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    Critical Incident Technique

    Example:

    July 20 - Sales clerk patiently attended to the

    customers complaint. He is polite, prompt,

    enthusiastic in solving the customers problem

    July 20 - The sales assistant stayed 45 minutes

    beyond his break during the busiest part of the day.

    He failed to answer store managers call thrice. He

    is lazy, negligent, stubborn and uninterested in work

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    Critical Incident Technique

    Limitation of this technique are:

    Negative incidents may be more noticeable than positive

    incidents.

    Supervisors have a tendency to unload a series of complaints

    about incidents.

    Results in very close supervision which may not be liked by the

    employee. The recording of incidents may be a chore for the manager

    concerned who may be too busy or forget to do it.

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    Ex:A fire, sudden breakdown, accident

    Workers Reaction scale

    A Informed the supervisor immediately 5

    B Become anxious on loss of output 4

    C Tried to repair the machine 3

    D Complained for poor maintenance 2

    E Was happy to forced test 1

    CRITICAL INCIDENT METHOD

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    Behaviorally Anchored Rating Scale(BARS) Process

    1) Generate critical incidents (examples of good and poor job

    performance)

    2) Place Critical Incidents Into performance dimensions (e.g.,

    Responsibility, Initiative, Safety)

    3) Retranslation Step (do step # 2 again with a separate group of job

    experts. Discard incidents where disagreement exists as to whichdimension in which they belong)

    4) Calculate the mean and standard deviation of each critical incident

    (discard those with a large standard deviation)

    5) Place critical incidents on a vertical scale

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    Should have following Features

    Areas of performance has to evaluated

    Scales are anchored by description of

    actual job performance All dimensions of performance to be

    evaluated are based on observable

    behaviors

    Raters more likely committed to final

    product

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    BARS (Pros and Cons) Process involves various employees (increasesthe likelihood of usage)

    Job specificity (different BARS need to be

    developed for each position)

    Not any better at reducing common rating scale

    errors (e.g., leniency, halo)

    Time consuming

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    FIELD REVIEW ( fig. 10.9)In this method, a senior member of the HRdepartment or a training officer discusses

    and interviews the supervisors to evaluateand rate their respective subordinates. Amajor drawback of this method is that it isa very time consuming method. But thismethod helps to reduce the superiorspersonal bias.

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    Confidential Report

    Descriptive report

    Prepared at the end of the year

    Prepared by the employees immediate supervisor

    The report highlights the strengths and

    weaknesses of employees

    Prepared in Government organizations

    Does not offer any feedback to the employee

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    Essay Evaluation

    The rater is asked to express the strong as well as

    weak points of employees behavior

    The rater considers the employees : Job knowledge and potential

    Understanding of companys programs, policies,

    objectives etc

    Relation with co-workers and supervisors

    Planning, organizing and controlling ability

    Attitude and perception

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    Essay Evaluation

    This method has the following limitations:

    Highly subjective Supervisor may write biased essay

    Difficult to find effective writers

    A busy appraiser may write the essay hurriedly

    without assessing properly the actual performance ofthe worker

    If the appraiser takes a long time it becomes

    uneconomical from the view point of the firm

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    Performance Points Behavior

    Extremely

    good

    7 Can expect trainee to make valuable suggestions

    for increased sales and to have positive

    relationships with customers all over the

    country.

    Good 6 Can expect to initiate creative ideas for improved

    sales.Above average 5 Can expect to keep in touch with the customers

    throughout the year.

    Average 4 Can manage, with difficulty, to deliver the goods

    in time.

    Below average 3 Can expect to unload the trucks when asked bythe supervisor.

    Poor 2 Can expect to inform only a part of the

    customers.

    Extremely poor 1 Can expect to take extended coffee breaks &

    roam around purposelessly.

    BEHAVIORAL ANCHORED RATING SCALES

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    Ranking and comparative methods STRAIGHT RANKING METHOD

    This is one of the oldest and simplest techniques ofperformance appraisal. In this method, the appraiser

    ranks the employees from the best to the poorest on thebasis of their overall performance. It is quite useful for acomparative evaluation.

