Performance Management and Retention Strategy: Biyani's Think Tank

Biyani's Think Tank
Concept based notes
Performance Management and Retention Strategy

MBA
Dept of MBA Biyani Institute of Science & Management, Jaipur
For more detail: - http://www.gurukpo.com
Published by :
Think Tanks Biyani Group of Colleges
Concept & Copyright :
Biyani Shikshan Samiti

Sector-3, Vidhyadhar Nagar, Jaipur-302 023 (Rajasthan) Ph : 0141-2338371, 2338591-95 Fax : 0141-2338007 E-mail : acad@biyanicolleges.org Website :www.gurukpo.com; www.biyanicolleges.org
First Edition : 2011
While every effort is taken to avoid errors or omissions in this Publication, any mistake or omission that may have crept in is not intentional. It may be taken note of that neither the publisher nor the author will be responsible for any damage or loss of any kind arising to anyone in any manner on account of such errors and omissions.
Leaser Type Setted by : Biyani College Printing Department
Preface
am glad to present this book, especially designed to serve the needs of
the students. The book has been written keeping in mind the general weakness in understanding the fundamental concepts of the topics. The book is selfexplanatory and adopts the Teach Yourself style. It is based on questionanswer pattern. The language of book is quite easy and understandable based on scientific approach. Any further improvement in the contents of the book by making corrections, omission and inclusion is keen to be achieved based on suggestions from the readers for which the author shall be obliged. I acknowledge special thanks to Mr. Rajeev Biyani, Chairman & Dr. Sanjay Biyani, Director (Acad.) Biyani Group of Colleges, who are the backbones and main concept provider and also have been constant source of motivation throughout this Endeavour. They played an active role in coordinating the various stages of this Endeavour and spearheaded the publishing work. I look forward to receiving valuable suggestions from professors of various educational institutions, other faculty members and students for improvement of the quality of the book. The reader may feel free to send in their comments and suggestions to the under mentioned address. Author
Section A
Performance Appraisal
Q.1. Define Performance Appraisal. Ans. A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. ... Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided. Performance appraisal is a method of acquiring and processing the information needed to improve an individual employees performance and accomplishments. It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance . Performance appraisal is a method of evaluating the job performance of an employee. It is an ongoing process of obtaining, researching, analyzing and recording information about the worth of an employee. Q. 2 What are the objectives of Performance Appraisal? Ans.The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards. 1.Provide Feedback The feedback received by the employee can be helpful in many ways. It gives insight to how superiors value your performance, highlights the gap between actual and desired performance and diagnoses strengths and weaknesses as wells as shows areas for improvement. 2.Improve Communication The method of performance appraisals helps superiors relationships and improve communication with employees. strengthen
3.Training Needed These appraisals also identify the necessary training and development the employee needs to close the gap between current performance and desired performance. 4.Clarify Expectations Performance appraisals should clarify roles, responsibilities and expectations of all employees. 5.Allocate Rewards Performance appraisals reduce employee grievances by clearly documenting the criteria used to make organizational decisions such as promotions, raises or disciplinary actions. Performance appraisal and performance management are two employee performance evaluation methods. Performance management is the traditional approach to evaluating the performance of an employee. The increased competitive nature of the economy and rapid changes in the external environment has forced many organizations to shift from reactive performance appraisals to the proactive performance management to boost productivity and improve organizational performance. Q.3. Differentiate between performance appraisal & performance management. Ans.The basic difference between performance appraisal vs performance management lies in the scope. PERFORMANCE APPRAISAL 1.Emphasis is on relative evaluation of individuals. PERFORMANCE MANAGEMENT 1.Emphasis is on performance improvement of individual , team , and the org. 2.Emphasis is on performance planning , analysis , appraisal and development. 3.Performance rewarding and recognition may or may not be and integral part.Defining and
2. Emphasis is on ratings and evaluation. 3.Performance rewarding and recognition is a critical
component.
setting performance standards is an integral part. 4.Designed by HR department but could be monitored by the line departments. 5.Ownership is with line and HR Department. 6.Focus on identifying developmental needs at the beginning of the appraisal period. 7.Linked to performance improvement and through them to HR decisions as and when interventions seem necessary.
4.Designed and monitored by HR department.
5.Ownership is mostly with HR department. 6.Focus on identifying development needs at the end of appraisal year. 7.Linked to promotions , transfer , trainings , and development.
8. Performance management is a continuous and ongoing proactive mechanism to manage the performance of an employee and ensure that the employee achieves the set targets on a real-time basis, without reviews or corrective actions at some point in the future. It is a line activity and remains ingrained in the employees day-to-day work.
8. In some organizations performance appraisal becomes part of an overall performance management system. The appraisal takes place at periodic intervals and becomes the basis to make corrective actions and set further targets
Both performance appraisals and performance management entail setting performance targets, reviewing the achievement of targets, and devising ways to enable employees to meet targets. Both these systems establish clear expectations on what an employee is expected to do, set the guidelines on what constitutes
successful job performance, and strive to identify barriers to effective performance. Q.4 Discuss the Approach of performance management. Ans.In performance management, the manager of the supervisor assumes the role of a coach or mentor whereas in performance appraisal, the supervisor acts as a judge. Some performance appraisal techniques such as Management by Objectives (MBO) allow for joint setting of targets, by the supervisor and the employee, with frequent reviews, and thereby come close to performance management. Such methods, however, still fall short of the real-time management and monitoring of targets offered by performance management. Methodology The performance appraisal tends to be more formal and structured. Although most performance appraisal systems allow customization of key performance areas or what constitutes performance based on the employee, the system nevertheless remains rigid with laid down procedures and rating parameters binding on all employees equally. Performance management is a comparatively more casual and flexible method of evaluating an employee's performance. Like performance appraisals, it establishes guidelines on what constitutes optimal performance, but since the application is real-time, it allows for considerable relaxation or changes to such guidelines depending on the specific job situation and circumstances of the time. Performance management remains customized for the individual employees actual work, whereas performance appraisal is usually standardized based on the employee's designation, or at best on the employees job description rather than on the employees actual work exigencies. Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on performance of the organization, a department, processes to build a product or service, employees, etc.. Q.5 Describe the process of Performance Appraisal. Ans.ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of For more detail: - http://www.gurukpo.com
the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.
MEASURING THE ACTUAL PERFORMANCE The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to performbetter. DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
Section B
Behavioral Performance Management

