Swapnil Project[1]

8/6/2019 Swapnil Project[1]

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Moser Baer Private Limited

Submitted by:

SWAPNIL PANDEY

Roll no: 0815370042

MBA (MARKETING & HR)

Under Guidance:

Mr. SAROJ KUMAR DASH

Senior Lecturer

SKYLINE INSTITUTE OF ENGINEERING & TECNOLOGY

GREATER NOIDA

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CONTENTS

S.No. Particulars Page No.

1. DECLARATION

2. ACKNOWLEDGEMENT

3. ABSTRACT

4. OBJECTIVE

5. COMPANY PROFILE

6. RESEARCH METHODOLOGY

7. INTRODUCTION OF THE TOPIC

8. PMS OF MOSERBAER

9. PMS OF OTHER COMPANIES OR

SECTORS10. FINDING AND RECOMMENDATION

11. BIBLIOGRAPHY

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DECLARATION

I hereby declare that I SWAPNIL PANDEY (MBA 2nd year)

Student of skyline institute of engineering and technologyGreater Noida have done my research in human resource.Research topic is based on

A Comparative study of performance management systemThis project is the result of my genuine hard work andrigorous study whatever mentioned, composed and concludedis valid to the best of my knowledge.

SWAPNIL PANDEY

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ACKNOWLEDGEMENT

The entire project schedule format were drawn and executed under

the able guidance and supervision of my project guide. I would liketo express my sincere gratitude to all the members of Moser Baer

Private Limited and especially Mr. Kapil Seth for giving me the

opportunity to work in his organisation. I would like to thank

Mr. Naresh Matta who guided me throughout this project. I am also

extremely thankful to the employees of organisation for there

cooperation and support.

I am thankful to my faculty member without whom I would not be

able to bring out this project. My sincere gratitude is to MrR. Singh

(H.O.D) who provided me with all the necessary facilities. I would

also appreciate the cooperation of my peers in bringing out this

project. Last but not the least I would like to thank my family for

supporting me throughout this project.

SWAPNIL PANDEY

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ABSTRACT

The entire research project is result of keen observation of the

phenomena of Performance management system of Moser Baer. The

title Comparative study of performance management was chosen

for research so as to analyse the performance management

effectiveness of Moser Baer against other companies or sectors

performance management. The main objective of choosing this topic

to study the PMS of Moser Baer and other sectors so as to determine

the shortcomings of present performance management system and

suggest a mean to strengthen the present system. The research is

descriptive and takes into account the secondary data collected from

intranet of organisation, books, journals, internet and from employees

The conclusion drawn was that the performance management system

Of Moser Baer is very efficient in itself. The organisation use 360

Degree appraisal method for top management and critical incident

method for the grade AGM and below. Although the PMS of

Moser Baer is very effective but it has certain drawback, the

biasness of supervisors and the performance cycle is annual one.

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The performance cycle should be half yearly and quarterly review

meetings should be held to monitor progress. Every method has its

Own advantages and disvantages the main focus should to minimise

the disvantages. The performance management should aim at

increasing the performance as well as morale of employees .

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OBJECTIVE OF THE RESEARCH

1. TO STUDY THE PERFORMANCE MANAGEMENT SYSTEM

OF MOSERBAER AND UNDERSTAND THE METHOD OF

PERFORMANCE APPRAISAL DONE IN MOSERBAER

2. TO COMPARE THE PERFORMANCE MANAGEMENT

SYSTEM OF OTHER COMPANIES AND SECTOR

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COMPANY PROFILE

ABOUT MOSERBAER

Moser Baer India was founded in New Delhi in 1983 as a Time Recorder unit in technicalcollaboration with Maruzen Corporation, Japan and Moser Baer Sumiswald, Switzerland.

In 1988, Moser Baer India moved into the data storage industry by commencingManufacturing of 5.25-inch Floppy Diskettes. By 1993, it graduated to manufacturing 3.5-inch Micro Floppy Diskettes (MFD).

In 1999, Moser Baer India set up a 150-million unit capacity plant to manufacture Recordable

Compact Disks (CD-Rs) and Recordable Digital Versatile Disks (DVD-Rs). The strategy forthe optical media project was identical to what had successfully been implemented in thediskette business - creating a facility that matched global standards in terms of size,technology, quality, product flexibility and process integration. The company is today theonly large Indian manufacturer of magnetic and optical media data storage products,exporting approximately 85 percent of its production.

Since inception, Moser Baer has always endeavored to create its space in the internationalmarket. Aiding the company in its efforts has been a carefully-planned and sustainable

business model - low costs, high margins, high profits, reinvestment and capacity growth.Along the way, deep relationships have been forged with leading OEMs, with the result thattoday there are hardly any global technology brands in the optical media segment that MoserBaer is not associated with.

In 2006, the company announced its foray into the Photovoltaic and Home Entertainmentbusinesses. In 2007, the IT Peripherals and Consumer Electronics division was formed.

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HISTORY

Mr Deepak Puri got a loan of Rs 50,000 to start his company.The company was founded in New Delhi in 1983 by Mr. Deepak Puri. It started as a Time Recorderunit in technical collaboration with Maruzen Corporation, Japan and Moser Baer Sumiswald,Switzerland. Moser Baer initially manufactured 5.25" Floppy Diskettes, graduating to 3.5" MicroFloppy Diskettes (MFD) in 1993. Today, Moser Baer is the world's fifth-largest manufacturer ofMFDs. In 1999, Moser Baer set up a 150-million unit capacity plant to manufacture RecordableCompact Disks (CD-Rs) and Recordable Digital Versatile Disks (DVD-Rs). The company is today theonly large Indian manufacturer of magnetic and optical media data storage products, exportingapproximately 90% of its production. Beginning early 2000, the company has diversified into severaltechnologies and product lines. While this entails certain risks, it has been a successful attempt so far.The approach of the firm is succinctly illustrated by Mr. Puri's explanation below: when you arriveat a crossroad,you have to do a calculated risk to turn in the right direction.

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TIMELINE

1983 -Year of Incorporation

1985 -Production of 8.0"/5.25" disks commences

1987 -Production of 3.5" disks commences

1998 -Moser Baer India gets ISO 9002 certification

1999 -Production of CD-Rs commences

2000 -Production of CD-RWs commences

2002 -Production of cake and jewel boxes begins

2003 -Entry into DVD-R formats Commissioning of the world's single-largest opticalmedia production facility in Greater Noida Largest-ever Indian manufacturing dealwith Imation Corp, USA.Introduction of the 'moserbaer' brand in the Indian market

2004 -Technology license agreement with Hewlett-Packard to manufacture opticalmedia using 'Lightscribe' technology Private equity firm Warburg Pincus LLC invests$149 million (about Rs 675 crore) in Moser Baer Agreement with Hewlett-Packard tomanage the manufacturing, marketing and distribution of HP-branded DVD+Rs,DVD+RWs, CD-Rs and CD-RWs, storage media in India and the SAARC region

Moser Baer named as contributing member of the Blu-ray Disc Association.

2005 - ISO14001 &OHSAS 18001 certification for Moser Baer plants.

2007 -Moser Baer and Philips entered into a definitive agreement under which MoserBaer acquired OM&T B.V., a specialised technology company for optical R&D,which currently was a 100 per cent subsidiary of Philips. Moser Baer then started

production ofBlue Ray Diskand most important next gen media Holographic DataStorage .

