1. Master of Business Administration-MBA Semester 4
MU0016 – Performance Management and Appraisal
Assignment Set- 1
Q.1 Discuss the aims of performance management?
Ans:-
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:

2. · 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.
.
Q.2 Describe the process of defining expectation?
Ans:-
Performance management is basically about managing expectations. Expectations are defined and
agreed in the form of role profiles. The role profiles define what is required in each major aspect of the
role. Expectations are also defined as short or medium term targets, the extension of knowledge and
skills, upholding the core values of the organisation and meeting behavioural requirements. All these
can be loosely referred to as objectives, which are more than simply output targets, as is often assumed.
The Process of defining expectations
Expectations should be defined based on a role profile which sets out the overall purpose of the role and
the key result areas it contains. Role profiles include an organisation’s competency framework that
defines the knowledge and skills required to achieve the role objectives and any particular behavioural
requirements.
Role profiles define the overall purpose of the role, its reporting relationships and key result areas. They
may also include a list of the competencies required. The competencies may be technical competencies
and any specific behavioural competencies attached to the role. The behavioural competencies are
selected from the organisation’s competency framework and modified as required to fit the demands
made on role holders.
The process starts at the performance planning stage. An existing role profile is reviewed and changes
are made if necessary, or a new role profile is created. In each of the key result areas, the ongoing role
expectations and any specific targets or tasks, behavioural changes or improvement or training
requirements related to those areas are discussed and agreed upon.
For example, if the objective of an organisation is to improve customer satisfaction by responding to
customer queries and complaints promptly, efficiently and politely, and the quantifiable targets are to
respond to 90 per cent of queries in one working day, then these expectations would call for a discussion

3. on how the individual could contribute to upholding a core value for customer service. The results of
this discussion could be:
· Agreement on any changes in behaviour required and how they can be achieved.
· Identification of further training.
· Agreement on how performance improvement in this area could be measured and assessed.
Measuring and assessing performance improvement is a difficult part of the process and it is necessary
to agree either quantifiable performance measures or any other type of evidence that can be made
available to appreciate a job well done. Table 2.1 shows the role profile.
Table 2.1: Role Profile
POSITION TITLE CHIEF FINANCIAL OFFICER
To lead and direct the financial services of ABC. This includes the provision of
MAIN PURPOSEsupport services to all departments consisting of financial and management
OF ROLE accounting, accounts payable, budgeting, data processing and risk management.
· Lead, direct and manage the financial accounting function for ABC.
· Budgeting and cost control.
· Lead, direct and manage the management accounting function for ABC.
KEY · Annual financial reporting.
PERFORMANCE
AREAS · Relevant parties
· In-depth knowledge of finance as a discipline.
· In-depth knowledge of accounting within a government entity.
· In-depth knowledge of financial procedures and processes.
· In-depth knowledge of procurement as a discipline.
TECHNICAL · Business plan interpretation.
KNOWLEDGE/
COMPETENCIES · Corporate governance policies and procedures.
BEHAVIOURAL · Leadership.
COMPETENCIES
· Attention to detail.

4. · Maximising performance / drive for results.
· Highly analytical.
· Highly numerate.
· Trustworthy.
· Planning and organising.
.
Q.3 List the characteristics of performance appraisal?
Ans:-
Some companies recognise the need to render employee feedback regarding performance. One of the
methods of providing performance feedback is through a performance appraisal. Organisations that
conduct performance appraisals may have written policies in place that refer to time lines, types of
performance ratings and clearly defined processes. Some organisations may also require self-appraisals
by employees or, even, engage outside consultants to conduct the appraisals.
The major characteristics of performance appraisal are:
· Appraisals match the job descriptions:
Performance appraisals must match the job descriptions and standards set for performance objectives.
For example, an employee who does data processing should be assessed based on the number of errors
and timeliness of work as these are standards set for that particular job. It may be unfair to measure a
data processing employee on phone skills if that is not part of the job description.
· Appraisals are legally compliant:
Appraisals must be able to stand legal tests of reliability (questions must yield the same results for all
employees if repeated more than once) and validity (does the appraisal measure what it is designed to
measure). For this reason, some companies have their appraisals developed by third-party consultants
who are specialists in this area.
· Appraisers must be trained:
The supervisor or manager conducting the appraisal must be trained in the use of the evaluation tool and
conducting the appraisal. For example, dispute may arise if the employee disagrees with the outcome,
and knowing how to deal with conflict is an important tool. Explaining the ratings of the appraisal and
discussing future plans for improvement with the employee require good communication skills.
· Appraisal systems require follow-up:

