UNIT -5

PERFORMANCE APPRAISAL/PERFORMANCE EVALUATION

1.Why is feed back important?
2.What is performance evelauation
3.Outline appraisal process(2m/8m/16m)
4.What is halo error in PA?
5How is MBO an appraisal process
6.What is BARS
7.Who is appraiser
What are the factors to be considered for appraisal

PART-B
Explain the steps for conducting PA
Explain the methods of PA
Outline the modern methods of appraisal
Explain 360degree appraisal with advantages and disadvantages
Explain MBO as method of appraisal
Advantages and disadvantages of MBO
What is BARS
Explain the errors in appraisal/Explain the factors distort PA
Importance /need/objectives of appraisal

JOB CHANGE/JOB ROTATION/INTERNAL MOBILITY

2 marks
1.What is job rotation/jobchange/internal mobility
2.On what reasons employee is demoted
3.What is remedial transfer
4.What is separation
5.Define promotion
6.What is dismissal
7.What is golden handshake
8.Reasons for VRS
9.Why do organisation reward seniority
10.What is seniority cum merit promotion
11.Explain techniques of separation
12.What is open and closed promotion
What are the reasons for job change
Why do people resist job change

Part –B
Explain the guidelines/Policy?principles for considering an employee for promotion
Explain Different types of transfer
State the advantages of Transfer
 State the reasons for demotion and guidelines for demotion
Explain transfer policy in detail
Explain different methods of separation

CONTROL
What is control process
Outline the standards of control
What is budgetary control
Need for control

PART-B
Explain the process of controlling
State the importance of controlling
Outline the methods of controlling
State the components of effective control

GRIEVEANCE
What is grievance
What is discipline
State the reasons for grievance
Importance of grievance machinery
PART_B
Explain the process of grievance redressal/Grievance Machinery
Explain the reasons for grievance

Part – A
1. Explain the term performance appraisal?
Ans A performance appraisal is a process of evaluating an employee’s performance of a
job in terms of its requirements.
2. What is the purpose and importance of P.A?
Formal appraisal plan are designed to meet three needs, one of the organization and the
other two of the individual namely;
They provide systematic judgments to increments, transfer, demotion or termination.
Identify on which the subordinates want to improve i.e. Behaviour, attitude, skills and job
knowledge.
It is the basis for giving counseling and coaching the individual by the superior.
3. What are the objectives of P.A?
1. To enable an organization to maintain an inventory of the number of quality of all
mangers and to identify and meet their training needs.
2. To determine increments, rewards, promotion, transfer.
3. To maintain individual and group development by informing the performance
standards.
4. To suggest ways of improving the employees performance.
5. To identify training and development needs.
6. To plan for career development.

4. What is MBO?
It is a process whereby the superior and subordinate managers of an organization
jointly identify its common goals, define each individual’s major areas of responsibility
in terms of results expected of him and use these measures as guides for operating the
unit and assessing the contributions of each of is members.

5. What is BARS?
This is a new appraisal technique which has recently been developed. This is a
combination of critical incident and graphic scaling. This method uses an instrument-A
subset of incidents are used as “behavioural anchors” for the performance dimensions
6.Who can be an appraiser?
The appraisal can be done by one or more individuals involving a combination of the
immediate supervisor, other manager acquainted with the assesses work, a higher level
manger, a personnel manger, the assessee’s peers, the assessee himself and the assessee’s
subordinates.

7.What is the frequency of P.A?

In most organizations employees are formally evaluated once a year, in others twice a
year. New employees are rated more frequently than the older ones. The ideal thing is
that each employee should be rated three months after being assigned to a job, after six
months on the job, and every six months thereafter. The time of rating should not
coincide with the time of salary reviews, for if the two occur together constructive
evaluation and considerations of self-development will probably take second place to the
pressures of pay.

8.What is promotion?
It is upward reassignment of an employee with increased pay and responsibilities It is a
type of job change. It is an upward advancement of an employee in an organization to
another job, which commands better pay/wages, better status/prestige and higher
opportunities/challenges, responsibility and authority, better working environment, hours
of work and facilities and a higher rank.

