Scanned with CamScanner(Chapter 13. Job Des, Wark Scheduling and Motivation @ 361 1, Physiological needs: These needs are required to preserve human life; these needs include needs for ait, water, food, clothing, shelter, rest, etc. Until such needs are reasonably well-satisfied, they remain strong, driving forces. ty needs: These are the needs to feel free from economic threat and physical harm, These include protection from arbitrary layoff and dismissal, disaster and avoidance of the unexpected. These needs, obviously, requite job security, freedom from coercion, or feelings of arbitrary treatment and clearly defined regulations. 43, Social or love needs: These needs are concerned with love, affection, belongingness, acceptance and friendship. ‘Man wants to be ‘one of the gang’ at work. He finds a satisfaction in association with others and feels a real deprivation when it is not possible. 4, Esteem needs: These are of two types: the desire for achievement and competence (self-esteem) and the desire for status and recognition (esteem of others). In organisational terms, people want to be good at their jobs; they want to feel that they are achieving something important when they perform their jobs. 5. Self-actualisation ne These are the needs for realising one’s potential, for becoming what one is capable ‘of becoming, A musician must make music, an artist must paint, a poet must write if he is to be ultimately happy. Maslow stresses that individual differences are greatest at this level. For some individuals, producing work of high quality may be a means for self-actualisation, while for others, developing useful ideas serves the same need. ‘According to Maslow, people attempt to satisfy their physiological needs first. As long as these are unsatisfied, however, they lack the motivational power to move up to the next level of needs, but fulfillment of one level of needs automatically results in a need to move up to the next higher level. This process continues up the need hierarchy. According to Maslow, if you want to motivate someone, you need to understand where that person currently is on the hierarchy and focus on satisfying those needs at or above that level. + Evaluation of the Theory Maslow’s model provides a rich and comprehensive view of human needs. It helps to explain why people behave differenly, why some needs are motivating up to a stage, what factors need to be looked into by managers when they want to inspire their subordinates, etc. It is small wonder that the theory has received wide recognition, particularly among practicing managers. This can be attributed to the theory's intuitive logic and ease of understanding. Propositions such as: 'a satisfied need is not a motivator of behaviour, lower-order needs have to be met first before trying to fulfil higher-order needs’ have found universal acceptance. Research in under-developed countries indicated the fact that workers give top priority to lower-order needs and expect managers to take care of these, Despite the societal popularity, Maslow’s model has been criticised on several grounds: 1, Iris an unstable theory: Empirical support to Maslow's propositions (unsatisfied needs motivate, a satisfied need activates movement t0 a new need level, need structures are organised along five dimensions, people seek. growth, etc), is poor and inadequate. It is difficult to interpret and operationalise its concepts. For example, ‘what does dominance of a given need mean? What is the time span for the unfolding of the hierarchy? etc. The classification scheme is somewhat superfluous: It is not correct to put needs into neat watertight compartments. The model is based more on wishes of what man should be rather than what he actually i, The chain of causation in the hierarchy is also put to attack: There is no definite evidence that once a need has been gratified, its strengeh diminishes. Iris also doubtful whether gratification of one need automatically activates the next need in the hierarchy. Also, the need hicrarchy may not follow the sequence postulated. by Maslow. Creative people like painters, singers, musicians often discount physiological and love needs in favour of self-fulfillment needs. Sometimes all needs simultaneously operate within an individual. A person, for example, may be hungry and at the same time need friendship and association. Maslow’s proposition Scanned with CamScanner362 @ Honan Resouce Ma ividual’s behaviour ax any time is guided tha one ned eid ei ede ae Plea this phenomenon ‘of multiple motivation in a clear way: ge Headers Two Factor Theory ie personnel policies and fringe benefits were nox ae ee Po Case-Wescern Reserve Univeriy For several year, managers had been wondering why imereasing employee morivason on the job To answer d provided an incereting extension of Maslow’s Need Hierarchy Pre oostarion, It is abo called che Dual Facer Theory and th i wee heory originally was derived by analysing sertieal incidepts” weitten BY ine diferent companies in Pitsburgh ae SGA, Heraberg and his associes mk che professional subjects in the suudy asked them what they liked fT erch approach was simplistic and built found the question ~ “think of a time good or exceptionally bad about your job, ether your present jab een repeated many times with a variety “of job holders in various counts: people talked about feeling good oF 1 ed they mentioned feavures Inetiee Pepe about feeling dissatisfied with the job they talked, about factors extrinsic whee ‘Motivation’ and ‘Maintenance’ factors respectively. ti, Frederick Hersberg of C theory and develope he Motivation-Hygiene 7200 engineets other you havs specific content theory of Theory of Motivation, and accountants in onducted extensive interview, Iiked about their work. The ‘when you felt exceptionally fe had”. This approach has Tine results indicated chat when ‘othe job and when people to the job. Herzberg called 4 Hygiene Factors (Maintenance Factors) an intrinsic part of a job, but