Assignment Answer Sheet MU0016

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     DRIVE Fall 2015PROGRAM MBADS (SEM 4/SEM 6)

    MBAFLEX/ MBA (SEM 4)PGDHRMN (SEM 2)

    SUBJE! ODE " NAME MU0016 # P$%&'%a*$

    Maa+$$, a- A..%aal

    $,' 13 D* ,$ a '& P$%&'%a*$ Maa+$$,A$%3 First, it is clear that PM has some objectives and purposes for which it is conducted.To measure goal achievement, to identify short falls, to identify strengths and weakness, toevaluate the adequacy of effort, to assist in enhancing standards, to ensure alignment to thegoal, to facilitate feedback, to enable personal growth are some of the aims of PM. e alsolinked PM to one of the most important aspects of performance in the information drivenservice economy, i.e., employee engagement. The understanding that employee engagementelicits discretionary efforts from the employees and that leads to e!ceptional performance is

    very important to help us design a PM. The discussion also revolved around the role of PM increating that engagement.

    A '& P$%&'%a*$ Maa+$$, !' $a%$ +'al a*$7$$,3 "verall evaluation of a company and its ability to set andreach goals is critical for success. hile several e!ternal factors such as economy, demand,etc, may affect the organisational performance, we should acknowledge that goal achievementis more related to effective employee performance. #ence goals such as enhancing marketshare, increasing client satisfaction, etc., are to be delivered by the employees. #ence, in goalachievement the employees and their performance have the primary role.!' -$,&8 ,$ '%,&all a%$a$ %nother objective is to discover where employees and the

    company are falling short. This is done by going through details such as profits earned peremployee, new clients acquired and the contribution of employees in making these thingshappen.!' -$,&8 ,%$+, a- $a9$$3 &f employees have the primary role in deliveringgoals, and there is a shortfall, then it follows that their strengths and weaknesses are importantways of identifying the shortfall. PM, therefore, has the objective of measuring the strength andweaknesses of an employee. "ften it is possible for an employee to contribute more. &t is alsopossible that the employee may be a better fit in another job and redeployment may be inorder. 'qually, he may have some weaknesses which when mitigated will help in overcomingthe shortfall. PM intends to facilitate these.!' $7ala,$ ,$ a-$:a*8 '& $&&'%,$ %n employee may have the strengths but he may fallshort in effort to produce the required result. PM is a direct measurement of this. hile it may

    be argued that output is not always the result of effort, the objective of PM is to check whetherthe shortfall is due to lack of effort, resources, or techniques.F'% ,$l8 %$$-al a*,'$ To identify and remedy situations that hinder companyperformance is another important objective of performance management. This includestraining, replacing underperforming employees, developing new strategies for reaching thegoals and discussing strategies that have worked in the past.!' $7ala,$ l$a-$%. a-$:a*83 The inability of a company to meet the goals is often dueto poor leadership, poor planning, poor implementation or poor employee performance.'conomic factors also play a major role, but it is better for companies to concentrate on factors

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    that are within their control. The best way of improving a company(s overall output is motivatingthe employees and improving their performance. PM is a good check of its leadership efficacyto do this.!' ,$, ,$ $&&*a*8 '& ,$a'%9$ &n order to meet the objectives of performancemanagement and improve the overall performance of a company, every employee must workwith the team members to develop new techniques and implement changes. PM, therefore,

    tests the efficacy of teamwork.!' a, $a*+ ,a-a%-$ PM contributes to enhanced standards of workperformance of an employee or class of employees.!' $%$ al+$, ,' ,$ +'al3 To ensure that the employees work towards the definedgoals is an important aim of PM since it is possible that employees are working hard but nottowards the organisationsal goal and, that too not in an appropriate manner.!' &a*l,a,$ &$$-;a*93 hile it is accepted that employee should be given feedback as oftenas possible, PM(s aim is that the employees receive at least the minimum required feedback atregular intervals.!' $a;l$ .$%'al +%',3 To assist the employees to achieve personal growth by acquiringrelevant knowledge, skills and attitudes.!' $a;l$ a *'7$%a,'3 PM is perhaps the ideal method for an intimate one))one

    conversation with the supervisors. This in turn creates an e!cellent work atmosphere.