9.What is demotion?
It is downward reassignment of an employee The assignment of an individual to a job of
lower rank and pay usually involving lower level of difficulty and responsibility.It used
as a punitive measure when there are serious breaches of duty on the part of an employee
when it is often a preliminary to a dismissal.

10.What is transfer?
A transfer is a horizontal or lateral movement of an employee from ob e job, section,
department, shift, plant or position to another at the same or another place where his
salary, status and responsibility are the same.
11.What is resignation?
It may be put in voluntarily by the employees on grounds of health, physical disability,
better opportunities elsewhere, or maladjustment with company policy and officers, or for
reasons of marriage or they may be compulsory when an employee us asked to put in his
resignation if he wants to avoid termination of his services on the ground of gross
negligence of duty on his part, or some serious charge against him.
12.Short note on discharge?
A discharge involves permanent separation of an employee form the payroll for violation
of company rules or for inadequate performance.
13. Dismissal
A dismissal is the termination of the service of an employee by way of punishment for
some misconduct, or for unauthorized and prolonged absence from duty.
14.suspension
This is a serious punishment and is generally awarded only after a proper enquiry has
been conducted. For reasons of discipline, a workman may be suspended without
prejudice during the course of an enquiry. During suspension the employee receives a
subsistence allowance.
15.Retrenchment
It means a permanent termination of the services of an employee for economic reasons in
a going concern. The industrial disputes act 1947 defines retrenchment as the termination
by the employer of the service of workmen for any reasons.

16.Attrition?
Gradual wearing down of the size or the number of employees in the organization.

17.Turnover?
The rate of changes in the working staff of a concern during a definite period, it signifies
the shifting of the work force into and out of an organization. It is a measure of the extent
to which old employees leave and new employees enter into service in a given period. It
is sometimes defined as a measurement of inarticulate labour unrest.

18.What is job change?

It is a systematic moving of workers form one job to another. It may be from one
organization to another or inside the organization as promotion, transfer, etc,
Purpose of job change:To know all the job,To find which the job is he/she like or
interested for.,To plan for once career.
 19 .Explain control process?
It is any process that guides in achieving predetermined goals so it can be applied in
any field like pollution control, distribution control, price control, wastage control, etc.
It tries to find out the deviation between the standard and the actual and helps in
taking corrective actions.
20.Explain grievance?
A grievance is 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.
21.Discipline-Force that prompts individual or groups to observe the rules, regulations
and procedures which are determined to be necessary for effective functioning of an
organisation

PART – B
1. Briefly explain who is the rater and process of P.A?How do you conduct PA
The performance evaluation process:
A.Establishing performance standards:
The standard should be clear, it should be discussed with the supervisors to find out
which different factors (qualities like leadership, communication skill, attitude, etc)
are to be incorporated
B.Communicate performance expectations to employees:
The standards should be informed to the employees otherwise it would be difficult to
guess what is expected of them.
C.Measuring actual performance:
Four source of information are frequently used to measure actual performance,
personal observation, statistical reports, oral reports and written reports
D.Compare actual performance with standards:
Comparison of actual performance with standards and attempts are made to note
deviations between standard performance and actual performance.
E.Discuss the appraisal with the employee:
 The results of appraisal are discussed periodically with the employees, where good
points, weak points, and difficulties are indicated and discussed so that performance is
improved.

Initiate corrective action:

Immediate correction action like coaching and counseling, training courses, explain
about promotion and increments in salary to improve their performance.
What should be rated?
Quality: the degree to which the process or result of carrying out an activity approach
perfection.
Quantity: the amount produced, expressed in monetary terms, number of units or
number of completed activity cycles.
Timeliness: the degree to which an activity or a result produced.
Cost of effectiveness: the degree to which the use of the organization’s resources
(E.g.) human, monetary, technological, material).
Need for supervision: the degree to which a job performer can carry out a job function
without supervisory assistance.
Interpersonal impact: the degree to which a performer promotes feelings of self-
esteem, goodwill and co-operation among co-workers and subordinates.
Training: need for training for improving his skills knowledge.