5. It is important to the organisation and the employee to provide consistent monitoring and follow-up after
the formal appraisal is given. For example, if the employee scored high with little need for
improvement, do not take that performance for granted. Instead, continue to train the employee and
provide mentoring for continuous improvement. The employees who require improvements will need
clearly defined plans with regular follow-up and feedback.
· Performance appraisal is a data generation system for strategy conceptualisation and
implementation. It provides:
o Detailed list of types and number of technical and managerial employees.
o Age distribution of the workforce.
o Skills profile of the workforce by aggregating individual performance appraisals.
o Behavioural criteria advise managers on what they have to do to successfully execute strategic plans.
· Performance appraisal acts as an integrating device for the human resource system. It helps in:
o Appraisal as the centrepiece of the HR cycle.
o Identification of appropriate characteristics and behaviours.
o Recognition of developmental opportunities and weaknesses.
o Rationale for distributing rewards.
Q.4 Explain the methodology in 360 degree apprised?
Ans:-
The 360 degree appraisal works on four essential components:
· Self appraisal.
· Superior appraisal.
· Subordinate appraisal.
· Peer appraisal.
Now let us explain the four components:
· Self appraisal: Self appraisal gives a chance to the employee to compare his/her abilities, limitations,
success with others and judge one’s own performance. Self evaluation is an essential part of 360 degree
appraisals and therefore contribution of employees to 360 degree performance systems is large and also

6. has a powerful effect on attitude and performance. It provides a "360-degree evaluation" of the
employee’s performance and is measured to be one of the most realistic performance appraisal methods.
· Superior appraisal: Superior’s appraisal outlines the traditional thought of performance appraisal,
where the employee’s tasks and actual presentation is rated by the superior. This form of assessment
involves the evaluation of individuals by supervisors on pre-determined parameters in an employee’s
performance record, as well as the evaluation of team and work scenario by senior managers.
The superiors (supervisors and senior managers) have the authority to change and modify an employee’s
or a team’s work on the basis of the assessment of the individual and the team.
· Subordinate appraisal: Subordinates’ feedback involves the evaluation of an individual on
parameters like communication and convincing abilities, superior’s ability to assign the work, team
leading qualities and so on.
Subordinate appraisal is most advantageous when developmental needs are considered. It can also be
used in the evaluation of record sheets, but measures should be taken to make sure that subordinates are
appraising parameters of which they have knowledge. The subordinate’s feedback is effective, mainly in
evaluating the supervisor’s interpersonal skills. However, it may not be as proper or convincing for
measuring task-oriented skills.
· Peer appraisal: Peers usually have an exclusive point of view on a colleague’s job performance and
individuals are generally very friendly to the idea of rating each other. Peer ratings are considered when
the individual’s capability is known or the result of the performance can be computed. There are both
considerable assistance and serious consequences that must be cautiously considered before including
this type of feedback in an all-round appraisal program.
Taken as an effective developmental tool and conducted periodically, a 360 degree application can
prove to be highly useful in keeping the track of alterations in others’ perceptions about the employees.
A 360 degree appraisal is generally more appropriate at the managerial level, as it helps in evaluating
their leadership and supervision styles. This method is being successfully used around the globe for
improving performance. Some of the companies that have been successfully following 360 degree
appraisals are TCS, Microsoft and Wipro Technologies.
Q.5 Explain the performance appraisal feedback model?
Ans:-
Performance Appraisal Feedback Models help us to achieve what is known as a meaningful
performance feedback. Meaningful performance feedback, as we know, is best achieved through proper
communication between the feedback giver and the feedback receiver. Irrespective of who provides the
feedback to the receiver, there are certain perceptual barriers that these communications have to travel
through. These barriers act as filters and thus affect the actual message that is heard.

