CONCLUSION

What makes some businesses moresuccessful thanothers? What is todays key competitive

GRAPHIC RATING SCALE The mostly widely usedperformance evaluation technique is a graphicr atingscale. In the technique, the evaluator is presented witha graphanda sked to rate employees on e ach of the characteristics listed. The number of characteristics rated variesfrom few to s everal dozen. A factor analysis o f theresults indicates thatonly two traits were beingr ated: quality o fperformanceandability to do the present job. Theratings can be ina s eries o f boxes,or beona continuous scale (0-9) or so. In the lattercase, the evaluator places ach eck above descriptive words ranging from n one to maximum. Typically, theser atings are thena ssignedp oints. For E.g. Outstanding may bea ssigneda s coreof 4andunsatisfactory a scoreof 0. Total score are then computed. In some plans, g reaterweig hts may be assigned tomore important traits. Evaluators areoftena sked to explain eachrating witha s entenceof two. 6) Behaviorally anchored rating scales: Another technique which essentially is basedon the critical incidenta pproach is the behaviorally
anchoredratingscale (BARS). This is a new,relatively infrequently used technique.

Supervisors give descriptions o factually goodand badperformance,andpersonnel specialistsgroupth ese intocategories (5-10 istypical).As with weighted checklists, the items are evaluated by superiors (oftenother than those who submitted the items).A procedure similartothat f or weighted checklistsis used toverify the evaluations (outstanding for example) with thesmalleststandard deviation, hopefully around 1.5 on a7-point scale. These items are then used toconstruct the BARS. FORCE CHOICE MWTHOD The forced choice methodof evaluation was developed becauseother methods used at the time led to a preponderance of higher ratings, which made promotion decisions difficult. In forced choice, the evaluator must choose froma s etof descriptive statements about the employee. The two-, three-, orfour- statement items are grouped ina way that the evaluator cannot easily judge whichstatements apply to the most effective employee. Theprimary purposeof the forced choice method is to correct the tendency to give consistently high or lowratings to all the employees
MBO o f a rater

Another individual method inuse nowa day is MBO. In this system, thesupervisor and the employee to be evaluated jointly set objectivesin advance for the employee to try to
a chieve during a specifiedperiod. The method encourages, if notrequires, them to o fa

p hrase theseobjectives primarily in quantitative terms. The evaluation consists jointreviewof the degreeofachievementof theobjectives. This approach combinesth e superior and self-evaluation systems.

RANKING METHOD

Inr anking method, ther ankingofan employee ina workp lace is doneagainst thatof anotheremployee. The relative position of e ach employee isexpressed in terms of his numerical rank. Here the evaluator is asked to rate the employees from highest to lowest on some overallcriterion. It isveryeasyto rank the best and the worst employees, it is very difficult to rank theaverage employees. In this approach the evaluators pick the top and the bottom employees first, thenselect the next highest and next lowest, and move towards the middle

PAIRED COMPARISON

This approach makes ther anking method easier a nd morereliable. First the names of thepersons to be evaluateda rep lacedonseparatesheets (or cards) inp redetermined order, sothat e ach person i scompared to all othersto be evaluated. The evaluator then checks theperson he feels is the better o f the two o na criterion for each comparison. Typically the criterion is o verall ability to do thepresentj ob. The number of times a person i s preferred istallied, and thisd ev elops an index of the number of preferencescompared to the number being evaluated. Thesescores can be converted into s tandardscores by comparing thescores to the standard deviation and the average of all scores. The method c an be used by superiors, peers, subordinates, or some combination of these g roups

FORCED DESTRIBUTION

Under this system, therater is asked to appraise the employeeaccording to a predetermined or fixed distribution scale. The ratersbiasis sought to be eliminated here because workers are notp lacedata higher or lower endof thescale. Normally, the two criteria
used here for ratingare thejobperformanceandpromo a bility. Further,a fivepointperformancescale is used without mentionof descriptive statements.

W orkers are placed

between the twoextremes of merit maybe placed at

Good and Bad performances such as outstanding m aybe placed as 20%- good, 40%-

t op10 % of the scale. The rest

outstanding, 20%- fair, and 10%- poor. assumesthat alltopgrade workers should

T obe specific, the forced distribution method go

to the highest 10% grade; 20%

employees

hould go to the next highest gradeandso on

Apart fromjobperformancea s the criterion,another equally important factor in this method is

promo a bility. Employees may be classifiedaccording to their promotional material, may/may

not bepromotional material and quiteunlikely promotional material. One Strongpositivepoint in favor of the forced distribution method is that by forcing the distributionaccording to predeterminedpercentages, theproblemof makinguse of different scalesis avoided and tendstoeliminate raterbias. The limitation of this method in salary administration is that it may result inlow morale,lowproductivity and high absenteeism.

360-DEGREE

FEEDBACK system

360-degree feedback is thelatestand, for somepeople ,the most exciting development in the fieldofperformance management. It hardly existedat all at the timeof the 1991su rvey but 11%of theorganizations covered by the 1997su rvey hadsome formof 360- degree feedback,
and the impression we gained wasthat m any other organizations are c ontemplating using it.

A 360- degree feedback ,sy stem collects

p erformance information from multiplepa rties,

includingones subordinates p eers,su pervisor and customers. Corporations l ikeGE Reliance, CromptonGreaves, Wipro, Infosys, NTPC etca re all using this tool to discover home truths
about theirmanagers.

USES OF 360-DEGREE FEEDBACK Theu ses o f 360 degreea re numerous: a) Thism ed ium of feedback isth ere t o solely support learning and development as awhole b)To supporta number o f HRresources such as appra isal,resourcingandsuccessionplanning, payd ecisions

c) Along termperspective is a dopted because theu ltimate goal is p ersonal growth. d) Strengths a nd weaknesss whicharepointedoutareregardedas developmental opportunities.