2.Explain the different methods of P.A?

Methods of P.A:Traditional method:
Straight ranking method:It is oldest and simplest method of performance appraisal, by
which the man and his performance are considered as an entity by the rater.The whole
man is compared with the whole man. In a group who is the best is ranked as 1, 2, 3, etc.

Paired comparison method:Each employee is compared every trait with all the other
persons in pairs one at a time. With the technique, judgment is easier and simpler than
with the ordinary ranking method. This method is not suitable when a group is large
because in that case, the number of judgments becomes excessively large.
E.g. For the trait “quality of work”
As compared
A B C D E
to
A + + - -
B - - - -
C - + + -
D + + - +
E + + + -

Grading method:
Under this system, the rater considers certain features and marks them accordingly to a
scale. Certain categories of worth are first established and carefully defined. The selected
features may be analytical ability, co-cooperativeness, responsibility, self-expression, job
knowledge, judgment, leadership and organizing ability, etc, They may be : A-
outstanding; B- very good; C- good or average; D- fair, E- poor and –B very poor or
hopeless.
Graphical of linear rating scale:Method uses printed form An employee characteristics
are included such qualities as initiative, leadership, co-cooperativeness, dependability,
industry, attitude, enthusiasm, loyalty, creative ability, etc. these traits are then evaluated
on a continuous scale, wherein the rater places a mark.
Forced Choice description method:The rating elements are several sets of pair phrases
or adjectives (usually sets of four phrases two of which are positive, and two
negative) relating to job proficiency or personal qualifications. The rater is asked to
indicate which of the four phrases is most and least descriptive of the employee.
 makes little effort and individual instruction;
 organizes the work well;
 lacks the ability to make people feel at ease;
 has a cool, even temperament;
 is punctual and careful;
 is a hark worker and co-operative;
 is dishonest and is loyal;
 Is overbearing and disinterested in work.

Forced distribution method:A five point performance scale is used without any
descriptive statements. Employees are placed between the two extremes of good and bad
job performances; for example, 10 5% are placed at the top end of the scale, given
superior or outstanding merit; 20% given good rating; 40 % satisfactory ; 20% fair ; 10%
unsatisfactory. This method assumes that, of total personnel 10% must go to the top
grade, 20 % to the second grade, 40 % to the middle grade 20 % grade next to the lowest
end and 10% of the lowest grade.

Check list:A series of questions are presented concerning an employee to his behavior.
The rater then, checks to indicate if the answer to a question about an employee is
positive or negative. Mostly yes/ no questions are asked (close ended questions)

Weighted checklist_Giving additional weightage to the traits required for the job
Free essay method:The supervisor makes a free form, open ended appraisal of an
employee in his own works and puts down his impressions about the employees.
Critical incident method:The essence of this system is that is attempts to measure
workers’ performance in terms of certain events that occur in the performance of the
ratee’s job. These events are known as critical incidents. The supervisor keeps a written
record of the events either good or bad that can be easily be recalled and used in the
course of a periodical or formal appraisal. Feedback are recorded under such categories
as the type of job, requirements for employees, judgment, learning ability, productivity,
precision in work, responsibility and initiative.It is discovered after a thorough study of
the personnel working on a job. The collected incidents are then ranked in order of
frequency and importance.

Group appraisal: Employees are rated by an appraisal group, consisting their

supervisor and three or four other supervisors who have some knowledge of their
performance. The supervisor explains to the group the nature of his subordinates’ duties.
The group then discusses the standards of performance for that job the actual
performance of the job-holder, and the causes of their particular level of performance,
and offers suggestions for future improvements.
Field Review method:A trainer employee from the personnel department interviews line
supervisors to evaluate their respective subordinates. The appraiser is fully equipped with
definite test questions, usually memorized in advance, which he puts to the supervisor.
The supervisor is required to give his opinion about the progress of his subordinates, the
level of the performance of each subordinate, his weakness, good points, outstanding
ability, promotablility and the possible plans of action in cases requiring father
consideration. The appraiser takes detailed notes of the answers, which are then approved
by the supervisor and placed in the employee’s personal folder. The success of this
system depends upon the competence of the interviewer.

