Performance Appraisal

G.VENKATACHALAM M.Com., MBA., M.Phil.,(Ph.D) Associate Professor/MBA JIT

Performance Appraisal
Performance Appraisal (PA) refers to all

those procedures that are used to evaluate the

personality

performance
potential of its group members

What is Performance Appraisal

Performance appraisal may be understood as the assessment of an individuals performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities,

supervision, dependability, co-operation, judgment,

versatility, health and the alike.

Different between PM and PA

Performance Management
Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance.

Performance Appraisal
The process of evaluating how well employees perform their jobs and then communicating that information to the employees.

Performance Raters (Evaluators)

Who should be asked to evaluate the job performance of an employee?
Performance evaluators need to have:

Opportunity to observe the employees job performance

Ability to translate observations of performance into an evaluation of performance

Motivation to do a good job of observing & evaluating

Objectives of Appraisal
To effect promotions based on competence and

performance.
To confirm the services of probationary employees

upon

their

completing

the

probationary

period

satisfactorily.
To assess the training and development needs of

employees.
To decide upon a pay raise where (as in the

unorganised sector) regular pay scales have not been fixed.

Objectives of Appraisal (contd..)

To let the employees know where they stand in terms of

their performance and to provide constructive criticism and guidance to help them develop
To improve communication

To review and retain the promotional and other training

programme
It serve as a basis for influencing working habits of the

employees
Finally, performance appraisal can be used to determine

whether HR programmes such as selection, training, and

transfers have been effective or not.

Multiple Purposes/Objectives of Appraisal

General Applications
Developmental Uses

Specific Purpose
Identification of individual needs Performance feedback Determining transfer and job assignments Identification of individual strengths and developmental needs Salary Promotion Retention or termination Recognition of individual performance Lay-offs Identification of poor performers HR planning Determining organisation training needs Evaluation of organisational goal achievement Information for goal identification Evaluation of HR systems Reinforcement of organisational development Criteria for validation research Documentation for HR decisions Helping to meet legal requirements

Administrative Uses/Decisions

Organisational Maintenance/Objectives

Documentation

Advantages
provide a record of performance over a period of time.

Can be motivational with the support of a good reward and compensation

provide an opportunity for a manager to meet & discuss performance

Provide an opportunity for an employee to discuss issues and to clarify expectations

Provide the employee with feedback about their performance

Disadvantages
If not done appropriately, can be a negative experience. very time consuming, especially for a manager subject to rater errors & biases. If not done right can be a complete waste of time.

Can be stressful for all involved

How Performance Appraisal can Contribute to Firms Competitive Advantage

Improving Performance

Strategy and Behaviour

Making Correct Decisions Competitive Advantage

Values and Behaviour

Minimising Dissatisfaction and Turnover

Ensuring Legal Compliance

How Performance Appraisal can Contribute to Firms Competitive Advantage

Improving performance: By directing employee towards organizational goals By monitoring employee behaviour to ensure that the goals are met Making correct decisions: Appraisal is a critical input in making decisions on pay rise, promotion, transfer, training etc
Ensuring legal compliance: Fair appraisal systems help minimise performance-related litigation

How Performance Appraisal can Contribute to Firms Competitive Advantage

Minimising dissatisfaction and turnover: Fair and accurate appraisal results in high motivation and increased job satisfaction
Consistency

between

organizational

strategy

and

behaviour:

Employees want to be rewarded and hence they engage in behaviour that they perceive will be rewarded Performance appraisal helps in judging this consistency It helps in bringing to the fore any negative consequences of the strategy-behaviour link

Process OF PERFORMANCE APPRAISAL

Setting performance standards

Taking corrective standards

Communicating standards

Discussing results

Measuring standards

Comparing standards

Methods of Performance Appraisal

MBO Future-oriented
Cost Accounting Essay Rating Scales Checklists

360 Degree Appraisal

Assessment Centres

ACRS

Forced Choice

Tests and Observations

Appraisal Methods

Forced Distribution Critical Incident

Field Review

BARS

Past-oriented

Psychological Appraisals

Rating scales
Simplest and most popular technique

Consists

of several numerical scales representing a job-related performance criterion

each

Dependability, initiative, output, attendance etc.

