Internal Evaluation Number 3


E x e c u t i v e F u l l Time PGDM  ( 2009-2010 ) Trimester 2 S y m b i o s i s I n s t i tu t e o f Man ag emen t S t u d i es

Question 1: Describe HRM as a process and explain its relevance in today's era.
Answer: Introduction A basic concept of management states that manager works in organizations. Organization has three basic components, People, Purpose, and Structure. HRM is the study of activates regarding people working in an organization. It is a managerial function that tries to match an organization’s needs to the skills and abilities of its employees. Management.For simplicity, we can say that it is the management of humans or people. HRM is a managerial function that tries to match an organization’s needs to the skills and abilities of its employees. Human Resource Management is responsible for how people are managed in the organizations. It is responsible for bringing people in organization helping them perform their work, compensating them for their work and solving problems that arise. Functions of HRM Basic functions that all managers perform: planning, organizing, staffing, leading, and controlling. HR management involves the policies and practices needed to carry out the staffing (or people) function of management. HRM functions can be broadly classified into •Societal Objectives : Organization becomes socially responsive •Organizational Objectives : HRM is not standalone department but its means to achieve organizational objectives. •Functional Objectives : HRM has only functional value & should not become too expensive at the cost of the organization it serves •Personal Objectives : Assist employees to achieve their personal Goals. Following are some of the important functions of HRM. • Staffing (HR planning, recruitment and selection) • Human resource development
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• Compensation and benefits • Safety and health • Employee and labor relations • Records maintaining, etc. • HR research (providing a HR information base, designing and implementing employee communication system). • Interrelationship of HR functions. HRM as Process HRM is not a one time job. Its an ongoing process. All the functions of HRM needs to carried out thought organization life span. Like any management process HRM start with planning & forecasting also called as HRP. Following are list of activities needs to be following in HRM process. • Human Resource Planning: HRP is the process of systematically reviewing human resource requirements to ensure that the required number of employees, with the required skills, is available when they are needed. After an organization’s strategic plans have been formulated, human resource planning can be undertaken. Human resource planning has two components: requirements and availability. Forecasting human resource requirements involves determining the number and type of employees needed by skill level and location. In order to forecast availability, the human resource manager looks to both internal sources (presently employed employees) and external sources (the labor market). • Job Analysis & Job Design Job Analysis is the SYSTEMATIC process of collecting and making judgments about all the important information related to a job. Job analysis is the procedure through which you determine the duties and nature of the jobs and the kinds of people who should be hired for them. • Recruitment Recruiting refers to the process of attracting potential job applicants from the available labor force. Every organization must be able to attract a sufficient number of the job candidates who have the abilities and aptitudes needed to help the organization to achieve its objectives.
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• Selection Selection is the process of choosing from a group of applicants those individuals best suited for a particular position. • Induction & orientation : Making new hire employes familiar with organization & placing them into right department. • Training & Development : The heart of a continuous effort designed to improve employee competency and organizational performance. Training typically focuses on providing employees with specific skills or helping them correct deficiencies in their performance. • Performance Management: Performance appraisal is a system of review and evaluation of an individual or team’s job performance. An effective system assesses accomplishments and evolves plans for development. • Career development Career can be defined as a general course of action a person chooses to pursue throughout his or her working life. Career planning is an ongoing process through which an individual sets career goals and identifies the means to achieve them. The process by which individuals plan their life’s work is referred to as career planning. Through career planning, a person evaluates his or her own abilities and interests, considers alternative career opportunities, establishes career goals, and plans practical developmental activities. • Compensation, Benefits & Safety : Total compensation constitutes of two types of the rewards which are direct rewards and indirect rewards. Direct rewards include the salaries wages, commission, bonuses and gain sharing all of these rewards are directly paid to employees in monetary or financial terms, second type of the rewards are benefits provided by organization. Benefits are not direct payments in financial terms. • Managing separation & rightsizing Separation occur when the employee leaves organization. It can be voluntary like quits ,Retirements or involuntary like discharge,layoff,retrenchment,VRS & rightsizing.


