PERFORMANCE MANAGEMENT SYSTEM

HRD ASSIGNMENT
By GROUP 3

ACKNOWLEDGEMENT
For any task to be successful hard work and dedication are must .If it is backed with the blessing of god along with unhindered support and guidance it will reach the ultimate without losing the track. Thanks giving seem to be the most pleasant of all the jobs but it is difficult when one tries to put into words. We express our consistent gratitude to Prof. Sajeet Lakra our guide and mentor for his lively encouragement, unfailing inspiration and valuable guidance in completing the project on PERFORMANCE MANAGEMENT SYSTEM. This work is an outcome of an unparalleled infrastructural support that we have received from Xavier Institute of Social Service, Ranchi in helping us prepare the manuscript of this report and giving us confidence to pen down our ideas. We as a group also want to thank each other for the support we have extended to each other. The project would not have been in its present form without the team work ehibited by our Prof. Sajeet Lakra and the group.

AKSHAT YADAV 57 CHARLES AIND 69 JYOTSANA SHARMA 20 NALIN SEN 59 NISHANT BARLA 45 SURABHI SINHA 06 SWATI MINZ 34

(PM II 2009 2011 XISS, Ranchi)

INTRODUCTION An organizations long term success in meeting its strategic objectives rest with its ability to manage employee performance and ensure that performance measures are consistent with the organizations needs. Performance evaluation, performance appraisal, performance measurement is becoming more of a strategic issue for organizations than in past. Performance management is a method of evaluating the behavior of employees in the work spot, normally including both quantitative and qualitative aspects of job performance. It is a strategic tool for the organization. On the other hand, the terms performance appraisal and evaluation imply a one sided judgemental approach to performance management where employees have little involvement in the process. Effective PMS require employees and supervisors to work together to set performance expectations, review results, access organizational and individual needs and plan for the future.

PERFORMANCE

MANAGEMENT

TIMELINE:

WHY PERFORMANCE MANAGEMENT SYSTEM IS NEEDED IN THE ORGANISATIONS: Performance deficiencies are addressed in a timely manner through employee development programs that meet the changing needs of the organization and its markets, Employee behaviors are being channeled in the appropriate direction towards performance of specific objectives that are consistent with the work unit and the organization's strategy Employees are provided with appropriate and specific feedback to assist with their career development

Objectives of Performance Management System

Human Resource Planning: Performance appraisal information provides a valuable input for skills inventories and human resource planning. By providing information about the human resource strengths and weaknesses of the organization, the performance appraisal system helps determine the promotability and potential of all the employees. It, therefore, constitutes an important information base for developing succession plans, replacement charts and creating new positions in the organization. Recruitment and selection: Performance appraisals can be used to validate or evaluate decisions related to employee recruitment and selection. By comparing employees performance appraisal with their test scores as job applicants, it is possible to determine the effectiveness of the recruitment and the selection system. For instance, employees who received about the same scores on the selection tests should perform similarly on the job. However, if these employees show a significant difference in their job performance after one year on the job, then the selection system is not considered successful.

Personnel decisions: Apart from validating selection procedures, performance appraisals also serve as a guide for other personnel decisions such as promotions, layoffs, etc. Performance data helps make rational personnel decisions. In the absence of this information, personnel decisions become subjective. Performance data also helps defend promotion decisions once the decision is made. Training and development: Appraisal data helps an organization determine specific training and development needs based on an assessment of the deficiencies in performance levels and skills. It helps to identify employees and departments in need of training. However, not all performance deficiencies may be overcome through training. Performance appraisal should clearly determine whether the reasons for performance deficiency are due to the lack of skills or because of low morale. Feedback, motivation and personal development: Performance appraisals help provide performance feedback to employees. They also help in the development of action plans for individual performance improvement and facilitate learning of new behavior. All employees want to know how they are performing on the job, what their manager thinks of their performance, and where they need to improve. Performance feedback is a primary developmental need and serves to motivate employees. Performance appraisals help determine employee strengths, weaknesses, potentials, and training needs. When providing feedback to employees, the manager can inform employees about their performance, discuss what aspects need improvement, and also identify what direction employees should take to improve performance. Career Planning and Development: Appraisal data also helps in identifying employee potential and in planning future growth opportunities for the employee. Information about the strengths, weaknesses and potential of employees can be used to counsel and assist them in developing and implementing realistic career plans. Compensation and Reward: A fair and objective performance appraisal system helps in making differential reward decisions, such that the most productive workers and teams are rewarded accordingly. In the absence of performance data, everyone gets the same bonus is rewarded equally, or rewards are subjectively distributed. Such a situation results in perception of inequity on the part of high performers. When rewards and compensation are linked to performance, it reinforces the belief that pay raises should be

linked to performance rather than seniority. Performance data provides a basis for rational decisions about pay and rewards. Internal employee relations: Performance appraisals can serve to maintain a positive organizational culture. Dissatisfaction over promotions or reward decisions can be managed by using performance data.

Steps of Performance Management System

The goal of a performance management system is to help boost employee performance and, ultimately, the productivity of the business.

A performance management system should provide employees with these four basic benefits: A clear understanding of job expectations Regular feedback about performance Advice and steps for improving performance Rewards for good performance

Critical Elements of an effective PMS:

Updated Job Descriptions Performance Measures and Standards Evaluator Training Guidelines for Improvement Employee Input

 Compensation and Rewards

Basic Steps in Developing an Effective PMS

Define the purpose of the job, job duties, and responsibilities. Define performance goals with measurable outcomes. Define the priority of each job responsibility and goal. Define performance standards for key components of the job. Hold interim discussions and provide feedback about employee performance, preferably daily, summarized and discussed, at least, quarterly. (Provide positive and constructive feedback.) Maintain a record of performance through critical incident reports. (Jot notes about contributions or problems throughout the quarter, in an employee file.) Provide the opportunity for broader feedback. Use a 360 degree performance feedback system that incorporates feedback from the employee's peers, customers, and people who may report to him. Develop and administer a coaching and improvement plan if the employee is not meeting expectations.

