Beruflich Dokumente
Kultur Dokumente
ON
PERFORMANCE APPRAISAL METHODS
DONE BY
SANTOSH.BASAVRAJ
III rd SEM, MBA
DON BOSCO INSTITUTE OF TECHNOLOGY, BANGALORE
IN
GOKALDAS IMAGES. PVT. LIMITED, BANGALORE
AS A PART OF PROJECT WORK
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This literature report gives the insight of:
8) Conclusion.
PRIMARY DATA:
Student survey conducted in Bangalore.
SECONDARY DATA:
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LITERATURE SURVEY ON VARIOUS PERFORMANCE APPRAISAL
METHODS
Definitions:
In simple terms PA is the activity used to determine the extent to which an employee
performs work effectively,
Need for PA
With the evolution and development of the appraisal system, a number of methods or
techniques of performance appraisal have been developed.
TRADITIONAL METHODS
Methodology: In this method judgments about performance are recorded on a scale. The
appraisers are supplied with printed form, one for each employee these forms contain a
number of objectives, behaviors & trait based qualities and characters to be rated like
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quality & volume of work etc, and these form contain rating scales, the appraiser assigns
the points to degree.
These character are added up to find overall performance, the finally employee rande on
the basis of total points assigned.
Sample formant 1:
1) Sample items
1) Sample in a in
items Graphic rating
a Graphic scale.
rating scale.
On aOn
scale of 1-5,
a scale rate rate
of 1-5, the employee,
the employee,
5-Excellent, 4-Very good,
5-Excellent, 4-Very good,3-Good, 2-Adequate,
3-Good, 1-Inadequate
2-Adequate, 1-Inadequate
a) The communication
a) The skillsskills
communication of the
of employee can be
the employee canrated as as
be rated
(1) (1)
(2) (2)
(3) (3)
(4) (4)
(5) (5)
• Is
• always regular
Is always and and
regular punctual () ()
punctual
• Is
• usually regular
Is usually and and
regular punctual () ()
punctual
• Is
• usually regular
Is usually but not
regular but very punctual
not very () ()
punctual
• Is lacks in attendance and punctuality
• Is lacks in attendance and punctuality ( ) ( )
• Is
• often absent
Is often and and
absent frequently late late
frequently () ()
Sample format 2:
Quantity of work
Volume of acceptable work
Under normal conditions
Comments:
Quality of work
Thoroughness, neatness and
Accuracy of work
Comments:
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Advantage: It easy to conduct.
Disadvantage:
• Appraisee may mark only good character which leads to bias information.
2. Mphisis (call center) uses this method along with 360 degree appraisal (source:
Mr. .Manu Thripathi H.R.manager, during student survey) in a congenial work and social
environment through adequate opportunity for advancement.
Methodology used: For the collection of information pertaining to employee’s
performance, communication of goals and review of result, a questionnaire having
similar to graphic ration is used.
3. Birla Jute: Which is the group of Birla corporation ltd, have 8 decades of experience
in his two jute mills have a skilled work force for their appraisal it uses this method.
(Source website)
Conclusion: this is the oldest and commonly used method, from this method employee
is thoroughly assessed by his supervisor. Even though the method is most commonly
used it is not free from bias. Some modifications are made in this method to overcome
from these problems.
Introduction: The employees are ranked from best to worst on some characteristics. The
rater first finds the employee with the highest performance and the employee with the
lowest performance in the particular job category and rates the former as the best and
latter as the poorest .Then the raters selects the next highest and next lowest and so non
until he rates all the employee in that group.
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There are 3 commonly used methods of ranking, namely alternation, paired comparison
and forces distribution. The first two methods are used when there is only a fiw employee
to be ranked, where as the forced distribution method is used in large companies.
I) Alternation Method: In this method the appraiser ranks his entire employee
from most valuable to lest valuable, based on their performance and
contribution to organization objectives.
This method is simply assigning rank to individual based on his past performance
and potential of development.
Sample format:
Column
Column I (Best)
I (Best) Column
Column II (Worst)
II (Worst)
1 1 . . . .
