Master of Business Administration-MBA Semester IVSubject Code – MU0016

Subject Name – Performance Management and Appraisal4 Credits

(Book ID: B1337)

Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

1. Discuss the aims of performance management .

One of the important objectives of performance management is identifying the strengths and weaknesses of employees and finding ways to overcome their shortcomings. This is done by evaluating employee output and the company’s overall ability to meet the goals by having quarterly or annual audits. Often, after an evaluation, there will be widespread company meetings where managers and employees discuss concerns and solutions to problems.

Another objective is to discover where employees and the company are falling short. This is done by going through details such as profits earned, new clients acquired and the contribution of employees to make these things happen. Employees whose contribution are minimal or not up to the mark are counselled on how to improve performance.

The evaluation of an employee’s performance is based on their work output and the amount of time spent by them on the project. Although time spent in an office is not an accurate way of measuring performance, most companies still have the notion that better employees put in longer hours of work. A better way of measuring employee productivity would be to measure the output of work and the accuracy of work completed.

Overall evaluation of a company and its ability to set and reach goals is another important objective of performance management. Increasing revenue is the overall goal of any company. Other goals may be to acquire more or specific clients, develop new products or hire new talent. It is very easy to determine which of these goals have been met, because these are things that can be seen or calculated.

The inability of a company to meet the goals is mainly due to poor leadership, poor planning, poor implementation or poor employee performance. Economic factors also play a major role, but it is better for companies to concentrate on factors that are within their control. The best way of improving a company’s overall output is motivating the employees and improving their performance.

To identify and remedy situations that hinder company performance is another important objective of performance management. This includes replacing underperforming employees, gaining new clients, developing new strategies for reaching the goals and discussing strategies that have worked in the past.

In order to meet the objectives of performance management and improve the overall performance of a company, every employee must work with the team members to develop new techniques and implement changes.

The aims of performance management can be summarised into the following points.

The aims of performance management are:

· To assist in the achievement of enhanced standards of work performance of an employee or class of employees.

· To assist employees to identify the knowledge and skills to perform their jobs efficiently.

· To ensure that the employees work towards the defined goals.

· To ensure that the employees receive regular feedback on performance.

· To assist the employees to achieve personal growth through acquiring relevant knowledge and skills and attitudes.

· To evaluate the company and its ability to set and reach goals.

· To identify and remedy situations that are hindering company performance.

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2. Describe the process of defining expectation.

3. List the characteristics of performance appraisal .

4. Explain the methodology in 360 degree apprised.

5. Explain the performance appraisal feedback model.

6. How is data used for human resource decision . August 2011

Master of Business Administration-MBA Semester IVSubject Code – MU0016

Subject Name – Performance Management and Appraisal4 Credits

(Book ID: B1337)

Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

1. Write a detailed note on the performance management system and appraisal .

Performance management system and appraisal practices in IndiaPerformance management and performance appraisal systems practiced in Indian organisations vary from almost no appraisal to a sophisticated appraisal system.

In some of the small and medium sized organisations, it is common to find no formal mechanisms of appraising performance. Informal appraisal reports are given by senior officers to the top management. At the time of promotion decisions, the top management takes the views of senior officers into consideration.

Performance appraisal systems of some organisations aim simultaneously at different objectives, such as generating data to take personal decisions like rewards, job-rotation, promotions, transfers and creation of a new organisational culture of openness, mutuality, trust and generation of enabling capabilities and employee development that use different components. Larsen & Toubro Limited follows such an appraisal system.

Based on the appraisal practices, organisations can be classified into three categories:

· Organisations that have annual confidential reports which take into consideration only certain traits to be shown by the employee, for example sincerity, hard work, punctuality, appearance, leadership, drive and loyalty and ignore fully the job-related accomplishments of the employee. Most of the government departments in India fall into this category, for example the department of health and family welfare, education, energy and so on.

· Organisations that have semi-confidential formats require the employee who is being evaluated to state their accomplishments. They also take into account such statements of the employee for final assessment by the boss which is on work-related issues as well as behaviours of the employee. The appraiser is also required to discuss with the employee before the final assessment. Public sector industries like Bharath Heavy Electricals Ltd ( BHEL ), Hindustan Machine Tools (HMT), Bharath Earth Movers Limited (BEML), Steel Authority of India (SAIL) and so on fall under this category.

· In between these two sets, there are organisations having appraisals with various degrees of sophistication. Some have a performance-cum-trait based confidential report formats, whereas some others have performance-cum-trait based appraisals open to the employee who is being evaluated for discussion and requiring the employee to make their comments before they are sent to the reviewing authority and then to the personnel department.

The following observations are made from the results of a survey of appraisal practices, which was conducted in 45 different organisations 34 private sectors and 11 public sectors:

· Around 50 percent of the organisations seem to understand the purpose of their appraisal as a tool for regulating employee behaviour as well as developing employee capabilities.

· About 30 percent of the organisations still use appraisals only for controlling and regulating employee behaviour.

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2. List and explain the different types of teams in an organization.

3. List the manager’s responsibility in performance planning.

4. Write a note on traditional methods of performance appraisal .

5. What is BARS explain in detail .

6. Discuss the feedback and amendments .