Master of Business Administration-MBA Semester 4 MU0016 – Performance Management and Appraisal Assignment Set- 1Q.1 Discuss the aims of performance management?Ans:-One of the important objectives of performance management is identifying the strengths and weaknessesof employees and finding ways to overcome their shortcomings. This is done by evaluating employeeoutput 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 discussconcerns and solutions to problems.Another objective is to discover where employees and the company are falling short. This is done bygoing through details such as profits earned, new clients acquired and the contribution of employees tomake these things happen. Employees whose contribution are minimal or not up to the mark arecounselled on how to improve performance.The evaluation of an employee’s performance is based on their work output and the amount of timespent by them on the project. Although time spent in an office is not an accurate way of measuringperformance, most companies still have the notion that better employees put in longer hours of work. Abetter way of measuring employee productivity would be to measure the output of work and theaccuracy of work completed.Overall evaluation of a company and its ability to set and reach goals is another important objective ofperformance management. Increasing revenue is the overall goal of any company. Other goals may be toacquire more or specific clients, develop new products or hire new talent. It is very easy to determinewhich 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, poorimplementation or poor employee performance. Economic factors also play a major role, but it is betterfor companies to concentrate on factors that are within their control. The best way of improving acompany’s overall output is motivating the employees and improving their performance.To identify and remedy situations that hinder company performance is another important objective ofperformance 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 acompany, every employee must work with the team members to develop new techniques and implementchanges.The aims of performance management can be summarised into the following points.The aims of performance management are:
· To assist in the achievement of enhanced standards of work performance of an employee or class ofemployees.· 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 skillsand 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 andagreed in the form of role profiles. The role profiles define what is required in each major aspect of therole. Expectations are also defined as short or medium term targets, the extension of knowledge andskills, upholding the core values of the organisation and meeting behavioural requirements. All thesecan be loosely referred to as objectives, which are more than simply output targets, as is often assumed.The Process of defining expectationsExpectations should be defined based on a role profile which sets out the overall purpose of the role andthe key result areas it contains. Role profiles include an organisation’s competency framework thatdefines the knowledge and skills required to achieve the role objectives and any particular behaviouralrequirements.Role profiles define the overall purpose of the role, its reporting relationships and key result areas. Theymay also include a list of the competencies required. The competencies may be technical competenciesand any specific behavioural competencies attached to the role. The behavioural competencies areselected from the organisation’s competency framework and modified as required to fit the demandsmade on role holders.The process starts at the performance planning stage. An existing role profile is reviewed and changesare made if necessary, or a new role profile is created. In each of the key result areas, the ongoing roleexpectations and any specific targets or tasks, behavioural changes or improvement or trainingrequirements related to those areas are discussed and agreed upon.For example, if the objective of an organisation is to improve customer satisfaction by responding tocustomer queries and complaints promptly, efficiently and politely, and the quantifiable targets are torespond to 90 per cent of queries in one working day, then these expectations would call for a discussion
on how the individual could contribute to upholding a core value for customer service. The results ofthis 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 necessaryto agree either quantifiable performance measures or any other type of evidence that can be madeavailable to appreciate a job well done. Table 2.1 shows the role profile.Table 2.1: Role ProfilePOSITION TITLE CHIEF FINANCIAL OFFICER To lead and direct the financial services of ABC. This includes the provision ofMAIN PURPOSEsupport services to all departments consisting of financial and managementOF 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.PERFORMANCEAREAS · 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.
