TABLE OF CONTENTS

PART A:
INTRODUCTION…………………………………………….. 3
WORKFORCE DIVERSITY…………………………………3
LEGISLATION………………………………………………...4
REASONS FOR DIVERSITY…………………………………4
WORKFORCE DIVERSITY BENEFITS…………………… 5
DISADVANTAGES OF WORKFORCE DIVERSITY………6
CHALENGES OF WORKFORCE DIVERSITY…………….7-8
WORKFORCE DIVERSITY ANS AN OPPORTUNITY……8
APPENDIX……………………………………………………… 9-10
CONCLUSION ………………………………………………….11
REFERENCES………………………………………………….12-13
PART B
INTRODUCTION………………………………………………14
PMS………………………………………………………………14
OBJECTIVES OF PMS…………………………………………15
BENEFITS OF A STRUCTURED PMS……………………….15
PERFORMANCE APPRAISAL………………………………..16
TYPES OF PERFORMANCE APPRAISAL…………………..16-17
PERFORMANCE APPRAISAL ERRORS…………………….17-18
LIMITATIONS OF PMS…………………………………………18-19
HOW TO IMPROVE PMS………………………………………. 19-20
APENDIX…………………………………………………………. 21-26
CONCLUSION/ REFERENCES..................……………………. 27-29
PART A:
INTRODUCTION
As we go into the 21st century, the advancement in technology and the emerging o
f global economy is bringing people closer together than ever before. The labor
force has become more diverse and more people who are demographically dissimilar
from each other are working together than ever before as well. Workforce divers
ity has become vital issue in the business world. There is no organization/compa
ny that will restrict itself from drawing the attention of the very best employe
es available and retaining them. It can also be a source of chaos and conflict a
ll depending on how we manage it. In this assignment the researcher will be focu
sing on workforce diversity; its merits and demerits and other issues related to
the research.
WORKFORCE DIVERSITY
Firstly, Collins Gem dictionary defined workforce as all the active people emplo
yed by an organization or working on a particular given task (Collins Gem pocket
English dictionary, New Edition), and a Workforce Diversity means having variet
y of people with diverse demographics working together in an organization irresp
ective of their age, class, public assistance status, physical and mental abilit
y, sexual orientation, religion and gender. (Esty et al, 1995)
In addition, Fred Luthans in his exact words he described workforce diversity as
“the presence of members of different age, genders, ethnic groups, and/or educati
onal backgrounds in an organization”
(scribd, managing workforce diversity, 2010)
LEGISLATION
The equal opportunity rights makes any sort of discrimination in the workplace i
llegal, these rights are for both the employers and employees who so ever should
breach them will be held accountable. (Diplomkaufmann, 2007)
REASON FOR DIVERSITY
One of the main reasons leading to diversity is the change in workforce environm
ent which now includes: minorities, women, old people and the highly educated pe
ople. The rapid development of international businesses also has a great impact
on diversity. Also, it will provide diverse opinions which will advance the way
of doing things in a workplace.
The markets are highly competitive now-a-days and organizations want to get the
best employees around. And on the other hand, give equal opportunity rights to a
ll employees and members of the society.
(scribd, managing workforce diversity, 2010)
WORKFORCE DIVERSITY BENEFITS
It is vital to have diversity in the workforce of every working environment as i
ts aim is to improve and maintain a competitive advantage.
Having a diverse workforce will help an organization be able to meet up wit
h the needs and wants of both local and international markets. Diversity in work
force also helps to increase the positive image of organizations in the communit
y by giving it the “good corporate citizen” and an “employer of choice” image.
Organizations also take advantage of it to employ and retain the very best
employees from different community and background and also retain customers.
A workforce that consists of different people can be more innovative and cr
eative as the difference in life experience and background may bring about diver
se viewpoints and options.
(Thomas L., 2009)
It is also a way of motivating employees as knowing that the organization
now has a wide variety of labor to choose from, workers tends to be competent a
s they know the not-performing employees will be screened out.
With a diverse workforce problems can be solved immediately as people’s diffe
rent perspectives are brought together. In other words, it reduces group thinkin
g which gives higher chances of make creative solutions.
(scribd, Work Force diversity, 2010)
DIASADVANTAGES OF DIVERSITY IN WORKFORCE
While it is serving as competitive advantage to some organizations, it is a prob
lem to most organizations.
In a diverse workplace, the cost of training will increase as a result of semina
rs, lectures and programs that will be organized to encourage diversity and ways
to handle conflicts discriminations in a matured way. Moreover, a strategy must
be created and implemented to make up a successful diversified environment for
all, in order for the various departments to function effectively.
The rate of conflicts will also rise due to lack of knowledge on how to
manage diversity causing by one feeling superior to the other. Moreover, amount
of turnover (people getting hired and leaving the organization) will increase r
esulting to lacking job security, work absenteeism will also rise.
(scribd, Work Force diversity, 2010)
CHALLENGES OF WORKFORCE DIVERSITY
In a diverse workforce, co-workers are likely to different from each because of
their differences and all are needed to be managed. Managing diversity is one of
the biggest challenges organizations/managers face. Here are some challenges.
Many organizational theorists suggest that one of the main reason diverse wo
rkforce is difficult to handle and motivate is because of miscommunication in th
e organization, such is Judy Bradwell where she explains in her article developi
ng receiver-centered Communication in Diverse Organization where she said “meaning
s of messages can never be completely shared because no two individuals experien
ce events in exactly the same way ,even when natives and non-natives speakers ar
e exposed to the same messages, they may interpret the message differently”
(Brodwell Judi, 2003)
Secondly, when managing diverse managers have to, consider the ethics of differe
nce, fight against discrimination and have to encourage inclusiveness and other
challenges like low productivity as a result of stereotypes, prejudice or suing
of the organization complaint.
(Devoe, Deborah, 1999)
Thirdly, managers and supervisors of every diverse workplace must know how to bu
ild a friendly environment that encourages and values all employees, in which th
ey can work to the best of their abilities.
If an organization can overcome these two challenges then it will have a compet
itive advantage over rivals and failure to achieve either of them will diminish
organization workgroup productivity.
(Katharine C. Esty et al, 1995).
To make it work in organizations with diverse people, the managers have to stron
gly believe in multiculturalism and equal treatment to all and the best way to l
earn about personal biases or stereotypes that might affect job performance is t
hrough careful and self-examination. Moreover managing diversity extends beyond
affirmative action and equal employment opportunity (EEO), it also talks about h
ow the diverse workforce is necessary to creating productivity.
(N. Mcdonald & Hasselfield, 1995)
WORKFORCE DIVERSITY AS AN OPPORTUNITY
As the researcher mentioned earlier Diversity management can be a competitive ad
vantage if used appropriately and greater improvement in creativity and innovati
on.
(Nancy J. adler, 1997)
It is also a greater opportunity for better decision making, and allocation of
economic opportunity. Furthermore, as a result of knowing customer needs better
customer service will be delivered. (scribd, Work Force diversity, 2010)

