CHAPTER FOUR

4. TRAINING AND DEVELOPMENT

4.1 Definition
Training and development can be defined as planned efforts by organizations to increase
employees’ knowledge, skills and abilities.
 Training refers to the method used to give new or present employees the skills they
need to perform their jobs.
 Training is any process by which the aptitudes, skills and abilities of employees to
perform specific jobs are increased. It is the act of increasing the knowledge and skills
of an employee for doing a particular job.
 Training - Effort initiated by an organization to foster learning among its members.
Tends to be narrowly focused and oriented toward short-term performance concerns.
 Development - Effort that is oriented more toward broadening an individual’s skills for
the future responsibilities. Development is the systematic process of education, training
and growing by which a Person learns and applies information, knowledge, skills,
attitudes and perceptions.
 Development is said to include training to increase skills and knowledge to do a
particular job and education concerned with increasing general knowledge and
understanding. This shows that development involves learning opportunities aimed at
the individual growth but not restricted to a specific job. Training is usually related to
operational or technical employees while development is for managers and
professionals. However, they are also many times used interchangeably.
4.2 Objectives of training and development
Training and development has many objectives which include:
To provide the knowledge skills and attitudes for individuals to undertake their current
jobs more effectively/ training.
To help employees become capable of assuming other responsibilities within an
organization either at more senior or at their current levels, a road for development.
(Developing their potentials)
To help employees to adapt to changing circumstances facing organizations such as new
technologies, new business environment, new systems, new product etc.
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 To reduce wastage and increase efficiency.
To minimize input and maximize output.
To relief supervisors from close supervision and get time for other duties.
To lower turnover and absenteeism and increase employees’ job satisfaction.
To lower the number and cost of accidents.
4.3 Process of Training and Development
To achieve objectives and gain the benefits of human resource development, human resource
managers must assess the needs, objectives, content and learning principles associated with
training and development. It is often the responsibility of human resource management
department to conduct assessment of training and development needs of employees and those of
the organization in order to learn what objectives should be sought. Once objectives are set, the
specific content and learning principles and the appropriate training methods are considered.
The following are the logical steps to be undertaken to create an effective program of training
and development.
A. Analyzing Training and Development needs/conducting need assessment
A major problem with training and development is identifying who needs how much of what
type of training and development. Need identification requires:
 Organizational analysis – identification of organizational objectives, resources, strategies
and the environment of the organization to determine where training emphasis should be
placed.
 Task analysis – identification of knowledge, skills and attitudes required. The process of
determining what the content of a training program should be on the basis of a study of the
tasks and duties involved in the job.
 Performance analysis/person analysis - comparing actual performance with the stated
standard and determination of the specific individuals who need training. In general, training
and development needs are said to be existed in an organization when there is a gap between
the existing performance of an employee (or group of employees) and the desired
performance.
B. Selecting trainees - based on the above analysis, the next logical step is identification of
trainees who requires training.
C. Developing objectives – involves the determination of output expectations after training

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has been take place.
 In terms of behavioral change/modification - The technique that operates on the principle
that behavior that is rewarded, or positively reinforced, is repeated more frequently, whereas
behavior that is penalized or unrewarded will decrease in frequency.
 In terms of output/productivity.
D. Choose the appropriate training techniques
There are many training methods to be used. Appropriateness of training techniques depend on:
cost effectiveness, desired program content (teaching specific skills, providing knowledge or
influencing attitude), appropriateness of the principles, trainee’s preference and capabilities,
trainer preference and capabilities and training principles. Training can be conducted either on
the job; that is within the actual work environment or off the job; that is outside the actual work.
1. On job training methods – this includes:
 Apprenticeship: involves learning from more experienced employees. It is generally
followed in technical fields in which proficiency in acquired in direct association with
work and direct supervision.
 Position rotation: this is a formal, planned program that involves assigning trainees to
various jobs in different parts of the organization.
 Coaching: the trainee is placed under a close guidance and supervision of the trainer
(immediate supervisor) and he/she is given an opportunity to perform an increasing range
of tasks and the coach’s experience.
2. Off job training methods on the other hand:
 Case study: it is a method of classroom training in which the learner analyses real
situations facing organizations and suggests not only what to do but also how to do it. It
deals typical problems that any business organization faces and exercising the problem.
Analytic, problem-solving, and critical thinking skills are most important.
 Internships - Are jointly sponsored by colleges, universities, and other organizations that
offer students the opportunity to gain real-life experience while allowing them to find out
how they will perform in work organizations.
 Simulation – involves train employees by using extracted models that looks the actual
equipment used on the job.
 Vestibule training: setting up a training area very similar to the work area in equipment,