2009 -Introduction of low cost MP3 players in Indian Market. [3]

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http://wapedia.mobi/en/ISOhttp://wapedia.mobi/en/ISOhttp://wapedia.mobi/en/OHSAS_18001http://wapedia.mobi/en/OHSAS_18001http://wapedia.mobi/en/Blu_Rayhttp://wapedia.mobi/en/Holographic_data_storagehttp://wapedia.mobi/en/Holographic_data_storagehttp://wapedia.mobi/en/OHSAS_18001http://wapedia.mobi/en/Blu_Rayhttp://wapedia.mobi/en/Holographic_data_storagehttp://wapedia.mobi/en/Holographic_data_storagehttp://wapedia.mobi/en/ISO


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PRODUCTS OF MOSERBAER

Moser Baer, the world leader in Optical Media is scaling new heights in the pc peripheralswith its wide range of products. Moser Baer's IT Peripheral product range includes USB

Drives, Memory cards, DVD writers, PC Peripherals, External Hard Drives, TV tunercards, and UPS.

With the objective of providing consumers value for money and reliable products, companyhas launched TFT Monitors adding yet another sleek and stylish product in its portfolio. It iscrafted in a manner that it occupies less table space and lesser power. It has a 15" widedisplay with high resolution and fast response time of 6ms, weighing only 4 kilograms. Theelegance of the Moser Baer TFT Monitor is not just limited to its sleek design but also itsvibrant colours and superior clarity. It also has inbuilt speakers for good sound quality andoffers users a perfect balance between performance and price.

In Storage devices like Memory cards, USB drives, SD Cards, and external hard drives,consumers have a wide range to choose from. Moser Baer's UPS has been designed to protect

personal computers and peripherals from possible power hazards. Its compact size makesitself very suitable for offices and home studios with limited space. The optical disc driveshave fast access time and high data transfer rate. In the headphone category there are about 14models that look trendy and deliver good sound quality. All the Moser Baer products aretechnically sound and have great features to suit consumer's needs. The company also has arobust service network to help consumers.

Digital photo frames

LCD tvs

MP3 players

Media players

Storage devices

Colour televisions

Multimedia speakers and home theatres

UPS displays pc peripherals

Optical disk drives

DVD players

Portable DVD players

PC casing

PC peripherals

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PERFORMANCE OF ORGANISATION

2008 EFY 2008 Special Award to Mr.Deepak Puri,CMD,MoserBaer

Golden Peacock Environmental Eco Innovation Award 2008

2007 Golden Peacock Award for Occupational Health andSafety '07

Award for being 'Highest Exporter in IT Sector' from'Export Promotion Council for EOUs & SEZ Units'.

Business Standard

'Most Innovative Company of the Year Award' 07'

ELCINA - DUN& BRADSTREET Awards, 2006 - 07

in the categories- Quality, R&D and Business ExcellenceAward by "Electronics and Computer Software Export

Promotion Council (ESC)" in IT Hardware category, titled

"Award for Maximum IT Hardware Exports"

2006 "BEST OF ALL" Rajiv Gandhi National Quality Award

by Bureau of Indian Standards

Indira Awards for Marketing Excellence awarded "CEOof the Year Award" to Mr. Deepak Puri, CMD

"Electronics Organisation of the Year Award" from

Electronics for You Publication Group.PHDCCI - Distinguished Entrepreneurship Award' 06 to

Mr. Deepak Puri, CMD

2005 Golden Peacock Award for Competence in Quality andInnovation Management

Global Industry Leader Award" to Mr. Deepak Puri and"Excellence in Manufacturing Award" to Moser Baer fromOptical Disc Systems

Golden Peacock Environment Management Award

Plasticon Award 2005 by Plast India Foundation

2004 Frost & Sullivan Awards for excellent Manufacturing

Practices.

DataQuest Top 20

Deloitte Award for Fast Growing IT Company andManufacturing Excellence

Corporate Role Model and Lifetime Achievement Award toMr. Deepak Puri, Managing Director, Moser Baer by Centre of

International Business., Amity Business School, Noida

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2003 Dataquest IT Man of the Year Award 2003 to Mr. Deepak PuriManaging Director, Moser Baer

Business Today - India's Best Managed Company for the year

2003

NMA Leadership Award 2003 to Mr. Deepak Puri, ManagingDirector, Moser Baer

Deloitte Touche Tohmatsu Fast 500 - Asia Pacific'sLeading Technology Companies in 2003

2002 Dataquest Awards - Top Growth Company for the year2002-03

Ernst & Young Entrepreneur of the Year 2002 forManufacturing to Mr. Ratul Puri, Executive Director, MoserBaer

LMA (Ludhiana Management Association) VardhmanAward for Entrepreneur of the Year 2002 to Mr. Deepak Puri,Managing Director, Moser Baer

2001 All India Award - Highest Exports in Electronic Hardware(Non-SSI) for 2000-01

The Economic Times Awards for Corporate Excellence -Company of the year 2001-02

Dataquest Top 20 - Fastest Growth Company for the year2001-02

ELCINA (Electronic Component Industries Association)Electronics Man of the Year to Mr. Deepak Puri, ManagingDirector, Moser Baer

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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research

problem. Research in common sense refers to a search for knowledge.

In fact research is a scientific investigation. This research project is

Descriptive research type.

Descriptive research describes characteristics about the population or

phenomena being studied. In other words descriptive research answers

the questions who, what, where, when and how. Every research work

requires systematic data collection so that logical conclusion can be

derived by analysis of data.

Depending on sources utilised data can be classified as follows:

1. Primary data: Primary data is one which is collected by

investigator himself for the purpose of specific inquiry or study.

2. Secondary data : When an investigator uses the data ,which has

already been collected by others, such data is called secondary data.

The entire research project is based on secondary data. The various

information about the research topic was collected from employees of

Moser Baer, intranet of organisation and internet as well as from

books and different journals.

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INTRODUCTION

1.WHAT IS PERFORMANCE MANAGEMENT?

Performance management is a forward looking process for setting goals and

regularly checking progress toward achieving those goals. It is a continual

feedback process whereby the observed outputs are measured and compared

with the desired goals. Any discrepancy or gap is then fed back into changing the

inputs of the process, so as to achieve the desired goals. The feedback process

involves communicating the required change and promptly taking action to effect

the desired change. This helps the system or organization being managed to

achieve the required goal or the strategic plan. Performance management describes

the processes by which managers improve the performance of their employees

by utilising their power to reward, develop or discipline as appropriate. A

performance management system documents these processes as company

policy and may form a legally binding contract between the company and one or

more employees. It can be negotiated through individual contracts or by

collective bargaining either directly with employees or with the involvement of a

union.

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2.Definition of Performance Management

Performance management is the practice of actively using performance data to improve the

public's health. This practice involves strategic use of performance measures and standards toestablish performance targets and goals, to prioritize and allocate resources, to informmanagers about needed adjustments or changes in policy or program directions to meet goals,to frame reports on the success in meeting performance goals, and to improve the quality of

public health practice.

Performance Management components include:

Performance Standards - establishment of organizational or system performance standards,targets and goals and relevant indicators to improve public health practice

Performance Measures - application and use of performance indicators and measures

Reporting of Progress - documentation and reporting of progress in meeting standards andtargets and sharing of such information through feedback

Quality Improvement - establishment of a program or process to manage change andachieve quality improvement in public health policies, programs or infrastructure based on

performance standards, measurements and reports.