APPENDIX
In this appendix the researcher is going to look at some of the organizations th
at commit to Diversity in the Workforce environment.
GOOGLE DIVERSITY
Google is one of the Biggest Technology Companies that greatly benefits from the
Workforce Diversity. In a statement by the senior vice President of Google Engi
neering and Research, Alan Eustace said that “Diversity plays a large role in the
way we’re developing our engineering organization around the world. We’re building a
large worldwide office presence to establish ample global representation among
our engineers, and we’re applying that same focus to establish a balanced represen
tation of employees at Google. In the end, these efforts help us more accurately
and relevantly represent our users, and our continued success depends on the be
st minds working from different perspectives and insights”
INFOSYS DIVERSITY
Globalization has changed the way things work in the working environment and org
anizations needs to be catching up or they will lose market share.
Infosys is a company that employs workers from the diverse community in order to
capture the very best talents available ranging from sexual orientation, cultur
es, nationalities, sex and sex characteristics, history of employment to object
abilities one possess. As a result various types of employees are available glob
ally to choose from, comprising of other people with innate abilities that have
been looked down by other IT firms. These people will work together bringing div
erse viewpoints and opinions in the workplace, coming up with new thought and ot
her new ways to improve. Infosys is using Diversity as a tool to motivate them t
owards innovation.
Infosys was the first IT Company in India to make available a company office th
at its purpose is only to deal with all issues relating to diversity and inclusi
on of all their staffs in the workplace. Today, more women are employed and they
make up more than 32% of the company total employees and the overall employees
come from over 70 countries around the world.
(scribd, Work Force diversity, 2010)

