TRAINING AND

DEVELOPMENT AND Mod 4

PERFORMANCE
APPRAISAL
Contents
4.1 Talent Optimization 4.4 Career Planning and
 4.1.1 Key Components of Talent Optimization
 4.1.2 Benefits of Talent Optimization
Development
 4.4.1 Career Planning
4.2. Training and Development:  4.4.2 Importance of Career Planning
 4.2.1 Objectives of Training
 4.2.2 Importance of Training
in People Management
 4.2.3 Identification of Training and Development  4.4.3 Career Development
Needs  4.4.4 Stages of Career Development
 4.2.4 Methods of Training
 4.4.5 Roles in Career Development
4.3 Performance Appraisal  4.4.6 Career Development Initiatives
 4.3.1 Needs of Performance Appraisal
 4.3.2 Objectives of Performance Appraisal
 4.4.7 Challenges of Career
 4.3.3 Methods of Performance Appraisal Development
 4.3.4 Barriers to Effective Appraisal
 4.3.5 How to Overcome Barriers to Effective
Appraisal
Talent Optimisation
Talent optimization is a strategic approach that aligns an
organization's talent strategy with its business objectives to drive
success and maximize the potential of its workforce.
It encompasses a set of practices aimed at optimizing four key
elements of talent: hiring, inspiring, engaging, and retaining
employees.
By integrating data-driven insights, behavioural science, and
strategic planning, talent optimization enables organizations to
build high-performing teams, foster a culture of engagement, and
ultimately achieve their goals more effectively.
TALENT OPTIMISATION
Talent optimization is a strategic approach that aligns an
organization's talent strategy with its business objectives to drive
success and maximize the potential of its workforce. It
encompasses a set of practices aimed at optimizing four key elements of
talent: hiring, inspiring, engaging, and retaining employees.
By integrating data-driven insights, behavioural science, and
strategic planning, talent optimization enables organizations to
build high-performing teams, foster a culture of engagement, and
ultimately achieve their goals more effectively.
Talent Optimisation
Key Components of Talent Optimization
Diagnose
 The diagnose phase involves a thorough assessment of the current workforce
conditions to identify gaps, weaknesses, and opportunities for improvement. This
step includes analysing data from past recruitment efforts, assessing
communication issues within the workplace, identifying potential toxic
environments, and evaluating overall employee morale and productivity.

Design
 In the design phase, organizations create a strategic people plan based on
insights from the diagnosis. This involves aligning roles, responsibilities, and
organizational structure with the business strategy.
Talent Optimisation
Key Components of Talent Optimization
Hire
 The hire phase focuses on implementing a data-driven recruitment process that
aligns with the company's strategic goals. This involves using behavioural and
cognitive assessments to evaluate candidates, conducting behavioural-based
interviews, and ensuring clear job descriptions.

Inspire
 The inspire phase aims to motivate and engage employees by fostering a
positive work environment and effective communication. This includes crafting
compelling messages that align with the company’s vision, providing updated
tools and resources, and enhancing communication.
 Talent Optimisation
Benefits of Talent Optimization
 Enhanced Performance
 Improved Employee Engagement
 Better Recruitment and Retention
 Increased Innovation
 Effective Leadership Development
 Adaptability and Resilience
 Enhanced Collaboration and Communication
 Better Decision-Making
 Training and
Development
Training is the act of increasing the knowledge and skill
of an employee for doing a particular job. Training is a
short- term educational process and utilizing a
systematic and organized procedure by which
employees learn technical knowledge and skills for a
definite purpose.
Edwin. B. Flippo - “Training is the act of increasing
the knowledge and skill of an employee for doing
a particular job”
Training is the process of imparting necessary and
immediate skills required to perform a present job.
Through training the trainee acquires new skills,
technical knowledge and problem-solving ability.
Training and
Development
Training program should
try to bring positive
changes in

