The aim of the project was to compile a report on a management process within an organisation; design, implement and document

a procedure to deal with a management issue; review and evaluate the process. The essay describes management in general, its functions and levels concentrating on the process of human resource management in particular. The procedure of performance appraisal, as its part, is described in more details. A performance appraisal form was designed and consequently the process has been reviewed and evaluated. Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others. The verb manage comes from the Italian maneggiare (to handle, train, control horses), which in turn derives from the Latin manus (hand). The French word mesnagement (later mnagement) influenced the development in meaning of the English word management in the 15th and 16th centuries.[16] Some definitions of management are: Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials and money. According to the management guru Peter Drucker (19092005), the basic task of a management is twofold: marketing and innovation.

Another way of thinking, Mary Parker Follett (18681933), defined management as "the art of getting things done through people". She described management as philosophy.[11] It is essential to notice that management today is not limited to managing human resources only; it has been divided into various branches like strategic management, financial management, time

management, operations management, crisis management, etc. Each of these branches is handled by managers who specialize in these fields. Today the importance of good management has increased significantly. Managers achieve the desired goals through performing key functions: planning, organising, staffing, leading, and controlling. For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other & each affects the performance of others. Planning It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of predetermined goals. According to KOONTZ, Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc. Organizing It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnels. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves: Identification of activities Classification of grouping of activities Delegation of authority and creation of responsibility Coordinating authority and responsibility relationships

Staffing It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behaviour etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & ODonell, Managerial function of staffing involves manning the organization structure through proper and effective selection; appraisal & development of personnel to fill the roles designed on the structure. Staffing involves: Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place) Recruitment, selection & placement Training & development Remuneration Performance appraisal Promotions & transfer Directing It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements: Supervision Motivation Leadership Communication Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. 3

Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. Controlling It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation. According to Koontz & ODonell Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished. Therefore controlling has following steps: Establishment of standard performance Measurement of actual performance Comparison of actual performance with the standards and finding out deviation if any Corrective action

Management is divided into a number of levels. The level determines the amount of authority and status as well as the chain of command. The number of management depends on the size of the business and work force; they can either increase or decrease. The levels of management can be classified in three broad categories: Top-level managers Consists of board of directors, president, vice-president, CEOs, etc. They are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable to the shareholders and general public.

According to Lawrence S. Kleiman, the following skills are needed at the top managerial level. Broadened understanding of how: competition, world economies, politics, and social trends effect organizational effectiveness. Middle-level managers Consist of general managers, branch managers and department managers. They are accountable to the top management for their department's function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company's policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance. Some of their functions are as follows: Designing and implementing effective group and intergroup work and information systems Defining and monitoring group-level performance indicators Diagnosing and resolving problems within and among work groups Designing and implementing reward systems supporting cooperative behaviour Low-level managers Consist of supervisors, section leads, foremen, etc. They focus on controlling and directing. They usually have the responsibility of assigning employees tasks, guiding and supervising employees on day-to-day activities, ensuring quality and quantity production, making recommendations, suggestions, and up channelling employee problems, etc. First-level managers are role models for employees that provide: Basic supervision, Motivation, Career planning, Performance feedback, Supervising the staffs. When it comes to managers, it is necessary to mention that they fulfil a variety of roles. Dr. Henry Mintzberg, a prominent management researcher, highlighted that: what managers do can best be described by looking at the roles they play at work. In the late 1960s, Henry Mintzberg concluded that managers perform ten different, but highly interrelated roles. Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management: Inside our Strange World of Organizations," in 1990. The ten roles are: Figurehead, Leader, Liaison, Monitor, Disseminator, Spokesperson, Entrepreneur, Disturbance Handler, Resource Allocator, and Negotiator. The 10 roles are then divided up into three categories, as follows: 5

Category Interpersonal

Role Figurehead Leader Liaison

Informational

Monitor Disseminator Spokesperson

Decisional

Entrepreneur Disturbance Handler Resource Allocator Negotiator

Interpersonal Category The roles in this category involve providing information and ideas. Figurehead - As a manager, you have social, ceremonial and legal responsibilities. You're expected to be a source of inspiration. People look up to you as a person with authority, and as a figurehead. Leader - This is where you provide leadership for your team, your department or perhaps your entire organization; and it's where you manage the performance and responsibilities of everyone in the group. Liaison - Managers must communicate with internal and external contacts. You need to be able to network effectively on behalf of your organization.

