Master of Business Administration-MBA Semester IV

Subject Code ± MU0007 Subject Name ± Performance Management and Appraisal Assignment Set- 1 (30 Marks)

Q1. Define Performance Management? Explain the principles of developing a performance management plan. Ans. Performance Management is an ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. It is a philosophy which values and encourages employee development through style of management which provides frequent feedback and fosters teamwork. It emphasizes teamwork and focuses on adding value to the organization by promoting improved job performance and encouraging skill development. Performance management involves clarifying the job duties, defining performance standards and documenting, evaluating and discussing performance with each employee. The objectives of performance management are : 1. 2. 3. 4. Increased two way communications between supervisors and employees. Clarify mission, goals, responsibilities, priorities and expectations. Recognize quality performance. Provide a basis for administrative decisions such as promotions, succession and strategic planning and pay for performance. Principles of developing a performance management plan. Development of performance management plan should be consistent with the following principles: 1. Performance Management is considered a process, not an event. It follows good management practice in which continual coaching, feedback and communication are integral to success. 2. The performance management plan is primarily a communication tool to ensure mutual understanding of work responsibilities, priorities and performance expectations. 3. Elements for discussion and evaluation should be job specific- not generalized personality traits. The major duties and responsibilities of specific job should be defined and communicated.

Documentation of performance will occur as often as needed to record the continuum of dialogue between supervisor and employee. 6. 3. motivating. Employee involvement is encouraged in identifying major duties and defining performance standards. Adaptive Capacity It is the ability of an organization to maintain focus on external environment of the organization. Management Capacity It is the ability to ensure effective and efficient use of the resources in the organization. particularly on performing while continually adjusting and aligning itself to respond to those needs and influences. 9. money and facilities. The formal evaluation period should be long enough to allow for full performance and to establish a history such that evaluations are fir and meaningful. These capacities were suggested for non-profit organizations. Ryan and Grossman suggested four key capacities for organizational effectiveness. they should reflect the incumbent¶s actual performance in relation to the performance standard for that major duty. 2. 7. Letts. Adaptive capacity is cultivated through attention to assessments. However they also apply to organizations in general and thus their descriptions are modified in the following paragraphs to apply to organizations in general. The performance management plan should be consistent with federal and state laws which address non-discrimination. Letts. 4. making decisions and solving problems. 11. Ans. 1.-Elucidate. collaborating and networking. If formal ratings are included. Leadership capacity is cultivated through attention to vision. Professional development should be an important component of the plan. Technical Capacity . The supervisor should be evaluated on the successful administration of the plan and ongoing performance management responsibilities. One year is common evaluation period. Ryan and Grossman suggested four key capacities for organizational effectiveness.4. Leadership capacity It is the ability to set direction for the organization and its resources and also guide activities to follow that direction. 10. Q2. directing. establishing goals. 5. Training for supervisors and employees is encouraged. assessments and planning. Management capacity is accomplished through careful development and coordination of resources including people. 8.

and how well it should be done. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic and problematic standards. Through critical elements. Monitoring In an effective organization assignments and projects are monitored continually. 2. Planning In an effective organization work is planned out in advance. Regulatory requirements for monitoring performance includes conducting progress reviews with employees where their performance is compared against their elements and standards. By monitoring continually unexpected performance can .3 Explain the process of performance management Ans. 5. Q. verifiable. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups for their progress toward reaching their goals. Performance Management is a systematic process by which the agency involves its employees. equitable. Generative Capacity It is the ability of the of the organization to positively change its external environment. employees are held accountable as individuals for work assignments and responsibilities. Getting employees involved in planning process will help them understand the goals of the organization. why it needs to be done. Performance Management process involves 5 steps 1. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and job requirements. as individuals and members of a group in improving organizations effectiveness in the accomplishment of an agency mission and goals. Performance elements and standards should be measurable. understandable. Planning refers to setting performance expectations and goals for groups and individuals to channelize their efforts towards achieving organizational objectives. what needs to be done. The regularity requirements for planning employee¶s performance include establishing the elements and standards of their performance appraisal plans. educate and persuade policy makers. The nature of that technical capacity depends on the particular type of products and services provided by the organization. and achievable. This capacity is exercised by engaging in activities to inform. community leaders and other stakeholders. When used effectively these plans can be beneficial working documents that are discussed often and not merely paperwork that is filed in a drawer and seen only when ratings of record are required.It is the ability to design and operate products and services to customers.

Recognition is an ongoing. rewards are used well.be identified at any time during the appraisal period and assistance provided to address such performance rather than wait until the end of the period when summary rating levels are assigned. Rating From time to time organizations find it useful to summarize employee performance. During planning and monitoring of work. 3. Rewarding In an effective organization. A basic principle of effective management is that all behavior is controlled by its consequences. Carrying out process of performance management provides an excellent opportunity to identify developmental needs. such as the introduction of new technologies. strengthens job related skills and competencies. giving assignments that introduce new skills or higher levels of responsibility. Areas of improving good performance also stand out. natural part of day to day experience. It means recognizing employees. such as granting within grade pay increases and determining additional retention service credit in a reduction in force. Developing in this instance means increasing the capacity to perform through training. Those consequences should be both formal and informal and both positive and negative. A lot of actions that reward good performance don¶t require a specific regulatory authority. This can be helpful for looking at and comparing performance overtime or among various employees. for their performance and acknowledging their contributions to the agencies mission. Developing In an effective organization. individually and as members of groups. Providing employees with training and developmental opportunities encourages good performance. Organizations need to know who their best performers are. Good performance is recognized without waiting for nominations for formal awards to be solicited. and helps employees keep up with changes in the workplace. 4. . employee developmental needs are evaluated and addressed. Within the context of the formal performance appraisal requirements. The rating of record is assigned according to procedures included in the organizations appraisal program. 5. rating means evaluating employee or group performance against the elements and standards in an employee¶s performance plan and assigning a summary rating of the record. It is based on work performed during entire appraisal period. improving work processes or other methods. deficiencies in performance become evident and can be addressed. and action can be taken to help successful employees improve even further. The rating of record has a bearing on other personal actions.

