ADL 32 Performance Appraisal & Potential Evaluation
Assignment – A
Question 1. “360 degree appraisal method has its own short-comings”. Discuss. Also point out the merits of this method.
360 Degrees Performance Appraisal: A 360 degree performance appraisal system is a method used to assess the job performance of employees and managers in an organization on the basis of classified feedback received from individuals who work alongside them. This invariably entails receiving confidential feedback primarily from six distinct people in the workplace. Even the employee’s or manager’s self-ratings are taken into consideration.
The 360 degree performance appraisal or evaluation process is considered extremely reliable and consistent as assessment is carried out on a pervasive basis by different groups or parties. The parties involved in the appraisal are regarded as dependable as they’re always interrelating and working in close co-operation with the employees whose performances are under the scanner. This technique is basically used to appraise employees though managers’ performances are sometimes evaluated as well.
Advantages of 360 degree appraisal:
- Offer a more comprehensive view towards the performance of employees.
- Improve credibility of performance appraisal.
- Such colleague’s feedback will help strengthen self-development.
- Increases responsibilities of employees to their customers.
- The mix of ideas can give a more accurate assessment.
- Opinions gathered from lots of staff are sure to be more persuasive.
- Not only manager should make assessments on its staff performance but other colleagues should do, too.
- People who undervalue themselves are often motivated by feedback from others.
- If more staff takes part in the process of performance appraisal, the organizational culture of the company will become more honest.
Disadvantages of 360 degree appraisal:
- Taking a lot of time, and being complex in administration
- Extension of exchange feedback can cause troubles and tensions to several staff.
- There is requirement for training and important effort in order to achieve efficient working.
- It will be very hard to figure out the results.
- Feedback can be useless if it is not carefully and smoothly dealt.
- Can impose an environment of suspicion if the information is not openly and honestly managed.
Question 2. Enlist the modern methods of performance appraisal. Which of these do you prefer the most and why? Give reasons.
The best performance reviews let managers and employees communicate -- share ideas, opinions, and information. Unfortunately, most traditional reviews put managers into the position of uncomfortable judges, ostensibly telling employees how their work either fit the bill -- or didn´t. Possibly because of this, most traditional reviews are no better than the manager´s off-the-cuff judgements, and some may be illegal.
Because of these problems, new types of reviews are coming into play. Most require that evaluations be done not for raises, promotions, or bonuses, but for growth, development, and communication. The most important aspect in every case is communication between the employee and other people, instead of one-way communication, for higher performance.
- Assessment centre method:
- This method was used for the first time in 1930 by the German army and then in 1960’s by the British army. This method tests a candidate in different social situations using a number of assessor and procedures.
- The performance of an employee an also his potential for a new job is evaluated in this method by assessing his performance on job related simulations. Characteristics that the concerned managers feel are important for the success of a particular job are included in these simulations.
- Techniques like business games role playing and in basket exercises are used in this method. The employees are evaluated individually as well as collectively on job related characteristics. Personal interview and projective tests help in assessing the motivation, career orientation and dependence on others of an employee.
- To measure the intellectual capacity written tests are used. The evaluators in this method consist of experienced manager working at different levels who prepare a summary report for the management as well as for the employees.
- This technique usually measures the planning ability interpersonal skills and organizational skills of an employee.
- Human Resource Accounting Method:
- Human resources are a valuable asset for any organization and it can be valued in monetary terms. This method evaluates the performance of an employee in terms of costs and contributions.
- HR costs include expenses incurred on HR planning recruitment selection induction and training.
- The difference between this costs and the contribution by an employee reflects the performance of that employee. This method is still developing hence is not very popular at present.
- Behaviorally anchored rating scale (BARS):
This method combines the graphic rating scale and the critical incident method. It determines in advance the critical areas of the performance and the most effective behavior to achieve the results. Then the actual job behavior of an employee is evaluated against the predetermined behavior.
- Supervisor and other persons well acquainted with a job are asked to describe specific critical incidence of effective performance behavior
- Then these persons categorized the incidents into sets of performance dimensions and each set is then defined.
- These people then reallocate the original critical incidents. They are given the cluster definition and critical incidents and are asked to re-design each incident to the dimensions that describes it the best. A critical incidents is retain only a some percentage that is usually between 50 – 80 percent of this group assigns the incidents to the same cluster as was done by the earlier group.