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• Respond to external environment Organization has two type of environment 1. Internal & 2. External. Its job of HR department to have peaceful Industrial relation & resolve disputes as soon as possible. It is also important to manage Trade Unions . So to remain competitive its very important for HR to be responsive to internal & external environmental changes.

Relevance Today
Today’s organizations are facing challenges upon following levels: •Environmental Challenges •Organizational Challenges •Individual Challenges Environmental Challenges Environmental challenges refer to forces external to the firm that are largely beyond management’s control but influence organizational performance. They include: rapid change, the internet revolution, workforce diversity, globalization, legislation, evolving work and family roles, and skill shortages and the rise of the service sector. Environmental challenges today are: a) Rapid change, ( Galloping Expansion of Business) b) Work force diversity & globalization d) Legislation, e) Technology f) Evolving work and family roles, g) Skill shortages and the rise of the service sector To manage all above mention changes HR department must be equipped with right tools & information. HR department can assist business strategy to work by addressing above mention issues.HR policies can help or hinder a firm grappling with external change


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Organizational Challenges Organizational challenges refer to concerns that are internal to the firm. However, they are often a byproduct of environmental forces. These issues include: competitive position (cost, quality, and distinctive capability), decentralization, downsizing, organizational restructuring, self-managed work teams, small businesses, organizational culture, technology, and outsourcing. An organization will outperform its competitors if it effectively utilizes its work force's unique combination of skills and abilities to exploit environmental opportunities and neutralize threats. HR policies can influence an organization's competitive position by a) Controlling costs, b) Improving quality, and c) Creating distinctive capabilities ci) Restructuring

Individual Challenges Human resource issues at the individual level address concerns that are most pertinent to decisions involving specific employees. These issues almost always reflect what is happening in the larger organization. How individuals are treated also is likely to have an effect on organizational issues. For instance, if many key employees leave a firm to join its competitor, it will affect the competitive posture of the firm. The individual issues include matching people and organization, ethics and social responsibility, productivity, empowerment, brain drain, and job insecurity. Only managers who are well informed about important HR issues and organizational challenges can resolve address this issues effectively. Hence we can say that importance of HRM in todays dynamic changing word is increasing like never before.


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Question 2: Define Training, eduction and development. Discuss various methods and steps in training process in detail. Answer: Introduction
Training & Development is on going process in any organization. The basic purpose of training & Development are as follow. 1. Increase Productivity of employees & improve profitability 2. Improves the job knowledge & skills throughout the organization 3. Helps employees identify with organizational goals. 4. Effective decision making & problem solving skills. 5. Helps to create better corporate image. 6.Provides competitive advantage to firm. 7. Increase health & safety of employee by reducing chances of accidents, scarp & damages. In general sense training,development & education are treated as same but there is difference between these terms. Training : Training refers to process of imparting specific skills. Example :- learn Accounting software, operating particular machine, Induction training, soft skills training. Training programs mostly deals with teaching particular or set of skills to the employees. Skills can be motor skills, interpersonal skills or people skills as required by particular job. Education: Education can be define as process of learning theoretical concepts in the class room Example: MBA classes The whole objective of education is to teach theoretical concepts & develop sense of reasoning & judgement. Most of the companies today encourage their employees to take part


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time educational courses like MBA. Educations is vary important for managers & executives than lower cadre workers. Development: Development refers to the learning opportunities designed to help employees grow. Development is less skill-oriented but more stressed upon knowledge. Its continues & long term process. Knowledge can be about Business Environment , Management Principle & techniques , human relation & specific industry analysis. Training Vs Education

training deals with application of skills in Education is theoretical in nature the job Training can be on-job as well as classroom education is mostly classroom training

Training has narrow prospective it deals with education is broad prospective deals specific skills Training Vs Development

with general concepts

mostly deal with current job

development is mainly for future job. Job employee might fit in future.

