INTRODUCTION OF PERFORMANCE APPRAISAL

Performance appraisal goes by various names such as performance evaluation,progress rating ,merit rating, merit evaluation etc Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trend in technique of merit rating. It employs various rating techniques qualities and deficiencies and the requirements of their respective jobs. “Performance appraisal includes all formal procedures used to evaluate personalities and contributions and potentials of group member in a working organization. It is a continuous process to secure information necessary for making correct and objective decision on employees. A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job universal abased on considerations other than productivity alone. Performance appraisal measures the qualitative and quantitative aspects of job performance. An appraisal evaluates not only the employee's performance but also his potential for development. The primary objectives of an appraisal are – to assess past performance, to identify training needs, to set and agree on future objectives and standards, and to facilitate the achievement of these goals. Performance appraisal or merit rating is one of the oldest and most practices of management. It refers to all the formal procedures used in working organization to the personality and contributions of group members. Modern management makes

somewhat less use of the term ‘merit rating’ than was common in earlier periods. In the past emphasis used to be on the evaluation of merits of the individuals- his worth as a person. The approach resulted in an appraisal system in which the employees merit like initiative, dependability, personality etc were compared with others and ranked and rated.

HISTORY OF PERFORMANCE APPRAISAL
The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession! There is, says Dulewicz (1989), "... a basic human tendency to make judgements about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgements made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but

more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

Modern Appraisal
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.

DEFINITION BY DIFFERENT AUTHORS
According to Alford and Beatty, "It is the evaluation or appraisal of the relative worth to the company of a man's service on the job".

it is a more comprehensive process.promotion etc Performance appraisal system Enables clarification of expectation between superior and subordinate Provides data in term of needs aspiration of indivisuals to review company policies and structure . "Performance Appraisal is a systematic. which combines formal ratings with supplementary observations records and evaluation PUPOSE OF PERFORMANCE APPRAISAL Help to achieve organization’s task through guided efforts of indivisual Provides data for evolving development plans for indivisuals Provides input for decisions on transfers.According the flipper. According to Dale Yoder. periodic and so far as humanly possible and impartial rating of employee's excellence of matters pertaining to his potentialities for a better job".

To serve as an opportunity to communicate face-to-face modifications or changes to existing performance objectives 3. To provide adequate feedback to staff members on their performance 2.  By identifying the strength and weaknesses of an employee it serves as a guide for formulating a suitable training and development program to improve the quality of performance.  It serves as a important incentive to all the employees who are by the existence of an appraisal system assured of the management’s continued interest in them and of their continuous possibility of develop.bonus etc. .PURPOSE OF PERFORMANCE APPRAISAL  It can be serve as a basis for job change or promotion.  Performance appraisal serves as means for evaluating the effectiveness if the device used for the selection and classification of workers.  It servers as a feedback to the employee. To provide data to administrators so they can evaluate a staff member and judge future job assignments and compensation Fundamentals of an appraisal system To develop a successful performance appraisal system. two criteria need to be met: • Relevance and applicability to everyday work practice • Acceptability to appraisers and workers. BASIC FUNCTION OF PERFORMANCE APPRAISAL      1.  Performance appraisal often provide the rational foundation for the payment of piece work wages.

 Some of the factor are highly subjective like initiative and personality of the employees.  Different qualities to be rated may not be given proper weightage certain in cases. So the rating are likely to be biased . Sometimes.  Supervisors often do not have critical ability in assessing the staff.LIMITATION OF PERFORMANCE APPRAISAL Performance appraisal may not yield the desired result because of the following deficiencies:  If the factors included in the assessment are irrelevant. the result of merit rating will not be accurate. so the actual rating may not be in scientific lines. they are guided by personal emotions and likes.

360 Degree Appraisal 4. Unstructured appraisal 2.METHODS OF PERFORMANCE APPRAISAL Performance appraisal Traditional methods 1. Critical incidents 7. Employee Ranking 3. Forced distribution 4. Assessment Center .Behaviourally Anchored rating Scale 3. Graphics-Rating scale 5. Check lists 6. Field review Mordern Methods 1. Management by Objective 2.

reasons for specific job behaviours. leadership. judgment. However.TRADITIONAL METHOD Traditional methods are very old technique of performance appraisal. People are compared as whole The magnitude of difference in ability between ranks is not equal at different position. This system is highly subjective and has got its merit in its simplicity and is still in use especially in the small firms. versatility. dependability. personality traits. RANKING METHOD The oldest and simplest methods of performance appraisal is to compare one man will all other men and place him in a simple rank order. the difference in ability between the fifth and sixth individuals may be much greater than the difference between the sixth and . loyalty. in some organization. They are based on trait oriented appraisal. initiative. punctuality. For instance. the appraiser is required to write down his impression about the person being appraised in an unstructured way. UNSTRUCTURED APPRAISAL Under this. comment are required to be grouped under specific headings such as quality of job performance. In this way ordering is done from the best to worst of all individuals comprising the group. and development needs. Evaluation of employees is Done on the basis of standard of personal traits or qualities suchas attitudes. knowledge of job etc. The methods is both simple and natural but it disadvantage are:    It is highly subjective Comparison of the various component of a person’s is not done.