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 procedures, and environment, but separated from the actual one so trainees can learn
without affecting the production schedule. This method is different from simulation in a
sense that it takes actual equipment used on the job.
 Lecture – provides knowledge to the trainees usually from well prepared notes. It is a
low-cost method, but it discourages employee participation.
 In basket technique – in this case, the trainee is presented with a pack of papers and files
in a tray containing administrative problems and asked to take decisions on these within a
specified time limit. This is important to train employees about problem prioritization.
 Distance and internet-based training: firms today use various forms of distance learning
method for training. Distance learning methods include traditional paper and pencil
correspondence courses, as well as tale-training, video conferencing and Internet based
classes.
E. Evaluate the training program – after training has been take place, evaluating overall
training program is important and essential because it helps to determine trainees’ extent of
achievement.
 Checking to see whether they actually learned anything. Testing knowledge and skills
before beginning a training program gives a baseline standard on trainees that can be
measured again after training to determine improvement.
 Transfer of Training - Effective application of principles learned to what is required on
the job.
 Calculating the benefits derived from training:
• How much did quality improve because of the training program?
• How much has it contributed to profits?
• What reduction in turnover and wasted materials did the company get after
training?
• How much has productivity increased and by how much have costs been
reduced?
 Viewing training in terms of the extent to which it provides knowledge and skills that
create a competitive advantage and a culture that is ready for continuous change.
 Checking his/her behavioral modifications etc.
4.4 Applying learning principles in training

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Learning principles are guidelines to the way in which people learn most effectively. The more
they are included in training, the more effective training is likely to be. The following learning
principles are suggested to be applied in the process of human resource development.
o Encouraging active participation of trainees.
o Repetition – a behavior should be repeated after a training/learning has been take place.
o Relevance - the content of the training should be similar with the content of the real job.
o Transference – the skills, experiences and knowledge acquired through training is most
likely transferable to the actual job.
o Motivation - interest to learn, ask, communicate and heart fully cooperated.
o Need for Feedback – encourage learners to correct their mistake, provide reinforcement
for learning/rewarding their effort.
4.5 Importance of training and development
 It improves employee’s skill and results better performance in quality and quantity and
intern increases organizational profit.
 Lessens/minimizes mistakes made due to lack of training.
 It results less supervision and the supervisor can devote his/her time on other important
tasks/issues.
 It results high employee’s morale, due to high level of job satisfaction, job security and a
chance for promotion.
4.6 Career development /career management
Career development is an ongoing, formalized effort by an organization that focuses on
developing and enriching the organization’s human resource in light of both the employee’s and
the organization’s needs.
Career management is concerned with the provision of opportunities for people to develop
their abilities and their careers in order to ensure that the organization has the flow of talent it
needs and to satisfy their own aspirations. It is about integrating the needs of the organization
with the needs of the individual.
4.6.1 Career management terminologies
Career planning – involves the definition of career paths – the routes people can take to
advance their careers within an organization. it shapes the progression of individuals

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 within an organization in accordance with assessments of organizational needs, defined
employee success profiles and the performance, potential and preferences of individual
members of the enterprise.
Career counseling - help people develop their careers to their advantage as well as that of
the organization.
Career dynamics - Concerned with how careers progress – the ways in which people
move through their careers either upwards when they are promoted, or by enlarging or
enriching their roles to take on greater responsibilities or make more use of their skills
and abilities.
Career management policies - The organization needs to decide on the extent to which it
‘makes or buys’ talented people. Should it grow its own talent (a promotion from within
policy) or should it rely on external recruitment (bringing ‘fresh blood’ into the
organization)? The policy may be to recruit potentially high performers who will be good
at their present job and are rewarded accordingly.
4.6.2 Career stages
1. Entry to the organization when the individual can begin the process of self-directed
career planning.
2. Progress within particular areas of work where skills and potential are developed through
experience, training, coaching, mentoring and performance management.
3. Mid-career when some people will still have good career prospects while others may have
got as far as they are going to get, or at least feel that they have. It is necessary to ensure
that these ‘plateaued’ people do not lose interest at this stage by taking such steps as
providing them with cross-functional moves, job rotation, special assignments,
recognition and rewards for effective performance, etc.
4. Later career when individuals may have settled down at whatever level they have reached
but are beginning to be concerned about the future. They need to be treated with respect
as people who are still making a contribution and given opportunities to take on new
challenges wherever this is possible. They may also need reassurance about their future
with the organization and what is to happen to them when they leave.
5. End of career with the organization – the possibility of phasing disengagement by being
given the chance to work part time for a period before they finally have to go should be