Mostly deals with technical aspect of job

Conceptual in nature

main objective is to improve skill sets & job Main objective is to prepare employees performance Its short-term & periodic process for future responsibility Its long-term & ongoing process.


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Training Process
As discussed earlier training is one of the most important activity, which should be followed to remain completive in the market. Knowing this fact most of the organization spend heavy amount on training & development of employees. Although said that training is effective only when its sync with organizational objectives. Training to be effective should follow certain process. Following diagram will show overall training process.

Training Process
Needs Assessment

Instructional Objective

Development of Criteria

Training Validity

Transfer Validity Selection & Design of instructional programs Intra Organizational Validity


Use of evaluation models

Inter Organizational Validity


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Following are steps in training process 1. Need Assessment Need assessment helps to find out present problem & future needs to be met through training & development. Todays organizations spends lot of resources on training & if training need is not analyzed properly it could lead to wastage of precious resources & time. Training requirement can be due to individual needs or group needs. a. Organization Support : Need assessment should be supported by organization so that disruption is less b. Organizational analysis: Seeks to examine the goals of the organization & trends that are likely to affect these goals c. Task & KSA analysis: Task analysis is important aspect of need assessment. It is necessary to assess & identify what are skils & abilites (KSA) are necessary to perform these tasks. d. Personal analysis : Its more focused on individual employees. it helps to determine which KSA

2. Deriving instructional objectives Once training needs are assessed, training and development goals must be established. Without clearly set goals, it is not possible to design a training and development programme and, after it has been implemented there will be no way of measuring its effectiveness. Goals must be tangible, verifiable, and measurable. This is easy where skills’ training is involved. Example The successful trainee will be expected to calculate sales figure.


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Nevertheless, clear behavioral standards of expected results are necessary so that the programme can be effectively designed and results can be evaluated. 3.Designing of training & development program Every Training program should answer following questions a. Who participates in the program ? b. Who are the trainers ? c. What Methods & techniques used for training ? d. Level of training e. learning principles f. location of training Who are the trainers: Trainers should be selected on the basis of self-nomination, recommendations of supervisors or by the HR department itself. Whatever is the basis, it is advisable to have two or more target audience. It is also important to outline level of training required. excess or shortage of training program will not help to achieve set objectives. Training & development programs are likely to be effective when they incorporate the principles of learning like Employee motivation, Reinforcement, goals, meaning of material & transfer of learning. The final step towards designing training program is to decided where training program should be conducted. 1. At job itself 2. On site but not on the job 3. Off the site. 4.Methods and Techniques of training

Various methods of training is used to train employees. Training methods are categorized into two groups (i) on the job training and (ii) off-the job methods. On the job training: refers to methods that are applied in the workplace, while the employees is actually working.


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On-job training

1.Tailor-made course content with use of REAL company situations/examples. 2. It is usually less expensive than off-job training. 3.Learning will take place using the equipment which will be actually used 4.Trainees acclimatize more rapidly

1.Possibility of poor instruction and insufficient time. 2.Trainee may be exposed to bad work practices. 3.A large amount of spoiled work and scrap material may be 4.produced ,Valuable equipment may be damaged. 5.Training takes place under production conditions that are stressful, i.e. noisy, busy, confusing and exposing the trainee to comments by other workers.

Types of on-Job training

1.Orientation training 2. Job-instruction training 3.Apprentice training 4.Internships and assistantships 5.Job rotation 6.Coaching


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Off-job training

1. A specialist instructor enables delivery of high quality training. 2. Wider range of facilities and equipment are available. 3. The trainee can learn the job in planned stages. 4. It is free from the pressures and distractions of company life. 5. It is easier to calculate the cost of off-job training because it is more self-contained 6. Cross-fertilisation of ideas between different companies.

