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UNIT: 4
PERFORMANCE APPRAISAL
VERY SHORT QUESTION ANSWER
1 MARKS
CHOOSE THE CORRECT ANSWER
1. is an objective assessment of an individual's performance against well-defined benchmarks.
a. Performance Appraisal
b. HR Planning
c. Information for goal identification
d. None of the above
Ans: a. Performance Appraisal
2. What is linked with performance appraisal?
a. Job Desig
b. Development
c. Job analysis
d. None of the above
Ans: c. Job analysis
3. Which of the following is an alternate term used for performance appraisal?
a. Quality and quantity of output
b. Job knowledge
c. Employee assessment
d. None of the above
Ans: c. Employee assessment
4. Match the following general applications of performance assessment with their specific purposes
I. Administrative Uses/
A. Performance Feedback Decisions
II. Documentation
III. Organisational requirements
IV. Developmental Uses
a. I-C, II-D, III-B, IV-A
b. I-B, II-C, III-D, IV-A
c. I-B, II-C, III-D, IV-D
d. I-A, II-B, III-D, IV-C
Ans: b. I-B, II-C, III-D, IV-A
5. Which of these is the main purpose of employee assessment?
a. Making correct decisions
b. To effect promotions based on competence and performance
c. Establish job expectations
d. None of the above
Ans: b. To effect promotions based on competence and performance
6. How performance appraisal can contribute to a firm's competitive advantage?
a. Ensures legal compliances
b. Minimising job dissatisfaction and turnover
c. Improves performance
d. All of the above
Ans: d. All of the above
SHORT QUESTION ANSWER
1. What is a Performance Appraisal?
Ans: A performance appraisal is a regular review of an employee's job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation,or employee appraisal, a performance appraisal evaluates an employee's skills, achievements, and growth--or lack thereof. Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. They can be conducted at any given time but tend to be annual, semi-annual, or quarterly.
2. Mention the types of Performance Appraisal?
Ans: Types of Performance Appraisal are-
Self assessment: Individuals rate their job performance and behavior.
Peer assessment: An individual's work group rates his performance.
360-degree feedback assessment: Includes input from an individual, her supervisor, and her peers. Negotiated appraisal: A newer trend that utilizes a mediator and attempts to moderate the adversarial nature of performance evaluations by allowing the subject to present first.
3. What are the objectives of Performance Appraisal System?
Ans: The main objectives of a performance appraisal system
are-
1. To increases the employee effectiveness by helping them understand their role better.
2. To help the employees understand their strengths and weakness in the current role.
3. To help the managers in identifying the training needs of their subordinates.
4. Why do Performance Appraisal Systems fail?
Ans: Many a times the performance appraisal system tries to assess the personality traits of its employees through their line manager.
There are two types of problems in this-
1. The employees do not open up as they do not want any negative personality trait to be recorded in official records.
2. The line managers are not fully trained and capable of assessing the personality traits of employees.
5. What are the main phases of a 360 Degree Appraisal System?
Ans: Following are the main phases of a 360 Degree Appraisal
System-
Orientation: Information about the importance and details of the process is passed on to the participants.
Questionnaire distribution
• Monitoring and follow up
• Data feeding and report generation.
6. What re major criteria to assess the Performance of Employees?
Ans: The major criteria to assess the performance of employees are-
Job Knowledge
• Planning
• Ability to organise and utilize resources
Communication skills
• Relationship with superiors, peers, subordinates & associates
• Ability to make decision
• Winning instinct - Can do atdecisio
•Team working capabilities
7. How is Appraisal System used as a tool to chalk out employee's career progression?
Ans: Performance appraisal system assesses the candidate's performance in various areas.
It also helps in identifying the training needs of an employee.
The line manager gets an idea about the area of interest of the candidate in which he wants to grow, his ability to take more responsibilities etc.
8. How does appraisal help in Counselling Interview?
Ans: The purpose of the counselling interview conducted by the line manager is to help his subordinate in objectively analyzing his performance. The information collected through the performance appraisal form and interview helps the manager in conducting this counselling interview.
It helps the employee in- Understanding himself.
Improving his behaviour which helps his professional and interpersonal competence.
9. Give two benefits of Performance Appraisal?
Ans: 1. Every employee's individual performance influences how all the team or even the firm (especially if it is small) is doing.
2. It clarifies the employee's role and status in the organization. Some workers like to know where they stand regarding their job performance and want to see what else (useful) they can do for the company.
10. Give two advantages of Performance Appraisal?
Ans: It is said that performance appraisal is an investment for the company which can be justified by following advantages-
1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.
2. Compensation : Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.
11. Mention two modern performance appraisal methods.
Ans: Two modern performance appraisal methods are-
1. Management by Objectives (MBO): Management by objectives (MBO) is the appraisal method where managers and employees together identify, plan, organize, and communicate objectives to focus on during a specific appraisal period. After setting clear goals, managers and subordinates periodically discuss the progress made to control and debate on the feasibility of achieving those set objectives.
2. 360-Degree Feedback: 360-degree feedback is a multidimensional performance appraisal method that evaluates an employee using feedback collected from the employee's circle of influence namely managers, peers, customers, and direct reports. This method will not only eliminate bias in performance reviews but also offer a clear understanding of an individual's competence.
12. Mention two essential features of an Effective Performance Appraisal System?
Ans: 1. Manager Performance Appraisal: This is the most important step in the performance appraisal process. It comprises of tasks like goal setting, progress tracking, quantitative employee rating, one-on-one discussions, and more.
2. Rewards and recognition program: In order to win the war for talent and retain top-performing employees, all organizations need to keep their employees motivated by celebrating their accomplishments. Most top-performing organizations have made rewards and recognition an integral part of their talent management process.
13. Define Performance Appraisal System?
Ans: Performance appraisals are comprised of preset standards which are used to measure employees' work behavior and the results are provided as feedback for the employee. An appraisal system helps employers with the decision-making process involved in employee promotion and compensation, or perhaps in an unfortunate situation, termination. A performance appraisal system falls under the umbrella of performance management software and these platforms are typically used in conjunction with each other.
14. Give two features of Performance Appraisal System?
Ans: 1. Performance Evaluation System: The performance avaluation system automates the entire performance appraisal cycle and ensures timely completione entire performs within the module you could look for are self-evherations, competency-based assessments, 360-degree feedback or weighted scale ratings. This is the core performance appraisal feature and step one to automating your appraisals.
