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benefits of training and development include: Increased morale Better interpersonal relationships Improved customer relationship Capability to adapt

to changes Greater innovation Improved employee image and company image Improved productivity and efficiency

Training in an organization may be of two types - internal and external. Internal training sessions are typically organized by the Human Resources Department and are held in-house. Training is generally held by a talented senior staff in a particular department. External training is arranged from an external agency and is handled mostly by consultants and training institutes. According to research, organizations must invest in both internal as well as external training sessions to give their employees the right mix of skills and knowledge. While internal training improves knowledge and allows employees to mix with each other, external training provides participants an opportunity to learn new skills, meet new people in a similar field of work and network with them. It also allows them to engage in activities that are not routine.

types of performance appraisal methods. Some of them are : 1) job results/outcome 2) essay method 3) Ranking 4) Forced Distribution 5) Graphic Rating Scale 6) Behavioral Checklist 7) Behavioral Anchored Rating Scales (BARS) 8) Management by Objectives (MBO)

Performance appraisal doesn't benefit only employees. Organizations that use the results of performance appraisal to identify areas of strength and opportunity can benefit as well. Performance appraisal can provide an indication of areas oftraining need as well as direction for leadership development, performance improvement and succession planning. Identifying Areas of Strength The results of performance appraisal can be assessed to identify areas of strong performance across all employees, by department or by demographics. Standardized performance assessments allow companies to aggregate, calculate and analyze results to show where performance is strong. These areas of strength then can serve as benchmarks and opportunities for sharing of best practices for other areas of the organization. Identifying Training Needs Evaluating the results of performance appraisals can provide managers, human resources departments and organizations with an indication of where additional training and development may be necessary, says Lin Grensing-Pophal, author of "Human Resource Essentials." For instance, results may indicate that employees collectively are scoring low on items related to use of technology or customer service. These may become target areas for the creation and implementation of training programs designed to boost employee competence and performance. Results also may be assessed at the individual, department and division levels. Leadership Development and Succession Planning Performance appraisal can provide an indication of employees with leadership potential or leadership development needs. In both cases, the manager and HR department then can develop programs and interventions to either offer employees an

opportunity to exercise their leadership competencies or build skills. Performance appraisal can serve as an input to succession planning by identifying employees with specific competencies that the organization knows it will need in the future due to turnover and retirement; it can highlight external factors affecting the need for new skills. To maximize the use of performance appraisals in this manner, it is important that the appraisals be standardized and that appraisal results be reviewed, assessed and analyzed to identify competencies and development needs across all departments. Have you considered which types of performance appraisal methods work best? There is a huge range of performance management systems to choose from, but in principle modern organizations use three in particular. Each of these have their pros & cons you need to consider before use. These are (i) management by objectives, (ii) 360 degree performance appraisal and (iii) ratings scales. Each has their pros and cons depending on the type of organization you have and your strategies for improving productivity and communication in the workplace. The quarterly or annual performance appraisal method you choose can have a huge bearing on the motivation and assessment of your employees. In basic terms, an appraisal is a formal interaction between employees and their managers to identify strengths and weaknesses in their work throughout a set time period. It also has to be forward-looking towards different opportunities which the employee should be pursuing in order to advance their career. A huge amount of small scale business ideas can come from your own employees. It is not just an opportunity to put bad comments on performance review appraisals regarding past performance. With this in mind, it often has a bearing on what types of promotions your employees can expect. Management by objectives (MBO) Management by objectives (MBO) is a popular performance appraisal method used by organizations to assess employees based on a list of SMART objectives. The employee and their manager sit down at the start of a time period and work out SMART objectives for them to attain. The objective need to be specific, measurable, attainable, relevant and timely (SMART). Suggest comments for a performance evaluation which satisfy each of these objectives. Importantly, the objectives are collaboratively decided upon between the employee and their manager. Peter Drucker (the famous management theorist) came up with this approach back in the 1950s. Example: These types of performance appraisal methods are popular with sales staff and within software engineering enterprises. Being able to define specific goals, objectives and performance review phrases is relatively easy in these two areas so the technique is well-suited. Benefits of this technique: Objectives are collaboratively decided. Easy to establish if the objectives have been attained and productivity improvement gains made. In comparison to other types of performance appraisal methods: MBO is less time-consuming than 360 feedback. The streamlined approach is often suited to small companies whereas 360 feedback requires several interviews in order to gain an assessment of one individual. There are also plenty of performance evaluation examples online given MBO has been around since the 50s. MBO is merit based. By contrast, the rating scale performance appraisal method is more scientific but does not put same emphasis on merit spaced objectives as seen in MBO. 360-degree feedback (also written as 360 feedback) 360 feedback is one of the more common business improvement techniques used in modern organizations, especially for

building stronger teams. This annual performance appraisal method depends upon having a manager/appraiser interviewing peers, colleagues, supervisors and managers of the person being appraised for feedback relating to the employee. An employee is assessed based on technical elements as well as their behavior & character throughout the time period. This level of subjectivity means that a broader range of assessments feed into evaluating each employees performance. The use off off-line/online business systems to create the various feedback forms becomes a necessity. Example: This performance appraisal method is popular in consultancy houses and companies where individuals work on several different projects. Employees who move from project to project wont have set supervisors for long periods of time so more rounded & all-inclusive types of performance appraisal methods are required. Benefits of this technique: Does away with the danger of one bad appraisal affecting an employees promotion opportunities. Highly effective for organizations where employees are involved in several projects, responsibilities or roles. Staff performance appraisal comments can come from several managers and supervisors of your employee. In comparison to other types of performance appraisal methods: 360 feedback reduces the danger of employees being appraised badly due to only having one assessor. This is a common flaw seen in both the management by objectives method and the rating scale methods. Rating scale Using a rating scale is one of the more scientific approaches to appraising staff. It involves employers deciding upon their own grading system to be used for assessing all of their employees. Supervisors assess their direct reports based on this grading system, in much the same way as children in school would be assessed. The range of areas where staff are assessed normally includes technical areas, leadership, communication skills, motivation, etc. The concept with this approach is to make the sample performance review comments you use the subjective or personal. Example: This approach has often been popular within large financial institutions. Companies with well-established operational procedures can often implement grading systems to establish how employees are performing in comparison to these well-formed operational norms. Benefits of this technique: Provides a certain amount of equality in assessing employees. Can be used for comparing various employees doing the same roles when deciding upon promotions. In comparison to other types of performance appraisal methods: The rating scale method is better used in large companies where individuals are doing fairly similar roles. Each can be assessed comparatively. This is something which cannot be done with the management by objectives technique so easily. The rating scale method is also quite scientific and streamlined. Appraisal tasks can be done quite quickly and systematically. These types of performance appraisal methods are certainly a lot quicker than the numerous interviews required for the 360 appraisal technique.