Hygiene factors represen she need 10 avoid Pal the environment. They afe NOt they are related 10 the conditions under ‘which a job is perform ‘They are environment related factors, hypionss ‘They must be viewed as preven JP Gecatisfaction from the environment. Like physical hygiene, Geeriration. Maintaining a hygienic work environmen! Y disposal or water purification. Mr Fictitious, whi food, but if he does nor eat food, he may become sick and die. Hygiene ‘ousput, they prevent loss in pe formance caused by work restriction. en They are associated with, negative felings tive measures that Femove sou “hey do not lead to growth but only prevent ‘ll not improve motivation any more than garbage ment Went health will not become any healthier by xing factors produce no growth in worker 7 Company policy and administration 7. Achievement 2. Relationship with supervisor 2. Recognit x i 2 Wak condos 3 Wor tet 2 . Salary 4. 5. Relationship with peers 5 oa 6, Personal ite Sac nase 7. Relationship with subordinates ee. 8. Status Securtly ot & Maotivators ‘Motit associated with positive feeli vars asacite wt poste ating of employes about he oh They ate elated co the cm ss rel to cont the job. They make people satisfied ith their job. If managers wish to increase motivation and performs“ and per steve che average level, they must enrich the work and i increase a ; Persons’ freedom on the j vars job. Motivaro® Scanned with CamScanner az neon © 363 ary to keep job satisfaction and job pert ces job performance high. On the other hand, if they are not present they do or prove highly satisfying eon h they P ‘ Managerial Implications ’s theory casts new light on the co: * Herberg tent of work motivation. During the last thirty years, employees have been paternalistically maintained too much and enthusiastically cere tod Neamt beraoas focusing their attention on hygiene factors often with poor results. They were preoccupied with the environment of work rather than work itself. The distinction of motivational and maintenance factors will help managers in sputting individuals to peak performance. The most basic implication of the Motivation Maintenance Theory is that in order to maximise human productivity, it is absolutely necessary to satisfy employees’ maintenance needs and provide the opportunity to gratify their motivation needs. The key to motivation lies in structuring meaningful jobs, eo & challenging and rewarding, that provide increased opportunities for achievement, responsiblity, growth and recognition. Thar is to say, in place of dull, boring and demotivating jobs, challenging jobs should be provided by the managers ional View 4 Departure from the Tr Traditionally, job satisfaction and dissatisfaction were viewed as opposite ends of a single continuum. When certain things are present on a job—good pay, opportunity for growth, healthy working environment—the ‘employee will be satisfied. When they are absent, he/she is dissatisfied. The absence of dissatisfaction is satisfaction. Herzberg's findings indicate that dissatisfaction is not simply the opposite of satisfaction or motivation. One can feel no dissatisfaction and yet not be satisfied. Satisfaction and dissatisfaction appear to be somewhat independent. They are not viewed as symmetrical items on a single scale, rather, they are viewed as attributes of diferent scales. The factors that cause dissatisfaction are different from those that result in satisfaction. Satisfaction is affected by motivators and dissatisfaction by hygiene factors + Evaluation Heraberg's theory has been subjected to several troubling criticisms. Like Maslow’s model, Herzberg's has been as controversial as it has been influential fe Research methodology: (i) Herzberg is shackled to his method. His model is method-bound. When researchers did not use the critical incident method, they obtained different results; Actually the theory is limited by the ‘critical incident’ method used to obtain information. The subject stated extremely satisfying and dissatifying job experiences. People tend to tell the interviewer what they think the individual would like to hear. So results obtained under the method may be a product of peoples’ defensiveness than a correct revelation of objective sources of satisfaction and dissatisfaction; (iii) The method is fraught with procedural deficiencies also. The analysis of responses derived from his approach is highly subjective; sometimes, the researchers had to interpret the responses. Assumptions: The assumption that the two sets of factors operate primarily in one direction is also not accurate, Critics questioned the mutual exclusiveness of the dimensions. In some cases, ‘maintenance factors’ were found to be viewed as motivators by blue-collar employees. In one study, it was found that hygiene factors were as useful in motivating employees as were his motivators. Despite these criticisms, Herzberg's two factor theory has made a significant contribution toward improving ‘managers’ basic understanding of human behaviour. He advanced a theory that was simple to grasp, based on some empirical data and equally significant. It offered specific action recommendation for managers to improve ‘motivation levels. He drew the attention of managers to the importance of job content factors in work ‘motivation which had been neglected previously. b Achievement Motivation Theory ‘Some people have an intense desire to accomplish and show excellence, others are not concerned about achieving things. David C McClelland studied this phenomenon for over twenty years at Harvard University and proposes Scanned with CamScannerJelland, achievement, ory). Acco! : eT gel simon ea organisational 364 © Honan Reuse Managment > rding co McC! the Achievement Motivation ‘Theory (also called Theeneed The power and affiliation ate chree important needs that help sertings 1, Power need (n pow): This isthe need 10 ability to manipulate or control che activ for power look for positions of