Each scale ranges from excellent to poor

Each criterion is rated and total numerical score is

calculated Advantages: Adaptability, easy use, low cost Disadvantages: Raters biases,

Graphic or Linear Rating Scales

Attitude
0 5 10 15 20

No interest In work: consistent complainer

Careless: In-different Instructions

Interested in work: Accepts opinions & advice of others

10
Takes decisions promptly

Enthusiasti c about job & fellowworkers

Enthusiastic opinions & advice sought by others

Decisiveness
0
Slow to take decisions

5
Take decisions after careful consideration

15
Take decisions in consultation with others whose views he values

20
Take decisions without consultation

Checklist
Checklist of statements on the traits of the employee and his job is prepared in two columns: yes and no Each item is ticked off and the list is forwarded by the rater to the HR department Rater only does the reporting; actual evaluation is done by the HR department Points are assigned to each yes ticked and total score is calculated based on this When points are assigned it is called a weighed checklist Advantages: economy, ease of administration, limited training of rater, standardization Disadvantages: Raters bias, more use of personality than performance criteria, misinterpretation of checklist items, use of improper weights

Forced Choice Method

Forced choice method developed by J.P.Guilford

Rater is given a series of statements about the

employee, statement contains both positive and negative side of employee Rater is forced to select a statement which is most or least descriptive of the employee After selection by the rater, HR does the actual assessment

Advantage: absence of personal bias Disadvantage: statements may not be properly framed

Forced choice method

Criteria 1.Regularity on the job Most Rating Least

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

Forced Distribution Method

This method was developed by Tiffen

This method seeks to overcome the problem of

leniency Rater is compelled to distribute the rates on all points on the rating scale This method operates under the assumption that the employee performance level conforms to a normal statistical distribution It assumes that employee performance levels conform to a bell shaped curve- this is also the main weakness of this method

Forced distribution method

No. of employees

10% 20%
poor

40%

20%

10%
Excellent

Below average good average Force distribution curve

Critical Incidents Method

Focuses on certain critical behaviors of an employee

that make all the difference between effective and noneffective performance of a job
These incidents are recorded by the superiors as and

when they occur

Advantages: Evaluation is based on actual job behavior
It has descriptions in support of ratings; giving feedback

is easy
Increases the chances that the subordinates will improve

as they learn more precisely what is expected of them

Critical Incident method

Ex: A fire, sudden breakdown, accident

Workers A B C D

Reaction Informed the supervisor immediately Become anxious on loss of output Tried to repair the machine Complained for poor maintenance

scale 5 4 3 2

Was happy to forced test

Behaviourally Anchored Rating Scales(BARS)

Rating scales whose scale points are determined

by

statements

of

effective

and

ineffective

behaviors
The scales represent a range of descriptive

statements of behavior varying from the least to

the most effective

Rater must indicate which behavior on each

scale best describes an employees performance

Performance

Behavioral Anchored Rating Scales

Points Behavior

Extremely good

Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time. Can expect to unload the trucks when asked by the supervisor.

Good Above average Average Below average

6 5 4 3

Poor

Can expect to inform only a part of the customers.

Can expect to take extended coffee breaks & roam around purposelessly.

Extremely poor 1

Behaviourally Anchored Rating Scales (BARS) FEATURES:

Areas of performance to be evaluated are identified

and defined by the people who will use the scales

The scales are anchored by descriptions of actual job

behavior that represent specific levels of performance

Supervisors agree upon these Dimensions and anchors are precisely defined

All dimensions of performance to be evaluated are

based on observable behavior and are relevant to the job; BARS are tailor-made to the job
Raters who use the scale are actively involved in the

development process and hence they will be committed to the final product

Field Review Method

APPRAISE

own

department-

someone

from

corporate office or HR - does the appraisal

The outsider reviews employee records and holds

interviews with the rate and his superior

This

method

is

primarily

used

for

making

promotional decisions at managerial levels

This method is useful when comparable information

is needed from employees in different locations

Performance Tests and Observations

This applies to limited number of jobs

Tests may be of the paper-and-pencil variety or an

actual demonstration of skills

Test must be reliable and validated

Such tests are apt to measure potential more than

actual performance
For the test to be job related, observations should

be made under circumstances likely to be encountered

Cost of test development and administration should not

be too high

Confidential Records
Attendance Self expression-written or oral Ability to work with others Leadership Initiative Technical ability (job knowledge) Ability to understand new material Ability to reason Originality and resourcefulness Areas of work that suit the person best Judgment Integrity/Honesty Responsibility