CONCLUSION
In today’s world, the diverse workforce is a reflection of globalization/changing
world. The leading organizations will be the ones that provide innovative goods
and services and gaining customer loyalty through excellent services. Diversity
does not only refer to the way people look differently but also people with diff
erent life experiences coming together to work as team. Having a diverse workfor
ce will lead to better performances and increase openness to change. It is vital
for organizational managers to learn about diversity and know how to manage it,
if not it will not be successful.

REFERENCES
• Collin Gems Pocket English Dictionary, New Edition
• Esty Katherine, Richar Griffin and Macie Schorr-Hirsh, 1995, Workplace Diversity
. A Manager Guide To Solving Problems and Turning Diversity into a Competitive A
dvantage. Avon, MA: Adams Media Corporation
• http://www.scribd.com/doc/26552082/Managing-Workforce-Diversity, DATE VIEWED 5TH
APRIL, 2010
• Diplomkaufmann (FH) Marco Erlenkamp, 2007, Managing International Teams and Work
force Diversity Akademische Schriftenreihe, GRIN Verlag.
• Thomas L. Means, 2009, Bussiness Communications, Applied English 2nd Edition, Ce
ngage Learning
• http://www.scribd.com/doc/24005626/Work-Force-diversity, DATE VIEWED 7TH APRIL,
2010
• Brodwell, Judy, 2003, developing receiver-centered Communication in Diverse Orga
nizations, journal, Listening Professional 2(1), pg5-25
• Devoe, Deborah. 1999. Managing diverse workforce, San Mateo, CA, journal, InfoWo
rld Media Group
• Katharine C. Esty, Richard Griffin and Marcie Schorr Hirsch, 1995, workplace div
ersity, Adams Media
• N. Mcdonald, G. Hasselfield,, 1995, Managing Diversity: A Guide to Effective Sta
ff Management, Cross Cultural Communications International
• Nancy J. adler, 1997, International dimensions of organizational behavior, South
Western

PART B:
INTRODUCTION
In many organizations today, managing the work and performance of employees is v
ery important task that all managers and rating officials perform throughout the
year. This process ensures that employees center their attentions on their work
ing efforts to meet the organization’s aims and goals. Most importantly the organi
zation tends to monitor performance, reward the hard working staffs and challeng
e those who do not. In this assignment the researcher will be focusing on Perfor
mance management system, its importance and the issues to improve PMS in an orga
nization. Moreover, performance appraisal will also be included where the resear
cher reveals how it can be used to evaluate the performance of an employee.
PERFORMANCE MANAGEMENT SYSTEM
The success of a good performance management depends heavenly on the system and
people working together to ensure that the works are done correctly. A Performan
ce Management system can be defined as a management system with the aim of measu
ring, improving and rewarding the performance of employees (usually a group of p
eople) to best possible performance of task or group of tasks. (wiktionary, per
formance management system, 2010)