leadership. a i ,): aliation is a social need, for ie Ailton need (ADT : ocyo ave a high need for af m0 view the developing meaningful racionship with Tae” eons wh have + Hh Oe bs tha demand ir ising relationships. They 26 ‘moti een ne os en 2 Epo ly ceed el at force hee pent interaction with co-workers. ‘work in isolation. Power speaks about the People with a high need nd direct activities control people, ‘own purposes ke decisions a! companionship and support for ce, influence and 0 suit one’s goals, mal dominat ities of others & They like £0 set ishment and. success in the need for challenge, for personal accomplis! sel rang sche Soins CATT things himself racher than getting them ie cece er failuteete does noe Wan 3, Achievement need (n Ach): This is ‘competitive situations. A person wit @ Personal responsibilty: Doing most to take personal responsibility for responsible for his actions; done by others. He wants to hold others or chance Gi) Feedback: He wants ro know how vell he is doing, He would seck situations where concrete feedback is possible; (iii) Moderate risks: He tends to set achieve these goals moderately difficult goals for himself and takes calculated risks to High achievers, chus, flourish in competitive situations: They prefer challenging assignments. They are willing rae snk hard and want jobs chat strerch their abilities fully. They are not motivated by money per se but Jnsead, employ money as a method of keeping score of their achievements McClean’ theory bs significant implications for managers. I the need of employees can be measured accurately, organisations can improve the selection and placement processes, People ‘with a high need for achievement may be placed on challenging, dffcule jobs. People with a high need for power may be trained for leadership ee If the sipaamo bl to achieve a ‘ft’ between need intensities and job characteristics, improved performance is guaranteed. fing to McCelland, in addition to pumping achievement chara ist fobs, people should be taught and offered training in achievement Se! Sac fe Theory X and Theory ¥ Douglas McGregor proposed two distinct sets of assumpti ites bo i negative, labelled Theory X and other basically positive, usted Thess Baines se oY 4 Assumptions of Theory X and Y ‘Theory X contends that people have an inherent dislike of worl i ! rk and wil vid i il perl beng hp te directed, want to avoid responsibility ate foe Eo eee ae il ceed vee threatened with punishment to make them euace psoas gels Exel cone cl appropri fo dling with sch ula, iesponsible andi Se Peak? sa a ian if subordinates are to accomplish aa ee ts soi oe 3) dominate human behaviout, Money, eS real Perel in poring poplin eae caine wae a ee aR Ee pea presents a much mote optimistic view of human : niles Thy. wll dies themselee eoaRE BERET Berge ale Del din objectives if th wumes that people are nor, by natu even to seck, responsibility as well oat = rewarded. Most agination, Scanned with CamScanner ingenuity antcreativity © they derive @ justia life vanities, remove obstacles and encourage people & eds (Maslow) dominate human behaviour, In order to motivate peop! igher-order es making, responsible and challenging jobs an Bh ideas as participation in dec Chapter 13. dob De ational climate is conducive, people are eager t ‘Unfortunately, the present fully, Managers, therefore, have to create ory Y, thus, assumes that le fully, McGregor proposed 4 group relations in the organisational problems. Ifthe org great deal of satisfaction from work and are capable of ‘does not allow the employees to exploit th: contribute their best. Th Work See doing a good job. “Assumptions of Theory X and Y ‘Theory X Assumptions ‘Theory ¥ Assumptions: Employees inherently dislike work and will try to avoid it. Since employees disike work, they must be coerced, controlled and threatened with punishment to achieve goals. Employees will shirk responsibilities and seek formal direction whenever possible. Most employees want security above all in their work and display litle ambition. |. People want security but also have other Employees can view work as being as natural as rest or play. People will exercise self direction and selt- control f they are committed to the objectives. Under proper conditions, employees do rot avoid responsibilty needs such as self-actualisation and og ond Motivation @ 365 10 work; and Dm esteom. fe Teor William Ouchi, after making a comparative study of American and Japanese management practices, proposed, Theory Z in early 80's. It is an integrative model, containing the best of both worlds. It takes into account the screngths of Japanese Management (social cohesion, job security, concern of employees) as well as American ‘management (speedy decision-making, risk taking skills, individual autonomy, innovation and creativity) and proposes a “mixed US-Japanese management system” for modern organisation. The mixed/hybrid system has the following characteristics: Trust: Trust and openness are the building blocks of Theory Z. The organisation must work toward trust integrity and openness. In such an atmosphere, the chances of conflict are reduced to the minimum. Trust according t0 ‘Ouchi, means trust between employees, supervisors, work groups, management, unions and government. relationship: Theory Z makes a passionate plea for strong linkages between employees ime employment for people in the organisation. To ensure stability of ‘employment, managers must make certain conscious decisions. When there is a situation of layoff, for example, it should not be followed and instead, the owners/sharcholders may be asked to bear with the losses for a short while. To prevent employees from reaching a ‘plateau’, promotions may be slowed down. Instead of vertical horizontal progressions may be encouraged at various levels. Career paths for employees must be ‘down clearly so that employees are aware of what they can achieve and to what extent they can grow within the organisation, over