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 considered at this stage.
4.6.3 Why career development?
From the organizations point of view point, career development can reduce costs due to
employee turnover. If a company assists employees in developing career plans, these plans are
likely to be closely tied to the organizations; therefore, employees are less likely be quit. Taking
an interest in employees’ careers can also improve moral, boost productivity, and help the
organization become more efficient. The fact that an organization shows interest in an
employees’ career development has a positive effect on that employee. Under these
circumstances, employees believe that the management regards them as part of overall plans and
not just as numbers. An emphasis on career development can also have appositive effect on the
way employees view their job and their employers.
From organization’s viewpoint, career development has three major objectives:
- To meet the immediate and future human resource needs of the organization on a
timely basis.
- To better inform the organization and individual about potential career paths within
the organization.
- To utilize the existing human resource programs to the fullest by integrating the
activities that select, assign, develop, and manage individual careers with the
organizations plans.

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 Chapter five
5. Performance Management and Performance Appraisal
Performance management is a systematic process for improving organizational
performance by developing the performance of individuals and teams. It is a means of
getting better results by understanding and managing performance within an agreed
framework of planned goals, standards and competency requirements.
Performance management is: ‘A process for establishing a shared understanding about
what is to be achieved and how it is to be achieved, and an approach to managing people
that increases the probability of achieving success.
Performance management is based on the principle of management by agreement or
contract rather than management by command. It emphasizes development and the initiation
of self-managed learning plans as well as the integration of individual and corporate
objectives. It can, in fact, play a major role in providing for an integrated and coherent range
of human resource management processes that are mutually supportive and contribute as a
whole to improving organizational effectiveness.
When we compare with performance appraisal, performance management is a continuous
and much wider, more comprehensive and more natural process of management that
clarifies mutual expectations, emphasizes the support role of managers who are expected to
act as coaches rather than judges and focuses on the future.
5.1 Objectives of performance management
The overall objective of performance management is to develop the capacity of people to
meet
and exceed expectations and to achieve their full potential to the benefit of themselves and
the
organization. Specifically:
-Align individual and organizational objectives.
-Improve organizational performance.
-Improve individual performance.
-Provide the basis for personal development.
-Develop a performance culture.

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-Inform contribution/performance pay decisions.
Performance appraisal can be defined as a human resource activity that is used to
determine the extent to which an employee is performing his/her job effectively.
Performance appraisal is the process of determining and communicating to an employee
how he or she is performing the job and, ideally, establishing plan of improvement. It can be
also defined as the formal assessment and rating of individuals by their managers at or after
a review meeting. Performance is said to be a result of employee’s efforts abilities and role
perception.
-Effort is an action people put in to their jobs.
-Ability individual characteristics such as intelligence, knowledge, skills.
-Role perception is what individuals want to do or think they are required to do.
Other terms of performance appraisal include: performance review, personnel rating,
behavioral assessment, staff assessment, merit rating, performance evaluation, and
employee appraisal and employee evaluation.
5.3Purposes of performance appraisal
1. To provide information towards strength and weakness of employees in their job
performance.
2. To provide data for management for judging future job assignments, promotions
and compensation.
3. To provide information to help maintain an equitable and competitive pay structure.
4. To supply general information on training needs for the organization or
departments.
5. To improve motivation by increased understanding of goals, the means of attaining
the goals and the rewards associated with achievement.
6. To improve performance by developing strength and dealing with weakness.
7. To provide legally defensible reason for promotions, transfer, reward and
discharges.

5.4Performance appraisal process (steps)

Performance evaluation involves:
1. Establishing performance standards for each position and the criteria for

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 evaluation:
The manager must determine what output, accomplishments and skills will be
evaluated. These standards should have evolved out of job analysis information.
2. Communicate performance expectation to employees: once the performance
standards are established, these needs to be communicated to the respective
employees so that they come to know what is expected from them.
3. Measure actual performance/extent of accomplishment: the actual performance
of the employee is measured on the basis of information available from various
sources such as personal observation, statistical reports, oral and written reports.
4. Compare actual performance with the standard: in this step the actual
performance is compared with the predetermined standards. Such a comparison
may yield the deviation between stated performance and actual performance and
will enable the evaluator to proceed to the fifth step in the process.
5. Discuss the appraisal with the employees: this phase is the most challenging task
for mangers because employees not always willingly accept their
feedback/performance result. A discussion on appraisal enables employees to know
their strengths and weaknesses. It has also its own impact on their future
performance depend upon the appraisals result. i. e. positive or negative.
6. Initiate corrective action: in this step the areas needing for improvement are
identified and then, the measures to correct or improve performance are identified
and initiated. The actions may be training need, promotion or pay increase.