1. Can result in transfer of learning difficulties when a trainee 2. changes from training equipment to production equipment. 3. No training can be entirely off-job as some aspects of the task can only be learned by doing them in the normal production setting, with its own customs and network of personal relationships. 3.Can be more expensive. 4.Carrying out the training

Type of Off-the –job training:
1.• Vestibule 2.• Lecture 3.• Special study 4.• Films 5.• Television 6.• Conference or discussion 7.• Case study


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8.• Role playing 9.• Simulation 10.• Programmed instruction 11.• Laboratory training Vestibule Training: This training method attempt to duplicate on-the-job- situation in a company classroom. It is a classroom training that is often imported with the help of the equipment and machines, which are identical with those in use in the place of work. This technique enables the trainees to concentrate on learning new skill rather than on performing on actual job. This type of training is efficient to train semi-skilled personnel, particularly when many employees have to be trained for the same kind of work at the same time. Often used to train – bank tellers, inspectors, machine operators, typists etc. In this, training is generally given in the form of lectures, conferences, case studies, role-play etc. Lectures: Lecture is a verbal presentation of information by an instructor to a large audience. The lecture is presumed to possess a considerable depth of knowledge of the subject at hand. A virtue of this method is that is can be used for very large groups, and hence the cost per trainee is low. This method is mainly used in colleges and universities, though its application is restricted in training factory employees. Limitations of the lecture method account for its low popularity. The method violates the principle of learning by practice. It constitutes a one-way communication. There is no feedback from the audience. Continued lecturing method can be made effective it if is combined with other methods of training. Audio-visuals: Audio-visuals include television slides, overheads, video- types and films. These can be used to provide a wide range of realistic examples of job conditions and situations in the condensed period of time. Further, the quality of the presentation can be controlled and will remain equal for all training groups. But, audio-visuals constitute a one-way system of communication with no scope for the audience to raise doubts for clarification. Further, there is no flexibility of presentation from audience to audience.


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5. Programmed Instruction (PI): This is method where training is offer without the intervention of a trainer. Information is provided to the trainee in blocks, either in a book form of through a teaching machine. PI involves: 1. Presenting questions, facts, or problems to the learner 2. Allowing the person to respond 3. Providing feedback on the accuracy of his or her answers 4. If the answers are correct, the learner proceeds to the next block. If not, he or she repeats the same. 6. Computer-Assisted Instruction (CAI): this is an extension of the PI method. CAI provides for accountability as tests are taken on the computer so that the management can monitor each trainee’s progress and needs. CAI training program can also be modified easily to reflect technological innovations in the equipment for which the employee is being trained. This training also tends to be more flexible in that trainees can usually use the computer almost any time they want, thus get training when they prefer.

7. Apprenticeship: This method of training is usually done in crafts, trades and in technical areas. It is the oldest and most commonly used method, if the training is relatively for a longer period. Here a major part of training is spent on the job productive work. Each apprentice is given a programme of assignments according to a pre-determined schedule, which provide for efficient training in trade skills.

8. Simulation: A simulator is any kind of equipment or technique that duplicates as nearly as possible the actual conditions encountered on the job. Simulation then, is an attempt to create a realistic decision-making environment for the trainee. Simulations present likely problem situations and decision alternatives to the trainee. The more widely held simulation exercises are case study, role-playing and vestibule training.

9. Conference: In this method, the participating individuals confer to discuss points of common interest to each other. It is a basic to most participative group centered methods of developments. This emphasis on small group discussion, on organized subject matter and on the active participation of the members involved.
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There are three types of conferences, * Direct discussion: - Here trainer guides the discussion in such a way that the facts, principles or concepts are explained. * Training Conference: - The instructor gets the group to pool its knowledge and past experience and brings different points of view to bear on the problem. * Seminar Conference: - In this method instructor defines the problem, encourages and ensures the full participation in the discussion.

