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Chapter 1 Introduction to Performance Management

Introduction
SUBODH SINGH is 17 years old and is studying in McMillan High School. He is in the Xllth standard and will a ear !or the Board e"a#inations in the science strea# in March ne"t year. He did well in his Xth Boards. He ai#s to $oin one o! the leading engineering colleges and s ecialise in I%. &ast year' the cut(o!! !or ad#ission to the to college was )* er cent. Su+odh decided to wor, hard and secure at least *- er cent to ensure a seat in one o! the restigious colleges. He decided on the !ollowing strategy. /ocus on science and #athe#atics as they are scoring su+$ects. Sol0e as #any re0ious Board e"a#ination a ers as ossi+le. Get a ri0ate tutor to hel hi# i# ro0e in #athe#atics. 1or, hard. %hat should get #e *er cent #ar,s2 His dad' Surya 3rata ' an H4 director' as,ed hi# to draw u a #ore co# rehensi0e strategy. He as,ed Su+odh to con0ert the strategy into an action lan !or the year. %he !irst ste would +e to identi!y the ,ey er!or#ance areas. 1hen Su+odh as,ed his !ather what these ,ey er!or#ance areas were' he e" lained. 25ey er!or#ance areas are those where you need to !ocus i! you ha0e to get your target result o! *- er cent #ar,s in the Board e"a#s. %his will gi0e so#e idea o! the e!!ort you need to ut in to achie0e the result. %he result is not negotia+le6 without *7(*- er cent #ar,s' you will not get ad#ission into your drea# college. 8ou should si# ly as, yoursel!'21hat should I do di!!erent to get *- er cent9 Or' what #ore should I do to get *er cent9 Or' what new acti0ities should I underta,e9 %he answers to these :uestions will gi0e you your ,ey er!or#ance areas. %hey hel you to lan and gi0e a sense o! direction to your wor,. %hey hel you to re#ain !ocused all through the year. Now' decide what in uts you need to #a,e to get *- er cent in the e"a#inations2 Su+odh re lied.2I should wor, hard' sol0e all the re0ious e"a#ination a ers' attend classes' clari!y dou+ts' and ,ee learning.2 2;"cellent' said his !ather.2%hese are the ,ey er!or#ance areas. Now list the# one +y one and see i! it is e"hausti0e. Su+odh started listing the#6 on re!lection' he added a !ew #ore. %he !inal list read. 1. <ttend classes regularly =I #ust attend classes as a lot o! things are discussed and there are good teachers in #y school. Howe0er' I can a!!ord to s,i the che#istry class as the teacher does not e" lain anything ro erly. <s a result' I o!ten get the !eeling that I a# wasting #y ti#e.> ?. Study hard at ho#e. @. See, the hel o! a tutor to clari!y dou+ts. A. Sol0e :uestion a ers o! the re0ious years. -. Do re!erence wor, in the li+rary. Surya 3rata saw the list and said'2%his is great. Now esti#ate how #uch o! your ti#e goes into each o! these acti0ities on a daily or a wee,ly +asis and then set targets !or each acti0ity. 8our targets should +e such that i! you !ul!il the# you will get closer to your goal o! *- er cent. %here is no guarantee +ut it is an assu# tion +ased on your re0ious record as well as intuition2. Su+odh set targets in each o! the areas with the !ollowing reasoning. 2I ha0e to s end ) hours a day !or attending classes in school. I cannot a0oid this as I need to ha0e good attendance. Besides #ost o! the teachers are good and they teach well. I learn a good deal in school and there!ore it is i# ortant that I attend all the lectures and clari!y #y dou+ts. He set his 53<s and targets as !ollows. 1

KPA 1: Learning from the Class Teachers


<cti0ities. <ttending classes. 3artici ating in all la+oratory e" eri#ents' clari!ying dou+ts with teachers' going re ared to classes' co# leting the ho#e wor, gi0en' #eeting the teachers outside class in case o! additional dou+ts and clari!ications. %argets. I will go re ared to e0ery single class. I will read in ad0ance all that I a# re:uired. I will listen to all lectures attenti0ely. I will not #iss a single la+ e" eri#ent. I will not return ho#e without clari!ying all dou+ts and things that I don2t understand. =%i#e in0ol0ed ) hours a day and an additional @7 #inutes on an a0erage !or clari!ying dou+ts outside the class>

KPA 2: Working

ard at ome

<cti0ities. %o study in a concentrated #anner all that he needs to at ho#e. %argets. 1 will ut in at least !i0e hours o! study e0ery day' two hours in the #orning and three hours in the e0ening. On holidays I will wor, on an a0erage a+out ) hours a day in addition to the coaching classes. =%i#e in0ol0ed. - hours a day on class days and ) hours on holidays>

KPA !: Coaching Classes


<cti0ities. <ttending coaching classes in #athe#atics and che#istry. Sol0ing all re0ious Board e"a#ination a ers. Blari!ying dou+ts with the coach. %argets. 1 will attend coaching classes twice a wee, and ut in #y +est e!!ort to understand e0erything I a# told. I will sol0e Board e"a#ination a ers !or the last !i0e years and those o! other state +oards !or the last three years. =%i#e. %wo hours a day and twice a wee, and tra0el ti#e additional two hours>

KPA": #$tra %tudies


<cti0ity. %o go +eyond what is as,ed to study in the class or +y the coach. Cisiting the li+rary and reading new +oo,s. Studying a+out new ad0ances in science. %arget. I will 0isit the li+rary on a regular +asis and consult at least one new +oo, a wee,. I will ta,e ti s !ro# #y seniors who assed with high #ar,s whene0er they co#e on 0acation. =One hour a day> Su+odh wor,ed out his schedule as !ollows. On class days. - a# to 7 a# ho#e wor, and study re aration !or class6 ) a# to A # attending classes6 A # to - # li+rary and clari!ication o! dou+ts6 -.@7 # to 7.@7 # coaching classes =twice a wee,>6 ) # to 11 # study at ho#e. ?

%his is the way in which Su+odh lanned his daily schedule and is con!ident o! achie0ing *- er cent. Howe0er' he is under no illusion that this will guarantee such a result. %he !inal result de ends on a nu#+er o! !actors li,e the ty e o! :uestions set =so#e years the a ers were di!!icult and so#e other years they were too easy> and the relati0e er!or#ance o! other students and schools and the nature o! corrections o! the a ers that year' etc. He is clear that things will wor, in his !a0or i! he does his $o+ well and e0en i! things don2t wor, out he will ha0e the satis!action o! ha0ing done his +est. Su+odh discussed his 53<s and targets with his !ather and re:uested hi# to ,ee warning hi# whene0er he sli ed. He also re:uested his dad to suggest any i# ro0e#ents that could +e #ade as they went along in order to ,ee hi# !ocussed.

What is Performance& 'imensions of Performance Management


%he case o! Su+odh is a good e"a# le o! er!or#ance #anage#ent. I always wondered why #anagers who ha0e +een through all this in school resist syste#atic lanning and #onitoring o! their er!or#ance. 3er!or#ance #anage#ent in0ol0es thin,ing through 0arious !acets o! er!or#ance' identi!ying critical di#ensions o! er!or#ance' lanning' re0iewing' and de0elo ing and enhancing er!or#ance and related co# etencies. It is si# le' co##onsensical and en$oya+le. 3er!or#ance has #any di#ensions. Out ut or result di#ension6 In ut di#ension6 %i#e di#ensions6 /ocus di#ension6 Duality di#ensions6 and Bost di#ension.

3er!or#ance is what is e" ected to +e deli0ered +y an indi0idual or a set o! indi0iduals within a ti#e !ra#e. 1hat is e" ected to +e deli0ered could +e stated in ter#s o! results or e!!ort' tas,s and :uality' with s eci!ication o! conditions under which it is to +e deli0ered.

(esults and )utput


%he #ost acce ta+le and 0isi+le as well as #easura+le di#ension o! er!or#ance is result or the out ut. It descri+es the conse:uence o! in uts in a su##ary !or# or a !inal or se#i(!inal roduct !or# or ser0ice !or#. It descri+es the standard. It is easily #easura+le. /or e"a# le getting *- er cent is the result. Salary !igures' custo#er nu#+ers' !inancial targets' roduction targets' co# letion o! tas,s to #eet so#e deadlines' etc. are all stated in result !or#Eout ut !or#. So#eti#es these are also called ,ey result areas. Su+odh could ha0e ai#ed at increased learning as a !inal out ut. Howe0er' the increased learning is not easily #easura+le. /inal ercentage o! #ar,s in the e"a#ination can +e ta,en as a good indicator o! learning. In addition' a #ar, is a good record and is acce ta+le as a relati0ely o+$ecti0e #easure o! er!or#ance. Nor#ally all er!or#ance #anage#ent starts with this !inal targeted er!or#ance. It is to achie0e this er!or#ance out ut that er!or#ance acti0ities need to +e lanned. 3er!or#ance acti0ities are the in uts to +e gi0en +y the indi0idual.

Input 'imension
%he in ut di#ension deals with the acti0ities or tas,s to +e acco# lished +y the indi0idual. %he nature o! acti0ities to +e underta,en +y the indi0idual' the ti#e !ra#e' the :uality o! in uts to +e gi0en' etc. constitute the in ut di#ension. 3er!or#ance can +e #anaged +etter i! the nature o! in uts re:uired to +e ut in can +e en0isaged without #ista,e' lanned ro erly and i# le#ented. It is here that the er!or#ance e:uation co#es into icture. 3er!or#ance e:uation says that any indi0idual2s er!or#ance is a !unction o! three sets o! !actors. a+ility or co# etence to er!or# 0arious tas,s that lead to @

er!or#ance' #oti0ation to carry on each o! these tas,s or wor, e!!ort to carry out the tas,s and the organisational su ort one gets to carry out these tas,s. I! any one o! these is less the er!or#ance is +ound to +e oor. In this e:uation er!or#ance is out ut and wor, e!!ort is the in ut and the a+ility and organisational su ort are the inter0ening 0aria+les. %hey also can +e considered as the in ut 0aria+les. I! the in uts Fa+ility' wor, e!!ort or #oti0ation and organisational su ort is inade:uate the er!or#ance is also li,ely to +e inade:uate. %he 0arious di#ensions o! er!or#ance are.

Time 'imension
<nother di#ension o! er!or#ance is ti#e. 3er!or#ance can +e de!ined !or a tas,' !or a day' !or a wee,' !or a #onth' year or !or li!e. %he ti#e eriod !or er!or#ance is i# ortant. %i#e !or in!or#ation technology organisations is li#ited to a :uarter or a three(#onth eriod. %hey #ay also +e de!ined +y tas,s or ro$ect and not ti#e. %i#e #ay +eco#e the target. In the case o! Su+odh the ti#e di#ension is one year. It can also +e di0ided :uarterly. Duarterly ti#e !ra#e hel s #id(course corrections and ensures long(ter# er!or#ance. Nor#ally' indi0idual er!or#ance is $udged in relation to a role and across a short eriod. 1e nor#ally tal, a+out how well an indi0idual has done in a gi0en role across a eriod o! two or three years. 1hile organisations are interested in this er!or#ance' they are #ore concerned with the indi0idual2s er!or#ance in a !inancial year or arts o! a year. So#e o! the organisations which are ro$ect dri0en =!or e"a# le I%> are interested in the indi0idual2s er!or#ance in a ro$ect as well as in a role. /or e"a# le' one wants to ,now how he has handled this articular ro$ect as ro$ect #anager. Thus, in the context of organisation, performance management is time bound as well as role specific. Getting the indi0idual to gi0e hisEher +est in a gi0en role and during a gi0en eriod o! ti#e is a er!or#ance #anage#ent issue. Performance of an individual in organisational setting may therefore be defined as the output delivered by an individual in relation to a given role during a particular period of time under the set of circumstances operating at that point of time. 3er!or#ance #anage#ent atte# ts to ensure using 0arious inter0entions so that the indi0idual deli0ers #a"i#u# out ut under the circu#stances gi0en to hi#. %he out ut #ay include changing the circu#stances or turning e0ery circu#stance to one2s own ad0antage in order to deli0er #a"i#u# out ut. Ma"i#u# out ut is a relati0e ter#. 1hat is #a"i#u# is de!ined or deter#ined +y the !ollowing considerations. 1. 3re0ious er!or#ance o! the indi0idual !or a si#ilar tas, and under si#ilar circu#stances. ?. 3er!or#ance o! any other co# ara+le indi0idual or a standard a0aila+le at that ti#e including the #a"i#u# er!or#ance o! another indi0idual with who# co# etition is +eing set. @. ;sti#ated er!or#ance o! the indi0idual s eci!ied in ad0ance ta,ing into accounts the ca a+ilities and ca acity li#itation o! the indi0idual and the constraints i# osed +y the situation. %hus' in order to #anage er!or#ance one has to ha0e an idea o! the e" ected le0el o! er!or#ance' under what circu#stances' the ,ind o! su ort needed' the re0ious er!or#ance le0el o! the indi0idual or si#ilar indi0iduals under si#ilar circu#stances' etc. In #ost cases such data aren2t easily a0aila+le to #anagers. 1hile it is not that di!!icult !or o erators and other +lue collar wor,ers and !or those !or who# the hysical la+our can +e #easured' #anagerial er!or#ance +eco#es di!!icult to set standards and also to #easure. %his is +ecause #anagerial er!or#ance is highly interde endent and dyna#ic. It +eco#es di!!icult to isolate.

*ocus 'imension
3er!or#ance also has a !ocus di#ension. %he !ocus can +e on anything. /or e"a# le' Su+odh could ha0e !ocused on learning or on #ar,s. Si#ilarly' in de!ining the er!or#ance o! a sales e"ecuti0e' the !ocus o! er!or#ance can +e on #ar,et share' ro!its' or new areas co0ered' or so#e o! these or #ost o! these. %he !ocus o! di#ensions. er!or#ance can +e on #any other di#ensions. It could +e on :uality or on cost or !inancial A

Input+)utput (elationships
<n i# ortant issue to +e understood in er!or#ance #anage#ent is the in ut(out ut relationshi . &et us ta,e the case o! Su+odh. <ssu#e Su+odh has done all that he decided to do. He attended all classes' ut in all the e"tra wor, re:uired' listened attenti0ely in class' clari!ied all his dou+ts' sol0ed all re0ious a ers and in addition done so#e e"tra things. <t the end he got only )- er cent #ar,s instead o! the targeted *- er cent. How do we rate his er!or#ance9 8ou #ay gi0e one o! the !ollowing. 1. <0erage or O5. ?. ;"cellent as he had done #ore than what he originally lanned to do. @. Not good as he got a !ar lower ercentage than what he ai#ed !or. I! a erson contracted to gi0e certain in uts with the assu# tion the in uts will lead to the targeted outco#e or result and he gi0es #ore than the re:uired in ut' how can we call his er!or#ance anything less than good or e"cellent9 I! he did not achie0e the desired result it #ay+e +ecause o! 0arious !actors. His co# etencies #ay +e li#ited or he #ay not +e e"a#ination wise. His #e#ory #ay +e wea, or his ho#e en0iron#ent #ay not +e conduci0e and this was erha s a!!ecting his results in s ite o! his hard wor,. %he e"a#ination a ers that year #ay also ha0e +een tough. 1hat i! )- er cent ha ens to +e in that year2s to 17 and he still gets ad#ission into a good college9 I! in reality )- er cent is oor and he does not get ad#ission' what good does it do to hi# i! he is rated e"cellent in er!or#ance in ut +ut the result and its conse:uences are disastrous9 %here are no easy answers to all these :uestions and that is what #a,es er!or#ance #anage#ent a co# le" a!!air. Such a co# le" a!!air has +een treated lightly +y e" erts' B;Os' #anagers and H4 ro!essionals. %reating such a co# le" issue in a si# le #anner and reducing er!or#ance #anage#ent to a si# le !or#( !illing e"ercise is the +iggest #ista,e the #anagers ha0e #ade in the ast. %his +oo, is #eant to resent 0arious !acets o! er!or#ance #anage#ent and also assign er!or#ance a raisals their due lace. 3er!or#ance a raisals cannot +e treated as er!or#ance #anage#ent. 3er!or#ance #anage#ent consists o! the !ollowing. 1. De!ining er!or#ance ta,ing into account all the co# le"ities #entioned a+o0e. =53<s' tas,s' etc.> ?. 3lanning er!or#ance +oth in ter#s o! the in ut' out ut' conditions under which these are to ta,e lace' etc. =O+$ecti0es' acti0ities and acti0ities' targets' etc.> @. Measuring er!or#ance and understanding the li#itations in #easuring er!or#ance. A. <nalysing er!or#ance and understanding what caused it or contri+uted to it. 3ositi0ely9 Negati0ely9 ;tc. Identi!ying de0elo #ent needs and su ort re:uire#ents !ro# this analysis. -. De0elo ing ca a+ilities to er!or# or the ca a+ility to gi0e in uts' ossess co# etencies to con0ert the in uts into desired out ut. G. Monitoring it and re0iewing it. =3er!or#ance re0iew discussions etc.> 7. 4ecognising 0arious di#ensions o! er!or#ance and rewarding it where a %he 0arious cha ters in this +oo, deal with these as ects o! er!or#ance. ro riate.

Who Manages Performance&


%he answer is o+0ious. %he er!or#er or the candidate whose er!or#ance is +eing lanned' analysed' assessed' de0elo ed' etc. It is he who #anages his er!or#ance. It is a #ista,en notion to thin, that the ri#ary res onsi+ility !or #anaging the er!or#ance o! a erson lies with his +oss. %he +oss is an i# ortant instru#ent in #anaging er!or#ance. He has the res onsi+ility to ensure that it is de!ined' lanned' analysed' #easured' re0iewed and de0elo ed. He is a artner in this. It is the er!or#er who has to #anage his er!or#ance. %he roles o! the er!or#er and the +oss etc. are also highlighted in 0arious cha ters. -

(ole of Appraisals in Performance Management


3er!or#ance #anage#ent is a continuous rocess. < raisals are eriodic acti0ities. Manage#ent is a dyna#ic rocess while a raisals are static. < raisals are a art o! er!or#ance #anage#ent. I! the #anage#ent in0ol0es i# ro0e#ents' the #o#ent you assess where we stand there is an a raisal ta,ing lace. %here!ore without so#e !or# o! a raisal #anage#ent +eco#es di!!icult. < raisals do not #ean reducing the er!or#ance o! indi0iduals and dyads or tea#s to a !i0e( oint scale or a nu#+er. It is this reduction o! annual er!or#ance into a nu#+er and e:uating one nu#+er with another that has created ha0oc in #anaging er!or#ance or in a raisals. Nu#+ers generated !ro# the a raisal rocess are not co# ara+le across !unctions' le0els' de art#ents and organisations.... %his is +ecause the scales are not cali+rated and e:uated. So#e use li+eral scales' so#e use conser0ati0e scales' and so#e use no scales +ut #erely !eelings. It is this lac, o! cali+ration and treating the inco# ara+le as co# ara+le that has created ha0oc. 3er!or#ance #anage#ent with er!or#ance a raisal should lead to increased er!or#ance. Howe0er' in #ost organisations' er!or#ance a raisals ha0e lead to decreased er!or#ance. %his ha ens articularly when a raisals are lin,ed to rewards and when !ewer eo le are rewarded than those e" ecting the#. %hose who are not rewarded get de#oti0ated. I! those who e" ect to +e rewarded e"ceeds the nu#+er o! those who actually get rewards' the net outco#e o! er!or#ance a raisal #ay +e negati0e. I! eo le continue to er!or# in s ite o! a raisals and they do not ha0e a ositi0e attitude to a raisals' then the organisation is s ending #ore sychological energy' %he e!!ort should +e to #a,e the er!or#ance #anage#ent rocess #ore e!!ecti0e and roducti0e using a raisal syste#s. < raisal syste#s hel #anagers #anage their er!or#ance. %hey should +e seen +y line #anagers as aids !or er!or#ance #anage#ent. Managers should not +e o0erwhel#ed with a raisals and a raisal outco#es and ignore the #ost i# ortant as ects o! er!or#ance #anage#entH er!or#ance i# ro0e#ents and co# etency +uilding. %his ha ens when the concerns get !ocused on a raisals rather than i# ro0e#ents or on ratings and rewards rather than er!or#ance enhance#ent and de0elo #ent. Managers need to learn to en$oy the er!or#ance #anage#ent rocess itsel! as it occurs round the year and is not +loc,ed +y a raisals as they occur once in a while. 3er!or#ance #anage#ent syste#s with an a raisal co# onent +uilt into the# should #ean i# ro0ed er!or#ance' #ore #oti0ated eo le' and #ore co# etent eo le.

Chapter 2 Planning Performance for (ole Clarit,


Wh, Performance -eeds to .e Planned&
3&<NNING !or er!or#ance is the !irst ste in er!or#ance #anage#ent. <n e# loyee is e" ected to s end a+out ?'777 to ?'A77 hours a year wor,ing !or the organisation. %hat wor,s out to a+out 1GG to ?77 hours a #onth. I! a erson2s cost to the co# any is 4s A'77'777 annually' his er hour cost will +e 4s ?77 and he will +e e" ected to deli0er an out ut ranging !ro# three to 17 ti#es his cost to the co# any. %his #eans that the o ortunity cost o! an e# loyee drawing a salary o! 4s A la,h annually ranges !ro# 4s G77 to 4s ?'777 an hour. I! the e# loyee costs 4s A7 la,h' his o ortunity cost er hour to the co# any will +e 4s G'777 to 4s ?7'777. ;0en i! we ta,e the #ini#u#' the er hour cost to co# any o! an ordinary #anager is li,ely to +e 4s 1G77 and a+o0e and the o ortunity cost will +e 4s 1G'777 and a+o0e. Gi0en this ,ind o! a cost' i#agine the +ene!it the organisation will deri0e i! the indi0idual +eco#es aware o! how he uses his ti#e and tries to ensure that the in ut he ro0ides yields the desired out ut. %hus' er!or#ance lanning is a si# le way o! ensuring that the e# loyee gi0es :uality in uts that will ensure the out ut e" ected !ro# hi#. 3lanning gi0es a sense o! direction and ensures good econo#ics !or the co# any. In addition' it ra# s u the contri+ution o! the indi0idual and enhances his sel! worth. <n indi0idual who adds 0alue to the co# any on a continuous +asis enhances his own worth in #any ways. Indian #anagers are e"cellent in #anaging crises. %hey are e:ually good in creating the#. 1hile each e"ecuti0e e#erges as co# etent in handling the crisis created +y others' little does he realise the role he lays in creating a crisis !or others. Organisational li!e is !ull o! inter(de endencies6 e!!ecti0e er!or#ance o! one #anager #ay de end on the tas, er!or#ance o! another. Managers waste a lot o! ti#e negotiating with each other' #anaging each other' sorting out their ego ro+le#s and so on. Brisis #anage#ent also ,ee s the #anager constantly ower!ul as he can +rea, all the rules' use u organisational resources' cut the chain o! co##and' under#ine the autono#y o! su+ordinates and show his +osses that he is doing a lot o! wor,. Brisis #anage#ent is a good way to co0er u one2s own ine!!iciencies and ost one less en$oya+le and non(tangi+le things li,e lanning and de0elo #ent. %he crisis #anage#ent co# etence o! Indian #anagers is so ower!ul that it is 0ery di!!icult to get the# to lan their er!or#ance or the er!or#ance o! their su+ordinates' which is ro+a+ly the solution to this ro+le#. 3er!or#ance lanning !i"es accounta+ility' sets role +oundaries' hel s +etter ti#e #anage#ent and re:uires ti#e at least once a year. It also hel s the #anager to understand and analyse his contri+utions and increases his res onsi+ility !or continuous er!or#ance.

What is Performance Planning


3er!or#ance lanning #ay +e de!ined as a syste#atic outlining o! the acti0ities that the #anager is e" ected to underta,e during a s eci!ied eriod so that he is a+le to #a,e his +est contri+ution to de0elo #ental and organisational outco#es. %he acti0ities' thus' outlined are indicati0e o! the nature o! contri+utions the #anager is e" ected to #a,e to the de art#ental goals. %hey also ro0ide a !ra#ewor, !or er!or#ing the role. %hey denote how the #anager is li,ely to s end his ti#e during the year. %hey also indicate the :uality' #agnitude and 0ariety o! contri+utions he is e" ected to #a,e. %hey set directions !or ti#e #anage#ent. %hey esta+lish what could +e e" ected +y all those whose contri+utions are +ased on his contri+utions and what is e" ected !ro# those whose contri+utions +eco#e in uts !or this #anager2s wor,. 3er!or#ance lanning also indicates the relati0e e# hasis to +e laced +y the indi0idual on di!!erent acti0ities he underta,es during the year.

Whose Performance is to .e Planned


It is o!ten said that the indi0idual2s er!or#ance cannot +e lanned and it is the de art#ent or organisation2s er!or#ance that can +e #a ed out. %he author would li,e to argue that it is easier to lan an indi0idual2s er!or#ance rather than that o! an organisation. %his #ay +e true !or se0eral reasons. ;0ery indi0idual #anager understands the reality and circu#stances within which he is e" ected to er!or#. Indi0idual er!or#ance is su+$ect to !ewer uncertainties than that o! an organisation. Organisational uncertainties are a su# o! the uncertainties !aced +y each e# loyee and those arising !ro# the e"ternal en0iron#ent. Not all #anagers are re:uired to deal with the e"ternal en0iron#ent. Most indi0iduals can lan their er!or#ance with so#e understanding o! internal uncertainties. Un!ortunately' #anagers see# to #agni!y the uncertainties within the organisation and !eel each one o! the# will a!!ect their er!or#ance. Hence' they argue that er!or#ance cannot +e lanned. %his is si# ly a good esca e #echanis#. 7

Organisational lans can at +est +e goals to stri0e !or. Indi0idual lans should +e the actions e" ected to +e underta,en +y each #anager with the ho e o! achie0ing the organisational goals. Organisational goals' cor orate lans' #ission state#ents' annual o erating lans' +udget state#ents' and er!or#ance guidelines issued !ro# the B;O2s o!!ice !ro# ti#e to ti#e ro0ide the ers ecti0e and !ra#ewor, re:uired to deter#ine the de art#ental goals and' thus' ro0ide the conte"t !or an indi0idual er!or#ance lan. Howe0er' indi0idual er!or#ance lans do not ha0e to wait e0ery year !or the creation o! such a conte"t as only #arginal changes are e" ected !ro# year to year with so#e e"ce tions. It is' o! course ideal i! these guidelines are a0aila+le +e!ore the indi0idual lans his er!or#ance. Howe0er in the a+sence o! such guidelines' grou s o! #anagers can sit together and set new goals !or their de art#ent in the conte"t o! the re0ious years2 er!or#ance and their ,nowledge o! the current situation. %hey !irst need to raise a !ew :uestions. How did we er!or# last year9 1hat in!luenced our er!or#ance9 How can we i# ro0e9 1hat new challenges can we underta,e9 How is the situation going to +e di!!erent this year9 How do we intend to i# ro0e our :uality and :uality o! out uts9 1hat new rocess' technology and syste#s do we want to introduce this year9 Organisations should set their goals and lan their strategies. De art#ents and other su+(syste#s should delineate their roles and lan their contri+utions. Indi0iduals should lan their er!or#ance6 ideally' the se:uence should +e !ro# organisation to de art#ent to indi0idual. %his hel s in se0eral ways. Howe0er' one should not wait !or the other inde!initely. &ac, o! in!or#ation on organisational lans and strategies should not re0ent de art#ents and other su+(units !ro# lanning i# ro0e#ents and indi0iduals !ro# lanning their er!or#ance. It is o!ten argued that the organisational lans should !ollow indi0idual lans. %his goes against reality in Indian organisations. /irst o! all it does not #a,e sense to consolidate indi0idual lans to #a,e de art#ental goals and then deter#ine organisational goals. It is di!!icult to do so. Second' artici ati0e #anage#ent cannot +e stretched to such an e"tent. 3lanning Indi0idual 3er!or#ance through 3er!or#ance < raisal

<nnual er!or#ance a raisal e"ercises ro0ide good o ortunities !or er!or#ance lanning. %hese ro0ide #any ways in which indi0idual er!or#ance can +e lanned' so#e o! which include. %as, analysis andEor acti0ity analysis6 5ey er!or#ance areas =53<s>6 5ey 4esult <reas =54<s>6 %as, and target identi!ication6 <cti0ity lansEaction lans6 and Goal(setting e"ercises.

%here are only su+tle di!!erences in the si" #ethods #entioned a+o0e. <ll these #ethods e# hasise to so#e e"tent the ,ey tas,s the indi0idual is e" ected to er!or# as art o! his role during the year. So#e o! the# e# hasise a detailed analysis and listing o! all acti0ities =%as, <nalysis or <cti0ity <nalysis>' others e# hasise the outco#es or results e" ected or targeted +y the indi0idual =54<s' goal(setting e"ercises>. < !ew others e# hasise the lanning art o! the wor, =<cti0ity 3lans> and so#e others e# hasise the er!or#ance or what the indi0idual is e" ected to do =53<s>. %he distinctions are s#aller i! we treat each o! these as di!!erent ways o! lanning er!or#ance. <ny o! these could +e used and there is no standard technology a0aila+le !or each #ethod. 1hat is i# ortant is that the indi0idual should +e a+le to lan his wor, and' as a result o! that' should ha0e greater clarity o! the acti0ities in which he needs to ut in #ore e!!ort. %he author !eels that the 5ey 3er!or#ance <rea a roach is +est suited !or the ur ose o! lanning as it e# hasises indi0idual er!or#ance and also gi0es sco e !or :uanti!ication.

KPAs and Performance Planning


Identi!ying 53<s and setting :uanti!ia+le targets where0er ossi+le is the only one way o! lanning one2s er!or#ance. So#e organisations stress on increasing o+$ecti0ity in ratings through 53<s. %he author is o! the 0iew that increasing o+$ecti0ity de ends on a nu#+er o! !actors. 53<s hel in reducing su+$ecti0ity +ut so#eti#es not in 0ery 0isi+le ways. O+$ecti0ity in a raisals is di!!icult to achie0e and ratings will always ha0e li#itations as e" lained in su+se:uent cha ters. Hence' organisations would do +etter +y trying to inculcate a lanning orientation and role clarity through 53<s than i# ro0ing o+$ecti0ity. < lot o! #anagerial ti#e is wasted in the goal(setting rocess i! it ai#s at o+$ecti0ity and so#e ill !eeling also #ay +e associated with it. On the other hand' i! 53<s or target setting are 0iewed as er!or#ance lanning' role clarity and direction(setting #echanis#s' the nu#+ers assigned to weight ages ta,e on a di!!erent #eaning. )

/igure ?.1 indicates the ad0antage o! er!or#ance lanning. %here is no well(tested technology to identi!y ,ey er!or#ance areas. I! the !ollowing :uestions can +e answered ositi0ely a!ter the e"ercise' one could say that 53<s ha0e +een well identi!ied. 1. ?. @. A. -. Do the 53<s and targets e# hasiseEindicate what the #anager =a raisee> is e" ected to do +y hi#sel! =rather than what his de art#ent' su+ordinates etc.' are e" ected to do>9 %ogether' do they co0er a large art o! his $o+ and include all signi!icant contri+utions e" ected !ro# his role9 Do they indicate the riority areas o! wor, !or the a I! all 53<s are well done' can the a raisee during the year9

raisee +e la+elled as a good er!or#er9 raisee #oderately rather than +eing

<re the targets set challenging and stretch the ca a+ilities o! the a routine9

*ig/ 2/1: 3er!or#ance 3lan o! a General Manager' H4 %/ no0 1. KRA &eadershi De0elo #ent Activity Instituting @G7 degree !eed+ac, #echanis#s !or DMs and a+o0e <ssisting DMs EGMs in de0elo #ent ian a!ter the wor,sho s on @G7 degree !eed+ac, Instituting 54< #echanis#s !or DMs and a+o0e Identi!ying and de0elo ing leadershi co# etencies <reas o! co# etencies to +e addressed' !ro# @G7 degree !eed+ac, Identi!ying co# etencies !or de0elo #ent !ro# 54< assess#ent Discussion with C3s !or de0elo #ent o! leadershi co# etencies Drawing u leadershi co# etencies Identi!ying training needs and organising training to address ga s in co# etencies !ro# @G7 degree !eed+ac, ' Britical Success /actors Organising the wor,sho s to get 3MS Guidelines o! re0iewing and redesigning the !or#at /or#at !inalisation with senior #anage#ent tea# * Date of completion Iuly ?771 Time Remarks line 1days - days ;"ternal consultant will +e sought ;"ternal consultant will +e sought ;"ternal consultant will +e sought

Iuly ?771

Iuly ?771

? days

@ days

A days

Oct. ?771

1 day

@ days

7 days

?.

3MS i# le#entation

Iuly ?771

?A days

Bonducting 1i# le#entation wor,sho s Designing a er!or#ance a raisal !or# !or DMs and a+o0e PLP design & implementation (formalising the policy for !"s and above Activity

Oct. ?771

3 days

;"ternal consultant will +e sought

A days

;"ternal consultant will +e sought

%/ KRA no/ @. <ttract' retain and #oti0ate talent

Date of Time Remarks completion line < ril(Iuly ?771 ;"ternal ?A consultant will +e days sought

;"a#ining co# ensation sur0ey outco#e <nalysis o! attrition data 3&3 design and i# le#entation =!or#alising the olicy> Bonduct assess#ent centres !or Identi!ying S%<4 er!or#ers H a 0alidation rocess !or ;H3s J H3s Bhart a !ast trac, career rogression ath and de0elo #ental lan. ;na+ling conducting $o+ e0aluation e"ercise !or cor orate o!!ice and regions I; analysis and rede loy#ent lan Man ower re:uire#ent lan !or ?77?(?77@. +ased on attrition' new +usiness ro$ects and ca acity +uilding Initiate wor, load analysis !or ; le0el in collaboration with #$! and su+#it the analysis re ort to !he to #gt. Su+#it a!ter discussion with to #anage#ent' a rightsiKing lan

;"ternal consultant will +e sought

A.

Man ower 3lanning

Se . ?771 No0. ?771 Ian. ?77?

;"ternal ?consultant will +e days sought

17 days Study will +e carried days out +y I;D 17 days

Dec. ?771 Dec. ?771

-.

Breating the relationshi s with union e# loyees and leadershi =%arget(Lero #an(days lost>

G.

Bontaining e# loyee cost as er +udget

3eriodic #eeting with union leadersEco##ittee #e#+ers =e0ery alternate day> 3ro+le# sol0ingEguidanceE i# ress on need !or er!or#ance i# ro0e#entE wo, cultureEdisci line /or#ulation olicy #easures Bontinuous education and co##unication at all le0els 4e(de loy#ent o! #an ower

Ongoing

A7 days

Ongoing

1days

17

%/ no KRA / 3re aring groundwor, 7. !or ne"t year2s wage settle#ent. Bonus ). negotiation H4 *. er!or#ance re0iew 3ersonal 17. de0elo #ent

Activity Bonduct e"tensi0e co##unication #odules !or 1 777 e# loyees in ?7 +atches to +ring down their e" ectation le0els 3re aring ground wor,' holding dialogues and reaching an a#ica+le settle#ent 4e0iewing er!or#ance o! H4 de t on a #onthly +asis. &earning +alance score card techni:ue %echni:ues !or #a ing co# etencies

Date of completion Ian.( Mar. ?77? Oct. ?771 Monthly

Tim Remark e s line 17 days 1days ?A days 1% days 17 days 17 days 7 days 17 days

11.

Bo##unity initiati0es

1?. Boaching

Bench#ar,ing H4 rocesses with +est ractices in industry Bonducting rogra##es through H4D networ,' %M%B and colleges near+y ai#ing at eo le and ro!essional de0elo #ent. Mentoring new entrants !or de0elo ing their organisational co# etencies and s,ills Boaching H4 eo le in new H4 initiati0es.

%otal nu#+er o! days @71 G. 7. ). *. <re they co# rehensi0e9 Do they s eci!y the standards o! er!or#ance e" ected !ro# the a raisee9 raisee is e" ected to

Do they ta,e into consideration realistically the conditions under which the a !unction during the year9 Do they satis!y +oth the a raisee and a raiser9

17. Has ade:uate ti#e +een s ent on the rocess o! identi!ying 53<s and gaining role clarity9 <ll these :uestions cannot +e answered +y loo,ing at the written 53<s on a iece o! a er. %he a a raiser are the +est $udges on these.
-##' *)( CLA(IT1 )* ()L#% A-' *2-CTI)-% I- M)'#(- )(3A-I%ATI)-%

raisee and

<ny organisation interested in its growth has to +e dyna#ic. Dyna#ic organisations are always loo,ing !or growth o ortunities' creating challenges !or the#sel0es and #a,ing an i# act on their en0iron#ent. Such an organisation has to ha0e a certain a#ount o! !le"i+ility in its own internal organisational structure' roles and role relationshi s. %hus' dyna#ic organisations are continuously in a rocess o! change either in res onse to their own needs and growth lans or in res onse to the en0iron#ental changes. %hese changes i# act the rolesH articularly the #anagerial rolesHin any organisation. /or e"a# le' the role o! +an,s today is su+stantially di!!erent !ro# the role they layed a+out ?7 years ago. Ha0ing ta,en u agricultural de0elo #ent and lead +an, roles' wor,ing with go0ern#ent agencies' su orting s#all(scale industries and artici ating in the industrial de0elo #ent o! +ac,ward areas' the role o! +ranch #anagers and other o!!icers today has +eco#e #uch #ore co# le" and de#anding than in the ast. %he rising e" ectations o! a 0ariety o! clients and the changing industrial relations scene ha0e i# osed additional de#ands on +ranch #anagers and other o!!icers. Many organisations ha0e witnessed a si#ilar change in the roles o! #anagers. /or e"a# le' the role o! ersonnel #anagers in #ost organisations has +een changing as new de#ands are +eing created due to changes in the en0iron#ent as well as growth o! organisations. %he nature o! #anagerial roles is such that it is neither ossi+le nor desira+le to rigidly de!ine all the tas,s and !unctions associated with it. In !act' e!!ecti0e #anagers are constantly creating new tas,s and !unctions !or the#sel0es around the roles assigned to the# and to #anage#ent o! organisations would do well to 11

encourage such dyna#is#. In order to hel eo le to de0elo 0arious ca a+ilities' a clear understanding o! the di!!erent !unctions associated with their roles and the ca a+ility re:uire#ents need to +e clearly understood. 3er!or#ance re0iew along these di#ensions is li,ely to +e #ore #eaning!ul and hel !ul !or de0elo #ent. %he conce t o! ,ey er!or#ance areas e" lained +elow intends to ser0e this ur ose.

KPAs as Mechanisms of (ole Clarit, and 'e4elopment


5ey er!or#ance areas #ay +e de!ined as the i# ortant or critical categories o! !unctions to +e er!or#ed +y any role incu#+ent' o0er a gi0en eriod o! ti#e. %hese categories o! !unctions should +e so de!ined that the er!or#ance o! any e# loyee can +e assessed #eaning!ully !or any gi0en eriod o! ti#e. In addition' these !unctions should s eci!y what the e# loyee would +e doing rather than what results are e" ected !ro# hi#. So#e e"a# les o! 53<s are. /or a Sales O!!icer 1. Bontacting otential custo#ers ?. Mar,et sur0ey !or new roducts @. <ttending to custo#er co# laints /or an 4JD Manager 1. Identi!ying roduct i# ro0e#ents ?. De0elo #ent o! new roducts @. %esting sa# les /or an <ccounts Manager 1. Budget re aration ?. 3ay#ent o! +ills to su liers

@. De0elo ing a syste# o! co# uterisation /or a Branch Manager 1. Balancing o! ledgers o! a Ban, ?. 3u+lic relations @. 4eco0ery o! sic, accounts A. Mo+ilising new de osits' etc. <s the a+o0e sa# les indicate' 53<s are +road categories o! !unctions to +e er!or#ed +y any e# loyee in relation to his $o+. Nor#ally' 53<s can +e o+tained !ro# $o+ descri tions i! these are ela+orate and e"tensi0e. Howe0er' $o+ descri tions in #ost organisations are usually 0ery +road and s,etchy. ;0en i! they are su lied to new incu#+ents' they #ay not +e a+le to get a co# lete icture. Moreo0er !or reasons #entioned earlier in this cha ter' the nature o! $o+s #ay +e changing. Hence' it is desira+le to ha0e eriodic e"ercises in identi!ying er!or#ance areas !or each role and 53<s !or each erson in relation to his role. %he !ollowing rocess is reco##ended to identi!y ,ey er!or#ance areas in the conte"t o! the a suggested in this +oo,. Identi!ying er!or#ance areas !or a gi0en role =;"isting> 1. < grou o! !our or !i0e ersons #ay +e in0ol0ed in this rocess. Once these 53<s are identi!ied' it could !or# a +asis !or any role incu#+ent to identi!y his own 53<s in that role. %his grou should consist o! #ainly two categories o! eo leHthose who are er!or#ing that role at resent and those who er!or#ed that role in the ast and are su er0ising others er!or#ing that role now. %his grou is constituted to list all the tas,s associated with that role and then classi!y the# into #eaning!ul categories. %hose who are currently in0ol0ed in er!or#ing the role are li,ely to gi0e e"hausti0e in!or#ation a+out the tas,s they are handling. %hose who are su er0ising the# will +e a+le to ro0ide guidance and' in the rocess' #ay shar en their own understanding a+out their su+ordinate2s role' the relationshi s with the# and their 1? raisal syste#

o+ligations to the role incu#+ent. ?. In so#e cases' the sa#e role =or designation> #ay ha0e di!!erent !unctions associated with it. /or e"a# le' in a di0isionalised organisation' each di0isional #anager #ay ha0e a di!!erent set o! !unctions to er!or# de ending on the nature o! the di0ision they handleHits siKe' its location and its history in the organisation. Si#ilarly' in a #ar,eting organisation with di!!erent +ranches or Kones' the +ranchEKonal #anagers located in di!!erent geogra hic regions #ay ha0e di!!erent !unctions to er!or# =although their designations are the sa#e>. In such cases' it #ay +e use!ul to constitute se arate grou s !or each role. I! it is not !easi+le to ha0e such grou s !or any reason' the role incu#+ent and his su er0ising o!!icer #ay $ointly wor, and identi!y the er!or#ance areas. %he sa#e air can also identi!y the 53<s using the rocedure descri+ed +elow. %he grou should then draw u an e"hausti0e list o! all the tas,s the role incu#+ent is e" ected to underta,e. 1hile re aring such a list o! tas,s' it #ay +e use!ul to raise the !ollowing :uestions. 1hat are the #ain acti0ities in which the role incu#+ent is in0ol0ed9 1hat e"actly does he do in these acti0ities9 How #uch o! his ti#e is s ent on each acti0ity9 1hat is his uni:ue contri+ution +y 0irtue o! occu ying this osition9 I! his er!or#ance is to +e rated as e"cellent in the ne"t si" #onths to one year' what would he ha0e done as this role incu#+ent9

@.

<nswers to these :uestions will ro0ide a set o! tas,sEacti0ities to +e underta,en +y the role incu#+ent. In the ne"t ste ' all these acti0ities #ay +e grou ed into #eaning!ul categories o! !unctions. I! any acti0ityEtas, is considered critical and deser0es s ecial attention' it could +e se arately listed as a er!or#ance area without grou ing it under any category. 1hile there is no hard and !ast rule a+out the nu#+er o! er!or#ance areas !or any role' nor#ally these will +e less than 17 =ideally - or G>. A. <!ter the er!or#ance areas =3<s> are identi!ied they could gi0e weightages !or their relation i# ortance to that role. %hus' a weightage o! @ could indicate that the articular 3< is 0ery central and i# ortant to that role. < rating o! ? #ay indicate that the 3< is :uite i# ortant +ut is not central. < weightage o! 1 #ay indicate that the er!or#ance area is i# ortant. %here #ay +e !ew er!or#ance areas which #ay not +e considered as i# ortant contri+utions o! the role incu#+ent. %hese are the ones on which the e# loyee need not +e a raised se arately as they do not need that #uch attention. %hus' the grou could #a,e their suggestions on the weightages to +e assigned to the er!or#ance areas. %hese weightages are only suggesti0e and #ay change !ro# ti#e to ti#e or !ro# one role incu#+ent to another. %he grou only gi0es its suggestions. <!ter such an e"ercise is done' the 53<s !or di!!erent roles could +e listed and #ade a0aila+le to e# loyees in the !or# o! a directory o! er!or#ance areas. %his directory hel s as a +asic guideline to hel e0ery e# loyee lan his wor, !or any gi0en eriod. /or er!or#ance a raisal ur oses' e0ery e# loyee should identi!y the er!or#ance areas in consultation with his +oss at the start o! the year =the e"act eriod to +e decided +y each organisation>. %his should +e done a!ter considering the lans o! the organisation or his de art#ent and the nature o! de#ands that he is e" ected to #eet !or the co#ing year. %he areas selected or identi!ied should +e the areas that the a raisee and the a raiser consider as signi!icant di#ensions on which the a raisee2s contri+utions should +e assessed !or that year. %he a raiser and the a raisee #ay also deter#ine the weightages o! each o! these areas. =Discussion on weightages #ay +e use!ul irres ecti0e o! whether these weightages are used or not !or !inal assess#ent.>

-.

G.

In the a roach outlined a+o0e' ste s ?'@ and A should +e done +y grou s where0er !easi+le6 ste - could +e underta,en +y the ersonnelEH4DE Industrial ;ngineering de art#ents. Ste G is 0ery i# ortant as it is the rocess +y which the a raiser(a raisee airs discuss and co#e to an understanding a+out the 53<s which is 0ery critical !or achie0ing the o+$ecti0es o! the a raisal outlined in Bha ter 1. Ste s ?'@ and A are a non(ti#e tas,. Once the +asic er!or#ance areas !or each role are wor,ed out' they only need #arginal changes once in a while. In organisations where it is not !easi+le to ha0e se arate grou s to carry out this tas,' the a raisee airs can sit together and co# lete ste s ?' @ and A +e!ore they co#e to ste G. %hus' it is a #atter o! one or 1@

two sittings and #ay in0ol0e only a+out ? to @ hours o! ti#e. %his ti#e' howe0er' is worth in0esting. In the rocess o! agreeing on the 53<s !or the assess#ent eriod =i.e. in Ste G>' +oth the a raiser and the a raisee should ai# at. < clear and co##on understanding o! the 0arious acti0ities to +e er!or#ed under each 53< +y the a raisee. < clear understanding o! the i# ortance o! each o! these acti0ities and what e"actly is e" ected to +e done +y the a raisee i.e.' the nature o! e!!ort we should ut in' the ossi+le outco#e e" ected as a result o! his e!!orts' etc. <n understanding o! the e" ected ro+le#s and su ort re:uired +y the a raisee !ro# the a raiser as well as others in the organisation and the su ort the a raiser can gi0e to the a raisee. Understandings o! the le0el o! er!or#ance e" ected in relation to each o! the 53<s and the ossi+le ratings associated with di!!erent er!or#ance le0els. =Duite o!ten it is di!!icult to +e s eci!ic. Howe0er' so#e discussions #ay esta+lish a co##on understanding.>

%his re:uires a thorough discussion +etween the a raiser and the a raisee. < cli#ate o! o enness' #utuality and trust !acilitates this rocess. %he a raiser and the a raisee should +e concerned #ore a+out increasing their understanding o! each other in relation to their roles and strengthening their relationshi s as well as !acilitating the de0elo #ent o! the a raisee in relation to his role. Both should ,ee the ur ose in #ind. 53<s re are the ground !or e# loyees to understand in a syste#atic way the ca a+ilities they ha0e and those they lac,. %his understanding #ay ta,e lace as the e# loyee is er!or#ing 0arious tas,s and undergoing e" eriences' success and !ailure. It gets organised through a rocess o! re0iew and re!lection at the end o! the year when the e# loyee realises consistency in his successes and !ailures. %his is the +eginning o! de0elo #ent. %hus' 53<s ser0e as anchors with the hel o! which the indi0idual e# loyee #ay gain insights into his own ca a+ilities and de0elo #ent needs. In addition' they o!!er o ortunities to decide on his own wor, atterns' e" eri#ent with the# and learn where0er such ossi+ilities e"ist. 1hen a #anager !eels that he has not done a good $o+ in his role and is una+le to identi!y where he has !ailed' it is di!!icult !or hi# to do +etter ne"t ti#e. But when a #anager ,nows that he has !ailed only in one critical !unction =53<> and realises that this was +ecause he did not ro erly schedule certain acti0ities that the !unction in0ol0ed' he #ay recognise the need to de0elo his scheduling ca a+ilities. %he second #anager is in a +etter osition to i# ro0e his er!or#ance +ecause he ,nows what he lac,s and he #ay #a,e e!!orts to de0elo these. 53<s thus hel in this rocess and clari!y the thin,ing o! #anagers. %he understanding +etween the +oss and the su+ordinate will ena+le the a raisee to concentrate his e!!orts on the right ,ind o! things. Due to the clarity o! understanding o! the 0arious areas o! er!or#ance' the a raisal is li,ely to +e less su+$ecti0e.

Performance Targets: Adding ).5ecti4it,


%o add #ore o+$ecti0ity to the e"ercise' it is ossi+le to identi!y er!or#ance targets under each 53<. %hese er!or#ance targets #ay +e :ualitati0e or :uantitati0e' +ut should +e ti#e +ound and should s eci!y the le0el o! acce ta+le er!or#ance to o+tain high er!or#ance ratings. %he targets should !ocus #ore on the nature o! e!!orts to +e #ade +y the a raisee in relation to each o! the 53<s. Here is an e"a# le. 1. (ole: Mar,eting Manager KPA: Introducing a new roduct X in the region assigned to hi# 3er!or#ance %argets Bo# lete training rogra##e !or all district re resentati0es to ensure readiness !or distri+ution o! roduct X within the ne"t three #onths. %o ersonally contact a rando# grou o! 17 #a$or custo#ers !ro# each district and get their !eed+ac, on the roducts. ;0ol0e a #ar,eting strategy +y the end o! the year to increase sales o! the roduct in consultation with district re resentati0es.

?. (ole: Manager =/inance> KPA: Bost(reduction !weightage(@> 3er!or#ance %argets Bo# lete write(u and acce tance o! the co# any2s cost reduction #anual and distri+ute it to all 1A

#anagers +y the year end. Bollect 17 suggested cost reduction ideas er #onth !ro# each o! si" o erating #anagers.

@. (ole: Manager =4esearch and De0elo #ent> KPA: De0elo #ent o! New 3roduction =weightage(?> 3er!or#ance %argets Bo# lete literature and atent search +y the end o! the year !or !i0e atenta+le ideas use!ul in entering new #ar,ets. Bo# lete design and de0elo #ent o! a new rototy e in 1? #onths within the cost o! 4s 1'A7'777 without !ar#ing out wor, to 0endors.

A. (ole: Iunior ManagerH3roduction KPA: 1or,(si# li!ication in #achine sho =weightage(1> 3er!or#ance %argets Master 17 techni:ues in wor, si# li!ication as related to #achine sho o erations through #onthly cost(reduction #eetings !or #achine sho su er0isors.

-. (ole: Manager' H4D KPA: Introducing a new syste# o! de0elo #ent(oriented %argets er!or#ance a raisal =weightage(@> 3er!or#ance

Bollect in!or#ation a+out the de0elo #ent(oriented a raisal syste#s in use !ro# 17 di!!erent organisations in the city and suggest a syste# !or use in our organisation on the +asis o! these e" eriences.

G. (ole: Branch Manager =State Ban, o!....> KPA: De osit #o+ilisation 3er!or#ance %argets %o institute a syste# o! de osit #o+ilisation through collecti0e e!!orts o! all o!!icers in the +ranch +y holding #onthly #eetings and re0iewing rogress. %o ersonally contact at least 17 otential clients in the town e0ery #onth and try to get the# to o en accounts.

It #ay +e noted that these o+$ecti0es e# hasise the e!!ort that the a raisee needs to #a,e rather than the results. /or e"a# le' in the case o! Branch Manager =No. G> a+o0e' the target could +e stated as. 2%o #o+ilise de osits worth 4s -7'77'777 in the ne"t one year.2 Si#ilarly' in the case o! Manager =/inance> =4ole No. ? a+o0e>' the target could +e 2to +ring a+out cost( reduction +y 17 er cent in the ne"t one year2. In +oth cases the !ocus is on results rather than on e!!ort. 4esults o! this ,ind de end on a nu#+er o! !actors. In a raising er!or#ance' the !ocus should +e on e!!orts rather than results. %his is +ecause it enca sulates the er!or#ance o! an entire grou or de art#ent or an entire !unction in any organisation. O! course' in this rocess it is ho ed that the results will also +e o+tained. I! results are not achie0ed e0en a!ter e0ery e# loyee uts in high e!!ort' it will indicate that there is so#ething wrong so#ewhere in the organisation. I! e!!orts do not lead to results' the organisational rocesses need to +e e"a#ined. I! e!!orts do not lead to results in any indi0idual case' the nature o! e!!orts #ay need to +e changed' or other constraints #ay need to +e identi!ied and dealt with. %his again #ay in0ol0e $oint res onsi+ility o! the a raisee and the a raiser. 3er!or#ance a raisal could thus +eco#e an instru#ent to enhance the colla+orati0e ca a+ilities o! +oss( su+ordinate to #a,e things ha en in the organisation and thus contri+ute to its growth.

%ome #$amples of Ke, Performance Areas


#$ample 1: &ranch "anager of a &an'( %he er!or#ance areas are resented +elow. < list o! acti0ities to +e er!or#ed +y the +ranch #anagers are resented under each 53<. KPA 1: 'eposit Mo.ilisation 1-

Acti4ities: ;nsuring ro# t ser0ice to custo#ers' eriodic #eetings with the sta!!' contacting de ositors' de0elo ing strategies collecti0ely' #aintaining liaison with go0ern#ent authorities' etc.

ros ecti0e

Possi.le ).5ecti4es: %he o+$ecti0e is to increase de osits +y at least 17 er cent. ;!!ort goals could +e. =a> %o contact at least a+out ?77 otential custo#ers6 and =+> %o hold discussions with sta!! and in0ol0e the# in i# ro0ing custo#er ser0ice. KPA 2: Ad4ances to Clients Acti4ities: Bhec,ing ro osals !or ad0ances' eriodic ins ection o! ad0ances' identi!ying riority sectors !or ad0ances' lodging o! clai#s with De osit Insurance and Bredit Guarantee Bor oration =DIBGB>' attending to audit irregularities and ste s !or reco0ery o! ad0ances' actions !or dis osing wil!ul de!ault cases. ).5ecti4es: #ffort goals: =a> %o esta+lish a syste# o! rocessing all loan re:uests within 1- days o! recei0ing the re:uest. =+> %o initiate action against all non(recei0a+les +y the end o! the year. =c> %o contact #a$or clients !or outstandings and reco0er at least -7 er cent. KPA !: ouse Keeping Acti4ities: 3eriodic chec,ing o! records and stationery' ensuring stoc,s o! stationery' s ot(chec,ing !or +alancing o! +oo,s' !ollow(u action on audit re orts and ro# t recti!ication' #onitoring ti#ely su+#ission o! returns and state#ents ).5ecti4e: 4esult goalH%o ensure +alancing o! all +oo,s. #ffort goals: =a> %o chec, ail i# ortant records once a #onth. =+> %o de0elo a syste# o! #onitoring returns and state#ents and i# le#ent the sa#e. KPA ": Customer %er4ices Acti4ities: <ttending to custo#er co# laints' gi0ing ad0ice to custo#ers' corres ondence with custo#ers' contacting custo#ers and !inding out their di!!iculties. ).5ecti4es: 4esult goalH%o ensure a high le0el o! custo#er satis!action. #ffort goals: =a> %o ersonally attend to custo#er co# laints. =+> %o instal a suggestion +o" and act on the suggestions. =c> %o re ly to all lettersEen:uiries !ro# custo#ers within a wee, o! recei0ing the#. KPA 6: %taff Management Acti4ities: Sanctioning lea0e' wor, allot#ent' attending to sta!! grie0ances' ensuring !acilities and wor, conditions !or sta!!' counselling' identi!ying de0elo #ent needs and ro0iding o ortunities' $o+ rotation' lanning !or sta!! re:uire#ents ).5ecti4es: =a> %o ha0e a #eeting with e0ery sta!! #e#+er once a #onth and ensure their satis!action. 1G

=+> %o initiate a syste# o! in!or#al get(togethers e0ery :uarter. =c> %o e" eri#ent with a syste# o! $o+ rotation gi0en +y the H4D unit. #$ample 2: In this e"a# le the er!or#ance areas and their weightages !or a nu#+er o! roles' ta,en !ro# large engineering co# any #anu!acturing hea0y e:ui #ent' are resented. %he roles are selected !ro# di!!erent de art#ents to gi0e an idea o! 53<s. %his organisation is a #ulti( roduct' #ulti(unit co# any e# loying a+out 1-'777 e# loyees. %argets are also gi0en in so#e cases.

