MODERN METHODS OF PERFORMANCE AND
APPRAISAL APPRAISAL
The modern methods of performance appraisal focus more on the evaluation of work results and job achievements rather than personality traits.
The new methods of performance appraisal are as follows:
Management by Objectives: Management Guru Peter Drucker is credited for the development of management by objectives,
popularly known as MBO.
MBO involves a mutual agreement between the employee and supervisor on goals to be achieved in a given time. MBO focuses on results – on how well employees accomplish specified goals. The emphasis is on what employee does rather than on what
supervisors think of them or perceive their behaviors to be. MBO actively involves employees in their own evaluations. They are not simply graded or rated by others.
MBO consist of two phases: Goal setting and Performance review
Goal setting: In this place the employees meet their supervisors individually to determine the goals to be achieved within a specified time and discus ways of reaching those specified goals. The goals are set by mutual agreement between the supervisor and the subordinate. The goals must be realistic, specific and as objective as possible.
Performance review: In this phase the employee and the supervisor meet after the specified period of time and discuss the extent to which goals were met. The supervisor attempts to solve any problems that the subordinate faces and new goals are set. The
supervisor’s role is that of a listener and guide but never that of a critic.
Assessment Centers: The assessment center in an organization is the place where individuals are assessed in as systematic and scientific manner as possible. An
assessment center is a place specially designed equipped for a specific purpose – appraisal.
The objective of assessment center is to evaluation of individuals for future growth and development. The
evaluations are made not on the job but are based on observations of behavior and on the results obtained in psychological tests. In an assessment center a through and complete evaluation is done of the individual – his strengths, weaknesses and personality characteristics.
Techniques of assessment
Organizations use different techniques of assessment
depending upon their specific needs and requirements. Some of the common techniques of assessment are:
Role-playing: In this, the candidate acts out the role of a manager in a simulated situation, showing for an example, how he or she would conduct a job interview.
In – basket test: In this form of evaluation, the
candidate is placed in a simulated situation where he is given a ‘basketful’ of items that a manager is likely to encounter on the job such as letters, reports,
memoranda, notes and other related materials. The candidate has to respond and make decisions on these items. The candidate is evaluated on the nature of actions he takes.
A Leadership group discussion – co-operative nature:
In this, members of a group are presented with a problem. The individual members of the group are observed on their contributions towards the solution as well as for their interaction with other members of the group.
Behaviorally Anchored Rating Scales (BARS): Smith and Kendall developed the original behaviorally anchored rating scales. These scales are a combination of critical incidents and rating scales.
The development of BARS involves the following steps:
Step 1: The supervisors prepare a list of critical incident.
Step 2: The supervisors then group the critical incidents in to small clusters of performance dimensions such as job knowledge, leadership etc. Thus there are number of performance
dimensions (usually 5 to 10), each having a number of critical incidents.
Step 3: In this step a group of experts are called. The experts are presented with the critical incidents prepared in step one.
There is to reassign or classify the critical incidents in to the same performance dimensions.
The critical incidents that are reassigned by the majority of
experts in the same dimension as that by the supervisors (in step 2) are retained. While those critical incidents about which there are confusion about the dimension to which they belong to
discarded.
Step 4: The experts then rate each of the “surviving” critical incidents on a scale (of 7 to 9 points) as to how well they
represent performance on the given dimension. Those critical incidents for which there is high rater agreement are retained.
Those incidents for which there is a low rater agreement are discarded.
Step 5: The final form of BARS consists of critical incidents that survived step 3 and step 4. These incidents serve as
behavioral anchors for the performance dimension scales anchored by the critical incidents.
Human Assets accounting: This method is still in the early stages of development. It attempts to measure the
monetary value of the human resources of the organization.
In this method, valuation is done in terms of costs and contributions of employees. Costs of human resources
consist of expenditure on human resource planning,
recruitment etc. Contribution of human resources is the money value of labor productivity or added by human
resources. The difference between cost and contribution reflects the performance of employees.
Process of Appraisal Limitations of Appraisal Career Planning & Development:
Career Planning is a relatively new personnel function. Established programmes on Career Planning are still rare except in larger or more progessive organisations.
CAREER DEVELOPMENT
Career development is described as an ongoing process by which individual’s progress through a series of stages, each of which is characterized by a relatively unique set of issues, themes, and tasks.
Career development involves two processes:
Career planning: It involves helping the employee develop a realistic career plan. Assessing the skills and abilities of the employee with the assistance of an expert does this.
Career management: The focus here is on taking the necessary steps to achieve the career plan. The emphasis is on what the organization can do help in the employees development.
Aims and Objectives of Career Planning:
Career Planning aims at matching individual potential for promotion and individual aspirations with organizational needs and opportunities.
Career Planning is making sure that the organization has the right people with the right skills at the right time. In particular it indicates what training and development would be necessary for advancing in
the career altering the career path or staying in the current position.