A Performance Management System is the continuous use of all the above practices so that

they are integrated into the organization's core operations. Performance management can becarried out at multiple levels, including the program, organization, community, and statelevels

Performance Management (the successor of Management By Objectives or MBO) is theessence of managing, and the primary "vehicle" for getting the desired results throughemployees at all levels in the organisation. In the absence of such a system, staff members areunclear as to the employer's expectations regarding performance objectives andstandards/targets, leading to low productivity, costly mistakes, stress, de-motivation, and

conflict. A sound Performance Management Process/System subscribe to the crucialPrinciple: "What gets measured gets done".

The days of having a "one-set-of-measures-fits-all " Performance Management System arelong gone and inherently flawed. Performance objectives and measures need to be specific to

job categories and individual roles.

They should also clearly link to Organisational Strategic Goals. Balanced Scorecard KPItechnology ensure a proper balance in the types of measures (based on four perspectives ofthe business) used at corporate level, and cascaded down to the lowest position. This ensuresvertical and horisontal alignment and integration of the key performance measures throughout

the organisation to ensure optimal productivity and bottom-line results.

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2.1 ESSENTIALS COMPONENTS OF PERFORMANCE

MANAGEMENT SYSTEM

The essential components of a performance management system are:

A performance plan is negotiated between a manager and employee for a givenperiod (usually one year). The employee agrees to achieve a specified level ofperformance in exchange for a reward or to avoid discipline. The plan also commitsthe manager to assist the employee improve his/her performance.

During the year the manager gives employees feedback on their performance andmay suggest how it can be improved.

Performance is appraised at year-end and decisions are made to reward, discipline

or develop employees. Performance is measured in terms of either goals orcompetencies. Goals are best reserved for professional or managers andcompetencies used for employees who are less skilled and/or have less control overtheir work environment. Performance pay or promotional opportunities are typicalrewards. Discipline may include dismissal, suspension, loss of privileges orcounselling and are usually applied only to wilful misbehaviour.

Employee development, (rather than discipline) is used to address incompetence.Employees who either cannot or will not successfully undertake this developmentare made redundant to their position and either redeployed to a position they canhandle (if one is available) or given a redundancy package.

The cycle is completed with a new performance plan. Performance Management

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Performance Planning

Establish and align organizational, functional, and individual goals

Define expectations

o Key result areas

o Behavioral

Metrics

Create scorecard to define key organizational priorities

Identify quantitative and qualitative measurement of goals

Feedback and Appraisal

Establish mechanisms for frequent, open, honest feedback

Create appraisal process that ensures consistency and alignment throughout

individual functions and across the organization

Rewards and Recognition

Ensure that reward and recognition programs fully support the achievement of

strategic goals

Communication

Build a communication infrastructure that reinforces all components of

Performance Management

Provide training to managers on their roles and responsibilities in the

Performance Management process

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2.1.FEATURES OF PERFORMANCE MANAGEMENT

A good staff performance management system normally consists of the following features :

A. OPEN FAIR AND OBJECTIVE

The system designed should aim to facilitate objective and fair assessment by themanagement and encourage frank and constructive feedback of appraisees. These can beachieved through :

setting clear targets and standards;

providing opportunities for supervisors to inform appraisees of their performance regularly, tobe accompanied by timely coaching and counseling

permitting the appraisee to have access to the entire report and to review the appraisal before

the appraisal interview; and

where necessary an assessment panel should be formed to ensure fairness inperformance rating.

B. COMPETANCY BASED

Competency refers to the knowledge, attributes, attitude and skills required to perform a jobeffectively. There are two broad categories of competencies : core competencies and

functional competencies. Core competencies are the generic competencies associated witheffective performance required by a group of job holders in a department across differentdivisions/sections. An example is managerial competencies required for staff in managerial

positions. Functional competencies are the competencies specific to certain job functions,such as computer programming skills for programmers in the Computer Section andclassroom skills for trainers in the Training Division of a department.

Competencies are reflected in a set of desirable behaviour patterns which are observable,measurable and can be tracked and monitored.

developing and using a competency-based approach enables departments to use a common

language and structured way to define and describe appropriate job behaviours at differentranks as officers progress through the grade. The approach help to assess staff's potential and

promotability to the next higher rank and identify development needs of the staff. It alsoenhances the objectivity and transparency of performance assessment.

When core competency-based approach is adopted, departments need to ensure that thecompetencies are developed properly by :

aligning individual performance objectives with departmental ones, securing senior management's commitment, and

involving staff in the process.

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Furthermore there should be a clear differentiation in competency descriptions amongdifferent ranks in the same grade. An unduly long list of competencies may adversely affectthe effectiveness of the system.

For competencies to effectively serve the needs of a department, they should be department-

specific and reflect the missions, values and culture of the department. Any list ofcompetencies cannot be exhaustive. It only provides the common language and understandingof the key dimensions and descriptions that warrant attention.

Upon implementation, there should be proper and adequate training for the staff on theimplementation of the performance management system.

C.A CONTINOUS PROCESS

Staff performance management cycle is a continuous process which involves :

performance planning

continuous coaching and development

interim review

performance appraisal

a.Performance planning

Performance planning starts with a session between the appraising officer and the appraisee toagree on the list of objectives/responsibilities for the coming appraisal period. The agreed listwill include the objectives of the section/unit and the broad areas of responsibilities of theappraisees, that is key result areas (KRAs).

Examples of KRAs are :

timely completion of caseloads

customer satisfaction and relations

staff development resource management

resource management

Specific, measurable, achievable and timebound targets will then be set on the basis of theKRAs. The appraising officer should ensure that these targets are in alignment with theoverall departmental objectives and that they are clearly understood by the appraisee.

Depending on the nature of the job, appraising officers may alternatively agree withappraisees a list of key responsibilities with specific performance results. This list providesthe appraisees and the appraising officers with the yardstick to objectively discuss, monitor

and assess performance. The list should be kept under frequent review and be revisedwhenever there are changes in the job.

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b.Continuous coaching and development

The performance management system is a on-going process. After work targets and standards

have been decided and performance objectives agreed upon, the appraising officer should startthe coaching and development process which threads through performance planning, regularfeedback and guidance, interim reviews and performance appraisal. Coaching is about

providing regular feedback to staff on their performance. It aims at : -

giving recognition to encourage and reinforce good performance; and

providing advice and counselling to help improve performance, and where appropriate,take corrective action.

Through the coaching sessions, training needs should also be identified and followed up.

c.Interim review

An interim review is a scheduled, formal discussion between the appraising officer and theappraisee to review the latter's progress in meeting the agreed objectives/responsibilities. Thisusually takes place in the middle of the appraisal period.

An interim review should take the form of a structured session to provides an opportunity foradditional coaching, for problem solving, and for updating objectives/responsibilities. Aninterim review aims to :

identify performance results that are below, on or above target and determine appropriate

responses on corrective measures. Supervisors should use this occasion to recognize and

encourage good performance. On the other hand, performance below targets is to be pointed

out and guidance for improvement to be given;

assess and follow up development or training need of staff to assist them in achieving theirobjectives/responsibilities.

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Performance Management

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3. Objectives of a Performance Management System

Performance management is an integral part of a comprehensive human resource managementstrategy. Its objective is to maximize individuals' performance and potential with a view toattaining organizational goals and enhancing overall effectiveness and productivity. A staff

performance management system aims: -

A) To help achieve departmental objectives through staff

Departments formulate strategies and objectives to support their vision, mission and values.To achieve these broad objectives, departments have to turn them into specific objectives andtargets for the divisions, sections, units and subsequently individual job objectives and targetsfor implementation. As individual job objectives are linked to those of departments', the

performance of individual officers contributes to the delivery of departmental objectives.