    $,'23 D* ,$ ,$. +7+ a *',%*,7$ &$$-;a*9A$%3 F$$-;a*93 Feedback is a useful tool for indicating whether things are going in the

    right direction and for redirecting effort. &nformation about an employee(s performance returnedto the concerned employee. The performance appraisal procedure is incomplete without thefeedback given to the employee about the appraisal and their performance. Most people wouldprefer not to receive feedback on how they are performing their job, because no one likes tohear a negative feedback. e transfer our negative feelings about the information we receiveto the person who was unlucky enough to be the one who delivered the bad news. This willobviously do little to help those receiving the feedback improve their performance and grow

    personally and professionally.

    S,$. G7+ a ',%*,7$ F$$-;a*93

    S,$. 13 S,a,$ ,$ *',%*,7$ .%.'$ '& 8'% &$$-;a*9 '% *',$

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    affected. hen you describe your reactions or the consequences of the observed behaviour,the other person can appreciate the impact their actions are having on others and on theorganisation or the team as a whole. For e!ample$ The staff member looked embarrassed and& felt uncomfortable watching the episode. *houting at our students is not an acceptablebehaviour in this department.S,$. 43 G7$ ,$ ',$% .$%' a '..'%,,8 ,' %$.'- $ 0emain silent and meet the other 

    person(s eye, indicating that you are waiting for an answer. &f the person hesitates to respond,ask an open)ended question and listen with an open mind. For e!ample$ hat do you think1hat is your view of this situation1 hat are your reactions to this1 Tell me, what are yourthoughts1S,$. 53 O&&$% .$*&* ++$,'3 henever possible make your suggestions helpful byincluding practical, feasible e!amples. "ffering suggestions show that you have thought pastyour evaluations and moved to how to improve the situation. 'ven if people are working up toe!pected standards, they often benefit from ideas that could help them to perform better. &fyour feedback was offered supportively or neutrally, in the for)your)information mode ordepending on the situation+s circumstances, suggestions may not be appropriate. 2se yourcommon sense and offer an idea if you think the other person will find it useful. 3on+t drum upa suggestion for improvement just for the sake of it. For e!ample$ -ou know & always write

    notes or put up signs to remind myself to do something.S,$. 63 Sa%$ a- $

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    compulsion to change appointments because of their busy schedule. *hould you have aproblem for a meeting with customers like /opal, you should quickly alert me and & hope youwill take all the steps to show fle!ibility in keeping such appointments ;summariing'$- a a HR a '%+a?a,' !$ &%, ,a9

    a+$- ,' 8' ,' *'-*, ,$ P$%&'%a*$ A..%aal P%'*$ @a, a**'%-+ ,'8' , .%.'$ D$*%;$ ,$ $,%$ P$%&'%a*$ A..%aal .%'*$A$% 3 P%.'$ '& P$%&'%a*$ Maa+$$,Performance Management ;PM< is a system that connects the individual goals to theorganisational goals and therefore has a special significance in organisations.The purpose of performance management can be broadly classified into driving results,building capability and growing talent. 8et us e!plain them in detail$

    D%7+ %$l,3 The purpose of performance management is to drive improvement inbusiness results through individual, group and enterprise goal alignment, measurement,performance coaching and performance information sharing. % performance management

    process developed to drive the achievement of key business results is designed to makesure that the goals and e!pectations of the organisation, team and individual are clearlydefined, are focused on key priorities and are well)connected to the drivers of results.=onsider a situation where you want to work on training employees because of your liking for the job and confidence about being able to do a good good job and your company is lookingfor someone to drive their training as new projects are e!pected soon. 5y giving you thetraining responsibility, the company can drive higher results from you, which happens to bethe priority area of the company. This is how an organisation can drive results through PM.

