HRM notes

Module 1:
part I Performance Management
INTRODUCTION
Performance management is the process of creating a work environment or setting
in which people are enabled to perform to the best of their abilities. Performance
management is a whole work system that begins when a job is defined as needed.
It ends when an employee leaves your organization.
Many writers and consultants are using the term performance management as a
substitution for the traditional appraisal system. I encourage you to think of the
term in this broader work system context. A performance management system
includes the following actions.
Performance management is the process of creating a work environment or setting
in which people are enabled to perform to the best of their abilities. Performance
management is a whole work system that begins when a job is defined as needed.
It ends when an employee leaves your organization.
Many writers and consultants are using the term performance management as a
substitution for the traditional appraisal system. I encourage you to think of the
term in this broader work system context. A performance management system
includes the following actions.
DEFINITION OF PERFORMANCE MANGEMENT
Performance management is an ongoing, continuous process of communicating
and clarifying job responsibilities, priorities and performance expectations in order
to ensure mutual understanding between supervisor and employee. It is a
philosophy which values and encourages employee development through a style of
management which provides frequent feedback and fosters teamwork. It
emphasizes communication and focuses on adding value to the organization by
promoting improved job performance and encouraging skill development.
Performance Management involves clarifying the job duties, defining performance
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standards, and documenting, evaluating and discussing performance with each
employee.

OBJECTIVES
The objectives of Performance Management are to:
1. Increase two-way communication between supervisors and employees
2. Clarify mission, goals, responsibilities, priorities and expectations
3. Identify and resolve performance problems
4. Recognize quality performance
5. Provide a basis for administrative decisions such as promotions, succession
and strategic planning, and pay for performance.
PRINCIPLES OF DEVELOPING A PERFORMANCE MANAGEMENT
PLAN
Development of a performance management plan should be consistent with the
following principles:
1. Performance management is considered a process, not an event. It follows
good management practice in which continual coaching, feedback and
communication is integral to success.
2. The Performance Management Plan is primarily a communication tool to
ensure mutual understanding of work responsibilities, priorities and
performance expectations.
3. Elements for discussion and evaluation should be job specific not
generalized personality traits. The major duties and responsibilities of the
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specific job should be defined and communicated as the first step in the
process.
4. Performance standards for each major duty/ responsibility should be
defined and communicated.
5. Employee involvement is encouraged in identifying major duties and
defining performance standards.
6. Professional development should be an important component of the plan.
7. The formal evaluation period should be long enough to allow for full
performance and to establish a history such that evaluations are fair and
meaningful. One year is a common evaluation period.
8. Documentation of performance will occur as often as needed to record the
continuum of dialogue between supervisor and employee.
9. If formal ratings are included, they should reflect the incumbent's actual
performance in relation to the performance standard for that major duty.
10. The supervisor should be evaluated on the successful administration of the
plan and ongoing performance management responsibilities.
11. Training for supervisors and employees is encouraged and will be provided
by University Human Resource Services.
12. The Performance Management Plan should be consistent with federal and
state laws which address non-discrimination.

The philosophy behind performance management can be captured in the

following six core strategies:
1. Clarify job responsibilities and clearly state agreed-upon goals
(or performance expectations/performance standards/ performance criteria)
2. Communicate regularly by giving and receiving feedback throughout the year
on performance, goals, directions, and changing expectations.
3. Counsel to improve performance problems and/ or develop employee
performance
4. Compare performance to agreed-upon goals periodically and evaluate results.
5. Cultivate continuous learning, employee growth, and development.
6. Celebrate exemplary performance.
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Hence, performance management would require a pro-active approach
management of HR, a congenial work culture, and value-based management.

ROLE
OF PERFORMANCE
MANAGEMENT
INCLUDES THE FOLLOWING ACTIONS.

to

SYSTEM

Developing clear job descriptions and employee performance plans which

includes the key result areas (KRA') and performance indicators.
Selection of right set of people by implementing an appropriate selection
process.
Negotiating requirements and performance standards for measuring the
outcome and overall productivity against the predefined benchmarks.
Providing continuous coaching and feedback during the period of delivery
of performance.
Identifying the training and development needs by measuring the
outcomes achieved against the set standards and implementing effective
development programs for improvement.
Holding quarterly performance development discussions and evaluating
employee performance on the basis of performance plans.
Designing effective compensation and reward systems for recognizing
those employees who excel in their jobs by achieving the set standards in
accordance with the performance plans or rather exceed the performance
benchmarks.
Providing promotional/career development support and guidance to the
employees.
Performing exit interviews for understanding the cause of employee
discontentment and thereafter exit from an organization.

The pre-requisites of Performance Management by which its success or failure depends on

is as follows:
1. Organizational philosophies
2. Attitudes and skills of those responsible for its implementation
3. Acceptance, commitment, and ownership of managers and employees

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4. Endorsement of the notions of procedural fairness and distributive justice
(procedural fairness refers to the employees perception on overall process equity, and
where distributive justice is linked to perceptions of the fairness of associated rewards
and recognition outcomes)
5. Top-management commitment and involvement
6. Adequacy of pay-level or compensation package
7. Availability or access to resources, tools, and skills to employees to do their jobs
8. Scope for managers to have the power to make decisions and plan on the basis of needs
9. Familiarity of managers and employees with planning tools such as target setting and
achievement monitoring
10. Effectiveness of communications between and within management and employees
11. A culture of accountability and openness prevails
12. Financial requirements of the organization
13. Decentralization
14. Customers pressure and quality assurance

Concept of performance management

Performance management (PM) includes activities which ensure that goals are
consistently being met in an effective and efficient manner. Performance
management can focus on the performance of an organization, a department,
employee, or even the processes to build a product of service, as well as many
other areas.
PM is also known as a process by which organizations align their resources,
systems and employees to strategic objectives and priorities.
Performance management as referenced on this page in a broad term coined by
Dr. Aubrey Daniels in the late 1970s to describe a technology (i.e. science
imbedded in applications methods) for managing both behavior and results, two
critical elements of what is known as performance.
Performance management is a quickly maturing business discipline. Like its better
known siblingssales and marketing, human resources, supply chain
management, and accounting and financeperformance management has a key
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role to play in improving the overall value of an organization. Wayne Eckerson of
The fitness program described earlier outlines a strategy for following certain
recommended exercises and healthy habits, helping you to achieve your objectives
(e.g., becoming stronger, lighter, etc.), and leading towards your goal of becoming
more fit. Throughout the program, there may be certain targets to strive for, such as
20 more pushups a month, or completing that 20-minute treadmill run at a higher
average rate of speed. Your trainer also uses the program to record your progress
from visit to visit, providing feedback on your overall performance and
determining whether you are on track towards meeting specific objectives.
Feedback is important to us, because it helps us to further understand why we may
or may not be meeting specific targets. Feedback can also be used to modify our
expectations, and to set new objectives over the course of the program. In business,
a similar process takes place:
1. Planning what we would like to happen, based on insights from analysis of
trends in our industry and events that impact our business.
2. Executing, by making decisions and taking action, based on the outcomes of
planning activities.
3. Monitoring our progress towards a certain time-limited target or objective.
4. Analyzing further to understand why we may or may not be on-track to meet
a specific target or objective.
5. Forecast what we think will happen, based on what we have analyzed. Here
we build one or more scenarios to help us predict certain outcomes. These
outcomes help us to confirm or refute our choice of tactics to meet our
objectives.
Figure 1.1 illustrates this process.
Figure 1.1: The Performance Management Cycle.

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Similar to our fitness program, where progress is monitored and analyzed in areas
such as weight loss or number of repetitions for a given exercise, performance
management involves monitoring key performance indicators (KPIs) that measure
whether an organization is meeting its objectives and overarching strategy. A KPI
in this sense is a measure defined by a business that allows for observation of
actual values, as they may emerge from line-of-business (LOB) applications and
their comparison to established targets (or budgeted values). If a KPI reveals an
actual value that deviates too far from (or in many cases, closely approaches) a predefined target, then further analysis is warranted. Discoveries made during analysis
should help us plan our next steps, set new (or adjust existing) expectations, and
predict what may happen based on our decisions. In larger organizations, data from
multiple LOB systems are often centralized within a single version of the
truth business intelligence (BI) system to optimize KPI monitoring, detailed
analysis, and performance reporting. BI systems often (but not always) consist of
several layers that work together, helping businesses to:
Integrate and refine data from a variety of applications, systems, and
documents into a centralized data mart or data warehouse.
Analyze refined data to gain insight into current performance (monitoring
KPIs), potential causes for specific KPI variances (or deviations of actual
values from target values).
Report past, current, or forecast conditions to stakeholders.
The goal of a BI system is to ultimately help business people make better, faster
decisions. Classically, such decision-making has occurred at higher levels of an
organization and been limited to a relatively small number of individuals.
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However, corporate culture has changed significantly over the last decade, and
themes of transparency, accountability, and empowerment have emerged.
Performance management frameworks, like Kaplan and Nortons Balanced
Scorecard method, build on these notions by making all steps in the cycle
(illustrated in Figure 1.1) occur at executive, departmental, and operational layers
of the modern organization.
PERFORMANCE STANDARDS
Performance expectations are the basis for appraising employee performance.
Written performance standards let you compare the employee's performance with
mutually understood expectations and minimize ambiguity in providing feedback.
Having performance standards is not a new concept; standards exist whether or not
they are discussed or put in writing. When you observe an employee's
performance, you usually make a judgment about whether that performance is
acceptable. How do you decide what's acceptable and what's unacceptable
performance? The answer to this question is the first step in establishing written
standards.
Standards identify a baseline for measuring performance. From performance
standards, supervisors can provide specific feedback describing the gap between
expected and actual performance.
EXPRESSING STANDARDS
The terms for expressing performance standards are outlined below:

Quantity: specifies how much work must be completed within a certain period
of time, e.g., enters 30 enrollments per day.
Quality: describes how well the work must be accomplished. Specifies
accuracy, precision, appearance, or effectiveness, e.g., 95% of documents
submitted are accepted without revision.
Timeliness: answers the questions, By when? , How soon? , or Within what
period? , e.g., all work orders completed within five working days of receipt.
Effective Use of Resources: used when performance can be assessed in terms
of utilization of resources: money saved, waste reduced, etc., e.g., the computer
handbook project will be completed with only internal resources.
Effects of Effort: addresses the ultimate effect to beobtained; expands
statements of effectiveness by using phrases such as: so that, in order to, or as

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shown by, e.g., establish inventory levels for storeroom so that supplies are
maintained 100% of the time.
Manner of Performance: describes conditions in which an individual's
personal behavior has an effect on performance, e.g., assists other employees in
the work unit in accomplishing assignments.
Method of Performing Assignments: describes requirements; used when only
the officially-prescribed policy, procedure, or rule for accomplishing the work
is acceptable, e.g., 100A Forms are completed in accordance with established
office procedures.

PERFORMANCE MEASUREMENTS
Since one of the characteristics of a performance standard is that it can be
measured, you should identify how and where evidence about the employee's
performance will be gathered. Specifying the performance measurements when the
responsibility is assigned will help the employee keep track of his progress, as well
as helping you in the future performance discussions.
There are many effective ways to monitor and verify performance, the most
common of which are:

Direct observation
Specific work results (tangible evidence that can be reviewed without the
employee being present)
Reports and records, such as attendance, safety, inventory, financial records,
etc.
Commendations or constructive or critical comments received about the
employee's work.

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CHARACTERISTICS OF PERFORMANCE MANAGEMENT SYSTEM
Performance management systems bring clarity and objectivity to the process of
managing, training and rewarding employees appropriately. Effective performance
management systems begin with clearly defined job expectations supported by
active feedback. Employee performance is measured using both objective external
criteria and a broad assessment of the employee's overall contribution to the
workplace.
Performance Management
Performance management systems can be divided into three stages. In the first
stage, managers establish a set of realistic expectations and communicate them to
the employees. In the second, they provide ongoing guidance and coaching to help
employees improve their job performance. In the third stage, they assess how well
employees have achieved the established goals, what improvements could be made
and any changes to the job expectations.
Expectations
Both employees and supervisors sometimes believe that they do not have enough
input in the company's performance management system and that the process is not
objective or relevant. To prevent this problem, encourage managers and employees
to define the job expectations themselves within the overall framework of company
needs. Job expectations always should be as specific and clear as possible. For
example, a salesperson might be asked to exceed the minimum quota by 10 percent
each month, or a receptionist might be asked to answer every phone call with a
friendly, professional greeting. In an ideal system, every employee knows exactly
what her job is and what standards must be maintained.
Feedback
Ideal performance management systems include continuous feedback from
management. If a supervisor sets clear expectations but provides no further
guidance until the next scheduled performance review, employees may fall behind
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without knowing how to improve. Supervisors must check how employees are
doing on a frequent basis and offer suggestions for improvement based on accurate
information and realistic goals. For example, if a salesperson falls below quota for
the month, the supervisor should check on factors that may be limiting his sales
performance, such as not using the script consistently or not attempting to
overcome objections. Feedback should be geared toward improving performance
rather than criticizing the employee.
Assessment
The performance assessment should include objective and measurable factors but
should not be limited to the numbers. For instance, a customer service professional
should be assessed on factors such as percentage of calls resolved, length of
average call and other metrics. times also should be taken into consideration. An
ideal performance management system assesses not only the tangible contributions
of the employees, but also the intangible personal characteristics that may make a
less-than-perfect employee a valued member of the team.
Job Descriptions
An accurate job description is a fundamental characteristic of an ideal performance
management system. Without a clear understanding of job duties, it's impossible to
know what the employee is supposed to be doing. The job description isn't a
laundry list of tasks for each title or position; however, it contains the essential
functions of each job and the qualifications necessary to perform those tasks.
Training
An ideal performance management system provides training for supervisors who
conduct employee evaluations. The training consists of techniques for giving
complimentary as well as constructive feedback to employees, learning how to
determine when disciplinary review is warranted and how to write up employees
for disciplinary action. In addition, supervisors learn how to evaluate employees
objectively. Training for employees explains how their performance will be
measured and evaluated, as well as what actions are subject to disciplinary review
and the policies for receiving disciplinary counseling and notices.
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Timeliness
Performance appraisals -- the annual evaluation of employee performance -- must
be timely. Although supervisors and employees alike may dread the appraisal
season, they may also look forward to know how well their performance ranks
when compared to the employer's expectations. A timely performance appraisal
works to address problems and deficiencies before they become too serious.
Likewise, employee performances worthy of commendation should be
immediately recognized to reinforce the positive behavior and action.
Compensation
Employees generally want to know how their performance is connected to pay.
This question often comes up during the interview stage, so it's an important factor
for employees, especially workers who have become accustomed to extra rewards
for their efforts. An ideal performance management system has a tie-in with
compensation, whether it's a certain percentage raise or wage hike based on the
employee's level, effort or actual performance and productivity.