B) To evaluate performance and improve communication between managers and staff

on managing performance

The staff performance management system provides a mechanism to monitor and evaluatestaff performance. Performance objectives are set at the beginning of the performancemanagement cycle through open discussion between the supervisors and the appraisees.Progress is monitored regularly and feedback from staff and supervisors is collated to helpclarify objectives and output expectation; and to enhance performance.

C) To provide opportunities for development

The staff performance management system serves as a multi-purpose management tool. Itprovides valuable information to help identify individual training needs so as to enhanceperformance and to develop the potential of the staff for further advancement.

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The following figure provides an illustration of how performance management links withother human resource functions :-

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4. Performance Management Process Materials

The Performance Management Process (PMP) is an ongoing process that begins with setting

expectations and goals for employees, continues with ongoing feedback throughout the year,

and concludes with a formal PMP form and appraisal discussion. To help with this process,

employees and managers can use the forms and job aids listed below to ensure that the goal-

setting and feedback sessions are successful.

Employees

Employee: How to Prepare for a Performance Review

Self-assessment Worksheet

Managers

Supervisor: How to Prepare for a Performance Review

How to Conduct a Fair Evaluation

Levels of Performance

Performance Analysis Worksheet

Challenges in Providing Feedback

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http://www.ubalt.edu/downloads/EmployeePreparingforPerformanceReview.dochttp://www.ubalt.edu/downloads/SelfAssessment.dochttp://www.ubalt.edu/downloads/SupervisorPreparingforPerformanceReview.dochttp://www2.ubalt.edu/downloads/FairEvaluation3.dochttp://www.ubalt.edu/downloads/LevelsofPerformance.dochttp://www.ubalt.edu/downloads/PerformanceWorksheet.dochttp://www.ubalt.edu/downloads/ChallengesinProvidingFeedback.dochttp://www.ubalt.edu/downloads/EmployeePreparingforPerformanceReview.dochttp://www.ubalt.edu/downloads/SelfAssessment.dochttp://www.ubalt.edu/downloads/SupervisorPreparingforPerformanceReview.dochttp://www2.ubalt.edu/downloads/FairEvaluation3.dochttp://www.ubalt.edu/downloads/LevelsofPerformance.dochttp://www.ubalt.edu/downloads/PerformanceWorksheet.dochttp://www.ubalt.edu/downloads/ChallengesinProvidingFeedback.doc


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How Employee to Prepare for a Performance Review

Verify when and where the Performance Review is to be held:

Date: Time: Place:

Review the results of the last Performance Review conducted.

Review the results of the Midway Feedback session.

Review the current review period PMP form, the factors and their definitions.

Review the expectations set at the beginning of the performance review period. Alsoreview any expectations that have been amended or revised throughout the review period.

Gather documentation to support or define both positive and negative performanceincidents.

Read the rating scale and the definitions located on the evaluation form. Be sure tounderstand that Meets Standards means good performance that is expected of a fullyexperienced and competent employee.

Conduct a Self-Assessment. Make a copy of the Performance Review form and assign arating to each expectation. Also include any additional written comments on performanceand documentation.

Identify areas of strengths and areas in need of improvement or enhancement. Record

Identify an action plan to correct deficiencies or enhance performance in any areas that donot meet desired levels of performance.

Identify any training opportunities or assignments for areas that need improvement.

Bring the completed Self-Assessment to the meeting to discuss with the supervisor.

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Employee

Self-Assessment

These questions will help you prepare for your performance appraisal discussion. Think about

your performance and your plans for future growth.

1. What critical abilities does my job require? To what extent do I demonstrate them?

2. What do I like best about my job? The least?

3. What were my specific accomplishments since the last appraisal period?

4. Which goals or standards did I fall short of meeting?

5. How could my supervisor help me do a better job?

6. Is there anything the organization or my supervisor do which hinders my effectiveness?

7. What job changes would improve my effectiveness?

8. Does my present job utilize my capabilities? How could I become more productive forthe organization?

9. What do I expect to be doing five years from now?

10. Do I need more experience or training in any aspect of my current job? How could it beaccomplished?

11. What have I done since my last appraisal to prepare myself for more responsibility?

12. What new goals and standards should be established for the next appraisal period? Whichold ones should be modified or deleted?

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Supervisor

How to Prepare for a Performance Review

Contact the employee one to two weeks ahead of time and schedule the PerformanceReview for a mutually convenient time and location.

Ask the employee to complete a Self-Assessment. The employee should receive a copy ofthe Performance Review form. The employee will then assign a rating to each expectationon the form and include documentation and any additional written comments on

performance.

Think about the goals and objectives of the work unit. Think about how the work of theemployee supported the goals and objectives of the unit. To what degree has theemployee completed the duties, tasks, and required functions of the position, the office,and the department in accomplishing the goals and objectives?

Review the results of the last Performance Review conducted.

Review the results of the Midway Feedback Session.

Review the PMP form, the factors, and their definitions. Also review Identifying RatingErrors.

Review the expectations set at the beginning of the Performance Review period. Alsoreview any expectations that have been amended or revised throughout the review period.

Gather documentation to support or define both positive and negative performanceincidents.

Determine what rating the employee should receive for each performance area. Writecomments under each factor or area to support the assigned rating.

Identify areas of strengths and areas in need of improvement or enhancement. Recordthose areas on the last page of the PMP form.

Identify an action plan to correct deficiencies or enhance performance in any areas that donot meet desired levels of performance.

Identify any training opportunities or assignments for areas that need improvement. Listspecific OJT and training and development opportunities that may help the employeeimprove.

Set dates by which the action plan and training will be accomplished, and specify follow-up dates to make certain they are completed. Record this information on the review form.

Start establishing expectations for the next performance review period.

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How to Conduct a Fair Evaluation

The Performance Management Process (PMP) is specifically designed to overcome

common rating errors and give the supervisor an opportunity to evaluate performance in

an objective manner. The performance review is based on measurable job-related

behaviors, not an individuals personal traits.

Common Rating Errors

Performance review research has shown that supervisors commonly make a number of

rating errors when evaluating an employees performance. Common rating errors

include:

Halo or Horn Error The supervisor allows the employees performance on one

aspect of the job to influence an overall evaluation or an evaluation of other aspects of

the job. This can be based on a positive aspect of performance (the halo effect) or a

negative aspect of performance (the horn effect).

She always comes to work on time. Obviously, she should get an Exceeds

Expectations rating on Quality of Work.

Of course I gave him a Below Expectations rating on Job Knowledge. How could

anyone who dresses like that for work know anything about how to do the job?

Restriction of Range Error The supervisor fails to use the entire range of scores on

the evaluation scale. There are three types of restrictions that the supervisor may

incorrectly use.

Leniency The supervisor always gives an Outstanding rating regardless of

performance. The supervisor may do this because he or she does not what to confront

any possible performance problems, wants to motivate the employee through highpraise, or maintain the present working relationship without disruption.

Severity The supervisor commonly rates employees as Below Expectations

because of unrealistic standards or selective perception.

Central Tendency The supervisor gives all employees an average rating, Meets

Expectations, for fear of singling out an outstanding or poor performer.

I dont dare give anyone a rating lower than an Outstanding. They expect it and

will file a grievance if its anything less.

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No one in this department will get more than a Meets Expectations rating. I want

them to shoot for something more.

