FINAL TERM ASSIGNMENT 2

HUMAN RESOURCE MANAGEMENT

Course Code: HRM 604
Program: MBA

PREPARED FOR
Prof. Dr. Mohd H R Joarder
Director,

Institute of Business and Economic Research,

United International University

SUBMITTED BY
Priyanka Kundu
Id: 112 193 011

Sec: A

DATE OF SUBMISSION
04.06.2020
Performance Appraisal is an evaluation on employee’s current or past performance relative
to his performance standard. Performance appraisal gives more emphasis on setting work
standard, assessing performance and providing feedback once or twice.

For example, employee score 70% score in performance appraisal that means average, below
70% consider poor and above consider good performance. So, first job to set standard and give
target to employees a beginning of year. It they fail to target standard then find the reason
behind this and go for training.

MERITS AND DEMERITS OF SOURCES OF APPRAISAL PROCESS

Depending only on supervisors’ appraisal isn’t acceptable. With benefit there is also some
danger of bias for or against the employees. The following sources has involved with appraisal
process and they have both merits and Demerits:

✓ Peer Appraisal
✓ Appraisal by sub-ordinate
✓ Appraisal by supervisors
✓ Self-Appraisal

MERITS OF PEER APPRAISAL

Peer Assessment is an assessment which allows employees to assess each other's performance.
It can be extremely valuable in helping themselves to learn from each other by listening,
analysing and problem solving:

• Employees will be responsible for reviewing their co-workers and they are much more
possibly to work with them and help them overcome any weaknesses so their review
will be possibly the best. When employees know that their co-worker will assess them
it encourages them to maintain a better relation.

• Through this appraisal understand the way of interaction between each other
employees.

• When employees working in workplace as peer more information learn about an

employee’s performance in peer appraisal. It can help to improve personal performance
so that they can remove their weakness. Feedback of a peer give necessary information
where individuals can improve.

• Through peer appraisal employees can improve their curve of growth. Employees can
see where is their learning gap and Find a way to fill that gap.

• Peer appraisal helps to review their co-workers about their good stuffs. When
supervisor review employees they will not evaluate their entire performance that means
they can miss some pretty good stuff. So, review with peer is good.
 • It helps employees develop their judgmental skills when they assess the work of another
team.
• It maintains the fairness of assessment because everyone has the chance to assess each
other.

DEMERITS
• Employee has a different attitude, a different set of beliefs, and even a different
approach to doing certain tasks, so there has a risk because of subjective assessment.
When appraisal by co-worker they give better assessments but in reality, they don’t
deserve good score so they may not fit for that position.

• In this, employees may not be aware about the job description about their co-worker.
So, this can lead to confusion and irrelevant assessments.

• Peer appraisal discourages relationship between co-workers. If an employee knows that

their peers are going to evaluate them it changed the relationship between them.

• Employees may have a tendency to give everyone the same ranking.

• Here, fairness may not be maintained because who deserve better scores, he got low
score and who deserve low score he got high score.

MERITS OF APPRAISAL BY SUB-ORDINATE

“Appraisal by subordinate gives a chance to judge employees on the perimeter like
communication and motivating abilities, superiors’ ability to delegate the work, leadership
qualities, etc”.

• Subordinate appraisal reflects employees and feels them valued in organization. Their
evaluation may be effect on the management.

• When performance is evaluated by subordinate that considered as more accurate

supervisor think and employees are more involved with their supervisors in daily
interaction. So, employees observe their supervisors and show that how consistently
supervisor carries their responsibilities. So much time spend with supervisor more
responsibilities carry by them.

• Through Subordinate appraisals they can express needs of employees. If employees

need that they don't feel properly trained, the company may need to implement more
thorough training systems and allocate more time to them.
DEMERITS

• Front line workers in some organizations feel like nothing and have no voice in company
operations. Through these assessments sub-ordinate only evaluates their manager. But
front-line worker feels frasted with this evaluation.

• Supervisors may feel threatened by the opinion of their workers will evaluate their
performance. After sub-ordinate’s appraisal manager may not willing to use discipline
and tough leadership when necessary.

• Sub-ordinate appraisal may lead to negative culture where this evaluation viewed as
dissatisfaction of employees about their supervisors. So, this review is generally weak.

MERITS OF APPRAISAL BY SUPERVISOR

• When supervisor evaluate performance of employee, they think about strategic goal of
the organization.
• Supervisors review progress on goals for core performance with employees throughout
the year.
• They can make decisions about reward of employees so that employees boost their
performance.

DEMERITS

• Supervisors may not be directly observed performance of their employees because they
are too much busy with their work-related activities.
• Evaluation by supervisor may be biased and they will give rating on own way.

