization derives
form him.
Comparative Evaluation Approaches
These are the collection of different methods that compare one
worker’s performance with that of his coworker’s
As theses appraisals can result in ranking from best to worst
they are useful in deciding merit pay increases ,promotions,
and rewards.
 This method has two forms-
1) Ranking Method –
✔ In this the superior rank his subordinate in order of their merit
stating from best to worst.
✔ The how and why are not questioned
2) Pared Comparison –
✔ Under this method the appraisal compare each employee with
every other employee with every other employee one at a time.
If there are 5 employees named A,B,C,D and E the performance
of A is first compared with that of B and decision is made about
whose performance is better. Then A is compared with C,D,
and E.
Future Oriented Appraisal

Management By Objectives –
✔ First given by Dr. Peter Drucker.
✔ It involves 5 steps
✔ The first step is to establish the goals, each subordinate is to
attain by mutual goal setting.
✔ The second step involves setting the performance standard for
the subordinate in a previously arranged time.
✔ In the third step the actual level of goal attainment is compared
with the goals agreed upon.
✔ The fourth step involves establishing new goals not previously
attained.
✔ The whole process involves an active participation from both
superiors and subordinates.
✔ The MBO process seems to be most useful with managerial
personnel and employees who have fairly wide range of
flexibility and self control in their jobs.
✔ The results are to be used to allocate organizational rewards.
✔ This technique is followed in L&T.
Psychological Appraisals
✔ Organizations employ full time psychologists ,which help them
assess an employee’s future potential.
✔ The appraisal consists of in-depth interviews ,psychological
tests, and discussions with supervisors and review of other
evaluations.
✔ The psychologist then writes an evaluation of employee’s
intellectual ,emotional ,motivational etc that suggests
individual potential and may predict future performance.
✔ Placement & development decisions can be shaped based on
results.
Assessment Centers
✔ Mainly used for evaluation of executive and supervisory
potential.
✔ An assessment center is a central location where managers
come together to have their participation in job related
exercises evaluated by trained observers.
✔ The managers are evaluated for a period of 3-4 days and
observations are noted by the experts for their behaviour
across a series of selected exercises or work samples.
✔ The exercises include role-playing ,in-basket exercises,
computer simulations etc.
✔ The characteristics assessed in a typical assessment center
include assertiveness, persuasive ability, communicating ability
,planning and organizational ability ,sensitivity
,decision-making ability etc.
✔ The main problem with this technique is the cost involved in its
implementation. The company pays for the traveling ,lodging
and also for the evaluators.
✔ Poor report of good employees may demoralize them.
✔ There is a chance of peers feeling rivalry and unhealthy
competition.
360 Feedback

✔ Multiple raters are involved in this method.

✔ It is systematic collection of data collected from number of
stakeholders – the immediate supervisors ,team members,
customers ,peers and self.
✔ This multisource feedback and information is highly useful for
the employee development.
✔ It makes the employee much more accountable to his internal
and external customers.
✔ There should be a non threatening environment in the
organization for this.
✔ A disadvantage of this method is non-consistent data provided
,as the raters are from different hierarchical level.
Errors
Confusing performance and potential –
Many rating systems that are supposed to be evaluating
performance fall into trap of measuring potential as well. This
is a serious mistake that can unfairly penalize employees as
well as give credit where it is not deserved .measurement of
potential is often an important aspect of any appraisal system
,but the organization and the ratees involved need to be
absolutely clear on the difference.
Rater Bias
Halo effect –
The “halo effect is central tendency to let the assessment of an
individual’s one trait influence the evaluation of that person on
other specific traits. Basing the entire appraisal on the basis of
one perceived positive quality ,feature or trait in an individual
leads to halo error. For instance ,if an employee tends to be
more conscientious or dependable ,the appraiser may rate him
high on many desirable attributes .Thus ,the appraiser leaps
from the specific to general without adequate substantiation .he
assumes that a man who performs one task well must be able to
do anything well.
Horns effect

It is exactly opposite to halo effect.

It refers to basing the evaluation on the basis of one negative
quality or feature perceived .It is the tendency to allow one
negative trait of the employee to colour the entire appraisal.
This results in an overall lower rating than may be warranted.
Leniency or strictness tendency

Depending upon the appraiser’s own value system which acts

as a standard ,employees may be rated leniently or strictly.
Such ratings do not carry any reference to actual performance
of the employees. The differences obtained are due to
differences in appraiser's standards, not performance. Some
appraiser’s consistently assign high values to all employees
regardless of merit. This leniency error. In strictness tendency a
reverse situation occurs where all individuals are rated too
severely and performance is understated.
Central Tendency
It is most commonly found error which occurs when a rater
assigns mostly middle-range scores or values to all individuals
being apprised. Extremely high or extremely low evaluations
are avoided by assigning “ average ratings “ to all .usually
central tendency is caused by lack of information ,or lack of
knowledge about the employee and his behaviour. The rater
wants to avoid commitment or involvement or he may not have
sufficient time at disposal. such tendency distorts the
evaluations and obviates their value.
First Impressions
Raters may identify some specific qualities or features of the
rater and quickly form an overall impression about him. The
identified qualities or features may not provide adequate base
for appraisal.
Stereotyping