4. The second group then rates each incident on a 7 – 9 point scale where the rating is done on the basis of how well the behavior described in the incidents represented the performance on the appropriate dimensions.
- A sub set of incidents is used as behavior anchors for the performance dimensions.
4 Appraisal through management by objectives (MBO):
- This concept was introduced by Peter Drucker in 1954 who named it management by objectives and self-control. It is an effective way it is also known as goal setting approach to appraisal.
- In this process the supervisor and subordinate members jointly identify the common goals of the organization and set the areas of the responsibility of each individual in terms of results expected from that person. These measures are use for operating the unit as well as for appraising the performance of the employees.
5 The 360 degree appraisal:
- The 360 degree method of performance appraisal is used to make the appraisal process more transparent, objective and participative. It introduced the concepts of self-appraisal subordinate’s appraisal, peer appraisal and appraisal by customers.
- It is called a 360 degree method because it involves the evaluation of an employee by persons above him, below him and alongside him. Structured questionnaires are used to collect information from the seniors, subordinates and peers.
- The employee to be evaluated thus acquires a central position and everyone around him participates in the appraisal process in the 360 degree method.
- 360 degree feedback is the most comprehensive and costly type of appraisal. It includes self-ratings, peer review, and upward assessments; feedback is sought from everyone.
- It gives people a chance to know how they are seen by others; to see their skills and style; and may improve communications between people.
- 360 degree feedback helps by bringing out every aspect of an employee´s life. Cooperation with people outside their department, helpfulness towards customers and vendors, etc. may not be rewarded by other types of appraisal. This system also helps those who have conflicts with their manager.
- 360 degree feedback generally has high employee involvement and credibility; may have the strongest impact on behavior and performance; and may greatly increase communication and shared goals. It provides people with a good all-around perspective.
- The Bellcore rep noted that, for success, expectations must be communicated clearly; employees must be involved early; resources must be dedicated to the process, including top management´s time; confidentiality must be assured; and the organization, especially top management, must be committed to the program.
- This systemrequires a third party, such as a consultant, to begin the process, which may take months to start up.
- 360 degree feedback may be given directly to the employees, who have the option of discussing them with their managers; or it may be given to the managers for use in a feedback meeting. Whichever method is chosen, training for the managers and ratees is necessary.
- As with upward assessments, once the assessment is completed, participants should be guided through their data — ideally, making their own interpretations of it so they have ownership of their conclusions. The consultant should be present to help correct misunderstandings, focus attention on action and interpretation rather than blame and diversion, and to then guide the conversation to action steps. These should be in some way observable or concrete and have definite milestones and deadline dates, which are followed through by the manager or supervisor.
- The manager or supervisor’s role can vary. In general it is best of sharing of the actual numerical results is left to the person being “rated,” with the manager or supervisor receiving a brief summary from the consultant to aid in following through with action plans. The action plan itself should be shared with the manager or supervisor, who should take on the follow-through process, scheduling meetings over the upcoming months to review progress.
Question 3. Discuss, in brief, the role of coaching and counseling in improving performance of employees.
Role of coaching and counseling
Managers want better performance from employees, and employees want better feedback from managers. When managers know more about employees´ performance motivations, they are better able to link employees to appropriate tasks, projects, products - and help the organization achieve its goals.
Participants evaluate potential employee issues, develop effective problem statements, role play, and consider the performance appraisal process. Topics include motivation, coaching types and strategies, managing relationships, overcoming uncertainty when doing corrective counseling, and how achievement and recognition together can create a positive environment and productive results.
Coaching is a regular session in which an experienced employee, usually a manager, help individuals discover and leverage their strengths, recognize obstacles to success, and identify a course of action to help them maximize performance.
Counseling on the other hand, arise when managers listen to grievances, handle disputes, deal with employees accused of improper behavior, or assist people undergoing excessive work-related stress.
It is not unusual for people in the workplace to misconceive that coaching and counseling belong mainly to the school setting. Therefore, it is not surprising for job mentoring and guidance to be neglected in the workplace, despite their potential of enhancing individual and group performance.
Many organizations may however not know how much they are missing by neglecting to emphasize and systematize coaching and counseling. For example, the orientation of new employees must not be taken for granted. This employee is left alone to just discover by himself what his responsibilities are, what others are doing or how jobs are interconnected. The education will take a long time, and the employee may even get the wrong information and impressions.