2 2 . . . .
3 3 . . . .
4 4 . . . .
5 5 . . . .
Disadvantage:
Its reliability and validity may be open to doubt.
It may be affected by rater bias or varying performance standards.
Size of the difference between individuals is not well defined.
1) Bajaj Tempo limited: India’s largest automobile producer which produces multi
utility vehicle, light capacity vehicle, in four wheeler, three wheeler and two
wheeler category extensively use this method asses its workers
2) BASF: the chemical company is the world’s leading chemical company which
supports pharmaceutical manufacturer use this method to asses its word force.
Conclusion: The main objective of this method is to segregate well performing worker
and poor performing worker, Employees who are got good ranking are get motivated
those receive lower ranking feel bad, only few employee who have positive attitude can
accept in a positive way.
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PAIRED COMPARISION METHOD
Introduction: This approach was designed to make the ranking process easier for the
superior and perhaps more reliable, especially when there are many people to rank.
Methodology: The Paired Comparison Method presents the supervisor with a series of
cards each of which contains only two subordinate’s names. The supervisor is thin asked
to choose which of these two persons is the high performer, final ranking is then
determined by counting how many times a given employee was choose as the better
performer.
Sample formant:
Pairedcomparison
Paired comparisonranking
rankingfor
foremployees
employeesinina amarketing
marketingresearch
researchunit.
unit.
Employeestotoranked:
Employees rank:
Leslie Moore Eddie Dorsey
Leslie Moore Eddie Dorsey
TinaLittle
Tina Little
Art Willis
Art Willis
Ratingcards
Rating cardsfilled
filledout
outbybysupervisor
supervisor
________Leslie
________ LeslieMoore
Moore ___________LeslieMoore
___________Leslie Moore _______Leslie
_______LeslieMoore
Moore
_______EddieDorsey
_______Eddie Dorsey __________Tina
__________ TinaLittle
Little ________Art
________ArtWillis
Willis
_______Tina
_______ TinaLittle
Little _________ArtWillis
_________Art Willis _______TinaLittle
_______Tina Little
_______Eddie
_______ EddieDorsey
Dorsey _________EddieDorsey
_________Eddie Dorsey ________Art
________ArtWillis
Willis
Finalranking
Final ranking
1.
1. Tina TinaLittle.
Little.
2.2. ArtArtWills.
Wills.
3. Leslie Moore.
3. Leslie Moore.
4.4. Eddie
EddieDorsey.
Dorsey.
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Advantage:
When employee number is less.
Simple to use
Avoids central tendency and other problems.
Disadvantage:
Rating may still not be precise
Time consuming.
In this method employee are simply compared to each other on total performance
rather than specific fob criteria.
Conclusion: Some companies using this method remove the employee from current
position and keep them in some other position. Rather than comparing his performance
with his colleague employees compare their salaries which adversely affect work
environment.
Introduction: The rater may rate his employees at the higher or at the lower end of the
scale under earlier methods. Forced distribution method is developed to prevent the raters
from rating too high or too low
Methodology: Under this method. The rater after assigning the points to the performance
of each employee has to distribute his rating in a pattern to conform to normal frequency
distribution.
Sample format Forced Distributions on a Bell- Shaped
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.
Advantage:
Disadvantage:
• In this method employee are placed in certain ranked categories but not ranked
with in the categories
• If one department has all extraordinary employee it would be difficult for rater to
decide who should be placed in the lower categories
• Difficult can also arise when the rater must explain why a individual placed in one
group.
1) Ford motor: Ford motor has used forced distribution grading system tat
resulted in many complaints. The HR journal “Wall street Journal”
discusses the Ford Motor informal system.
After years of use, Ford Motors Co. eliminated its grading on a curve
performance evaluation system. A number of current and former Ford
executive field lawsuits claiming the system is discrimination. Ford used a
procedure in which executive were graded as A, B, and C. Ten percent of the
manger being evaluate had to receive a “C” or unsatisfactory performance
grade. Manager who received a C were required to receive coaching and
counseling.