5.5Who appraises employee performance?

In designing an appraisal system, another significant factor worthy of consideration is the
appraiser. Who should actively make the appraisal? The individual and group of
individuals who usually do the appraisal include the immediate supervisor, employee’s
peers, employees themselves (self- appraisal), and subordinates.
A. Immediate Supervisor - Appraisal of employees’ performance by their supervisors is
the traditional and most frequently used approach. In fact, this is one of the major
responsibilities of all managers. This approach is used because it is assumed that the
supervisor has greatest opportunity to observe the subordinate’s behavior. It is also

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 assumed that the supervisor is able to interpreter and analyzes the employee’s
performance in light of the organization performance objectives. In most
organizations, the employee’s supervisor is responsible for making reward decisions
such as pay and promotion. If the immediate supervisor appraises the employee, the
supervisor can possibly link effective performance with rewards. Supervisors are also
in the best position to know the job requirements, to observe employees at work and
to make the best judgment.
B. Employee’s peers - In an organizational setting, a peer is a person working with and
at the same level of an employee. The peer appraisal is frequently called “mutual
rating system “. In effect, each employee apprises each of the other members of the
work group. Employee’s peers represent a credible source of performance data not
only because of their frequent contacts to each other but also because of their
interdependence to accomplish common assignments and common objectives.
Performance feedback from peers, based on observational data, provides employees
with a view of their level of performance.
C. Employee self-appraisal - In many organizations self – appraisal is used for
developmental purpose. It is getting acceptance that comprehensive self-appraisal may
serve as a vehicle of professional improvement, ensuring lasting change and
development of employee’s competence and quality of performance. Self –appraisal
helps an employee to analyze his or her actual current level of performance in the
light of desired performance competence. It is also generating performance data on
weakness, strength and potential of the employee, which the appraiser, in the time of
appraisal program, might not ascertain. But it has its own drawbacks when the
purpose of appraisal is for promotion, salary incensement or training, they become
dishonest.
D. Subordinate appraisal - Some organizations are now using subordinate appraisals,
where by employees appraise their superiors. This is useful in trying to develop better
superior- subordinate relationship, and in improving the human relationship of
managers. But this system also not free from limitations, because managers mostly
unlikely to accept their weaknesses from their subordinates and their future
relationship also inquisition. Finally, two or more approaches may be used in

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 combination to appraise the performance of employees. This approach not only helps
to make appraisal results more objective but also to get the cooperation and
commitment of employees to the system of performance appraisal.

5.6Performance appraisal methods

A. Graphic rating scale method - This method is the simplest and the most popular
technique of appraising performance. A graphic rating scale lists traits (factors) such as
quality of work, job knowledge, attendance, accuracy of work and cooperativeness.
And a range of performance values from unsatisfactory to outstanding is obtained for
each factor. You rate each subordinate by circling o checking the score that best
describes his/her performance for each factor. You then total the assigned values for the
traits.
B. Alternation ranking method - This method involves ranking employees from best to
worst on a factor or factors traits. Since it is usually easier to distinguish between the
worst and best employees, an alternation ranking method is most popular. First, list all
subordinates to be rated, and then cross out the names of any not well enough to rank.
Then indicate the employee who is the highest on the characteristics being measured
and also the one who is the lowest. Chose the next highest and the next lowest till all
employees have been ranked.
C. Mixed standard scale method - An approach to performance appraisal similar to other
scale methods but based on comparison with (better than, equal to, or worse than) a
standard.
D. Forced choice method – it contains a series of group of statements, and a rater rates
how effectively a statement describes each individual being evaluated. This method
contains two statements two statements, both negative and positive.
E. Paired comparison method - This method helps to make the ranking more precise. For
every factor (quality of work, quantity of work etc.), you pair and compare every
subordinate with every other subordinate. Example, suppose a rater is to evaluate six
employees. The name of these employees is listed on the left side of a sheet of paper.
The evaluator then compares the first employee with the second employee on a chosen
performance criterion, such as quality of work. If he/she believes the first employee has