A. In this method the rater compares each man in his group with every other man. The number of comparisons involved in this methods is thus very large and can becdetermined by the following formula: Number Of Comparison: N(N-1)/2 Where N stands for the number of men to be rated For a 50 man group for example there would be i225 seprate comparisons which is obviously for too great to permit expedient use of the method Following is a work sheet which shows how paired comparisions can be made in a 6 man work group. Thus A on comparision B C D E and F has been found more productive than B.D and E. and E and less productive then C and F. Therefore A’s total number of checks is 3. Each employee has been compared with other employees and when ever he has been found more productive a checkmark has been placed. seventh. the differencebetween these indivisuals is the same Its use is difficulty in large groups when the rater cannot compare several people simultaneously. As an answer to this problem the paired comparison method of ranking has been evolved.                3 2 5 1 o 4 .D. In our example C stand first followed by F.B. however. In terms of ranks. with the final ranking of each worker determined by the number of times he has judged better than the others.

Each employee trait or characteristic is rated on a bipolar scale that usually has several points ranging from "poor" to "excellent" (or some similar arrangement). Rather. Rating scale methods are easy to use and understand. or by the organization's need to know. both appraisers and appraisees have an intuitive appreciation for the simple and efficient logic of the bipolar scale. ADVANTAGES OF RATING-SCALE METHODS The greatest advantage of rating scales is that they are structured and standardised. initiative. The traits assessed on these scales include employee attributes such as cooperation. For example. the trait "initiative" might not be very important in a job that is tightly defined and rigidly structured. punctuality and technical (work skills) competence. The one major provision in selecting traits is that they should be in some way relevant to the appraisee's job. with the same range of responses. DISADVANTAGE OF RATING-SCALE METHODS Trait Relevance Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It is inevitable that with a standardised and fixed system of appraisal that certain traits will have a greater relevance in some jobs than in others. communications ability.RATING-SCALE METHODS The rating scale method offers a high degree of structure for appraisals. The traits selected by some organizations have been unwise and have resulted in legal action on the grounds of discrimination. In such cases. The result is widespread acceptance and popularity for this approach. a low appraisal rating for initiative may not mean that an employee lacks initiative. The concept of the rating scale makes obvious sense.even for entire workforces. This allows ratings to be easily compared and contrasted . Each employee is subjected to the same basic appraisal process and rating criteria. The nature and scope of the traits selected for inclusion is limited only by the imagination of the scale's designer. This encourages equality in treatment for all appraisees and imposes standard measures of performance across all parts of the organization. it may reflect that fact that an employee .

Selective perception is the human tendency to make private and highly subjective assessments of what a person is "really like". the supervisor covers for them and may even offer excuses for their declining performance. All human beings are affected by it. generally attempt to encapsulate all the relevant indicators of employee performance. it can be a significant threat to the effectiveness and credibility of performance appraisal. and all false and irrelevant indicators are excluded. This is an assumption very difficult to prove in practice. and the traits they purport to measure. The relevance of rating scales is therefore said to be context-sensitive. Perceptual Errors This includes various well-known problems of selective perception (such as the horns and halos effect) as well as problems of perceived meaning. we see in others what we want to see in them. But in its more subtle manifestations. . Instead of correcting the slackening employee. It is possible that an employee's performance may depend on factors that have not been included in the selected traits. An example is the supervisor who believes that an employee is inherently good (halo effect) and so ignores evidence that might suggest otherwise. The supervisor becomes unreasonably harsh in their assessment of the employee. Perceived Meaning Problems of perceived meaning occur when appraisers do not share the same opinion about the meaning of the selected traits and the language used on the rating scales. On the other hand.has few opportunities to use and display that particular trait. Such employees may end up with ratings that do not truly or fairly reflect their effort or value to the organization. This is a common and normal psychological phenomenon. There is an assumption that all the true and best indicators of performance are included. Job and workplace circumstances must be taken into account. and always ready to criticize and undermine them. The horns and halo effect is rarely seen in its extreme and obvious forms. a supervisor may have formed the impression that an employee is bad (horns effect). Employees in this class are systemically disadvantaged by the rating scale method. and then seek evidence to support that view (while ignoring or downplaying evidence that might contradict it). In other words. Systemic Disadvantage Rating scales.