(ole 1: Assistant Accounts )fficer


7(eports to Accounts )fficer8 KPAs Weightage %o get eo le !ro# other unitsEsections to wor, in lace o! a+sentees to ull u areas o! attendance wor, so as to !eed the in ut to ;D3 as er schedule !or co# utation o! @ wagesEsalaries. %o co# are the wage +ill o! each #onth with that o! the re0ious #onth to chec, 0iolent ? 0ariations' i! any' arising !ro# ossi+le co# uter errors %o 0eri!y whether all early ay#ents' court attach#ents and other reco0eries to +e e!!ected su+se:uent to the recei t o! co# uter state#ents ha0e +een reduced !ro# the net a#ount @ aya+le to the concerned e# loyees +e!ore re aration o! the %eller State#ent !or withdrawal o! cash !or dis+urse#ent o! wagesEsalaries. %o ascertain whether the wor, o! statutory re#ittances such as' ;SI contri+ution' ro!essional ta"' B%D' etc.' are rogressing as er rogra##e and to !acilitate such re#ittances ? to +e #ade +e!ore due dates so as to a0oid enalty and other conse:uences' i! necessary' +y dra!ting eo le !ro# other units. %o ta,e stoc, o! ending clai#s in res ect o! lea0e tra0el concession =&%B>' ;" ense 4e orts J %er#ination settle#ents at #onthly inter0als and to get the# cleared where0er such clai#s are ? #ore than a !ortnight old. %o attend to en:uiries o! e# loyees and e"(e# loyees in res ect o! their ersonal #atters 1 connected with ayroll' which cannot +e sol0ed at the sta!!(le0el.

1. ?.

@.

A.

-. G.

4ole ?. <ssistant <ccounts Manager =4e orts to <ccounts Manager> 1. %o re0iew the syste# o! audit' the rocedure !ollowed and the e"tent o! audit chec,s e"ercised to ensure ade:uacy o! audit. =%arget. %o co# lete one unit er :uarter> ?. %o re0iew ade:uacy o! 0arious other internal controls in o eration !or e!!ecti0eness in the de art#ent. =%arget. %o co# lete one unit er :uarter> @. Bo(ordinate and ensure co# letion o! #onthly audit and issue o! re ort and ta,e u !ollow(u action. =%arget. <udit u to Iune 1*)? to +e co# leted +y Se te#+er 1 *)?6 re ort !or the !irst :uarter to +e issued.> A. General re0iew o! rocedure and syste# !ollowed in the internal audit' its olicy and suggest i# ro0e#ents where0er there is sco e. =%arget. Bo# lete this ite# at least in res ect o! two areas. One regarding selection o! 0ouchers in accordance with drill and another regarding !ollow(u action on o+ser0ation #ade.> (ole !: Assistant Manager0 %tores 7(eports to Materials Manager8 Ke, Performance Area Weightage @ ? @

Seeing all inco#ing da,s ertaining to stores' de art#ent and attending to i# ortant a ers. =%arget. %o ensure that delay in corres ondence is a0oided>

17

%o ,ee a watch o0er critical ite#s = roduction and non( roduction including standard stoc, ite#s> !or recei t with regular !ollow(u till !inalisation. =%arget. %o a0oid hold(u o! roduction>

Blearance o! #aterials recei0ed in recei0ing =%arget. %o a0oid de#urrageE incon0enience to carriers> De art#ental 0eri!ication o! stores. =%arget. %o ensure no loss o! #aterial warranting write(o!! action.> 4e0iew o! =a> 4e ort !inalisation =+> 4e$ected stores ite#s =c> 4e aira+le ite#s =d> Britical standard stoc, ite#s ha0ing stoc,s less than two #onths =e> Sho re$ection6 and =!> Blai#s on carriersEinsurance. =%arget. %o ensure that !unctions detailed to o!!icers are carried out ro# tly.>

A -

@ @

G. 7. ).

%o ensure that all the stores and tool cri+s !unction without disru tion. =%arget. %o a0oid dislocation in the stores !unction> %o ins ect all stores to ensure #aintenance o! ro er storage =%arget. %o a0oid s oilage and deterioration o! #aterials.> %o ensure that a ro riate action is ta,en !or dis osal o! scra arising =%arget. %o ensure that eriodical clearance is done without accu#ulation.>

@ @ @

*. %o e"ercise ro er control on in0entory holdings %arget. =a> %o co(ordinate with De art#ents !or re0iew o! e"cess in0entory =+> %o identi!y non(#o0ing stoc,s and ta,e a ro riate action !or dis osal thereo!. @

17. General <d#inistration =%arget. %o ensure s#ooth !unctioning o! stores>

(ole ": 'esign Manager 7(eports to 3eneral Manager8 Ke, Performance Area 1. Bo(ordination with 4esearch Designs and Standards Organisation with regard to the de0elo #ent o! new designs ?. Guide in the de0elo #ent o! new designs !or e" ort o! the roducts. @. Bo(ordination with sho s and other de art#ents with regard to the rototy e +uilding and roductionising the drawings Weightage @

1)

A. Guide in the re aration o! s eci!ications' testing rocedures' etc. -. %o ro0ide #odern and latest !acilities !or the design and drawing o!!ice' la+oratory' li+rary and +lue rinting sections. G. Guide in the de0elo #ent o! di!!erent ty es o! roduct 0ariations 7. O0erall su er0ision o! the de art#ent' 0iK.' la+oratory' li+rary and +lue rinting sections ). Guide in the re aration o! :uotation !or :uoting against 0endors. Scrutiny o! o!!ers recei0ed and o!!ering technical co##ents

@ 1

(ole 6: Assistant Manager 9 Progress 7(eports to Manager0 Planning8 Ke, Performance Area 1. ;nsuring a0aila+ility o! right nu#+er o! cylinders in all the sho s when re:uired econo#ically. %argets. =a> <ssess#ent o! sho wise re:uire#ent +e!ore end Iuly. =+> U date the loading re ort e0ery day. =c> Stoc,(outs not #ore than twice a #onth =d> ;nsure collection o! e# ty cylinders within three Hays o! co# letion ?. Initiating and #onitoring the rogress o! s ares wor, orders %argets. =a> Bo(ordinate with sho s and ,ee the 3lanning Manager osted on all rele0ant in!or#ation. =+> De0elo a good record(,ee ing syste# !or #onitoring the rogress o! s ares +y #id(<ugust. =c> ;nsure loading o! s ares IBs' #aterial to #eet the co##itted deli0ery dates and su+se:uent !ollow(u with sho 0er+alEIOM2S. =d> Monthly status o! s ares wor, orders to +e re ared. @. Initiating and #onitoring the rogress o! 0arious stoc,wor, orders. %argets. =a> De0elo a good record(,ee ing syste# +y #id(<ugust. =+> Maintain relia+le records on stoc, wor, orders. =c> Initiate closure o! stoc, wor, orders ro# tly =d> 3re are #onthly status re ort. 1* @ ? Weightage @

A. Ma,ing heat(treated ite#s a0aila+le to asse#+ly sho s =a> 1ee,ly re0iew o! the rogress at 0arious oints and #a,es a re ort. =+> <rrange to send !ortnightlyEstatus re ort to concerned de art#ents within ? days o! the succeeding !ortnight.

=c> ;!!icient !ollow(u with 0arious de art#ents in connection with heat(treat#ent and ,ee Manager 3lanning osted o! rele0ant in!or#ation. =d> 4ecord o! wor, orders o! heat(treat#ent o eningEclosure -. <rrange to des atchEstore credit e"cess' re$ected ite#s' loaned ite#s' and su+( contracted ite#s. %argets. =a> <ction to +e ta,en within si" days o! recei t o! co##unication in the nor#al course. =+> ;!!icient !ollow(u with arties concerned. G. <ttending to ad#inistrati0e' ersonal ro+le#s o! e# loyees in the de art#ent. %argets. =a> Sanctioning lea0e letters within one day =+> %o +ring to the notice o! the #anager' grie0ances' ro+le#s o! e# loyees in ti#e to ta,e suita+le action. 1 1

(ole :: %uperintendent+Maintenance 7(eporting to *actor, Manager; Ke, Performance Area 1. ;nsure uninterru ted #a$or lant !acilities li,e sanitation' water su ower in the lant ly and Weightage @

;nsure trans ort ser0ices !or rogress de art#ent' senior o!!icers' urchase ?. and #edical section' etc. @. ;nsure #ini#u# +rea,down on shot +last #achines' sheet #etal #achinery' #achine sho and !urnaces House(,ee ing o! the lant in general and ositi0e i# ro0e#ent in illu#ination le0el %i#ely erection o! new #achines' rogress on old #achinery +rea,down and de0elo #ents' including re0enti0e #aintenance rocedure @ @

A.

-.

%o +ring down re orta+le accident rate insisting on suita+le sa!ety #easures and G. G. +ringing a+out inter(de art#ental sa!ety co# etitions

?7

7.

Maintaining cordial relations with outside agencies to achie0e the a+o0e

(ole <: #ngineer+Manufacturing 7(eports to %uperintendent0 Production8 Ke, Performance Area 1. ;ntering the sho in ti#e to #ar, attendance6 con!ir# !ull sho attendance ?. Bhec,ing +rea,downs o! #achinery' ta,ing i##ediate action when needed @. Going through the log !or sa!eguarding the riority o! $o+s A. Bo(ordination with other de art#ents to sol0e daily ro+le#s -. 3lanning targets in ad0ance and ensuring the a0aila+ility o! necessary tools !or ro$ects G. Su er0ision and regular contact with su+ordinates !or identi!ying their wor, re:uire#ents. 7. <ttending #eetings and ensuring i# le#entation o! decisions ). &ea0ing the necessary re orts !or the !ollow(u shi!ts and con!ir#ing the sa#e. *. Discussion with re orting o!!icer a+out ad0ance lan and riority $o+s and other in!or#ation 17. <ttending to all inter(o!!ice #e#os Increasing %elf+a=areness and 2nderstanding: %elf Appraisal 1ho +ene!its #ost !ro# er!or#ance a raisals9 < co##only held 0iew is that a raisals are !or the +ene!it o! the organisations and that they are the res onsi+ility o! a raisers and the H4 de art#ents. <s long as this erce tion continues' er!or#ance a raisals will run into ro+le#s. < large art o! er!or#ance a raisals are !or the a raisees. 3er!or#ance lans hel the a raisee to set directions !or his wor,' identi!y areas o! signi!icant contri+utions and a0oid wastage o! ti#e. 3er!or#ance re0iews can hel in co##unicating ers ecti0es' di!!iculties and e" ectations to the seniors and get #ore su ort !or i# ro0ing one2s er!or#ance. 3er!or#ance a raisals should +e seen as instru#ents o! de0elo #ent !or e0ery e# loyee. %hey should +e owned #uch #ore +y the a raisees than +y the a raisers and H4 de art#ents. %o achie0e this ro+a+ly one should #o0e away !ro# 2a raisal culture to 2 lanning2' 2analysis2' 2re0iew2 and 2de0elo #ent culture. In all these 2a raisal2 is in0ol0ed +ut it is not the !ocal oint6 it is only a art o! the rocess. I! this s irit is inculcated' the syste#s #ay +e 2owned2 +y the a raisee. 1hen the syste# is owned +y the a raisee the #eaning o! sel! a raisal changes. Sel! a raisal is not #eant to +e a ritualistic !or#(!illing e"ercise. It is a signi!icant initial ste !or er!or#ance de0elo #ent. < lot should ha en in sel! a raisal which #ay not +e re!lected in the !or#s !illed +y the a raisee. In !act a good sel! a raisal need not result in good !or# !illing although it results in increased sel!( awareness through a rocess o! re0iew and re!lection on the art o! the a raisee. Sel! a raisal has an i# ortant role to lay in e# loyee de0elo #ent. <s we ha0e seen in the re0ious cha ters' de0elo #ent is sel! directed. %he indi0idual is not li,ely to learn and de0elo hi#sel! unless he #a,es conscious e!!orts to identi!y ossi+le directions o! growth and continuously #onitor the growth. /or any e# loyee to de0elo his ca a+ilities to er!or# a articular !unction associated with his role' he #ust ,now the i# ortance o! that !unction to his role and the lin,s +etween learning to er!or# that !unction and his !uture ?1 Weightage ? ? ? ? @

? @ ?

? ?

growth in =or outside> the organisation. %hen he #ust ,now how well he is er!or#ing this !unction' the ca a+ilities he has and those that he lac,s to er!or# that !unction. He can disco0er these +y er!or#ing this !unction and recei0ing !eed+ac, !ro# others a+out his er!or#ance le0els and his ca a+ility indicators. He #ay use this !eed+ac, and re!lect on his e" erience to !inally identi!y the ca a+ilities he has and the ca a+ilities he lac,s. He #ay then #a,e lans to de0elo these ca a+ilities with the assistance o! his su er0isors and others in the organisation. %hus' the indi0idual is always a !ocal oint and deter#iner o! his de0elo #ent and er!or#ance i# ro0e#ent. %he organisation ro0ides a su orting en0iron#ent and other !acilities re:uired !or his de0elo #ent. It is in this conte"t that sel! a raisal +eco#es an i# ortant ste in er!or#ance i# ro0e#ent and de0elo #ent. Sel! a raisal should +e a continuous rocess. More than his re orting o!!icer' the e# loyee should ta,e ste s to continuously assess his er!or#ance' identi!y his strengths and wea,nesses and ,ee a record o! the e!!orts #ade as well as his success and !ailure e" eriences while er!or#ing di!!erent !unctions. He should also analyse the causes !or his successes and !ailures. 1hile this rocess should go on continuously' the indi0idual should de0ote so#e ti#e once in a while to re0iew all his e!!orts' to assi#ilate and identi!y the consistencies in his successes or !ailures and to re are his de0elo #ent lans. %he er!or#ance a raisal eriod ro0ides one such !or#al o ortunity !or e0ery indi0idual to re0iew his er!or#ance and growth o0er the entire year. %he !ollowing can +e considered as the ur oses o! sel! a raisal. 1. %o ro0ide an o ortunity !or the e# loyee to reca itulate. =a> =+> =c> the 0arious acti0ities he has underta,en in relation to di!!erent !unctions associated with his role6 his achie0e#ents and !ailures with regard to these6 the ca a+ilities he de#onstrated and ca a+ilities he !elt he lac,ed in carrying out these acti0ities and the 0arious #anagerial and +eha0ioural di#ensions he de#onstrated o0er the year.

?. %o identi!y his own de0elo #ent needs and lan his de0elo #ent in the organisation +y identi!ying the su ort he re:uires !ro# his re orting o!!icer and others in the organisation. @. %o co##unicate to his re orting o!!icer his contri+utions' acco# lish#ents' and re!lections to ena+le hi# to 0iew his a raisee2s er!or#ance in the right ers ecti0e and assess #ore o+$ecti0ely. %his is a necessary re aration !or er!or#ance re0iew discussions and er!or#ance i# ro0e#ent lans. A. %o initiate an organisation(wide rocess o! annual re0iew and re!lection to strengthen sel!(initiated de0elo #ent !or #anagerial e!!ecti0eness. Sel! a raisal should start at the end o! the er!or#ance eriod $ust +e!ore the er!or#ance re0iew discussion ta,es lace. Sel! a raisal should start with the a raisee ta,ing u his 53<s and o+$ecti0es !or the eriod and re!lecting on his achie0e#ents and !ailures. He should ha0e with hi# the notes he #aintained a+out any e0ents' critical incidents' and re!lections he had during the eriod and use the# to reca itulate his contri+utions and success and !ailure e" eriences. He #ay analyse his er!or#ance using the guidelines suggested in the ne"t cha ter' 23er!or#ance <nalysis2. He #ay then assess hi#sel! using the rating scales' i! any' decided +y the organisation. He should #a,e +rie! notes o! his re!lections in the a raisal !or# to co##unicate the# to his a raiser. %he a raisee should !ollow this rocess also !or +eha0ioural and #anagerial di#ensions. He should also #a,e his suggestions a+out de0elo #ental needs identi!ied' i! any. %he sel! a raisal !or# co# leted in this rocess should then +e assed on to the re orting o!!icer !or his assess#ent and lanning !or er!or#ance re0iew and counselling discussions. < raisers should treat such sel! a raisal re orts recei0ed !ro# the a raisee seriously. < raisers nor#ally do not get enough ti#e to o+ser0e each o! their su+ordinates closely. Most o!ten a raisers tend to !or# i# ressions a+out their su+ordinates on the +asis o! one or two o! their !ailures which they !ind stri,ing. So#eti#es one or two success e" eriences #ay also lea0e highly ositi0e #ar,s. It is necessary !or the a raiser to re0iew each and e0ery as ect o! er!or#ance and +eha0ioural and #anagerial :ualities shown +y the a raisee i! he has to understand the a raisee and contri+ute to his de0elo #ent. %he only way an a raiser can get a good deal o! in!or#ation a+out the a raisee and his er!or#ance is +y as,ing hi#. Data ro0ided +y the a raisee through sel! a raisal ser0es this ur ose well. So#e a raisers are worried that their su+ordinates li,e to highlight only their acco# lish#ents and strengths +ut not their !ailures and wea,nesses. %his erce tion is o!ten wrong. ;0en when it is true' there is no need to worry +ecause the a raisee has e0ery right to highlight his acco# lish#ents and the a raiser has the o+ligation to ta,e cognisance o! these in his a raisal. I! there are !ailures and wea,nesses that the a raiser ercei0es' these could +e ointed out during a raisal discussions. It should also +e re#e#+ered that when an a raisee oints out only his strengths and acco# lish#ents' he is raising the e" ectations o! his +oss !ro# hi# !or the su+se:uent eriod. More challenging goals can +e set in the ne"t eriod. ??

%hus' sel! a raisal can +e a 0ery use!ul co# onent o! a de0elo #ent(oriented er!or#ance a raisal syste#' i! 0iewed seriously +y the a raisee as well as the a raiser and used a ro riately to generate greater understanding a+out the a raisee.
%#L* APP(AI%AL% *)( MA-A3#(IAL #**#CTI>#-#%%

%here are organisations where 2sel! a raisal2 does not !ind lace in the er!or#ance a raisal syste#. O!ten a s#all s ace is ro0ided !or the a raisee to write down his acco# lish#ents or tas,s assigned and results achie0ed. %his cannot +e called sel! a raisal. In such cases e"ecuti0es o!ten as, what should +e done. %he author would li,e to assert that sel! a raisals can +e done inde endent o! the er!or#ance a raisal syste#s. ;0ery #anager should de0elo a disci line o! re0iewing his own er!or#ance as a #anager at least once a year. Such re0iews should +e syste#atic and truth!ul. <s no one else is in0ol0ed in this rocess' the #anager can say to hi#sel! things that he #ay not li,e to share with others. Such sel! a raisal rocess #ay !ocus on the !ollowing :uestions. 1. ?. @. A. -. G. 7. ). *. 17. < 1hat ha0e I acco# lished in the last one year9 How do I rate #y acco# lish#ents or contri+utions as against last year' and as against all that was ossi+le this year9 1hat contri+uted to #y er!or#ance9 1hat !actors hel ed #e and what !actors re0ented #e !ro# doing +etter9 1hat are #y own co# etencies and attitudes that hel ed #e er!or# +etter and that re0ented #e !ro# gi0ing #y +est9 How are #y attitudes a!!ecting #y growth and de0elo #ent as a co# etent #anager9 1hat o ortunities ha0e I #issed during the last year and how do I ro ose to use the# this year i! I !ace si#ilar situations9 1hat su ort do I need !ro# #y seniors and !ro# the organisation to +e a+le to #a,e a +etter contri+ution9 1hat su ort do I need to de0elo #y own otential and ca a+ilities !or the !uture9 1hat are #y action lans !or ne"t year to +eco#e a #ore e!!ecti0e #anager9 1hat do I want to co##unicate to #y su eriors to hel the# understand #e +etter and also to hel the# to e# ower rne !or +etter er!or#ance9 raisal.

endi" @.1 resents a si# le !or#at that could +e used !or Sel! <
APP#-'I?

2/1

)elf *ppraisal( * +ormat Na#e. 3eriod. /ro#...... %o .................... ,P* for the *ctivities and *ccomplishment period targets s +acilitating factors #nhibiting factors *ction plans (!evelopment actions, support re-uirements

?@

Chapter ! Performance Anal,sis


Introduction I! we ha0e to #anage er!or#ance' we need to understand what constitutes er!or#ance. Understanding the constituents o! er!or#ance +y +rea,ing it into 0arious ele#ents and understanding the !actors that cause er!or#ance is called er!or#ance analysis. Iust as we analyse 0arious co# ounds and che#icals +y su+$ecting the# to tests in la+oratory conditions' er!or#ance analysis is also a rocess o! analysing 0arious constituents o! er!or#ance as it occurs in natural settings. 3er!or#ance o! indi0iduals' dyads' tea#s and organisations can +e isolated and analysed. Iust as organisations do a S1O% =strengths' wea,nesses' o ortunities' and threats> o! their er!or#ance and lan strategies to i# ro0e er!or#ance' we need to do a S1O% o! e0ery indi0idual2s er!or#ance and lan strategies to i# ro0e. Such an analysis should +e done with total trans arency and sincerity i! er!or#ance analysis has to +e o! use. 3er!or#ance analysis is an i# ortant co# onent o! a raisal. <ny rating to a raisees should +e gi0en only a!ter a thorough analysis o! er!or#ance. %o analyse er!or#ance it is necessary to understand the er!or#ance e:uation.

The Performance #@uation


Indi0idual er!or#ance M <+ility X Moti0ation X Organisational Su ort N or ( Bhance /actors

%his e:uation i# lies that any gi0en indi0idual2s er!or#ance in a gi0en eriod and in a gi0en role or $o+ =or set o! tas,s that constitute the role> is a !unction o! his co# etence to do that $o+ or role or set o! tas,s associated with that role' #ulti lied +y his interest or #oti0ation to do that $o+ and the su ort he gets to do that $o+ during that eriod. It is #oderated +y chance or en0iron#ental !actors. 3er!or#ance #anage#ent in0ol0es de!ining er!or#ance' understanding the co# etencies re:uired to do the $o+ or 0arious tas,s associated with the $o+' de0elo ing the co# etencies' creating the #oti0ation needed' or utting hard wor, or e!!ort to do the $o+ and getting all the(su ort needed to do that $o+ or series o! tas,s associated with that $o+ or role. 3er!or#ance analysis in0ol0es analysing or understanding the 0arious !actors contri+uting to er!or#ance = ositi0ely or negati0ely> !or a gi0en eriod' and #anaging the# to enhance er!or#ance in the su+se:uent eriod. It in0ol0es understanding !irst the tas,s associated with the role' setting standards and #easuring the achie0e#ents against these standards. %his deals with the right side o! the er!or#ance e:uation. It also in0ol0es identi!ying the co# etencies needed to er!or# each o! the tas,s' ascertaining the le0el to which each o! the tas,s ha0e +een er!or#ed' understanding the reasons !or good or oor er!or#ance o! each o! the tas,s' analysing the# into a+ility !actors or co# etence !actors' #oti0ational !actors' and organisational su ort !actors. 3er!or#ance analysis also in0ol0es identi!ication o! !actors within the control o! the indi0idual' his seniors' and the organisation. < good er!or#ance analysis lays the !oundation !or #a,ing good ensuring er!or#ance i# ro0e#ents. er!or#ance i# ro0e#ent lans and

I! su+$ecti0ity in a raisals has to +e reduced' the a raiser should not only assess the le0el o! er!or#ance achie0ed +y the a raisee +ut also understand and assess the conditions under which the a raisee has acco# lished his tas,s. %he a raiser should ,now i! the a raisee could ha0e done +etter with #ore e!!ort or with so#e #ore control o0er certain things he has done. %he a raiser should also ,now the nature and e"tent o! e!!ort ut in +y the a raisee. He should ,now the di!!iculties !aced +y the a raisee. He should also ,now the e"tent to which the a raisee is aware o! his own strengths and wea,nesses in relation to his er!or#ance in di!!erent tas,s. %he a raiser should then use this understanding and ,nowledge to rein!orce the strengths o! the a raisee' hel hi# recognise his wea, oints' deter#ine the su ort to +e gi0en' identi!y de0elo #ental needs as well as hel the a raisee in identi!ying 53<s and targets !or the ne"t eriod. %hus' er!or#ance analysis can +e considered as the heart o! the a raisal syste#. %his +eco#es clear when we see how er!or#ance analysis !or#s the +asis !or a raisal ratings' counselling discussions' identi!ication o! de0elo #ental needs and action lans. ?A

)AB#CTI>#%

3er!or#ance analysis should lead to the follo=ing: 11. Identi!ication o! the !actors that ha0e hel ed the a raisee reach the le0el o! er!or#ance he achie0ed in relation to 0arious 53<s' targets and 0arious other !unctions associated with his $o+. %hese #ay +e called 2!acilitating !actors2' 1?. Identi!ication o! the !actors that ha0e re0ented the a er!or#ance. %hese #ay +e called 2hindering !actors2. raisee !ro# doing +etter or those that hindered his

1@. Identi!ication o! the !actors =!ro# those a+o0e> that the a raisee can do so#ething a+out =to retain i! they are !acilitators or reduce and eli#inate i! they are hindering>' those which the re0iewing o!!icer or so#e+ody else in the organisation can do so#ething a+out' and those a+out which not #uch can +e done. Such an identi!ication would suggest action lans !or the a raisee as well as !or the a raiser. 1A. Identi!ying de0elo #ental needs !or +etter role. er!or#ance on critical !unctions associated with the resent

1-. Gaining a +etter understanding a+out the a raisee' his role re:uire#ents and the situation in which he is wor,ing and also share with hi# the e" ectations and understanding o! the a raiser so that the co##unication +etween the# is increased.
M#T )')L)31

/or doing er!or#ance analysis the !ollowing ste s should +e !ollowed. I. <!ter discussions on 53<s' o+$ecti0es and other di#ensions with the re orting o!!icer' the a raisee should eriodically ,ee re!lecting a+out how well he is rogressing in his wor, and in relation to 53<s and other di#ensions. II. During the er!or#ance eriod whene0er the e# loyee co#es across success e" eriences or !eels hel ed in his er!or#ance' he should note the sa#e on a iece o! a er =or diary>. In noting this !ocus should +e on the !actors that are hel ing hi# do well and how these are !acilitating his er!or#ance. < +rie! #ention is enough as re#inders !or hi# in the !inal er!or#ance analysis. III. Si#ilarly' whene0er he e" eriences !ailure or runs into di!!iculties or !eels re0ented !ro# doing +etter' he should note the !actors that are causing this. =It is a art o! the #anagerial role to continuously ,ee co##unicating such !actors to one2s re orting o!!icer and ta,e his hel to o0erco#e the#.> Howe0er' these should +e noted so#ewhere !or annual re0iew. IC. <t the end o! the er!or#ance eriod the a raisee considers his own er!or#ance on each o! the 53<s and other di#ensions. %a,ing into consideration the e!!ort he had ut in' di!!iculties he e" erienced' the results he achie0ed and the conte"t in which these were achie0ed he rates hi#sel! on a rating scale =or at least categorises his er!or#ance as e"cellent' good' a0erage' oor' etc.> C. <!ter assigning hi#sel! such ratings' he should start listing down all the !actors in detail that ha0e hel ed hi# in acco# lishing whate0er he acco# lished. Si#ilarly he should list down all the !actors that ha0e re0ented hi# !ro# doing +etter or that ha0e +eco#e constraints on his +etter er!or#ance. In listing these !actors he should ta,e the hel o! the notes he #aintained during the year =ste s ? and @ a+o0e>. He #ay also go through ite# +y ite# in his 53<s to #a,e the list e"hausti0e. =1hile 53<s are hel !ul !or er!or#ance analysis' the a raisee should go +eyond 53<s and loo, at each and e0ery as ect o! his wor, and list the !acilitating and inhi+iting !actors.> CI. <!ter listing down the !acilitating and hindering !actors e"hausti0ely' the a raisee should then classi!y these !actors into the !ollowing categories.

*acilitating *actors
=a> 3ersonal or indi0idual !acilitating !actors =/IS>. <ll those !actors that are attri+uta+le to the er!or#er'his a+ilities' e!!ort' etc. =e.g. $o+ ,nowledge' inter ersonal co# etence' re0ious e" erience' initiati0e' hard wor,' etc.>. =+> /acilitating !actors attri+uta+le to the re orting o!!icer =/4Os>. <ll those !actors that are attri+uta+le to the re orting o!!icer =e.g. !ast decision(#a,ing' sta!! su ort' delegation' guidance' a roacha+ility' etc.>. ?-

=c> /acilitating !actors attri+uta+le to the organisation and its syste#s =/OS>. <ll those !actors which are a art o! the organisation' its structure' olicies' rocedures' syste#s' etc. =e.g. !le"i+le olicies' good wor, conditions' good control syste#s' o en cli#ate' accounta+ility' colla+oration !ro# other de art#ents' su ort !ro# re0iewing o!!icers' etc.>. =d> /acilitating !actors attri+uta+le to the su+ordinate =/S>. %hose !actors attri+uta+le to the a raisees own su+ordinates =e.g. hard wor, +y the#' #oti0ation' co(o eration' not ta,ing lea0e' unctuality' high a+ility' etc.>. =e> /acilitating !actors attri+uta+le to e"ternal en0iron#ent =/;>. %hose that are not a art o! the a+o0e !our and that are attri+uta+le to the larger socio(econo#ic' olitical and other conditions o! the en0iron#ent e"ternal to the organisation e.g. li+eralisation o! so#e olicies +y the go0ern#ent' su ort gi0en +y news a ers' co( o erati0e o!!icials o! the go0ern#ent' i# ro0ed econo#ic situation' oor i#age o! co# etitors' etc.>.

Inhi.iting *actors
%he sa#e categorisation as gi0en earlier. =a> Inhi+iting !actors attri+uta+le to the indi0idual =II> e.g.' oor #e#ory' !a#ily ro+le#s' need to de0ote attention to children2s education' oor health' ro+le#s o! e" ression and language' etc. =+> Inhi+iting !actors attri+uta+le to the re orting o!!icer. Delays in decision(#a,ing' lac, o! guidance and direction' +usy +oss' a#+iguous goals' allot#ent o! tas,s on ad hoc +asis' not ro0iding ade:uate !acilities. =c> Inhi+iting !actors attri+uta+le to su+ordinate sta!!. &ac, o! coo eration' union ro+le#s' a+senteeis#' slow wor,' oor ca a+ilities' close su er0ision re:uired +y the#' etc. =d> Inhi+iting !actors attri+uta+le to the en0iron#ent =I;s>. Sudden changes in the econo#ic' social or olitical cli#ate' delays in su lies' une" ected e0ents a!!ecting wor,' stri,es' etc. =e> Inhi+iting !actors attri+uta+le to the organisation and its syste# =IOs>. 3olicies li,e that o! un lanned trans!ers' etc.' changes in to #anage#ent' introduction o! new technologies that de#and ti#e' etc. CII. <!ter such an analysis' an indi0idual =a raisee> #ay re!lect a+out indi0idual !acilitating !actors he would li,e to #aintain or !urther strengthen and the inhi+iting !actors that he would li,e to o0erco#e in !uture. He should thin, a+out the #echanis#s he would li,e to ado t to i# ro0e his strengths and o0erco#e his wea,nesses. He #ay also thin, a+out the su ort he re:uires !ro# his re orting o!!icer to i# le#ent his lans. CIII.%he indi0idual should also re!lect on the su ort that could +e e"tended +y his re orting o!!icer to #aintain the e"ternal !acilitating !actors and to reduce or wea,en the inhi+iting !actors. IX. He then should ass on his er!or#ance analysis to his re orting o!!icer !or his co##ents' additions to the !actors identi!ied and er!or#ance re0iew and counselling discussions. %he er!or#ance analysis ro$ects the achie0e#entsEcontri+utions o! the a raisee' his !ailures and !actors contri+uting to +oth these. %his analysis also co##unicates to the re orting o!!icer the di!!iculties e" erienced +y hi# during the rocess o! carrying out 0arious acti0ities =3<s> during the year.
2%I-3 P#(*)(MA-C# A-AL1%I% *)( C)2-%#LLI-3 A-' I'#-TI*ICATI)- )* '#>#L)PM#-T -##'%

3er!or#ance analysis done in the #anner outlined a+o0e hel s in counselling and identi!ying de0elo #ent needs as well as in lanning action !or i# ro0ing the er!or#ance situation +y re#o0ing +loc,s +eing e" erienced +y the a raisee. By adding to the !actors identi!ied +y the a raisee' the a raiser co##unicates the attention he has +een aying to the a raisee and his role. By adding to the indi0idual !acilitators and inhi+itors the a raiser is contri+uting to increasing the sel!(awareness o! the a raisee through a rocess o! !eed+ac,. 4ecognition o! strengths not identi!ied +y the a raisee gi0es ositi0e stro,es when the a raiser co##unicates the sa#e. <greeing with strengths already identi!ied +y the a raisee also increases the awareness o! one2s strong oints on the art o! the a raisee. Disagree#ents should lead to discussion during counselling sessions in which the a raiser is li,ely to change his erce tions o! the a raisee or the a raisee hi#sel! #ay get new insights. <dding to the wea, oints through a rocess o! !eed+ac, #ay hel the a raisee to e" lore areas he needs to i# ro0e. Disagree#ents with so#e o! the ersonal inhi+iting !actors also hel the e# loyee to de0elo sel!( awareness. ?G

%he a raiser need not write e0erything on the !or# itsel!' $ust as the a raisee need not write e0erything. Only +rie! oints are written as guides !or discussion. %hese !or#s should re#ain with the a raisee and the a raiser only' and need not go to the re0iewing o!!ice and should not go to ersonnel de art#ent. 1hile counselling the a raiser and the a raisee try to understand each others2 e" ectations' di!!iculties and erce tions' and grow close in the rocess o! lanning !or i# ro0ing their er!or#ance. In this rocess they #ay also identi!y de0elo #ent needs o! the a raisee where0er the a raisee needs to ac:uire ca a+ilities. So#e o! these de0elo #ent needs #ay ha0e to +e attended to +y the training di0ision or the H4D de art#ent through training rogra##e' $o+ rotation' etc. Other de0elo #ent needs #ay re:uire action on the art o! the a raiser in the !or# o! #ore guidance' on the $o+ training and discussions with the a raisee. < !ew o! these #ay re:uire sel!(study and de0elo #ent +y the indi0idual hi#sel!. 3er!or#ance analysis should ro0ide the +asis !or all these. <n e"a# le o! how er!or#ance analysis data ro0ide in!or#ation a+out the !acilitating and inhi+iting !actors !or a 0ariety o! actions at a raisee' a raiser and organisational le0els' is gi0en in the !ollowing case.

#$ample: Performance anal,sis of .ranch managers of a .ank


%he !ollowing is an e"a# le o! how ta+ulated er!or#ance analysis data o! e# loyees o! a gi0en unit can +e utilised !or organisation de0elo #ent ur oses. %he !ollowing are the !acilitating and hindering !actors identi!ied +y di!!erent +ranch #anagers =n M ??> in a region. <ll o! the# were re orting to a regional #anager. %he !acilitating and hindering !actors identi!ied +y the# were ta+ulated !ro# their a raisal !or#s. %he !actors were categorised under the !ollowing. /I /4O /OS /S /; II /4O IS I; IOS M M M M M M M M M M /acilitating !actors attri+uta+le to the indi0idual /acilitating !actors attri+uta+le to the re orting o!!icer /acilitating !actors attri+uta+le to the organisation and syste#s /acilitating !actors attri+uta+le to the su+ordinate sta!! /acilitating !actors attri+uta+le to the e"ternal en0iron#ent Inhi+iting !actors attri+uta+le to the indi0idual Inhi+iting !actors attri+uta+le to the re orting o!!icer Inhi+iting !actors attri+uta+le to su+ordinate sta!! Inhi+iting !actors attri+uta+le to the en0iron#ent Inhi+iting !actors attri+uta+le to the organisation and its syste#s. .ategory )r. no. +acilitating factors 3atience and willingness to listen to the ro+le#s o! the sta!! and custo#ers and then wor,ing out a solution to the ro+le# =7>O 3erse0erance =-> So+erness and tact =A> Goodwill and !ellow(!eeling towards others =@> 5een desire to hel custo#ers +y gi0ing the# ersonal attention =@>

/I

/I /I /I /I

? @ A -

=contd.> ?7

Categor, /l /l /l /l /l /l /l /l /l /l /l /l /l /l /l /l /l /l /l /l /I /4O /S /OS /S /4O /; /S /S /; /S /; /S /OS

%r/ no/ G 7 ) * 17 11 1? 1@ 1A 11G 17 1) 1* ?7 ?1 ?? ?@ ?A ??G ?7 ?) ?* @7 @1 @? @@ @A @@G @7 @) @*

Facilitating factors <ggressi0e natureEa+ility to con0ince custo#ers =?P <+ility !or intelligent co##unication and u+lic relations =?> Interest in +an,2s wor, =?> <+ility to #oti0ate the sta!! =?> Sensiti0ity to the !eelings o! others and hence success in inter( ersonal dealings =?> < lication o! de#ocratic #ethods while dealing with sta!! and custo#ers =?> 1illingness to res ect all sta!! #e#+ers and to sol0e their ersonal ro+le#s' whene0er ossi+le =1 > <s,ing !or a !eed+ac, !ro# the sta!! and custo#ers to identi!y #any wea,nesses =1> <n inherent li,ing and sy# athy !or eo le =1> S ecialisation in ad0ances at the acade#ic le0el and entire career till date =1> Inherent desire to e"ceed targets =e0en sel!(i# osed targets> and stretch one2s a+ility to the !ullest =1> Duic, decision(#a,ing =1> <de:uate delegation =1> <nalytical and i#aginati0e +ent o! #ind6 a+ility to ercei0e new ideas and initiate new actions =1> < willing learner =1> Good health =1> Bachelor status =1> <+ility to control one2s ego and hence less ego clashes =1> Iudicious use o! discretionary owers =1> 3unctuality =1> Good acce tance with sta!!' ha0ing re0iously wor,ed with the# =1> Good and ti#ely su ort !ro# controlling authority and his o!!ice =11> Sincere and hard wor,ing +ranch clerical sta!! =)> Good re#ises =G> Good su ort !ro# su er0isory sta!! at the +ranch =G> <n 4M who is really a reciati0e o! good wor, done =-> Good otential !or +usiness in area o! o eration =?> ;!!icient and co# etent sta!! =1> ;" erienced sta!! =1> Good assistance !ro# other local BMs =1> Good tea# o! !ield o!!icers =1 > Bo(o eration e"tended +y units !or 0isit o! +ranch sta!! =1> Highly #oti0ated sta!!' with good #oral and tea# s irit =1> Good networ, o! SBI +ranches =1> %r/ no/ Inhibiting factors 1 ? @ A / 0 ) * 17 11 MildEgood nature which is so#eti#es ta,en to +e a wea,ness =A> O0ersensiti0e E o0ere#otional H get u set easily =?> Indi!!erent health =?> Inade:uate $o+ ,nowledge' articularly relating to SSI ad0ances =?> &ac, o! con!idence while dealing with aggressi0e sta!! =1> Short te# ered H lac, o! atience to a reciate the li#itations o! sta!! =1> Hea0y social o+ligations =1> Disregard !or #inor rules and regulations =1> <#ena+le to acce t authority only !ro# 4M and none else =1> &i#ited ower o! e" ression in ;nglish H una+le to ut across ideas =1> Inherent !aith in goodness o! hu#an nature' which o!ten leads to disillusion#ent =1> ?)

Category II II II II II II II II II II II

Di!!iculty in #oti0ating sta!! =1> <+sence !ro# +ranch due to lea0eE de utationEtraining =?> &ac, o! co##and o0er Gu$arati =1> Ina+ility to scold su+ordinates' as one realises their li#itations in II 1res ect o! initiati0e and $o+ ,nowledge =1> II 1G Inertia in the a+sence o! ressure =1> II 17 &ac, o! ade:uate training =1> IOS 1) Shortage o! clerical sta!! =A> IOS 1* BongestedE+adly situatedEinade:uate +ranch re#ises =A> IOS ?7 Shortage o! su er0isory sta!! =@> I; ?1 &ong distance o! the +ranch !ro# #ost residential areas =@> IS ?? Non(co(o eration o! clerical sta!! =@> IS ?@ High degree o! a+senteeis# a#ong sta!! =?> Bo# etitors =co# anies' co(o erati0e +an,s' etc.> o!!ering #ore I; ?A interest =?> Q; ?Intense co# etition =?> Borrowers +elonging to a cross(section who lac, integrity or who do I; ?G not a reciate the 0alue o! !inancial data =?> 3er#anent con!lict +etween certain #e#+ers o! the sta!!' not easily IS ?7 resol0ed =1> IS ?) Head cashier not ta,ing interest H ,een to lea0e early =1> IS ?* Shortage o! su+ordinate sta!! =1> II @7 <+sence o! any ro#otion o ortunities in the +an, =1> I; @1 3olitical in!luence at the +ranchE&HO le0el =1> IOS @? &ac, o! ti#e to carry out all the duties =1> IOS @@ Delay in decision(#a,ing at &HO =1> IOS @A Hea0y go0ern#ent wor, u sets +ranch routine =1> IS @&i#itations o! clerical sta!! ro#oted !ro# the su+ordinate cadre =1> Inter!erence +y outside consultants in our decision to call u ad0ances I; @G =1> &i#itations in res ect o! $o+ ,nowledge' initiati0e' etc.' in the second IS @7 line at the +ranch =1> IOS @) Sto age o! o0erti#e =1> I; @* <rea rone to !re:uent ci0il distur+ances =1> O %he nu#+er o! +ranch #anagers #entioning each !actor in their analysis is gi0en in +rac,ets. 1ote( <ll !actors categorised as IOS and I4O deser0e attention +y the re orting o!!icer to reduce. /actors #ar,ed IS #ay indicate areas where guidance is re:uired +y the a raisee to handle his su+ordinates. So#e o! the !actors #ar,ed as II #ay +e reduced or eli#inated through training. In using er!or#ance analysis data o! the entire unit' !ocus should +e on I4O and IOS !actors to recei0e !eed+ac, and to change syste#s. Si#ilarly !ocus on /4O and /OS !actors #ay hel in identi!ying strength areas to continue the sa#e. < sensiti0e re orting o!!icer would !ind these data e"tre#ely use!ul.

II IOS II

1? 1@ 1A

?*

Chapter " Impro4ing Cualit, of Performance (atings


3er!or#ance a raisals are o!ten ercei0ed as !ailures as the greatest e" ectation !ro# the# see#s to +e o+$ecti0ity. %hey are seen as unsuccess!ul essentially +ecause o! the issues associated with the ratings. %he author has always ta,en a 0iew that ratings are the oison generated in the rocess o! e"tracting nectar. I! er!or#ance #anage#ent rocess is the nectar(generation rocess =de0elo #ent and er!or#ance i# ro0e#ents>' the ratings generated !ro# the rocess are li,e oison. %hey could ,ill the entire s irit o! er!or#ance #anage#ent rocess unless understood ro erly and the o0er o+session with the# is recti!ied. Howe0er' they ha0e +eco#e ine0ita+le as #ost organisations insist and +eha0e as though er!or#ance #anage#ent is essentially a rating(generation rocess. < lot is tal,ed a+out and discussed. how to control li+eral ratings' how to nor#alise the#' how to ensure o+$ecti0ity etc. are the ri#ary concerns in #ost organisations and they ignore the #ost i# ortant art o! er!or#ance #anage#ent and that is er!or#ance i# ro0e#ents and indi0idual' dyadic and tea# de0elo #ent. <tte# ting to attain er!ect o+$ecti0ity in ratings is a !utile e"ercise. It #ust +e recognised that the er!or#ance a raisal ratings are essentially su+$ecti0e. 8ou cannot co# are an indi0idual2s er!or#ance in one de art#ent li,e roduction with another indi0idual in another de art#ent li,e #ar,eting and e:uate the# $ust +ecause +oth o! the# are designated as assistant #anagers. %he tas, structure is di!!erent' the :uali!ications are di!!erent' the nature o! wor, is di!!erent and the +osses are di!!erent. 1e waste a lot o! ti#e trying to co# are the inco# ara+le. 1e !orget that reducing the entire year2s wor, o! an indi0idual to a nu#+er and e:uating that nu#+er is anti(hu#an and anti(de0elo #ent. %he #easure#ent o! hu#an +eha0iour and' there!ore' er!or#ance has serious Ri#itations. It is i# ortant to understand the nature o! #easure#ent. %here are !our ty es o! scales that can +e used to #easure things. No#inal' Ordinal' Inter0al and 4atio scales. %hese scales ha0e interesting ro erties. %hese are +rie!ly descri+ed +elow. No#inal scales. ;0erything that e"ists does so in certain :uantity. %he #o#ent you say so#e thing e"ists and assign a na#e to it and associate so#e ro erty with it +y 0irtue o! the na#e assigned' you ha0e scaled it. %his is the #ost ri#iti0e !or# o! scaling. It is a no#inal scale. It is na#ing o! an indi0idual' :uality' rocess and heno#ena. It is the #ost ri#iti0e !or# o! #easure#ent. ;"a# les o! the no#inal scales are licence late' house nu#+er' security nu#+er' caste' grou 1'?'@ etc. Ordinal scales. Ordinal scales indicate the order or osition on an o+$ect or 0aria+le in relation to other o+$ects or 0aria+les. /or e"a# le' the !irst +orn' second +orn' and third +orn !or# an ordinal scale. %he sa#e thing goes !or a ran,ing scale. %hey indicate ositioning +ut do not indicate the distance +etween the ositions. %he age di!!erence +etween the !irst +orn and the second +orn #ay +e three years and the di!!erence +etween the secGnd and the third +orn #ay +e 17 years. %he !irst ran,er #ay score *7 er cent' the second ran,er )7 er cent and the third )G er cent. %hese are $ust ordinal ositions. %hese are slightly +etter de0elo ed scales than the no#inal scales. Inter0al scales. Inter0al scales are the scales where the di!!erence +etween any two consecuti0e nu#+ers is e:ual to the di!!erence +etween any other two nu#+ers. %he nu#+ers are additi0e and su+tracti0e +ut not di0isi0e and #ulti licati0e. %he di!!erence +etween 77 ,g weight and G* ,g weight is e:ual to the di!!erence +etween 1A ,g and 1@ ,g. 1here0er you ta,e two consecuti0e nu#+ers' the di!!erence is the sa#e. %his is the ro erty o! inter0al scales. I! this scaling is a lied to er!or#ance a raisals' the di!!erence o! the er!or#ance le0els +etween a er!or#er getting 7) oints on his a raisal and the one getting 77 oints should +e e:ual to the di!!erence +etween the one getting A- #ar,s and AA #ar,s. 1e ,now that our er!or#ance a raisals are not that accurate to +e a+le to add and su+tract. Howe0er' we retend as though the er!or#ance a raisals are su+$ect to addition and su+traction. So#e co# anies e0en #ulti ly the# +y #ulti lying the weightage o! 53<s with the score on the 53<. %his is a+surd gi0en the nature o! #easure#ent. %he er!or#ance a raisals are not e0en a#ena+le to ordinal scales. 1e cannot say with con!idence that X a#ount o! er!or#ance o! a roduction #anager is e:ual to the 8 a#ount o! er!or#ance o! the #ar,eting #anager. 8ou cannot arrange #ar,eting' roduction' I% and !inance #anagerial er!or#ance on the sa#e co# ara+le scales. 8et' we retend as though our a raisals can +e o+$ecti0e and the ratings !ollow inter0al scales. I! we understand the scaling rinci les' we will not waste our ti#e trying to i# ro0e o+$ecti0ity in a raisals. < raisals are essentially su+$ecti0e heno#ena. It is !utile to co# are the er!or#ance o! one indi0idual !ro# one de art#ent or the sa#e de art#ent wor,ing in another set o! conditions to another erson and try to arrange the# on a nor#al ro+a+ility cur0e. @7

4atio scales. %hese are highly so histicated scales with an a+solute Kero and are a#ena+le !or addition' su+traction' #ulti lication and di0ision. %hese are the scales used in s ace and hysics6 we are not e0en concerned with these as we are no where near these. Un!ortunately' these argu#ents ha0e not cut #uch ice in the ast. Organisations continue to ursue so#e !or# o! ratings or the other. %his is +ecause good er!or#ance has to +e recognised and e0en rewarded. I# ro0e#ents ha0e to +e #easured and ensured. 3er!or#ance needs to +e +ench#ar,ed. Due to these ractical considerations' #easure#ent has +eco#e an ine0ita+le e0il o! er!or#ance #anage#ent. Hence' this cha ter is intended to hel the reader understand the dyna#ics o! ratings and the ro+le# areas in order to +ring a+out greater sanity in a raisals. <n i# ortant co# onent o! any er!or#ance a raisal syste# is the er!or#ance assess#ent through ratings. %he assess#ent #ay +e #ade using categories li,e 2e"cellent2 or 2outstanding2' 2good2' 2a+o0e a0erage2' 2a0erage2' 2+elow a0erage2' 2 oor2' etc. < !i0e( oint' se0en( oint or a nine( oint scale can +e used to assess er!or#ance. I! categories are used' they need to +e de!ined and oints #ay +e assigned to the# =e.g. outstanding M 7' 0ery good er!or#ance ( G' a+o0e a0erage or !airly good M -' a0erage M A' +elow a0erage M @' oor er!or#ance M ? and 0ery oor M 1>. In the a raisal syste# descri+ed here' the a raisee co# letes a sel! a raisal and gi0es his a raisal and analysis re ort to his re orting o!!icer at the end o! the year. %he a raiser is e" ected to study the re ort and #a,e his own o+ser0ations on each o! the 53<s' o+$ecti0es' #anagerial di#ensions' +eha0iour di#ensions' and !acilitating and inhi+iting !actors identi!ied in er!or#ance analysis. He then has a er!or#ance re0iew and counselling discussion with the a raisee on a day lanned !or this ur ose. 3rior to such discussion' the a raiser #ay #a,e ro0isional assess#ent and rate the er!or#ance o! the a raisee on each o! the 53<sEo+$ecti0es and #anagerial and +eha0ioural di#ensions>. I! the a raisee rates his er!or#ance on di!!erent di#ensions' it is use!ul !or the a raiser also to gi0e ro0isional ratings. 1hether or not the sel!(ratings o! the a raisee di!!er !ro# those assigned +y the a raiser' they should ha0e a discussion on how each o! the# arri0ed at the ratings they ga0e !or each di#ension. In this rocess' they are li,ely to e"change 0iews and co##unicate with each other on a nu#+er o! issues. %he a raisee #ay share #ore in!or#ation. %he a raiser #ay gi0e !eed+ac, or share his e" ectations with the a raisee. < nu#+er o! rocesses that should ta,e lace and the ur oses o! this discussion are e" lained in the cha ter on 23er!or#ance Bounselling2. I! the rocess re:uires +oth the a raisee and the a raiser to assign ratings' they could +eco#e the starting oints !or the a raisal discussion rocess. Howe0er' to +e e!!ecti0e' this rocess re:uires the a raiser to share his ratings =e0en i! they are ro0isional> with the a raisee. %his re:uires a co# lete o enness and trust +etween the a raiser and the a raisee. %his also de#ands an e#otional cli#ate o! acce tance +etween the# so that they are not ta,en away +y the ratings and the ratings per se do not +eco#e #ore i# ortant than sharing e" eriences and gi0ing and recei0ing !eed+ac,. I! such an o enness and healthy at#os here does not e"ist in any organisation' it is +etter to start with a syste# in which the ratings assigned or to +e assigned +y the a raiser are not shared with the e# loyee +ut the re0iew discussion and counselling ta,es lace as descri+ed in the ne"t cha ter. %he a raiser #ay !inally assign his ratings con!identially' although he should gi0e so#e indications a+out his assess#ent during re0iew discussions. %his should +e done only till such ti#e as #ore o enness and trust is +uilt u . < continued ractice o! con!identiality #ay hinder the de0elo #ent o! #ore trusting relationshi s. %he !ollowing eight co#+inations o! sel!(assess#ent' re orting o!!icer2s assess#ent and con!identiality or o enness o! !inal assess#ent are ossi+le. %he sel!(a raisal #ay include only analysis =acco# lish#ents' strengths' wea,nesses' etc.> or #ay include analysis and ratings. %he a raiser #ay carry out an analysis only and assign no ratings or #ay also assign ratings a!ter analysis. Model no. 1 ? @ A G 7 at!re of self Reporting officer"s appraisal appraisal Only analysis' no ratings Only analysis' no ratings Only analysis' no ratings Only analysis' no ratings Only analysis' no ratings <nalysis and ratings <nalysis and ratings <nalysis and ratings Only analysis' no ratings <nalysis and ratings <nalysis and ratings Only analysis' no ratings Only analysis' no ratings <nalysis and ratings @1 )penness Bon!idential O en Bon!idential O en Bon!idential O en Bon!idential

<nalysis and ratings

<nalysis and ratings

O en

%he #ost desira+le #odel is nu#+er ) where +oth o! the# assign ratings and share the# = ro0isional and !inal> with each other. %his is what should +e ai#ed at. ;:ually e!!ecti0e is #odel nu#+er A in which only the a raiser gi0es ratings and shares the# = ro0isional and !inal>.%he ne"t +est are #odel nu#+ers G and ? where the a raiser does not gi0e ratings +ut analyses the a raisee2s er!or#ance and share with each other their erce tion o! the a raisee2s acco# lish#ents' contri+utions' strengths and wea,nesses. %he a raiser #ay gi0e his !inal ratings con!identially +ut he shares his analysis rior to that and loo,s at the a raisee2s er!or#ance. %he other #odels =Nos. 1' @' - and 7> are not suita+le !or de0elo #ent(oriented a raisal syste#s.
T # -##' *)( P#(*)(MA-C# (ATI-3%

1hate0er #ay +e the #odel used' !inal assess#ent =in the !or# o! ratings or assign#ent o! oints>' +eco#es 0ery use!ul !or de0elo #ent as well as ad#inistrati0e decisions. I! a raisals do not result in such ratings or oints +eing assigned to a raisees on di!!erent 53<s =or o+$ecti0es> and +eha0ioural and #anagerial di#ensions' it +eco#es di!!icult to ,now su+se:uently how well the indi0idual is rogressing. It also +eco#es di!!icult to #aintain and rocess in!or#ation a+out the ca a+ilities o! e# loyees to handle di!!erent !unctions. %he :ualitati0e analysis done +y each a raisee and the a raiser is di!!icult to use !or training rotation' lace#ent' trans!er' ro#otion' decisions' etc. Once the ratings are a0aila+le' it is easy to identi!y indi0iduals who can er!or# certain !unctions well or those who ha0e de#onstrated certain #anagerial and hu#an ca a+ilities. In 0iew o! this' a raisals should result in er!or#ance ratings on di!!erent !unctions as well as di!!erent di#ensions o! +eha0iour. It is !or this reason that there has +een a great deal o! research in the 1est on i# ro0ing the :uality =#ore o+$ecti0ity and less errors and +iases> o! ratings. In the su+se:uent sections o! this cha ter' we will e"a#ine the !actors that contri+ute to oor :uality o! ratings and then see how it can +e i# ro0ed.
*ACT)(% A**#CTI-3 (ATI-3% I- P#(*)(MA-C# APP(AI%AL%

%he #ost co##only e" ressed dissatis!action a+out er!or#ance a raisals is in relation to the su+$ecti0ity in er!or#ance ratings. ;# loyees are concerned a+out this +ecause er!or#ance ratings entered in ersonnel records are li,ely to ha0e a lot o! i# act on su+se:uent ro#otion' lace#ent' trans!er and de0elo #ent decisions ta,en +y the organisation a!!ecting his career. 3er!or#ance ratings ha0e attracted a lot o! attention o! sychologists and other +eha0ioural scientists who ha0e +een #a,ing e!!orts to disco0er the 0arious !actors a!!ecting rating and rating +eha0iour and decreasing the :uality o! a raisals. < 0ariety o! rating scales ha0e +een de0elo ed and e" eri#ental studies conducted to control 0arious +iases and errors in er!or#ance ratings. Carious hy otheses ha0e also +een ro osed on the +asis o! theories and !indings a0aila+le !ro# erson erce tion' inter ersonal attraction' attri+ution' in!or#ation rocessing and such other areas o! social sychology. Most o! this wor, has +een done in western settings and o!ten with 0arying results o+tained +y di!!erent researchers on the sa#e issue. ;" eri#ental research ha0ing i# lications !or a raisal ratings on Indian su+$ects is rather recent and is acti0ely +eing ursued only at one or two laces. %here is howe0er a lot o! western research on this to ic. Iournals li,e the 2ournal of *pplied Psychology, Personnel Psychology, 3rganisational &ehaviour and 4uman Performance, Public Personnel "anagement, 2ournal of Personality and )ocial Psychology, and *cademy of "anagement 5eview carry such research articles !re:uently. Howe0er' these researches are largely unsyste#atic and su+$ect to !ads and !ashions. %hey !ocus too #uch on !or#ats rather than rocesses =Decotiis and 3etit' 1*7)>. In 0iew o! the rele0ance o! so#e o! these researches to our understanding o! the dyna#ics o! a raisal ratings' a !ew o! the recent studies and theoretical ro ositions are resented +elow. It is ho ed that the reader will a reciate the co# le"ity o! the issue o! a raisal ratings and continue to stri0e to i# ro0e the :uality o! ratings.
%2AB#CTI>IT1 A-' #(()(% I- (ATI-3%

<s long as hu#an +eings are in0ol0ed in assessing other hu#an +eings' there is +ound to +e a certain a#ount o! su+$ecti0ity. Su+$ecti0ity or +iases occur when the ratings assigned +y any a raiser to any a raisee are deter#ined #ore +y !actors other than the er!or#ance or actual +eha0iour shown +y the a raisee on the di#ension under assess#ent. %he !ollowing are so#e o! the co##only o+ser0ed heno#ena that contri+ute to errors and +iases in a raisals increasing su+$ecti0ity. 1. So#eti#es a raisers li,e or disli,e one or two actions or :ualities o! the a raisee i##ensely and' there!ore' tend to rate hi# ositi0ely or negati0ely on all other di#ensions =also called 2Halo e!!ect2>. ?. So#e a raisers tend to +elie0e that they should +e 2nice2 to their su+ordinates and' there!ore' tend to assign the# lenient ratings =leniency e!!ect>. So#e other a raisers ha0e an o osite hiloso hy and 0iew o! their su+ordinates and tend to rate the# too strictly =se0erity e!!ect>. @?