a period of time. Enploye participation: Participation hete does not mean that employees must participa in all organisation decisions. There can be a situation where management may artive at a decision without consulting employees (but Fattue bon a deckion where are invited to suggest but the final green signal is given by management. all decisions where employees are affected must be subjected co participative exercise; where employees and Management sc together, exchange views, take down notes and arrive at decision join. The basic objective of employees involvement must be to give recognition to their suggestions, problems andl ideas in a genuine manner, Scanned with CamScanner366 @ Hunen Resource Management Siracurles organisation: Ouchi proposed asrutueles onganisaton-run, not on the basis of formal reign, specialisation of postions and tasks but on the bass of teamwork and understanding. He has given the of a basketball team which plays together, solves all problems and gets results without 2 formal an"? Likewise in an organisation the emphasis must be on teamwork and cooperation, on sharing of informan” resources and plans at various levels without any friction, To promote a ‘system thinking’ among employ they must be asked to take turns in various departments at various levels; how their work affects other” affeced by others I albo makes the employees realise the meaning of words such as ‘reconciliation’ ‘adjugq® ‘give and take’ in an organisation, a ty on, Holistic concern for employees: To obtain commitment from employees, leaders must be prepared to inves. the time and energies in developing employees skills in sharing thet ideas openly and frankly, in breaking the ge barriers in creating opportunities for employees to realise their potential. The basic objective must be 10 ya cooperatively, willingly and enthusiastically. The attempt must be to create a healthy work climate wh. employees do not see any conflict between their personal goals and organisational goals. : Indian companies have started experimenting with these ideas in recent times, notably in companies like Mang Udyog Limited, BHEL, by designing the work place on the Japanese pattern by having a common canteen common uniform both for offcers and workers, ec. Other ideas of Ouchi such a lifelong employment, imbibing @ common work culture, participative decision-making, structureless organisation, owners bearing the temporary, losses in order to provide a cushion for employees may be difficult to find any meaningful expression on the Indian soil because of several complicating problems. The differences in culture (north Indian and south Indian) language (with over dozen officially recognised ones), caste (forward, backward, scheduled castes, scheduled tribes, economically backward), religion (Hindu, Muslim, Sikh, Jain, Christian, ete.) often come in the way of transforming the seemingly appealing Western rhetoric into concrete action plans. Process Theories of Motivation eee Jrocess theories, as opposed to the content theories listed above, suggest that a varity of fictors many prove to be motivating, depending on the needs of the individual, the situation the individual is in, and the rewards the individual expects forthe work done. Theorists who hold to tis view do not try to ft people int a single category, but rather accept individual differences. Equity theory, expectancy theory and goal sting theory come under this classification. Exuity shears based on the premise that out levels of ob satisfction and mosivation are rated vo how fy ve believe we are treated in comparison with others. Expecta vation i i lation. A, eet cy theory proposes that motivation isa function of a rational calculation. A person is motivated to th degree that he believes that effort will yield acceptable performance, performance will be rewarded and she vaie of the rewards is highly positive. The interactive combination of all three influences motivation, f inates should set specific goals The goal setting theory suggests that managers and subordinates should that are a 4 diffcale to achive. The goals should be of a type that the employee will accept and commit yy sn cnt ee Rewards should invariably be linked directly to reaching such goals. accomplishi fe have presented a number of theoi with motivating your employees, how do you ap you in solving the puzzle to some extent: 1. Recognise individual differences: Employees are not home differ in term of aitudes, personales and other important handle the motivational issues carefully. ygencous. They have variables. So, Scanned with CamScannerpte: 13. Job Design, Wok Scheduling and Motivation @ 367 ». Match people to jobs: People with high growth needs perform better on challenging jobs. Achievers will do 2+ best when the job provides opportunities t b job pr ortunities to participatively set goals and when there is autonomy and fedback. At the sume ime, keepin mind thas, noc even is moved in jobs with increased autonomy, variety and responsibility. When the right job is given to the right person, the organisation earns benefits in innumerable ways 113.5 Motivating A Diverse Workforce: The Biggest Challenge ee before HR Managers? ‘0 motivate a diverse workforce is the biggest challenge before managers in the 21% century. Employees want to have greater autonomy over their work. ‘They want to learn and get ahead. Convenient and flexible working hours and ‘900d interpersonal relations are other things that employees look for apart from ‘competitive pay, benefits and incentives. Employees, its important to recognize, are not identical. They have different needs, attitudes, and are gifted with unique personalities. So there is no use greeting them with standardized packages. Managers have to invent ways and means to recognize good performance and link rewards to performance in an equitable manner—wherein everyone is aware of the likely outcomes in case they perform well, Recognition for good work is an excellent