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Master of Business Administration- MBA Semester 4
MU0016-Performance Management and Appraisal
(Book ID: B1868)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10
marks 6 X 10=60.
Q1. Explain the aims and purpose of “Performance management’’?
Aims of Performance Management - 5
Purpose of Performance Management - 5
Answer. A “performance management system” refers to the continuous process of observing, measuring,
and developing performance in the organization by means of linking each employee’s performance and
objectives to the organization’s overall mission and goals.
The aim of performance management is to align organisational objectives with the skills, performance
goals and competencies of employees. It involves creating a workforce that has an understanding of what
is to be achieved at the overall organisational level.
Q2. Define performance appraisal. What are the dimensions of performance appraisal? Describe the
characteristics of performance appraisal.
Answer. Describe the characteristics of performance appraisal - A performance appraisal is a systematic
and periodic process that assesses an individual employee's job performance and productivity in relation
to certain pre-established criteria and organizational objectives. Planning is a key component of managers'
job functions. They design and devise ways to improve their companies and departments. However,
factors inside and outside the company can affect managerial planning for better or worse. Performance
management is the systematic process by which an agency involves its employees, as individuals and

2. Q3. Explain 5 traditional and 5 modern methods of performance appraisal.
Traditional and modern methods of performance appraisal - 5
Answer. Traditional Methods:
1. Ranking Method:
It is the oldest and simplest formal systematic method of performance appraisal in which employee is
compared with all others for the purpose of placing order of worth. The employees are ranked from the
highest to the lowest or from the best to the worst.
In doing this the employee who is the highest on the characteristic being measured and also the one who
is L lowest, are indicated. Then, the next highest and the next lowest between next highest and lowest
Q4. What is performance feedback? List any 3 important principles of feedback? Explain some of the
pitfalls of performance feedback?
Answer. Meaning of performance feedback - The performance feedback process is ongoing between
managers and employees. The exchange of information involves both performance expected and
performance exhibited.
Use of performance feedback - You're cold! Now you're getting warmer! You're HOT!" Even children
playing the popular "Hot or Cold" game know that to perform well (find the hidden object) people need to
be told how they're doing. Without feedback, you're walking blind. At best, you'll accidentally reach your
Q5. What is meant by “360 Degree feedback”? Explain its purpose. What are the advantages and
disadvantages of 360 degree feedback?
Answer. Meaning of 360 degree feedback –
360 Degree Feedback is a systemor process in which employees receive confidential, anonymous feedback
from the people who work around them. This typically includes the employee's manager, peers, and direct
reports.
Purpose of 360 degree feedback - A common question that we hear is “should we use 360 degree
feedback to do that or performance reviews?” Well, that depends on what you are doing. Are managers
expected to conduct performance reviews on their employees? Is this an official review? Or do you want

3. Q6. Write a brief note on Ethics in performance management.
Answer. Importance of ethics in PM
When it comes to project management, ethics are extremely important in gaining the support of the
project team. Ethics are defined as the moral values, beliefs, and rules that one upholds in their life on the
job and personally to ensure right from wrong.
Ethical Issues
There are a number of different components of managing a project. While conducting project
management, profit and staff motivation are often paramount. However, a project manager must also
Spring-2016
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