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Module 2:
performance Appraisal system
Meaning of performance appraisal
The process by which a manager or consultant (1) examines and evaluates an
employee's work behavior by comparing it with preset standards, (2) documents
the results of the comparison, and (3) uses the results to provide feedback to the
employee to show where improvements are needed and why.
Performance appraisals are employed to determine who needs what training, and
who will be promoted, demoted, retained, or fired.
Performance appraisals also typically feed into organizational annual pay and
grading reviews, which commonly also coincide with the business planning for the
next trading year.
Performance appraisals generally review each individual's performance against
objectives and standards for the trading year, agreed at the previous appraisal
meeting.
Performance appraisals are also essential for career and succession planning - for
individuals, crucial jobs, and for the organization as a whole.
Guiding Principles
The goal of the performance appraisal process is to help the employee feel:

Positive about the job

Motivated to do well and to develop
Benefited by specific, constructive feedback
Appreciated for specific contributions
Informed about current and future performance objectives
Involved as a participant in the process

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Preparing for the Appraisal
Both you and the employee play an important role in creating a productive
performance appraisal process. Here are some suggestions to get the employee
involved:

Schedule a mutually convenient time and place for the performance appraisal
discussion. Allow enough time and ensure privacy.
Explain that you would like the discussion to be a dialog, with input from both
of you included in the final written document.
Give the employee some options about how to prepare for the discussion. For
example, ask the employee to prepare a self-evaluation using the same form you
will use for your draft. The employee can address accomplishments and things
that could be done better. Explain that you will be doing the same and that you
may exchange these documents a few hours before your meeting
Give the employee a list of questions to consider evaluating his own
performance. Sample questions might be: What have been your major
accomplishments? What could you have done better? What could I do as your
supervisor to help you do your job better? Would you like to see your
responsibilities change? If so, how?
Prepare a draft appraisal, making sure you have as much information as
possible, including: job description, performance standards, previous appraisals,
letters of commendation and/or criticism, samples of work, and records of
disciplinary action.
Consider the question, What can I do to help the employee do the job better and
achieve developmental goals?

Conducting the Appraisal Discussion

Continue the momentum you have established throughout the year with your
ongoing dialog about performance. You want to set the tone for an open and
productive discussion. Here are some steps you can take to make it as successful as
possible:

Create a supportive environment by stating clearly the purpose of the

discussion. Be as non-threatening and open as possible since the employee may
be tense or uncomfortable.
Discuss key areas of responsibility and give examples of specific results. Have
the employee go first, based on the self-appraisal or the questions you provided

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in advance. Ask lots of questions and get clarification to make sure you
understand the employee's point of view.
Discuss what could have been done better. Identify your concerns and listen to
the employee's explanations.
Ask your employee for help in resolving problems. Focus on future
performance and be sure the employee takes responsibility for improvement.
Make sure you and the employee have the same understanding of future
expectations regarding performance.
Give positive recognition for performance that reinforces the goals of the work
unit.
Discuss the employee's interests and potential new responsibilities. Discuss
both of your roles in achieving new objectives while maintaining ongoing
responsibilities.
Conclude on a positive note, emphasizing the benefits of your dialog.

The Final Appraisal Document

Record the results of your discussion on the performance appraisal form. Ask the
employee to sign the form, and explain that this signature acknowledges discussion
of the contents, not necessarily agreement with them. Route to your manager for
final signatures and placement in the employee's departmental personnel file. Give
a copy of the signed appraisal to the employee.
APPRAISAL SYSTEM TO BE EFFECTIVE SHOULD POSSESS THE
FOLLOWING CHARACTERISTICS:
1. Clear Objectives:
The objectives of performance appraisal should be clear, specific, timely and open.
The appraisal system should be fair and beneficial to both the individual employee
and the organization should be linked with other subsystems of personnel
management.
2. Reliable and Valid:
Appraisal system should provide consistent, reliable and valid information and
date. Appraisals should measure what they are supposed to measure. For example,
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if the objective of appraisal is to show potential of an employee for promotion, it
should supply the date relating to potentialities of the employee.

3. Standardization:
The appraisal form, procedures and rules should be standardized. There should be
well-defined performance criteria and standards. Employees should be made fully
aware of these standards as appraisal decisions affect all employees of the group.
4. Training:
Evaluators should be given training in procedures and principles of appraisal. They
should be provided with knowledge and skills in designing appraisals, conducting
post appraisal interviews and correcting rating errors.
5. Fob Relatedness:
The appraisal system should focus attention on job-related behavior and
performance. It should provide information on job related activities and areas.
6. Mutual Trust:
Before introducing the appraisal system, a climate of mutual trust, cooperation and
confidence should be created in the organization. Under the system, the employees
should be treated in a supportive manner.
7. Feedback and Participation:
The ratings should be communicated to both the employees and the raters. The
appraisal r system should be open and participative. The employees should get
information on their performance. The system should involve employees in the
goal setting process.

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8. Help Focus:
Appraisal should not judgmental. It should not be purely control- oriented. The
evaluator should also play the role of coach and counselor. He should- help people
reach their full potential. The overall purpose of appraisals should be
developmental.
9. Recognition of Differences:
Organization differs in terms of work, size, resources, needs and environment.
Hence, the appraisal system must be designed to meet the needs of particular
organization. It should be specific and tailor - made for the particular company.
10. Post Appraisal Interview:
An appraisal system is only as effective as the manager is iii communications.
Hence, an interview with the employee should be arranged after appraising his
performance. It will help to know the difficulties of work and training needs of
employees. In interview, problem solving approach should be adopted and
counseling should be provided for improving performance.
Performance Appraisal Methods
It is a systematic evaluation of an individual with respect to performance on the
job and individuals potential for development.
Definition 2: Formal System, Reasons and Measures of future performance
It is formal, structured system of measuring, evaluating job related behaviors and
outcomes to discover reasons of performance and how to perform effectively in
future so that employee, organization and society all benefits.
Meaning of Performance Appraisals
Performance Appraisals is the assessment of individuals performance in a
systematic way. It is a developmental tool used for all round development of the
employee and the organization. The performance is measured against such factors
as job knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility and health.
Assessment should be confined to past as well as potential performance also. The
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second definition is more focused on behaviors as a part of assessment because
behaviors do affect job results.

Performance Appraisals and Job Analysis Relationship

Job Analysis

Performance
Standards

Performance
Appraisals

Describe the work and

personnel requirement
of a particular job.

Translate
job
requirements
into
levels of acceptable or
unacceptable
performance

Describe
the
job
relevant strengths and
weaknesses of each
individual.

Objectives of Performance Appraisals

Use of Performance Appraisals
1. Promotions
2.

Confirmations

3.

Training and Development

4.

Compensation reviews

5.

Competency building

6.

Improve communication

7.

Evaluation of HR Programs

8.

Feedback & Grievances

4 Goals of Performance Appraisals

General Goals

Specific Goals

Developmental Use

Individual needs

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Performance feedback
Transfers and Placements
Strengths and Development needs
Administrative Decisions / Uses

Salary
Promotion
Retention / Termination
Recognition
Lay offs
Poor Performers identification

Organizational Maintenance

HR Planning
Training Needs
Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational
needs

Documentation

Validation Research
For HR Decisions
Legal Requirements

Performance Appraisal Process

1. Objectives definition of appraisal
2.

Job expectations establishment

3.

Design an appraisal program

4.

Appraise the performance

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5.

Performance Interviews

6.

Use data for appropriate purposes

7.

Identify opportunities variables

8.

Using social processes, physical processes, human and computer assistance

Difference between Traditional and Modern (Systems) approach to Appraisals

Categories
Traditional Appraisals
Modern,
Systems
Appraisals
Guiding Values

Individualistic,
Control
oriented,
Documentary

Systematic,
Developmental,
Problem solving

Leadership Styles

Directional,
Evaluative

Facilitative, Coaching

Frequency

Occasional

Frequent

Formalities

High

Low

Rewards

Individualistic

Grouped,
Organizational

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS

Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for
some organizations only. None should be dismissed or accepted as appropriate
except as they relate to the particular needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.

Past Oriented Methods

Future Oriented Methods

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Past Oriented Methods
1. Rating Scales: Rating scales consists of several numerical scales representing
job related performance criterions such as dependability, initiative, output,
attendance, attitude etc. Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are derived. Advantages
Adaptability, easy to use, low cost, every type of job can be evaluated, large
number of employees covered, no formal training required. Disadvantages
Raters biases
5

EXCELLENT GOOD ACCEPTABLE FAIR POOR

1.Dependability
2.Initiative
3.Overall Output
4.Attendance
5.Attitude
6.Cooperation
7.Quality of
work
etc.

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2. Checklist: Under this method, checklist of statements of traits of employee in

the form of Yes or No based questions is prepared. Here the rater only does the
reporting or checking and HR department does the actual evaluation. Advantages
economy, ease of administration, limited training required, standardization.
Disadvantages Raters biases, use of improper weighs by HR, does not allow rater
to give relative ratings
Employee Behavior

Weight

1.Employee works overtime when asked to

6.5

2.Employee keeps work station well organized

4.0

3.Employee cooperatively assists coworkers who need help

3.9

4.Employee plans actions before beginning work

4.3

5.Employee listens to advice but seldom follows it

0.2

6. etc...

0.x

TOTAL

100

3. Forced Choice Method:

The series of statements arranged in the blocks of two or more are given and the
rater indicates which statement is true or false. The rate is forced to make a choice.
HR department does actual assessment. Advantages Absence of personal biases
because of forced choice. Disadvantages Statements may be wrongly framed.
4. Forced Distribution Method: here employees are clustered around a high
point on a rating scale. Rater is compelled to distribute the employees on all points
on the scale. It is assumed that the performance is conformed to normal
distribution. Advantages Eliminates
Disadvantages Assumption of normal distribution, unrealistic, errors of central
tendency.
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5. Critical Incidents Method: The approach is focused on certain critical
behaviors of employee that makes all the difference in the performance.
Supervisors as and when they occur record such incidents. Advantages
Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces regency biases, chances of subordinate
improvement are high. Disadvantages Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback may be too much and may
appear to be punishment.
6. Behaviorally Anchored Rating Scales: statements of effective and
ineffective behaviors determine the points. They are said to be behaviorally
anchored. The rate is supposed to say, which behavior describes the employee
performance. Advantages helps overcome rating errors. Disadvantages Suffers
from distortions inherent in most rating techniques.
Job-Dimension: Uses Collaborative Methods in Meeting Unit Goals
Rating

5 [ ] Very Good

Behavior Anchor
Develops workable plans for collaboration including time
lines and budget and works regularly with others to
achieve goals. Gives credit to others for their contributions
and provides supportive written materials of the work.
Always follows up on agreements.

4 [ ] Good

Plans for collaboration usually carried out. Helps all

members of team make meaningful contributions.
Experiences some difficulties in full collaboration among
identified team members.

3 [ ] Below Average

Has a plan for collaboration, but experiences delays and

frustrations with the nature of collaboration.

2 [ ] Poor

Has no effective plan for collaboration, but expresses

interest.

1 [ ] Unacceptable

Shows no interest in working with others. Does not seek

direction on how to improve.

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7. Field Review Method: This is an appraisal done by someone outside
employees own department usually from corporate or HR department. Advantages
Useful for managerial level promotions, when comparable information is needed,
Disadvantages Outsider is generally not familiar with employees work
environment, Observation of actual behaviors not possible.
8. Performance Tests & Observations: This is based on the test of knowledge
or skills. The tests may be written or an actual presentation of skills. Tests must be
reliable and validated to be useful. Advantage Tests may be apt to measure
potential more than actual performance. Disadvantages Tests may suffer if costs
of test development or administration are high.
9. Confidential Records: Mostly used by government departments, however its
application in industry is not ruled out. Here the report is given in the form of
Annual Confidentiality Report (ACR) and may record ratings with respect to
following items; attendance, self expression, team work, leadership, initiative,
technical ability, reasoning ability, originality and resourcefulness etc. The system
is highly secretive and confidential. Feedback to the assessed is given only in case
of an adverse entry. Disadvantage is that it is highly subjective and ratings can be
manipulated because the evaluations are linked to HR actions like promotions etc.
10. Essay Method: In this method the rater writes down the employee description
in detail within a number of broad categories like, overall impression of
performance, promote ability of employee, existing capabilities and qualifications
of performing jobs, strengths and weaknesses and training needs of the employee.
Advantage It is extremely useful in filing information gaps about the employees
that often occur in a better-structured checklist. Disadvantages It its highly
dependent upon the writing skills of rater and most of them are not good writers.
They may get confused success depends on the memory power of raters.