· 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 themethods of providing performance feedback is through a performance appraisal. Organisations thatconduct performance appraisals may have written policies in place that refer to time lines, types ofperformance ratings and clearly defined processes. Some organisations may also require self-appraisalsby 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 errorsand timeliness of work as these are standards set for that particular job. It may be unfair to measure adata 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 allemployees if repeated more than once) and validity (does the appraisal measure what it is designed tomeasure). For this reason, some companies have their appraisals developed by third-party consultantswho 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 andconducting 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 anddiscussing future plans for improvement with the employee require good communication skills.· Appraisal systems require follow-up:
It is important to the organisation and the employee to provide consistent monitoring and follow-up afterthe formal appraisal is given. For example, if the employee scored high with little need forimprovement, do not take that performance for granted. Instead, continue to train the employee andprovide mentoring for continuous improvement. The employees who require improvements will needclearly defined plans with regular follow-up and feedback.· Performance appraisal is a data generation system for strategy conceptualisation andimplementation. 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 degreeappraisals and therefore contribution of employees to 360 degree performance systems is large and also
has a powerful effect on attitude and performance. It provides a "360-degree evaluation" of theemployee’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 assessmentinvolves the evaluation of individuals by supervisors on pre-determined parameters in an employee’sperformance 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’sor 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 onparameters like communication and convincing abilities, superior’s ability to assign the work, teamleading qualities and so on.Subordinate appraisal is most advantageous when developmental needs are considered. It can also beused in the evaluation of record sheets, but measures should be taken to make sure that subordinates areappraising parameters of which they have knowledge. The subordinate’s feedback is effective, mainly inevaluating the supervisor’s interpersonal skills. However, it may not be as proper or convincing formeasuring task-oriented skills.· Peer appraisal: Peers usually have an exclusive point of view on a colleague’s job performance andindividuals are generally very friendly to the idea of rating each other. Peer ratings are considered whenthe individual’s capability is known or the result of the performance can be computed. There are bothconsiderable assistance and serious consequences that must be cautiously considered before includingthis type of feedback in an all-round appraisal program.Taken as an effective developmental tool and conducted periodically, a 360 degree application canprove 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 evaluatingtheir leadership and supervision styles. This method is being successfully used around the globe forimproving performance. Some of the companies that have been successfully following 360 degreeappraisals 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 meaningfulperformance feedback. Meaningful performance feedback, as we know, is best achieved through propercommunication between the feedback giver and the feedback receiver. Irrespective of who provides thefeedback to the receiver, there are certain perceptual barriers that these communications have to travelthrough. These barriers act as filters and thus affect the actual message that is heard.
In Figure 5.1, different variables of performance feedback have been incorporated into a feedbackmodel. We see that the variable for both the giver and the receiver of feedback is determined by theperceptions of the participants. Figure 5.1 illustrates the feedback model.Figure 5.1: Feedback ModelFigure 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 participantsaffect the feedback.The Said/Heard – Meant/Felt Feedback MatrixThe Said/Heard – Meant/Felt Matrix in Figure 5.2 should help give more clarity to the conceptsintroduced in Figure 5.1.Figure 5.2: Said/Heard — Meant/Felt Feedback MatrixThe Said/Heard – Meant/Felt Matrix can be used in any way or direction. This implies that the matrixcan be applied vertically, horizontally, counter clockwise, and clockwise. It can be used either by thegiver or the receiver of performance feedback or both. The aim of the matrix can be achieved only whenall 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 directionstarting at the 9:00 o’clock position. From this point we begin with what is “Said.”
Let us label the four quadrants A, B, C, and D as shown in Figure 5.3.Figure 5.3: Said/Heard — Meant/Felt QuadrantsNow, 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 AIn 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 barrierthat 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.
Figure 5.5: Quadrant BAfter passing through the receiver’s perceptual barrier, you can see in Quadrant B that what was heardwas “I have not done my part well.” Now, we must understand that this may or may not have been whatthe feedback giver would have actually meant.In Figure 5.6, Quadrant C, the giver now clarifies to the receiver the intended meaning of his messageshown in the Quadrant A statement.
Figure 5.6: Quadrant CIn Quadrant C, it is observed that the feedback giver’s meaning was very different when compared towhat 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 DUtilising the matrixWe observe that there is a dramatic contrast between what the receiver perceived the performancefeedback message to be in Quadrant B versus what the message actually meant in Quadrant D. The issuewith many performance review sessions is that the communications end at Quadrant B. Thesemisinterpretations can be very counterproductive and will not support the goals and objectives ofproviding feedback. Hence, by using the matrix, the giver of the feedback can understand how thefeedback has been perceived by the receiver and then try to clear the misunderstandings. The matrix canalso be used by the receiver to get clarification on points that were not made clear during theperformance 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 aimof any human resource system must be to encourage the better use of the available data about theemployees, the labour market conditions and the business scenario to drive effective decision-making.
