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SOLUTION TO ASSIGNMENT

NAME
ROLL NO
SUBJECT

PUSHPA GUPTA
PERFORMANCE MANAGEMENT AND
APPRAISAL (MU0016)

Question 1. Discuss the principles and dimensions of Performance Management.


Answer.
1.

Principles Of Performance Management (PM):(a)


Integration of Individuals and Organizational Objectives.
The
organizations and the individual goals should be aligned and integrated. However, it
does not necessarily mean that an individuals demands have to be met always.
(b)
Specificity. PM goals should not be discussed in the passing as it can lead
to confusion. They have to be specific to the situation and the cycle of the
performance management rather than based on some old events or the actions of an
employee in another performance management cycle.
(c)
Measurability. To ensure integration PM should be clearly measurable as
agreed between the parties in question. This often fails because it becomes
susceptible to interpretation.
(d)
Mutual Agreement. PM is dependent on a mutual agreement and therefore
the goals; feedback and so on must be based on mutual agreement than thrust upon
the other party.
(e)
Continuity. PM is not a fixed event and it is a cyclic process concentrated on
learning and development.
(f)
Customization. Performance management is a dynamic system and is a
natural process of managing people. It is a way an organization views its employees.
(g)
Flow. Principles of flow demand that PM is a process rather than a system.
There has to be a logical sequencing so that the event unfolds like a story.

2.

Dimensions of PM.
(a)
Output Dimension. Results and outputs are the most accepted, visible and
measurable dimension of performance. It describes the standard to be achieved in
an easily measurable form. These give the status and summary of the finished and
semi-finished products and services and describe the results in terms of the
measurable standard, for example, achieving 95 per cent of the standard output in a
shop floor engaged in production of plastic moulded rifle butts. Some examples of
results and outputs are the number of new customers, cost savings, production
targets, sales targets, job accomplishments, meeting deadlines, etc.
(b)
Input Dimension. The input dimension consists of tasks and activities
accomplished by the individual. Broadly this is concerned with the nature of activities
to be undertaken, the time frame, the quality of inputs to be used, etc. Input
dimensions of performance can be better managed when the envisaged inputs are
correctly used, properly planned and implemented. The nature of activities to be
undertaken by the individual, the time frame, the quality of inputs, etc.
(c)
Time Dimension. This dimension of performance is defined in terms of time
specific tasks, that is, tasks to be performed daily, weekly, monthly, yearly, etc. Here

the time factor is important, as achieving the desired performance level within
specified time frame is considered to be the target. Performance can be measured
for task, for a day, for a week, for a month, for a year or for life.
(d)
Focus Dimension. Focus dimension of performance is measured in terms of
the performance focus, which could vary from employee to employee depending on
the nature of job responsibilities. For example, an HR executive's performance focus
may be defined in terms of reducing the rate of attrition, cost-effective design of
compensation, developing employees competence, etc. Similarly, for a marketing
executive, this could be new market development, increasing the sales realization,
etc. Thus depending on the nature of job, performance focus may vary
(e)
Quality Dimension. The outcome of performance should be a good quality.
Fundamental characteristics are Customer orientation and Prevention approach to
errors. The goal being improving customer satisfaction.
(f)
Cost Dimension. Cost is another dimension of performance. Costs may be
financial, or with respect to time and effort. There is a need to introduce econometric
methods to measure cost effectiveness, and relate cost effectiveness to variables of
performance management practices.

Question 2. What do you mean by feedback? Explain its Role, Types and Principles.
Answer.
1.
Feedback. Feedback is the giving back of information to employees on their
performance in terms of results, events, critical incidents and significant behaviour during
the period under review during appraisal. It is a useful tool to indicate to the employee that if
he/she is going in the right direction or in case there is a need to redirect their effort. The
main aim is to provide guidance either to support effective behaviour or to change the noteffective behaviour and, thus, guide the employee back on the track towards the required
performance.
2.
Role of Feedback. Effective and timely feedback is a critical component of a
successful performance management program and should be used in conjunction with
setting performance goals. If effective feedback is given to employees on their progress
towards their goals, employee performance will improve. People need to know in a timely
manner how they're doing, what's working, and what's not. Feedback can come from many
different sources i.e managers and supervisors, measurement systems, peers, and
customers just to name a few. However feedback occurs, certain elements are needed to
ensure its effectiveness. Feedback is important not only for the individual but also for the
organisation equally.
3.