Performance Appraisal an important tool of PMS

Introduction: Most large companies have a formal procedure for reviewing the performance of employees. It typically consists of a performance review form completed by a supervisor, which then becomes the focal point of an appraisal interview between the supervisor and the employee. Most are

intended to document performance quality so that future decisions about promotion, salary, or job functions might be justified. More importantly, the goal of the performance review is used to improve/enhance the performance of those being reviewed. Meaning of Performance Appraisal: Performance appraisal is a systematic and orderly evaluation of performance at work by their superiors or others who are familiar with the techniques of performance appraisal. Performance appraisal is useful in guiding the employees for self-improvement and self-development. Performance appraisal is an important component of management information and control system. Performance appraisal is different from personal appraisal. An impartial system of performance appraisal is not against employees but is actually beneficial to them in the long run. Definitions of Performance Appraisal: According to Scott, Clothier and Spriegal, Performance appraisal is a process of evaluating an employees performance for a job in terms of its requirements. According to Dale Beach performance appraisal means the systematic evaluation of the individual with respect to his performance on the job and his or her potential for development. Purpose of Performance Appraisal: (A) Administrative Purposes: Promotion and Placement of Employees: Performance Appraisal is used to promote employees as per their competence and performance in the previous period. Performance appraisal is useful for the selection of right person for the right type of promotion. Transfers and Demotions: Performance appraisal reports can be used for taking final decisions on transfers and demotions. Various personnel decisions can be taken correctly when based on impartial performance appraisal. Wage and Salary Payment: Wage increase is based on the performance appraisal reports. Along with other factors that decides wage, performance appraisal is given due weightage. Personnel Research: Performance appraisal serves as a feedback to the management in the field of personnel research. It serves as a base for the conduct of research activities in personnel management.

(B) Self Improvement of Employees: To know the strengths and weaknesses and the areas of improvement. To evaluate and compare the performance of an employee in contrast to other employees. To discover hidden skills and talent. To assess whether the employee is on the right job or not. To know about the career opportunities that should be provided to an employee.

Process of Performance Appraisal:

Plan

ESTABLISHING PERFORMANCE STANDARDS: The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

Develop
COMMUNICATING THE STANDARDS: Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

Perform
MEASURING THE ACTUAL PERFORMANCE: The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

Assess
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE: The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance.

Review
DISCUSSING RESULTS: The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. DECISION MAKING: The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

Performance Appraisal Techniques

Individual Evaluation Methods Multiple Person Evaluation Methods Confidential Reports Essay Evaluations Critical Incidents Checklists Graphic Rating Scales Behaviorally Anchored Rating Scales Forced Choice Methods MBO Individual Evaluation Methods Under the individual evaluation methods of merit rating, employees are evaluated one at a time without comparing them with other employees in the organization. (a) Confidential report: It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of every year, by the employees immediate superior. The report highlights the strengths and weaknesses of the subordinate. The report is not data based. The impressions of the superior about the subordinate are merely recorded there. It does not offer any feedback to the appraisee. The appraisee is not very sure about why his ratings have fallen despite his best efforts, why others are rated high when compared to him, how to rectify his mistakes, if any; on what basis he is going to be evaluated next year, etc. Since the report is generally not made public and hence no feedback is available, the subjective analysis of the superior is likely to be hotly contested. In recent years, due to pressure from courts and trade unions, the details of a negative confidential report are given to the appraisee. (b) Essay evaluation: Under this method, the rater is asked to express the strong as well as weak points of the employees behavior. This technique is normally used with a combination of the graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rating. While preparing the essay on the employee, the rater considers the following factors: Ranking Paired Comparison Forced Distributions Assessment Centers Group Appraisals Human Resource Accounting Field Review Method

(i) Job knowledge and potential of the employee; (ii) Employees understanding of the companys programmes, policies, objectives, etc.; (iii) The employees relations with co-workers and superiors; (iv) The employees general planning, organizing and controlling ability; (v) The attitudes and perceptions of the employee, in general. Essay evaluation is a non-quantitative technique. This method is advantageous in at least one sense, i.e., the essay provides a good deal of information about the employee and also reveals more about the evaluator. The essay evaluation method however, suffers from the following limitations: It is highly subjective; the supervisor may write a biased essay. The employees who are sycophants will be evaluated more favorably than other employees. Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee. It is very difficult to find effective writers nowadays. The appraiser is required to find time to prepare the essay. A busy appraiser may write the essay hurriedly without properly assessing the actual performance of the worker. On the other hand, appraiser takes a long time, this becomes uneconomical from the view point of the firm, because the time of the evaluator (supervisor) is costly. (c) Critical incident technique: Under this method, the manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job. The manager maintains logs on each employee, whereby he periodically records critical incidents of the workers behavior. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers performance. An example of a good critical incident of a sales assistant is the following: July 20 The sales clerk patiently attended to the customers complaint. He is polite, prompt, and enthusiastic in solving the customers problem. On the other hand the bad critical incident may appear as under: July 20 The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store managers call thrice. He is lazy, negligent, stubborn and uninterested in work. This method provides an objective basis for conducting a thorough discussion of an employees performance. This method avoids regency bias

(most recent incidents get too much emphasis). This method suffers however from the following limitations: Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session. It results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it. Most frequently, the critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates. (d) Checklists and weighted checklists: Another simple type of individual evaluation method is the checklist. A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behavior. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the checklist method is the weighted list. Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The following are some of the sample questions in the checklist. l Is the employee really interested in the task assigned? Yes/No l Is he respected by his colleagues (co-workers) Yes/No l Does he give respect to his superiors? Yes/No l Does he follow instructions properly? Yes/No l Does he make mistakes frequently? Yes/No A rating score from the checklist helps the manager in evaluation of the performance of the employee. The checklist method has a serious limitation. The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions. Another limitation could be that this method is expensive and time consuming. Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviors. In spite of these limitations, the checklist method is most frequently used in the employees performance evaluation. (e) Graphic rating scale: Perhaps the most commonly used method of performance evaluation is the graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use. Under this method, a printed form, as shown below, is used to evaluate the performance of an employee. A variety of traits may be used in these types of rating devices, the most common being the quantity and quality of work. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. A model of a graphic rating scale is given below.