Modern method:
MBO: management by objectives. It is a process whereby the superior and subordinate
managers of an organization jointly identify its common goals, define each individual’s
major areas of responsibility in terms of results expected of him and use these measures
as guides for operating the unit and assessing the contributions of each of is members.
The objective is to change behaviour and attitudes towards getting the job done. It is
results oriented. It stress goals rather that methods.
Process of MBO:
Set organization goals: establish of an organization goal, such goals are expressed
clearly and concisely and can be measured accurately.
Joint goal setting: establishment of short term performance targets between the
management and the subordinated in a conference between them. The individual manger
must clarify in his own mind the responsibilities of their subordinates. The manager and
subordinate then discuss them reach an agreement about them and put them in writing.
Performance review: during the initial stage of the MBO programme, monthly reviews
may be used and then extended to quarterly reviews. For maximum effectiveness,
reviews probably should be made more often then once each year. The actual
performance is taken.
 Compare standards with actual: here the actual performance is compared with the
standard created so that the deviation can be find out and where they lack in and which is
the department lacks performance and which person.
Feed backs and corrective measures: the employees who receive frequent feedback
concerning their performance are more highly motivated than those who do not feedback
that is specific, relevant and timely helps satisfy the need most people fell about knowing
where they stand and improvement needed will also be found out.
Benefits of MBO Programme:
Increases employee motivation
Reduces internal conflict
Reduces role conflict
Helps in planning
Effective appraisal
Identifies problem earlier
Develops personal leadership

Assessment centre method: Assessment for promotion

Many evaluators join together to judge employee performance in several situations with the
use of variety of criteria.
Use situational exercise
Evaluators are experienced managers
They evaluate individually and collectively

3600 Performance appraisal:

360-Degree Feedback is also known as full-circle feedback, multi rater feedback, multi-
level feedback, upward appraisal, and peer review .360 degree system involve evaluation
of a manager by everyone using structured questionnaire.Several organistions like
GE,Reliance Industries,Crompton greaves,Wipro,Infosys make use of this technique.
The integral components of system
Self appraisal
 Superiors Appraisal
Subordinate appraisal
Peer appraisal

Self appraisal- Employee objectively look at his/her strength,areas of development. It

helps an employee to express their career moves for future.
Superior Appraisal:This helps in providing constructive feed back on employees
performance,his development areas
Subordinate appraisal: Helps in knowing the perception of subordinate about his superior
Peer Appraisal: Helps in understanding the level of team work cooperation and
collaboration and analyse the ability to work as a team member.
Advantage
Self development and counseling
Part of organised training and development
Team building
Performance management

Disadvantages:
 It looks sound but no evidence that it works
 For a starter or a new employee effective appraisal is difficult
 It becomes complex, it requires money and time
 Fail in review will lead to waste.

Human assest accounting method:

The human asset accounting method refers to activity devoted to
attaching money estimates to the value of a firm’s internal human organization and its
external customer goodwill.The current value of a firms’ human oganisation can be
appraised by developed procedures, by undertaking periodic measurements of “key
causal” and “intervening enterprise” variables. They key causal variables includes the
structure of an organizations’ policies, decisions, business leadership, strategies and skills
and behaviour. The intervening variables reflect the internal state and health of an
organization. They include loyalties, attitudes, motivations and collective capacity for
effective interaction, communication, and decision making. These two types of variables
measurements must be made over several years to provide the needed data for the
computation of the human asset accounting.