Thus the spread of ratings tends to clump excessively around the middle of the scale. This problem is worsened in organizations where the appraisal process does not enjoy strong management support.may mean different things to different appraisers. The most common rating error is central tendency. sometimes all have unfavorable statements only and sometimes they have both favorable and unfavorable statements.. 4.Carries out orders by ―passing the buck‖. or those wary of confrontations and repercussions.such as "Performance exceeds expectations" or "Below average skill" . 3. "satisfactory" or "adequate"). regardless of the actual performance of a subordinate. threes or fours. FORCED DISTRIBUTION METHOD A Forced distribution method consist of number of statements which described an individual being rated. Rating Errors The problem here is not so much errors in perception as errors in appraiser judgement and motive. These statements are grouped in twos.and thus a lack of initiative. may be tempted to dole out too many passive. The rater makes two checks in each group. As well.g. middle-of-the-road ratings (e. this might suggest an excessive dependence on supervisory assistance . the language and terms used to construct a scale . To another appraiser.For example. Always critises never praises. 2. Sometimes all group on the rating form are made of favorable statement only. to one appraiser. an employee may demonstrate the trait of initiative by reporting work problems to a supervisor. Plays no favourites . these errors may be (at times) deliberate.Knows his job and performs it well. Busy appraisers. one for the statement which best describes the individual and one for the statement which is least descriptive. Examples of such groups of items are given below : GROUP 1 1. Unlike perceptual errors. or where the appraisers do not feel confident with the task of appraisal.

These observations are then kept track of as incidents. 3) Since the rater does not know the values given to different statement. 2) A separate check list is needed for each job because statements used in ine checklist to evaluate one category of workers.GROUP 2 1. Check list method Sometimes the method used for performance appraisals is a list consisting of a number of statements about the worker and his behavior. Cannot assume responsibility 2. It is resented by the rater because the implicit assumption behind it is that the rater cannot be trusted to make impartial evaluation. Limitation of checklist Methods 1) It is difficult to construct a good checklist. It is expensive to install because the statements must be custom-tailored to the demands of the particular job and company 2. he may resent the system as a whole and may not given it his whole hearted support Critical statement Method The Critical Incident Technique (or CIT) is a set of procedures used for collecting direct observations of human behavior that have critical significance and meet methodically defined criteria. 4. Knows how and when to delegate 3. Each statement on this list is assigned a value depending upon its importance. Both statements and their values are derived from preliminary research in which the pooled judgement of persons familiar with the job are used. Offers suggestions. .Too easily changes his ideas LIMITATIONS OF FORCED DISTRIBUTION METHOD 1.

but typically respondents are asked to tell a story about an experience they have had. CIT is a flexible method that usually relies on five major areas. the next step is to identify the issues. which will determine if the solution that was selected will solve the root cause of the situation and will cause no further problems MORDERN TECHNIQUE MANAGEMENT BY OBJECTIVE Management by Objectives (MBO) is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization. Afterwards a decision can be made on how to resolve the issues based on various possible solutions. which involves collecting the details of the incident from the participants. then fact-finding. When all of the facts are collected. When all of the facts are collected. Afterwards a decision can be made on how to resolve the issues based on various possible solutions. the next step is to identify the issues. CIT is a flexible method that usually relies on five major areas. A critical incident can be described as one that makes a significant contribution—either positively or negatively—to an activity or phenomenon. A critical incident can be described as one that makes a significant contribution—either positively or negatively—to an activity or phenomenon. but typically respondents are asked to tell a story about an experience they have had. These observations are then kept track of as incidents. . which are then used to solve practical problems and develop broad psychological principles. then fact-finding. Critical incidents can be gathered in various ways. Critical incidents can be gathered in various ways. The final and most important aspect is the evaluation. which will determine if the solution that was selected will solve the root cause of the situation and will cause no further problems FIELD REVIEW The Critical Incident Technique (or CIT) is a set of procedures used for collecting direct observations of human behavior that have critical significance and meet methodically defined criteria. The final and most important aspect is the evaluation.which are then used to solve practical problems and develop broad psychological principles. The first is determining and reviewing the incident. The first is determining and reviewing the incident. which involves collecting the details of the incident from the participants.

they are more likely to fulfill their responsibilities. 3. when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them. 2. the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. Ideally. This increases employee job satisfaction and commitment. Managers can ensure that objectives of the subordinates are linked to the organization's objectives. the employees set their goals to be achieved. The essence of MBO is participative goal setting. Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the organization and also to solve many problems. An important part of the MBO is the measurement and the comparison of the employee‘s actual performance with the standards set. An important part of the MBO is the measurement and the comparison of the employee‘s actual performance with the standards set. They can then understand how their activities relate to the achievement of the organization's goal. when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them. Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment. The essence of MBO is participative goal setting. . choosing course of actions and decision making. choosing course of actions and decision making. Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person.The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'. Ideally. FEATURES AND ADVANTAGE OF MANAGEMENT BY OBJECTIVE The basic principle behind Management by Objectives (MBO) is for employees to have a clear understanding of the roles and responsibilities expected of them. they are likely to fulfill their responsibilities. Some of the important features and advantages of MBO are: 1. 5. Clarity of goals 4. Management By Objective can be defined as a process whereby the employees and the superiors come together to identify common goals. MBO also places importance on fulfilling the personal goals of each employee.