Table: Typical Graphic Rating Scale Employee Name................... Job title ................. Department ......................... Rate ............... Data .................................. Quantity of work: Unsatisfactory Volume of work under normal working conditions Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Attitude: Exhibits enthusiasm and cooperativeness on the job Dependability: Conscientious, thorough, reliable, accurate, with respect to attendance, reliefs, lunch breaks, etc. Cooperation: Willingness and ability to work with others to produce desired goals. Fair Satisfacto Good Outstandin ry g

From the graphic rating scales, excerpts can be obtained about the performance standards of employees. For instance, if the employee has serious gaps in technical-professional knowledge (knows only rudimentary phases of job); lacks the knowledge to bring about an increase in productivity; is reluctant to make decisions on his own (on even when he makes decisions they are unreliable and substandard); declines to accept responsibility; fails to plan ahead effectively; wastes and misuses resources;

etc., then it can safely be inferred that the standards of the performance of the employee are dismal and disappointing. The rating scale is the most common method of evaluation of an employees performance today. One positive point in favor of the rating scale is that it is easy to understand, easy to use and permits a statistical tabulation of scores of employees. When ratings are objective in nature they can be effectively used as evaluators. The graphic rating scale may however suffer from a long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective. Another pitfall is that each characteristic is equally important in evaluation of the employees performance and so on. (f) Behaviorally anchored rating scales: Also known as the behavioral expectations scale, this method represents the latest innovation in performance appraisal. It is a combination of the rating scale and critical incident techniques of employee performance evaluation. The critical incidents serve as anchor statements on a scale and the rating form usually contains six to eight specifically defined performance dimensions. The following chart represents an example of a sales trainees competence and a behaviorally anchored rating scale. Table: An Example of Behaviorally Anchored Rating Scale (BARS) Performanc Points Behavior e Extremely 7 Can expect trainee to make valuable good suggestions for increased sales and to have positive relationships with customers all over the country. Good 6 Can expect to initiate creative ideas for improved sales. Above 5 Can expect to keep in touch with the customers average throughout the year. Average 4 Can manage, with difficulty, to deliver the goods in time. Below 3 Can expect to unload the trucks when asked by average the supervisor. Poor 2 Can expect to inform only a part of the customers. Extremely 1 Can expect to take extended coffee breaks and poor roam around purposelessly. How to construct BARS? Developing BARS follows a general format which combines techniques employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on pooling the thinking of people who will use the scales as both evaluators and evaluees.

Step 1: Collect critical incidents: People with knowledge of the job to be probed, such as job holders and supervisors, describe specific examples of effective and ineffective behavior related to job performance. Step 2: Identify performance dimensions: The people assigned the task of developing the instrument cluster the incidents into a small set of key performance dimensions. Generally between five and ten dimensions account for most of the performance. Examples of performance dimensions include technical competence, relationships with customers, handling of paper work and meeting day-to-day deadlines. While developing varying levels of performance for each dimension (anchors), specific examples of behavior should be used, this could later be scaled in terms of good, average or below average performance. Step 3: Reclassification of incidents: Another group of participants who are knowledgeable about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II) previously. They are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes. At this stage, incidents for which there is not 75 per cent agreement are discarded as being too subjective. Step 4: Assigning scale values to the incidents: Each incident is then rated on a one-to-seven or one-to-nine scale with respect of how well it represents performance on the appropriate dimension. A rating of one represents ineffective performance; the top scale value indicates very effective performance. The second group of participants usually assigns the scale values. Means and standard deviations are then calculated for the scale values assigned to each incident. Typically incidents that have standard deviations of 1.50 or less (on a 7-point scale) are retained. Step 5: Producing the final instrument: About six or seven incidents for each performance dimension all having met both the retranslating and standard deviation criteria will be used as behavioral anchors. The final BARS instrument consists of a series of vertical scales (one for each dimension) anchored (or measured) by the final incidents. Each incident is positioned on the scale according to its mean value. Because the above process typically requires considerable employee participation, its acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also claim that such a system differentiates among behavior, performance and results and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job-specific and identifies observable and measurable behavior, it is a more reliable and valid method for performance appraisal.

Researchers, after surveying several studies on BARS, concluded that despite the intuitive appeal of BARS, findings from research have not been encouraging. It has not proved to be superior to other methods in overcoming rater errors or in achieving psychometric soundness. A specific deficiency is that the behaviors used are activity oriented rather than results oriented. This creates a potential problem for supervisors doing the evaluation, who may be forced to deal with employees who are performing the activity but not accomplishing the desired goals. Further, it is time consuming and expensive to create BARS. They also demand several appraisal forms to accommodate different types of jobs in an organization. In a college, lecturers, office clerks, library staff, technical staff and gardening staff all have different jobs; separate BARS forms would need to be developed for each. Decotis concluded that: It may be time to quit hedging about the efficacy of behavioral scaling strategies and conclude that this method has no clear-cut advantages over more traditional and easier methods of performance evaluation. (g) Forced choice method: This method was developed to eliminate bias and the preponderance of high ratings that might occur in some organizations. The primary purpose of the forced choice method is to correct the tendency of a rater to give consistently high or low ratings to all the employees. This method makes use of several sets of pair phrases, two of which may be positive and two negative and the rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker. Actually, the statement items are grounded in such a way that the rater cannot easily judge which statements applies to the most effective employee. The following box is a classic illustration of the forced choice items in organizations.

