ASSIGNMENT

DRIVE
WINTER 2016
PROGRAM
Master of Business Administration- MBA
SEMESTER
Semester 4
SUBJECT CODE &NAME
MU0016 Performance Management and Appraisal
BK ID
B1868

Q.1 Discuss the principles and dimensions of Performance Management

ANS. According to Lockett (1992), performance management aims at developing individuals with the
required commitment and competencies for working towards the shared meaningful objectives within an
organizational framework.
Performance management frameworks are designed with the objective of improving both individual and
organizational performance by identifying performance requirements, providing regular feedback and
assisting the employees in their career development.
Performance management aims at building a high performance culture for both the individuals and the
teams so that they jointly take the responsibility of improving the business processes on a continuous basis
and at the same time raise the competence bar by upgrading their own skills within a leadership
framework. Its focus is on enabling goal clarity for making people do the right things in the right time.
It may be said that the main objective of a performance management system is to achieve the capacity of
the employees to the full potential in favor of both the employee and the organization, by defining the
expectations in terms of roles, responsibilities and accountabilities, required competencies and the
expected behaviors.
The main goal of performance management is to ensure that the organization as a system and its
subsystems work together in an integrated fashion for accomplishing optimum results or outcomes.
The major objectives of performance management are discussed below:

To enable the employees towards achievement of superior standards of work performance.

To help the employees in identifying the knowledge and skills required for performing the job
efficiently as this would drive their focus towards performing the right task in the right way.

Boosting the performance of the employees by encouraging employee empowerment, motivation

and implementation of an effective reward mechanism.

Promoting a two way system of communication between the supervisors and the employees for
clarifying expectations about the roles and accountabilities, communicating the functional and

organizational goals, providing a regular and a transparent feedback for improving employee
performance and continuous coaching.

Identifying the barriers to effective performance and resolving those barriers through constant
monitoring, coaching and development interventions.

Creating a basis for several administrative decisions strategic planning, succession planning,
promotions and performance based payment.

Promoting personal growth and advancement in the career of the employees by helping them in
acquiring the desired knowledge and skills.

Some of the key concerns of a performance management system in an organization are:

Concerned with the output (the results achieved), outcomes, processes required for reaching the
results and also the inputs (knowledge, skills and attitudes).

Concerned with measurement of results and review of progress in the achievement of set targets.

Concerned with defining business plans in advance for shaping a successful future.

Striving for continuous improvement and continuous development by creating a learning culture
and an open system.

Concerned with establishing a culture of trust and mutual understanding that fosters free flow of
communication at all levels in matters such as clarification of expectations and sharing of
information on the core values of an organization which binds the team together.

Concerned with the provision of procedural fairness and transparency in the process of decision
making.

The performance management approach has become an indispensable tool in the hands of the corporates as
it ensures that the people uphold the corporate values and tread in the path of accomplishment of the
ultimate corporate vision and mission. It is a forward looking process as it involves both the supervisor and
also the employee in a process of joint planning and goal setting in the beginning of the year.

Q.2 What do you mean by feedback? Explain its Role, Types and Principles.
Ans: - A helpful way to remember the essentials of good feedback is to remember five specific letters
R.I.G.H.T. Lets take a look at what each letter stands for.
1. Respectful. : - Showing respect for the other person is a fundamental principle for delivering any type
of message, but its especially important when it comes to giving feedback. If people believe you dont

