Question

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. Yes, performance appraisals should be done. most importantly because these make people feel valued. It helps in setting new goals for people that are achievable which helps motivates the employees. It strengthens the bond between the teams when they work together to achieve the same goal.

Forced ranking involves ranking employees against each other instead of some fixed standards. In my opinion, it is a poor performance management system. There are many reasons for this. Firstly, it demotivate employees who are ranked lower than other employees. It can create separation between the co workers. It decreases the morale of the employees which in turn affects productivity of the business.

Q2. We can measure the effectiveness of the training both in monetary and non monetary terms. But they are often measured in terms of cost. Training program can have many costs like cost of materials or cost of trainer. Also, the opportunity cost of the employees' time that could have been used in production either. Now the training program can be measured on non monetary basis also, like on the basis of efficiency. But the business is all about survival and profits and monetary measurement helps the business do the cost benefit analysis.

Now, training effectiveness itself is important to measure because it involves a lot of cost and also, if the employees are not properly trained according to the requirements of the business, itd be a loss for the business reputation. So if you are involving training costs, measuring the effectiveness becomes the important thing to do to see if the results are what they were expected to be.