Informational Category The roles in this category involve processing information. Monitor - In this role, you regularly seek out information related to your organization and industry, looking for relevant changes in the environment. You also monitor your team, in terms of both their productivity, and their well-being. Disseminator - This is where you communicate potentially useful information to your colleagues and your team. 6

Spokesperson - Managers represent and speak for their organization. In this role you're responsible for transmitting information about your organization and its goals to the people outside it.

Decisional Category The roles in this category involve using information. Entrepreneur - As a manager, you create and control change within the organization. This means solving problems, generating new ideas, and implementing them. Disturbance Handler - When an organization or team hits an unexpected roadblock, it's the manager who must take charge. You also need to help mediate disputes within it. Resource Allocator - You'll also need to determine where organizational resources are best applied. This involves allocating funding, as well as assigning staff and other organizational resources. Negotiator - You may be needed to take part in, and direct, important negotiations within your team, department, or organization. It is important to ascertain that all the processes within the company function well including human resources, upon which depends the operation of the whole organisation. Human resource management deals with the most exclusive asset of the organization - employees. As we now live in a world of strong competition, it is a must for an organisation to respond to changes and new requirements effectively in order to stay in business. Qualified and well trained staff can carry an organisation through a period of change and ensure its future success. Effective human resource management is crucial for all types of organisations because of the importance of hiring and maintaining a committed and competent staff. Human Resource Management (HRM) is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labour laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will typically also serve as the company's primary liaison with the employees' representatives. HR's duties may be performed by a handful of trained professionals or even by non-HR personnel. In larger companies, an entire functional group is typically dedicated to the discipline, with staff specializing in various HR tasks and functional leadership engaging in strategic decision making across the business. There exist three principles 7

that every manager shall take into consideration in order to lead more effectively. They are the following: all managers are human resource managers; employees are most important assets; human resource management as a process must match the needs of the organisation with the needs of the employee. An HRM strategy consists of the following factors: best fit and best practice, which means that there is correlation between the HRM strategy and the overall corporate strategy. Human Resource Management is involved in such areas as planning, recruitment, selection, pay and benefits, performance appraisal, training and development. Benjamin Schneider wrote about managing people: Effectiveness is not one sided. To be effective in work, certain people must do many things well and they as people must derive same value from their efforts. To have an effective staffing process, it requires as a first step the explicit job description and specification and their remunerations." [17] First of all, it is essential to estimate quantity and quality of employees needed to meet objectives of the organization applying various techniques like managerial estimates, statistics, work studies, etc. After that quality and quantity of available labour is taken into consideration. Thus, deficit and surplus (or supply and demand) must be estimated, after which an action plan is prepared. After the planning is completed, HR managers are attracting a group of potential candidates to apply for available vacancies. Before doing that they are making a key choice of whether recruiting internally or externally. A job description and job specifications are outlined. During selection stage, a number of tools are used, such as interviews (information about candidates is gained, information about the job is fully available to the candidates, applicants are left with the impression of fair treatment); selection tests (intelligence tests, aptitude tests, proficiency tests, personality tests); reference checking. When it comes to pay and benefits, intrinsic and extrinsic rewards are offered. Thus, depending on the particular employee and their position, they give preference to autonomy, responsibility, and challenge or job security, working conditions, and pay. One of the key functions or HRM is performance appraisal, periodic assessment of the performance of the individuals. Training and development is also important in order to offer the knowledge, skills and attitudes to the employees as well as to generate growth of an individual. I would like to look into the process of performance appraisal in more details. A performance appraisal (PA) or performance evaluation [1] is a systematic and periodic process that assesses an individual employees job performance and productivity in relation to certain pre-established criteria

