Enrollment No.

MBISMCT10716140
d

MBA Information Systems 1st Year - Assignment

Annamalai University

4: HUMAN RESOURCE MANAGEMENT

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Enrollment No. MBISMCT10716140

Question 1: What are all the roles of HR Manager? Explain line and staff function.
Answer:

HUMAN RESOURCE MANAGER

Introduction
Henry Ford the pioneer in the field of management state: "Take out my building, take out my
machines and all capital but leave my men with me, I will become Henry Ford again." This
statement of Henry Ford highlights that human resources in an organisation plays a crucial role.
In fact, management of human resource is the most important and central because proper or
improper use of other resources depends upon human factor. In other words, without the
cooperation of human resources it is not possible to achieve the objectives of an organisation.
The human resources refer to the knowledge, skills, abilities, values, aptitudes and beliefs
possessed by its workforce in the organisation. In fact competent and skilled workforce
determines the efficiency and effectiveness of the organisation. Other things remaining the same,
an organisation with competent workforce is likely to be more effective in comparison to the
organisation low in this factor. In the words,
"Most business are alike except as to people."- Alfred P. Solan
So, achieving human resources excellence leads to organisation's excellence.
HRM as planning, organizing, directing, controlling of procurement, development,
compensation, integration , maintenance and separation of human resources to the end that
individual, organizational and social objectives are achieved. - Edwin Flippo defines
HR Manager is one of the most important key to open a lock hanging on the door of success in
an organisation. If an HR Manager is efficient enough to handle and to take out best from his
team members any oragnisation can achieve more from his target goals. HR manager plays an
very important role in hierarchy, and also in between the higher management and low level
employees.

Qualities of HR Manager
A successful HR Manager must have the following qualities to work efficiently:Creativity: Creativity is what separates competence from excellence. Creativity is the ingredient
that pulls the different pieces together into a cohesive whole, adding zest and appeal in the
process.
Structure: The context and structure we work within always have a set of parameters,
limitations and guidelines. A stellar manager knows how to work within the structure and not let
the structure impinge upon the process or the project. Do this to expand beyond the boundaries.
Intuition: Intuition is the capacity of knowing without the use of rational processes; it's the
cornerstone of emotional intelligence. With stronger intuition, the one will be stronger manager.
Knowledge: A thorough knowledge base is essential. The excellent manager lives from a
knowledge base, without having to draw attention to it.
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Commitment: A manager is committed to the success of the project and of all team members.
It's the manager's commitment that pulls the team forward during trying times.
Being Human: Employees value leaders who are human and who don't hide behind their
authority. Managers who respect and connect with others on a human level inspire great loyalty.
Versatility: Flexibility and versatility are valuable qualities in a manager. Beneath the flexibility
and versatility is an ability to be both non-reactive and not attached to how things have to be.
Flexibility and versatility are the pathways to speedy responsiveness.
Lightness: A stellar manager doesn't just produce outstanding results. Lightness complements
the seriousness of the task at hand as well as the resolve of the team, therefore contributing to
strong team results and retention.
Discipline/Focus: Discipline is the ability to choose and live from what one pays attention to.
Discipline as self-mastery can be exhilarating Role model an important leadership quality.
Big Picture, Small Actions: Excellent managers see the big picture concurrent with managing
the details. Small actions lead to the big picture; the excellent manager is skilful at doing both:
think big while also paying attention to the details.