MERITS OF SELF-APPRAISAL

It is an assessment which allows employees to assess their own performance. Self-appraisals

are more often used as part of a formative assessment process, rather than a summative one.

• This assessment encourages employees to critically reflect their own learning progress
and performance.
• It encourages employees to be more responsible for their own learning and construct
self-awareness.
• It helps students develop their judgmental skills.
• There is no peer pressure when employees evaluate themselves.
• It helps employees be more aware of their weakness and strength.
DEMIRTS
• Self-appraisal has a risk of being perceived as a process of presenting inflated ratings
and being unreliable.

• It is time consuming.

• Employees may not be taken seriously this self-appraisal.

MERITS AND DEMERITS OF MULTISOURCE FEEDBACK SYSTEM

Multisource feedback system is the most comprehensive appraisal where feedback about
employee’s performance come from all the sources that come in contract with the employee on
his job such as: peers, colleagues, supervisors, subordinates and clients etc including employee
himself.

MERITS OF MUTISOURCE FEEDBACK SYSTEM

➢ Brings people together

It is one of the most valuable features of Performance Management and it gives feedback from
all angles; as evaluation come from variety of different sources that is from peer groups, to
managers, to subordinates. Because of variety of evaluation there has come different opinions
and perspective which is of vital importance when looking for feedback.

➢ Identifies development opportunities

An employee receives different feedback, that provides a unique opportunity to cover areas
that may need development or fill up gaps in knowledge which add value. This feedback can
be blended into personal development plans.

➢ Creates Self-Awareness

Through this feedback from different sources employees aware about their own strengths and
weakness which motivates them to take the place where they can improve themselves. It has
definitely helped employees to develop their skills, which has in turn improved personal
motivation and reduced staff turnover.

➢ Identifies Training Gaps

“Once participants finish answering survey questions, the responses straight away get collected
in the survey repository. This is where the crucial importance of feedback system lies.” Now
the feedback collects from colleagues, sub-ordinates, managers, or clients and analyse
everyone’s response so, these responses show the gap of employee’s skill when he existing as
a team member or include in a particular team. So, a training programme can be developed for
those employees who has a gap between their skills.
 ➢ Strengthens Leader’s associate with Management

When all sources give feedback that gives an approach where shows that leaders should be
focused on their development. It also helps to classify the leader’s priorities with management
to understand that where they spend more time or less time.

➢ Gives Insight into Employee’s Work

The main objectives of multisource feedback system for employers is to really understand an
employee’s role in the company, beyond what they see in the outcomes of tasks. It helps higher-
ups understand how the worker fits in with the team and places that don’t necessarily explained
into the finished product of a work assignment.

➢ Increases Transparency Within the Organization

It provides increased transparency which enables all individuals in the organization to further
develop trust between members. Trust increased between individuals leads to improve skill of
decision making besides performance of individuals are developed so revenue are generated.
When 360 feedback is executed well and professionally, the organization has a knowledgeable
pool and significant base where they can assess their hr and management team structure as well
as recruiting policies.

➢ Reduce Biasness

As feedback come from different sources so there has less chance to bias. Because all
evaluation is not same, different evaluation come from different sources.

DEMERITS
“When it's done well, 360 review allows your staff members to improve in key areas that might
be limiting their upward career path or actually causing major conflict within a team”.
However, multiple source feedback is done poorly it creates mistrust, anger, conflict and can
leave a team with lower morale than when you started the exercise.
 ➢ Inadequate feedback

This point is entitled ‘inadequate’; as there are many ways in which feedback can be
inadequate. As review come from many sources so there has a chance to be filtered or edited
in some ways and there has no guarantee that it is 100% honest. Sometimes managers will ask
to review about their employees which is not communicated with their employees and
employees has been less frank because of frighten that managers may read reviews.
Additionally, people often misunderstand the purpose of the multi-source feedback exercises.

➢ Poor leadership

If a manager does not get attached or passionate about multisource feedback system, it become
unfair to their subordinates. Then it would not be implemented.

This feedback is only helpful if it gets acted upon and used. This feedback has a reason that is
performance evaluated but when it is forgotten then there has no meaning of evaluation. If
feedback is not implemented then there has no change in behaviour and feedback is redundant.
Training arranged on the need to follow-up reviews on individual with and effective goal-
setting that takes feedback into account is essential.

➢ Priorities

Using multi source feedback system is getting priority where managers uncover their team’s
weakness. If multiple feedback system is used only to highlight negative aspects of a team
member’s work, it will foster a negative attitude towards the feedback culture, and then
ultimately disengage from it.

➢ Negative Feedback

Some managers can be allured to use multisource feedback where they concentrate on finding
negative aspects of an employee's performance, rather than concentrating and developing
positive aspects. This can lead to reduce rates of engagement if they are not careful, so it makes
sense to approach multi source feedback with this in mind, and to be mindful of finding the
right balance between feedback.