2. Compensation Management: One of the larger purposes for performance appraisals is to aid in the decision-making process involved in compensation. The software can work with the business objectives and goals, then align employees' compensation accordingly. This could mean a raise in pay, or just a reward or bonus.
15. Mention two benefits of using a Performance Appraisal System?
Ans: 1. Transparency: There is a great deal of visibility that comes with using a performance appraisal system, given that both the employees and managers have access to the tool. Everyone will have a clear view of goals, ongoing projects and feedback. This level of transparency will instill trust on both ends, encourage open communication and provide clarification.
2. Development: Real-time feedback on a regular basis will allow your employees to recognize their weaknesses and leverage their strengths. This will provide your employees with the self- development that they deserve and your company needs; you will thrive off of each other. In the event of a less-than-desirable performance review, don't worry too much you can assign the employee learning courses which will bring them up to speed.
16. What is Potential Appraisal?
Ans: The potential appraisal refers to the appraisal involving identification of the hidden talents and skills of a person. The person might or might not be aware of them. Potential appraisal is a future-oriented appraisal whose main objective is to identify and evaluate the potential of the employees to assume higher positions and responsibilities in the organizational hierarchy. Many organizations consider and use potential appraisal as a part of the performance appraisal processes. Potential appraising is different from appraising performance
17. Mention two objectives of Potential Appraisal?
Ans: 1. Identify the abilities of an employee in order to evaluate whether that employee is suitable for future assignments or otherwise,
and 2. Occupy higher positions in the organizational hierarchy and undertake higher responsibilities because past performance may not be a good indicator for future and higher role.
18. Give two features of Potential Appraisal?
Ans: i. Helps assess the employees' analytical power, which indicates the ability to analyze problems and examine them critically.
ii. Helps build creative imagination, which is the ability of presenting an existing thing in an unconventional and new manner.
19. Mention two methods of Potential Appraisal?
Ans: (1) Rating by Superior: The potential of a candidate can be rated by his immediate superior who is in regular touch with him on the job. The superior can rate him on his technical as well as behavioral capabilities.
(3) Performance records in previous job: Present employer may check previous job ratings of the employee to know his initiative, creativity and risk taking ability etc. If these dimensions are indicating very high ratings, the employee has good potential for growth with the present employer also.
20. Mention some of the techniques used in Potential Appraisal?
Ans: Some of the techniques used in Potential Appraisal are given below-
1. Self-appraisals
2. Peer appraisals
3. Superior appraisals
4. Psychological and psychometric tests
5. Management games like role playing
6. Leadership exercises etc.
21. Give two requirements of Potential Appraisal System?
Ans : (i) Role Description: The roles and functions associated with different jobs should be defined clearly. The tasks and processes involved in the performance of each job in the organization should be extensively described.
(ii) Qualities Required: There should be a detailed list of qualities that a person should possess in order to perform a particular job.
22. Mention some advantages of Potential Appraisal?
Ans: The advantages of a thoroughly carried out potential appraisal are-
1. The organizations are able to identify individuals who can take higher responsibilities.
2. It also conveys the message that people are not working in dead-end jobs in the organization.
3. The identification of employee potential to ensure the availability of people to do different jobs helps to motivate employees in addition to serving organisational needs.
23. Mention two limitations of Potential Appraisal?
Ans: 1. Bias of Appraiser: The presence of 'Halo Effect' in evaluation of employees is the biggest weakness of this method.
A high rate is given to favoured employees whereas unfriendly employees are rated low.
2. Ambiguity in Standards: If the standards are not clear, the supervisors may follow different standards for different employees.
24. Define Employment Counseling?
Ans: Employee counselling is a psychological technique and that is used in various forms. The main objective of it is to support the employees by providing them advice, guidance, suggestions to solve the prevailing problems and improve physical and mental conditions, performance and which can take many forms. It is conducted with problem-solving approach by supervisors, managers or consultants.
Employee counselling is defined as a process which is initiated by the responsible manager or counsellor for providing assistance to employees facing problems. It is conducted to listen, understand problems and provide guidance, advices and suggest ways to solve them. It is mainly to provide job related, personal and confidential help to those who are facing the problems.
25. Give characteristics of Employee Counselling?
Ans: Characteristics of Employee Counselling are-
(a) Service offered to employees.
(b) Service is conducted in organisation.
(c) Focus is on problems faced by employees.
LONG QUESTION ANSWER
1. What are the objectives of Performance Appraisal System?
Ans: The main objectives of a performance appraisal system are-
• To increases the employee effectiveness by helping them understand their role better.
• To help the employees understand their strengths and weakness in the current role.
•To help the managers in identifying the training needs of their subordinates.
• To improve the relationship between the line manager and his team members by making them realize that they are dependent on each other for better performance.
• To help the line managers and their team members in improving the communication by discussing the problem in achieving the targets and finding the potential solutions. • To provide the employee an opportunity for self evaluation and self development which are important to achieve the goals.
• To prepare the employees for higher roles.
2. What do you know about Following Appraisal Systems?
Ans: 1. Graphic Rating Scales
• This method is also called as linear rating scales or simple rating scales method
• Judgement about the performance are recorded on a scale
• The appraisers are given the forms which carries the various criteria on which the employees are to be rated
• It is a simple and quick method, which makes it popular
2. Ranking method
• The employees are rated from best to worst on some characteristics
• The rater chooses the best and the worst employees from a group and rates them.
• He then chooses the second best and worst set and goes on
• The reliability and validity of this method is under doubt as it may suffer from rater's bias, fluctuating performances or varying standards.
3. Paired comparison method
• Under this method each employee is rated against all the members in the group.
It could be fairly applied where the number of employees are
• This method is time consuming. less.
• The performance is compared to other employees rather than specific job criteria
4. Forced distribution method
• This method is developed to prevent the raters from rating too high or too low.
• In this method, the raters are required to spread their employee evaluations in a prescribed distribution.
• It eliminates central tendency and leniency biases.
3. What are the pre-requisites of a 360 Degree Appraisal System? -
Ans: The main pre-requisites of a 360 degree appraisal system are
1. Commitment from the top management to continuously develop the competencies of the employees.
2. Proper implementation of various HR systems.
3. Willingness of the management to let the employees learn from each other and their own mistakes.
4. Willingness of the management to spend time in providing feedback to their sub-ordinates
5. Willingness of the management to accept the feedback from their sub-ordinates and peers.
6. Not too many status barriers and ego issues
7. Openness of the people to accept feedback and use it for development
8. Feedback is not used for political advantage.
4. What can you aim to achieve through 360 Degree Performance Appraisal System?
Ans: We can aim to achieve the following through 360 degree performance appraisal system-
1. Information about the strengths and weaknesses of an employee in a particular role
2. Identification of training and development needs to perform better in the current role and prepare for the higher role.