and organizational objectives.[2][3] Other aspects of individual employees are considered as well, such as organizational citizenship behaviour,[4] accomplishments, potential for future improvement, strengths and weaknesses, etc. [2][5] To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods.[1] A PA is typically conducted annually.[6] The interview could function as providing feedback to employees, counselling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions.[6] PA is often included in performance management systems. Performance management systems are employed to manage and align" all of an organization's resources in order to achieve highest possible performance.[1] How performance is managed in an organization determines to a large extent the success or failure of the organization. Therefore, improving PA for everyone should be among the highest priorities of contemporary organizations.[7] Some applications of PA are performance improvement, promotions, termination, test validation, and more.[8] While there many potential benefits of PA, there are also some potential drawbacks. For example, PA can help facilitate management-employee communication; however, PA may result in legal issues if not executed appropriately [9][1] as many employees tend to be unsatisfied with the PA process.[10] Performance appraisals (PAs) are conducted at least annually, and however, it has been acknowledged that appraisals conducted more frequently (more than once a year) may have positive implications for both the organization and employee.[9] It is suggested that regular performance feedback provided to employees may quell any unexpected and/or surprising feedback to year-end discussions.[10] In a recent research study concerning the timeliness of PAs, one of the respondents even suggested that the performance review should be done formally and more frequently, perhaps once a month, and recorded twice a year.[10] Other researchers propose that the purpose of PAs and the frequency of their feedback are contingent upon the nature of the job and characteristics of the employee. For example, employees of routine jobs where performance maintenance is the goal would benefit sufficiently from annual PA feedback. On the other hand, employees of more discretionary and non-routine jobs, where goalsetting is appropriate and there is room for development, would benefit from more frequent PA feedback. [6] There are a number of potential benefits of organizational performance management conducting formal performance appraisals (PAs). There has been a general consensus in the belief that PAs lead to positive implications of organizations.[13] Furthermore, PAs can benefit an organizations

effectiveness.[12] One way is PAs can often lead to giving individual workers feedback about their job performance.[9] From this may spawn several potential benefits such as the individual workers becoming more productive.[14] Other potential benefits include: Facilitation of communication: communication in organizations is considered an essential function of worker motivation.[9] It has been proposed that feedback from PAs aid in minimizing employees perceptions of uncertainty.[12] Fundamentally, feedback and management-employee communication can serve as a guide in job performance.[9] Enhancement of employee focus through promoting trust: behaviours, thoughts, and/or issues may distract employees from their work, and trust issues may be among these distracting factors. Such factors that consume psychological energy can lower job performance and cause workers to lose sight of organizational goals.[9] Properly constructed and utilized PAs have the ability to lower distracting factors and encourage trust within the organization. Goal setting and desired performance reinforcement: organizations find it efficient to match individual workers goals and performance with organizational goals.[9] PAs provide room for discussion in the collaboration of these individual and organizational goals. Collaboration can also be advantageous by resulting in employee acceptance and satisfaction of appraisal results. Performance improvement: well constructed PAs can be valuable tools for communication with employees as pertaining to how their job performance stands with organizational expectations.[12] At the organizational level, numerous studies have reported positive relationships between human resource management (HRM) practices"[9] and performance improvement at both the individual and organizational levels. Determination of training needs: Employee training and development are crucial components in helping an organization achieve strategic initiatives.[9] It has been argued that for PAs to truly be effective, post-appraisal opportunities for training and development in problem areas, as determined by the appraisal, must be offered. PAs can especially be instrumental for identifying training needs of new employees.[5] Finally, PAs can help in the establishment and supervision of employees career goals.[12] Even with all the potential advantages of formal performance appraisals (PAs), there are still potential drawbacks as well. It has been noted that determining the relationship between individual 10

job performance and organizational performance can be a difficult task. Generally, there are two overarching problems from which several complications spawn. One of the problems with formal PAs is there can be detrimental effects to the organization(s) involved if the appraisals are not used appropriately. The second problem with formal PAs is they can be ineffective if the PA system does not correspond with the organizational culture and system.[9] Complications stemming from these issues are: Detrimental to quality improvement: it has been proposed that the use of PA systems in organizations adversely affect organizations pursuits of quality performance. It is believed by some scholars and practitioners that the use of PAs is more than unnecessary if there is total quality management. Negative perceptions: Quite often, individuals have negative perceptions of PAs.[13] Receiving and/or the anticipation of receiving a PA can be uncomfortable and distressful [12] and potentially cause tension between supervisors and subordinates.[14] Errors: PAs should provide accurate and relevant ratings of an employees performance as compared to pre-established criteria (i.e. organizational expectations). Nevertheless, supervisors will sometimes rate employees more favourably than that of their true performance in order to please the employees and avoid conflict.[9] Inflated ratings are a common malady associated with formal" PA. Legal issues: when PAs are not carried out appropriately, legal issues could result that place the organization at risk.[14] PAs are used in organizational disciplinary programs [12] as well as for promotional decisions within the organization.[9] The improper application and utilization of PAs can affect employees negatively and lead to legal action against the organization. Performance goals: performance goals and PA systems are often used in association. Negative outcomes concerning the organizations can result when goals are overly challenging or overemphasized to the extent of effecting ethnics, legal requirements, or quality. Moreover, challenging performance goals can impede on employees abilities to acquire necessary knowledge and skills.[15] Especially in the early stages of training, it would be more beneficial to instruct employees on outcome goals than on performance goals.[9] Derail merit pay or performance-based pay: some researchers contend that the deficit in merit pay and performance-based pay is linked to the fundamental issues stemming from PA systems. 11

