Chapter Four: The Development of HR

This chapter includes three basic

concepts such as
– Training
– Development
– Performance Management
 Unlike other resources, HR has rather
unlimited potential capabilities.
Prepared by Dr. Zerihun k.
3.1 Training

 In a fast paced world, continuous learning is

essential to success.
 Individuals need to learn to succeed in life and
at work. This is because Skills and knowledge
can easily become obsolete as machines and
technology and companies can gain or maintain
competitive advantage
 Differentiate among Training, Education
and Development Prepared by Dr. Zerihun k.
Difference among Training, Dev’t and Education

 Training is a systematic process of changing the

behavior, skill and motivation of employee that will
improve in their current jobs. It focuses on helping
employees to acquire and improve job related skills.
 Development is the process of preparing an employee
for future job responsibility. It is a program focused on
leadership competency and organizational issues.
 Education is any long-term learning activity aimed at
preparing individuals for a variety of roles in society such
as citizens, workers, and others. It is mainly related with
colleges or universities. Prepared by Dr. Zerihun k.
Purpose of Training and Development
 To improve Productivity: Training leads to increased
operational productivity and increased company profit.
 To improve Quality: Better trained workers are less
likely to make operational mistakes.
 To improve Organizational Climate: Training leads to
improved production and product quality which enhances
financial incentives. This in turn increases the overall
morale of the organization.
 To increase Health and Safety: Proper training
prevents industrial accidents.
 Personal Growth: Training gives employees a wider
awareness, an enlarged skill base and that leads to
enhanced personal growth.
Prepared by Dr. Zerihun k.
Types of Training Inputs

 There are three types of training inputs. These

inputs are called KSA
– Skill: mechanical, administration, communication,
computer, customer handling,
– Attitude: change perception, motivation, behavior,
ethics,
– Knowledge: specific or general knowledge

Prepared by Dr. Zerihun k.

Approach in training and Development

 Traditional Approach : Most of the organizations before

never used to believe in training. They were holding the
traditional view that managers are born and not made.
There were also some views that training is a very costly
affair and not worth.
 Modern approach of training and development is that
Organizations have realized the importance of corporate
training. Training is now considered as more of
retention tool than a cost.
– The training system in Industry has been changed to create a
smarter workforce and yield the best results
Prepared by Dr. Zerihun k.
Characteristics of Training

It's
a short term process.
Refers to instruction in technical and
mechanical problems
Targeted in most cases for non-
managerial personnel
Specific job related purpose

Prepared by Dr. Zerihun k.

 Steps in Training Process

 There are five steps followed in Training

Process:
– Step 1: Determining the training need and
objective
– Step 2: Developing training program
– Step 3: Selection of trainee and trainer
– Step 4: Implementation of the training program
– Step 5: Evaluation the training program
Prepared by Dr. Zerihun k.
Step 1: Determining the training need
and objective

 Training is expensive. Unless there is a need, impossible

to design training program. An analysis of training need
is an essential requirement to the design of effective
training.
 The purpose of training need analysis is to determine
whether there is a gap between what is required for
effective performance and present level of performance
 Training need analysis helps to plan the budget of the
company, areas where training is required, and also
highlights the occasions where training might not be
appropriate but requires alternate action
Prepared by Dr. Zerihun k.
Training Need Assessment/Analysis/

Training Need arises at three levels:

Prepared by Dr. Zerihun k.

 Three types of Training Need
 Organizational Level: focuses on strategic planning, business need,
and goals. It starts with the assessment of internal environment of the
organization such as, procedures, structures, policies, strengths, and
weaknesses and external environment such as opportunities and
threats.
 Individual Level: focuses on each and every individual in the
organization. At this level, the organization checks whether an employee
is performing at desired level or the performance is below expectation. If
the difference between the expected performance and actual
performance comes out to be positive, then certainly there is a need of
training.
 Operational Level: focuses on the work that is being assigned to the
employees. The job analyst gathers the information on whether the job is
clearly understood by an employee or not. He/she gathers this
information through technical interview, observation, psychological test;
questionnaires asking the closed ended as well as open ended
questions, etc. Today, jobs are dynamic and Prepared
keep changing
by Dr. Zerihunover
k. the
 Training Objective