 Knowledge about job and

environment;
 Skills in doing the job, and
 Attitudes
Training and
Development
Objectives of Training
 To Enhance Knowledge of Employees
 To Improve Job-Related Skills
 To Develop Proper Job-Related Attitudes
 To Prepare for Higher Responsibilities
 To Facilitate Organizational Changes
 Training and
Development
Importance of Training
Training is a critical investment for
organizations, as it is viewed not merely as
an optional expenditure but as an essential
component of workforce development.
Large companies often allocate
substantial budgets to training programs
because they recognize the significant
benefits that arise from well-trained
employees.
Effective training enhances job
performance, boosts employee morale,
and fosters a sense of value among staff.
Training and
Development
Benefits of Training to the Organization
 Increased Skills and Knowledge
 Higher Productivity
 Opportunity for Promotion
 Increased Mobility
 Higher Morale
 Fewer Accidents
 Training and
Development
Identification of Training and Development Needs
Identifying training and development needs is essential for ensuring that
employees have the skills and knowledge required to perform their jobs
effectively and contribute to organizational goals.
The process typically involves three types of analyses:
 Organizational analysis,
 Task analysis, and
 Human resource analysis.
 Training and
Development
Organizational Analysis
Organizational analysis is a systematic
approach to identifying and understanding
the training requirements of an
organization.
It involves examining various factors such as
organizational structure, objectives, and human
resource plans to determine the types of training
needed.
The first step in organizational analysis is to gain
a clear understanding of both short-term and
long-term organizational objectives. Management
must assess how specific training inputs can
contribute to achieving these objectives.
 Training and
Development
Organizational Analysis
Key aspects of organizational analysis include:
 Personnel Performance
 Organizational Environment
 Resource Availability
Training and
Development
Task Analysis
Task analysis focuses on the
specific job or task and involves
examining the job's conditions to
determine the necessary skills and
training required to meet
predetermined performance
standards.
The objectives of task analysis
include:
 Job Components
 Performance Standards
 Information Collection
Training and
Development
Human Resource Analysis
Human resource analysis involves evaluating the overall HR
environment of the organization. It includes three main aspects:
 Internal Environment
 External Environment
 Skill Inventory