Ranking Methods: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to
administer and explanation.

Paired Comparison Methods: In this method each employee is rated with another
employee in the form of pairs. The number of comparisons may be calculated with
the help of a formula as under.
N x (N-1) / 2
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Future Oriented Methods

1. Management By Objectives: It means management by objectives and the

performance is rated against the achievement of objectives stated by the
management. MBO process goes as under.
Establish goals and desired outcomes for each subordinate
Setting performance standards
Comparison of actual goals with goals attained by the employee
Establish new goals and new strategies for goals not achieved in previous year.
Advantage It is more useful for managerial positions.
Disadvantages Not applicable to all jobs, allocation of merit pay may result in
setting short-term goals rather than important and long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed to assess
employees potential for future performance rather than the past one. It is done in
the form of in-depth interviews, psychological tests, and discussion with
supervisors and review of other evaluations. It is more focused on employees
emotional, intellectual, and motivational and other personal characteristics
affecting his performance. This approach is slow and costly and may be useful for
bright young members who may have considerable potential. However quality of
these appraisals largely depends upon the skills of psychologists who perform the
evaluation.
3. Assessment Centers: This technique was first developed in USA and UK in
1943. An assessment center is a central location where managers may come
together to have their participation in job related exercises evaluated by trained
observers. It is more focused on observation of behaviors across a series of select
exercises or work samples. Assesses are requested to participate in in-basket
exercises, work groups, computer simulations, role playing and other similar
activities which require same attributes for successful performance in actual job.
The characteristics assessed in assessment center can be assertiveness, persuasive
ability, communicating ability, planning and organizational ability, self confidence,
resistance to stress, energy level, decision making, sensitivity to feelings,
administrative ability, creativity and mental alertness etc. Disadvantages Costs of
employees traveling and lodging, psychologists, ratings strongly influenced by
assessors inter-personal skills. Solid performers may feel suffocated in simulated
situations. Those who are not selected for this also may get affected.
Advantages well-conducted assessment center can achieve better forecasts of
future performance and progress than other methods of appraisals. Also reliability,
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content validity and predictive ability are said to be high in assessment centers.
The tests also make sure that the wrong people are not hired or promoted. Finally it
clearly defines the criteria for selection and promotion.
4. 360-Degree Feedback: It is a technique which is systematic collection of
performance data on an individual group, derived from a number of stakeholders
like immediate supervisors, team members, customers, peers and self. In fact
anyone who has useful information on how an employee does a job may be one of
the appraisers. This technique is highly useful in terms of broader perspective,
greater self-development and multi-source feedback is useful. 360-degree
appraisals are useful to measure inter-personal skills, customer satisfaction and
team building skills. However on the negative side, receiving feedback from
multiple sources can be intimidating, threatening etc. Multiple raters may be less
adept at providing balanced and objective feedback.
CHARACTERISTICS OF PERFORMANCE APPRAISAL The characteristics of Performance appraisal include the following:
Performance appraisal is a link between organizations strategy and results;
Performance appraisal is directed toward a purpose;
Appraisal can be beneficial for the organization, the employee and the manager;
Appraisal can serve administrative or developmental purposes; designing a
scheme for each purpose is always advisable;
Providing an employee with feedback can enhance his performance;
Appraising all category of employees is a common practice among organizations;
Managers, employees or a combination of raters can conduct appraisal.
Employees can also carryout self assessment.
Appraisal has four complementary stages, starting with planning and ending with
review of performance;
Different methods can be used for appraisal. Each methods has its advantages and
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disadvantages and serve different purposes; and
Appraisal results can be communicated through different style. Using a certain
style is heavily dependent on the situation
DEFINITION OF COUNSELING
Support process in which a counselor holds face to face talks with another person
to help him or her solve a personal problem, or help improve that person's attitude,
behavior, or character.
The word Counseling is a very broad frame of reference and can mean anything
from informal advice giving to the most complex interactions that is between
patients and clinicians and barristers and litigants. Its basic meaning revolves
around the business of helping something so common that almost everyone would
have
acted
as
a
counselor
at
sometime
in
ones
life.
So Always hold the counseling session in a private place where no one else can
hear. Encourage the client to ask more questions and make the counseling as
interactive session, so that the clients can have more involvement and the
counseling will have more impact in the minds of the clients.
Purpose
1. Information Giving : In this respect counseling is like one to one teaching,
some problems can be solved simply by providing facts or information.
2. Giving Support : Some problems are so intractable that lending emotional
support and warmth can help individuals who feel helpless.
3. Promoting Insight : Counseling is to assist people in the process of self
discovery. A clearer self awareness is the key to solution of many problems.
4. Conflict Resolution : Counseling can help people to resolve their conflicts in
interpersonal
and
intrapersonal
situations.

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5. Decision Making : Counseling is helping people to make decisions which they
are finding difficult to reach. Counseling may help the person to weigh pros and
cons
and
broaden
his
perspective
of
the
problem.
6. Problem Solving : The aim of counseling is to help individuals to
systematically analyze difficulties, find solutions to them and act accordingly

PRINCIPLES OF COUNSELLING
Advice
Many persons think of counseling as primarily an advice-giving activity, but in
reality it is but one of several functions that counselors perform. The giving of
advice requires that a counselor make judgments about a counselees problems and
lay out a course of action. Herein lays the difficulty, because understanding
another persons complicated emotions is almost impossible. Advice-giving may
breed a relationship in which the counselee feels inferior and emotionally
dependent on the counselor. In spite of its ills, advice-giving occurs in routine
counseling sessions because members expect it and consoler tends to provide it.
Reassurance
Counseling can provide members with re- assurance, which is a way of giving
them courage to face a problem or confidence that they are pursuing a suitable
course of action. Reassurance can be a valuable, though sometimes temporary,
cure for a members emotional upsets. Sometimes just the act of talking with
someone about a problem can bring about a sense of relief that will allow the
member to function normally.
Release of Emotional Tension
People tend to get emotional release from their frustrations and other problems
whenever they have an opportunity to tell someone about them. Counseling history
consistently shows that as persons begin to explain their problems

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Listening skills:
Listen attentively to the client in an attempt to understand both the content of their
problem, as they see it, and the emotions they are experiencing related to the
problem. Do not make interpretations of the client's problems or offer any
premature suggestions as to how to deal with, or solve the issues presented. Listen
and try to understand the concerns being presented. Most people want and need to
be heard and understood, not advised.
Resistance:
Changing human behavior is not usually a linear, direct, and logical process. It is
very emotional and many habits of behavior and thought that are dysfunctional are
difficult to break. People invest a sense of security in familiar behavior, even some
behavior that causes them pain. Changing this is often a difficult and tangential
process.
Respect:
No matter how peculiar, strange, disturbed, weird, or utterly different from you
that the client is, they must be treated with respect! Without this basic element
successful therapy is impossible. You do not have to like the client, or their values,
or their behavior, but you must put your personal feelings aside and treat them with
respect.
Empathy and Positive Regard:
Based in the writings of Carl Rogers, these two principles go along with respect
and effective listening skills. Empathy requires you to listen and understand the
feelings and perspective of the other person (in this case your client) and positive
regard is an aspect of respect.
Clarification, confrontation, interpretation:
These are techniques of therapeutic intervention that are more advanced, although
clarification is useful even at a basic level. Clarification is an attempt by the
therapist to restate what the client is either saying or feeling, so the client may
learn something or understand the issue better. Confrontation and interpretation are
more advanced principles and we won't go into them except to mention their
existence.

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Transference and Counter transference:
This is a process wherein the client feels things and has perceptions of the
therapist that rightly belong to other people in the client's life, either past or
present. It is a process somewhat related to projection. Understanding transference
reactions can help the client gain understanding of important aspects of their
emotional life.

THE COUNSELING PROCESS

Effective leaders use the four stage counseling process
Effective leaders use the counseling process. It consists of four stages:

Identify the need for counseling.

Prepare for counseling.
Conduct counseling.
Follow up.

IDENTIFY THE NEED FOR COUNSELING

Quite often organizational policies, such as counseling associated with an
evaluation or counseling required by the command, focus a counseling session.
However, you may conduct developmental counseling whenever the need arises
for focused, two-way communication aimed at subordinate development.
Developing subordinates consists of observing the subordinate's performance,
comparing it to the standard, and then providing feedback to the subordinate in the
form of counseling.
PREPARE FOR COUNSELING
Successful counseling requires preparation. To prepare for counseling, do the
following:
Select a suitable place.
Schedule the time.
Notify the subordinate well in advance.
Organize information.
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Outline the counseling session components.
Plan your counseling strategy.
Establish the right atmosphere.
Select a Suitable Place: Schedule counseling in an environment that minimizes
interruptions and is free from distracting sights and sounds.
Schedule the Time: When possible, counsel a subordinate during the duty day.
Counseling after duty hours may be rushed or perceived as unfavorable. The length
of time required for counseling depends on the complexity of the issue. Generally a
counseling session should last less than an hour. If you need more time, schedule a
second session.
Notify the Subordinate Well in Advance: For a counseling session to be a
subordinate-centered, two-person effort, the subordinate must have time to prepare
for it. The subordinate should know why, where, and when the counseling will take
place. Counseling following a specific event should happen as close to the event as
possible.
Organize Information: Solid preparation is essential to effective counseling.
Review all pertinent information. This includes the purpose of the counseling, facts
and observations about the subordinate, identification of possible problems, main
points of discussion, and the development of a plan of action.
Outline the Components of the Counseling Session: Using the information
obtained, determine what to discuss during the counseling session. Note what
prompted the counseling, what you aim to achieve, and what your role as a
counselor is.
Plan Counseling Strategy: As many approaches to counseling exist as there are
leaders. The directive, nondirective, and combined approaches to counseling were
addressed earlier. Use a strategy that suits your subordinates and the situation.
Establish the Right Atmosphere: The right atmosphere promotes two-way
communication between a leader and subordinate. To establish a relaxed
atmosphere, you may offer the subordinate a seat or a cup of coffee. You may want
to sit in a chair facing the subordinate since a desk can act as a barrier.

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CONDUCT THE COUNSELING SESSION
Even when you haven't prepared for formal counseling, you should address the
four basic components of a counseling session. Their purpose is to guide effective
counseling rather than mandate a series of rigid steps. Counseling sessions consist
of:
Opening the session.
Discussing the issues.
Developing the plan of action.
Open the Session: In the session opening, state the purpose of the session and
establish a subordinate centered setting. Establish the preferred setting early in the
session by inviting the subordinate to speak. The best way to open a counseling
session is to clearly state its purpose. For example, an appropriate purpose
statement might be: "The purpose of this counseling is to discuss your duty
performance over the past month and to create a plan to enhance performance and
attain performance goals." If applicable, start the counseling session by reviewing
the status of the previous plan of action.

Develop a Plan of Action: A plan of action identifies a method for achieving a

desired result. It specifies what the subordinate must do to reach the goals set
during the counseling session. The plan of action must be specific: it should show
the subordinate how to modify or maintain his behavior. It should avoid vague
intentions such as "Next month I want you to improve your land navigation
skills.".
Record and Close the Session: Although requirements to record counseling
sessions vary, a leader always benefits by documenting the main points of a
counseling session. Documentation serves as a reference to the agreed upon plan of
action and the subordinate's accomplishments, improvements, personal
preferences, or problems. A complete record of counseling aids in making
recommendations for professional development, schools, promotions, and
evaluation reports.

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FOLLOW UP
Leader's Responsibilities: The counseling process doesn't end with the counseling
session. It continues through implementation of the plan of action and evaluation
of results. After counseling, you must support subordinates as they implement their
plans of action. Support may include teaching, coaching, or providing time and
resources. You must observe and assess this process and possibly modify the plan
to meet its goals. Appropriate measures after counseling include follow-up
counseling, making referrals, informing the chain of command, and taking
corrective measures.
Assess the Plan of Action: The purpose of counseling is to develop subordinates
who are better able to achieve personal, professional, and organizational goals.
During the assessment, review the plan of action with the subordinate to determine
if the desired results were achieved. You and the subordinate should determine the
date for this assessment during the initial counseling session. The assessment of the
plan of action provides useful information for future follow-up counseling
sessions.

THE TOP 10 QUALITIES OF AN EFFECTIVE COUNSELOR ARE:

Patience
As a counselor you need to have patience with your clients as they process the
discussion. It may take them time to accept certain things and to move towards
positive changes. Some people need to discuss something many times before they
are prepared to make a move in any particular direction. Also, you are not likely to
see large changes in an individual client; therefore, you must be okay with
incremental progress in their lives and rejoice over small victories.