Q. 1 Discuss some LEARNING THEORIES. Discuss Kolbs Experiential Learning Cycle. Ans.Summary: A four-stage cyclical theory of learning, Kolbs experiential learning theory is a holistic perspective that combines experience, perception, cognition, and behavior. Experiential Learning (Kolb)
Building upon earlier work by John Dewey and Kurt Levin, American educational theorist David A. Kolb believes learning is the process whereby knowledge is created through the transformation of experience (1984, p. 38). The theory presents a cyclical model of learning, consisting of four stages shown below. One may begin at any stage, but must follow each other in the sequence:

concrete experience (or DO) reflective observation (or OBSERVE) abstract conceptualization (or THINK) active experimentation (or PLAN)
Kolbs Experiential Learning Cycle.
Kolbs four-stage learning cycle shows how experience is translated through reflection into concepts, which in turn are used as guides for active experimentation and the choice of new experiences. The first stage, concrete experience (CE), is where the learner actively experiences an activity such as a lab session or field work. The second stage, reflective observation (RO), is when the learner consciously reflects back on that experience. The third stage, abstract conceptualization (AC), is where the learner attempts to conceptualize a theory or model of what is observed. The fourth stage, active experimentation (AE), is where the learner is trying to plan how to test a model or theory or plan for a forthcoming experience. Kolb identified four learning styles which correspond to these stages. The styles highlight conditions under which learners learn better. These styles are:

assimilators, who learn better when presented with sound logical theories to consider convergers, who learn better when provided with practical applications of concepts and theories accommodators, who learn better when provided with hands-on experiences
divergers, who learn better when allowed to observe and collect a wide range of informationSummary: Affordance theory states that the world is perceived not only in terms of object shapes and spatial relationships but also in terms of object possibilities for action (affordances) perception drives action. Q. 2Discuss Affordance Theory (J. J. Gibson). Ans.American psychologist James Jerome Gibson was influential in changing the way we consider visual perception. According to his theory, perception of the environment inevitably leads to some course of action. Affordances, or clues in the environment that indicate possibilities for action, are perceived in a direct, immediate way with no sensory processing. Examples include: buttons for pushing, knobs for turning, handles for pulling, levers for sliding, etc. Based upon Gestalt theories, Affordance Theory has various implications for design, human-computer interaction, ergonomics, visualization, etc. Some believe that good design makes affordances explicit. Cognitive Theory of Multimedia Learning (Mayer)
Q.3 Describe Cognitive Theory of learning. Ans. A cognitive theory of multimedia learning based on three main assumptions: there are two separate channels (auditory and visual) for processing information; there is limited channel capacity; and that learning is an active process of filtering, selecting, organizing, and integrating information. Cognitive Theory of Multimedia Learning (Mayer) The principle known as the multimedia principle states that people learn more deeply from words and pictures than from words alone. However, simply adding words to pictures is not an effective way to achieve multimedia learning. The goal is to instructional media in the light of how human mind works. This is the basis for Mayers cognitive theory of multimedia learning. This theory proposes three main assumptions when it comes to learning with multimedia: 1. There are two separate channels (auditory and visual) for processing information (sometimes referred to as Dual-Coding theory); 2. Each channel has a limited (finite) capacity (similar to Swellers notion of Cognitive Load); 3. Learning is an active process of filtering, selecting, organizing, and integrating information based upon prior knowledge. Humans can only process a finite amount of information in a channel at a time, and they make sense of incoming information by actively creating mental representations. Mayer also discusses the role of three memory stores: sensory (which receives stimuli and stores it for a very short time), working (where we actively process information to create mental constructs (or schema), and longterm (the repository of all things learned). Mayers cognitive theory of multimedia learning presents the idea that the brain does not interpret a multimedia presentation of words, pictures, and auditory information in a mutually exclusive fashion; rather, these elements are selected and organized dynamically to produce logical mental constructs. Futhermore, Mayer underscores the importance of learning (based upon the testing of content and demonstrating the successful transfer of knowledge) when new information is integrated with prior knowledge. Q.4 Describe Primacy Effect. Ans.The state of being first often creates a strong, almost unshakable, impression. Things learned first create a strong impression in the mind that is difficult to erase. For the instructor, this means that what is taught must be right the first time. For the student, it means that learning must be right. Unteaching wrong
first impressions is harder than teaching them right the first time. If, for example, a student learns a faulty technique, the instructor will have a difficult task correcting bad habits and reteaching correct ones. Q.5 Describe Recency Effect. Ans.The principle of recency states that things most recently learned are best remembered. Conversely, the further a student is removed time-wise from a new fact or understanding, the more difficult it is to remember. For example, it is fairly easy to recall a telephone number dialed a few minutes ago, but it is usually impossible to recall a new number dialed last week. The closer the training or learning time is to the time of actual need to apply the training, the more apt the learner will be to perform successfully. Q. 6 Describe Principle of Intensity. Ans.
The more intense the material taught, the more likely it will be retained. A sharp, clear, vivid, dramatic, or exciting learning experience teaches more than a routine or boring experience. The principle of intensity implies that a student will learn more from the real thing than from a substitute. For example, a student can get more understanding and appreciation of a movie by watching it than by reading the script. Likewise, a student is likely to gain greater understanding of tasks by performing them rather than merely reading about them. The more immediate and dramatic the learning is to a real situation, the more impressive the learning is upon the student. Real world applications that integrate procedures and tasks that students are capable of learning will make a vivid impression on them. In contrast to practical instruction, the classroom imposes limitations on the amount of realism that can be brought into teaching. The instructor needs to use imagination in approaching reality as closely as possible. Classroom instruction can benefit from a wide variety of instructional aids, to improve realism, motivate learning, and challenge students. Instructors should emphasize important points of instruction with gestures, showmanship, and voice. Demonstrations, skits, and role playing do much to increase the learning experience of students. Examples, analogies, and personal experiences also make For more detail: - http://www.gurukpo.com
learning come to life. Instructors should make full use of the senses (hearing, sight, touch, taste, smell, balance, rhythm, depth perception, and others). Q.7 Explain Principle of Freedom. Ans.The principle of freedom states that things freely learned are best learned. Conversely, the further a student is coerced, the more difficult is for him to learn, assimilate and implement what is learned. Compulsion and coercion are antithetical to personal growth. The greater the freedom enjoyed by individuals within a society, the greater the intellectual and moral advancement enjoyed by society as a whole. Since learning is an active process, students must have freedom: freedom of choice, freedom of action, freedom to bear the results of action -- these are the three great freedoms that constitute personal responsibility. If no freedom is granted, students may have little interest in learning. Q.8 What are the characteristics of Learning? Ans. 1. Learning is fundamentally social. "Many of the greatest benefits of training are unintentional. When you come out of a training program, you often perform better. But is it the training that's critical or the interaction during the training? You may be able to perform better simply because you have better relationships with people who you can now call." 2. Cracking the whip stifles learning. "If you are a supervisor and you see two people talking in the hallway, don't say, `Get back to work.' Recognize that this interaction creates a community of practice that stimulates learning -- and it may be precisely what they need." 3. Learning needs an environment that supports it. "XBS used to think of space in terms of cost-per-square-foot. When you look at a cubicle and you see that it's so small that another person can't get in there, you know something's wrong. For learning to flourish, you need to restructure the physical design of the office to encourage interaction, social learning, and peer learning where and when it happens most effectively -- informally." 4. Learning crosses hierarchical bounds. "Camp Lurn'ing included all levels of the company. Supervisors, fifth-line managers, and all kinds of operators train together. Inclusiveness inspires cross-functional learning -- it's a powerful motivating factor." 5. Self-directed learning fuels the fire. "Who knows better what needs to be learned than the people doing the learning? XBS has thrown out the model of For more detail: - http://www.gurukpo.com
HR-driven training. People have a say in structuring their own training, and that means they're more eager to learn." 6. Learning by doing is more powerful than memorizing. "At Camp Lurn'ing, participants used team simulation exercises in which they assessed customers and devised strategies. They recreated the work environment and learned by doing. This is much more effective than sitting at a desk and listening to a lecture." 7. Failure to learn is often the fault of the system, not the people. "Rather than blaming people for lack of motivation, examine how the situation is either motivating or debilitating. Look for patterns of participation and exclusion." 8. Sometimes the best learning is unlearning. "For a long time people have learned that it's best to keep their mouths shut and do what they're told, even if it's not consistent over time. The key is to break those habits and make engagement something that's not only encouraged but also rewarded." Q. 9 Describe Reinforcement. Ans.Reinforcement is a term in operant conditioning and behavior analysis for the process of increasing the rate or probability of a behavior (e.g. pulling a lever more frequently) by the delivery or emergence of a stimulus (e.g. a candy) immediately or shortly after the behavior, called a response, is performed. The response strength is assessed by measuring frequency, duration, latency, accuracy, and/or persistence of the response after reinforcement stops. Experimental behavior analysts measured the rate of responses as a primary demonstration of learning and performance in non-humans (e.g. the number of times a pigeon pecks a key in a 10 minute session). A reinforcer is the stimulus, event, or situation that is presented or otherwise emerges when the response behaviour is performed. The term reinforce means to strengthen, and is used in psychology to refer to anything stimulus which strengthens or increases the probability of a specific response. For example, if you want your dog to sit on command, you may give him a treat every time he sits for you. The dog will eventually come to understand that sitting when told to will result in a treat. This treat is reinforcing because he likes it and will result in him sitting when instructed to do so.
There are four types of reinforcement: positive, negative, punishment, and extinction. Well discuss each of these and give examples. Q.10 Explain Positive Reinforcement Ans.The examples above describe what is referred to as positive reinforcement. Think of it as adding something in order to increase a response. For example, adding a treat will increase the response of sitting; adding praise will increase the chances of your child cleaning his or her room. The most common types of positive reinforcement or praise and rewards, and most of us have experienced this as both the giver and receiver. Q. 11Explain Negative Reinforcement Ans.Think of negative reinforcement as taking something negative away in order to increase a response. Imagine a teenager who is nagged by his mother to take out the garbage week after week. After complaining to his friends about the nagging, he finally one day performs the task and to his amazement, the nagging stops. The elimination of this negative stimulus is reinforcing and will likely increase the chances that he will take out the garbage next week. Q. 12 Describe Punishment in Performance Management. Ans. Punishment refers to adding something aversive in order to decrease a behavior. The most common example of this is disciplining (e.g. spanking) a child for misbehaving. The reason we do this is because the child begins to associate being punished with the negative behavior. The punishment is not liked and therefore to avoid it, he or she will stop behaving in that manner. Extinction. When you remove something in order to decrease a behavior, this is called extinction. You are taking something away so that a response is decreased. Research has found positive reinforcement is the most powerful of any of these. Adding a positive to increase a response not only works better, but allows both parties to focus on the positive aspects of the situation. Punishment, when applied immediately following the negative behavior can be effective, but results in extinction when it is not applied consistently. Punishment can also invoke other negative responses such as anger and resentment. Punishment is the
practice of imposing something unpleasant or aversive on a person or animal or property, usually in response to disobedience, defiance, or behavior deemed morally wrong by individual, governmental, or religious principles. Q.13 Define Extinction. Ans. When you remove something in order to decrease a behavior, this is called extinction. You are taking something away so that a response is decrease. Q. 14 Discuss various Types of punishment. Ans.There are two types of punishment in operant conditioning:
Positive punishment or type I punishment, an experimenter punishes a response by presenting an aversive stimulus into the animal's surroundings (a brief electric shock, for example). Negative punishment or type II punishment, a valued, appetitive stimulus is removed (as in the removal of a feeding dish). As with reinforcement, it is not usually necessary to speak of positive and negative in regard to punishment.
Punishment is not a mirror effect of reinforcement. In experiments with laboratory animals and studies with children, punishment decreases the likelihood of a previously reinforced response only temporarily, and it can produce other "emotional" behavior (wing-flapping in pigeons, for example) and physiological changes (increased heart rate, for example) that have no clear equivalents in reinforcement. Punishment is considered by some behavioral psychologists to be a "primary process" a completely independent phenomenon of learning, distinct from reinforcement. Others see it as a category of negative reinforcement, creating a situation in which any punishment-avoiding behavior (even standing still) is reinforced. Q.15 Explain Punishment and aversive. Ans.Aversive stimulus, punisher, and punishing stimulus are somewhat synonymous. Punishment may be used for (a) an aversive stimulus or (b) the occurrence of any punishing change or (c) the part of an experiment in which a particular response is punished. However, some things considered aversive (such as spanking) can become reinforcing. In addition, some things that are aversive may not be punishing if accompanying changes are reinforcing. A classic example would be mis-behavior that is 'punished' by a teacher but actually increases over time due For more detail: - http://www.gurukpo.com
to the reinforcing effects of attention on the student.
Section C
Potential Appraisal & HRD

