HUMAN RESOURCE

MANAGEMENT
UNIT-5
Performance Evaluation and Control
Process
 Contents
• Methods of Performance Evaluation
• Feedback – Industry practices
• Promotion, Demotion, Transfer and Separation
• Implications of job change
• The control process – Importance – Methods –
Requirements of Effective Control System.
• Grievances – causes – Implications – Redressed
Methods – Gender Sensitivity.
 Methods of Performance Evaluation

• Performance appraisal is a method of evaluating the

behaviour of employees in the work spot, normally
including both the quantitative and qualitative
aspects of job performance.
• Performance here refers to the degree of
accomplishment of the tasks that make up an
individual’s job.
• It indicates how well an individual is fulfilling the job
demands. Important Features of Performance
Appraisal
 – Traditional Methods
– Modern Methods
– Graphic Rating Scales
– Behaviourally Anchored Rating Scales
– Ranking Method
– Assessment Centre Paired Comparison Method
– Human Resources Accounting Forced Distribution Method
– Management by Objectives Checklist Methods
– Behaviour Observation Scales
– 360 degree performance appraisal
• Simple Checklist Psychological Appraisal
• Weighted Checklist Results Method
 Feedback – Industry practices

• Feedback is an event that occurs when the output of a system is used

as input back into the system as part of a chain of cause and effect.
• In the case of a system which requires knowledge of the output in order
to improve or deliver on a specific output, then feedback is essential
and good.
• Feedback matters. It can make an employee feel good or bad,
worthwhile or worthless, motivated or demoralized.
• That it matters, however, does not mean it makes a positive difference
to the employee or to the team.
• Feedback makes a difference when it helps the employee to think:
– “That will help me do a better job.”
– “I didn’t know I was seen that way. I’m glad to know that.”
– “I can do that!”
• Practice : Distinguish Among Feedback’s Intentions
• Feedback frequently offers a mishmash of evaluation, criticism, correction, recommendation, approval
and encouragement. That mishmash can leave the employee wondering, if not confused.
• Instead, sculpt all feedback from these three intentions:
• Appreciate
• Appreciate an employee’s performance in order to have that performance continue. Appreciating
performance motivates performance for individuals and teams. Appreciate both specific actions and
overall performance. Recognize the value provided, and express gratitude for the contributions made.
• Evaluate
• Evaluate performance in light of desired standards. Your evaluative feedback should include examples of
surpassing the standard and examples of falling below the standard, as necessary. The positive evaluation
motivates continuation, while the negative evaluation motivates correction and improvement.
• Coach
• Coach toward improvement as add-on feedback. Coaching helps employees apply the feedback to
improve their performance; in this way, it complements appreciative and evaluative feedback. Relating
coaching to one specific feedback point will ensure the greatest success.
• A single feedback session may include all three of these intentions. Be sure to distinguish among them
when you prepare and when you present the feedback. The employees who recognize that the feedback
appreciates their work, evaluates their performance and coaches for improvement will more readily put it
to work.
Promotion, Demotion, Transfer and Separation

• Promotions: means an improvement in pay, prestige, position

and responsibilities of an employee within his or her
organization.
• Transfer: Transfer involves a change in the job (accompanied by a
change in the place of the job) of an employee without a change
in the responsibilities or remuneration.
• Demotion: The permanent movement of a staff member from
one position in one job class to a position in another job class of
decreased responsibility or complexity of duties and in a lower
salary range.
• Separations: Lay-offs, resignations and dismissals separate
employees from the employers.
• Types of promotion
• Promotion by seniority
In a straight seniority system—where the only factor in allocating
jobs is length of service—a worker would enter the organization at
the lowest possible level and advance to higher positions as
vacancies occur
•    Promotion by Merit
Promotions based on merit advance workers who are best qualified
for the position, rather than those with the greatest seniority.
When present employees are applying for a position, a worker’s
past performance is also considered. Effective performance
appraisal helps build trust in the system.
Reason for Transfer
• To avoid favouritism and nepotism. 
• To avoid gaining capacity of influencing and egocentrism. 
• To avoid monotony in the work of an employee. 
• Makes an employee accountable to his seat, so as not to find mistake by his successor. 
• So as to avoid excess dependency on particular employee, otherwise may affect the
purpose of hierarchy and lose control over subordinates. 
• To create transparency among the employees and their work. 
Types of Transfer
• Employee transfers may be classified as below.
– Production transfers
– Replacement transfers
– Versality transfers
– Personnel or remedial transfers
– Shift transfers
•  Types of Separation
A.        Resignation
B.         Retirement
C.        Probationary Releases and Extensions
D.        Termination for Cause
E.        Resignation in Lieu of Termination
F. Termination of Employment Contracts
I. Layoff
 Implications of job change