3. Collect data as an objective basis for rewards and other decisions
4. Basis for performance based pay or awards
5. Aligning individual and organizational goals.
5. What are the important components of a Performance Appraisal System Format?
Ans: The important components of a comprehensive performance appraisal system format are-
1. Identification of KPIs and target setting-periodically through a discussion between the employee and his line manger.
2. Identification of personal qualities required for the current and higher roles and developing them.
3. Self appraisal by the appraisee.
4. Identification of factors which have helped and hindered in achieving the set goals.
5. Discussion about the performance and counselling of the appraisee by the appraiser.
6. Identification of training needs for current and higher role.
7. Setting up the goals and plan of action.
8. Assessment by the superior-training and development needs, any rewards or punishments.
6. Explain five objectives of Performance Appraisal?
Ans: Performance Appraisal can be done with following objectives in mind-
1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential present in a person for further growth and development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
7. Explain five advantages of Performance Appraisal?
Ans: It is said that performance appraisal is an investment for the company which can be justified by following advantages-
1. Promotion : Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.
3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes.
4. Selection Validation : Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard.
5. Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways-
• Through performance appraisal, the employers can understand and accept skills of subordinates.
• The subordinates can also understand and create a trust and confidence in superiors.
8. Explain the disadvantages of Performance Appraisal?
Ans: Disadvantages of Performance Appraisal-
1. If the factors being used in the performance appraisal are incorrect or not relevant, the appraisal will fail to provide any useful or effective data.
2. Sometimes, equal weightage is not given to important factors when performing an appraisal.
3. Some objective factors are very vague and difficult to gauge like attitude and initiative. There is no scientific method to measure these factors.
4. Managers are sometimes not qualified enough to correctly assess the employees and their abilities. Thus, these mistakes can be very detrimental to the growth of the company.
9. Explain the steps to implement a successful MBO program?
Ans: 1. Every manager must have 5-10 goals expressed in specific, measurable terms
2. Manager can propose their goals in writing, which will be finalized after review
3. Each goal needs to include a description and a clear plan (list of tasks) to accomplish it
4. Determine how progress will be measured and how frequently (minimum quarterly)
5. List down corrective actions that will be taken if progress is not in accordance with plans
6. Ensure that goals at each level are related to the organizational objectives and levels above/below.
10. Explain the integral components of 360-Degree Appraisal Methods?
Ans: 1. Self-Appraisals: Self-appraisals offer employees a chance to look back at their performance and understand their strengths and weaknesses. However, if self-appraisals are performed without structured forms or formal procedures, it can become lenient, fickle, and biased.
2. Managerial Reviews : Performance reviews done by managers are a part of the traditional and basic form of appraisals. These reviews must include individual employee ratings awarded by supervisors as well as the evaluation of a team or program done by senior managers.
3. Peer Reviews: As hierarchies move out of the organizational picture, coworkers get a unique perspective on the employee's performance making them the most relevant evaluator. These reviews help determine an employee's ability to work well with the team, take up initiatives, and be a reliable contributor. However, friendship or animosity between peers may end up distorting the final evaluation results.
4. Subordinates Appraising Manager (SAM): This upward appraisal component of the 360-degree feedback is a delicate and significant step. Reportees tend to have the most unique perspective from a managerial point of view. However, reluctance or fear of retribution can skew appraisal results.
5. Customer or Client Reviews : The client component of this phase can include either internal customers such as users of product within the organization or external customers who are not a part of the company but interact with this specific employee on a regular basis. Customer reviews can evaluate the output of an employee better, however, these external users often do not see the impact of processes or policies on an employee's output.
11. Explain the Guidelines to implement assessment centre practice?
Ans: 1. Use job analysis to determine the components of effective performance.
2. Identify performance metrics that can be measured using this assessment center.
3. Classify meaningful and relevant candidate behavior in the assessment process.
4. Find assessment techniques that can ideally elicit ideal behavioral information.
5. Spot assessors and assessee's excluding immediate supervisors.
6. Provide thorough training to assessors and reviewers
7. Maintain a system of performance records for each candidate
8. Review records and reward employee or provide training accordingly.
12. Explain the Methods of Performance Appraisal for the Modern Workforce?
Ans : 1. Management by Objectives (MBO): Management by objectives (MBO) is the appraisal method where managers and employees together identify, plan, organize, and communicate objectives to focus on during a specific appraisal period. After setting clear goals, managers and subordinates periodically discuss the progress made to control and debate on the feasibility of achieving those set objectives.
This performance appraisal method is used to match the overarching organizational goals with objectives of employees effectively while validating objectives using the SMART method to see if the set objective is specific, measurable, achievable, realistic, and time-sensitive. At the end of the review period (quarterly, half- yearly, or annual), employees are judged by their results. Success is rewarded with promotion and a salary hike whereas failure is dealt with transfer or further training. This process usually lays more stress on tangible goals and intangible aspects like interpersonal skills, commitment, etc. are often brushed under the rug.
2. 360-Degree Feedback: 360-degree feedback is a multidimensional performance appraisal method that evaluates an employee using feedback collected from the employee's circle of influence namely managers, peers, customers, and direct reports. This method will not only eliminate bias in performance reviews but also offer a clear understanding of an individual's competence.
3. Assessment Centre Method: The concept of assessment centre was introduced way back in 1930 by the German Army but it has been polished and tailored to fit today's environment. The assessment centre method enables employees to get a clear picture of how others observe them and the impact it has on their performance. The main advantage of this method is that it will not only assess the existing performance of an individual but also predict future job performance. During the assessment, employees are asked to take part in social-simulation exercises like in-basket exercises, informal discussions, fact-finding exercises, decision-making problems, role-play, and other exercises that ensure success in a role. The major drawback of this approach is that it is a time and cost intensive process that is difficult to manage.
4. Behaviorally Anchored Rating Scale (BARS): Behaviorally anchored rating scales (BARS) bring out both the qualitative and quantitative benefits in a performance appraisal process. BARS compares employee performance with specific behavioral examples that are anchored to numerical ratings. Each performance level on a BAR scale is anchored by multiple BARS statements which describe common behaviors that an employee routinely exhibits. These statements act as a yardstick to measure an individual's performance against predetermined standards that are applicable to their role and job level. The first step in BARS creation is generation of critical incidents that depict typical workplace behavior. The next step is editing these critical incidents into a common format and removing any redundancy. After normalization, the critical instances are randomized and assessed for effectiveness. Remaining critical incidents are used to create BARS and evaluate employee performance.