@. So#e raters do not want to gi0e too high or too low ratings to their su+ordinates. Due to their o0erconsciousness' they tend to rate #ost o! their a raisees around the a0erage =central tendency or a0eraging>. A. So#e raters tend to li,e the ratees who are li,e the# and' there!ore' assign the# higher ratings than to those who are ercei0ed +y the# as di!!erent !ro# the#. So#e other raters tend to li,e those who ha0e characteristics which they do not ha0e +ut would li,e to ha0e =called 2assi#ilation2 or 2di!!erential e!!ects2>. -. Duite a !ew raters #a,e $udge#ents a+out others on the +asis o! their !irst contacts and tend to carry these i# ressions o0er a long ti#e =!irst i# ression errors>. G. So#eti#es raters assign ratings on the +asis o! the recent +eha0iour they ha0e seen in their a !orgetting a+out the ast +eha0iour o0er a eriod =2recency e!!ect2>. aisees

7. So#e a raisers tend to assess their a raisees on the +asis o! their e" ectations and erce tions a+out how their own +osses are going to a raise the#.

Aeha4iourall, Anchored (ating %cales


S#ith and 5endall =1*G@> ha0e e0ol0ed a rocedure !or de0elo ing e0aluati0e rating scales anchored +y e"a# les o! e" ected +eha0iour. %he !or#at ro osed !or these rating scales is a series o! continuous gra hic rating scales' arranged 0ertically. Beha0ioural descri tions' e"e# li!ying 0arious degrees o! each di#ension' are rinted +eside the line at di!!erent heights according to their scale ositions as deter#ined +y $udge#ents o! those who are e" ected to use the scales. %he e"a# les =or +eha0iour descri tions> are intended as anchors to de!ine le0els o! the characteristic' and as o erational de!initions o! the di#ension +eing rated. 4atings are to +e #ade +y chec,ing at any osition along the line. %he anchors are de!ined in ter#s o! +eha0iour e" ected to +e shown +y the rate relating to that di#ension. /or e"a# le' while assessing the +eha0iour o! nurses' the anchor could +e stated in the !or# o! an e" ectation such as.2I! this nurse were ad#itting a atient who tal,s ra idly and continuously o! her sy# to#s and ast #edical history' could +e e" ected to loo, interested and listen2' instead o! state#ents such as 2shows interest in atients2 descri tion o! sy# to#s2. %he use o! e" ected +eha0iour is intended to encourage such conscientiousness +y #a,ing the redictions =a> so concrete that' in 0iew o! re0ious agree#ent +y the eer grou ' central tendency or hedging e!!ects will +e #ini#ised6 and =+> so 0eri!ia+le that the insight' $udge#ent' 0alues' etc.' o! the rater are otentially challenged i! later +eha0iour o! the ratee should !ail to con!ir# the rediction. Based on the rocedure used +y S#ith and 5endall =1*G@> any organisation interested in de0elo ing such scales =,nown as Beha0iourally <nchored 4ating Scales or B<4S> #ay !ollow these ste s. 1. Identi!y the roles or the categories o! roles !or which such rating syste# has to +e de0elo ed. %he category o! roles should re:uire so#e co##on ca a+ilities =#anagerial and +eha0ioural> !or e!!ecti0e er!or#ance. %hese categories could +e +road. /or e"a# le' all secretaries in one category' or +ranch #anagers' or #iddle(le0el #anagers' or senior #anagers' #ar,eting #anagers' etc. Bonstitute eer grou s o! a raisers o! these rolesHas #any as ossi+le. %hese grou s #ay +e called !or a short wor,sho or they could wor, through eriodic #eetings. %here #ay +e se0eral grou s !or one category o! roles. <s, each grou category. to !irst identi!y and list the :ualities or characteristics that are i# ortant !or that role

?.

@. A.

Select the #ost !re:uently #entioned di#ensions. I! necessary' re resentati0es o! the grou s can get together and !inalise the list !or each category o! roles. Britical incidents could +e tal,ed a+out !or #ore clarity. ;ach grou !or#ulates general state#ents re resenting de!initions o! high' low' and acce ta+le er!or#ance !or each :uality. %he grou s should then re are e"a# les o! +eha0iour in each :uality and these should +e edited in the !or# o! e" ectations =e.g. when !aced with sta!! shortages' e"a#ines the wor, and reallocates sta!! to handle critical !unctions>. So#e o! the grou s #ay act as $udges and they should atte# t inde endently to reclassi!y each o! the @@

-. G.

7.

+eha0iour descri tions into one o! the di#ensions #easured. ). *. 1here there is no agree#ent with the original classi!ication' either the di#ension or the +eha0iour e"a# le is to +e eli#inated. Use so#e o! the grou s to descri+e outstanding and oor er!or#er in each role category. Use these descri tions to see i! the di#ensions identi!ied in ste s ? and @ are critical to the role category.

17. 3resent the !inally selected +eha0iours in 0ertical scale !or#ats. Since the ti#e B<4S was de0elo ed' a large nu#+er o! research studies ha0e +een conducted to e"a#ine the e!!ecti0eness in reducing errors and increasing the :uality o! ratings. %hus' in the S#ith and 5endall =1*G@> !or#at o! B<4S' raters were to +e gi0en a set o! 0ertical gra hic scales and instructed to record the +eha0iour o+ser0ed on each a lica+le scale throughout the a raisal eriod. %he instructions were to o+ser0e the +eha0iour' decide to which di#ension it +elonged' and then indicate on the scale the date and details o! the incident. %he notation o! the incident was to +e #ade at the e!!ecti0eness le0el on the scale that was considered to +e the #ost a ro riate !or that incident on that +eha0ioural di#ension. %he scaling o! the e!!ecti0eness le0el o! the o+ser0ation' i.e.' the lace on the age at which the o+ser0er recorded the incident' was to +e aided +y a co# arison with a series o! illustrati0e +eha0ioural 2anchors2 and 2genetic descri tions2 =Bernardin and S#ith' 1*)1' . 1-*>. <!ter o+ser0ing and recording such incidents o0er a eriod' the a raiser #ay #a,e a su##ary rating. %hus in this !or#at the se:uence is o+ser0ation(in!erence(scaling(recording and su##ary rating. 4osinger et al. =1*)?> descri+ed the de0elo #ent o! a Mi"ed Standard Scale to assess the er!or#ance. %he !ollowing ste s are in0ol0ed. )tep 6. %as, analysis that results in +eha0ioural descri tions o! #a$or acti0ity areas and tas,s. )tep 7, <ssign#ent o! i# ortance scores to each tas, through syste#atic collection o! data on !re:uency o! er!or#ance and criticality o! the tas,. )tep 3. De0elo #ent and re!ine#ent o! +eha0ioural state#ents regarding di!!erent ro!iciency le0els. )tep 8. ;sta+lishing 0alidity and relia+ility. %he a raisal !or#at they suggest is criterion(re!erenced rather than nor#(re!erenced and it includes three anchors =a0erage' e"cellent' oor> !or a nu#+er o! di#ensions. %he Mi"ed Standard Scales are so#ewhat si#ilar to B<4S. %here ha0e +een a nu#+er o! such #odi!ications and de0elo #ents o! new scales and also a nu#+er o! researches on the#. Bo# arisons +etween B<4S and other rating !or#ats ha0e not shown B<4S to o!!er sycho#etrically su erior or #ore accurate er!or#ance ratings =Bernardin' 1*776 Dunnette and Bor#an' 1*7*6 Bor#an' 1*7*6 Iaco+s et al. 1*)76 5ingstro# and Bass' 1*)16 and &andy and /arr' 1*)7>. It is' howe0er' ac,nowledged that nu#erous #ethodological wea,nesses e"ist in these searches co# aring B<4S with other scales. <lthough B<4S #ay not roduce error(!ree or accurate ratings' there is so#e research e0idence =though largely inconclusi0e> a0aila+le to indicate their otential use !or #ore e!!ecti0e !eed+ac, =Ho# et al.' 1*)?>.2<ccuracy o! the reci ient2s erce tion o! er!or#ance !eed+ac, should +e enhanced +ecause B<4S de!ine scale di#ensions and anchors in concrete' +eha0ioural ter#s' #a,ing the# #ore inter reta+le to the reci ient than those di#ensions and anchors !ound in traditional !or#ats. <lthough B<4S are designed to #a"i#ise inter reta+ility !or raters =to !acilitate 0alid ratings>' the sa#e #ay also +e true !or ratees recei0ing !eed+ac, !ro# this instru#ent. /eed+ac, !ro# B<4S #ay also +e #ore accurately ercei0ed i! the nu#erical ratings are docu#ented +y s eci!ic +eha0ioural e"a# les6 thus re0enting distortion or denial o! !eed+ac,2 =Ho#e et al.' 1*)?' . -G*>. 4esearch with !or#ats o! #uch greater so histication than the traditional gra hic' trait a roach show !ancy scales such as +eha0iourally anchored rating scales which do essentially no +etter at the ga#e o! inhi+iting rating in!lation =&andy and /arr' 1*)7>. Nu#erous other studies ha0e co# ared di!!erent ty es o! rating !or#ats such as Mi"ed Standard Scales' Beha0iourally <nchored 4ating Scales or Si# le Gra hic Scales. In general' these studies ha0e re0ealed relati0ely little di!!erences in the e"tent o! rating error as a !unction o! the !or#at =Bernardin and Bardy' 1*)?>. In !act' there is a strong indication that ratings are as #uch or #ore a !unction o! the idiosyncrasies o! the rater who #ade the# than that o! the actual +eha0iour o! the ratees. @A

Assessment ., Peers
So#e literature is a0aila+le on the er!or#ance assess#ents +y eers =#e#+ers o! the sa#e le0el in the organisational hierarchy ha0ing wor,ing relations with the a raisee>. 3eer assess#ents are #ade through no#inations' ratings or ran,ings. &o0e =1*)1> co# ared the relia+ility' 0alidity' !riendshi +ias and user reaction using no#inations' rating and ran,ing !or#ats. His study was conducted on 1A- olice o!!icers using a *( oint +eha0iourally anchored scale !or ratings. Briterion ran,ings and ratings were ro0ided +y their s:uad su er0isors. In this study' all eer(+ased #ethods showed signi!icant relia+ility and 0alidity and the 0alidity coe!!icients were not signi!icantly +iased +y the !riendshi +etween eer assessors and assessee. 4an,ings and no#inations dis layed signi!icantly greater relia+ility and 0alidity than ratings. Howe0er' user reactions were negati0e to all #ethods. %hey indicated that eer assess#ent was not !air' not accurate' not li,ed +y the# and did not suggest the# !or ro#otion decisions.

%ome Theoretical Considerations on *actors Affecting Appraisals


2So#e o! the #ost i# ortant conclusions to +e drawn !ro# research on hu#an in!or#ation rocessing are that our rocessing ca a+ilities are li#ited and that erce tion and recall !re:uently do not #atch reality. %he li#itation on our rocessing ca acity is handled nicely +y cogniti0e re resentations called 2Sche#ata2 =Neisser' 1*7G>. < sche#a directs our attention and aids in categorisation and recall o! in!or#ation. Howe0er' sche#ata can also lead to syste#atic inaccuracies. Biased ratings #ay result when a rater relies on an irrele0ant' o0er si# listic or otherwise !aulty sche#a. /or instance' the gender o! the ratee #ay +e irrele0ant to $o+ er!or#ance +ut yet #ay set u a sche#a =in this case a se" stereoty e> that #ay +ias erce tion and recall o! the ratee2s er!or#ance. 4atee se"' race' age' and e0en a single instance o! +eha0iour #ay elicit a sche#a which the rater e# loys to( rocess and recall ratee er!or#ance. 4esearch indicates that once a ratee is categorised' !urther erce tion and recall o! that ratee2s er!or#ance is +iased toward that category =or sche#a> =Bantor and Mischel' 1*77>. %here will +e a +ias to attend to in!or#ation that is consistent with the sche#a =Snyder and Swann' 1*7)>. 1hen recalling in!or#ation concerning the ratee2s er!or#ance' the rater will +e +iased toward recalling in!or#ation that is #ade #ost a0aila+le +y the sche#a. %hat is' ratings will +e +iased toward those di#ension 0alues which +est !it with =#ost closely rese#+le> the sche#a !or the ratee =%0ers,y and 5ahne#an' 1*7A>.2lt also a ears that hu#ans are ty ically unaware o! these +iasing rocesses and will deny the o eration o! such a +ias e0en when it is clearly resent2 =Nis+ett and 1ilson' 1*77' . @-@>. Bernardin and Bardy =1*)?> ro osed that the accurating as a er!or#ance on the art o! the rater is a !unction o! the rater2s a+ility and #oti0ation to rate accurately. %he le0el o! trust the rater has in the a raisal syste# a!!ects his #oti0ation to rate accurately. Bernardin and Bardy =1*)?> also suggest that rater #oti0ation and a+ility to rate accurately are dyna#ically interrelated. /or e"a# le' when there is low trust in the a raisal syste#' the rater #ay rely hea0ily on the in!or#ation ro0ided +y his stereoty ic sche#ata rather than searching !or in!or#ation. 1hen there is high trust' the rater #ay acti0ely search !or ratee er!or#ance in!or#ation rather than to rely on his sche#ata. %here are nu#erous ara#eters that can a!!ect accuracy o! a raisals. %he greater the nu#+er o! these considered' the +etter o!! the ractitioner will +e. On the +asis o! re0iew o! se0eral researches on er!or#ance a raisal' Decotiis and 3etit =1*7)> ha0e de0elo ed a #odel o! er!or#ance a raisal rocess.%he #odel is +ased on the re#ise that2the accuracy o! er!or#ance a raisals can +e 0iewed as a !unction o!. =a> rater2s #oti0ation to a raise accurately6 =+> $o+ rele0ance o! the rating standards used +y the rater6 and =c> rater2s a+ility to e0aluate ratee $o+ +eha0iour.2 On the +asis o! their #odel and their sur0ey o! se0eral researches relating to this' they ro ose the !ollowing.

Rater Motivation
1. 4ater #oti0ation to assign accurate ersonnel research than when the organisational rewards. er!or#ance ratings is higher when the ur ose o! a raisal is ur ose is either e# loyee de0elo #ent or ad#inistration o! raisal is

?. @. A.

4ater #oti0ation to assign accurate er!or#ance ratings is higher when the ur ose o! a e# loyee de0elo #ent than when the ur ose is ad#inistration o! organisational rewards.

4egardless o! ur ose' rater #oti0ation to assign accurate er!or#ance ratings is higher when the results o! the a raisal are con!idential !ro# the ratee. 1hen the ur ose o! a raisal is either e# loyee de0elo #ent or ad#inistration o! organisational rewards and the rater is re:uired to discuss the result o! a raisal with the ratee' rater #oti0ation to assign accurate er!or#ance ratings is higher when the rater ercei0es !eed+ac, as a legiti#ate as ect o! his or @-

her role. -. G. 7. 1hen !eed+ac, o! the results o! a raisal is re:uired' rater #oti0ation to assign accurate er!or#ance ratings is higher i! the rater ercei0es that he or she has the necessary insights into ratee $o+ +eha0iour. %he easier a er!or#ance a raisal instru#ent is to understand' the #ore li,ely raters are to ercei0e it as +eing ade:uate !or the ur ose at hand. < er!or#ance a raisal instru#ent that is +ased on syste#atically gathered $o+ in!or#ation will +e ercei0ed +y a rater as #ore ade:uate !or the ur ose o! a raisal than an instru#ent de0elo ed on ad hoc +asis. < er!or#ance a raisal instru#ent that is +ased on $o+ in!or#ation' easy to understand' and ercei0ed as ade:uate !or the ur ose o! a raisal will lead to increased rater #oti0ation to assign accurate er!or#ance ratings.

).

Rater Ability
1. %he #ore o ortunities the rater ta,es ad0antage o! to o+ser0e ratee $o+ +eha0iour' the higher his or her a+ility to assign accurate er!or#ance ratings. ?. %he #ore correct the +eha0iour o+ser0ed +y the rater' the higher his or her a+ility to assign accurate er!or#ance ratings. @. <ll else +eing e:ual' the closer the rater2s organisational le0el is to the ratee2s organisational le0el' the higher the rater2s a+ility to assign accurate er!or#ance ratings. A. 4aters !ro# di!!erent organisational le0els sa# le di!!erent as ects o! ratee +eha0iour. %here!ore' the higher the corres ondence +etween the content o! the rating instru#ent used and the rater2s sa# le o! ratee +eha0iour' the higher the rater2s a+ility to assign accurate er!or#ance ratings. -. 4ater a+ility is higher when the rater understands the lin,age +etween the ratee2s $o+ +eha0iour and organisational outco#es than when he or she does not understand the lin,ages. G. 4ater a+ility is higher when the rater2s consideration o! ratees as indi0iduals. ersonal style stresses goal attain#ent !or ratees rather than er!or#ance a raisal ha0e higher a+ility to assign

7. 4aters trained in the rinci les and ro+le#s o! accurate er!or#ance ratings than untrained raters.

). 4ater training #ethods that stress acti0e learning result in higher rater a+ility to rate er!or#ance accurately than training #ethods that stress assi0e learning.

Availability of Appropriate Rating #tandards


1. %he higher the corres ondence +etween $o+ conte"t and the rating standard used +y the rater' the #ore accurate is the er!or#ance rating o+tained. ?. %he #ore the di!!erences in atterns o! ratee $o+ +eha0iour are incor orated into the rating standards used +y a rater' the #ore accurate the er!or#ance ratings assigned +y the rater. @. 4egardless o! rater2s se"' !e#ales tend to +e rated lower than #ales er!or#ing si#ilar tas,s. A. 1hen rater and ratee are o! the sa#e race' the ratee will +e assigned higher ratings than when the rater and the ratee are !ro# di!!erent races. -. %he higher the corres ondence +etween the content o! a that accurate er!or#ance rating would result. raisal and $o+ content' the higher the li,elihood

G. %he higher the corres ondence +etween er!or#ance a raisal rocedures and the do#inant organisational hiloso hy' the #ore li,ely er!or#ance will +e a raised accurately. 7. %he #ore li,ely it is that the rater will +e held accounta+le !or the ratings he or she assigns' the #ore accurate will +e the a raisal ratings. @G

/eld#an =1*)1> has descri+ed in detail the 0arious cogniti0e rocesses that in!luence the a raisal rocesses. 3erson erce tion' the +asis o! er!or#ance e0aluation' is conce tualised as a dual( rocess syste#. 3ersons assign ersons to categories. 2%hese categories are !uKKy sets' de!ined +y !a#ily rese#+lances a#ong their #e#+ers and e"e# li!ied +y category rototy es or i#ages. Sti#ulus ersons #ay +e assigned to categories auto#atically' +y 0irtue o! their ossession o! o+0ious or salient attri+utes6 the s eci!ic categories to which they are assigned is a !unction o! ercei0er and situational !actors =e.g.' ersonal constructs and conte"tual salience>2 = . 1@A>. %his auto#atic rocess #ay +e su erseded +y a controlled' or consciously #onitored rocess' when no salient category ro0ides a satis!actory !it or in!or#ation discre ant with initial categorisation is o+tained. 2Bategorisation a!!ects er!or#ance e0aluation +y li#iting and selecting in!or#ation a+out the e# loyee when #e#ory(+ased $udge#ents are #ade and +y in!luencing sti#ulus(+ased $udge#ents through the o eration o! attri+utional +ias2 = . 1@->. 1hen e# loyees are e0aluated in!or#ation has to +e retrie0ed !ro# #e#ory.24ecent research has shown that #e#ories a+out eo le =e"ce t !or their 0ery recent +eha0iour> are +iased toward the rototy es re resenting the categories to which they ha0e +een assigned. Dis ositional !actors in the ercei0er and situational in!luences render certain categories #ore salient than others and certain #e#ories =and rototy e(generated !alse #e#ories> #ore a0aila+le than others. Cia the o eration o! re resentati0eness and a0aila+ility heuristics in $udge#ent' these !urther +ias the rediction o! !uture +eha0iour. See,ing !urther in!or#ation to i# ro0e e0aluation is an inherently +iased rocess' !or eo le2s in!or#ation( gathering strategies selecti0ely attend to su orti0e in!or#ation and elicit hy othesis(con!ir#ing +eha0iour2 = . 1@)>. On the +asis o! his analysis o! cogniti0e rocesses and in!or#ation rocessing e!!ects on assess#ent' /eld#an =1*)1> suggests the !ollowing i# lications !or users o! a raisals. 1. er!or#ance

B<4S and +eha0iour o+ser0ation scales #ay +e seen as an atte# t to de!ine a #ore 0alid rototy e o! the success!ul(unsuccess!ul e# loyee. %raining in the use o! such scale is an atte# t to teach co##on rototy es to a set o! raters to i# ro0e 0alidity. Multi le e0aluations o! a raisees #ay hel o0erco#e idiosyncratic +iases' o! any one erson2s category syste#' although co##on rototy es #ay still retain so#e +iases. %he use o! hard criteria should +e encouraged in er!or#ance assess#ent =a+senteeis#' unctuality' $o+ sa# les' etc.' where0er a ro riate>. ;0aluators should +e trained to #a,e +eha0iour sa# ling a routine art o! their $o+ to circu#0ent #e#ory( +iases. %he use o! trait ratings should +e discouraged.

?. @. A. -.

Bogniti0e co# le"ity is another 0aria+le that has +een ro osed as a!!ecting accuracy o! a raisal ratings( Bogniti0e co# le"ity was de!ined +y Schneier =1*77> as 2the degree to which a erson ossesses the a+ility to ercei0e +eha0iour in a #ultidi#ensional #anner2 = . -A1P. Bogniti0ely co# le" eo le ha0e a highly di!!erentiated syste# o! di#ensions !or ercei0ing the +eha0iour o! others as co# ared to cogniti0ely si# le eo le. =1*77> study su orted a cogniti0e co# ati+ility theory o! er!or#ance a raisal that co# ati+ility o! rater cogniti0e structure with the cogniti0e de#ands #ade +y the rating !or#at is crucial !or :uality ratings. Schneier !ound that cogniti0ely co# le" raters were #ore con!ident in their ratings with B<4S' #ade less leniency and restriction o! range errors' and showed less halo e!!ect as co# ared with cogniti0ely si# le raters. Su+se:uently' !i0e e# irical in0estigations were carried out and no su ort has +een !ound to this cogniti0ely a ealing theory o! cogniti0e co# ati+ility =Bernardin et al. 1*)?>. /our e" eri#ents conducted recently +y Bernardin et al. =1*)?> also !ailed to su ort this theory. %here are so#e interesting research !indings !ro# attri+ution research that see# to ha0e i# lications !or er!or#ance analysis and' through it' !or rating +eha0iour. 1hen a su er0isor attri+utes oor er!or#ance o! his su+ordinate to indi0idual !actors =internal> rather than to e"ternal =en0iron#ental or tas, related> !actors' he is li,ely to gi0e oor ratings or show a higher uniti0e res onse to his su+ordinate. < su er0isor is #ore li,ely to +la#e a su+ordinate !or the oor er!or#ance than the en0iron#ent +ecause an en0iron#ental attri+ution #ight suggest that oor su er0ision was in0ol0ed. 5i nis =1*7?> de#onstrated that su er0isors ga0e #ore internal attri+utions !or su+ordinate !ailure than !or su+ordinate success. Studies show that e"ternal attri+utions are #ore li,ely when the en0iron#ent is #ade #ore salient than when the en0iron#ent is not salient =Mc<rthur and 3ost' 1*77>. Mitchell and 5al+ =1*)?> in an e" eri#ental study su orted su+se:uently a !ield study which de#onstrated that e" erience on the tas, #ay #a,e the su er0isors #ore aware o! the e"ternal causes o! oor er!or#ance such as a disru ti0e en0iron#ent. %he i# lication is that ine" erienced su er0isors should ay #ore attention and chec, their tendencies to attri+ute !ailure o! their su+ordinates only to internal !actors and there+y i# ro0e the :uality o! @7

their ratings. <nother !actor that in!luences the rater2s +iases is his own ina+ility to di!!erentiate er!or#ance in uts o! the a raisee =e!!ort> !ro# the er!or#ance outco#es =results>. 1hile e!!ort and a+ility are attri+uta+le to the a raisee results or outco#es' they are a conse:uence o! interactions +etween indi0idual and en0iron#ental !actors. Most o!ten a raisers tend to assess their su+ordinates on the +asis o! outco#es and articularly when the outco#es are oor they tend to rate the 2in uts2 also as oor. In an e" eri#ental study +y Mitchell and 5al+ =1*)?>' su er0isors with and without ,nowledge o! outco#es o! their su+ordinates2 +eha0iour were studied !or their attri+ution tendencies. %hose with outco#e ,nowledge tended to attri+ute negati0e outco#es #ore to their su+ordinates. < raisers there!ore should +eco#e aware o! these tendencies and !ocus #ore on the +eha0iour o! their su+ordinates rather than on outco#es o! their actions.

(educing (ater Aiases


%he a+o0e theoretical considerations +ring out the co# le"ity o! the a raisal rocess. <s stated earlier' as long as hu#an +eings are going to assess other hu#an +eings there is +ound to +e a certain a#ount o! su+$ecti0ity. One way o! reducing this is +y #a,ing the assessors #ore aware o! the dyna#ic !actors a!!ecting their erce tions and e0aluations o! their su+ordinates. %his can +e done through rater training' rater artici ation in the construction o! rating scales and the use o! so#e statistical #ethods. So#e research e0idence is a0aila+le on these as ects.

Rater Training
5ater training has generally been shown to be effective in reducing errors, especially if the training is extensive and allows practice (Landy and +arr, 69:;< ,earney, 690:< and !ecotiis and Petit, 690: . Hyde and S#ith =1*)?> ha0e ointed out what training can do and what it cannot to re#edy the 0arious ro+le#s associated with er!or#ance a raisal. %hey hy othesise that 2training2 can ha0e a 0ery #ini#al i# act on the #oti0ation a#ong raters and ratees as this is a +eha0ioural ro+le# and not a s,ill de!iciency. %raining o! a raisers also has 0ery little i# act on 2ti#e delays in !eed+ac,2 as this is essentially a syste# ro+le#. %raining also has 0ery little i# act on sol0ing a raisal ro+le#s arising due to tas,(interde endence' o+ser0a+ility or tas, er!or#ance' structure o! authority syste#' ower di!!erential and nature o! co##unicated a raisals +ecause these are all co# le" interrelated organisational ro+le#s that #ust +e con!ronted +e!ore any a raisal can +e de0elo ed. %raining has so#e i# act on hel ing a raisers to co# rehend the con!licting o+$ecti0es o! a raisals =e.g.' de0elo #ent and control at the sa#e ti#e> and #eet the re:uire#ents. %raining has the highest otential !or e!!ecti0e change in reducing su+$ecti0e errors in e0aluation li,e halo e!!ect' olarity' central tendency' etc. Hyde and S#ith =1*)?> suggested a !our( hased(training !or e!!ecti0e introduction o! the a raisal syste#. 3hase 1. 5nowledge resentation 3hase ?. <nalysis and e0aluation #ethods and errors 3hase @. 3ractice e0aluating er!or#ance 3hase A. ;0aluation o! training. (ater Participation in %cale Construction <nother #ethod used in reducing rating errors is +y artici ation o! the raters in scale construction. ;# irical studies indicate that when raters artici ate totally in constructing the scales they use' it is li,ely to reduce rating errors =/ried#an and Bornelius' 1*7G6 and 1ar#,e and Billings' 1*7*>. /ried#an and Bornelius =1*7G> !ound that !ull artici ation in scale construction signi!icantly reduced the halo and increased con0ergent 0alidity a#ong 4eser0e O!!icer %raining Bor s Badet2s ratings o! instructors. %his study showed that the e!!ect held across scale !or#ats =B<4S and gra hic scales> and construction o! one scale also reduced errors on another un!a#iliar scale. 1ar#,e and Billings =1*7*> indicate !ro# their study that e0en a short two(hour ti#e in0est#ent re:uired !or scale de0elo #ent can increase scale acce tance and reduce rating errors. %tatistical Control of (ating #rrors 1ith inconsistencies in research !indings on the e!!ecti0eness o! B<4S in reducing rating errors' atte# ts ha0e +een #ade +y so#e researchers to statistically control the2halo e!!ect2 and 2such other errors. HolK+ach =1*7)> resented a logical +asis !or using artial correlations as #ethods !or reducing halo errors. His suggestion is +ased on the assu# tion that raters are una+le to #a,e ratings on indi0idual er!or#ance di#ensions that are inde endent o! their o0erall e0aluation o! the ratee. %here!ore' it is ossi+le to re#o0e the halo co# onent !ro# @)

the di#ension ratings +y statistically eli#inating the 0ariance in co##on +etween the di#ensions and o0erall ratings. HolK+ach =1*7)> re orted stri,ing reductions in the #ean di#ensional intercorrelations a!ter re#o0ing the e!!ect o! o0erall rating. &andy et al. =1*)7> !ound su ort !or the e!!ecti0eness o! artialing. Har0ey =1*)?> e"a#ined this ractice +y :uestioning the lac, o! e# irical +ase !or the causal assu# tions #ade on halo e!!ect as well +y e# irically de#onstrating that a re(analysis o! data used +y &andy et al. =1*)7> indicates that the e!!ecti0eness artialing out #ay +e an arti!act. 4esearchers in this area do not see# to ha0e tried out statistical !eed+ac, to raters as a #echanis# o! reducing rater +iases. I! +iases ta,e lace in the #inds o! raters it is !utile to loo, !or corrections through statistical controls. Statistical controls can at the #ost gi0e te# orary reductions and that too to a :uestiona+le degree as indicated a+o0e. Statistical !eed+ac, to raters can +e a otential way to reduce errors and +ring a+out so#e co##on !ra#es o! re!erence a#ong di!!erent raters. Such a rater !eed+ac, in0ol0es the !ollowing analysis to +e done +y the ersonnel and H4D de art#ents and !ed +ac, to the raters. 1. %rends o! a raisal ratings o! e0ery a raiser o0er a eriod o! ti#e. Data li,e the !ollowing ones ha0e to +e co# iled' analysed and !ed +ac,. i. Nu#+er o! ratees rated +y the a raiser in the last !ew years =a three(year eriod is #ini#u#>. ii. =+> Di#ension(wise analysis o! er!or#ance rating assigned +y hi# to all the a raisees rated +y hi# =e.g.' !re:uency and ercentage o! ti#es the rating o! 2!i0e2 was assigned on Initiati0e or !re:uency and ercentage o! ti#es a rating o! 2three2 was assigned on 2initiati0e2' etc.>. %hese #ay +e !urther analysed !or each category o! ratees =secretarial sta!!' su er0isors' assistant #anagers' etc.> i! the rater is the re orting o!!icer !or a 0ariety o! the#. Since 53<s #ay not +e co##on to all the a raisees all 53<s #ay +e treated as e:ual and co#+ined !or such calculations. iii. Di#ension(wise a0erage =or er 53< a0erage> and standard de0iation o! the ratings assigned to all the a raisees rated +y hi#. ?. %rends o! a raisal ratings gi0en +y eer a raisers =si#ilar ran,' osition' role incu#+ency' etc.> to their su+ordinates =with or without #entioning their na#es>. Si#ilar analysis li,e in Ste 1 a+o0e should +e resented to ena+le the rater to co# are i! he has +een a lenient rater or a strict rater. @. Bo# any(wise trends =!re:uencies' ercentages'#eans and standard de0iations> o! a raisal ratings o0er the last !ew years on each di#ension. %he data hel s the a raiser to see his own rating +eha0iour 0is(a(0is others in the co# any and accordingly #odi!y' i! needed. Discussions can +e organised +etween the raters and the ratees around these data so that they #ay +ene!it !ro# each other.

Performance (atings for 'e4elopment >s Administrati4e 'ecisions


%he er!or#ance a raisal syste# should ha0e the assess#ent o! #anagerial and +eha0ioural ca a+ilities as an integral art o! it. In a de0elo #ent(oriented a raisal syste# er!or#ance ratings are not ends in the#sel0es. %hey are one o! the instru#ents that aid the rocess o! de0elo #ent. Hence these di#ensions should +e identi!ied and incor orated in the a raisal !or# with a 0iew to generate data !or de0elo #ent ur oses. < list o! such di#ensions ta,en !ro# the a raisal !or#ats used +y di!!erent organisations in India are resented in < endi" -.1. Su+$ecti0ity is a art o! de0elo #ent and e"ecuti0es need not +e o0er concerned a+out generating o+$ecti0e data. %he concern should +e #ore on generating and including the #ost a ro riate di#ensions that are i# ortant !or er!or#ing well the e"isting $o+s as well as !or de0elo ing their otential !or !uture roles. 4ating scales li,e B<4S are use!ul to the e"tent they ro0ide clarity on the +eha0iours associated with the di!!erent di#ensions. I! such scales can +e de0elo ed co# li#enting the de0elo #ent o+$ecti0es' it should +e encouraged. In0ol0ing the e"ecuti0es in de0elo ing such scales' #a,ing the a raisers share their e" ectations with a raisees at the start o! the year' training the# and gi0ing eriodic statistical !eed+ac, a+out their rating +eha0iour #ay ta,e care o! so#e +iases. It is necessary to se arate a raisal ratings !or de0elo #ent ur oses !ro# those !or reward ur oses. In the de0elo #ent(oriented a raisal er!or#ance standards are decided +etween the a raiser and the a raisee in the +eginning o! the year and #ay di!!er !ro# a raisee to a raisee. /or reward ad#inistration' ro#otions and other ad#inistrati0e ur oses' a raisal ratings +ased on co##on er!or#ance standards =co##on at least to a raisees o! the sa#e le0el in the #anagerial hierarchy> are re:uired. Here the a raiser co# ares =and e0en unconsciously ran,s> the su+ordinates he is a raising and then rates the#. O+$ecti0ity +eco#es #ore i# ortant !or such ur oses and gi0en our culture we #ay not +e a+le to do away with con!identiality !or so#e #ore ti#e. ;0en i! the e# loyees are con!identially rated on a !ew di#ensions !or ad#inistrati0e decisions.+iases are li,ely to +e less i! such ratings are gi0en a!ter assess#ent is #ade !or de0elo #ent ur oses. Using de0elo #ent(oriented a raisal syste#s is li,ely to #a,e a0aila+le to the a raiser a lot o! @*

er!or#ance in!or#ation and thus reduce his +iases. 3artici ation in a de0elo #ent(oriented a raisal syste# #ay i# ro0e the cogniti0e co# le"ity o! the a raisers as well as a raisees and #ay hel reduce +iases. It #ay also hel e"ecuti0es de0elo cogniti0e !le"i+ility in categorising e# loyees +y #a,ing a0aila+le a large nu#+er o! sche#ata on the +asis o! in!or#ation a0aila+le to the a raiser. Since the counselling rocess =discussed in the ne"t cha ter> strengthens the dyadic relationshi +etween the a raiser and the a raisee and generates trust' +iases #ay +e !urther reduced. Howe0er' when two di!!erent a raisal !or#ats are used se arately !or de0elo #ent and ad#inistrati0e ur oses' there is a ossi+ility o! a raisers assigning di!!erent ratings !or the sa#e indi0idual in the two !or#s. < raisees should +e hel ed to co# rehend this di!!erence due to 0arying er!or#ance standards +eing used !or the two a raisals.

Appendi$ "/1
&ist o! Managerial and Beha0ioural Di#ensions +eing used +y Di!!erent Organisations in their 3er!or#ance < raisal I. ?. @. A. -. G. 7. ). *. 17. 11. 1?. 1@. 1A. 1-. 1G. 3lanning a+ility Organising a+ility Bo(ordination Su er0ision &eadershi and dyna#is# Initiati0e 4esource!ulness =oral and written> Breati0ity and i#aginati0eness De0elo #ent o! su+ordinates Bontri+ution to tea# s irit <nalytical a+ilities Delegation 3u+lic relations Socia+ility Sel!(con!idence Decision (#a,ing 17. 1). 1*. ?7. ?1. ??. ?@. ?A. ?-. ?G. ?7. ?). ?*. @7. @1. Boo erati0eness /le"i+ility 3ro+le#(sol0ing 4is,(ta,ing <+ility to #oti0ate su+ordinates Bon!lict #anage#ent Bo##unication s,ills 3erse0erance Hard wor, Integrity Dri0e ;# athy <sserti0eness Originality Data #anage#ent su+ordinates

=/or a detailed descri tion o! so#e o! these di#ensions identi!ied through a syste#atic study o! critical attri+utes in &arsen J %ou+ro &i#ited' see U. 3aree, and %.C. 4ao' Designing and Managing Hu#an 4esource Syste#s' New Delhi' O"!ord J IBH' 1*)1' . G@(7@>. Performance (e4ie= 'iscussion 3er!or#ance re0iew discussion =34D> is a su+stitute na#e !or what used to +e re!erred to earlier as er!or#ance counselling or coaching. %he ter# er!or#ance counselling is :uite o!ten #isunderstood and wrongly inter reted as a rocess o! the +oss correcting or controlling e# loyee +eha0iour +y gi0ing hi# negati0e !eed+ac, in an asserti0e #anner' 1hen e# loyees #a,e #ista,es or +eco#e un#anagea+le or non(coo erati0e' e"ecuti0es o!ten say that they need counselling. So#e #anagers also are ,nown to #a,e state#ents li,e 2I called hi# !or counselling and ga0e hi# a iece o! #y #ind2 or 2In the counselling' I told hi# clearly that I a# not going to tolerate his +eha0iour any #ore2' or 2I called hi# !or counselling and !inished hi# o!!2' etc. Un!ortunately' due to the #isuse o! the ter# 2counselling2'(it has ac:uired negati0e connotations in the #inds o! #ost #anagers' %hey con!use counselling as e:ui0alent to Cer+al threats2' 2criticis#2 and 2negati0e !eed+ac,2. <ctually' such +eha0iour re0ents counselling. < second reason why counselling has ac:uired a negati0e i#age in the #inds o! e# loyees is +ecause it is o!ten e:uated with clinical counselling and sychothera y which are #ore o!ten associated with ro+le# cases. In !act' a #a$or di!!erence +etween clinical counselling and er!or#ance counselling is recisely that. 3er!or#ance counselling is nor#ally done in the regular course o! er!or#ance and not only in the !ace o! ro+le#s. 3er!or#ance re0iew discussion =34D> is re!erred in lace o! er!or#ance counselling in 0iew o! these di!!iculties. 34D is a neutral ter# and connotes a !or#al discussion +etween the a raiser and a raisee on the latter2s dyadic er!or#ance !or a gi0en eriod o! ti#e to identi!y the !actors that ha0e ositi0ely or negati0ely a!!ected their er!or#ance and to re are action lans to i# ro0e their er!or#ance using the er!or#ance e:uation. It is a syste#atic re0iew o! er!or#ance o! the a raisee and a raiser. Howe0er' the !ocus o! the 34D is on the A7

a raisee and it !ocuses on the a raiser only to the e"tent that the a su ort gi0en' guidance etc.> has i# acted the a raisee.

raiser2s own

er!or#ance =styles'

1hen there are day(to(day er!or#ance related ro+le#s' e"ecuti0es should resort to a ro riate #ethods o! sol0ing the# rather than to 34D. %his is +ecause e"clusi0e !ocus on a articular ro+le# or issue #ay re0ent 34D. 1hile s eci!ic ro+le#s #ay +e discussed during 34D as a art o! analysing and understanding er!or#ance atterns' the #ain !ocus is on the entire er!or#ance =tas,s and +eha0iour> during a articular eriod. Howe0er' in clinical counselling' the client !acing a ro+le# goes to a thera ist !or hel at his own initiati0e and' there!ore' has a high #oti0ation to sol0e his ro+le#s and i# ro0e his ca a+ilities to deal with his en0iron#ent. In 34D' the a raiser initiates the discussion as a art o! an a raisal syste# or as a art o! so#e rocesses that ta,e lace in the organisation. %he onus o! #a,ing the 34D success!ul rests $ointly on the a raiser and the a raisee' although the a raiser has a #a$or res onsi+ility +y 0irtue o! his osition in the organisational hierarchy. It is this that #a,es 34D co# le". %he a raiser' who is at a higher status le0el' has to carry on the tas, o! hel ing his su+ordinate +y creating an at#os here o! acce tance. %hus' unli,e clinical counselling' in 34D the a raiser has an additional tas, o! #oti0ating the a raisee to artici ate e!!ecti0ely in the 34D rocess. In addition' while continuing to e"ercise his authority as a +oss outside the 34D session' he should generate a cli#ate o! acce tance' #utuality' trust and o enness during 34D. 4ecognition o! this co# le"ity is essential !or the success!ul i# le#entation o! 34D. /ailure to recognise this o!ten leads #anagers to oint out inconsistencies in their +osses +y state#ents li,e.2He was nice during 34D and out o! it he is 0ery hard on #e2. 34D is a se arate e0ent and certainly should lead to #ore understanding +ut need not result in 2lenience2 or 2so!tness2 in dealing with eo le. 1hile 34D should ta,e lace at least once a year as an integral art o! the er!or#ance and a raisal syste#s outlined in this +oo,' it could +e carried out #ore !re:uently +y #anagers. It is ad0isa+le to ha0e 34D discussions !re:uently de ending on the needs o! each a raisee and the ti#e a0aila+ility o! the a raiser. In !act' the #ore attention a #anager ays to 34D' the #ore ti#e he is li,ely to gain in the long run as a result o! i# ro0ed ca a+ilities o! his su+ordinates. <ny organisation interested in using a good er!or#ance a raisal and ( re0iew syste# ai#ed at de0elo ing e# loyees' has to ractice and ay 2enough attention to 34D. 3er!or#ance a raisal does not ser0e the ur ose o! de0elo ing e# loyees unless an e!!ecti0e syste# o! 34D is introduced and ractised in the organisation. 34D can +e de!ined as the hel ro0ided +y a #anager to his su+ordinates in analysing their er!or#ance and other $o+ +eha0iour in order to increase their $o+ e!!ecti0eness. 34D essentially !ocuses on the analysis o! er!or#ance on the $o+' and identi!ication o! training needs !or !urther i# ro0e#ent. 34D is a dyadic rocess. It is +ased on the relation +etween two ersons' a #anager who is ro0iding hel E34D and an e# loyee to who# such hel is gi0en or who is an a raisee. It di!!ers !ro# training #ainly in its intensity o! dyadic relationshi and its !ocus on esta+lishing #utuality and con!identiality. Managers ro0ide such hel or 34D at 0arious stages. /or e"a# le' an e# loyee #ay +e ro0ided ersonal hel soon a!ter his selection or when he is !acing di!!iculties or ro+le#s. %he !ocus o! 34D is the e# loyee2s er!or#ance on the tas, assigned to hi#. 34D so#eti#es is also called 2coaching2' #ainly +ecause the ur ose o! 34D is to i# ro0e the er!or#ance o! the e# loyee. <lthough the word 2coaching2 is widely used !or this ur ose' the ter# 34D is #ore neutral and a #uch wider and a ro riate ter# !or such a rocess. ).5ecti4es of P(' 34D ai#s at de0elo #ent o! the a raisee as well as the a raiser. Howe0er' it !ocuses #ore on the a raisee. It in0ol0es the !ollowing. 1. Hel ing hi# to realise his otential as a #anager or a leader etc. ?. Hel ing hi# to understand hi#sel!Hhis strengths and his wea,nesses. @. 3ro0iding hi# an o ortunity to ac:uire #ore insight into his +eha0iour and analyse the dyna#ics o! such +eha0iour. A. Hel ing hi# to ha0e +etter understanding o! the en0iron#ent. -. Increasing his ersonal and inter( ersonal e!!ecti0eness +y gi0ing hi# !eed+ac, a+out his +eha0iour and assisting hi# in analysing his inter( ersonal co# etence. G. ;ncouraging hi# to set goals !or !urther i# ro0e#ent. 7. ;ncouraging hi# to generate alternati0es !or dealing with 0arious ro+le#s. ). Breating an e# athic at#os here to share and discuss his tensions' con!licts' concerns and ro+le#s. *. Hel ing hi# to de0elo 0arious action lans !or !urther i# ro0e#ent. 17. Hel ing hi# to re0iew in a non(threatening way his rogress in achie0ing 0arious o+$ecti0es.

A1

It also hel s the a raiser to ,now #ore a+out the a raisee' the conditions =tas, clarity' a+ility' #oti0ation' organisational su ort etc.>' a!!ecting his er!or#ance' his co# etencies and li#itations. It also ena+les hi# to in!luence the a raisee in ter#s o! o ortunities to #a,e an i# act and ro0e hi#sel!.

Conditions for #ffecti4e P('


34D is a #eans and not an end in itsel!. 3er!or#ance i# ro0e#ents and de0elo #ent does not occur $ust +ecause there is 34D which could +e an e!!ecti0e instru#ent in hel ing eo le integrate with their organisation and ha0e a sense o! in0ol0e#ent and satis!action. %he !ollowing conditions are necessary !or 34D to +e e!!ecti0e. 1. General cli#ate o! o enness and #utuality. I! the organisation or de art#ent in which the e# loyee is wor,ing is !ull o! tension' and eo le do not trust each other' 34D cannot +e e!!ecti0e. < cli#ate o! #ini#u# trust and o enness is essential !or e!!ecti0e 34D. ?. General hel !ul and e# athic attitude o! #anage#ent. 34D in0ol0es e!!ecti0e hel ing which is not ossi+le unless the a raiser has a hel ing attitude and has e# athy !or the a raisee. @. Sense o! uninhi+ited artici ation +y the su+ordinates in the er!or#ance re0iew rocess. Unless the su+ordinates in a de art#ent or organisation !eel !ree enough to artici ate without inhi+ition in the rocess o! re0iew and !eed+ac,' 34D cannot +e e!!ecti0e. 34D is not a one(way rocess o! co##unicating to the e# loyee what he should or should not do. It is a rocess o! de0elo ing dialogue which e0entually contri+utes to +etter understanding on the art o! a raisee. A. Dialogic relationshi in goal setting and er!or#ance re0iew. 34D !ocuses on the < raisee2s achie0e#ent o! the er!or#ance goals he had set in consultation with his #anager. Ioint artici ation +y the e# loyee and his re orting o!!icer are necessary +oth in goal setting as well as in the er!or#ance re0iew. 1ithout such a colla+orati0e e!!ort' 34D does not achie0e its ur ose. -. /ocus on wor,(oriented +eha0iour. %he #ain ur ose o! 34D is to hel the e# loyee in i# ro0ing his er!or#ance. 34D can +e e!!ecti0e i! the !ocus is ,e t on the wor,(related goals rather than di!!using attention into 0arious other areas. 1hile doing so' discussion #ay in0ol0e other related and ersonal issues' +ut these are used to re!ocus on i# ro0e#ent o! organisational roles rather than on ersonal or general ersonality ro+le#s. G. /ocus on wor,(related ro+le#s and di!!iculties. 34D is not related only to the achie0e#ent o! goals' +ut also to the conte"tual ro+le#s in achie0ing or not achie0ing the goals. <nalysis o! er!or#ance' there!ore' +eco#es the +asis o! 34D. Details o! er!or#ance re0iew and analysis are discussed in 4ao and 3aree, =1*7)>. 7. <0oidance o! discussion o! salary and other rewards. 34D #ay not ser0e its ur ose i! it includes discussion a+out a salary raise and rewards. %he #ain ur ose o! 34D is to use er!or#ance a raisal in lanning and i# ro0e#ent o! the e# loyee' rather than understanding relationshi +etween er!or#ance and reward. Bringing such a discussion into the 34D #ay 0itiate its #ain ur ose.

What Constitutes P('&


34D is gi0en +y one who is senior to the other ersonHin co# etence' or ,nowledge' or sychological e" ertise' or in the hierarchical osition in the organisation. %here SareS three #ain rocesses in0ol0ed in 34D H co##unication' in!luencing' and hel ing. %he a raiser essentially co##unicates with the < raisee. Bo##unication in0ol0es +oth recei0ing #essages =listening>' gi0ing #essages =res onding>' and gi0ing !eed+ac,. %he erson who ro0ides 34D does all the three things. 34D also in0ol0es in!luencing the a raisee in se0eral ways. %he #anager cannot esca e the !act that he is in!luencing his e# loyee in such a way that the latter is a+le to #o0e in so#e direction. Howe0er' this in!luence is o! a s ecial ty e' ena+ling the other erson to e"ercise greater autono#y' ro0iding ositi0e rein!orce#ent so that desira+le +eha0iour is !urther strengthened' and creating conditions in which the erson is a+le to learn !ro# the +eha0iour o! the a raiser through the rocess o! identi!ication. %he third ele#ent in the rocessHhel ingHalso !unctions in a si#ilar way. It in0ol0es three di!!erent ele#ents. Hel ing +eha0iour is +ased on concern and e# athy the a raiser has !or the a raisee. It is also +ased on #utuality o! relationshi . %he a raisee res onds as #uch to the a raiser2s needs as the !or#er does to the latter2s. <nd !inally' hel ing ri#arily in0ol0es identi!ication o! de0elo #ental needs o! the a raisee so that he #ay +e a+le to de0elo and increase his e!!ecti0eness. %his dyna#ic rocess o! 34D is shown in /igure G.1. %he 0arious ele#ents o! the rocess will +e e" lained in #ore detail.

I/ Communication
Inter( ersonal co##unication is the +asis o! er!or#ance re0iew in which +oth the e# loyee and his re orting o!!icer are in0ol0ed. %he general cli#ate o! such con0ersation in er!or#ance re0iew should +e congenial which #ay hel the e# loyee to +e in a rece ti0e #ood. It is i# ortant to ,ee in #ind that co##unication is greatly A?

in!luenced +y how ro+le#s and issues are ercei0ed +y the two ersons in0ol0ed in the con0ersation. Bo##unication #ay get distorted i! eo le are not e# athic to each other and do not try to understand each others2 oint o! 0iew. Non(0er+al co##unication is as i# ortant as 0er+al co##unication. 3eo le s ea, #uch #ore through their gestures than through words. %he tone and #anner o! s ea,ing is also i# ortant. *ig/ "/1: The Process of P('

%here are three #ain ele#ents in co##unication.

Listening
&istening is the !irst e!!ecti0e ste in co##unication. It in0ol0es aying attention to the 0arious #essages +eing sent +y the other erson. %he o+0ious #essage is the ideas +eing co##unicated =cogniti0e #essage>. But the hidden #essage #ay +e the !eelings and the concerns the other erson #ay not +e a+le to ut clearly in words. &istening to !eelings and concerns is 0ery i# ortant !or e!!ecti0e 34D. %his in0ol0es s,ills which can +e ractised. So#e e"ercises can +e used to i# ro0e listening o! such hidden #essages =see 4ao and 3aree,' 1*7)>.

Asking Cuestions and (esponding


Duestions can !acilitate or hinder the rocess o! co##unication. Duestions can ser0e se0eral ur oses. they can hel in getting #ore in!or#ation' esta+lishing #utuality' clari!ying #atters and sti#ulating thin,ing. In a 34D situation' :uestions lay a 0ery i# ortant role. So#e :uestions can shut o!! the a raisee' or #a,e hi# de endent on the a raiser. <nother set o! :uestions can +uild autono#y o! the a raisee. O+0iously' the latter will +e hel !ul' and not the !or#er.

Cuestions that do not help


%he !ollowing ty es o! :uestions are not only not hel !ul' +ut they also hinder the rocess o! e!!ecti0e 34D. Britical :uestions. Duestions which are used to criticise' re ri#and or dou+t the a raisee create a ga +etween hi# and the a raiser. %he way the :uestion is as,ed =tone or sarcas#> #ay indicate that the :uestion is a critical one. A@

%he choice o! words #ay also indicate the critical nature o! the :uestion. 21hy did you !ail to achie0e your targets92 co##unicates criticis#' whereas 21hy could you not attain your targets92 would nor#ally co##unicate an in0itation to e"a#ine the hindering !actors.2How did you again !all short o! your target92 is a re ri#anding :uestion.2How can you achie0e this target6 you !ailed last ti#e92 indicates dou+ts in the a+ility o! the a raisee. <ll such critical :uestions either shut o!! the a raisee' or #a,e hi# di!!ident. %esting :uestions. Duestions that are as,ed to deter#ine whether a erson is right or wrong or how #uch he ,nows are e0aluating or testing :uestions. Such :uestions #ay tend to #a,e the other erson de!ensi0e. In a testing :uestion' the erson who is as,ing the :uestion ta,es a su erior attitude' and the other erson is ut in a ,ind o! witness +o". Such :uestions #ay also ta,e the !or# o! cross(e"a#ination. < re orting o!!icer who ro oses to !ind out why his e# loyee was not a+le to #eet his target can easily sli into a cross(e"a#ination' testing or e0aluating #ode. <gain' the tone o! the inter0iewer #ay deter#ine whether the :uestion is as,ed as a testing :uestion. Such :uestions are so#eti#es si#ilar to critical :uestions. 4esenting :uestions. < erson #ay as, :uestions to indicate his resent#ent o0er the +eha0iour o! the other erson. 1hen an e# loyee in a 34D situation as,s.2How should I attain a higher target92 it #ay indicate his resent#ent' de ending on the tone in which such a :uestion is as,ed. &eading :uestions. Duite o!ten' unwittingly' we as, :uestions that indicate what ,ind o! answers we want in return. Such a :uestion #ay +e as,ed a!ter #a,ing a state#ent. /or e"a# le' a re orting o!!icer #ay say to his e# loyee. 28ou could not attain the target +ecause the #aintenance de art#ent did not co(o erate. Is that true92' or it #ay +e ut in the :uestion .!or#. 21ere you not a+le to attain the target +ecause the #aintenance de art#ent did not co( o erate92 Both are leading :uestions. < leading :uestion al#ost seduces the other erson to go along the line o! thin,ing o! the one who uts the :uestion. %his tends to sto !urther e" loration and is not hel !ul.