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The feeling among many mangers at Ford is that a quota system that forces
evaluators to rate at least 10 percent of those being rated as unsatisfactory is
causing morale problems. The Ford appraisal system was copied form
General Electric (GE) which had to deal with their own problems.
Conclusion: The key to this system is that the determined distribution must be followed
by rater, regardless of how well the employee performed. This system bas both pros and
cons and it is widely used by manufacturing sector.
Other performance appraisal focuses on past but forced ranking focuses exclusively on
the future. Forced ranking process usually only examine people at the top of the
organization
Methodology: Some companies in Fortune 500 practiced this method in this way.
The top leadership group analyzed five critical area
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Criteria for evaluation: - Their criteria for assessing are execute with excellence.
Passion for results, succeed with people and make tough decisions.
Organization level: - How far down in the organization would the ranking process
extend? And would this executive group also be included in the forced ranking
population, latter they decided and vice presidential; group and their direct report would
be included in the process.
Outcomes and consequences: - The question such as arises what will happen once the
ranking process is complete? What will we do with those who are assessed to be the
companies A player? More worrisome to the group what to do this group. They decide to
go like this to reverse development efforts for A player who would enormously benefit
both their fobs moving to another fob that he could handle in an outstanding way or
existed from the company in a dignified way.
Critics about forced ranking method: - Critics of the procedure argue that forced
ranking is discriminatory, subjective, divisive, arbitrary and unfair, actually its not true.
Fork, Conoco, and Microsoft have been hit with class action suits charging that their
ranking systems were used to illegally favour some employees over others.
The Microsoft suit alleges that the system, bolstering a good-old-boy mentality,
encourages white managers to favour their white friends against the organizations black
employees.
The Ford suit, conversely argues the opposite there the middle-aged white men suing
Fork argue that the companies diversity push has forced managers to disproportionately
assign white men to the bottom 10%
Conoco’s unusual suit the American plaintiff’s claimed citizenship discrimination,
arguing that the company illegally favoured Britons and almost all cases are dismissed in
respective courts
Critics also say that these programs run counter to the belief held by many, that almost
any worker is salvageable.
Companies in which the method is worked: - Companies that use a forced ranking
system require their manager to assign employee in to different categories based on both
past performance and leadership potential.
1) General Electric(GE): The company best known for the procedure, sorts
employees in to three groups A top 20% on whom rewards, promotion & stock
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options are showered a high performing middle 70% with good future, and a 10%
are not likely to stay. GE removes these 10% and deep removing it every year.
Highly admired companies like, Microsoft, Cisco system, Hewlett-Packard and
Sun Micro systems
2) Hewlett-Packard uses a 1-5 scale with 15% receiving the best grade of 5%
receiving other grades
3) Microsoft uses a 2.4-5 scale
4) PepsiCo. Uses a quartling approach where managers allocate their troops in to
one of four quartiles.
5) All 18,000 of Ford Motor’s managers undergo this process. These managers are
divided into groups of 30 to 50 then rated. For each groups 10 percent have to get
and A, 80 percent B, and 10 of C. Anyone receiving a C is restricted from a pay
raise and two consecutive years of a rating result in either a demotion or
transmission.
Checklist Method
The checklist is a simple rating technique in which the supervisor is given a list of
statements or works and asked to check statements representing the characteristic and
performance of each employee.
Disadvantages:
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Companies in which the method is used:
Conclusion: This is easiest used along with other methods is very convenient tool to
assess his employee by his/her immediate supervisor. A wise knowledge is needed to
prepare checklist.
3) Weighted Checklist:
Sample format:
Check all those statements that are accurate descriptions of the behavior and activities
of______________ for the period from ___________ to ________
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Advantage:
Disadvantage:
• It is expensive to design, since the checklist for each different job in the
organization must be prepared
• Time consuming.
1) Text port Industries, Rajgopal nagar, Bangalore: A Garment industry uses this
method to asses its worker( Source: Student survey)
Conclusion: In this method the weight and relative importance of the statement is hided,
employee only tick the statement which is relevant to him. So from this employee is
assessed which reduces bias information, It is very widely used traditional method.