Its focus is on future needs and opportunities and removal of stagnation, obsolescence, dissatisfaction of the employee.
In the process it opens avenues for growth to higher levels of responsibilities for each adn every employee of the organization
through hierarchy of position and training and development activities to equip the individuals with the requisites fir succession.
The principal objective of career planning are:
(1) To secure the right man at the right job and at the right time.
(2) To maintain a contended team of employees.
Role of Career Planning:
(1) It motivates employees to grow.
(2) It motivates employees to avail training and development
(3) It increases employees loyalty as they feel organization cares about them through career plan for them. So they integrate their goals with the organization goals.
(4) Encourage employee to remain in organization.
(5) Organization image as better employment market.
(6)It contributes to man power planning as well as organizational development and effective achievement of corporate goals.
(7) It helps employee in thinking of long term involvement with organisation.
(8) Career Planning provides general scenario of career opportunities in organisation.
(9) It gives an idea of direction towards growth.
(10) Builds pathways for employee.
*Career Stages / Career life cycle of an Employee Individual go through the following stages
1) EXPLORATION: Almost all candidates who start working after college education start around mid-twenties. Many a time they are not sure about future prospects but take up a job in
anticipation of rising higher up in the career graph later. From the point of view of organization, this stage is of no relevance
because it happens prior to the employment. Some candidates who come from better economic background can wait and select a career of their choice under expert guidance from parents and well-wishers.
2) ESTABLISHMENT: This career stage begins with the
candidate getting the first job getting hold of the right job is not an easy task. Candidates are likely to commit mistakes and learn from their mistakes. Slowly and gradually they become responsible towards the job. Ambitious candidates will keep looking for more lucrative and challenging jobs elsewhere. This may either result in migration to another job or he will remain with the Same job because of lack of opportunity.
3)MID-CAREER STAGE:This career stage represents fastest and gainful leap for competent employees who are commonly called
“climbers”. There is continuous improvement in performance. On the other hand, employees who are unhappy and frustrated with the job, there is marked deterioration in their performance. In other to show their utility to the organization, employees must remain productive at this stage. “climbers” must go on improving their own performance. Authority, responsibility, rewards and incentives are highest at this stage. Employees tend to settle down in their jobs and “job hopping” is not common.
4) LATE CAREER: This career stage is pleasant for the senior employees who like to survive on the past glory. There is no desire to improve performance and improve past records. Such employees enjoy playing the role of elder statesperson. They are expected to train younger employees and earn respect from
them.
5) DECLINE STAGE: This career stage represents the
completion of one‟s career usually culminating into retirement.
After decades of hard work, such employees have to retire.
Employees who were climbers and achievers will find it hard to compromise with the reality. Others may think of “life after retirement”.
(Put the graph )
Essentials to make career planning successful
*Career Counselling :
Career counselling may require advising and guiding employees in their
possible career paths and direction in which they ought to be heading . Such advising and guiding is called career counselling.
Counselling occasionally is necessary for employees due to job and personal problems that subject them to excessive stress.
Counselling is discussion od a problem that usually has emotional content with employee in order to help the employee cope with it better.
Counselling seeks to improve employee's mental health.
People feel comfortable about themselves and able to meet the demands of life when they are good in mental health.
The need for Career Counselling arises when employees have to paln their careers and develop themselves for career progression in the organization.
Their main objectives of Career Counselling are :
To help an individual to understand himself more clearly and develop his own thinking and outlook.
To help individuals achieve and enjoy greater personal satisfaction.
To help individuals understand the forces and dynamics operating in the system.
Employee Retention Techniques:
Employees are a valuable asset to any organization. It is essential to protect this vital resource as talented and motivated employees play a crucial role in overall growth and success of the organization. Focusing on employee
retention techniques can positively impact the organization as it increases employee productivity, performance, quality of work, profits, and reduces turnover and absenteeism. Effectively creating an engaging environment, recognizing good performance, giving benefits and rewards, promoting mutual respect are some of the ways for effective employee retention.
Increase Employee Engagement
Effectively implementing employee retention program by increasing
employee engagement ensures that the employees are satisfied with their work, take pride in their work, report to duty on time, feel responsible for their job, feel valued for their contributions, and have high job satisfaction.
As employees actively focus on their work, it increases the productivity levels in the organization and leads to improvement in several associated areas. Employee engagement ensures that the employees have a clear understanding of their roles and responsibilities in the organization.
Increasing employee engagement helps to develop emotional connection, enthusiasm among the employees that promotes teamwork and healthy environment at the workplace.
Motivate Employees
Motivating employees by offering them better opportunities for career development can help in employee retention. Giving rewards, recognitions, promotions, and appreciation can motivate them to increase their
productivity, commitment to work, and loyalty to the organization. They feel that their contributions are valued in the organization. Giving incentives, pay hikes, bonuses can also help to motivate employees. Recognizing their
contributions and aspirations motivates them to work productively and increases his confidence that helps in their retention.
