Management Development

Management Development

•Management Development relates to the development and growth of the employees in an organisation through a systematic process.

Objectives of Management Development•Improving the performance of managers•Identifying the talents in employees and

to develop them to make them capable of handling managerial tasks.

•Motivating and Updating managers from time to time

•Improving the analytical and logical skills of employees.

Management Development Methods•On the job methods•Off the job methods

On the job methods

Off the job Methods

Unit - 2Performance Appraisal

Performance Appraisal

•It is the process of evaluating the performance of an employee and communicating the results of the evaluation for the purpose of rewarding or developing the employee.

Objectives of Performance Appraisal

Employee Organization

measuring the efficiencymaintaining

organizational control.

concrete and tangible

particulars about their

workassessment of

performance

mutual goals of the

employees & the organization.growth & developmentincrease harmony &

enhance effectiveness

Personal development work satisfaction involvement in the organization.

According to:

Aims at:

Objectives of Performance Appraisal

Appraisal Process

The Appraisers

•Self-Appraisal•Supervisors•Peers•Customers/ Clients•Subordinates

Performance Appraisal Methods•Traditional Methods•Modern Methods

Traditional Methods1. Management by objectives or Goal Setting2. Graphic rating scale3. Work Standards approach4. Essay Appraisal5. Critical Incident Method6. Forced Choice rating method7. Point allocation method8. Ranking Methods

▫ Paired Comparison▫ Forced Distribution

9. Checklist

Modern Methods

1. Behaviorally anchored rating scale (BARS)

2. 360 degree performance appraisal3. Team Appraisals4. Balanced Score Card method

Management By Objectives (MBO)• Main aspects of MBO :

▫Clear and well defined goals▫A definite time span to achieve the goals▫Timely and constructive feedback• MBO is most commonly used for managers and

professionals• The goals are set with the active

participation of the employee and his supervisor.

• The goals have to be in alignment with the organisational goals and have to contribute to their achievement

MBO Process

Set organizational goalsDefining performance targetPerformance reviewfeedback

Graphic rating method

•Used to rate the employees on factors like quantity and quality of job, job knowledge, dependability, punctuality, attendance etc.

•Graphic Rating Scale includes numerical as well as written descriptions

Graphic or Linear Rating Scales Attitude

No interestIn work: consistentcomplainer

Careless: In-differentInstructions

Interested in work: Accepts opinions & advice of others

Enthusiastic about job & fellow-workers

Enthusiastic opinions & advice sought by others

Decisiveness

Take decisions in consultation with others whose views he values

Slow to take decisions

Take decisions after careful consideration

Takes decisions promptly

Take decisions without consultation

0 5 10 15 20

0 5 10 15 20

Criteria Rating

1.Regularity on the job Most Least

Forced choice method

•Always regular•Inform in advance for delay•Never regular•Remain absent•Neither regular nor irregular

Staff AppraisalName . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present jobSection I Appraisal Of Performance

Note to Appraiser1.Appraisal must cover the period of the preceding 12 months2.Consideration to every function & responsibility of the job3.An objective factual assessment of an employee’s improvement or deterioration

Section II Promotability & Potential

Promotability1.Promotion now2.Within 2 years3.Within 5 years4.Unlikely to qualify for promotion

Section III Career Development

Section IV Notes on Interview with employee

Section V Comments on & Endorsement by Reviewing Authority

Specimen of Staff Assessment Form [Descriptive Essay Type]

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

No. of employees

10% 20% 40% 20% 10%

poor Belowaverage

average good Excellent

Force distribution curve

Forced distribution method

Group appraisal method

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 by the 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

360 degree performance appraisal

These companies are using 360 Degree Performance Appraisal Method

Examples of 360 degree performance appraisal method

WiproInfosysReliance Industries

Maruti UdyogHCL TechnologiesWyeth Consumer Health (WCH)

Issues in appraisal system

Appraisal Design

Formal and informal

Whose performance?

Who are the raters?

What problems?

How to solve?

What to evaluate?

When to evaluate?

What methods?

Pitfalls in Performance Appraisal• Halo Effect• Leniency Effect• Stringency Effect• Recency Effect• Primacy Effect• Central Tendency Effect• Culture• Stereotyping• Perpetual Set• Fundamental Attribution