Human resource management (HRM) conducts performance management. Performance management systems consist of the activities and/or processes embraced by an organization in anticipation of improving employee performance, and therefore, organizational performance. Consequently, performance management is conducted at the organizational level and the individual level. At the organizational level, performance management oversees organizational performance and compares present performance with organizational performance goals. The achievement of these organizational performance goals depends on the performance of the individual organizational members. Therefore, measuring individual employee performance can prove to be a valuable performance management process for the purposes of HRM and for the organization. Many researchers would argue that performance appraisal is one of the most important processes in Human Resource Management.[10] The performance management process begins with leadership within the organization creating a performance management policy. Primarily, management governs performance by influencing employee performance input (e.g. training programs) and by providing feedback via output (i.e. performance assessment and appraisal). The ultimate objective of a performance management process is to align individual performance with organizational performance. A very common and central process of performance management systems is performance appraisal (PA). The PA process should be able to inform employees about the organization's goals, priorities, and expectations and how well they are contributing to them. There are three main methods used to collect performance appraisal (PA) data: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods.[4] Objective production The objective production method consists of direct, but limited, measures such as sales figures, production numbers, the electronic performance monitoring of data entry workers, etc.[4] The measures used to appraise performance would depend on the job and its duties. Although these measures deal with unambiguous criteria, they are usually incomplete because of criterion contamination and criterion deficiency. Criterion contamination refers to the part of the actual criteria that is unrelated to the conceptual criteria.[4] In other words, the variability in performance can be due to factors outside of the employees control. Criterion deficiency refers to the part of the conceptual criteria that is not measured by the actual criteria.[4] In other words, the quantity of production does not necessarily indicate the quality of the products. Both types of criterion 12

inadequacies result in reduced validity of the measure.[4] Regardless of the fact that objective production data is not a complete reflection upon job performance, such data is relevant to job performance. The Happy-Productive Worker Hypothesis The happy-productive worker hypothesis states that the happiest workers are the most productive performers, and the most productive performers are the happiest workers yet, after decades of research, the relationship between job satisfaction and job performance produces only a weak positive correlation. Personnel The personnel method is the recording of withdrawal behaviours (i.e. absenteeism, accidents). Most organizations consider unexcused absences to be indicators of poor job performance, even with all other factors being equal; however, this is subject to criterion deficiency. The quantity of an employees absences does not reflect how dedicated he/she may be to the job and its duties. Especially for blue-collar jobs, accidents can often be a useful indicator of poor job performance, [4] but this is also subject to criterion contamination because situational factors also contribute to accidents. Once again, both types of criterion inadequacies result in reduced validity of the measure.[4] Although excessive absenteeism and/or accidents often indicate poor job performance rather than good performance, such personnel data is not a comprehensive reflection of an employees performance.[4] Judgmental Evaluation Judgmental evaluation appears to be a collection of methods, and as such, could be considered a methodology. A common approach to obtaining PAs is by means of raters.[1] Because the raters are human, some error will always be present in the data. The most common types of error are leniency errors, central tendency errors, and errors resulting from the halo effect.[1] These errors arise predominantly from social cognition and the theory in that how we judge and evaluate other individuals in various contexts is associated with how we acquire, process, and categorize information.[1] An essential piece of this method is rater training. Rater training is the process of educating raters to make more accurate assessments of performance, typically achieved by reducing the frequency of halo, leniency, and central-tendency errors.[1] Rater training also helps the raters develop a 13