7. In Figure 5.1, different variables of performance feedback have been incorporated into a feedback
model. We see that the variable for both the giver and the receiver of feedback is determined by the
perceptions of the participants. Figure 5.1 illustrates the feedback model.
Figure 5.1: Feedback Model
Figure 5.1 lists only a few of the endless list of possible variables that these perceptions can create.
Reading further will help us to get a clear understanding of how perceptions of different participants
affect the feedback.
The Said/Heard – Meant/Felt Feedback Matrix
The Said/Heard – Meant/Felt Matrix in Figure 5.2 should help give more clarity to the concepts
introduced in Figure 5.1.
Figure 5.2: Said/Heard — Meant/Felt Feedback Matrix
The Said/Heard – Meant/Felt Matrix can be used in any way or direction. This implies that the matrix
can be applied vertically, horizontally, counter clockwise, and clockwise. It can be used either by the
giver or the receiver of performance feedback or both. The aim of the matrix can be achieved only when
all the participants in the performance feedback process use it.
To illustrate how the matrix can be put to work, let us begin by using the matrix in a clockwise direction
starting at the 9:00 o’clock position. From this point we begin with what is “Said.”

8. Let us label the four quadrants A, B, C, and D as shown in Figure 5.3.
Figure 5.3: Said/Heard — Meant/Felt Quadrants
Now, let us look at how the matrix can used during a typical performance review.
Let us begin with Figure 5.4 looking into what is “Said.”
Figure 5.4: Quadrant A
In Quadrant A, the feedback giver has said, “You could have contributed much more to the project.”
This is where the challenge arises, wherein the statement must now pass through the perception barrier
that has been represented as the vertical axis of the matrix.
Let us now look into what has been heard by the receiver. It is illustrated in Quadrant B in Figure 5.5.

9. Figure 5.5: Quadrant B
After passing through the receiver’s perceptual barrier, you can see in Quadrant B that what was heard
was “I have not done my part well.” Now, we must understand that this may or may not have been what
the feedback giver would have actually meant.
In Figure 5.6, Quadrant C, the giver now clarifies to the receiver the intended meaning of his message
shown in the Quadrant A statement.

10. Figure 5.6: Quadrant C
In Quadrant C, it is observed that the feedback giver’s meaning was very different when compared to
what was perceived by the receiver.
Now the receiver’s feeling towards this feedback has been illustrated in Quadrant D in Figure 5.7.
Figure 5.7: Quadrant D
Utilising the matrix
We observe that there is a dramatic contrast between what the receiver perceived the performance
feedback message to be in Quadrant B versus what the message actually meant in Quadrant D. The issue
with many performance review sessions is that the communications end at Quadrant B. These
misinterpretations can be very counterproductive and will not support the goals and objectives of
providing feedback. Hence, by using the matrix, the giver of the feedback can understand how the
feedback has been perceived by the receiver and then try to clear the misunderstandings. The matrix can
also be used by the receiver to get clarification on points that were not made clear during the
performance review.
Q.6 How is data used for human resource decision?
Ans:-
You must be wondering how to use the data to make the human resource decision. Well, the main aim
of any human resource system must be to encourage the better use of the available data about the
employees, the labour market conditions and the business scenario to drive effective decision-making.

