Name

Vinni shastri

Ragistration No.

1205024960

Learning Center

Nimact Jodhpur

Learning Center Code

01856

Course

M.B.A.

Subject
Management&Appraisal
Semester
Module no.

Performance
4
MU0016

Date of submission
Marks awarded

Q.1Discuss the principles and dimensions of Performance

Management (A)Explaining the principles of Performance
Management.
(B) Explaining the dimensions of Performance
Management.
Ans. Principles of Performance Management Integration of

individual and organisational objectives: The first principle is

that the organisations and the individual goals should be aligned and
integrated. This is not to say that all that an individuals demands have to be
met always; but that the individual objectives have to be aligned with the
organisational objectives. An individual is hired to achieve some
organisational goals and the individual too joins an organisation to achieve

some of his goals. Therefore integration of the individual and organisational

goals is a natural principle in PM. When an individual is persuaded to
increase the goal or achieve stretch goals, this principle is in operation
assuming that a higher goal brings benefit to the individual as much as to
the organisation. This principle leads to the concept of meeting individual
development needs, identifying those employees with a good growth
potential and furthering the goals, identifying poor performers and rectifying
their performance, etc.

Specificity: PM should have specificity. PM goals therefore cannot be

discussed in ephemeral or vague terms. That can lead to confusion even
though we accept that the business environment has a lot of uncertainties.
More importantly, it has to be specific to the situation and the cycle of the
PM rather than based on some old events or the actions of an employee in
another PM cycle.

Measurability: PM without clear measurements agreed between the parties

in question often fail because it becomes susceptible to interpretation. Also it
becomes difficult to compare it. Hence without fulfilling this principle, it
becomes difficult to adhere to the first principle of integration mentioned
above. Without adhering to this principle, PM would be misconstrued as a
device that deals with difficult goals, however, in reality, it aims at identifying
standards of performance and understanding where every employee of the
organisation is located across the range of performance set by the
organisation.

Mutual Agreement: PM stands on mutuality and therefore the goals,

feedback and so on must be based on mutual agreement than thrust upon
the other party. This automatically caters for fulfilment of justice. Effective
performance management needs managers who not only have an open and
honest management style, but who also provide support and direction. It
implies that the managers should have a thorough understanding of their
institutional strategy and the big picture. It also implies recognising that
appraisal is not about supervision, but is more concerned with helping
individuals set strategic goals for themselves that are consistent with those
of the organisation. Mutuality leads to commitment and therefore employee
engagement.

Continuity: Performance management is not a fixed event; it is a cyclic

process centred on learning and development. Performance management
does not just happen, as is often assumed, at an annual event set up for the

purpose. Formal appraisal is but a single aspect of the process. Feedback on

progress and achievement is an important aspect of the learning cycle since
we all need high-quality regular feedback if we are to develop. Indeed,
conventional wisdom tells us that any feedback, even if negative, is better
than none at all. Managers, then, need to be not only particularly skilled in
this regard, but they must also seek every opportunity to provide feedback
to the team members.

Customisation: Performance management is a dynamic system. It is a

natural process of managing people. Performance management is the way
an organisation views its employees. This may not necessarily entail
following best practices, but rather doing what is best for the organisation.
Either way, the focus will, or should, invariably be on changing behaviour,
not paperwork. It should focus on the process, rather than the system.
Performance management works best and succeeds most when it is aligned
with the culture, climate, aspirations and values of the organisation.

Flow: Principle of flow demands that PM is a process rather than a system.

There has to be a logical sequencing so that the event unfolds like a story.
Thus setting targets may be the first necessary step, knowing the basis for
the targets based on earlier data has to be defined, the targets set have to
complement the resources and so on. These occur only if we respect the
principle of flow.

(B) Dimensions of Performance Management

Performance management involves thinking through various aspects of
performance, identifying the critical dimensions of performance, planning,
reviewing, developing and enhancing performance and related
competencies.
Performance has many dimensions. In this section we will discuss the
following dimensions of performance.

1.Output or result dimension

2. Input dimension
3.Time dimension
4.Focus dimension
5.Quality dimension

6Cost dimension.

Output dimension: Output dimension or result dimension is the most

acceptable, visible and measurable dimension of performance. It describes
the consequence of inputs. It describes the standards to be achieved in an
easily measurable form. For example, productivity, number of customers
increased, financial targets, deadlines of projects, etc. In PM parlance, these
may also be known as key result areas.

Input dimension: This dimension deals with the activities or tasks to be

accomplished by the individual. The nature of activities to be undertaken by
the individual, the time frame, the quality of inputs, etc., constitute the input
dimension. It includes other resources required for the output, for example,
new skills, money, training, etc. Performance can be managed better if the
nature of inputs required can be conceived without mistakes, planned
properly and implemented.