Cuestions that are helpful


%he !ollowing ty es o! :uestions #ay +e hel !ul in de0elo ing a #ore healthy relationshi and in increasing the e!!ecti0eness o! the other erson. %esting :uestions. Duestions that are as,ed to indicate that the :uestioner is see,ing hel or suggestions #ay indicate the trust he has in the other erson. %he :uestion 2How do you thin, I can deal with the ro+le# I a# !acing92 is see,ing hel !ro# the other erson. Such :uestions #ay +e as,ed +oth +y the e# loyee and the su er0isor. Blari!ying :uestions. Duestions #ay +e as,ed to collect in!or#ation' #ore !acts and !igures. Such :uestions are 0ery hel !ul. I! an a raiser as,s his e# loyee se0eral :uestions to o+tain #ore in!or#ation a+out 0arious as ects' he would hel hi# in ha0ing rele0ant in!or#ation to understand his ro+le#s. <!ter listening to a erson !or so#e ti#e' the a raiser #ay ara hrase the a raisee2s state#ent =also called 2#irroring2>' then #ay as, a :uestion to con!ir# whether his understanding is correct. /or e"a# le' the :uestion 28ou are worried a+out your lac, o! ,nowledge o! the new syste#. Is that so92 is a clari!ying :uestion. Blari!ying :uestion hel s the #anager and the e# loyee to re#ain at the sa#e le0el throughout the con0ersation. O en :uestions. %he #ost use!ul :uestions are those which sti#ulate re!lection and thin,ing on the art o! the a raisee. 21hy do you thin, we ha0e not achie0ed the targets this year while the other co# any has done so92 is an o en :uestion in0iting the other erson to e" lore the 0arious ossi+le di#ensions' and to share these with the erson who is as,ing such a :uestion. O en :uestions encourage creati0ity' a tendency to e" lore se0eral directions which #ight ha0e +een neglected so !ar. Such :uestions are 0ery use!ul.

(esponding to Cuestions
< raisers so#eti#es use res onses so#e o! which are use!ul and so#e others dys!unctional. So#e a raisers #ay +e using #ore o!ten certain ty es o! res onses than others. It is necessary to +e aware o! these. 4es onses that alienate the e# loyee' criticise hi# or order hi# are #ore li,ely to +e dys!unctional. ;# athetic' su orti0e' and e" loring res onses are #ore !unctional. Carious 0er+al +eha0iours in 34D situation that characterise these res onses are shown in ;"hi+it 7'?.

*eed.ack
Inter( ersonal !eed+ac, is an i# ortant in ut !or increasing sel!(awareness. It hel s in reducing the +lind area o! a erson' hel ing hi# to +eco#e #ore aware a+out his strengths and wea,nesses. I! ro erly used' it results in higher #utuality +etween two ersons. %he rocesses o! inter( ersonal !eed+ac, and conditions which #a,e it e!!ecti0e ha0e +een discussed in detail elsewhere =3aree,' 1*77>. %he !ollowing hints are re roduced !ro# that source. AA

/eed+ac, will +e e!!ecti0e i! the erson who gi0es the !eed+ac, =a raiser> #a,es sure that it is. I. Descri ti0e and not e0aluati0e6 II. /ocused on the +eha0iour o! the erson and not on the erson hi#sel!6 III. Data +ased and s eci!ic and not i# ressionistic6 IC. 4ein!orces ositi0e new +eha0iour6 C. Suggesti0e and not rescri ti0e6 CI. Bontinuous6 CII. Mostly ersonal' gi0ing data !ro# one2s own e" erience6 CIII. Need(+ased and solicited6 IX. Intended to hel 6 X. /ocused on #odi!ia+le +eha0iour6 XI. Satis!ies needs o! +oth the !eed+ac, gi0en and one who recei0es !eed+ac,6 XII. Bhec,ed and 0eri!ied6 XIII. 1ell ti#ed6 and XIC. Bontri+utes to #utuality and +uilding u relationshi .

*ig/ "/2: Appraiser (esponses


$nhelpf!l %ffective and helpf!l <lienating ;# athic Bontinuous stress on con!or#ity &e0elling Not encouraging creati0e acts T 4a ort +uilding 3assi0e listening T Identi!ying !eelings &ac, o! 0er+al res onse Su orti0e Britical T 4ecognising T Briticising T Bo##unicating a0aila+ility T 3ointing inconsistencies T 4e eated #ention o! wea,nesses T Bo##itting su ort %rusting T Belittling ;" loring T 4e ri#anding T Duestions Directi0e T 4e!lecting T 3rescri+ing T Sharing T Ordering T 3ro+ing T %hreatening Blosing T Gi0ing no o tions T Su##arising T 3ointing out only one T Boncluding acce ta+le way T Duoting rules and T Bontracting !or !ollow(u regulations and hel %he erson who recei0es !eed+ac, should +e encouraged to e" lore ways to i# ro0e +eha0iour rather than +e !orced to ado t de!ensi0e +eha0iour. %he !ollowing de!ensi0e +eha0iour #ight not hel in using !eed+ac, ro erly. =i> =ii> =iii> =i0> =0> =0i> =0ii> =0iii> =i"> ="> Denying !eed+ac, as o osed to owning u res onsi+ility !or +eha0iour. 4ationalisation =e" laining away !eed+ac, +y gi0ing reasons> as o osed to sel!(analysis to !ind why such +eha0iour was shown. 3ro$ection =contri+uting negati0e !eelings to the other erson> as o osed to e# athy =trying to understand the oint o! 0iew o! the other erson>' Dis lace#ent =e" ressing negati0e !eelings to one who #ay not !ight +ac,> as o osed to e" loration =ta,ing hel o! the other erson in ,nowing #ore a+out the !eed+ac, which has +een gi0en>' Duic, acce tance without e" loration as o osed to collecting #ore in!or#ation and data to understand the +eha0iour' <ggression towards the erson gi0ing !eed+ac, as o osed to see,ing his hel in understanding the !eed+ac,' Hu#our and wit as o osed to concern !or i# ro0e#ent' Bounter(de endence =re$ecting the authority> as o osed to listening care!ully to the erson gi0ing !eed+ac,' Bynicis# =generally strong sce ticis# that things cannot i# ro0e> as o osed to ositi0e critical attitude to acce t so#e !eed+ac, and :uestion so#e other' Generalisation =e" laining things in a general way> as o osed to e" eri#enting.

A-

II/ Influencing
In!luencing would #ean #a,ing an i# act on the erson in a relationshi . Such an i# act need not necessarily +e restricti0e. In!luencing in e!!ecti0e 34D would in0ol0e three as ects.

Increasing Autonom, of the Person


Usually' in!luencing is understood in the sense o! restricting the autono#y o! the erson and directing hi# into channels which are re(deter#ined +y the erson who is e"erting in!luence. 3ositi0e in!luencing is the o osite6 the autono#y o! the other erson is increased and he has larger sco e o! #a,ing his own choices. ;0en this is in!luencing though o! a di!!erent ,ind. /landers =1*77> #a,es a distinction +etween two #odes o! in!luenceH one called the direct #ode o! in!luence =which restricts the !reedo# o! the other erson>' and the other indirect #ode o! in!luence =which increases the !reedo# o! the other erson>. /landers has de0elo ed so#e categories to indicate the two #odes. He classi!ies criticis# and unish#ent in the !irst category' and encouraging a erson in the second category o! in!luence. %he reason is o+0ious. 1hen a erson is criticised or unished' so#e actions !or which he is criticised or unished are inhi+ited and the erson a0oids those in !uture. %his restricts his !reedo#. On the other hand' i! a erson is raised or recognised' he !eels encouraged to ta,e #ore initiati0e in e" loring new directions. %his increases in his autono#y. 3aree, and 4ao =1*71> ha0e discussed this in detail !ocussing on how teacher education and training strategies can +e re#odelled +ased on so#e research !indings a+out these two ,inds o! +eha0iour. In 34D' #uch #ore use is #ade o! indirect #ode o! in!luence' +y recognising !eelings' e" ressing !eelings' ac,nowledging and raising good ideas gi0en +y the a raisee and raising :uestions that ro#ote thin,ing and e" loration.

Positi4e (einforcement
S,inner =1*71> has esta+lished that change in +eha0iour cannot +e +rought a+out in hu#an +eings through unish#ent or negati0e rein!orce#ent' +ut only through ositi0e rein!orce#ent. In!luencing would in0ol0e ro0iding encourage#ent and rein!orcing success so that the erson ta,es #ore initiati0e and is a+le to e" eri#ent with new ideas. Bhange cannot ta,e lace without e" eri#ent and ris, ta,ing. %hese are encouraged through ositi0e rein!orce#ent.

Identification
&e0inson =1*G?> has stressed the i# ortance o! the rocess o! identi!ication o! the e# loyee with his #anager. One #a$or in!luence which hel s an e# loyee to de0elo is the o ortunity !or hi# to identi!y with indi0iduals ha0ing #ore e" erience' s,ill and in!luence. <ccording to McBlelland =1*7G>' this is the !irst stage in the de0elo #ent o! sychological #aturity or ower #oti0ation. %his legiti#ate need should +e !ul!illed. &e0inson states that this is the !irst stage in the de0elo #ent o! sychosocial #aturity or ower #oti0ation. %his legiti#ate need should +e !ul!illed. &e0inson =1*G?> states se0eral +arriers which #ay co#e in the way o! such a legiti#ate rocess o! identi!icationHlac, o! ti#e' intolerance o! #ista,es' co# lete re$ection o! de endency needs' re ression o! ri0alry' and une"a#ined relationshi . &e0inson suggests that to hel the de0elo #ent o! the rocess o! identi!ication it is necessary !or the #anager to also e"a#ine his own rocess and needs o! interacting with the su+ordinates.

III/ elping
34D is essentially hel ing. Hel ing in0ol0es se0eral rocesses' +ut there are three that are !airly i# ortant.

Concern and #mpath,


I! the #anager has no concern !or his e# loyee' e!!ecti0e hel ing cannot +e ro0ided in the 34D session. Such concern is shown when the a raiser is a+le to e# athise with his su+ordinate. %hese would +e re!lected in the ,inds o! :uestions as,ed and the tone in which the con0ersation ta,es lace. Managers #ay constantly as, the#sel0es how #uch concern and genuine e# athy they ha0e !or the e# loyees with who# they ha0e 34D sessions. 1ithout such genuine concern' 34D #ay only degenerate into a ritual and cannot achie0e its goals.

Mutualit, of (elationship
34D should not +e regarded as #erely gi0ing hel . It is also a+out recei0ing hel on 0arious as ects. Unless such a relationshi is esta+lishedHi.e.' +oth ersons in0ol0ed in the relationshi !eel !ree to as, !or and ro0ide hel to each otherH34D cannot +e e!!ecti0e. Mutuality is +ased on trust and a genuine erce tion that each erson has enough to contri+ute. <lthough the a raiser is in a su erior osition' he continues to learn and to recei0e hel !ro# the a raisee. AG

Identif,ing 'e4elopment -eeds


%he #ain ur ose o! 34D is to identi!y de0elo #ent needs o! the e# loyee which can +e #et through 0arious ways. 34D should result in a clear and syste#atic identi!ication o! such needs and su+se:uent lans as to how these needs will +e !ul!illed. S erry and Hess =1*7A> ha0e ad0ocated the use o! contact 34D which they de!ined as2... the rocess +y which the #anager aids the e# loyee e!!ecti0ely in the techni:ues o! ,eying' res onding and ro+le#(sol0ing and de0elo #ent' using guiding2. Bontact 34D is +ased on a transactional analysis a roach and #a,es use o! se0eral s,ills discussed a+o0e. 5eying re!ers to reading eo le. %he su er0isor uses an a ro riate !ra#e o! re!erence to ercei0e what the e# loyee #eans +y his 0er+al and non( 0er+al res onses. 4es onding concerns what the su er0isor co##unicates to the e# loyee. 1hat was learnt !ro# ,eying is re layed in a #anner which adds to' su+tracts !ro#' and interchanges with the #eaning the e# loyee co##unicates. Guiding is the techni:ue the su er0isor uses to #oti0ate or hel the e# loyee to change his +eha0iour. %he su er0isor as #oti0ator can increase the e# loyee2s dri0e to +etter acco# lish the o+$ecti0es. Morrisay =1*7?> has suggested a !ew other techni:ues li,e a you(we techni:ue' second(hand co# li#ent' ad0ice(re:uest and su##ary. In the you(we techni:ue' one uses you to co# li#ent and we to criticise =2you are doing a great $o+' we ha0e a ro+le#2>. %he second(hand co# li#ent is co##unicating to the su+ordinate a co# li#ent recei0ed !ro# a third arty =2Mr Su+odh says that you ha0e done an e"cellent $o+ !or hi#2>. < ad0ise(re:uest is as,ing the e# loyee !or suggestions and ad0ice. Su##arising at the end hel s clari!y the decisions ta,en' !i" the res onsi+ilities and integrate the whole discussion.

%e@uential Process of P('


34D is hel ing the e# loyee to grow and de0elo in the organisation. ;0ery #anager carries out a 34D with his e# loyee ,nowingly or un,nowingly in his day(to(day wor,(li!e. <n e!!ecti0e a raiser(#anager is one who hel s his e# loyees +eco#e #ore aware o! their strengths and wea,nesses and hel s the# grow to i# ro0e !urther on the strong oints and o0erco#e wea,nesses. %hrough the rocess o! #utuality and su ort' he hel s the e# loyee to de0elo ' ro0iding the ro er e#otional cli#ate. Mutuality in0ol0es wor,ing together with the e# loyee and de0elo ing !uture lans o! action !or the e# loyees2 growth and contri+ution to the organisation. Su ort in0ol0es acce tance o! the e# loyee as a total erson with his strengths and wea,nesses and encouraging hi# with war#th.34D re:uires certain inter( ersonal s,ills which can +e ac:uired easily i! a #anager is genuinely interested in de0elo ing his su+ordinates. 34D s,ills are i# ortant !or a #anager articularly at the ti#e o! er!or#ance re0iew. Good #anagers counsel their e# loyees regularly in their $o+s whene0er the need arises. <nnual er!or#ance re0iews ro0ide !or#al o ortunities !or !or#al 34D. < !or#al 34D rocess asses through certain stages which are i# ortant !or the #anagers to ta,e note o!. %he 34D rocess has three hases. ra ort +uilding' e" loration' and action lanning.In the ra ort +uilding hase' a good a raiser atte# ts to esta+lish a cli#ate o! acce tance' war#th' su ort' o enness and #utuality. He does this +y e# athising with the e# loyees +y listening to his ro+le#s and !eelings' +y co##unicating his understanding to the e# loyee' +y e" ressing e# athy and showing genuineness o! interest in hi#.In the e" loration hase' the a raiser atte# ts to hel the e# loyee to understand hi#sel! and his ro+le#s +etter. He #ay do this +y raising :uestions to hel the e# loyee e" lore his ro+le#s' and hel ing hi# to diagnose the ro+le# ro erly.ln the action lanning hase' the a raiser and the e# loyee $ointly wor, out or lan s eci!ic ste s !or the de0elo #ent o! the e# loyee. %he #anager #a,es a co##it#ent to ro0ide s eci!ic su ort that he can o!!er to aid e# loyee de0elo #ent./igure G.@ gi0es the three hases =and the su+( hases> o! the 34D rocess. < raiser +eha0iour which are hel !ul in the 34D rocess and those which are li,ely to hinder the rocess are listed against each su+( hase.

(apport Auilding
4a ort +uilding is essential !or any e!!ecti0e 34D outco#e. %he ra ort(+uilding hase in0ol0es generating con!idence in the e# loyee to o en u and !ran,ly share his erce tions' ro+le#s' concerns and !eelings. %he a raiser(#anager should co#e down to the le0el o! his e# loyee and +e attuned to his orientations. %his can +e done ado ting the e# loyee2s !ra#e o! re!erence. Attending %he o ening hase o! 34D is 0ery i# ortant in ra ort +uilding. General o ening rituals #ay co##unicate the #essage o! attending to the a raisee and gi0ing i# ortance to the 34D transaction. In0iting rituals li,e as,ing the e# loyee to sit down' closing the door to indicate ri0acy' as,ing the secretary not to distur+ the# and not !ielding tele honic calls during the con0ersation #ay indicate that the a raiser is attending to the a raisee. Howe0er' all such rituals should co#e out o! a genuine concern and atte# t to ay !ull attention to the e# loyee during the 34D session. A7

&istening <s already stated' it is i# ortant to listen to what the e# loyee says' as well as his !eelings and concerns. 3hysical osture =e.g. leaning !orward> and ,ee ing eye contact with the e# loyee are indicators o! listening. Acceptance ;sta+lishing a cli#ate o! acce tance is a necessary art o! esta+lishing ra ort. %he e# loyee #ust !eel that he is wanted and his a raiser is interested in understanding hi# as a erson rather than as a role or a osition in the organisation. %he a raiser co##unicates this to the e# loyee +y listening to all the ro+le#s o! the e# loyee and co##unicating to the e# loyee that he is listening. %he a raiser can co##unicate to the e# loyee +y ara hrasing' #irroring or re!lecting what the e# loyee says. /or e"a# le' when an e# loyee says' 2I a# really #ad. I ha0e tried to do #y +est in the ast year. I ha0e wor,ed twice as hard as any one else in the o!!ice. But I ne0er get a ro#otion' he is e" ressing his anger. %he a raiser #ay re!lect and say' 28ou !eel that your su eriors ha0e not shown ro er recognition !or your hard wor,2. Such a re!lection or #irroring would hel the e# loyee !eel that he is +eing understood and that his a raiser is interested in hi#. %his +uilds in a cli#ate o! acce tance and !acilitates the rocess. %'ploration Besides acce ting the e# loyee' listening to hi# and esta+lishing a cli#ate o! o enness' the a raiser should atte# t to understand as well as hel the e# loyee understand his own situation' strengths' wea,nesses' ro+le#s and needs. No+ody would li,e to +e directly told what his wea,nesses are. 34D s,ill lies in #a,ing the e# loyee disco0er his own wea,nesses' and identi!y his ro+le#. <t the #ost' the a raiser #ay use o en and e" loring :uestions. %'ploring ;" loring hel s an e# loyee to search 0arious di#ensions o! the ro+le#' or disco0er unidenti!ied ro+le#s and +ring to sur!ace unnoticed issues. ;" loring can +e done +y using :uestions and suggesting to the e# loyee to tal, #ore a+out a ro+le# he #entions. < 0ariety o! :uestions #ay +e used as already discussed. (roblem Identification <!ter a general e" loration' :uestions #ay +e as,ed to hel the e# loyee !ocus on the ro+le#. It is necessary !or the a raiser to use :uestions +oth to generate in!or#ation on so#e concerns and ro+le#s' and then narrow down the !ocus to identi!y a #ore ro+a+le ro+le#. /or e"a# le' i! an e# loyee !eels that his ro+le# is that others do not co(o erate with hi#' the a raiser #ay as, :uestions to narrow down the ro+le# to the e# loyee2s relationshi with a !ew colleagues. Duestions #ay then +e as,ed to hel the e# loyee see what he does that re0ents ossi+le co(o eration. ;0entually' the discussion #ay !ocus on how the e# loyee can deal with co# etiti0e relationshi s' and yet colla+orate. Identi!ication o! a ro+le# is necessary in lanning !or i# ro0e#ent. Diagnosis %he diagnosis o! the ro+le# is the ne"t ste in e" loration. 1ithout diagnosis' there is little sco e !or sol0ing any ro+le#. O en :uestions li,e 21hy do you thin, eo le are ut o!! when you s ea, with the#9' 2Ban you recall occasions when you got !ull co(o eration92'21hat do you attri+ute this to92' 21hat ersonal li#itations +other you92 #ay hel the e# loyee arri0e at a +etter diagnosis. %he #ain atte# t should +e to generate se0eral alternati0e causes o! a ro+le#. Action (lanning Managers are e" ected to guide their e# loyees and contri+ute to their de0elo #ent. 34D inter0iews should end with s eci!ic lans o! action !or the de0elo #ent o! the e# loyee. Identi!ying a training need' $o+ rotation' s onsoring !or !urther training' increased res onsi+ility and role clarity are so#e o! the li,ely outco#es o! such action lans. %hree su+( hases can +e identi!ied in action lanning.

A)

#earching %he #ain contri+ution o! the a raiser to action lanning is the hel he ro0ides to the e# loyee in thin,ing a+out alternati0e ways o! dealing with a ro+le#. In addition to encouraging the e# loyee to !ind such alternati0es' the a raiser can at a later stage add to this list o! alternati0es !or !urther e" loration. %his should' howe0er' +e done only a!ter so#e ti#e. %he e# loyee should ri#arily ta,e the res onsi+ility o! generating alternati0es. Decision)making <!ter the alternati0es ha0e +een generated' the a raiser #ay hel the e# loyee assess the ad0antages and disad0antages o! each alternati0e' raise :uestions a+out the !easi+ility o! the 0arious alternati0es and hel !inalise a lan !or i# le#entation. %his #ay' howe0er' +e regarded as a contingency lan' to +e altered in the light o! !urther e" erience. #!pporting %he !inal and the crucial stage o! 34D is to co##unicate su ort and decide how it should +e ro0ided i# le#enting the agreed action lan. %he sychological contract o! ro0iding hel should e#erge considera+le e" loration and discussion. Su ort !urther increases the autono#y o! the e# loyee' and not enhance his de endence on the a raiser. Design #onitoring the action lan' and needed !ollow u also +e re ared. while a!ter does #ay

Making P(' #ffecti4e


In de0elo #ental 34D !or#ally organised +y the organisation' the e# loyee #ay not as, !or 34D' +ut his su erior #ay organise 34D inter0iews as an organisational re:uire#ent. On such occasions the e# loyee #ay +e !orced into a 34D situation. I! 34D is gi0en without +eing sought' it is li,ely to +e o! li#ited 0alue. It #ay +e !rustrating +oth !or the a raiser and the e# loyee. In such a situation' the a raiser would do well +y !orgetting a+out 34D and tal, to the e# loyee a+out his interestElac, o! interest in growth. %he e# loyee is li,ely to e" ress his 0iews i! the a raiser esta+lishes an o en cli#ate. I! the e# loyee has serious e#otional +loc,s in dealing with the su erior' there is no use in organising a 34D. %hey need a ro+le#(sol0ing session +e!ore that. Hence' #a,e sure +e!ore a 34D that the e# loyee is willing to learn !ro# this inter0iew. So#e e# loyees are loyal and so#e su eriors so rotecti0e' that there is a danger o! e# loyees +eco#ing totally de endent on the a raiser. %he a raiser should chec, !ro# ti#e to ti#e through re!lection' i! he is #a,ing the e# loyee #uch too de endent on hi#. <llow hi# to #a,e his own decisions and hel hi# in #a,ing decisions +ut do not ta,e decisions !or hi# as he is going to +e the actor. Ma,e sure that the e# loyee understands the ur ose o! 34D. I! he does not understand or i! he has wrong e" ectations' he #ay not recei0e whate0er you say in the ro er ers ecti0e. I! you !eel that he has so#e #isunderstandings' it is +etter to use the !irst session to SBlari!y these #isunderstandings and then schedule another session. Mini#ise argu#ents. One argu#ent is su!!icient to #a,e +oth o! you de!ensi0e. <cce t e0erything he says and try to +uild on it. <cce tance is the +est way o! +ringing a+out sel!(realisation in the erson. Good 34D sessions !ail to roduce e!!ecti0e results due to lac, o! !ollow(u . /ollow(u s through in!or#al e"changes go a long way in co##unicating your interest in the e# loyee. Otherwise' he #ay !eel that the 34D is only a !arce and he #ay lose interest in it e0entually. < good 34D e# owers not only the a raisee +ut also the a raiser. It ena+les the a raiser to ,now the ground le0el realities' understand !actors a!!ecting the er!or#ance o! his $uniors and ena+les hi# to re are action lans to i# ro0e his entire unit or de art#ent2s er!or#ance. It e:ui s hi# with new in!or#ation and ,nowledge a+out his eo le and lan strategies. A*

*ig/ "/!: Se:uential 3rocess o! 34D 4a ort +uilding <cce ta+le +eha0iour 4ituals Bon0ersation on ersonal #atters 3hysical attention = osture> ;ye contact 4es onse =0er+al and non(0er+al> 5ee ing out tele hones' noises' distur+ances' etc. Bo##unication o! !eelings and concerns Unacce ta+le +eha0iour Discussion o! +eha0iour !ro# the start Distraction =attention on other things' tele hones' signing letters' to others' etc.' during the con0ersation> &ac, o! res onse listening !or a long

<ttending &istening =to> /eelings Boncerns 3ro+le#s <cce tance =e# athy>

3ara hrasing !eelings Sharing 3assi0e own e" erience eriod ;" loration ;" loring

Monitoring or ara hrasing Briticising <0oiding or hedging O en :uestions ;ncourage#ent to e" lore 3ro+le#s Duestions to e" lore ossi+le Suggestion o! a ro+le# identi!ication ro+le#s ;ncourage#ent to . generate in!or#ation Identi!ication o! a ro+a+le ro+le# Diagnosis ;" loratory :uestions Suggesting the cause Generating se0eral ossi+le causes <ction lanning Searching Decision #a,ing Duestions on ossi+le <d0ising solutions Generating alterna( ti0e solutions Duestions on !easi+ility' riority Directing Ma,ing a !i"ed lan ros and cons Discussion o! one solution Discussion o! an action lan Bontingency lan Identi!ication o! needed hel 3ro#ise o! general hel Monitoring Bontract on hel

Su

orting

-7

Chapter 6 2sing Performance Management %,stems 'ata for ( 'ecisions and Performance Impro4ements
%he 0alue o! data generated in er!or#ance #anage#ent syste#s is o!ten underesti#ated and conse:uently underutilised. %his is one o! the #a$or it!alls o! calling a er!or#ance #anage#ent syste# an a raisal syste#. %he nature o! the data that gets generated in the er!or#ance #anage#ent rocess is as !ollows. 1. Detail er!or#ance lans o! indi0iduals. %his could +e used to align the indi0idual goals with organisational goals and could +e used to clari!y the roles. ?. Su ort re:uire#ents o! each e# loyee to achie0e or carry out his er!or#ance lans and #eet targets. In so#e o! the syste#s the e# loyees are as,ed in the +eginning itsel! to esti#ate the su ort re:uire#ents. %his hel s the seniors to lan !or su ort and where it is not ossi+le re are the e# loyee to er!or# under constraints or re0ision o! targets. %his also is a #eans o! co##unication to the to o! the e" ectations o! the e# loyees. @. 3er!or#ance analysis data generated during #id(year re0iew or year(end re0iew. %hese indicate the !acilitating !actors and +loc,ing !actors. %hese data could initiate er!or#ance i# ro0e#ent acti0ities +y HODs. A. 4atings on :ualities. %hese will indicate the areas where e# loyees are strong and areas where they are wea, and lay the ground !or de0elo #ent decisions. -. 5nowledge or s,ill ga s !ro# the er!or#ance analysis data. %his will also gi0e insights into the de0elo #ent needs o! an indi0idual. G. In!or#ation a+out the er!or#ance standards o! di!!erent de art#ents and grou s. 7. Biases in ratings. %he analysis o! rating atterns will gi0e insights into the lenient and conser0ati0e assessors and could hel in training. ). Uni:ue acco# lish#ents o! indi0iduals or outstanding contri+utions. High ratees could +e studied to see how their otential could +e utilised. *. %rends in er!or#ance i# ro0e#ents. Data on targets and acco# lish#ents o0er the last !ew years could gi0e interesting co# arisons and atterns o! changes in er!or#ance. 17. %raining needs data stated +y the indi0idual or his su er0isor. ;!!ecti0eness o! er!or#ance a raisal syste#s de ends on how well the data generated +y the syste# is utilised and to what e"tent the e# loyees see the data +eing utilised. < raisal data can +e a lied !or de0elo #ent decisions as well as !or H4 #anage#ent. %he !ollowing categories o! de0elo #ent decisions could +e ta,en on the +asis o! a raisal data. =i> Organising co# any training rogra##es6 =ii> S onsoring e"ecuti0es !or e"ternal training6 =iii> Io+ rotation6 =i0> Bareer de0elo #ent6 =0> 3otential de0elo #ent6 and =0i> Delegation. %he !ollowing H4 decisions could also +e #ade on the +asis o! a =i> 3er!or#ance rewards6 =ii> 3lace#ent and trans!ers6 =iii> 3ro#otions6 =i0> Bhange o! duties. raisal data.

'e4elopment 'ecisions
%he ath !or de0elo #ent on the $o+ is already car0ed out !or e# loyees through ,ey er!or#ance areas' +eha0ioural di#ensions' sel!(a raisal' er!or#ance analysis and counselling. <t e0ery a raiser(a raisee le0el' role clarity o+tained through #utual discussions o! 3<s and 53<s' increased understanding and insights generated a+out #anagerial ca a+ilities and +eha0ioural :ualities re:uired !or e!!ecti0eness in the organisation' identi!ication o! !acilitating and inhi+iting !actors through er!or#ance analysis and recognition o! !actors that one can in!luence and change' and the disco0ery o! one2s own strengths and wea,nesses as well as o ortunities !or de0elo #entHall contri+ute directly or indirectly to e# loyee de0elo #ent. Howe0er the insights gained during er!or#ance re0iew and counselling discussions and the de0elo #ent lans re ared +y the a raiser and the a raisee should +e rein!orced and strengthened +y su orti0e ad#inistrati0e decisions +y the ersonnel or H4D de art#ents or +y the senior line #anagers who can ta,e such decisions. /or e"a# le' an a raising o!!icer can #a,e reco##endations to #eet the training needs o! his a raisee +ut unless ad#inistrati0e action is ta,en on the# the seriousness and e!!ecti0eness o! the a raisal syste# #ay +e -1

lost. In this section we will loo, at the 0arious ways in which a decisions.

raisal data can +e used !or de0elo #ent

Identification of Training -eeds


3er!or#ance a raisal should result in +etter er!or#ance and a sense o! satis!action on the art o! each a raisee. ;0ery e# loyee #ay not ha0e all the ca a+ilities re:uired to er!or# each and e0ery !unction associated with his role. 3er!or#ance a raisal should +e a+le to indicate the ca a+ilities the erson has and the ca a+ility he lac,s to er!or# each o! the !unctions =or at least the i# ortant !unctions> associated with his role. %he ca a+ilities the e# loyee lac,s once identi!ied need to +e de0elo ed through a ro riate #echanis#s. Ba a+ility ga s can +e identi!ied in er!or#ance a raisals +y loo,ing at the ratings gi0en on 0arious 53<s' o+$ecti0es' #anagerial and +eha0ioural di#ensions. &ow ratings on any area or di#ension #ay indicate ca a+ility ga s. &ow rating is an indicator o! oor er!or#ance which in turn #ay +e a result o! low #oti0ation or low ca a+ility. It is there!ore necessary to ascertain the reasons !or oor er!or#ance. %his should nor#ally +e discussed and decided during er!or#ance re0iew and counselling discussion +y the a raiser. %he a raiser should then indicate in the 2de0elo #ent needs2 section o! the a raisal !or#. Most o!ten a raisers ha0e a tendency to reco##end directly the na#es o! training rogra##es to which the a raisee should +e s onsored rather than gi0ing details o! the ca a+ility re:uire#ents. 1hile this #ay #a,e the H4D de art#ent2s $o+ easy' there is a danger o! the indi0idual +eing s onsored !or training rogra##es that ha0e little rele0ance !or his ca a+ility re:uire#ents. %he !ollowing rocesses #ay +e used +y the H4D de art#ent to identi!y training needs and create learning o ortunities !or e# loyees. =i> Bollect the a raisal ratings o! all the e# loyees. =ii> Bategorise the e# loyees into role related or !unction related categories =e.g. all +ranch #anagers' all Konal #anagers' sales #en dealing with a articular set o! roducts' #ar,eting #anagers' roduction su er0isors' etc.>. =iii> Identi!y co##on er!or#ance areas !or each category o! e# loyees. %hese co##on er!or#ance areas should re:uire +y and large si#ilar ca a+ilities. =i0> %a+ulate the !inal a raisal ratings +y the a raiser against each er!or#ance area !or all the e# loyees ha0ing that er!or#ance area. 1here there are ratings assigned to di!!erent o+$ecti0es it is use!ul to ta+ulate the ratings' o+$ecti0e(wise. =0> %he trends in ratings are indicati0e o! the areas that need attention. %hose areas where ratings are oor indicate training needs. %hese . need to +e ro+ed !urther to deter#ine whether oor ratings are re!lections o! ca a+ility ga s or #oti0ational issues or +iases. %he H4D #anager has to use his insight here. He #ight inter0iew a !ew a raisers and a raisees to ascertain the training needs. =0i> On the +asis o! such analysis' areas where a large grou o! e# loyees need to +e trained could +e identi!ied. 1here0er there are large grou s o! eo le re:uired to +e trained in(house rogra##es could +e organised. I! only a !ew eo le need to +e trained in select ca a+ility areas they could +e s onsored !or outside rogra##es. %hus' an acti0e ursuit o! a raisal ratings to identi!y trends in ca a+ility ga s is re:uired on the art o! the ersonnelEH4D de art#ents. ;"clusi0e reliance on the a raiser2s reco##endations o! the training needs #ay not gi0e a co# lete icture o! the de0elo #ental needs. < thorough analysis o! the a raisal !or#s and a raisal ratings is re:uired. Si#ilarly' ta+ulations on #anagerial and +eha0ioural di#ensions #ay indicate areas where the e# loyees #ay need hel . /or e"a# le' i! #ost eo le in a unitEde art#ent get low ratings on 2initiati0e2 or creati0ity2 or 2tea# s irit2' it indicates the need !or the #e#+ers o! that unitEde art#ent to +e hel ed in de0elo ing that :uality. %raining rogra##es #ay +e organised or other !or#s o! de0elo #ental rocesses =li,e wee,ly rocess #eetings !or i# ro0ing tea# s irit>' eriodic creati0ity e"ercises' discussions on initiati0e ta,ing +eha0iour' etc. could also +e initiated. In large organisations' the a raisal data could +e !ed into a co# uter and the co# uter could +e rogra##ed to list those that #ay need di!!erent ,inds o! training on the +asis o! consistent low ratings they #ay ha0e recei0ed o0er a eriod o! three to !our years. %hese lists could then +e !urther rocessed and e# loyees should +e contacted +e!ore ta,ing any de0elo #ent decisions. Howe0er' de0elo #ent decisions are not li,ely to +e e!!ecti0e unless the e# loyee hi#sel! acce ts the# and underta,es the tas, o! de0elo ing hi#sel! +y utilising the o ortunities created +y the organisation. 3er!or#ance analysis done +y the a raisees is another use!ul source !or identi!ying de0elo #ent needs. Indi0idual inhi+iting !actors identi!ied +y the a raisees #ay +e indicators o! ca a+ility ga s. Inhi+iting !actors attri+uta+le to re orting o!!icers and others in the organisation #ay also indicate so#e de0elo #ental needs !or senior o!!icers. %he H4D #anagers who analyse such data should +e sensiti0e to 0arious cues +eing o!!ered +y the a raisees and a raisers in their er!or#ance analysis. -?

On the +asis o! his own analysis' the H4D #anager should get +ac, to the de art#ental heads and gi0e the# a !eed+ac, o! the ca a+ility ga trends his analysis re0eals and chec, with the# the 0arious hy otheses he #ay ha0e de0elo ed a+out the training needs. 1hen such an e!!ort is ut in +y the H4D de art#ent the er!or#ance a raisal syste#s are li,ely to +e ta,en #ore seriously. Io+ rotation is another e!!ecti0e way o! de0elo ing e# loyee ca a+ilities. It in0ol0es eriodical changing o! e# loyees !ro# one $o+ to the other to gi0e the# an e" erience o! handling certain #ini#u# 0ariety o! $o+s in the organisation. So#e organisations use $o+s rotation as a #echanis# !or identi!ying and de0elo ing the otential o! e# loyees. /or e"a# le' one organisation that #anu!actures hea0y engineering e:ui #ent has a nor# that all its new entrant engineers recruited at $unior #anagerial le0els should +e rotated e0ery two years to wor, in a di!!erent de art#ent. %hus' a!ter ten years o! $oining the co# any the erson would ha0e gone through at least !i0e di!!erent de art#ents. %he indi0idual !or#s a +etter ers ecti0e a+out the entire organisation and its !unctioning. <!ter wor,ing in di!!erent de art#ents' he is a+le to understand their wor,' di!!iculties' re:uire#ents' etc. and there!ore is +etter e:ui ed to colla+orate with the# and wor, as a tea# #e#+er. In this #anner seeds ha0e already +een sown to re are e0ery young engineer to +eco#e a general #anager o! that co# any. In addition' +y o+ser0ing his er!or#ance in di!!erent de art#ents' the organisation is a+le to ascertain indi0idual2s suita+ility !or di!!erent de art#ents and hel hi# !or#ulate his career aths. It #ay not +e ossi+le !or all organisations to ha0e these ,inds o! #echanis#s. Howe0er' er!or#ance a raisals #ay oint out the needs !or rotation in so#e cases. <t the ti#e o! the a raisals the a raisee hi#sel! #ay as, !or a change i! he has in0ested se0eral years in doing the sa#e $o+6 or i! he has not +een a+le to er!or# so#e o! the !unctions associated with his resent $o+ and re!ers to try out a di!!erent $o+. Such $o+( rotation re:uests and suggestions should +e #entioned in the 2de0elo #ental needs2 section o! the a raisal !or# and e0ery year' a!ter collecting all the !or#s the ersonnel or H4D de art#ent should +e a+le to arrange such changes to the e"tent !easi+le. %hose a raisees or a raisers' whose re:uests !or change cannot +e acco##odated' should +e contacted and in!or#ed a+out the reasons and !uture ossi+ilities. 3otential de0elo #ent and career de0elo #ent related decisions can +e ta,en +y the a raisee hi#sel! during a raisal discussion. I! any set o! :ualities =strengths> uni:ue to that indi0idual are o+ser0ed which the a raiser !eels #ay+e use!ul !or certain higher le0el $o+s in the organisation' he could gi0e in!or#al !eed+ac, a+out the sa#e and assist hi# in de0elo ing other :ualities re:uired to er!or# those roles. In this way the a raiser is hel ing the a raisee to re are !or !uture ossi+le res onsi+ilities through otential de0elo #ent. Bareer counselling and delegations could also +e gi0en to hi# during a raisal. Delegation can +e used as a #echanis# !or de0elo ing e# loyee ca a+ilities in new areas !or er!or#ing e# loyees. In uts !or de0elo #ent needs are gi0en +y the a raisee and a raisers through the er!or#ance a raisal !or#s. De0elo #ent decisions should +e ta,en +y the to #anage#ent. Here the ersonnelEH4D de art#ents lay a 0ery i# ortant role. %hey should care!ully go through all the data su lied through the !or#s. %hey should re0iew each a raisee2s case e0ery year and assist the to #anage#ent in ta,ing de0elo #ent decisions. In so#e cases the !inal authority to ta,e such decisions is also gi0en to the ersonnel or H4D de art#ents. In case where no action is re:uired or where the organisation considers it di!!icult or ina ro riate to #eet any needs e" ressed in the !or#s' the ersonnel or H4D de art#ent sta!! should get in touch with the a raisee or his re orting o!!icer and e" lain to hi# their oint o! 0iew. I! such action is not ta,en' the e# loyees are li,ely to !eel that they and their needs are not +eing attended to +y the organisation.

Administrati4e 'ecisions
<d#inistrati0e decisions li,e salary increases and other !or#s o! reward !or good er!or#ance' trans!er and lace#ent are nor#ally ta,en +y the to #anage#ent or the H4 de art#ent. In so#e organisations' co##ittees consisting o! H4 #anagers and line #anagers at senior le0els ta,e such decisions. &argely these decisions are +ased on er!or#ance and er!or#ance a raisals lay a signi!icant role in this. Most o! these ad#inistrati0e decisions !all under er!or#ance rewarding. &et us e"a#ine so#e issues regarding er!or#ance rewarding and see how a raisal data can +e used !or ad#inistering er!or#ance rewards.

Performance (e=ards
3er!or#ance rewarding is a 0ery contro0ersial issue in organisational li!e to which #any chie! e"ecuti0es do not ay enough attention. 3eo le are li,ely to wor, harder i! they !eel that their e!!ort will +e recognised +y their su eriors and that they will +e rewarded. 3articularly in #anu!acturing and ser0ice organisations' roducti0ity de ends largely on the e!!ort ut in +y e# loyees' thus' #a,ing rewarding er!or#ance 0ery crucial. 3er!or#ance rewarding is contro0ersial +ecause there are no easy ways o! :uanti!ying er!or#ance !or reward ur oses. Moreo0er' so#e chie! e"ecuti0es #ay !eel that i! an e# loyee is rewarded !inancially or in so#e other o+ser0a+le way' it #ay +e de#oralising !or those who are only #arginally in!erior to the rewarded -@

e# loyee. <n un!ortunate outco#e o! this is that a!ter so#e ti#e in such organisations' the high er!or#ing e# loyees start losing #oti0ation +ecause high er!or#ing and low er!or#ing e# loyees are treated ali,e. 4ewarding an e# loyee #eans gi0ing hi# so#ething #ore than what is usually gi0en to e# loyees at his le0el. I! he is rewarded as a #ar, o! recognition !or so#e $o+ done well' the e# loyee !eels #oti0ated. %his recognition #ay +e in ter#s o! tangi+le +ene!its' or non(tangi+le ones such as a certi!icate. <n e# loyee is generally rewarded !or high er!or#ance in his $o+ o0er a eriod o! ti#e =usually a year or two> and this should +e di!!erentiated !ro# other !or#s o! awards such as those !or +ra0ery' social ser0ice' +est e# loyee' s orts#anshi ' etc. 3er!or#ance awards are gi0en to indi0iduals !or consistent outstanding wor, in their $o+s although grou er!or#ance rewarding is also not unco##on.

Philosoph, .ehind Performance (e=arding


Se0eral research studies in the ast ha0e indicated that the need !or recognition is 0ery i# ortant and it dictates e# loyee +eha0iour. ;0ery e# loyee wants his e!!orts to +e recognised and that he should +e treated as an i# ortant art o! the organisation. I! the e"istence o! e# loyees is not ta,en note o!' then a!ter so#e ti#e they #ay resort to draw the attention o! the to #anage#ent to their e"istence. 3er!or#ance rewarding is an e!!ecti0e way o! co##unicating to e# loyees that e0ery indi0idual e# loyee is considered i# ortant and his er!or#ance is gi0en due recognition. <nother ur ose ser0ed +y the rewards is to rein!orce desira+le +eha0iours shown +y e# loyees so that they continue to contri+ute to the organisation +y e"hi+iting such +eha0iours. 4ewarding also hel s to create healthy co# etition a#ong e# loyees +y encouraging less hard wor,ing ones to co# ete with #ore hard wor,ing ones. %hus' it is one o! the ways o! ,ee ing an organisation ali0e and dyna#ic.

(e=ard Mechanisms
Se0eral #echanis#s o! rewarding er!or#ance are +eing used +y di!!erent organisations. %hese include salary increases' annual er!or#ance awards' outstanding er!or#ance awards' ro#otion to higher ositions' change o! $o+s in0ol0ing higher res onsi+ilities and status' s onsorshi to con!erences and tours to other countries' a reciation letters and certi!icates' trans!ers' ad0anced training and de0elo #ent o ortunities' announce#ents in newsletters' etc.

%alar, Increase
%he general attern o! salary ad#inistration in #ost organisations is +y associating salary grades with di!!erent ositions. <nnually' the salary o! e0ery e# loyee increases +y a !i"ed a#ount associated with that grade. In #any co# anies this is a routine #atter and there are salary increases as soon as the e# loyee co# letes a year o! ser0ice. In so#e co# anies' howe0er' the salary increases are not gi0en until the er!or#ance a raisal re ort o! that e# loyee is recei0ed !ro# his su er0isor. In these co# anies' e# loyees' whose er!or#ances are rated higher than #ost others' are gi0en additional incre#ents in salary as a #ar, o! recognition o! their contri+ution. Since such additional incre#ents cannot +e gi0en to all the e# loyees' the co# any generally ado ts certain criteria such as rewarding the to 17 er cent or so e0ery year. %hese criteria #ay also in0ol0e certain restrictions on the e# loyees recei0ing these rewards. /or e"a# le' no e# loyee can recei0e the reward consecuti0ely !or two years. < !ew other co# anies ha0e 0ery li+eral olicies and e0en reward e# loyees +y gi0ing #ore than one additional incre#ent. So#e o! these co# anies also ha0e the ractice o! sto ing e0en the nor#al incre#ents o! an e# loyee whose er!or#ance is not satis!actory. %his is generally a0oided and e0en in those co# anies' sto ing o! incre#ents is a rare heno#enon and is resorted to only in e"tre#ely oor er!or#ance cases as a #easure o! warning !or i# ro0e#ent. %here are #any ad0antages o! using this syste# o! rewards. It is ,nown that eo le see !inancial incenti0es as 0alua+le irres ecti0e o! the status and ersonal wealth o! the indi0idual. Salary incre#ents are carried out o0er the years and once the e# loyee is granted an incre#ent he continues to get it all through his career in the organisation. Hence this is an incenti0e 0alued +y #ost e# loyees.

Annual Performance A=ards


In this syste# a select ercentage o! e# loyees is gi0en annual awards which are not lin,ed with their salaries. %hus an organisation #ay decide to gi0e an annual er!or#ance award o! a certain a#ount o! #oney. Or the e# loyee #ay +e resented with so#e riKes' or e"tra ri0ileges and +ene!its #ay +e gi0en to hi#. %hese are again +ased on their a raisal re orts. -A

)utstanding Performance A=ards


%hese are er!or#ance awards gi0en to a select !ew !or outstanding er!or#ance. Nor#ally' these carry a lu# su# a#ount o! #oney' a certi!icate and a #e#ento. Bo# anies can ha0e this in addition to annual salary incre#ents and other !or#s o! rewards.

Promotions
In so#e co# anies ro#otion is treated as a reward. < erson is ro#oted to the ne"t higher grade or osition i! his er!or#ance in the resent $o+ is consistently 0ery good. Howe0er' this #ethod o! rewarding has so#e li#itations as ro#otions can +e #ade only when higher(le0el $o+s e"ist. I! there is no suita+le $o+ !or the e# loyee he #ay ha0e to wait until such ti#e that a suita+le $o+ +eco#es a0aila+le. %his #ay +e :uite !rustrating !or an e# loyee. So#e co# anies #ay try to create s ecial $o+s !or such indi0iduals. Howe0er' this results in unnecessary e" ansion o! the co# any and #anagerial ro+le#s such as role con!licts or lac, o! co( ordination #ay arise. Io+s should +e created only when the organisation !eels the need !or the# and articularly when it is e" anding and growing. <nother ro+le# !or using ro#otions as er!or#ance rewards is that there is no guarantee that ast er!or#ance is an indicator o! !uture otential in a new $o+. /or e"a# le' a success!ul roduction engineer need not +e a success!ul roduction #anager as the s,ills re:uired !or the two $o+s 0ary. Si#ilarly an e"cellent sales#an need not +e a good sales #anager as selling and #anaging sales#en and sales o erations o! an entire region re:uire two di!!erent ,inds o! s,ills. %hus' only those who ha0e a titude and ca a+ilities !or higher( le0el ositions should +e ro#oted. I! this is acce ted' not all high er!or#ers #ay get ro#oted. Howe0er' er!or#ance a raisal still !or#s an in ut !or ro#otions although not a critical one. So#e co# anies ha0e the hiloso hy that good er!or#ance in the resent $o+ is necessary !or ro#otion +ut it need not +e the only criteria to entitle an e# loyee to a ro#otion. 1hen such #echanis#s are used' ro#otion cannot +e treated as a reward and hence there is a need !or other #echanis#s o! rewarding good er!or#ance. %o o0erco#e this ro+le#' so#e organisations ha0e resorted to u grading the e# loyee status and salary as a reward o! good er!or#ance. /or e"a# le' in the 3hili ines' a teacher in the education de art#ent who has +een doing well can +e ro#oted to +e a #aster teacher. %here are se0eral le0els o! #aster teacher and a #aster teacher wor,ing in a school can ha0e the sa#e status and salary as one o! his su eriors. %his ta,es care o! the ro+le# o! creating $o+s !or high er!or#ers.

Change of (esponsi.ilities and %tatus


So#e organisations reward their e# loyees +y assigning the# higher le0el res onsi+ilities. %he head o! a de art#ent #ay delegate #ore owers and authority to a high( er!or#ing e# loyee. < sales#an #ay get a larger area o! co0erage or #ore restigious areas !or his o erations or new roducts that are generally gi0en to a co# etent sales#an. %here are #any such #echanis#s +y which the contri+utions o! an e# loyee can +e recognised. Such !or#s o! rewarding generally ha0e high #oti0ational 0alue. Howe0er' one re(condition !or this is that +oth the e# loyee as well as his colleagues in the organisation should clearly ercei0e such additional assign#ents as increasing his status and res onsi+ility. It is an o ortunity gi0en to hi# to de#onstrate his ca a+ilities and it is in res onse to his er!or#ance. It is not su!!icient i! only his su eriors thin, so' +ecause the e# loyee #ay consider it an additional +urden.

%ponsorship to Conferences0 Tours and >isits to other Countries


%his is another !re:uently used #echanis# +y so#e co# anies. Outstanding er!or#ers are gi0en riorities !or attending training' con!erences' etc. in other countries. Or they #ay +e s ecially s onsored to 0isit industry or other si#ilar organisations in other countries to learn !ro# their e" eriences. %his #ay +e considered as a de0elo #ent reward as it ro0ides an o ortunity !or such e# loyees to de0elo the#sel0es. So#e co# anies while !ollowing this ractice ne0er #a,e it e" licit' so the e# loyee s onsored #ay not always realise that his er!or#ance contri+utions are +eing recognised.

Ad4anced Training and 'e4elopment )pportunities


High er!or#ing e# loyees are s onsored to attend training rogra##es as a re aration !or their ro#otion or higher res onsi+ilities. In so#e cases' the #anage#ent does not re0eal this to the e# loyee and he #ay get the !eeling that there is so#ething lac,ing in hi# and this is why he is +eing s onsored. %hus' it #ay ha0e an o osite e!!ect unless clearly e" lained. --

Transfers
In organisations ha0ing a wide geogra hic co0erage' trans!er o! e# loyee !ro# one lace to another +eco#es 0ery necessary. ;# loyees nor#ally ha0e their own geogra hical re!erences. /or e"a# le' #ost e# loyees re!er $o+s in well(de0elo ed cities and towns or their own ho#e town i! they want to +e nearer to their !a#ilies. Such re!erences o! e# loyees are #et when their er!or#ance is good. %here are so#e organisations that gi0e riority to the trans!er re:uests o! high er!or#ing e# loyees. 1hen such re!erences are #et the e# loyee concerned #ay !eel ha y and #oti0ated. < trans!er decision #ay also +e ta,en to ensure a +etter #atching o! the erson with the $o+. By gi0ing the e# loyee #ore challenging $o+s in di!!erent locations through trans!ers #ay also ser0e to #oti0ate the e# loyee and ro#ote his ro!essional de0elo #ent.

Placement 'ecisions
3er!or#ance a raisal in uts could +e used !or lace#ent decisions. I# ro0ing the e# loyee($o+ #atching is hel !ul +oth to the indi0idual as well as the organisation. <n e# loyee who is not er!or#ing well +ecause o! a #is#atched $o+ could +e hel ed +y identi!ying suita+le $o+s !or hi# in the organisation. /or this the a raisal ratings #ay +e used +y the H4 de art#ent to identi!y e# loyees needing such hel . %hose getting consistently low ratings o0er a eriod o! ti#e =two years or so> could +e contacted and discussions could +e held with the# and their a raisers. %heir strengths should +e identi!ied and $o+s re:uiring such :ualities should +e assigned to the#. I! oor er!or#ance is a result o! oor inter ersonal relations and i! there are di!!iculties in i# ro0ing the#' they could +e trans!erred to wor, with a di!!erent +oss. <nother set o! lace#ent decisions #ay in0ol0e e# loyees who er!or# a gi0en role well +ut ha0e #ore ca a+ilities that re#ain une" loited. I! there are challenging $o+s that can use their talents' they could +e laced there. In all such decisions the e# loyee should +e consulted as !ar as ossi+le.

Appreciation Letters and Certificates


%his is another #echanis# used articularly !or e# loyees at lower le0els. Such certi!icates signed +y the chie! e"ecuti0e or a to le0el o!!icer #ay #ean a lot. %hese are distri+uted at annual !unctions. 1hen there is a large grou o! eo le recei0ing such certi!icates' they are handed o0er to heads o! de art#ents !or distri+ution. So#e e# loyees 0alue the certi!icates highly and !eel roud to recei0e the#.

Announcement in -e=sletters0 Bournals0 etc/


%his is another way o! recognising and rewarding good er!or#ers. It is not an unco##on sight in so#e hotels to see ictures o! 2;# loyees o! the Month2 +eing dis layed at lo++ies. %his !or# o! recognition also has a #oti0ating e!!ect on e# loyees. %he author sur0eyed the #echanis#s o! rewarding good er!or#ance that are +eing ractised +y A- di!!erent co# anies =4ao' 1*)?>. /ro# this sur0ey it was !ound that a+out 7@ er cent o! co# anies use salary incre#ents' A7 er cent o! the# use ro#otions' ?7 er cent o! the# gi0en cash awards' ?A er cent use !oreign tra0el' 1G er cent are gi0en a reciation certi!icates' 11 er cent use ad0anced training' * er cent use study tours and 7 er cent gi0e higher res onsi+ilities as #echanis#s o! rewarding good er!or#ance. %rans!ers and announce#ents in newsletters were also +eing used in at least ? er cent o! the co# anies sur0eyed and 7 er cent o! the# re orted ha0ing no reward syste# at all. 1hate0er +e the #echanis# used' to #a,e rewards achie0e their ur oses' the !ollowing oints should +e ,e t in #ind. 1. %he e# loyee should ,now the as ects o! his er!or#ance that ha0e +een $udged or assessed as deser0ing o! reward. ?. %he e# loyee should ,now clearly the nature o! reward +eing gi0en to hi#. @. %he e# loyee as well as his co(e# loyees in the organisation should ercei0e the rewards as a !or# o! recognition and should attach so#e 0alue to the#. 1hen these conditions are #et' the rewards are li,ely to +e e!!ecti0e. 4eward #anage#ent' while e"tre#ely desira+le' is not easy. %he !ollowing are so#e o! the co##on ro+le#s encountered +y the #anage#ent. 1. Duanti!ication o! er!or#ance. ?. Bo# arison o! er!or#ance with di!!erent ty es o! $o+s. A. Di!!erentiating +etween the contri+utions o! a+ilities and e!!orts to high er!or#ance' and gi0ing weightages to the sa#e. -. De#oralisation a#ong e# loyees who are not rewarded +ut who consider the#sel0es as high( er!or#ing e# loyees. -G

G. 7.

Isolating indi0idual e# loyees2 contri+utions !ro# grou contri+utions. Su+$ecti0ity in er!or#ance assess#ent.