 The principal objective of training and development

division is to make sure the availability of a skilled and
willing workforce to an organization. In addition to that,
there are four other objectives:
– Individual Objectives; help employees in achieving their
personal goals, which in turn, enhances the individual contribution
to an organization.
– Organizational Objectives: assist the organization with its
primary objective by bringing individual effectiveness.
– Functional Objectives: maintain the department’s contribution at
a level suitable to the organization’s needs.
– Societal Objectives: ensure that an organization is ethically and
socially responsible to the needs and challenges of the society
Prepared by Dr. Zerihun k.
Step 2: Develop Training Program
 The design of the training program can be undertaken only
when a clear training objective has been produced. The training
objective clears what goal has to be achieved by the end of training
program i.e. what the trainees are expected to be able to do at the
end of their training.
 Training objectives assist trainers to design the
training program.
 Training Program outlines
– training packages such as who, what, how much time,
available budget, when and what training tasks must be
performed.
– training instruments such as facilities, venue, aids and
methodology.

Prepared by Dr. Zerihun k.

Step 3: Selection of Trainer and Trainee

 The trainer must be those who are capable and

qualified. Before starting a training program, a trainer
analyzes his/her technical, interpersonal, judgmental
skills in order to deliver quality content to trainers.
 The trainees should be selected based on the
training need assessment. A good training design
requires close scrutiny of the trainees and their
profiles. Age, experience, needs and expectations of
the trainees are some of the important factors that
affect training design.

Prepared by Dr. Zerihun k.

Step 4-Implementation of the Training Program

 Training implementation is the hardest part of the system

because one wrong step can lead to the failure of whole
training program. Even the best training program will fail
due to one wrong action.
 Training implementation can be segregated into: Practical
administrative arrangements and Carrying out of the
training
 We have different methods to implement the training.
There is no one best method and one is not superior to the
other. It depends on cost, availability of facilities,
willingness and availability of trainers and trainees.
Prepared by Dr. Zerihun k.
 Cont’d
 The following are the factors that are kept in mind while
implementing training program:
– The trainer need to be prepared mentally before the delivery of
content. Trainer prepares materials and activities well in advance.
The trainer also set grounds before meeting with participants by
making sure that he/she is comfortable with course content and is
flexible in his/her approach.
– Good physical set up is pre requisite for effective and successful
training program because it makes the first impression on
participants. Classrooms should not be very small or big but as
nearly square as possible. This will bring people together both
physically and psychologically. Also, right amount of space should
be allocated to every participant.
– Establishing rapport with participants
– Reviewing the Agenda/Objective of the training
Prepared by Dr. Zerihun k.
Methods of Training

 There are various methods of training, which can be

divided in to cognitive and behavioral methods.
 Cognitive methods are more of giving theoretical
training to the trainees. The various methods under
Cognitive approach provide the rules for how to do
something, written or verbal information, demonstrate
relationships among concepts, etc. These methods are
associated with changes in knowledge and attitude by
stimulating learning.
 Includes Lecture , Discussion and Demonstration
Prepared by Dr. Zerihun k.
 Cognitive Methods

A. Lecture Method; It is one of the oldest methods of

training. This method is used to create understanding
of a topic or to influence behavior, attitudes through
lecture.
B. Discussion: This method uses a lecturer to provide the
learners with context that is supported, elaborated,
explains, or expanded on through interactions. The
interaction and the communication between these two
make it much more effective and powerful than the
lecture method. The Discussion method consists a
two-way flow of communication
Prepared by Dr. Zerihun k.
 Cognitive Methods

C. Demonstration: is a visual display of how something

works or how to do something. As an example, trainer
shows the trainees how to perform or how to do the tasks
of the job. In order to be more effective, demonstration
method should be accompanied by the discussion or
lecture method. To carry out an effective demonstration,
a trainer first prepares the lesson plan by breaking the
task to be performed into smaller modules, easily learned
parts. Then, the trainer sequentially organizes those
modules and prepares an explanation for why that part is
required. While performing the demonstration, trainer:
Prepared by Dr. Zerihun k.
Behavioral Methods

 Behavioral methods are more of giving practical

training to the trainees. The various methods under
Behavioral approach allow the trainee to behavior in a
real fashion. These methods are best used for skill
development.
 It Includes
– Simulation,
– Case Studies,
– Vestibule Training,
– Role Plays,
– sensitivity Training
Prepared by Dr. Zerihun k.
Behavioral Method

