Assignment Set- 1

Q.1 Discuss the aims of performance management? Ans:One of the important objectives of performance management is identifying the strengths and weaknesses of employees and finding ways to overcome their shortcomings. This is done by evaluating employee output and the companys overall ability to meet the goals by having quarterly or annual audits. Often, after an evaluation, there will be widespread company meetings where managers and employees discuss concerns and solutions to problems. Another objective is to discover where employees and the company are falling short. This is done by going through details such as profits earned, new clients acquired and the contribution of employees to make these things happen. Employees whose contribution are minimal or not up to the mark are counselled on how to improve performance. The evaluation of an employees performance is based on their work output and the amount of time spent by them on the project. Although time spent in an office is not an accurate way of measuring performance, most companies still have the notion that better employees put in longer hours of work. A better way of measuring employee productivity would be to measure the output of work and the accuracy of work completed. Overall evaluation of a company and its ability to set and reach goals is another important objective of performance management. Increasing revenue is the overall goal of any company. Other goals may be to acquire more or specific clients, develop new products or hire new talent. It is very easy to determine which of these goals have been met, because these are things that can be seen or calculated. The inability of a company to meet the goals is mainly due to poor leadership, poor planning, poor implementation or poor employee performance. Economic factors also play a major role, but it is better for companies to concentrate on factors that are within their control. The best way of improving a companys overall output is motivating the employees and improving their performance. To identify and remedy situations that hinder company performance is another important objective of performance management. This includes replacing underperforming employees, gaining new clients, developing new strategies for reaching the goals and discussing strategies that have worked in the past. In order to meet the objectives of performance management and improve the overall performance of a company, every employee must work with the team members to develop new techniques and implement changes. The aims of performance management can be summarised into the following points. The aims of performance management are: To assist in the achievement of enhanced standards of work performance of an employee or class of employees. MU0016 Performance Management and Appraisal Page 1

 To assist employees to identify the knowledge and skills to perform their jobs efficiently. To ensure that the employees work towards the defined goals. To ensure that the employees receive regular feedback on performance. To assist the employees to achieve personal growth through acquiring relevant knowledge and skills and attitudes. To evaluate the company and its ability to set and reach goals. To identify and remedy situations that are hindering company performance. .

Q.2 Describe the process of defining expectation? Ans:Performance management is basically about managing expectations. Expectations are defined and agreed in the form of role profiles. The role profiles define what is required in each major aspect of the role. Expectations are also defined as short or medium term targets, the extension of knowledge and skills, upholding the core values of the organisation and meeting behavioural requirements. All these can be loosely referred to as objectives, which are more than simply output targets, as is often assumed. The Process of defining expectations Expectations should be defined based on a role profile which sets out the overall purpose of the role and the key result areas it contains. Role profiles include an organisations competency framework that defines the knowledge and skills required to achieve the role objectives and any particular behavioural requirements. Role profiles define the overall purpose of the role, its reporting relationships and key result areas. They may also include a list of the competencies required. The competencies may be technical competencies and any specific behavioural competencies attached to the role. The behavioural competencies are selected from the organisations competency framework and modified as required to fit the demands made on role holders. The process starts at the performance planning stage. An existing role profile is reviewed and changes are made if necessary, or a new role profile is created. In each of the key result areas, the ongoing role expectations and any specific targets or tasks, behavioural changes or improvement or training requirements related to those areas are discussed and agreed upon. For example, if the objective of an organisation is to improve customer satisfaction by responding to customer queries and complaints promptly, efficiently and politely, and the quantifiable targets are to respond to 90 per cent of queries in one working day, then these expectations would call for a discussion on how the individual could contribute to upholding a core value for customer service. The results of this discussion could be: MU0016 Performance Management and Appraisal Page 2

 Agreement on any changes in behaviour required and how they can be achieved. Identification of further training. Agreement on how performance improvement in this area could be measured and assessed. Measuring and assessing performance improvement is a difficult part of the process and it is necessary to agree either quantifiable performance measures or any other type of evidence that can be made available to appreciate a job well done. Table 2.1 shows the role profile. Table 2.1: Role Profile POSITION TITLE CHIEF FINANCIAL OFFICER To lead and direct the financial services of ABC. This includes the provision of MAIN PURPOSE OFsupport services to all departments consisting of financial and management ROLE accounting, accounts payable, budgeting, data processing and risk management. Lead, direct and manage the financial accounting function for ABC. Budgeting and cost control. Lead, direct and manage the management accounting function for ABC. KEY PERFORMANCE AREAS Annual financial reporting. Relevant parties In-depth knowledge of finance as a discipline. In-depth knowledge of accounting within a government entity. In-depth knowledge of financial procedures and processes. In-depth knowledge of procurement as a discipline. TECHNICAL KNOWLEDGE/ COMPETENCIES BEHAVIOURAL COMPETENCIES Business plan interpretation. Corporate governance policies and procedures. Leadership. Attention to detail. Maximising performance / drive for results. Highly analytical.