%here are no co# lete solutions to these ro+le#s so e0ery organisation should !ind its own ways o! #ini#ising these di!!iculties. Bo# anies interested in ha0ing a reward syste# #ay !ind the !ollowing guidelines o! so#e 0alue. =i> =uantification of performance( Duanti!ying er!or#ance +eco#es easier when each $o+ is de!ined clearly in ter#s o! its !unctions. ;# loyee er!or#ance should +e assessed annually on each o! these !unctions using a se0en( oint' nine( oint or 17( oint scale. %he e# loyees should ha0e a clear idea o! the er!or#ance e" ected o! the# in relation to the di!!erent oints. %he sa#e should +e !ollowed i! other :ualities o! the e# loyee are also +eing assessed. /or a so histicated user' weightages could +e assigned to di!!erent !unctions and +eha0iours and these weightages #ay +e ta,en into account !or !inal co# utation o! the er!or#ance inde". Bo# anies #ay also decide +e!orehand the weightage they gi0e to +eha0iour di#ensions and to !unctions. Se0eral ro+le#s associated with :uanti!ication ha0e already +een discussed in earlier cha ters. =ii> .omparison between performance on different >obs( In e0ery organisation the nature o! $o+s er!or#ed +y e# loyees o! the sa#e le0el di!!er. So#e re:uire high technical s,ills6 others re:uire #ore #anagerial s,ills and a !ew others #ay +e routine. /or e.g.' e# loyees wor,ing in a 4JD de art#ent o! a high(technology industry #ay !eel di!!erently !ro# those wor,ing in the H4 or +illing de art#ent. %here is no way o! e:uating the er!or#ance in di!!erent categories o! $o+s. <s !ar as ossi+le in the reward assign#ent it is +etter to assign a ro ortionate nu#+er o! rewards to each category o! $o+s =or each de art#ent>. %hus' in a co# any with 1'777 e# loyees' i! the to #anage#ent decides to reward the to 17 er cent' the roduction de art#ent #ay ha0e ?- ersons to reward i! it has ?-7 e# loyees' the !inance de art#ent #ay ha0e three i! it has @7 e# loyees and so on. I! so#e de art#ents such as sales needed to +e ushed #ore' the to #anage#ent can always o!!er the# a !ew additional rewards. Si#ilarly !or rewarding senior #anagers =heads o! de art#ents> di!!erent criteria #ay +e used. I! #anagers at this le0el are generalists rather than s ecialists' they can +e co# ared #ore easily across the de art#ents !or their contri+utions. =iii> *bilities and effort( 3er!or#ance is a result o! +oth a+ility and e!!ort. < highly ca a+le indi0idual #ay need to ut in only #arginal e!!ort to gi0e high er!or#ance whereas another indi0idual with low a+ility #ay need to ut in a lot o! e!!ort to roduce e0en an a0erage le0el o! out ut. I! only out ut is rewarded highly ca a+le e# loyees #ay get a lot o! leisure ti#e in addition to rewards whereas those utting in high e!!orts #ay get consistently low ratings. I! !or so#e reason such a+ility di!!erences e"ist' reward #anage#ent +eco#es so#ewhat di!!icult. <s this is the case #ost o!ten than not' the to #anage#ent should ha0e a clear hiloso hy on this. It is necessary to reward the co#+ination o! +oth a+ility and e!!ort. 3er!or#ance on di!!erent !unctions should +e assessed generally in ter#s o! the e!!ort ut in +y the indi0idual in relation to his ca a+ility. %hus' i! a highly ca a+le e# loyee does not ut in e!!ort his er!or#ance should not +e rated high e0en i! his out ut is good. Si#ilarly i! a less ca a+le erson uts in #ore e!!ort and wor,s i# ressi0ely hard' e0en i! his out ut is not e"cellent' he #ay +e gi0en +etter ratings. %his sche#e rewards 2e!!ort2 #ore than 2a+ility2 and 2outco#e2. <t the sa#e ti#e' when highly ca a+le ersons wor, hard' they should +e gi0en ade:uate weightage. %he a+o0e !or#ulae #ay +e use!ul. <+ility High Moderate &ow High Moderate &ow High Moderate &ow ;!!ort High High High Moderate Moderate Moderate &ow &ow &ow Suggested er!or#ance rating Highest Higher High U er a0erage <0erage &ower a0erage &ow &ower &ower

=i0> !emoralisation among others( Due to the su+$ecti0ity in0ol0ed in er!or#ance assess#ent' there are always so#e e# loyees who !eel disa ointed that they are not rewarded !or their er!or#ance. Such nu#+ers #ay +e #ini#ised i! there are clear(cut olicies o! er!or#ance rewarding. I! the e# loyees are #arginal cases' their su er0ising o!!icer could counsel the# and gi0e the# a !eed+ac,. <lternati0ely' de#oralisation could +e ignored as such !eelings last only during the reward announce#ents. I! it induces #ore de#oralisation and oor er!or#ance' such cases should +e counselled. -7

=0> #ndividual vs. performance( No tas,s can +e acco# lished +y any one indi0idual in organisational li!e. %as,s are acco# lished +y tea# e!!orts. In er!or#ance rewarding so !ar we ha0e tal,ed a+out indi0idual er!or#ance. In order to ro#ote #ore colla+oration and tea# wor, in large organisations' it is use!ul to reward grou s or tea#s o! e# loyees !or their $oint contri+utions. 1hen such grou rewarding is introduced it #ay +e done on a selecti0e +asis using criteria li,e new inno0ations' disci line' cost consciousness' etc.' +esides the out ut o! the de art#ent =0i> Su+$ecti0ity. <s long as hu#an +eings assess other hu#an +eings there is +ound to +e su+$ecti0ity. Su+$ecti0ity cannot +e eli#inated co# letely. It can +e reduced su+stantially +y !ollowing so#e o! the rocedures suggested in the re0ious cha ters. %o #anage#ent should +e sensiti0e to criticis# to a0oid #orale ro+le#s +ut they need not +e unduly o0er(concerned a+out its e"istence as it is natural. So#e o! these ro+le#s discourage to #anagers !ro# ha0ing any !or# o! rewards. In their eagerness to a0oid ro+le#s' they throw away the +a+y along with +ath water.<s a result' organisational er!or#ance #ay go down. Inter ersonal co# arisons are a art o! hu#an nature. I! an organisation does not ha0e any syste# o! rewarding high er!or#ers' sooner or later each e# loyee will as, hi#sel! the !ollowing. 2I wor, hard +ut get the sa#e treat#ent as the ones who do the least a#ount o! wor,. I also get the sa#e salary increase and the lowest er!or#er also gets the sa#e. So why should I e"ert #y energies unnecessarily9 1hy should I not +e li,e hi# =who is a low er!or#er> and en$oy li!e92 %his is the +eginning o! a silent deterioration o! hu#an roducti0ity in organisational li!e. O0er a eriod o! ti#e the lowest er!or#ing e# loyee +eco#es the standard for comparison +y all e# loyees and e0ery one atte# ts to +e li,e hi#. In this rocess the lowest er!or#ing indi0idual starts doing e0en less and the co# any is doo#ed. So the choice !or chie! e"ecuti0es is to reward high er!or#ers using so#e !or# o! reward syste#' and contain or counter the ro+le#s associated with it and #o0e !orward' or' to ha0e no such syste# and ,ill e0entually hu#an e!!ecti0eness and organisational e!!iciency +y #o0ing towards low standards o! er!or#ance. %hus' er!or#ance a raisal data can ser0e as in uts !or a 0ariety o! decisions that #ay contri+ute to organisational health and roducti0ity through hu#an resources de0elo #ent.

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Chapter : Performance Management %,stems and Appraisal Practices in India: The 1DDEs %cenario
3er!or#ance a raisal ractices in Indian organisations are :uite 0aried. %hey 0ary !ro# al#ost 2no a raisal2 to a 2so histicated #ulti ur ose' #ulti(co# onent +ased a raisal syste#s2. In so#e o! the s#all and #ediu# siKed organisations it is not unco##on to !ind no !or#al #echanis#s o! a raising er!or#ance. In!or#al a raisal re orts are gi0en +y senior o!!icers to the to #anage#ent. <t the ti#e o! ro#otion decisions the to #anage#ent ta,es the 0iews o! a raisers into consideration. %here are also so#e organisations that ha0e er!or#ance a raisals that ai# si#ultaneously at di!!erent o+$ecti0es' such as data generation !or ersonnel decisions li,e rewards' ro#otions' $o+(rotation' trans!ers and creation o! a new organisational culture o! o enness' trust' #utuality and generation o! ena+ling ca a+ilities and e# loyee de0elo #ent that use di!!erent co# onents =53<s' o+$ecti0e setting' #anagerial and +eha0ioural di#ensions' sel!(assess#ent' er!or#ance analysis' counselling' identi!ication o! training needs' etc.>. < good e"a# le o! such a syste# is the one !ollowed +y &arsen J %ou+ro &i#ited and the one +eing e" eri#ented +y the State Ban, o! India and its associate +an,s. On one side are organisations that ha0e annual con!idential re orts which ta,e into consideration only certain traits to +e shown +y the e# loyee =e.g.' sincerity' unctuality' hard wor,' a earance' leadershi ' dri0e and loyalty> and ignore !ully the $o+(related acco# lish#ents o! the e# loyee. On the other side o! the continuu# are organisations that ha0e se#i(con!idential !or#ats which re:uire the a raisee to state his acco# lish#ents. %hey also ta,e into account such state#ents o! the a raisee !or !inal assess#ent +y the +oss which is on wor,(related issues as well as +eha0iours o! the e# loyee. %he a raiser is also re:uired to discuss with the a raisee +e!ore his !inal assess#ent. Most o! the go0ern#ent de art#ents !all into the earlier category whereas ri0ate and u+lic sector industries tend to !all in the latter category. =Here the go0ern#ent de art#ents li,e the de art#ent o! health and !a#ily wel!are' education' energy' etc.' are to +e di!!erentiated !ro# u+lic sector industries li,e BH;&' HM%' B;M& IOB' S<I&' etc.>. In +etween these two sets there are organisations ha0ing a raisals with 0arious degrees o! so histication. So#e ha0e a er!or#ance( cu#(trait +ased con!idential re ort !or#ats whereas so#e others ha0e er!or#ance(cu#(trait +ased a raisals o en to the a raisee !or discussion and re:uiring hi# to #a,e his co##ents +e!ore they are sent to the re0iewing authority and then to the ersonnel de art#ent.

Appraisal practices
4ao =1*)?> conducted a sur0ey o! a raisal ractices in A- di!!erent organisations =@A ri0ate sector and 11 u+lic sector>. %he !ollowing o+ser0ations could +e #ade !ro# the results o! this sur0ey. T <+out -7 er cent o! the organisations see# to ro!ess the ur ose o! their a raisal as regulating e# loyee +eha0iour as well as de0elo ing e# loyee ca a+ilities. <+out @7 er cent o! the# still use a raisals only !or controlling and regulating e# loyee +eha0iour whereas only a+out 17 er cent see# to use a raisals #ainly !or de0elo #ent ur oses. T < !airly high ercentage o! the organisations see# to use one or #ore co# onents o! a raisal discussed in this +oo,. %a+le G.1 resents the ercentage o! organisations using di!!erent co# onents as a art o! the a raisal syste# they ha0e. %his ta+le indicates a 0ery encouraging trend in the er!or#ance a raisal syste#s +eing used +y di!!erent organisations. 3articularly' the er!or#ance re0iew !eed+ac, to hel the e# loyee recognise his strengths and wea,nesses' use o! a raisal !or identi!ication o! training needs' +asing the a raisal on #utually agreed tas,s' targets or !unctions and sel!(a raisal see# to characterise a+out hal! o! the organisations. <ll these co# onents' i! #onitored well' are li,ely to !acilitate e# loyee de0elo #ent. In s ite o! this trend it a ears' that in a large nu#+er o! organisations =71 er cent> the !inal assess#ent a ears to +e that o! con!idential nature. Ta.le :/1: Bo# onents o! 3er!or#ance < Bo# onents 1 So#e !or# o! agree#ent +etween a +oss and his su+ordinate on tas,s or targets or !unctions !or#ing a +asis o! a raisal ? < raisal discussions ai#ing at hel ing the a recognise his strengths -* raisee to raisal used +y Di!!erent Organisations =n M A-> U re orting its use G?

A*

@ . < raisal discussions ai#ing at hel ing the a raisee to recognise his wea,nesses A < raisal !eed+ac, =written or 0er+al> to tell the e# loyee the areas he needs to i# ro0e -. Sel!(a raisal to co##unicate to the +oss the acco# lish#ents o! an e# loyee G. < raisal on #anagerial :ualities re:uired to er!or# any #anagerial $o+ =e.g.' leadershi ' co(ordination' etc.> 7. Identi!ication o! training and de0elo #ental needs ). < raising otential !or ro#otions *. Identi!ication o! !actors a!!ecting er!or#ance and co##unicating the# to the +oss !or his assistance and !uture action 17. Signature +y su+ordinates on the !or# a!ter assess#ent +y the +oss 11. Bon!idential ratings +y an o!!icer one le0el a+o0e or re orting o!!icer 1?. Bon!idential ratings +y an o!!icer at least two le0els a+o0e the a raisee

-@ G*

AA 7@

)7 7) AA

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%he sur0ey also re0ealed so#e interesting ractices +eing !ollowed in di!!erent organisations. %hese ractices are di!!erent !ro# the usual ones. In 11 o! the co# anies sur0eyed the e"ecuti0es #entioned these as uni:ue co# onents o! their a raisal syste#s. ;ach ite# +elow relates to a di!!erent organisation. 1. < raisal o! a erson !alling under the category 2outstanding2 should +e acco# anied +y a +rie! citation o! the indi0idual2s er!or#ance with s eci!ic details which earned hi# the grade. ?. %he !inal ratings are gi0en +y an o!!icer three le0els a+o0e the a raisee. He gi0es his con!idential ratings on the +asis o! the inde endent ratings +y the re orting and re0iewing o!!icers o! the e# loyee. @. %o a0oid +iased assess#ent +y the i##ediate su er0isor' the a raisal !or# is sent to e# loyees !ro# other de art#ent one le0el a+o0e the a raisee and with who# the a raisee is interacting. A. < raisal !or#s are si# le =one age> !or wor,ers and sta!!. /or o!!icers and #anagers they are lengthy and go into de th. -. %he a raisal re orts +y re orting o!!icer are shown to the a raisee and his co##ents are o+tained. %he re0iewing o!!icer gi0es his !inal ratings con!identially. /ro# this year onwards e0en these are going to +e shown to the a raisee. G. < 2#erit award2 syste# is o erating !or those whose er!or#ance is raiseworthy. 7. %he ratings are gi0en !or 0arious :ualities in a rinted !or#. %here is a co(e!!icient !actor !or each o! the ratings. %he ratings are #ulti lied +y this co(e!!icient !actor and the !inal nu#+er is arri0ed at the ersonnel de art#ent. ). /irst assess#ent is !inalised +y the re orting o!!icer a!ter discussions with the a raisee. %hese are then sent to the head o! the di0ision who #ay #a,e changes +ased on his ,nowledge a+out the er!or#ance o! this e# loyee and others o! his le0el in the di0ision wor,ing at other locations. %hese are then sent to the di0isional director !or his own analysis and trans#ission to the ersonnel de art#ent. *. %he re orting o!!icer o! the a raisee and the re0iewing o!!icer discuss the er!or#ance o! the a raisee +e!ore the re orting o!!icer discusses it with the a raisee. %hen the assess#ent is sent to the head o! the de art#ent who sends it to the #an ower lanning and de0elo #ent #anagers !or re0iew. %he a raisee is assessed +y two o!!icers at least two le0els a+o0e hi#sel!. %he a raisee is in!or#ed o! his strengths and wea,nesses and is allowed to de!end hi#sel!. His co##ents and suggestions are recorded. 17. %he senior #anagers o! the co# any are e" ected to gi0e a #ini#u# o! !our o+$ecti0es er year and lans as to how they will +e achie0ed. %he MD along with the di0isional head will re0iew at the end o! si" #onths and at the end o! the year the rogress achie0ed. I# ro0e#ents needed are 0er+ally co##unicated to the e# loyee.

Appraisal %,stems in Aanks


Ban,ing ser0ices is one sector where a great degree o! attention is +eing aid to er!or#ance a raisal syste#s' Se0eral o! the nationalised +an,s ha0e changed their er!or#ance a raisal syste#s or are in the rocess o! changing the#. %he State Ban, o! India is in the rocess o! ado ting an o en syste# o! a raisal G7

li,e the one descri+ed in this +oo,. Its associate +an,s li,e the State Ban, o! Bi,aner and Iai ur' State Ban, o! Mysore' State Ban, o! Hydera+ad' State Ban, o! Indore' State Ban, o! 3atiala' State Ban, o! Saurashtra and State Ban, o! %ra0ancore are li,ely to !ollow suit a!ter detailed e" erience o! the SBI are a0aila+le. In !act' a+out !i0e years ago a co##on tas, !orce o! H4D #anagers o! these associate +an,s was a ointed to e0ol0e a co##on syste# o! a raisal !or the associate +an,s. %he tas, !orce e0ol0ed a syste# si#ilar to that +eing e" eri#ented +y the State Ban, o! India. Once the SBI e" eriences are a0aila+le it #ight +eco#e easier !or the 0arious associate +an,s to re0ise and ado t the new syste#. %ill such ti#e these #ay continue to !ollow the traditional annual con!idential re ort !or# o! a raisals. In #ost o! the +an,s that !ollow the traditional syste#' their o!!icers are +eing assessed on the !ollowing characteristics. =a> general intelligence6 =+> $o+ ,nowledge6 =c> initiati0e and resource!ulness6 =d> su er0ision6 =e> +usiness ca acity6 =!> a+ility to assess sound +usiness ro ositions6 =g> de enda+ility6 =h> relationshi with $unior and senior colleagues6 =i> relationshi s with u+lic6 =$> socia+ility6 =,> a earance and dress6 =l> conduct6 =#> #anners6 =n> #anagerial a+ility6 =o> health6 = > s ecial a titudes6 =:> any signi!icant achie0e#ents6 and =r> !ailures that attracted issue o! warning +y su eriors. %hose o! the +an,s that ha0e already changed their a raisal syste#s ha0e nor#ally er!or#ance(related as well as trait(+ased a raisals. Se0eral o! the +an,s also ha0e sel!(a raisal as a art o! er!or#ance a raisal' although #ostly such sel!(a raisal is #ore o! a co##unication o! achie0e#ents. /or e"a# le' <llaha+ad Ban, has introduced a syste# that ai#s at hel ing o!!icers to identi!y their strengths and wea,nesses and encourage i# ro0e#ent o! er!or#ance on the $o+. In this syste# o!!icers are assessed in three s eci!ic areas. =a> $o+ er!or#ance6 =+> $o+ ,nowledgeEs,ills and ersonal characteristics6 and =c> otential a+ility and de0elo #ent. %he a raisal is to +e initiated +y the a raisee with a sel!(a raisal. In the sel!(a raisal' the a raisee gi0es details li,e the training courses attended' $o+ er!or#ance =de osits' ad0ances' ro!itEloss' etc.' !or +ranch #anagers' chie! #anagers and regional #anagers>' contri+utions #ade in the $o+ during the year' achie0e#ents' de!iciencies ointed out' training needs' areas o! a titude and interest !or !uture wor,' e!!orts #ade !or sel!(de0elo #ent and e!!orts ro osed to +e #ade' etc. 4atings are then gi0en +y the re orting o!!icer o! the a raisee on !actors relating to $o+ er!or#ance' $o+ ,nowledgeE s,ills and ersonal characteristics and otential a+ility and de0elo #ent. /or e"a# le' under $o+ er!or#ance each +ranch #anager has to +e assessed on 1- di!!erent !actors =de osits' ad0ances' ad0ances to riority sectors' ro!itEloss' :uality o! de osits' :uality o! ad0ances' osition regarding stic,y ad0ances' +alancing o! +oo,s' su+#ission o! i# ortant returns' reconciliation o! accounts with 4BIESBI' etc.' recti!ication o! irregularities' cash #anage#ent' sta!! #anage#ent' general ad#inistration and custo#er ser0ice> and an o0erall rating gi0en on that +asis. In relation to $o+ ,nowledgeEs,ills and ersonal :ualities each +ranch #anager has to +e assessed on eight di#ensions =,nowledge o! +an,ing law and ractice' ,nowledge o! +an,2s rocedures and instructions' general ,nowledge and intelligence' accuracy and de enda+ility' ti#eliness' ower o! e" ression' ersonality and +eha0iour' and disci line and unctuality> and an o0erall rating is to +e awarded. Under otential a+ility and de0elo #ent each +ranch #anager is to +e assessed under 1? !actors =initiati0e and resource!ulness' lanning and organising a+ility' decision(#a,ing a+ility' leadershi ' loyalty and de0otion to duty' integrity and honesty' health' a+ility to wor, under ad0erse circu#stances' s ecial wor, done' irregularities o+ser0ed' etc.> and an o0erall rating is to +e assigned. %he re0iewing authority can #oderate the assess#ent #ade +y the re orting o!!icer. %he Indian O0erseas Ban, has a syste# in which a +ranch #anager gi0es a sel!(a raisal on +usiness growth =de osits' ad0ances' ro!itEloss' etc.>' custo#er ser0ice' internal ad#inistration and training re:uire#ents in great detail. %he re orting o!!icer #a,es co##ents on each o! these areas and gi0es his !inal assess#ent using a !i0e( oint scale on se0en !actors =general intelligence' $o+ ,nowledge'#anagerial a+ility'+usiness de0elo #ent' u+lic relationsEcusto#er ser0ice' e" enditure control and de enda+ility>. <long with his assess#ent !or +ranch #anagers' the regional #anager is also e" ected to send +ranch ins ection re ort. %he Union Ban, o! India has an a raisal syste# in which the re orting o!!icer is re:uired to assess each o! his a raisee o!!icers on technical s,ills =consisting o! $o+ ,nowledge' $o+ er!or#ance' and de enda+ility>' hu#an s,ills =consisting o! e#otional sta+ility' ower o! e" ression' inter( ersonal relations and leadershi >' and conce tual s,ills =consisting o! #ental alertness and gras ing ower' $o+ relation' $udge#entEdecision(#a,ing' and initiati0e>. <ll these are de!ined !or di!!erent categories o! roles and the assess#ent has to +e #ade on a !i0e( oint scale. %he 3un$a+ National Ban, =3NB> has a ri#arily de0elo #ent( oriented a raisal !or#. %here are 17 di!!erent !or#ats a0aila+le !or 17 di!!erent categories o! e# loyees. 3NB has started with a sel!(a raisal syste# +y the a raisee. /or e"a# le' in the sel!(a raisal to +e #ade +y regional #anagersE<GMSEDGMS wor,ing in Kones they are re:uired to co##ent on the !ollowing. =i> Io+ satis!action in discharging duties during the re0iew eriod' =ii> Suita+ility o! duties to s,ills talent and ca acity' =iii> I# ortant achie0e#ents. G1

=i0> Bo# li#ents recei0ed or de!iciencies ointed out +y su eriors. =0> 1illingness to #o0e out o! the station on osting' =0i> %raining attended. =0ii> Growth needs and lans !or i# ro0ing ca a+ilities. In addition actual achie0e#ent !igures are to +e gi0en on +usiness indicators li,e de osits' ad0ances' riority sector ad0ances' sectoral distri+ution o! riority sector credit' ad0ances under D4IS' etc. In addition +rea,(u o! loosing o!!icers !or the ast two years and details o! 0arious acti0ities =li,e B4s o0erdue' sanctions o0erdue !or renewal' nu#+er o! co# laints outstanding' nu#+er o! o!!ices 0isited' nu#+er o! 0illages ado ted' etc.> are to +e gi0en. %he sel!(a raisal also includes a state#ent o! e!!orts ut in +y the a raisee !or +usiness de0elo #ent' control #easures and sta!! #atters. On the +asis o! this sel!(a raisal and his own assess#ent his re orting o!!icer is e" ected to rate the a raisee on growth o! +usiness' :uality o! ad0ances' de#onstrated #anagerial a+ilities =se arately on realistic +udget !or#ulation and su+#ission' sta!! control through delegation and de0elo #ent' de0elo ing #utual understanding and tea# s irit a#ong sta!!' clarity in instructions' u ward co##unication and others>' and 17 di!!erent :ualities dealing with otential and growth =$o+ ,nowledge' de enda+ility' co(o erati0eness' e#otional sta+ility' decision(#a,ing' initiati0e and resource!ulness' !le"i+ility' co##unication and creati0e a+ilities>. Si#ilar sel!(a raisal !or#ats ha0e +een introduced +y Bor oration Ban,' United Bo##ercial Ban,' Bentral Ban, o! India' Ban, o! India' Dena Ban,' and Ban, o! Baroda. Sel!(a raisals introduced +y these organisations 0ary !ro# a +rie! state#ent o! achie0e#ents during the year to +e #ade +y the a raisee to a so#ewhat detailed descri tion o! achie0e#ents on 0arious +usiness and other ara#eters. O! these +an,s' Ban, o! Baroda had so#e ti#e ago introduced an ela+orate de0elo #ent(oriented a raisal syste#. ;0ery a raisee =o!!icerEe"ecuti0e> is e" ected to initiate the a raisal rocess through !illing a sel!( er!or#ance recording !or#' In this the a raisee is e" ected to indicate. =a> his $o+ res onsi+ilities6 =+> his satis!action with the way he has +een a+le to carry the# out6 =c> his #a$or achie0e#ents6 =d> an analysis o! !actors re0enting +etter er!or#ance6 and =e> !actors that #ay hel hi# to +e a +etter er!or#er =$o+ rotation' training' etc.>. %he re orting o!!icer is e" ected to rate his wor, er!or#ance !actors =!or e"a# le' under ad0ances se0en di!!erent !actors are s elt out in the !or# and !or house(,ee ing eight di!!erent !actors are s elt out in the !or# !or accountantsE+ranch #anagers>. De#onstrated #anagerial a roach =!or e"a# le' ?7 di!!erent !actors are s elt out under the headingsH lanning' organising' sta!!ing' directing and controlling> and de0elo #ent as ects =!or e"a# le' 17 di!!erent di#ensions li,e readiness to learn' ,nowledge' conce tual s,ills' decision(#a,ing' stress tolerance' creati0ity' initiati0e.etc.' were s elt out !or +ranch #anagers>. In addition to these' reco##endations are to +e #ade !or training' etc. < s ecial !eature o! the a raisal syste# in BOB is the re:uire#ent !or er!or#ance re0iew discussions to +e conducted +y the re orting o!!icer a!ter his a raisal. < art !ro# the State Ban, o! India where counselling is +eing e" eri#ented' the Ban, o! Baroda ro+a+ly is the only +an, ha0ing a re:uire#ent o! er!or#ance re0iew discussion as a art o! the a raisal syste#. <s the discussion so !ar indicates' the +an,ing sector is #a,ing serious e!!orts to ha0e syste#s o! a raisal that i# ro0e their e!!iciency' e!!ecti0eness and i#age through de0elo #ent o! their e# loyees. In the ne"t !ew years they are li,ely to rogress !urther in the direction o! #ulti(o+$ecti0e and #ulti(co# onent(+ased o en syste#s o! a raisal.

#$periences of the Last 'ecade


%he e" eriences o! Indian organisations in the 1**7s are ca tured in a round ta+le con!erence conducted +y the <cade#y o! Hu#an 4esources De0elo #ent in 1**-. %he e" eriences are su+se:uently u+lished in 4edesigning 3er!or#ance < raisal Syste#s +y 4ao and 3aree, =1**G>. %he !ollowing are so#e o! the highlights o! the changes that ha0e ta,en lace i##ediately a!ter li+eralisation. %he e# hasis o! the new de0elo #ent a raisal syste# at <BB is on si" #a$or as ects which include lanning the $o+ !or the ensuing year' counselling !or de0elo #ent' tea# er!or#ance' rocess ara#eters' and training and internal custo#er !ocus. %he new syste# at <BB is +ased on the re#ise that the organisation has eo le at all le0els that are ca a+le o! #a,ing #eaning!ul contri+utions to o0erall tea# er!or#ance. %he changes in the er!or#ance a raisal syste# at ;icher re!lect the #aturing o! the hu#an resource !unction. %he e# hasis in recent years has +een on :uality' tea#wor, and the rocess o! de0elo #ent. ;icher has done away with ter# a raisal and is !ocussing on de0elo #ent re0iew. %he Grasi# Industries o! <ditya Birla Grou was gearing itsel! towards en0iron#ental changes through introduction o! #ore artici ati0e a raisals. %he current syste# has #o0ed !ro# the trait(oriented su+$ecti0e syste# to a #ore o+$ecti0e !or#. <t Hindalco another <ditya Birla Grou co# any the !ocus o! the a raisal syste# is on rewards as a raisal dissociated !ro# reward is o!ten !ound to +e ine!!ecti0e. %he a raisal syste# at IBIB1 highlights a ractical de0elo #ent a roach and eer a raisal is co# onent and re0erse a raisal are one o! its noteworthy !eature. %he er!or#ance a raisal syste# at I& J /S is a er!or#ance lin,ed reward syste#. I& J /S +elie0es that G?

an a raisal is #ost e!!ecti0e when the e# loyee a raises hisE her own er!or#ance. %hey are also i# le#enting a er!or#ance related ay syste# in which there will +e ways o! assessing organisational er!or#ance' tea# or de art#ental er!or#ance and si#ultaneously indi0idual er!or#ance. &J%' one o! the ioneers in the H4D syste# in the Indian industry has a well researched and !re:uently re0iewed syste#. %he er!or#ance a raisal syste# there has undergone three #a$or hases o! #odi!ication' in0ol0ing changes in rating scales' critical attri+utes' additions and deletions' changes in resentation style and so on. %he a raisal syste# at %;&BO is MBO(+ased and the rocess is #ostly closed. But still the a raiser and the a raisee get a chance to discuss the result ortion o! the a raisal and also arts o! the de0elo #ent lan. %he S<I& syste# o! a raisal is !airly ela+orate6 the #ain stages o! which include sel!(a raisal' er!or#ance re0iew and lanning' er!or#ance assess#ent' assess#ent +y re0iewing o!!icer' ri#ary grading' er!or#ance re0iew co##ittee J de0elo #ent lan. %he resent syste# o! a raisal o! Bo,aro Steel lant has +rought a+out great o+$ecti0ity in the assess#ent o! e"ecuti0es against re(set tas,s and targets. U%I has ado ted an a raisal syste# whose ai# is to ri#arily de0elo the +oss(su+ordinate relationshi . Broadly the er!or#ance a raisal syste# has three arts' !irst !ocuses on sel!(a raisal o! er!or#ance' second !ocuses on con!idential as ect o! otential as well as traits and third art is a re0iew o! the a raisal. %he Cisha,ha atna# steel lant o! the 4ashtriya Niga# &td. has introduced a new de0elo #ent(oriented a raisal syste#. Its #ain co# onents are target(settingEtas, assign#ent' eriodic er!or#ance #onitoring and !eed+ac,' sel!(a raisal and discussion' identi!ication o! training and de0elo #ent needs and er!or#ance assess#ent. BMB &td' a leading 3SU in the I% sector also has an a raisal syste# that !ocuses on the de0elo #ent o! e# loyees called the er!or#ance and de0elo #ent re0iew =3D4> syste#. %he three #ain arts o! it are er!or#ance lanning' er!or#ance re0iew and de0elo #ent re0iew. So#e o! the distincti0e !eatures which #a,e it a #ore e!!ecti0e #echanis# include e# hasis on lanning and de0elo #ent' the rocess' lanning !or de0elo #ent' de0elo #ental role o! #anagers and eriodic interaction and !ollow(u . Modi Xero" one o! the leading ro!essionally #anaged co# anies in India had its er!or#ance #anage#ent syste# lin,ed to career de0elo #ent' succession lanning and #anage#ent o! #oti0ation through rewards. <t Modi Xero"' the er!or#ance lanning and a raisal is +ased on the 44Os =co# any2s roles and res onsi+ilities>' which are !illed !or e0ery a raisee. %he !our goals areas ta,en are custo#er satis!action' e# loyee satis!action' +usiness results and :uality. %he er!or#ance lanning and a raisal also centres around de0elo #ent action lanning =D<3>.

In the later cha ters issues such as su+ordinate a raisals'their !easi+ility' e" eriences o! Indian organisations so !ar and suita+ility o! u ward a raisals to Indian organisations is tal,ed a+out. %he closest u ward a raisals in our country are the syste# !ound in higher educational It institutions in which student a raisals o! !aculty are conducted. %he #ain criticis# against su+ordinate a raisals is that they cannot +e co# rehensi0e and o+$ecti0e. <t the end an o0er0iew o! the er!or#ance a raisal syste# in other countries is resented. %he international trends indicate that the ro+le#s and concerns o! Indian organisations are in no way uni:ue to the#. Since a raisals deal with hu#an +eings to the e"tent that hu#an concerns and ro+le#s cut across +oundaries o! nations and societies' the issues o! a raisals and the ro+le#s also see# to cut across the +oundaries. In the area o! er!or#ance a raisals' the #o0e#ent !ro# a to (down a roach to a co# letely e# loyee(cent red a roach is al#ost co# lete with the realisation that the a raisee is the #ost critical co# onent o! any er!or#ance a raisal syste#s.

Managerial preferences and attitudes to appraisals


Gi0en the a+o0e trends o! a raisals in the Indian organisations let us now e"a#ine the #anagerial reactions and re!erences. < raisal syste# de ends u on how well the users o! the syste# understand the ur oses' acce t these and stri0e to achie0e these ur oses. <lso in designing any syste# #anagerial re!erences should +e ta,en into consideration. So#e e0idence is a0aila+le !ro# un u+lished sur0eys conducted in the last !ew years on the reactions o! #anagers to the e"isting syste#s o! a raisal and their re!erences. Mostly such studies are conducted !or internal consu# tion +y industry and there!ore these are not widely u+licised. So#e o! the o+ser0ations !ro# these sur0eys and e" eriences o! the author !ro# 0arious a raisal wor,sho s and training rogra##es are resented +elow. Sur0eys conducted see,ing the o inions and re!erences o! #anagers indicate that #anagers the#sel0es are interested in o en a raisal syste#s. <s !ar +ac, as in 1*7A when the author was in0ol0ed in designing a new er!or#ance a raisal syste# !or #anagers o! a large ri0ate sector co# any' a nu#+er o! #anagers =a+out -7> were inter0iewed. %here was dissatis!action e" ressed uni!or#ly +y all o! the# to the closed syste# o! a raisal e"isting at that ti#e in that co# any. ;ach o! the #anagers wanted to ,now what their +oss thought G@

o! the# and their strengths and wea,nesses in er!or#ing 0arious tas,s. %hey wanted #ore co##unication !ro# their re orting o!!icers to hel the# i# ro0e their er!or#ance. In another sur0ey conducted +y the author in 1*7) at a large u+lic sector co# any ha0ing a con!idential re ort !or# o! er!or#ance a raisal' a+out *) er cent o! the -)) o!!icers sur0eyed !elt that the a raisal syste# should hel the# recognise their strengths and wea,nesses. < !airly high ercentage o! the# =o0er G7 er cent> recognised that it is 0ery di!!icult to ha0e an o+$ecti0e assess#ent in any !or# o! a raisal +ecause hu#an !actors are always in0ol0ed. Interestingly a+out -7 to G7 er cent o! the# !ro# di!!erent le0els indicated that e0en in the con!idential !or# o! a raisal their re orting o!!icers co##unicate their erce tions o! the strengths and wea,nesses o! the a raisee to hi#. Howe0er' a+out )) er cent o! the# wanted to ,now #ore !ro# their +oss. In this organisation an o en a raisal syste# o! the ,ind discussed in this +oo, was introduced su+se:uently on an e" eri#ental +asis. < year a!ter introducing the new syste# a second sur0ey was conducted to assess the o inions o! o!!icers. %he sur0ey indicated the !ollowing. 1. <+out G@ er cent o! the o!!icers stated that they were willing to show the !ull re ort to their a raisees while the re#aining re!erred not to show the !ull re ort. ?. Howe0er' )A er cent o! the# re!erred to ha0e er!or#ance re0iew discussions and the re#aining were against any such discussion. @. <+out -@ er cent o! the# re!erred trait(+ased assess#ent o! their su+ordinates to er!or#ance(+ased assess#ent. =It was ro+a+ly easier to assess the# on traits where there could +e less argu#ents. 3er!or#ance or tas,(+ased assess#ent also holds the re orting o!!icer res onsi+le +y su lying the in!rastructural assistance.> %he a0erage ti#e the o!!icers !elt that they could s end on each a raisal was a+out @7 to A7 #inutes. In a sur0ey conducted in $yoti &i#ited' Baroda' 77 #anagers res onded to a :uestionnaire on er!or#ance a raisal syste# =Gangotra' 1*)@>. O! these' @7 res onded as a raisers and @@ res onded as a raisees. Iyoti2s ha0e an e0aluation syste# re:uiring each a raiser to assess his su+ordinates on er!or#ance(related :ualities =e.g.' lanning' s eed and accuracy' ro# t decision(#a,ing' contri+ution o! new ideas' $o+ ,nowledge' etc.>. <!ter co# leting his assess#ent' each a raiser is e" ected to discuss with his a raisee +e!ore the !or# is sent to the re0iewing o!!icer and then the ersonnel de art#ent. %he sur0ey re0ealed the !ollowing. 1. <+out *A er cent o! the a raisers stated that they always gi0e a !or#al !eed+ac, whereas only @G er cent o! the a raisees said that they are 1. . +eing gi0en !eed+ac,. ?. Only 17 er cent o! the res ondents stated that the assess#ent should +e ,e t con!idential !ro# the e# loyee. @. <+out )A er cent o! the res ondents !elt that the o inion o! the a raisee also should +e recorded on the a raisal !or# a!ter co# leting a raisal. A. <+out 7@ er cent res ondents re!erred to ha0e sel! a raisal as a art o! the syste#. -. <+out )G er cent o! the res ondents did not thin, that gi0ing ositi0e andEor negati0e !eed+ac, would reduce #oti0ation. Howe0er' *? er G. cent !elt that their su+ordinates do react to negati0e !eed+ac,. <t the sa#e ti#e )A er cent !elt that such a !eed+ac, should +e gi0en' 7. <+out @? er cent res ondents s ent less than 1- #inutes on each a raisal. In all a+out 77 er cent too, less than an hour !or each a raisal including discussions. ). <+out 7@ er cent o! the res ondents re!erred to rate their a raisee on the #ain areas o! wor, assigned to hi# rather than on general :ualities. *. <ll the res ondents =177 er cent> wanted to ,now their areas o! wea,ness re:uiring i# ro0e#ent. 5ul,arni' Nangia and 3ra,asa# =1*)7> o! the National Institute o! Ban, Manage#ent conducted nation(wide o inion sur0ey o! the +an, e# loyees o! 0arious ersonnel issues. %heir sur0ey o! G')77 +an, e# loyees drawn !ro# 0arious nationalised +an,s re0ealed the !ollowing erce tions and re!erences with res ect to er!or#ance a raisal ractices. 1. Only a+out 1A er cent o! the e# loyees stated that they were aware o! the +asis on which their su er0isor e0aluated their wor, in the annual con!idential re orts. O! the re#aining' -- er cent had no idea at all o! the criteria used and @1 er cent had so#e general idea +ut not aware o! any s ecial criteria. ?. <+out G) er cent o! the e# loyees !elt that the data !illed in the <nnual Bon!idential 4e orts do not !ocus on the $o+ er!or#ance. @. <+out 7@ er cent o! the e# loyees !elt that the a raisee should +e inter0iewed a+out his er!or#ance and gi0en an o ortunity to ro0ide in uts !or his er!or#ance assess#ent.

GA

3eneral Trends
< series o! wor,sho s and training rogra##es were organised +y the author at the Indian Institute o! Manage#ent' <h#eda+ad. Starting !ro# 1*7* three wor,sho s and training rogra##es were arranged' More than 177 e"ecuti0es !ro# ri0ate and u+lic sector industries' ser0ice institutions and +an,s artici ated in these rogra##es. %he artici ants were !ro# ersonnel and training de art#ents as well as line !unctions. In each o! these rogra##es the artici ants discussed a+out the a raisal syste# !ollowed in their res ecti0e organisations' resenting their erce tions o! the #erits and de#erits o! these syste#s and sharing the thin,ing o! their organisations relating to the !uture o! er!or#ance a raisal in their organisations. /ro# the deli+erations and e" eriences shared in these rogra##es the !ollowing conclusions could +e drawn a+out the situation o! er!or#ance a raisal syste#s in India in the eighties. 1. < siKea+le nu#+er o! ri0ate and u+lic sector organisations continue to !ollow trait(+ased' con!idential !or#ats o! er!or#ance a raisal. ?. <l#ost all o! the#' howe0er' are dissatis!ied with such !or#s o! a raisals' articularly !or assessing #anagers. @. %heir dissatis!action arises #ainly !ro# the !ollowing !actors. high su+$ecti0ity in a raisals' lac, o! correlation with $o+(related !actors' the a raisee not ha0ing an o ortunity to ro$ect his er!or#ance' the a raisee so#ehow getting to ,now a+out his ratings and di#inishing 0alue o! a raisal as an instru#ent o! controlling or #onitoring e# loyee +eha0iour' A. 1ith increased recognition +eing gi0en to the ersonnel !unction' a !ew organisations ha0e already +egun to e" eri#ent with the new syste#s o! a raisal. Such e" eri#ents which are ta,ing lace +oth in the ri0ate and the u+lic sector are !ocussing on the role o! a raisals as instru#ents !or de0elo ing hu#an resources. -. < !ew organisations that ha0e #erely changed the !or#at o! a raisals !ro# closed to o en ones' and introduced the# without reorienting the #anagers to the new syste#s ha0e run into serious di!!iculties. /or e"a# le' introducing counselling as a art o! a raisal without training the #anagers in counselling s,ills' introducing o en assess#ent without ha0ing a co##itted H4D hiloso hy' etc.' ha0e resulted in ro+le#s !orcing a rethin, a+out the new a raisal syste#s. G. Managers want o en syste#s o! a raisals and the ersonnel de art#ents are still struggling to !ind a raisal #odels suita+le !or their organisations. 7. ;# loyees also want o en a raisal syste#s' +ut their reasons !or see,ing it are conditioned +y the #anager2s assess#ent o! their er!or#ance and only i! it does not wor, to their disad0antage. Most o! the# still do not recognise the !ull otential o! good a raisal syste#s. ;0en those who recognise the otential o! a raisal syste#s' acce t the de0elo #ent o+$ecti0e intellectually +ut !ind it di!!icult to ractise it s,il!ully due to #oti0ational and e#otional +loc,s. ). < large nu#+er o! #anagers still see# to +e e"cessi0ely oriented to as, the :uestion 2what a# I going to get !ro# the new a raisal syste#92 rather than as,ing the :uestion2how do I use this syste# to de0elo #y su+ordinates and to increase #y own #anagerial e!!ecti0eness92. *. < large nu#+er o! e"ecuti0es including those at senior le0els see the role o! de0elo ing hu#an resources as #ainly that o! the ersonnel or the H4D de art#ents. %his lac, o! recognition o! their H4D role re0ents #ost e"ecuti0es !ro# e!!ecti0e use o! de0elo #ent(oriented a raisal syste#s whene0er they are +eing introduced. %his #anagerial culture should change !or the new syste#s to +eco#e #ore use!ul. Such change is only +eginning now and #ay ta,e ti#e. 17. In so#e o! the organisations the sy#+ols are ta,en #ore seriously than the ur ose or the s irit +ehind these. /or e"a# le' i! the a raisee is re:uired to sign on the !or# as an indicator that he had discussion with his a raiser' the signature +eco#es #ore i# ortant than the discussion. Si#ilarly !or# !illing +eco#es #ore i# ortant than the rocess o! !illing it. 3ersonnel de art#ents are still struggling to o0erco#e such ro+le#s. /uture o! 3er!or#ance < raisals

%here is a great degree o! awa,ening ta,ing lace in the #anagerial world a+out the otential uses o! er!or#ance a raisals. %he role they can lay in de0elo ing e# loyee ca a+ilities' creating an o en culture' strengthening su erior(su+ordinate relationshi ' de0elo ing rocess s,ills and a0ing the way !or increased #anagerial and organisational e!!ecti0eness is +eing slowly recognised. Unli,e in the 1est where training is ercei0ed as the #ost i# ortant #echanis# o! de0elo ing e# loyees' in India a raisal syste#s are +eing recognised as an e:ually =and so#eti#es a #uch #ore> otential tool !or de0elo #ent. In the co#ing decade there is li,ely to +e #ore and #ore e" eri#entation with new a raisal syste#s that contri+ute to i# ro0e#ents in the :uality o! wor, li!e as well as to the de0elo #ent o! hu#an resources. %he seeds ha0e already +een sown at se0eral laces.

Chapter <
G-

Making Performance Management %,stems and Appraisals Work


I! 3MS has to wor, the !irst #ost i# ortant ste re:uired is to change the !ocus !ro# a raisal to er!or#ance lanning' re0iew and de0elo #ent. %he !ocus should shi!t the 3MS rocess and the o+session with a raisals should sto . < raisals should +e gi0en their due lace. I! the !ocus is on a raisal then the ercentage o! returns o! !illed in !or#s' o+$ecti0ity in assess#ents' rewards' etc. will +eco#e areas o! ri#ary concern. Issues li,e er!or#ance i# ro0e#ents and co# etency +uilding' gaining co# etiti0e ad0antage and ta,ing u new challenges will recede to the +ac,ground. 3er!or#ance #anage#ent and a raisal syste#s were not +eing rated as success!ul in our country !or :uite so#e ti#e. %he situation is changing slowly. 3er!or#ance a raisals will ne0er succeed anywhere in the world i! success is #easured +y 177 er cent ti#ely returns o! !or#s and 177 er cent e# loyee satis!action with a raisals. <s long as hu#an +eings are assessed +y others' a certain degree o! su+$ecti0ity can ne0er +e eli#inated. < raisers will continue to assess their a raisees in the light o! their own e" eriences' erce tions' understanding' insights 0alues' and attitudes. <s no two ersons2 ers ecti0es will +e the sa#e' there are always li,ely to +e di!!erences in assess#ent e0en when they assign the sa#e rating =nu#+er> to the a raisee. So long as such di!!erences e"ist' a raisees will continue to +e dissatis!ied with their a raisers although they #ay +e highly satis!ied and de!end the#sel0es as a raisers. Hence' there can ne0er +e 177 er cent satis!action with a raisals. Such dissatis!action with er!or#ance a raisals is li,ely to +e high in organisations that lin, a raisals with salary and other !or#s o! rewards. %his dissatis!action is li,ely to +e e0en higher when so histicated and o en syste#s o! a raisals are used. %his is +ecause so histicated syste#s raise #anagerial e" ectations in unnoticea+le ways. Most e# loyees would not li,e to ad#it to the#sel0es or to others that their er!or#ance has not +een worthy o! reward. So e0eryone e" ects so#e !or# o! recognition. %hose who ha0e +een ignored !or so#e reason or the other also start e" ecting so#e !or# o! recognition when new a raisal syste#s are introduced. %heir yardstic, !or #easuring the goodness o! the new a raisal syste# is deter#ined +y the e"tent to which their ersonal e" ectations are #et. In those cases where such e" ectations are not #et' there #ay +e greater dissatis!action. In cases where their e" ectations are #et' #anagers rarely s ea, loudly. But in cases where there is dissatis!action' e# loyees #ay e" ress the#sel0es loudly' clearly' and o enly' artly +ecause the new a raisal syste# also clai#s to ro#ote o enness. So' what gets tal,ed a+out in the organisational gra e0ine is the disa oint#ent with the new syste# rather than the good things it has done. <t an intellectual le0el and in discussions a#ong the#sel0es and with consultants' #anagers agree that the new syste#s ha0e +rought in a lot o! role clarity' #ore inter ersonal as well as organisational co##unication that aids their e!!iciency and e!!ecti0eness' greater understanding +etween the# and their +osses as well as su+ordinates' #ore o! ro+le#( sol0ing' and a +etter a reciation o! their strengths and wea,nesses. Howe0er' at an e#otional le0el' se0eral o! the# #ay continue to !eel a#+i0alent or ha0e negati0e 0iews. %his is +ecause e#otionally rewards and recognition o! their wor, are #ore i# ortant and the new a raisal syste# +y itsel! #ay not +e a+le to !ul!il this need. I! an organisation decides to delin, a raisal !ro# rewards and decides to use it only !or de0elo #ent ur oses' #anagers do not artici ate acti0ely in the a raisal rocess resulting in oor return o! !or#s to H4D de art#ent. It a ears that e0en !or Indian #anagers at the to ' growth needs a ear to +e o! #uch less i# ortance and e#otionally less #eaning!ul than recognition. So#ewhere in our organisational li!e' the de0elo #ent needs ha0e +een star0ed and recognition needs ha0e +een o0er layed. Gi0en this situation' it is sa!er to conclude that er!or#ance a raisal syste#s are not li,ely to succeed in our country !or so#e #ore ti#e i! satis!action and return o! !or#s are ta,en as indicators. Managerial #aturity has to rise to the le0el where #anagers start !eeling the need to de0elo their ca a+ility as #anagers #uch #ore intensely than their need !or 2recognition2 and 2status2. How do we reach that stage9 %he rocess has already +egun. < decade ago we rarely tal,ed o! er!or#ance a raisal as a #eans !or e# loyee de0elo #ent. %oday' #ost organisations are restating their o+$ecti0es o! er!or#ance a raisals to include de0elo #ent. New er!or#ance #anage#ent syste#s li,e the one descri+ed in this +oo, are +eing e" eri#ented with. %he ne"t decade is going to +e a decade o! transition. .More and #ore organisations are li,ely to e" eri#ent with new a raisal Syste#s. It is i# ortant to #anage this transition. 1e should recognise the ro+le#s that are li,ely to arise during this eriod. In this cha ter' an atte# t is #ade to highlight so#e o! these ro+le#s o! transition that organisations are li,ely to !ace as they switch(o0er !ro# closed and control(oriented to o en and de0elo #ent(oriented a raisals. Unless these ro+le#s are recognised and discussed' organisations will +e una+le to #a,e e!!ecti0e use o! such a otential instru#ent li,e er!or#ance a raisal. %hese ro+le#s can +e concei0ed in ter#s o! the to #anage#ent2s res onse' #anagerial res onses' the role o! ersonnel and H4D de art#ents' union reactions and organisational res onses to the new a raisal syste#s.

Top Management (esponse to -e= Appraisal %,stems


GG

/or the new a raisal syste#s to +e success!ul' a high degree o! co##it#ent is re:uired !ro# the to . %he to #anage#ent should. 1. ?. @. A. -. 4ecognise the lin, +etween de0elo #ent o! the ca a+ilities o! their e# loyees and organisational growth and dyna#is#. 4ecognise the need to ay s ecial attention to the de0elo #ent o! hu#an resources in directions that !acilitate the achie0e#ent o! organisational o+$ecti0es and growth lans. Deter#ine the e"tent to which hu#an ca a+ilities can +e de0elo ed and #ulti lied and the condition re:uired to +e created in the organisation !or nurturing the de0elo #ent and utilisation o! hu#an ca a+ilities. 4ecognise their res onsi+ility in hu#anisation o! organisational en0iron#ent to #a,e the e# loyees !eel that the organisation where they wor, and s end a large art o! their wor,ing li!e is theirs and realise that it is their second !a#ily and that they are ta,en note o!' 0alued and cared !or. ;ncourage their #anagers at all le0els and articularly those at senior le0els to recognise their hitherto neglected role o! de0elo #ent o! their su+ordinates and should release a art o! their ti#e !or in0est#ent on hu#an resources de0elo #ent. During the transition eriod' they should +e a+le to #a,e a su+stantial in0est#ent o! #anagerial ti#e !or this ur ose. ;ncourage u ward co##unication in the organisation' +e willing to recei0e negati0e !eed+ac,' 0iew such !eed+ac, with understanding and use it !or correcti0e action. Be willing to e"a#ine their ersonnel olicies and strea#line the#' i! necessary' to +e in consonance with their hu#an resources de0elo #ent hiloso hy and olicies. Should ha0e the ca a+ility to recognise and a reciate the not so easily noticea+le changes. %his is +ecause the ositi0e conse:uences o! ado ting an H4D hiloso hy and introducing new a raisal syste#s #ay not +e noticea+le in ter#s o! 0isi+le sy# to#s li,e i# ro0ed roducti0ity' ro!its' and cost(reduction in short eriods. %here #ay +e less 0isi+le changes li,e #ore ro+le#(sol0ing at di!!erent le0els' #ore healthy inter( ersonal relationshi s6 increased #anagerial con!idence' greater initiati0e' +etter #anagerial action' strong su erior su+ordinate relationshi s' less tension and #ore role clarity. Such changes #ay not occur in short eriods o! ti#e and #ay not also +e noticea+le unless ro0ed. %hey should +e willing to state o enly and clearly the culture they want to esta+lish in the organisation' the 0alues they want to ro#ote and the rocesses they would li,e to encourage. %hey should then ro#ote this +y setting ersonal e"a# les !or others to !ollow.

G. 7. ).

*.