Forced-Choice Method:
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Sample formant
Descriptions of Attribute
Rank
The employee is very sociable and normally gets along well with colleges
_________ The employee is a fast decision-maker
__________
The employee is open to feedback and criticism
_________
The employee is a good team-player
_________
The employee is motivated by rewards
________
The employee exhibits good leadership skills
__________
Sample format 2:
Instructions: Rank from 1 to 4 the following sets of statements according to
how they describe the manner in which (name of the employee)
Performs the job, A rank of 1 should be used for the most descriptive
statement, and a rank of 4 should be give for the least descriptive. No ties are
allowed.
________Does not anticipate difficulties.
______ Grasps explanations quickly
______ Rarely waste time
______ Easy to talk to
_______ A leader in group activities
_______ Wastes time on unimportant things.
________Cool and calm at all times.
________ Hard worker.
Advantage:
• The elements of subjectivity in this mehod are minimized as the appraiser has
to assign unique rank for each of the attribute.
• Eliminates or greatly reduces the raters bias, specifically the tendency to
assign all high or low rating.
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Disadvantage:
• Difficult to construct and validate the statements under forced choice method
it may be time consuming to prepare statement that suit the demands of a
particular job.
Conclusion: Rater is not allowed to rank his subordinate based on his wimps and
fancies, personal prejudice, halo effect reduced in this method, it is suitable asses clerical
worker and supervisor, HR depart wisely use this method to asses its employees.
2) CEAT: CEAT is among India’s top tyre companies, with strong presence in the
domestic and export market it recently acquired Rado tyres helped it become
leading Indian tyre exporters to USA & German uses forced choice method to
asses its employees.
Introduction: Appraiser note down in a note book how well apprise done and
handled in critical incidence in this method. Which also provide documentation for
annual appraisal process.
Sample formant 1:
August 12: Girish stayed eight minutes over on his break during the busiest part
of the day. He failed to answer three store manager’s calls on the intercom to
report to cash registrar 4 immediately.
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Advantage:
• In this method rater considers the records of performance rather than the
subjective points of opinion for example.
Disadvantage:
• What constitutes a critical incident is not defined in the same manner by all
raters.
• Rewarding events continually over a period of time may be resented by the
raters.
• Time consuming.
Conclusion: Appraiser not down as and when incident happens, it is a most reliable
source asses an individual compare to other method. Information gathered form this
method used for both annual appraisal and PA interview.
Introduction: This method requires the manager to write a short essay describing each
employee’s performance during the rating period. This format emphasizes evaluation of
overall performance, based on strengths/weakness.
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Methodology: Under this method, the appraisers prepare documents describing the
performance of the employee questions or guidelines are provided to the appraiser. Based
on which he analyses and describes the employees performance. In some organization the
essay is combined with another form such as graphic rating. In this scale essay
summarize the scale elaborates on some of the ratings or discusses additional dimensions
that are not on the scale.
Sample formant:
Marge has been absolutely dynamic in perking up the San Antonio region’s sales. She
has increased sales an average of 8 percent for the last 11 months, while cutting costs of
acquiring a sale by 8000 Rs
The customer respects her work and style. She also trained three new sales
trainees in the use of the new spreadsheet inventory control system.
Advantage:
• The essay technique minimizes supervisory bias and the halo effect.
• This method is flexible.
Disadvantage:
1) Arvind Mills Limited: An Indian Multinational; has grown to become one of India’s
most diversified business houses with a significant presence in the textiles, they have
an effective PMS, which is a combination of MBO and “Essay” type.
2) Wheels India Ltd: Wheels India is promoted by TVS group and was started in the
early 60’s to manufacture automobile wheel. Today wheel India has grown as a
leading manufacturer of Steel Wheels for different type of vehicles. It has three
plants one in Padi, Pune and Rampur having 1400 employees uses essay technique to
appraisee.
3) Bata: A leading manufacturer and retailer of footwear. Women’s shoes, men’s
shoes, the company many plants across the words. In India in its plants it uses essay
appraisal method.