Confidential Records
These are filled on a four-point scale: excellent,

good, fair and poor

Justification is required for good or poor rating Overall rating on a five-point scale may be

separately given: Outstanding, Very Good,

Good, Average, Poor

Essay Method
Rater must describe the employee within a number of

broad categories such as:

Raters overall impression of the employees performance The promotability of the employee The jobs that the employee is now able or qualified to perform Training and development assistance required by the employee

May be used independently or in combination with other

methods Extremely useful in filling information gaps about employees that often occur in the better structured checklist method

Essay Method
Strength of this method depends on the writing skills

and analytical ability of the rater

Many raters do not have good writing skills- they

become confused as to what to write

Time consuming method and depends on the memory

power of the rater

A high quality appraisal in this method may provide

little useful information about the performance of the

ratee

Cost Accounting Method

Evaluates

performance from the monetary

returns the employee yields to his or her

company
A relationship is established between the cost

included in keeping the employee and the benefit the firm derives from him or her
Performance

is

evaluated

based

on

the

established relationship between the cost and benefit

Comparative Evaluation Approaches

A collection of different methods that compare one workers performance with that of his coworkers Usually conducted by supervisors Can result in a ranking from best to worst Useful in deciding merit-pay increases, promotions and rewards There are two methods under this:
Ranking method Paired-comparison method

Comparative Evaluation Approaches-

Ranking Method

Superior ranks his subordinates in the order of merit-

from the best to worst

The HR department only knows that A is better than Bthe how and why are not questioned or answered

Subject to halo effects(Rater own judgment problems)

Rankings by two or more raters may be averaged to reduce biases

Ease of administration advantages

and

explanation

are

the

Paired Comparison Method

Appraiser compares each employee with every other

Comparative Evaluation Approaches-

employee, on one on-one basis.

The number of comparisons is calculated with the help of a formula: N(N-1)

2
N stands for the number of employees to be compared

The result is then tabulated and a rank is created from

the number of time each person is considered to be superior

Future-Oriented Appraisals
It

is

not

sufficient

to

assess

the

past

performance alone
How an employee can perform in the days to

come is equally important

For this one must focus on employee potential or

setting future performance goals

Management by Objectives(MBO)
Concept proposed by Peter Drucker in 1954 This management philosophy values and utilises

employee contribution How MBO works:

First the goals each subordinate is to attain are established It could be done by superiors alone or in consultation with the subordinates These goals can then be used to evaluate performance Next, performance standards for a particular time period are set As they perform, the subordinates know fairly well what there is to do, what has been done and what remains to be done

Management by Objectives
How MBO works: (contd.)

In the third step, the actual level of goal attainment is compared with the goals agreed upon Evaluator explores reasons for the goals not met and for the goals that were exceeded Possible training needs can be assessed in this step The superior may also be alerted to conditions in the organization that affect a subordinate but over which he has no control Final step involves establishing new goals and new strategies for those not attained previously Subordinates who successfully reach the previously established goals may be allowed to participate more in the new goal-setting process

Psychological Appraisals
Large organizations employ full-time industrial psychologists They are used for evaluations to assess future potential of employees Appraisal consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations Psychologist then writes an evaluation of the

employees intellectual, emotional, motivational and

other-related characteristics that suggest potential and may predict future performance

Assessment Centres
Mainly used for executive hiring

Now utilise for evaluating executive or supervisory potential

Assessee are required to participate in exercises, activities etc which require the same attributes for performance as in the actual job After recording the ratee behaviors, raters meet to discuss these observations

Decision regarding the performance of each assessee is based upon this discussion
Self-appraisal and peer evaluation are also used for final rating

Assessment Centres
In spite of having trained observers and psychologists, measuring these over a few days span is difficult Very costly approach Raters may be influenced by the personality of the candidate; they may evaluate the individuals social skills rather than quality of decisions

3600 Feedback
Multiple raters are involved in evaluation It is a systematic collection of performance data on an individual or a group derived from a number of stakeholdersimmediate supervisors, team members, customers, peers and self Provides a broader perspective about an employees performance Facilitates greater self-development through multi-source feedback Perceptions that the employee holds about himself can be compared with those held by the others Makes the employee feel accountable to his internal or external customers