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 produced more work than the second employee a check mark is placed by the first
employee’s name. The rater then compares the first employee with the third, fourth,
fifth and sixth employee on the same performance criteria, placing a check mark by the
name of the employee who produced the highest result in each paired comparison. The
process is repeated until each employee has been compared to every other employee on
all of the chosen performance criteria. The employee with the most check mark is
considered to be the best performer. Likewise, the employee with the fewest check
marks is taken as the least performer. One major problem with the paired comparison
method is that it becomes too wide especially when comparing more than five or six
employees.
F. Critical incident method - With this method the supervisor keeps a log of positive and
negative examples (critical incidents) of a subordinate work-related behavior. Every six
months or so, supervisors and subordinates meet to discuss the latter’s performance,
using the incidents as examples.
G. Management by objective (MBO - MBO requires the manager and workers set specific
measurable goals and then periodically discuss the employees’ progress towards these
goals throughout the implementation process the term MBO generally refers to a
compressive, organization wide goal setting and appraisal program and it has its own
steps:
- Setting goals/it may be departmental or organizational goals.
- Discuss the goals with the workers, then
- Reviewing current performance
- Comparing actual performance with the standard
- Providing feedback.
But, sometimes this method is not free from weaknesses:
- Setting immeasurable objectives. E.g. you will do a better job training.
(Immeasurable). We will have for subordinates promoted during the year.
(Measurable).
H. Essay appraisal - It is performance evaluation method in which the rater prepares a
written statement describing the individual’s strength, weakness and past performance.
It is simple because it doesn’t require a complex format. There are also criticisms about

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 the accuracy and relevance of this method. The quality of appraisal depends on the
rater skill and experience. It only provides qualitative information about the employees.
I. Checklist method - This is performance evaluation method in which the rater answers
with a yes or no, a series of questions about the behavior of the employee being rated.
J. Work standards - It is a method, which involves setting a standard or an expected level
of output and then comparing each employee’s level of performance to the standard.
This approach is most frequently used for production employees.
K. Multi-rater assessment (or 360-degree feedback) - This is one of most recently popular
method of evaluation. With this method managers, peers, customers, supplies or
collogues are asked to complete questionnaires about the employee being assessed. The
person under evaluation also completes a questionnaire. The HR department provides
the result to the employee, who intern gets to see how his/her opinion differs from those
of the group participating in the assessment.

5.7Problems of Appraising performance

Regardless of which technique or system is used there are many problems which may
encounter in the process of using them. None of the techniques is perfect; they all have
limitations. Some of these limitations are common to all of the techniques while others are
more frequently encountered with some ones. The problems generally include:
1. Unclear standards of evaluation - Problems with evaluation standards arise because
of perceptual differences in the meanings of the words used to evaluate employees.
Thus good, adequate, satisfactory and excellent may mean different things to different
evaluators. This difficulty arises most often in graphic rating scales but may also appear
with essays, critical incidents and checklists. There are several ways to minimize this
problem. The best way is to develop and include descriptive phrases that define the
meaning of each dimension or factor and training raters to apply all ratings consistently
which will at least reduce the potential rating problems.
2. Hello effect - It is a problem, which arises in performance evaluation when a
supervisor’s ratings of a subordinate on one trait bias the ratings of the person on other
traits. Hello error can be either negative or positive, meaning that the initial impression
can cause the ratings to be either too low or too high. Being aware of this problem is a

