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Performance Appraisal Issues in HR Management

Mr. Shroff is the HR manager of Britestar Company who uses various performance appraisal methods like checklist method, 360 degree feedback, and assessment centers to evaluate employees. However, issues arose when he started appraising employees known to two subordinates, Kumar and Gupta, more leniently. This created bias and reduced employees' motivation and productivity. Mr. Shroff was responsible as his unfair bias led to dissatisfaction. Suggestions to improve the situation include apologizing, ensuring no future bias, providing proper feedback, and promotions based on performance.

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67% found this document useful (3 votes)
2K views6 pages

Performance Appraisal Issues in HR Management

Mr. Shroff is the HR manager of Britestar Company who uses various performance appraisal methods like checklist method, 360 degree feedback, and assessment centers to evaluate employees. However, issues arose when he started appraising employees known to two subordinates, Kumar and Gupta, more leniently. This created bias and reduced employees' motivation and productivity. Mr. Shroff was responsible as his unfair bias led to dissatisfaction. Suggestions to improve the situation include apologizing, ensuring no future bias, providing proper feedback, and promotions based on performance.

Uploaded by

joki nann
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Assignmen

t
Human Resource
Management
Subject Code – CMT - 154

Submitted By – Sparsh Nanda


UID – 19BCM1136

Submitted To – Jaspreet Mam


Q - Mr. Shroff is a talented and well experienced human resources
manager of Britestar Company. He undertakes his role of HR
manager by being an administrative expert and a change agent. He
has always been an inspiration for his subordinates and the
employees whose performance is measured and appraised by him. It
is because of Mr. Shroff’s 15 years of experience of working in HR
departments helped him to get acquainted ( aware of) with various
Performance Appraisal methods for evaluating the performance of
his employees in a better way every time. He had always been
implementing only those methods which he found result-oriented in
terms of enabling the employees to know about their performance in
the organization, to help them in providing adequate training, if
required, to increase their potential, to provide concrete feedback
and evaluate their current job performance to determine transfer,
retention and termination of employees. He has been working in
Britestar since last 5 years and has gained good amount of respect
and faith from his employees due to his appropriate and fair
performance appraisal techniques that facilitated the uses of
performance appraisal. The mostly used techniques by him are

Checklist method, 360˚Feedback and Assessment centers. Because


of Mr. Shroff’s good rapport and close relations in the recent
months with his subordinates Ram Kumar and P.K. Gupta, he has
developed a new tendency to appraise the performance of those
employees known to Kumar and Gupta with leniency ( giving more
marks) and because he finds them similar to him (personality and
knowledge wise). As a result of this unfair and inappropriate
appraisal of Mr. Shroff, he also evaluates the performance of the
employees taking into account their recent performances only.
Hence, most of the employees’ productivity has reduced and is
inefficient, even some of the good employees have become
irresponsible towards their tasks along with different behaviour
showing no interest to put in their best efforts to realize the goals
and mission of the company as they think Mr. Shroff is unfair. Some
employees are planning to resign as no proper feedbacks are
provided when required and no better prospects for Promotions are
expected to see the light of the day.

Questions:

Q1: Discuss different performance appraisal methods used by Mr.


Shroff

Q2: Discuss the problems which reduced the employee’s interest in


their work. Also, who was responsible for the situation?

Q3: Based on your analysis, give suggestions to improve the


situation.

Ans. –
1.) Different performance appraisal methods used by Mr.
Shroff are:-
(a) Checklist Method:- Checklist method is another of the
easiest methods of appraising employee’s performance.
Under this method, a checklist is prepared by the HR
manager and is forwarded to the rater. The checklist may
include list of questions (depicting behaviour and job
performance of employee) and the rater has to answer them
in just ‘YES’ or ‘NO’.
The rater analyses the question and the employee, and
based on his views, he answers them. Such questions also
carry some scores (equal or different), depending upon the
nature or importance, which is totalled at the end of the
procedure by the HR manager.
This method is helpful not only in evaluating employee’s job
performance but also in evaluating degree of uniformity of
the rater by giving him two similar questions in different
manner. In the given figure, question no. 3 and 6 are
differently asked same questions.
(b) 360˚ Feedback: - 360˚ appraisal is a modern technique to
evaluate employee’s performance which was developed in the
early 90s in the U.S.A.
Under this method, an employee’s job performance is
appraised by the help of the factors that are present
around him at the workplace. Such factors may be superiors,
colleagues, subordinates and even clients, customer or
spouse.
An evaluator asks various questions to these factors and
collects their feedback. The gathered information is then
assembled through computerized system and individual
reports are prepared. Such reports are finally distributed
to the employees, following which they can communicate
with their appraiser in regards with their opinion about how
to improve his performance.
360˚ is considered to be the most effective way of
appraising employee’s performance as information and
feedback is collected from all around.
(c) Assessment centres:- The assessment centre method tests
employees in a social-related situation. This concept was
introduced way back in 1930 by the German Army but it has
been polished and tailored to fit today’s environment.
Employees are asked to take part in situation exercises like
in-basket exercises, work groups, simulations, and role-
playing exercises that ensure success in a role.
While it gives an insight of the employee’s personality
(ethics, tolerance, problem-solving skill,
introversion/extroversion, adaptability, etc.), it can also
breed unhealthy competition among the workers and bears
adverse effects on low performers.

2.) The problems which has reduced employee’s interest in their


work are as follows:
(a) Similarity error - In every organization, some employees
have a resemblance of different aspects with the manager.
Now some managers usually find it easy to reward such
employees highly compared to those who portray contrasting
behaviour or opinion.
Mr. Shroff found two employees of similar nature and gave
performance appraisal to them on that basis.

(b) Leniency and Severity tendencies - These mistakes usually


arise as a result of distribution errors, which imply that the
overall dissemination of appraisal does not stand firm to the
classic bell.
Mr. Shroff showed leniency towards Kumar and Gupta. This
means that some managers are too lenient and will end up
appraising all employees above average, others will give
average whereas others would provide below average.

(c) Unfairness or Biasness - Bias is also one of the problems


with performance appraisal managers often encounter. As a
matter of fact, everyone has some biases towards someone
or something irrespective of how we portray them.
Mr. Shroff is biased towards employees of the organisation.
However, as a manager, it is imperative not to let the biases
hinder the manner in which you approach performance
evaluation process.

Mr. Shroff was responsible for this situation as he was being biased
towards employees of organisation and this created dissatisfaction
among the employees.

3.) Suggestion to improve the situation are: -

(a) Mr. Shroff should apologise for his mistakes.

(b) He should assure that biasness will not happen in future.

(c) Assure that company values their contribution.

(d) He should ensure proper feedback.

(e) Provide promotion as per the performance of employees.

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