A. Simulation. It is an attempt to create a realistic

decision-making environment for the trainee.
Simulations present likely problem situation and
alternatives to the trainee. For example, activities of an
organization may be simulated and the trainee may be
asked to make a decision in support to those activities.
– The results of those decisions are reported back to
the trainee with an explanation of what would have
happened had they actually made in the workplace.
– The trainee learns from this feedback and improves
his/her subsequent simulation and workplace
decisions. The more widely held simulation exercises
are case study, role playing and vestibule training.
Prepared by Dr. Zerihun k.
 Behavioral Method

B. Case Study: is a written description of an actual situation

in business which provokes, in the reader, the need to
decide what is going on, what the situation really is or what
the problems are, and what can and should be done.
– Taken from the actual experiences of organizations,
these cases represent to describe, as accurately as
possible, real problems that managers have faced.
– Trainee studies the cases to determine problems,
analyses causes, develop alternative solutions, select
the best one, and implement it.
– It appears to be an ideal method to promote decision-
making abilities within the constraints of limited data.
Prepared by Dr. Zerihun k.
 Behavioral Method

C. Role playing: generally focuses on emotional (mainly

human relations) issues rather than actual ones.
– The essence of role playing is to create a realistic
situation, as in case study, and then have the trainee
assume the parts of specific personalities in the
situation.
– Role playing helps promote
 interpersonalrelation and
 Attitude change

Prepared by Dr. Zerihun k.

Behavioral Method
D. Vestibule Training: utilizes equipment which closely resembles the
actual ones used on the job. However, training takes place away
from the work environment. A special area or a room is set aside
from the main production area and is equipped with furnishings
similar to those found in the actual production area. The trainee is
then permitted to learn under simulated conditions, without disrupting
ongoing operations.
 The advantage of simulation is the opportunity to 'create an
environment' similar to real situations the manager incurs.
 The disadvantage is
– (i) it is difficult to duplicate the pressures and realities of actual
decision-making non the job and
– (ii) individuals often act differently in real-life situations than they
do in acting out a simulated exercise.
Prepared by Dr. Zerihun k.
E. Training Evaluation

 Itchecks whether training has had the desired

effect. Training evaluation ensures that whether
candidates are able to implement their learning
in their respective workplaces, or to the regular
work routines.
 Training evaluation will be made at the
beginning, during or after the training.
 Most valid training includes reaction, learning,
behavioral change and tangible results.
Prepared by Dr. Zerihun k.
Purpose of Training Evaluation

 The five main purposes of training evaluation are:

– Feedback: It helps in giving feedback to the candidates by
defining the objectives and linking it to learning outcomes.
– Research: It helps in ascertaining the relationship between
acquired knowledge, transfer of knowledge at the work place,
and training.
– Control: It helps in controlling the training program because if
the training is not effective, then it can be dealt with accordingly.
– Power games: At times, the top management (higher
authoritative employee) uses the evaluative data to manipulate it
for their own benefits.
– Intervention: It helps in determining that whether the actual
outcomes are aligned with the expected outcomes.
Prepared by Dr. Zerihun k.
Process of Training Evaluation

 Before Training: The learner's skills and

knowledge are assessed before the training
program. During the start of training, candidates
generally perceive it as a waste of resources
because at most of the times candidates are
unaware of the objectives and learning
outcomes of the program. Once aware, they are
asked to give their opinions on the methods
used and whether those methods confirm to the
candidates preferences and learning style.
Prepared by Dr. Zerihun k.
Process of Training Evaluation

 During Training: It is the phase at which

instruction is started. This phase usually consist
of short tests at regular intervals
 After Training: It is the phase when learner’s
skills and knowledge are assessed again to
measure the effectiveness of the training. This
phase is designed to determine whether
training has had the desired effect at individual
department and organizational levels
Prepared by Dr. Zerihun k.
Techniques of Evaluation

The various methods of training

evaluation are:
– Observation
– Questionnaire
– Interview
– Self diaries
– Self recording of specific incidents
Prepared by Dr. Zerihun k.
 3.2 Development
 Development is the process of preparing a
potential employee who will become successful
leader in the future.
 Assessment Center is the training center for
potential managers.
 Development is the more future oriented method
and more concerned with education of the
employees. To become a better performer by
education implies that management development
activities attempt to instill sound reasoning
processes. Prepared by Dr. Zerihun k.
Characteristics of Development

Itis a long term educational process.

Refers to philosophical and
theoretical educational concepts
Managerial personnel
General knowledge purpose

Prepared by Dr. Zerihun k.