➢ Dishonest Reviews

If there is a lack of trust in the employees of organization, then no one will give honest
feedback. Respondents will only give ratings what they think another want to hear, making the
feedback useless. It is then critically important then that setting up and administering the 360
is done with transparency, clear guidelines and by a trusted individual. Additionally, Reviews
can be difficult to interpret.

➢ Increases unbelief in the Leader

If a leader does not communicate what they learned or what they will do to address the
feedback, that participate feel that it was just a useless exercise and nothing will change. That
empty trust in the leader and through an action plan created from the feedback is critical to the
leader’s reputation and the trust they garner from their teams.

➢ Time Consuming Process

Multisource feedback system takes up a lot of time, both from fellow team members and from
HR. Other staff members need to take the time to answer questions and to hopefully do so
thoughtfully, while supervisors and HR employees need to then sift through all of the material
in order to actually be able to use it. Weighing feedback from multiple sources and integrating
that information into a comprehensive appraisal document can be frighten.

JUSTIFICATION
After analysing merits and demerits of multisource feedback system, I am agreed with the fact
that this system is complicated and difficult to implement. All employees will not engage with
it properly and use it on regular basis. They had little to talked about another employee’s
performance Most fail to recognize this system has been communicated and implemented. If
all sources get proper guidance and training how to this then most of problem erased then it’s
easy to get success.

SUPERIOR
90degree 90 degree

de degre

SELF MULTI SOURCE

PEER
FEEDBACK
SYSTEM

90degree 90degree

SUBORDINTE

Whatever, results of multiple feedback system are mixed and who are involved in this system
sometimes they are biased or not productive or not development oriented. Employees basically
receive negative comments that will blame on co-workers and supervisors who are rater. Rater
are selected as unknown way so employees do not know who is evaluating their performance
and did not give good rating and distort the appraisal information so we can say that its
complicate to implement.
FACTORS MAKING PERFORMANCE APPRAISAL LESS EFFECTIVE
In a world, all employees would use performance appraisal system with clear goals, fair
appraisal, swift feedback and useful coaching. There have some factors which make this
appraisal system less effective which is described below:

1. UNCLEAR STANDARDS
In performance appraisal process, different raters interpret their opinion differently. For
example, different supervisor might define performance as good or bad or fair or different way.
Such term has been used so that different raters or supervisors don’t use appraisal differently.
Because quality of work is same for employees. If different term used by raters then it makes
appraisal less effective.

2.HALO EFFECT

When evaluator emphasis on particular thing it makes appraisal less effective. When raters may
rate employee depending on the general impression they give on workplace that distort the
evaluation. For example, one employee may be rated high on all criteria even though he/she
unfriendly on workplace that the nature of unfriendly evaluator gives poor rating that is halo
effect. The rater’s biases affect the process.

So, the influence of specific one trait of subordinate can make less effective the rating of
supervisor.

3.CENTRAL TENDENCY
When evaluator give ratings all employee average then it undermines the usefulness of
performance appraisal. It could be intentionally or unintentionally both are dangerous. This
occurs when a rater rates everyone within a narrow range because he/she thinks that the
employees are all on the same level averagely. For example, the rating scale from 1 to 5 and
rater rate most of employees 3 and it distorts the evaluations, making them less useful for
promotion or other purpose.

4.LENIENCY BIAS
Appraisals demand that an evaluator should objectively draw a conclusion regarding an
employee’s performance which is relax or too easy. For example, evaluator have tendency to
give rating to all employee will be high.

5.STRICTNESS
It is the opposite of the leniency bias. It means raters will give rating is too hard that causes all
scores are to be very low. It creates an unfair negative impact of the employee being rated.
Negative scores can have serious affects on employees. Rating low of employee on everything
makes appraisal less effective.
6. SIMILARITY BIAS
When rater rates employee on the basis of similarity then appraisal may less effective. For
example, the rater gives rating on the basis of being same hometown of employees.

7. RECENCY EFFECT
Performance appraisal is always based of standard which is specific. When one employee gets
rated based on recent incident recency error occurs. Employee behaviour starts at the appraisal
period and end can affect the process of time when they work. If evaluator decide that the
rating, he gives that is bad it can’t be good then it affects the performance appraisal.

8.NO ACCOUNTABILITY
If the raters has no responsibility of the ratings they given then it makes the appraisal process
less effective. If there has no accountability of raters then they injustice with employees that is
not right. So that actual result can not bring out who are better or nor better for organization.