OBJECTIVE OF PERFORMANCE MANAGEMENT SYSTEM

• To present analysis on how good is the performance of employees
• To set up a development plan that will improve employee performance and make the
m ready for upcoming tasks.
• To help them in determining the rewards given as a result of performance, that u
sually come hand-in-hand with employee abilities, hard work and success.
• To improve the bond between employers and employees and improve working relation
s and understanding. (scribd, Performance Management System Philosophy, 2010)
BENEFITS OF A STRUCTURED PMS:
Improve organizational Productivity: PMS will help organizations increase the pr
oduction and improve the performance of employee.
Increase employee responsibility: organizational targets are clearly defines, an
d employees are responsible for each of their actions leading to the goals.
Enhance quality of work: when employees are good in what they do, they will gain
more work fulfillment. Moreover, it will reduce quarrels among them.
Solving employee under performance: It helps the organization realize the reason
of under performance in some employees and make strategic decisions to solve th
e problem.
(greatbiztools, performance Management benefits, 2010)
PERFORMANCE APPRAISAL
Performance appraisal is a system used for measuring and evaluating the performa
nce of employees and moreover setting job standards for them. The appraisal is m
ostly set by the employer close manager and it requires the manager to complete
an appraisal form that assess the employee in different ways and finally talk ab
out the outcome with the employees.
(Grote &R Grote, 2002)
TYPES OF PERFORMANCE APPRAISAL
After evaluation of employee’s performance, providing feedback is important as it
give a person the idea of how well they are performing and how they might improv
e. There are a number of methods used in reviewing employee performance. They ar
e:
Confidential reports: This is classified as the oldest method used. It is mostly
prepared at the end of the year by employee direct superior. The report indicat
es the strengths and weakness of the employer. It does not offer any feedback as
reports are reserved not to be disclosed.
Critical incidents: In this method the employee’s effective and ineffective behavi
ors are recorded. The manager keeps record of all the behaviors and reviews them
at the end of the year. These critical incidents are used to evaluate workers p
erformance.
Checklist Techniques: In the checklist method, the immediate superior will be pr
esent with a paper which contains a description about the employee and his behav
ior. The answers are simply filled with a yes/no checklist.
360 Degree Appraisal Method: In this case people the superiors but who are in co
ntact with the employee on a daily basis provide data of employee performance. T
he feedback is the n passed onto them to improve output.
Paired Comparison Analysis: This method employee individual performance is compa
red to all the other employees in the team. This could be from the best to worst
or worst to best.
Graphics Rating Scales: As the oldest and general method used, this is a method
where the direct superior simply checks off the employee performance level. Vari
ety of traits may be used such as quantity and quality of work.
(humanresources, performance appraisal methods, 2010)
PERFORMANCE APPRAISAL ERRORS
For a very reliable and valid appraisal system, there some certain number of mea
surement errors that need to be taken care of, to ensure the dependable and qual
ity of the appraisal.
Negative and positive skew: this is the opposite central tendency where individu
als are rated higher or lower than their actual performance.
First impression: allowing first impression whether positive or negative to affe
ct rating. In this case the supervisor makes a first positive or negative judgme
nt about employee which later will affect end results.
Central tendency: this is where the appraiser rates everyone average rather than
base on performance even though when their performance clearly deserves higher
or lower rating.
Recency effect: this is the tendency of allowing recent events to influence rati
ng more than the major events that happen in the past months.
Similar-to-me: this is rating people who resemble themselves higher than other e
mployees.
Attractiveness effect: this is the tendency of the supervisor or appraiser to as
sume that people who are physically attractive are capable of superior performan
ce.
Others also include attribution bias, contrast error, halo effect and stereotypi
ng.
(Richard c. Grote, 1996)
LIMITATIONS OF PERFORMANCE MANAGEMENT SYSTEM
Risk of internal competition: As employees fight for position, job status and pa
y this can lead to backstabbing, failure within team members to communicate effi
ciently and strong rivalry between employees, which can result to failure in acc
omplishing performance.
(ehow, disadvantages performance management system, 2010)
Ability of a manager: a manager who does not have the sufficient knowledge on th
e job or how to appraise is likely to fail presenting the best work.
Motivation of manager: the end result of the appraisal in some ways relies on ho
w the direct superior values it. If the manager really believes it will contribu
te a lot to the organization, he will provide good work than he thinks is just t
ime-wasting.
Personal bias: in some instances the superiors analyzing the performance can be
bias which will therefore affect the outcome of performance appraisal. (James &
Higgins M., 1994)
Dependence in factors analyzed: Analysis of performance appraisal looks into dif
ferent areas related to the job. If these factors are not job related then the a
ppraisal will be ineffectual.
Subjectivity: factors like skills, punctuality, hard work and creativity are ver
y subjective related and they cannot be assessed objectively. (M. Sakthivel Muru
gan, 2007)
HOW TO IMPROVE PERFORMANCE MANAGEMENT SYSTEM
Be objective: In PMS it is important to be objective. Personal opinions do not h
ave any impact in ones performances. It’s all about performance and not personalit
y.
S.M.A.R.T: with the use measurable indicators like SMART will improve the succes
s of organizations as it will make certain that everyone in the organization is
clearly knows their roles and responsibilities to do to contribute to the succes
s of the firm.
Relevant indicators: the use of indicators that is only necessary for the PM wil
l help in assuring more accurate results. Example, there is no need of assessing
creativity in the accounting department, it is not relevant. (Banfield & Kay R.
, 2008)
Performance Management Cycle: The PMC is method used by company top managers and
other executives to support employee growth and the satisfaction derived from t
he job. In other words, the job and skills of employees are assessed by employer
for consistent growth. The basic PMC consists of three stages: planning, checki
ng-in and assessment. All are shown in the diagram below. (wisegeek, what is a p
erformance management cycle, 2010)
(Images Google, 2010)