Managerial (esponse to -e= Appraisal %,stems


I! the new a raisal syste#s do not wor,' it is #ost li,ely to +e attri+uta+le to the #anagers. %he #anagers who do not li,e con!idential re ort !or# o! a raisals' who e" ress their re!erence !or o en syste#s that gi0e the# a !eed+ac, a+out their strengths and wea,nesses' as seen +y their re orting o!!icers' !ail to use the# ro erly to their ad0antage when they are actually introduced. Managers tend to sa+otage their own de0elo #ent when o ortunities arise. I! new a raisal syste#s ha0e to succeed' the #anagers at e0ery le0el should recognise their own role in #a,ing the# success!ul. By ta,ing a negati0e stance' #anagers !ail to e" erience the !ull ad0antages o! the syste#. %tance 1: F)ur organisational culture should change .efore =e introduce such s,stems/ We are not ,et read, for an open s,stem/F Managers who ta,e such a stance ercei0e that there is not enough o! o enness and trust in the organisation to +e a+le to discuss er!or#ance o enly with the a raisee. %his is artly a re!lection o! their own insecurity in discussing the er!or#ance o! their su+ordinates with the# or a lac, o! !aith in their seniors to gi0e er!or#ance !eed+ac, without hurting the !eelings. %his is a 0ery understanda+le situation. Managers should recognise how their own insecurity or lac, o! trust leads the# to 0iew the i# le#entation o! the syste# sus iciously or with essi#is#. It is true that a certain #ini#u# le0el o! o enness and trust is re:uired to use de0elo #ent(oriented o en syste#s. How does one +uild trust and o enness9 I! one has %o wait !or the day when such a cli#ate is created' the day #ay ne0er co#e. %he +est way to create a cli#ate o! o enness and trust is +y +eing o en and trusting. %he new syste# should +e ta,en as an o ortunity to initiate a new culture in the organisation or to strengthen the already e"isting culture rather than wait !or a day o! change which #ay ne0er co#e i! the #anagers do not wor, towards it. < related issue in this conte"t is whether to introduce syste#s !irst to initiate certain new rocesses or to initiate the rocesses the#sel0es !irst and introduce syste#s later. So#e argue that +e!ore new a raisal !or#ats are introduced' the #anagers should +e hel ed to initiate counselling' inter ersonal !eed+ac, and co##unication rocesses. Only a!ter such rocesses are esta+lished should the new syste#s +e introduced. 1hile there is so#e #erit in this argu#ent' the counselling' inter( ersonal !eed+ac, and co##unication rocesses do not stand +y the#sel0es. %hey ha0e to ta,e lace in a conte"t and such a conte"t has to +e ro0ided +y the G7

de0elo #ent(oriented a raisal syste# itsel! with all its co# onents. I! counselling and co##unication rocesses are introduced inde endently' then #anagers are li,ely to as, the sa#e :uestion. 21hy introduce this now92 No dou+t there are ro+le#s and di!!iculties associated with initiating new rocesses through syste#s +ut the alternati0es are ti#e(consu#ing and are not encouraging. Howe0er' the ossi+ilities are not ruled out co# letely. In highly traditional organisations so#e rocesses #ay +e introduced !irst +e!ore syste#s in0ol0ing rocess change are introduced. %tance 2: FTop management is not committedF or FThere should .e more commitment from the top/F Managers who ta,e this stand generalise either out o! their li#ited o+ser0ations or s ea, out o! their ast !rustrations and disa oint#ent with to #anage#ent. I! so#eone at the to is unha y o0er the !act that things are not #o0ing and too #uch attention is +eing aid to er!or#ance a raisals' the e"ecuti0es use this as an e"cuse !or not s ending enough ti#e on a raisals. Managers should recognise what they can e" ect !ro# the to #anage#ent in realistic ter#s.%he cor orate #anage#ent is not in the +usiness o! #a,ing a raisals success!ul. %hey would ha0e a nu#+er o! other things to attend to in order to ,ee the organisation #o0ing. Managers who e" ect the# to ta,e a high degree o! interest in a raisals are +eing unrealistic in their e" ectations. %o #anage#ent need not =and in !act should not> go on issuing circulars as,ing e"ecuti0es to co# lete their a raisals on ti#e. Nor should they +e s ending their ti#e ro erly i! they start tele honing those who ha0e not co# leted a raisals. It is the $o+ o! the ersonnel de art#ent. In one organisation where the new syste# was introduced' se0eral e"ecuti0es dou+ted the seriousness o! the to #anage#ent. In that organisation' the chair#an hi#sel! was the !irst to use the new a raisal syste# and co# lete his a raisals and counselling discussions. Not ,nowing this' they continued to delay their a raisals loo,ing !or instructions !ro# hi#. %he chair#an hi#sel! was u set and started wondering whether the syste# should +e continued gi0en the oor res onse o! #anagers. %his illustrates clearly how #anagers can ,ill inno0ations that are li,ely to +ene!it the# +y loo,ing !or greater co##it#ent !ro# others. I! the to #anage#ent shows a high le0el o! co##it#ent' then #anagers #ay say 2It is the to #anage#ent2s syste#. %hey are interested in it' +ut why should I +e interested92 %hus' whate0er the to #anage#ent does can +e held against the syste#. Unless e"ecuti0es realise what they are doing' the syste#s are not li,ely to succeed. < related concern is when #anagers say that 2such syste#s should start !ro# the to . No dou+t that the senior and to le0el #anagers should start using the syste#. Howe0er' it should not co#e in the way o! others starting it. Unless e!!orts are #ade si#ultaneously at all le0els it #ay +e di!!icult to sta+ilise the syste#. Managers should learn to as, the :uestion 2how can I use this syste# !or #y own learning and growth92 rather than as,ing 2how are others reacting to this syste#92 %tance !: FPromotion policies0 re=ard policies0 transfer policies and support mechanisms should .e streamlined .efore introducing this s,stemF 1hen new er!or#ance a raisal syste#s are introduced' they are introduced with certain ur oses. %hese #ay or #ay not ha0e any relationshi with other ersonnel olicies. Nor#ally' they do ha0e a relationshi +ut so#eti#es they do not. /or e"a# le where new 3< syste#s are introduced as a art o! an integrated H4D lan' otential a raisals are se arated and rewards are delin,ed. 3ro#otion decisions are #ade #ainly on the +asis o! otential a raisal and ta,e into consideration er!or#ance a raisal re orts also. < de0elo #ent( oriented er!or#ance a raisal is lin,ed to training' $o+ rotation' lace#ent' ro#otion' trans!er and such other decisions. %he a raisal data ro0ide in uts !or these. Unless the in uts are generated' it #ay +e di!!icult to strea#line other syste#s. 1hile to #anage#ent and ersonnel de art#ents should ta,e note o! this and act on this' #anagers should +e atient. %hey should not ut the cart +e!ore the horse and insist on strea#lining other things as a re(condition !or introducing new 3< syste#s. %tance ": FTop managementFs st,le should change/F In so#e organisations where to le0el #anagers ha0e authoritarian or coerci0e styles' #anagers start arguing that these styles should change in order to #a,e the new syste# success!ul. < #anager2s style cannot change o0ernight. Styles are consistent atterns o! +eha0iour ac:uired o0er ti#e. <wareness o! such consistencies and an e"a#ination o! their i# act on the organisational health and #orale is the !irst ste in change. 4ecei0ing !eed+ac, !ro# those a!!ected +y the styles hel s in creating such awareness. De!ensi0eness is li,ely to +e higher at the to le0els than +elow. So change #ay ta,e a longer ti#e. In !act' change #ay +e re:uired at e0ery le0el and' instead o! waiting !or others to change' #anagers should start the rocess the#sel0es at their own le0els. G)

%tance 6: FAoss+su.ordinate distance ma, decrease resulting in loss of control o4er su.ordinatesF Duite o!ten o en syste#s o! a raisal are inter reted as ro#oting 2so!ter2 a roaches to deal with e# loyees. %his is not really so. %his !eeling arises +ecause o! the so!tness and understanding =e# athy' acce tance' listening to !eelings and concerns> re:uired to +e shown +y #anagers in counselling. Bounselling is a art o! the a raisal rocess. < raisal itsel! is a #echanis# o! achie0ing so#e o! the rocess o+$ecti0es. ;ither counselling or er!or#ance a raisal are not su+stitutes !or2e"ecuti0e action or 2ad#inistrati0e action2. I! erring e# loyees ha0e to +e dealt with ad#inistrati0ely or through e"ecuti0e actions li,e warning the e# loyees' ointing out their de!ects and trans!erring the#' they should continue to do so. Iust +ecause there is a new syste# o! a raisal' all other !or#s o! hu#an resource #anage#ent should not +e sus ended. In !act the new a raisal syste# should !acilitate the e!!ecti0e use o! e"ecuti0e2 and 2ad#inistrati0e2 actions. Managers should +e clear a+out this and continue to e"ercise their e"ecuti0e owers whene0er needed. %as,(orientation co#+ined with a hu#an touch is li,ely to strengthen the res ect and co##it#ent o! su+ordinates to their +osses rather than wea,en it. %tance :: FKPAs is another form of achie4ing .usiness goals of the organisation and the ne= appraisal s,stem is another =a, of making us =ork hard/ ;# loyees who as, such :uestions see# to +e shying away !ro# hard wor, or are sus icious o! the intentions +ehind the introduction o! the syste#. %he ur ose o! 53<s is to +ring a+out greater role clarity and ensure a co##on understanding +etween the a raiser and the a raisee !ro# the +eginning. %he ur ose o! identi!ying o+$ecti0es is to esta+lish #utually acce ta+le wor, standards that #ay reduce su+$ecti0ity in the !inal assess#ent. %his !or#s the +asic !ra#ewor, =tas, !ra#ewor,> in relation to which de0elo #ent e!!orts =identi!ying ca a+ility ga s and training needs> are to +e directed. 1ithout these a shar er !ocus on the ca a+ility re:uire#ents to er!or# 0arious tas,s cannot +e achie0ed. %he rocess #ay certainly result in +etter er!or#ance o0er ti#e +ut er!or#ance i# ro0e#ents co#e only a!ter the indi0idual ac:uires #ore ca a+ilities. So indi0idual gains !irst and the organisational laterQ 53<s are also o!ten con!used as +usiness goals the#sel0es. It is necessary to recognise that 53<s are 2indi0idualised role(related tas, riorites2 and not the +usiness goals the#sel0es. %hey !ocus on indi0idual e!!orts and challenges. %hey are indi0idualised 2#eans goals2 or 2tas, related rocess goals2 that #ay lead to achie0e#ent o! +usiness goals +ut not +usiness goals the#sel0es. %tance <: FKPAs are not easil, understood/ The, ma, .ecome too .inding and kill the creati4it, and fle$i.ilit,/ There ma, also .e pro.lems in the e4ent of the appraisee or the appraiser getting transferred/F So#eti#es there #ay +e con!usion in relation to ,ey er!or#ance areas =53<s>. Managers #ay not +e a+le to distinguish in so#e cases er!or#ance Oareas !ro# result areas. In 53<s' the stress is #ore on the e!!ort and the nature o! the a raisee2s e!!ort in relation to the 0arious critical or i# ortant tas,s he has to er!or#. %he er!or#ance areas should ro0ide clarity to the a raisee and the a raiser a+out the 0arious tas,s to +e acco# lished +y(the a raisee and esta+lish standards against which the er!or#ance o! the a raisee #ay +e assessed #ore o+$ecti0ely. It #ust +e re#e#+ered that 53<s are #eans to gain an increased understanding a+out one2s role and a+out the areas where one should ut in #ore e!!orts. 1hen a +oss o+ser0es his su+ordinate during the er!or#ance eriod' he should +e a+le to relate the acti0ities o! his su+ordinate to one o! the 53<s or o+$ecti0es. 53<s are !le"i+le. During the eriod o! er!or#ance' i! so#e urgent and un lanned tas,s co#e u ' +oth the a raiser and the a raisee can identi!y new ,ey er!or#ance areas. Once identi!ied' 53<s usually do not change unless such e#ergencies ta,e lace. Howe0er' what is #ore i# ortant is a $oint understanding +etween the +oss and the su+ordinate. <s long as they ha0e this understanding' they can ,ee on changing the riorities according to the tas, re:uire#ents. I! the a raisee changes' the a raiser has to wor, out new 53<s with the new a raisee. I! the a raisee has wor,ed with the a raiser !or a su+stantial eriod in a er!or#ance year =a+out A(G #onths>' then the a raiser can co# lete his assess#ent o! the a raisee +e!ore the change. I! the a raiser changes' the a raisee will continue to ha0e the sa#e 53<s. Howe0er' as soon as a new a raiser co#es' the a raisee should +rie! the new a raiser.a+out the 53<s identi!ied with the re0ious a raiser. 3ro#otions and trans!ers are nor#al heno#ena in large organisations. Organisations cannot sto ta,ing trans!er and other ,inds o! ersonnel decisions to suit the re:uire#ents o! the a raisal syste#. Nor#al organisational li!e will go on and the a raisal syste# should +e a+le to res ond to these changes. %hat is why there should +e !le"i+ility +uilt into the syste#. %he i# ortant thing is $oint understanding o! the er!or#ance areas. 53<s are instru#ents' +ut not ends in the#sel0es. Managers should recognise this. %tance G: F).5ecti4es are not al=a,s @uantifia.le and .eha4iour dimensions are not easil, understood/F G*

So#e o! the o+$ecti0es #ay not +e :uanti!ia+le. In ser0ice areas' it #ay +e di!!icult to set :uantitati0e targets. Howe0er' it is use!ul to ha0e so#e co##on understanding a+out the standards o! er!or#ance +etween the a raiser and the a raisee. Duanti!ication er se is not i# ortant. Duanti!ication is done #ainly to ha0e the sa#e ,ind o! understanding +etween the a raiser and the a raisee so that o+$ecti0ity in the !inal assess#ent increases. Studies ha0e shown that where0er :uanti!ication o! o+$ecti0es is ossi+le' the agree#ent +etween the a raiser and the a raisee in the !inal assess#ent was high. In relation to the :uestion on +eha0iour di#ensions' it is i# ortant that +oth the a raisee and the a raiser ha0e a co##on understanding o! what is e" ected !ro# the a raisee in relation to each o! the +eha0iour di#ensions. %he a raiser should oint out to the a raisee at the ti#e o! identi!ying 53<s itsel! the ,ind o! e" ectations he has !ro# the a raisee on each o! the +eha0iour di#ensions listed in the !or#. He should also oint out the o ortunities the organisation o!!ers to the a raisee to show these +eha0iours. %he !ocus should +e on hel ing the e# loyee de0elo +eha0iours that contri+ute to the e# loyee as well as organisational growth. %tance D: F-o.od, admits their =eaknesses/ %o open s,stems of appraisal fail to de4elop people/ %his is a 0ery understanda+le concern o! #anagers. %he concern ste#s !ro# the !act that the a raisal syste# has er!or#ance analysis as an i# ortant co# onent. Under er!or#ance analysis' the a raisee is e" ected to identi!y ersonal as well as en0iron#ental !acilitating and inhi+iting !actors. In the rocess o! identi!ying the ersonal inhi+iting !actors =i.e.' wea,nesses o! the a raisee>' so#e #anagers !eel that their su+ordinates do not ad#it their wea,nesses. I! the su+ordinate does not ad#it his wea,ness' it either #eans that he does not see what the a raiser sees as a wea,ness or that the su+ordinate is +eing de!ensi0e. Identi!ying ersonal inhi+iting !actors does not #ean that e0ery a raisee should ,ee on e"hi+iting and stating all his wea,nesses. It is :uite hu#an to hide one2s wea,ness. Howe0er' i! the er!or#ance a raisal can sti#ulate thin,ing on the art o! the a raisee a+out his wea,nesses' it has done its $o+ as the indi0idual would then loo, !or #ore data and su+se:uently he is li,ely to try and i# ro0e hi#sel!. Managers should not +e o0erconcerned a+out the !act that their su+ordinates do not ad#it their wea,nesses. %hey should encourage their su+ordinates to s ea, o! their strengths and' slowly' once a cli#ate o! trust and e#otional acce tance is +uilt u ' the a raisees are li,ely to co#e to the oint o! tal,ing a+out their wea,nesses. I! the su+ordinate does not ad#it his wea,nesses' it #ay also artly +e a !ailure on the art o! the #anager to +uild a cli#ate. Managers who insist that their su+ordinates should ad#it their wea,nesses run the ris, o! da#aging their relationshi s which are i# ortant !or roducti0ity and a healthy cli#ate. Managers as a raisers can gi0e !eed+ac, to sti#ulate sel! re!lection on the art o! the a raisee. %tance 1E: F%elf+appraisal is self+glorification/F Studies ha0e shown in the ast that in o en syste#s o! a raisal' there is a +it o! leniency in a raisal rating. 1hen a erson is as,ed to a raise hi#sel!' he #ay o0er or under ro$ect hi#sel! de ending on his own ersonality and his own e#otional security. I! an e# loyee o0er ro$ects hi#sel!' the a raiser always has an o ortunity to oint this out to the a raisee. ;0en i! he does not oint this out to the a raisee' once an e# loyee o0er ro$ects hi#sel!' he #ay soon realise that he has raised the e" ectations o! his a raiser and that he has to #eet these e" ectations su+se:uently. %his is so#ething use!ul +oth !or the a raiser as well as the a raisee. %he ur ose o! sel! a raisal is to ensure that the a raiser records a nu#+er o! things which he has done or acco# lished and a+out which the a raiser #ay not +e aware o!. I! that is so' then the a raisee has e0ery right to +ring to the notice o! the a raiser a nu#+er o! things which #ay loo, as sel!(glori!ication. < healthy way o! loo,ing at this is to say that 2there is #ore co##unication and #ore understanding2 rather than to say that 2there is sel!(glori!ication2 ta,ing lace. 1ho does not want his strengths to +e recognised +y his seniors9 I! a #anager wants his strengths to +e recognised +y his seniors' he should +e willing to recognise the strengths o! his su+ordinates. %tance 11H FPeople tend to rate lenientl, in open appraisals/ %o appraisal ratings tend to get inflated/F %his is true. Se0eral research studies conducted in other countries ha0e shown this. One #ay not +e 0ery #uch worried a+out such leniency in ratings. In a de0elo #ent(oriented a raisal syste#' ratings are #eans +ut not ends in the#sel0es. 4atings are #eans to e"change e" ectations' to e"change e0aluations and $udge#ents. 4atings !or# a +asis on which #ore and #ore co##unication #ay ta,e lace +etween an a raiser and the a raisee. 4atings sti#ulate discussions. Duite o!ten #anagers +eco#e worried when there is a di!!erence +etween the ratings o! an a raiser and the a raisee. %his indicates that there is so#ething wrong either with the# or with the syste#. %his worry is unnecessary. In !act when there is a di!!erence +etween sel! a raisal ratings and the ratings assigned +y the +oss' it #ay +e indicator o! a healthy cli#ate e"isting +etween the a raiser and the a raisee. %his shows that they can ha0e di!!erences and sort these di!!erences out the#sel0es. 1hen eo le rate the#sel0es or each other leniently' and that hel s in esta+lishing a cordial at#os here +etween the#' we can tolerate the leniency in the ratings. Howe0er' ro+le#s #ay arise i! these ratings ha0e to +e used !or ersonnel decisions. %hat is why it is necessary to e"a#ine and see i! a di!!erent !or# o! a raisal is re:uired to #a,e ersonnel decisions. 77

%tance 12: FTraining needs are not met ., the organisation in spite of doing serious e$ercise and identif,ing them0 taking pains/F So#e #anagers co# lain that in s ite o! their #entioning the training needs in the new a raisal syste#' the organisation has not done anything to ta,e care o! the#. %hey :uote this as an e"a# le o! the lac, o! seriousness on the art o! the to #anage#ent. It is i# ortant to recognise that no organisation can co# letely #eet the training needs e" ressed +y all its e# loyees. %raining +udgets are so#ewhat li#ited. Only certain ,inds o! training rogra##es that !it into organisational riorities are ossi+le in so#e. organisations. O! course' so#e organisations ha0e such huge training +udgets that they can a!!ord to organise #ore training rogra##es !or their e# loyees than what their e# loyees see,. ;" ression o! training needs should not +e ta,en auto#atically as a right on the art o! the e# loyee !or training. I! training needs are not identi!ied and e" ressed' the organisation would not ha0e an o ortunity to #eet these. But i! the training needs are identi!ied' it does not #ean the organisation should #eet each o! these' nor does it #ean that the organisation will +e a+le to #eet all o! these. Managers should recognise the li#itation their organisations #ay ha0e in #eeting the training needs. In addition' our understanding o! the technology o! identi!ying training needs has not de0elo ed to such an e"tent that we are a+le to say de!initely what is re:uired and what is i# ortant' when and to what degree. %tance 1!: FI take trou.le to complete m, appraisal follo= meticulousl, =hate4er the appraisal guidelines sa,/ )nce I complete and send m, forms up0 I do not hear an,thing from an,.od,/ I do not e4en kno= if an, one looks at m, forms/ This discourages me from in4esting more time in the ne$t appraisalF So#e #anagers +eco#e disa ointed when they do not hear anything !ro# their re0iewing o!!icer or !ro# the H4D de art#ent. %hese #anagers see# to ha0e high e" ectations !ro# their re0iewing o!!icers or !ro# ersonnel de art#ents. < !ew o! the# ro+a+ly are #erely see,ing reassurance !ro# so#eone that e0erything is all right. 4e orting o!!icers should +e sensiti0e to such e" ectations and should co##unicate any re#ar,s or suggestions #ade +y re0iewing o!!icers. <t the sa#e ti#e' #anagers should realise that er!or#ance a raisal is essentially a rocess +etween the# and their a raisers or a raisees. <ll that ha ens should ha en +etween the# and should +e ha ening +etween the#. %he re0iewing o!!icers or the ersonnelE H4D de art#ents co#e into icture only in ro+le# cases' !or training needs and !or other de0elo #ent decisions a+out which the a raisee #ay hear once in a while. 4e0iewing o!!icers #ay not re0iew each indi0idual case. So #anagers should not +e concerned a+out what is ha ening to their !or#s. I! they ha0e so#e e" ectations in this regard' they should 0oice these to their a raisers and ta,e the initiati0e in getting to ,now #ore a+out what is ha ening to their !or#s. %he a raisal !or#s are not collected +y the ersonnel or H4D de art#ents in so#e organisations where the a raisal is le!t entirely to the a raiser and the a raisee. %tance 1": F)ther s,stems ha4e not =orked in this organisation/ The, .ecome rituals o4er time/ can this =ork&F o=

<ny dyna#ic organisation is constantly ali0e to new de0elo #ents and technology and #ay +e in0ol0ed in trying out new technology' structure' syste#s' wor, #ethods and so on. 1hen changes are introduced' eo le tal, a+out it a lotH articularly i! the changes a!!ect the# directly. I! there is uncertainty a+out outco#es' they are e0en li,ely to resist the change. %he success or !ailure o! a syste# li,e the one descri+ed here #ay 0ary. %he dyad =a raiser(a raisee> study conducted at the Indian Institute o! Manage#ent' <h#eda+ad indicated that when syste#s li,e these are i# le#ented' the e"tent to which they were utilised and the +ene!its deri0ed 0aried !ro# de art#ent to de art#ent de ending on the leadershi styles o! the heads o! these de art#ents and the organisational cli#ate in these de art#ents. In another internal study conducted in a targe ri0ate sector co# any' a large ercentage o! #anagers said the syste# was not wor,ing well. Howe0er' when as,ed to indicate whether they the#sel0es were using the syste# well' al#ost all o! the# said they ha0e +ene!ited a great deal !ro# it ersonally. %his e" erience indicates that erce tions o! #anagers a+out organisational e" eriences are li,ely to +e highly +iased and #ostly +ased on ru#ours. %here #ay +e only a !ew #anagers with negati0e e" eriences +ut they s read the wrong #essage !ast. < sur0ey conducted a !ew years a!ter a co# any introduced a new o en syste# o! er!or#ance a raisal showed that a+out -7 er cent rated that they had +ene!ited !ro# it' another A- er cent said it had not #ade any di!!erence while - er cent o! the# said their relationshi s with their +oss or su+ordinate were strained. Howe0er' #ost o! the e# loyees in the organisation ercei0ed that the syste# created #ore ro+le#s than it sol0ed. %his was +ecause the - er cent that had negati0e e" eriences went round tal,ing a+out it whereas the -7 er cent who !elt that it had +een use!ul thought that the e" erience was only li#ited to the# indi0idually and ,e t :uiet. Managers should learn to #easure the success or !ailure o! syste#s o! this ,ind at their own le0el rather than loo,ing !or generalities in the organisation. 1hen this ha ens'the :uestion o! the syste#s not wor,ing #ay not arise +ecause si#ilar syste#s ha0e not wor,ed in the ast. %hose in the to #anage#ent or in the ersonnel and H4D de art#ents are there to ta,e care o! these issues. 71

Personnel I (' 'epartmentFs (esponse to -e= Appraisal %,stems


%he success!ul i# le#entation o! new a raisal syste#s also de ends to a great degree on the ersonnel and H4D de art#ents. %he res onsi+ility !or initiating and #onitoring the i# le#entation o! new a raisal syste#s is usually gi0en to these de art#ents. ;!!ecti0e i# le#entation o! these syste#s de end crucially on these de art#ents. 1. %he #anagers o! these de art#ents should ha0e a thorough understanding o! the new syste#s and should ha0e a high degree o! co##it#ent to it. %hey should ha0e #uch #ore conce tual clarity than the line #anagers and should atte# t to ractise the new syste#s e0en +e!ore they are used +y the line #anagers. ?. %hey should antici ate e# loyee resistance and +e re ared to +rea, this resistance through ersistent e!!orts. @. 1hile the e!!ecti0eness with which these syste#s are i# le#ented de ends on the line #anagers' and #ay 0ary !ro# #anager to #anager' ersonnel and H4D de art#ents can +e instru#ental in hel ing the #anagers in e!!ecti0e i# le#entation. /or this ur ose' the ersonnel and H4D sta!! #ay. i. Initiate a rocess o! education !or #anagers a+out the new a raisal syste#s' its o+$ecti0es and hel the# de0elo s,ills re:uired !or e!!ecti0e i# le#entation through orientation rogra##es. ii. Be a0aila+le to assist the line #anagers in i# le#entation. iii. %a,e the initiati0e and ,ee contacting line #anagers during 53< identi!ication and counselling eriods. i0. Monitor the syste# +y #aintaining in!or#ation a+out the rogress o! i# le#entation and ta,ing correcti0e action' 0. 5ee counselling to line #anagers a+out how their a raisal ratings ha0e +een used !or 0arious ersonnel decisions. 0i. Bo# ile and use er!or#ance analysis !or organisation de0elo #ent ur oses +y co##unicating to the to #anage#ent organisational constraints identi!ied +y e# loyees in their a raisal. 0. 3re are su orti0e ersonnel olicies and ha0e the# a ro0ed +y the to #anage#ent +e!ore i# le#enting the#. 0i. <ct on the training needs identi!ied and de0elo #ental suggestions #ade in the a raisal !or#s and co##unicate to re orting o!!icers where0er the ersonnel de art#ent cannot co# ly with the suggestions and reco##endations #ade +y the line #anagers. A. %he ersonnel and H4D de art#ents are li,ely to +e the targets o! criticis# during the transition eriod. %he #anagers o! these de art#ents should recognise this and should +e a+le to contain this. %hey #ust ossess a great degree o! atience. %hey should not get easily discouraged when line #anagers as well as the to #anage#ent criticise the#. <t the sa#e ti#e' they should +e o en to suggestions and should +e willing to #a,e changes when needed.

2nion (esponses to Performance Appraisals


O!!icers2 unions e"ist only in a !ew organisations. 1hene0er they e"ist' they ha0e an i# ortant role to lay in #a,ing a raisal syste#s success!ul. In !act in organisations that still ha0e traditional con!idential !or#s o! a raisals' o!!icers2 unions can lay an i# ortant role in ressuring the to #anage#ent to ha0e an H4D outloo, and change the a raisal syste#s to encourage e# loyee de0elo #ent. %here are instances where the o!!icers2 associations ha0e raised such de#ands. Since the new a raisal syste#s are good !or the e# loyees and ai# at ro#oting their de0elo #ent' the unions and associations should +e ha y to ha0e such syste#s and e0en de#and the# !ro# to #anage#ent.

%trategic Considerations in Introducing -e= Appraisal %,stems


< change in the a raisal syste#s should +e care!ully lanned. Organisations ha0ing traditional trait(+ased con!idential re ort syste#s should re are the#sel0es a great deal +e!ore they go in !or o en syste#s o! a raisal. %he e# loyees #ay not +e a+le to res ond well to sudden changes. Se0eral strategic o tions are a0aila+le !or introducing change. So#e o! these are outlined +elow. Introducing Change in the %,stems %tep ., %tep all through the )rganisation In this strategy' the organisation #ay #a,e #odi!ications in the a raisal syste# ste +y ste o0er a eriod o! ti#e. /or e"a# le' in the initial years' trait(+ased assess#ent #ay +e su le#ented with er!or#ance(+ased assess#ent =using 3<s or 53<s>. <!ter so#e ti#e' sel! a raisal could also +e introduced. Su+se:uently' er!or#ance analysis could +e introduced. < !ew years later counselling could +e introduced. /inally' the syste# could +e #ade artly o en or se#i( con!idential. %his ,ind o! change #ay ta,e a !ew years. Howe0er' the di#ensions on which er!or#ance assess#ent would +e a0aila+le !or ersonnel decisions will re#ain the sa#e !ro# the ti#e the !irst change has +een #ade =i.e. 53<s' #anagerial :ualities' +eha0iour di#ensions etc.>. 7?

Introducing Change Le4el ., Le4el in the Managerial

ierarch,

In this strategy' the new syste# could +e introduced !or a articular le0el o! #anagers in the initial stages. Slowly' it could +e e"tended u wards and downwards to all o!!icers. In such cases' it is use!ul to start at higher le0els o! the hierarchy. %his is +ecause the nu#+er o! #anagers at higher le0els who need to +e oriented to the syste# is generally s#all and #ore attention can +e aid in the initial stages to hel the# gain a thorough understanding o! the syste#. %his strategy o! introduction is reco##ended i! the organisation is ado ting a syste# which is totally di!!erent !ro# the e"isting syste#. Introducing Change 'epartment ., 'epartment or Area ., Area In this strategy' the entire organisation is di0ided into di!!erent de art#ents or geogra hic units on the +asis o! the nature o! wor, they do' on the +asis o! de art#ental le0els they ha0e or on the +asis o! geogra hical ro"i#ities. %he a raisal syste# in its totality could +e introduced in one entire unit or de art#ent o0er a short eriod o! ti#e =1(? years>. %he e" eriences !ro# this #ay +e used to #a,e #odi!ications in the syste# and it could then +e e"tended to other de art#ents or regions. 1here the #an ower in the ersonnel de art#ent is li#ited and their #onitoring ca a+ilities are li#ited' this strategy #ay +e used to !acilitate e!!ecti0e #onitoring. &ine #anagers !ro# those de art#ents where the syste# has already +een e" eri#ented could ser0e as resources !or the new de art#ents where it is +eing introduced. Com.inations for the A.o4e %he three strategies outlined a+o0e can also +e co#+ined and used. < 0ariety o! co#+inations are ossi+le. It is ossi+le to go 0ery slowly' using a ste +y ste ' le0el +y le0el and region +y region =or unit +y unit> strategy. In this strategy' only a !ew #anagers at a articular le0el in the hierarchy in one o! the organisational units #ay +e in0ol0ed in the initial stages. Su+se:uently' it could +e e"tended 0ertically and horiKontally si#ultaneously increasing so histication. 1hate0er the strategy it ado ts' the organisation should lan it rather than #a,e a syste#atic change and then not +e a+le to co e with the ressures and de#ands created +y such a change.

*rom Appraisals to Planning0 Anal,sis and 'e4elopment: (ecent 'e4elopments


In this section' an atte# t will +e #ade to u date' the reader with so#e o! the recent de0elo #ents in er!or#ance a raisals. In the last 17 years' a large nu#+er o! organisations ha0e started re0iewing and re0ising their a raisal syste#s. In al#ost all these cases' there is a welco#e change and #o0e#ent towards de0elo #ent(oriented and o en syste#s o! er!or#ance a raisal. %his is re!lected in the u+lic sector organisations li,e the Steel <uthority o! India &td. =S<I&>' National Dairy De0elo #ent Board =NDDB>' &i!e Insurance Bor oration o! India =&IB> and ri0ate sector organisations li,e Sundra# /asteners &i#ited =S/&>' Bro# ton Grea0es &i#ited =BG&>' %ata Iron and Steel Bo# any =%ISBO> and the construction grou &arsen J %ou+ro =&J%' ;;B>. In this cha ter rather than gi0ing case studies' an atte# t has +een #ade to descri+e the trends and inno0ations. %he uni:ue issues addressed +y each o! these organisations through their er!or#ance a raisal syste#s are highlighted.

*rom Appraisal to Planning0 Anal,sis and 'e4elopment


< signi!icant shi!t in e# hasis can +e noticed !ro# the titles gi0en +y organisations to the a raisal syste#s. Organisations are slowly a0oiding the use o! the ter# 2a raisal2 and increasingly e# hasising lanning' analysis' re0iew and de0elo #ent. /or e"a# le &J% =;BB> calls their syste# as 2 er!or#ance analysis and de0elo #ent syste# =3<DS>2' NDDB titled its re0ised syste# as er!or#ance lanning and re0iew =334>' &IB calls it as wor, lanning and re0iew syste# =134S> and BMB calls their syste# as er!or#ance and de0elo #ent re0iew =3D4>. In all these' the e# hasis is on lanning o! er!or#ance' analysis o! er!or#ance' re0iew and de0elo #ent. %his change is de!initely sy#+olic o! the shi!t in !ocus and is undou+tedly the !irst ste in re( orienting a raisals to de0elo #ent. #mphasis on Planning %he e# hasis on lanning in #ost o! these organisations ste#s !ro# certain needs and assu# tions. 1. In the a+sence o! a wor, or er!or#ance lan' #anagers tend to lose direction o0er a eriod o! ti#e and increase the chances o! their getting suc,ed into routines. 3er!or#ance lanning through ,ey er!or#ance areas' tas,s' targets' o+$ecti0es' ,ey result areas and the li,e gi0es a sense o! direction to e0ery #anager +y hel ing hi# !ocus his attention on i# ortant as ects o! his wor,. %he er!or#ance lan hel s hi# to re#ind hi#sel! eriodically o! the ,ey acti0ities or i# ortant tas,s that should engage his attention. 7@

?.

@.

A.

O0er a eriod o! ti#e' e# loyees in #ost organisations de0elo a tendency to ,ee doing things they are !a#iliar with rather than doing things with which they are not. <s a result' higher le0el e"ecuti0es tend to underutilise their otential. %his artly ha ens +ecause e# loyees ha0e a tendency to carry with the# ha+its' wor, atterns and tas,s that they ha0e er!or#ed well as they go u the #anagerial hierarchy. %hus' when a erson gets ro#oted to the ne"t higher le0el' he #ay ha0e a tendency to continue to do things that he has done in his re0ious role due to !a#iliarity and ast success. %his continues down the line and' o0er a eriod o! ti#e' higher le0el e"ecuti0es #ay +e doing things which their $uniors !ar lower in the hierarchy should +e doing. %o a0oid this' er!or#ance lanning ro0ides an o ortunity to e"a#ine eriodically whether the tas,s e"ecuti0es er!or# are a ro riate to their role and !or their le0el. 3er!or#ance lanning hel s an e"ecuti0e to e"a#ine the nature o! acti0ities he is in0ol0ed in and the e"tent to which he is a+le to utilise his ca a+ilities in the $o+. 3er!or#ance is #ore easily #easura+le at the de art#ental or unit le0els rather than at indi0idual le0els. Most organisations ha0e a 0ariety o! #echanis#s !or #easuring such de art#ental er!or#ances rather than indi0idual er!or#ances. One o! the ro+le#s o! #easuring collecti0e er!or#ance is that the indi0idual identity #ay +e lost. Hence' er!or#ance lanning and analysis syste# is +eing used as an instru#ent to !ocus attention on indi0idual out ut and thus gi0e signi!icance to the indi0idual. 3er!or#ance lanning hel s in identi!ying the 2distincti0e2 contri+utions o! e0ery e# loyee to the organisation and gi0es the e# loyee a sense o! acco# lish#ent. %his also enhances his accounta+ility. It is due to the !ear o! accounta+ility that so#e e# loyees a0oid er!or#ance lanning. %he distincti0e contri+utions are identi!ied +y e" ecting e0ery e# loyee to distinguish his er!or#ance and contri+utions !ro# those o! his +oss' su+ordinates and colleagues.

*rom Performance Counselling to Performance (e4ie= 'iscussion


%he ter# 23er!or#ance Bounselling1 see#s to create so#e unintended negati0e i#ages. So#e line #anagers !ind it di!!icult to get accusto#ed to the idea that counselling is not #eant !or only trou+led e# loyees or di!!icult cases. <s a result' organisations are re!erring to use the ter# er!or#ance re0iew discussion or 34D. %he S<I& syste# is an e"a# le o! this. < !ew organisations e0en go to the e"tent o! suggesting :uarterly or hal!(yearly 3D4s !or senior e"ecuti0es.

*rom Performance Assessment to Performance 'e4elopment


%here is also an increasing trend to e# hasise er!or#ance de0elo #ent #uch #ore than er!or#ance assess#ent. It is increasingly +eing recognised that assess#ent and ratings are instru#ents !or de0elo #ent rather than ends in the#sel0es. < result o! this realisation is delin,ing a raisals !ro# rewards and ro#otions. %here is a continuous de+ate on the #erits and de#erits o! lin,ing a raisals to rewards. Organisations realise that +oth ways there are ro+le#s. 1hile good er!or#ance should +e recognised and rein!orced in #any ways' #echanical lin,ing o! rewards and ro#otions leads to serious ro+le#s. So#e organisations ha0e delin,ed a raisals !ro# rewards te# orally and through !or#s. 4ewards are +eing gi0en on the +asis o! si# le con!idential !or# o! reco##endations. %hese !or#s are !illed a !ew #onths a!ter the de0elo #ent( oriented re0iew discussions are conducted. Such te# oral se aration o! o en de0elo #ental a raisals !ro# con!idential reward a raisals is +eing used reasona+ly well. <s a result' the e# hasis on er!or#ance de0elo #ent is increasing. Organisations are e# hasising that 34Ds should the#sel0es ha0e an educati0e 0alue. < 0ariety o! de0elo #ent decisions could +e ta,en during the 34D which is itsel! +eing considered as a de0elo #ental tool. %his is re!lected in Sundra# /asteners where annual 34Ds ta,e lace +etween the a raisee' his re orting o!!icer' re0iewing o!!icer and the H4D #anager. In &J%2s construction grou ' internally(trained !acilitators are used while 34Ds go on +etween an a raisee and the a raiser. %he de0elo #ent lan outlined in the er!or#ance a raisal syste# o! &J% is illustrati0e o! the increased de0elo #ent(orientation in er!or#ance a raisals. De0elo #ent lans are +eco#ing an integral art o! a raisals as re!lected in the syste#s o! #ost organisations.

Peer and %u.ordinate Appraisals


%here is a growing trend to use a raisal +y eers and internal custo#ers. /or e"a# le' in the a raisal syste# used +y Bro# ton Grea0es' e0ery senior #anager is also a raised +y his colleagues who are his internal custo#ers on certain di#ensions. < !ew organisations li,e %ISBO ha0e started e" eri#enting with u ward a raisals or a raisal +y su+ordinates. In this syste#' e0ery senior e"ecuti0e is anony#ously a raised +y a grou o! his $uniors or su+ordinates. %he data are co# iled and !ed to the a raisee o!!icer. %his #ethod has +een !ound to +e a 0ery use!ul tool !or de0elo #ent. 7A

(ole of Committees
<nother signi!icant de0elo #ent in the last !ew years is the use o! a co##ittee syste# in re0iewing er!or#ance. %hose organisations that still e# hasise o+$ecti0ity ha0e +een using tea#s o! senior e"ecuti0es to re0iew the er!or#ance a raisals' decide rewards and signi!icant de0elo #ent acti0ities.

Acceptance of %u.5ecti4it,
< signi!icant change in er!or#ance a raisals is the ac,nowledge#ent o! the !act that a raisals are +ound to +e su+$ecti0e and su+$ecti0ity is a art o! li!e. Such a realisation see#s to reduce e#otions and tensions associated with a raisals and increase the otential !or de0elo #ent. < study o! the er!or#ance #anage#ent syste#s o! 0arious organisations gi0en in Bha ter 1G will hel one understand the new de0elo #ents ta,ing lace in e"ecuti0e a raisals.

7-

Chapter G Monitoring Performance Planning Anal,sis and 'e4elopment %,stems


I! er!or#ance a raisals ha0e to achie0e the 0ariety o! de0elo #ental o+$ecti0es outlined in this +oo,' the a raisal syste# needs to +e designed well and its i# le#entation #onitored. Most a raisal syste#s are well designed +ut do not get i# le#ented ro erly due to oor #onitoring and !ollow(u . &ine #anagers do not ut in enough e!!ort in i# le#enting the syste# !or the !ollowing reasons. 1. It is an acti0ity that can +e ost oned without any 0isi+le da#age to their roducti0ity' e!!ecti0eness or er!or#ance. ?. It has not yet +eco#e a art o! their wor,(li!e nor has it +eco#e a ha+it li,e regular #eetings on roduction lanning' etc. It is in!re:uent and ta,es lace once or twice a year. @. &ine #anagers ha0e to tac,le one crisis a!ter another' thus' ha0ing li#ited ti#e !or such de0elo #ental acti0ities. A. Organisations ha0e not yet !ully esta+lished an H4D culture in which not ha0ing er!or#ance lanning and re0iew discussions is considered oor #anage#ent. -. It is not easy to !ace each other and tal, a+out each other2s er!or#ance without in!licting hurt and there is also the !ear o! not +eing a+le to handle the conse:uences o!2o enness2. G. %here are no syste#ic ways in which these are #onitored' data are used and !eed+ac, ro0ided to line #anagers. It is considered a ritual to +e co# leted so#ehow than an o ortunity to +e used. Only so#e o! these sources can +e eli#inated through good #onitoring and !ollow(u . 1hen the i# le#entation is #onitored' it esta+lishes the signi!icance o! the 33< and D syste# in the wor,( li!e and as an instru#ent to +uild eo le' ro0ides continuous attention o! the to #anage#ent and senior e"ecuti0es and de#onstrates that the data generated in the 33< and D syste# are used !or 0arious de0elo #ental and #anagerial decisions. Such #onitoring needs to +e done co# rehensi0ely !or a !ew years until the syste# +eco#es a #atter o! ha+it and a art o! one2s wor,li!e. Monitoring needs to +e done +y using di!!erent #ethods and agencies. Monitoring and !ollow(u #ay ai# at the !ollowing o+$ecti0es. 1. 3ro0iding necessary guidance and su ort !or the a raisee(a raiser airs to +e a+le to i# le#ent the syste# well =i.e.' to lan the er!or#ance well' analyse it' ha0e good er!or#ance re0iew' identi!y de0elo #ent needs' generate use!ul data and en$oy the +ene!its o! 33< and D>. ?. %o esta+lish the signi!icance o! the 33< and D +y analysing the data and ro0iding a !eed+ac, at the de art#entalEgrou le0el. @. %o ser0e as a re#inder or ressure oint to e# loyees who are accusto#ed to wor,ing under such ressure until it +eco#es a art o! their routine. %his also ena+les the# to !ind ti#e !or this ur ose. %he !ollowing #ethods can +e used !or #onitoring ur oses. 7i8 Indi4idual contact: %his is to !ind out the i# le#entation status through inter0iews and ro0ide guidance where0er necessary. In this #ethod the ersonnel and H4D sta!! lay a lead role +y contacting e# loyees and inter0iewing the# to !ind out the i# le#entation status' +ene!its' ro+le#s' etc. It is re!era+le to contact all indi0iduals. I! the grou is large it #ay +e use!ul to contact all re orting or re0iewing o!!icers or a sa# le o! the#. <n inter0iew schedule #ay +e de0elo ed. 7ii8 Anal,sis of forms: <nalysing the !or#s recei0ed !ro# the e# loyees to !ind out trends' ro+le#s' etc.' and !eeding the data +ac, to line #anagers !or use is another signi!icant way to #onitor. %he er!or#ance lansE53<sEtas,sEtargets' etc.' #ay+e co# iled de art#ent(wise to see whether there are any #issing 53<sEtas,sE targets and how the arts are adding u to a whole. %he er!or#ance analysis data #ay +e co# iled de art#ent(wise to identi!y #ost !re:uently #entioned inhi+iting !actors and the data #ay +e !ed+ac, to the de art#ental heads. %he de0elo #ental needs could +e ta+ulated to identi!y the de art#ent(wise training needs and ta,e de0elo #ental decisions. %he ratings could.+e analysed to identi!y +iases' interde art#ental 0ariations' etc.' and initiate correcti0e action. 7iii8 Line manager task forces or departmental task forces: <n organisation(wide or de art#ent +ased tas, !orces can +e !or#ed to #onitor the i# le#entation. Such tas, !orces #ay e0ol0e their own #ethods o! #onitoring including a co#+ination o! indi0idual contacts' :uestionnaire sur0eys' short re0iew wor,sho s' analysis o! !or#s' etc. 1hen line #anager tas, !orces are !or#ed e# loyees tend to see a high signi!icance attached to the syste# than when the ersonnelEH4D de art#ent alone #onitors the i# le#entation. 7G

7i48 'epartmental re4ie= meetings: ;ach de art#ent could set aside a day or hal!(a(day e0ery year or e0ery si" #onths to re0iew the i# le#entation o! the 33< and D. In such de art#ental re0iews all the e# loyees #ay artici ate. Bo##only e" erienced di!!iculties could +e identi!ied and technical assistance sought to hel the# o0erco#e these. Such re0iews tend to i# ro0e the signi!icance o! 33< and Ds. ;ach e# loyee is nor#ally re:uired to gi0e his 0iews in such #eetings. %his also acts as a ressure oint. 748 Cuestionnaire sur4e,s: %his is a #ost co##only used and a 0ery use!ul #ethod. In this #ethod a !ollow( u :uestionnaire is designed and sent to all e# loyees. %he :uestionnaire #ay deal with one as ect or co# rehensi0ely deal with all as ects o! i# le#entation. It #ay solicit !actual in!or#ation as well as erce tions' !eelings and reactions. It could +e collected anony#ously to get !ran, and !ree data or #ay +e collected +y na#e to get !actual in!or#ation and ro0ide !eed+ac,. So#e sa# le :uestionnaires are ro0ided at the end o! this cha ter. It is use!ul to collect in!or#ation !ro# all with the hel o! the :uestionnaire. 74i8 Presentation to top management or head of departments: %his is not a se arate #ethod +ut can +e used as a otential #echanis# to co##unicate the signi!icance o! data generated in the 33< and D e"ercises. In this #ethod' the ersonnelEH4D de art#ent sta!! or line #anager or tas, !orces re0iew the i# le#entation and #a,e a resentation o! their reco##endations !or i# ro0ing it. <nalysis o! data and :uestionnaire sur0eys also could +e resented to the#. Such resentations hel to #anage#ent to +eco#e aware o! 0arious issues and also co##unicate to the e# loyees the to #anage#ent2s in0ol0e#ent. Such resentations should +e !ollowed +y so#e action or at least a co##unication o! the i# le#entation status and concerns o! to #anage#ent to all e# loyees.

Component Monitoring
Monitoring #ay +e done !or the entire syste# e0ery year or !or e0ery signi!icant co# onent o! the syste#. %a+le ).1 gi0es a sche#atic resentation o! the #onitoring #atri" highlighting the use o! di!!erent #ethods !or #onitoring each o! the co# onents. < #onitoring lan could +e wor,ed out using the in uts gi0en in this ta+le de ending on the needs o! the organisation and the stage o! its i# le#entation.

Comprehensi4e (e4ie=s and (ene=al


<ny syste# +eco#es a art o! the routine a!ter so#e ti#e. In the initial stages there is so#e eu horia or e"cite#ent +ut a!ter a+out three years it dies down and +eco#es a routine. Un!ortunately +oth ositi0es and negati0es get settled down in this routine. In other words' the syste# with all its side(e!!ects and inade:uacies +eco#es a routine. Usually there is sco e !or i# ro0ing the syste# or its i# le#entation. By a+out the third or !ourth year eo le are a+le to e" erience the inade:uacies' i# er!ections' ro+le#s and di!!iculties in the syste# and its i# le#entation. %hey are also a+le to articulate these well. It is then ti#e to re0iew the syste# and renew it. Howe0er e"cellent a syste# #ay +e' it is use!ul to re0iew it once in !i0e years. Such re0iew and renewal e"ercises #ay +e conducted internally +y an interde art#ental tas, !orce or i! necessary +y an e"ternal agent. Such renewal e"ercises #ay use 0arious #ethods li,e indi0idual inter0iews' :uestionnaire sur0eys and wor,sho s. Such renewal e"ercises and Ta.le G/1: 33< and D Monitoring Matri" Monitoring #ethod 33< and D di#ensions #onitored 3er!or#ance lanning Indi0idual contact' guidance and inter0iews Sel! a raisal and er!or#ance analysis %o i# ro0e :uality and de th %o analyse su ort re:uire( #ents and collate inhi+iting !actors 3er!or#ance re0iew counselling /acilitate good 34Ds and counselling De0elo #ent needs %o hel articulate de0elo #ent needs %o identi!y training needs and other de0elo #ental needs %o identi!y +iases' leniency and other trends 4e0iew and !ollow u 1ith re0iew o!!icersEco##i ttees to assess e!!ecti0eness

4atings

/or guidance and :uality i# ro0e#ent %o see trends' e"a#ine :uality and rele0ance to organisation goals

<nalysis o! !or#s

/ollow(u o! de0elo #ent decisions

77

&ine #anagerE %o understand %o assess tas, !orces and i# ro0e co##it#ent or !actors a!!ecting and de art#ent er!or#ance seriousness al tas, !orces Monitoring 33< and D di#ensions #onitored #ethod Sel! a raisal 3er!or#ance 3er!or#ance and re0iew lanning er!or#ance counselling analysis De art#ent %o i# ro0e al re0iew :uality #eetings %o assess Duestionnai seriousness re re( co##it#ent sur0eys satis!action 3resentatio ns to to #anage#e nt %o i# ro0e :uality and related as ects

%o identi!y training and other de0elo #ent needs

%o identi!y de0elo #ent needs and reduce +iases

De0elo #ent needs

4atings

4e0iew and !ollow u

%o assess the %o assess the %o assess the %o assess the e"tent to which e!!ecti0eness o! di!!iculties' e!!ecti0eness de0elo #ental sel! a raisal +iases and o! 34Ds needs ha0e rocess i# ro0e :uality +een identi!ied %o ta,e de0elo #ent decisions %o hel the# understand +iases and #a,e corrections

%o assess the e!!ecti0eness o! re0iew #echanis#s

Cariations in re0iews

conse:uent decisions go a long way to ,ee the s irit o! 33< and D syste#s ali0e and +ene!it the organisation a good deal. It should +e re#e#+ered that in the ulti#ate analysis 33< and D syste#s are not #erely a raisal instru#ents +ut instru#ents to i# ro0e #anage#ent ractices and +uild ro!essionally e!!ecti0e #anage#ent culture.

7)

Chapter D Performance Appraisal and Bo. #4aluation


Introduction <!ter an e# loyee has +een selected !or a $o+' has +een trained to do it and has wor,ed on it !or a eriod o! ti#e' his er!or#ance should +e e0aluated. 3er!or#ance ;0aluation or < raisal is the rocess o! deciding how e# loyees do their $o+s 3er!or#ance here re!ers to the degree o! acco# lish#ent o! the tas,s that #a,e u an indi0idual2s $o+. It indicates how well an indi0idual is !ul!illing the $o+ re:uire#ents. O!ten the ter# is con!used with e!!orts' which #eans energy e" ended and used in wrong sense. 3er!or#ance is always #easured in ter#s o! results. < +an, e# loyee !or e"a# le' #ay e"ert a great deal o! e!!ort while re aring !or the B<IIB e"a#ination +ut #anages to get a oor grade. In this case the e!!ort e" ended is high +ut er!or#ance is low. 'efinition 3er!or#ance a raisal is #ethod o! e0aluating the +eha0iour o! e# loyees in the wor,s ot' nor#ally including +oth the :uantitati0e and :ualitati0e as ects o! $o+ er!or#ance. It is a syste#atic and o+$ecti0e way o! e0aluating +oth wor,(related +eha0iour and otential o! e# loyees. It is a rocess that in0ol0es deter#ining and co##unicating to an e# loyee how he or she is er!or#ing the $o+ and ideally' esta+lishing a lan o! i# ro0e#ent. 3er!or#ance a raisal is +roader ter# than Merit 4ating. In the ast #anagers used to !ocus on the traits o! an e# loyee while ran,ing eo le !or ro#otions and salary increases. ;# loyee2s traits such as honesty' de enda+ility' dri0e' ersonality' etc.' were co# ared with others and ran,ed or rated. %he atte# t was to !ind what the erson has =traits> rather than what he does = er!or#ance>6 the !ocus was on the in ut and not on the out ut. %his ,ind o! e0aluation was o en to criticis# +ecause o! the dou+t!ul relationshi +etween er!or#ance and #ere ossession o! certain traits. *eatures %he #ain characteristics o! er!or#ance a raisal #ay +e listed thus. T %he a raisal is a syste#atic rocess. It tries to e0aluate er!or#ance in the sa#e #anner using the sa#e a roach. < nu#+er o! ste s are !ollowed to e0aluate an e# loyee2s strengths and wea,nesses. T It ro0ides an o+$ecti0e descri tion o! an e# loyee2s $o+2s rele0ant strengths and wea,nesses. T It tries to !ind out how well the e# loyee is er!or#ing the $o+ and tries to esta+lish a lan !or !urther i# ro0e#ent. T %he a raisal is carried out eriodically' according to a de!inite lan. It is certainly not a one(shot deal. T 3er!or#ance e0aluation is not $o+ e0aluation. 3er!or#ance a raisal re!ers to how well so#eone is doing an assigned $o+. Io+ e0aluation' on the other hand' deter#ines how #uch a $o+ is worth to the organisation' and there!ore' what range o! ay should +e assigned to the $o+. T 3er!or#ance a raisal #ay +e !or#al or in!or#al. %he in!or#al e0aluation is #ore li,ely to +e su+$ecti0e and in!luenced +y ersonal !actors. So#e e# loyees are li,ed +etter than others and ha0e' !or that reason only' +etter chances o! recei0ing 0arious ,inds o! rewards than others. %he !or#al syste# is li,ely to +e #ore !air and o+$ecti0e' since it is carried out in a syste#atic #anner' using rinted a raisal !or#s. ).5ecti4es 3er!or#ance a raisal could +e ta,en either !or e0aluating the er!or#ance o! e# loyees or !or de0elo ing the#. %he e0aluation is o! two ty es. telling the e# loyee where he stands and using the data !or ersonnel decisions concerning ay' ro#otions' etc. %he de0elo #ental o+$ecti0es !ocus on !inding indi0idual and organisational strengths and wea,nesses6 de0elo ing healthy su erior(su+ordinate relations6 and o!!ering a ro riate counseling E coaching to the e# loyee with a 0iew to de0elo his otential in !uture. < raisal o! e# loyees ser0es se0eral use!ul ur oses.

a/ Compensation decisions* It can ser0e as a +asis !or ay raises. Managers need er!or#ance a raisal to identi!y e# loyees who are er!or#ing at or a+o0e e" ected le0els. %his a roach to co# ensation is at the heart o! the idea that raises should +e gi0en !or #erit rather than !or seniority. Under #erit syste#s' e# loyee recei0es raises +ased on er!or#ance. ./ (romotion decisions* It can ser0e as a use!ul +asis !or $o+ change or ro#otion. 1hen #erit is the +asis !or reward' the erson doing the +est $o+ recei0es the ro#otion. I! rele0ant wor, as ects are #easured ro erly' it hel s in #ini#ising !eelings o! !rustration o! those who are not ro#oted. 7*

c/ Training and development programmes* It can ser0e as a guide !or !or#ulating a suita+le training and de0elo #ent rogra##e. 3er!or#ance a raisal can in!or# e# loyees a+out their rogress and tell the# what s,ills they need to de0elo to +eco#e eligi+le !or ay raises or ro#otions or +oth. d/ Feedback* 3er!or#ance a raisal ena+les the e# loyee to ,now how well he is doing on the $o+. It tells hi# what he can do to i# ro0e his resent er!or#ance and go u the 2organisational ladder2. e/ (ersonal development* 3er!or#ance a raisal can hel re0eal the causes o! good and oor e# loyee er!or#ance. %hrough discussions with indi0idual e# loyees' a line #anager can !ind out why they er!or# as they do and what ste s can +e initiated to i# ro0e their er!or#ance. The Performance Appraisal Process 3er!or#ance a raisal is lanned' de0elo ed and i# le#ented through a series o! ste s.

a/ %stablish performance standards* < raisal syste#s re:uire er!or#ance standards' which ser0e as +ench#ar,s against which er!or#ance is #easured. %o +e use!ul' standards should relate to the desired results o! each $o+. 1hat a+out' those a raisals' which are carried out without any clear(cut criteria. O+ser0e the !ollowing case. 4a$u' who had $ust !inished his !irst year as an o!!ice assistant was su##oned to his #anager2s o!!ice !or his annual er!or#ance re0iew. Slightly uneasy' +ut con!ident that he has done a good $o+' 4a$u arri0ed at his #anager2s o!!ice at the a ointed hour. <!ter the initial e"change o! leasantries' 4a$u was gi0en a co y o! an a raisal !or#' which was co# leted as !ollows. Ao$ D/1: 8early 3er!or#ance 4e0iew Na#e o! the ;# loyee. Mr 4a$u Date. @1.1?.1*** Use the !ollowing scale to rate the e# loyee =1 oor ? +elow a0erage @ a0erage A good - e"cellent> a. +. c. d. e. !. <+senteeis# Duality o! wor, Duantity o! wor, <ttitude toward the $o+ 3ersonality(related !actors Inter ersonal relations 1?!A1?!A12@A1?@"12@A1?@A-

=Bold letters indicate the actual rating +y the #anager as on @1.1 ?.1 ***> Su er0isorVVVVVVVVVVV ;# loyeeVVVVVVVVV

4a$u got the shoc, o! his li!e. 1hy did he not recei0e any negati0e !eed+ac, a+out his er!or#ance until now9 How did the #anager rate his ersonality and inter ersonal +eha0iour so +adly9 &oo,ing at his unha y reactions' the #anager roceeded to e" lain how he has !ailed to win the con!idence o! his tea##ates. He also ad0ised 4a$u to tal, to hi# directly instead o! writing to the Director o! the co# any directly. S eechless and de$ected' 4a$u le!t the o!!ice' wondering as to what he #ust do to i# ro0e his er!or#ance and o+tain +etter grades. %o a0oid e#+arrass#ents o! this ,ind' er!or#ance standards #ust +e clear to +oth the a raiser and the a raisee. %he er!or#ance standards or goals #ust +e de0elo ed a!ter a thorough analysis o! the $o+. Goals #ust +e written down. Iust tal,ing a+out the# is not enough. %hey #ust +e #easura+le within certain ti#e and cost considerations. /or e"a# le' the regional sales o!!icer #ay +e as,ed. S%he sales o! colour tele0ision sets in GhaKia+ad #ust increase +y 1777 er #onth in the ne"t G #onths and the +udget toward ro#otional e" enses would 4s.-777 er #onth.S )7

Ta.le D/2: Criteria for Identif,ing and Writing 3ood Performance 3oals T T T T 1hat is the tas, to +e acco# lished9 1hat will it loo, li,e when it is acco# lished9 1hen #ust it +e co# leted9 1hat are the cost considerations9

./ Comm!nicate the standards* 3er!or#ance a raisal in0ol0es at least two arties6 the a raiser who does the a raisal and the a raisee whose er!or#ance is +eing e0aluated. Both are e" ected to do certain things. %he a raiser should re are $o+ descri tions clearly6 hel a raisee set his goals and targets6 analyse results o+$ecti0ely6 o!!er coaching and guidance to a raisee whene0er re:uired and reward good results. %he a raisee should +e 0ery clear a+out what he is doing and why he is doing. /or this ur ose' the er!or#ance standards #ust +e co##unicated to a raisees and their reactions +e noted down initially. I! necessary' these standards #ust +e re0ised or #odi!ied. <s ointed out +y De BenKo and 4o++ing' Stoo #any $o+s ha0e 0ague er!or#ance standards and the ro+le# is co# ounded when these standards are set in isolation and do not in0ol0e the e# loyeeS. c/ Meas!re act!al performance* <!ter the er!or#ance standards are set and acce ted' the ne"t ste is to #easure actual er!or#ance. %his re:uires the use o! de enda+le er!or#ance #easures' the ratings used to e0aluate er!or#ance. 3er!or#ance #easures' to +e hel !ul #ust +e easy to use' +e relia+le and re ort on the critical +eha0iours that deter#ine er!or#ance. /our co##on sources o! in!or#ation' which are generally used +y #anagers regarding how to #easure actual er!or#ance. ersonal o+ser0ation' statistical re orts' oral re orts and written re orts. 3er!or#ance #easures #ay +e o+$ecti0e or su+$ecti0e. O+$ecti0e er!or#ance #easures are indications o! $o+ er!or#ance that can +e 0eri!ied +y others and are usually :uantitati0e. O+$ecti0e criteria include :uality o! roduction' degree o! training needed and accidents in a gi0en eriod' a+senteeis#' length o! ser0ice' etc. Su+$ecti0e er!or#ance #easures are ratings that are +ased on the ersonal standards o! o inions o! those doing the e0aluation and are not 0eri!ia+le +y others. Su+$ecti0e criteria include ratings +y su eriors' ,nowledge a+out o0erall goals' contri+ution to socio(cultural 0alues o! the en0iron#ent. It should +e noted here that o+$ecti0e criteria can +e laid down while e0aluating lower le0el $o+s' which are s eci!ic and de!ined clearly. %his is not the case with #iddle le0el ositions that are co# le" and 0ague. Ta.le D/!: Measurement of Performance of a Telephone )perator < tele hone co# any su er0isor' while #easuring the tele hone o erator #ay o+ser0e the !ollowing. T T T er!or#ance o! a

Use o! co# any rocedures such as staying cal#' !ollowing co# any rules and regulations' etc. 3leasant hone #anners such as s ea,ing olitely in a courteous tone. Ball( lace#ent accuracy. lacing o erated assisted calls accurately.