Counseling is more neglected aspect because most people are afraid to handle personal or even job related problems. As a result, employees become less productive due to unresolved personal and job related interpersonal problems.
Usually human resource department handles counseling. However, HR people do not have the time or expertise to handle counseling. Managers should ideally be responsible for the counseling of their subordinates.
Coaching and counseling can transform low performance to excellent. However, management has to make it a company policy that all the managers will be responsible for the coaching and counseling of their subordinates. To make the policy effective, managers shall be trained on how to effectively coach and counsel. In this regard, it is the responsibility of the HR department to train or send them to trainers training courses.
The bigger task of the HR manager is to create an organization-wide culture that coaching and counseling in the workplace are effective tools for improving work performance.
Question 4. How can the relationship between ‘performance’ and ‘pay’ be instrumental in improving performance in an organization?
One goal of many pay plans is to improve employees´ performance. This investigation of pay policy assesses the effects on performance of base-pay levels, merit increases, and lump-sum bonuses. The study shows that both "how much" is paid (the amount of the reward) and "how" the money is paid (the relationship that exists between performance and pay) influence employees´ future performance levels. As expected, the results show that how much you pay is important. Both raises and bonuses increase future performance, but merit raises had a greater effect than that of bonuses. In this study, the benefit of a 1-percent increase in base pay was comparable to the benefit from a 3-percent bonus. Even though the absolute level of one´s salary was not related to future performance, relative pay levels made a considerable difference. Perhaps most important, the study also showed that how an employee is paid can also influence performance. For merit raises, the link between pay and performance was unrelated to future performance. However, the extent of the pay-for-performance relationship with bonuses was significantly related to future performance-provided the link between pay and performance is clearly established.
Based on these findings, pay structure can be designed to achieve greater employee performance. To begin with, simply spending more on employee pay would yield minimal results. Improving the merit-increase pool by one percentage point but otherwise not making any allocation changes, for example, would be projected to increase performance only by roughly 2 percent. However, if the same money was applied to pay-for-performance bonuses, the analysis suggests a performance increase of better than 15 percent. Indeed, the results suggest that providing a strong pay-for-performance link for bonuses rather than raises had the greatest potential benefit, predicted to improve employee performance by nearly 20 percent.
Question 5. Distinguish between ‘Performance Appraisal’ and “Potential Evaluation”. Also discuss, in brief, the methods of Potential evaluation.
Although human resources purists point out the numerous distinctions between the two, in practice, performance appraisal and evaluation are used interchangeably. Both refer to a process by which your employer reviews how well you´ve done your job and possibly determines any increases in salary or benefits you´ll receive as a result. In strict terms, however, an evaluation generally precedes an appraisal.
According the Society for Human Resource Management (SHRM), performance appraisals are the tail end of a long chain of business procedures. They start with your business´s strategic plan, which lays out goals for the company to reach through a set of strategies. These strategies are fulfilled by individual business units, which heavily determines how individual job tasks and requirements are defined. These looming goals and strategies also play a role in setting the skills and core competencies each employee must have to successfully complete her job and contribute to meet the strategic goals.
These factors, in theory, form objective measures on which to evaluate an employee´s actual performance. Performance consists of behaviors as well as results. In the end, individual components of the appraisal are weighted by a pre-determined scheme. For example, conducting work tasks might be more important than "organizational citizenship" qualities like being a team player.
An evaluation can occur outside the context of determining an annual pay increase. Ideally, informal employee evaluation is an on-going process in which an employee receives routine feedback on how he´s doing. Logistically speaking, performance appraisals and evaluations are time-consuming, costly and conducted by subjective human beings. That´s why in practice, evaluation and appraisal look alike. In an evaluation form template offered by HR World, a leading online human resources community, an evaluation measures topics such job skills, quantity and quality of work, work habits, communication, initiative, judgment and leadership. Evaluations sometimes take into account goals set between the employee and his supervisor, as well as an employee´s self-evaluation.
Talk to any group of human resources and business leaders and you´re likely to hear many opinions about the fairness, accuracy and usefulness of performance appraisals and employee evaluations. A 2010 "Wall Street Journal" article said that everyone "hates" performance appraisals and likened them to rotten milk. Among the criticisms are that they´re tied to a date on the calendar, rather than need, and that few people get to say what they really think. The process also drives home the illusion that the boss´s opinion is the key to an employee´s pay raise and career progress.