Focus On Team Building
Promoting team culture helps to actively involve all employees in achieving the goals and in overall success of the organization. Promoting team building imbibes a sense of belongingness among them that they are a part of larger goals or objectives of the organization. Team building promotes team work and team effort that help them to tackle work pressure and thus provide a competitive advantage to organization. Focusing on team building activities can help to reduce workplace conflicts between team members as they work in a team. Organizing team building games, seminars, outdoor events help to promote team spirit, unity, and reduce stress.
Recognition of Performance
Recognition of performance of employees is an effective method of
employee retention. Although monetary compensation can act as a motivating factor, openly recognizing the performance, initiative, and good work
increases the morale and motivates the employee to work more productively.
Appreciating the performance motivates the employee and they feel valuable within the organization. This helps in employee engagement and to increase the productivity levels.
A satisfied employee knows clearly what is expected from him every day at work. Changing expectations keep people on edge and create unhealthy stress. They rob the employee of internal security and make the employee feel unsuccessful. I’m not advocating unchanging jobs just the need for a specific framework within which people clearly know what is expected from them.
The quality of the supervision an employee receives is critical to
employee retention. People leave managers and supervisors more often than they leave companies or jobs. It is not enough that the supervisor is well-liked or a nice person, starting with clear expectations of the employee, the supervisor has a critical role to play in retention. Anything the supervisor does to make an employee feel unvalued will contribute to turnover. Frequent employee complaints center on these areas.
--lack of clarity about expectations, --lack of clarity about earning potential, --lack of feedback about performance, --failure to hold scheduled meetings, and
--failure to provide a framework within which the employee perceives he can succeed.
T he ability of the employee to speak his or her mind freely within the organization is another key factor in employee retention. Does your organization solicit ideas and provide an environment in which people are comfortable providing feedback? If so, employees offer ideas, feel free to criticize and commit to continuous improvement. If not, they bite their tongues or find themselves constantly "in trouble" - until they leave.
Talent and skill utilization is another environmental factor your key employees seek in your workplace. A motivated employee wants to
contribute to work areas outside of his specific job description. How many people could contribute far more than they currently do? You just need to know their skills, talent and experience, and take the time to tap into it. As an example, in a small company, a manager pursued a new marketing plan and logo with the help of external consultants. An internal sales rep, with seven years of ad agency and logo development experience, repeatedly offered to
help. His offer was ignored and he cited this as one reason why he quit his job. In fact, the recognition that the company didn't want to take advantage
of his knowledge and capabilities helped precipitate his job search.
The perception of fairness and equitable treatment is
important in employee retention. In one company, a new sales rep was given the most potentially successful,
commission-producing accounts. Current staff viewed these decisions as taking food off their tables. You can bet a number of them are looking for their next opportunity.
Succession Planning:
Succession planning is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions.
Succession planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available.
Benefits of Succession planning:
• Prepares current employees to undertake key roles
• Develops talent and long-term growth
• Improves workforce capabilities and overall performance
• Improves employee commitment and therefore retention
• Meets the career development requirements of existing employees
• Improves support to employees throughout their employment
• Counters the increasing difficulty of recruiting employees externally
• Focuses on leadership continuity and improved knowledge sharing
• Provides more effective monitoring and tracking of employee proficiency levels and skill gaps
• Decreases the high costs of external recruiting
There are four stages to developing an effective succession plan:
• Identifying roles for succession;
• Developing a clear understanding of the capabilities and competencies required to undertake those roles;
• Identifying employees who could potentially fill and perform highly in such roles; and
• Preparing and developing employees to be ready for advancement into each identified role.
Unit IV Participation Management Levels of participative Management
• Information. The least you can do is tell people what is planned.
• Consultation. You offer a number of options and listen to the feedback you get.
• Deciding together. You encourage others to provide some additional ideas and options, and join in deciding the best way forward.
• Acting together. Not only do different interests decide together what is best, but they form a partnership to carry it out.
• Supporting independent community initiatives. You help others do what they want ñ perhaps within a framework of grants, advice and support provided by the resource holder.
• No one level is intended to be 'better' than another - it is a matter of horses for courses, and what is appropriate in any situation.
TRADE UNION MOVEMENT IN INDIA
• All of the organized activity of wage-earners to better their own conditions their own conditions either
immediately or in the more or less distant future.”
• Labour movement implies in some degree, a community of outlook, it is an organization, or rather many forms of organizations based upon the sense of common status and a common need for mutual help.
• A trade union is an essential basis of a labour movement for without cannot exist, because trade unions are the principal schools in which the workers learn the lesson of self-reliance and solidarity.
• The trade union movement on the other hand, started after 1918, when the workers formed their associations to improve their conditions. It is, thus, a part of the
‘labour movement’, which is a much wide term.
Why the Trade Union Movement?
• The main elements in the development of trade unions of
• The main elements in the development of trade unions of