way of moving closer to the hearts of people. Another way is to put strike rapport between people and jobs. For example, high achievers should have jobs that alow them to participate in setting moderately challenging goals ‘and that involve autonomy and feedback. Managers should also ensure that femployees have hard, specific goals and feedback on how well they are doing inrmeeting those goals. Of course, the goals must seem to be within theit reach, 30 that everyone is fully stretched. Above all, managers must individualize fewards in a meaningful manner. “Managers should use their knowledge, ‘employee differences to individualize the rewards they control, such as pay, promotions, recognition, desirable work assignments, autonomy and participation.” (Tucker, 2004) 3. Une goale Provide specific goals, so that the employee knows what he is doing. Also, let people know what you expect of them, Make people understand that they can achieve the goals in a smooth way. If you Zapect resistance to goals, invite people to participate in the goal-setting proces: 4, ndinidualze rewards: Use rewards selectively, keeping the individual requirements in mind. Some employees ses iitenat needs; what aca as motivaror for one may not work for another. $0, rewards such as pay, promotion, autonomy, challenging jobs, participative management must be used keeping the mental make-up of the employee in question, in view. 5. Link rewards o performance: Make rewards contingent on performance, To reward factors other than performance (fvoritism, neporism, regionalism, apple polishing, yest culture, etc.) will only act to reinforce (erengthen) those other factors. Employee should be rewarded immediately after attaining the goals. At the same ime, managers should look for ways to increase the visibility ‘of rewards. Publicize the award of performance bonus, lump sum payments for showing excellence discussing reward structure with people openly ~ these will go a long way in increasing the awareness of people regarding the reward-performance linkage. Check the system for equity: The inputs for each job in the form of experience, abilities, effort, special skills must be weighed carefully before arriving at the compensation package for employees. Employees must see equity between the rewards/recognition ‘obtained from the organisation and the ‘efforts put in by them. le work. Money is not only a means of Don's ignore money: Money is a major reason why most peopl satisfying the aoenny ic needs but also a measure of one’s power, Prestige> independence, happiness and so on. Money can buy many things. It can satisfy biological needs (food, shelter, sex, recreation, etc.) as well as security, social and esteem needs. Scanned with CamScannerPerformance and Potential Appraisal LEARNING OBJECTIVES Alter reading this chapter, you should be able to: Define performance appraised and explain its features Answer questions such as what is to be appraised, who will appraise, when to appraise, etc. Outline the appraisal process clearly List the various methods of performance appraisal Explain the 360-degree feedback systems Elaborate the steps in conducting an appraisal interview and offering the feedback in a constructive Highlight major problems of performance apex State the essential features of an effective app system Describe the basic features of potential apprs Explain how leading Indian companies ap employee potential Outline performance appraisal practices in |r Scanned with CamScanner: for figs confused with efforts, whic ” polar) A bank employes gyade. In shis with performance, I on bat mann 1 6 ie fomet in compartment 2 i lo, Enalasion is diffrent for ST ment of goals wheter the later with person. Evaluation is p srople int fs las zens and second 2s ‘both work reared behaviour and potential of employees It isa process thar involves to an employee how he or she is performing the d ideally, establishing a plan of Eland; Bemardin; Murphy; Bakes) os of performance appraisal may be is a sutematic proces involving three Scanned with CamScannerChopter 15. Pela and Potential Appranal @ 399 «Offering feedback to the employee so that he can el © course of time. t Jiminate deficiencies and improve performance in to find out how well the employe I a c 8 a Il the employee is performing the job and tries to establish a plan for further improvement 4. The appraisal is cried our periodically, according to a definite plan. I is certainly nor « one sho del «Performance appraisal is nor a past-oriented activity, with the intention of putting poor performers in a spot Rather, it is a future oriented activity showing employees where things have gone wrong, how co set anthing in order, and deliver results using their potential in a proper way. © Identification: Means determining what areas of work the manager should be examining when measuring performance ~ essentially focusing on performance that affects organisational success. © Measurement: Entails making managerial judgements of how good or bad employee performance was, ‘© Management: Appraisal should be more than @ post-mortem examination ‘of past events, criticising or praising workers for their performance in the preceding year. Instead, it must take a future oriented view of what workers can do to realise their potential. 