Que.1 List the various components of a performance management system. Ans.

Following are the components of performance management system: Performance Planning: This is the process of identifying employee objectives & setting job expectations & goals for each position in the company. Each department in the company usually has different expectations for its employees based on the requirements of the positions in the greatest opportunity for advancing in the company. During this process managers also discuss the review & feedback process of the performance management system. Ongoing performance communication: A company is benefited by the performance management system only when there is a timely employee review & feedback system implemented in the program. Timely employee reviews & feedback sessions are dependent on the companys business operations & human resource guidelines. These review sessions & what areas need to be corrected or improved. Most companies have an annual review process, although six-month reviews are often used. Performance Appraisal Meetings: The supervisor & the employee meet to discuss the employees performance during the appraisal period & to discuss potential goals for the upcoming appraisal period. Performance Rewards: This is an important part of the performance management system. The thought of earning rewards for their actions, whether financial rewards or another form of benefit motivates employees. Usually an employees performance review is linked with the financial bonus or pay raise, which ensures that the company gets the best performance out of each employee. Other non-financial rewards such as extra time off, special company-paid vacations, gift certificates, gifts for years of service or recognition banquets may also be offered. Performance diagnosis & coaching: Employees who do not meet the criteria standards to be eligible for performance rewards may need additional training or coaching by their superiors to improve their job skills. Performance reviews is the starting point for the additional training; subsequent performance reviews may be scheduled to check if the employee has improved from the time of the initial review. Performance management systems are ineffective if they only reward employees for good performance. The system also needs to include training or coaching processes to ensure that all company employees are able to improve their performance.

Que 2. State the four essential components of 360 degree appraisal. Ans. The 360 degree appraisal works on four essential components:

Self appraisal Superior appraisal Subordinate appraisal Peer appraisal Following are explained below: Self Appraisal: Self appraisal gives a chance to the employee to compare his/her abilities, limitations, success with others & judge ones own performance. Self evaluation is an essential part of 360 degree appraisals & therefore contribution of employees to 360 degree performance systems is large & also has a powerful effect on attitude & performance. It provides a 360-degree evaluation of the employees performance & is measured to be one of the most realistic performance appraisal methods. Superior appraisal: Superior appraisal outlines the traditional thought of performance appraisal, where the employees tasks & actual presentation is rated by the superior. This form assessment involves the evaluation of individuals by supervisors on predetermined parameters in an employees performance record, as well as the evaluation of team & work scenario by senior managers. Subordinate appraisal: Subordinates feedback involves the evaluation of an individual on parameters like communication & convincing abilities, superiors ability to assign the work, team leading qualities & so on. Subordinates 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. Peer appraisal: Peers usually have an exclusive point of view on a colleagues job performance & 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 & serious consequences that must be cautiously considered before including this type of feedback in all-round appraisal program. Que 3. What are the guidelines an HR manager must keep in mind while taking steps to build team performance?

Ans. To build up team performance, the guidelines an HR manager must keep in mind are: Establishing purpose & sense of direction: All team members must believe that there is a worthwhile purpose for the existence of the team. The performance expectations of each member have to be made clear. The team members must realize that they are a part of a critical accomplishment, & hence the task they are performing is important. The direction to be adopted for achievement should be clear. Team members should be selected based on their skills: A good team is the one which has team members possessing complementary skills. For effective performance, a mix of technical & functional skills, problem solving skills & interpersonal skills are necessary. A right set of people is needed at the right time. Selection of team members is not only an issue for task forces & special project teams, but also for ongoing groups. Too often there is a presumption that existing job status automatically warrants team membership. Hence during the selection process, the job profile of the individual is not the only basis, but the necessary skill for job performance. More consideration has to be given to initial meetings & actions: Initial impression goes a long way. When the likely teams gather around for the first time, members attentively monitor the signals given by others to confirm or dismiss assumptions & concerns. Too many potential teams fail to understand the importance of first meetings & allow existing habits & operating styles to dominate, including an overemphasis on individual instead of mutual accountability. Creating a code of conduct: All real teams develop rules of conduct to help them achieve their purpose & performance goals. Rules are necessary for focus, commitment, trust & openness. The most crucial rules may be relevant to attendance, confidentiality, contributions, constructive confrontation & end-product orientation. Developing a team spirit: Many teams organize urgent small tasks & performance oriented events that bring them together. Potential teams can set such events in motion by immediately establishing a few challenging, yet achievable goals that can be reached early on. The purpose of having such events is to achieve a spirit of being together. Motivating through challenges: New challenges cause a potential team to redefine & enrich its understanding of the performance. They also help the team set clearer goals, shape a common purpose, & improve on its common approach. Potential teams with more permanent, ongoing assignments, on the other hand, easily develop habits that seal access to new information & perspective. New facts often bring such groups into action.

Spending time together: Teams must spend a lot of time together, particularly at the beginning. This time spent together can be scheduled or unscheduled. Innovative insights develop when personal bonding takes place. The more successful teams always find a way to spend extra time together. Que.4. Managing expectation is based upon an agreement between the manager & the employee on the objectives of the job under discussion & how its achievement would be measured. List the various types of objectives. Ans

Que.5 List the advantages & disadvantages of performance appraisal. Ans. Following are the advantages of performance appraisal; Organisations can use appraisal as vehicles to publish & promote collective values about work & performance. Emphasis on improved communication at work allows discussion on how the organisation is operated & the impact of management or leadership in its work. Communication between departments can be improved. Accountability for standards & results is more evidently identified.

Employees are better informed about what they are expected to do. Employees get to know how they are being perceived & where they stand. Training & development is more likely to be emphasized. Results of training are transferred & monitored easily. More open & receptive working environment can be created. Opportunities for counseling employees on problems related to work are created. Disadvantages of performance appraisal; Spending more time on performance appraisal than performance planning or ongoing performance communication. Performance appraisal is the end of a process that goes on all the time a process that is based on good communication between manager & employee. So, more time should be spent preventing performance problems than evaluating at the end of the year. Comparing employees with each other. Comparing employees creates hard feelings, damages morale & makes employees to compete so badly that they will not work as a team. And also, the manager can become a great target for hostility too. Forgetting appraisal is about improvement, not blaming. Performance appraisal aims to improve performance, not to find faults in employees or blame them. Managers who forget this end up developing employees who do not trust them, or even cannot stand them. That is because the blaming process is pointless, & doesnt help anyone. If there is a point to performance appraisal it must be getting the manager & the employees working together to have everyone get better. Thinking a rating form is an objective, impartial tool. Many organisations use ratings forms to evaluate employees. They do that because it is faster than doing it right. However, ratings are subjective & rating forms do not indicate the actual performance of the employee. Stopping performance appraisal when a persons salary is no longer tied to appraisal. Que. 6 The HR department of a manufacturing company reviewed the performance of the employees. The HR manager wants to provide feedback of the performance review to the employees. Describe the factors that have to be looked into while performing performance review feedback. Ans.