APPENDIX
In this appendix the researcher gives an example of the performance Appraisal fo
rm done by the University Of Carlifornia Berkeley.
Note: Appropriate for all classifications except CUE-represented employees; pa
rticularly suitable for professional, analytical, technical, and research staff
positions. Do not use for CUE employees pending further notice.
UNIVERSITY OF CALIFORNIA, BERKELEY
Performance Evaluation
Employee Name:
Supervisor s Name:
Title:
Title:
UC Hire Date:
Department:
Evaluation Period:
Length of time you have supervised employee:
Years: Months:

FUNCTIONAL AREAS OF RESPONSIBILITY

List below the essential functions of the position, and/or projects for which th
e employee is evaluated:

Rating Standards
Unacceptable Work performance is inadequate and inferior to the standards of
performance required for the position. Performance at this level cannot be allow
ed to continue.
Improvement Needed Work performance does not consistently meet the standard
s of performance for the position. Serious effort is needed to improve performan
ce.
Meets Expectations Work performance consistently meets the standards of per
formance for the position.
Exceeds Expectations Work performance is consistently above the standard of p
erformance for the position.
Outstanding Work performance is consistently superior to standards required
for the job.
Not Applicable The employee is not required to perform in a specific rating fac
tor, and it cannot be measured.

NA U IN ME EE 0 RATING FACTORS COMMENTS

Technical Skills (Effectiveness with which the employee applies job knowledge an
d skill to job assignments)

Job Knowledge
 Analyzes Problems

Provides Suggestions for

Work Improvement

Employs Tools of the Job

Competently

Follows Proper Safety

Procedures

Quality of Work (Manner in which the employee completes job assignments)

Accuracy or Precision

Thoroughness/Neatness

Reliability
 Responsiveness to Requests
For Service

Follow-Through/Follow-Up

Judgment/Decision Making

NA U IN ME EE 0 RATING FACTORS COMMENTS

Interpersonal Skills (Effectiveness of the employee’s interactions with others and
as a team participant)

With Co-workers

With Supervisors

With Other Faculty, Staff

Students, and/or Community
 Team Participation

Team Contributions

Commitment to Team
Success

Communication Skills (If applicable to the job)

Written Expression

Oral Expression

Shares Information Willingly

Tact and Diplomacy

Approach to Work (Characteristics the employee demonstrates while performing job
assignments)

Actively Seeks Ways to

Streamline Processes

Open to New Ideas and

Approaches

Initiative

Planning and Organization

Flexible/Adaptable

Follows Instructions

Challenges Status Quo

 Processes in Appropriate Ways

Seeks Additional Training

and Development

Attendance

Quantity of work (Employee’s success in producing the required amount of work)