respect them, they probably wouldnt listen to what you have to say. One way to show respect is to ask
permission to provide feedback. One of the questions I always ask those I coach or employ is, If I see
ways in which you can improve your performance, what would you like me to do? In 100% of the cases,
theyve said, I would like you to tell me. When I see things important enough that need correction, I
begin by saying, Maria, you told me you wanted me to tell you when I noticed things that you could do to
improve your performance. Then in a respectful way, I share with her how she can improve her results
and enhance her market value. As the relationships deepen and people begin to value my feedback, I just
give my feedback in a caring manner without tiptoeing around. They know I want the best for them, so
they are always open to hearing the little things they can do to improve. If you have not asked for
permission in advance, you could say, Would you be open to hearing some feedback on your report?
Asking permission wont take much time and goes a long way to communicate your respect for the other
persons time and efforts.
2. Issue specific:- The key point here is keep your feedback message centered on the performance or issue
that needs to be correctednot the person or personality. Its very easy for an individual who is receiving
feedback to become defensive, so do your best to stay focused on the specific performance aspect that
needs to be improved.
3. Goal oriented: - Remember, the objective of constructive feedback is to improve performance. By
including a discussion of goals in your feedback, you provide something practical and constructive to
focus on. In working with entrepreneurs who are building their businesses, I remind them of their goals
and help them see how they will be more likely to achieve them if they make the refinement I am
suggesting. If you are in management, the goals could include those of the company, department, team, or
project. You could also remind your people that when they do the little things to get better, they are
increasing their value to the company and to the market place.
4. Helpful: - When giving feedback, you are in a position to help someone become better in some way. As
much as possible, ensure a helpful tone and show your support by recognizing the persons efforts. If you
are always pointing out the good things people do and encouraging them, they will be more open to
hearing your constructive feedback.
5. Timely: - Feedback is most valuable when it is delivered as soon as possible while the event or
performance issue is fresh in everyones mind. Business and life move at a pace that seems to always be
increasing. In order for your feedback to have a real impact, it needs to be fresh and relevant.

Que3:- 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 3:-Purpose of Performance Appraisal
1

If organizational goals are converted into objectives and job tasks and these are executed by
employees, it follow that the effectiveness with which tasks are performed has a direct bearing on
organizational effectiveness. PE identifies whether an individual is actually contributing to the job.

It helps in giving feedback of the performance, which in turn, helps in performance improvement.

Gives vital input into strategic decision making since the evidence of existence of high levels of
competency in the organization encourages investment decisions, expansion and the like.

Performance Appraisal Process

Employee fills the self-appraisal form and submits to the manager: In relation to each
objective and KRA, the individual will record his performance as evaluated by him. The
evaluation may be figurative.

Manager concurs or differs with the self-appraisal: When he/she does not concur, it is normal
to give reasons to substantiate that. While concurring, he may agree with the incidents that the
employee has cited and may add to them.

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.

They develop a dialogue and jointly evaluate the performance: It is fast, easy and comfortable.
Problem arises because employee may have supported the manager in several ways but may have
failed in actual performance objective. This makes the dialogue difficult.

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.

Employee concurs or gives a rebuttal: The employees should be given a chance to rebut the
decision of the manager. This is important to meet the ends of justice. This should be recorded and
signed by both.

Rebuttal is recorded and responded by the manager: 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.

The documents are sent to HR for record: The documents are processed to HR for postappraisal action.

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

Management.
ANS.

Listening is the ability to accurately receive and interpret

messages in the communication process.

Listening is key to all effective communication. Without the
ability to listen effectively, messages are easily misunderstood.
As a result, communication breaks down and the sender of the
message can easily become frustrated or irritated.
If there is one communication skill you should aim to master,
then listening is it.
Listening is so important that many top employers provide listening skills
training for their employees. This is not surprising when you consider that
good listening skills can lead to better customer satisfaction, greater
productivity with fewer mistakes, and increased sharing of information that in
turn can lead to more creative and innovative work.
Many successful leaders and entrepreneurs credit their success to effective
listening skills. Richard Branson frequently quotes listening as one of the
main factors behind the success of Virgin.

Effective listening is a skill that underpins all positive human relationships.

Spend some time thinking about and developing your listening skills they
are the building blocks of success.

See our pages: Employability Skills and Customer Service Skills for more examples of the
importance of listening in the workplace.

Good listening skills also have benefits in our personal lives, including:
A greater number of friends and social networks, improved self-esteem and confidence, higher
grades at school and in academic work and even better health and general well-being.
Studies have shown that, whereas speaking raises blood pressure, attentive listening can bring it
down.

Listening is Not the Same as Hearing

Hearing refers to the sounds that enter your ears. It is a physical process that, provided you
do not have any hearing problems, happens automatically.
Listening, however, requires more than that: it requires focus and concentrated
effort, both mental and sometimes physical as well.
Listening means paying attention not only to the story, but how it is told, the use of
language and voice, and how the other person uses his or her body. In other words, it
means being aware of both verbal and non-verbal messages. Your ability to listen
effectively depends on the degree to which you perceive and understand these messages.
Listening is not a passive process. In fact, the listener can, and should, be at least as
engaged in the process as the speaker. The phrase active listening is used to describe this
process of being fully involved.

