November 8, 2021

PERFORMANCE APPRAISAL Meaning: Employee performance refers to the contribution which employees make towards achievement of organization goals. Performance appraisal measures how well employees have carried out their responsibility. This is therefore the process of evaluating employees’ performance against standards / objectives / job requirements There are 2 main categories of PA 1) Informal appraisal – This is the continuous assessment of individual performance by the manager / supervisor in the normal course of his work. It’s the byproduct of the day to day relationship between the managers and subordinates. 2) Formal appraisal – This is a more rational and orderly assessment of individual performance. The appraisal is carried out in a more systematic and planned manner using well designed appraisal forms and interviews. Objectives of performance appraisal 1) To evaluate subordinates performance i.e. understand the weaknesses and strengths of employees 2) To identify progress and possible opportunities related to the job 3) To provide feedback on job performance to the employees. 4) To provide a rational basis for reviewing salary and rewarding employees in relation to the contributions towards the organization’s goals. 5) To identify potential performance and possibility for promotions or transfers 6) To identify training and development needs required to improve job performance 7) To motivate employees 8) To provide information on succession planning 9) To enable coaching and counseling of employees Performance appraisal process A systematic Performance appraisal involves the following steps 1) Completion of appraisal forms 2) Conducting appraisal interview. 3) Action agreement e.g. training and development to improve job performance job enrichment for job enlargement plan. Performance rating The purpose of rating is to sum up the job holders performance level A – Outstanding performance in all respects B – Superior performance i.e. performance significantly above the job requirements C – Average – performance fully meets expectations of job requirements D – Below average – performance not fully up to expectations E – Poor – performance below expectations in most respects ISSUES COVERED IN PERFORMANCE APPRAISAL 1. Quantity of work 2. Cost effectiveness/efficiency 3. Quality of work 4. Timeliness/punctuality 5. Cooperation 6. Need for supervision 7. Initiative 8. Application of training knowledge APPRAISAL TECHNIQUES 1. Overall assessment/ narrative essay In this technique the appraiser writes in a narrative form from his judgment about the appraisee under headings. This is a very subjective technique. 2. Guided assessment This is where the appraisal form is designed in such a way that guiding questions are structured and the appraiser is only supposed to indicate: Yes, No or Not applicable. 3. Grading This is where the required characteristics are converted into a scale A Excellent B Good C Satisfactory D Unsatisfactory E Poor/Pathetic 4. Behavioural incidence/Critical incidence A list of most effective behaviours is prepared and the individual’s behaviour is measured against this behaviour. 5. Self appraisal This is where the appraisee evaluates himself i.e. he carries out his own assessment. 6. 3600 appraisal This is done by obtaining feedback from all the persons the worker interacts with i.e. His seniors, subordinates, colleagues, customers, suppliers e.t.c 7. Results oriented techniques This technique involves measuring the performance of the worker against specific targets agreed between the managers and the workers. 8. Upward appraisal The subordinates evaluates the managers

EMPLOYEE COMPENSATION Wage and salary administration involves the direction of programs designed to implement payment of monetary or non monetary rewards. The primary financial reward is pay in the form of wages and salaries sometimes referred to as remuneration. Other forms of compensation involve supplementary payment referred to as fringe benefits. Objectives of compensation Wage and salary administration involves the direction of programs designed to implement payment of monetary or non monetary rewards. The primary financial reward is pay in the form of wages and salaries sometimes referred to as remuneration. Other forms of compensation involve supplementary payment referred to as fringe benefits. Objectives of compensation Group compensation schemes: Include; a) Group piece rates – this refers to compensation to all members of the group e.g. where efforts of a single individual cannot be separated from the group e.g. in a motor vehicle assembly operation b) Employee profit sharing – under this scheme a cash bonus or contribution to a trust fund may be made by the employer on the employees behalf c) Employee share ownership – in this type of compensation plan the management may allow employees to participate in share ownership at reduced rates e.g. 30% less than market rate. 3). Supplementary pay This type of compensation is also known as fringe benefits i.e. a reward to an employee in addition to basic wages or salary. It is usually provided at the expense of the employer e.g. goods or services which the employee would otherwise have to pay by himself. Types of fringe benefits provided by various organizations 1) Pension scheme to be given on retirement or gratuity paid at the expiry of a contract 2) Medical scheme e.g. group medical cover or medical allowance to employees 3) Housing scheme e.g. house rental allowance or house purchase allowance 4) Insurance scheme e.g. life insurance benefits to employees 5) Car loans or use of the company car 6) Subsidized meals at the place of work 7) Company’s goods at discounted rates. 8) Company’s transport services to employees or transport allowance. 9) Entertainment allowance given to senior managers Characteristics of fringe benefits 1) They are not directly related to merit but they often improve with status and length of service 2) They do not necessarily benefit all employees e.g. a person who enjoys good health or does not need a company’s products 3) They are not universal. Large companies usually have a wide range of benefits while small companies tend to have very few or none at all 4) Once established they are difficult to abolish and become accepted by employees as a normal condition of service other than benefits 5) There is no evidence that candidates are attracted to an organization by fringe benefits but it is possible that fringe benefits discourage employees from leaving 6) They probably increase job satisfaction but will certainly bring dissatisfaction if they are inconsistently or carelessly administered thereby giving rise to accusations of biasness