5. Psychological Appraisals: Psychological appraisals come in handy to determine the hidden potential of employees. This method focuses on analyzing an employee's future performance rather than their past work. These appraisals are used to analyze seven major components of an employee's performance such as interpersonal skills, cognitive abilities, intellectual traits, leadership skills, personality traits, emotional quotient, and other related skills. Qualified psychologists conduct a variety of tests (in-depth interviews, psychological tests, discussions, and more) to assess an employee effectively. However, it is a rather slow and complex process and the quality of results is highly dependent on the psychologist who administers the procedure.
13. Explain the Benefits of the Performance Appraisal?
Ans: 1. Every employee's individual performance influences how all the team or even the firm (especially if it is small) is doing.
2. It clarifies the employee's role and status in the organization. Some workers like to know where they stand regarding their job performance and want to see what else (useful) they can do for the company.
3. Self-development is the most important benefit for the employee. Performance appraisal allows you to provide positive feedback as well as identifying areas for improvement. An employee can discuss and even create a developmental (training) plan with the manager so he can improve his skills.
4. It motivates employees if supported by a good merit-based compensation system. Best performers get better pay and benefits packages. Similarly, those employees that lag behind get penalized.
5. It provides a structured process for an employee to approach the management for discussions, identify problems, clarify expectations and plan for the future. It lets both manager and employee set up long- and short-term goals.
6. The statistics can be used to monitor the success of the organization's recruitment and induction practices.
14. Explain how to Assess the Potential of the Employee?
Ans: 1. Find out the requirements of the higher job and see how the employee meets those requirements.
2. Does the employee have the knowledge, skills and attitude which could be utilised in the higher job?
3. How good are the personal performance parameters such as quality of decision making, willingness to take up additional load/ responsibilities, dependability, initiative, imagination, open minded to suggestions and new ideas, interpersonal relationship etc.?
4. How could the employee develop those qualities required for performing the job at higher level effectively?
5. Follow-up-Once the management has identified the person, they could provide necessary guidance, training and development so that the person can take higher responsibilities and perform well in his new role.
15. Explain five features of Potential Appraisal?
Ans: The following are the features of potential appraisal-
i. Helps assess the employees' capacities, which pave way for them to give their best performance
ii. Helps assess an organization's ability to develop future managers
iii. Helps assess the employees' analytical power, which indicates the ability to analyze problems and examine them critically
iv. Helps build creative imagination, which is the ability of presenting an existing thing in an unconventional and new manner
v. Helps analyze the sense of reality, which refers to an employee's way of interpreting a situation
vi. Helps develop leadership skills, which refer to the abilities to direct, control, and harmonize with people.
16. Explain the purpose and requirements of Performance Appraisal?
Ans: The purpose of potential appraisal is to predict whether an employee is capable of taking on more demanding work, and the speed at which he/she is capable of advancing. It is necessary to inform employees of their future prospects, enable the enterprise to prepare a management succession plan, modify and update training and recruitment programmes, and advice employees of what they must do to enhance their career prospects. In the potential appraisal process, attempt is made to match the employees' abilities and aspirations with the organizations forecast of requirements for managerial staff. In this light, a responsibility may be cast on the supervisors to provide specific instances of how the employee can further his/her development and achieve specific goals. A consensus should be reached as to the employees' goals for the next evaluation period and the assistance and the resources to be provided by the management. This aspect of employee appraisal should be the most positive element in the entire process of employees' development and help the employee focus on behaviour that will produce positive results for all concern. The objective, thus, of the potential appraisal system is to help the top management make decisions regarding the suitable persons for a particular job by generating data about the employees and their potential for performing different, and often, higher level roles. It also helps in giving some pointers on how the organiza-tion can develop the managerial talent by identifying develop-mental inputs required by promising employees. Performance review serves a positive purpose in this direction. The potential appraisal is concerned with forecasting the direction in which subordinates' career can and should go, and the rate at which he/she is expected to develop.
The assessment of potential requires an analysis of the existing skills, qualities, and how they can be developed to the mutual advantage of the company and the employee. There is also an important coun-selling aspect to the review of potential which consists of discussions with the individual about his/her aspirations and how these can best be matched to the future foreseen for him/her.
These discussions are a vital part of the procedure because they can provide management with information about employees' feeling on the subject, which may have a direct impact on the plans for development, including training and job rotation. They can also provide employees with additional motivation and encouragement which they need to remain with the company.
17. Explain the process of Performance Appraisal?
Ans: Potential appraisal follows a four step process which is explained below-
1. Role Descriptions: Organizational roles and functions must be defined clearly. For this job descriptions must be prepared for each job.
Qualities needed to perform the roles- Based on job descriptions the roles to be played by people must be prepared (i.e. technical, managerial jobs and behavioural dimensions).
2. Rating Mechanisms: The various mechanisms to judge the qualities of the candidates are-
a. Rating by others to examine technical capabilities.
b. Psychological tests to know managerial and behavioural dimensions.
c. Simulation games to uncover the potential of the candidate.
d. Performance records and ratings on candidates' previous jobs can be examined on dimensions like creativity, risk taking ability etc.
3. Organizing the System: HR manager sets up a system to allow the introduction of the scheme smoothly incorporating answers to some complex questions such as:
a. How much weightage to accord to merit in place of seniority in promotions?,
b. How much weightage to accord to each of the performance dimensions-technical, managerial, and behavioural qualities?
c. What are the mechanisms of assessing the individual on different indicators of his/her potential, and with what degree of reliability?.
4. Feedback: Like performance appraisal, the system of potential appraisal must provide every employee opportunity to know the results of his/her assessment.
Many organizations like Tata Consultancy Services, Infosys, CITI Bank and Sate Bank of India are conducting potential appraisal.
18. Explain the behavioural parameter of Potential Appraisal?
Ans: Performance Parameters-
(i) Targets accomplished in the current appraisal period.
(ii) Particular areas where superior performance is shown.
(iii) Overall performance rating.
(iv) Skills, knowledge and talents which have scope for development.
(v) Steps taken by the employee for improving his performance and furthering his career development.
(vi) Knowledge of the employee regarding his job and related fields.
Behavioural Parameters
(i) Level of independence and autonomy.
(ii) Decision-making capabilities.
(iii) How the employee handles stress and work pressure.
(iv) Degree of confidence.