Table: Forced Choice Items 1. Least Most A Does not anticipate difficulties A B Grasps explanations easily and quickly B C Does not waste time C D Very easy to talk to D 2. Least Most A Can be a leader A B Wastes time on unproductive things B C At all times, cool and calm C D Smart worker D The favorable qualities earn a plus credit and the unfavorable ones earn the reverse. The worker gets over plus when the positive factors override the

negative ones or when one of the negative phrases is checked as being insignificantly rated. They overall objectivity is increased by using this method in evaluation of employees performance, because the rater does not know how high or low he is evaluating the individual as he has no access to the scoring key. This method, however, has a strong limitation. In the preparation of sets of phrases trained technicians are needed and as such the method becomes very expensive. Further, managers may feel frustrated rating the employees in the dark. Finally, the results of the forced choice method may not be useful for training employees because the rater himself does not know how he is evaluating the worker. In spite of these limitations, the forced choice technique is quite popular. (h) Management by Objectives (MBO): MBO represents a modern method of evaluating the performance of personnel. Thoughtful managers have become increasingly aware that the traditional performance evaluation systems are characterized by somewhat antagonistic judgments on the part of the rater. There is a growing feeling nowadays that it is better to make the superior work with subordinates in fixing goals. This would inevitably enable subordinates to exercise self-control over their performance behaviors. The concept of management by objectives is actually the outcome of the pioneering works of Drucker, McGregor and Odiorne in management science. Management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members. MBO thus represents more than an evaluation programme and process. Practicing management scientists and pedagogues view it as a philosophy of managerial practice; it is a method by which managers and subordinates plan, organize, control, communicate and debate. Features MBO emphasizes in participatively setting goals that are tangible, verifiable and measurable. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). MBO, by concentrating on key result areas translates the abstract philosophy of management into concrete phraseology. The technique can be put to general use (non-specialist technique). Further it is a dynamic system which seeks to integrate the companys need to clarify and achieve its profit and growth targets with the managers need to contribute and develop himself.

MBO is a systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals. It allows the subordinate plenty of room to make creative decisions on his own.

Multiple person Evaluation Techniques The above-discussed methods are used to evaluate employees one at a time. In this section let us discuss some techniques of evaluating one employee in comparison to another. Three such frequently used methods in organization are ranking, paired comparison and forced distribution.

Ranking method This is a relatively easy method of performance evaluation. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group. The quintessence of this method is that employees are ranked according to their levels of performance. While using this method, the evaluator is asked to rate employees from highest to lowest on some overall criterion. Though it is relatively easier to rank the best and the worst employees, it is very difficult to rank the average employees. Generally, evaluators pick the top and bottom employees first and then select the next highest and next lowest and move towards the average (middle) employees. The longstanding limitations of this method are:

The whole man is compared with another whole man in this method. In practice, it is very difficult to compare individuals possessing varied behavioral traits. This method speaks only of the position where an employee stands in his group. It does not tell anything about how much better or how much worse an employee is when compared to another employee.

When a large number of employees are working, ranking of individuals becomes a tosticating issue. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgments.

In order to overcome the above limitations a paired comparison technique has been advanced by organizational scholars.

Paired comparison method Ranking becomes more reliable and easier under the paired comparison method. Each worker is compared with all other employees in the group; for every trait the worker is compared with all other employees. For instance, when there are five employees to be compared, then As performance is compared with that of Bs and decision is arrived at as to whose is the better or worse. Next, B is also compared with all others. Since A is already compared with B, this time B is to be compared with only C, D and E. By this method when there are five employees, fifteen decisions are made (comparisons). The number of decisions to be made can be determined with the help of the formulae n (n-2). Ranking the employees by the paired comparison method may be illustrated as shown in the Table 10.7.

For several individual traits, paired comparisons are made, tabulated and then rank is assigned to each worker. Though this method seems to be logical, it is not applicable when a group is large. When the group becomes too large, the number of comparisons to be made may become frighteningly excessive. For instance, when n=100, comparisons to be made are 100 (1002) = 100 (98) = 9800.

Trait: Quantity of work Table: Employee Rated As compared to A A + B C + D E

B C D E

+ + +

+ +

Forced distribution method Under this system, the rater is asked to appraise the employee according to a predetermined distribution scale. The raters bias is sought to be eliminated here because workers are not placed at a higher or lower end of the scale. Normally, the two criteria used here for rating are the job performance and promotability. Further, a five point performance scale is used without any mention of descriptive statements. Workers are placed between the two extremes of good and bad performances. For instance, the workers of outstanding merit may be placed at the top 10% of the scale. The rest may be placed as 20% good, 40% outstanding, 20% fair and 10% fair. To be specific, the forced distribution method assumes that all top grade workers should go to the highest 10% grade; 20% employees should go to the next highest grade and so on. Job performance as the criterion apart, another equally important factor in this method is promotability. Employees may be classified according to their promotional merits. The scale for this purpose may consist of three points namely, quite likely promotional material, may/may not be promotional material and quite unlikely promotional material. One strong positive point in favor of the forced distribution method is that by forcing the distribution according to predetermined percentages, the problem of making use of different raters with different scales is avoided. Further, this method is appreciated on the ground that it tends to eliminate rater bias. The limitation of using this method in salary administration however, is that it may result in low morale, low productivity and high absenteeism. Employees who feel that they are productive, but find themselves placed in a lower grade (than expected) feel frustrated and exhibit, over a period of time, reluctance to work.