TRAINING AND DEVELOPMENT Training can defined as a short term and systematic process by which skills and capabilities of non managerial employees are improved through organized procedures so as to enable them to be more productive on their jobs. Thus training is job centred or task oriented and is concerned with imparting specific skills to subordinate staff. Managerial / executive development – The term development is used with reference to ‘training’ given to managers and executives in an organization. Thus management or executive development is a long term educational growth process by which managerial staff gain and learn conceptual knowledge for general managerial and administrative purposes. PURPOSE OF TRAINING AND DEVELOPMENT 1. To raise the competence and skill level of workers to enhance increased productivity and efficiency. 2. Training and development helps to develop the abilities of individuals to satisfy current and future manpower needs of the organization. 3. Training motivates employees and improves their potential. Distinction between training and development These terms can be distinguished on the basis of the following; a) What is learned b) Who is learning c) Why such learning takes place d) When learning occurs SPECIFIC BENEFITS OF TRAINING AND DEVELOPMENT TO THE ORGANISATION. 1. Increased productivity and efficiency 2. Better customer service 3. Less wastage of resources and therefore reduction in cost due to minimization of errors. 4. Increased creativity and innovation 5. Speeds up the learning curve effects 6. Training can be used to introduce change thereby minimizing resistance to change. 7. Improves the corporate image of the organization when the staff is well trained. 8. It creates flexibility in the workers such that they can multi task. 9. Reduces the chances of work related accidents 10. The organization obtains trained personnel. BENEFITS OF TRAINING TO THE INDIVIDUAL EMPLOYEES 1. It facilitates growth in the career of an individual. 2. An individual becomes more marketable. 3. It enlarges an individual’s portfolio of skill 4. It has a social benefit i.e. it helps to raise the living standards of the citizens when they apply the skills gained. 5. It has a positive psychological impact on the individuals. 6. The acquired skills can be used in the future. 7. One becomes more confident in their work. PLANNED TRAINING (TRAINING PROCESS) 1. Identify the training need. 2. Define the training required. 3. Plan the training programme. 4. Implement the programme 5. Evaluate the performance 1. Identifying the training need: A training need is a gap between the knowledge and skills required for the performance of a specific job and the knowledge and skills already possessed by the employees. It is a gap between what is and what should be. Other indicators of training need a) Change or advancement in technology b) Changes in legislation affecting business operations. c) Qualitative factors such as indiscipline, grievances and conflict. d) Changes in the market e.g. a change in consumers’ tastes and preferences or an increase in competition. e) Increase in labour turnover 2. Define the training required This involves setting objectives that will be attained through the training. The objectives will help to define the requirements. 3. Plan the training programme This is a concrete scheme of actions designed to ensure that the training objectives are achieved. The programme must be developed to meet the needs and objectives by using the right trainer, methods and facilities. Plans must be made for the following:- i. Trainer/facilitator ii. Location where the training will take place iii. Methods or techniques of training iv. Facilities that will be needed v. Allocation of responsibilities 4. Implement the training programme This is putting the programme into action 5. Evaluate and amend the training if necessary Evaluation is a monitoring process which is meant to ensure that the training objectives are achieved. Evaluation can be done during or after the training programme. LEVELS OF EVALUATION 1. Reaction of the trainees 2. Learning and skills acquired – post training test. 3. Change in behaviour 4. Impact on the organization 5. Impact on the relationship with the various stakeholders NB: If the training objectives were not achieved the training programme is amended and extended. Objectives of training and development Training objectives i. To improve the technical capacity of an individual so as to improve job performance ii. To improve health and safety of employees hence prevention of work related accidents. iii. To reduce spoilt work hence less scrap or material wastage. This helps to reduce the cost of production and operations. iv. To prepare personnel for future job challenges and promotion. v. To enable employees adapt to a change in the work methods or procedures vi. To enable employees learn the method of operating a new machine or equipment e.g. computers installed in the organization vii. A change in production or the services offered the organization may necessitate training not only in production methods but also in the marketing of the company’s goods Management development objectives i. To prepare managers to cope with increased challenges of modern business especially competition and fast changing technology ii. To improve managers performance in their present jobs iii. To prepare managers for higher managerial positions i.e. succession planning. iv. To build a steady source of supply of qualified and competent persons at all managerial levels i.e. to create a reserve of managers. v. To compensate on managers’ lack of previous experience or training vi. To prevent manager obsolescence. Methods of management development There are 2 broad methods or approaches of developing managers. i.e. External approaches and internal approaches External approaches to management development Managers may be sponsored to attend the following development programmes: i. University sponsored programmes e.g. MBA ii. Trade and professional associations training programmes e.g. programmes sponsored by Institute of Bankers or ICPAK iii. Consulting firms training programmes e.g. seminars, workshops or short term courses iv. Government sponsored training programmes e.g. programmes offered by KIA, Government Training Institute (GTI) v. Secondment to other firms in similar industries i.e. exchange development programmes between managers of the same industry Internal approaches