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 major step towards avoiding it. Supervisory training can also alleviate the problem.
Besides allowing the rater to evaluate all subordinates on one dimension before
proceeding to another dimension can reduce this type of error.
3. Central Tendency - occurs when a rater avoids using high or low ratings and assigns
average ratings. For example, if the rating scale ranges from 1 to 7, they tend to avoid
the highs (6 and 7) and lows (1 and 2) and rate most of their people between 3 and 5.
This type of “average” rating is almost useless-it fails to discriminate between
subordinates. Thus, it offers little information for making HRM decisions-regarding
compensation, promotion, training, or what should be feedback to rates. Raters must be
made aware of the importance of discriminating across rates and the use of evaluations.
This sometimes stimulates raters to use less central (average) ratings. Rankings
employees instead of using graphic rating scale can reduce this problem, since ranking
means you cannot rate them all average.
4. Leniency or harshness error - This problem occurs when a supervisor has a tendency
to rate all subordinates either high or low. Some raters see everything as good- these are
lenient raters. Others-raters see everything as bad these are harsh raters. This strictness
or leniency problem is especially severe with graphic rating scales, when firms do not
tell their supervisors to avoid giving all their employees high or low ratings. One
mechanism used to reduce harsh and lenient rating is to ask raters to distribute ratings-
forcing a normal distribution. For example, 10 percent of subordinates will be rated as
excellent, 20 percent rated as good, 40 percent rated as fair, 20 percent rated below fair,
and 10 percent rated as poor.
5. Recency of Events Error - This rating error occurs when a manager evaluates
employees on work performance most recently, usually one or two months prior to
evaluation. Raters forget more about past behavior than current behavior. Thus, many
workers are evaluated more on the results of the past several weeks than on six months
average behavior. Some employees are well aware of this difficulty. If they know the
date of the evaluation, they make their works to be visible and noticed in many positive
ways for several weeks in advance. This problem can be mitigated by using techniques
such as critical incident or MBO or by conducting irregularly scheduled evaluations.
6. Contrast effects - In individual evaluation techniques each employee is supposed to be

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 rated without any regard to another employee’s performance. Some evidences however
show that supervisors have very difficult time doing this. If the supervisor lets an
employee’s performance is rated based on the ratings that are given to someone else, it
is said that a contrast effect has occurred. Supervisors who rate their employees should
take the greatest care in evaluating workers separately based on independent
performance.
7. Personal bias error - A personal bias rating error is an error related to a personal bias
held by a supervisor. There are several kinds of personal bias errors; some can be
conscious such as discrimination against someone because of the appraiser’s personal
characteristics like age, sex and race. Some supervisors might try to “play favorites”
and rate the people they like better than people they do not like. Other personal bias
errors occur when a rater gives a higher rate because the worker has qualities or
characteristics similar to the rater.
8. Similar-to-Me Error - An error in which an appraiser inflates the evaluation of an
employee because of a mutual personal connection.
9. Problem with the appraised - For a system of performance appraisal to function well, it
is important that employees regard it as potentially valuable to improve their
competence and to achieve organizational goals successfully. However, most efforts of
performance evaluation are narrowly focused and oversimplified that they give little
regards to the favorable perception of employees.

A substantial amount of employee’s negative attitude towards appraisal results from their
doubt about the validity and reliability, and performance feedback or ratings presented by
their appraisers. Employees often question appraisers’ competence in appraisal, and
consequently tend to lose trust and confidence in their appraisers and often resist accepting
performance ratings.
Another appraisal problem often realized is employees’ reaction to appraisal result of low
ratings. Most employees have difficulty in facing appraisal results involving negative
feedback about their performance. Such a feedback often develops in employees a sense of
tension, friction, insecurity, embarrassment, frustration, anger, resentment, and anti-
feelings and action.

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Performance appraisal may be less effective than expected if the employee is not work-
oriented and if he sees work only as a means of personal satisfaction. Such an employee
may see an appraisal program as only a system of paper work, unless the appraisal results is
so negative that the employee fears termination of his employment.
In sum, for performance appraisal to work well, the employee must understand it, must feel
that it is fair, and must be work oriented. One way to foster this understanding is for the
employees to participate in the design and operation of the system and to train them to
some extent in performance appraisal.
In general, there are problems with performance appraisal: with the appraisers, and with the
employees. It is, however, believed that the suggestions presented hereunder may improve
the system of performance appraisal.

5.8Ways of avoiding appraisal problems

1. Improving validity and reliability of performance criteria
Validity problem – performance criteria are intended to accurately or objectively measure
the performance and potential of employees. When more subjective criteria are used, the
appraisal becomes less valid for decision making and career guidance. The most common
validity errors are caused due to the hallo effect, the recent behavior bias, the central
tendency and the similar to me errors.
Reliability problems: Appraisals may lack reliability because of the inconsistent use of
differing standards and lack of training in appraisal techniques.
2. Adopting multiple appraisal and different timing
Because of bias and hello effects, it may be more useful to adopt multiple rather than single
appraisal techniques and also the appraisers who rate employees’ performance. While the
ratings of one appraisal may not be valid, the overall pattern of several ratings provides an
indication of overall performance and potential for development. Appraisal can be
improved by being done several times a year rather just once.
3. Providing better feedback
The result of the appraisal, along with suggestions for improvement, should be
communicated to the appraised as soon as possible. The skill with which the appraiser
handles the appraisal feedback is the factor in determining whether the appraisal program is

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effective in changing employee behavior or not.

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