Assessment centre This method of appraising was first applied in German Army in 1930. Later business and industrial houses started using this method. This is not a technique of performance appraisal by itself. In fact it is a system or organization, where assessment of several individuals is done by various experts using various techniques. These techniques include the methods discussed before in addition to in-basket, role playing, case studies, simulation exercises, structured in sight, transactional analysis, etc. In this approach individuals from various departments are brought together to spend two or three days working on an individual or group assignment similar to the ones they would be handling when promoted. Observers rank the performance of each and every participant in order of merit. Since assessment centres are basically meant for evaluating the potential of candidates to be considered for promotion, training or development, they offer an excellent means for conducting evaluation processes in an objective way. All assesses get an equal opportunity to show their talents and capabilities and secure promotion based on merit. Since evaluators know the position requirements intimately and are trained to perform the evaluation process in an objective manner, the performance ratings may find favor with majority of the employees. A considerable amount of research evidence is available to support the contention that people chosen by this method prove better than those chosen by other methods. The centre enables individuals working in low status departments to compete with people from well-known departments and enlarge their promotion chances. Such opportunities, when created on a regular basis, will go a long way in improving the morale of promising candidates working in less important positions.

Group appraisal In this method, an employee is appraised by a group of appraisers. This group consists of the immediate supervisor of the employee, other supervisors who have close contact with the employees work, manager or head of the department and consultants. The head of the department or

manager may be the Chairman of the group and the immediate supervisor may act as the Coordinator for the group activities. This group uses any one of multiple techniques discussed earlier. The immediate supervisor enlightens other members about the job characteristics, demands, standards or performance, etc. Then the group appraises the performance of the employee, compares the actual performance with standards, finds out the deviations, discusses the reasons therefore, suggests ways for improvement of performance, prepares an action plan, studies the need for change in the job analysis and standards and recommends changes, if necessary.

This method eliminates personal bias to a large extent, as performance is evaluated by multiple rates. But it is a very time consuming process. Human resource accounting HRA is a sophisticated way to measure (in financial terms) the effectiveness of personnel management activities and the use of people in an organization. It is the process of accounting for people as an organizational resource. It tries to place a value on organizational human resources as assets and not as expenses. The HRA process shows the investment the organization makes in its people and how the value of these people changes over time. The acquisition cost of employees is compared to the replacement cost from time to time. The value of employees is increased by investments made by the company to improve the quality of its human resources such as training, development skills acquired by employees over a period of time through experience, etc. When qualified, competent people leave an organization; the value of human assets goes down. In this method, employee performance is evaluated in terms of costs and contributions of employees. Human resource costs include expenditure incurred by the company in hiring, training, compensating and developing people. The contributions of human resources are the money value of labor productivity. The cost of human resources may be taken as the standard. Employee performance can be measured in terms of employee contribution to the organization. Employee performance can be taken as positive when contribution is more than the cost and performance can be viewed as negative if cost is more than contribution. Positive performance can be measured in terms of percentage of excess of employee contribution over the cost of employee. Similarly negative performance can be calculated in terms of percentage of

deficit in employee contribution compared to the cost of employee. These percentages can be ranked to Zero Level as shown in the Table below.

Ran k 1. 2. 3. 4. 5. 6. 7.

Rating Extremely performance Good performance Slightly good performance Neither poor nor good Slightly poor performance Poor performance Extremely performance

Percentage of surplus/Deficit of contribution to cost of employee good Over 200 150 200 100 150 0 100 0 0 to ( 50) poor (50) to (100)

This technique has not developed fully and is still in the transitory stage. Field Review Method Where subjective performance measures are used, there is scope for raters biases influencing the evaluation process. To avoid this, some employees use the field review method. In this method a trained, skilled representative of the HR department goes into the field and assists line supervisors with their ratings of their respective subordinates. The HR specialist requests from the immediate supervisor specific information about the employees performance. Based on this information, the expert prepares a report which is sent to the supervisor for review, changes, approval and discussion with the employee who is being rated. The ratings are done on standardized forms.

Reasons Employees Dislike Performance Appraisals

Performance appraisal is a yearly rite of passage in organizations that triggers dread and apprehension in the most experienced, battle-hardened

manager. Employees on the receiving end of appraisals do not always look forward to them. In fact, research and practice demonstrate that employees enjoy performance appraisal about as much as a trip to the dentist, but at least the dentist gives them something for the pain! Consider the reasons why employees dislike performance appraisals. Rating Bias Employees dislike performance appraisal because managers do not always rate them on objective criteria. Experts call this problem rater bias. When managers include nonperformance factors like race, gender, hair color, etc. into an appraisal, the contaminated appraisal ratings produce fruit of perceived and genuine unfairness in the rating process and its outcomes. Employees react with reduced job satisfaction and turnover. These various forms of appraisal bias serve as a major source of EEO complaints and court cases. Rating bias occurs with the contamination of appraisal ratings by nonperformance related factors. Prime examples include person characteristic bias (race, gender and age), personal relationship contamination (liking or disliking), and failing to gather a representative sample of performance. Recent research suggests other well-known sources of bias include the negative affect of employee and rater impression management. Managers often feel resentment toward the pandering employee, affecting their ability to rate fairly. Another factor confirmed by research is the influence of mood on performance appraisal ratings. When the manager or supervisor is in a bad mood, he or she is a much more conscientious performance rater and more attuned to employee mistakes and problems. When in a good mood, the manager is more likely to overlook poor employee performance. Given that the managers frame of mind is often beyond the employees control, it adds another frustrating uncertainty to the appraisal process. Hypocrisy When managers do not follow stated policies and procedures when they dont practice what is preached in the organization the visible contradiction generates disappointment, distrust and cynicism among their subordinates. It reduces the employee motivation and organizational citizenship behaviors that contribute to vibrant, productive and healthy work environments. Jesus reserved his harshest criticism for hypocritical religious leaders, and for good reason. Followers must respect and trust the veracity of their leaders.