6 Performance appraisal is nor job evaluation. Performance appraisal refers to how well someone is doing 20 asigned job. Job evaluation, on the other hand, determines how much a job is worth to the organisation dnd therefore, what range of pay should be assigned to the job. 4. Performance appraisal is nor limited to ‘alling te foul. Its focus is on employee development Ik forces managers to become coaches rather than judges. The appraisal proces provides an opportunity identify qoues for discussion, climinate any potental problems, and set new goals for achieving high performance (=: P Sankar, Beyond the Numbers, Indian Management, Dec 2008) Performance appraisal may be formal or informal The informal evaluation is more likely to be subjective dad influenced by personal factors. Some employees are liked better than others and have, for chat reason ena chances of receiving various kinds of rewards than others. The formal system is likely to b rome fair and objective, since ic is carried out in a systematic manner, using printed apprsisil forms. Scanned with CamScanner400 © Hone Bees N Reeformance appraisal could be taken either for ev them. The evaluation is of two cypes: telling the empl decisions concerning pay prom exe. The devel organisational strengths and weaknesses: developing appropriate counseling/coaching to the employee with # vi Appraisal of employees serves several useful purposes: (Candy: 2. = Follows a course sylabu presents lectures in a logical ‘order; tes each lacture into the previous, ‘Tis instructor can be expected to announce at the end of each lecture the material that will be ‘covered during the next class period. = Prepares @ course syllabus but only follows it occasionally; presents lectures in no particular order, although does tie them together. This instructor could be expected to be sidetracked at least once a week in lecture and not cover the intended material This instructor could be ‘expected to lecture a good deal ‘of the me about subjects other than the subject sine is supposed to lecture on. —— Makes no use of a course syllabus; lectures on topics randomly with no logical order. ‘Source: Adepted trom H. John Bemarain and Fichard W. Beaty, Perormance Apprasl Assessing Human Behaviour at Werk (Boston: Kent Pushing Company, 1883). Behaviourally Anchored Rating Scale for a College Professor ‘Sup III: Reclassification of incidents: Another group of participants knowledgeable about the job is instructed to retranslae or reclassify the critical incidents generated (in Step I) previously. They are given the definition of job dimension and cold to assign cach critical incident to the dimension that it best describes. Ac this stage, incidents for which there is lower than 75 per cent agreement are discarded as being too subjective. | Siep IV: Asigning scale values to the incidents: Each incident is then rated on a one-to-seven or one-to-nine with respect of how well it represents performance on the appropriate dimension. A rating of one ts ineffective performance; the top scale value indicates very effective performance. The second participants usually assigns the scale values. Means and standard deviations are then calculated ‘T-point scale) are retained. the final instrument: About six ot seven incidents for each performance dimension ~ all the retranslating and standard deviation criteria ~ will be used as behavioural anchors. strument consists of a series of vertical scales (one for each dimension) anchored (or le employee participation, its acceptance by both ‘of BARS also claim that such a system Rei oe Scanned with CamScannerrovide a basi aiy wane Pr" is fog tly Hf identifies observable ang 412 © Hane Rese Meigen coment? 2 differentiates among behaviou’ peony bs ee appraisal setting developmental goals FOF the Or al ere pe inte appeal of BARS eng er tanto it ere ONE con ait or ct screral sli bk i a sy is that the behaviour, 7 porential problem for supervisor, the activity but noy Researchers, after surveyiN8 findings from research have 10) ng goundnes have achieving PCHOIEE , This create jen re performing ial 0 are pertotmreate BARS. They ag overcoming 3 e008 oven ted ae a wh em : Spe aon my ie ser gam ee eal as 0 22 Miocene «7B OF )9P4 Oe ifferent jobs: seParae BARS ck va a and 2 compelling Ot demonstrating the ei a ee hi ating staves am conclude that this rate performance evaluation” accomplish demand sever pps leceurers, office clerks, library staff, Caan vould need co be developed fOr cach, In view ot superiority of BARS over ‘traditional techniques Oa ea may be time ro quit hedeing about th of t Sie reo has no clear-cut advanrages Ov ; jean Forced «bias and the prepondesines rating choice method: This method Was developed to eliminat e ea thar might occur in ri be The primary Purpose of the forced = on aoe eae correct the tendency of a rater 10 give “consistently high of 1Ow ratings £ all al ames saps = = sets of pair vs tpich may be posive and ewe Nt aa eae eas oi Se eescriprive of 8 lar work Acca the "ae i a pe auch a way thatthe 1 tn er jdge which staements 4PPLY (0 ee tox sean fe grounded in such a way that the Sa Fe eh OE _Tfretve employee. The following Table is 2 < 1. Least ‘A Does not anticipate difficulties B Grasps explanations easily and quickly © Does not waste time D Very easy to tak to 2 Least A Gan be a leader Wastes time on unproductive things ‘At all times, cool and calm ‘Smart worker qualities ear a plus credit and the unfavourable ones earn the reverse. The worker . The worker gets at Scanned with CamScannerCChapte 15. Peomance and Potenial Appraise @ 413 Management by Objectives (MBO): MBO requites the management to set specific, measurable goals with each employee and then periodically discuss the latter's progress towards these goals. This technique emphasises participatively set goals (that are agreed upon by the superior and the employee) that are tangible, verifiable and measurable. MBO focuses attention on what must be accomplished (goals) rather than how it isto be accomplished. Ic is, thus, a kind of goal setting and appraisal programme involving, six a steps Ser the organisation’ goals: Establish an organisationwide plan for next year and set company goals. Set departmental goals: Departmental heads at this stage take the broader company goals (such as \ improving profits by 20 per cent, increasing market share by 10 per cent etc.) and, with their superiors, jointly set goals for their departments. Discuss departmental goals: The departmental goals are now put to discus.ion in a departmental meeting with subordinates. The departmental heads would require the subordinates ro set their own preliminary individual