Behaviourally anchored rating scales (BARS):

This is a new appraisal technique which has recently been developed. Its
supporter claim that it provides better, more equitable appraisals compared to other
techniques. The procedure for BARS is usually five stepped.
 Generate critical incidents: persons with knowledge of the job to be appraised
(job holders / supervisors) are asked to describe specific illustrations (critical incidents)
of effective performance behaviour.
 Develop performance dimensions: these people then cluster the incidents into a
smaller set (say 5 or 10) of performance dimension. Each cluster is then defined.
 Reallocate incidents: any group of people who also know the job then reallocate
the original critical incidents. They are given the cluster’s definitions, and critical
incident is retained if some percentage (usually 50 to 80%) of this group assigns it to the
same cluster as the previous group did.
 Scale of incidents: this second group is generally asked to rate ( 7 or 9 point
scales are typical ) the behavior described in the incident as to how effectively or
ineffectively it represents performance on the appropriate dimension.
 Develop final instrument: a subset of incident (usually 6 or 7 % cluster) are used
a sbehaviour anchors for the performance dimension.

A number of critical incidents were collected there and these were then clustered into
eight performance criteria viz.
1. knowledge and judgment
2. conscientiousness
3. skill in human relations
4. skill in operation of register
5. skill in bagging
6. organizational ability of check-stand work
7. skill in monetary transactions
8. Observational ability.
Then bases on the criteria 1-7 scale point is created and asked to rate the
performance of the employees.

2. What is feed back in P.A and states its importance?

Feedback from the subordinates and discuss with the subordinates will help in identifying
their defaults and steps to improve it. If it is once in a year it will not be as effective as
day to day feedback, it will always better go for immediate feedback after the appraisal.
Procedure for feedback
Before feedback interview
 Communicate to the employee about their performance
 Get training in performance appraisal interview
 Plan for use problem solving approach
 Encourage subordinates to prepare for performance feedback interview

During feedback interview

 Encourage to participate
 Judge performance and not personality
 Be specific
 Be an active listener
 Avoid destructive critics (positive attitude)
 Set goals for improvement

After feedback interview

 Communicate frequently with subordinates about their performance
 Periodically assess progress toward goals
 Make organization rewards on performance.

3. Write a brief short note on promotion, transfer, separation and demotion?

Promotions-Promotion is the transfer of an employee to a job which pays more money or
one that carries some preferred status.It is an upward advancement of an employee in an
organization to another job, which commands better pay/wages, better status/prestige and
higher opportunities/challenges, responsibility and authority, better working environment,
hours of work and facilities and a higher rank.
Purpose of promotions
To put the worker in a position where he will be of greater value to the company and where
he may derive increased personal satisfaction and income from his work
To remove a worker from his job as an alternative to avoid the embarrassment to firing or
demoting him
To recognize employees with little motivation.
To increase an employees organizational effectiveness.
To build up morale, loyalty and sense of belonging
To promote job satisfaction
To attract suitable and competent workers for the organization
To create among employees a feeling of contentment with their present conditions
To furnish an effective incentive for initiative, enterprise and ambition
To conserve proved skill training and ability
To reduce discontent an d unrest
To attract suitable and competent workers
To suggest logical training for advancement.

Demotion-The assignment of an individual to a job of lower rank and pay usually

involving lower level of difficulty and responsibility.It refers to the lowering down of the
status, salary and responsibilities if an employee.It used as a punitive measure when there
are serious breaches of duty on the part of an employee when it is often a preliminary to a
dismissal.
Causes of demotion
When departments are combined and jobs eliminated, employees are often required to
accept-lower position until normally is restored, such demotions are not a black mark
against an employee.
Inadequacy on the part of the employees in terms of job performance, attitude and
capability.
When, because of change in technology, methods and practices, old hands are unable to
adjust or when employees, because of ill health or personal reasons cannot do their job
properly.

Transfer -A transfer is a horizontal or lateral movement of an employee from ob e job,

section, department, shift, plant or position to another at the same or another place where
his salary, status and responsibility are the same.