    Bl-+ *a.a;l,$3 Performance management drives organisational and individualcapability development by clarifying role)specific goals and competencies, creating anenvironment of constructive feedback, and using formal developmental coaching ormentoring. % performance management process intended to drive capability development is

    developed to make employees understand what they need to learn and how they would goabout doing it. 'mployees are e!pected to be in a constant growth and learning mode.=oaching and mentoring helps employees to learn the skills, behaviours and knowledge thatare critical to the organisation(s ability to e!ecute its business strategy. The #0 managerdefines those, and you as the training manager go through the PM reports, finds those withthe competencies, though of a lower level than required, and find specialists to train them.-ou were able to have adequate people for the new projects in time. -ou would have builtcapability in the company by the initiative that you have taken and you would also realise thatit was easy to do it only because the PM reports contained the information to act upon.G%'+ ,al$,3 %nother important purpose of performance management is to motivate andretain high performers by providing career development programmes that include motivationand reward strategies, challenging work assignments and other on)the)job learning initiatives

    that will lead to career advancement and job satisfaction. % performance managementprocess for identifying and rewarding talent is developed to assess performance. The resultsof these assessments can be used to make decisions involving work assignments, careeradvancement and recognition. For e!ample, Mr. >, a young manager looking after theinternational business, did a good job and the PM system reported highly on him about hisinternational business acumen and cultural sensitivity. &t is now possible for the #0 to e!posethis person to an e!patriate job in another country for two to three years and then move himto head an international operation at some point of time. This is the way PM grows talent.

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    P$%&'%a*$ A..%aal P%'*$

    'mployee fills the self)appraisal form and submits to the manager$ This is done in formatsimilar to Part && of the PM planning format we saw in the earlier section and is the startingpoint of P%. &n relation to each objective and :0%, the individual will record his performance

    as evaluated by him. The evaluation may be figurative. For e!ample, ?@AB,C@AB, etc., or descriptive. For e!ample, met e!pectation, e!ceeded e!pectation, did not meete!pectation, etc. &t is advisable to have a column for remarks in which the employee canrecord the reasons for not meeting the e!pectation or to record the critical incidents based onwhich he is claiming the performance. 0ating method is discussed in detail in the ne!t unit.

      DManager concurs or differs with the self)appraisal$ hen he@she does not concur, it is normalto give reasons or site critical incidents to substantiate that. hile concurring, he may agreewith the incidents that the employee has cited and may add to them.

    Manager sets up a meeting with the employee$ This is done on a one)on)one basis and,perhaps, will take E? minutes to one hour. The manager should prepare in advance about

    the feedback he has to give. They develop a dialogue and jointly evaluate the performance$ This is the most important,yet most hated part of P%. &f the employee has performed well on all sides, then it is fast,easy and comfortable for both. &f not, the manager has to give feedback ;which is discussedin detail in subsequent unit

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     %nswer $ =oncept of GB)3egree Feedback *ystem&n GB)degree appraisal, the feedback about an employee(s performance comes from all thesources. The number ;GB< indicates all)round appraisal. hile AHB)degree refers to top)down and bottom)up feedback, numbers more than this indicate feedback from various other groups apart from the top)down and bottom)up across the organisation. For e!ample, theseadditional groups can be peers who are engaged in the same level of job as the recipient of

    the feedback.#ence, it could be said that GB)degree feedback is the organised collection of appraiseddata of an individual or group, obtained from several stakeholders.The data collection is organised, i.e., prepared in a systematic way through aptitude tests orinterviews. There is both collection of data and a feedback process7 data is collected andthen fed back to the individual to promote perceptive, recognisable and, finally, behaviouralchange. The performance of both an individual and a group can be calculated. *takeholdersare the sources of data. They answer certain questions about the behavioural attitude ofindividuals. #ere, stakeholders are people who are affected by the individual(s performanceand also interact with the individual in their day)to)day tasks. Figure I.A depicts a GB)degreefeedback system.

    Thus, GB)degree feedback signifies transition from top)down, single)stakeholder appraisal andresults that are much more diverse and related to processes.

    P%.'$ % GB)degree feedback helps an organisation to take decisions in the following areas$

    *elf)improvement and individual analysis

     J%ssociate( training program

     Team)construction

      DManaging performance

     *trategic or planned organisation development

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     Kalidation of training and other initiatives

     0eward management. %nnual assessment by way of GB)degree feedbacks assists in the management and monitoringof values, approving the prospective goals and assignment of responsibilities and tasks. % GB)degree performance appraisal is usually integrated into the yearly compensation and gradingreviews, which normally leads to business planning for the ne!t financial year.