Contrast Error The supervisor will compare employees to one another rather than to

a fixed standard, the performance expectations for the job.

No, I cant really say that she deserves the Exceeds Expectations rating I gave her,

but compared to others in this unit, she sure stood out.

Frame of Reference Error The supervisor will compare an employees performance

to the raters own personal standards for that job, rather than those on the performance

review form.

I cant help it if you would give Smith an Exceeds Expectations rating if he were in

your unit. Exceeds Expectations to me is walk on water behavior, no matter what

the standard is.

First Impression Error The supervisor will have an initial favorable or unfavorable

judgment about an employee and then ignore or subconsciously distort subsequent

information so as to support the initial impression.

Johnson may appear to be performing well to you now, but youll see. I knew he was

worthless after that horrible first week on the job, and nothing has changed my mind.

Recency Error The supervisor will evaluate performance based on very recent or

current incidents rather than those occurring throughout the year.

I gave you a Below Expectations on Quantity of work because last month you got

behind on those notification letters. Usually youre up to date on those, but you really

slipped up then.

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Levels of PerformanceLevels Appraisal Approach

Outstanding Consistently above standards

Always produces more than required

Anticipates needs

Exceptional achievement / contribution todepartment

Tone: Very PleasedExpectation:Review job descriptionEvaluation:Discuss strengths & weaknesses(include examples)Goals:Ask employee their goalsWork Plan: Design action planDevelopment: Stress beyond parameters ofcurrent jobThank employee

Above Standards

Exceeds standards in many aspects

Frequently produces more than required

Always prompt

Always completes work

Tone:PleasedExpectation: Review job descriptionEvaluation: Discuss strengths & weaknesses

(include examples)Goals: Ask employee their goals

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Work Plan: Design action planDevelopment: Plan to further strengthen

performanceThank employee

Meets Standards

Acceptable performance in all importantaspects

Consistent

Meets expectations

Reliable and predictable

Tone: Coaching- Comment reliability

Expectation: Review job description

Evaluation: Discuss strengths and weakness

Goals: Improve regular performance/initiative

Work plans: Action plan including

improvements

Development: Follow-up meetings/offersupport

Below Standards

Needs to improve in some importantareas

Inconsistent in performance

Needs reminders / supervision

Tone: Coaching and directiveExpectations: Review job description andclarify basic work requirementGoals: Write agreed-upon actions forimprovementDevelopment: Set follow up meetings, offerdevelopmental support

Unsatisfactory

Frequent Reminders

Rarely on time with work

Unreliable

Requires supervision Costs valuable time

Tone: Coaching and directiveExpectations: Review job description andclarify basic work requirementGoals: Write agreed-upon actions for

improvementDevelopment: Set follow up meetings, offerdevelopmental supportPlus:

No surprisesFormal discipline initiatedTimeframes in action plansChange or leave

Performance Analysis Worksheet

There are various causes to performance problems, and the actions a supervisor would take

depend on the causes. The list of questions below is useful in identifying the causes and

required actions.

YES NO

1. Does the employee have a clear understanding of what is expectedin the performance area?

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2. Does the employee understand the importance of the performancearea and how it fits into the goals of the department?

3. Does the employee understand how his/her performance will be

measured in this area?

4. Does the employee receive timely feedback during the year onhis/her performance in the area?

5. Does the employee receive adequate coaching from the manager

during the year?

6. Does the employee have the necessary resources to meet theperformance requirement in this area?

7. Are there obstacles in the way of desired performance? 8. Are there positive consequences for high performance in the areaand negative consequences for low performance?

(

Challenges in Providing Feedback

Challenges/Possible Problems Solutions

Defensive response from employees Protect self-esteem

Focus on problem, not person

Deal with problems early, when theyare small

Involve employee in problem solving

Dealing with socially sensitive subjects Explain why performance area isimportant

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(e.g., personal appearance) Deal with issue in relaxed, friendlymanner

Ask for employees self-assessment

Overall performance is excellent, but

one area needs to be addressed

State excellence of overall performance

Explain how one area is not up toemployees own high standards

Ask employee for his/her ideas

Express confidence in employee

Manager uncomfortable in providingfeedback

Do good job of analyzing performance

Practice using feedback skills

Role play tough situations in advance

Manager too busy to provide much

feedback

Issue is too important not to find time

Focus on the most important performanceareas

Set up systems where employees provideown feedback

Keep discussions short and to the point.

Performance Management Process

An overall performance management processensures that performance feedback,accountability, performance results,corrective action, and performance planningoccur.

The Performance Management Cycle involves Four Stages:

1. PLANNING PERFORMANCE:Formulating Objectives, Key Performance Indicators (KPI's: Input and Output-based),and Performance Standards (Quantitative, Qualitative, Behavioural) and Targets foreach position/employee, using a suitably designedPerformance Agreement Form.

2. MANAGING PERFORMANCE:

Performance observation, measurement, recording, feedback and coaching, as well asmanaging the performance environment. This stage includes Performance Coaching

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and Counselling whenever employee performance or behaviour is not up tostandard/expectation.

3. APPRAISING (REVIEWING) PERFORMANCE:

Using a suitably designedPerformance Appraisal Form that facilitates the smooth

running of appraisal interviews (See ourConstructive Performance AppraisalsWorkshop).

4. REWARDING PERFORMANCE:

Linking actual performance to appropriate rewards/remuneration to reinforceexcellence in performance. (We assist organisations in designing suitablereward/incentive systems or schemes for their employees.)

GOAL SETTING THEORY SAYS:

Specific Goals/Objectives increase performance, and challenging goals, when accepted by jobholders,

result in higher performance than easy goals

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The Performance Management Cycle

Performance Management at UC Berkeley

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THE IMPLEMENTATION OF PMS

The implementation of a performance management system that drives focus and transparencyis vital to the success of todays leading organisations.The primary purpose of performance management is to align individual performance contracts

with departmental business plans to achieve the overall company vision, mission andstrategies.

The success of your performance management system lies in the ability to equip youremployees with the skills and tools to take charge of their work responsibilities, developmentand future.

The Balanced Scorecard has emerged as a proven and effective tool to capture, describe, andtranslate organisations strategic goals into meaningful objectives at corporate, divisional, andindividual employee levels, thereby allowing for the strategies to be successfullyimplemented.

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PERFORMANCE MANAGEMENT AS BUSSINESS IMPERITIVE

Introduction

Managing the performance of people within an organisation has over the years become a

business imperative. The collective focus and effort towards achieving desired goals, and theability to deliver and manage required performance, is necessary to drive business results on

an ongoing basis. However, although organisations may understand the concept and need, the

implementation of performance management sometimes falls short of intentions and

requirements.

Performance management needs to look beyond just a process or a system, and focus on a

more holistic view including people strategy, integration into other Human Resource, business

initiatives and change management. It is this broader and integrated view of performance

management that assists organisations in delivering performance and building a performance

culture.

Environment and Business Challenges

Increasing levels of globalisation and new and foreign market entrants are forcing companies

to focus more on the quality of their products and services, as well as the efficiencies of their

operations, to remain competitive. Within this ever changing operating environment, effective

management of work and performance will help ensure this quality and efficiency, and

maintain a clear line of sight between organisational priorities and performance achieved.

When referring to performance, ultimately it is people who deliver, drive, maintain andmanage it, and so the appropriate processes and technology available to assist with this can beseen as a critical factor to the success of any organization.