Employees will not go out of their way to provide the extra effort and creativity needed to solve problems and make necessary changes when they lack trust in the integrity of management. The most problematic situation occurs when raters manipulate feedback to game the performance appraisal process to support their favorite employees (in-group) and punish the least favored (out-group). As was the case with Olivia, when managers promote employee participation through self-appraisals, but then ignore that input and instead, adopt the proverbial tell and sell approach employees rightly perceive that traditional command and control values dominate. This managerial hypocrisy occurs frequently among least favored employees contributing to higher levels of appraisal unfairness. Poor Informal Feedback In general, employees like to receive feedback; they want to know how they are doing! Quality performance feedback on an ongoing basis is the lifeblood of the performance appraisal process. Research and practice demonstrate a consistent disconnect between employee and manager perspectives about the degree and nature of performance feedback. As servant leaders, communication is the building block of trust. Employee surveys consistently show that employees desire more frequent, specific and timely feedback than the typical manager provides. Olivia felt misled and betrayed when she did not receive direct feedback regarding her alleged shortcomings. In fact, research indicates a large number of employees do not believe that managers have the requisite skills to provide appropriate feedback. More so, employees can be aggravated when feedback sessions are superficial, rushed or even interrupted. Employees seek direct feedback, not the sandwich approach managers try to hide the negative feedback in between a couple of slices of general compliments.

Poor Communication During Formal Feedback Sessions With competing priorities, managers can be unprepared or insufficiently trained for the inherent challenges to providing candid informal and formal performance feedback. For example, employees are often victims of the report card syndrome. This occurs when managers save up examples of poor performance for the performance appraisal interview and surprise employees with poor ratings. This type of rater behavior diminishes employee satisfaction with the appraisal process, creating the opposite effect of eroding the appraisal systems intended benefit of motivational and productivity improvement.

Conversely, the report card syndrome is the absence of performance documentation. When this occurs, low performance ratings, unsupported by clear and specific performance evidence, frustrates the employee and creates a perception of unfairness, a prime motivation for grievances and lawsuits. Rater Errors Employees often realize when managers are not giving them accurate ratings. Many managers dont want to deal with conflict, so they often give employees undeserved high ratings (researchers call this leniency tendency). Another mistake managers make is to give employees average ratings (central tendency). Sometimes managers impose unreasonably high performance standards, which can demoralize and discourage employees. So, while consistently high ratings rob employees of the intrinsic achievement and satisfaction for a job well done, harsh ratings reduce motivation by setting impossible performance standards. The major cause of these rater errors is a lack of training. Untrained raters are more likely to commit more performance appraisal mistakes, thereby eroding employee confidence in the performance appraisal system.

Rater Appraisal Self-appraisal Mismatch Before a manager sits down with an employee to discuss the performance appraisal, there is a good chance that the employee has rated his or her own performance already. One of the most damaging rating systems to employee morale is the forced distribution or grading on a curve system. This approach

requires managers to rate a percentage of their employees as below average. Research demonstrates that employees, on average, rate their comparative job performance at the 78th percentile; that is, better than 78 percent of the other people in the office. Therefore, anaverage performance rating conflicts with the supervisors assessment, creating a serious discrepancy. When employees face a performance difference like this, most cope by discounting or dismissing the feedback and its source (i.e., the manager). Others become demoralized and withdrawn. In either case, grading on a curve lowers overall satisfaction with the performance appraisal process.

From Appraisal Aversion to Acceptance Accurate performance appraisal is foundational to ethical managerial practice. Proverbs 11:1 addresses the importance of accurate measurement The Lord abhors dishonest scales, but accurate weights are his delight. The remedy to Olivias situation requires coordinated action at both the micro (supervisor and employee) and the macro (organizational culture, values and policies) levels. The pervasive influence of erroneously administered appraisals is not worth the impact of damaging high performing employees. Rather, the goal is to cultivate a system that facilitates development and growth among your employees. Embedding this perspective within your organizations culture requires a systematic and long-term integration of values, action and an enduring commitment to fair practice. Technical skills, influence strategies and emotional intelligence, absent an authentic commitment to Christ-centered love, promote superficial adherence to employee justice principles. Employees are very perceptive in discerning the difference between a bona fide dedication to employee interests or more self-serving ideals. So, what are the elements for an effective organizational approach to cultivating servant leader performance appraisal? There are five global keys: (a) servant leader managerial selection practices; (b) performance appraisal

ethics and skills training; (c) employee friendly performance appraisal attributes (participation, coaching and fair treatment); (d) employee coaching and (e) organizational performance appraisal quality control. Servant Leader Managerial Selection Practices Effective performance appraisal begins by developing a servant leader culture by selecting managers that exhibit desirable character traits such as honesty, humility, forgiveness, transparency, commitment to excellence and accountability. From a managerial selection standpoint, this entails adopting a balanced portfolio assessment that includes performance appraisals, personality tests, assessment centers and character references, among others. Companies such as United Parcel Service (UPS), Mens Wearhouse and Southwest Airlines employ sophisticated character assessment practices in their selection process and reap the benefits with lower turnover and higher productivity. For example, UPS utilizes a set of 37 ethics-based principles to govern management decision making to reinforce the importance of integrity in all areas of company operations.

Performance Appraisal Ethics and Skills Training Elements Training managers on the ethics of just and God-honoring performance appraisal stressing the moral obligation for honesty and truth telling is an essential trust building component. The foundational element is emphasizing that accurate performance appraisal is another manifestation of agapeemployee love that balances support and accountability in order to promote the best interests of the employee and the organization. An honest assessment of capabilities makes it less likely that employees will think more or less highly of themselves (in relation to their job performance) than they should. Managers have a moral obligation to avoid withholding recognition (a form of theft, as noted in Proverbs 3:27) or corrective feedback (as referenced in Proverbs 29:21). Both recognition and corrective feedback are necessary to the employee development process. Scripture tells us that the Lord disciplines those he loves (Hebrews 12:6).