THE PROCESSS OF HUMAN RESOURSE MANAGEMENT HUMAN RESOURCE PLANNING This is an accurate determination of the present and future needs of manpower in terms of skills, knowledge, competences, numbers and attitudes and formulating strategies to ensure that the human resource objectives are met. STEPS IN HR PLANNING 1. Analyze the existing human resource situation. 2. Demand forecasting – This involves estimating the present and future human resource requirements. 3. Supply forecasting. Involves estimating the number of people likely to be available internally and externally. 4. Matching the demand with supply and developing appropriate strategies. dd = ss – Maintain and retain strategies e.g. motivate the existing employees dd >ss – Recruit new employees, outsource, pay the current workers overtime, training, hiring in house/temporary staff etc. dd<ss Fire Retrench Deploy 2 Recruitment Recruitment; is a major staffing / procurement process. It deals with providing human input to the organization. It makes it possible for the organization to acquire the number and type of people necessary to ensure the continued operation of the organization. Recruitment can therefore be defined as the process of attracting potential job candidates to apply for vacant positions in the organization. When conducting the recruitment, the management needs to produce the following two documents: a) Job Description: This summarizes the duties and activities involved in the job together with the relevant factors in the social and physical environment affecting the job. Contents of a job description i. Job title ii. Purpose of the job iii. Position in the organization – Who reports to the job holder and whom the job holder reports to. iv. Duties – specific tasks to be performed by the job holder v. Responsibilities – the obligations of the job holder vi. Physical conditions affecting the job e.g. overtime, dangerous working conditions, excessive traveling etc. vii. Social conditions i.e. the type of people that the job holder will be dealing with viii. Key difficulties of the position. Uses of a job description i. To provide hiring specifications ii. To evaluate the performance of the employees iii. Defining authority iv. Used in job grading and classification v. Used for transfers and promotion b) Person specification: This is a statement of minimum requirements expected of a job holder to be able to perform the job satisfactorily. It is an interpretation of the kind of a person most suitable for the job in terms of professional qualifications, academic attainment, vocational training and experience, age, physical characteristics and disposition/personality.

HUMAN RESOURCE MANAGEMENT / STAFFING FUNCTION The management function of staffing is defined as filling and keeping filled all the positions in the organizational structure. This is done by identifying the workforce requirements, making an inventory of the people available and recruiting, selecting, placing, training and developing, promoting, appraising and compensating the job holders so that they can accomplish their tasks efficiently. Staffing is therefore the process which starts with identification of HR needs (HR planning), recruiting new employees into the organization and continues through separation of employees from the organization. AIMS OF HUMAN RESOURCE MANAGEMENT 1. To enable the organization obtain and retain skilled, committed and a well motivated workforce. 2. To enhance and develop the inherent capabilities of people. 3. To create a climate in which productive and harmonious relationships can be maintained. 4. To ensure that people are valued and are rewarded for what they do and achieve. DISTINCTION BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT 1. Personnel management is the traditional term used to describe the staffing function while Human resource management is the modern term. 2. Human resource management recognizes that human resource factor is unique and should be treated as so different from other resources while personnel management views a person as a tool or equipment which can be purchased, used and disposed. 3. Human resource management involves management of skills, knowledge, abilities and talents. Personnel management involves just the management of people. Human resource management is career centered while personnel management is work force centered. 4. Human resource management views employees as profit centers and hence sees the need to invest in them. Personnel management views employees as a cost center, hence does everything possible to minimize that cost. 5. Human resource management utilizes employees for the mutual benefit of the firm as well as that of that the employees. Personnel management uses employees only for the organization’s benefit i.e. exploits them. Reasons why the human resource is unique: a) Human beings are different in terms of their temperament and socialization hence there has to be diversity in management. b) Personal dignity is very important c) A person’s performance is influenced by other factors outside the workplace.