Following factors should be considered to specific determining

training:
 Areas for Training
 Learning Capacity
 Time Frame
 Job Design and Technology
Training and
Development
Methods of Training Modern Training Methods
 E-Learning
Traditional Training Methods  Webinars and Virtual Classrooms
 On-the-Job Training (OJT)
 Simulation Training
 Classroom Training
 Blended Learning
 Apprenticeships
 Mobile Learning
 Mentoring and Coaching
 Social Learning
 Job Rotation
Performance Appraisal
Performance appraisal is a systematic process for evaluating employees'
performance and understanding their capabilities for further growth and
development. This process typically involves measuring employees'
performance against targets and plans, analyzing the factors influencing
their work, and providing guidance to enhance their performance.
Meaning:
Performance appraisal is the systematic assessment of an individual’s
performance. It is a development tool aimed at the overall enhancement of
both employees and the organization. This evaluation considers factors such
as job knowledge, quality and quantity of output, initiative,
leadership abilities, supervision, dependability, cooperation,
judgment, versatility, and health. It encompasses both past performance
and potential for future growth, recognizing the impact of behaviours on job
results.
Performance Appraisal
Definition of performance appraisal
"It is formal, structured system of measuring, evaluating job related
behaviors and outcomes to discover reasons of performance and
how to perform effectively in figure so that employee, organization
and society all benefits."
"It is a systematic evaluation of an individual with respect to
performance on the job and individual's potential for development"
Performance Appraisal
Uses of Performance Appraisal
 Human Resource Planning
 Recruitment and Selection
 Training and Development
 Career Planning and Development
 Compensation Programs
 Internal Employee Relations
 Assessment of Employee Potential
Performance Appraisal
Objectives of Performance Appraisal
 Salary Increase
 Promotion
 Training and Development
 Feedback
 Pressure on Employees
Performance Appraisal
Traditional Methods
 Ranking Method
 Paired Comparison Method
 Grading Method
 Forced Distribution Method
 Forced Choice Method
 Checklist Method
 Critical Incident Method
 Graphic Rating Scale Method
 Essay Method
 Field Review Method
 Confidential Reports
 Performance Appraisal
Ranking Method:
The ranking method is used to evaluate employees by comparing them
directly against each other to determine their relative standing
within a group. In this method, employees are ranked from the best to the
worst based on overall performance. This approach is straightforward and
easy to implement, especially in smaller organizations, as it provides a clear
distinction between high and low performers.
Paired Comparison Method:
The paired comparison method involves evaluating employees by
comparing them against each other in pairs. Each employee is
compared with every other employee, one at a time, and the better performer
of the pair is noted. This process results in a rank order based on the number
of times an employee is deemed better than others.
 Performance Appraisal
Grading Method:
The grading method classifies employees into predefined categories or
grades based on their performance. Employees are grouped into categories
such as 'Outstanding,' 'Satisfactory,' and 'Needs Improvement' based on their
overall performance against pre-set standards. This method is easy to understand
and administer, making it effective in organizations that need a quick way to
classify employees.
Forced Distribution Method:
The forced distribution method is designed to prevent rating inflation and
ensure a normal distribution of performance ratings across the workforce.
In this method, employees are distributed across a bell curve, with a set
percentage of employees falling into each category, such as the top 10%, middle
80%, and bottom 10%. This approach helps eliminate central tendency and
leniency errors by forcing a distribution of ratings, encouraging differentiation
among employees.
 Performance Appraisal
Forced Distribution Method:
The forced distribution method is designed to prevent rating inflation and
ensure a normal distribution of performance ratings across the workforce.
In this method, employees are distributed across a bell curve, with a set percentage
of employees falling into each category, such as the top 10%, middle 80%, and
bottom 10%. This approach helps eliminate central tendency and leniency errors by
forcing a distribution of ratings, encouraging differentiation among employees.
Checklist Method:
The checklist method simplifies the evaluation process by using a list of
statements or questions to assess employee traits and behaviours. A
checklist containing statements about employee traits, such as punctuality and
teamwork, is completed by the rater, who checks ‘Yes’ or ‘No’ for each item.
 Performance Appraisal
Critical Incident Method:
The critical incident method focuses on specific behaviours that are critical
to job performance. In this method, supervisors record specific incidents where
employees exhibited particularly effective or ineffective behaviours. These
incidents are then used to evaluate overall performance. This approach provides
concrete examples of employee behaviours, making feedback more specific and
actionable, and it reduces regency bias as incidents are recorded throughout the
appraisal period.
Graphic Rating Scale Method:
The graphic rating scale method provides a quantitative measure of
employee performance based on various traits and characteristics.
Raters use a scale, such as 1 to 5, to rate employees on various job-related
factors like reliability, communication skills, and job knowledge.
 Performance Appraisal
Essay Method:
The essay method provides a detailed, narrative description of an
employee’s performance. In this method, the rater writes an essay detailing the
employee’s strengths, weaknesses, potential for promotion, and other relevant
performance aspects. This approach offers a comprehensive view of employee
performance and can capture nuances that other methods may miss.