Furthermore, research clearly shows that a major contributing factor to employee incompetence is ambiguous performance feedback. When managers fail to provide honest corrective feedback, underperforming employees impose costs on coworkers through higher error rates and elevated work demands, thereby increasing resentment and job stress. When managers withhold praise, it demoralizes, discourages and frustrates employees, leading to ill will and rebellion. A realistic performance appraisal preview should emphasize that accurate appraisals may increase short-term resistance and conflict but eliminate the bitter fruit of biased appraisals. To develop appraisal skills, provide foundational and ongoing training of managers in the basics of performance appraisal including identification of rating errors (halo, central tendency, harshness, etc.). Also, develop strategies for overcoming rater errors including coaching, performance feedback skill development, documentation tools (diaries, critical incident systems), employee input initiatives and interviewing skill development. For example, the Rehabilitation Institute of Chicago instituted a two-day performance appraisal training program to remedy the serious deficiencies in their existing system. The result was a dramatic increase in user acceptance and adherence to administrative requirements. Employee Friendly Appraisal Attribute Participation Research clearly demonstrates that a transparent and verifiable performance management system in which employees understand the criteria, standards and process is imperative. Vigorous and sustained employee participation in the development and administration of the appraisal system facilitates transparency. This only enhances employee acceptance and commitment to the appraisal process while lowering their stress and apprehension. Participation is promoted by self-appraisals, joint development of performance goals and standards, and active solicitation of employee input in performance appraisal counseling and interview sessions. Self-appraisals are themselves problematic, as employees do have a tendency to inflate performance, especially if used for administrative purposes, but they are critical for enhancing appraisal system acceptance and satisfaction given that they provide a means for interjecting employee voice into the appraisal process. For example, at General Electric Corporation, what began as a successfully pioneered initiative in the late 1960s to implement the use of self-appraisals, led to the now standard practice across the private, public and nonprofit employment sectors. Employee Friendly Appraisal Attribute Coaching

Another key element is the adoption of a performance coaching model in which managers help employees develop present and future job skills and employ a joint problem solving approach to performance problems. A very powerful coaching tool is the adoption of a 360-degree appraisal system, which provides a balanced assessment of employee performance. The use of multiple sources enhances reliability and reduces the negative influence of biased raters. Performance coaching entails ample formal and informal performance feedback that is specific, behavioral, timely and from an accepted and credible source. Ongoing communication is the key to successful appraisal. Mens Wearhouse is a best-practice performance coaching company that holds managers accountable for subordinate development. There is little outside training. Instead, managers use coaching as an opportunity to communicate key company values and provide clear and specific performance feedback to increase employee self esteem and competence. Employee Friendly Appraisal Attribute Fair Treatment To avoid discouraging employees, avoid penalizing employees for factors beyond their control by taking into consideration contextual factors that impede performance. Strive to encourage motivation, innovation and creativity, by avoiding penalizing employees for good faith mistakes and stressing the necessity of learning through trial and error. AES Corporation drives fear out of the workplace by forgiving good-faith mistakes, even errors that cost the company a considerable sum of money. For example, an operative made a $150,000 contracting error, but was not fired and subsequently rewarded the company for their patience and grace by designing a company-wide safeguard to prevent repeating the error. Another important element is to enable an independent appeals process to provide an avenue for addressing biased appraisals. Or, create a formal documentation process (e.g., a performance diary or critical incident system) to provide detailed information to support ratings.

Quality Control Procedures Effective performance appraisal requires a high degree of organizational oversight. Tools such as subordinate evaluations hold managers accountable for performance appraisal system administration effectiveness and fairness. The importance of effective appraisal is reinforced by developing metrics and standards for employee development, retention and linking those metrics to managerial rewards and other administrative decisions.

In one case, the Pittsburgh Department of Public Safety supported the development of a new probationary police officer performance appraisal system with a complete quality control procedure (completed appraisal audits and psychometric analysis) to successfully overcome user opposition and skepticism. The quality control procedures convinced raters that the city was serious about improving performance management and supporting supervisors who take adverse employment actions against employees. In implementing these procedures, human resources departments should conduct ongoing audits of performance appraisal system effectiveness to:

Assess adherence to administrative procedures, documentation requirements, and employee input mechanisms and Conduct a psychometric analysis to identify patterns of bias in terms of rating errors (e.g., leniency, severity, halo, race, gender or other nonperformance factors).

Benefits of Performance Appraisal For the Appraise:

Better understanding of his role in the organizationwhat is expected and what needs to be done to meet those expectations. Clear understanding of his strengths and weaknesses to develop himself into a better performer in future. Increased motivation, job satisfaction, and self-esteem. Opportunity to discuss work problems and how they can be overcome. Opportunity to discuss aspirations and any guidance, support or training needed to fulfill those aspirations. Improved working relationships with supervisors

For the Management:

Identification of performers and non-performers and their development towards better performance. Opportunity to prepare employees for assuming higher responsibilities. Opportunity to improve communication between the employees and management. Identification of training and development needs. Generation of ideas for improvements. Better identification of potential and formulation of career plans. Improved performance throughout the organization. Creation of a culture of continuous improvement and success. Conveying the message that people are valued

Feedback Communication Channels in an Organization

According to a popular saying: "A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH THE BRICKS OTHERS HAVE THROWN AT HIM.

Therefore, On the part of the person receiving the feedback, the following points are important to be taken care of:
The employee should have a positive attitude towards the feedback process He should listen to the suggestions of the appraiser calmly and try to incorporate them in his plans. He should not hesitate to ask for the help of his superiors. Should have a co-operative attitude during the feedback meeting. Dont judge the appraiser as a person. Should take the feedback objectively. Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the following points are to be taken care of: The appraiser should make the receiver feel comfortable during the feedback meeting.

 The appraiser should make it a two way conversation i.e. let the employee speak.

Listen to the employee and note his points, suggestions, problems etc.

The appraiser should not adopt a confrontational approach towards the meeting. The goal is not to criticize the employee.

Provide a constructive feedback to the employee i.e. in a way which

will motivate him to perform better.

Have a positive attitude towards the process

Try to understand the reasons of his failure.

Be fair and objective

Prepare yourself for what to say and how to say.

Make the appraisal feedback meeting useful and productive for the organization and the employee.