Good Listener
Counselors spend a significant amount of time listening to their clients. You will
do more listening than talking. You must be content to give the client time to
express their story and their feelings. You will need to be intuitive in discerning
what the client is really saying and read between the lines.
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Compassionate
It is very important that your clients feel your compassion for their problems and
that they sense you truly care about them. You may not be able to relate to every
issue that is shared with you, but you need to be able to have compassion for how
it feels to be in their shoes. Genuine concern yields positive results.
Nonjudgmental
Counselors hear all kinds of private information and encounter all types of people.
You may hear dark secrets from someones past involving such things as sexual or
criminal behavior. You must do you best to refrain from judgment and instead
communicate positive regard. There are times when it may be necessary to judge a
particular behavior, but the client must not feel that you are judging them.
Research-Oriented
Being a counselor involves a significant amount of time spent researching. You
will need to stay current on the research in order to help your clients. This involves
reading books and journal articles on a regular basis. You do not learn everything
you need to know while in college. Much of your knowledge will come from
personal research after you have begun to see clients.
Empathetic
Empathy is the ability to understand and share the feelings of others. You need to
be able to put yourself in the shoes of your client and understand the situation from
their point of view. Even if you dont agree with their perspective, you still need
the ability to understand how it feels to them in order to address their issue
effectively.
Discrete
Confidentiality is of upmost importance when you are a counselor. You must be
able to maintain confidentiality so the client can trust you with their most intimate
concerns.
Encouraging
The ability to encourage is important for a counselor. Many clients are struggling
to find hope in their situation. One of the primary jobs of a counselor often
involves instilling hope in a hopeless individual.

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Self-Aware
A counselor who is aware of their own fears, insecurities, and weaknesses will be
effective in the therapeutic relationship. It is important that you do not react
defensively to what a client shares. You must be able to keep your own feelings
out of the session. You will be better able to do this if you are self-aware. In
addition, self-aware individuals are more intuitive with regards to solving their
own problems and can use that knowledge to help clients through similar
situations.
Authenticity
Authenticity is vital when working with clients. Clients will know if you are being
fake or not showing genuine concern. They will not open up to you or trust your
advice unless they feel you are genuine. This is even more critically important
when working with teens.

WHAT COUNSELING IS AND IS NOT

What counseling is?
Counseling facilitates change. Most people pursue counseling because they are
lost, stuck or unhappy; they are smart enough to know they feel this way and they
have the courage to seek help.
Counseling presents the opportunity to truly be heard and brainstorm effective
solutions.
Counseling assists people in becoming aware of what's happening within them and
within their relationships so they can best decide what needs to change and how to
initiate this change.

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What counseling is not?
Counseling is not advice, it is a dialogue.
Counseling is not just friendly conversation; it is where the client discusses his or
her issues in an atmosphere of confidentiality and non-judgment.
The counselor may offer suggestions based on theory, practice and experience;
however the client is the expert in his or her own life.

What Counseling Can Provide

Counseling provides a supportive service that creates a safe emotional environment
in which an individual can explore difficult personal issues. Fears, anger,
abandonment, rejections, trauma and confusion can all be examined and clarified
by using counseling as a mirror that reflects back the truth of the issues and/or
problems, in order to find resolution.
The rapport and relationship that is built between the counsellor and client is the
supportive mirror that allows the client to take action towards creating positive
changes in their life. Reflective mirroring, in the form of the trust between client
and counselor, can provide a fresh perspective and a huge difference to an
individuals emotional life.

EMPLOYEE COUNSELING PROCESS:

In attempting to help an employee who has a problem, a variety of counseling
approaches are used. All of these counseling approaches, however, depend on
active listening. Sometimes the mere furnishing of information or advice may be
the solution to what at first appeared to be a knotty problem. More frequently,
however, the problem cannot be solved easily because of frustrations or conflicts
that are accompanied by strong feelings such as fear, confusion, or hostility. A
manager, therefore, needs to learn to use whatever approach appears to be suitable
at the time. Flexibility is a key component of the employee counseling process.

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1. Directive Counseling: It is full counseling. It is the process of listening to an
employees problem, deciding with the employee what should be done and telling
and motivating the employee to do it. This type of counseling mostly does the
function of advice, reassurance and communication. It may also perform other
functions of counseling.
2. Non-directive Counseling: In non-directive counseling, the employee is permitted
to have maximum freedom in determining the course of the interview. It is the
process of skillfully listening and encouraging a counselee to explain troublesome
problems, understand them and determine appropriate solutions6. Fundamentally,
the approach is to listen, with understanding and without criticism or appraisal, to
the problem as it is described by the employee. The employee is encouraged,
through the managers attitude and reaction to what is said or not said, to express
feelings without fear of shame, embarrassment, or reprisal. The free expression
that is encouraged in the non-directive approach tends to reduce tensions and
frustrations. The employee who has had an opportunity to release pent-up feelings
is usually in a better position to view the problem more objectively and with a
problem-solving attitude.
3. Participative Counseling: Both directive and non-directive methods suffer from
limitations. While the former is often not accepted by independent employees, the
latter needs professionals to operate and hence is costly. Hence, the counseling
used in most situations is in between these two. This middle path is known as
participative counseling. Participative is a counselor-counselee relationship that
establishes a cooperative exchange of ideas to help solve an employees problems.
It is neither wholly counsellor-centred nor wholly counselee-centred. Counselor
and counselee mutually apply their different knowledge, perceptions, skills,
perspectives and values to problem into the problems and find solutions.

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Methods of Employee Counseling
Effectiveness of counselling largely depends on the methods and techniques as
well as the skills used by the counsellor. Methods and techniques of counceling
change from person to person and from situation to situation. Normally employee
counseling involves the following methods:
1. Desensitization: According to Desensitization, once an animal has been shocked
in a particular situation, it will continue to avoid it indefinitely. This is quite true in
respect of human beings also. Once an individual is shocked in a particular
situation, he gives himself no chance for the situation to recur. This method can be
used to overcome avoidance reactions, so as to improve the emotional weak spots.
If an employee is once shocked by the behavior, approach or action of his superior,
he would continue to avoid that superior. It is difficult for such superiors to be
effective counselors, unless such superiors prove otherwise through their behavior
or action on the contrary. Similarly, once an employee is shocked by a particular
situation, he can be brought back to that situation only if he will be convinced
through desensitization that the shock will not to take place further. Counselor can
make use of desensitization in such situations.
2. Catharsis: Discharge of emotional tensions can be called catharsis. Emotional
tensions can be discharged by talking them out or by relieving of the painful
experience which engendered them. It is an important technique as a means of
reducing the tensions associated with anxiety, fear, hostility, or guilt. Catharsis
helps to gain insight into the ways an emotional trauma has been affecting the
behavior.
3. Insight: With the help of insight one may find that he has devalued himself
unnecessarily, or his aspirations were unrealistic, or that his childish interpretation
of an event was inaccurate. Then he can overcome his weakness.
4. Developing the new patterns: Developing new patterns becomes very often
necessary when other methods to deal with weak spots remain ineffective. In order
to develop new, more satisfying emotional reactions, the individual needs to
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expose himself to situations where he can experience positive feelings. The
manager who deals with such individuals may motivate or instigate them to put
themselves into such situations, so that their self-confidence may increase.
5 ACTIONS TO SUPPORT ROLE CLARITY AND ACCOUNTABILITY
The following set of actions work equally well in aligning and defRole
Clarityining role clarity for individuals, teams and organizations. The actions
presented here are best achieved in a team environment with the right people
collaborating to complete each step in the process.
1.

Be clear about Purpose and Priorities

Define in clear terms: The customer- who you exist to serve; The customer needhow you add value in fulfillment of that need; and, What makes you truly unique
in your value proposition to your customer. Identify and focus the essential key
priorities that are required in the delivery of your unique value.
2.
Define Critical Success Factors required to achieve the Purpose and
Priorities
Identify the critical success factors required by you, your team, and/or your
organization in the delivery of the value in fulfilling the customer need.
3.
Identify the Mission Critical Functions and Tasks to meet the Critical
Success Factors
Based on your critical success factors, define all the work required key functions
and tasks. Be as clear and comprehensive as you can. This action usually takes
time to complete. Patience is required as the devil is in the detail".
4.

Align the Functions and Tasks into Roles and Positions

Logically align the identified functions and tasks into roles and positions that are
matched with skills and capabilities required. Align the roles within the group or
organizations hierarchical organizational structure and identify the
interdependencies of roles.

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5.

Communicate, Communicate, Communicate. Coach

Effective implementation of revised roles and accountabilities is the most

important action in supporting role clarity. This works well when all individuals
with revised roles and positions are able to effectively communicate their
understanding to all other stakeholders impacted by the role, including
interdependencies.

POTENTIAL APPRAISAL:
The potential appraisal refers to the appraisal i.e. identification of the hidden
talents and skills of a person. The person might or might not be aware of them.
Potential appraisal is a future oriented appraisal whose main objective is to
identify and evaluate the potential of the employees to assume higher positions and
responsibilities in the organizational hierarchy. Many organizations consider and
use potential appraisal as a part of the performance appraisal processes.

The
1.
2.
3.
4.

purposes

of

potential

review

are:

To inform employees of their future prospects;

To enable the organization to draft a management succession programme;
To update training and recruitment activities;
To advise employees about the work to be done to enhance .their career
opportunities.

Techniques of potential appraisal:

1.
2.
3.
4.
5.
6.
7.
BIMS

Self appraisals
Peer appraisals
Superior appraisals
MBO
Psychological and psychometric tests
Management games like role playing
Leadership exercises etc

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Potential appraisal helps to identify what can happen in future so that it can be
guided and directed towards the achievement of individual and organizational
growth and goals. Therefore, potential should be included as a part of the
Performance appraisal in organizations.

Facts [+]
The Potential for Improving Performance, or PIP, measures the performance of the
average worker versus the best person performing a particular task. Large
differences suggest that performance can be improved by bringing average
performance up closer to the best performance. Small differences suggest little
potential for improvement.
The following are some of the requirements and steps to be followed when
introducing a potential appraisal system:
Role Description: A good potential appraisal system would be based on clarity of
roles and functions associated with the different roles in an organisation. This
requires extensive job descriptions to be made available for each job. These job
descriptions should spell out the various functions involved in performing the job.
Qualities Required: Besides job descriptions, it is necessary to have a detailed list
of qualities required to perform each of these functions. These qualities may be
broadly divided into four categories (1) Technical knowledge and skills,
(2) Managerial capabilities and qualities,
(3) Behavioral capabilities, and
(4) Conceptual capabilities.
Indicators of Qualities: A good potential appraisal system besides listing down
the functions and qualities would also have various mechanisms for judging these
qualities in a given individual. Some of the mechanisms for judging these qualities
are (a) Rating by others,
(b) Psychological tests,
(c) Simulation games and exercises,
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(d) Performance appraisal records.
Organizing the System: Once the functions, the qualities required to perform
these functions, indicators of these qualities, and mechanisms for generating these
indicators are clear, the organization is in a sound position to establish and operate
the potential appraisal system. Such establishment requires clarity in organizational
policies and systematization of its efforts.

Feedback: If the organization believes in the development of human resources it

should attempt to generate a climate of openness. Such a climate is required for
helping the employees to understand their strengths and weaknesses and to create
opportunities for development. A good potential appraisal system should provide
an opportunity for every employee to know the results of assessment. He should be
helped to understand the qualities actually required for performing the role for
which he thinks he has the potential, the mechanisms used by the organization to
appraise his potential, and the results of such an appraisal.

Potential Appraisal Vs. Performance Appraisal

Potential Appraisal is forward looking process whether performance appraisal is
backward looking process. Any good or worse assessment results of performance
appraisal may not be a good factor for potential appraisal. But current performance
of an employee could show evidence somewhere whether he/she is flexible for
new working conditions.

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An effective performance management system starts with a thorough goal-setting

process, followed by regular feedback and reviews/appraisals. It also identifies
employees' developmental needs and includes robust reward and recognition
practices. The system also should encourage collaboration, teamwork, and
communication.
The manager's effect on a performance management system
Fundamentally,
a
performance
management
system
is
composed
of process and people elements. The process element includes items such as job
descriptions, rating criteria, the time period of performance appraisal discussions,
and reward and recognition systems. The key component of the people element is
the manager, who drives the system by setting expectations, communicating plans,
encouraging development, and giving and receiving feedback.
Our analysis revealed that most companies invest in world-class processes for their
performance management system, but they overlook the importance of the people
element. And because managers have the greatest impact on that element, we
decided to investigate whether managerial ability was responsible for the variance
in employee experience with the system.

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To determine the manager's effect on the performance management system, we
conducted research with the same participants from our initial study. To gain a
sense of managerial ability, we asked each employee to rate his or her manager to
determine how much managers:

helped employees feel empowered

recognized or praised employees' achievements
cared about their employees
had regular discussions with employees
Those who received top scores were considered "best" managers, while those who
received the lowest rating were considered "below average."
Next, we looked at how satisfied these same employees were with their company's
performance management system. Employees were asked to rate the system by
indicating their agreement with the statement "My company's performance
management system clearly differentiates the good performers from the poor
performers in my company." A high score earned the system a rating of "very
good," while the lowest ratings earned the system a score of "poor."
Our analysis revealed that employees who gave their managers "best" ratings
found the performance management system to be much more effective than did
employees who gave their managers "below average" ratings.

Seventy percent of employees who gave their managers "best" ratings rated their
performance management system as "very good."
In contrast, only 2% of employees who rated their managers as "below average"
gave their system a "very good" rating.

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The relationship between employees and their manager is key

Though good processes are important in any performance management system, the
human element is the most important component in whether employees perceive
the system as effective. The relationship between an employee and his or her
manager is the key factor in driving those perceptions, and it accounts for the great
variance in those perceptions among the employees we studied. Our research with
these 22 companies revealed that great managers:

clearly communicated performance standards and what good performance in a role

looks like
focused on employee strengths rather than weaknesses
helped employees understand that the purpose of the performance management
system was to aid in their development; it was not just an activity required for pay
or promotions
communicated regularly with their team members on performance expectations,
rather than once a year

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A company might have a world-class performance management system in place,
but the system is only as effective as the managers who implement it. Companies
that want to increase organizational and employee performance and productivity
should invest in getting the right managers in place and support them in engaging
their employees.
DEFINITION OF JOB ANALYSIS
A job analysis is the process used to collect information about the duties,
responsibilities, necessary skills, outcomes, and work environment of a particular
job. You need as much data as possible to put together a job description, which is
the frequent outcome of the job analysis. Additional outcomes include recruiting
plans, position postings and advertisements, and performance development
planning within your performance management system.