Managing Peoples Performance

Before we look broader at a performance culture, let us recap on the process briefly. Although

many definitions of performance management exist, a generic understanding of the term can

be seen as a continuous process for an organisation to define, drive; measure and manage

individual and team performance and behaviour to achieve business objectives. Although this

may seem like common sense and nothing new to some, actually getting it right sometimes

proves more difficult.

Like with the definition, a number of approaches to performance management exist, and it is

up to each individual organisation to develop a process that matches their unique situation and

requirements.

One such approach is outlined below:

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Based on the position description and performance plan developed in the previous step, the

performance area, indicators and targets should be defined and clear. Performance tracking

and monitoring should then be centred on this, as evidence of performance is necessary for

having an objective discussion during the performance review. Informal discussions should

also be held between managers and their employees on a regular basis to ensure performance

is on track, and that there are no surprises for anyone during the final reviews. Regular

communication helps with better understanding, guidance and performance tracking.

Step 4: Conduct formal performance reviews:

At specified dates during the year (for example quarterly or biannually) employee

performance would need to be formally reviewed (over and above possible informal

discussions held as per previous step). This process would include the preparation for the

review, completion of necessary performance documentation, conducting the review,

providing feedback and setting up or reviewing development plans. The more prepared

managers and employees are for the review, the better the results.

Step 5: Identify development and action planning:

Feedback and results from the formal performance review need to be fed back into actionsand plans for the next review period. This can then be used to guide development and

performance of the employee and should be highlighted in future informal discussions thatmay be held between the employee and the manager to track progress.

What is in it for me?

In building a business case for, or promoting performance management, a number of benefitscan be identified for the organization, managers and employees. Although not an exhaustivelist, some of these may include:

For the organization:

Alignment of business drivers and work efforts to organisational goals and leads to abroader understanding of company objectives by employees

Increased organisational performance achievement due to defined performance focus,deliverables and monitoring

Integrating reward and recognition, retention, succession and career planning andemployee development strategies and initiatives into a broader people strategy andapproach

For the manager:

Providing increased knowledge of employee performance, which allows for more detailedand objective performance and individual development discussions

Ensuring that the performance of individuals and team meets organisational requirementsand expectations

Moving away from micromanagement by empowering employees through goal setting andperformance expectations

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For the Employee:

Understanding of performance standards, expectations, strengths and development areas tobe successful in their role

Facilitating more feedback and communication with managers

Providing a clear line of sight between personal contributions and organisational goals. Thiswould enhance employee motivation and sense of direction.

So what is stopping us from doing this?

Based on possible previous experiences, legacy, management capabilities etc, certain

barriers to performance management and its implementation may exist. For example:

Organization

Inconsistent or misaligned people strategies means no holistic view of people and how tomanage and develop them

Non alignment of performance expectations to organisational goals and direction inhibitsorganisation wide focus and common purpose

No formal or structured approach to performance management prevents organisationalefficiency in driving performance achievement

Manager

Managers may underestimate the importance of performance management, and how it fitsinto people strategies. This means managers have an incomplete picture of the tangible

business benefits it should deliver, as well as the required work that is involved to perform iteffectively.

There may also be an assumption of managers capability to manage people and theirperformance, and provide meaningful feedback to them. This may lead to inconsistentapproaches to, and quality of, performance management in the organisation.

Capacity of managers may also be limited, and performance management may then be seenas a nice to have, and not as important as the daily running of the team ordepartment. This may lead to less time spent on managing employee performance anddevelopment.

Fear of conducting performance reviews and discussions

Employee

Not understanding the performance management process and what it is meant to delivermeans a limited awareness of the real business need and strategic intent of performancemanagement by employees. This may result in less focus, time and energy being spent on

performance management by them.

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Preconceived ideas of performance management, based on past experiences, systems and

managers may also be a barrier. Some employees for example may see performancemanagement as merely a once-a-year exercise performed merely to subjectively rate themto determine salary increases, or a way to manage them out of the company. Althoughincorrect, these perceptions may lead to them possibly resisting a future performancemanagement approach being implemented.

Having no clear understanding of how work and performance contributes to broaderorganisational success, may limit employee motivation and feeling of positive contribution.

Again although these may not be an exhaustive list of potential barriers to performance

management, they provide some idea as to what possible issues may be. Barriers also

highlight the need to perform comprehensive change management, including an analysis of an

organisation, prior to any implementation of a performance management

approach. Understanding the levels of awareness, capability and motivation to use a

performance management system and how to maintain this on an ongoing basis, is as

important as the process and technology that may be used.

So how does this link to a performance culture?

Getting the basics right is crucial, which includes the development of a performance

management strategy, process and tools, as well as the initiatives needed to implement and

sustain the approach going forward. This just sets the scene.

A performance culture goes further and covers areas such as integrating performance

management into broader people and business strategies, and finding a technology to make

the process and activities associated as seamless and smooth as possible. In addition to this

would be to educate employees to be able to understand the principles, process and values of

performance management, and continually relooking at ways to engage with them around

performance and how this ties this back to business drivers and goals.

However to ensure even greater impact, organisations need to look beyond this, and formulate

a comprehensive approach to people, of which performance becomes a component. An end to

end approach to people (sometimes referred to as the employee life cycle) clarifies, managers,

and supports the continued drive for performance, and helps to reshape and ultimately embed

this performance focus even deeper into the organisations culture. When this has been

achieved, performance management and achievement becomes less of an external activity,

and something that needs to be actively managed, to more of a part of everyday work life.

Way forward

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Performance management as an isolated process or system will only be able to deliver a

certain level of increased business performance. However, combining this with a performance

culture ensures that performance becomes embedded in the way that things are done, and

becomes part of the mindset of the organisation.

From the discussion, performance management is not just a process or just a system

needed to drive performance. It is a mindset change to the importance of focusing

on and managing performance at all levels, and developing a culture within the

organisation that is centered on performance achievement. This, coupled with the

fast paced and changing business environment illustrates why performance

management is seen, correctly, as a business imperative, and one of the drivers of

organisational success.

PERFORMANCE APPRAISALPeople differ in their abilities and their aptitudes. There is always some difference

between the quality and quantity of the same work on the same job being done by two

different people. Therefore, performance management and performance appraisal is

necessary to understand each employees abilities, competencies and relative merit

and worth for the organization. Performance appraisal rates the employees in terms of

their performance.

Performance appraisals are widely used in the society. The history of performance

appraisal can be dated back to the 20th century and then to the second world war whenthe merit rating was used for the first time. An employer evaluating their employees is

a very old concept. Performance appraisals are an indispensable part of performance

measurement.

Performance appraisal is necessary to measure the performance of the employees and

the organization to check the progress towards the desired goals and aims.

The latest mantra being followed by organizations across the world being get paid

according to what you contribute the focus of the organizations is turning to

performance management and specifically to individual performance. Performance

appraisal helps to rate the performance of the employees and evaluate their

contribution towards the organizational goals. If the process of performance appraisals

is formal and properly structured, it helps the employees to clearly understand their

roles and responsibilities and give direction to the individuals performance. It helps to

align the individual performances with the organizational goals and also review their

performance.

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Performance appraisal takes into account the past performance of the employees and

focuses on the improvement of the future performance of the employees. Here at

naukrihub, we attempt to provide an insight into the concept of performance appraisal,

the methods and approaches of performance appraisal, sample performance appraisal

forms and the appraisal softwares available etc. An attempt has been made to study the

current global trends in performance appraisal.