Field Review Method:
The field review method involves an evaluator from outside the employee’s
department to provide an objective assessment. An external reviewer, often
from the HR department, conducts the appraisal through interviews and reviews of
the employee’s performance records. This method offers an unbiased perspective
and is useful for comparing employees across different departments.
 Performance Appraisal
Confidential Reports:
Confidential reports provide a comprehensive review of an
employee’s performance, often used in government
organizations. These reports are typically written by supervisors in a
confidential format, assessing various attributes such as attendance,
initiative, and teamwork.
This method maintains confidentiality and can protect sensitive
information, making it straightforward for supervisors to complete.
 Performance Appraisal
Modern Methods
 Management by Objectives (MBO)
 Behaviourally Anchored Rating Scales (BARS)
 Assessment Centres
 360-Degree Feedback
 Cost Accounting Method
 Performance Appraisal
Management by Objectives (MBO):
Management by Objectives (MBO) aligns
employee performance with organizational
goals by setting specific objectives.
In this method, employees and supervisors
collaboratively set measurable goals and
objectives, and performance is evaluated based
on the achievement of these goals.
This approach encourages clear communication
and accountability, focusing on results and
outcomes rather than activities. However, it may
not be suitable for all job types, particularly those
with unpredictable workloads, and can lead to
short-term thinking if only immediate goals are
emphasized.
 Performance Appraisal
Behaviourally Anchored Rating Scales (BARS):
Behaviourally Anchored Rating Scales (BARS) combine quantitative and
qualitative assessments by linking specific behaviours to numerical
ratings. Specific behaviours that exemplify different levels of performance
are identified and anchored to points on a rating scale.
This method provides clear standards for evaluation and helps reduce
rating errors, offering a more detailed assessment of performance.
However, developing BARS can be time-consuming and requires extensive
input from multiple stakeholders, and it may also be complex to administer.
 Performance Appraisal
Assessment Centres:
Assessment centres evaluate employees’
potential for higher-level positions through
simulated exercises and activities.
Employees participate in various exercises, such
as group discussions, role-playing, and in-basket
exercises, observed by trained evaluators.
This method provides a comprehensive
evaluation of an employee’s abilities and
potential, being highly predictive of future
job performance. However, it is expensive and
resource-intensive to administer, can be stressful
for participants, and may not reflect actual job
performance due to its simulated nature.
Performance Appraisal
360-Degree Feedback:
360-degree feedback provides a well-rounded view of an
employee’s performance by collecting feedback from multiple
sources. Feedback is gathered from various stakeholders, including
supervisors, peers, subordinates, and sometimes customers, and then
compiled to give an overall performance rating.
This method offers diverse perspectives and can enhance self-
awareness and development, encouraging open communication
and feedback. However, the process can be time-consuming and may
lead to inconsistent feedback if raters are not trained properly. It can also
be intimidating for employees to receive feedback from multiple sources.
 Performance Appraisal
Cost Accounting Method:
The cost accounting method assesses
employee performance based on the financial
returns they generate for the organization.
In this approach, the cost to keep an employee is
compared against the benefits or returns they
provide to the organization, focusing on cost-benefit
analysis.
This method is highly objective and
straightforward, based on financial metrics,
and provides a clear measure of the economic
value added by an employee. However, it may
not capture the qualitative aspects of performance,
such as teamwork or creativity, and can be less
comprehensive in evaluating overall employee
contributions.
Performance Appraisal
Barriers to Effective Appraisal
Performance appraisal is a vital process used by organizations
to evaluate the performance and potential of their
employees. While it is widely used, the process is not without its
shortcomings and limitations.
Various barriers can impede the effectiveness of appraisal systems.
These barriers can vary in their impact depending on the
specific appraisal method employed. Understanding these
barriers is essential for implementing measures that minimize their
negative effects. These barriers can be broadly categorized into
three groups: faulty assumptions, psychological blocks, and
technical pitfalls.
Performance Appraisal
Barriers to Effective Appraisal
Faulty Assumptions
Faulty assumptions made by both supervisors and subordinates can
significantly undermine the effectiveness of the appraisal process.
These assumptions can create misconceptions that affect the
objectivity and accuracy of the evaluations:
 Misbelief in Objective Appraisal
 Overreliance on Appraisal Systems
 Preference for Personal Opinions
 Misconception About Employee Feedback
Performance Appraisal
Barriers to Effective Appraisal
Psychological Blocks
The effectiveness of performance appraisal systems also heavily
depends on the psychological characteristics of the managers
conducting them. Several psychological blocks can hinder the
appraisal process, making it less objective and effective:
 Feelings of Insecurity
 Perception of Appraisal as a Burden
 Excessive Modesty or Scepticism
 Projection of Personal Failures
 Aversion to Conflict
 Reluctance to Communicate Poor Performance
 Performance Appraisal
Barriers to Effective Appraisal
Technical Pitfalls
Technical issues related to the design
and implementation of appraisal
systems can also create significant
barriers. These issues often arise from
the lack of precise criteria and the
introduction of various biases:
 Criterion Problem
 Distortions
 Halo Effect
 Central Tendency
 Constant Errors
 Personal Biases
 Performance Appraisal