(v) Communication and interpersonal skills.
(vi) Leadership and motivation.
(vii) How he handles and diffuses conflicts at work place.
19. Explain the steps suggested for good Potential Appraisal System?
Ans: The following are some of the steps required to be followed while introducing a potential appraisal system-
i. Role Description: Organisational roles and functions must be defined clearly. To this end, job descriptions must be prepared for each job.
ii. Qualities needed to perform the roles: Based on job descriptions, the roles to be played by people must be prepared (i.e., technical, managerial jobs and behavioural dimensions).
iii. Rating mechanisms: Besides listing the functions and qualities, the potential appraisal system must list mechanisms of judging the qualities of employee such as-
a. Rating by others: The potential of a candidate could be rated by the immediate supervisor who is acquainted with the candidate's work in the past, especially his technical capabilities.
b. Tests: Managerial and behavioural dimensions can be measured through a battery of psychological tests.
c. Games: Simulation games and exercises (assessment centre, business games, in-basket, role-play, etc.) could be used to uncover the potential of a candidate.
d. Records: Performance records and rating of a candidate on his jobs could be examined carefully on various dimensions such as initiative, creativity, risk taking ability, etc., which might play a key role in discharging his duties in a new job.
iv. Organising the system: After covering the above preliminaries, a system should be set up that will allow the introduction of smoothly giving answers to puzzling questions -
a. How much weightage to merit in place of seniority in promotions?
b. How much weightage to each of the performance dimension technical, managerial, behavioural qualities?
c. What are the mechanisms of assessing the individual on different indicators of his potential and with what reliability?
v. Feedback: The system must provide an opportunity for every employee to know the results of his assessment. "He should be helped to understand the qualities actually required for performing the role for which he thinks he has the potential, the mechanism used by the organisations to appraise his potential and results of such an appraisal."
20. Explain the requirements of Potential Appraisal System?
Ans: The following requirements are to be followed while introducing a potential appraisal system in the organization-
(i) Role Description: The roles and functions associated with different jobs should be defined clearly. The tasks and processes involved in the performance of each job in the organization should be extensively described.
(ii) Qualities Required: There should be a detailed list of qualities that a person should possess in order to perform a particular job.
These qualities may be broadly divided into the following categories-
(a) Technical knowledge and skills.
(b) Managerial capabilities.
(c) Behavioural qualities.
(d) Conceptual capabilities.
(iii) Indicators of Qualities: A good potential appraisal system should have a mechanism for judging the various qualities in a given employee.
VERY LONG QUESTION ANSWER
1. Define Performance Appraisal? Explain the objectives of Performance Appraisal?
Ans: Performance Appraisal is defined as a systematic process, in which the personality and performance of an employee is assessed by the supervisor or manager, against predefined standards, such as knowledge of the job, quality and quantity of output, leadership abilities, attitude towards work, attendance, cooperation, judgment, versatility, health, initiative and so forth. It is also known as performance rating, performance evaluation, employee assessment, performance review, merit rating, etc. Performance Appraisal is carried out to identify the abilities and competencies of an employee for future growth and development. It is aimed at ascertaining the worth of the employee to the organization, in which he/she works.
A performance appraisal is a regular review of an employee's job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee's skills, achievements, and growth--or lack thereof. Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. They can be conducted at any given time but tend to be annual, semi-annual, or quarterly.
Objectives of Performance Appraisal
Generally, the aims of a performance appraisal are to-
a. To provide employees feedback on their performance.
b. Identify employee training needs.
c. Document criteria used to allocate organisational rewards.
d. A basis for decisions relating to salary increases, promotions, disciplinary actions, bonuses, etc.
e. Provide the opportunity for organisational diagnosis and development.
f. Facilitate communication between employee and employer.
g. Validate selection techniques and human resource policies to meet regulatory requirements.
h. To improve performance through counseling, coaching and development.
i. To motivate employees through recognition and support.
2. Explain briefly the methods of Performance Appraisal?
Ans: There are numerous methods in use to appraise employee performance depending upon the size and nature of the organizations. A common approach to assess performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes.
In some companies, employees receive assessments from their manager, peers, subordinates, and customers, while also performing a self assessment. The most popular methods used in the performance appraise process can be divided in two categories-
These methods include Ranking methods, Graphic Rating Scale method, Critical Incidents Method, Checklist Methods, Essay Method and Field Review Method.
Modern Appraisal methods include Management by Objectives, 360 Degree Feedback Appraisal, Behaviourally Anchored Rating Scales, Assessment Genre, Human Resource Accounting, and Balanced Scorecard.
Traditional Trait Appraisal Methods
1. Ranking Methods: Ranking can be based on the followings-
(a) Straight Ranking Method: This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser or evaluator ranks the employees from the best to the poorest on the basis of their overall performance. It is very useful for a comparative evaluation.
(b) Paired Comparison Method: It is a better way of comparison than the straight ranking method. In this method each employee is compared with all others on a one-to-one basis, and then ranked.
(c) Forced Distribution Method: It is a method of appraising employees on the basis of a predetermined distribution scale. The evaluator is asked to rank 10% employees in the best category, 20% in the next category, 40% in the middle category, 20% in before the low, and 10% in the lowest brackets.
2. Graphic Rating Scale Method: In this method, an employee's quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait, i.e., behavior or characteristics as they relate to work performance.
For example a trait like Job knowledge may be judged on the range of average, above average, outstanding or unsatisfactory or on the basis of numbers (1, 2, 3, 4, 5 and so on). The list of factors to be appraised is dependent upon the company requirements.
3. Critical Incidents Methods: In this method, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The negative point incident might be damage to machinery because of not following safety measures. Positive point incident may be staying beyond working hours to repair a machine. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur.
4. Checklist Methods: The appraiser is given a checklist of several behaviours, traits, or job characteristics of the employees on job. The checklist contains a list of statements on the basis of which the evaluator describes the on the job performance of the employees. If the rater believes that employee does have a particular listed trait it is marked as positive check, otherwise the item is left blank.
The company has a choice to choose either Weighted Checklist Method or Forced Checklist Method.
5. Essay Appraisal Method: It is also known as "Free Form Method". It involves a description of the performance in a number of broad performance criteria of an individual employee by his superior based on the facts and often supported by examples and evidences. A major drawback of the method is how to keep the bias of the evaluator away.