Priority Setting

Amount of Work
Completed

Work Completed on
Schedule

NA U IN ME EE 0 RATING FACTORS COMMENTS

Supervisory/Leadership Skills (Applies only to employee who is a Manager, Super

visor, or Lead)
Support of UC Diversity
Efforts/Programs

Trains and Develops Staff

Properly Aligns Responsibility,

Accountability, Authority

Evaluates Staff Regularly

Faces Performance
Problems Squarely

Supports Responsible Risk

Taking
Controls Costs and Maximizes
Resources

Instills Pride in Performance,

Service, Innovation, and Quality

Sets High Standards for Self, As

Well as Others

Employs Broad Institutional

Goals in Evaluating Unit
Effectiveness

Supports Useful Debate and

Disagreement

Welcomes Constructive
Criticism
 Fosters Respect for Facts, Data,
and Objective Analysis

Uses Analytical Tools and Models

for Process Improvement

Sets Specific Goals for Simplicity,

Productivity, and Process
Improvements

Supports Experimentation and

Brainstorming That Leads to
Innovation and Learning

Overall Performance Rating

0 Unacceptable
0 Improvement
Needed 0 Meets
Expectations 0 Exceeds
Expectations 0 Outstanding

Work performance is
inadequate and inferior
to the standards of
performance required
for the position.
Performance at this
level cannot be
allowed to continue.
Work performance
does not consistently
meet the standards of
performance for the
position. Serious
effort is needed to
improve performance.

Work performance
consistently meets
the standards of
performance for the
position.
Work performance is
consistently above the
standard of
performance
for the position.
Work performance is
consistently superior
to the standards
required for the job.
Place an X in the box above that describes the employee’s overall performance rati
ng.
Supervisor’s Comments
(Additional comments may be attached)

Actions Plans/Training and Development Goals

(If applicable, summarize any specific projects, performance objectives, or trai
ning and development for the next review period)

Employee Comments/Reactions
(Optional. If employee wishes to do so, any comments concerning the appraisal m
ay be indicated in this section, or by an attachment)
Employee Signature
Date
I have read and discussed this evaluation with my supervisor and I understand it
s contents. My signature means that I have been advised of my performance statu
s and does not necessarily imply that I agree with either the appraisal or the c
ontents.

Supervisor
Reviewer

Signature Date
Signature
Date

SOURCE: hrweb berkeley forms, 2010

CONCLUSION
An effective and efficient PMS is very important for an organization to achieve
success. A PMS is important as it is a way of transforming resources, in this ca
se people into assets to the organization. It facilitates the manager in coordin
ating with employees to perform in the best of their abilities and meet and poss
ibly excel in achieving the targets and standards of the organization.
 REFERENCES
• (http://en.wiktionary.org/wiki/performance_management_system, DATE VIEWED 20TH M
ARCH 2010
• http://www.scribd.com/doc/23116687/Performance-Management-System-Philosophy, DAT
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• http://www.greatbiztools.com/index.cfm?go=productsServices.performanceManagement
.benefits, DATE VIEWED 20TH MARCH 2010
• Dick Grote, Richard C. Grote, 2002, The Performance Appraisal Question and Answe
r Book: A survival Guide for Managers, AMACON Div American Mgmt Assn.
• http://www.humanresources.hrvinet.com/performance-appraisal-methods/, DATE VIEWE
D 22TH MARCH 2010
• Richard C. Grote, 1996, The Complete Guide to Performance Appraisal, AMACON Div
American Mgmt Assn.
• http://www.ehow.com/list_5852735_disadvantages-performance-management-system.htm
l, DATE VIEWED 25TH MARCH 2010

• James Saville, Mark Higgins, 1994, Australian Management: A First Lane Perspecti
ve, Revised Edition, Palgrave Macmillian Australaia.
• M. Sakthivel Murugan, 2007, Management Principles And Practices, New Age Interna
tional.
• Paul Banfield, Rebecca Kay, 2008, Introduction To Human Resource Management, Oxf
ord University Press.
• http://www.wisegeek.com/what-is-a-performance-management-cycle.htm, DATE VIEWED
25TH March 2010.
• Image: http://images.google.com.my/imglanding?q=performance%20management%20cycle
&imgurl=http://www.scotland.gov.uk/Resource/Img/53814/0008911.gif&imgrefurl=http
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DYx_O0ZAViWI=&h=279&w=522&sz=6&hl=en&um=1&itbs=1&tbnid=NHqDtEEfBYjyWM:&tbnh=70&t
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2010
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