Scope, Responsibilities and Duties of HR Manager

HR manager or human resource manager has many roles and responsibilities in the corporate.
From hiring people to employee retention, the HR manager responsibilities can never end or
reduce. He/she has a huge obligation towards the company as it is essential to identify the talent
of each employee, utilize their talents, and place them in a position best suited for them. Apart
from these, we have listed few more HR manager roles and responsibilities below.
1. Recruitment Procedure;
2. Hiring Employees;
3. Training & Developing Employees;
4. Organization Development;
5. Bridge for Communication;
6. Employee Performance
7. Consultation for Employees;
8. Advocating Company Policies;
9. Wages and Benefits;
10. Teamwork and Team Spirit;
11. Relations Amongst Employees;
12. Significance of Strategies;
1. Recruitment Procedure: One of the initial responsibilities of HR manager is recruiting
efficient employees for the company that will deliver to the best of their abilities. As the
recruitment procedure can be quite expensive for the company, it is imperative not to make an
error during the process.
2. Hiring Employees: Hiring is also one of the most important duties of the HR manager, be it
long term or short term. Every individual has unique set of talents, educational background, and
skills that can benefit an organization. Keeping that in mind, a HR manager should possess an
eye for searching these talented people for the company's growth.
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3. Training & Developing Employees: The new employees or the old employees entering new
departments need to undergo employee training for their specific roles. The HR manager has to
take care of the training needs of employees, so that no compatibility issue arises with the work
assigned later on.
4. Organization Development: This is again one of the key areas where the HR manager has to
execute to the fullest. Development of an organization is a responsibility which includes peculiar
organizational culture, making the team more effective by introducing events intervening
employees in a formal and informal way; thus impacting the business. Promoting employees'
growth and maintaining a congenial atmosphere at work increases the overall growth of the
company.
5. Bridge for Communication: A HR manager holds a significant role in reducing the gap
between the employees and the employer. Communication in terms of change management, work
relationships and environment, interviews and relevant questions, taking actions regarding
discipline, resolving conflicts.
6. Employee Performance: HR manager evaluates performances of the employees and
determines the appropriate wages, bonuses, employee performance appraisals, and wage
increase. Assessment of employee performance works in both the company's and the employees'
advantage, making the HR manager responsibilities increase furthermore.
7. Consultation for Employees: In case of any issues or misunderstandings, the HR manager
has to come into play and neutralize the scenario. HR manager also suffices the role of being a
mentor or helping employees cope up with bad bosses. He/she helps inspire and motivate
employees and builds their spirits to enhance their performance and productivity.
8. Advocating Company Policies: HR manager can create policies if and when there is
confusion regarding behaviour, handling situations, harassments and sexual harassments, making
rules that are standard to other organizations, and for the current organization; along with
considering fair treatment of employees.
9. Wages and Benefits: HR manager has the power to decide the wages offered to an employee
or to a new recruit. Human resources management decides the break-up of salary and benefits the
employee can avail during the tenure of work with the organization. Benefits may include travel
allowances, HRA (Health Reimbursement Arrangements), medical, etc.
10. Teamwork and Team Spirit: HR manager helps in building a team effective for working
under circumstances and makes sure that right people are included in the team, minimizing
conflicts and increasing productivity.
11. Relations Amongst Employees: One of the fundamental HR manager responsibilities and
duties is to implicate fair labour laws and policy, hiring disabled people. He should work in
congruence with the US Department of Labour, Family and Medical Leave Act, managing paid,
casual leaves and so on. Treating each and every employee fairly in the company brings a
positive attitude in them which help in the growth of organization.
12. Significance of Strategies: The HR manager designs strategies complementing the long term
needs and growth of the company. The needs of the employees and the demands of a particular
organization should be met in unison. He not only aligns the business goals, but also
communicates effectively to accomplish the company's business plans and overall objectives.
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Other than the above mentioned HR manager responsibilities, there are various other roles and
HR manager duties in an organization like, security, handling travel and tickets, records
management, etc. The HR manager is the soul of the organization. He plays a major role in the
development and growth of employees, along with the company as a whole.

Role of HR Manager
Human Resource is one of the most important function of management. So, a human resource
manager plays a vital role as he is responsible for the execution of the human resource functions.
The main role of HR managers are:
1. Humanitarian Role
2. Counsellor
3. Mediator
4. Spokesman
5. Problem Solver
6. Change Agent
7. Management of Manpower Resources
1. Humanitarian Role: Reminding moral and ethical obligations to employees.
2. Counsellor: Consultations to employees about marital, health, mental, physical and career
problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and
groups or management.
4. Spokesman: To represent the company in Media and other forums because he has better
overall picture of his companys operations.
5. Problem Solver: Solving problems of overall human resource management and long-term
organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing
organizational development programs.
7. Management of Manpower Resources: Broadly concerned with leadership both in the group
and individual relationships and labour-management relations.