6. Field Review Method: In this method, a representative of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. This method is very time consuming method. However, this method helps to reduce the superiors' personal bias. At this stage it would not be out of context to mention some of the limitations associated with trait- based methods of performance evaluation. First, the trait-based methods are based upon traits (like integrity and consciousness) which may not be directly related to successful job performance. An employee can change behaviour, but not personality. An employee who is dishonest, may stop stealing, but is likely to involve the moment he feels the threat of being caught is gone. Second, trait-based methods are easily influenced by 'office politics' and is thus, less reliable.
Modern Appraisal Methods
These methods are described as under-
1. Management by Objectives: The concept of 'Management by Objectives' (MBO) was given by Peter F. Drucker in 1954. It can be expressed as a process whereby the employees and the superiors come together to identify common goals - the organizational goals as well as individual goals, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed.
Thus, the essence of MBO is participative goal setting, choosing course of actions and decision making. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to achieve them, they are more committed.
2. 360 Degree Feedback Appraisal Method: 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees' performance comes from all the sources that come in contact with the employee on his job. These sources include superiors, subordinates, peers, team members, customers, and suppliers apart from the employee himself (see Figure 18.10), who can provide feedback on the employee's job performance. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance (in University of Delhi's Master's in International Business, faculty member is not only evaluated by the head of department but also by students). Subordinates (part of internal customers) evaluation gives an opportunity to rate the employee on the parameters like communication and motivating abilities, superior's ability to delegate the work, leadership qualities etc.
Evaluation by peers can help to find employees' abilities to work in a team, co-operation and sensitivity towards others. Thus an evaluation by one and all is a 360-degree review and the feedback is considered to be one of the most credible. Some of the organisations using this method include Wipro, Infosys, and Reliance Industries etc.
3. Behaviourally Anchored Rating Scales: Behaviourally Anchored Rating Scales (BARS) is a modern technique which is a combination of the graphic rating scale and critical incidents method. It comprises predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (like the qualities such as inter-personal relationships, adaptability and reliability, job knowledge etc.). The typical BARS includes seven or eight performance behaviours each one measured by a seven-or-nine point scale. These statements are developed from critical incidents. In this method, an employee's actual job behaviour is judged against the desired behaviour through recording and comparing the behavior with BARS. Developing and practicing BARS needs expert knowledge.
4. Assessment Centres: Assessment centres are a contribution of German psychologists. The main feature of assessment centres is that they process. Assessment Centres consist of many multiples.
a. Multiple competencies to be evaluated for in a candidate.
b. Multiple observers to eliminate the subjectivity and increase objectivity involved in the process.
c. Multiple participants: 18-21 in case of TMTC (Tata Management Training Centre).
d. Multiple exercises: Exercises like role plays, case analysis, presentations, group discussions etc.
e. Multiple simulations: These could be creative, crisis or exploitative type of simulations.
f. Multiple observations: Each observation is observed at least twice. There are five main ways in which evaluation is made. A group of participants takes part in a variety of exercises observed by a team of trained assessors who evaluate each participant against a number of predetermined, job related behaviours. Decisions are then made by pooling.
5. Human Resource Accounting Method: Human resources are valuable assets for every organization. Human resource accounting method values the relative worth of these assets in the terms of money. In this method the valuation of the employees is calculated in terms of cost and contribution to the employers. The cost of employees includes all the expenses incurred on them, viz., their compensation, recruitment and selection costs, induction and training costs etc., whereas their contribution includes the total value added (in monetary terms).
The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
6. Balanced Score Card: It was developed by Robert Kaplan and David Norton in 1990s. The purpose of balanced scorecard is to evaluate the organizational and employee performance in performance appraisal management processes. The conventional approach measures the performance only on a few parameters like the action processes, results achieved or the financial measures etc. The Balanced scorecard provides a framework of different measures to ensure the complete and balanced view of the performance of the employees. Balanced scorecard focuses on the measures that drive performance. The balanced scorecard has two basic characteristics - a balanced set of measures based on four measures (financial profits, market share, ROI; customer-perspective about organization loyalty to firm, acquisition of new customers; internal business measures - infrastructure, organisational processes and systems, human resources; and the innovation and learning perspective - ability to learn, innovate and improve) and linking these measures to employee performance. Senior managers are allocated rewards based on their success at meeting or exceeding the performance measures.
3. Explain the Methods used for Performance Appraisal of Employees?
Ans: Some of the methods used in performance appraisal of employees are as follows-
1. Checklist Method: A checklist is a list consisting of statements of traits, qualities and behavior of employees. It has two columns 'Yes' and 'No' representing positive and negative responses.
2. Forced distribution method: In this method, the employee is evaluated on the basis of the pattern of a normal curve with the assumption that the performance level conforms to a normal distribution.
3. Forced choice method: In this method, the rater is given a series of statement to evaluate the employee. The rater can select any statement that clearly describes the employee.
4. Graphic rating scale: The most commonly used method in which the rater is presented with a set of traits in a printed appraisal form. Various characteristic such as job knowledge, quality of work, initiative and diligence are rated within a scale of 0 to 9. The employee receives comments from the rater, so that they can improve on the weak points.
5. Essay method: The supervisor writes an application describing the employee's performance after taking into certain parameters, such as work performance, strength, weakness, employee's poten-tial, and areas in which he needs to be trained.
6. Field review method: An outsider from any other office (HR department) interviews the man-agers and line supervisors to appraise the subordinates working under them. The managers are interviewed about the level of performance, growth potential and positive and negative features of employees.
7. Paired comparison method: According to this method, the supervisor is given a series of cards, each of them containing the names of two employees. The supervisor chooses the better one of them by comparison. The number of comparisons are divided with a formula N (N-1)/2
Where N = number of employees to be compared.
8. Grading method: On the basis of skills, knowledge and traits, employees are graded as outstanding, good, fair, average, poor, and unsatisfactory.
9. Ranking method: The superior gives rank to the employees in order of their merits and demerits. It is very difficult when evaluation of a large number of employees has to be done.
10. Critical incident method: This method emphasizes critical incident and behaviour of employees used for distinguishing between good and bad performances.
11. Behaviourally anchored rating scales (BARS): This method is based on the behaviour of the employees on job. The behaviour of an employee is measured against a scale of performance level.
The steps under BARS are as follows-
a. About six to ten performance dimensions are identified and defined by the raters and the ratees.
b. The dimensions are anchored with positive and negative critical incidents.
c. Each ratee is then rated on the dimensions.
d. Ratings are feedback using the terms displayed on the firms.
12. Balanced scorecard: This method was developed by Robert Kaplan and David Norton. It brings the linkages among financial customer, processes and learning. According to this method strate-gies are translated into clear-cut objectives. All employees should understand how their duties are aligned with higher-level objectives.