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 Highly numerate. Trustworthy. Planning and organising. .

Q.3 List the characteristics of performance appraisal? Ans:Some companies recognise the need to render employee feedback regarding performance. One of the methods of providing performance feedback is through a performance appraisal. Organisations that conduct performance appraisals may have written policies in place that refer to time lines, types of performance ratings and clearly defined processes. Some organisations may also require self-appraisals by employees or, even, engage outside consultants to conduct the appraisals. The major characteristics of performance appraisal are: Appraisals match the job descriptions: Performance appraisals must match the job descriptions and standards set for performance objectives. For example, an employee who does data processing should be assessed based on the number of errors and timeliness of work as these are standards set for that particular job. It may be unfair to measure a data processing employee on phone skills if that is not part of the job description. Appraisals are legally compliant: Appraisals must be able to stand legal tests of reliability (questions must yield the same results for all employees if repeated more than once) and validity (does the appraisal measure what it is designed to measure). For this reason, some companies have their appraisals developed by third-party consultants who are specialists in this area. Appraisers must be trained: The supervisor or manager conducting the appraisal must be trained in the use of the evaluation tool and conducting the appraisal. For example, dispute may arise if the employee disagrees with the outcome, and knowing how to deal with conflict is an important tool. Explaining the ratings of the appraisal and discussing future plans for improvement with the employee require good communication skills. Appraisal systems require follow-up: It is important to the organisation and the employee to provide consistent monitoring and follow-up after the formal appraisal is given. For example, if the employee scored high with little need for improvement, do not take that performance for granted. Instead, continue to train the employee and provide mentoring

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for continuous improvement. The employees who require improvements will need clearly defined plans with regular follow-up and feedback. Performance appraisal is a data generation system for strategy conceptualisation and implementation. It provides: o Detailed list of types and number of technical and managerial employees. o Age distribution of the workforce. o Skills profile of the workforce by aggregating individual performance appraisals. o Behavioural criteria advise managers on what they have to do to successfully execute strategic plans. Performance appraisal acts as an integrating device for the human resource system. It helps in: o Appraisal as the centrepiece of the HR cycle. o Identification of appropriate characteristics and behaviours. o Recognition of developmental opportunities and weaknesses. o Rationale for distributing rewards.

Q.4 Explain the methodology in 360 degree apprised? Ans:The 360 degree appraisal works on four essential components: Self appraisal. Superior appraisal. Subordinate appraisal. Peer appraisal. Now let us explain the four components: Self appraisal: Self appraisal gives a chance to the employee to compare his/her abilities, limitations, success with others and judge ones own performance. Self evaluation is an essential part of 360 degree appraisals and therefore contribution of employees to 360 degree performance systems is large and also has a powerful effect on attitude and performance. It provides a "360-degree evaluation" of the employees performance and is measured to be one of the most realistic performance appraisal methods.

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 Superior appraisal: Superiors appraisal outlines the traditional thought of performance appraisal, where the employees tasks and actual presentation is rated by the superior. This form of assessment involves the evaluation of individuals by supervisors on pre-determined parameters in an employees performance record, as well as the evaluation of team and work scenario by senior managers. The superiors (supervisors and senior managers) have the authority to change and modify an employees or a teams work on the basis of the assessment of the individual and the team. Subordinate appraisal: Subordinates feedback involves the evaluation of an individual on parameters like communication and convincing abilities, superiors ability to assign the work, team leading qualities and so on. Subordinate appraisal is most advantageous when developmental needs are considered. It can also be used in the evaluation of record sheets, but measures should be taken to make sure that subordinates are appraising parameters of which they have knowledge. The subordinates feedback is effective, mainly in evaluating the supervisors interpersonal skills. However, it may not be as proper or convincing for measuring task-oriented skills. Peer appraisal: Peers usually have an exclusive point of view on a colleagues job performance and individuals are generally very friendly to the idea of rating each other. Peer ratings are considered when the individuals capability is known or the result of the performance can be computed. There are both considerable assistance and serious consequences that must be cautiously considered before including this type of feedback in an all-round appraisal program. Taken as an effective developmental tool and conducted periodically, a 360 degree application can prove to be highly useful in keeping the track of alterations in others perceptions about the employees. A 360 degree appraisal is generally more appropriate at the managerial level, as it helps in evaluating their leadership and supervision styles. This method is being successfully used around the globe for improving performance. Some of the companies that have been successfully following 360 degree appraisals are TCS, Microsoft and Wipro Technologies.