3600 Feedback
Technique is helpful in assessing soft skills Helps in identifying and measuring interpersonal skills, customer satisfaction and team building skills Receiving feedback from multiple sources can be threatening; so the organizations must create a nonthreatening environment by emphasizing the positives Selection of rater, designing questionnaires and data analysis can be time consuming Getting a balanced objective feedback from multiple raters is difficult Separating honest observations from personal differences and biases could be difficult for raters

360 degree performance appraisal

Examples of 360 degree performance appraisal method

These companies are using 360 Degree Performance Appraisal Method Wipro Maruti Undoy HCL Technologies Wyeth Consumer Health (WCH)

Infosys
Reliance Industries

Effective Performance Appraisals

Consistent with the strategic of mission of the organization Beneficial as a development tool Useful as an administrative tool Legal & job related Viewed as generally fair by employee Effective in documenting employee performance
48

Performance expectations Standardization Qualified appraisers Open communication Employee access to results Unbiased Acceptable & understandable Regularity Feedback

Problems of Performance Appraisal

Judgment errors First impressions(primacy effect) Halo effect- subordinate performance affects the raters evaluation of
other performance dimensions.(Ex: absences)

Horn effect- negative quality of the employee being rated harshly Leniency- rater may be rated very strictly or very leniently Central tendency-an alternative for leniency effect( all are take avg) Stereotyping-mental picture that an individual sex, age, religion,caste Poor appraisal forms Lack of rater awareness 49 Ineffective organizational policies and practices

Performance Feedback
Feedback not only helps employees to do their work

more effectively, but also improves communication

between the supervisor and the employee. Frequently, supervisors, subordinates and co-workers do not provide

feedback to each other.

performance feedback provides information that helps employee to change or maintain their

behaviors so that the organization continues to operate smoothly.

50

Essential/ importance of Performance Feedback

Describe behavior

Specific
Non evaluative- must not respond to personal worth of the person Action plan- feedback specify the consequences of action

Continuous
Reinforcement Need based Proper timing Empathetic-(feedback must satisfy the needs of the rater and ratee)
51

EMPLOYEE MOBILITY/IMPLICATION OF JOB CHANGE

Employee mobility or job change provides flexibility. Employee mobility is going to increase as businesses continue to expand their global operations, and those companies best prepared will be one which are the most competitive. Types of employee mobility are Internal mobility: transfer, promotions, and demotions etc External mobility: resignation, retirement and termination etc

PURPOSE/OBJECTIVES OF EMPLOYEE MOBILITY

To Improve organizational effectiveness To maximise employee efficiency To cope with changes in operations To ensure discipline

8-2

PLACEMENT
Placement is the actual posting of an employee to a specific jobwith rank and responsibilities attached to it. Most

organizations put new recruits on probation for a given period of

time after which their services are confirmed. Placement, however, should be made with as little disruption to the

employee and organization as possible.

Benefits of Placement
The employee is able to: Show good results on the job. Get along with people easily. Keep his spirits high, report for duty regularly. Avoid mistakes and accidents.

Placement, Induction, Internal Mobility And Separations

PROMOTION
PROMOTION is the movement of a person Lower level to a higher level position in the organization. According to paul pigors promotion is advancement of an employee to a better job better in terms of greater responsibility,

more prestige or status, greater skill and

especially increased rate of pay or salary.

 To put the employee in a position where he will be of greater value to the company. To develop competitive spirit in the employees to acquire the skill and knowledge etc. required by higher level jobs. To promote employee self-development and make them await their turn of promotions. It reduce labor turnover To promote employees interest in training and development programmes and in term development areas.

 To develop internal source of employees ready to take jobs at higher levels in the organization. Employees have little motivation if better job are reserved for outsiders. To built loyalty among employees and to boost their morale. To create among employees a feeling of happiness with their present working conditions and encourage them to succeed in the company.

A sound promotion policy reduces the personnel problems regarding promotions considerably and ensures the employees fair

chances of advancement.

 The promotion policy should be in writing. The promotion policy should lay down what percentage of vacancies in higher levels of hierarchy are to be filled up by promotion. The promotion policy should mention the basis of promotion-seniority or merit.

Types of Promotion
Horizontal promotion Vertical promotion Dry promotion

Organizations adopt different bases

of

promotion

depending

upon

their

nature, size, management etc.