11. This helps in resolving the daily challenges faced by the HR department and positively impacts the
human resource practices and policies followed by the organisation. The traditional ways in which data
is used for successful and effective decision-making depends on the lively involvement of a huge range
of stakeholders working together. It is also essential to understand the context in which the data is used
to take decisions.
In spite of providing an enclosed training program for using data to make a decision, it is better to
connect all stakeholders in understanding how they use data both individually and collectively as an
organisation. In addition, it is also important to note the factors that are important in the context of using
data effectively. Working alongside stakeholders improves the process and allows the learning to
develop as much as possible.
Some of the examples to improve the use of data for decision making include:
· Planning how data is used to support a decision.
· Providing chances for decision makers to experience significant decision making moments, so they can
enhance their skills using the actual data in real-life situations.
· Advancing communication among users of data.
· Leveraging and identifying opportunities for enhanced data sharing across different levels of the
organisation and with other stakeholders.
It is equally important to know about the two-way process of making informed human resource policy
and management choices based on a suitable study of relevant data and information. This process is
called as Data-driven decision-making (DDDM).
There are ten fundamental and practical pillars, which assist human resource managers, practitioners and
policy analysts in structuring a bridge between human resource data and reports to effective human
resource policy and management decisions.
The ten fundamental and practical pillars are:
1. Making use of the data
One of the foremost misapprehensions about the effective use of human resource data in decision-
making might be summed up as “Build or gather data and they will use it”. This experience shows that it
is not enough to make data available. For example, health sector leaders need a process in place for
analysing reports and information, getting the data to the right decision-maker at the right time, and
ensuring the power and resources to act on the data. However, if this process is faulty or insufficiently
shared, data-driven decision-making can produce unacquainted decisions or swing the focus away from
priority issues.
2. Developing a culture of enquiry
Effective data utilisation requires a mindset as well as an organisational philosophy that actively invests
in a culture of inquiry that helps people question the status. In the field of human resource, this practice
of inquiry should be characterised by work groups, teams, and individuals at different levels of the

12. organisation. All of them must regularly probe and scan the atmosphere in a way that will help them
determine and provide answers to a set of human resource policy and management questions. For
example, the subsequent questions can be asked to converse and plan the use of information to support
various decisions:
· What human resource data is required to gather?
· How do we actually use data; what decisions do they inform?
· What is the mechanism for facilitating the use of these data (the answer could be – senior management
meetings, annual sector review meetings, department meetings, and so on)?
· How frequently does this process take place?
· What issues, if any, manipulate the quality and security of data use?
3. Context matters
The context is the entire setting or environment in which human resource data are being gathered,
analysed and used to make policy and management decisions. It is vital for human resource managers
and planners to comprehend the various determinants and dimensions of the context, within which, the
data are used to take decisions, since, it is essential for effective policy-making and practice. Some vital
elements of the context include:
· Social, political and other forces at work in the human resource policy environment throughout the
country.
· Historical and cultural factors.
· Health system factors.
· Resource contexts.
4. Aligning different forces, interests and beliefs
The theory of Policy analysis suggests that data “affects existing beliefs of vital people about major
features of the problem under study and how it might be solved or mitigated” (Eugene Bardach, 2000).
Nevertheless, human resource planners and policy-makers are faced with a distinctive challenge. They
may have access to diverse types of human resource information from numerous sources, in a variety of
forms and perhaps at different times and frequencies. But, the decisions that need to be made using these
data may involve different people across multiple agencies who do not work together all the time. These
relationships and connections will need to be recognised and aligned by human resource managers and
planners for the decision-making process to be productive. Otherwise, there is a possibility of conflict,
or failure to use the data.
Additionally, it is not enough if only a few people in an organisation examine data and information as
part of their daily functions, as this may not lead to ground decisions. For example, one approach that is
being considered in Uganda is following of a simple framework for analysing and presenting human
resource data and making the data available for discussion during annual joint review meetings. Such a

13. streamlined and collaborative approach of sharing data is important when compared to the sensitive
nature of the human resource. In addition, the ways in which such data are used in effective decision-
making are mainly determined by a broad range of contributors. Similarly, whether or not data will
generate any decisions will also depend on the values, beliefs, skills, and past experiences of these
contributors. Other important factors include economic costs and timing of those decisions.
5. Preparing for data sceptics
Many data users decide the helpfulness of a data by asking some questions like:
o What is latest here? How is this distinct from what we already have or know?: As data collectors, we
may be providing information which people may have known for years but never worked upon. Part of
the solution could be combining these messages with ways of clearing out the mindset that produces
such skepticism or complacency in the first place.
o What do these evidences or reports mean? The complexity of the evidence and reports may draw out
the reaction that more work is required just to understand the evidence. This can lead to a lack of interest
or disinclination to engage.
o What are the professed benefits of change? Many individuals time and again tend to avoid change.
However, they are also influenced by the obvious benefits of change. As a result, if human resource
managers and planners are able to categorise a decisive bunch of active seekers of new ideas, then there
are higher chances of success. These active seekers must be favourable to change and even willing to
take risks.
6. The power of the Individual
Many individuals are key members in taking decisions about how data should or should not be used,
since it is the individuals who choose whether to reject or accept new data findings. Even when
presented with convincing data, people tend to reject or accept new ideas based upon individual
inclination. For example, data from the literature suggests that individual decisions are influenced by a
push of personal capacities and qualities that any decision-making process must take into consideration.
At the individual level, these factors include:
o Convolution of what is being presented.
o Beliefs and values as well as current position on certain issues.
o Risk awareness, or the level to which an individual avoids change.
o Status or position of the individual within the organisation.
o Knowledge and skill sets.
o Organisational support for change.
o Partnership links.

