Question

Answer the following questions. Each answer should not exceed one typed page.

Q1. A. Do you think performance appraisals should be done? Do you think forced ranking is a good performance management system? Why or why not?

Q2. ​How important is it that the effectiveness of a training program be measured in dollar terms? Why is it important to measure training effectiveness in the first place?

Answer 1

Q1

Performance appraisals should be done only if they are done to actually provide value to the organisation and employees , and not just done for the sake of doing it or because its a common practice.

One can expect the following positive reasons for conducting the performance appraisal exercise-

It helps the employees to get the feedback from their boss and if its good it helps a lot in morale boasting, if the feedback is negative, it helps the employee understand the expectations of the employer and the area of improvements.

By this, process both employee and employer/ manager will know that they are on the same page or not.

Thus, the process also helps in planning and stratagising organisational goals, and identifying the strengths and weakness and how to overcome it.

However, forced ranking is not a good performance management system.

Each human being is different and the circumstances of each person are different. Simply putting a number on performance creates negative impact on the morale of employees. For example, during the current period, Mrs. A lost her husband and hence, she is going through a hard time, while Mr. B just had a baby and hence, he is very happy in his personal life. And each employee will have different circumstances going on in their lives, if the base is not even, how can we compare the figures? Applying the same logic here, it is not good to measure performance by ranks.

Q2

For any organisation, it is very important to determine the effectiveness of training, because the organisation has invested a lot of its money i.e. incurred costs for conducting training and time i.e. employees who are trained could have spent the same time doing other work and thereby has also incurred Opportunity Cost.

And therefore, there must be some benefits after the training program, otherwise all the cost and time will be a waste. Hence, its iportant to measure the effectiveness,

Now, if the organisation has invested so much money and time, it is very essential for them to get returns in terms of money as well. Money comes by business, so if the employee uses the skills learned from training program to put to use in business operations or if the employee is motivated and positive toward work by the training or in any other form helps in improving the business and work, then the training is said to be effective.