Q.5 Explain the performance appraisal feedback model? Ans:Performance Appraisal Feedback Models help us to achieve what is known as a meaningful performance feedback. Meaningful performance feedback, as we know, is best achieved through proper communication between the feedback giver and the feedback receiver. Irrespective of who provides the feedback to the receiver, there are certain perceptual barriers that these communications have to travel through. These barriers act as filters and thus affect the actual message that is heard. In Figure 5.1, different variables of performance feedback have been incorporated into a feedback model. We see that the variable for both the giver and the receiver of feedback is determined by the perceptions of the participants. Figure 5.1 illustrates the feedback model.

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Figure 5.1: Feedback Model Figure 5.1 lists only a few of the endless list of possible variables that these perceptions can create. Reading further will help us to get a clear understanding of how perceptions of different participants affect the feedback. The Said/Heard Meant/Felt Feedback Matrix The Said/Heard Meant/Felt Matrix in Figure 5.2 should help give more clarity to the concepts introduced in Figure 5.1.

Figure 5.2: Said/Heard Meant/Felt Feedback Matrix The Said/Heard Meant/Felt Matrix can be used in any way or direction. This implies that the matrix can be applied vertically, horizontally, counter clockwise, and clockwise. It can be used either by the giver or the receiver of performance feedback or both. The aim of the matrix can be achieved only when all the participants in the performance feedback process use it. To illustrate how the matrix can be put to work, let us begin by using the matrix in a clockwise direction starting at the 9:00 oclock position. From this point we begin with what is Said. Let us label the four quadrants A, B, C, and D as shown in Figure 5.3.

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Figure 5.3: Said/Heard Meant/Felt Quadrants Now, let us look at how the matrix can used during a typical performance review. Let us begin with Figure 5.4 looking into what is Said.

Figure 5.4: Quadrant A In Quadrant A, the feedback giver has said, You could have contributed much more to the project. This is where the challenge arises, wherein the statement must now pass through the perception barrier that has been represented as the vertical axis of the matrix. Let us now look into what has been heard by the receiver. It is illustrated in Quadrant B in Figure 5.5.

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Figure 5.5: Quadrant B After passing through the receivers perceptual barrier, you can see in Quadrant B that what was heard was I have not done my part well. Now, we must understand that this may or may not have been what the feedback giver would have actually meant. In Figure 5.6, Quadrant C, the giver now clarifies to the receiver the intended meaning of his message shown in the Quadrant A statement.

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Figure 5.6: Quadrant C In Quadrant C, it is observed that the feedback givers meaning was very different when compared to what was perceived by the receiver. Now the receivers feeling towards this feedback has been illustrated in Quadrant D in Figure 5.7.

Figure 5.7: Quadrant D Utilising the matrix We observe that there is a dramatic contrast between what the receiver perceived the performance feedback message to be in Quadrant B versus what the message actually meant in Quadrant D. The issue with many performance review sessions is that the communications end at Quadrant B. These misinterpretations can be very counterproductive and will not support the goals and objectives of providing feedback. Hence, by using the matrix, the giver of the feedback can understand how the feedback has been perceived by the receiver and then try to clear the misunderstandings. The matrix can also be used by the receiver to get clarification on points that were not made clear during the performance review.