Staff and Line Function of HR Manager

HR: No More a Staff But a Line Function- Sidharth Nahata & K. Snehapriya
"All managers are, in a sense, HR managers, since they all get involved in activities like
recruiting, interviewing, selecting, and training."- Gary Dessler
HR managers are, in most of the cases even now in this modern world, generally staff managers.
They are responsible for advising line managers (like those for production and sales) in areas like
recruiting, hiring, and compensation.
The human resource department provides this specialized assistance. Thus, an HR manager will
perform three distinct functions: 5

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1. A Line Function: An HR manager possesses a line authority over his own department to
accomplish the task and roles assigned to each employee of the department. And since the
majority of the decision is trickled down from the corporate level, he actually exudes such
power. His suggestions also are taken as orders.
2. A Coordinative Function: An HR manager is also a coordinator of all the decision, activities
in the personnel area. This is referred to as functional control. Whatever policies, procedures and
objectives are set for the HR manager implements on employees in the organization.
3. A Staff Function: This is basically an advisory role played by the manager whereby he only
assists line managers, but that does not mean his advice shall be taken finally. It all depends on
the discretion of the line manager. Such a function involves assisting on areas such as training,
evaluating, rewarding, counselling, promoting, and firing of employees, etc. Many a times, HR
managers also update the line managers as well as top management regarding the current trends
and new methods of solving problems.

HR Manager Activities Between the Line and the Staff Duties

Department Supervisors (Line) Personnel Specialists (Staff)
Activities
Activities
Recruitment
Selection

& Assist job analyst by listing specific

duties and responsibilities of the job
in question and explain to HR future
staffing needs and sorts of people
needed to be hired.
Describe "human requirements" of
job so HR can develop selection tests
Interview candidates and make final
selection decision

Training
Development

& Orient employees regarding the

company and job and instruct and
train new employees.
Evaluate and recommend managers'
developmental activities.
Provide the leadership and
empowerment that builds effective
work teams.
Use the firm's appraisal forms to
appraise employee performance.
Assess subordinates' career progress
and advise them regarding career
options.

Write job description and job

specification based on input from
department supervisor. Develop
personnel plans showing promo
table employees.
Resorting of qualified applications.
Conduct initial serving interviews
and refer feasible candidates to
department supervisor.
Prepare training materials and
orientation documents and outlines.
Advise CEO regarding
development plan for managers
based on CEO's stated vision of
firm's future needs.
Providing information regarding
how to institute and operate quality
improvement programs and team
building efforts.
Develop performance appraisal
tools and maintain records of
appraisals

Enrollment No. MBISMCT10716140

Compensation

Assist HR by providing information

regarding the nature and relative
worth of each job to serve as the
basic for compensation decisions.
Don the nature and amounts of
incentives to be paid to subordinates.
Decide on the package of benefits
and services the firm is to pay

Labor Relations

Establish the day-to-day climate of

mutual respect and trust needed to
maintain healthy labour management
relations.
Consistently apply the terms of the
labour agreement.
Ensure that the firm's grievance
process is functioning in a manner
consistent with the labour agreement
and make final decisions on
grievances after investigating same.
Work with HR in negotiating the
collective bargaining agreement

Employee
Security & Safety

Keep the lines of communication

open between employees and
managers so employees are kept
abreast of important company
matters and have a variety of vehicles
they can use to express concerns and
use to express concerns and gripes.
Sure employees are guaranteed fair
treatment as it relates to discipline,
dismissals and job security.
Continually direct employees in the
consistent application of safe work
habits.
Prepare accident reports promptly
and accurately.

Question 4:
7

Conduct job evaluation procedures

aimed at determining relative
worth of each job in the firm.
Conduct salary survey for same job
type in the market.
Serve as a resource in advising line
management regarding financial
incentives and pay plan alternatives
Diagnose underlying causes of
labour discontent with an eye
toward anticipating with the sorts
of moral and lead to unionization
efforts.
Train line managers regarding the
interpretation of contract terms and
the legal pitfalls to be avoided
during the union organizing effort.
Advise managers regarding how to
handle grievances and assist all
parties in reaching agreement
regarding grievances
Advise line management regarding
the communication techniques that
can be used to encourage upward
and downward communication.
Develop a fair treatment process
and train line managers in its use.
Analyze jobs to develop safe
practice rules and advise on design
of safety apparatus such as
machinery guards.
Promptly invest accidents analyze
causes, make recommendations for
accident presentation and submit
necessary forms to occupational
safety and health administration