Types of Feedback. There are three type of feedback as under:(a)


Positive feedback. This is given in response to a desired behaviour, with a
view to strengthen the same. For example, you actually appreciate a person by
saying, You did an extremely good job or saying I watched you handle the
customers complaint and the way you did it was focused, courteous, positive and
you solved his problem promptly. By positive feedback a person feels more
confident to repeat the behaviour.
(b)
Negative feedback. This is in response to an undesired behaviour, with a
view to enable the employee to alter such a behaviour. In the above case, a negative
feedback could be You could have accompanied the customer to the appropriate
department to speed things up for him rather than let him wander around our huge
store and find out for himself. And he would have appreciated you a lot. Here the
feedback is negative though the tone is positive. The intention of the feedback is to
prevent such behaviour in future. You might also say for example, I watched you
handle the customers complaint. You were courteous and positive, but, perhaps, you
took a lot of time to solve his problem. Here the purpose of the feedback is to
reinforce the positive aspects displayed, but reduce the negative aspect, i.e., taking
a lot of time to solve the problem of the customer. Negative feedbacks, difficult as it
might be to give and receive, are very important because:(i)
Receiving negative feedback about ones job performance is definitely
a perspective-changing experience.
(ii)
Negative feedback can be some of the most potentially valuable
information about oneself that one might ever receive.
(iii)
It is the most difficult to hear but provides with the maximum growing
opportunity.
(iv)
One needs to keep an open mind and be willing to accept what you
hear.
(c)
Abusive Feedback. Abusive feedback and negative feedback are different
though this may be given on negative aspects. For example, I tell you, You have no
sense of time and urgency and that is why you take so long to solve a small problem
of the customer. It is a direct assault on the person by using the words without any

sense of time and urgency rather than on the fact that you took a lot of time to solve
the problem. As a guideline, no feedback should be abusive.
4.

Principles of Feedback.
(a)
Specificity. Feedback works best when it relates to a specific goal.
Establishing employee performance expectations and goals before work begins is
the key to providing tangible, objective, and powerful feedback. Telling employees
that they are doing well because they exceeded their goal by more effective than
simply saying "you're doing a good job."
(b)
Timeliness. Employees should receive information about how they're doing
as timely as possible. If improvement needs to be made in their performance, the
sooner they find out about it the sooner they can correct the problem. If employees
have reached or exceeded a goal, the sooner they receive positive feedback, the
more rewarding it is to them.
(c)
Others. Feedback should be given in a manner that will best help improve
performance. It must be accurate, factual, and complete. When presented, however,
feedback is more effective when it reinforces what the employee did right and then
identifies what needs to be done in the future.

5.

Principles of Negative Feedback.


(a)
Insightful and Evidence Based. Know exactly what performance is being
are addressed andbe prepared to give examples of the individuals poor
performance.
(b)
Justice. Do not rush to a judgment before one has heard the employees
side of the story. Listen to the reasons and rationale for the behaviour and
performance with an open mind and be willing to accept the fact that there might be
factors beyond the persons control for these problems. Plan for ways to correct or
address these factors to help the person improve his/her performance.
(c)
Clarity. Do not give a mixed message, which is one where you hear two
seemingly contradictory things at the same time. If you have a negative message to
deliver to someone, then do not try to sugar coat it by wrapping it up in
complimentary feedback and sandwiching it in between. The intended result of
negative feedback is to improve performance through which the individual gains, an
assertive manager should not consider it as bad news. Lack of clarity will only
confuse the person more. Make it clear and quantify the aspects to be improved with
logic. Always tell the employee if he/she has done a good job or not at the end of the
day.
(d)
Constructiveness. Negative feedback should be constructive in its purpose.
The person should be told the following concerning their unacceptable performance:
(i)

Why the performance is not meeting requirements.

(ii)

What the person must do to improve the performance.

(iii)
How the performance will be measured and how improvements will be
communicated to the person in the future.
(iv)
When the persons progress made towards the desired performance
goals will be reviewed and how frequently.
(e)
Consequentiality. Negative feedback needs to include at least some
discussion about its ultimate consequences so that the receiver understands the
reason for receiving a negative feedback.