10. Case Studies: This method is developed in 1800S At the Harvard Law School. The case study is based upon the belief that managerial competence can best be attained through the study, contemplation and discussion of concrete cases. When the trainees are given cases to analyse, they are asked to identify the problem and recommend tentative solution for it. The case study is primarily useful as a training technique for supervisors and is specially valuable as a technique of developing discussion-making skills, and for broadening the prospective of the trainee. In case study method the trainee is expected to master the facts, should acquainted with the content of the case, define the objective sought in dealing with the issues in the case, identify the problem, develop alternative courses of action, define the controls needed to make the action effective and role play the action to test its effectiveness and find conditions that may limit it. 11. Role Playing :In role-playing trainees act out the given role as they would be in stage play. Two or more trainees are assigned parts to play before the nest of the class. Here role players are informed of a situation and of the respective roles they have to pay. Sometimes after the preliminary planning, the situation is acted out by the role players. This method primarily involves employee-employer relationship – Hiring, firing, discussing a grievance procedure, conducting a post appraisal interview etc.
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12. Programmed Instructions: This method involves a sequence of steps that are often set up through the central panel of an electronic computer as guides in the performance of desired operation or series of operations. This method involves breaking information down into meaningful units and then arranging these in a proper way to form a logical and sequential learning. The programme involves – presenting questions, facts or problems to trainees to utilize the information given and the trainee instantly receive feedback on the basis of the accuracy of his answers.

To be really effective, the training methods must fit in training programme needs to find out how effective the methods are in accomplishing their goals of modifying skills, attitudes and ultimate behaviour.

12. Implementation of training program Once the training program has been designed, its needs to be implemented. The program implementation requires action on the following lines 1. Deciding location & organizing training & other facilities 2. Scheduling the training program 3. Conducting training program 4. Monitoring the progress of trainees. 13.Evaluation of the program The last step in the training & development process is the evaluation of results. Following are benefits of Evaluation
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1.To monitor the quality of training. 2.Provide feedback. 3.To appraise the overall effectiveness of the investment in training 4.To assist the development of new methods of training 5.To aid the individual evaluate his or her own learning experience. Methods of Evaluation Various methods can be used to collect data on the outcomes of training. Some of these are: Questionnaires: Comprehensive questionnaires could be used to obtain opinion reactions, views of trainees. Tests: Standard tests could be used to find out whether trainees have learnt anything during and after the training. Interviews: Interviews could be conducted to find the usefulness of training offered to operatives. Studies: Comprehensive studies could be carried out eliciting the opinions and judgments of trainers, superiors and peer groups about the training. Human resource factors: Training can also be evaluated on the basis of employee satisfaction, which in turn can be examined on the basis of decrease in employee turnover, absenteeism, accidents, grievances, discharges, dismissals, etc. Cost benefit analysis: The costs of training (cost of hiring trainers, tools to learn training centre, wastage, production stoppage, opportunity cost of trainers and trainees) could be compared with its value (in terms of reduced learning time improved learning, superior performance) in order to evaluate a training programme. Feedback: After the evaluation, the situation should be examined to identify the probable causes for gaps in performance. The training evaluation information. (about costs, time spent, outcomes, etc.) should be provided to the instructors’ trainees and other parties concerned for control, correction and improvement of trainees' activities. The training evaluator should follow it up sincerely so as to ensure effective implementation of the feedback report at every stage.


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Question 3: What is performance Appraisal? Discuss various methods of performance appraisal.
Answer: INTRODUCTION Today’s working culture demands a great deal of commitment and effort from the employees, who in turn naturally expect a great deal more from their employers. The development of much more participative style of management in many organizations is a positive step towards meeting such heightened expectations. This participative style can be expressed in a variety of practical ways. For eg: work teams, quality circles, and of course regular performance appraisals. Appraising the performance of individuals and groups and organizations has been a common practice in all societies. While in some instances, these appraisal processes are structured and formally sanctioned, in other instances they are informal and integral part of daily activities. Performance appraisal is the method of evaluating the behavior of an employee at the work place, normally including both quantitative and qualitative aspects of job performance. Performance here refers to the level of accomplishments. In the sense that there are expectations from every person in an organization, a certain level of output or performance is expected from all. How an employee actually performs in the light of the expectations determines whether his performance is exceptional, good, average or below that. It is always measured in term of results. This process has very a high implication on various other HR functions, like recruitment, training, manpower planning etc. It is important that the employees are aware of their goals, how to achieve them, how they are matching up to them, what should be done if they are not. There is not one right way of doing the performance appraisals. The most appropriate route to be taken will depend upon the current style and status of the organization. People do have a negative attitude about the performance appraisals. Many have the complaints such as, “It’s just yearly rollicking”, or “It is like school report time” or “Nothing comes out of it anyway.” A significant consideration in choosing how to go about introducing or revising a performance appraisal scheme will be an understanding of how such attitudes have been perpetuated and how they might be overcome. People carry bad experiences with them for a long time, in this case, perhaps from job to job. Much has to be done at the time of introducing or revising a performance appraisal scheme to reassure those who will be involved that the intentions behind conducting the performance appraisal are sincere and positive.
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Performance appraisal must be seen as an intrinsic part of a manger’s responsibilities, not an unwelcome an time consuming addition to them. It is about improving performance and ultimately the effectiveness all apart of the manager’s remit.