What is potential evaluation?
In consonance with the philosophy of human resource development that has replaced the erstwhile personnel management in many organizations; more emphasis has been laid on the appraisal of the employees’ potential in addition to their performance. Performance is a thing of the past, while potential includes the possible knowledge, skills, and attitudes the employee may possess for better performance. The purposes of a potential review are: 1.to inform employees of their future prospects; 2.to enable the organisation to draft a management succession programme; 3.to update training and recruitment activities; 4.to advise employees about the work to be done to enhance
their career opportunities. The following are some of the requirements and steps to be followed when introducing a potential appraisal system:
A good potential appraisal system would be based on clarity of roles and functions associated with the different roles in an organization. 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.
Besides job descriptions, it is necessary to have a detailed list of qualities required to perform each of these functions. These qualities may bebroadly 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, (d) performance appraisal records. Organizing the System: Once the functions, the qualities required to perform thesefunctions, indicators of these qualities, and mechanisms for generating theseindicators are clear, the organisation is in a sound position to establish and operate the potential appraisal system. Such establishment requires clarity inorganisational policies and systematization of its efforts.
Assignment – B
Question 1. What precautions should be taken while designing performance appraisal system so that it may serve the desired purpose? Discuss in detail.
Performance appraisal is the work managers do to arrive at comparative judgments of the performance and capabilities of people. This applies bath to appraisal of current performance and appraisal of potential for career advancement, Performance appraisal requires comparison of actual performance with standards and objectives and identification of the need for improvement; you complete the appraisal of each person’s performance separately, then meet to reconcile and arrive at understanding and acceptance of the appraisal. The information secured from appraising current performance is an important input to the appraisal of career potential.
Problems in Appraising Performance:
Your assessment of performance may be biased by your tendency to base your overall impression of an Individual on one outstanding trait. This is called the halo effect. For example, if a person is a hard and conscientious worker a characteristic which you admire, you 01ev let this outstanding trait color your impression of everything else.
Confusing the Work and the Person You don’t like to learn that you are not doing an adequate job; it makes you feel like an inadequate person. The fact, of course, is that less-than—admirable work performance does not make an individual a less-than-admirable person. Performance appraisal should focus on the work, not on the characteristics and traits of the people doing the work.
Confusing Appraisals with Other Work Performance appraisal Ii sometimes confused with performance evaluation and the related work of salary review. It is important to know the differences. Performance evaluation involves assessing performance compared to a plan for the purpose of controlling work. It is an activity of the controlling function. Salary review is the assessment of performance to determine whether the Individual deserves an increase in salary. Compensation is a segment of the activity of motivating people. Performance appraisal is concerned with helping people to become more capable individuals, not with how much those people are paid.
Performance appraisal and compensation are related, but since you cannot promise more money each time you tell people they are doing a good job, it is best to schedule salary reviews at different times of the year from performance appraisals. This does not minimize the value of performance appraisal in determining whether a person has earned a salary increase. Confusing Managers with Technical Specialists One of the persistent problem areas in any appraisal system is the tendency to evaluate managerial performance in the same way as the technical work of individual contributors. There is a significant difference. The technical specialist does work that directly yields a result. The salesman makes the sale, the pilot guides the aircraft. We can evaluate the technical work performed and the results secured by directly measuring personal activity.
Cautions in Assessing Performance:
You should be alert to two potential danger areas in assessing performance. We’ve already mentioned the attempt to add people up. There is also the reluctance to assess inadequate performance.
- You can’t add people up. Performance is not an entity. You cannot summarise it adequately with a single number, nor can you rank the effectiveness of people by ranking their appraisal scores. The objective of the appraisal process is not to arrive at numerical ratings, but rather, to use the ratings to identify the critical few performance deviations that give rise to most of the poor performance and to help people improve in these areas. Your objective is not to end up with a score or grade, but rather, with a list of significant actions that the person you are appraising is committed to undertake to improve performance. The score or grade is useful only to the extent it helps accomplish this.
- Face up to below standard performance. Often we are reluctant to rate people below standard in fear of putting them down and de-motivating them. However, behavioral research is consistent in finding that people are strongly motivated to improve when they know and agree with the objectives and standards within which they work, when these limits are firmly and fairly enforced, and when prompt and generous recognition and reward follow good performance. You are always in a stronger position when you level with people and discuss poor work frankly and openly, rather than ignoring or glossing over it.