Overcoming Barriers to Appraisal
A systematic performance appraisal is a crucial measurement process that
aims to be reliable, accurate, and consistent.
However, two main obstacles can hinder the reliability of an appraisal system:
the technical characteristics of the system itself and the abilities of the
appraiser to exercise objective judgment and effectively apply the tools
provided.
Addressing these obstacles with appropriate actions can reduce their impact
and enhance the effectiveness of performance appraisals.
Performance Appraisal
Overcoming Barriers to Appraisal
The following measures can be taken to overcome these barriers:
 Ensuring Reliability of the Rating System
 Designing an Effective Appraisal System
 Involvement of Immediate Superiors and Staff Department
 Reviewing Ratings with Employees
 Providing Effective Feedback
 Adopting a Supportive Management Philosophy
Performance Appraisal
Barriers to Effective Appraisal
Faulty Assumptions
Faulty assumptions made by both supervisors and subordinates can
significantly undermine the effectiveness of the appraisal process.
These assumptions can create misconceptions that affect the
objectivity and accuracy of the evaluations:
 Misbelief in Objective Appraisal
 Overreliance on Appraisal Systems
 Preference for Personal Opinions
 Misconception About Employee Feedback
Performance Appraisal
Barriers to Effective Appraisal
Psychological Blocks
The effectiveness of performance appraisal systems also heavily depends
on the psychological characteristics of the managers conducting them.
Several psychological blocks can hinder the appraisal process, making it
less objective and effective:
 Feelings of Insecurity
 Perception of Appraisal as a Burden
 Excessive Modesty or Scepticism
 Projection of Personal Failures
 Aversion to Conflict
 Reluctance to Communicate Poor Performance
 Career Planning and
Development
Key Concepts
Career: A career encompasses the overall progress and general course
of action a person undertakes within a profession or an organization. It
includes the various jobs that a person performs over time, the responsibilities
and activities associated with those jobs, transitions between different roles,
and the individual's overall satisfaction and perception of their professional
journey.
Career Planning: Career planning involves the process by which
individuals set their career goals and identify the steps needed to
achieve them. It is a strategic approach that considers personal interests,
values, skills, and the opportunities available within or outside the organization.
Career planning is a self-directed effort that empowers individuals to take
control of their career paths.
Career Planning and
Development
Key Concepts
Career Development: Career development is the continuous process of
managing life, learning, and work in order to move toward a desired future. It
is a broader concept that includes not only career planning but also the
development of skills, knowledge, and experiences that support career
advancement. Career development involves proactive actions to acquire new
competencies, explore different roles, and pursue opportunities that align
with career aspirations.
Career Management: Career management refers to the organizational
efforts to assist employees in planning and managing their careers. It includes
providing resources, training, mentoring, and opportunities for growth that
support employees in achieving their career goals. Effective career
management practices help organizations retain talent, foster employee
engagement, and build a robust leadership pipeline.
 Career Planning and
Development
Career Planning
Career planning is a systematic
process through which an individual
sets career goals and identifies the
means to achieve them.
For organizations, career planning
involves creating opportunities for
employees to develop their skills and
advance within the company. It is an
ongoing process that requires continuous
assessment and adjustment based on
personal growth, changes in job markets,
and organizational shifts.
Career Planning and
Development
Importance of Career Planning in People Management
Employee Engagement and Retention
Skill Development
Organizational Growth
Employee Satisfaction
Succession Planning
 Career Planning and
Development
Career Development
Career development is a comprehensive process aimed at
fostering the professional growth and advancement of
individuals within their careers. It extends beyond the
scope of training, which is typically designed to improve
specific skills and enhance immediate job performance. Unlike
training, which is generally group-oriented and has a defined
timeframe, career development is a personalized and ongoing
process tailored to the individual's career goals and aspirations.
Stages of Career Development
 Entry to the Organization
 Progress within Particular Areas of Work
 Mid-Career
 Later Career
 End of Career
 Career Planning and
Development
Traditional vs. Modern Approaches to Career Development
Traditionally, career development focused on paid work within a
single or limited number of organizations, embodying the
notion of a "job for life." This approach emphasized a linear career
path with continuous vertical progression through the organizational
hierarchy. Careers were structured around established paths or
ladders, with employees moving sequentially through a series of jobs
to achieve predetermined objectives.
In contrast, modern career development recognizes the dynamic
and evolving nature of careers in today's rapidly changing
work environment. It acknowledges that careers may no longer be
confined to a single organization or follow a linear trajectory. The
emphasis is now on flexibility, adaptability, and lifelong
learning, with individuals taking on multiple roles, projects, and
assignments across different organizations and industries.
 Career Planning and
Development
Roles in Career Development
Career development involves multiple stakeholders, each playing a unique
role in fostering growth and advancement. The four main stakeholders are
the organization, manager, HR professional, and employee.
Organization
 Developing Career Ladders
 Responding to Change
 Engagement and Support