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Module 3:
part II Training and Development
Introduction to training and development
Training can be introduced simply as a process of assisting a person for enhancing
his efficiency and effectiveness to a particular work area by getting more
knowledge and practices. Also training is important to establish specific skills,
abilities and knowledge to an employee. For an organization, training and
development are important as well as organizational growth, because the
organizational growth and profit are also dependent on the training. But the
training is not a core of organizational development. It is a function of the
organizational development.
Training and Development is the framework for helping employees to develop
their personal and organizational skills, knowledge, and abilities. The focus of all
aspects of Human Resource Development is on developing the most superior
workforce so that the organization and individual employees can accomplish their
work goals in service to customers.
Raw human resources can make only limited contribution to the organization to
achieve its goals and objectives. Hence the demands for the developed employees
are continuously increasing. Thus the training is a kind of investment.
Meaning of training and development:
Training and development refers to any effort to advance the present or prospected
workers' performance, by increasing an employee's capability through learning.
This process changes the employee's mind-set and also boosts his/her skills and
knowledge.
It is a learning process that involves the acquisition of knowledge, sharpening of
skills, concepts, rules, or changing of attitudes and behaviors to enhance the
performance of employees

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DEFINITION OF TRAINING AND DEVELOPMENT:

The official and ongoing educational activities within an organization designed to
enhance the fulfillment and performance of employees. Training and development
programs offered by a business might include a variety of educational techniques
and programs that can be attended on a compulsory or voluntary basis by staff.
Training is about knowing where you stand (no matter how good or bad the
current situation looks) at present, and where you will be after some point of
time.
ROLE OF TRAINING

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Training needs analysis:
Training Analysis (sometimes called Training Needs Analysis (TNA)) is the
process of identifying the gap in employee training and related training needs.
A Training Needs Analysis is an analysis of the training, learning and development
needs of the staff, volunteers and trustees in an organisation. It considers the skills,
knowledge and behaviours of the people in the organisation and how to develop
them, both to deliver the organisations strategic objectives and support the
individuals career progression.
A Training Needs Analysis should ideally be taken at three levels:
Organizational
Team
Individual
Methods of Identifying Training Needs
Training needs will differ with the backgrounds of the employees to be trained, and
their present status in the organization. Basically, a candidate for training may
come from any one of three groups :
1) New hires
2) Retaining and upgrading veteran employees
3) Pipeline employee requirement
New Hires
Addition of new employees creates high and low peaks in placing new persons into
the training program. This problem may be solved by a program where progression
is made in different sequences. It will eliminate a jam that will occur if all phases
of

the

program

must

be

taken

in

definite

sequence.

The new employees will normally be of somewhat different backgrounds. Being

new, they are not familiar with their new employers.
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Retaining & Upgrading Veteran Employees
The people in this category offer a real challenge to the training department. Therefore, the number and amount of training required by this category should be
carefully considered. Often the retraining and upgrading of former employees can
be very rewarding for training instructors
Pipeline Employee Requirements
A good training program will normally have participants in various phases of
comp- letion. An awareness of completion dates and how the potential employee
will be employed should be the concern of the training staff and also the
employees supervisor. A trainee should have a challenge in all phases of his
training. All these challenges should not be confined to those phases where the
pipeline employee is sitting in a classroom.
TECHNIQUES FOR DETERMINING SPECIFIC TRAINING NEEDS
There are a number of practical methods you can use to gather data about
employees performance. Each works well in given circumstances; therefore, you
must determine which the best be for you. None of these methods can stand alone.
Always use at least two, if for no other reason to validate your findings. One of
those you choose should always be observation.
1. Observation
In this approach, an employees performance itself is you source of information.
You evaluate a workers performance through first-hand observation and analysis.
The objective during observations is to identify both the strengths to build on and
the deficiencies to overcome. A key advantage of using direct observation in the
needs analysis is that you gain first-hand knowledge and understanding of the job
being performed and the strengths and weaknesses of the relevant worker.
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2. Interviews
The use of interviews in conducting the needs analysis is strongly urged. The
prime value of interview guides is that they ensure the same types of data from all
sources. This allows you to determine whether a piece of information is one
persons opinion, or part of a widespread perception. Interviews allow you to meet
employees face to face to discuss their impressions of performance
You also gain these benefits through interviewing:
1. You build credibility with your interviewees by asking intelligent questions and
Listening well to their answers
2. You obtain employees personal involvement and commitment to your efforts
3. You establish personal relationships with potential trainees who are important to
your success as a needs analyst and trainer
3. Questionnaires
A questionnaire is a sort of interview on paper. You create your own questionnaire
by writing down all the questions you want employees to answer for you. Then you
mail it to them and await their responses.
Questionnaires can be useful in obtaining a big picture of what a large number
of employees think while allowing everyone to feel that they have had an
opportunity to participate in the needs analysis process.

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4. Job Descriptions
Before establishing a job description, a job analysis must be made. This job
analysis involves a thorough study of all responsibilities of the relevant job. It is
companywide in scope and should be detailed to such a degree that those
conducting the training can use the job analysis as a yardstick for their course
content.
5. The Difficulty Analysis
The Job Analysis will focus attention on enumerating the numerous duties that a
worker must perform. On the other hand, the Difficulty Analysis establishes which
of the duties cause the employee the greatest amount of troubles and how this
trouble can be reduced through better training.
6. Problem Solving Conference
It is always helpful to utilize an outside consultant to moderate such sessions. This
outside sponsorship has a tendency of letting the workers express their feelings
about his organization, and the session can then be geared to training needs. The
current problems will evolve that represent potential areas for training.
7. Appraisal Reviews
Feed- back at appraisal interview time is valuable since it is timely information.
Training needs differ from worker to worker, and appraisal sessions allow the
employee and supervisor / manager to uncover the cause of weaknesses in
performance. These deficiencies represent areas for training.
8. Drive Pattern Identity
The extent of an employees development depends on his motivations. Identifying
the forces that cause an employee to behave in a certain way may be useful in
determining his individual training needs and how to stimulate his desire to fulfill
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that need. An analysis of this kind, for example, may determine that the employee
has an urgent need for self-confidence. His individual program should be made to
stress the importance of attitude, skills etc., and any other assets that would give
him this self- confidence.
9. Analysis of Organizational Policy
Organization policy will affect the amount of training offered. An explanation of
various policies should be covered in the training program. Of particular concern
are those policies that involve change, alteration and major revamping of training
programs. In organizations undergoing merger activity, product diversification and
new penetration, a great deal of sensitivity must be placed on policies today and
expected changes in the future.
RELATIONSHIP
MANAGEMENT:

BETWEEN

TRAINING

AND

PERFORMANCE

Background
Managers have different views of how much training is needed for an employee to
produce desired performance outcomes. It's important to understand that most
employees do not come to their jobs with the total knowledge and experience
required to perform perfectly.
General and Specific Training
Employees can receive two kinds of training to improve their performance. First, a
company can offer general training to give employees new knowledge and skills,
which will be transferable to any future job. Second, a company can offer training
in skills specific to its technologies and work processes.

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Motivation
The availability of effective training programs, both mandatory and elective, is
essential to a firm's overall performance. Some employees are motivated primarily
by career goals and need flexibility to request training when needed. Other
employees will only complete required training. Employers should design training
options to motivate workers of all types and give them feedback during training.
Systematic Approach
Employers benefit from a systematic approach to training design. Whether they use
internal or external trainers, they need to study training needs systematically using
a problem-solving method. Each employee or group of employees must be
assessed for training needs. Then, trainers must confer with managers to decide
what kinds of training activities will produce improved performance.
OBJECTIVES OF TRAINING AND DEVELOPMENT:
Training and development activities are planned on the basis of need and demand
to enable employees to meet one or more of the following objectives:
To ensure that the skills, ability and potential of all our staff are recognized
and developed in accordance with the Integrated Personal Development
Systems (IPDS).
To continually improve the quality of local and regional human and physical
training/development resources to support the introduction of IPDS.
To support our staff to develop their skills and abilities and reach their
potential and in doing so improve the effectiveness of the organization and
the quality of the service we provide
To increasingly focus our training/development resources in the workplace
in order that the skills and abilities of our workplace are improved.

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NEEDS FOR TRAINING AND DEVELOPMENT:
The first step of the process of training and development is identification of the
organizational needs for trained manpower, both present and future. Basically
some questions can be used in this step.
a) What specifically must an employee learn in order to be more productive?
b) Where is training needed?
c) Who needs to be trained?
Secondly, consider whether the organization is financially committed to support
the training efforts. If not, any attempt to develop a solid training program will fail.
Individual employees can be evaluated by comparing their current skill levels or
performance to the organization's performance standards or anticipated needs. Any
discrepancy between actual and anticipated skill levels identifies a training need.
Training and development need = standard (expected) performance-actual
performance

The need for Training and Development

Before we say that technology is responsible for increased need of training inputs
to employees, it is important to understand that there are other factors too that
contribute to the latter. Training is also necessary for the individual development
and progress of the employee, which motivates him to work for a certain
organization apart from just money. We also require training update employees of
the market trends, the change in the employment policies and other things.

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The following are the two biggest factors that contribute to the increased need to
training and development in organizations:
Change:
The word change encapsulates almost everything. It is one of the biggest factors
that contribute to the need of training and development. There is in fact a direct
relationship between the two. Change leads to the need for training and
development and training and development leads to individual and organizational
change, and the cycle goes on and on. More specifically it is the technology that is
driving the need; changing the way how businesses function, compete and deliver.
Development:
It is again one the strong reasons for training and development becoming all the
more important. Money is not the sole motivator at work and this is especially very
true for the 21st century. People who work with organizations seek more than just
employment out of their work; they look at holistic development of self.
Spirituality and self awareness for example are gaining momentum world over.
People seek happiness at jobs which may not be possible unless an individual is
aware of the self.

Difference between training and development:

Training

Development

Short-term focus/Task Oriented

Long-term focus/Skills oriented

Group based (more often than not)

individually based

Focuses on the today needs

Compliance area strength
approach

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Leads to the tomorrow results

Opportunities to develop strategic

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Other items that my small group noted were:
Information versus values
after training

Targeted to the individual; growth

5%

95%

Training:
1.It's a short term process.
2.Refers to instruction in technical and mechanical problems
3.Targeted in most cases for non-managerial personnel
4.Specific job related purpose
Development:
1. It is a long term educational process.
2. Refers to philosophical and theoretical educational concepts
3. Managerial personnel
4. General knowledge purpose

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CHARACTERISTICS OF AN EFFECTIVE TRAINER:
Character
By character I mean the professional credentials and credibility of the trainer.
Training as a career choice is different from all other professions. You need to
have a passion towards training your disciples to success especially since you, as a
trainer, would be responsible for several young enthusiasts career.
Command on the subject
The second most important trait that is important for a trainer to have is a thorough
grasp of his subject. Needless to say, a trainer with an imperfect knowledge about
his topics is jeopardizing the careers of his students, and such a person soon loses
the respect of his class. The only way you can effectively grab the attention as well
as the respect of the trainees is to convey to them that you indeed have a superior
knowledge of the subject.
Communication Skills
Some trainers lose the respect and interest of their audience despite their superior
knowledge of the subject because they lack the confidence and the communication
skills to connect with their students. Control it often happens that a discussion
heading towards a certain topic swings to something entirely different, which
distracts the attention of the class and leads to a wastage of valuable time.
Contact
The trainer must be capable enough to address the needs of every individual
participant in his class. He shouldnt allow himself to get carried away by the
superior understanding and grasping prowess of a few bright students and neglect
the needs of the rest of the flock. Every individual is different, as far as intelligence
is concerned, so the trainer needs to ensure that everyone is progressing at the same
pace and nobody gets left behind.

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Clarity
A good trainer is one who is able to make his subject as simple and interesting as
possible. His language should be stimulating but prosaic. There should be no
element of ambiguity. If the topic under discussion is challenging and complicated,
the trainer try to go slow and be patient enough to repeat himself as many times as
needed.
Empathy
A good trainer will listen to his or her trainees; hear their problems, and conduct
the training accordingly. As a trainer, your sole responsibility is your trainees, and
your interactions with them should convey that throughout the entire course of the
training.
Patience
A trainer needs to be able to walk in the student's shoes and relate to where they
are coming from. Of course, this is not easy in the least bit when you have a room
full of people, who understand, and one or two who do not. When I am in this very
common situation, I stay patient and calm with those who don't understand and tell
them we will work to catch them up during breaks, or after we are finished for the
day. If no one understands the material, you need to take a step back without
getting frazzled, and present the material in a different manner.
Confidence
I started with this simple confidence, which is what got me up in front of that
room. This, combined with the other qualities mentioned in this article that I've
acquired over the years, helped mold me into a highly successful trainer. It's easy
to tell the difference between confidence and cockiness. Make sure your potential
new hire is confident, but has enough of the other qualities we talked about to not
come off as cocky.
These are a few of the main qualities I look for in a successful trainer. Some may
seem fairly standard, but with stories I hear, and from trainings I have attended,
many organizations seem to ignore even these basic qualities in their training staff.
Hiring individuals with these qualities has definitely worked to our benefit, as we
have/had some great individuals work in our training department
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DESINGING THE TRAINING PROCESS:
1Analyze the training need.
When you develop a training program on the job, you'll take a look at what
knowledge, skills, and attitudes the students need to have upon completing
program, what knowledge, skills, and attitudes they have now, and then determine
how you will bridge the gap between them. You'll also consider the schedule for
the training, how the students are likely to learn best and any tools or resources
available to you.
2Design the training program.
Based on the results you obtain in the analysis phase, you will design the training.
This phase consists of identifying learning objectives, which describe in a manner
that can be measured what the student should be able to do upon completion of the
training. You'll also determine how the course will be delivered, such as by an
instructor in a classroom, online, or a blended approach. In the design phase, you
may also create outlines or storyboards to aid in the development of the training
program.
3Develop the training program.
In the development phase, use the objectives and other materials you created
during the design phase to develop the training program. The materials may
include an online training component and materials for the instructor and students.
In this phase, you might also develop a method for testing the students' change in
knowledge, skills, or attitudes based on the training.
4Implement the training program.
The implementation phase is sometimes called the delivery phase. In this phase,
you actually teach the training program to the students, whether the instruction
takes place online, in the classroom, or through another method. The first time the
instruction is offered is sometimes called a "pilot."