Conclusion: Result of this method only depends o a skilled writer. A skilled writer can
write a rosy picture and it is not free from personal bias, appraiser can change or write
anything he wish.Morever this method solely cannot be used. This can only support
other technique result
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Group Appraisal
Methodology: This group consists of the immediate supervisor of the employee to other
supervisor who have choose contact with the employee’s work, manager or head of the
department and consultants. In this method supervisor may act as the coordinator for the
group activities. This group uses any or multiple techniques discussed earlier, the
supervisor enlightens other member abut job characters, etc. The group appraisers the
employee and compare his performance with set standards.
Advantages:
Disadvantage:
Confidential Reports
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Methodology: It is a Traditional method, under this method superior appraises his
subordinates based on his observations, judgments and intuitions. The supervisor
keeps his judgments not allow the report confidentially. In other words, the superior
does not allow the employee to know the report and his performance.
Advantage:
• Employee behavioral traits are documented as and when they occur and make
a PA process a continuous process.
• Provide documented during Appraisal.
Disadvantage:
MODERN METHODS
1) Six to ten performance are identified and defined by raters and ratees ( a group is
selected to construct the form)
2) The dimensions are anchored with positive and negative critical incidents.
3) Each rate is then rated on the dimensions.
4) Rating is fed back using the terms displayed on the form.
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Usually two to four days are needed to develop BARS.
Sample format 1:
Sample formant 2: This formant present one performance dimension for engineering
competence. For example anchor statement for a rating of 9 is “ This engineer applies a
full rage of technical skills and con be expected to perform all assignments in an
excellent manner”. The rater would read the anchor & place an X at some point on the
scales for the ratee.
A BARS for Police officer.
Job knowledge: Awareness of procedures laws , and court rulings and changes in them.
Very high
Could be expected to follow correct
procedures for evidence preservation at the
scence of crime.
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Could be expected to know he could break
down a locked door while in hot pursuit and
thus arrest a fleeing suspect
Very low
Ratee__________ Ratee_________
Advantage:
Both the manager and the employee are actively participate in the appraisal process. This
increases the relevant of the system to each job and also improves its acceptance by
employee.
Disadvantage:
It is tedious and needs considerable time and commitment to develop.
Conclusion: This method was developed in the hope that they would yield more objective
rating than other rating scales, formants because they were behaviorally based. And also
they provide some in-depth feeling of employee.
Methodology: In BOS Appraisal 25 behavior items are identified. The maximum score is
125 (25 X 5), and the minimum score is 25. Supervisors with scores above 115 are
considered excellent performers, while a score in the 25 to 35 range is considered
extremely poor. Each firm using a BOS must determine the meaning and im0lortance of
the total scores for its ratee.
Advantage:
Both supervisor and subordinates are involved in the development of the scales, the
scales are better received.
It helps focus manager attention on important critical incidents for effective job
performance and allows superior discuss good & bad performance with ratee and make
feedback most acceptable.
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Conclusion : This method is developed in the hope that they would yield more objective
rating than other rating scale formants ( most notably graphice rating scales ) because
they are behaviourly rank based this mehtos is suitable to appraising first lin supervisor.
Assessment centers:
Methodology: Various activities that would normally form a part of the assessment are
Group Exercise” To test qualifies of leadership, teamwork
Presentations: To test communication skills, domain knowledge.
Writing exercise and case studies: To test analytical abilities, time management.
Psychometric Tests: To identify personal attribute.
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Role play: To test adaptability, influencing skills.
Advantage:
• The exercise and tests can be tailored to the requirements of the organization.
• Research evidence proves that people chosen by this method prove better than
those chosen by other methods.
• All assesees get an equal opportunity to show their talents and capabilities and
secure promotion based on merit; it improves morale of promising candidates
working in less important positions.
Disadvantages:
• Time consuming and costly to operate.
Introduction: This technique has not developed and is still in the transition stage. This
method deals with cost and contribution of human resources to the organization.
Methodology: In his method, cost of the employee includes cost of manpower planning,
recruitment, selection, induction, placement, training, development, wages etc. Employee
contribution is the money value of employee service which can be measured by labor
productivity or value added by human resources.