Stereotyping is a standard mental picture that an appraiser

holds about an individual according to the category whom he
represents. It results in an oversimplified view of the individual
and may blur the rater’s perception and assessment of the
individual’s performance on the job.
The most common errors in evaluation are:
1) drawing the wrong conclusions about an individual’s
capabilities on the basis of his performance and
2) Overemphasizing one or two attributes
Recency Error
In this there is a tendency to base ratings on what is most
easily remembered ,that is, the most recent behaviour. Thus,
rating is influenced by most recent behaviour ignoring the
commonly demonstrated behaviours during the entire appraisal
period, especially if employees are aware of the approximate
date when they will be evaluated.
Similarity Error
This error occurs when the appraiser perceives the employee
as himself “He is like me”. Affiliation with those holding
similar views makes it difficult for apprasier to be objective.
Personal Bias

Evaluations can be influenced by factors such as employee’s

racial or ethnic background ,physical attractiveness, religion,
manner of dress code which are of normal significance for
achievement of organizational goals. Basis of this kind can
operate without the rater being aware of what is happening or
the biases may be conscious and intentional. Further more, an
individual rater may permit personal feeling to weigh heavily
in evaluations. These may not operate often ,but it is important
to recognize their existence and the fact that ratings can
contain this type of error.
Desire to be accepted
The rater is concerned with the desire to be accepted." If I rate
my subordinate’s performance as poor, how am I going to get
his cooperation ? After all, both of us have to work together for
long and I cannot afford to strain the relation”.
Concern with Self-protection
The rater is concerned with own his promotion." If I rate him
well, he will rate me well and not create any problem for me”.
Fear of playing God
The rater is reluctant to play God by determining the future of
the employees. He will lose his job if I rate him again as a poor
performer”.” He may not be considered for promotion if I give
him poor ratings”. Such concerns tend to make the raters to be
lenient. Some raters feel uneasy criticizing a subordinate’s
performance and are anxious least their adverse appraisal
might hold up a salary increase or an unwanted transfer.
Further, an aggrieved employee is invariably left with a feeling
that the superior is arbitrary in his judgment. This is a very
frustrating experience for an honest and impartial superior.
Opportunity Bias
This results when the amount of output is influenced by factors
beyond the control of employees. Some employees have better
working conditions ,supportive supervisors ,more experienced
co-workers, and hence their output may be greater than others
working on identical tasks.
Spillover Effect
This refers to allowing past performance appraisal ratings,
good or bad, result in similar rating for the current period
although the demonstrated behaviour does not deserve the
rating, good or bad.
Status Effect
It refers to overrating of employees in higher-level job or jobs
held in high esteem, and understanding employees in lower
level job or jobs held in low esteem.
 Major benefits of employee training
1. Impact on bottom line: Successful employee training delivers improvements
in employee performance which, in turn, creates a better performing business
and an improved bottom line.
2. Staff retention: Want to spend more training recruiting staff? Training
increases staff retention which will save you money. Instead of paying
recruitment fees, re-investing in training, loss of management time why not
treat your people as your number one asset? Invest in their development and
they will receive a return your investment many times over.
3. Improved quality and productivity: Training that meets both staff and
employer needs can increase the quality and flexibility of a business’s services
by fostering:
✔ Accuracy and efficiency.
✔ Good work safety practices.
✔ Great customer service.
4. Staff morale and satisfaction.
5.‘Soft skills’ such as inter-staff communication and leadership.
6. Time management.
Training Vs. Development
Training
Training means learning skills and
knowledge for doing a particular
job. It increases job skill.
The term “Training” is generally
used to denote imparting specific
skills among operative workers
and employees.
Training is concerned with
maintaining and improving current
job performances. Thus, it has a
short-term perspective.
Training is job centered in nature.
The role of trainer or supervisor is
very important in training.
Development
Development means the growth of
an employee in all respects. It
shapes attitudes.
The term “development” is
associated with the over all growth
of the executives.
Executive development seeks to
develop competencies and skills
for future performances. Thus, it
has a long-term perspectives.
Development is career centered in
nature.
All development is
“self-development”. The executive
has to be internally motivated for
self-development.
 Typical Areas of Employee Training
1. Communications: The increasing diversity of today’s workforce brings a wide variety
of languages and customs.
2. Computer skills: Computer skills are becoming a necessity for conducting
administrative and office tasks.
3. Customer service: Increased competition in today’s global marketplace makes it critical
that employees understand and meet the needs of customers.
4. Diversity: Diversity training usually includes explanation about how people have
different perspectives and views, and includes techniques to value diversity.
5. Ethics: Today’s society has increasing expectations about corporate social
responsibility. Also, today’s diverse workforce brings a wide variety of values and
morals to the workplace.
6. Human relations: The increased stresses of today’s workplace can include
misunderstandings and conflict. Training can people to get along in the workplace.
7. Quality initiatives: Initiatives such as Total Quality Management, Quality Circles,
Benchmarking, etc. require basic training about quality concepts, guidelines and
standards for quality, etc.
8. Safety: Safety training is critical where working with heavy equipment, hazardous
chemicals, repetitive activities, etc. but can also be useful with practical advice for
avoiding assaults, etc.
Benefits of Training
Increased job satisfaction and morale among employees.
Increased employee motivation.
Increased efficiencies in processes, resulting in financial gain.
Increased capacity to adopt new technologies and methods.
Increased innovation in strategies and products.
Reduced employee turnover.
Enhanced company image, e.g., conducting ethics training (not a good
reason for ethics training!).
Risk management, e.g., training about sexual harassment, diversity
training.
Training Needs Assessment
A tool utilized to identify what educational courses or activities should be
provided to employees to improve their work productivity.

Why is it required:

To pinpoint if training will make a difference in productivity and the bottom

line.
To decide what specific training each employee needs and what will
improve their job performance.
To differentiate between the need for training and organizational issues.