- The Value of Self-Assessment. The most useful aid in assessing the performance of other people Is to begin with their own assessment of their work and results. Invariably you will agree with a large part of this evaluation. Some of it will be revealing to you and will give you new insights into aspects of your own responsibility. By capitalizing on the positive values of agreement and coming to focus quickly on the few areas of difference, you can devote most time and energy to careful investigation and analysis of the critical few topics that have a significant Impact on overall performance.
- The best way to encourage self-assessment is to ask the person you are appraising to complete a copy of the appraisal form at the same time as you do it and in advance of your meeting. Be sure that you agree on the standards and the measures for appraisal that are being used and that you both have copies of the same records and reports.
Question 2. “No performance appraisal method will serve the desired purpose until and unless it is followed by post-review discussion” Discuss.
Performance appraisal should be viewed as a beneficial process within the context of an effective system of personnel management. It should be accepted as a normal management responsibility to review the performance of all employees and for all managers to discuss performance with their subordinates on a regular basis.
The key elements of an effective performance appraisal system are:
- Clearly defined performance standards.
- An effective monitoring system.
- Regular discussions of performance.
- Development of appropriate action plans as a consequence of the appraisal.
No evaluation system will achieve its objective unless there is some consequence to the evaluation. It is of no value, and simply adds to the administrivia of any organization, to evaluate employee performance, record the information on a form and file it away. This is the norm in many organizations and is a waste of time. Unfortunately the participants often believe they are doing the right thing. Yes an evaluation was done on each employee - but to what end?
If an employee is rated outstanding for example, what is the consequence of that effort? Does it result in a raise, a promotion, and increased responsibilities? Also if an organization rewards high performers, an effective evaluation process is needed to differentiate those high achievers from others in a credible way.
Similarly, if an employee is rated as a marginal performer, there must be some consequence to that low standard of performance. Ignoring poor performance or assigning higher than earned ratings to avoid unpleasantness is poor management and does a great disservice to the organization and to the individual concerned.
Communicating performance in an interview is an essential part of the process. Anyone who directs the activities of others should be capable of conducting an effective performance review meeting. An appraisal interview should not be adversarial nor meaningless chit chat. It should be approached by managers and subordinates as an opportunity for a serious discussion about present performance and future goals. It should be a planned structured event and follow a prescribed agenda.
Performance appraisal should be a positive experience and contribute to the overall welfare of the organization. If done properly, performance appraisal is a very effective tool to improve performance and productivity and for developing employees. It helps individuals to do better, raises self-esteem and motivation. Above all it strengthens the management/subordinate relationship and fosters commitment. Performance evaluation is not a process to be avoided; rather it should be implemented in all organizations and promoted as a key management activity. The benefits to be realized from a proper evaluation system far outweigh the time and effort required to develop, implement and maintain the process.
There is much research to show that individuals have a strong need to know how they are doing and where they stand in the eyes if their supervisor. Recognizing the importance of performance feedback, it follows that discussions of performance should take place more than once a year. Frequent, regular discussions of performance should occur on an on-going basis and be seen as an opportunity for useful communication between the individual who assigns work and those performing it. These regular meetings serve to provide feedback so good performance is recognized and performance problems are nipped in the bud. The more formal periodic reviews can then simply be a summary of what has occurred throughout the reporting period recorded on the official performance evaluation form.
Question 3. Write short notes on any three of the following:
(b) Competency Mapping.
Competency Mapping is a process of identifies 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. To ensure we are both on the same page, we would define a competency as a behavior (i.e. communication, leadership) rather than a skill or ability.
The steps involved in competency mapping with an end result of job evaluation include the following
1) Conduct a job analysis by asking incumbents to complete a position information questionnaire (PIQ). This can be provided for incumbents to complete, or you can conduct one-on-one interviews using the PIQ as a guide. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs.
2) Using the results of the job analysis, you are ready to develop a competency based job description. A sample of a competency based job description generated from the PIQ may be analyzed. This can be developed after carefully analyzing the input from the represented group of incumbents and converting it to standard competencies.
3) With a competency based job description, you are on your way to begin mapping the competencies throughout your human resources processes. The competencies of the respective job description become your factors for assessment on the performance evaluation. Using competencies will help guide you to perform more objective evaluations based on displayed or not displayed behaviors.