• Employees, these days want a fulfilling career and organizations need to give them.
The traditional psychological set up of individuals has changed and they no longer
have the same interests.
• They desire for a boundary less, alive and flourishing career where they get a chance
to shape their lives according to their requirements.
• Organizations need to understand the desires and demands of their employees if
they want to create a pool of talent for them and ensure better working all through.
• In order to strike a balance with continuous workplace changes, both employees and
organizations have to come to the mutually beneficial terms so that both can meet
their requirements and future aspirations.
• Consider the following:
– Job is stimulating & challenging.
– Able to learn new things and develop your skill set.
– Achieve measurable results.
– Feel valued and a core part of the team.
– Opportunities to grow and progress within the company.
– Be part of a positive culture where contributions are appreciated.
 The control process
• Controlling is the process by which management assures
that actual activities conform to planned activities.
• Controlling is the managerial process for measuring
progress toward planned performance and, when
required, taking corrective actions.
• Importance of Control
– Adapting to changing conditions
– Minimizing mistakes and errors
– Coping with organizational complexity
– Minimizing costs
• CONTROL PROCESS:
– Establish standards
– Measure performance
– Compare performance & standards
– Evaluate performance & take action Change the
standards Correct the deviation
• Forms of Control Process
• In order to keep focus on a specific set of goals
for different departments/units of an
organization, the controlling process is divided
into three main forms.
• Those forms are-
– Strategic Control
– Tactical Control
– Operational Control
 Requirements of Effective Control System
• A control system is not an automatic phenomenon but deliberately
created.
• Though different organisations may design their control systems according
to their unique and special characteristics or conditions, yet in designing a
good and effective control system the following basic requirements must
be kept in view: 
– Focus on Objectives and Needs
– Immediate Warning and Timely Action
–  Indicative, Suggestive as well as corrective
–  Understandable, Objective, and Economical
–  Focus on Functions and Factors
– Strategic Points Control
– Flexibility
–  Attention to Human Factor
 Grievances – causes
– Implications
• According to Michael J. Jucions define Grievance as, “Any discontent of
dissatisfaction whether exposed or not whether valid or not arising out
anything connected with the company which an employee thinks, believes
or even feels to be unfair, unjust or inequitable”.
•  Causes of Grievances:
– The causes of employee grievances include:
–  Demands for individual wage adjustments;
– Complaints about the incentive system;
– Complaints about the job classifications;
– Complaints against a particular foreman;
– Promotion;
– Violation of contracts relating to collective bargaining;
– Improper job assignment;
– Transfer from another department or another shift.
• Implications of Grievances
– Low quality production.
– Increase in cost of production per unit.
– Increase in wastage of material, spoilage leakage of machinery.
– Increase in the rate of absenteeism and turnover.
– Reduced level of commitment, sincerity and punctuality.
– Reduced level of employee morale.
– Increase in the rate of accidents.
– Increase in discipline cases.
– Increase in unrest and thereby machinery to maintain industrial
peace.
– Increase in degree of supervision and control.
 Gender sensitivity
• Gender sensitivity is the process by which people are made aware of
how gender plays a role in life through their treatment of others.
• Gender sensitivity trainings are used to educate people, usually employees, to
become more aware of and sensitive to gender in their lives or workplaces.
• The concept of gender sensitivity has been developed as a way to reduce barriers
to personal and economic development created by sexism. 
• Gender sensitivity helps to generate respect for the individual regardless of sex.
•  Gender sensitivity is not about pitting women against men.
• On the contrary, education that is gender sensitive benefits members of both sexes.
• It helps them determine which assumptions in matters of gender are valid and
which are stereotyped generalizations.
• Gender awareness requires not only intellectual effort but also sensitivity and
open-mindedness.
• It opens up the widest possible range of life options for both women and men.
• As universally recognized at the World Conference on Women in Beijing in 1995,
countries will neither prosper nor thrive unless they are equally supportive of
women and men in their quest for a fulfilling life.
THANKS