Time dimension: Time is another dimension of performance.

Performance can be measured for a task, for a day, for a week, for a month,
a year or for life. The time period for performance is important. In
information technology organisations, performance is evaluated over a
quarter or a three-month period. They may also be defined by tasks or
project and time, i.e., a combination. However, time is the most popular
dimension used for formal PM.

Focus dimension: Performance also has a focus dimension. The focus

can be on anything. For example, a students focus could be to learn more or
get more marks. Similarly, in defining the performance of a sales executive,
the focus of performance can be on market share, profits, new areas
covered, etc.

Quality dimension: The outcome of performance should be of a good

quality. For example, a manufacturing company which has a target of 200
pieces per day may reach the target, but if the quality of the product is
inadequate, performance could be a failure in the ultimate analysis. Thus a
quality dimension may be laid down and is usually done, although today,
quality is assumed.

Cost dimension: Cost is another dimension of performance. Costs may

be financial, or with respect to time and effort. For example, if an

organisation wants to reduce its costs it may do so by giving key result areas
(KRA) to manufacturing to reduce waste and/or giving KRA to the purchase
department to reduce the purchasing costs and/or reduce inventory cost. You
can now see how the cost dimension translates into KRA for individuals.

Q.2Assume that you have joined as an HR in an

organization. The first task assigned to you is to conduct
the Performance Appraisal Process. What according to
you is its purpose? Describe the entire Performance
Appraisal process.
(A) Explain the purpose of Performance Appraisal.
(B) Explain the Performance Appraisal Process.
Ans.2(a)

Purpose of Performance Appraisal

It is believed
that at least 90% of organisations have a formal PE and the rest do it
informally since it serves a number of organisational purposes such as the
following:
1. If organisational goals are converted into objectives and job tasks and
these are executed by employees, it follows that the effectiveness with which
tasks are performed has a direct bearing on organisational effectiveness. PE
identifies whether an individual is actually contributing to the job. For
example, five salesmen each are required to sell 1,000 pieces of a product a
month to ensure that the organisational target of 5,000 sales is met. If three
of them sell 1,200 each, another 1,000, but the fifth only 200, the
organisational targets will fall short. Through PE we can pinpoint which
employee was the reason for the shortfall and how his/her performance can
be improved, which, in turn, will improve organisational performance.
2. It helps in giving feedback of the performance, which, in turn, helps in
performance improvement. In the above example, if the fifth salesperson is
given feedback and he/she also sells 1,000 pieces next month, then the
organisation will not only meet but exceed the target.
3. Below par performance, as in the case above, can also indicate training
needs. It may be possible that our salesman in question is not able to sell
because of some skill deficiency such as lack of product knowledge or

persuasive communication. He can be trained in the skills he is lacking so

that he can meet the organisational goals.
4. It gives insight into the contribution of employees and enables an
organisation to categorise employees into high value, medium value, etc., for
promotion, compensation, retention and retrenchment. If a person lags
behind despite sufficient training, it is natural for the organisation to feel
aggrieved and stop his promotion, increment or terminate him for which
neither party should have any ill feelings because it is the consequence of
not fulfilling his/her targets despite being given organisational support.
5. It acts as a control measure and helps in evaluating the efficacy of the job
and identify whether the incumbent requires more competency or resources
to execute it effectively. For example, if the organization realises that the
other sales staff had their own vehicles, but the person who is lagging behind
is using public transport, perhaps, there is a case to provide him with
assistance to procure a vehicle (additional resources) to enable him to
perform.
6. It strengthens the communication between the subordinate and the
superior as the superior is able to intimate the requirements clearly and the
subordinate is also able to convey how he has fulfilled these. Moreover, in
the above case, existence of the evaluation enables a meaningful
communication between the manager and the sales executive.
7. Reduces grievances because it is systematically comparable.
8. Gives vital input into strategic decision making since the evidence of
existence of high levels of competency in the organisation encourages
investment decisions, expansion and the like.
9. It is important for succession planning.
10. It is a vital input to see if recruitment and selection has been effective
and gives insight into the way we create job description, publicise jobs,
select and induct.
11. It facilitates meeting several statutory requirements and often acts as an
important input in HR-related legal cases.
12. And above all, it makes a major difference to the self-worth of the
individual, his feeling of self-efficacy and self-confidence.

(b) Performance Appraisal Process

At the end of the PM cycle, the employee fills a self-appraisal form. This
process involves the following steps Employee fills the self-appraisal form
and submits to the manager: This is done in format similar to Part II of the PM
planning format we saw in the earlier section and is the starting point of PA.
In relation to each objective and KRA, the individual will record his
performance as evaluated by him. The evaluation may be figurative. For
example, met expectation, exceeded expectation, did not meet expectation,
etc. It is advisable to have a column for remarks in which the employee can
record the reasons for not meeting the expectation or to record the critical
incidents based on which he is claiming the performance.