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5Evaluate the training program.
In the evaluation phase, you determine if the students obtained the knowledge,
skills, or attitudes you identified as the goal during the analysis phase. Using the
information you obtained during the evaluation phase, you can make additional
changes to the design, development, and delivery of the training program the next
time you offer it to students.

FIVE STAGES OF TRAINING EVALUATION

Our Training Evaluation Model sets the framework for developing instruments. It
accommodates individual training programs based on the type of training, the
appropriate evaluation method, and the best way to implement the evaluation.
This model has five stages and is illustrated in the Training Evaluation Model
diagram. Each stage corresponds to specific data categories:
Describe the outputs. Outputs are descriptive data about the training programs and
participants, including demographic data.
Pre-training assessment.
This step uncovers the participants past experience as well as current
competencies, learning needs, and expected application of learning.
Post-assessment (reactions).
This addresses participants reactions to the training experience for example,
their learning environment, format and instructor methods, general satisfaction.
Post-assessment (learning).
This piece is a self-assessment of knowledge or skills gained and the participants
expected application of learning.
Follow-up.
This process may include several methods to assess the outcomes and effect of
training programs over time.

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Purposes
The

five

of
main

Training
purposes

of

training

Evaluation
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.

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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.

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 learners 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. There are various evaluation techniques for this phase.

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Techniques of Evaluation
the various methods of training evaluation are:

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Observation
Questionnaire
Interview
Self diaries
Self recording of specific incidents

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Training Evaluation Form
Select an Event
Select

Event

Presenter

Start Date

Content
The training was informative.
I gained new and/or expanded knowledge.
The content was relevant to my job or services.
The objectives were met.

Materials
The handouts and/or materials were useful.
The training exercises stimulated my learning.

Presenter
The presenter was well prepared.
The presenter was knowledgeable and helpful.

Results
I would recommend the training to my colleagues.

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I will be able to use what I learned.
The training met my expectations.

Improvements

What improvements
would you recommend
for this training?

Comments

Do you have any

comments?

Personal Information
Name (Optional):
Email (Optional):
Check this box if AMAC can use your comments in
promotional flyers:

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MEASURING TRAINING EFFECTIVENESS:
Course Evaluation
Asking the trainees what they thought of the training is an important part of the
evaluation of the program. A training evaluation questionnaire that the trainees fill
out upon completing the program is an effective tool. A trainee survey focusing on
the application of the new skills once the employees have started using them
measures the usefulness of the training program. Companies must combine such
information with objective measurements to get a complete picture of training
results.
Performance
An objective measurement is an evaluation of employee and company performance
and a comparison with levels achieved prior to the training. If the problem is a high
error rate in an assembly, for example, the company establishes a target for
improvement and develops corresponding training. After the training, the company
measures the error rate again and compares it with the target. The training is
effective if the measurements meet or exceed the target.
Behavior
Companies sometimes have problems with employee behavior that affects
performance. In addition to measuring performance, the company must define the
behavioral characteristics that are unacceptable, develop training that specifically
addresses the questionable behavior and set measurable targets for success.
Corresponding tools, such as records of co-worker complaints and supervisor
reports and evaluations, measure instances of such behavior before and after the
training. They show that the training has been effective if the targets have been
met.
Knowledge
Effective training ensures that each employee has the knowledge are tests in the
subject matter. Training programs must define what knowledge is required for a
specific task, test employees for it and establish pass/fail levels. The tests measure
the effectiveness of the training. Excellent training programs result in all
employees acquiring the essential knowledge and passing the tests.
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CALCULATING THE RETURN ON INVESTMENT (ROI) IN TRAINING:
TAKING RESPONSIBILITY FOR THE MONEY INVESTED IN SKILLS
DEVELOPMENT
The good news is that ROI can be determined through a scientific method. ROI is
the measure of the monetary benefits obtained by an organization over a specified
period in return for a given investment in a learning programme. In other words, it
is the extent to which the benefits (outputs) of training exceed the costs (inputs).
The cost of training is the money invested in the training programme. The benefits
of the training programme would be the measurable output, i.e. the ability to
answer more telephone calls, or manufacture more nuts and bolts.
ROI is a key financial metric of the value of training investments and costs. It is a
ratio of net
benefits
to costs, expressed as a percentage.
The formula can be expressed as:
[(monetary benefits cost of the training) / cost of the training] x 100

If the ROI from a training programme is calculated at 335, it means that for every
rand spent, there has been a return of R3,55 in net benefit, after all costs are
factored in. The exact form of that benefit depends on the objectives of the learning
programme, i.e. better telephone technique application and communication skills
after training. The total cost of the employee to the organisation is calculated
including floor space, p.c. rental, etc. If the employee answers 3,000 calls per
month divided into the cost of R7, 000. to the organization, the cost would be
R2.33 per call cost to the organization. After training the employee answers 3,180
calls per month. The cost of the employee to the organization is now R2.20. The
value of the training programme is then calculated as per the above formula to
determine
the
monetary
value
of
the
benefit.

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It is important to follow proper guidelines for the effective application of the ROI
measurement process by adhering to the following steps:

Create awareness for ROI in the organization.

Build capacity for ROI by training staff to understand ROI.
Quantify information before the training in order to obtain a baseline (e.g.
number of calls answered, number of customer complaints, etc.).
Covert this data to monetary value (e.g. the cost of answering a call).
Allocate resources for ROI.
Develop a culture of measurement and accountability among training staff.
Start with only one course as a pilot programme to practice ROI skills.
Communicate results to training staff and the whole organization.
Design improvement plans for training programmes in order to increase
ROI.
Once ROI results are available, use the data to market future learning
programmes.

Measuring ROI is not a one-person show. It is a powerful tool that enables training
managers to prove the value of training, gaining credibility for the value added,
and a contribution to achieving organizational effectiveness. Measuring ROI is
about accountability and taking responsibility for the measuring the impact as a
result of the training. Measurement is about becoming a strategic business partner
that add value and provide integrated business solutions.

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DONALD KIRKPATRICK MODEL
The Four Levels
Donald Kirkpatrick, Professor Emeritus at the University of Wisconsin and past
president of the American Society for Training and Development (ASTD), first
published his Four-Level Training Evaluation Model in 1959, in the US Training
and Development Journal.
The model was then updated in 1975, and again in 1994, when he published his
best-known work, "Evaluating Training Programs."

The four levels are:

1.
2.
3.
4.

Reaction.
Learning.
Behavior.
Results.
Let's look at each level in greater detail.
Level 1: Reaction
This level measures how your trainees (the people being trained), reacted to the
training. Obviously, you want them to feel that the training was a valuable
experience, and you want them to feel good about the instructor, the topic, the
material, its presentation, and the venue.
It's important to measure reaction, because it helps you understand how well the
training was received by your audience. It also helps you improve the training for
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future trainees, including identifying important areas or topics that are missing
from the training.
Level 2: Learning
At level 2, you measure what your trainees have learned. How much has their
knowledge increased as a result of the training?
When you planned the training session, you hopefully started with a list of specific
learning objectives: these should be the starting point for your measurement. Keep
in mind that you can measure learning in different ways depending on these
objectives, and depending on whether you're interested in changes to knowledge,
skills, or attitude.
It's important to measure this, because knowing what your trainees are learning and
what they aren't will help you improve future training.
Level 3: Behavior
At this level, you evaluate how far your trainees have changed their behavior,
based on the training they received. Specifically, this looks at how
trainees apply the information.
It's important to realize that behavior can only change if conditions are favorable.
For instance, imagine you've skipped measurement at the first two Kirkpatrick
levels and, when looking at your group's behavior, you determine that no behavior
change has taken place. Therefore, you assume that your trainees haven't learned
anything and that the training was ineffective.
However, just because behavior hasn't changed, it doesn't mean that trainees
haven't learned anything. Perhaps their boss won't let them apply new knowledge.
Or, maybe they've learned everything you taught, but they have no desire to apply
the knowledge themselves.
Level 4: Results
At this level, you analyze the final results of your training. This includes outcomes
that you or your organization have determined to be good for business, good for
the employees, or good for the bottom line.

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HOW TO APPLY THE MODEL
Level 1: Reaction
Start by identifying how you'll measure reaction. Consider addressing these
questions:

Did the trainees feel that the training was worth their time?
Did they think that it was successful?
What were the biggest strengths of the training, and the biggest weaknesses?
Did they like the venue and presentation style?
Did the training session accommodate their personal learning styles ?
Next, identify how you want to measure these reactions. To do this you'll typically
use employee satisfaction surveys or questionnaires; however you can also
watch trainees' body language during the training, and get verbal feedback by
asking trainees directly about their experience.
Once you've gathered this information, look at it carefully. Then, think about what
changes you could make based on your trainees' feedback and suggestions.
Level 2: Learning
To measure learning, start by identifying what you want to evaluate. (These things
could be changes in knowledge, skills, or attitudes.)
It's often helpful to measure these areas both before and after training. So, before
training commences, test your trainees to determine their knowledge, skill levels,
and attitudes.
Once training is finished, test your trainees a second time to measure what they
have learned, or measure learning with interviews or verbal assessments.
Level 3: Behavior
It can be challenging to measure behavior effectively. This is a longer-term activity
that should take place weeks or months after the initial training.
Consider these questions:

Did the trainees put any of their learning to use?

Are trainees able to teach their new knowledge, skills, or attitudes to other people?
Are trainees aware that they've changed their behavior?
One of the best ways to measure behavior is to conduct observations and
interviews over time.
Also, keep in mind that behavior will only change if conditions are favorable. For
instance, effective learning could have taken place in the training session. But, if
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the overall organizational culture isn't set up for any behavior changes, the trainees
might not be able to apply what they've learned.
Alternatively, trainees might not receive support, recognition, or reward for their
behavior change from their boss. So, over time, they disregard the skills or
knowledge that they have learned, and go back to their old behaviors.
Level 4: Results
Of all the levels, measuring the final results of the training is likely to be the most
costly and time consuming. The biggest challenges are identifying which
outcomes, benefits, or final results are most closely linked to the training, and
coming up with an effective way to measure these outcomes over the long term.
Here are some outcomes to consider, depending on the objectives of your training:

Increased employee retention.

Increased production.
Higher morale.
Reduced waste.
Increased sales.
Higher quality ratings.
Increased customer satisfaction.
Fewer staff complaints.

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Module 4: types of Training
Meaning of training:
Organized activity aimed at imparting information and/or instructions to improve
the recipient's performance or to help him or her attain a required level of
knowledge or skill.
ON THE JOB TRAINING:
The four techniques for on the job development are:
1.
2.
3.
4.

Coaching
Mentoring
Job rotation
Job instruction technique (JIT)

Coaching:
Coaching is one of the training methods, which is considered as a corrective
method for inadequate performance. According to a survey conducted by
International Coach Federation (ICF), more than 4,000 companies are using coach
for their executives. These coaches are experts most of the time outside
consultants.
A coach is the best training plan for the CEOs because
1.
2.
3.
4.

It is one to one interaction

It can be done at the convenience of CEO
It can be done on phone, meetings, through e-mails, chat
It provides an opportunity to receive feedback from an expert

Procedure of the Coaching

The procedure of the coaching is mutually determined by the executive and coach.
The procedure is followed by successive counseling and meetings at the
executives convenience by the coach.

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1. Understand the participants job, the knowledge, skills, and attitudes, and
resources required to meet the desired expectation
2. Meet the participant and mutually agree on the objective that has to be
achieved
3. Mutually arrive at a plan and schedule
4. At the job, show the participant how to achieve the objectives, observe the
performance and then provide feedback
5. Repeat step 4 until performance improves
For the people at middle level management, coaching is more likely done by the
supervisor; however experts from outside the organization are at times used for up
and coming managers. Again, the personalized approach assists the manger focus
on definite needs and improvement.
Mentoring:
Mentoring is an ongoing relationship that is developed between a senior and junior
employee. Mentoring provides guidance and clear understanding of how the
organization goes to achieve its vision and mission to the junior employee.
Some key points on mentoring:
1.
2.
3.
4.
5.

Mentoring focus on attitude development

Conducted for management-level employee
Mentoring is done by someone inside the company
It is one-to-one interaction
It helps in identifying weaknesses and focus on the area that needs
improvement

Job rotation:
For the executive, job rotation takes on different perspectives. The executive is
usually not simply going to another department. In some vertically integrated
organizations, for example, where the supplier is actually part of same organization
or subsidiary, job rotation might be to the supplier to see how the business operates
from the supplier point of view.