Question 3. Assume 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.
Answer.
1.
Purpose of Performance Appraisal. It is a method of evaluating the job
performance of an employee and is an ongoing process of obtaining, researching,
analysing and recording information about the worth of an employee. The main purpose of
performance appraisals is to measure and improve the performance of employees and
increase their future potential and value to the company. Other objectives include providing
feedback, improving communication, understanding training needs, clarifying roles and
responsibilities and determining how to allocate rewards. The organizational purposes are:(a)
It identifies whether an individual is actually contributing to the job and then to
the organizational effectiveness. Through appraisal 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.
(b)
It helps in giving feedback of the performance, which, in turn, helps in
performance improvement.
(c)
It indicate training gap and needs so that an employee can meet the
organisational goals.
(d)
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.
(e)
It acts as a control measure and helps in evaluating the efficacy of the job and
identifies whether the incumbent requires more competency or resources to execute
it effectively.
(f)
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.
(g)

It reduces grievances because it is systematically comparable.

(h)
It 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.
(i)

It is important for succession planning.

(j)
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.
(k)
It facilitates meeting several statutory requirements and often acts as an
important input in HR-related legal cases.
(l)
It makes a major difference to the self-worth of the individual, his feeling of
self-efficacy and self-confidence.
2.

Performance Appraisal Process.


(a)
Employee fills the self-appraisal form and submits to the manager. The
individual records his performance as evaluated by him in relation to each objective
and KRA. The evaluation could be figurative.
(b)
Manager Concurs or Differs with the Self-appraisal. The manager may
concur or differ with the submitted self-appraisal. In case there is a difference the
same has to be substantiated with reasons. In the case of an agreement, he may
agree with the incidents that the employee has cited and may add to them.

(c)
Manager sets up a Meeting with the Employee: This is done on one-on-one
basis and, perhaps, will take 45minutes to 1hour. The manager should prepare in
advance about the feedback he has to give.
(d)
Dialogue and Joint Evaluation of the Performance. It should be carried
out speedily and comfortably. Difficulty could arise when the employee may have
supported the manager in other ways but may have failed in actual performance
objective.
(e)
The Manager fills up the Final Report of the Achievements/shortfalls and
gives it to the Employee. The final report is linked to reward, promotions and
development and the manager has to be objective.
(f)
Employee Concurs or gives a Rebuttal. The process should provide an
opportunity to the employee to rebut the decision of the manager so as to meet the
ends of justice. This should be recorded and signed by both.
(g)
Rebuttal is Recorded and Responded by the Manager: The employee
reserves the right to represent his case to higher management and the manager
should, therefore, be sure of the reason, due justification and conviction of the
grading he has awarded.
(h)
The DOCUMENTS are sent to HR for Record: The documents are
processed to HR for post-appraisal action.

Question 4. Discuss the skills that a line manager require for effective Performance
Management.
Answer
1.
Skills the line managers require for effective PM. The line managers require the
following skills for effective PM:(a)
HR managers by training have to be experts in preparing role profiles,
defining key result areas and competency requirements. In so far as role
profiling is concerned, the line managers should not only be trained to prepare the
role profile but also be engaged fully in the process to ensure that the roles are
executed as per their requirement if, and only if, they manage performance.
(b)
Defining Goals. Once the goals received from the top management they are
and distributed to the departments and teams. HR mangers with their experience
and support with dialogue make them define the goals for themselves. This will
ensure that the line manger provides support to accomplish the goals.
(c)
Identifying and using Performance Measures. Line managers must have
the tacit knowledge of this aspect so that performance measures can be made in a
way the employee and the manager understands it. This will make an employee
deliver.
(d)
Giving and Receiving Feedback. A line manager must not shy away from
giving feedback and feel 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. Feedback also involves some expertise in managing
emotions and hence the need for the line managers to be trained in doing so.
(e)
Taking Part in the Performance Dialogue. The line manger must be adept
in a performance dialogue as it enables his ability to control production, which is
undoubtedly his focus.
(f)
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 and must be able to define the learning gap as also
arrange for such training so as to ensure rise in productivity.
(g)
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.
(h)
Coaching. A line manager should be able to act as a coach and mentor to the
employee and ensure of the day-to-day proximity and interpersonal relationship.