Q. 1 What is POTENTIAL APPRAISAL? Explain. Ans. The Potential Appraisal refers to the appraisal i.e. identification of the hidden talents and skills of a person. The person might or might not be aware of them. Potential appraisal is a future oriented appraisal whose main objective is to identify and evaluate the potential of the employees to assume higher positions and responsibilities in the organizational hierarchy. Many organisations consider and use potential appraisal as a part of the performance appraisal processes. Q.2 Discuss the purpose of Potential appraisal. Ans. 1. To advise employees about their overall career development and future prospects 2.Help the organization to chalk out succession plans 3. Motivate the employees to further develop their skills and competencies. 4. To identify the training needs.
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a
systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees.
Q.3 Explain the Objectives of Performance appraisal. Ans.
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 the management in exercising organizational control. Helps to strengthen 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.
Q.4 Explain THE CONCEPT OF HRD. Ans.Human Resource Development system we talked in our last post. Today we are going to talk about The Concept of HRD. Human resource development in the organization context is a process by which the employees of an organization are helped, in a continuous and planned way, to: 1. Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles. 2. Develop their general capabilities as individuals and discover and exploit their own inner potentials for their own and/or organizational development purpose. 3. Develop an organizational culture in which supervisor-subordinate relationships, teamwork, and collaborations among sub-units are strong and contribute to the professional well being, motivation, and pride of employees. Q.5 Definition of HRD is limited to the organizational context. Comment. Ans. HRD is a process, not merely a set of mechanisms and techniques. The mechanisms and techniques such as performance appraisal, counseling, training, and organization development interventions are used initiate, facilitate, and promote this process in a continues way. Because the process has no limit, the mechanisms may need to be examined periodically to see whether they are promoting or hindering the process. Organizations can facilitate this process of development by planning for it, by allocating organizational resources for the purpose, and by exemplifying an HRD philosophy that values human beings and promotes their development. Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development. The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers.
Organizations have many opportunities for human resources or employee development, both within and outside of the workplace. Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases. Q. 6 Discuss the Objectives of Human Resource Development. Ans.

Develop institutional and technical models for poverty reduction, sustainable, equitable and engendered development; Sustainable improvement in the livelihood of over 10 million poor people in NWFP by 2011 Raise the incomes and quality of life of people, especially the poorest of the poor men and women, living in its programme area. Provide an effective and cost-efficient service delivery mechanism for the government and the donor agencies in order to reach the rural poor. Support the decentralization efforts of the govt.
In order to reduce poverty and promote sustainable development, SRSP makes continuous effort towards institutional development and capacity building at the community level, staff members, other organization/stack holders and line agencies. This is done through establishment of networking at grassroots level institution at the village. HRD section has developed a training policy. The basic purpose of training is to increase the productivity of community leaders and employees. Training is also important for the adoption of new technologies or changes for the future course of action. To assess the training needs of communities and staff, SRSP focused on the following four areas;

Directing training towards achieving the organizational goals; To facilitate the community and staff members or any other out-side agency, in meeting their responsibilities or tasks. To mend the behaviour of the people in a way that it helps, achieving the organizational objectives. To overcome the deficiencies in skills, knowledge or attitudes of the people, so that they are able to achieve the organizational objectives in an efficient way.
With the above objectives SRSP has started its activities of Capacity Building in 1996. Based on its experience, Capacity Building , Skills and expertise of the organization in the relevant field. Q. 6 Explain Human Resources purpose and role. Ans.In simple terms, an organization's human resource management strategy should maximize return on investment in the organization's human capital and minimize financial risk. Human resources seeks to achieve this by aligning the supply of skilled and qualified individuals and the capabilities of the current workforce, with the organization's ongoing and future business plans and requirements to maximize return on investment and secure future survival and success. In ensuring such objectives are achieved, the human resource function or purpose in this context is to implement the organization's human resource requirements effectively but also pragmatically, taking account of legal, ethical and as far as is practical in a manner that retains the support and respect of the workforce. Q. 7 Explain the Key functions of HRD. Ans.Human Resources may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas. The following are typical of a wide range of organizations:

Recruitment, selection, and on boarding (resourcing) Administration of personnel files and legal documents that relate to employment Organizational design and development Business transformation and change management Performance, conduct and behavior management Industrial and employee relations Human resources (workforce) analysis and workforce personnel data management Compensation, rewards and benefits management Training and development (learning management)
Q.8 Explain the challenge of Responding to Multiple Stakeholders in HRD. Ans.The ongoing critical debate about whether corporations have a responsibility to a wider group of stakeholders beyond their focus on shareholders continues to capture attention (May & Kahnweiler, 2002). HRD practitioners are caught up in
the shareholder-stakeholder debate, in part because they are responsible for the learning supply chain that supports organizations. HRD cannot blindly focus on shareholder value alone if it must also respond to learning supply chain stakeholders, including primary, secondary, postsecondary, and postgraduate education institutions; continuing education, training, and development entities; just-in-time knowledge delivery systems; and other learning solutions both inside and outside corporations. The suggestion that HRD orient itself to multiple stakeholders implies that HRD professionals should promote corporate accountability beyond shareholders to communities and societies (Kaufman & Guerra, 2002). Perhaps HRD professionals will be able to educate the organization on the meaning of social responsibility and its relationship to corporate performance, while demonstrating effective strategies for addressing multiple needs and negotiating various stakeholder interests. No doubt, there is risk in taking a bold position in favor of stakeholder interests, but the risk is greater in doing nothing. Q.9 Explain HRD Impact and Utility. Ans.To establish themselves as key players in the development of organizational strategy, HRD practitioners must demonstrate how what they do correlates with the productivity and welfare of the company (Russ-Eft & Preskill, 2001; Swanson & Holton, 1999). The future of HRD depends to a great degree on the extent to which the value it brings can be confidently measured. We believe that a focus on demonstrating impact and utility will not only lead to greater overall influence of HRD on the organization but will strengthen HRDs reputation as a legitimate profession. Therefore, over the next decade, linking learning and human process to performance and measuring learning, human process, and the resulting change in performance are crucial challenges to the field. Well-designed studies linking learning to productivity will be critical to these efforts. HRD professionals must become skilled systems thinkers who can design and conduct measurement and analysis across the organization and pinpoint the
influences of HRD efforts on employee productivity and organizational performance, linking past research results to current practice. HRD professionals must have the skills to identify valid measures of learning and growth and develop meaningful and accurate interpretations, while being ever mindful of the myriad of intervening variables that can influence learning and performance curves in work settings (Preskill & Russ-Eft, 2003). Ethical engagement in measurement work will maintain integrity around the complexity of learning and performance processes and will protect against laying shortfalls on the backs of learners and those who facilitate their learning. Q.10 What is the perspective of HRD toward the Future? Ans.We are concerned about how little time HRD spends focused on the future. Its research and theories struggle to keep up with the present, let alone anticipate what may be needed in the coming months and years. The void is filled by the fads, which falsely offer panacea solutions and lead to the poor reputation of HRD in delivering real long-term outcome benefits. To put it another way, HRD contains some products that are "quick-fix, flavor-of-the-month, buzz-worded remnants of a slick sales job". Yet practice desperately needs to benefit from research and theories that apply to leading-edge issues. The challenge to HRD researchers is to anticipate what research is needed and how it can contribute to HRD practice in one, two, or three years, and then to make it available in ways that maximize the likelihood that research findings influence practitioner behavior. The ability of our profession to be consistently ahead of the game will elevate the status of HRD as a key investment in the knowledge economy. It is just as easy to be critical of HRD practitioners for failing to focus on the future. Many are running learning activities that are out-of-date relative to new business strategies and new knowledge about learning, and the same practitioners are often late to the table when it comes to discussions on the potential learning implications of likely business decisions. The challenge to For more detail: - http://www.gurukpo.com
HRD practitioners is to be strategically proactive rather than reactive.
Q.11How HRD help in Achieving Professional Recognition? Ans. As long as HRD is seen as fad driven and reactive and those who lack a sound understanding of core HRD theory and practice fill HRD jobs, then HRD will be viewed as secondary to other professions in organizations. Although it will mean painful effort, either further professional development of practitioners or the loss of existing people, HRD as a profession needs to take specific steps to increase its credibility in organizations and its recognition as a discrete field of research and practice. Efforts to build professional recognition will require HRD to construct a sound theory base and apply those theories in practice. As Swanson (2001) stated, "HRD practice does not come close to what we know from sound theory" (p. 309). The efforts will also require a sound education for HRD professionals with accompanying professional recognition and continuing professional development, and ethical standards that are understood and applied by professionals and overseen by professional bodies. More important, as we promote awareness and recognition of HRD as a profession, we must keep our focus on values, ethics, the quality of practice, and a set of competencies through which both research and practice can be undertaken, and avoid investing energy in the building of bureaucratic processes of credentialing and standardization. Q.12 Discuss HRD challenges. Ans.1.Quality Challenge. 2.People Challege. 3. Technology. 4. Culture. 5. Speed. 6. Sleek. For more detail: - http://www.gurukpo.com
7. Invest on people. 8. Flat and non-hierarchical structures 9.Social responsibility and high commitment to country. 10.Learning Organisation. Q.13 Explain the mechanisms of HRD. Ans.A HRD mechanisms or subsystems are defined as follow: 1. Performance Appraisal 2. Potential Appraisal and Development 3. Feedback and Performance Coaching 4. Career Planning 5. Training 6. Organization Development (OD) 7. Rewards 8. Employee Welfare and Quality of Work Life 9. Human Resources Information 10. The Contribution of Subsystems to HRD Goals Q.14 Explain the outcome of HRD. Ans.Human Resource Development has been defined as a process by which the employees of an organization are helped ,in continuous ,planned way to acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles, develop their general capabilities as individuals and discover and exploit their own inner potential for their own and /or organizational development purposes ,develop an organizational culture in which the supervisor subordinate relationships, teamwork, and collaboration among sub units are strong and contribute to the professional well being, motivation and pride of employees Put simply, HRD also means competence building, commitment building and culture building. In the past HRD definitions have also differentiated the HRD instruments/subsystems/mechanisms (e.g. HRD departments, appraisal systems, job rotation and training) from the HRD processes and culture (e.g. Role clarity, trust, openness, pro-action, collaboration
etc),HRD outcomes(e.g. more competent people, better developed roles, better organizational health and more teamwork)and organizational outcomes (profits, diversification, image productivity etc) .Starting with six subsystems in the midseventies, HRD came to include several other components as newer subsystems were discovered and brought to significance. For example, job rotation, quality circles, shop floor committees, task forces, communication systems meetings, mentoring systems, worker development programmes etc came to be considered as HRD mechanisms. The HRD department or the function has sometimes been treated as an HRD instrument as it is essentially a facilitator of development. However, given the significance of the HRD department in producing good employees, the HRD department can be treated as a separate element for good HRD. Q.15 What are the elements of good HRD? Ans. Corporate-strategy and business-linked HRD Systems-engineered and systems-driven HRD Appropriately structured and competently handled HRD Appropriately rooted (in terms of culture and values)HRD
Section D
Performance Planning & Measuring Performance

Q. 1 Define PERFORMANCE PLANNING. Ans.Performance planning means setting goals and determining what needs to be done to reach those goals. Performance Planning means setting standards in advance. The starting point for performance management is the job description. Q.2 Define Performance measurement. Ans. Performance measurement is the process whereby an organization establishes the parameters within which programs, investments, and acquisitions are reaching the desired results.
This process of measuring performance often requires the use of statistical evidence to determine progress toward specific defined organizational objectives. Q.3 What are the reasons behind measuring the Performance. Ans. Fundamental purpose behind measures is to improve performance. Measures that are not directly connected to improving performance (like measures that are
directed at communicating better with the public to build trust) are measures that are means to achieving that ultimate purpose. 8 reasons for adapting performance measurements: 1. To Evaluate Evaluation process consists of two variables: organizational performance data and a benchmark that creates framework for analyzing that data. For organizational information focus on outcome of agencys performance, but also including input/ environment/ process/ output- to have a comparative framework for analysis. Its helpful to ask 4 essential question in determining organizational data:
Outcome should be directly related to public purpose of the organization. Effectiveness Q: did they produce required results (determined by outcomes). Cost-effective: efficiency Q (outcome divided by input). Impact Q: what value organisation provides. Best-practice Q: evaluating internal operations (compare core process performance to most effective and efficient process in the industry).
2. To Control How can managers ensure their subordinates are doing the right thing. Today managers do not control their workforce mechanically (measurement of time-and-motion for control as during Taylor) However managers still use measures to control, while allowing some space for freedom in the workforce. Organisation create measurement systems that specify particular actions they want execute- for branch employees to take a particular ways to execute what they want- branch to spend money. Then they want to measure to see whether the employees have in fact taken those actions. Need to measure input by individual into organisation and process. Officials need to measure behavior of individuals then compare this performance with requirements to check who has and has not complied. 3. To Budget Budgets are crude tools in improving performance. Poor performance not always may change after applying budgets cuts as a disciplinary actions. Sometimes budgets increase could be the answer to improving performance. Like purchasing better technology because the current ones are outdated and harm operational processes. So decision highly influenced by circumstance, you need measures to better understand the situation.
In allocating budgets, managers, in response to macro budget allocations (driven by political objectives), determine allocations at the micro level by using measures of efficiency of various activities, which programs or organisations are more efficient at achieving the political objectives. Why spend limited funds on programs that do not guarantee exceptional performance? Efficiency is determined by observing performance- output and outcome achieved considering number of people involved in the process (productivity per person) and cost-data (capturing direct cost as well as indirect) 4. To Motivate Giving people significant goals to achieve and then use performance measures- including interim targets- to focus peoples thinking and work, and to provide periodic sense of accomplishment.