common frame of reference for evaluation of individual performance. Many researchers and survey respondents support the ambition of effectual rater training.[10] However, it is noted that such training is expensive, time consuming, and only truly functional for behavioural assessments.[10] Another piece to keep in mind is the effects of rater motivation on judgmental evaluations. It is not uncommon for rating inflation to occur due to rater motivation (i.e. organizationally induced pressures that compel raters to evaluate ratees positively).[1] Typically, raters are motivated to give higher ratings because of the lack of organizational sanction concerning accurate/inaccurate appraisals, the rater's desire to guarantee promotions, salary increases, etc., the rater's inclination to avoid negative reactions from subordinates, and the observation that higher ratings of the ratees reflect favourably upon the rater.[1] The main methods used in judgmental performance appraisal are: [1] Graphic Rating Scale: graphic rating scales are the most commonly used system in PA.[1] On several different factors, subordinates are judged on 'how much' of that factor or trait they possess. Typically, the raters use a 5- or 7-point scale; however, there are as many as 20-point scales.[1] Employee-Comparison Methods: rather than subordinates being judged against pre-established criteria, they are compared with one another. This method eliminates central tendency and leniency errors but still allows for halo effect errors to occur.[1] The rank-order method has raters ranking subordinates from best to worst, but how truly good or bad one is on a performance dimension would be unknown.[1] The paired-comparison method requires the rater to select the two "best" subordinates out of a group on each dimension then rank individuals according to the number of times each subordinate was selected as one of the "best".[1] The forced-distribution method is good for large groups of ratees. The raters evaluate each subordinate on one or more dimensions and then place (orforce-fit, if you will) each subordinate in a 5 to 7 category normal distribution.[1] The method of top-grading can be applied to the forced distribution method. This method identifies the 10% lowest performing subordinates, as according to the forced distribution, and dismisses them leaving the 90% higher performing subordinates. Behavioural Checklists and Scales: behaviours are more definite than traits. The critical incidents method (or critical incident technique) concerns specific behaviours indicative of good or bad job performance.[1] Supervisors record behaviours of what they judge to be job performance relevant, and they keep a running tally of good and bad behaviours. A discussion on performance may then follow. The behaviourally anchored rating scales (BARS) combine the critical incidents method with 14

rating scale methods by rating performance on a scale but with the scale points being anchored by behavioural incidents.[1] Note that BARS are job specific. Peer and Self Assessments While most judgmental PA research is evaluated by a superior (e.g. supervisor, manager), peer assessments are evaluated by ones colleagues. With self-assessments, individuals evaluate themselves.[1] Peer Assessments: members of a group evaluate and appraise the performance of their fellow group members.[1] There are three common methods of peer assessments. Peer nomination involves each group member nominating who he/she believes to be the best on a certain dimension of performance. Peer ratings have each group member rate each other on a set of performance dimensions. Peer ranking requires each group member rank all fellow members from best to worst on one or more dimensions of performance. Self-Assessments: for self-assessments, individuals assess and evaluate their own behaviour and job performance.[1] It is common for a graphic rating scale to be used for self-assessments. Positive leniency tends to be a problem with self-assessments.[4] 360-Degree Feedback: 360-degree feedback is multiple evaluations of employees which often include assessments from superior(s), peers, and ones self.[1] Performance Appraisal Interviews The performance appraisal (PA) interview is typically the final step of the appraisal process.[1] The interview is held between the subordinate and supervisor. The PA interview can be considered of great significance to an organizations PA system.[6] It is most advantageous when both the superior and subordinate participate in the interview discussion and establish goals together.[1] Three factors consistently contribute to effective PA interviews: the supervisors knowledge of the subordinates job and performance in it, the supervisors support of the subordinate, and a welcoming of the subordinates participation.[6]