Enrollment No. MBISMCT10716140

a) Write short notes on:
i. Collective bargaining
ii. Trade unions
b) What are the performance appraisal methods? Explain.
Answer: (a)

i. Collective bargaining
Introduction
Collective bargaining generally includes negotiations between the two. Collective bargaining
consists of negotiations between an employer and a group of employees that determine the
conditions of employment. Often employees are represented in the bargaining by a union or other
labour organization. The result of collective bargaining procedure is called the collective
bargaining agreement (CBA). Procedural agreements deal with the relationship between workers
and management and the procedures to be adopted for resolving individual or group disputes. A
collective bargaining process generally consists of four types of activities1. Distributive bargaining;
2. Integrative bargaining;
3. Attitudinal restructuring; and
4. Intra-organizational bargaining;

1. Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the
economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one
partys gain is anothers loss. This type of bargaining is also known as conjunctive bargaining.

2. Integrative bargaining: This involves negotiation of an issue on which both the parties
may gain, or at least neither party loses. This is also known as cooperative bargaining.
3. Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or
distrust, friendliness or hostility between labour and management. It develops a bargaining
environment and creates trust and cooperation among the parties.
4. Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a
type of manoeuvrings to achieve consensus with the workers and management.

Characteristics of Collective Bargaining

It is a group process, wherein one group, representing the employers, and the other,
representing the employees, sit together to negotiate terms of employment.
It is a formalized process by which employers and independent trade unions negotiate
terms and conditions of employment.
Collective bargaining is a flexible process and not static, consists of a number of steps.
It a bipartite process. This means there are always two parties involved in its process.
It is a complementary process i.e. each party needs something that the other party has.
It tends to improve the relations between workers and the union and the employer.
Collective Bargaining is continuous process. It uses cooperation and consensus for
settling disputes rather than conflict and confrontation.
Collective bargaining takes into account day to day changes, policies, potentialities,
capacities and interests.
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It is a political activity frequently undertaken by professional negotiators.

Collective Bargaining Process

It is normally include procedures in respect of individual grievances, disputes and discipline.
Frequently, procedural agreements are put into the company rule book which provides
information on the overall terms and conditions of employment and codes of behaviour. The
collective bargaining process comprises of five core steps:
1. Prepare
2. Discuss
3. Propose
4. Bargain
5. Settlement

1. Prepare: This phase involves composition of a negotiation team. The first thing to be done is
to determine whether there is actually any reason to negotiate at all. A correct understanding of
the main issues to be covered and intimate knowledge of operations, working conditions,
production norms and other relevant conditions is required.

2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. An
environment of mutual trust and understanding is also created so that the collective bargaining
agreement would be reached.

3. Propose: This phase involves the initial opening statements and the possible options that
exist to resolve them. In a word, this phase could be described as brainstorming. The exchange
of messages takes place and opinion of both the parties is sought.

4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises
the time when what ifs and supposable are set forth and the drafting of agreements take place.

5. Settlement: This stage is described as consisting of effective joint implementation of the

agreement through shared visions, strategic planning and negotiated change.

Importance of Collective Bargaining

Collective bargaining includes not only negotiations between the employers and unions but also
includes the process of resolving labour-management conflicts. It acts as a method of introducing
civil rights in the industry, that is, the management should be conducted by rules rather than
arbitrary decision making.