1.1 MEANING AND DEFINITION: In simple terms performance appraisal may be understood as the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality, quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, verstality, health, and the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed. A formal definition of performance appraisal is: “It is the systematic evaluation of the individual with respect to his or her performance on the job and his of her potential for development.”

There are various methods available for measuring quantity & quality of employees job performance. Broadly these methods can be classified into two groups 1. Past oriented methods 2. Future oriented methods PAST – ORIENTED METHODS • Rating scales: This is the simplest and most popular technique for appraising employee performance. The typical rating-scale system consists of several numerical scales, each representing a job – related performance criteria such as dependability, initiative, output, attendance, attitude, co-operation, etc.


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Dependability Initiative Over all output Attendance Attitude Co-operation

Excellent 5 -

Good 4 -

Ac ceptabl e 3 -

Fai r 2 -

Poor 1 -

Quality of work Total Total s core


Each scale ranges from excel linked to salary increase, whereby so many points equal a rise often to poor. The appraiser checks the appropriate performance level on each criterion, and then computes the employee’s total numerical score. The number of points scored may be linked to salary increase, whereby so many points equal a rise of percentage.
Instruction : F or the foll owing performances fa ct ors please indicate on the rating Scale your evaluation of the em pl oyee named below. Employee’s Name: Rater ’s Name: Departm ent : Date:

Rating scales offer the advantages of adaptability, relatively easy use and low cost. Nearly every type of job can be evaluated with the rating scale, the only requirement being that the job – performance criteria should be changed. This way, a large number of employees can be evaluated in a short time, and the rater does not need any training to use the scale. The disadvantages of this method are several. The rater’s biases are likely to influence evaluation and the baises are pronounced in subjective criteria such as co-operation, attitude and initiative. Moreover, numerical scoring gives an illusion of precision that is really unfounded.


In this method, a checklist of statements on the traits of the employee and his or her job is prepared in two columns viz. a ‘Yes’ column and a ‘No’ column. All that the rater (immeH R M Himanshu Ahire


diate superior) should do is tick the ‘Yes’ if the answer to the statement is positive and in the column ‘No’ if the answer is negative. After ticking off against each item, the rater forwards the list to the HR department where the actual assessment of the employee takes place and the actual evaluation is done by the HR department. The HR department assigns certain points to each ‘Yes’ ticked. Depending on the number of ‘Yes’ the total score is arrived at. When points are allotted to the checklist it becomes weighted checklist. The advantages of this method are economy, ease of administration, limited training of rater, and the standardization. The disadvantages include, susceptibility to rater’s baises, use of personality criteria instead of performance criteria, misinterpretation of checklist items, and the use of improper weights by the HR department, it also does not allow the rater to give up relative ratings.
Yes 1. Is the employee real ly interested in the j ob? 2. Does he/ she pos sess adequate knowledge about the job? 3. Is his/her attendance sa tisfactory? 4. Does he/she maintain the equipment in a good condition? 5. Does he/she co-operate with co-workers? 6. Does he/she obs erve sa fety precautions? 7. Does he/she complete what he/she comm enc es? 8. Does he/she evade the responsibility? No -