The well established bases of promotion are :

1. Seniority bases

2. Merit bases
3. Seniority-cum-merit basis

 Seniority means length of recognized services in an organization. If seniority as a bases of promotion, the senior most person in a lower grade shell be promoted as and when there is an opening in a higher position. The logic behind considering the seniority as a bases of promotion is that there is a positive correlation between the length of service in the same job and the amount of knowledge and the level of skill acquired by an employee in an organisation.

It is relatively easy to measure the length of service and to judge the seniority. Trade unions generally emphasis on seniority rather then merit as a basis of promotion. The employees trust this method as there is no scope for favouritism, discrimination and judgement. Security and certainty is also a plus point in the use of seniority. Seniority basis of promotion helps in reducing labour turnover.

It is not necessary that employees learn more

with length of service.

It demotivates the young and more competent

employees results in greater labour turnover.

It kill the zeal and interest for self development

as everybody will be promoted without showing

any all round growth or promise.

Merit means ability to work. It denote an individual employees skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past employment record. Management personnel generally prefer merit as the basis of promotion. Merit may be determined by job performance and by analysis of employee potential for development through written or oral examinations or personal interviews or other record of performance.

The skill of an employee can be better utilised at a higher level. Competent employees are motivated to exert all their energies and contribute to organisational efficiency and effectiveness. This system continuously encourages the employees to acquire new skill, knowledge etc. for all round development.

Measuring merit is not always easy. Many employees, particularly, trade unions distrust the managements integrity in judging merit. The purpose of promotion may not be served if merit is taken as the sole criteria for promotion. The techniques of merit measurement are subjective.

 Management mostly prefer merit as a basis of promotion as they are interested in enriching organizational effectiveness by enriching its human resources. Trade unions favor seniority as the sole basis of promotion with a view to satisfy the interests of majority of their members.

The combination of both seniority and merit may be

considered as a sound basis for promotion.

Demotion refers to the lowering down of the status, salary and responsibility of an employee. Demotion is just opposite to promotion. Demotion is a shift to a position in which responsibilities are decreased. Promotion is, in a sense, an increase in rank and demotion is decrease in rank According to Dale Yoder

 Inadequacy on the part of the employees in term of job performance attitude and capability. Demotion may be used as disciplinary tools against misbehaving employees. If there is mistake in staffing i.e. a person is promoted wrongly. When, because of a change in technology, method and practices, old hands are unable to adjust or when employees because of ill health or personal reasons, cannot do their job properly.

 Unsuitability of the employee to higher level Adverse business condition

New technology and new methods of operation

demand new and higher skills Employee are demoted on disciplinary grounds

8-7

Transfer
A transfer is a change in job assignment. It may involve a promotion or demotion Or no change at all in status and responsibility
To meet organizational requirements To satisfy employee needs To utilize employees better To make the employee more versatile To adjust the workforce To provide relief to overburdened employees To reduce conflicts To punish employees
Placement, Induction, Internal Mobility And Separations

Purposes of transfer

8-8

Benefits and problems associated with transfers

Benefits
Improve employee skills Reduce monotony, boredom Remedy faulty placement decisions Prepare the employee for challenging

Problems Inconvenient to employees who otherwise do not want to move Employees may or may not fit in the new location/department Shifting of experienced hands may affect productivity Discriminatory transfers may affect employee morale.

assignments in future
Stabilise changing work requirements in

different departments/locations
Improve employee satisfaction and morale Improve employer-employee relations
Placement, Induction, Internal Mobility And Separations

8-7

Types of Transfer
On the basis of purpose
Production transfer

On the basis of unit

Sectional transfer

Replacement transfer

Shift transfer

Departmental transfer

Remedial transfer

Inter-plant transfer

Versatility transfer

Precautionary transfer Placement, Induction, Internal Mobility And Separations

8-14

EMPLOYEE SEPARATIONS
Separation means termination of service of
agreement with the organization for one or

other

reason.

Layoffs,

resignations,

and

dismissals etc.. Separations are painful to both the party and should, therefore be administered carefully.

