JUNE 2014 EXAMINATION

HR 03/eHR 03

PERFORMANCE MANAGEMENT
Time: Three Hours Maximum Marks: 100

Note:

1. The paper is divided in three sections: SECTION-A, SECTION-B and SECTION-C.

2. There are seven questions in SECTION-A. Students are required to attempt ANY FOUR.
3. SECTION-B has five questions, attempt ANY THREE.
4. All the questions of SECTION-C (Case Study) are compulsory.

Section-A (10 Marks each)

1. “Performance Appraisal is an integral part of Performance Management”. Discuss.

2. Discuss the concept of Performance Management Theatre. Explain its pillars.

3. Elaborate the components of how to manage performance?

4. Write short notes on any two of the following

i) Emotional Intelligence
ii) Assessment Centre
iii) Common Rating Errors

5. Distinguish between the following:

i) Intrinsic and Extrinsic Rewards
ii) Performance based performance management system and Competency based
performance management system.

6. Illustrate any two methods of performance appraisal which are widely used in private
sector organizations in India.

7. Do you think organizational change can be operationalized through performance

management? How?

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 Section-B (15 Marks each)

8. What are the guidelines that should be kept in mind by HR Managers for implementing a
sound performance linked recognition and reward system? Give examples to support
your answer.

9. Which step/function of the Performance Management Process define expectations of

the management from its employees-the results to be achieved and the skills,
knowledge, expertise, and capabilities required to meet the expectations. Elaborate the
activities carried out in this step/function.

10. i) Are the intragroup and intergroup conflicts good or bad for organizational
performance? Give adequate reasons/logic to support your answer.
ii) List and briefly explain the five techniques to manage conflict for better
performance. (7+8)

11. Assume yourself Head of HR Department of any small organization (with 150-200
employees) known to you. How will you go about implementation of a new Performance
Management Process in that organization? Elaborate steps involved in the process.

12. Develop a form/template for performance planning of sales executives of an FMCG

company. The form/template should reflect your conceptual understanding of the
performance planning process.

Section-C (15 Marks)

Case Study (Compulsory)

Paradise Bank is a nationalized bank and has operations spread all over India. The employees are a
satisfied lot as they feel that the management is fair in terms of compensation. The Chief HR manager
always made it a point to see that the appraisal system being implemented enjoyed the confidence and
support of the employees. Hence there was always a feedback session after the appraisal process was
over.

PLN Bank had a high turnover of employees. Even though its compensation packages were similar to
those at Paradise Bank, the employees were not happy. The bank HR manager Paresh was worried.
Employee appraisal was an annual affair as it was in Paradise. Paresh could not understand why there
was a difference in employee satisfaction levels when both the banks had similar appraisal and
compensation systems. He planned to discuss this issue with the HR manager of Paradise Bank.

Paradise Bank had an appraisal system that was similar to the one practiced by other banks, but the
implementation was quite different. Traditionally, Departmental heads and employees debated on the
unattained targets and finally reached a consensus on a pay hike or other related aspects. At Paradise
Bank, however, the performance appraisal exercise was an occasion to map out future profitable

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strategies to be collected pursued by employees, while taking into consideration the organizational
objectives of the firm. The exercise also helped individual employees identify their competency gaps and
training needs, with the help of their supervisors. The HR department made performance management a
continuous process that involved continuous interaction between the bosses and their teams, to have a
continuous review of the targets to be attained. Here, the employees were given freedom to estimate
and determine certain targets and were not forced to achieve targets determined and imposed by the
management. The main features of the performance appraisal system at the Paradise Bank are as
follows:-

 The PM process included certain joint evaluations by the teams and their heads by taking market
conditions, consumer feedback, deployable energies and resources into consideration, to
prepare strategies.
 The PM system does not limit itself to a set of metrics to be attained; rather it involves
identifying any lacunae in the skills or knowledge of the employees which hinder their
performances.
 Apart from providing guidance to the employee, the system effectively nourishes a healthy
relationship between the bosses and the employees. This is turn helps build partnerships to
hone the emotional intelligence, fine tune attitudes and build healthy organizational culture.
 The PM function helps employees to develop skills, perspective and initiatives rather than just
confirming itself to subjective measurement, which finally gets reflected in the employee
compensation. The management believes that performance management is thus an effective
tool to increase the value of the human asset.

13. Case Questions:

i) What are the differences, in the appraisal system being implemented by Paradise and
PLN Bank?

ii) What are the changes you suggest in the implementation of the appraisal system at PLN
Bank to make it more effective and acceptable? (7+8)

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