     % GB)degree performance evaluation commonly reviews every individual+s performance againstthe goals and strategies for the previous financial year that were approved and agreed upon atthe previous evaluation sessions. Performance evaluations through a GB)degree appraisal arealso necessary for developing goals and business strategies for individuals, critical jobs, and forthe association as a whole.Moreover, since a GB)degree feedback provides a proper, confirmed, frequent and regularreview of an employee+s performance, and objectives for further development, it is essential forstaff motivation, bringing about a change in the attitude and behaviour of the employee anddiscussion and implementation of individual and organisational aims. This will encouragepositive connections between the administration and the employees.Following are the tasks that a GB)degree feedback can assist in, when managed appropriately$

    Performance measurement 6 clear, precise, long)term e!planation, defining and revisingpriorities and objectives.

    Motivation through objective and target approval.

     Motivation though success and feedback.

     'ducational desires and training needs 6 evaluation and agreement.

     &dentification of individual strength and abilities, including une!ploited hidden strengths.

     3efining the career and growth strategy 6 both individual and managerial.

     =reating mutual awareness, understanding and relationship.

      D=larification about the team(s role and structure.

     %ssessment and analysis of organisational training needs.

     3eveloping a common perspective between an employee and his manager, removingconfusions and errors through interaction and connection.

    *upport and communicate organisational theories, ethics, objectives, plans and preferencesand so on.F,%$ .%'.$*, a- %$*'$-a,'

     % GB)degree feedback is useful because it makes it easy to gather probable feedback aboutspecific issues that are otherwise hard to identify. #owever, it needs to be used with care so asto ensure ma!imum benefits. #ere are some suggestions for avoiding problems whileimplementing a GB)degree feedback process$ L$a% a;', ,$ ,$*'l'+8 &%, GB)degree feedbacks are changing very rapidly. hat

    was not possible earlier with a GB)degree feedback system is now easily achievable.Modernisation in GB)degree systems has made it easier to get feedback, making it, in turn,more acceptable, more reasonable, more fle!ible and more diverse. %t the same time, not allorganisations are able to innovate at the same speed or in the same way. This makes it difficultfor the ine!perienced user who is at the learning stage. #owever, a systematic review of what isaccessible will ensure that the GB)degree feedback system provides ma!imum benefit in thegiven circumstances.

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    The following areas need to be addressed first to ensure that an organisation is ready forimplementing a GB)degree feedback process$o =limate of trust in the organisation7

    o "rganisational strength7

    o Feedback practices7

    o 3evelopment practices7

    o 0esponsiveness and recognition of GB)degree feedbacks7

    o %vailability of computers.

    U$ $ll$

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    *ubordinate appraisal is e!tremely helpful in identifying and addressing developmental needs. &tcan be used for evaluating record sheets, but it should be ensured that the subordinates areappraising parameters of which they have knowledge. % subordinate(s feedback is especiallyuseful for evaluating the supervisor(s interpersonal skills. #owever, it may not turn out to be aseffective for measuring task)oriented skills. P$$% a..%aal3 Peers of an employee generally have an e!clusive point of view on the

    colleague(s job performance. They are also very open to the idea of rating each other. Peerratings are included when the individual(s capabilities are known or the result of theperformance can be computed. #owever, the pros and cons must be considered beforeincluding this type of feedback in an all)round appraisal program.

    2sed as an effective developmental tool and conducted at regular intervals, a GB)degree

    feedback system can help keep track of changes in perceptions about employees. % GB)degree

    appraisal is considered to be more appropriate at the managerial level, as it helps evaluate their 

    leadership and supervision styles. This appraisal method has been successfully used around

    the world for improving employee performance. *ome of the companies that have been

    successfully implementing GB)degree appraisals are T=*, Microsoft and ipro Technologies.

