N5 Entrepreneurship


Training and development programmes Decision-making skills


• case studies • in basket exercises


Interpersonal skills


• role play • sensitivity training


Job knowledge


• in-service experience • coaching • understudy


Organisation knowledge


• job rotation • multiple management


Specific individual needs


• special courses • special meetings


General knowledge


• special projects


3.3 Performance appraisals


Performance appraisal is used to determine the degree to which an employee carries out his or her work effectively. It is an essential activity in any business, because you, as manager, have to know whether your workers do their job properly, or not. This process has a definite influence on the employee’s future in the business and therefore it should be fair and accurate and the correct performance results must be used. In a small business the manager has this responsibility.


The main objectives of performance appraisal in a business are: • it gives you the opportunity to identify people with management potential in your business. • you can identify areas where specific training is needed. • it will highlight problem areas in your business. • it determines the abilities and skills of people. • it gives you the opportunity to reward top achievers. • it encourages workers to perform. • it gives employees the opportunity to indicate their career ambitions in the business.


Performance appraisal techniques There are different techniques that can be used in the performance appraisal process.


1. Individual appraisal techniques • Graphic rating scale – the most commonly used method consists of a list of characteristics according to which the evaluator must rate employees.


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