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TRAINING AND DEVELOPMENT /

PERFORMANCE MANAGEMENT
TRAINING AND DEVELOPMENT

Refers to organized learning Training focuses on learning the


activities in the organization to necessary skills required to perform
improve performance and/or a job.
personal growth for the purpose of
Development focuses on the
improving the job, the employee and
preparation needed for future jobs
the organization.
or jobs that an individual may
potentially hold in the future, and is
evaluated against those jobs.
TYPICAL REASONS FOR EMPLOYEE
TRAINING AND DEVELOPMENT
1. When a performance appraisal indicates performance improvement is needed.
2. To “benchmark” the status of improvement so far in a performance
improvement effort.
3. As part of an overall professional development program.
4. As part of succession planning to help an employee eligible for a planned
change in role in the organization.
5. To “pilot” or test the operation of a new performance management system.
6. To train about a specific topic such as computer skills, quality assurance,
communications, supervisory, customer service, human relations, how to handle
a grievance and discipline, labor relations, safety, negotiations, and many others.
SPECIFIC BENEFITS FROM MEMPLOYEE
TRAINING AND DEVELOPMENT
1. Increased job satisfaction and morale
2. Increased employee motivation
3. Increased effectiveness in processes, resulting in financial gain
4. Increased capacity to adopt to new technologies and methods
5. Increased innovation in strategies and products
6. Reduced employee turnover
7. Enhanced company image
8. Improved risk management and ethical behavior in business
THE FOUR-STAGE TRAINING CYCLE
 STAGE ONE: Training Needs Analysis
The TNA will provide a systematic assessment of the organization, the task,
and the employee.

Organization
Task Analysis Person Analysis
Analysis

What are strategies/ In what do they need Who needs training?


goals? training?
Reasons for training: Outcomes:
• Lack of basic skills • Who receives training
• Poor performance • What trainees need to
• New technology learn
• Customer Problems • Types of training
• New Products • Frequency of training
• Higher performance • Buy of develop training
standards decisions
• New/restructured jobs • Training methodology
THE FOUR-STAGE TRAINING CYCLE

Organization Analysis - The process of reviewing the development, work


environment, personnel and operation of a business or another type of
association. Performing a periodic detailed organizational analysis of a
company can be a useful way for management to identify problems or
inefficiencies that have arisen, but have not yet been addressed, and then
develop strategies for dealing with them.
Task Analysis – This activity involves identifying the important tasks and job-
related Knowledge, Skills and Attributes (KSA) that need to be emphasized in
training for employees to complete their tasks.
Person Analysis – Identifies gaps between skills and competency required of
the job and the actual skills and competencies possessed by the employees.
THE FOUR-STAGE TRAINING CYCLE

Other Issues on Training Needs Assessment


Ensuring Employees’ Readiness for Training – Readiness for training means
personal characteristic – such as ability, attitudes, beliefs and motivation.
Creating a Learning Environment – Managers play a pivotal role in creating a
learning environment. They must communicate to employees the benefits of
training.
Ensuring Transfer of Training – Transfer of learning is the proof that training was
effective. The transfer must be visible or tangible enough to conclude that a
transfer of learning is made.
THE FOUR-STAGE TRAINING CYCLE

 STAGE TWO: Planning the Training


A training plan describes the key decisions, tasks and resources needed to develop
a strategy for developing training.

On-the-Job Training (OJT)


- This is the training done while the employee is on the job. Usually, the
supervisor or a more senior employee experienced on the job does the instruction.
- The advantage of OJT is that it provides instant entry into the job.
- The downside is on the attitude and qualifications of a supervisor in training.
THE FOUR-STAGE TRAINING CYCLE

Practicum is required by schools for graduating college students to undertake


practicum in companies for a certain number of hours before they can graduate.
Mentoring and coaching are done mostly in supervisory jobs to improve trainee's
knowledge.
Simulation is a training method that represents a real-life situation.
Distance learning, web-site based and E-learning is an emergent and
sophisticated method of training done through the internet or intranet.
THE FOUR-STAGE TRAINING CYCLE

Off-site Training - There is no doubt that training in company has cost-benefit


advantage provided that training facilities are adequate and no distractions are
allowed during training.
Company or Outsourced Training Provider - Only very few big companies
provide a complete in-house training. No matter how big the training company is,
it cannot house all the experts in the country. This is specially true with
managerial, professional and technical training. Besides, training done by the
same time resource person all the time, creates boredom to the trainees.
THE FOUR-STAGE TRAINING CYCLE

 STAGE THREE: Implementing the Training


To put the training program into effect according to definitive plan or procedure is
called training implementation. A great training can be upset by poor
implementation.