SOLUTION FOR OVERCOMING RATERS’ BIASNESS

“Raters’ biasness can be defined as an error in judgement that can occur when an evaluator
allows their performed biases to affect the evaluation of another.” It is common issue when is
comes to performance reviews. They are danger of rating system and cannot be truly
eliminated. So here are the solutions for overcoming raters’ biasness:

1. ENSURE ACCOUNTABILITY
If organization want to sustainable high-quality processes, evaluator need to be able to see who
are working hard. Evaluator need to be honest to give their feedback. In performance appraisal,
rater is accountable of the making evaluation. If there has accountability then raters can not do
injustice. Rater have to understand their roles about review the performance of employee. In
team work, each employee should have the commitment to seek information, give and receive
feedback and point out the need for corrective action and that is their responsibility. This
potential problem should be found out first.

For example, a faculty is accountable to dean, director and other departments.

2.BUILDING AWARNESS THROUGH WORKSHOP, SEMINAR

Rater bias affects everyone, but it usually occurs on an unconscious or conscious level. When
performance appraisal season comes around, organization have to arrange workshop or seminar
on most common rater biases. Raters have to aware about biases. The first step is making
employees aware of bias towards how to reduce it. For most employees, arrange workshop that
covers just the highlights is probably enough to do the job and demonstrate the process of
appraisal. Senior-staff, such as supervisors or managers, often complete performance reviews
more frequently so first they have to create awareness. They would benefit from more in-depth
workshop on understanding and reducing their own bias.

3.ORGANIZE TRAINING
Appraisal may not be accurate if there is no reduction in the pact of problems caused by rater
bias. So, another solution is providing training to rater or evaluator aimed to improving the
accuracy of performance appraisal. Training programmes are designed for raters to reduced
bias. Through training they have recognize their error and try to avoid it.

Before each performance appraisal processes in a year, managers should be subjected to a short
training or face to face discussion in small groups where cover the way to evaluate performance
and how to avoid biases.

4.ARRANGE REWARD AND RECOGNITION

Rater who will give right rating to right employees they could be recognized as good rater of
organization. Organization can reward as tangible reward to good rater with merit pay and other
benefits. Rater can be more motivated by anticipation of a reward. Reward encourages raters
to reduce their biasness. Supervisor can ask their employees what they want as reward.

➢ Bonuses may be in short term or

➢ Give incentive pay or
➢ Recognition may such ac taking a long lunch break or one day work from home or
➢ Inscribed coffee mug as recognition

In these ways, evaluator can be motivated for overcoming their biasness.

5.GIVE PUNISHMENT
Organization arrange punishment to biased evaluator. If they give poor rate due to biasness
should be accountable to the top management. This bias could be detected by examine their
evaluation. Punishment can be effective in stopping biasness of employee evaluation such as
strictness or leniency bias, halo effect, similarity bias and so on. When evaluators are not
evaluated properly punishment is only technique to modify their evaluation. Punishment dost
not bring about good solution for them, it only temporarily stops them so, here the problem is
knowing how evaluators respond. If supervisor offers them reward after overcoming biasness
then punishment may be positive reinforcer. Their biasness is reduced and the punishment
works as reinforcer.

RELATIONSHIP BETWEEN PERFORMANCE MANAEMENT AND

TELANET MANEGEMENT
There is a direct relationship between performance management and talent management that I
support this
 Performance
Management

Talent
management

Performance Management is an ongoing process of identifying, measuring, motivating and

developing the performance of individuals on a continuous basis and doing plan and practice
where employees maintain their work properly to achieve organizational goals and that are link
to the strategic and operational goal of the organization.

Talent management is an organization’s commitment to recruit, hire, retain and develop and
shape up the most talented and superior employees available in job market. Talent management
touches on all keys HR areas from hiring to employee onboarding and from performance
management to retention.

If employees will not satisfy after reviewing performance of them through supervisor, peer,
sub-ordinates they can’t want to stay in organization. Performance management gives clear
picture about whole system. In organization if there has no proper performance management
system, they cannot care about their talent they easily leave. If organization don’t design
different package for betterment of employee and properly, they are not recruited then the goal
of organization is not achieved. If they can’t retain their talent employee their goal will not
achieved. So, Performance management gives holistic picture of organization. Giving sub-
ordinate timely feedback about performance providing them with resources and training they
need to do for assignment and rewarding good performance and continuously checking how
on employees are doing so that they stay in organization. Feedback from managers lets
employees know what they are doing right and wrong, as well as how to improve their work
the next time around. It keeps the line of communication open between employees and
managers and strengthens relationships in the workplace. A performance management system
lets managers give their employees feedback on their work and how to improve it within
seconds.

So, from above discussion we can see that there has direct relation between them and this is
inter-related relationship. One management will not work without other management

CONCLUSION

Performance management and appraisal is inevitable for every organizations. We see from
about that all sources of performance appraisal have both merits and demerits and all are
sensible sources with performance appraisal process and has relation with talent management.