not at what they should do. 2. managing by objectives would be counterproductive. While MBO is not as fashionable as it was before. falsely representing achievement of targets that were set in a short-term. Trait appraisal only looks at what employees should be. As an example of the influence of management buy-in as a contextual influencer. on average. in a 1991 comprehensive review of thirty years of research on the impact of Management by Objectives. objectives are discussed and agreed upon. a 56% gain in productivity. . narrow fashion.is perhaps the most famous aphorism of performance measurement. Companies evaluated their employees by comparing them with the "ideal" employee.LIMITATION OF MANAGEMENT BY OBJECTIVE There are several limitations to the assumptive base underlying the impact of managing by objectives. Robert Rodgers and John Hunter concluded that companies whose CEOs demonstrated high commitment to MBO showed. to avoid potential problems SMART and SMARTER objectives need to be agreed upon in the true sense rather than set. The use of MBO must be carefully aligned with the culture of the organization. A saying around MBO -. ‘Why measure performance? Different purposes require different measures’ -. including: 1. which can be advantageous."What gets measured gets done". it still has its place in management today. When this approach is not properly set. It underemphasizes the importance of the environment or context in which the goals are set. to relative buy-in by leadership and stake-holders. 3. self-centered employees might be prone to distort results. Employees are often involved in this process. agreed and managed by organizations. therefore. In this case. It over-emphasizes the setting of goals over the working of a plan as a driver of outcomes. The key difference is that rather than 'set' objectives from a cascade process. Companies with CEOs who showed low commitment only saw a 6% gain in productivity. That context includes everything from the availability and quality of resources.

PROCESS OF MANAGEMENT BY OBJECTIVE .

Assembling the final BARS form. moderate. Rating of the effectiveness of each incident as evidence of one’s performance on the dimension. The supervisor rates employees according to items on a numerical scale. critical incidents. Refinement of the critical incidents and the creation of performance dimensions (the overall qualities defined by specific critical incidents).BARS uses judgmental measures developed to define the rating points in relation to actual work behaviors. PROCESS OF BEHAVIOURALLY ANCHORED RATING SCALE METHOD      Generation of critical incidents (examples of effective and ineffective behavior). and quantified ratings by anchoring a quantified scale with specific narrative examples of good. Some of the purposes of using BARS include:    Use as a decision aid Helping to manage changes to identify individuals for promotion & to facilitate lateral transfers To reward good performance: merit-based salary and benefits. and poor performance. BARS are normally presented vertically with scale points ranging from five to nine. It is an appraisal method that aims to combine the benefits of narratives.BEHAVIOURALLY ANCHORED RATING SCALE METHOD Behaviorally anchored rating scales (BARS) is an appraisal method that measures behavior against levels of performance. Verification check of the relationship of critical incidents to performance dimensions. Behaviorally Anchored Rating Scales (BARS) are scales used to rate performance. BARS combine elements from critical incident and graphic rating scale approaches. promotions . often a 10-point scale constructed for each of the performance dimensions and placement of critical incidents in the scales.

multisource feedback. superior). and is sometimes called a "360-degree review. customers. also known as 'multi-rater feedback'. 360-degree feedback.e. in some cases. Feedback is provided by subordinates. It may be contrasted with "upward feedback. This typically includes the employee's manager. There is also controversy regarding whether 360-degree feedback improves employee performance.. is feedback that comes from all around an employee. A mixture of about eight to twelve people fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. managers (i. The results from 360-degree feedback are often used by the person receiving the feedback to plan training and development. "360" refers to the 360 degrees in a circle. anonymous feedback from the people who work around them. subordinates. peers." However. also known as multi-rater feedback. or a "traditional performance appraisal. 360 Degree Feedback is a system or process in which employees receive confidential. with an individual figuratively in the center of the circle. such as pay or promotion. there is a great deal of controversy as to whether 360degree feedback should be used exclusively for development purposes." where the employees are most often reviewed only by their managers. the 360 assessment is for evaluation purposes. Results are also used by some organizations in making administrative decisions. 360 degree respondents for an employee can be his/her peers. or multisource assessment. suppliers/ vendors . or should be used for appraisal purposes as well (Waldman et al. and supervisors. team members.  Addressing poor performance: firing decisions To evaluate the effectiveness of other organizational programs 360 DEGREE APPRAISAL In human resources or industrial/organizational psychology. peers. feedback from external sources such as customers and suppliers or other interested stakeholders. The feedback forms include questions that are ." where managers are given feedback by their direct reports. It also includes a self-assessment and. and direct reports. and it has even been suggested that it may decrease shareholder value 360 degree feedback. When this is the case. is the most comprehensive appraisal where the feedback about the employees‘ performance comes from all the sources that come in contact with the employee on his job.anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 1998).

Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their strengths and weaknesses. a "non-manager" 360 assessment is not measuring feedback from 360 degrees since there are no direct reports. character. PURPOSE OF 360 DEGREE APPRAISALS o o o o 360 feedback measures behaviors and competencies 360 assessments provide feedback on how others perceive an employee 360 feedback addresses skills such as listening. but the same principles still apply. 360 Feedback for non-managers is useful to help people be more effective in their current roles.measured on a rating scale and also ask raters to provide written comments. The 360 feedback system automatically tabulates the results and presents them in a format that helps the feedback recipient create a development plan. . and goal-setting A 360 evaluation focuses on subjective areas such as teamwork. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms. etc. 360 Feedback can also be a useful development tool for people who are not in a management role. and also to help them understand what areas they should focus on if they want to move into a management role. Individual responses are always combined with responses from other people in the same rater category (e. Strictly speaking. sales quotas. direct report) in order to preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and weaknesses.g. peer. and leadership effectiveness LIMITATIONS OF 360 DEGREE APPRAISAL o o o o 360 feedback is not a way to measure employee performance objectives (MBOs) 360 feedback is not a way to determine whether an employee is meeting basic job requirements 360 feedback is not focused on basic technical or job-specific skills 360 feedback should not be used to measure strictly objective things such as attendance. planning.

PROCESS OF 360 DEGREE APPRAISAL .

anonymous feedback from the people who work around them.e. What is 360-degree feedback? 360-degree feedback is a full circle system of obtaining information from peers. peers and direct reports in the organization.INTRODUCTION OF 360 DEGREE APPRAISAL 360 degree feedback. team members. * Supervisor * Internal Customers/peers/Staffs * External Customers . about the employee's performance. suppliers/ vendors . competencies and behaviour by colleagues horizontally and vertically by involving his boss. subordinates. managers (i. 360 degree respondents for an employee can be his/her peers. and internal and external customers. customers. 360-degree assessment is based on the assessment of an individual's management styles. also known as 'multi-rater feedback'. is the most comprehensive appraisal where the feedback about the employees‘ performance comes from all the sources that come in contact with the employee on his job. subordinates. which includes * Self. 360-degree feedback Is a multi source assessment. superior). 360 Degree Feedback is a system or process in which employees receive confidential.anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.

The performance of the employees is at work here matters in business development and organisational development. Here the effort to grow the business and the surplus should come from employee part. The 3600 Appraisal helps the HR Department to have better understanding of the competitive advantage and disadvantages of the current manpower resources and tune them towards performance excellence and productivity. Without surplus no organization can grow.Need of 360-degree feedback in organizations Business is towards surplus generation. The performance of the employees should then align with the strategic decisions that integrate the business goals in an increasingly competitive environment. It is the responsibility of the Human Resource Management to integrate the culture of the organisation with all available resources to the optimum out put. .

Prerequisites * Top Management Support * Confidence of employees on the appraisal methodology * Objectives need to be measurable with performance requirements clearly stated. at the individual and group level. in the present business environment where the success of the company depends on continuous revolution. * A detailed plan of implementation * Collaboration between superior and subordinates * Some prior experimentation and positive experiences Clear organisational philosophy and policy objectives Uses for 360 Degree Feedback include:  Performance Appraisal Recognition of performance. job enlargement. job transfer. etc. Monetary and other rewards. etc  Customer Satisfaction Study Employees attitudinal change Customer satisfaction improvements How 360-degree feedback system adds value? 360 degree feedback enables an organization to focus on developmental efforts. It adds value to the organization indifferent ways:- . leadership. dismissal. 360-degree feedback facilitates the alignment of individual capabilities and behaviors with organizational strategies. Providing feedback on individual performance. probation. which is possible through organizational development. Providing a basis for self-evaluation.  Organizational Climate Study: Organizational environment improvement needs Changes in the Managerial approaches.  Assessing Employee Development: Diagnosing training and career development needs. job enrichment. Providing a basis for promotion.

360-degree feedback increases the team's ability to contribute to the organizations goals 360-degree feedback helps everyone to work for a common standard and institutionalize performance management. It promotes better Communication within departments. Follow up Pitfalls of 360-degree feedback o o o A detailed plan of action. Failure in follow-up may cause more harm than good. which ensure the transparent and clear implementation of appraisal with employee accountability. Allocation of resources for the purpose in terms of time and finances. Analysis of the organizational context for finding a solution to the problem.o o o o o o o o o o o o o 360-degree feedback provides a better understanding of individuals performance at work 360-degree feedback provides a multifaceted view about the employees from different sources 360-degree feedback provides a better understanding of employed developmental needs 360-degree feedback provides increased the understanding about one's role expectations. Steps may be taken to gauge the readiness of an organization for 360degree feedback: o o o o o Identification of the problem. . 360-degree feedback Increases the team's ability to contribute to the organizations goals develop better bottom line through boosting the capability of the organization to meet its objectives. A detailed plan of implementation. The 360-degree feedback is time consuming and cost consuming assessment process. Without having adequate resource to implement the process. 360-degree feedback provides increased the understanding of competence and competency in various roles 360-degree feedback extends better morale to those who perform and contribute well to the organisation 360-degree feedback reduces training costs by identifying common development needs. it will end up nowhere and develop financial burden to organisation. 360-degree feedback ensure better interpersonal relationship and group cohesiveness It promotes self-directed learning and provides a road map for employee's development planning. Effective follow-up is the prime requirement of 360-degree feedback.

specific. Many times the confidentiality of the appraisal cannot ensure from the HR department.o o o o o The trust and confidence on the employees who undergo this feedback assessment process is a determinant factor in its outcome. Many consider this appraisal as tool for downsizing. The process involves a lot of paper work. . Since the assessment is based on qualitative data many times it cannot ensure unambiguous. There are high chances of subjectivity from the management and employee part in the feed back assessment. and observable and quantifiable formats. clear.