Performance appraisal is the formal assessment on the appraisee's performance for theappraisal period. It covers the following aspects

how effectively the agreed objectives/responsibilities have been carried out andtargets met;

the strengths and weaknesses of the appraisee which affected or will affect theofficer's further development; and

what sort of personal/career development and training actions should be taken.

To maintain a open system: the appraisee should be shown the assessment by the appraising andcountersigning officers before the appraisal interview;

countersigning officers are encouraged to complete the appraisal formbefore the appraisal interview is conducted; and

an interview record has to be prepared and signed by both parties

For training and career development proposals put forward in the appraisal, the grademanagement must take the initiative to ensure any necessary follow up actions are taken in atimely and appropriate manner. These proposals will also provide useful reference for thesupervisors to develop the staff's competencies. Common themes on training and developmentidentified should be consolidated for incorporation into the training and development plans ofthe department and the grade.

To ensure consistency in assessment standards and fairness in performance rating in staffappraisals, heads of departments/grades may consider if an assessment panel should be set up.An assessment panel is a management tool to help departments cross moderate appraisalratings.

An assessment panel is usually chaired by the head of branch/division or head of grade withmembers drawn from section/unit heads. At the start of a reporting cycle, the assessment

panel will meet to discuss the marking criteria and standard. Staff will be informed of thesecriteria and standard and clear guidelines will be issued to appraising officers.

The assessment panel will review the completed reports on the basis of panel members'knowledge about the performance of the appraisees. If the assessment panel disagrees withthe assessment of a report, the reviewing officer and the appraising/countersigning officer,where necessary, may be requested to explain before the panel. Amendments may be made tothe appraisal reports to ensure parity of assessment, if necessary.

Performance appraisal, also known as employee appraisal, is a method by which the jobperformance of an employee is evaluated (generally in terms of quality, quantity, cost and

time). Performance appraisal is a part ofcareer development.

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Performance appraisals are regular reviews of employee performance within organizations

Generally, the aims of a performance appraisal are to:

Give feedback on performance to employees.

Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions: salary increases, promotions, disciplinary

actions, etc. Facilitate communication between employee and administraton Validate selection techniques and human resource policies to meet federal Equal

Employment Opportunity requirements.

WHAT IS PERFORMANCE APPRAISAL

Performance appraisal is the process of obtaining, analyzing and recording information about

the relative worth of an employee. The focus of the performance appraisal is measuring andimproving the actual performance of the employee and also the future potential of theemployee. Its aim is to measure what an employee does.

According to Flippo a prominent personality in the field of Human resources,performance appraisal is the systematic, periodic and an impartial rating of an

employees excellence in the matters pertaining to his present job and his potential for a

better job."

Performance appraisal is a systematic way of reviewing and assessing the performance of an

employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helpsto analyze his achievements and evaluate his contribution towards the achievements of theoverall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart ofpersonnel management and reflects the managements interest in the progress of theemployees.

OBJECTIVES OF PERFORMANCE APPRAISAL

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior subordinates and management employees.

To diagnose the strengths and weaknesses of the individuals so as to identify thetraining and development needs of the future.

To provide feedback to the employees regarding their past performance.

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Provide information to assist in the other personal decisions in the organization

ESSENTIALS OF EFFECTIVE PERFORMANCE SYSTEM

The essentials of an effective performance system are as follows:

Documentation means continuous noting and documenting the performance. It also helps

the evaluators to give a proof and the basis of their ratings.

Standards / Goals the standards set should be clear, easy to understand, achievable,motivating, time bound and measurable.

Practical and simple format - The appraisal format should be simple, clear, fair andobjective. Long and complicated formats are time consuming, difficult to understand, and donot elicit much useful information

Evaluation technique An appropriate evaluation technique should be selected; theappraisal system should be performance based and uniform. The criteria for evaluation should

be based on observable and measurable characteristics of the behavior of the employee.

Communication Communication is an indispensable part of the Performance appraisal process. The desired behavior or the expected results should be communicated to theemployees as well as the evaluators. Communication also plays an important role in thereview or feedback meeting. Open communication system motivates the employees toactively participate in the appraisal process.

Feedback The purpose of the feedback should be developmental rather than judgmental.

To maintain its utility, timely feedback should be provided to the employees and the mannerof giving feedback should be such that it should have a motivating effect on the employeesfuture performance.

Personal Bias Interpersonal relationships can influence the evaluation and the decisions inthe performance appraisal process. Therefore, the evaluators should be trained to carry out the

processes of appraisals without personal bias and effectively.

PURPOSE OF PERFORMANCE APPRAISAL

Performance Appraisal is being practiced in 90% of the organisations worldwide. Self-appraisal and potential appraisal also form a part of the performance appraisal processes.

Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

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Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to beperformed by the employees.

To judge the effectiveness of the other human resource functions of the organizationsuch as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior subordinates and management employees.

According to a recent survey, the percentage of organisations (out of the total organisationssurveyed i.e. 50) using performance appraisal for the various purposes are as shown in thediagram below

The most significant reasons of usingPerformance appraisal are:

Making payroll and compensation decisions 80%

Training and development needs 71%

Identifying the gaps in desired and actual performance and its cause 76%

Deciding future goals and course of action 42%

Promotions, demotions and transfers 49%

METHODS OF PERFORMANCE APPRAISAL

The performance appraisal methods may be classified into three categories, as shown in Figure below.

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Figure: Performance Appraisal Methods

Individual Evaluation Methods

Under the individual evaluation methods of merit rating, employees are evaluated one at a

time without comparing them with other employees in the organization.

(a) Confidential report: It is mostly used in government organizations. It is a descriptive

report prepared, generally at the end of every year, by the employees immediate superior.

The report highlights the strengths and weaknesses of the subordinate. The report is notdatabased. The impressions of the superior about the subordinate are merely recorded there. It

does not offer any feedback to the appraisee. The appraisee is not very sure about why his

ratings have fallen despite his best efforts, why others are rated high when compared to him,

how to rectify his mistakes, if any; on what basis he is going to be evaluated next year, etc.

Since the report is generally not made public and hence no feedback is available, the

subjective analysis of the superior is likely to be hotly contested. In recent years, due to

pressure from courts and trade unions, the details of a negative confidential report are given to

the appraisee.

(b) Essayevaluation: Under this method, the rater is asked to express the strong as well

as weak points of the employees behavior. This technique is normally used with a

combination of the graphic rating scale because the rater can elaborately present the scale by

substantiating an explanation for his rating. While preparing the essay on the employee, the

rater considers the following factors: (i) Job knowledge and potential of the employee; (ii)Employees understanding of the companys programmes, policies, objectives, etc.; (iii) The

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employees relations with co-workers and superiors; (iv) The employees general planning,

organizing and controlling ability; (v) The attitudes and perceptions of the employee, in

general.

Essay evaluation is a non-quantitative technique. This method is advantageous in at least one

sense, i.e., the essay provides a good deal of information about the employee and also reveals

more about the evaluator. The essay evaluation method however, suffers from the following

limitations:

It is highly subjective; the supervisor may write a biased essay. The employees whoare sycophants will be evaluated more favorably then other employees.

Some evaluators may be poor in writing essays on employee performance. Others maybe superficial in explanation and use flowery language which may not reflect theactual performance of the employee. It is very difficult to find effective writersnowadays.

The appraiser is required to find time to prepare the essay. A busy appraiser may writethe essay hurriedly without properly assessing the actual performance of the worker.On the other hand, appraiser takes a long time, this becomes uneconomical from theview point of the firm, because the time of the evaluator (supervisor) is costly.