Importance to employees
1. Collective bargaining develops a sense of self-respect and responsibility among the
employees.
2. It increases the strength of the workforce, thereby, increasing their bargaining capacity as a
group.
3. Collective bargaining increases the morale and productivity of employees.
4. It restricts managements freedom for arbitrary action against the employees.
5. Effective collective bargaining machinery strengthens the trade unions movement.
6. The workers feel motivated as they can approach the management on various matters and
bargain for higher benefits.
7. It helps in securing a prompt and fair settlement of grievances.
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Importance to employers
1. It becomes easier for the management to resolve issues at the bargaining level rather than
taking up complaints of individual workers.
2. Collective bargaining tends to promote a sense of job security among employees and thereby
tends to reduce the cost of labour turnover to management.
3. Collective bargaining opens up the channel of communication between the workers and the
management and increases worker participation in decision making.
4. Collective bargaining plays a vital role in settling and preventing industrial disputes

Importance to society
1. Collective bargaining leads to industrial peace in the country
2. It results in establishment of a harmonious industrial climate which supports and helps the
pace of a nations efforts towards economic and social development since the obstacles to
such a development can be reduced considerably.
3. The discrimination and exploitation of workers is constantly being checked.
4. It provides a method or the regulation of the conditions of employment of those who are
directly concerned about them.

ii. Trade

Union

Introduction
Trade Unionism grew as one of the most powerful socio-economic political institutions of our
time - to fill in the vacuum created by industrial revolution in industrial society. Individual
dispensability and collective indispensability was the basic principle for its formation. United we
stand and divided we fall is the philosophy. The supply of labour was more and demand was less.
Employers employed them at their terms, which were exploitative. Combination of workers was
considered as criminal conspiracy and the terms of contract was regulated by workman Breach
of Contract Act, 1860 and general law of the land. Discontent was brewing. Liberal democratic
and revolutionary ideas of the time fanned the discontentment which was a smouldering since
long and gave birth to an institution known as trade union.

Definition of Trade Unions

According to Webbs, a trade union is a continuous association of wage earners for the purpose
of maintaining and improving the conditions of their working lives. Under the Trade Union Act
of 1926, the term is defined as:
Trade union is an association either of employees, employers or of independent workers.
It is a relatively permanent formation of workers. It is not a temporary or casual
combination of workers.
It is formed for securing certain economic and social benefits to members. Collective
strength offers a sort of insurance cover to members to fight against irrational, arbitrary
and illegal actions of employers. Members can share their feelings, exchange notes and
fight the employer quite effectively whenever he goes off the track.
A more recent and non-legislative definition of a union is an organisation of workers acting
collectively who seek to protect and promote their mutual interests through collective
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bargaining -De Cenzo & Robbins, 1993.

Forms of Trade Unions

There are three forms of trade unions:
1. Classical: A trade unions main objective is to collectively protect the interests of its members
in given socio-economic-political system. Trade Unions are the expressions of the needs,
aspirations and wishes of the working class.
2. Neo-classical: It goes beyond classical objectives and tries to improve up other wider issues
like tax-reliefs, raising saving rates etc.
3. Revolutionary: Change in the system. Establishing the rule of working class even through
violence and use of force etc.

Functions of Trade Unions

Trade unions perform a number of functions in order to achieve the objectives. These functions
can be broadly classified into four categories:
1. Militant Functions
2. Fraternal Functions
3. Social Functions
4. Political functions

1. Militant Functions: Activities performed by trade unions leads to the betterment of the
position of their members in relation to their employment. The militant functions of trade is:
To achieve higher wages and better working conditions
To raise the status of workers as a part of industry
To protect labors against victimization and injustice

2. Fraternal Functions: Another set of activities performed by trade unions aims at rendering
help to its members in times of need, and improving their efficiency. The fraternal functions of
trade unions can be summed up as:
To take up welfare measures for improving the morale of workers
To generate self confidence among workers
To encourage sincerity and discipline among workers
To provide opportunities for promotion and growth
To protect women workers against discrimination

3. Social Functions: Besides the main economic functions consisting basically of organising
unions and improving their terms and conditions of employment to enable workers to meet their
physical needs, which may be grouped under following heads:
i. Welfare activities provided to improve the quality of work life including organisation of
mutual fund, providing housing, cultural programmes, banking and medical facilities and
training for women in various crafts to help them to supplement their family income.
ii. Education: Education of members in all aspects of their working life including improving
their civic life, awareness in the environment around them, enhancement of their knowledge.
iii. Publication of periodicals, news letters or magazines for establishing communication with
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their members, making the latter aware of union policy and stand on certain principal.
v. Research: Of late, this is gaining importance and is intended mainly to provide updated
information to union negotiators at the bargaining table.
4. Political functions: These functions include affiliating the union with a political party,
helping the political party in enrolling members, collecting donations, seeking the help of
political parties during the periods of strikes and lockouts.