1.Manager concurs or differs with the self-appraisal:

When
he/she does not concur, it is normal to give reasons or site critical incidents
to substantiate that. While concurring, he may agree with the incidents that
the employee has cited and may add to them.

2Manager sets up a

meeting with the employee: This is done on a one-on-one basis

and, perhaps, will take 45 minutes to one hour. The manager should prepare
in advance about the feedback he has to give.

3.They develop a dialogue and jointly evaluate the

performance: This is the most important, yet most hated part of PA. If
the employee has performed well on all sides, then it is fast, easy and
comfortable for both. If not, the manager has to give feedback (which is
discussed in detail in subsequent unit). The problems come up because the
employee may have supported the manager in several ways but may have
failed in actual performance objectives or he may not have supported the
manager in general, but may have achieved all the objectives successfully.
This makes the dialogue difficult.

4.The manager fills up the final report of the

achievements/shortfalls and gives it to the employee:

This
is important because it is linked to reward, promotions and development. The
manager has to be objective.

5.Employee concurs or gives a rebuttal: The employee should

be given a chance to rebut the decision of the manager. This is important to

meet the ends of justice. The concurrence and rebuttal should be recorded
and signed by both.

6.Rebuttal is recorded and responded by the manager: If

the employee rebuts the manager, this should be recorded as evidence. The
employee usually will reserve the right to represent his case to higher levels
of management. The manager should, therefore, be sure of the reason why
he is grading someone at a particular level, have justification and, more
importantly, have the conviction of his grading.

7.The documents are sent to HR for record: The documents

are processed to HR for post-appraisal actions.

8.Post-appraisal actions: It is the means for identifying various

human resource decisions with respect to the employee by taking
appropriate actions. It is based on the information revealed by the appraisal.
Ultimately, the appraisal records are consigned to the personal file of the
employee for future reference.

Q.3Discuss the components of a Performance

Appraisal feedback. Describe the steps in giving a
constructive Feedback.
(A)Explaining the components of Performance
Appraisal Feedback.
(B) Explaining the steps in giving a Constructive
Feedback.
Ans. Components of performance
AppraisalFeedbackFeedbacks are effective if we ensure that they are
designed well. A feedback has four components as follows:

Context: It describes the situation and one should be as specific as

possible. For a feedback related to context of keeping appointment, you
might say keeping appointment with our customeSince they are high-net
worth customers and all of them want personal attention and that too
immediately, they tend to call you often and there is always scope for clash

of timings. Behaviour: Describe the behaviour as clearly as possible. An

example: Last week you had worked with a lot of clients and you must have
been pressed for time. I can see that you had a series of tough sales calls
and you have completed them all successfully. Mr. Gopal changed his
appointment twice causing you considerable problems. However, you
managed to re-plan the visit and meet him whenever he desired to.

Impact: What was the positive or negative impact of the behaviour? An

example, Gopal had called me to tell me how diligent and time conscious
you are, and, in fact, he was apologetic for changing the appointment twice.

Next step: What kind of changes in behaviour is important or

the
importance of continuing to do something which is an important positive
behaviour. An example, I really appreciate it and hope that you will continue
to do so. It really shows your commitment to work. rs is a challenge.

(b) Steps in Giving a Constructive Feedback: You can

learn to give a good feedback if you keep in mind the
following steps.
Step 1: State the constructive purpose of your feedback or context: State
your purpose briefly by indicating what you'd like to cover and why it is
important. If you are initiating feedback, this focus keeps the other person
from having to guess what you want to talk about. If the other person has
requested feedback, a focusing statement will make sure that you direct your
feedback towards what the person needs.
For example: "I have a concern about... " "I feel I need to let you know." "I
want to discuss." "I have some thoughts about."
Step 2: Describe specifically what you have observed or give the
observation: Think of a certain event or action in mind and be able to say
when and where it happened, who was involved, and what the results were.
Stick to what you personally observed and don't try to speak for others.
Avoid talking vaguely about what the person "always" or "usually" does. For
example: "Yesterday afternoon, when you were speaking with Mrs. Sanchez,
I noticed that you kept raising your voice."
Step 3: Describe your reactions or the impact: Explain the consequences of
the other person's behaviour and how you feel about it. Give examples of
how you and others are affected. When you describe your reactions or the