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Benefits of Job Rotation
Some of the major benefits of job rotation are:
1. It provides the employees with opportunities to broaden the horizon of
knowledge, skills, and abilities by working in different departments,
business units, functions, and countries
2. Identification of Knowledge, skills, and attitudes (KSAs) required
3. It determines the areas where improvement is required
4. Assessment of the employees who have the potential and caliber for filling
the position
Job Instruction Technique(TIC):
Job Instruction Technique (JIT) uses a strategy with focus on knowledge (factual
and procedural), skills and attitudes development.
Procedure of Job Instruction Technique (JIT)
JIT consists of four steps:

Plan This step includes a written breakdown of the work to be done because the
trainer and the trainee must understand that documentation is must and important
for the familiarity of work. A trainer who is aware of the work well is likely to do
many things and in the process might miss few things. Therefore, a structured
analysis and proper documentation ensures that all the points are covered in the
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training program. The second step is to find out what the trainee knows and what
training should focus on.
Present In this step, trainer provides the synopsis of the job while presenting the
participants the different aspects of the work. When the trainer finished, the trainee
demonstrates how to do the job and why is that done in that specific manner.
Trainee actually demonstrates the procedure while emphasizing the key points and
safety instructions.

Trial This step actually a kind of rehearsal step, in which trainee tries to perform
the work and the trainer is able to provide instant feedback. In this step, the focus
is on improving the method of instruction because a trainer considers that any error
if occurring may be a function of training not the trainee. This step allows the
trainee to see the after effects of using an incorrect method. The trainer then helps
the trainee by questioning and guiding to identify the correct procedure.
Follow-up In this step, the trainer checks the trainees job frequently after the
training program is over to prevent bad work habits from developing.

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OFF THE JOB TRAINING:
1. Classroom Lectures:
under the off the job methods of training, classroom method or lecture method is
well-known to train white collar or managerial level employees in the organization.
Under this method employees are called to the room like that of classroom to give
training by trainer in the form of lectures. This method is effectively used for the
purpose of teaching administrative aspects or on management subject to make
aware of procedures and to give instructions on particular topic.
Advantage It can be used for large groups. Cost per trainee is low.
Disadvantages Low interest of employees. It is not learning by practice. It is
One-way communication. No authentic feedback mechanism. Likely to lead to
boredom for employees.
2. Audio-Visual:
Providing training by way of using Films, Televisions, Video, and Presentations
etc. This method of training has been using successfully in education institutions to
train their students in subjects to understand and assimilate easily and help them to
remember forever.
Advantages Wide range of realistic examples, quality control possible.
Disadvantages One-way communication, No feedback mechanism. No
flexibility for different audience.
3. Simulation: the simulation Method of training is most famous and core among
all of the job training methods. In the simulation training method, trainee will be
trained on the especially designed equipment or machine seems to be really used in
the field or job. But, those equipment or machines are specifically designed for
training trainees were making them ready to handle them in the real field or job.
This method of planning is mostly used where very expensive machinery or
equipment used for performing Job or to handle that job.
Ex: Aeroplane Pilate

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4. Vestibule Training: Mostly this method of training will be used to train technical staff, office staff and
employees who deal with tools and machines. Employees learn their jobs on the
equipment they will be using, but the training is conducted away from the actual
work floor by bringing equipments or tools to certain place where training is
provided, but not work place. Vestibule training allows employees to get a full feel
for doing task without real world pressures. Additionally, it minimizes the problem
of transferring learning to the job.
5. Case Studies:
It is a written description of an actual situation in the past in same organization or
somewhere else and trainees are supposed to analyze and give their conclusions in
writing. This is another excellent method to ensure full and whole hearted
participation of employees and generates good interest among them. Case is later
discussed by instructor with all the pros and cons of each option. It is an ideal
method to promote decision-making abilities within the constraints of limited data.
6. Role Playing:
During a role play, the trainees assume roles and act out situations connected to the
learning concepts. It is good for customer service and training. This method is also
called role-reversal, socio-drama or psycho-drama. Here trainees act out a
given role as they would in a stage play. Two or more trainees are assigned roles in
a given situation, which is explained to the group. Role playing primarily involves
employee-employer relationships, hiring, firing, discussing a grievance problem,
conducting a post appraisal interview, disciplining a subordinate, or a salesman
making presentation to a customer.
7. Programmed Instructions:
This involves two essential elements: (a) a step-by-step series of bits of knowledge,
each building upon what has gone before, and (b) a mechanism for presenting the
series and checking on the trainees knowledge. Questions are asked in proper
sequence and indication given promptly whether the answers are correct.

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8. Management Games
With computerized management games, trainees divide into five- or six-person
groups, each of which competes with the others in a simulated marketplace. Each
group typically must decide, for example.
How much to spend on advertising.
How much to produce,
How much inventory to maintain, and
How many of which product to produce.

Advantages of Off-the-Job Training

Trainers are usually experienced enough to train
It is systematically organized
Efficiently created programs may add lot of value

Disadvantages of Off-the-Job Training:

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It is not directly in the context of job

It is often formal
It may not be based on experience.
It is expensive.
Trainees may not be much motivated
It is artificial in nature.

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OUTWARD BOUND TRAINING:
Outward Bound Professionals approach is an action-based leadership training and
corporate development program that highlights outcome based management
solutions designed to target specific needs of your group. Outward Bound
Professional helps participants develop the essential skills for todays business
world. These skills include communication, creative problem solving, leadership,
flexibility, teamwork and risk-taking. Our customized approach will allow you to
work with our staff to define strategic areas of importance in order to achieve
result with your teams or target groups.
We design courses to suit the needs of you company:
1. Enhancing leadership effectiveness
2. Creating and maintaining high performing teams
3. Successfully navigating change processes
4. Renewing and energizing individuals, teams, and divisions
5. Increasing alignment of strategic direction
6. Creating an environment conducive to risk taking, innovation, and creativity
7. Promoting greater social and environmental responsibility
8. Providing orientation programs for new employees
9. Building effective relationships and alliances with customers, vendors, and
other stakeholders
We structure our courses based on management styles with a focus on desired
outcomes rather than course descriptions. Desired outcomes include team
development, leadership development, and integrated and modular management.
With this new approach we plan to offer training solutions rather than trips or
incentives. This will allow companies to get a chance to design the program to suit
the needs of the individual business. Our consultants can assist in implementing the
goals given to us by your staff.

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Team development
Teams exist in many forms, from the football field to the boardroom. There are just
as many teams as there are ways to manage them. Effective teams are the key to
achieving success. In this era when businesses are trying to do more with fewer
resources, teams are more important than ever.
Following the activities, we work with group members to facilitate reviews, reflect
on performance and discover ways to improve. Together we analyze group
dynamics and interactions. After one of our programs, the team will be equipped to
tackle future tasks with more skill and efficiency. Back on the job the or in the
office, new tools and techniques for communication and group dynamics can be
implemented immediately.
Leadership development
Outward Bound understands that effective leaders are a fundamental component in
any organizations success. For organizations to be successful, leaders at all levels
need to be effective. They must be able to combine vision with effective
communication skills and an understanding of how the process must be
undertaken.
Action-Based Learning
The Outward Bound method is called The Action Learning Cycle: People
perform an action, then reflect on what they learned. From this comes new ideas
and approaches, from which new behaviors are adopted.
Phase I Assessment
We perform interviews, questionnaires and meetings with the companys top
executives and some course participants to determine program scope, goals and
desired results. Using data from the online Leadership Development Profile, we
custom design the successive phases.
Phase II Design
We tailor programs to build on the existing strengths of your company while
focusing on individual, team and organizational needs and objectives.

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Phase III Delivery
Our programs use a combination of experiential problem-solving exercises, ropes
courses and wilderness expeditions as vehicles to explore individual and
organizational behavior. These elements allow groups to explore the complexities
of working together while analyzing critical factors of success and growth in order
to apply those lessons to the work environment.
Phase IV Follow Up
Working with clients after the program ensures that the key elements and
behavioral changes are incorporated into the work culture.

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Module 5:
Part III Competency mapping
History and origin of competency
Competency-based approaches have developed quite rapidly since their
introduction 25 years ago. David McClelland is credited with introducing the idea
of "competency" into the human resource literature (Dubois, 1993). In response to
a growing dissatisfaction with intelligence testing and the traditional job analytic
approaches to personnel selection, McClelland argued that traditional intelligence
tests, as well as proxies such as scholastic grades, failed to predict job
performance. Instead, McClelland proposed testing for competency.
Competency-based approaches gained popularity and acceptance within the human
resources community through the work of McClelland and his associates,
particularly Richard Boyatzis, at McBer and Company (which is now part of the
Hay Group). Boyatzis is credited with popularizing the term in his book "The
Competent Manager (Woodruff, 1991)". Boyatzis suggested that a competency
was a combination of a motive, trait, skill, aspect of one's self-image or social role,
or a body of relevant knowledge. In other words, a competency is any
characteristic of an individual that might be related to successful Performance.
Boyatzis' definition of competency left much room for debate over its application
to performance.
Klein's (1996) offered one more definition which diverges the most from the others
by suggesting that competencies are a collection of observable behaviors, or
Behavioral indicators. These Behavioral indicators are grouped according to a
central theme, which then becomes the competency. Klein suggests that the
behaviors underlie the competency; this is contrary to other definitions which
suggest that competencies underlie behaviors.
Woodruff raised the issue of distinguishing between competence and competency
and proposed that competence is a performance criterion while competencies are
the behaviors driving the competence. More recently, Rowe raised the same issue
and discusses competence in terms of a skill and a standard of performance and
defines competency as the behavior needed to achieve competence. This is similar
to Klein's argument that competencies are not psychological constructs but
thematic groups of demonstrated observable behaviors that discriminate between
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superior and average performance. These behaviors require no inference,
assumptions, or interpretation.
Zemke's comments at that time on the definition of competency remain valid
today:
"Competency, competencies, competency models, and competency-based training
are Humpty Dumpty words meaning only what the definer want them to mean. The
problem comes not from malice, stupidity or marketing avarice, but instead from
some basic procedural and philosophical differences among those racing to define
and develop the concept and to set the model for the way the rest of us will use
competencies in our day-today efforts." ( Zemke, 1982, p.28)

The Origins of Competency-Based Training

Hodge, Steven
Australian Journal of Adult Learning, v47 n2 p179-209 Jul 2007
This article attempts to trace the origins of competency-based training (CBT), the
theory of vocational education that underpins the National Training Framework in
Australia. A distinction is made between societal and theoretical origins. This
paper argues that CBT has its societal origins in the United States of America
during the 1950s, 60s and 70s. Public debate and government initiatives centered
on the widely held view that there was a problem with the quality of education in
the United States. One of the responses to this crisis was the Performance-Based
Teacher Education movement which synthesized the theory of education that
became CBT. The theoretical origins of CBT derive principally from behaviorism
and systems theory--two broad theoretical orientations that influenced educational
debate in the United States during the formative period of CBT. Most of the
component parts of CBT were contributed by specialists with a background in one
or both of these theoretical orientations.

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KSA V/S COMPETENCY:
Knowledge, skills and competence
This section will highlight the different kinds of learning outcomes that can be
acquired by learners.
Learning outcomes are categorized as: knowledge, skill, and competence.
Depending of the level of understanding the person is obtaining.
Knowledge: the outcome of the assimilation of information through learning.
Knowledge is the body of facts, principles, theories and practices that is related to
a field of work or study.
Skills: means the ability to apply knowledge and use know-how to complete tasks
and solve problems.
Competencies: means the proven ability to use knowledge and skills in work or
study situations and in professional and personal development. One key aspect of a
competence is the degree of autonomy and responsibility with which students are
able to apply knowledge and skills
For more information about this concepts please visit the Effective Use of
Learning Design course.Another important concept related to learning outcomes
are patterns. Patterns are examples of applied knowledge, skills or competencies in
real life.
Knowledge patterns describe what the learner knows, or is presumed to know.
Knowledge or belief does not automatically turn into behavior, but needs to be
applied to be of practical use.
Skill patterns, in contrast, are about patterns of behavior that are evident in the
learner's actions. In practice, all skills are supported by knowledge, which is why,
in this conceptual model, skill patterns are about knowledge in the individual as
well as behavior.
Competence patterns are more complex. They involve the application of
knowledge and skill and are, therefore, partly about the relevant aspects of the
learner. They are also about the kind of situations in which the knowledge and skill

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are applied. These kinds of situation are patterns that are instantiated in the world
just at those times and places where the competence is applicable.