Training implementation can be segregated into two segments:

• Practical administrative arrangements


• Carrying out of the training
THE FOUR-STAGE TRAINING CYCLE

Practical Administrative Arrangements - Before the training starts, checklist is


prepared which checks if the staff support, course content, equipment and
facilities are now ready.
Carrying Out The Training - The trainer is the key to the success of the training.
THE FOUR-STAGE TRAINING CYCLE
It would be good to give an overview of the Establishing rapport with the participants is
program and ground rules that should important. There are various ways by which a
include the following: trainer could establish rapport.

1. Topics to be covered 1. Greeting participants and giving some "ice-


breakers"
2 . Kinds of training and activities 2. Encouraging informal conversation
3. Time schedules 3. Calling them by their first names
4. Setting group norms 4. Listening carefully to trainee's comments
5. Housekeeping arrangements and opinions
6. Flow of the program 5. Starting the sessions promptly at the
scheduled time
7. How questions will be encouraged and 6. Using familiar examples
responded
7. Varying familiar examples
8. Using alternative approaches if one seems
to bog down
THE FOUR-STAGE TRAINING CYCLE

 STAGE FOUR: Evaluating the Outside of the trainees’ reactions which


Training are called “effective” outcomes, results
are evaluated on the following criteria:
The training process does not end
1. Learning that occurred – Trainees may
when training is completed. Its be given a paper-and-pencil test to
effectiveness must be evaluated determine if they have mastered the
against its outcomes. knowledge and information presented.
2. Behavior changes – Assessing
behavior involves observing whether the
trainees applied what they have learned.
3. Impact or corporate objectives –
Management is much interested in
assessing results as they impact om
corporate objectives.
PERFORMANCE MANAGEMENT

Performance Management is a part of the major systems of organizational


control.
Performance Management is the systematic process by which an organization
involves its employees, as individuals and members of a group, in improving
organization’s mission and goal.
It is also defined as “the process through which managers ensure that
employees’ activities and outputs are congruent with the organization’s goals.
PERFORMANCE MANAGEMENT

Performance Management System has five parts:

1. PLANNING – Means setting performance expectations and goals for individuals or


group of individuals to channel their efforts toward achieving organizational
objectives.
2. MONITORING – Means consistently measuring performance and providing ongoing
feedback to employees on their progress toward reaching their goals.
3. DEVELOPING – Provides an excellent opportunity to identify training and
developmental needs.
4. RATING – Summarizes employee performance over a certain period.
5. REWARDING – Recognizes employees for their performance and acknowledges
their contributions to the organization’s strategic objectives.
PERFORMANCE MANAGEMENT

Purposes of Performance Management System (PMS)


- PMS has 3 major purposes

1. STRATEGIC - There should be a link between the employee’s activities to the


organization’s goals. That’s why when a manager and his subordinate sit down to
work on the performance plan, the first question that should be asked is: What are
the strategic goals of the company and how can the employee support these goals?
2. ADMINISTRATIVE – Organizations use performance management system
particularly the performance appraisal as the basis for administrative action such as:
salary increases, recognition if high achievers, promotion, demotion, lay-offs,
discipline and termination.
3. DEVELOPMENTAL – This is another common purpose of performance management
– to develop people with potential or overcome their shortcomings. Managers often
feel uneasy confronting employees with their shortcomings or weaknesses.
PERFORMANCE APPRAISAL

Defined as a method by which the job performance of an employee is evaluated


generally in terms of quality, quantity, cost and time.

Performance appraisal has two-fold purposes:


• Evaluation – provides the basis for personnel actions.
• Feedback – focuses on the development of the employee including the
identification of coaching and training needs.
MANAGEMENT AND CAREER DEVELOPMENT
Continuous training is necessary to enhance their Some of the most popular training conducted for the
management competencies and career management team either inside or offsite are:
advancement. • Problem-solving and decision-making
• Negotiations and conflict resolution
• Leadership
• Communication
• Delivering results
• Conducting performance appraisals
• Motivating employees
• Developing interpersonal relations
• Labor relation
• Managing change

Some companies also rotate their managers from one


functional unit to another.
Some companies conduct formal management training
programs like San Miguel Corporation, PLDT and
Meralco who have their own training centers.
BASIC REQUISITES OF A GOOD
PERFORMANCE APPRAISAL
A good performance appraisal system is a product of preparation and planning.

The process involves the following steps:

1. Clarify purpose of the job, job duties and responsibilities.


2. Define performance goals with measurable outcomes.
3. Define the priority of each job responsibility and goal.
4. Define performance standards for each goal set.
APPROACHES TO MEASURING
PERFORMANCE
There are various approaches in measuring performance. The most common are
the following:

The Comparative Approach - It consist of techniques that require the rater to


compare the performance. The techniques are categorized into three:

1. Banking – It simply requires a manager to rank employees in his department


from the highest to the lowest or from the best to the worst.
2. Forced Distribution – Employees’ performance is ranked in groups.
3. Paired Comparison – otherwise known as pairwise comparison, it generally
refers to the process of comparing entities in pairs to judge which of each pair is
preferred, or has a greater amount of some quantitative property.
APPROACHES TO MEASURING
PERFORMANCE
The Attribute Approach – It starts on the premise that employees have certain
traits or attribute believed to be desirable for the organization’s success. It
identifies and defines such traits as leadership, initiative, maturity,
competitiveness, interpersonal skills, creativity, problem solving, communication
and evaluates employees on them.