Q5 Define the term Ethics. Discuss the key factors involved in ensuring Ethics in
Performance Management.
Answer 5:-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.
Most philosophers conclude that ethical failure occurs because of lack of character or, in other words,
virtuous people will live ethically. 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 behavior helps
or harms sentient creatures.
Key Factors to Ensure Ethics in Performance Management

Define and describe the ethical standards: Along with ethical standards to handle the external
agencies, it is necessary to define the ethical standards for internal actions, particularly PM. The
PM document should have a chapter containing what is considered ethical and what is not in the
PM context and the consequences of following these or disobeying them.

Plan the PM well in advance: It is unethical to include goals in retrospect, i.e., you should give
the goals at least a month prior to its being effective so that the employee has a head start.

Take collective decision: The decisions made as a group usually produce better quality decisions
as this will be inclusive of the diverse interests and perspectives. Such decisions taken generally
increase creditability of process and in turn benefit the outcome because of the reduced suspicion
of unfair bias.

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.

Ethics during feedback: Give objective and focused feedback. It raises several ethical issues:

Denial of a frank feedback and opportunity to improve may come in the way of future promotions
and increments

Giving a frank feedback to one person while denying it to another, whatever be the premise,
militates against justice

Not giving frank feedback and consequent denial of achieving organizational objectives is not
from an organizational perspective.

Q.6 Write short notes on the following:

a)MBO
b)Behaviorally Anchored Rating Scales Method (BARS)
a) Explaining the meaning and steps in MBO
b) Explaining the concept and process of BARS

6 Stages of MBO (Management

by Objectives) Process
ANS.

MBO or management by objectives is defined as a comprehensive

managerial system that integrates many key managerial activities in a
systematic process and that is consciously directed toward the effective
and efficient achievement of organizational and individual objectives.

The practical importance of objectives in management can best be seen by

summarizing how successful managing by objectives works in practice.
The six steps of MBO process are shown below graphically;
1.

Define organizational goals

2.

Define employees objectives

3.

Continuous monitoring performance and progress

4.

Performance evaluation

5.

Providing feedback

6.

Performance appraisal

Lets briefly look at each of these;

1.

Define Organizational Goals

Goals are critical issues to organizational effectiveness, and they serve a
number of purposes. Organizations can also have several different kinds
of goals, all of which must be appropriately managed.
And a number of different kinds of managers must be involved in setting
goals. The goals set by the superiors are preliminary, based on an
analysis and judgment as to what can and what should be accomplished
by the organization within a certain period.

2.

Define Employees Objectives

After making sure that employees managers have informed of pertinent

general objectives, strategies and planning premises, the manager can
then proceed to work with employees in setting their objectives.
The manager asks what goals the employees believe they can
accomplish in what time period, and with what resources. They will then
discuss some preliminary thoughts about what goals seem feasible for
the company or department.
Also, Read Four Common Ingredients that makes up an MBO
Program.

3.

Continuous Monitoring Performance and Progress

MBO process is not only essential for making line managers in business
organizations more effective but also equally important for monitoring the
performance and progress of employees.
For monitoring performance and progress the followings are required;

Identifying ineffective programs by comparing

performance with pre-established objectives,

Using zero-based budgeting,

Applying MBO concepts for measuring individual and

plans,

Preparing long and short range objectives and plans,

Installing effective controls, and

Designing sound organizational structure with clear,

responsibilities and decision-making authority at the appropriate
level.

4.

Performance Evaluation
Under this MBO process performance review are made by the
participation of the concerned managers.

5.

Providing Feedback
The filial ingredients in an MBO program are continuous feedback on
performance and goals that allow individuals to monitor and correct their
own actions.
This continuous feedback is supplemented by periodic formal appraisal
meetings which superiors and subordinates can review progress toward
goals, which lead to further feedback.

6.

Performance Appraisal
Performance appraisals are a regular review of employee performance
within organizations. It is done at the last stage of MBO process.