goals, focusing mostly on what they can do to achieve the department's goals. @ Define expected results: In the next step, the departmental heads and their subordinates agree on a set of participatively set short-term, and individual performance targets. & Performance reviews: Departmental heads compare each employee's actual and targeted performance, cither periodically or annually. While periodic review is intended to identify and solve specific performance problems, the annual review is conducted to assess and reward one’s overall contribution to the organisation. Because employees are evaluated on their performance results, MBO is often called a result-based performance appraisal system. Provide feedback: Both parties now discuss and evaluate the actual progress made in achieving goals, where things have gone off the track, how best to rectify the mistakes made in the past, and how the employee could meet the targets next time, focusing attention on his strengths, balanced score card (BSC) can be used to appraise individual employees, teams, business units and the corporation itself. BSC ic a framework developed by Robert Kaplan and David Norton that helps managers translate ye model is built around four related 5 Lobes, i ear ec cides ae SIT Cos gat Sean lis “Scanned with CamScanner‘ isfaction. etc). Often th, siecle Jo8 a are more (one a8 CPT aii subordinate AY ttn; be ignored , werent term goal. The qualitative agpects i ‘routinely Ni <> ae fe ¢ over long: aa poten ner Fe the Oe Pay lee PL Reriseie ts s 6 must in wer men he Neca Ya Te ie ps and be Familiarised ig, ‘ ve, aught how (0 pevramine in «re subi reid responsible. ag - je & dhe revles fe which ther the abe diced methods ae wed (9 Ste e: . Eilat TAs discuss some techniques of evaluating, Ee piel coma : cme at ime, tht nly used methods in onganisations 476 ~ to another, Three sd ered sina. aluation. Under this method, ihe sme meshed: This is a relatively €38Y method of gaipepee a, The relative positon of 9. Reming» fe ork group i dane against that of an TS ing i gee aed i ers of is numerical rank. Ie may ao OF Ot eae : sa paneeat inst another member of the competitive group: The ae iki ‘es _ Je plore are ranked acrording co cir relative levels of performance. While wine pone a aS loyees from highest to lowest on some overall criterion Though ic is relatives, ie iffcal to rank the average employees. General, cee tebe andthe worst employes, iis very difieule o eeee next lowes and SSiiunn pick the rp and boriom employers fist and then sles We BE UO ae ser cowards the average (middle) employees. The long-standing Ii : aoe : SURI is compared wich anocher whole ns! in this method. Im peacaces' V7 ificul to compare individuals possessing varied behavioural eraits. speaks iti ids in his group. Tt does nor tell “This method speaks only of the position where an employee stands i anything about how es better ot how much worse an employee is when compared to another : a 4 large number of employees are working, ranking of individuals becomes a vexing issue. is no systematic procedure for ranking individuals in the organisation. The ranking system liminate the possibility of snap judgements. ‘overcome the above limitations, a paired comparison technique has been advanced by 4140 Hanis Bese Manageme ‘method: Ranking becomes more reliable and easier under the paired comparison method. 2 ol wih ll ekeremplyes inthe gos for every tity the worker i ompard instance, there are five employees to be compared, then A’s performance of B's and decision is arrived at as to whose Scanned with CamScannerChote 15 Pefomanc and Potent Appand © 415 . fen a ‘a 1 Bong wi On \ Fey ie \ ison \ th : of 1. Forced distribution method: Under this system, the race is asked to appraise the employee according © 2 is mined distribution scale. The raters bias is sought o be eliminated here because workers are noe a placed at a higher ot lower end of the scale. Normally, the two criteria used here for rating are the job. i formance and promorability. Further, a five-point performance scale is used without any mention of ‘y descriptive statements. Workers are placed between the two extremes of ‘good’ and ‘bad’ performances. For ; instance, the workers of outstanding merit may be placed at the top 10% of the scale. ‘The rest may be fj as 20%-good, 40%-ourstanding, 20%-fair and 10% —poor. To be specific, the forced distribution rethod assumes that all top grade workers should go to the highest 10% grade; 20% employees should go to the next highest grade and so on. {pare from job performance asthe criterion, another equally important facto in this method is promorability: Employees may be classified according to their promotional merits. The scale for this purpose may consist of three points ~ namely, quite likely promotional material, may/may not be promotional {quite unlikely promotional macerial. material and ‘One strong positive point in favour of the forced distribution method is that by forcing the distribution according to predetermined percentages, the problem of making use of different raters with different scales is avoided. Further, this method is appreciated on the ground that it rends to eliminate rater bias. The imitation of using this method in salary administration however, is that it may result in low morale, low productivity and high absenteeism. Employees who feel that they are productive, but find themselves placed in a grade lower than expected feel frustrated and exhibit, over a period of time, reluctance to work, Other methods of appraising performance include: Group Appraisal, Human Resource Accounting, ‘Assessment Centre, Field Review, etc. These are discussed in the following sections: 12. Group appraisal: In this method, an employce is appraised by a group of appraisers. This group consists of the immediate supervisor of the employee, other supervisors who have close contact with the employee's & manager or head of the department and consultants. The head of the department