4) Taking the competency mapping one step further, you can use the results of your evaluation to identify in what competencies individuals need additional development or training. This will help you focus your training needs on the goals of the position and company and help your employees develop toward the ultimate success of the organization.
(c) HRD and performance appraisal.
Human Resources Development (HRD) as a theory is a framework for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement. Adam Smith states, “The capacities of individuals depended on their access to education”. The same statement applies to organizations themselves, but it requires a much broader field to cover both areas.
Human Resource Development is the integrated use of training, organization, and career development efforts to improve individual, group and organizational effectiveness. HRD develops the key competencies that enable individuals in organizations to perform current and future jobs through planned learning activities. Groups within organizations use HRD to initiate and manage change. Also, HRD ensures a match between individual and organizational needs.
A performance appraisal (PA), performance review, performance evaluation, (career) development discussion, or employee appraisal is a method by which the job performance of an employee is evaluated. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations. A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc.
(d) Role Clarity.
Role clarity was examined in terms of its relationships with personal outcomes and organizational effectiveness. Organizational level as a moderator of such relationships was also investigated. Using 490 underwriting personnel from 4 levels in 20 insurance offices, hypotheses based on prior research were generally confirmed. Role clarity was positively related to perceptions of job satisfaction, personal influence, organizational effectiveness, and task-oriented leadership. Role clarity was higher at higher organizational levels, where relationships with perceived organizational effectiveness were not significant. An independent measure of effectiveness showed members in high-performing offices had greater role clarity than members in low-performing offices. Role clarity and organizational level are important variables in organizational behavior research and warrant continued study.
PERFORMANCE APPRAISAL AT KALYANI ELECTRONICS CORPORATION Kalyani Electronics Corporation Ltd. recently diversified its activities and started producing computers. It employed personnel at the lower level and middle level. It has received several applications for the post of Commercial Manager-Computer Division. It could not decide upon the suitability of the
candidates to the position, but did find that Mr. Prakash is more qualified for
the position than other candidates. The Corporation has created a new post below the cadre of General Manager i.e. Joint General Manager and asked Mr. Prakash to join the Corporation as Joint General Manager. Mr. Prakash agreed to it viewing that he will be considered for General Manager’s position based on his performance. Mr. Anand, the Deputy General Manager of the Corporation and one of the candidates of General Manager’s position was annoyed with the management’s practice. But, he wanted to show his performance record to the management at the next appraisal meeting. The management of the Corporation asked Mr. Sastry, General Manager of Televisions Division to be the General Manager in-charge of Computer Division for some time, until a new General Manager is appointed. Mr.Sastry wanted to switch over to Computer Division in view of the prospects, prestige and recognition of the position among the top management of the Corporation. He viewed this assignment – As a chance to prove his performance. The Corporation has the system of appraisal of the superior’s performance by the subordinates. The performance of the Deputy General Manager, Joint General Manager and General Manager has to be appraised by the same group of the subordinates. Mr. Anand and Mr. Sastry know very well about the system and its operation, whereas Mr. Prakash is a stranger to the system as well as its modusoperandi. Mr. Sastry and Mr. Anand were competing with each other in convincing their subordinates about their performance and used all sorts of techniques for pleasing them like promising them a wage hike, transfers to the job of their interest, promotion, etc. However, these two officers functioned in collaboration with a view to pull down Mr. Prakash. They openly told their subordinates that a stranger should not occupy the ‘chair’. They created several groups among employees like pro-Anand’s group, pro-Sastry group, Anti-Prakashand Sastry group, Anti-Anand and Prakash group.Mr. Prakash has been watching the proceedings calmly and keeping the top management in touch with all these developments. However, Mr. Prakash has been quite work-conscious and top management found his performance under such apolitical atmosphere to be satisfactory. Prakash’s pleasing manners and way of maintaining human relations with different levels of employees did, however, prevent the emergence of an anti-Prakash wave in the company. But in view of the political atmosphere within the company, there is no strong pro-Prakash’s group
either. Management administered the performance appraisal technique and the subordinates appraised the performance of all these managers. In the end, surprisingly, the
workers assigned the following overall scores. Prakash: 560 points; Sastry: 420points; and Anand: 260points.