On the job training

 The development of a manager's abilities can take place

on the job. Some of the techniques for on the job
development are:
– Coaching
– Mentoring [learning from skilled and experienced
person]
– Committee assignment
– Delegation/temporary assignment/
– Case analysis
– Job rotation
Prepared by Dr. Zerihun k.
Off the job training

 There are many management development

techniques that an employee can take in off the
job. The few popular methods are:
– Sensitivity Training
– Transactional Training
– Lectures
– Simulation Exercises

Prepared by Dr. Zerihun k.

3.3 Performance Appraisal

 People differ in their abilities and their aptitudes. There

is always some difference between the quality and
quantity of the same work on the same job being done
by two different people
 Performance appraisals of Employees are necessary
to understand each employee’s abilities, competencies
and relative merit and worth for the organization.
 Performance appraisal rates the employees in terms
of their performance
 It is also called Performance rating/evaluation,
Prepared by Dr. Zerihun k.
Uses of Performance Appraisal

 Administrative Use: A performance appraisal system

is often the link between the rewards employees hope
to receive and their productivity. The linkage can be
thought of as follows: Compensation based on
performance appraisal is at the heart of the idea that
raises should be given for performance
accomplishments rather than for seniority. Under
performance-oriented systems, employees receive
raises based on how well they perform their jobs. The
manager’s role historically has been as an evaluator of
a subordinate’s performance, which then leads to
managers making
Prepared by Dr. Zerihun k.
Uses of Performance Appraisal

 Development Use: Performance appraisal can

be a primary source of information and
feedback for employees, which is key to their
future development. When supervisors identify
the weaknesses, potentials, and training needs
of employees through performance appraisal
feedback, they can inform employees about
their progress, discuss what skills they need to
develop, and work out development plans.
Prepared by Dr. Zerihun k.
Corporate Responsibility of PA

 Developing the whole-person is also an

important aspect of modern corporate
responsibility, and separately whole-
person development is a crucial
advantage in the employment market, in
which all employers compete to attract
the best recruits, and to retain the best
staff.
Prepared by Dr. Zerihun k.
Process of Performance Appraisal

 Thereare six steps involved in Performance

Appraisal
– Step1. Establishing Performance Standards
– Step 2. Communicate the Standard
– Step 3. Measuring the Actual Performance
– Step 4. Comparing the Actual with the Desired
Performance
– Step 5. Discussing the Result [Provide Feedback]
– Step 6. Decision Making [Take Corrective Action]
Prepared by Dr. Zerihun k.
Step1. Establishing Performance
Standard
 The first step is the setting up of the standards which will
be used to as the base to compare the actual
performance of the employees to judge the performance
of the employees as successful or unsuccessful and the
degrees of their contribution to the organizational goals
and objectives.
 The criteria should focus on job related areas such as
– quality of work performed,
– quantity of work performed,
– presence at work,
– cooperativeness and
– timeline ness of output. Prepared by Dr. Zerihun k.
Step 2. Communicate the Standard
 Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization.
 The employees should be informed and the standards
should be clearly explained to workers, which will help
them to understand their roles and to know what exactly
is expected from them.
 The standards should also be communicated to the
appraisers or the evaluators and if required, the
standards can also be modified at this stage itself
according to the relevant feedback
Prepared by Dr. Zerihun k.
Step 3. Measuring the Actual Performance

 The most difficult part of the Performance appraisal

process is measuring the actual performance of the
employees that is the work done by the employees during
the specified period of time.
 It is a continuous process which involves monitoring the
performance throughout the year.
 This stage requires the careful selection of the
appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an
employees work. Prepared by Dr. Zerihun k.
Step 4. Comparing the Actual with the Desired
Performance

 The actual performance is compared with the desired or

the standard performance.
 The comparison tells the deviations in the performance
of the employees from the standards set.
 The result can show the actual performance being more
than the desired performance or, the actual performance
being less than the desired performance depicting a
negative deviation in the organizational performance.
 It includes recalling, evaluating and analysis of data
related to the employees’ performance.
Prepared by Dr. Zerihun k.
 Step 5. Discussing the Result
 The result of the appraisal is communicated
and discussed with the employees on one-to-one
basis.
 The focus of this discussion is on communication
and listening. The results, the problems and the
possible solutions are discussed with the aim of
problem solving and reaching consensus.
 The feedback should be given with a positive
attitude as this can have an effect on the
employees’ future performance. Prepared by Dr. Zerihun k.
Step 6. Decision Making