Output- focuses on improving internal process. outcome- motivate people to look outside the agency (to seek way to collaborate with individuals & organisations may affect the outcome produced by the agency)
5. To Celebrate Organisations need to commemorate their accomplishmentssuch ritual tie their people together, give them a sense of their individual and collective relevance. More over, by achieving specific goals, people gain sense of personal accomplishment and self worth. Links from measurement to celebration to improvement is indirect, because it has to work through one of the likes- motivation, learning... Celebration helps to improve performance because it brings attention to the agency, and thus promotes its competence- it attracts resources.

Dedicated people who want to work for successful agency. Potential collaborators. Learning-sharing between people about their accomplishments and how they achieved it.
6. To Promote How can public managers convince political superiors, legislators, stakeholders, journalists, and citizens that their agency is doing a good job. Indirectly promote competence and value of government in general. To convince citizens their agency is doing good, managers need easily understood measures of those aspects of performance about which many citizens personally care.
7. To Learn Learning is involved with some process, of analysis information provided from evaluating corporate performance (identifying what works and what does not). By analyzing that information, corporation able to learn reasons behind its poor or good performance.

Because of rapid increase of performance measures there is more confusion or noise than useful data. Managers lack time or simply find it too difficult to try to identify good signals from mass of numbers.
Learning occurs when organisation meets problems in operations or failures. Then corporations improve by analyzing those faults and looking for solutions. In public sector especially, failure usually punished severely- therefore corporations and individuals hide it. 8. To Improve What exactly should who- do differently to improve performance? In order for corporation to measure what it wants to improve it first need to identify what it will improve and develop processes to accomplish that. Improvement process also related to learning process in identifying places that are need improvements. Develop understanding of relationships inside the black box that connect changes in operations to changes in output and outcome. Understanding black box processes and their interactions.

How to influence/ control workforce that creates output. How to influence citizens/ customers that turn that output to outcome (and all related suppliers)
Q. 4 What are the Principles of performance measurement? Ans. Work that is not measured or assessed cannot be managed because there is no objective information to determine its value. Therefore it is assumed that this work is inherently valuable regardless of its outcomes. The best that can be accomplished with this type of activity is to supervise a level of effort.

Unmeasured work should be minimized or eliminated. Desired performance outcomes must be established for all measured work. Outcomes provide the basis for establishing accountability for results rather than just requiring a level of effort. For more detail: - http://www.gurukpo.com
Desired outcomes are necessary for work evaluation and meaningful performance appraisal. Defining performance in terms of desired results is how managers and supervisors make their work assignments operational. Performance reporting and variance analyses must be accomplished frequently. Frequent reporting enables timely corrective action. Timely corrective action is needed for effective management control.
If we dont measure
How do you know where to improve? How do you know where to allocate or re-allocate money and people? How do you know how you compare with others? How do you know whether you are improving or declining? How do you know whether or which programs, methods, or employees are producing results that are cost effective and efficient?
Q.5 What are the Common problems with measurement systems that limit their usefulness? Ans.