    $,' 53 D$&$ ,$ ,$% E,* D* ,$ 9$8 &a*,'% 7'l7$- $%+ E,* P$%&'%a*$ Maa+$$,

     Answer : E,* # A O7$%7$

    The word +ethics+ comes from the /reek word +ethikos+. &t refers to one+s moral character and theway in which society e!pects people to behave in accordance with accepted principles. Mostphilosophers conclude that ethical failure occurs because of lack of character or, in other words,virtuous people will live ethically. Therefore, we need to think about the desired virtues and howone can develop those virtues, PM being a case where such ethics need emphasis. %ristotle+s

    virtues for the city state included prudence, justice, courage and self)restraint. =hristians addedfaith, hope and love. "ver time, a number of others were added 6 compassion, generosity,empathy, hospitality, modesty and civility. *ociety today is more egalitarian and democratic andbusiness systems are a powerful entity in the social systems and hence the importance ofbusiness ethics. *ince PM is the system through which the people in the business and thebusiness interact, it is important to focus on ethics in the PM system also.

    D$' '& E,* 3B8 '%a,7$ $,* we mean the study of ethical action. 5roadly speaking, normative ethicscan be divided into the sub)disciplines of moral theory and applied ethics. &n recent years, theboundaries between these sub)disciplines have increasingly been dissolving as moral theoristsbecome more interested in applied problems and applied ethics is becoming morephilosophically informed.

    P%'&$'al $,* %$&$% to the ethics that professional people and those working inacknowledged professions should e!ercise in relation to the specialist knowledge and skill thatthey employ. #ow the use of this knowledge should be governed when providing a service tothe public can be considered a moral issue and is termed professional ethics. "ne of the beste!amples of professional ethics is enshrined in the #ippocratic "ath to which medical doctorsstill adhere to this day.

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    S'*al $,* come from someone(s collective e!perience of people and cultures. hile ethicsare typically driven by individual morals that determine right or wrong, ethics within society focusmore on what may be considered appropriate behaviour for people as a whole, rather thanindividual behaviour in a social conte!t. *ocial ethics cement the society and ensure its smoothfunctioning.

    P$%'al $,* is what an individual considers as ethics. &t is dependent on his upbringing andenvironment besides the impact of the society but is very individual in nature.

    E,* P$%&'%a*$ Maa+$$,I.'%,a*$ '& $,* PM3 *o far, we have had an overview of ethics and its relevance in theorganisational conte!t. &n this section, we are more concerned about how it can be incorporatedin PM and how PM can be made more ethical. *ince most people attach a high value to ethicsand all people are affected by performance management in an organisation, we can concludethat all people in the organisation would be concerned about ethics in PM. %lso PM acts as aguard in business ethics by including that as an evaluation criterion, i.e., PM reports whether anindividual has the ethical standards that are e!pected of him as defined by business. PM affects

    certain key aspects of an individual. &t affects the career, life, financial rewards, andretrenchments and through these, the Jself( image of an individual. This underscores theimportance of ethics in PM.'*$., '& PM a %$la,$- ,' $,*al a.$*,3 For instance, conventional wisdom might

    indicate that PM, in its various forms, is a natural outgrowth of an economic system based on

    profit ma!imisation, economic efficiency, and economic productivity. &t probably emerged during

    the era of scientific management ;refer to Management Process and "rganisational 5ehaviour

    material to know more about scientific management< to measure productivity. &n fact, through

    PM, we are trying to measures the skill of an individual and, therefore, economic efficiency. e

    may find that the cost of designing and implementing PM is greater than its benefits, in which

    case, the entire system is questionable from an economic perspective. &t could turn out that we

    are simply relying on economic indicators to judge human performance. There can be othercriteria to judge the worth of a person. :ant, a noted author on philosophy and ethics believed

    that motive or intention is a better measure of a person+s character than is the performance of a

    given action which tends to question the premise of PM itself.