consequences of the observed behaviour, the other person can appreciate

the impact their actions are having on others and on the organisation or the
team as a whole. For example: "The staff member looked embarrassed and I
felt uncomfortable watching the episode." "Shouting at our students is not an
acceptable behaviour in this department."
Step 4: Give the other person an opportunity to respond: Remain silent and
meet the other persons eye, indicating that you are waiting for an answer. If
the person hesitates to respond, ask an open-ended question and listen with
an open mind. For example: "What do you think?" "What is your view of this
situation?" "What are your reactions to this?" "Tell me, what are your
thoughts?"
Step 5: Offer specific suggestions: Whenever possible make your suggestions
helpful by including practical, feasible examples. Offering suggestions show
that you have thought past your evaluations and moved to how to improve
the situation. Even if people are working up to expected standards, they
often benefit from ideas that could help them to perform better. If your
feedback was offered supportively or neutrally, in the "for- your-information"
mode or depending on the situation's circumstances, suggestions may not be
appropriate. Use your common sense and offer anidea if you think the other
person will find it useful. Don't drum up a suggestion for improvement just
for the sake of it. For example: "You know I always write notes or put up signs
to remind myself to do something."
Step 6: Summarise and express your support: Review the major points you
discussed. Summarise the action items, not the negative points of the other
person's behaviour. If you have given neutral feedback, emphasise the main
points you have wanted to convey. For corrective feedback, stress the main
things you've discussed that the person could do differently. End on a
positive note by communicating confidence in the person's ability to improve
the situation. For example: "As I said, the way the group has figured out how
to cover phone calls has really lessened the number of phone messages to
be returned. You've really followed through on a tough problem.

Q.4Discuss the skills that a line manager require for

effective Performance Management.
(A)Listing the skills .
(B) Explaining the skills.

Ans. Skills the line managers require for effective PM. The line

managers require the following skills for effective PM:

Preparing role profiles defining key result areas and competency

requirements. Often this is done by the HR managers without consulting the
line managers. The reason is that there is a particular format in which this
has to be done and perhaps the HR managers, by training, have the ability to
do so. However, roles are executed under the line manager and he can be
considered as the subject matter expert (SME) in so far as role profiling is
concerned. Hence the line managers should not only be trained to prepare
the role profile but also be engaged fully in the process. This will make them
realise that the roles will be executed as per their requirement if, and only if,
they manage performance.

Defining goals: Often it turns out that the goals received from the top
management is neatly cut into pieces and distributed to the departments
and teams. With experience it may be possible for HR to do this, but getting
the employee and the line manager involved in a dialogue and making them
define the goals for themselves will ensure that the line manger provides
support to accomplish the goals. In fact, when so done,the line manager will
take the ownership of the goal along with the employee.

Identifying and using performance measures: This is yet

another area where the tacit knowledge of the line managers should be fully
utilised so that performance measures can be made in a way the employee
and the manager understands it. Often, the line managers are experts in
identifying the key measure that will make an employee deliver. An HR
manager may give the average production as the production expectation or
use an incremental method to set the goal while the line manager can give
measures that suit the employee. For example, he should produce 100
pieces a day even though the average number of pieces expected is only 80.
The line manager knows best that an employee can easily produce 100
pieces while another can produce only 70. Thus it is easy for him to
customise measures.

Giving and receiving feedback:

This is indeed one of the major

problems for the line manager. Usually they shy away from it. This is because
the line manger feels that he will hurt the feeling of the employee when he
gives a poor performance feedback and that the employee may have
negative feeling which in turn affects production. The reality is vice versa.

Feedback also involves some expertise in managing emotions. Hence the line
managers have to be trained in doing so.

Taking part in the performance dialogue:

This is yet another

area which the line manager cannot address without due training. For a line
manager, daily production is the crucial issue and therefore he often finds
that getting involved in a performance dialogue is a waste of time. However,
once he realises that his ability to control production, which is undoubtedly
his focus, is better achieved through performance dialogue, he agrees to
take part in performance dialogue.

Identifying the learning needs and arranging for learning

and development: The line manager is perhaps most suited to identify
the learning requirement of the employee. Usually, the line manager
complains when an employee has to be sent for training as he loses a
working hand; but if he is convinced that the rise in productivity of the
employee more than makes up for the time lost, he would be willing to
handle it better and, more importantly, help the employee to put the new
skill into practice.

Diagnosing and solving performance

problems: A line manager is constantly with the employee and can

therefore observe and identify the problem of production and rectify these in
time.

Coaching: A line manager is the person who can act as a coach and
mentor to the employee because of the day-to-day proximity and
interpersonal relationship that he enjoys. It is possible that he does not have
the skill to do it; but can be easily trained in it.

Q.5Describe the modern methods of Performance Appraisal

Explain all the five modern methods of Performance Appraisal.
Ans.