Heavy reliance on summary data that emphasizes averages and discounts outliers. Heavy reliance on historical patterns and reluctance to accept new structural changes (or re-design of processes) that are capable of generating different outcomes, like measuring the time it takes them to do a task. Heavy reliance on gross aggregates that tend to understate or ignore distributional contributions and consequences.
Heavy reliance on static, e.g., equilibrium, analysis and slight attention to time-based and growth ones, such as value-added measures. Q. 6 Discuss the Techniques Of "Performance Appraisal.
ESSAY APPRAISAL METHOD This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator. STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal.
In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation. PAIRED COMPARISON A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings. CRITICAL INCIDENTS METHODS In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur. FIELD REVIEW In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias. CHECKLIST METHOD The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees. GRAPHIC RATING SCALE In this method, an employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory. 8. FORCED DISTRIBUTION To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.
Q. 6 Discuss the Modern Methods of Performance Appraisal. Ans.The Modern methods of Performance Appraisal are-
ASSESSMENT CENTRES An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees. BEHAVIORALLY ANCHORED RATING SCALES Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employees actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.
Q. 7 Explain 360 Degree Performance Appraisals. Ans. 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree performance appraisal where the employees responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the
parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others.
Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods. 360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.
Q. 8 Explain MANAGEMENT BY OBJECTIVES. Ans. The concept of Management by Objectives (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.
Q. 9 Explain the MBO Process.
Q.10 Explain the FEATURES AND ADVANTAGES OF MBO. Ans. The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals. Some of the important features and advantages of MBO are: Clarity of goals With MBO, came the concept of SMART goals i.e. goals that are: Specific Measurable For more detail: - http://www.gurukpo.com
Achievable Realistic, and Time bound. The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees. The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback. Motivation Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. Better communication and Coordination Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.
The idea behind the population-based measure is both simple and powerful: There is a group of people who either have or are at high risk of getting some condition. Plans can either prevent the condition from occurring or improve its outcome. Therefore, to determine a plan's quality, we can identify the persons who are candidates for the desired interventions and measure the rates at which either the interventions are used or the desired outcomes occur. As straightforward as this might appear, many problems can make the use of population-based measures extremely difficult, especially for those based on health outcomes. These problems can be grouped into two main categories: "natural" and "man-made." The latter can possibly be changed, whereas the former can only be worked around. Q. 10 What are measurement issues? Discuss. Ans. Probability factor. The first problem is central: Almost all health outcomes are highly probabilistic. They do not always occur when a plan does the right thing, and they can occur even when a plan does the wrong thing. This makes the measurement of quality in health care fundamentally different from quality measurement in most other industries. Specifically, although we can see Individual outcomes, such as "Mr. Smith" having a heart attack, we cannot draw the same types of conclusions that we would If we saw a toaster burn a slice of
bread. Conclusions about the quality of health care require a large number of observations and statistical analysis. Low frequency. The second natural problem, low frequency, compounds the first. The unfortunate fact is that many of the health outcomes that are most interesting do not occur very frequently. This is true not only for rare diseases but also for many of the most common and socially important diseases. For example, any measure of breast cancer care has to deal with the fact that its most important outcome-death-occurs at a rate of about one per 1,000 per year in women over age fifty. That by itself is a small effect to find. But the problem is made worse by the fact that performance measurement is looking not at that rate (death versus no death) but at the change in that rate caused by how various plans apply various interventions. Long delays. It takes five to ten years to get five-to-ten-year survival rates. This not only affects the logistics of measurement (for example, finding patients after five to ten years) but makes that measure of quality five to fifteen years out of date the day it is calculated. Control over outcomes. The next natural problem concerns the extent to which a plan can control outcomes, versus the extent to which the outcomes are determined by other factors that are beyond a plan's control. A good example is low birth weight. For this to be a good measure for comparing the quality of prenatal care, ideally, all of the differences (variance) in the weights of babies should be explained by where the mother got her care. Level of clinical detail. Because performance occurs through clinical decisions, measurement of it ideally should be done at that level of clinical detail. Just how detailed that is can be appreciated by studying the designs of clinical trials, because these provide the evidence for clinical decisions and have had to operationalize clinical terms the way performance measures must. Ideally, it should be possible to convert any clinical trial into a performance measure, and the level of detail required for a performance measure should be consonant with that of its corresponding clinical trial. Comprehensibility - To appreciate the last natural problem comprehensibility, recall that the primary objective of measurement is to help purchasers and consumers choose among plans. Population-based measures do this by reporting something like "the rate of (some outcome) was 70 percent in Plan A versus 76 percent in Plan B." The problem is that although many outcomes such as heart attacks or emergency room visits are understandable, many others are not. This is especially true of biological outcomes (for example, how important is a fivepercentage-point difference in the proportion of asthmatics with FEV below 50
percent?) and process measures (for example. what difference does it make if 5 percent more moderate asthmatics are treated with beta agonists?) Indeed. few if any physicians could tell you what either of those means in terms of outcomes that patients really care about. Man-made problems. If the natural problems are not bad enough, they are made worse by some man-made ones. To call them "man-made" is not to say that anyone in particular is to blame, but only to indicate that they follow from the way our health care system has evolved and, in theory at least, could be changed. Inadequate information systems. The first such problem follows from the fact that performance measures require a high level of clinical detail. The unfortunate fact is that few health plans have sufficiently powerful information systems to obtain the required information. Most still rely on paper medical records. The computerized systems they have were implemented piecemeal to serve other, administrative, purposes. For performance measurement they are blunt and cumbersome. The only way to get the level of detail needed to convert a typical clinical trial into a performance measure is by a manual review of charts, which is extremely expensive. Todays information systems place an inherent limit on the quality of today's performance measures. Too many measurers and measures. A second problem is the multiplicity of measurers and measures Health plan complexity. A third man-made problem is the complexity of health plans. When a plan contracts with a wide network of physicians each of whom is contracting with a wide range of plans, the result is measurement chaos. Setting aside the issues of how a plan might control the quality of care delivered by each provider and how providers might respond to various guidelines and qualitymanagement programs from various plans, multiple. decentralized charts and small sample sizes cause problems. A related issue is that different purchasers require different benefit packages. Thus. a measure might ask about the performance of an intervention that is covered by some benefit packages but not by others. Funding. A final man-made problem is funding. The economics of performance measurement are driven by the fact that many (but by no means all) large purchasers are requiring plans to provide measures of performance. Plans bear the cost of collecting the data and reporting the measures. In addition to their need to respond to purchasers' requests, plans may have a positive financial incentive if they do well on a set of measures and if advertising that fact motivates purchasers and consumers to choose them.
Section E
Competency Analysis & Competency Mapping