1. How do you evaluate the worker’s appraisal in this case?
A nice case study which is very similar to the defence organizations. The both of them are internal employees and another is external. This point u should note that the behavioral aspect also should be taken into consideration. The workers evaluated Mr.Prakash on these lines:
- a) He is a gentle person and able administrator displaying his high leadership qualities
- b) He can handle the things efficiently
- c) He recognizes the people´s work
- d) He is a good human as he did not fight with other internal employees
- e) He never wooved any employee nor put any negative feeling on anyone and remained as a good person with the co. and its employees.
- f) The employees thought that they will be secure and nicely look after by him.
These factors led to good appraise to Mr. Prakash by the employees
This is total based on leadership values which is totally SWOT analysis of Mr. Prakash´s in the view of his employees.
- Do you suggest any techniques to avert politics creeping into the process
of performance appraisal by subordinates?
Do you suggest the measure of dispensing with such appraisal systems?
The Appraisal Smart Performance Review System enables you to:
- Minimize the effort and cost of the employee performance appraisal process across your organization, and dramatically reduce paperwork.
- Ensure that your corporate goals are achieved through the joint efforts of all your employees.
- Motivate employees with clear and easily online-accessible goals and objectives to enhance their performance.
- Hold people accountable for their work output, and establish a performance-based culture.
- Enhance the content and consistency of performance appraisals organization-wide.
- Promote manager-employee engagement and collaboration.
- Reduce line manager reluctance and fear to conduct performance appraisals with their staff.
- Adopt a fair employee performance management and review system that aims to retain your top performers and identify those employees who do not perform to expectation.
- Identify individual and organizational competency strengths and weaknesses.
- Have your finger on the pulse regarding the status of staff appraisals organization-wide at any given moment in time.
- Have a record of all previous years´ appraisals ´on tap´ with the mere click of a mouse.
- Protect yourself legally with detailed staff performance records to defend your organization against litigious ex-employees.
Assignment – C
- Which of the following is not the aim of performance appraisal?
(a) To make compensation plans more scientific and rational.
(b) To select the best candidates
(c) To identify the needs of training
(d) To identify potentialities for other work
- Which of the following is not a traditional and highly scientific method of
(a) Critical Incident Method
(b) Point Method
(c) Behaviorally Anchored Rating Scales (BARS)
(d) Man-to-Man comparison
- Which of the following is not one of the modern methods of performance
(a) 3600 Techniques
(b) Human resource accounting
(c) Grading Method
- In the paired comparison technique of performance appraisal, which of the
following formulae is applied?
(a) No. of comparison = N-(N-1) 131
(b) No. of comparison = N - (N-1) 1
(c) No. of comparison = N-(N-1) 2
(d) No. of comparison = N (N-1) 2
- Which of the following statements regarding MBO is not true?
(a) There is no special provision in MBO for appraising of progress by both
the appraiser and the appraised.
(b) MBO has a special provision for mutual goal setting
(c) MBO has emerged as a reaction to the traditional management practices
(d) MBO is based on behavioral value of fundamental trust in the goodness of
- 360 Degree Technique does not evaluate the manager’s quality of interaction
- 360 Degree Technique does not play any important role in:
(a) Unfolding strengths and weaknesses in the managing style of assessee
(b) Boosting the morale of assessee
(c) Revealing truths about organizational culture and ambience
(d) Forcing inflexible managers to initiate self-change
- Which of the following statement about 360 degree technique is not true?
(a) Assessees usually deny the truth of negative feedback
(b) Linking findings to rewards may be unfair
(c) Can be used to humiliate assessee(s)
(d) Can be used in writing job descriptions
- Which of the following is not one of the steps in the process of constructing
(a) Collecting critical incidents
(b) Forcing choice descriptions
(c) Reclassification of incidents
(d) Identifying performance dimensions
- Which of the following is not a modern method of performance appraisal?
(a) Human Resource Accounting
(b) Graphic Rating Scale Method
- Which of the following is not one of the limitations and constraints of
(a) Psychological Blocks
(b) Economic Blocks
(c) Technical Pit Falls
(d) Faulty Assumptions
- Which of the following is not one of the distortions involved in performance
(a) Halo effect
(b) Special tendency
(c) Rater’s liking and disliking
(d) Constant errors
- Which of the following is not a method of potential evaluation?