%he rater2s #onitoring o! an o erator2s calls is direct o+ser0ation. %he actual on(line er!or#ance is e0aluated directly. /or e"a# le' i! a written test is held !or tele hone o erators a+out co# any rules and regulations !or handling e#ergency calls' international calls' etc.' then the rocess o! e0aluation +eco#es indirect as it is +ased on a written re ort a+out the er!or#ance o! o erators in the test. d/ Compare act!al performance +ith standards and disc!ss the appraisal* *ctual er!or#ance #ay +e +etter than e" ected and so#eti#es it #ay go o!! the trac,. 1hate0er +e the conse:uences' there is a way to co##unicate and discuss the !inal outco#e. %he assess#ent o! another erson2s contri+ution and a+ility is not an easy tas,. It has serious e#otional o0ertones as it a!!ects the sel!(estee# o! the a raisee. <ny a raisal +ased on su+$ecti0e criteria is li,ely to +e :uestioned +y the a raisee and lea0e hi# :uite de$ected and unha y when the a raisal turns out to +e negati0e. )1

e/ Taking corrective action, if necessary* Borrecti0e action is o! two ty es. %he one' which uts out the !ires i##ediately and other one' which stri,es at the root o! the ro+le# er#anently. I##ediate action sets things right and get things +ac, on trac, whereas the +asic correcti0e action gets to the source o! de0iations and see,s to ad$ust the di!!erence er#anently. Basic correcti0e ste s see, to !ind out how and why er!or#ance de0iates. Appraisal %,stem 'esign %here is no one right way to conduct an a raisal' such that it is a ro riate !or all circu#stances. ;ach organiKation #ust e"a#ine its own uni:ue hu#an resource !eatures' tas, characteristics' wor, culture and internal cli#ate6 and !igure out the recise syste# that will +e !unctional as well as acce ta+le in its own conte"t. <nne"ure 1?.1 ro0ides a !ra#ewor, !or analysis' which can +e used to ,ic,(o!! an a raisal syste# design. < cardinal rinci le in the design o! any syste#' howe0er' is that it #ust +e si# le and +e acce ta+le to its users. Howe0er' it is not easy to always satis!y these a arently logical conditions. 4ole(%as, Bharacteristics. <ccording to Brin,erho!! and 5anter' three 5ole?Tas' .haracteristics in!luence design choices !or an a raisal syste#. the e"tent of role?tas' complexity or si# licity' role?tas' clarity or a#+i( guity' and redicta+ility or otherwise of role?tas' outcomes. 4ole(%as, Bo# le"ity or Si# licity. <ccurate a raisal o! er!or#ance is easier in res ect o! role(tas,s that are relati0ely si# le. 4ole(tas, co# le"ity can #a,e the rocess o! arri0ing at 0alid and re lia+le a raisal o! er!or#ance harder. Bo# le"ity o! role(tas,s can arise out o!. =a> Multi licity o! the in ut acti0ities. =+> Di0ersity o! inter0ening rocesses. =c> Cariety o! user(e" ectations !ro# the out uts. (ole+Task Clarit, or Am.iguit,: 4ole(tas, clarity ertains to the degree to which all concerned understand' in the sa#e way' as to what the incu#+ent o! the role is e" ected to do' and achie0e(shared clarity on role(tas, acti0ities' and goals. 4ole(tas,s which ha0e 0ague or a#+iguous acti0ities or goals' or those 0ariously understood +y di!!erent sta,eholders' create se0eral ro+le#s !or the a raiser. @hat constitutes performance is the +asic :uestion such role(tas,s !ail to answer with a degree o! recision. One conse:uence o! goal a#+iguity is that some er!or#ance indicators(which are clearer and #ore :uanti!ia+le' and there!ore #ore easily #easura+le(tend to +e seen as the totality o! tas,(goals. %his can so#eti#es #islead. /or e"a# le' the goal !or a !inance e"ecuti0e #ay +eco#e cost reduction' rather than ensuring higher roducti0ity o! the #oney. Predicta.ilit, of (ole+Task )utcomes: 3redicta+ility o! role(tas, outco#es is' naturally' o! ut#ost rele0ance where a raisal is to +e lin,ed to #easura+le outco#es. In redicta+le role(tas,s' the rela tionshi +etween a raisee e!!ort and a raisee achie0e#ent re#ains relati0ely sta+le' which #a,es it easier to esta+lish co##only understood' #ore acce ta+le' and #easura+le standards and er!or#ance indicators. Io+s where iece(rate wage ay#ents are esta+lished are clear e"a# les o! redicta+le role(tas, outco#es. nu#+er o! corrected ages ty ed' or nu#+er o! statues ainted' etc. Bon0ersely' un redicta+le tas,s #a,e accurate assess#ents o! er!or#ance #uch harder. 1here +y the nature o! the tas, itsel!' or that o! its en0iron#ent or conte"t' tas, outco#es are hard to redict(as in se0eral #anagerial tas,s(the relationshi +etween er!or#ance and achie0e#ent re#ains su+stantially 0ague. %his #a,es setting o! er!or#ance standards or e" ectations so#ewhat #ore di!!icult. Choices in Appraisal %,stem 'esign: On consideration o! role(tas, characteristics' designers o! the syste# #a,e se0eral concrete choices' or asse# tions. OrganiKational characteristics in!or#ing a raisal syste# design include internal cli#ate' leadershi styles' nature o! its +usiness' etc. /or e"a# le' an organiKation with a controlled cli#ate will !ind an o en syste# o! a raisal unco#!orta+le. Si#ilarly' an organiKation with autocracy as the do#inant leadershi style #ay !ind artici atory rocesses incongruent. Manage#ents #ust care!ully recogniKe their assu# tions and +elie!s' their hu#an resource hiloso hy +e!ore they #a,e choices +etween di!!erent a roaches to any H4 su+(syste# design. <s discussed earlier the nature o! tas,s is i# ortant to consider while conce tualiKing a raisal syste# design. %he nature o! organiKational tas,s will naturally 0ary with the +usiness o! the organiKation. ro$ect orga niKation' 0oluntary de0elo #ent organiKation' trading organiKation' research organiKation' #ass roduction #anu!acturing organiKation' educational institution' etc. So#e other areas in which choices are called !or are. 3rocesses +y which er!or#ance data will +e gathered and co# iled' such that it is as co# lete and accurate as ossi+le( re!era+ly agreed+etween a raiser and the a raisee. )?

Bench#ar,s to +e used !or assessing er!or#ance' considering tas,s er!or#ed +y a 0ary as !ollows' or +e co#+inations o!. ( ( (

raisees. %hese #ay

%argets unilaterally set +y the #anager. ;" ectations(1or, goals and lans or targets($ointly deter#ined and #utually agreed u on +y #anagee and the #anager. Britical incidents. successes or !ailures' etc. 1or, +eha0iours' e.g. #anagee relationshi with counter arts. Other ways or !actors indicating a raisee2s wor, out ut or contri+ution to the organiKation2s goal achie0e#ent. 3rocesses +y which er!or#ance data will +e analysed in the light o! +ench#ar,=s> used. Methods o! interactions +etween a raiser and the a raisee' andstages in the a raisal rocess at which these interactions will ta,e lace. Inter!aces lin,ing er!or#ance a raisal with other H4 and organiKational su+(syste#s' /re:uency' and ti#ings' at which er!or#ance a raisal will +e carried out.

< raisal /or#at. In designing a raisal !or#at' e0ery e!!ort is #ade to i# ro0e data+ase to reduce need !or the a raiser to a ly her $udge#ent on un0eri!ied or i# ressionistic in!or#ation. %his can +e done in se0eral ways. <0oid <#+iguity. < raisal !or#at is una#+iguous as regards performance indicators. /our areas can +e a ro riately used in er!or#ance a raisal. =a> =+> =c> =d> 3er!or#ance in relationshi to er!or#ance standards a lica+le to the a raisee. /ul!ill#ent o! res onsi+ilities listed in her current role descri tion. /orces in her wor, conte"t and rele0ant en0iron#ent' that hel or hinder er!or#ance. General nor#s' 0alues or wor, +eha0iours e" ected o! all sta!!.

4ating Scale. <n i# ortant art o! a raisal !or#at is the rating scale. <ccording to so#e' the ideal !or#at would +e' 2Did this erson do her $o+9(S8esS or SNoS =Bircle one>2. Ideally' yesQ Un!ortunately' howe0er' H4 syste#s as well as a raisers in our organiKations ha0e yet to reach a le0el o! so histication and recision that would #a,e this ossi+le. <lso' a raisees ha0e not yet de0elo ed the ,ind o! trust in organiKations and a raisers to acce t such +are $udge#ents. 3eo le want so#e #easure o! their er!or#ance' and an a raisal rationally +ased on that.

In se0eral organiKations a raisals are #ade on a rating scale' where rating oints are descri+ed through e0aluati0e language(outstanding or excellent, very good, well above average, satisfactory, etc.' or nu#erically' 1'?'@'.. (with the highest and the lowest ends o! the scale gi0en a descri tion !or each !actor. So#eti#es the #iddle or so#e other oints on the scale #ay also wear a descri tion. Di!!erent titles as well as nu#+ers' can +e used(+ut the ,ey oint is to #a,e very clear distinctions +etween the ratings. %hese categories need to ensure uni!or# e0aluations +y #anagers' there+y #ini#iKing the erce tion or ar+itrary or un!air rating o!ten held +y a raisees. One such set o! ratings' actually used +y an organiKation' is. 7a8 %'ceeds #tandards -%#.. %his rating is !or a raisees who consistently achie0e well +eyond organiKational standards in ,ey areas o! res onsi+ility rele0ant to their role descriptions. %y ical ;S +eha0iours include generating new' ractical ideas !or i# ro0ing e!!ecti0eness6 assu#ing e" anded res onsi+ilities !or tea# e!!orts not en0isaged in their role descri tions6 going +eyond #erely ercei0ing a ro+le# to de0elo ing a !easi+le action lan to sol0e it. 1hile so#e #anagees #ay do this occasionally or in one or two s eci!ic wor, areas' this rating is gi0en to truly e"ce tional er!or#ers. <n $) ty ically shows no wea, areas' de#onstrates thorough ,nowledge o! the $o+ and has a strong +ac,ground o! rele0ant e" erience. I! one is consistently rated $), there #ay +e need to #a,e a re0iew to deter#ine i! she is correctly laced. !ocumentation needs to be provided to support an overall rating of $). In other words' this rating needs to +e $usti!ied with concrete e"a# les o! e"ce tional +eha0iour and achie0e#ents. =+> /ood (erformance -/(.. %his rating indicates that the a raisee consistently er!or#s to the standards rele0ant to her role descri tion. She does her $o+ well in a co# lete way' achie0ing #a$or o+$ecti0es. 3er!or#ance #ay e"ceed e" ectations in so#e areas and !all short in others' +ut ,ey res onsi+ilities are satis!actorily !ul!illed. She de#onstrates ,nowledge' s,ills and attitudes re:uired +y the $o+ !or which she has +een hired. She is a co# etent' de enda+le' highly 0alued #e#+er o! the organiKation. )@

=c> =d>

eeds Improvement - I.. %his #eans that the a raisee needs to i# ro0e wor, +eha0iour' or er!or#ance' in one or #ore ,ey or ri#ary areas o! res onsi+ility outlined in her role descri tion. %his rating re!lects a +elie! that the #anagee can #a,e the re:uired changes and is ca a+le o! i# ro0e#ent in the designated areas. It con0eys con!idence in otential o! the #anagee' yet ac,nowledges that signi!icant i# ro0e#ent is needed in order to er!or# to e" ected standards. #!b)#tandard (erformance -##(.. %his rating indicates that the a raisee consistently er!or#s +elow ,ey er!or#ance standards in her role descri tion. !ocumentation should be provided to descri+e instances o! su+(standard er!or#ance. %his would indicate i! the #anagee has +een e" licitly ad0ised o! de!iciencies during the year rior to the a raisal' and 0eri!y what re:uisite su ort was ro0ided +y the su er0isor to o0erco#e these.

=e>

<n SS3 indicates that the #anagee will +e laced under observation !or a eriod deter#ined +y the su er0isor and the senior #anage#ent. I! changes aren2t !orthco#ing' the result will +e out lace#ent' or a #o0e to another osition or de#otion. In other words' an SS3 has 0ery serious conse:uences. It should not +e ossi+le to get an SS3' two years in a row. Both the ;S and the SS3 ratings suggest e"traordinary +eha0iour(either e"tra good or e"tra +ad. Under nor#al circu#stances' a large #a$ority o! #anagees should earn the G3 rating. < raisees should ,now that a G3 rating #eans co##enda+le achie0e#ent. 1hile inter reting this scale' care #ust +e ta,en that )tandards in the 5ole !escription arc understood distinctly !ro# $xpectations or targets lanned !or a #anagee in res ect o! an a raisal year. De ending on ast er!or#ance' current strengths or wea,nesses o! a #anagee' or !or so#e other reason e"traneous to the #anagee2s wor, situation' targets #ay +e set higher or lower than the organiKational standards. Using such targets as organiKational standards will' there!ore' surely corru t the a raisal. Besides s eci!ied rating le0els' there needs to +e A* 1ot *pplicable (1* colu#n. N< will a ly to areas' which #ay not +e a ro riate to rate' gi0en the #anagee riorities or acti0ities during the year. /or instance' a su er0isor and her su er0isee #ay agree at the +eginning o! the year to sus end a certain art o! role descri tion to acco##odate a #ore urgent' or #ore i# ortant assign#ent. %his change #ay +e noted in the a raisal and the sus ended art o! role descri tion not rated. Se0eral other considerations will in!or# design o! the rating scale. S 4ating a raisee er!or#ance un!olds se0eral s,ills. how well she did at initial lanning' ongoing ro+le#( sol0ing' ada ting lans to une" ected e0ents and yet achie0ing the o0erall o+$ecti0es' etc. %he !or#at should ro0ide s ace !or a descri ti0e su##ary rather than $ust a +are doneBnot done rating. T 3verall *ssessment is use!ul to #a,e !or all a organiKed into. raisees regardless o! role or grade. %hese #ay +e

=i> 1or, 3er!or#ance' =ii> 1or, 4elationshi s' and =iii> 1or, Ha+its. ;ach category recei0es an ;S' G3' NI or SS3 rating' with e"a# les !or the ;S and SS3 ratings. T < raisal should atte# t to #easure the !ul!ill#ent o! res onsi+ilities +y the a raisee and not only er!or#ance o! tas,s. 8et' it is su+stantially true that due er!or#ance o! tas,s is the #ost li,ely route to achie0e#ent o! $o+ res onsi+ilities. 1here er!or#ance standards ha0e +een de0elo ed' their satis!action is also #easured in relation to the rele0ant $o+ res onsi+ility. %he /inal rating gi0en +y the a raiser re!lects the a raisee2s over all effectiveness, or value to the organiCation?+ased on her achie0e#ent o! er!or#ance targets' !ul!ill#ent o! role descri tion res onsi+ilities and general wor, +eha0iour. ;ach o! these areas is e:ually i# ortant. Dood performance e:uals good performance in each one o! these(in e0ery as ect o! the $o+. %he a raiser #ust a0oid selecting one area as #ore i# ortant than the others6 and the a raisee needs to understand that she is a raised comprehen sively?enco# assing all these' as ects. It is ossi+le that a #anagee is technically e"tre#ely ro!icient' +ut ossesses 0irtually none o! the hu#an relations2 s,ills i# licit in wor, relations. Such an a raisee #ust' as a result o! the a raisal rocess' understand where she is not er!or#ing to standards. &i,ewise' i! an a raisee wor,s really hard' is !riendly and coo erati0e' +ut has little out ut to show at end o! the day' she also is not er!or#ing to standards. Managers need to hel sta!! see that they will +e a raised holistically. )A

;ach organiKation has s eci!ic needs +ased on its #ission' tas,s' culture' 0alues' etc. in the light o! which it see,s to design its a raisal !or#at. 1hile designing' s ecial attention #ay +e gi0en to so#e o! the !ollowing. In assessing performance, !ocus on behaviour =what one does> rather than on :ualities or attri+utes =what we thin, one is>. <0oid !actors li,e creative, assertive, innovative, dependable. %hese are intangi+le' in0ite dis utes and are in !act #ore li,e otential !actors than er !or#ance !actors. Ha0e li#ited oints on the rating scale. <ssess#ents tend to +eco#e inaccurate as the nu#+er o! oints on the scale increases. Insist on docu#entation and $usti!ication o! at least the highest and the lowest ratings. )tandardiCe and clearly understand the ter#s used. Insist that the a raisal' when co# leted' re!lects in ut o! +oth the a raiser and the a raisee as recorded during )toc'ta'ing Perfor mance stage. < artici atory rocess o! designing the organiKation2s a raisal syste# can hel e!!ecti0ely de#ysti!y so#e o! the an"iety( roducing di#ensions o! the syste#' and create a #ore conduci0e en0iron#ent to run it. < raisal 3rocesses. < good !or#at #ay +e necessary !or e!!ecti0e a raising' +ut it #ay not +e enough. It will need to +e su orted +y healthy rocesses. So#e o! the !ollowing :uestions will see, answers. =a> =+> =c> =d> =e> How to eli#inate =or at least su+stantially reduce> sa+otage !ro# rating errors( hah e!!ect' hy ercritical or horn e!!ect' central tendency' lac, o! +alance(leniency or strictness' etc.9 How to ena+le the a raiser to e:ually ta,e into account the a raisee2s total er!or#ance during the year' and not ro0ide dis ro ortionate weightage to certain isolated incidents or the #ost recent er!or#ance9 How to ena+le each er!or#ance !actor or di#ension to +e assessed inde endently' unin!luenced +y the e"istence or non(e"istence o! the other di#ensions or !actors9 How to ensure that each a raisee is gi0en her due and that no a raisee is assessed higher or lower than what she deser0es9 How to #a"i#iKe +ene!its to +e deri0ed !ro# the a raisal rocess and #ini#iKe threats and tensions there!ro#9 %y ically' a raisal ti#e is !eared !or the high stress it causes in all con cerned(a raisee' a raiser' others. 8et' it is needed !or the #any ur oses it !ul!ills.

Howe0er' so#e tension is ine0ita+le i! er!or#ance a raisals hold i# ortance !or a raisers and the a raisees. %ension and an"iety are +uilt(in #echanis#s in the hu#an syche' which show that the concerned eo le care. %o that e"tent this can indicate that the syste# wor,s. %ailoring Syste# to the OrganiKation. %he design is not co# lete till the syste# is tailored to the organiKation2s s eci!ic needs. %his will in0ol0e +rainstor#ing and reality(testing on so#e o! the !ollowing issues. 1hat ur oses will the a raisal syste# ser0e !or the organiKation9 It hel s to choose such ur oses that can realistically +e realiKed in light o! the other syste#s in lace. How to #a,e the syste# design and introduction artici atory' in0ol0ing all seg#ents o! users' to reduce su+se:uent resistance to the syste#9 Does the syste# evolve !ro# the e"isting ractice(!or#al or in!or#al9 I! not' why not9 ;0ol0ing a new syste# !ro# e"isting ractice attracts lesser resistance' !acilitating acce tance and i# le#entation. 1hat rinci les and assu# tions underlie other H4 su+(syste#s and rocedures in the organiKation' with which the a raisal su+(syste# #ust #atch and lin, s#oothly in order to o ti#iKe the o0erall e!!ect o! the total H4 strategy9 1hat a raisal syste#s are in use in other si#ilar organiKations and their e" erience = ositi0e and negati0e>9 %his hel s tentati0ely assess the !it +etween a raisal ractices and the nature o! the organiKation2s +usiness. 1hat are the #easures to +e incor orated into the syste#' to e" lain it to the users' !or #eticulous and consistent i# le#entation(in s irit9 1hat !easi+le strategy is to +e used !or s#ooth introduction o! the a raisal syste#9 1hat seg#ent o! sta!! o ulation will the syste# cater to9 %he nature o! their tas,s and tas, outco#es in ter#s o! co# le"ity' redicta+ility' #easura+ility' etc. 1ill it cater to all #anagees' all #anagers .or so#e s eci!ic seg#ents' e.g. technical sta!! or ad#inistrati0e sta!!' sailors or the shore sta!!' !lying or the ground sta!!' $ournalist or non($ournalist sta!!' #anagers or technical s ecialists' etc. <t what !re:uency and ti#e will the a raisal e"ercise +e conducted !or di!!erent le0els and categories o! sta!!9 Does it hel to a raise all at the sa#e ti#e' or is there #erit in staggering di!!erent categories9 What is to .e Appraised& ;0ery organisation has to decide u on the content to +e a raised +e!ore the Generally' the content to +e a raised is deter#ined on the +asis o! $o+ analysis. )rogra##e is a ro0ed.

Ta.le D/!: Appraisal *actors used in India Indian To.acco A/C/C/ Ltd I/)/C/ Ltd Compan, 1. <+ility to lan' 1.<+ility to ta,e 1. Io+ delegate' control and decision ,nowledge coordinate ?. 5nowledge o! $o+ ?.&eadershi ?. Duality and de enda+ility @.Blarity a+out @.Organising a+ility @. Duantity o+$ecti0es o! wor, A.Bost consciousness A.Understanding A.3lanning' and result and con!or#ity organising and with olicy controling -.3ower o! e" ression' -.Iudge#ent -.De0elo ing written J 0er+al eo le G.Decision(#a,ing G.;# loyee relationshi 7.Delegation %andoJ 7India8 2nion Car.ide of Ltd India Ltd 1. Duantity o! 1.Io+ ,nowledge wor, ?. <0aila+ility wor, @. learn A.5nowledge o! A.<+ility to handle wor, eo le -. Initiati0e -.Iudge#ent to o! ?.1or, out ut

<+ility to @.Dri0e

G. Bost G. De end(a+ility G.<+ility consciousness co##unicate 7.Bo# rehension 7. Intelligence 7. 3ersonality 7.Breati0ity and decision( #a,ing ).Use o! discretion and ).<+ility to ). &eadershi ). %idiness ).Organising $udge#ent co##unicate a+ility *.4esource!ulness and *.Socia+ility *.Initiati0e and *. <ttendance industry original thin,ing 17. Boo eration 17. <+ility to run 17. <ttitude and #eetings coo eration 11. Manner and general 11. 5nowledge and 11. Integrity +earing e"ecution o! res onsi+ilities 1?.Dealings and 1?. <ttitude to wor, relations with seniors J $uniors 1@. &eadershi 1@. &oyalty 1A.Bourage to disagree 1A. Initiati0e J to reason tact!ully

%he content to +e a raised #ay +e in the !or# o! contri+ution to organisational o+$ecti0es =#easures> li,e roduction' sa0ings in ter#s o! cost' return on ca ital' etc. Other #easures are +ased on. =1> +eha0iours which #easure o+ser0a+le hysical actions' #o0e#ents' =?> o+$ecti0es which #easure $o+ related results li,e a#ount o! de osits #o+ilised' and =@> traits which are #easured in ter#s o! ersonal characteristics o+ser0a+le in e# loyee2s $o+ acti0ities. %he content to +e a raised #ay 0ary with the ur ose o! a raisal and ty e and le0el o! e# loyees. %he a raisal !actors used in so#e leading Indian industries are shown +elow in %a+le *.@. Who =ill Appraise& %he a raiser #ay +e any erson who has thorough ,nowledge a+out the $o+ content' contents to +e a raised' standards o! contents and who o+ser0es the e# loyee while er!or#ing a $o+. %he a raiser should +e ca a+le o! deter#ining what is #ore i# ortant and what is relati0ely less i# ortant. He should re are re orts and #a,e $udge#ents without +ias. %y ical a raisers are. su er0isors' eers' su+ordinates' e# loyees the#sel0es and users o! ser0ices and consultants. )upervisors( Su er0isors include su eriors o! the e# loyee' other su eriors ha0ing ,nowledge a+out the wor, o! the e# loyee and de art#ental head or #anager. %he general ractice is that i##ediate su eriors a raise the er!or#ance' which in turn' is re0iewed +y the de art#ental headE#anager. %his is +ecause su er0isors are res onsi+le !or #anaging their su+ordinates and they ha0e the o ortunity to o+ser0e' direct and control the su+ordinates continuously. Moreo0er' they are accounta+le !or the success!ul er!or#ance o! their )G

su+ordinates. So#eti#es other su er0isors' who ha0e close contact with e# loyee wor, also a 0iew to ro0ide additional in!or#ation.

raise with a

On the negati0e side' i##ediate su er0isors #ay e# hasise2 certain as ects o! e# loyee er!or#ance to the neglect o! others. <lso' #anagers ha0e +een ,nown to #ani ulate e0aluations to $usti!y their decisions on ay increases and ro#otions. Howe0er' the i##ediate su er0isor will continue to e0aluate e# loyee er!or#ance till a +etter alternati0e is a0aila+le. Organisations' no dou+t' will see, alternati0es +ecause o! the wea,nesses #entioned a+o0e and a desire to +roaden the ers ecti0e o! the a raisal. Peers( 3eer a raisal #ay +e relia+le i! the wor, grou is sta+le o0er a reasona+ly long eriod o! ti#e and er!or#s tas,s that re:uire interaction. Howe0er' little research has +een conducted to deter#ine how eers esta+lish standards !or e0aluating others or the o0erall e!!ect o! eer a raisal on the grou 2s attitude. 1hate0er research was done on this to ic was #ostly done on #ilitary ersonnel at the #anage#ent or re(#anage#ent le0el =o!!icers or o!!icer candidates> rather than on e# loyees in +usiness organisations. More o!ten than not in +usiness organisations i! e# loyees were to +e e0aluated +y their eers' the whole e"ercise #ay degenerate into a o ularity contest' a0ing the way !or the i# air#ent o! wor, relationshi s. Ta.le D/": %elf Appraisal *orm+ A Model Na#e. Designation. Duali!ications. BategoryEGrou . 1. ?. @. A. -. G. 7. ). *. 17. 11. 1?. 1@. 1A. 1-. 1G. 17. 1). 1*. ?7. ?1. ??. ?@. ?A. ?-. ?G. ?7. ?). ?*. @7. Date Bo##ents o! I##ediate Su erior Signature. De art#ent. ;# loyee Bode No. Scale o! 3ay and %otal Salary

Na#e and designation o! the i##ediate su erior. S eci!y the nature o! su er0ision recei0ed !ro# the su erior. Indicate your relationshi with your su erior. Nu#+er o! su+ordinates. Indicate the nature o! duties o! your su+ordinates. S eci!y the nature o! !ollowershi s o! your su+ordinates. Indicate the le0el o! coo eration recei0ed !ro# your su+ordinates. How #any ti#es your su+ordinates re!used your orders. Do your su+ordinates a reciate your style o! leadershi 9 Do your #aintain sound hu#an relations with your su+ordinates9 Do you attend to your wor, unctually9 S eci!y the le0el o! your sel!(e" ression' +oth written and oral. Indicate your le0el o! wor, with others. Do you re!ertea# #anage#ent9 S eci!y the nature and le0el o! your initiati0e. %o what e"tent you ,now a+out your $o+ and the organisation9 S eci!y the le0el o! your technical and other s,ills. Indicate your a+ility to understand new things. Bo##ent a+out your originality and resource!ulness. Identi!y the areas o! wor, to which you are +est suited. Bo##ent a+out your le0el and nature o! $udge#ent s,ills. Do you ha0e s,ills o! integrity9 Do you ha0e the a+ility to acce t res onsi+ility9 &ist out your achie0e#ents during the resent year. 1ould li,e to de0elo yoursel!9 I! yes' s eci!y the areas o! technical' #arginal and hu#an relations2 areas. <re you interested in s ecialised $o+s or generalised $o+s9 Indicate their i# ro0e#ents in your wor, er!or#ance. %o what e"tent you a0ailed the lea0e !acility9 S eci!y your artici ation in e"tra curricular acti0ities. 3ro0ide any other related in!or#ation. Signature o! the ;# loyer

)7

%u.ordinates: %he conce t o! ha0ing su eriors rated +y su+ordinates is +eing used in #ost organisations today' es ecially in de0elo ed countries. /or instance in #ost US uni0ersities students e0aluate a ro!essor2s er!or#ance in the classroo#. Such a no0el #ethod can +e use!ul in other organisational settings too ro0ided the relationshi s +etween su eriors and su+ordinates are cordial. Su+ordinates2 ratings in such cases can +e :uite use!ul in identi!ying co# etent su eriors. %he rating o! leaders +y co#+at soldiers is an e"a# le. Howe0er' the !ear o! re risal o!ten co# els a su+ordinate to +e dishonest in his ratings. %hough use!ul in uni0ersities and research institutions' this a roach #ay not gain acce tance in traditional organisations where su+ordinates ractically do not en$oy #uch discretion. %elf+appraisal: I! indi0iduals understand the o+$ecti0es they are e" ected to achie0e and the standards +y which they are to +e e0aluated' they are to a great e"tent' in the +est osition to a raise their own er!or#ance. <lso' since e# loyee de0elo #ent #eans sel!(de0elo #ent' e# loyees who a raise their own er!or#ance #ay +eco#e highly #oti0ated. 2sers of ser4ices: ;# loyees2 er!or#ance in ser0ice organisations relating to +eha0iours' ro# tness' s eed in doing the $o+ and accuracy can +e +etter $udged +y the custo#ers or users o! ser0ices. /or e"a# le' a teacher2s er!or#ance is +etter $udged +y students and the er!or#ance o! a +us conductor is +etter $udged +y assengers. Consultants: So#eti#es consultants #ay +e engaged !or a raisal when e# loyees or e# loyers do not trust the su er0isory a raisal and #anage#ent does not trust the sel!(a raisal or eer a raisal or su+ordinate a raisal. In this situatuation' consultants are trained and they o+ser0e the e# loyee at wor, !or su!!iciently long eriods !or the ur ose o! a raisal. In 0iew o! the li#itations associated with each and e0ery #ethod discussed a+o0e' se0eral organisations !ollow a #ulti le rating syste# wherein se0eral su eriors se arately !ill out rating !or#s on the sa#e su+ordinate. %he results are then ta+ulated. When to Appraise& /or#al a raisals are conducted whene0er the su er0isor or ersonnel #anagers !eel it in necessary. Howe0er' syste#atic a raisals are conducted on a regular +asis' say' !or e"a# le' e0ery si" #onths or annually. One study o! ?AA !ir#s !ound that a raisals were #ost o!ten conducted once a year. 4ecent research suggests' howe0er' that #ore !re:uent !eed+ac, correlates ositi0ely with i# ro0ed er!or#ance. 4esearch has also indicated that a raisals !or de0elo #ent ur ose should +e se arated !ro# those !or salary ad#inistration. Pro.lems =ith Performance Appraisal %he role#s inherent in er!or#ance a raisal #ay +e listed thus.

a/ 0!dgement errors* 3eo le co##it #ista,es while e0aluating eo le and their er!or#ance. Biases and $udge#ent errors o! 0arious ,inds #ay s oil the show. Bias here re!ers to inaccurate distortion o! a #easure#ent. %hese are. i/ First impressions -primacy effect.* %he a raiser2s !irst i# ressions o! a candidate #ay colour his e0aluation o! all su+se:uent +eha0iour. In the case o! negati0e ri#acy e!!ect' the e# loyee #ay see# to do nothing right6 in the case o! a ositi0e ri#acy e!!ect' the e# loyee can do no wrong.

ii/ 1alo* %he Halo error occurs when one as ect o! the su+ordinate2s er!or#ance a!!ects the rater2s e0aluation o! other er!or#ance di#ensions. I! a wor,er has !ew a+sences' his su er0isor #ight gi0e the wor,er a high rating in all other areas o! wor,. Si#ilarly an e# loyee #ight +e rated high on er!or#ance si# ly +ecause he had a good dress sense and co#es to o!!ice unctuallyQ. iii/ 1orn effect* %he rater2s +ias is in the other direction' where one negati0e :uality o! the e# loyee is +eing rated harshly. /or e"a# le' the ratee does not s#ile nor#ally' so he cannot get along with eo leQ i4/ &eniency* De ending on rater2s own #ental #a,e(u at the ti#e o! a raisal raters #ay +e rated 0ery strictly or 0ery leniently. < raisers generally !ind e0aluating others di!!icult' es ecially where negati0e ratings ha0e to +e gi0en. < ro!essor #ight hesitate to !ail a candidate when all other students ha0e ))

cleared the e"a#ination. %he &eniency error can render an a raisal syste# ine!!ecti0e. I! e0eryone is to +e rated high' the syste# has not done anything to di!!erentiate a#ong e# loyees. 4/ Central tendency* <n alternati0e to the leniency e!!ect is the central tendency' which occurs when a raisers rate all e# loyees as a0erage er!or#ers. /or e"a# le' a ro!essor' with a 0iew to lay it sa!e' #ight gi0e a class grades nearly e:ual to B' regardless o! the di!!erences in indi0idual er!or#ance. 4i/ #tereotyping* Stereoty ing is a #ental icture that an indi0idual holds a+out a erson +ecause o! that erson2s se"' age' religion' caste' etc. By generalising +eha0iour on the +asis o! such +lurred i#ages' the rater grossly o0eresti#ates or underesti#ates a ersons2 er!or#ance. /or e"a# le' e# loyees !ro# rural areas #ight +e rated oorly +y raters ha0ing a so histicated ur+an +ac,ground i! they 0iew rural +ac,ground negati0ely. 4ii/ Recency effect* In this case the rater gi0es greater weightage to recent occurrences than earlier er!or#ance. /or e"a# le' an e"cellent er!or#ance that #ay +e si" or se0en #onths old is con0eniently !orgotten while gi0ing a oor rating to an e# loyee2s er!or#ance which is not so good in recent wee,s. <lternati0ely' the a raisal rocess #ay su!!er due to a 2s ill o0er e!!ectW' which ta,es lace when ast er!or#ance in!luences resent ratings. ./ (oor appraisal forms* %he a raisal rocess #ight also +e in!luenced +y the !ollowing !actors relating to the !or#s that are used +y raters. T T T T %he rating scale #ay +e :uite 0ague and unclear %he rating !or# #ay ignore i# ortant as ects o! $o+ er!or#ance. %he rating !or# #ay contain additional' irrele0ant er!or#ance di#ensions. %he !or#s #ay +e too long and co# le".

c/ &ack of rater preparedness* %he raters #ay not +e ade:uately trained to carry out er!or#ance #anage#ent acti0ities. %his +eco#es a serious li#itation when the technical co# etence o! a ratee is going to +e e0aluated +y a rater who has li#ited !unctional s ecialisation in that area. %he raters #ay not ha0e su!!icient ti#e to carry out a raisals syste#atically and conduct thorough !eed+ac, sessions. So#eti#es the raters #ay not +e co# etent to do the e0aluations owing to a oor sel!(i#age and lac, o! sel!(con!idence. %hey #ay also get con!used when the o+$ecti0es o! a raisal are so#ewhat 0ague and unclear. d/ Ineffective organisational policies and practices* I! the sincere a raisal e!!ort ut in +y a rater is not suita+ly rewarded' the #oti0ation to do the $o+ thoroughly !inishes o!!. So#eti#es' low ratings gi0en +y raters are 0iewed negati0ely +y #anage#ent ( as a sign o! !ailure on the art o! rater or as an indication o! e# loyee discontent. So' #ost e# loyees recei0e satis!actory ratings' des ite oor er!or#ance. Nor#ally' the rater2s i##ediate su er0isor #ust a ro0e the ratings. Howe0er' in actual ractice' this does not ha en. <s a result the rater 2goes o!! the hoo,2 and causes considera+le da#age to the rating rocess. Methods of Performance Appraisal %he er!or#ance a raisal #ethods #ay +e classi!ied into three categories' as shown in /igure *.1.
P e r fo r m a n c e A p p r a is a l T e c h n i@ u e s In d i4 id u a l e 4 a lu a tio n m e th o d s 1 / C o n fid e n tia l r e p o r t 2 / # s s a , e 4 a lu a tio n ! / C r itic a l in c id e n ts " / C h e c k lis ts : / 3 r a p h ic r a tin g s c a le < / A e h a 4 io u r a ll, a n c h o r e d r a tin g s c a le s G / * o rc e d c h o ic e m e th o d D/ M A) M u ltip le +p e r s o n e 4 a lu a tio n m e th o d s ) th e r m e th o d s ( a n k in g P e r fo r m a n c e te s ts * ie ld r e 4 ie = te c h n i@ u e P a ir e d c o m p a r is o n * o r c e d d is tr i. u tio n

*ig/ D/1: Performance Appraisal Methods Indi4idual #4aluation Methods Under the indi0idual e0aluation #ethods o! #erit rating' e# loyees are e0aluated one at a ti#e without co# aring the# with other e# loyees in the organisation. )*

a/ Confidential report* It is #ostly used in go0ern#ent organisations. It is a descri ti0e re ort re ared' generally at the end o! e0ery year' +y the e# loyee2s i##ediate su erior. %he re ort highlights the strengths and wea,nesses o! the su+ordinate. %he re ort is not data+ased. %he i# ressions o! the su erior a+out the su+ordinate are #erely recorded there. It does not o!!er any !eed+ac, to the a raisee. %he a raisee is not 0ery sure a+out why his ratings ha0e !allen des ite his +est e!!orts' why others are rated high when co# ared to hi#' how to recti!y his #ista,es' i! any6 on what +asis he is going to +e e0aluated ne"t year' etc. Since the re ort is generally not #ade u+lic and hence no !eed+ac, is a0aila+le' the su+$ecti0e analysis o! the su erior is li,ely to +e hotly contested. In recent years' due to ressure !ro# courts and trade unions' the details o! a negati0e con!idential re ort are gi0en to the a raisee. ./ %ssay eval!ation* Under this #ethod' the rater is as,ed to e" ress the strong as well as wea, oints o! the e# loyee2s +eha0iour. %his techni:ue is nor#ally used with a co#+ination o! the gra hic rating scale +ecause the rater can ela+orately resent the scale +y su+stantiating an e" lanation !or his rating. 1hile re aring the essay on the e# loyee' the rater considers the !ollowing !actors. =i> Io+ ,nowledge and otential o! the e# loyee6 =ii> ;# loyee2s understanding o! the co# any2s rogra##es' olicies' o+$ecti0es' etc.6 =iii> %he e# loyee2s relations with co(wor,ers and su eriors6 =i0> %he e# loyee2s general lanning' organising and controlling a+ility6 =0> %he attitudes and erce tions o! the e# loyee' in general. ;ssay e0aluation is a non(:uantitati0e techni:ue. %his #ethod is ad0antageous in at least one sense' i.e.' the essay ro0ides a good deal o! in!or#ation a+out the e# loyee and also re0eals #ore a+out the e0aluator. %he essay e0aluation #ethod howe0er' su!!ers !ro# the !ollowing li#itations. T T It is highly su+$ecti0e6 the su er0isor #ay write a +iased essay. %he e# loyees who are syco hants will +e e0aluated #ore !a0oura+ly then other e# loyees. So#e e0aluators #ay +e oor in writing essays on e# loyee er!or#ance. Others #ay +e su er!icial in e" lanation and use !lowery language' which #ay not re!lect the actual er!or#ance o! the e# loyee. It is 0ery di!!icult to !ind e!!ecti0e writers nowadays. %he a raiser is re:uired to !ind ti#e to re are the essay. < +usy a raiser #ay write the essay hurriedly without ro erly assessing the actual er!or#ance o! the wor,er. On the other hand' a raiser ta,es a long ti#e' this +eco#es unecono#ical !ro# the 0iew oint o! the !ir#' +ecause the ti#e o! the e0aluator =su er0isor> is costly.

c/ Critical incident techni2!e* Under this #ethod' the #anager re ares lists o! state#ents o! 0ery e!!ecti0e and ine!!ecti0e +eha0iour o! an e# loyee. %hese critical incidents or e0ents re resent the outstanding or oor +eha0iour o! e# loyees on the $o+. %he #anager #aintains logs on each e# loyee' where+y he eriodically records critical incidents o! the wor,ers +eha0iour. <t the end o! the rating eriod' these recorded critical incidents are used in the e0aluation o! the wor,ers2 er!or#ance. <n e"a# le o! a good critical incident o! a sales assistant is the !ollowing. Iuly ?7 ( %he sales cler, atiently attended to the custo#ers co# laint. He is olite' ro# t' enthusiastic in sol0ing the custo#ers2 ro+le#. On the other hand the +ad critical incident #ay a ear as under.

Iuly ?7 ( %he sales assistant stayed A- #inutes o0er on his +rea, during the +usiest art o! the day. He !ailed to answer the store #anager2s call thrice. He is laKy' negligent' stu++orn and uninterested in wor,. %his #ethod ro0ides an o+$ecti0e +asis !or conducting a thorough discussion o! an e# loyee2s er!or#ance. %his #ethod a0oids recency +ias =#ost recent incidents get too #uch e# hasis>. %his #ethod su!!ers howe0er !ro# the !ollowing li#itations. T T T T Negati0e incidents #ay +e #ore noticea+le than ositi0e incidents. %he su er0isors ha0e a tendency to unload a series o! co# laints a+out incidents during an annual er!or#ance re0iew session. It results in 0ery close su er0ision which #ay not +e li,ed +y the e# loyee. %he recording o! incidents #ay +e a chore !or the #anager concerned' who #ay +e too +usy or !orget to do it. lied to e0aluate the er!or#ance o!

Most !re:uently' the critical incidents techni:ue o! e0aluation is a su eriors rather than o! eers o! su+ordinates. *7

d/ Checklists and +eighted checklists* <nother si# le ty e o! indi0idual e0aluation #ethod is the chec,list. < chec,list re resents' in its si# lest !or#' a set o! o+$ecti0es or descri ti0e state#ents a+out the e# loyee and his +eha0iour. I! the rater +elie0es strongly that the e# loyee ossesses a articular listed trait' he chec,s the ite#6 otherwise' he lea0es the ite# +lan,. < #ore recent 0ariation o! the chec,list #ethod is the weighted list. Under this' the 0alue o! each :uestion #ay +e weighted e:ually or certain :uestions #ay +e weighted #ore hea0ily than others. %he !ollowing are so#e o! the sa# le :uestions in the chec,list. T Is the e# loyee really interested in the tas, assigned9 8esENo T Is he res ected +y his colleagues =co(wor,ers> 8esENo T Does he gi0e res ect to his su eriors9 8esENo T Does he !ollow instructions ro erly9 8esENo T Does he #a,e #ista,es !re:uently9 8esENo < rating score !ro# the chec,list hel s the #anager in e0aluation o! the er!or#ance o! the e# loyee. %he chec,list #ethod has a serious li#itation. %he rater #ay +e +iased in distinguishing the ositi0e and negati0e :uestions. He #ay assign +iased weights to the :uestions. <nother li#itation could +e that this #ethod is e" ensi0e and ti#e consu#ing. /inally' it +eco#es di!!icult !or the #anager to asse#+le' analyse and weigh a nu#+er o! state#ents a+out the e# loyee2s characteristics' contri+utions and +eha0iours. In s ite o! these li#itations' the chec,list #ethod is #ost !re:uently used in the e# loyed er!or#ance e0aluation. e/ /raphic rating scale* 3erha s the #ost co##only used #ethod o! er!or#ance e0aluation is the gra hic rating scale. O! course' it is also one o! the oldest #ethods o! e0aluation in use. Under this #ethod' a rinted !or#' as shown +elow' is used to e0aluate the er!or#ance o! an e# loyee. < 0ariety o! traits #ay +e used these ty es o! rating de0ices' the #ost co##on +eing the :uantity and :uality o! wor,. %he rating scales can also +e ada ted +y including traits that the co# any considers i# ortant !or e!!ecti0eness on the $o+. < #odel o! a gra hic rating scale is gi0en +elow. Ta.le D/6: t,pical 3raphic (ating %cale ;# loyee Na#e................... De art#ent......................... Data.................................. Unsatis( !actory T Duantity o! wor, Colu#e o! wor, under nor#al wor,ing conditions Duality o! wor, neatness' thoroughness and accuracy o! wor, 5nowledge o! $o+ < clear understanding o! the !actors connected with the $o+ <ttitude ;"hi+its enthusias# and coo erati0eness on the $o+ De enda+ility Bonscientious' thorough' relia+le' accurate' with res ect to attendance' relie!s' lunch +rea,s' etc. Boo eration 1illingness and a+ility to wor, with others to roduce desired goals. /air Satis( !actory Io+ title............ 4ate............... Good Outstanding

T T

/ro# the gra hic rating scales' e"cer ts can +e o+tained a+out the er!or#ance standards o! e# loyees. /or *1

instance' i! the e# loyee has serious ga s in technical( ro!essional ,nowledge =,nows only rudi#entary hases o! $o+>6 lac,s the ,nowledge to +ring a+out an increase in roducti0ity6 is reluctant to #a,e decisions on his own =on e0en when he #a,es decisions they are unrelia+le and su+standard>6 declines to acce t res onsi+ility6 !ails to lan ahead e!!ecti0ely6 wastes and #isuses resources6 etc.' then it can sa!ely +e in!erred that the standards o! the er!or#ance o! the e# loyee are dis#al and disa ointing. %he rating scale is the #ost co##on #ethod o! e0aluation o! an e# loyee2s er!or#ance today. One ositi0e oint in !a0our o! the rating scale is that it is easy to understand' easy to use and er#its a statistical ta+ulation o! scores o! e# loyees. 1hen ratings are o+$ecti0e in nature they can +e e!!ecti0ely used as e0aluators. %he gra hic rating scale #ay howe0er su!!er !ro# a long standing disad0antage' i.e.' it #ay +e ar+itrary and the rating #ay +e su+$ecti0e. <nother it!all is that each characteristic is e:ually i# ortant in e0aluation o! the e# loyee2s er!or#ance and so on. f. 3ehavio!rally anchored rating scales* <lso ,nown as the +eha0ioural e" ectations scale' this #ethod re resents the latest inno0ation in er!or#ance a raisal. It is a co#+ination o! the rating scale and critical incident techni:ues o! e# loyee er!or#ance e0aluation. %he critical incidents ser0e as anchor state#ents on a scale and the rating !or# usually contains si" to eight s eci!ically de!ined er!or#ance di#ensions. %he !ollowing chart re resents an e"a# le o! a sales trainee2s co# etence and a +eha0iourally anchored rating scale. Ta.le D/:: <n ;"a# le o! Beha0iourally <nchored 4ating Scale =B<4S> Performance ;"tre#ely good Points Aeha4iour 7 Ban e" ect trainee to #a,e 0alua+le suggestions !or increased sales and to ha0e ositi0e relationshi s with custo#ers all o0er the country. G Ban e" ect to initiate creati0e ideas !or i# ro0ed soles. Ban e" ect to ,ee in touch with the custo#ers throughout the year. A Ban #anage' with di!!iculty' to deli0er the goods in ti#e. @ ? 1 Ban e" ect to unload the truc,s when as,ed +y the su er0isor. Ban e" ect to in!or# only a art o! the custo#ers. Ban e" ect to ta,e e"tended co!!ee +rea,s and roa# around ur oselessly.

Good <+o0e a0erage <0erage Below a0erage 3oor ;"tre#ely oor

4ow to construct &*5)E De0elo ing a B<4S !ollows a general !or#at' which co#+ines techni:ues e# loyed in the critical incident #ethod and weighted chec,list ratings scales. ;# hasis is in ointed on ooling the thin,ing o! eo le who will use the scales as +oth e0aluators and e0aluees. #tep I* Collect critical incidents* 3eo le with ,nowledge o! the $o+ to +e ro+ed' such as $o+ holders and su er0isors' descri+e s eci!ic e"a# les o! e!!ecti0e and ine!!ecti0e +eha0iour related to $o+ er!or#ance. Identify performance dimensions* %he eo le assigned the tas, o! de0elo ing the instru#ent cluster the incidents into a s#all set o! ,ey er!or#ance di#ensions. Generally +etween !i0e and ten di#ensions account !or #ost o! the er!or#ance. ;"a# les o! er!or#ance di#ensions include technical co# etence relationshi s with custo#ers' handling o! a er wor, and #eeting day(to(day deadlines. 1hile de0elo ing 0arying le0els o! er!or#ance !or each di#ension =anchors>' s eci!ic e"a# les o! +eha0iour should +e used' which could later +e scaled in ter#s o! good' a0erage or +elow a0erage er!or#ance.

#tep II*

#tep III* Reclassification of incidents* <nother grou o! artici ants who are ,nowledgea+le a+out the $o+ is instructed to retranslate or reclassi!y the critical incidents generated =in Ste II> re0iously. %hey are gi0en the de!inition o! $o+ di#ension and told to assign each critical incident to the di#ension that it +est descri+es. <t this stage' incidents !or which there is not 7- er cent agree#ent are discarded as +eing too su+$ecti0e. *?

#tep I4* Assigning scale val!es to the incidents* ;ach incident is then rated on a one(to(se0en or one(to( nine scale with res ect o! how well it re resents er!or#ance on the a ro riate di#ension. < rating o! one re resents ine!!ecti0e er!or#ance6 the to scale 0alue indicates 0ery e!!ecti0e er!or#ance. %he second grou o! artici ants usually assigns the scale 0alues. Means and standard de0iations are then calculated !or the scale 0alues assigned to each incident. %y ically incidents that ha0e standard de0iations o! 1.-7 or less =on a 7( oint scale> are retained. #tep 4* (rod!cing the final instr!ment* <+out si" or se0en incidents !or each er!or#ance di#ension ( all ha0ing #et +oth the retranslating and standard de0iation criteria ( will +e used as +eha0ioural anchors. %he !inal B<4S instru#ent consists o! a series o! 0ertical scales =one !or each di#ension> anchored =or #easured> +y the !inal incidents. ;ach incident is ositioned on the scale according to its #ean 0alue.

Because the a+o0e rocess ty ically re:uires considera+le e# loyee artici ation' its acce tance +y +oth su er0isors and their su+ordinates #ay +e greater. 3ro onents o! B<4S also clai# that such a syste# di!!erentiates a#ong +eha0iour' er!or#ance and results and conse:uently is a+le to ro0ide a +asis !or setting de0elo #ental goals !or the e# loyee. Because it is $o+(s eci!ic and identi!ies o+ser0a+le and #easura+le +eha0iour' it is a #ore relia+le and 0alid #ethod !or er!or#ance a raisal. 4esearchers' a!ter sur0eying se0eral studies on B<4S' concluded that Sdes ite the intuiti0e a eal o! B<4S' !indings !ro# research ha0e not +een encouragingS. It has not ro0ed to +e su erior to other #ethods in o0erco#ing rater errors or in achie0ing sycho#etric soundness. < s eci!ic de!iciency is that the +eha0iours used are acti0ity oriented rather than results oriented. %his creates a otential ro+le# !or su er0isors doing the e0aluation' who #ay +e !orced to deal with e# loyees who are er!or#ing the acti0ity +ut not acco# lishing the desired goals. /urther' it is ti#e consu#ing and e" ensi0e to create B<4S. %hey also de#and se0eral a raisal !or#s to acco##odate di!!erent ty es o! $o+s in an organisation. In a college' lecturers' o!!ice cler,s' li+rary sta!!' technical sta!! and gardening sta!! all ha0e di!!erent $o+s6 se arate B<4S !or#s would need to +e de0elo ed !or each. In 0iew o! the lac, o! co# elling e0idence de#onstrating the su eriority o! B<4S o0er traditional techni:ues such as gra hic rating scales. Decotis concluded that. SIt #ay +e ti#e to :uit hedging a+out the e!!icacy o! +eha0ioural scaling strategies and conclude that this #ethod has no clear(cut ad0antages o0er #ore traditional and easier #ethods o! er!or#ance e0aluationS. g. Forced choice method* %his #ethod was de0elo ed to eli#inate +ias and the re onderance o! high ratings that #ight occur in so#e organisations. %he ri#ary ur ose o! the !orced choice #ethod is to correct the tendency o! a rater to gi0e consistently high or low ratings to all the e# loyees. %his #ethod #a,es use o! se0eral sets o! air hrases' two o! which #ay +e ositi0e and two negati0e and the rater is as,ed to indicate which o! the !our hrases is the #ost and least descri ti0e o! a articular wor,er. <ctually' the state#ent ite#s are grounded in such a way that the rater cannot easily $udge which state#ents a ly to the #ost e!!ecti0e e# loyee. %he !ollowing +o" is a classic illustration o! the !orced choice ite#s in organisations. Ta.le D/<: *orced Choice Items 1. &east < B B D ?. &east < B B D Does not antici ate di!!iculties Gras s e" lanations easily and :uic,ly Does not waste ti#e Cery easy to tal, to Ban +e a leader 1astes ti#e on un roducti0e things <t all ti#es' cool and cal# S#art wor,er Most < B B D Most < B B D

%he !a0oura+le :ualities earn a lus credit and the un!a0oura+le ones earn the re0erse. %he wor,er gets o0er lus when the ositi0e !actors o0erride the negati0e ones or when one o! the negati0e harases is chec,ed as +eing insigni!icantly rated. %he o0erall o+$ecti0ity is increased +y using this #ethod in e0aluation o! e# loyee2s er!or#ance' +ecause *@

the rater does not ,now how high or low he is e0aluating the indi0idual as he has no access to the scoring ,ey. %his #ethod' howe0er' has a strong li#itation. In the re aration o! sets o! hrases trained technicians are needed and as such the #ethod +eco#es 0ery e" ensi0e. /urther' #anagers #ay !eel !rustrated rating the e# loyees 2in the dar,2. /inally' the results o! the !orced choice #ethod #ay not +e use!ul !or training e# loyees +ecause the rater hi#sel! does not ,now how he is e0aluating the wor,er. In s ite o! these li#itations' the !orced choice techni:ues are :uite o ular. h/ Management by 5b6ectives -M35.* MBO re resents a #odern #ethod o! e0aluating the er!or#ance o! ersonnel. %hought!ul #anagers ha0e +eco#e increasingly aware that the traditional er!or#ance e0aluation syste#s are characterised +y so#ewhat antagonistic $udge#ents on the art o! the rater. %here is a growing !eeling nowadays that it is +etter to #a,e the su erior wor, with su+ordinates in !i"ing goals. %his would ine0ita+ly ena+le su+ordinates to e"ercise sel!(control o0er their er!or#ance +eha0iours. %he conce t o! #anage#ent +y o+$ecti0es is actually the outco#e o! the ioneering wor,s o! Druc,er' McGregor and Odiorne in #anage#ent science. Manage#ent +y o+$ecti0es can +e descri+ed as Sa rocess where+y the su erior and su+ordinate #anagers o! an organisation $ointly identi!y its co##on goals' de!ine each indi0iduals2 #a$or areas o! res onsi+ility in ter#s o! results e" ected o! hi# and use these #easures as guides !or o erating the unit and assessing the contri+utions o! each o! its #e#+ersS. MBO thus re resents #ore than an e0aluation rogra##e and rocess. 3racticing #anage#ent scientists and edagogues 0iew it as a hiloso hy o! #anagerial ractice6 it is a #ethod +y which #anagers and su+ordinates lan' organise' control co##unicate and de+ate. *eatures T T MBO e# hasises artici ati0ely set goals that are tangi+le' 0eri!ia+le and #easura+le. MBO !ocuses attention on what #ust +e acco# lished =goals> rather than how it is to +e acco# lished =#ethods>. MBO' +y concentrating on ,ey result areas translates the a+stract hiloso hy o! #anage#ent into concrete hraseology. %he techni:ue can +e ut to general use =non(s ecialist techni:ue>. /urther it is Sa dyna#ic syste# which see,s to integrate the co# any2s need to clari!y and achie0e its ro!it and growth targets with the #anager2s need to contri+ute and de0elo hi#sel!S. MBO is a syste#atic and rational techni:ue that allows #anage#ent to attain #a"i#u# results !ro# a0aila+le resources +y !ocusing on achie0a+le goals. It allows the su+ordinate lenty o! roo# to #a,e creati0e decisions on his own.