Role of Trade Unions

Trade Unions assume the following roles:
1. Sectional Bargainers: Interests of the workers at plant, industry, national level multiplicity of
unions, Crafts Unions, white Collar Union etc.
2. Class Bargainers: Unions representing the interest of the class as whole as in France
Agricultural Unions, Federations of unions, Civil Servants Union.
3. Agents of State: As in U.S.S.R., ensuring targets of production at fixed price. In 1974
Railway strike, INTUC stood behind Government and its agent.
4. Partners in Social Control: Co-determinator in Germany. Also, some examples are found in
Holland, France, Italy and Sweden; some half-hearted attempts are being made in India also.
5. Unions role which can be termed as enemies of economic systems, driven by political
ideologies than business compulsions. Leftist unions want to change the fundamental structure of
economy and want to have control over it. Therefore, they encourage high wages, high bonus etc.
without any consideration for the health of the economy.
5. Business Oriented Role: Here unions consider the interests of the organisation along with
workers. They think that their members fate is inextricably linked with that of organisation and
they swim or sink together.
6. Unions as Change Agent: Lead the changes than to be led by them and thus, performing the
pioneering role.

Answer: (b)

Performance appraisal
Introduction
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Process by which a manager or consultant, examines and evaluates an employee's work
behaviour by comparing it with preset standards, documents the results of the comparison, and
uses the results to provide feedback to the employee to show where improvements are needed
and why. Performance appraisals are employed to determine who needs what training, and who
will be promoted, demoted, retained, or fired.

Definitions:
Performance appraisal has been defined by different scholars in various ways. Some of the
important definitions are as follows:
1. "Performance appraisal is systematic evaluation of the individual with respect to his or her
performance on the job and his or her potential for development".- Dale S. Beach
2. "Performance appraisal is a formal, structured system of measuring and evaluating an
employees job, related behaviour and outcomes to discover how and why the employee is
presently perfuming on the job and how the employee can perform more effectively in the future
so that the employee, organisation, and society all benefit."- Randall S. Schuler

Goals of Performance Appraisal

Conducting performance appraisals on employees performance should be more than a simple
checklist of Dos and Donts. Each employees work should support the activities needed to
action his or her supervisors performance objectives. To make effective performance appraisals
a reality, four criteria need to be present. These are:
1. Employees should be actively involved in the evaluation and development process.
2. Supervisors need to enter performance appraisals with a constructive and helpful attitude.
3. Realistic goals must be mutually set.
4. Supervisors must be aware, and have knowledge of the employees job and performance.

Objectives of Performance Appraisal

To review the performance of the employees over a given period of time

To judge the gap between the actual and the desired performance.
To help management in exercising organizational control and build up the relationship
and communication between superior subordinates and management employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the training
and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
Provide clarity of the expectations and responsibilities of the functions to be performed
by the employees.
To judge the effectiveness of the other human resource functions of the organization such
as recruitment, selection, training and development.
To reduce the grievances of the employees.

Benefits of Performance Appraisal

The benefits of an effective appraisal scheme can be summed up under three categories. These
are for the organization, for appraiser and for appraisee.

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1. For the Organizations: Following benefits would accrue to the organization.
Improved performance throughout the organization due to more effective communication
of the organizations objectives and values, increased sense of cohesiveness and loyalty
and improved relationships between managers and staff.
Improvement in the tasks performed by each member of the staff.
Identification of ideas for improvement.
Expectations and long-term plans can be developed.
Training and development needs can be identified more clearly.
A culture of continuous improvement and success can be created and maintained.
People with potential can be identified and career development plans can be formulated
for future staff requirements.
2) For the Appraiser: The following benefits would accrue to the appraiser:
The opportunity to develop an overview of individual jobs and departments.
Identification of ideas for improvements.
The opportunity to link team and individual objectives and targets with departmental and
organizational objectives.
The opportunity to clarify expectations of the contribution the manager expects from
teams and individuals.
The opportunity to re-prioritize targets.
A means of forming a more productive relationship with staff based on mutual trust and
understanding.
3) For the Appraisee: For the appraisee the following benefits would accrue:
Increased motivation.
Increased job satisfaction.
Increased sense of personal value