The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Supervisors of employment. Some questioners ask yes or no questions while others ask to rate satisfaction on 1-5 scale (where 1 represents "not at all satisfied" and 5 represents "extremely satisfied"). activity in the organizations etc. The happier people are within their job. social relation on the job. although it is clearly linked. empowerment and autonomous work position . Job satisfaction is not the same as motivation. most of the executives face the problem of providing job satisfaction to the employees under their command. the work itself and co-workers. However. thus. In a narrow sense. Job design aims to enhance job satisfaction and performance. employee involvement. an internal state of person concerned. Job Satisfaction is the favorableness or un-favorableness with which the employee views his work. Job satisfaction is a very important attribute which is frequently measured by organizations. Job Satisfaction. primarily credited to Elton Mayo of the Harvard Business . promotional opportunities. Other influences on satisfaction include the management style and culture. Further his family relationship. desire and level of aspiration should be considered. prompt settlement of grievances and fair treatment by employer. the more satisfied they are said to be. more comprehensive approach requires that many factors are to be included before a complete understanding of job satisfaction can be obtained. It is more of an attitude . conditions of work. HISTORY One of the biggest preludes to the study of job satisfaction was the Hawthorne studies.INTRODUCTION OF JOB SATIAFACTION While managing human resources. variety of tasks. job enlargement. Social status. is the result of various attitudes possessed by an employee. work responsibilities. It expresses the amount of agreement between one‘s expectation of the job and the rewards that the job provides. Job satisfaction describes how content an individual is with his or her job. The nature of one‘s environment of job is an important part of life as Job Satisfaction influences one‘s general life satisfaction. these attitudes are related to the job under condition with such specific factors such as wages. Job satisfaction is not the same as motivation or aptitude. Such factors as employee‘s age. recreational outlets. Contribute ultimately to job satisfaction. job enrichment and job re-engineering. health temperature. methods include job rotation. Questions relate to rate of pay. These studies (1924–1933). Job Satisfaction is a part of life satisfaction.

stress at work. DEFINITION The term ‗job satisfaction‘ is commonly used by the academicians and the ex-ecutives. Principles of Scientific Management. self-esteem needs. workers became exhausted and dissatisfied. Job satisfaction can also be seen within the broader context of the range of issues which affect an individual's experience of work. This finding provided strong evidence that people work for purposes other than pay. ―job satisfaction is the amount of overall positive effect or feeling that indivisuals have towards their jobs‖. but from the knowledge of being observed. sought to find the effects of various conditions (most notably illumination) on workers‘ productivity. laid the foundation for job satisfaction theory. a motivation theory. Job satisfaction can be understood in terms of its relationships with other key factors. and self-actualization.L. It was later found that this increase resulted. safety needs. not from the new conditions. It should also be noted that the work of W. This theory explains that people seek to satisfy five specific needs in life – physiological needs. which paved the way for researchers to investigate other factors in job satisfaction.School. However. These studies ultimately showed that novel changes in work conditions temporarily increase productivity (called theHawthorne Effect). In the word of Feldman and Arnold. control at work. causing a shift from skilled labor and piecework towards the more modern ofassembly lines and hourly wages. Walter Dill Scott. Bryan. and Hugo Munsterberg set the tone for Taylor‘s work. Frederick Winslow Taylor‘s 1911 book. or their quality of working life. such as general well-being. Scientific management (aka Taylorism) also had a significant impact on the study of job satisfaction. and working conditions. This book contributed to a change in industrial production philosophies. social needs. This model served as a good basis from which early researchers could develop job satisfaction theories. home-work interface. Some argue that Maslow‘s hierarchy of needs theory. argued that there was a single best way to perform any given work task. . The initial use of scientific management by industries greatly increased productivity because workers were forced to work at a faster pace. thus leaving researchers with new questions to answer regarding job satisfaction.

If you dislike your job intensely. If you like your job intensely. you will experience high job satisfaction. It is his attitude towards his job.―job satisfaction is the amount of pleasure or contentment associated with a job. you will experience job satisfaction‖. Job satisfaction is an individual‘s emotional reaction to the job itself. .

friendly and co-operative. AGE Age has also been found to have a direct relationship to level job of satisfaction of employees. in other groups job satisfaction is lower and in other there is no difference at all. Certainly. MARITAL STATUS Marital status has an important role in deciding the job satisfaction. The workers derive satisfaction when the co-workers are helpful. PAY Studies also show that most of the workers felt satisfied when they are paid more adequately to the work performed by them. Good supervision results in higher production and good industrial relations. The feelings of workers towards his supervisors are usually similar to his feeling towards the company. CO-WORKERS Various studies had traced this factor as a factor of intermediate importance. Supervision is equally a strong contributor to the job satisfaction as well as to the job dissatisfaction. The relative important of pay would probably changing factor in job satisfaction or dissatisfaction.FACTORS INFLUENCING JOB SATISFACTION SUPERVISION To a worker. One‘s associates with others had frequently been motivated as a factor in job satisfaction. Bad supervision results in absenteeism and labor turnover. Most of the studies have revealed that the married person finds dissatisfaction in his job . In some groups job satisfaction is higher with increasing age. this seems reasonable because people like to be near their friends. The role of supervisor is a focal point for attitude formation.