Sometimes major miscommunications occur in performance review sessions due to basic differences in ethical orientation. his feelings of personal worth will suffer. The overall objective of high ethics performance review should be to provide an honest assessment of performance and to mutually develop a plan to improve individual¶s effectiveness. honesty and truthfulness in connection with the performance review. However being legal does not always equate to being ethical. When a performance review helps the individual recognize that his or her objectives are closely assigned with the organizations.2 Q. Some managers feel that being legal in performance review is enough. Managers must realize that ethics is the process of deciding and acting. The . Unless the employee and the reviewer are successful in negotiating an ethical balance each may review other as taking unfair shots. Performance appraisal must be recognized and treated as an ethical issue of high pay off and peril. Employees have a big stake in the way managers evaluate and operate.1 Explain the role of ethics in performance appraisal. If the person being reviewed feels ignored. cynical and withdrawn. The ethical ramifications of performance review have caused managers and employees at all the levels to become frustrated. the individual is more likely to perform at a higher level and the organization is less likely to lose a valuable employee. Ans.Master of Business Administration-MBA Semester IV Subject Code ± MU0007 Subject Name ± Performance Management and Appraisal Assignment Set. That requires telling people where they stand and being straight with them. Most ethical questions arise from peoples relationship with the organization. Managers and non supervisory employees alike cite concern about politics and lack of fair treatment. Ethics has a very important role to play in performance management. In the worst scenario low ethics managers use the performance review process as a form of forced humility for individuals reporting to them. To abandon the performance appraisal process is a breach of business ethics. If they comply with rules and regulations and are careful about their documentations they feel they are secure enough and have a defensible position. A perfunctory review is an ethical strike out.without taking a swing. Many managers talk about ethics but do not act upon ethical issues in day to day managerial responsibilities.

Sunil has on his subordinates are : 1. It is also believed that if given the chance employees have the desire to be creative and forward thinking in the workplace. 4. Performance review as a matter of ethics. The average person dislikes work and will avoid it. Assumptions under theory Y (participative management style) 1. to avoid responsibility is relatively not ambitious and wants security above all else. an authoritarian style of leadership. not to threaten self esteem. autonomy and empowerment. Therefore most people must be forced with the threat of punishment to work towards organizational objectives. According to McGregor theory. self direction. avoid work and they needs supervision to perform tasks and therefore he shows authority over his subordinates¶. Employees shirk responsibilities and seek formal direction whenever needed. They will blame the person first in most situations. Treatment of people is the most fundamental ethical issue.objective of the performance review is to develop the person. In theory X McGregor proposes that management assumes employees are inherently lazy and will avoid work if they can. A hierarchical system is needed with arrow span of control at each level.2 Mr. . McGregor¶s X-Y theory Douglas McGregor proposed two different sets of assumptions as to what motivates people ± theory X and theory Y. without questioning whether it may be the system. There is a chance of greater productivity by giving employees the freedom to perform at the best of their abilities without being bogged down by rules. The assumptions that Mr. Due of this workers need to be closely supervised and comprehensive systems of control developed. In theory Y McGregor proposes that management assumes employees may be ambitious. According to McGregor¶s theory Mr. Q. It is believed that employees enjoy their mental and physical work duties. what assumptions Mr. Ans. 3. According to this theory employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. Sunil is a manager in a manufacturing company. Sunil follows theory X. Effort in work is as natural as work and play. The average person prefers to be directed. self motivated. Usually managers feel the sole purpose of employees interest in job is money. 2. policy or lack of training that deserves the blame. He thinks that his subordinates are inherently lazy. And also elucidate McGregor both the theories. Sunil is having of his subordinates. anxious to accept greater responsibility and exercise self control.

Graphic Rating scale This method lists a set of performance factors such as job knowledge. cooperation that the supervisor uses to rate employee performance using an incremental scale.2. profits. 2. 5. . Behavioral checklist The rater is given a checklist of descriptions of the behavior of the employee on the job. 4. Behavioral Anchored Rating Scales( BARS) This combines elements from critical incident and graphic rating scale approaches. The supervisor rates employees according to items on the numerical scale. The method aligns objectives with quantitative performance measures such as sales.3 Write notes on: Management by Objectives Behavioral Anchored Rating Scales Graphic Rating scale Behavioral checklist Ans. In industry the intellectual potential of the average person is only partly utilized. People will apply self control and self direction in pursuit of organizational objectives. zero defect units produced. ingenuity and creativity in solving organizational problems is widely not narrowly distributed in the population. without external control or the threat of punishment. 3. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees. Q. 3. Management by Objectives It evaluates how well an employee has accomplished objectives determined to be critical in the job performance. 4. 6. work quality. People usually accept and often seek responsibility. 1. Commitment to objectives is a function of rewards associated with their achievement. The capacity to use a higher degree of imagination.

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