Employee performance can be taken as positive when contribution is more than the cost
and performance can be viewed as negative if cost is more than contribution.
Sample Formant:
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Conclusion: This method even though necessary for organization but it treats human as
an economical man and it affects adverse on employee performance.
1) Steel Authority of India Ltd (SAIL): is the leading steel madding company in
India. It is a fully integrated iron and steel makers producing both basic & special
steel for domestic constructions, uses this method to asses its employees.
2) ITC Limited: Which pioneer in cigarette, vagitable oil, extensively use this
method to asses its work force.
3) Bank of Baroda: Pioneer in banking sector use this method appraise its workers
quarterly.
Introduction: MBO is more than just an evaluation program and process, the main
aspects of MBO are clear and well-defined goals, a definite time-span to achieve the
goals, on action plan and finally, timely and constructive feedback. Also called goal
setting approach, these goals are set with the active participation of the employee and his
supervisor.
1) Objective setting: Set by manager Y^& employee with in the context of overall
goals for next calendar year.
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Sample formant: Examples of MBO Evaluation objectives.
Advantage:
• Both supervisor and subordinates set goals; results are accepted by subordinates.
• Hence rater are involved in process this obviously enhance their morale.
• This discus about subordinate’s performance centered on results.
Disadvantage:
1) Arvind Mills Ltd: The Arvind Mills Ltd. Is the flagship company worth Rs 20
bn of Lalbhai group found in the year 1908 with a significant presence in
textiles ready-to –wear clothes uses performance management as combination
of MBO and essay type.
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2) American Manufacturing find that some MBO programs are to result oriented
and insufficiently process. Oriented. W.Edward Deming has argued that focus
on numerical goals, managing by results & taking immediate action on error has
led to dysfunctional management style in America Corporation.
Conclusion: MBO is most suitable and commonly used for managers and
professionals. The MBO should be viewed also as impetus for changing the system.
Psychological Appraisal:
Introduction: Large organization uses this full time industrial psychologist, when
psychologists are used for evaluation they assess on individuals future potential and
not past performance. The appraisal normally consists of in-depth interviews,
psychological test discussions with supervisor and review of other evaluation.
Advantage:
• From this method in-depth feeling of employee could be known
• Rather than the past performance it concentrates on potential performance by
employee.
Disadvantage:
• Time consuming & expensive to hire psychologist.
Objectivity:
• Initially it started as fact finding self-development technique perhaps in future
it linked to reward system.
• To find the personality of each manager his talents, behavioral traits, tempers
and other work related qualities.
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Methodology: The methodology involves collecting responses through standard
assessment from about a manager from his bosses, peers and subordinates. They cover
several parameters of performance as well as behavior.
The forms are designed in a way to elect one of the three responses to the subject’s
rating on the parameter, strength, weakness and improvement required. Data collected is
analyzed and graphed by computer. The responses are presented collectively to the
appraiser. Depending on the interpretations of the data and finding’s, counseling sessions
are held to solve the specific problem and the weaknesses are identified by 360-degree
appraisal.
Advantage:
• The organization gains from heightened self awareness of the top managers. If
reveals strength & weakness of their managing style.
• The gap between self-assessment and the views of one’s colleges is reduced.
• Empowerment is facilitated.
• Inflexible managers are forced to imitate self-change.
Disadvantage:
• The system may be used to humiliate people.
• Responses from the people tend to biased.
1) Hewlett-Packard (call centre), Bangalore: Use this method to asses its skilled
workforce (Source: student survey)
3) Corporations like General Electric India ( GE), Reliance Industry Ltd (RIL),
Crompton graves, Godrej soaps, Wipro, Infosys, Thermanx and Thomus cook,
HCL, Infosystems, Tata Infotech, Ashok Leyland and Asian paints, Ponds,
Colgate-Palmolive uses this method to asses its employees.
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teams. Wipro has adopted competency route to leadership development with
focus on people.