360 Degree Feedback

FEEDBACK DEFINED The workplace feedback implies two things

1.Adequatep reparation: Thea ppraisal process should bea continuous one. Informal sessions could be every nowand then to put the employeeon track. Formal meetings could takep lace on afortnightly,monthly orbasisdepending on the progress shown by the employee from time to time. 2.Describe Behaviour: Ther ater s hould give detailed feedback to the employee. This involves questions sucha s
y

What happened?
y

Whereand when did itoccur?

y

Who was involved?

y

How did itaffectothers? The question must giveanswer to the questions jus t mentioned above

3. Proper timing: Feedbacks after the event has takenp lace.

s hould be well timed. Itshould be given immediately

4.Help bothpa rties: To be effective, feedbackshouldsatisfy the needs theratee. Therater may want to help, to influence, to establisha better commentof ther ater

o f ther ater as well as r elationship. A negative

l ike wise,should not influence ther atees behavior too badly. Heshould not

beafraid to ask question. To this end, he must:

OTHER ASPECTS OF PERFORMANCE MANAGEMENT: JOB EVALUATION

JOB ANALYSIS Job Evaluation is different fromperformancea pp r aisal. Performancea p p raisal refers to how well someone is doingana ssignedjob. Job Evaluationon theother hand , determines how much a job is worth to theorganizationand therefore whatrangeof pay should bea ssigned to thej ob. JOB EVALUATION:

Thep r ocess of determining how much a jobshould bep aid, balancing two goals Internal Equity: Paying differentj obs differently, basedon what thej ob entails External Competitiveness: Payingsatisfactory performers what the market is paying BENEFIT

It tries to l inkpa y with therequirements o f thej ob Itoffers systematicp r ocedure for determining therelative worthofj obs Anunbiasedj ob evaluation tends to eliminates a la ry inequities by placingj obs having similar requirements in the same salary range.

Job evaluation when conductedpr operly and with care, helps in the evaluationof the performance of the existing employees asw ell asn ew jobs. Performance Appraisal Practices in India (Few illustrations) LARSEN & TOUBRO: Engineering major Larsen & Toubro has developed a competency matrix whichlists 73 competencies-that vary across managerial levels-to measureperformanceand gauge development needs o f its employees. The company appraisesindiv idualemployees in the listed competencies, and zeroesin on the functional, managerial,and behavioral skill gaps. Subsequently, customer r einforcement is provided. DAEWOO MOTORS: Auto major Daewoo Motors Ltd has introduced a parameter o n team workon its appraisal process. Targets aresetaccording to the business plans in the beginningof theyear anda ssigned to various functional teams. Subsequently the teams p erformance is measuredon the basis o fachievement vis--vis its goals. This done, the top managementa llocates ratings to each team. In the parallel process, the team supervisor appraiseseach team member. B oth ratings are t aken into account before the final rating is assigned byth e senior management team to each functional teamand every team member. Rewards, includingperformance increments, bonuses,andpromotions are givenouton the basis o f this final rating.

SCOPE OF THE PROJECT: Thescopeof this project will be inadding value to the existing HRs ystemand to gain excellence in managing the changes by: 1) Identifying the training need for the employees. 2) Making career developmentp lan for the employees. 3) Using thepr ocess for recruitment, i.e., Performance basedrecruitment 4) Using thepr ocess for successionp lanning. BENEFITS OF THE PROJECT: Today individual employees as well as theorganization haveanongoing need to use and mapthe ircompetencies. Benefits o f this project to individual employees are: Once the individual knows his/her competencies a nd compare those to thata rea sked for thej ob, they themselves can take initiative to develop or train them to fit for thejob they area ssigned.
It

will also help them to demonstrate their self-confidence that comes from knowing ones competitive advantage.

It

will also help them to improve their performance by improving their soft (Behavioral skills

like observation, self-development, communication, etc) skills and hard skills (Technical skills like writing computer programs, managing the balance sheet, etc). The project will provide motivation to the individual employees to work hard and become better and better by learning the missing skills required.

Benefits to theo rganization: It will help theo rganization inlinkingpeople,strategy a ndperformance. To a dd value in the existing HRsy stem. It will welcome the changes r equired which is a vital culture today. Attaina clear understandingof every members jobp rofile. Putting therightpersonat therightj ob. To aligno rganizations vision, missionand business goals. Establish expectations for performance excellence,resulting in a systematica p p ro ach to
professionald ev elopment, improved job satisfaction, and betteremployee retention. To r edefine thero les a ndresponsibilities o f every individual so as to:
y

Reduce the costof manpower.

y

Costof incompetence.
y

Proper employee engagement.

y

Ensureo ptimumlevel o fperformance.

y

To ensure quality managementsy stemrequirement.

y

To fill/minimize the gaps between therequired &acquired proficiency.

Benefits to Managers are: Identify p erformance criteria to improve theaccuracy a nd easeof the hiring and selection process.

Provide moreobjectiveperformancestandards. Clarify s tandards o f excellence for easier communicationofperformance expectations to directreports. Providea clear foundation for dialogue to o ccur between the manager a nd employeeaboutperformance, development,and career-related issuses

DEFINITIONS:

COMPETENCY: Competency is a nUnderlying Characteristicofan individual that is causally related to

Criterion-referenced effective and/or superior performancein a jo b or situa t io n . U nderlying Characteristics This means that the

competency is a fairly deep & enduring part of a persons personality & can predict behavior in a wide variety of situations & jobs tasks

Casually This means that a competency causes or predicts behavior & performance

Criterion This means that competency actually predicts who does something well or poorly, as measured