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 On the job Methods CoachingJob Rotation Multiple Management

Off the job Methods Off the Job Methods SimulationCase Method Incident Method Role Play In-Basket Exercise Business Games Transactional Analysis Sensitivity Training ConferencesLectures

Unit - 2 Performance 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 efficiency  maintaining organizational control.  concrete and tangible particulars about their work  assessment of performance  mutual goals of the employees & the organization.  growth & development  increase harmony & enhance effectiveness  Personal development  work satisfaction  involvement in the organization. According to: Aims at:

Objectives of Performance Appraisal Goals are set at the beginning of appraisal period The targets motivate employees to perform better Setting targets and goals as performance standards Evaluation helps to identify the strengths and weaknesses of employees It also helps to determine the achievement of pre-set goals and targets Evaluating Employee Performance Identifies the areas for improvement and development Identifying Training and Development needs Rewarding Performance Improving Performance

Appraisal Process Determination of standards of performance based on organisational objectives and job description Measurement of employee performance against the pre determined goals and objectives Continuous process of measurement and feedback Communicating the results of appraisal to the employee Implementing appraisal system according to the organisational policies

The Appraisers Self-Appraisal Supervisors Peers Customers/ Clients Subordinates

Performance Appraisal Methods Traditional Methods Modern Methods

Traditional Methods 1.Management by objectives or Goal Setting 2.Graphic rating scale 3.Work Standards approach 4.Essay Appraisal 5.Critical Incident Method 6.Forced Choice rating method 7.Point allocation method 8.Ranking Methods ▫Paired Comparison ▫Forced Distribution 9.Checklist

Modern Methods 1.Behaviorally anchored rating scale (BARS) degree performance appraisal 3.Team Appraisals 4.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 SSet organizational goals DDefining performance target PPerformance review ffeedback

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 interest In work: consistent complainer No interest In work: consistent complainer Careless: In-different Instructions Careless: In-different Instructions Interested in work: Accepts opinions & advice of others Enthusiasti c about job & fellow- workers Enthusiasti c 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 Takes decisions promptly Take decisions without consultation

CriteriaRating 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 Appraisal Name Job Title Department Date of Review Age Years in present job Section I Appraisal Of Performance Note to Appraiser 1.Appraisal must cover the period of the preceding 12 months 2.Consideration to every function & responsibility of the job 3.An objective factual assessment of an employee’s improvement or deterioration Section IIPromotability & Potential Promotability 1.Promotion now 2.Within 2 years 3.Within 5 years 4.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% poorBelow average goodExcellent Force distribution curve Forced distribution method

Group appraisal method

PerformancePointsBehavior Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Good6 Can expect to initiate creative ideas for improved sales. Above average5 Can expect to keep in touch with the customers throughout the year. Average4 Can manage, with difficulty, to deliver the goods in time. Below average3 Can expect to unload the trucks when asked by the supervisor. Poor2 Can expect to inform only a part of the customers. Extremely poor1Can 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 WWipro IInfosys RReliance Industries MMaruti Udyog HHCL Technologies WWyeth Consumer Health (WCH)

Issues in appraisal system Appraisal Design 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