    PAIRED COMPARISONA better technique of comparison than the straightranking method, this method compares each employeewith all others in the group, one at a time. After all thecomparisons on the basis of the overall comparisons, theemployees are given the final rankings.

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    As compared to A B

    C

    A + -

    +

    B - +

    -

    C + -

    +

    For the Trait Quality of

    work

    A - +

    +

    B + -

    +

    C + +

    As compared to A

    B C

    For the Trait Creativity

    +

    +

    ++

    +

    +

    +

    + +-

    -

    -

    --

    - -

    - -

    Person rated Person rated

    RANKING EMPLOYEES BY PAIRED COMPARISON METHOD

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    FUTURE-ORIENTED METHODS Given by Peter F. Drucker in 1954.

    Reflects a management philosophy which values and utilisesemployee contributions.

    Steps in MBO:1. Establish the goals each subordinate is to attain( sometimes

    collectively set by superiors and subordinates)

    2. Setting the performance standards for the subordinates inspecified time period.

    3. Actual level of goal attainment is compared with the goals agreed

    upon. ( causes are explored to assess the training needs)4. Establishing new goals specifically with the subordinates who

    easily attained previously set goals. New strategies are alsoexplored. Then, the whole step is repeated.

    MBOMBO ( exhibit 10.5)( exhibit 10.5)

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    Management by Objectives (MBO)

    MBO emphasizes collectively set goals that are

    tangible, verifiable, and measurable

    Focuses attention on goals rather than on methods

    Concentrates on Key Result Areas (KRA)

    Systematic and rational technique that allows

    management to attain maximum results from

    available resources by focusing on achievable

    goals

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    Key Elements Of MBO

    Arranging organizational goals in a means-ends

    chain

    Engaging in joint goal setting

    This process has the following steps:

    Identify KRAs

    Define expected results

    Assign specific responsibilities to employeesDefine authority and responsibility relationship

    Conducting periodic progress review

    Conducting annual performance review

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    Psychological appraisal

    Large organisations employ full-time

    industrial psychologists. They assess an

    individuals future potential.

    Consists of:

    In-depth interviews,

    Psychological tests,

    Discussions with supervisors,

    Review of other evaluations.

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    The psychologist then writes an evaluation of theemployees intellectual, emotional, motivationaland other related characteristics that suggest

    individual potential and may predict futureperformance.

    The evaluation may be a specific job opening forwhich the person is being considered, or it maybe a global assessment of his or her futurepotential.

    Placement and development decisions may bemade to shape the persons career.

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    Assessment centres (Exhibit 10.6)

    First developed in US and UK in 1943.

    It is a central location where managers may cometogether to have their participation in job-related

    exercises evaluated by trained observers. The principal idea is to evaluate managers over a period

    of time(1-3 days), by observing their behaviour across aseries of select exercises or work samples.

    Assesses are requested to participate in in-basket

    exercises, work groups( without leaders), computersimulations, role playing, etc. which require the sameattributes for successful performance, as in the actual

    job.

    Self-appraisal and peer evaluation are also noted forfinal rating.

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    The characteristics normally assessed are:

    1. assertiveness,

    2. Persuasive ability,

    3. Communication skills,4. Planning and organisational ability,

    5. Self-confidence,

    6. Stress management,

    7. Energy levels,8. Emotional stability,

    9. Creativity,etc.

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    SUPERIOR

    CUSTOMERS

    SUBORDINATES

    PEERS

    SELF

    TEAMTEAM

    3600

    Appraisal

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    PRE-REQUISITES FOR 3600

    APPRAISAL Top management support

    Some prior experimentation and positive

    experiences

    Clear organizational philosophy and policy

    - Purpose, phases, components,

    implementation plan, etc.

    Design team that designs and monitors it Communication plan.

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    BENEFITS OF 3600 SYSTEMS More objective

    Suits flat structures, multiple reporting,

    matrix structures and modern organizations

    Enables better planning of performance

    Provides opportunity to improve quality of

    inputs and services to internal customers

    Points out supervisory biases

    Provides scope to get new ideas

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    BENEFITS OF 3600 SYSTEMS (contd.)

    More authentic data for decisions

    Developmental tool Team building tool

    More involving and participative

    Suits new organizational cultures