14. 7. The power of organisation
There are several organisational factors that influence the decision-making process. These are:
o Organisational culture, values, function, composition, structure, and socioeconomic context.
o The nature of staff (gender, age, racial composition), level of training, and degree of skills.
o The level to which new thoughts or ideas are welcomed or accepted by management figures, and the
kind of support obtainable for improvement of action.
o The influence of interest group activity or public opinion on the organisations with human resource
related decision-making functions.
o The level to which data can generate awareness of authenticity, an atmosphere of trust and mutual
partnerships among different members within the same organisation and among the various
organisations that need to work together.
8. Navigating difficult conversations
Constantly, data will create situations that involve complicated discussions within a team or organisation
that can cause chaos or volatility. This generally happens when a new data challenges a particular policy
issue or status quo that has been in place for a long time. If the resulting communications are not
handled with sensitivity and diplomacy, the situation can easily slip into a sinister team disagreement.
Generally speaking, many people are uncomfortable with conflict, and they fear the rise of negative
emotions in difficult conversations. Doubts of difficult discussions can frequently lead to avoiding or
rescheduling important discussions because people are worried about argument and damage to
workplace relationships. Part of the strategy for strengthening data-driven decision-making includes an
interactive session that uses an experienced facilitator and a communication-based model and
understanding and responding to difficult conversations. One method is to use a humorous, all-inclusive,
no threatening communication style and provide plenty of relatable examples to guide groups of
decision-makers through potentially difficult conversations that data may generate. This ultimately helps
in reaching a mutually beneficial common ground. In most cases, the facilitator does not intend to
correct or entail order on the group conversation, instead might point out the presence of polarising
standpoint and also support some ways to suspend assumptions and steer the conversation toward
common ground. A second key factor is to present possible conflict producing data using clear and
lenient language, always leaving open the possibility that users might see and hear the data and still
make a decision to de-emphasise or even ignore the information.
9. Process and relationships
It is observed that people build strategies, plans and data successfully by converting them into policies,
practices and results. As such, the nature of bonding between the possible data users within an
organisation is one of the most critical dynamics determining success or failure. However, this dynamic
is often underrated or even overlooked in the process of data-driven decision-making. This is regrettable
because when implemented correctly, the process can:
o Fetch core issues to the forefront.

15. o Allow participants to conquer individual, professional and organisational barriers.
o Construct a greater sense of joint ownership.
o Enhance communication and understanding.
o Construct a unified leadership team focused on moving the business of human resource planning and
management in the right direction.
10. A Journey, not a destination
Many theorists supporting data-driven decision-making argue that evidence-based decision-making is
not a onetime answer or a standard tool to be applied at random. Rather, it is an in-progress knowledge-
driven process that needs continuous compilation, analysis and sharing of data since it is the only way in
which both positive and negative trends can be discovered and acted upon. Data-driven decision-making
is also a collaborative, dynamic process. It is a core function that must be implanted into the culture of
organisation. It provides decision-makers with the collective ability to:
o Tackle the most important human resource questions of the day.
o Weigh the available evidence.
o Consider several options.
o Think both tactically and practically about the decisions that they make.
Human resource managers and planners need to lead this journey and act as agents of change. Without
their interference, it will be difficult for human resource data to become an essential part of an
organisation’s operations. They can sculpt data use and support it by sharing the successes and benefits.
They can also schedule time for senior management and multi sector teams to review, query, meet, and
discuss on reports required to notify decisions.