Numerous researchers have reported that many employees are not satisfied with their performance appraisal (PA) systems.[10] Studies have shown that subjectivity as well as appraiser bias is often a problem perceived by as many as half of employees.[10] Appraiser bias, however, appears to be 15

perceived as more of a problem in government and public sector organizations.[10] Also, according to some studies, employees wished to see changes in the PA system by making the system more objective, improving the feedback process, and increasing the frequency of review.[10] In light of traditional PA operation defects, organizations are now increasingly incorporating practices that may improve the system. These changes are particularly concerned with areas such as elimination of subjectivity and bias, training of appraisers, improvement of the feedback process and the performance review discussion.[10] According to a meta-analysis of 27 field studies, general employee participation in his/her own appraisal process was positively correlated with employee reactions to the PA system. More specifically, employee participation in the appraisal process was most strongly related to employee satisfaction with the PA system. Concerning the reliability of employee reaction measures, researchers have found employee reaction scales to be sound with few concerns through using a confirmatory factor analysis that is representative of employee reaction scales. Researchers suggest that the study of employees reactions to PA is important because of two main reasons: employee reactions symbolize a criterion of interest to practitioners of PAs and employee reactions have been associated through theory to determinants of appraisal acceptance and success. Researchers translate these reasons into the context of the scientist-practitioner gap or the lack of alignment between research and practice.

Nowadays management has gained considerable significance. It is up to managers to enable an organisation to operate successfully, to lead its employees in order to achieve objectives and goals. Managers perform a number of functions depending on their level. In order to sustain an organisations growth and development, managers perform a set of roles, such as interpersonal, informational, and decisional. It is vital to ascertain that an organisation is operating in accordance with its external environment but also consider functioning of its inner processes, including human resource management and performance appraisal as its component. Performance appraisal is a most important tool of human resource managers and cannot be disregarded. As the assignment reveals, each process of an organisation management requires detailed attention and presents a significant link of the chain of the overall operation of the business.

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References:

1 Muchinsky, P. M. (2012). Psychology Applied to Work (10th ed.). Summerfield, NC: Hypergraphic Press. 2 Manasa, K. & Reddy, N. (2009). Role of Training in Improving Performance. The IUP Journal of Soft Skills, 3, 72-80. 3 Abu-Doleh, J. & Weir, D. (2007). Dimensions of performance appraisal systems in Jordanian private and public organizations. International Journal of Human Resource Management, 18(1), 75-84. 4 Muchinsky, P. M. (2006).Psychology applied to work (8th ed.). Belmont, CA: Thomson Wadsworth. 5 Broady-Preston, J. & Steel, L. (2002). Employees, customers, and internal marketing strategies in LIS. Library Management, 23, 384-393. 6 Cederblom, D. (1982). The performance appraisal interview: A review, implications, and suggestions. Academy of Management Review, 7(2), 219-227. 7 Muczyk, J. P. & Gable, M. (1987, May). Managing sales performance through a comprehensive performance appraisal system. Journal of Personal Selling and Sales Management, 7, 41-52. 8 DeNisi, A. & Pritchard, R. (2006, July). Performance appraisal, performance management, and improving individual performance: A motivational framework. Management and Organization Review, 2(2), 253-277. 9 Schraeder, M. Becton, J., & Portis, R. (2007, Spring). A critical examination of performance appraisals. The Journal for Quality and Participation, 20-25. 10 Sudarsan, A. (2009). Performance appraisal systems: A survey of organizational views. The Icfai University Journal of Organizational Behavior, 3(1), 54-69.

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11 Vocational Business: Training, Developing and Business & Economics - 2003. - Page 51.

Motivating People by Richard Barrett -

12 Spinks, N., Wells, B., & Meche, M. (1999). Appraising appraisals: computerized performance appraisal systems. Career Development International, 4(2), 94-100. 13 Pettijohn, L., Parker, R., Pettijohn, C., & Kent, J. (2001). Performance appraisals: usage, criteria, and observations. The Journal of Management Development, 20, 754-771. 14 Jenks, J. M. (1991). Do your performance appraisals boost productivity? Management Review, 80(6), 45-47. 15 Kanfer, R. & Ackerman, P. L. (1989). Motivation and cognitive abilities: An integrative/aptitude-treatment interaction approach to skill acquisition. Journal of Applied Psychology, 74, 657-690. 16 Oxford English Dictionary 17 Madurai, Importance of Management, [Online],

http://madurai.hubpages.com/hub/importance-of-staffing, 8 December 2011.

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Functions of Management - Planning, Organizing, Staffing, Directing and controlling:

http://www.managementstudyguide.com/management_functions.htm

19 Mintzberg's Management Roles - Team Management Skills from Mind Tools http://www.mindtools.com/pages/article/management-roles.htm

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