Good working atmosphere and pleasant surroundings help increasing the production of industry. technical and governmental influences. industrial relations. social. The reasons stated to be are that wages were insufficient due to increased cost of living. Working conditions are more important to women workers than men workers. DIMENSION OF JOB SATISFACTION Job satisfaction is a complex concept and difficult to measure objectively. 3) Cultural factors: attitudes. 4) Organizational factors: Nature and size . intelligence and abilities. social. beliefs and values. personnel policies and procedures. organizational and environmental factors as stated below: 1) Individual factors: personality. technology and work organization. formal structure.marital status.age. EDUCATION Studies conducted among various workers revealed that most of workers who had not completed their school education showed higher satisfaction level. management system and working condition. 2) Social factors: Relationship with co-workers. etc. educations to children etc . However.prientation to work. 5) Environmental factors: Economic. cultural. The level of job satisfaction is affected by a wide range of variables relating to individual. educated workers felt less satisfied in their job. education. opportunities for interaction. nature of work. WORKING CONDITION The result of various studies shows that working condition is an important factor. group working and norms. informal relation.than his unmarried counterpart. . supervision and style of leadership.

Research also indicates that identical twins have similar levels of job satisfaction. compared to one who doesn‘t value that facet. and neuroticism. Having an internal locus of control (believing one has control over her\his . then Employee A would be more satisfied in a position that offers a high degree of autonomy and less satisfied in a position with little or no autonomy compared to Employee B. Judge in 1998. Locke‘s Range of Affect Theory (1976) is arguably the most famous job satisfaction model. It is a very general theory that suggests that people have innate dispositions that cause them to have tendencies toward a certain level of satisfaction. Further. proposed by Timothy A. if Employee A values autonomy in the workplace and Employee B is indifferent about autonomy. Dispositional Theory Another well-known job satisfaction theory is the Dispositional Theory Template:Jackson April 2007. When a person values a particular facet of a job. This model states that higher levels of self-esteem (the value one places on his/her self) and general self-efficacy (the belief in one‘s own competence) lead to higher work satisfaction. locus of control. the degree of autonomy in a position) moderates how satisfied/dissatisfied one becomes when expectations are/aren‘t met.MODELS OF JOB SATISFACTION Affect Theory Edwin A. Judge argued that there are four Core Self-evaluations that determine one‘s disposition towards job satisfaction: self-esteem. This theory also states that too much of a particular facet will produce stronger feelings of dissatisfaction the more a worker values that facet. This approach became a notable explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers and jobs. To illustrate. general self-efficacy. The main premise of this theory is that satisfaction is determined by a discrepancy between what one wants in a job and what one has in a job. the theory states that how much one values a given facet of work (e. A significant model that narrowed the scope of the Dispositional Theory was the Core Self-evaluations Model.g. regardless of one‘s job. his satisfaction is more greatly impacted both positively (when expectations are met) and negatively (when expectations are not met).

with Hackman & Oldham suggesting that Hertzberg's original formulation of the model may have been a methodological artifact.).The five core job characteristics can be combined to form a motivating potential score (MPS) for a job. work motivation.own life. task significance. recognition. conversely predicting all employees will react in an identical manner to changes in motivating/hygiene factors. Furthermore. Motivating factors are those aspects of the job that make people want to perform.Hygiene factors include aspects of the working environment such as pay. researchers have been unable to reliably empirically prove the model. respectively. experienced responsibility for outcomes. task identity. in turn influencing work outcomes (job satisfaction.). autonomy. company policies. Job Characteristics Model Hackman & Oldham proposed the Job Characteristics Model. and provide people with satisfaction. for example achievement in work. While Hertzberg's model has stimulated much research. or the work carried out. which is widely used as a framework to study how particular job characteristics impact on job outcomes. & Wrench. Porter. as opposed to outside forces having control) leads to higher job satisfaction. These motivating factors are considered to be intrinsic to the job. The model states that there are five core job characteristics (skill variety. absenteeism. promotion opportunities. Finally. including job satisfaction. the theory does not consider individual differences. Two-Factor Theory (Motivator-Hygiene Theory) Frederick Herzberg‘s Two factor theory (also known as Motivator Hygiene Theory) attempts to explain satisfaction and motivation in the workplace This theory states that satisfaction and dissatisfaction are driven by different factors – motivation and hygiene factors. and knowledge of the actual results). Motivation can be seen as an inner force that drives individuals to attain personal and organizational goals (Hoskinson. which can be used as an index of how likely a job is to affect an employee's attitudes and behaviors----. supervisory practices. etc. the model has been criticized in that it does not specify how motivating/hygiene factors are to be measured. An employee‘s motivation to work is continually related to job satisfaction of a subordinate. lower levels of neuroticism lead to higher job satisfaction. and feedback) which impact three critical psychological states (experienced meaningfulness. and other working conditions. Ameta- . Finally.