Q.6 How is data used for human resource decision? Ans:You must be wondering how to use the data to make the human resource decision. Well, the main aim of any human resource system must be to encourage the better use of the available data about the employees, the labour market conditions and the business scenario to drive effective decision-making. This helps in MU0016 Performance Management and Appraisal Page 10

resolving the daily challenges faced by the HR department and positively impacts the human resource practices and policies followed by the organisation. The traditional ways in which data is used for successful and effective decision-making depends on the lively involvement of a huge range of stakeholders working together. It is also essential to understand the context in which the data is used to take decisions. In spite of providing an enclosed training program for using data to make a decision, it is better to connect all stakeholders in understanding how they use data both individually and collectively as an organisation. In addition, it is also important to note the factors that are important in the context of using data effectively. Working alongside stakeholders improves the process and allows the learning to develop as much as possible. Some of the examples to improve the use of data for decision making include: Planning how data is used to support a decision. Providing chances for decision makers to experience significant decision making moments, so they can enhance their skills using the actual data in real-life situations. Advancing communication among users of data. Leveraging and identifying opportunities for enhanced data sharing across different levels of the organisation and with other stakeholders. It is equally important to know about the two-way process of making informed human resource policy and management choices based on a suitable study of relevant data and information. This process is called as Data-driven decision-making (DDDM). There are ten fundamental and practical pillars, which assist human resource managers, practitioners and policy analysts in structuring a bridge between human resource data and reports to effective human resource policy and management decisions. The ten fundamental and practical pillars are: 1. Making use of the data One of the foremost misapprehensions about the effective use of human resource data in decision-making might be summed up as Build or gather data and they will use it. This experience shows that it is not enough to make data available. For example, health sector leaders need a process in place for analysing reports and information, getting the data to the right decision-maker at the right time, and ensuring the power and resources to act on the data. However, if this process is faulty or insufficiently shared, datadriven decision-making can produce unacquainted decisions or swing the focus away from priority issues. 2. Developing a culture of enquiry Effective data utilisation requires a mindset as well as an organisational philosophy that actively invests in a culture of inquiry that helps people question the status. In the field of human resource, this practice of inquiry should be characterised by work groups, teams, and individuals at different levels of the organisation. All of them must regularly probe and scan the atmosphere in a way that will help them MU0016 Performance Management and Appraisal Page 11

determine and provide answers to a set of human resource policy and management questions. For example, the subsequent questions can be asked to converse and plan the use of information to support various decisions: What human resource data is required to gather? How do we actually use data; what decisions do they inform? What is the mechanism for facilitating the use of these data (the answer could be senior management meetings, annual sector review meetings, department meetings, and so on)? How frequently does this process take place? What issues, if any, manipulate the quality and security of data use? 3. Context matters The context is the entire setting or environment in which human resource data are being gathered, analysed and used to make policy and management decisions. It is vital for human resource managers and planners to comprehend the various determinants and dimensions of the context, within which, the data are used to take decisions, since, it is essential for effective policy-making and practice. Some vital elements of the context include: Social, political and other forces at work in the human resource policy environment throughout the country. Historical and cultural factors. Health system factors. Resource contexts. 4. Aligning different forces, interests and beliefs The theory of Policy analysis suggests that data affects existing beliefs of vital people about major features of the problem under study and how it might be solved or mitigated (Eugene Bardach, 2000). Nevertheless, human resource planners and policy-makers are faced with a distinctive challenge. They may have access to diverse types of human resource information from numerous sources, in a variety of forms and perhaps at different times and frequencies. But, the decisions that need to be made using these data may involve different people across multiple agencies who do not work together all the time. These relationships and connections will need to be recognised and aligned by human resource managers and planners for the decision-making process to be productive. Otherwise, there is a possibility of conflict, or failure to use the data. Additionally, it is not enough if only a few people in an organisation examine data and information as part of their daily functions, as this may not lead to ground decisions. For example, one approach that is being considered in Uganda is following of a simple framework for analysing and presenting human resource data and making the data available for discussion during annual joint review meetings. Such a streamlined and collaborative approach of sharing data is important when compared to the sensitive nature of the MU0016 Performance Management and Appraisal Page 12