• Forced Choice Method: In this the rater is given a series of statements about an employee. These statements are arranged in blocks of two or more, and the rater indicates which statement is most or least descriptive of the employee. Typical statements are: Learns fast………………..Works hard. Work is reliable…………..Performance is a good example for. Absents often……………..Others usually tardy. The rater is simply expected to select statements, which are readymade. The advantage of this method is the absence of personal bias in rating. The disadvantage is that the statements may not be properly framed- they may not be precisely descriptive of the ratee’s traits.


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• Forced Distribution Method One of the errors in rating is leniency-clustering a large number of employees around a high point on rating scale. The forced distribution method seeks to overcome the problem by compelling the rater to distribute the ratees on all points on the rating scale. The method operates under assumption that the employee’s performance level conforms to a normal statistical distribution. Generally, it is assumed that employee performance level conforms to a bell shaped curve. The major weakness of the forced distribution method lies in the assumption that employee performance level always conform to a normal (or some other) distribution. In organizations that have done good job of selecting and retaining only the good performers, the use of forced distribution approach would be unrealistic as well as possibly destructive to the employee morale.

• Critical Incidents Method: The critical incidents method of employee assessment approach focuses on certain critical behaviors of an employee that make all the difference between effective and non-effective performance of a job. Such incidents are recorded by the superiors as and when they occur. One of the advantages of the critical incidents method is that the evaluation is based on actual job-behavior. Giving job-related feedback to the employee is also easy. However, the following drawbacks are there: Negative incidents are generally more noticeable than the positive ones. The recording of incidents is a chore to the supervisor and may be put off and easily forgotten. Overly close supervision may result.


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• Behaviorally Anchored Scale

In this approach, broad categories of practice are identified, ideally through collaborations between supervisors and staff. Specific job behaviors are then linked to the categories. Measures of staff member behavior are rated on a scale in relation to specific behavior items, such as “understands department functions”. Job dimensions usually yield similar broad categories, such as planning, setting priorities, and responsiveness to supervision. Categories such as these may be useful in framing evaluation criteria in this approach to appraisal. Another means of approaching behavior- based appraisal is the behavioral frequency scale. Here, desired behaviors are described and the staff member is evaluated on how often those behaviors occur.

• Field Review Method This is an appraisal by someone outside the assessee’s own department, usually by someone from the corporate office or the HR department. The outsider reviews employee records and holds interviews with the ratee and his/ her superior. The method is used primarily for making promotional decisions at the managerial level. Field reviews are also useful when comparable information is needed from employees in different units or locations. The disadvantages of this method are: An outsider is usually not familiar with the conditions in an employee’s work environment that may affect the employee’s ability or motivation to perform. An ‘outsider’ review does not have the opportunity to observe employee behavior of performance over a period of time and in a variety of situation but only in an artificially structured interview situation which extends over a very short period of time.


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• Performance Tests and Observations: With a limited number of jobs, employee assessment may be based upon a test of knowledge or skills. The test must be reliable and validated to be useful. Even then, performance tests are apt to measure potential more than actual performance. In order to test to be job related, observations should be made under circumstances likely to be encountered. Practically it may suffer from the costs of test development or cost of administration.

• Essay Method: In the essay method, the rater must describe the employee within a number of broad categories, such as: The rater’s overall impression of the employee’s performance. The promotability of the employee. The jobs that employee is now able or qualified to perform. The strengths and weakness of the employee. The training and assistance required by the employee.

This method is useful in filing the information gaps about the employees that often occur in the better-structured checklist method. However, the major drawback can be that many raters do not have good writing skills. They become confused about what to say, how much they should state and the depth of narration. Another problem with this method is that the ratees may be rated on the quality of the appraisal that they give. The quality standard for the appraisal may be influenced by appearance rather than content. Thus, a ‘high quality’ appraisal may provide little useful information about the performance of the ratee. • Cost Accounting Method: This method evaluates performance from the monetary returns the employee yields to his/ her organization. A relationship is established between the cost included in keeping the employee and the benefit the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit.