REASONS FOR POPULARITY OF COMPENTENCY:

1. Management of Time and Priority Setting
Cutting across all position levels, time management is considered to be a required
competency that must be possessed by everybody. It is the ability to manage both
one's time as well as others'. It includes self-discipline, controlling interruptions by
molding the behavior of others who have varying priorities, and being timeeffective and time-efficient.
2. Goals and Standards Setting
Setting goals and standards are usually competencies that are required of
managerial and supervisory positions. It is about the ability to determine activities
and projects toward measurable goals and standards, setting these in collaboration
with others so as to arrive at a clear understanding and elicit commitment.
3. Work Planning and Scheduling
Like time management, this competency must be possessed by managerial and
supervisory employees and to those that are engaged in production. It is about
controlling manpower assignments and processes by using the major tools and
techniques of management. This includes the following skills: analyzing complex
tasks and breaking them into manageable units, selecting and managing resources
appropriate to the tasks, using systems and techniques to plan and schedule the
work, and setting checkpoints and controls for monitoring progress.
4. Listening and Organizing
Listening and organizing are communication competencies that deal with relating
to people in the organization. It is about the ability to understand, organize, and
analyze what one is hearing in order to decide what to think and do in response to a
message. These competencies are appropriate for employees who deal with
customers and those who work as a team, either as a leader or a member.
Specifically, they include skills like identifying and testing inferences and
assumptions, overcoming barriers to effective listening, summarizing and
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reorganizing a message for recall, and withholding judgment that can bias
responses to a message.
5. Clarity of Communication
Giving clear information is a competency that should be required of managerial
and supervisory employees. Whether verbally or in written forms, the messages
conveyed to audiences (whether internal staff or customers) should be clear and
concise and should attain the objectives. The skills would consist of a) overcoming
physical, psychological, and semantic barriers in interactions with others; b)
keeping on target and avoiding digressions; c) using persuasion effectively; and d)
maintaining a climate of mutual benefit and trust.
6. Getting Objective Information
For positions involving substantial people management, getting objective
information is a critical competency requirement in order to ensure fairness. This
competency is about the ability to use questions, probes, and interviewing
techniques to obtain unbiased information and to interpret it appropriately. It
considers such skills as: using directive, non-directive, projective and reflecting
questions effectively, employing the funnel technique of probing, using probing
methods to elicit additional information, recognizing latent and underlying
meanings, confirming understanding and attaining agreement.
7. Training, Mentoring and Delegating
These competencies should be required of supervisors and managers as well. They
involve the ability to develop people under them to attain higher levels of
excellence. The skills could consist of coaching, advising, transferring of
knowledge and skills, and teaching and pinpointing employees where tasks can be
transferred with trust and confidence.
8. Evaluating Employees and Performance
The ability to undertake a constructive performance evaluation involving joint
assessment of past performance, agreement on future expectations are managerial
and supervisory competencies. The skills would consist of ability to develop
parameters of evaluation, benchmarking and face to face confrontation with the
employees being evaluated without any bias and hesitation.
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9. Advising and Disciplining
The ability to advice and counsel as well impose discipline in a positive manner
are competencies required of managerial and supervisory positions that handle
large number of employees. This is to restore, within the acceptable range of
standards, the employees' performance while maintaining respect and trust. It also
involves the ability to impose penalties and sanctions with firmness and resolve in
appropriate cases.
10. Problem Identification and Solution
Problem identification and arriving at solutions cut across organizational functions
and job positions. It is about the ability to identify barriers that prevent achieving
goals and standards. It also involves the application of systematic sets of
procedures to eliminate and reduce the problem origins and causes. It requires
skills like distinguishing between problems, symptoms and indicators, inputs and
outcomes, gathering and assessing evidence relating to causes, and plotting a
decision matrix and eventually choosing and recommending the best options. This
competency should be required to positions that engage in evaluation, whether in
managerial, supervisory, or technical job levels.
11. Assessing Risks and Decision-Making
Assessing risks and decision-making are competencies required of higher
managerial positions where decision-making can involve commitment of company
resources and processes that could have company-wide implications. Like problem
identification and solution competencies, assessing risks and decision-making
involve the ability to construct a decision matrix that aids to identify and evaluate
alternatives and options, identify limits, desirables, and risks to be considered,
assign weights to each option and choose the best option to achieve the desired
goals and standards.
12. Thinking Clearly and Analytically
The ability to apply clear and logical thinking is a competency required for both
supervisory and managerial positions. The competencies include skills as
determining valid premises arriving at logical conclusions from them, separating
fact from hearsay, unwarranted assumption and false inferences, applying
inductive and deductive logic appropriately, culling of logical fallacies, invalid
premises and conclusions based on insufficient information.
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COMPONENTS OF COMPENTENCT:
This paper focus on competency marketing. Competency mapping is an process an
individual uses to identify and describe competencies that are the most critical to
success in a work situation or work role. This paper deals with component of
competency, competency model, mapping process and benefits of using
competency.
INTRODUCTION
Competency Mapping is processes of identifying key competencies for an
organization and/or a job and incorporating those competencies throughout the
various processes (i.e. job evaluation, training, recruitment) of the organization. It
generally examines two areas: emotional intelligence or emotional quotient (EQ),
and strengths of the individual in areas like team structure, leadership, and
decision-making. Large organizations frequently employ some form of
competency mapping to understand how to most effectively employ the
competencies of strengths of workers. . Competency mapping can also be done for
contract or freelance workers, or for those seeking employment to emphasize the
specific skills which would make them valuable to a potential employer. These
kinds of skills can be determined, when one is ready to do the work.
DEFINITION:
According to Boyatzis(1982) "A capacity that exists in a person that leads to
behavior that meets the job demands within parameters of organizational
environment, and that, in turn brings about desired results"
COMPONENTS OF COMPETENCY
There are four major components of competency:
1.SKILL: capabilities acquired through practice. It can be a financial skill such as
budgeting, or a verbal skill such as making a presentation.
2.KNOWLEDGE: understanding acquired through learning. This refers to a body
of information relevant to job performance. It is what people have to know to be
able to perform a job, such as knowledge of policies and procedures for a
recruitment process.
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3.PERSONAL ATTRIBUTES: inherent characteristics which are brought to the
job, representing the essential foundation upon which knowledge and skill can be
developed.
4.BEHAVIOR: The observable demonstration of some competency, skill,
knowledge and personal attributes. It is an essentially definitive expression of a
competency in that it is a set of action that, presumably, can be observed, taught,
learned, and measured.
COMPETENCY MODEL:
Competency model is a set of competencies that include the key behaviors required
for excellent performance in a particular role.
DESIGN DECISION
In term of grand design, competency model should be guided by firm's strategy
which is shaped by four factors: vision & mission, stakeholder requirements,
market realities and core capabilities of the firm.
In a more technical design, competency model development should be determined
in the process of design decision. In this stage, one should discuss the design of the
model with clients, based on their specific needs and expected outcomes of the
competency model.
The following are some factors that need to be considered in deciding the design of
the competency model.
1. CONTEXT:
Competencies are actually context bound. They answer the question What does a
superior performer look like in a specific setting?' In other words, effective
competencies are linked to a particular organizational target or goal. Therefore,
depending on the context, the design of models may be geared toward:
The total organization (e.g., core competencies or values)
An entire function (e.g., finance, human resources)
A specific role (e.g., HR generalist)
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A specific job (e.g., compensation analyst)
2. LEVEL OF ORIENTATION:
This factor deals with the level of orientation of the model: will the model reflect
future or current job requirements. The degree of future orientation depends on
how the organization plans to apply the model and the pace and nature of changes
occurring within the organization. If an organization decides that their model will
be based on future requirements, they might use future performance needs (i.e.,
benchmark data; best practices) to create competencies.
3. LEVEL OF COMPLEXITY:
Two other critical factors should be considered in developing competencies the
length of models and the degree of complexity and detail described in behavioral
indicators. Frequently, competency initiatives fail because models are too long and
too detailed or because organizations spend too much time and too many resources
researching and editing behaviors. Consequently, organizations fail to provide a
simple framework to users in a timely manner. Models that work best follow the
80-20 rule. They provide the 20% of behaviors that drive 80% of excellent
performance
4. THE MODEL SHOULD BE LINKED TO STRATEGY:
Effective competency models support and contribute to the company's and the
function's strategy and goals. For instance, if a goal of the company is to transcend
functional barriers, the model needs to describe the behaviors that demonstrate that
competency. Likewise, if a goal is ensuring that all employees communicate and
work together effectively, the model should describe the behaviors that
demonstrate that competency.
5. THE MODEL SHOULD BE COMPANY SPECIFIC:
Unlike many job descriptions, competency models are not easily transferable
among companies. Competencies needed for a company are determined by the
company's unique characteristics, such as culture, strategy, size, and industry. This
is true even of the competencies needed for a position common to many
companies, such as the job of a financial analyst. The competencies required of a

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financial analyst at an automobile manufacturer are vastly different from those
required of a financial analyst at a health care company, for instance.
6. THE DEVELOPED MODEL SHOULD BE FLEXIBLE:
A good competency model functions as a performance management tool. It
provides enough detail to distinguish between employees who are operating at
different levels of proficiency. It also helps a company articulate why an employee
is at the current level and the competencies needed to advance.
7. THE MODEL SHOULD BE FUTURE-ORIENTED:
Competency models with a forward-looking perspective stimulate organizational
change. Rather than defining competencies in the context of "tasks," or how a job
has traditionally been carried out, useful competencies articulate how the job is
evolving and will best be performed in the future. Not only does this approach
increase a model's shelf life, it ensures that employees have enough time to
understand what the required competencies are and to develop them.

MAPPING PROCESS:
There are about five stages while performing competency mapping. The following
are the five stages discussed in detail.
FIRST STAGE:
The first stage of mapping requires understanding the vision and mission of the
organization.
SECOND STAGE:
Second stage requires understanding from the superior performers the behavioral
as well as the functional aspects required to perform job effectively.

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THIRD STAGE:
Third stage involves thorough study of the BEI Reports/ Structured Interview
Reports.
Identification of the competency based on competency frame work.
Measurement of competency.
Required levels of competency for each job family.
Development of dictionary which involves detail description of the competency
based on the indicators.
Care should be taken that the indicators should be measurable and gives objective
judgment.
FOURTH STAGE:
a.

This stage requires preparation for assessment.

b.
Methods of assessment can be either through assessment centers or 360
Degree Feedback
c.
If assessment centre is the choice for assessment then tools has to be
ready beforehand
i.
ii.

Tools should objectively measure the entire competency required.

Determine the type of the tools for measuring competency

ii.

Prepare the schedule for assessment

iv.
Training to the assessor should indicate their thorough understanding of the
competencies and the tools and also as to how the behavior has to be documented.
FIFTH STAGE:
This stage involves conducting assessment centre. Usually it is a two day program
which would involve giving a brief feedback to the participant about the
competencies that has been assessed and where they stand to.
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SIXTH STAGE:
Sixth stage involves detailed report of the competencies assessed and also the
development plan for the developmental areas.

BENEFITS OF USING COMPETENCY MODEL

There are some useful benefits of using competency model for the company,
managers, and employees as well.
FOR THE COMPANY
Reinforce corporate strategy, culture, and vision.
Establish expectations for performance excellence, resulting in a systematic
approach to professional development, improved job satisfaction, and better
employee retention.
Increase the effectiveness of training and professional development programs by
linking them to the success criteria (i.e., behavioral standards of excellence).
Provide a common framework and language for discussing how to implement and
communicate key strategies.
Provide a common understanding of the scope and requirements of a specific role.
Provide common, organization-wide standards for career levels that enable
employees to move across business boundaries.
FOR MANAGERS:
Identify performance criteria to improve the accuracy and ease of the hiring and
selection process.
Provide more objective performance standards.
Clarify standards of excellence for easier communication of performance
expectations to direct reports.

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Provide a clear foundation for dialogue to occur between the manager and
employee about performance, development, and career-related issues.
FOR EMPLOYEES:
Identify the success criteria (i.e., behavioral standards of performance excellence)
required to be successful in their role.
Support a more specific and objective assessment of their strengths and specify
targeted areas for professional development.
Provide development tools and methods for enhancing their skills.
Provide the basis for a more objective dialogue with their manager or team about
performance, development, and career related issues.
ICEBERG MODEL OF COMEPNTENCY:
The iceberg model for competencies takes the help of an iceberg to explain the
concept of competency. An iceberg which has just one-ninth of its volume above
water and the rest remains beneath the surface in the sea. Similarly, a competency
has some components which are visible like knowledge and skills but other
behavioral components like attitude, traits, thinking styles, self-image,
organizational fit etc are hidden or beneath the surface.

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Ice-Berg Model
The pictorial representation of the model is as below:

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Let us take a look at the different components of the model:

So, is there a relation between the competencies which are above the surface and
those which lie beneath? In the book Competence at Work Models for Superior
Performance, the authors Lyle M. Spencer and Signe M. Spencer explain that a
behavior is incompletely defined without intent.
The aspects of competencies which lie below the surface like attitude, traits,
thinking styles etc directly influence the usage of knowledge and skills to complete
a job effectively.

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Let us try to understand it through an example. Suppose an organization is
promoting an open door policy which literally means that a manager or supervisor
would keep the doors of his/her chamber open to become accessible to their
subordinates and encourage sharing of opinions and feedback. A manager sitting at
the farthest corner of the office keeps his door open all the time, how does one
evaluate whether it is for fresh air, claustrophobia or an indication that his
subordinates are invited to reach out to him anytime. Therefore, intent behind a
displayed action is necessary to understand the action and its implication fully.
In more complex jobs, these behavioral aspects, motives and traits become more
important than the skills and knowledge required to do the job. Think of a soldier
at the war front, he knows how to use the weapon he is holding, but thinks that the
war is unjust and refuses to fire. In organizations, senior level hiring is therefore a
time consuming and elaborate affair as it becomes necessary to establish the
alignment between the organizational and individual motivation and aspirations.
Developing the two levels of competencies also takes different routes. The visible
competencies like knowledge and skills can be easily developed through training
and skill building exercises however the behavioral competencies are rather
difficult to assess and develop. It takes more time and effort intensive exercises,
like psychotherapy, counseling, coaching and mentoring, developmental
experiences etc.
In the traditional method of hiring, most of the organizations looked at just the
visible components of competencies; the knowledge and skills, believing that the
behavioral aspects can be developed through proper guidance and good
management. However, with major shifts in the conventional methods of people
management, the hiring process has also undergone a change therefore a lot of
emphasis is being put on the hidden behavioral aspects as well to make a sound
decision. Hence, a complete picture regarding the competence of a person consists
of both visible and hidden aspects and it becomes necessary to understand both to
arrive at identifying the best man for a job.

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