Types of Information channels

Information Channels Face to Face Conversation Videoconferencing Telephone Conversations Emails Handheld Devices Blogs Written Letters and Memos Formal written Documents Spreadsheets

Information Richness High High High Medium Medium Medium Medium Low Low

Ten common feedback mistakes

1. Speaking out only when things are wrong. "Praise to a human being represents what sunlight, water and soil are to a plant - the climate in which one grows best." - Earl Nightingale 2. "Drive-by" praise without specifics or an honest underpinning. - "Great job!" 3. Waiting until performance or behavior is substantially below expectations before acting on it. 4. Giving positive or negative feedback long after the event has occurred. 5. Not taking responsibility for your thoughts, feelings and reactions. "This comes straight from the boss." 6. Giving feedback through e-mail messages, notes, or over the telephone. 7. Giving negative feedback in public. 8. Criticizing performance without giving suggestions for improvement. 9. No follow up afterwards. 10. Not having regularly scheduled performance review meetings.

Four tips on how to do right

1. Be proactive: Nip issues in the bud and avoid the messy interpersonal

tangles that result from neglected communication. Meeting with employees on a monthly or quarterly basis instead of annually.
2. Be specific: Its never easy to provide negative feedback regarding

someones work, but as a leader you cant avoid it. Be as clear as possible when providing feedback (both positive and negative).
3. Develop a progress plan: Be clear about the specific changes in

behavior that you expect in a specific period of time, and follow up as scheduled.
4. Link employees performance to organizational goals: Reinforce the

value of your employees contributions by giving specific examples of

how their work and positive behaviors serve the organization and its customers.

Counseling
Counseling is a relationship between two persons, a manager who is offering help (counselor) and an employee whom such help is given (counselee). It is the process in which counselor helps to understand the causes of the problems of the client and resolve them. It may be formal or informal, formal counseling is a planned and systematic way of offering help to subordinate by expert counselors. Informal counseling is concerned with day today relationship between manager and his subordinates where help is readily offered without any formal plan. We typically use counseling when a performance problem arises such as fighting, stealing, unexcused absence etc. in addition to traditional HR activities like training and motivational program, organization are also making major investment in providing employee counseling services, as a way to promote employees well being.

Employee counseling as an HRD activity

Employee counseling is an HRD activity and serves the same goal as any other HRD activity. It ensures that each employee is a positive contributor to the organizations effectiveness, and that he or she will continue to contribute in the future. Employee assistance and health promotion program often use the same technique as other HRD interventions. These techniques include workshops, role playing, behavior modeling, discussions, lectures, coaching, and audiovisual presentations. In addition, the process of delivering counseling service is the same as that of other HRD interventions, and includes need assessment, planning/design, implementation, and evaluation.

Performance counseling
Performance counseling involves helping an employee understand his own performance find where he stands in relation to others and identify ways to

improve his skills and performance. It focuses on the analysis of job performance and identification of training needs for further improvement.

Objectives
Counseling helps a person overcome emotional problems and weaknesses relating to performance. It aims at developing the counselee fully. It involves the following Help him realize his full potential. Help him understand his strength and weaknesses. Gain insight into his behavior and analyze the dynamics of such behavior. Help him understand the work environment better. Provide an empathic climate where he can discuss his tensions, conflicts, concerns and problems. Increase his personal and inter-personal effectiveness through feedback and his behavior. Prepare action plans for improving his behavior and performance.

Benefits
Performance counseling takes a positive approach. People can grow and improve their competence and performance. Generally it offers the following benefits Employee learns to respond and adjust more positively to people and situations. He is able to clear the mind of emotional irritants, overcome his personal weakness and work effectively. He feels more relaxed when he is able to share his concerns and problems.

An overview of employee counseling program

Organizations use a wide variety of activities and programs to help ensure the emotional and physical health of their employees. These activities range from health risk appraisals to on-site counseling and stress reduction

workshops, as well as other way to promote employee health. They may take from one session discussion, a series of sessions, or an ongoing organizational activity.

Components of typical program

While employee counseling programs vary in terms of problems addressed and specific techniques used, six activities are typical of such programs 1. Problem identification- problem identification usually involves the use of screening device (e.g. questionnaire or diagnostic test) and/or training of employees and supervision in the identification of problems. 2. Education- education typically includes providing information about the nature, prevalence, likely causes and consequences of the problem, and ways the problem can be prevented. 3. Counseling- at a minimum, counseling involves a person with whom employees can discuss difficulties and/or seek further help. The type of counseling can vary from a frank discussion with a superior about work related performance problems to meeting with a mental health professional skilled in diagnosing and treating problems such as depression. 4. Referral- referral involves directing the employee to the appropriate resources for assistance 5. Treatment/intervention- treatment includes the actual intervention to solve the problem. 6. Follow-up- as with any other HRD activity, some form of monitoring is needed to ensure that the employee is carrying out the treatment and to obtain information on employee progress.

Characteristics of effective employee counseling program

Communicating the programs services to managers, supervisors, and employees, and following up with them is critical in getting organizational members to use it. It is also important that managers and supervisors receive training in identifying problems and in how to counsel or refer employees to seek treatment when needed. In many counseling programs especially those dealing with addiction and mental health, the supervisors role in helping the employee seek treatment and supporting the treatment

effort is critical to success. Other necessary ingredients for effective counseling programs include:1. Top management commitment and support 2. A clearly written set of policies and procedures outlining the programs purpose and its function within the organization. 3. Cooperation with local unions, if they are present in the organization. 4. A clear and well-enforced policy concerning employee confidentially. 5. Maintain a record of program evaluation.

BIBLIOGRAPHY Websites:
www.citehr.com Http://managementhelp.org/trng_dev/evaluate/evaluate.htm Http://www.ifets.info/journals/5_2/eseryel.html www.exlorehr.com www.wikipedia.com

www.performancemanagement.naukrihub.com

Books:
Armstrong, Michael, Performance Management, Kogan Page Publication.