Manager
 Career Advocacy
 Developmental Assignments
 Resource Allocation
 Future Focus
Career Planning and
Development
Roles in Career Development
HR Professional
 Policy Alignment
 Creating Positive Behaviour
 Investing in Talent

Employee
 Self-awareness
 Goal Setting
 Proactive Engagement
 Understanding Trends
Career Planning and
Development
Career Development Initiatives
Organizations employ various initiatives to facilitate and support
the career development of their employees. Some of the most
significant initiatives include career planning workshops, career
counselling, mentoring, sabbaticals, secondments, personal
development plans, and career workbooks. Each initiative plays a
unique role in helping employees grow and achieve their career
goals.
Workshops
Career Counselling
Career Planning and
Development
Career Development Initiatives
Mentoring
 Knowledge Transfer
 Relationship Building
 Cultural Transmission
 Development of New Insights
 Psychological Support

Sabbaticals
Secondments
Personal Development Plans
(PDPs)
Career Workbooks
Career Planning and
Development
Additional Career Development Activities
Other career development activities include:
Performance Appraisal for Career Planning: Using appraisals to
discuss career goals and development plans.
Lateral Moves/Job Rotations: Providing opportunities for employees to
work in different roles or departments.
Pre-Retirement Programs: Preparing employees for retirement by
addressing financial planning and lifestyle changes.
Succession Planning: Identifying and preparing future leaders for key
roles.
Clear Career Paths: Defining progression routes within the organization.
Career Planning and
Development
Dual Ladder Career Paths: Offering alternative career
progression paths for technical and managerial roles.
Career Booklets/Pamphlets: Providing information about career
development opportunities and policies.
Assessment Centres: Evaluating employees' potential for various
roles through simulations and exercises.
Management Development Programs: Training future leaders
to enhance their skills.
Orientation Programs: Introducing new employees to the
organization and its culture.
Career Planning and
Development
Diversity Management: Promoting an inclusive workplace that
supports diverse career paths.
Expatriation, in patriation, and Repatriation: Managing
international assignments and transitions.
Formal Education: Encouraging employees to pursue formal
education as part of their career development.
Retirement Preparation Programs: Helping employees plan for
life after retirement.
Peer Appraisal: Using peer feedback for development.
Upward (Subordinate) Appraisal: Gathering feedback from
subordinates to aid managers' development.
Career Planning and
Development
Challenges of Career Development
HR leaders must navigate several challenges when managing
employee careers. These challenges can hinder the effectiveness of
career development programs and affect overall employee growth
and organizational success.
Laissez-Faire Attitude of Management
A significant challenge arises when management adopts a laissez-
faire approach, assuming that their sole responsibility is to
identify talent and that talented individuals will naturally rise
in their careers. This hands-off approach often results in a failure to
nurture and develop employees' potential, leading to wasted latent
talent.
Career Planning and
Development
Misconception About Job Rotation and Overseas Assignments
Another common challenge is the assumption that job rotations or overseas
assignments are inherently developmental experiences. While these
experiences can provide valuable exposure and learning opportunities, they
are not automatically developmental.
Rapid Role Changes
Moving high-potential employees from one role to another too quickly presents
another challenge. Rapid transitions can prevent employees from
gaining valuable experience, learning from mistakes, and developing a
deep understanding of their roles. Quick moves might make it difficult for
individuals to consolidate their learning, which is crucial for long-term career
development and success. Without sufficient time to learn and grow in each
position, employees may miss out on crucial development opportunities.
Career Planning and
Development
Overambitious Employees
Some individuals are overly ambitious, impatient, and eager to
climb the corporate ladder as quickly as possible. They may fail to
understand that rising to the top is a gradual, time-consuming
process that requires patience, persistence, and continuous
learning. These employees might expect rapid promotions akin to
what is depicted in movies—moving from management trainee to
CEO in a matter of days.