The last step of the process is to take

decisions which can be taken either
to improve the performance of the
employees, take the required
– corrective actions, or
– the related HR decisions like rewards,
promotions, demotions, transfers etc
Prepared by Dr. Zerihun k.
Method of Performance Appraisal

 Traditional Approach:
– Traditionally, performance appraisal has been used
as just a method for determining and justifying the
salaries of the employees. Than it began to be used a
tool for determining rewards (a rise in the pay) and
punishments (a cut in the pay) for the past
performance of the employees.
– This approach was a past oriented approach which
focused only on the past performance of the
employees i.e. during a past specified period of time.
This approach did not consider the developmental
aspects of the employee performance
Prepared by Dr. Zerihun k.
 Method of Performance Appraisal

 Modern approach:
– The modern approach to performance development has made the
performance appraisal process more formal and structured. Now,
the performance appraisal is taken as a tool to identify better
performing employees from others, employees’ training needs,
career development paths, rewards and bonuses and their
promotions to the next levels.
– The modern approach to performance appraisals includes a
feedback process that helps to strengthen the relationships
between superiors and subordinates and improve communication
throughout the organization. The modern approach to
Performance appraisal is a future oriented approach and is
developmental in nature. This recognizes employees as
individuals and focuses on their development.
Prepared by Dr. Zerihun k.
Traditional Approach

A. Essay Method: This traditional form of appraisal, also

known as "Free Form method" involves a description
of the performance of an employee by his/her superior.
The description is an evaluation of the performance of
any individual based on the facts and often includes
examples and evidences to support the information. A
major drawback of the method is the inseparability of
the bias of the evaluator.
B. Straight Ranking Method ; This is one of the oldest
and simplest techniques of performance appraisal. In
this method, the appraiser ranks the employees from
the best to the poorest on the basis of their overall
performance. It is quite useful for a comparative
evaluation. Prepared by Dr. Zerihun k.
Traditional Approach

C. Paired Comparison Method: A better technique of

comparison than the straight ranking method, this
method compares each employee with all others in the
group, one at a time. After all the comparisons on the
basis of the overall comparisons, the employees are
given the final rankings.
D. Critical Incidence Method: In this method of Performance
appraisal, the evaluator rates the employee on the basis
of critical events and how the employee behaved during
those incidents. It includes both negative and positive
points. The drawback of this method is that the
supervisor has to note down the critical incidents and
the employee behavior as and when they occur.
Prepared by Dr. Zerihun k.
 Traditional Approach

E. Checklist Method: The rater is given a checklist of the

descriptions of the behavior of the employees on job. The
checklist contains a list of statements on the basis of
which the rater describes the on the job performance of
the employees.
F. Graphing Rating Scale: In this method, an employee’s quality
and quantity of work is assessed in a graphic scale
indicating different degrees of a particular trait. The
factors taken into consideration include both the personal
characteristics and characteristics related to the on the
job performance of the employees. For example a trait
like Job Knowledge may be judged on the range of
average, above average, outstanding or unsatisfactory.
Prepared by Dr. Zerihun k.
Modern Approach

A. Assessment Center: it involves the use of methods like

social/informal events, tests and exercises, assignments being
given to a group of employees to assess their competencies to
take higher responsibilities in the future.
– Generally, employees are given an assignment similar to the job
they would be expected to perform if promoted. The trained
evaluators observe and evaluate employees as they perform the
assigned jobs and are evaluated on job related characteristics.
– The major competencies that are judged in assessment centers
are interpersonal skills, intellectual capability, planning and
organizing capabilities, motivation, career orientation etc.
– Assessment centers are also an effective way to determine the
training and development needs of the targeted employees.

Prepared by Dr. Zerihun k.

 Modern Approach

B. Behaviorally Anchored Rating Scales (BARS) is a relatively new

technique which combines the graphic rating scale and critical
incidents method.
– It consists of predetermined critical areas of job performance or
sets of behavioral statements describing important job
performance qualities as good or bad (for example the qualities
like inter personal relationships, adaptability and reliability, job
knowledge etc).
– These statements are developed from critical incidents. In this
method, an employee’s actual job behavior is judged against the
desired behavior by recording and comparing the behavior with
BARS.
– Developing and practicing BARS requires expert

Prepared by Dr. Zerihun k.