1. Graphic Rating Scale – A list of traits is evaluated by a five-point (or some other
number of points) scale.
2. Mixes Standard Scale – It was developed to get around some of the problems
with graphic rating scale.
APPROACHES TO MEASURING
PERFORMANCE
The Behavioral Approach – It tries to identify and define behaviors of employees that
employees may exhibit to be effective on the job.

1. Critical Incidents – It requires managers to log specific incidents as specific examples


of what is effective and ineffective performance of employees.
2. Behaviorally-Anchored Rating Scales (BARS) – It is an appraisal method that aims to
combine the benefits of narratives, critical incidents, and qualified ratings by anchoring
a qualified scale with specific narrative examples of good or poor performance.
3. Behavioral Observation Scales (BOS) – It is a variation of the BARS. It differs in two
ways. First, instead of discarding large numbers of behaviors that exemplify effective
or ineffective performance. Second, rather than assessing which behavior best reflects
an individual’s performance, it requires managers to rate the frequency with which the
employee has exhibited each behavior during the rating period.
4. Organizational Behavior Modification (OBM) – This term appears to have been first
used by Edward Thorndike in 1911. It has since come to refer mainly to techniques for
increasing adaptive behavior through reinforcement and decreasing maladaptive
behavior through reinforcement.
APPROACHES TO MEASURING
PERFORMANCE
The Results Approach – It is premised on the assumption that subjective rating
can be eliminated from the measurement process and that results are the
closest indicator of one’s contribution to organizational effectiveness.

1. Management by Objectives (MBO) – Is a process of agreeing upon objectives


within an organization so that management and employees agree to the
objectives and understand what they are in the organization.
2. The term “MBO” was first popularized by Peter Drucker in his book “ The Practice
of Management.”
3. Productivity Measurement and Evaluation System (PROMES) – Its main goal is
to motivate employees to higher levels of productivity.
APPROACHES TO MEASURING
PERFORMANCE
PROMES consists of four steps:

First, People in an organization identify the products, or set of activities or


objectives, the organization expects to accomplish. Its productivity depends on how
well it produces its product.
Second, the staff defines indicators of the products. Indicators are measures of
how well the products are being generated by the organization.
Third, the staff establish the contingencies between the amount of the indicators
and level of evaluation associated with the amount.
Fourth, a feedback system is developed that provides employees and work groups
with information about their specific level of performance on each of the indicators.
APPROACHES TO MEASURING
PERFORMANCE
The Quality Approach – It is anchored on customer satisfaction through an
effective quality assurance system. Its aim is to ensure quality standards are
maintained. There has been so much focus on quantity as a measure of
performance without taking into account quality.

360 – DEGREE APPRAISAL – Perhaps no performance appraisal system has


stirred a lot of controversy than the 360 degree appraisal. The system also
known as “multi-rater feedback,” “multisource feedback,” or “multisource
assessment,” is feedback that comes from all around an employee.
RATER ERRORS IN PERFORMANCE
APPRAISAL – Human judgement is far from perfect and their weakness is an important factor
behind the controversies associated with performance appraisals. It is essential that rates must be
trained to be aware of some rating errors. The most common errors are the following:

1. Contrast Effects – The tendency for a rater to evaluate a person relative to other individuals rather
than on the extent to which the individual is fulfilling the requirements of the job.
2. First Impression – The tendency of a rater to make an initial favorable or unfavorable judgement
about an employee that is not justified by the employee’s subsequent behavior.
3. Halo Effect – Inappropriate generalization from one aspect of a person’s preference to all aspects
of the person’s job performance.
4. Similar to me – A tendency for people to be judged more favorably who are similar, rather than
dissimilar to the rater in attitudes and background, even if the latter are not job-related.
5. Distributional – Rater’s tendency to use only one part of the rating scale. Leniency occurs when a
rater assigns high (lenient) rating to all employees.
6. Negative and Positive Tendency – Consistently rating people at the low or high end of the scale.
7. Recency – The tendency to rate people based upon the most recent performance, instead of on the
entire rating period.
THE PERFORMANCE FEEDBACK
PROCESS
Developing a performance plan, setting the standards with the subordinates is one thing.

The following process increases the potential of a successful, collaborative performance


feedback session:

• Frequent feedback is better than yearly feedback


• Establish a comfortable, private setting and rapport
• Ask the employee to rate his performance before the session
• Encourage the employee to be open and participate in the discussion
• Focus on solving problems
• Give praise where it is due
• Avoid personalities, focus on behavior
• Agree on action plans and set a date to review progress

MANAGING A PROBLEMATIC EMPLOYEE – Whether the purpose of PMS is strategic,


administrative or developmental.