Placement, Induction, Internal Mobility And Separations

8-12

Types/methods of Employee Separations

called resignation. It is always better to find why the

Resignation: A voluntary separation initiated by the employee

himself is

employee has decided to quit the organization. Properly conducted exit interviews. Retirement: superannuation Termination of service on reaching the age of is called retirement. to To avoid retiring problems, employees

organizations normally plan beforehand.

replacements

Premature retirement Voluntary Retirement Scheme (VRS) Forced retirement Compulsory retirement

8-14

Employee Separations
Retrenchment: A permanent lay off for reasons other than punishment but not retirement or termination owing to ill health is called retrenchment. Legally speaking, employers in India are required to give advance notice or pay equivalent wages before the actual lay off date. (50 per cent of basic wages plus allowances)
Death: Some employees may die in service. Death caused by occupational hazards, would attract the provisions of Workmen's Compensation Act, 1923. The normal separation of people from

an organization due to resignation, retirement or death is known as Attrition

Lay off: A lay off entails the separation of the employee from the organization temporarily for economic or business reasons.
Placement, Induction, Internal Mobility And Separations

8-16

Employee Separations
Suspension: Suspension means prohibiting an employee from attending work and performing normal duties assigned to him.

Discharge and dismissal: The termination of the services of an employee as a disciplinary measure for some misconduct is called dismissal. Discharge also means termination of the services of an employee but not necessarily as a punishment. A discharge does not arise from a single irrational act ( such as alcoholism, violation of rules, insubordination, carelessness, dishonesty, inefficiency, violent acts, unauthorized absence for a long time)
Placement, Induction, Internal Mobility And Separations

Controlling

Controlling
Controlling

The process of measuring performance and taking action to ensure desired results

Meaning of controlling
Management control is the process by which managers assure that resources are obtained and used of effectively an in the

accomplishment objectives

organizations

Characteristics of Controlling
Managerial Function Forward Looking Continuous activity Control is related to planning Essence of control is action Controlling is goal oriented Dynamic

Control Systems & Process or Steps

Output Standard

Measures performance results in terms of quantity, quality, cost, or time. Measures work efforts that go into a performance task

Input Standard

Types Of Control Systems

Types Of Control Systems

Management By Exception

Focuses attention on substantial differences between desired and actual performance Ensure the right directions are set and the right resource inputs are available Ensure the right things are being done as part of work-flow operations

Feed forward Controls

Concurrent Controls

Feedback Controls

Ensure that final results are up to desired standards

Management By Objectives

MBO (Management By Objectives)

A process of joint objective setting between superior and subordinate

Importance of Controlling
1.Achievement of goals 2. Execution and revision of plans

3. Brings order and discipline

4. Facilitates decentralization 5. Promotes coordination

6. Cope with uncertainty and change

Controlling Techniques

Traditional Control Techniques

Modern Control Techniques

1. Budgetary Control 2. Break even point analysis 3. Statistical data 4. Special Reports 5. Personal Observation

1. Zero Based Budgeting 2. Responsibility Accounting 3. Management Audit 4. PERT & CPM

ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Breakeven Analysis

Any discontent or dissatisfaction, whether expressed or not, whether valid or not, arising out of anything connected with the company which an employee thinks, believes or even feels to be unfair, unjust or inequitable.

Any form of dissatisfaction.

Dissatisfaction must be arise out of employment.

Discontent can arise out of real or imaginary reasons. Discontent may be voiced or unvoiced.

Factual/Genuin e or valid reason Imaginary

Disguised or unknown

working condition

Frustration-(Irritation) Alienation(Unfriendliness)

Management policy De motivation Personal adjustment Slackness-(softness) Low productivity Absenteeism In discipline Increase wastages

Observation Grievance Procedure Gripe Boxes Open Door Policy Exit Interview Opinion Survey

Checklist for Grievance Handling

Let the employee talk Check the facts

Telling the employee

Follow through

MODEL GRIEVANCE PROCEDURE

The National Commission on labor has suggested a model grievance procedure:
The aggrieved employee shall convey grievance verbally to the officer designated by the management (Reply time bound 48 hours) If the grievant is not satisfied with the answer, he or she shall, then present the grievances to the departmental head (Reply time 3 days) If person is still not satisfied with the decision of dept head, the employee can approach, employee can approach to the grievance committee for settlement of his or her grievance. (Reply time 7 days) If still employee is not satisfied either with decision made by the grievance committee, person can make appeal to the mgt for revision of the decision. (Reply time 1 week) If the employee is still not satisfied with the mgt decision, the grievance is referred to a voluntary arbitration within a week after decision taken by management . The decision of the arbitrator is final and binding on both parties. i.e, the management and the union