a view which is reflected in a research studies.  A more recent view that performance leads to satisfaction.  The relationship between satisfaction and performance is moderated y anumber of variables.analysis of studies that assess the framework of the model provides some support for the validity of the JCM. RELATIONSHIP BETWEEN SATISFACTION AND PRODUCTIVITY WORK HARD TO FORGET PRODUCTIVITY TROUBLES WORK HARD WHEN SATISFIED HAPPIEST WHEN TAKING THINGS EASY SATISFACTION RELATION BETWEEN SATISFACTION AND PRODUCTIVITY  Satisfaction leads to performance. a view associated with the early human relationship approach. .

created by Smith. Advantages of Job Descriptive Index • Extremely easy to use with all types of respondents . or can‘t decide (indicated by ‗?‘) in response to whether given statements accurately describe one‘s job.MEASURING JOB SATISFACTION There are many methods for measuring job satisfaction. and the Faces Scale. one of the first scales used widely. Job description index The Job Descriptive Index (JDI). checklists. By far. no. point systems. the Job Satisfaction Survey (JSS). and the work itself. It measures one‘s satisfaction in five facets: pay. supervision. It is an improvement to the Job Descriptive Index because the JDI focuses too much on individual facets and not enough on work satisfaction in general. the most common method for collecting data regarding job satisfaction is the Likert scale (named after Rensis Likert). coworkers. measured overall job satisfaction with just one item which participants respond to by choosing a face. Finally. Other less common methods of for gauging job satisfaction include: Yes/No questions. participants answer either yes. This data are sometimes collected using anEnterprise Feedback Management (EFM) system. The scale is simple. Kendall. promotions and promotion opportunities. The Job in General Index is an overall measurement of job satisfaction. The JSS is a 36 item questionnaire that measures nine facets of job satisfaction. and forced choice answers. is a specific questionnaire of job satisfaction that has been widely used. the Faces Scale of job satisfaction. Other job satisfaction questionnaires include: the Minnesota Satisfaction Questionnaire (MSQ). True/False questions. The MSQ measures job satisfaction in 20 facets and has a long form with 100 questions (five items from each facet) and a short form with 20 questions (one item from each facet). & Hulin (1969).

attractive surrounding. First. On the other hand. the job will provide no attraction to him. 4) Rewards: Economic rewards play a significant role in influencing job satisfaction. 3) Working condition: job satisfaction id related to working condition also. creativity or motivation does not arise. money is an important instrument in fulfilling one‘s need. Hence the question of contribution. comfortable temperature. If the employee is given a work for which he has no aptitude. DETERMINANTS OF JOB SATISFACTION 1) Nature of job: Job satisfaction is related to the appitude of the employee. towards them. it all depends on the situation. Good working condition involve such facilities as adequate light.• Most commonly used measure of job satisfaction Disadvantages of Job Descriptive Index • Shouldn’t sum across factors • Is there more to job satisfaction than just the 5 factors. respect and warmth etc. etc. employees often see pay as a reflection of . production-oriented leader may cause low job satisfaction to the employees and may effects the turnover and absenteeism adversely. Thos is because of two reasons. It is for the management to design jobs in such a manner that each worker gets the job of his own choice. Of course. displays friendship. 2) Nature of supervision: The employee-centred supervisiory style enhances job satisfaction as the leader looks after subordinates carefully. and secondly. The work will be more attractive if working conditions are congenial to the task a worker proposes to accomplish.

The workers will be loyal to the organization if their morale is higher. . If the work-group enjoys a higher status his job satisfaction will increase further . pay. It is no surprise that the employee takes promotion as the ultimate achievement in his career and when it is realized. satisfaction with job is likely to be higher and vice versa. based on job demands. 5) Opportunities of promotion: Promotional opportunities affects job satisfaction considerably. When pay is seen as fair. status and the like. Employees want a wage pay system which is simple fair and in line with their expectations. indivisuals skill levels. autonomy. responsibility. What needs emphasis is that it is not the absolute amount paid that matters. satisfaction is likely to result. 6) Nature of work group: It is the work-group that fulfills the need for social interaction of the members. he feels extremely satisfied. The desire for promotion is generally strong among higher level employees as it involves change in job content. If the worker has good relation with the fellow employees and the supervisor. 7) Employee morale: If the employee morale in an organization is higher.management‘s concern for them. rather it is one‘s perception of fairness. he will feel satisfied. the rates of absenteeism and labor turnover will also be low because psychological satisfaction from the job. and community pay standards.

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