MA) Ke, #lements <n MBO syste# usually starts at the to o! the organisation. %o #anage#ent !or#ulates and co##unicates the !ir#2s o0erall cor orate goals to #anagers at lower le0els so they can !or#ulate their own o erational goals. <lthough there are 0arying 0ersions o! MBO' #ost MBO rogra##es contain the !ollowing ele#ents. a/ Arranging organisational goals in a means)ends chain* In an MBO syste# a !ir#2s cor orate goals are structured in a #eans(ends chain =/igure -.?>. %o #anage#ent !or#ulates a set o! long(range and short( ter# cor orate o+$ecti0es !or the co# any as a whole. Di0isional or !unctional #anagers artici ate in the goal(setting rocess to re!lect their own desires and indicate the constraints that #ust +e considered as well. %hese #anagers then wor, with their su+ordinates to !or#ulate di0isional or !unctional goals' which in turn are translated into grou or indi0idual goals. <s shown in /igure 17.?' #anagers ser0e as lin,ing ins that tie organisational units together at di!!erent le0els. %hrough this organisational rocess' cor orate o+$ecti0es set at higher le0els are co##unicated downward to lower le0els to +e used as a guide !or !or#ulating tas, goals. %hese lower(le0el goals are co##unicated u ward' to +e incor orated into the !ir#2s cor orate goals. <ny di!!erences +etween organisational le0els or grou s that show u during the goal( setting rocess will negotiated +y #anagers in lin,ing( in ositions.

*A

C o rp o ra te 3 o a ls

* u n c t io n a l 3 o a ls

W o rk 3 ro u p Task 3 o a ls

In d i4 id u a l P e r fo r m a n c e 3 o a ls *ig/ D/2: )rganisational 3oals in Means+#nds Chain


./ %ngaging in 6oint goal setting* %he #ost uni:ue !eature o! MBO is $oint goal setting. Su er0isors #eet with their su+ordinates indi0idually or in grou s to !or#ulate a set o! o+$ecti0es !or the grou or indi0idual. %he goal(setting rocess has the !ollowing ste s. i. Identi!y ,ey er!or#ance or result areas =54<s>' such as increasing loans' reducing loan ris, or e# loyee training. ii. De!ine the e" ected results' such as increasing loans +y - er cent' reducing +ad loans +y 17 er cent or training 177 e# loyees. iii. <ssign s eci!ic res onsi+ilities to e# loyees. %his ste is needed to #a,e e# loyees accounta+le !or acco# lishing their tas,s. i0. De!ine authority and res onsi+ility relationshi s. %his ste clari!ies who has what authority and res onsi+ility and who is re orting what to who#. c. Cond!cting periodic progress revie+s* 3er!or#ance can +e eriodically re0iewed to deter#ine rogress. Su er0isors and su+ordinates should #eet regularly to re0iew their rogress toward goal attain#ent. %he re0iews should +e held #onthly or :uarterly. %hese re0iews ser0e as a +uilt(in !eed+ac, #echanis# !or an MBO syste#. Since indi0idual or grou goals are s eci!ically de!ined' usually in :uanti!ia+le ter#s' e# loyees can co# are their rogress at re0iew ti#e against the s eci!ied goals. <ny er!or#ance 0ariations or changes in goals +e discussed during the re0iew sessions. d/ Cond!cting ann!al performance revie+* <t the end o! an MBO cycle' usually on an annual +asis' the #anager #eets su+ordinate=s> to assess the e# loyee2s or the grou 2s contri+ution to the organisation. 1hile eriodic re0iew is intended to identi!y and sol0e s eci!ic er!or#ance ro+le#s' the annual re0iew is conducted to assess and reward one2s o0erall contri+ution to the organisation' Because e# loyees are e0aluated on their er!or#ance results' MBO is o!ten called a result(+ased' er!or#ance a raisal syste#.

MA) Aenefits MBO is hailed as the greatest inno0ation in years. <d0ocates argue that Sit is the successor to %aylor2s 2#ental re0olution2 ( a new way o! thin,ing a+out and engaging in' collecti0e e!!ortS. It is clai#ed that when an organisation is #anaged +y o+$ecti0es it +eco#es er!or#ance(oriented' it grows' de0elo s and +eco#es socially use!ul in #any ways. *-

i/

Clearer goals* MBO roduces' clear and #easura+le er!or#ance goals. Goals are set in an at#os here o! artici ation' #utual trust and con!idence. %here is a #eeting o! #inds +etween the su erior and the su+ordinates where the latter will +e shooting !or right goals. 3artici ation increases co##it#ent' additionally' it also results in setting +etter goals. 4esearch e" erience also indicates that indi0iduals are #ore li,ely to +e highly co##itted to o+$ecti0es that they had a hand in setting. Ioint goal(setting sessions enhance tea# s irit and inter(grou co##unication.

ii/ 3etter planning* MBO rogra##es shar en the lanning rocess. S eci!ic goals are roducts o! concrete thin,ing. %hey tend to !orce s eci!ic lanning setting highly s eci!ic' challenging and attaina+le goals6 de0elo ing action rogra##es tied to a de!inite schedule6 ro0iding resources !or goal acco# lish#ent6 discussing and re#o0ing o+stacles to er!or#ance ( all these acti0ities de#and care!ul ad0ance lanning. 3assi0ity gi0es way to acti0ity. iii/ Facilitates control* MBO hel s in de0elo ing e!!ecti0e controls. < clear set or 0eri!ia+le goals ro0ides an outstanding guarantee !or e"ercising +etter control. i4/ 5b6ective appraisal* MBO ro0ides a +asis !or e0aluating a erson2s er!or#ance since goals are $ointly set +y su erior and su+ord#ates. By setting s eci!ic goals' MBO allows ersons to +etter control their own er!or#ance. %he indi0idual is gi0en the !reedo# to olice his own acti0ities. < leasant and sti#ulating organisational cli#ate re0ails where indi0iduals are not su+$ected to do#ination and control !ro# 2u stairs2. Instead' they are trained to e"ercise disci line and sel!(control. Manage#ent +y sel!(control re laces #anage#ent +y do#ination. < raisals would +e #ore o+$ecti0e and i# artial since e# loyee er!or#ance is e0aluated against reset' 0eri!ia+le o+$ecti0es. v. Motivational force* Both a raiser and a raisee are co##itted to the sa#e o+$ecti0e. It !orces #anagers to thin, o! lanning !or results rather than lanning for acti0ities or wor,. It co# els !orward lanning and li0ing li!e in an antici atory #ode rather than res onding to e0ents. Blari!ied roles reduce a#+iguity and e# loyee an"iety. It allows #anagers increased o ortunities to ro0ide su+ordinates with a +etter !i" on the $o+6 to clari!y !or su+ordinates the ath to ersonal rewards. In the words o! Mer0in 5ohn' SMBO gi0es an indi0idual or grou s so#e leeway to use i#agination or creati0ity to acco# lish the #ission6 !osters a !eeling o! inde endence6 ro0ides an incenti0e to achie0e the goal and er#its a !eeling o! true artici ation in the tas, !ro# its ince tionS. vi. 3etter morale* MBO encourages co##it#ent rather than rote co# liance. It is at once !unctional in ter#s o! what to #anage#ent de#ands and de0elo #ental in ter#s o! eo le at wor,. %he two techni:ues' artici ati0e decision(#a,ing and two(way co##unication' encourage the su+ordinate to co##unicate !reely and honestly. It #ini#ises the ossi+le #isunderstanding a+out what is e" ected o! each indi0idual and organisational su+(units. 3artici ation' clari!ied goals' i# ro0ed co##unication ( all will ha0e a tonic e!!ect on the sychology o! su+ordinates. 4ii/ Res!lt)oriented philosophy* MBO is a result(oriented' ractical and rational #anage#ent hiloso hy. Managers are !orced to de0elo s eci!ic indi0idual and grou goals' de0elo a ro riate action lans' #arshall the resources ro erly and esta+lish needed control standards. It hel s #anager to a0oid #anage#ent +y crisis and 2!ire !ighting2. MA) Limitations MBO is not a anacea' cure(all !or organisational ro+le#s. Duite o!ten #any organisations loo, to MBO as an instant solution to their ro+le#s. %hey !ail to recognise that MBO de#ands care!ul lanning and i# le#entation' to +e success!ul. %his techni:ue' li,e all others' can +e no +etter than the eo le who try to a ly it. So#e o! the ro+le#s re0enting MBO !ro# achie0ing its +est results #ay +e catalogued thus. a/ (ress!re)oriented* MBO #ay ro0e to +e sel!(de!eating in the long(run since it is tied with a reward( unish#ent sychology. It is a clear 0iolation o! the integrity o! su+ordinate2s ersonality. MBO rogra##es so#eti#es' discri#inate against su erior er!or#ers. It tries to indiscri#inately !orce i# ro0e#ent on all e# loyees and at ti#es' #ay enalise the 0ery eo le who are #ost roducti0e in the organisation. b. Time cons!ming* MBO de#ands a great deal o! ti#e to set o+$ecti0es care!ully at all le0els o! the organisation. Initially to instill con!idence in su+ordinates in the Xnew syste#2 su eriors #ay ha0e to hold #any #eetings. %he !or#al' eriodic rogress and !inal re0iew sessions also consu#e ti#e.

*G

c. Increased paper+ork* MBO rogra##es introduce a tidal wa0e o! newsletters' instruction +oo,lets' training #anuals' :uestionnaires' er!or#ance data' re orts into the organisation. %o stay a+reast o! what is going on in the organisation #anagers #ay de#and regular re orts and data in writing resulting in 2gruelling e"ercise in !illing out !or#s2. It has created one #ore 2 a er #ill2. <ccording to Howell' MBO2s e!!ecti0eness is in0ersely related to the nu#+er o! MBO !or#s. d/ /oal)setting problems* MBO wor,s when i# ortant #easura+le o+$ecti0es $ointly agreed u on. It wor,s less when6 =i> Ceri!ia+le goals are di!!icult to set. =ii> Goals tend to ta,e recedence o0er the eo le who use it. MBO !ocuses on end results and it #ay !oster an attitude that any action is acce ta+le as long as it hel s to achie0e the goals. Bonse:uently' unwise decisions are #ade that would ulti#ately har# the organisation' =iii> Goals are in!le"i+le and rigid' =i0> %here is o0er(e# hasis on :uanti!ia+le and easily #easura+le results instead o! i# ortant results. Many i# ortant :ualitati0e goals li,e $o+ satis!action' e# loyee attitudes are lost sight o! =atte# ts to set #easura+le goals !orce #anagers to search !or a #agic !igure !or each area>' =0> O0ere# hasis on short(ter# goals at the e" enses o! long(ter# goals. <tte# ts to show results !orce #anagers to curtail cost in areas where a long(ter# ers ecti0e would +e #ore !ruit!ul to the organisation in the long(run. e/ 5rganisational problems* MBO is not a alliati0e !or all organisational ills. It is not !or e0ery+ody. MBO creates #ore ro+le#s than it sol0es when. i. there is !ailure to teach the hiloso hy to all artici ants. %oo o!ten MBO is introduced across the organisation with little e" lanation' training or hel 6 ii. there is !ailure to li#it o+$ecti0es. %oo #any o+$ecti0es o+scure riorities and create a sense o! !ear and anic a#ong su+ordinates6 iii. it is inconsistent with #anage#ent hiloso hies. Under MBO rogra##es #anagers are !orced to ta,e a 1)7Y turn !ro# their resent ways o! thin,ing and acting. Instead o! lanning and deciding things !or others' they are ad0ised to in0ite su+ordinates and lan !or wor, in an at#os here o! artici ation' #uch to their disli,e6 i0. the rogra##e is used as a 2whi 2 to control e# loyee er!or#ance6 0. it leads to a tug(o!(war in which the su+ordinate tries to set the lowest ossi+le targets and su erior the highest6 0i. #anagers turn MBO into a sha# and start 2 laying ga#es2. %uggestions for Impro4ing the #ffecti4eness of MA) One o! the #a$or reasons !or the !ailure o! MBO in #any organisations is that those in charge !ail to recognise the otential character o! the i# le#ent rocess. %he !ault is not in the syste# +ut in its use. <s with any techni:ue' there is a right and a wrong way to i# le#ent MBO rogra##es. %he !ollowing suggestions would hel in #a,ing use o! MBO rogra##es ro erly. a/ 5rganisational commitment* %he #ost e!!ecti0e way to i# le#ent MBO is to allow the to (le0el #anagers to e" lain' coordinate and guide the rograrn#e without to #anage#ent su ort and co##it#ent' MBO cannot +e i# le#ented ro erly. MBO resents a challenging tas, to #anagers. %hey #ust !eel that the rogra##e is i# ortant and will +ring in results. %he shi!t !ro# lanning wor, to laning !or acco# lish#ent o! s eci!ic goals is not easy. <s rightly ointed out +y Ha# ton' SMore o!ten than not' ro+a+ly' MBO is tried and sooner or later allowed to sli into disuse. Initial enthusias# and good !aith wane as di!!iculties de0elo S. Ioint goal(setting' artici ation in lanning and decision(#a,ing rocesses' o+$ecti0e er!or#ance a raisal sessions ose se0eral ro+le#s to #anagers who are wedded to old ways o! thin,ing and action. %hese ro+le#s should not +e allowed to ,ill MBO without e0er +eing o enly con!ronted. Managers #ust +elie0e that MBO would wor, and #ust acce t it as a way o! thin,ing. <s 5nootK ointed out' it is essential that San e!!ecti0e rogra##e o! #anaging +y o+$ecti0e #ust +e wo0en into an entire attern and style o! #anaging. It cannot wor, as a se arate techni:ue standing aloneS. MBO should not +e used as a decorati0e iece. I! it does not ha0e the acti0e su ort' in0ol0e#ent and co##it#ent o! to #anagers' it should not +e installed at all. ./ Training* MBO is not a su er!luous ritual' which can +e !inished o!! as :uic,ly as ossi+le. It calls !or recise' concrete thin,ing. Managers should +e gi0en ade:uate training in MBO hiloso hy and rocedures +e!ore the syste# is installed. %hey #ust +e in a osition to integrate the techni:ue with the +asic co# any hiloso hy. Under an authoritarian' threatening' #istrust!ul cli#ate' MBO ro0es to +e a !ruitless e"ercise. S< lant #ust ha0e the right soil and cli#ate i! it is to thri0eS. Si#ilarly MBO de#ands a healthy at#os here where its hiloso hy is understood and the techni:ues are ro erly a lied. Drawing the curtain +etween !uKKy wishes and s eci!ic o+$ecti0es' arranging ractice sessions where er!or#ance o+$ecti0es are e0aluated' #easuring er!or#ance and chec,ing de0iations ( all these acti0ities do not co#e easily. %he su+ordinates as well as the su eriors #ust +e taught how to set realistic goals and !a#iliarised with the results !or which they are to +e held res onsi+le. *7

c/ Ade2!ate time and reso!rces* < well(concei0ed MBO rogra##e cannot +e installed o0ernight. It #ay ta,e three to !i0e years o! o eration +e!ore the MBO rogra##e is yielding !ruit!ul results. I# le#enting an MBO rogra##e is :uite o!ten ti#e consu#ing and #anagers #ust ha0e the necessary ti#e and resources to utilise it. %hey #ust allocate ade:uate ti#e and resources to educate each erson in the organisation in the nature and hiloso hy o! the syste#. It is no use loo,ing to MBO !or instant solutions. d/ Take care of the necessary mechanics* One reason why MBO rogra##es !ail is that they are not integrated or institutionalised into the real lanning and control acti0ities. Setting goals is only art o! the story' goals #ust +e su orted +y control acti0ities also. It is i# ortant to assign authority and res onsi+ility !or initiating and o0erseeing the MBO rogra##e. %he ersons who ad#inister the rogra##e #ust +e endowed with su!!icient ower not only to unish +ut also reward eo le ro# tly. It is always +etter to clari!y res onsi+ility and authority relationshi s so that e0eryone in the organisation understands what is e" ected in the MBO syste#. < guideline #anual o! rocedures #ay +e ado ted so as to ensure clarity and !acilitate the goal(setting and er!or#ance a raisal acti0ities. e. Timely feedback* Monitor MBO as it is ut to use. %his rocess re0eals o ortunities !or !eed+ac,' counselling and encourage#ent to su+ordinates at other than regular er!or#ance a raisal sessions. In #any cases' as 5oontK ointed out' the su erior si# ly sits +ac, and !orgets that eriodic re0iew' counsel and control are #andatory to the rogra##e2s success. %he su+ordinate lac,ing in such direction' o!ten' turns in a #ediocre er!or#ance. Bongratulations and encourage#ent !ro# su eriors who +ac, u their words with ay raises ro#otions would #oti0ate su+ordinates to ea, er!or#ance. <gain co# aring the actual rogress o! MBO with the lanned rogress' the #anager should a0oid the tendency to +e o0erly critical with those su+ordinates who are lower in a+ility' lac, con!idence or are less #oti0ated. f/ (olitics* Be sensiti0e to the olitics o! i# le#enting MBO' MBO redistri+utes ower and not all #anagers welco#e this. I! MBO is seen as a signi!icant change' it will generate hostile reaction in the !or# o! $o,es' in!ighting and o0ert con!lict. MBO can also alter the status o! an organisation' can in!luence decisions' can a!!ect +udgets and can ro#ote creation o! coalitions to !ight with it. MBO as Odiorne ointed out' has !ailed in #any organisations +ecause #anagers :uite o!ten ignored these olitical considerations in the rocess o! i# le#entation.

Multiple+Person e4aluation Techni@ues %he a+o0e discussed #ethods are used to e0aluate e# loyees one at a ti#e. In this section let us discuss so#e techni:ues o! e0aluating one e# loyee in co# arison to another. %hree such !re:uently used #ethods in organisation are ( ran,ing' aired co# arison and !orced distri+ution. a/ Ranking method* %his is a relati0ely easy #ethod o! er!or#ance e0aluation. Under this #ethod' the ran,ing o! an e# loyee in a wor, grou is done against that o! another e# loyee. %he relati0e osition o! each e# loyee is tested in ter#s o! his nu#erical ran,. It #ay also +e done +y ran,ing a erson on his $o+ er!or#ance against another #e#+er o! the co# etiti0e grou . %he :uintessence o! this #ethod is that e# loyees are ran,ed according to their le0els o! er!or#ance. 1hile using this #ethod' the e0aluator is as,ed to rate e# loyees !ro# highest to lowest on so#e o0erall criterion. %hough it is relati0ely easier to ran, the +est and the worst e# loyees' it is 0ery di!!icult to ran, the a0erage e# loyees. Generally' e0aluators ic, the to and +otto# e# loyees !irst and then select the ne"t highest and ne"t lowest and #o0e towards the a0erage =#iddle> e# loyees. %he longstanding li#itations o! this #ethod are. T T T T %he 2whole #an2 is co# ared with another 2whole #an2 in this #ethod. In ractice' it is 0ery di!!icult to co# are indi0iduals ossessing 0aried +eha0ioural traits. %his #ethod s ea,s only o! the osition where an e# loyee stands in his grou . It does not tell anything a+out how #uch +etter or how #uch worse an e# loyee is when co# ared to another e# loyee. 1hen a large nu#+er o! e# loyees are wor,ing' ran,ing o! indi0iduals +eco#es a tosticating issue. %here is no syste#atic rocedure !or ran,ing indi0iduals in the organisation. %he ran,ing syste# does not eli#inate the ossi+ility o! sna $udge#ents.

In order to o0erco#e the a+o0e li#itations a aired co# arison techni:ue has +een ad0anced +y organisational scholars. b. (aired comparison method* 4an,ing +eco#es #ore relia+le and easier under the aired co# arison #ethod. ;ach wor,er is co# ared with all other e# loyees in the grou 6 !or e0ery trait the wor,er is co# ared with all other e# loyees. /or instance' when there are !i0e e# loyees to +e co# ared' then <2s er!or#ance is co# ared with that o! B2s and decision is arri0ed at as to whose is the +etter or worse. Ne"t' B is also co# ared with all others. Since < is already co# ared with B' this ti#e B is to +e co# ared with *)

only B' D and ;. By this #ethod when there are !i0e e# loyees' !i!teen decisions are #ade =co# arisons>. %he nu#+er o! decisions to +e #ade can +e deter#ined with the hel o! the !or#ula n =n(?>. 4an,ing the e# loyees +y the aired co# arison #ethod #ay +e illustrated as shown in the %a+le *.). /or se0eral indi0idual traits' aired co# arisons are #ade' ta+ulated and then ran, is assigned to each wor,er. %hough this #ethod see#s to +e logical' it is not a lica+le when a grou is large. 1hen the grou +eco#es too large' the nu#+er o! co# arisons to +e #ade #ay +eco#e !righteningly e"cessi0e. /or instance' when nM177' co# arisons to +e #ade are 177 =177(?> M 177 =*)> M *)77. %rait. 2Duantity o! wor,2 <s co# ared to < B B D ; < ( N ( N Ta.le D/G: #mplo,ee (ated B N ( N ( B ( N ( N D N ( N N ; ( N ( (

c/ Forced distrib!tion method* Under this syste#' the rater is as,ed to a raise the e# loyee according to a redeter#ined distri+ution scale. %he rater2s +ias is sought to +e eli#inated here +ecause wor,ers are not laced at a higher or lower end o! the scale. Nor#ally' the two criteria used here !or rating are the $o+ er!or#ance and ro#ota+ility. /urther' a !i0e( oint er!or#ance scale is used without any #ention o! descri ti0e state#ents. 1or,ers are laced +etween the two e"tre#es o! 2good2 and 2+ad2 er!or#ances. /or instance' the wor,ers o! outstanding #erit #ay +e laced at the to 17U o! the scale. %he rest #ay +e laced as ( ?7U Hgood' A7U Houtstanding' ?7U H!air and 17U H+ad. %o +e s eci!ic' the !orced distri+ution #ethod assu#es that all to grade wor,ers should go to the highest 17U grade6 ?7U e# loyees should go to the ne"t highest grade and so on. Io+ er!or#ance as the criterion a art' another e:ually i# ortant !actor in this #ethod is ro#ota+ility. ;# loyees #ay +e classi!ied according to their ro#otional #erits. %he scale !or this ur ose #ay consist o! three oints (na#ely' :uite li,ely ro#otional #aterial' #ay E #ay not +e ro#otional #aterial and :uite unli,ely ro#otional #aterial. One strong ositi0e oint in !a0our o! the !orced distri+ution #ethod is that +y !orcing the distri+ution according to redeter#ined ercentages6 the ro+le# o! #a,ing use o! di!!erent raters with di!!erent scales is a0oided. /urther' this #ethod is a reciated on the ground that it tends to eli#inate rater +ias. %he li#itation o! using this #ethod in salary ad#inistration howe0er' is that it #ay result in Iow #orale' low roducti0ity and high a+senteeis#. ;# loyees who !eel that they are roducti0e' +ut !ind the#sel0es laced in a lower grade Fthan e" ected> !eel !rustrated and e"hi+it' o0er a eriod o! ti#e' reluctance to wor,. Other #ethods o! a raising er!or#ance include. Grou < raisal' Hu#an 4esource <ccounting' <ssess#ent Bentre' /ield 4e0iew' etc. %hese are discussed in the !ollowing sections. i/ /ro!p appraisal* In this #ethod' an e# loyee is a raised +y a grou o! a raisers. %his grou consists o! the i##ediate su er0isor o! the e# loyee' other su er0isors who ha0e close contact with the e# loyee2s wor,' #anager or head o! the de art#ent and consultants. %he head o! the de art#ent or #anager #ay +e the Bhair#an o! the grou and the i##ediate su er0isor #ay act as the Boordinator !or the grou acti0ities. %his grou uses any one o! #ulti le techni:ues discussed earlier. %he i##ediate su er0isor enlightens other #e#+ers a+out the $o+ characteristics' de#ands' standards or er!or#ance' etc. %hen the grou a raises the er!or#ance o! the e# loyee' co# ares the actual er!or#ance with standards' !inds out the de0iations' discusses the reasons there!or' suggests ways !or i# ro0e#ent o! er!or#ance' re ares an action lan' studies the need !or change in the $o+ analysis and standards and reco##ends changes' i! necessary. %his #ethod eli#inates 2 ersonal +ias2 to a large e"tent' as er!or#ance is e0aluated +y #ulti le rates. But it is a 0ery ti#e consu#ing rocess. ii/ 1!man reso!rce acco!nting* H4< is a so histicated way to #easure =in !inancial ter#s> the e!!ecti0eness o! ersonnel #anage#ent acti0ities and the use o! eo le in an organisation. It is the rocess o! accounting !or eo le as an organisational resource. It tries to lace a 0alue on organisational hu#an resources as assets and not as e" enses. %he H4< rocess shows the in0est#ent the organisation #a,es in its eo le and how the 0alue o! these eo le changes o0er ti#e. %he ac:uisition cost o! e# loyees is **

co# ared to the re lace#ent cost !ro# ti#e to ti#e. %he 0alue o! e# loyees is increased +y in0est#ents #ade +y the co# any to i# ro0e the :uality o! its hu#an resources such as training' de0elo #ent s,ills ac:uired +y e# loyees o0er a eriod o! ti#e through e" erience' etc. 1hen :uali!ied' co# etent eo le lea0e an organisation' the 0alue o! hu#an assets goes down. In this #ethod' e# loyee er!or#ance is e0aluated in ter#s o! costs and contri+utions o! e# loyees. Hu#an resource costs include e" enditure incurred +y the co# any in hiring' training' co# ensating and de0elo ing eo le. %he contri+utions o! hu#an resources is the #oney 0alue o! la+our roducti0ity. %he cost o! hu#an resources #ay +e ta,en as the standard. ;# loyee er!or#ance can +e #easured in ter#s o! e# loyee contri+ution to the organisation. ;# loyee er!or#ance can +e ta,en as ositi0e when contri+ution is #ore than the cost and er!or#ance can +e 0iewed as negati0e i! cost is #ore than contri+ution. 3ositi0e er!or#ance can +e #easured in ter#s o! ercentage o! e"cess o! e# loyee contri+ution o0er the cost o! e# loyee. Si#ilarly negati0e er!or#ance can +e calculated in ter#s o! ercentage o! de!icit in e# loyee contri+ution co# ared to the cost o! e# loyee. %hese ercentages can +e ran,ed to 2Lero &e0el2 as shown in the %a+le *.*. Ta.le D/D 4an, 1. ?. @. A. -. G. 7. 4ating ;"tre#ely good er!or#ance Good er!or#ance Slightly good er!or#ance Neither oor nor good Slightly oor er!or#ance 3oor er!or#ance ;"tre#ely oor er!or#ance 3ercentage o! sur lusE De!icit o! contri+ution to cost o! e# loyee O0er ?77 1-7(?77 177(1-7 7(177 7 7 to =H -7> =H-7> to =H177>

%his techni:ue has not de0elo ed !ully and is still in the transitionary stage. iii/ Assessment centre* %his #ethod o! a raising was !irst a lied in Ger#an <r#y in 1*@7. &ater +usiness and industrial houses started using this #ethod. %his is not a techni:ue o! er!or#ance a raisal +y itsel!. In !act it is a syste# or organisation' where assess#ent o! se0eral indi0iduals is done +y 0arious e" erts using 0arious techni:ues. %hese techni:ues include the #ethods discussed +e!ore in addition to in(+as,et' role( laying' case studies' si#ulation e"ercises' structured in sight' transactional analysis' etc. In this a roach indi0iduals !ro# 0arious de art#ents are +rought together to s end two or three days wor,ing on an indi0idual or grou assign#ent si#ilar to the ones they would +e handling when ro#oted. O+ser0ers ran, the er!or#ance o! each and e0ery artici ant in order o! #erit. Since assess#ent centres are +asically #eant !or e0aluating the otential o! candidates to +e considered !or ro#otion' training or de0elo #ent' they o!!er an e"cellent #eans !or conducting e0aluation rocesses in an o+$ecti0e way. <ll assesses get an e:ual o ortunity to show their talents and ca a+ilities and secure ro#otion +ased on #erit. Since e0aluators ,now the osition re:uire#ents inti#ately and are trained to er!or# the e0aluation rocess in an o+$ecti0e #anner' the er!or#ance ratings #ay !ind !a0our with #a$ority o! the e# loyees. < considera+le a#ount o! research e0idence is a0aila+le to su ort the contention that eo le chosen +y this #ethod ro0e +etter than those chosen +y other #ethods. %he centre ena+les indi0iduals wor,ing in low status de art#ents to co# ete with eo le !ro# well(,nown de art#ents and enlarge their ro#otion chances. Such o ortunities' when created on a regular +asis' will go a long way in i# ro0ing the #orale o! ro#ising candidates wor,ing in less(i# ortant( ositions. iv. Field revie+ method* 1here su+$ecti0e er!or#ance #easures are used' there is sco e !or rater2s +iases in!luencing the e0aluation rocess. %o a0oid this' so#e e# loyees use the !ield re0iew #ethod. In this #ethod a trained' s,in re resentati0e o! the H4 de art#ent goes into the 2!ield2 and assists su er0isors with their ratings o! their res ecti0e su+ordinates. %he H4 s ecialist re:uests !ro# the i##ediate su er0isor s eci!ic in!or#ation a+out the e# loyees er!or#ance. Based on this in!or#ation' the e" ert re ares a re ort' which is sent to the su er0isor !or re0iew' changes' a ro0al and discussion with the e# loyee who is +eing rated. %he ratings are done on standardised !or#s. Since an e" ert is handling the a raisal rocess' in consultation with the su er0isor' the ratings are #ore relia+le. Howe0er' the use o! H4 e" erts #a,es this a roach costly and i# ractical !or #any organisations.

177

Bo. #4aluation: Concept Io+ e0aluation is a syste#atic way o! deter#ining the 0alue E worth o! a $o+ in relation to other $o+s in an organisation. It tries to #a,e a syste#atic co# arison +etween $o+s to assess their relati0e worth !or the ur ose o! esta+lishing a rational ay structure. Io+ e0aluation needs to +e di!!erentiated !ro# $o+ analysis. Io+ analysis is a syste# way o! gathering in!or#ation a+out a $o+. ;0ery $o+ e0aluation #ethod re:uires least so#e +asic $o+ analysis in order to ro0ide !actual in!or#ation a+out the $o+s concerned. %hus' $o+ e0aluation +egins with $o+ analysis and ends at that oint where the worth o! a $o+ is ascertained !or achie0ing ay e:uity +etween $o+s. Bo. #4aluation 4s Performance Appraisal Io+ e0aluation is di!!erent !ro# er!or#ance a raisal. 3er!or#ance < raisal is the syste#atic descri tion o! an e# loyee2s $o+ related strengths and wea,nesses. %he +asic ur ose o! 3er!or#ance < raisal is to !ind out how well the e# loyee is doing the $o+ and esta+lish a lan !or i# ro0e#ent the ai# o! $o+ e0aluation is to !ind the relati0e 0alue E worth o! a $o+ and deter#ine what a !air wage !or such a $o+ should +e. %he di!!erences +etween the two #ay +e resented thus. Ta.le D/1E: Bo. #4aluation 4s Performance Appraisal 3oint De!ine <i# Shows Io+ ;0aluation /ind the relati0e worth o! a $o+. Deter#ine wage rates !or di!!erent $o+s. How #uch a $o+ is worth. 3er!or#ance < raisal

/ind the worth o! a $o+ holder. Deter#ine incenti0es and rewards !or su erior er!or#ance. How well an indi0idual is doing an assigned wor,.

*eatures %he ur ose o! $o+ e0aluation is to roduce a de!ensi0e ran,ing o! $o+s on which a rational and acce ta+le ay structure can +e +uilt. %he i# ortant !eatures o! $o+ e0aluation #ay +e su##arised thus. T T T T T T It tries to assess $o+s' not eo le. %he standards o! $o+ e0aluation are relati0e' not a+solute. %he +asic in!or#ation on which $o+ e0aluations are #ade is o+tained !ro# $o+ analysis. Io+ e0aluations are carried out +y grou s' not +y indi0iduals. So#e su+$ecti0e ele#ent is there in $o+ e0aluation. Io+ e0aluation does not !i" ay scales' +ut #erely ro0ides a +asis !or e0aluating a rational wage structure.

Process of Bo. #4aluation %he rocess o! $o+ e0aluation in0ol0es the !ollowing ste s. K 3aining acceptance: Be!ore underta,ing $o+ e0aluation' to #anage#ent #ust e" lain the E ai#s and uses o! the rogra##e to the e# loyees and unions. %o ela+orate the rogra##e !urther' oral resentations could +e #ade. &etters' +oo,lets could +e used to classi!y all rele0ant as ects o! the $o+ e0aluation rogra##e. Creating 5o. e4aluation committee: It is not ossi+le !or a single erson to e0aluate all the ,ey $o+s in an organisation. Usually a $o+ e0aluation co##ittee consisting o! e" erienced e# loyees' union re resentati0es and H4 e" erts is created to set the +all rolling. *inding the 5o.s to .e e4aluated: ;0ery $o+ need not +e e0aluated. %his #ay +e too ta"ing and costly. Bertain ,ey $o+s in each de art#ent #ay +e identi!ied. 1hile ic,ing u the $o+s' care #ust +e ta,en to ensure that they re resent the ty e o! wor, er!or#ed in that de art#ent. Anal,sing and preparing 5o. description: %his re:uires the re arations o! a $o+ descri tion and also an analysis o! $o+ needs !or success!ul er!or#ance.

171

K K

%electing the method of e4aluation: %he #ost i# ortant #ethod o! e0aluating the $o+s #ust +e identi!ied now' ,ee ing the $o+ !actors as well as organisational de#ands in #ind. Classif,ing 5o.s: %he relati0e worth o! 0arious $o+s in an organisation #ay +e !ound out a!ter arranging $o+s in order o! i# ortance using criteria such as s,ill re:uire#ents' e" erience needed' under which conditions $o+ is er!or#ed' ty e o! res onsi+ilities to +e shouldered' degree o! su er0ision needed' the a#ount o! stress caused +y the $o+' etc. 1eights can +e assigned to each such !actor. 1hen we !inally add all the weights' the worth o! a $o+ is deter#ined. %he oints #ay then +e connected into #onetary 0alues. Installing the programme: Once the e0aluation rocess is o0er and a lan o! action is ready' #anage#ent #ust e" lain it to e# loyees and ut it into o eration. (e4ie=ing periodicall,: In the light o! changes in en0iron#ental conditions =technology' roducts' ser0ices' etc.> $o+s need to +e e"a#ined closely. /or e"a# le' the traditional clerical !unctions ha0e undergone a ra id change in sectors li,e +an,ing' insurance' railways a!ter co# uterisation. New $o+ descri tions need to +e written and the s,ill needs o! new $o+s need to +e duly incor orated in the e0aluation rocess. Otherwise' e# loyees #ay !eel that all the rele0ant $o+ !actors ha0e not +een e0aluated ro erly' +ased on which their ay has +een deter#ined.

K K

#ssentials for the %uccess of a Bo. #4aluation Programme /ollowing are the essentials !or the success o! $o+ e0aluation rogra##e. 1. Bo# ensa+le !actors should re resent all o! the #a$or as ects o! $o+ content. Bo# ensa+le !actors selected should =a> a0oid e"cessi0e o0erla ing or du lication6 =+> +e de!ina+le and #easura+le6 =c> +e easily understood +y e# loyees and ad#inistrators6 =d> not cause e"cessi0e installation or ad#inistrati0e cost6 and =e> +e selected with legal considerations in #ind. ?. O erating #anagers should +e con0inced a+out the techni:ues and rogra##e o! $o+ e0aluation. %hey should also +e trained in !i"ing and re0ising the wage +ased on $o+ e0aluation. @. <ll the e# loyees should +e ro0ided with co# lete in!or#ation a+out $o+ e0aluation techni:ues and rogra##e. A. <ll grou s and grades o! e# loyees should +e co0ered +y the $o+ e0aluation rogra##e. -. %he rogra##e o! and techni:ues selected !or $o+ e0aluation should +e easy to understand +y all the e# loyees. G. %rade unions acce tance and su ort to the rogra##e should +e o+tained. ;" erts ha0e ad0anced certain guidelines !or conducting the $o+ e0aluation rogra##e in a syste#atic way. 1. 4ate the $o+(not the erson or e# loyee on the $o+. ?. Stri0e to collect all the !acts accurately. @. &oo, es ecially !or distinguishing !eatures o! $o+s and !or relationshi s to other $o+s. A. Study $o+s inde endently and o+$ecti0ely' and then discuss 0iews thoroughly and o en(#indedly +e!ore reaching !inal decisions. -. Io+ e0aluation #ust +e conducted syste#atically' +ased on !actual and accurate in!or#ation. G. %he results o! $o+ e0aluation #ust +e !air and rational and un+iased to the indi0iduals +eing a!!ected. Aenefits %he ay o!!s !ro# $o+ e0aluation #ay +e stated thus. T T T T T T It tries to lin, ay with the re:uire#ents o! the $o+. It o!!ers a syste#atic rocedure !or deter#ining the relati0e worth o! $o+s. Io+s are ran,ed on the +asis o! rational criteria such as s,ill' education' e" erience' res onsi+ilities' haKards' etc.' and are riced accordingly. <n e:uita+le wage structure is a natural outco#e o! $o+ e0aluation. <n un+iased $o+ e0aluation tends to eli#inate salary ine:uities +y lacing $o+s ha0ing si#ilar re:uire#ents in the sa#e salary range. ;# loyees as well as unions artici ate as #e#+ers o! $o+ e0aluation co##ittee while deter#ining rate grades !or di!!erent $o+s. %his hel s in sol0ing wage related grie0ances :uic,ly. Io+ e0aluation' when conducted ro erly and with care hel s in the e0aluation o! new $o+s. It oints out ossi+ilities o! #ore a ro riate use o! the lant2s la+our !orce +y indicating $o+s that need #ore or less s,illed wor,ers than those who are #anning these $o+s currently.

Bo. #4aluation Methods 17?

%here are three +asic #ethods o! $o+ e0aluation. =1> ran,ing' =?> classi!ication' =@> !actor co# arison. 1hile #any 0ariations o! these #ethods e"ist in ractice' the three +asic a roaches are descri+ed here. (anking Method 3erha s the si# lest #ethod o! $o+ e0aluation is the ran,ing #ethod. <ccording to this #ethod' $o+s are arranged !ro# highest to lowest' in order o! their 0alue or #erit to the organisation. Io+s also can +e arranged according to the relati0e di!!iculty in er!or#ing the#. %he $o+s are e"a#ined as a whole rather than on the +asis o! i# ortant !actors in the $o+6 and the $o+ at the to o! the list has the highest 0alue and o+0iously the $o+ at the +otto# o! the list will ha0e the lowest 0alue. Ta.le D/11: Arra, of Bo.s according to the (anking Method 1. ?. @. A. -. G. 4an, <ccountant <ccounts cler, 3urchase assistant Machine(o erator %y ist O!!ice +oy Monthly salaries 4s @777 4s 1)77 4s 1777 4s 1A77 4s *77 4s G77

Io+s are usually ran,ed in each de art#ent and then the de art#ent ran,ings are co#+ined to de0elo an organisational ran,ing. %he !ollowing ta+le is a hy othetical illustration o! ran,ing o! $o+s. %he 0ariation in ay#ent o! salaries de ends on the 0ariation o! the nature o! the $o+ er!or#ed +y the e# loyees. %he ran,ing #ethod is si# le to understand and ractice and it is +est suited !or a s#all organisation. Its si# licity howe0er wor,s to its disad0antage in +ig organisations +ecause ran,ings are di!!icult to de0elo in a large' co# le" organisation. Moreo0er this ,ind o! ran,ing is highly su+$ecti0e in nature and #ay o!!end #any e# loyees. %here!ore' a #ore scienti!ic and !ruit!ul way o! $o+ e0aluation is called !or. Classification Method <ccording to this #ethod' a redeter#ined nu#+er o! $o+ grou s or $o+ classes are esta+lished and $o+s are assigned to these classi!ications. %his #ethod laces grou s o! $o+s into $o+ classes or $o+ grades. Se arate classes #ay include o!!ice' clerical' #anagerial' ersonnel' etc. /ollowing is a +rie! descri tion o! such a classi!ication in an o!!ice. a/ Class I ( ;"ecuti0es. /urther classi!ication under this category #ay +e O!!ice Manager' De uty o!!ice #anager' O!!ice su erintendent' De art#ental su er0isor' etc. ./ Class II ( S,illed 1or,ers. Under this category #ay co#e the 3urchasing assistant' Bashier' 4ecei ts cler,' etc. c/ Class III ( Se#is,illed 1or,ers. Under this category #ay co#e Stenoty ists' Machine(o erators' Switch+oard o erator' etc. d/ Class I> ( Se#is,illed 1or,ers. %his category co# rises Da!taris' /ile cler,s' O!!ice +oys' etc. %he $o+ classi!ication #ethod is less su+$ecti0e when co# ared to the earlier ran,ing #ethod. %he syste# is 0ery easy to understand and acce ta+le to al#ost all e# loyees without hesitation. One strong oint in !a0our o! the #ethod is that it ta,es into account all the !actors that a $o+ co# rises. %his syste# can +e e!!ecti0ely used !or a 0ariety o! $o+s. %he wea,nesses o! the $o+ classi!ication #ethod are. T T T T ;0en when the re:uire#ents o! di!!erent $o+s di!!er' they #ay +e co#+ined into a single category' de ending on the status a $o+ carries. It is di!!icult to write all(inclusi0e descri tions o! a grade. %he #ethod o0ersi# li!ies shar di!!erences +etween di!!erent $o+s and di!!erent grades. 1hen indi0idual $o+ descri tions and grade descri tions do not #atch well' the e0aluators ha0e the tendency to classi!y the $o+ using their su+$ecti0e $udge#ents.

*actor Comparison Method 17@

< #ore syste#atic and scienti!ic #ethod o! $o+ e0aluation is the !actor co# arison #ethod. %hough it is the #ost co# le" #ethod o! all' it is consistent and a recia+le. Under this #ethod' instead o! ran,ing co# lete $o+s' each $o+ is ran,ed according to a series o! !actors. %hese !actors include #ental e!!ort' hysical e!!ort' s,ill needed' res onsi+ility' su er0isory res onsi+ility' wor,ing conditions and rather such !actors =!or instance' ,now(how' ro+le# sol0ing a+ilities' accounta+ility' etc.>. 3ay will +e assigned in this #ethod +y co# aring the weights o! the !actors re:uired !or each $o+' i.e.' the resent wages aid !or ,ey $o+s #ay +e di0ided a#ong the !actors weighted +y i# ortance =the #ost i# ortant !actor' !or instance' #ental e!!ort' recei0es the highest weight>. In other words' wages are assigned to the $o+ in co# arison to its ran,ing on each $o+ !actor. %he ste s in0ol0ed in !actor co# arison #ethod #ay +e +rie!ly stated thus. T T T T T T Select ,ey $o+s =say 1- to ?7>' re resenting wage E salary le0els across the organisation. %he selected $o+s #ust re resent as #any de art#ents as ossi+le. /ind the !actors in ter#s o! which the $o+s are e0aluated =such as s,ill' #ental e!!ort' res onsi+ility' hysical e!!ort' wor,ing conditions' etc.>. 4an, the selected $o+s under each !actor =+y each and e0ery #e#+er o! the $o+ e0aluation co##ittee> inde endently. <ssign #oney 0alue to each !actor and deter#ine the wage rates !or each ,ey $o+. %he wage rate !or a $o+ is a ortioned along the identi!ied !actors. <ll other $o+s are co# ared with the list o! ,ey $o+s and wage rates are deter#ined.

<n e"a# le o! how the !actor co# arison #ethod wor,s is gi0en +elow. Ta.le D/12: An #$ample of *actor Comparison Method /actors 5ey Io+ ;lectrician /itter 1elder Bleaner &a+ourer Daily 1age 4ate G7 -7 A7 @7 ?3hysical e!!ort 11=@> 1A=1> 1?=?> *=A> )=-> /actors #ental e!!ort 1A=1> 17=?> 7=@> G=A> A=-> S,ill 4es onsi+ility 1or,ing conditions )=?> *=1> G=@> -=A> A=->

1-=1> *=?> )=@> A=-> G=A>

1?=1> )=?> 7=@> G=A> @=->

<!ter the wage rate !or a $o+ is distri+uted along the identi!ied and ran,ed !actors' all other $o+s in the de art#ent are co# ared in ter#s o! each !actor. Su ose the $o+ o! a 2 ainter2 is !ound to +e si#ilar to electrician in s,ill =1->' !itter in #ental e!!ort =17>' welder in hysical e!!ort =1?> cleaner in res onsi+ility =G> and la+ourer in wor,ing conditions =A>. %he wage rate !or this $o+ would +e =1-N17N1?NGNA> is A7. Ta.le D/1!: Merits and 'emerits of *actor Comparison Method Merits De#erits T T <nalytical and o+$ecti0e. T Di!!icult to understand' e" lain and o erate. Its use o! the sa#e criteria to assess all $o+s is :uestiona+le as $o+s di!!er across and within organisations. %i#e consu#ing and costly.

4elati0e and 0alid as each $o+ is co# ared $o+s with all other $o+s T in ter#s o! ,ey !actors. Money 0alues are assigned in a !air way +ased on an agreed ran, order !i"ed +y the $o+ e0aluation T co##ittee. /le"i+le as there is no u er li#itation on the rating o! a !actor.

T Point method

%his #ethod is widely used currently. Here' $o+s are e" ressed in ter#s o! ,ey !actors. 3oints are assigned to each !actor a!ter rioritising each !actor in order o! i# ortance. %he oints are su##ed u to deter#ine the wage rate !or the $o+. Io+s with si#ilar oint totals are laced in si#ilar ay grades. %he rocedure in0ol0ed #ay +e e" lained thus. 17A

a. Select ,ey $o+s. Identi!y the !actors co##on to all the identi!ied $o+s such as s,ill e!!ort' res onsi+ility' etc. +. Di0ide each #a$or !actor into a nu#+er o! su+ !actors. ;ach su+ !actor is de!ined and e" ressed clearly in the order o! i# ortance' re!era+ly along a scale. %he #ost !re:uent !actors e# loyed in oint syste#s are =i> S,ill =,ey !actor>6 ;ducation and training re:uired' Breadth E de th o! e" erience re:uired' Social s,ills re:uired' 3ro+le#(sol0ing s,ills' Degree o! discretion E use o! $udge#ent' Breati0e thin,ing =ii> 4es onsi+ility E <ccounta+ility. Breadth o! res onsi+ility' S ecialised res onsi+ility' Bo# le"ity o! the wor,' Degree o! !reedo# to act' Nu#+er and nature o! su+ordinate sta!!' ;"tent o! accounta+ility !or e:ui #ent E lant' ;"tent o! accounta+ility !or roduct E #aterials6 =iii> ;!!ort. Mental de#ands o! a $o+' 3hysical de#ands o! a $o+' Degree o! otential stress %he educational re:uire#ents =su+ !actor> under the s,ill =,ey !actor> #ay +e e" ressed thus in the order o! i# ortance. Ao$ D/2 Degree 1 ? @ De!ine <+le to carry out si# le calculations6 High School educated Does all the clerical o erations6 co# uter literate6 graduate Handles #ail' de0elo s contacts' ta,es initiati0e and does wor, inde endently6 ostgraduate

<ssign oint 0alues to degrees a!ter !i"ing a relati0e 0alue !or each ,ey !actor. Ta.le D/1": Point >alues to *actors along a %cale 3oint 0alues !or Degrees /actor 1 ? @ A S,ill 17 ?7 @7 A7 -7 3hysical e!!ort ) 1G ?A @? A7 Mental e!!ort 17 1?7 ?4es onsi+ility 7 1A ?1 ?) @G 1? 1) ?A @7 Ma"i#u# total oints o! all !actors de ending on their i# ortance to $o+ M =Ban, O!!icer> c. %otal 1-7 1?7 717*7 -A7

/ind the #a"i#u# nu#+er o! oints assigned to each $o+ =a!ter adding u the oint 0alues o! all su+(!actors o! such a $o+>. %his would hel in !inding the relati0e worth o! a $o+. /or instance' the #a"i#u# oints assigned to an o!!icer2s $o+ in a +an, co#e to -A7. %he #anager2s $o+' a!ter adding u ,ey !actors N su+ !actors oints' #ay +e getting a oint 0alue o! say G-7 !ro# the $o+ e0aluation co##ittee. %his $o+ is now riced at a higher le0el.

d. Once the worth o! a $o+ in ter#s o! total oints is e" ressed' the oints are con0erted into #oney 0alues ,ee ing in 0iew the hourly E daily wage rates. < wage sur0ey' usually' is underta,en to collect wage rates o! certain ,ey $o+s in the organisation. &et2s e" lain this. Ta.le D/16: Con4ersion of Bo. 3rade Points into Mone, >alue 3oint range -77(G77 G77(777 777()77 )77(*77 *77(1777 Merits and 'emerits %he oint #ethod is a su erior and widely used #ethod o! e0aluating $o+s. It !orces raters to loo, into all ,eys !actors and su+(!actors o! a $o+. 3oint 0alues are assigned all !actors in a syste#atic way' eli#inating +ias at e0ery stage. It is relia+le +ecause raters using si#ilar criteria would get #ore or less si#ilar answers. %he #ethodology underlying the a roach contri+utes to a #ini#u# o! rating error =4o++ins .@G1>. It accounts !or 17Daily 1age rate =4s> @77(A77 A77(-77 -77(G77 G77(777 777()77 Io+ grades o! ,ey +an, o!!icials 1 O!!icer ? <ccountant @ Manager I Scale A Manager II Scale - Manager III Scale

di!!erences in wage rates !or 0arious $o+s on the strength o! $o+ !actors. Io+s #ay change o0er ti#e' +ut the rating scales esta+lished under the oint #ethod re#ain una!!ected. On the negati0e side' the oint #ethod is co# le". 3re aring a #anual !or 0arious $o+s' !i"ing 0alues !or ,ey and su+(!actors' esta+lishing wage rates !or di!!erent grades' etc.' is a ti#e consu#ing rocess. <ccording to DecenKo and 4o++ins' Sthe ,ey criteria #ust +e care!ully and clearly identi!ied' degrees o! !actors ha0e to +e agreed u on in ter#s that #ean the sa#e to all rates' the weight o! each criterion has to +e esta+lished and oint 0alues #ust +e assigned to degreesS. %his #ay +e too ta"ing' es ecially while e0aluating #anagerial $o+s where the nature o! wor, =0aried' co# le"' no0el> is such that it cannot +e e" ressed in :uanti!ia+le nu#+ers. < co# arati0e icture o! 0arious $o+ e0aluation #ethods #ay +e resented thus =%a+le *.1G> Ta.le D/1:: Ma5or Bo. #4aluation Methods Method 4an,ing What facet of 5o. is e4aluated& 1hole $o+ =co# ensa+ le !actors are i# licit> o= is 5o. e4aluated& Io+s are su+$ecti0ely ordered according to relati0e worth Bo# are $o+ to descri tions o! $o+ grades Bo# are $o+ to ,ey $o+s on scales o! co# ensa+le !actors Bo# are $o+ to standardised descri tions o! degrees o! uni0ersal co# ensa+le !actors and su+!actors Ma5or Ma5or ad4antages7 disad4antage7s s8 8 Non( 4elati0ely ;ntirely :uantitati0 :uic, and su+$ecti0e e e" ensi0e Non( :uantitati0 e Duantitati0 e 4eadily Bu#+erso#e a0aila+le and syste# ine" ensi0e ;asy to use Hard to construct6 inaccurate o0erti#e T,pe of method

Blassi!icatio 1hole $o+ n /actor Bo# ensa+ le !actors o! co# arison $o+ 3oint #ethod Bo# ensa+ le !actors o! $o+

Duantitati0 <ccurate and May +e costly e sta+le o0erti#e

Limitations of Bo. #4aluation 1. ?. @. A. Io+ e0aluation is not e"actly scienti!ic. %he #odus o erandi o! #ost o! techni:ues is di!!icult to understand e0en to the su er0isors. %he !actors ta,en +y the rogra##e are not e"hausti0e. %here #ay +e wide !luctuations in co# ensa+le !actors in 0iew o! changes in technology' 0alues and as irations o! e# loyers' etc. -. ;# loyees' trade union leaders' #anage#ent and the rogra##e o erators #ay ercei0e di!!erently in selecting the co# ensa+le !actors' in gi0ing weightages or degrees etc. G. %he result o! $o+ e0aluation #ay not e"actly coincide with social e0aluations' which in turn' result in e# loyee dissatis!action. 7 Io+ e0aluation is only one a#ong se0eral !actors in deter#ining wage le0el. So#eti#es other !actors li,e go0ern#ent olicy #ay do#inate the $o+ e0aluation. Wage and %alar, %ur4e,s 1hile $o+ e0aluation ensures internal e:uity' wage and salary sur0eys ensure e"ternal e:uity. < wage and salary sur0ey ro0ides in!or#ation as to what other organisations that co# ete !or e# loyees are aying. %he sur0ey could co0er all the $o+s within an organisation =o+0iously costly and hence a0oided> or li#ited to +ench#ar, $o+s' $o+s that are used to anchor the co# any2s ay scale and around which other $o+s are slotted +ased on their relati0e worth to the !ir#. %he +ench#ar, $o+s ha0e the !ollowing +asic characteristics. T Many wor,ers in other co# anies ha0e these $o+s. T %hey will not +e changing in the i##ediate !uture in ter#s o! tas,s' res onsi+ilities' etc. T %hey re resent the !ull range in ter#s o! salary such that so#e are a#ong the lowest aid in the grou o! 17G

$o+s' others are in the #iddle range and so#e are at the high end o! the ay scale. /or#al and in!or#al sur0eys =through tele hone' !or e"a# le> could +e underta,en to collect data on +ene!its li,e insurance' #edical lea0e' 0acation ay' etc. and so o!!er a +asis on which to ta,e decisions regarding e# loyee +ene!its. 3u+lished sources also ro0ide 0alua+le in!or#ation regarding industry(wise trends in salary structures in and around the country. %he u+lished sources in India include. T T T T T 4e orts u+lished +y the Ministry o! &a+our. 3ay co##ission re orts. 4e orts o! 1age Bonds a ointed +y Go0ern#ent. 4e orts o! e# loyees and e# loyers2 organisations. %rade $ournals o! s eci!ic industry grou s' etc.

One o! the #a$or ro+le#s with these sources is the co# ara+ility o! $o+s in the sur0ey to $o+s in the organisation. %o o0erco#e the li#itations o! u+lished sur0eys conduct your own sur0eys o! i# ortant $o+s. %he !ollowing sur0ey #ethods are generally used to collect rele0ant wage(related in!or#ation. K K K K K Ke, 5o. matching: Under this #ethod' si#ilar ,ey $o+s are identi!ied +etween the organisations and the rele0ant wage articulars a+out those co# ara+le $o+s are collected. Ke, class matching: Si#ilar classes o! $o+s are identi!ied and the necessary data a+out those classes are collected. )ccupational method: Bertain +asic occu ational grou s li,e cler,s' o!!icers #anagers are identi!ied and then the necessary data is collected. Bo. e4aluation method* <ll the arties artici ating in the sur0ey #ethod' use the sa#e #ethod and sa#e #echanis# !or e0aluating si#ilar $o+s. Aroad classification method: Under this #ethod' +road grou s o! relati0ely ho#ogeneous $o+s' i.e.' +y industry' +y ro!ession or +y geogra hical area are grou ed and the rele0ant in!or#ation a+out these $o+s is collected.

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