human resource. In addition, the ways in which such data are used in effective decision-making are mainly determined by a broad range of contributors. Similarly, whether or not data will generate any decisions will also depend on the values, beliefs, skills, and past experiences of these contributors. Other important factors include economic costs and timing of those decisions. 5. Preparing for data sceptics Many data users decide the helpfulness of a data by asking some questions like: o What is latest here? How is this distinct from what we already have or know?: As data collectors, we may be providing information which people may have known for years but never worked upon. Part of the solution could be combining these messages with ways of clearing out the mindset that produces such skepticism or complacency in the first place. o What do these evidences or reports mean? The complexity of the evidence and reports may draw out the reaction that more work is required just to understand the evidence. This can lead to a lack of interest or disinclination to engage. o What are the professed benefits of change? Many individuals time and again tend to avoid change. However, they are also influenced by the obvious benefits of change. As a result, if human resource managers and planners are able to categorise a decisive bunch of active seekers of new ideas, then there are higher chances of success. These active seekers must be favourable to change and even willing to take risks. 6. The power of the Individual Many individuals are key members in taking decisions about how data should or should not be used, since it is the individuals who choose whether to reject or accept new data findings. Even when presented with convincing data, people tend to reject or accept new ideas based upon individual inclination. For example, data from the literature suggests that individual decisions are influenced by a push of personal capacities and qualities that any decision-making process must take into consideration. At the individual level, these factors include: o Convolution of what is being presented. o Beliefs and values as well as current position on certain issues. o Risk awareness, or the level to which an individual avoids change. o Status or position of the individual within the organisation. o Knowledge and skill sets. o Organisational support for change. o Partnership links. 7. The power of organisation MU0016 Performance Management and Appraisal Page 13

There are several organisational factors that influence the decision-making process. These are: o Organisational culture, values, function, composition, structure, and socioeconomic context. o The nature of staff (gender, age, racial composition), level of training, and degree of skills. o The level to which new thoughts or ideas are welcomed or accepted by management figures, and the kind of support obtainable for improvement of action. o The influence of interest group activity or public opinion on the organisations with human resource related decision-making functions. o The level to which data can generate awareness of authenticity, an atmosphere of trust and mutual partnerships among different members within the same organisation and among the various organisations that need to work together. 8. Navigating difficult conversations Constantly, data will create situations that involve complicated discussions within a team or organisation that can cause chaos or volatility. This generally happens when a new data challenges a particular policy issue or status quo that has been in place for a long time. If the resulting communications are not handled with sensitivity and diplomacy, the situation can easily slip into a sinister team disagreement. Generally speaking, many people are uncomfortable with conflict, and they fear the rise of negative emotions in difficult conversations. Doubts of difficult discussions can frequently lead to avoiding or rescheduling important discussions because people are worried about argument and damage to workplace relationships. Part of the strategy for strengthening data-driven decision-making includes an interactive session that uses an experienced facilitator and a communication-based model and understanding and responding to difficult conversations. One method is to use a humorous, all-inclusive, no threatening communication style and provide plenty of relatable examples to guide groups of decision-makers through potentially difficult conversations that data may generate. This ultimately helps in reaching a mutually beneficial common ground. In most cases, the facilitator does not intend to correct or entail order on the group conversation, instead might point out the presence of polarising standpoint and also support some ways to suspend assumptions and steer the conversation toward common ground. A second key factor is to present possible conflict producing data using clear and lenient language, always leaving open the possibility that users might see and hear the data and still make a decision to de-emphasise or even ignore the information. 9. Process and relationships It is observed that people build strategies, plans and data successfully by converting them into policies, practices and results. As such, the nature of bonding between the possible data users within an organisation is one of the most critical dynamics determining success or failure. However, this dynamic is often underrated or even overlooked in the process of data-driven decision-making. This is regrettable because when implemented correctly, the process can: o Fetch core issues to the forefront. o Allow participants to conquer individual, professional and organisational barriers.

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o Construct a greater sense of joint ownership. o Enhance communication and understanding. o Construct a unified leadership team focused on moving the business of human resource planning and management in the right direction. 10. A Journey, not a destination Many theorists supporting data-driven decision-making argue that evidence-based decision-making is not a onetime answer or a standard tool to be applied at random. Rather, it is an in-progress knowledge-driven process that needs continuous compilation, analysis and sharing of data since it is the only way in which both positive and negative trends can be discovered and acted upon. Data-driven decision-making is also a collaborative, dynamic process. It is a core function that must be implanted into the culture of organisation. It provides decision-makers with the collective ability to: o Tackle the most important human resource questions of the day. o Weigh the available evidence. o Consider several options. o Think both tactically and practically about the decisions that they make. Human resource managers and planners need to lead this journey and act as agents of change. Without their interference, it will be difficult for human resource data to become an essential part of an organisations operations. They can sculpt data use and support it by sharing the successes and benefits. They can also schedule time for senior management and multi sector teams to review, query, meet, and discuss on reports required to notify decisions.

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