Question 5. Define the term Ethics. Discuss the key factors involved in ensuring
Ethics in Performance Management (PM).
Answer
1.
Ethics. The word ethics comes from the Greek word ethikos. It refers to ones
moral character and the way in which society expects people to behave in accordance with
accepted principles. It can be used to describe a particular persons own, idiosyncratic
principles or habits. It is a set of concepts and principles that guide us in determining what
behaviour helps or harms sentient creatures. It is that branch of philosophy dealing with
values relating to human conduct, with respect to the rightness and wrongness of certain
actions and to the goodness and badness of the motives and ends of such actions.
2.

Key Factors to Ensure Ethics in Performance Management


(a)
Define and Describe the Ethical Standards. Ethical standards to handle
the external agencies and for internal actions, particularly PM must be specified in
the PM document indicating what is considered ethical and what is not in the PM
context and the consequences of following these or disobeying them.
(b)
Plan the PM well in Advance. Goals must be given to the employees at least
a month prior to its being effective so that the employee has a head start.
(c)
Take Collective Decision. Group decisions made produce better quality
decisions as this will be inclusive of the diverse interests and perspectives. They
increase creditability of process and in turn benefit the outcome because of the
reduced suspicion of unfair bias.
(d)
Record Critical Incidents Frequently and let the Employee know it.
Decisions of performance are often taken on the basis of critical incidents. While it is
desirable to record it as and when it occurs, one must record it at least once in a
month. Permit an employee to have access to the critical incidents on a continual
basis. This would act as an automatic feedback system in some ways.
(e)

Ethics during Feedback:


(i)

Give objective and focused feedback.

(ii)
Frank feedback and opportunity to improve must be given for future
promotions and increments
(iii)

A frank feedback should be given to all to meet the ends of justice

Question 6 Write short notes on the following:


a)

MBO

b)

Behaviourally Anchored Rating Scales Method (BARS)

Answer
1.
Management by Objectives (MBO). This method involves setting particular
calculable goals with each employee and then respectively discussing his/her progress
towards these goals. The term MBO refers to an inclusive organization-wide goal setting
and appraisal programme that consist of six main steps:
(a)
Set the Organizations Goals. Create organization-wide plan for the next
year and set goals.
(b)
Set Departmental Goals. Here, the heads of each department set goals for
their respective department in consultation with their superiors.
(c)
Discuss and Allocate Department Goals. Organizations goals are
discussed by heads of departments with all subordinates and ask them to develop
their own individual goals. In other words, how an employee can contribute to his/her
department in achieving its goals.
(d)
Define Accepted Results. Heads of department and their subordinates set
short-term performance targets.
(e)
Review the Performance and Evaluate the Results. Heads of department
compare actual performance for each employee with expected results.
(f)
Provide Feedback. Head of department hold periodic performance review
meetings with subordinates to discuss and evaluate the progress level in achieving
the expected results.
2.
Behaviourally Anchored Rating Scales Method (BARS). The BARS is a
comparatively new technique. It comprises behavioural statements describing fair and
unfair performance with respect to important qualities. These attributes may refer to interpersonal behaviour, planning and organizing capabilities, flexibility and reliability. These are
developed from critical incidents collected both from evaluator and appraisee. BARS are
normally presented vertically with scale points ranging. It is an appraisal method that aims
to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring
a quantified scale. BARS are measuring scales, which point to definite and indefinite
behaviour. The scales represent a band of expressive statements of behaviours, ranging
from the least to most effective. An evaluator must indicate which point on the scale best
describes an employees behaviour. The scale points are specially defined behaviours
which differentiate BARS from other rating scales that are commonly used. Moreover,
BARS are designed by the evaluators who are going to use them. There are few steps in
BARS construction process:
(a)

Listing of all the important aspects of performance for a job.

(b)

Collection of critical incidents of definite and indefinite behaviour.

(c)
Classification of definite and indefinite behaviours to appropriate performance
dimensions.
(d)
Assignment of numerical values to each behaviour within each measurement,
i.e., scaling of behavioural anchors.