Performance Appraisal Methods

There are many metods for the performance appraisal as given below:
1. Graphic Rating Scale
2. Forced Choice
3. Management by Objectives
4. Essay Type Method
5. Critical incidents
6. Ranking and Paired Comparison
7. Other Performance Appraisal Methods
1. Graphic Rating Scale
This method assesses the position of employees between the minimum and maximum of a rating
scale. This method is used to rate a general group of employees such as clerks or general
workers. It is suitable for task-oriented jobs. The problem with this method is that it lacks total
job evaluation elements. Thus, you cannot truly see the actual performance of the employee. But
it is believed that this is the most commonly used method now.

2. Forced Choice
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In forced choice method appraisal is based on a choice from a number of pre-written statements.
There is no provision for a rating that can falls between two choices. This is the reason why it is
called forced choice. The end result is a "bell-shaped" evaluation results. The majority of
employees will fall around the middle range. There are very few people in the non-performance
and outstanding performance ranges of the scale.
This method does not truly reflect actual performance level of employees. One of the risks is that
superiors may rate all their people within the middle range. This does not serve any purpose. But
it can lead to dissatisfaction.

3. Management by Objectives
Management by Objectives (MBO) is one of the more popular performance appraisal methods
among organizations. MBO requires you to establish the objectives of the job. The questions
asked in performance appraisal are whether these objectives are achieved by employees and to
what extent. This method is suitable for assessing the performance of managers

4. Essay Type Method

This performance appraisal method requires to prepare descriptive narratives to assess
performance on the job. It is either structured or unstructured. If the structure method used, it
need to find suitable performance measures and standards. In unstructured method, the
supervisor is required to state in essay form the performance level of the employee

5. Critical incidents
Another appraisal method is the critical incidents method. This is similar to essay appraisal
method. It requires the supervisor to keep a log on employees performance. The assessor will
submit an essay on the poor or outstanding performance of the employee. The problem is that he
or she may come to arbitrary conclusions. As in the case of the essay type of appraisal, it is
necessity to keep an on-going log

6. Ranking and Paired Comparison

In the ranking method and paired comparison method, employees are arranged from the highest
to the lowest performer. These methods are subjective in nature and the factors used are not
prepared against performance standards. This can lead to awkwardness as people do not strictly
fall within the lowest, the highest or average performers

7. Other Performance Appraisal Methods

Other performance appraisal methods include:
i. Behaviourally Anchored Rating Scale: This is suitable for either professional or technical
jobs. It is combination of the critical incident technique and the rating scale method. This method
identifies behaviours that demonstrate high performance. But it requires the preparation of
detailed performance levels ranging from1 for very poor to 5 for very good or from 1 for
extremely poor to 7 for extremely good.
ii. Weighted Checklist: These are sets of objectives or statements on employee behaviour. The
assessor will determine which sets of behaviour fit the employee. The supervisor is required to
make a choice between "yes" and "no" answers.

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iii. Forced Distribution: This is similar to the forced choice method as both end up with a "bell
shape" result. But in forced distribution, the assessor may have to add a few employees to the
very poor or outstanding in order to arrive at a required number of people for those groups
iv. Performance Test: This is to assess whether the employee can perform the specified tasks.
For example, whether a crane operator can correctly operate the crane while on-loading or offloading goods.
v. Team Appraisal: Many are yet to accept this method of appraising performance. It does not
reflect individual performance level. Every member of the team is given the same reward for
every member of the team including those who had made minimum contribution. There is the
possibility of the presence of free riders.
vi. 360 Degree Appraisal: Several parties are required to assess the same employee. These
include the employee himself/herself, working colleagues as internal customers, the superior,
outside parties such as customers and suppliers. There are some organizations that use this
appraisal method. It is yet to gain wide acceptance. Most organizations are not yet ready to
implement this far-reaching evaluation method.
vii. Regularity of Review: It is usual to implement fixed review dates or periods. It may fix the
review as a yearly or twice a year activity. Performance appraisal is also conducted before an
employee is confirmed in service.

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