Q. 1 Define Competency Mapping. Ans.Competency Mapping is processes of identifying key competencies for an organization and/or a job and incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization. It generally examines two areas: emotional intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure, leadership, and decision-making. According to Boyatzis(1982) A capacity that exists in a person that leads to behaviour that meets the job demands within parameters of organizational environment, and that, in turn brings about desired results Q. 2 What are the components of competency? Ans.There are four major components of competency: 1. SKILL: capabilities acquired through practice. It can be a Error! Hyperlink reference not valid. Skill such as budgeting, or a verbal skill such as making a presentation. 2.KNOWLEDGE: understanding acquired through learning. This refers to a body of information relevant to job performance. It is what people have to know to be able to perform a job, such as knowledge of policies and procedures for a recruitment process. 3. PERSONAL ATTRIBUTES: inherent characteristics which are brought to the job, representing the essential foundation upon which knowledge and skill can be developed. 4. BEHAVIOR: The observable demonstration of some competency, skill, knowledge and personal attributes. It is an essentially definitive expression of a competency in that it is a set of action that, presumably, can be observed, taught, learned, and measured.
Q. 3 What are the tools to identify and assess employee competencies? Ans. Competencies are the abilities needed to conduct a role in an organization. Identifying competencies for a role is a very useful exercise to really get one thinking about whats need to carry out the role.Competencies descriptions are usually worded in measurable terms ; therefore they are useful for reference when identifying training. Tools to identify the competencies of of Employees: 1.Productivity & Effectiveness 2. Job Satisfaction 3. Organisational Coherence 4. Stress Symptoms and Physiological well-being 5.Communication Effectiveness 6. Psycological Well being 7. Emotional Intelligence Q.4 What are the steps for process of Competency Analysis? Ans. STEPS for process of Competency Analysis are1.Identification of Competencies 2. Mapping of Competencies 3. Analysis of Competencies 4.Preparation and presentation of report 5.Evaluation of competency analysis process Q.5 Discuss some Competency Analysis Approaches used by Organisation. Ans. Competency analysis in organization can be carried out in a number of ways. 1.Survey Questionnaire 2.Self analysis 3.Multi Rater 4.DACUM-Develop A Curriculum 5.Functional analysis 6. Delphi 7.Inventory Comparison 8.Focus Groups 9.Critical incidents 10.CODAP-comprehensive occupational analysis programs 11.Information Search
12.Direct Observation and checks Q.6 Assesment of Competency Mapping Process. Ans.1.Purpose and content: Manager decides the purpose of competency mapping procurement or development. 2.Evidence-For the purpose of evidence the manager have to: -Designate a group of core managers. -Designate a group of core high performers in all relevant levels of performance. 3.Mapping-Test Grids experts assess: -Organisation benchmarks for high performance at the appropriate levels. -The correlation of the tools output to employee competencies. 4.Scoping report development: Once the mapping has been accomplishment , a report format that meets organizational needs will be designed and the development work scoped and quoted for.Employees accept the quote and the specialist work are programmed. 5.Report Delivery L: Employees receive the beta version of the report, test with a pilot group, and confirm contents.Final touches to the report are programmed. Q.7 Define COMPETENCY MAPPING. Ans.Competency Mapping is a process of identify key competencies for an organization and/or a job and incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of the organization. To ensure we are both on the same page, we would define a competency as a behavior (i.e. communication, leadership) rather than a skill or ability. Q.8 What are the steps involved in competency mapping with an end result of job evaluation ? Ans.1) Conduct a job analysis by asking incumbents to complete a position information questionnaire (PIQ). This can be provided for incumbents to complete, or you can conduct one-on-one interviews using the PIQ as a guide. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs. 2) Using the results of the job analysis, you are ready to develop a competency based job description. A sample of a competency based job description generated from the PIQ may be analyzed. This can be developed after carefully analyzing
the input from the represented group of incumbents and converting it to standardcompetencies. 3) With a competency based job description, you are on your way to begin mapping the competencies throughout your human resources processes. The competencies of the respective job description become your factors for assessment on the performance evaluation. Using competencies will help guide you to perform more objective evaluations based on displayed or not displayed behaviors. 4) Taking the competency mapping one step further, you can use the results of your evaluation to identify in what competencies individuals need additional development or training. This will help you focus your training needs on the goals of the position and company and help your employees develop toward the ultimate success of the organization. Q.8 Define COMPETENCY ANALYSIS. Ans.Competency analysis is simply defined as an analysis of the competencies of a given company, essentially asking, What does this company do better than most? In order for an action to qualify as a competency, it should be identified as something the company does better than most (effectiveness), but also more efficiently than most (efficiency). These actions that a company performs better than most are referred to as core competencies. Core competencies have three characteristics that distinguish them from noncore competencies. First, a core competency must be relevant; this means that it must contribute to what makes the company's product unique and thus marketable. Second, core competencies are difficult to imitate; this is how a company can offer that unique product and generate profit from that product. Last, it should have a broad application; a core competency does not focus on smaller, niche markets, but rather it is what makes a company shine. Q.9 What are the steps in competency analysis?
Ans.1. Identify what skills, knowledge and behaviours are required for you to do your job well.
Every role in the University has a job description and a person specification. Your job description will list the things that you are expected to do, and the person specification will identify the skills, experience, knowledge and behaviours that you need to do that job well.
You may find it helpful to talk to your line manager or Head of Department if you feel you want to clarify any of the requirements set out in the person specification. Your Annual Review meeting will be one place to have this discussion, but you can raise the issue of development at any meeting with your manager or HOD during the year. At this stage, its also worth thinking about the skills, knowledge and behaviours that you may need to develop in the future in your current job. You may know, for example, that your role will be changing or that you will be working on different projects or that you are interested in a career change. What new or different skills, knowledge and behaviours will you need? 2. Look at the skills, knowledge and behaviours you actually have now. Its important to ask yourself some rigorous questions at this stage and answer honestly! Are there areas of your work, for example, where developing more confidence would make a real difference to your success in your job? Are there knowledge, skills and behaviours that you only need on occasion that would benefit from some development? Can you identify areas where you feel confident and believe you perform well that could be an even greater strength for you with some development?.
3. Compare actual with required to identify the gaps. These are your development needs.
Try and be as specific as possible about what you need to do differently. This will really help you when you are deciding how to best address your development needs. It will also help you review and measure your success. For example, I need to learn how to use Outlook to sort, prioritise and store my emails, will be much more helpful than I need to be more organised, when it comes to deciding what development you need. It will also help you check how the Outlook training you undertook actually made a difference in your ability to be organised. Q.10 Categorise Human resources . Ans.HR in any organization can be classified in to four categories using two simple yet effective criteria the ability to learn and the willingness to learn. Individuals who are high on both counts are the stars of the workplace. They need to be encouraged and rewarded. Individuals who are low on both dimensions often may need to be retrenched in the interests of maintaining or improving organizational efficiency. The in-betweens are those who are high on
the ability to learn but low on willingness to learn who need to be re-trained; and those who are high on the willingness to learn but low on the ability to learn who need to be redeployed. Many organizations however, are unable to effectively manage these four categories of employees, often because they are unable to match employee with category reliably. As a result, even those organizations that have the will to proactively manage their HR, ultimately are rendered powerless to effect change in their employees. Indeed, such has been the story of many Indian firms, particularly those entrenched in the traditional manufacturing sector. Today however, globalization is compelling several Indian organizations to march to a new tune. Increasing competitive pressure is bringing about a keener focus on profitability and productivity of employees. The older employment relationship characterized by the existence of only one employer and workplace, an indefinite work contract, full-time work and some degree of social and legal protection, is being replaced by performance-driven employment terms. Alongside, job definitions are changing as well. Based on the idea of competency assessment, the art of human resource management is shifting focus from performance appraisal to performance management.
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Biyani's Think Tank

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Performance Management and Retention Strategy

Dept of MBA Biyani Institute of Science & Management, Jaipur

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Think Tanks Biyani Group of Colleges

Concept & Copyright :

Biyani Shikshan Samiti

First Edition : 2011

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am glad to present this book, especially designed to serve the needs of

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2. Emphasis is on ratings and evaluation. 3.Performance rewarding and recognition is a critical

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4.Designed and monitored by HR department.

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Behavioral Performance Management

Kolbs Experiential Learning Cycle.

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to the reinforcing effects of attention on the student.

Potential Appraisal & HRD

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Q.3 Explain the Objectives of Performance appraisal. Ans.

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HRD practitioners is to be strategically proactive rather than reactive.

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Performance Planning & Measuring Performance

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Q. 9 Explain the MBO Process.

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Competency Analysis & Competency Mapping

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