or manager may : Chairman of the group and the immediate supervisor may act as the Coordinator for the group s. This group uses any one of multiple techniques discussed earlier. The immediate supervisor ‘other members about the job characteristics, demands, standards of performance, etc. Then the the performance of the employee, compares the actual performance with standards, finds discusses the reasons therefor, suggests ways for improvement of performance, prepares studies the need for change in the job analysis and standards and recommends changes, if bias’ co a large extent, as performance is evaluated by multiple raters. But reat Scanned with CamScannerChapter 15. Peslomance wd Potental Moprial @ 417 A considerable amount of research evidence is available to support the contention that people chosen by this method prove better than those chosen by other methods The centre enables individual working dl low starus departments to compete with people from well-known departments and enlarge their promotion chances. Such opportunities, when created on a regular basis, will go a long way in improving the morale of promising candidares working in ‘less important’ positions. 15, Field review method: Where subjective performance measures are used, there is scope for rater’s biases influencing the evaluation process. ‘To avoid this, some employees use the field review method. In this method, a trained, skilled representative of the HR department goes into the ‘field’ and assists line supervisors with their ratings of their respective subordinates. The HR specialist requests from the immediate supervisor specific information about the employees performance. Based on this informacion, the expert prepares a report which is sent to the supervisor for review, changes, approval and discussion with the employee who is being rated. The ratings are done on standardised forms. Since an expert is handling the appraisal process, in consultation with the supervisor, the ratings are more reliable. However, the use of HR experts makes this approach costly and impractical for many organisations 60-Degree Feedback Syste Aes feedback, system collects performance information from multiple parties, subordinates peers, supervisor and customers, Corporations like GE, Reliance, Crompton Greaves, Wipro, {nfoys, Thermax, NTPC, Thomas Cook, SBI, Aditya Bisla Group, Mafatlal Group etc, are all using this rool to discover home truths about their managers. Although originally developed (by TV Rao and others in mid- tightes at ITM, Ahmedabad) as a fact-finding and self-correction technique, the 360-degree feedback is also faurendy used to design promotion and reward. A major advantage of this system is that the feedback comes fom multiple sources. If a manager has six subordinates, the manager docs not know which subordinate said what, as the results are summarised and averaged. For example, one may criticise the boss for standing too close to people, another may comment on the boss's aggressive tone, the third may take objection ro the boss's aughty ways of attending telephone calls and shufling papers while a meeting ison. Since such Feedback is “Gffered anonymously, the subordinates may unburden themselves of negative ratings somewhat freely. (T-V.Raos ‘Antonioni; Tandon; Mejia ct al, 1985) including one’s Ignores performance in terms of reaching goals. Colleague's responses tend to be biased. ‘Assesses deny the truth of negative feedback. ‘The system can be used to humiliate people. Linking findings to rewards can prove to be unfair. Scanned with CamScanner‘Ate readig this chapter, you should be able to: ; ‘ ‘compensation’ © Discuss the wage policy in India objectives of compensation planning © Indicate the choices in designing a compensation detail how to establish pay rates system - influencing compensation levels) © nee current trends in executive compensation in Seas Scanned with CamScanner436° 9 the organisation. Gene 10 ages and salaries employ” plans are incentives des Prrance, medical Feretiong fn is 2 comprehensive op. cer ok employees: 18 addition to the ry to employees All these issue, an effective workforce, C ve. Compensation normally receiv rw encourage em indi Ff ober lal Oa play an important role in any HR det Pea! : and certainly influences ny ye | Besging a Compensation 0 Meseieneriae A ; and prestige in nsation affects a person nero is Fawn Ser words, COMPS rte sha a peta, Mo are ny econo have a negative DEBNING the firm's performance and may : beat zoving an organisation in frustration, Employees do not earn enough 10 oreet their basic economic goals, they wit SSax employment elsewhere. Likewise, if they believe that their contributions are undervalued by the ‘organisation, they May leave or exhibit poor work habits, fow morale, and litte commitment to the ‘organisation. Designing an appropriie compensation system is clearly in the best interests of an organisation. At the ame time, organisations cannot stretch themselves beyond a point. Obviously, their ability o pay is constrained by their ability tO ‘compete. (Milkovich 2005) ‘Most Teor companies have page in teypur at pey- for perlormancs ‘compensation plans to retain the competitive edge. The message, of course, is cancer. "We are wiling to reward employee effort and performance and ot ‘creat, Some top executives have gone a step ahead to reinforce an bgatarlan perspective by pegging thelr fortunes to those of employees. in some . top executives have forfeited their bonuses in ord > "employees higher pay. To get the cream of the: See aa - Starbucks's, Procter & Gamble, have long pasiad pauses Wa eM, Meee Sevres ynene, Compendia eat ita a inte market, as the current trends suggest, are Bis poe ree ety atom labour mart wages Wi order o atacand parame y S gs oe ee a ee ae vatcaaTa Me. Moser rodtuce results Dey more indirect 9 «i benefits offered lites that of arument’s effor iployees (0 P represent yt No Cae? an employee. It is @ clear Scanned with CamScanner