    "n the other hand, %ristotle(s view is that moral worth is derived from the repetition of virtuousactivities, i.e., end actions can be assessed. 5esides, economic efficiency, PM is also used tomeasure socialisation skills, for e!ample, a teacher in primary school is as interested inmeasuring +self)control+ and +peer acceptance+ as he@she is interested in measuringmathematical skills and in many ways the manager is also as interested in these. Thussocialisation can be, and is, evaluated without any specific concern for eventual economicimpact. This means that PM is not restricted to any one area of human activity and is pervasive

    and hence fully justified in the organisational conte!t too. Thomas Lefferson spoke aboutJnatural aristocracy+ or a natural order of things, i.e., some people are destined to lead andothers are destined to follow. *o PM is about finding this out. Thus, performance evaluation maybe ethically sustainable as a concept but without implementing it keeping the equality ofopportunity and justice in mind, it will still not be ethical. &f these are not ensured, PM becomesan unreliable measurement of personal worth and job performance and hence suffers whenvalued in the light of ethics. =onversely speaking, PM can also be seen as a valid way to justlydistribute rewards and punishment. 5y now you may have realised that there are manyunsettled issues in ethics as pertaining to PM. aturally, this leads to several ethical dilemmas$

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    E,*al -l$a 13 U$ '& ,%a,'%$,$- '% ;>$*,7$ $7ala,' *%,$%a3 These criteria arefle!ible and hence evaluators generally like this. This is often ethically questionable. Favouritismor vengeance can often take place during appraisal. Managers are often self)righteous and feelthat they know their people and best performers and that an objective system is an impediment.*ome managers have e!pressed the feeling that objective)based systems +tie their hands+ andrestrict their decision)making autonomy. 3espite these objections, the fact is that subjective

    evaluations are inherently unfair7 different raters can treat the same behaviour or set ofbehaviours differently ;reliability related challenges< and there is no necessary agreement onwhat constitutes +good performance+ ;validity related challenges

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      E,*al -l$a 53 @' -$,$%$ ,$ ';>$*,7$ ,a-a%- Though we professotherwise, the role of the ratee in PM has been and continues to be passive. hile theparticipation points such as dialogue, joint goal setting, etc. have been discussed in earlier units,in reality, employee participation has been largely restricted to certain forms of PM such asmutual problem solving. The normal managerial tendency is to write the standards for theemployee and to impose them on him@her. &t is also important to note that if employees design

    the standards, they can be too +soft+. The optimal solution seems to be the use of +knowledgee!perts+ ;both subordinates and superiors< who collectively specify the key dimensions of jobperformance and measurements of those dimensions.

    Question 6: Write short notes on the following:a)Forced Distribution Methodb)Essay Appraisal Method

     Answer : F'%*$- D,%;,' M$,'-Forced distribution method has its roots in normal distribution, a topic found in statistics. Theemployees should normally be very good, good, average, below average, bad, etc. &n otherwords, the rating should be evenly spread. &n forced distribution method, the manager is told toensure that people are evenly spread. Thus, he has to fit some percentage in very good, some

    in good, etc., with some discretion. &t is generally applied to several components taken togetherrather than one component. For e!ample, you do not do force distribution for honesty separatelyand team spirit separately. -ou take the person(s performance as a whole and then do theforced distribution. Forced distribution is primarily used to remove rating errors such ascompassion and centralisation, but the process itself can cause rating errors because it forcessubtle differences between employees even where job performance is quite similar. Fore!ample, even if every employee in a unit is doing a good job, the forced distribution methodsuggests some of them to be placed at the bottom of a graded range. For this reason, thismethod is not accepted, particularly in small groups or where all the group members are equallytalented.

    Ea8 a..%aal $,'-

    &n the essay appraisal method, the appraiser describes the performance of an individual in theform of a short essay. #e covers what the employee did, what he did not, what his strengths andweaknesses are and what he should improve upon. hen facts and evidences are usedobjectively, it is a fairly accurate method to evaluate performance. #owever, if an organisation islarge, the variation in the description will be so much that an objective view will be difficult. *inceessay appraisals are unstructured and undefined, they suffer from the following anomalies$

    8ack of consistency is a major problem and an appraiser may well write two different storiesat two different times.

    &t is highly susceptible to an evaluator(s bias.

     &t is susceptible to the appraiser(s language and interpretation of others who use it.

     &t may result in emphasising behaviours not related to the job and, more importantly, not

    emphasising on job)related behaviours or results. &t may draw a blank in giving insight into theperformance.

    This does not generally represent a clear picture of the employee or the job, which reducesthe reliability of the method.