Employees should be provided with feedback on how they are accountable for achieving objectives, to what extent they achieved them, and reasons for failure. The scorecard of every employee indicates what all adjustments and performance improvements are required.
13. Human resource accounting: Human resource accounting deals with the cost and contribution of the employees in an organization. The cost of the employee includes the cost of manpower planning, recruitment, selection and training whereas the contribution is the value added by the employee. The performance of an employee is positive if his contribution is greater than cost and vice versa.
4. Explain the Advantages and Disadvantages of Performance Appraisal of Employees?
Ans: Advantages of Performance Appraisal-
1. Performance improvement: Appraisal systems always aim at improving the performance of employees. It helps to analyse and evaluate opportunity factors such as technology and social process.
2. Development of employees: Appraisal systems determine which employee needs more train-ing and becomes primary source of information regarding the strengths and potentialities of the employees.
3. Corrective actions: Any deficiency of employees can be detected and corrective steps can be taken through appraisal system.
4. Career planning: Performance appraisal serves as a valuable tool in the case of career planning to the employees, since it helps in preparing SWOT analysis of every employee.
5. Promotions: Performance appraisal also helps the management in deciding about the promotions, transfers and rewards of the employee.
6. Motivation: It is a tool for motivating employees towards higher performance.
7. Other benefits-
a. Performance appraisal plans help the management provide systematic judgments to back up salary increases, transfers, promotions, and demotions regarding the employees.
b. Superiors can guide the subordinates by making them aware of 'where they stand'.
c. Performance appraisal becomes the bare for coaching and counselling of individual employees by the superiors.
Disadvantages of Performance Appraisal-
1. The Halo Effect: Halo effect is defined as the 'influence of a rater's general impression on ratings of specific rate qualities'. It tends to occur when an evaluation rates an employee high on all jobs criteria, even if he has performed well only in one area.
2. Contrast Error: The rating is always based on performance standards. The contrast error occurs when employee is rated without taking into account the performance standard. This can also occur if a rater compares an employee's present performance with their past performance.
3. Rater Bias: The rater's prejudices and biasness can also influence rating. For example, a supervisor can underrate an employee based on race, sex, religion, appearance and favouritism.
4. Central Tendency Error: When the supervisor rates all the employees within a narrow range, thinking all employees are of average level, this type of error occurs.
5. Leniency or Severity: Performance appraisal demands that the rater should objectively draw a conclusion about employee's performance.
6. Sampling Error: If the rater uses a very small sample of the employee's work, it may be subject to sampling error.
7. Primary and Regency Errors: Behaviour of an employee at the initial stage of rating and at the end of appraisal can affect the rating. For example, a salesman's performance may be very low for some part of the year.
5. Explain the importance of Performance Appraisal?
Ans: The main advantages or importance of performance appraisal are-
1. Performance Feedback: Most employees are very interested in knowing how well they are doing at present and how they can do better in a future. They want this information to improve their performance in order to get promotions and merit pay. Proper performance feedback can improve the employee's future performance. It also gives him satisfaction and motivation.
2. Employee Training and Development Decisions : Performance Appraisal information is used to find out whether an employee requires additional training and development. Deficiencies in performance may be due to inadequate knowledge or skills. For e.g. A professor may improve his efficiency by attending workshops or seminars about his subject. Performance appraisal helps a manager to find out whether he needs additional training for improving his current job performance. Similarly, if the performance appraisal results show that he can perform well in a higher position, then he is given training for the higher level position.
3. Validation of Selection Process: Performance appraisal is a means of validating both internal (promotions and transfers) and external (hiring new employees from outside) sources. Organisations spend a lot of time and money for recruiting and selecting employees. Various tools used in the selection process are application blanks, interviews, psychological tests, etc. These tools are used to predict (guess) the candidate's performance on the job. A proper performance appraisal finds out the validity of the various selection tools and so the company can follow suitable steps for selecting employees in future.
4. Promotions: Performance appraisal is a way of finding out which employee should be given a promotion. Past appraisals, together with other background data, will enable management to select proper persons for promotion.
5. Transfers: Performance appraisal is also useful for taking transfer decisions. Transfers often involve changes in job responsibilities, and it is important to find out the employees who can take these responsibilities. Such identification of employees who can be transferred is possible through the performance appraisal.
6. Layoff Decisions: Performance appraisal is a good way of taking layoff decisions. Employees may be asked to lay off, if the need arises. The weakest performers are the first to be laid off. If there is no performance appraisal, then there are chances that the best men in the department may be laid off.
7. Compensation Decisions: Performance appraisal can be used to compensate the employees by increasing their pay and other incentives. This is truer in the case of managerial jobs and also in the case of employees in non-unionized organisations. The better performances are rewarded with merit pay.
8. Human Resource Planning (HRP): The appraisal process helps in human resource planning (HRP). Accurate and current appraisal data regarding certain employees helps the management in talking decisions for future employment. Without the knowledge of who is capable of being promoted, demoted, transferred, laid off or terminated, management cannot make employment plans for the future.
9. Career Development: Performance appraisal also enables managers to coach and counsel employees in their career development.
6. Explain Potential Appraisal? Explain the importance of Potential Appraisal and objectives of Potential Appraisal?
Ans: The potential appraisal is a future-oriented appraisal to measure the potentiality of an employee for future higher positions. The potential appraisal refers to the identification of hidden talents and skills of a person. The person might or might not be aware of them. To express it in simple words, performance appraisal is an estimation of how an employee did while potential appraisal is an estimation of how well he might do. Potential Appraisal is a process of identifying the hidden talents, capabilities and potential talent within the individual with an aim to harness and exploit the same to ensure optimum utilisation of the strategic qualities to the benefit of the individual as well as the organisation. Potential appraisal is an assessment / appraisal of a person's capability to perform job with higher responsibilities. In other words, ascertainment of a person's latent / inherent capacity to handle higher job is potential appraisal. So, level of competency, capability of a person to perform higher cadre / grade job is measured through potential appraisal system.
Importance of Potential Appraisal are-
1. Evaluation of Capabilities: With the help of the potential appraisal form, the employees are judged on various performance and behavioural parameters. Appraising employee's potential helps to evaluate his capability to take greater challenges, responsibilities and positions in the organisational hierarchy. It helps organization to identify the employees who are capable of taking more challenging roles & responsibilities in future.