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• Comparative Evaluation Approaches: There are two methods that are used to compare one worker’s performance to that of his or her co-worker. • Ranking Method: In this, the superior ranks his or her subordinates in the order of their merit, starting from the best to the worst. All that the HR department knows is that A is better than B. The ‘how’ and ‘why’ are not questioned. No attempt is made to fractionalize what is being appraised into component elements. To avoid the biases, two or more people can do rankings and then average can be taken. Its advantages include ease of administration and explanation. • Paired-Comparison Method: Under this method, the appraiser compares each employee with every other employee, one at a time. For example, there are five employees named A,B,C,D and E. The performance of A is first compared to B and a decision is made about whose performance is better. Then A is compared with C,D,E in that order. The same procedure is repeated for other employees. The number of comparisons may be calculated with the help of a formula: N(N-1)/2, where N stands for the number of employees to be compared. If there are 10 employees, the number of comparisons will be 10(10-1)/2=45. After the completion of the comparison, results can be tabulated and rank is created from the number of times each person is considered to be superior.

• Management By Objectives (MBO): MBO emphasizes participation by all organization members. The following core elements in MBO: •Formation of trusting and open communication throughout the organization •Mutual problem solving and negotiations in the establishment of objectives •Creation of win-win relationships •Organizational rewards and punishments based on job-related performance and achievement. •Minimal uses of political games, forces and fear. •Development of a positive, proactive, and challenging organizational climate.
H R M Himanshu Ahire


Following are the 6 steps in the MBO process: 1.Formulate long range goals and strategic plans 2.Develop overall organizational objectives 3.Established derivative objectives for major operating units 4.Set realistic and challenging objectives and standards of performance for members of the organization. 5.Formulate action plans for achieving the stated objectives 6.Implement the action plans and take corrective action when required to ensure the attainment of objectives. MBO evaluation report for a call center person:
Objec tives se t Number of calls Number of new cus tom ers contacted Number of deals cracked Customer complaints Number of reports in home office Number of s ales correspondence cour ses succe ss fully completed Deals failed Pe riod object ives Accompli shm en ts 100 20 30 34 12 4 2 104 18 30 11 10 2 0 variance 104 90 100 66.66 80 50 0

• Psychological Appraisals: Large organizations employ full-time industrial psychologist. When psychologists are used for evaluations they assess an individual’s future potential and not past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations. The psychologist then writes an evaluation of the employee’s intellectual, emotional, motivational and other related characteristics that suggest individual potential and may predict future performance. From these evaluations, placement and development decisions may be made to shape the person’s career.
H R M Himanshu Ahire


• Assessment Centers: An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. The principle idea is to evaluate managers over a period of time, say by one to three days, by observing and evaluating their behavior across a series of selected exercises or work samples. Assesses are requested to participate in work groups (without leader), role-playing and other similar activities, which require the same attributes for successful performance, as in the actual job. After recording their observation of ratee behaviors, the raters meet to discuss these observations. The decision regarding the performance of each assessee is based upon this discussion of observations.

•360 Degree Feedback: Where multiple raters are involved in evaluating performance, the technique is called 360o appraisal. The 360o technique is understood as systematic collection of performance data on an individual or group, derived from a number of stake holders- stakeholders being the immediate supervisors, team member, customers, peers, and self. In fact, anyone who has useful information on ‘how an employee does the job’ may be one of the appraisers. It enables an employee to compare his or her perceptions about self with the perceptions of others. However, receiving feedback on performance from multiple sources can be intimidating. It may also take a long time on selecting the rater, designing questionnaire, and analyzing the data.

• Performance Interview: Performance interview is another step in the appraisal process. The raters should discuss and review the performance with the ratees, so that they will receive the feedback about where they stand in the eyes of superiors. Feedback is necessary to effect.


Himanshu Ahire