This helps in resolving the daily challenges faced by the HR department and positively impacts thehuman resource practices and policies followed by the organisation. The traditional ways in which datais used for successful and effective decision-making depends on the lively involvement of a huge rangeof stakeholders working together. It is also essential to understand the context in which the data is usedto take decisions.In spite of providing an enclosed training program for using data to make a decision, it is better toconnect all stakeholders in understanding how they use data both individually and collectively as anorganisation. In addition, it is also important to note the factors that are important in the context of usingdata effectively. Working alongside stakeholders improves the process and allows the learning todevelop 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 canenhance 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 theorganisation and with other stakeholders.It is equally important to know about the two-way process of making informed human resource policyand management choices based on a suitable study of relevant data and information. This process iscalled as Data-driven decision-making (DDDM).There are ten fundamental and practical pillars, which assist human resource managers, practitioners andpolicy analysts in structuring a bridge between human resource data and reports to effective humanresource policy and management decisions.The ten fundamental and practical pillars are:1. Making use of the dataOne 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 itis not enough to make data available. For example, health sector leaders need a process in place foranalysing reports and information, getting the data to the right decision-maker at the right time, andensuring the power and resources to act on the data. However, if this process is faulty or insufficientlyshared, data-driven decision-making can produce unacquainted decisions or swing the focus away frompriority issues.2. Developing a culture of enquiryEffective data utilisation requires a mindset as well as an organisational philosophy that actively investsin a culture of inquiry that helps people question the status. In the field of human resource, this practiceof inquiry should be characterised by work groups, teams, and individuals at different levels of the
organisation. All of them must regularly probe and scan the atmosphere in a way that will help themdetermine and provide answers to a set of human resource policy and management questions. Forexample, the subsequent questions can be asked to converse and plan the use of information to supportvarious 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 managementmeetings, 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 mattersThe 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 managersand planners to comprehend the various determinants and dimensions of the context, within which, thedata are used to take decisions, since, it is essential for effective policy-making and practice. Some vitalelements of the context include:· Social, political and other forces at work in the human resource policy environment throughout thecountry.· Historical and cultural factors.· Health system factors.· Resource contexts.4. Aligning different forces, interests and beliefsThe theory of Policy analysis suggests that data “affects existing beliefs of vital people about majorfeatures 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. Theymay have access to diverse types of human resource information from numerous sources, in a variety offorms and perhaps at different times and frequencies. But, the decisions that need to be made using thesedata may involve different people across multiple agencies who do not work together all the time. Theserelationships and connections will need to be recognised and aligned by human resource managers andplanners 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 aspart of their daily functions, as this may not lead to ground decisions. For example, one approach that isbeing considered in Uganda is following of a simple framework for analysing and presenting humanresource data and making the data available for discussion during annual joint review meetings. Such a
streamlined and collaborative approach of sharing data is important when compared to the sensitivenature 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 willgenerate any decisions will also depend on the values, beliefs, skills, and past experiences of thesecontributors. Other important factors include economic costs and timing of those decisions.5. Preparing for data scepticsMany 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, wemay be providing information which people may have known for years but never worked upon. Part ofthe solution could be combining these messages with ways of clearing out the mindset that producessuch skepticism or complacency in the first place.o What do these evidences or reports mean? The complexity of the evidence and reports may draw outthe reaction that more work is required just to understand the evidence. This can lead to a lack of interestor 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 resourcemanagers and planners are able to categorise a decisive bunch of active seekers of new ideas, then thereare higher chances of success. These active seekers must be favourable to change and even willing totake risks.6. The power of the IndividualMany 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 whenpresented with convincing data, people tend to reject or accept new ideas based upon individualinclination. For example, data from the literature suggests that individual decisions are influenced by apush 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.
7. The power of organisationThere 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 thekind of support obtainable for improvement of action.o The influence of interest group activity or public opinion on the organisations with human resourcerelated decision-making functions.o The level to which data can generate awareness of authenticity, an atmosphere of trust and mutualpartnerships among different members within the same organisation and among the variousorganisations that need to work together.8. Navigating difficult conversationsConstantly, data will create situations that involve complicated discussions within a team or organisationthat can cause chaos or volatility. This generally happens when a new data challenges a particular policyissue or status quo that has been in place for a long time. If the resulting communications are nothandled 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 negativeemotions in difficult conversations. Doubts of difficult discussions can frequently lead to avoiding orrescheduling important discussions because people are worried about argument and damage toworkplace relationships. Part of the strategy for strengthening data-driven decision-making includes aninteractive session that uses an experienced facilitator and a communication-based model andunderstanding 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 ofdecision-makers through potentially difficult conversations that data may generate. This ultimately helpsin reaching a mutually beneficial common ground. In most cases, the facilitator does not intend tocorrect or entail order on the group conversation, instead might point out the presence of polarisingstandpoint and also support some ways to suspend assumptions and steer the conversation towardcommon ground. A second key factor is to present possible conflict producing data using clear andlenient language, always leaving open the possibility that users might see and hear the data and stillmake a decision to de-emphasise or even ignore the information.9. Process and relationshipsIt 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 anorganisation is one of the most critical dynamics determining success or failure. However, this dynamicis often underrated or even overlooked in the process of data-driven decision-making. This is regrettablebecause when implemented correctly, the process can:o Fetch core issues to the forefront.
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 andmanagement in the right direction.10. A Journey, not a destinationMany theorists supporting data-driven decision-making argue that evidence-based decision-making isnot 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 inwhich both positive and negative trends can be discovered and acted upon. Data-driven decision-makingis also a collaborative, dynamic process. It is a core function that must be implanted into the culture oforganisation. 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. Withouttheir interference, it will be difficult for human resource data to become an essential part of anorganisation’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, anddiscuss on reports required to notify decisions.