2. Succession Planning: Succession planning is a process for identifying and developing new leaders, who can replace old leaders when they leave, retire or die. Such planning increases the availability of experienced and capable employees that are prepared to assume these roles as they become available. Most organisations incorporate potential appraisal in their appraisal processes for identifying and developing suitable employee base for succession planning.
3. Career Development: The potential appraisal results in identification of hidden talents and skills of an employee. The employee himself might not be aware of his certain competencies. The potential appraisal aids in career development of an employee by giving him opportunity to work on his potential capabilities.
4. Motivate Employees : It leads to identification of hidden talents & thereby motivates the employees to further develop their skills and competencies. It also benefits the organization as it results in versatile workforce who can assume greater roles & responsibilities in future.
5. Identify Training Needs: The potential appraisal helps the organization to identify the training needs. Such appraisal throws light on the hidden competencies of employees which could be developed further with the help of appropriate training programmes.
6. Organizational Goals: The potential appraisal concentrates on the future. It helps to create a pool of experienced and capable employees by giving them opportunity to discover their hidden talent. It also helps employees to develop their personal interests in alignment with the organisational goals.
7. Evaluation of Capabilities: With the help of the potential appraisal form, the employees are judged on various performance and behavioural parameters. Appraising employee's potential helps to evaluate his capability to take greater challenges, responsibilities and positions in the organisational hierarchy. It helps organization to identify the employees who are capable of taking more challenging roles & responsibilities in future.
8. Career Development: The potential appraisal results in identification of hidden talents and skills of an employee. The employee himself might not be aware of his certain competencies. The potential appraisal aids in career development of an employee by giving him opportunity to work on his potential capabilities.
9. Identify Training Needs: The potential appraisal helps the organization to identify the training needs. Such appraisal throws light on the hidden competencies of employees which could be developed further with the help of appropriate training programmes.
The important objectives are given below-
1. Identification of Employees Having Capabilities to Perform Higher Level Jobs: It identifies people who have potential to take over higher jobs. This task is difficult to accomplish in industrial settings. It may take the help of assessment centre/development centres to find out suitable/capable employees for promotion.
2. Assessment of General Potential: It assesses whether the employees have abilities to perform some types of work. Employees' aptitudes, level of competency, skill are appraised for better utilization in the organization activities.
3. Identification of Training Needs of Employees : For growth and development of organization employees' development of skill, knowledge, abilities is needed. This is possible through training. Potential appraisal identifies the area which requires training for reinforcement/improvement.
7. Explain Employee Counselling? Explain the needs and Objecctives of Employee Counselling?
Ans: Employee counselling is a vital part of performance review and potential appraisal, if these are to achieve their basic purpose of helping employees to improve and develop. Unless carefully and sensitively handled, employees may become more dissatisfied after the counselling than before. Counselling is described as the help provided by the supervisor to the subordinates in analysing their performance and other behaviours on the job, in order to improve their performance. Counselling is also used sometimes in the sense of coaching and reviewing one's performance. Such a review identifies not only the potential for development but also the training needs for further improvements. Employee counselling is a method of understanding and helping individuals who have technical, personal and emotional adjustment problems interfering with their work performance. The personal adjustment of an employee is often improved when he is able to obtain information that he needs for reaching an intelligent solution to his problems or when he is able to express his feelings without fear of reprisal. Counselling is a sophisticated form of communication in which attempts are focused to maintain constructive attitudes. Viewed in this manner, counselling has been practised in one from or the other since the evolution of mankind. In every field which requires dealing with people, counselling is essential. The origin of counselling as a scientific procedure can be traced back to the psychoanalytical method of Freud and client centred counselling method of Carl Rogers used in therapeutic setting. Counselling is a two-way process in which a counsellor provides help to the workers by way of advice and guidance. There are many occasions in work situations when a worker feels the need for guidance and counselling. The term 'counselling' refers to the help given by a superior to his subordinate in improving the latter's performance.
It is a process of helping the employees to achieve better adjustment with his work environment to behave as a psychologically mature individual, and help in achieving a better under-standing with others so that his dealings with them can be effective and purposeful.
Need for Employee Counselling
Employees undergo tremendous stress of completing the targets, work-load, meeting deadlines, relations with subordinates or colleagues, work-life balance, lack of time and higher responsibility.
Therefore, following are some of the reasons as to why there should be counselling at work places-
1. There is a need for the employees to come out from the problems, gives a new way to deal with the problems.
2. The employees need to know as to how much the employer care for the employee 3. There is also a need to identify the work related problems and the poor performance.
4. There is a need to increase the productivity of employee and the confidence about the work.
Objectives of Employee Counselling
The objectives of employee counselling are multidimensional and all concerned parties are benefitted due to employees counselling. The parties involved in benefits from employee counselling are employee, family member, peers, subordinates, seniors, organisation and society as a whole.
Due to this the popularity of employee counselling is increasing day-by-day in corporate section and mainly in medium and large sizes of organisations. The role of employee counselling in future will be more important.
The objectives of counselling could be stated as follows-
(1) Counselling is an exchange of ideas and feelings between two persons.
(ii) It is concerned with both personal and work problems.
(iii) Counselling may be performed by both professionals and non--professionals.
(iv) Counselling is usually confidential so as to have free talk and discussion.
(v) It tries to improve organisational performance by helping the employees to cope with their problems.
i. Helping employees to realize their potential.
ii. Helping employees to understand their strengths and weaknesses.
iii. Providing employees an opportunity to acquire more insight into their behaviour and analyse the dynamics of such behaviour.
iv. Helping employees to have a better understanding of the environment.
v. Increasing personal and interpersonal effectiveness through effective feedback
8. Explain the benefits and challenges of Counselling?
Ans: Employee Counselling offers employees a facility that is confidential, easily accessed, provides a properly qualified and supervised practitioner, does not raise the threat of a diagnosis of psychiatric disorder, and promises to alleviate distress within a reasonably short period of time.
Some benefits may be highlighted as under-
1. It helps employees to tackle with the problems effectively
2. Employees are able to sort out their problems with ease
3. Counselling Helps in taking correct decisions, be it personal or official
4. Counselling gives a new way to look at the situation with a new perspective and positive outlook
5. It also May reduce the number of absenteeism of employee
6. It may prevent termination from employer or resignation from employee
7. It reduces the cost of hiring new employee and training new staff as old staff is retained
8. It results in Possibility of smooth coordination between employer and employee
9. It Helps the individual to understand and help him/herself
10. It provides Alternate solutions to problems
11. Counselling helps in Coping with the situation and the stres
12. Employees frustrations and stress are removed with the help of Counselling.
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