Modern Approach

C. HUMAN RESOURCE ACCOUNTING METHOD: Human

resources are valuable assets for every organization.
– Human resource accounting method tries to find the relative worth
of these assets in the terms of money.
– In this method the Performance appraisal of the employees is
judged in terms of cost and contribution of the employees. The
cost of employees include all the expenses incurred on them like
their compensation, recruitment and selection costs, induction
and training costs etc whereas their contribution includes the total
value added (in monetary terms).
– The difference between the cost and the contribution will be the
performance of the employees.
– Ideally, the contribution of the employees should be greater than
the cost incurred on them

Prepared by Dr. Zerihun k.

Modern Approach

D. 360 degree feedback, also known as 'multi-rater

feedback', is the most comprehensive appraisal where
the feedback about the employees’ performance comes
from all the sources that come in contact with the
employee on his/her job.
– 360 degree respondents for an employee can be his/her peers,
managers (i.e. superior), subordinates, team members,
customers, suppliers/ vendors - anyone who comes into contact
with the employee and can provide valuable insights and
information or feedback regarding the "on-the-job" performance
of the employee.

Prepared by Dr. Zerihun k.

Modern Approach

E. Balanced scorecard – an approach given by

Kaplan and Norton provides a framework of
various measures to ensure the complete and
balanced view of the performance of the
employees.
– Balanced scorecard focuses on the measures that
drive performance
– The balanced scorecard approach can be used and
applied at both the individual and the organizational
level
Prepared by Dr. Zerihun k.
BSC
 The four Perspectives are:
– The financial measures – The financial measures include the results
like profits, increase in the market share, return on investments and
other economic measures as a result of the actions taken.
– The customers’ measures - These measures help to get on customer
satisfaction, the customer’s perspective about the organization, customer
loyalty, acquiring new customers. The data can be collected from the
frequency and number of customer complaints, the time taken to deliver
the products and services, improvement in quality etc.
– The internal business measures – These are the measures related to
the organization’s internal processes which help to achieve the
customer satisfaction. It includes the infrastructure, the long term and
short term goals and objectives, organizational processes and
procedures, systems and the human resources.
– The innovation and learning perspective - The innovation and
learning measures cover the organization's ability to learn, innovate and
improve. They can be judged by employee skills matrix, key
competencies, value added and the revenue per employee.
Prepared by Dr. Zerihun k.
Who Conduct Appraisal?
 Self appraisal: gives a chance to the employee to look at his/her strengths
and weaknesses, his achievements, and judge his own performance more
than anyone. But, it has the problem of perception for behavioral reason.
 Superior’s appraisal: forms the traditional part of the 360 degree
performance appraisal where the employees’ responsibilities and actual
performance is rated by the superior. But, they play ‘role of God
 Subordinate’s appraisal: gives a chance to judge the employee on the
parameters like communication and motivating abilities, superior’s ability to
delegate the work, leadership qualities etc. But, the problem is ‘scratch my
back, I will scratch yours’
 Peer appraisal: known as internal customers, the correct feedback given by
peers can help to find employees’ abilities to work in a team, co-operation
and sensitivity towards others. But it has problem that they don’t want to rate
more than them selves during high competition
 Multi-source Appraisal: is the most comprehensive appraisal where the
feedback about the performance of employees comes from all sources that
come into contact with the employee on his/her job.
Prepared by Dr. Zerihun k.
Problems Associate with PA

The problem of performance

appraisal is mainly related to
– the appraiser,
– the appraisee and
– the system used to appraise/evaluate.

Prepared by Dr. Zerihun k.

Problems Associate with PA

 Problems related to the Rater

– Misunderstanding of the nature and
purpose of performance appraisal
– They didn’t take performance appraisal
seriously
– They create errors such as hallo effect,
stereo-type, central tendency, leniency, and
others
Prepared by Dr. Zerihun k.
Problems Associate with PA

 Problem related to the Ratee

– Misunderstanding of the nature and purpose of
performance appraisal
– They create errors such as hallo effect, stereo-
type, central tendency, leniency, and others
 Problem related to the System
– Poor design of the system
– Criteria used mayn’t be reliable and valid
– Criteria used mayn’t be related to the job
Prepared by Dr. Zerihun k.
Assignment

 Develop Training Proposal and briefly discuss

the main points.
 What is the practice of your company towards
Development?
 Briefly describe the current practice of
Performance Appraisal at your organization.
 What is the purpose of the performance
Evaluation at your organization?

Prepared by Dr. Zerihun k.