(c) Critical incident technique: Under this method, the manager prepares lists of

statements of very effective and ineffective behaviour of an employee. These critical incidents

or events represent the outstanding or poor behaviour of employees on the job. The manager

maintains logs on each employee, whereby he periodically records critical incidents of the

workers behaviour. At the end of the rating period, these recorded critical incidents are used

in the evaluation of the workers performance. An example of a good critical incident of a

sales assistant is the following:

July 20 The sales clerk patiently attended to the customers complaint. He is polite, prompt,

enthusiastic in solving the customers problem.

On the other hand the bad critical incident may appear as under:

July 20 The sales assistant stayed 45 minutes over on his break during the busiest part ofthe day. He failed to answer the store managers call thrice. He is lazy, negligent, stubborn

and uninterested in work.

This method provides an objective basis for conducting a thorough discussion of an

employees performance. This method avoids regency bias (most recent incidents get too

much emphasis). This method suffers however from the following limitations:

Negative incidents may be more noticeable than positive incidents.

The supervisors have a tendency to unload a series of complaints about incidentsduring an annual performance review session.

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It results in very close supervision which may not be liked by the employee.

The recording of incidents may be a chore for the manager concerned, who may be toobusy or forget to do it.

Most frequently, the critical incidents technique of evaluation is applied to evaluate theperformance of superiors rather than of peers of subordinates.

(d) Checklists and weighted checklists: Another simple type of individual evaluation

method is the checklist. A checklist represents, in its simplest form, a set of objectives or

descriptive statements about the employee and his behaviour. If the rater believes strongly

that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves

the item blank. A more recent variation of the checklist method is the weighted list. Under

this, the value of each question may be weighted equally or certain questions may be

weighted more heavily than others. The following are some of the sample questions in the

checklist.

l Is the employee really interested in the task assigned? Yes/No

l Is he respected by his colleagues (co-workers) Yes/No

l Does he give respect to his superiors? Yes/No

l Does he follow instructions properly? Yes/No

l Does he make mistakes frequently? Yes/No

A rating score from the checklist helps the manager in evaluation of the performance of the

employee. The checklist method has a serious limitation. The rater may be biased in

distinguishing the positive and negative questions. He may assign biased weights to the

questions. Another limitation could be that this method is expensive and time consuming.

Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of

statements about the employees characteristics, contributions and behaviors. In spite of these

limitations, the checklist method is most frequently used in the employees performance

evaluation.

(e) Graphic rating scale: Perhaps the most commonly used method of performance

evaluation is the graphic rating scale. Of course, it is also one of the oldest methods of

evaluation in use. Under this method, a printed form, as shown below, is used to evaluate the

performance of an employee. A variety of traits may be used in these types of rating devices,

the most common being the quantity and quality of work. The rating scales can also be

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from a long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective.

Another pitfall is that each characteristic is equally important in evaluation of the employees

performance and so on.

(f) Behaviorally anchored rating scales: Also known as the behavioral expectations

scale, this method represents the latest innovation in performance appraisal. It is a

combination of the rating scale and critical incident techniques of employee performance

evaluation. The critical incidents serve as anchor statements on a scale and the rating form

usually contains six to eight specifically defined performance dimensions. The following

chart represents an example of a sales trainees competence and a behaviorally anchored

rating scale.

Table: An Example of Behaviorally Anchored Rating Scale (BARS)

Performance Points Behavior

Extremely good 7 Can expect trainee to make valuable suggestions for increased

sales and to have positive relationships with customers all over

the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average 5 Can expect to keep in touch with the customers throughout the

year.

Average 4 Can manage, with difficulty, to deliver the goods in time.

Below average 3 Can expect to unload the trucks when asked by the supervisor.

Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks and roam around

purposelessly.

How to construct BARS? Developing a BARS follows a general format which combines

techniques employed in the critical incident method and weighted checklist ratings scales.

Emphasis is pinpointed on pooling the thinking of people who will use the scales as both

evaluators and evaluees.

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Step 1: Collect critical incidents: People with knowledge of the job to be probed, such as job

holders and supervisors, describe specific examples of effective and ineffective behavior

related to job performance.

Step 2: Identify performance dimensions: The people assigned the task of developing the

instrument cluster the incidents into a small set of key performance dimensions. Generally

between five and ten dimensions account for most of the performance. Examples of

performance dimensions include technical competence, relationships with customers,

handling of paper work and meeting day-to-day deadlines. While developing varying levels of

performance for each dimension (anchors), specific examples of behavior should be used,

which could later be scaled in terms of good, average or below average performance.

Step 3: Reclassification of incidents: Another group of participants who are knowledgeable

about the job is instructed to retranslate or reclassify the critical incidents generated (in Step

II) previously. They are given the definition of job dimension and told to assign each critical

incident to the dimension that it best describes. At this stage, incidents for which there is not

75 per cent agreement are discarded as being too subjective.

Step 4: Assigning scale values to the incidents: Each incident is then rated on a one-to-

seven or one-to-nine scale with respect of how well it represents performance on theappropriate dimension. A rating of one represents ineffective performance; the top scale value

indicates very effective performance. The second group of participants usually assigns the

scale values. Means and standard deviations are then calculated for the scale values assigned

to each incident. Typically incidents that have standard deviations of 1.50 or less (on a 7-point

scale) are retained.

Step 5: Producing the final instrument: About six or seven incidents for each performance

dimension all having met both the retranslating and standard deviation criteria will be

used as behavioral anchors. The final BARS instrument consists of a series of vertical scales

(one for each dimension) anchored (or measured) by the final incidents. Each incident is

positioned on the scale according to its mean value.

Because the above process typically requires considerable employee participation, its

acceptance by both supervisors and their subordinates may be greater. Proponents of BARS

also claim that such a system differentiates among behavior, performance and results and

consequently is able to provide a basis for setting developmental goals for the employee.

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Because it is job-specific and identifies observable and measurable behavior, it is a more

reliable and valid method for performance appraisal.

Researchers, after surveying several studies on BARS, concluded that despite the intuitive

appeal of BARS, findings from research have not been encouraging. It has not proved to be

superior to other methods in overcoming rater errors or in achieving psychometric soundness.

A specific deficiency is that the behaviors used are activity oriented rather than results

oriented. This creates a potential problem for supervisors doing the evaluation, who may be

forced to deal with employees who are performing the activity but not accomplishing the

desired goals. Further, it is time consuming and expensive to create BARS. They also demand

several appraisal forms to accommodate different types of jobs in an organization. In a

college, lecturers, office clerks, library staff, technical staff and gardening staff all have

differentjobs; separate BARS forms would need to be developed for each. In view of the lack

of compelling evidence demonstrating the superiority of BARS over traditional techniques

such as graphic rating scales. Decotis concluded that: It may be time to quit hedging aboutthe efficacy of behavioral scaling strategies and conclude that this method has no clear-cut

advantages over more traditional and easier methods of performance evaluation.

(g) Forced choice method: This method was developed to eliminate bias and the

preponderance of high ratings that might occur in some organizations. The primary purpose of

the forced choice method is to correct the tendency of a rater to give consistently high or low

ratings to all the employees. This method makes use of several sets of pair phrases, two of

which may be positive and two negative and the rater is asked to indicate which of the four

phrases is the most and least descriptive of a particular worker. Actually, the statement items

are grounded in such a way that the rater cannot easily judge which st

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