Introduction: The Balance Scorecard Approach (BSC) concept developed in the early
1990’s by Robert.S. Kalpan and David Nerton. The BSC is revolutionary tool that
motivates staff to make the organization’s vision happen. It doesn’t more than just
measure performance. It is a management system that focuses on the efforts of people
through out the organization toward achieving strategic objectives. It gives feedback
on current performance and targets future performance levels. Putting in other way,
the balanced scorecard converts an organization vision and strategy in to a
comprehensive set of performance and action measures that provide the bases for a
strategic measurement and management system.
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2) Cascading objective and measure through the various level of organization
And some MNC’s such as Unilever, Fed Express uses this method.
Some software are available for BSC implementation one of them is eHalogen software
companies such as Truro (oil industry), O’SULLIVAN CREEL LLP (full- service and
accounting & consulting firms, Oil States (manufacturer of diversified products for the
oil industry changed their traditional appraisal system to BSC.
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Conclusion: It is a innovative technique of PMS it includes financial as well as non-
financial out comes. Since the introduction BSC evolved as a result of improvisations to
suits the needs of different users. First generation of BSC focuses on evaluating
performance, second as a management system & third as a framework for organization
change.
Ericsson and Boeing have acquired the PCMM certification. In India Wipro and Sitara
Technologies have had the honor of achieving PCMM level 5
Introduction: To drive employee performance to high-level and reward them for meeting
or exceeding performance goals, are growing in popularity across organization, they are
not only used in traditional, production oriented organization or sales professional but
also in service and public sector.
Methodology:
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Companies which use this method:
At GE (general Electric): workers get paid for performance: they are paid bonuses when
they achieve challenging goals instead of tenure of service.
The GE medical system group has a quick thanks program that lets employee nominate
colleagues for an exceptional performance.
At Lincon Electric incentive plan has been the model for other companies for years. The
pressure to perform is great at Lincon.
Conclusion: PFP is know a days widely used by manufacturing sectors and IT sector, no
doubts that it create pressure on employee but its essential for any organization to achieve
its objectives in a determined time span.
Benchmarking:
Introduction: This is a form of goal setting though it is meant to be more inclusive and
is often portrayed as part of comparing work and service methods against the best
practices and outcomes for the purposes of identifying changes stated as specific goals
that well result in higher-quality output.
Benchmarking incorporates the use of goal setting to set targets that are pursued,
identified, and then used as the basis for future action.
The Benchmarking process involves looking both inside an outside the organization for a
way of improving performance.
Companies using this method: IBM and Magnavox, IBM benchmarked its efforts in
comparison to Xerox, Motorola, 3M, Heweltt-Packard,
Magnavox benchmarked a series of HR practices.
Introduction: May manager are strong in problem but are much weaker in problem
analysis, or diagnosis. The ACHIEVE model was designed by Paul Hersey and Marshall
Goldsmith to help managers determine why performance problem may have occurred and
then developed change strategies aimed at solving those problems.
Methodology: In using the ACHIEVE model, the manager evaluates how each factor
will affect the current or potential performance of followers for a given task. Then the
manager should take the steps that “ fit” the unique cause(s) of the performance problem.
The seven factors in the ACHIEVE model, along with typical problem solving
alternatives are listed below.
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A-Ability (knowledge and skills): The manager study follower knowledge, skill and
experience to complete the task successfully, if the problem, solutions may include
specific training, coaching, formal educational courses.
E-Environment: This term refers to the external factors that influence performance such
as competition, chanting market condition.
Conclusion: ACHIEVE model is totally different from all other models it focuses mainly
on manager what has to take the steps during PMS process, still the process is in
developing process.
Xerox: Provide a core set of metrics for use across the organization.
Toyota: Focus performance reviews on goals gather than numbers to ensure employ
alignment
Toyota: Measure newer reps more frequently to concentrate coaching effort.
Fiber Mark: Conduct frequent review of employee performance.
Xerox Corporation: Promote manger-rep coaching sessions.
Dupont: Monitor rep’s calls periodically to facilitate coaching.
Unilever: Design a scorecard to evaluate performance and target improvement
opportunities.
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