(a) Review Appraisal
(b) Philips NV Holland Model
(c) Descriptive Evaluation
(d) Psychometric Tests
- Which of the following is not included in the 2×2 matrix used in Philips’ Hi-Lo Model of potential evaluation?
(b) Problem Children
(d) Planned Separation
15 Which of the following four qualities is generally not included while preparing 5-point scale for potential evaluation in Philips NV Holland Model?
(a) Training effectiveness
(b) Operational effectiveness
(c) Interpersonal effectiveness
(d) Achievement motivation
- Which of the following is not considered as one of the best practices of potential evaluation?
(a) Rewarding for good performance in the past
(b) Communicating potential appraisal to all employees regularly
(c) Incorporating the appraisal and reward of potential in the assessment system
(d) Ensuring to distinguish reward for potential from reward for past performance.
- As per Mihir, K Basu’s Survey, the appraisal system for managerial personnel
in the Tata Iron & Steel Company (TISCO) was introduced in:
18. Which of the following factors does not influence the measurement of work performance?
(a) Situational characteristics
(b) Individual Characteristics
(c) Image of the company
(d) Performance Management Procedures
- Which of the following statements is false?
(a) Job analysis is the basic for performance standards
(b) Subjective measures in performance appraisal are most desirable
(c)Using multiple raters improves performance
(d) Rating scales are particularly subject to bias
- Which of the following statements is correct?
(a) 360 degree appraisal compare ratees to one another
(b) Assessment Centers’ assessment is desirable when raters rate practically all
employees above average
(c) Rating in BARS is in behavioral terms
(d) Narrative essay is the order of ranking from best to worst
- Which of the following is not the major issue in performance appraisal?
(a) Performance Criteria
(b) Reward criteria
(c) Purpose & appraisal system
(d) Measurement technique
- The basis for performance standard is:
(a) Job analysis
(c) HR Plans
(d) Compensation Plan
- Performance appraisals serve as building blocks of:
(a) Manpower Planning
(b) Job analysis
(c) Career Planning
- Which of the following is a future-oriented appraisal technique?
(c) Rating Scales
(d) Field Review Method
- Which of the following technique is least susceptible to personal bias?
(b) Forced Choice
(c) Rating Scales
(d) Check Lists
- A disadvantage of rating scale is:
(b) Quantification of scores
(c) Time involved
- Which of the following is not the typical Rater error?
(a) Stereo Typing
(b) Same as me
(c) Horn effect
(d) Desire to be accepted
- Which step of the following should not be involved in the review of
(a) Immediate Superior-subordinate Review.
(b) Deciding compensation
(c) Monitoring, Auditing and Appeals
(d) Review by Higher Levels of Management
- Which, according to N.F.R. Maier, of the following is not included in the
seven accomplishments of good counseling?
(a) Availability of expert knowledge
(b) Conformity of solution with value system
(c) Identifying threats
(d) Development of responsibility
- Which of the following is not one of the key elements of performance
appraisal which can be achieved through an effective appraisal discussion?
(a) Exchange of views
- Which of the following is not one of the main sub-processes of counseling?
- Which of the following is not involved in ‘Communication’?
- Which of the following is not included in ‘influencing’?
(b) Positive Re-enforcement
- Which of the following is not involved in ‘helping’?
(a) Positive Re-enforcement
- Which of the following is not one of the key aspects of conducting Appraisal Discussion?
- Which of the following is not one of the three distinct aspects which can be
identified in ‘Action Planning’?
(a) Positive Requirement
(b) Management Support
(c) Decision Making
- Which of the following is not one of the steps essential for development and
introduction of performance appraised system?
(a) Deterring an overall approach to performance appraised system
(b) Setting up project team
(c) Appropriate compensating the Project Team
(d) Pilot testing
- Which of the following is not the purpose of self-appraisal?
(a) Orienting the employee regarding the intricacies of performance appraisal system
(b) Providing a formal opportunity for the employee to recapitulate.
(c) Identifying his own development needs
(d) Initiating an organization-wide process of review and reflection and supportive climate
- Which is not the advantage of 360 degree appraisal?
(a) Requires extensive training
(b) Is more objective being multi-rater based
(c) Increases accountability of employees to customers
(d) Increases credibility of performance appraisal
- Which of the following is not the new performance measure that Godrej &
Boyce has identified?
(a) Networking Capital Returns
(b) Return on Investment
(c) Volume of Business Growth
(d) Net contribution of the Division
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