Purpose of transfer
To satisfy such needs of an organization as may arise out of a change in the quantity of
production, fluctuations in work requirements.
To meet an employee’s own request when he feels uncomfortable on the job because of
his dislike of his fellow workers.
To utilize properly the services of an employee when he is to performing satisfactorily
and adequately and when the management feels that he may be more useful or suitable
elsewhere,
To increase the versatility of the employee by shifting him from one job to another so that
he may have ample opportunities for gaining a varied and broader experience of work
To adjust the work force of one plant with that of another particularly when one is closed
down for reasons beyond the control of the employees.
To replace a new employee by an employee who has been in the organization for a
sufficiently long time.
To help employees work according to their convenience so far as timings are concerned.
To penalize the employee transfers are also done.

Separation-Cessation of service with the organization for one or other reasons. The
employee may be separated from the pay roll of a company as a result of:
Resignation-It may be put in voluntarily by the employees on grounds of health, physical
disability, better opportunities elsewhere, or maladjustment with company policy and
officers, or for reasons of marriage or they may be compulsory when an employee us
asked to put in his resignation if he wants to avoid termination of his services on the
ground of gross negligence of duty on his part, or some serious charge against him.

Discharge-A discharge involves permanent separation of an employee form the payroll

for violation of company rules or for inadequate performance.

Dismissal-A dismissal is the termination of the service of an employee by way of

punishment for some misconduct, or for unauthorized and prolonged absence from duty.
Suspension-This is a serious punishment and is generally awarded only after a proper
enquiry has been conducted. For reasons of discipline, a workman may be suspended
without prejudice during the course of an enquiry. During suspension the employee
receives a subsistence allowance.
Retrenchment-It means a permanent termination of the services of an employee for
economic reasons in a going concern. The industrial disputes act 1947 defines
retrenchment as the termination by the employer of the service of workmen for any
reasons.
Lay-off-It refers to an indefinite separation of the employee from the payroll due to
factors beyond the control of the employer, the employer the employee is expected to be
called back in the foreseeable future. It involves temporary or permanent removal form
 the payroll of persons with surplus skills. The purpose of a layoff is to reduce the
financial burden on an organization when human resources cannot be utilized profitably.

Turnover: The rate of changes in the working staff of a concern during a definite period,
it signifies the shifting of the work force into and out of an organization. It is a measure
of the extent to which old employees leave and new employees enter into service in a
given period. It is sometimes defined as a measurement of inarticulate labour unrest.

What is job change and explain why people don’t go for changes?
It is a systematic moving of workers form one job to another. It may be from one
organization to another or inside the organization as promotion, transfer, etc,

Purpose of job change:

To know all the job
To find which the job is he/she like or interested for.
To plan for once career.

Reasons for resistance to change:

Resistance to change means the person who doses not what to change is job, and what is
the reason for it.
It make the existing skill old and may threaten to displace him.
It may destroy public image
It may reduce the promotion prospects of the employee by making acquisition of new
knowledge a prerequisite for higher posts.
It may increase discipline on the work place
It may threaten the employee’s established social relationships.
What are control process and its steps?
It is any process that guides in achieving predetermined goals so it can be applied in any
field like pollution control, distribution control, price control, wastage control, etc. It tries
to find out the deviation between the standard and the actual and helps in taking
corrective actions.
 Steps in controlling:
1.Establish of control standards:
Every function in the organizations begins with plans, which are goals,
objectives, or targets to be achieved. In the light of these, standards are established which
are criteria against which actual results are measures.
2.Measurement of performance:
This step involves measuring the performance in respect of a work in
terms of control standards.. The measuring performance which can be expressed in
physical and monetary terms, such as production units, sales volume, profits, etc, can be
easily measurable. The performance, which is qualitative ,techniques like psychological
tests and opinion surveys and experience

3.Comparing actual and standard performance: Finding out the deviations

Identifying the causes of such deviation.
The management may have information relating to work performance, data, charts,
graphs and written reports, besides personal observation to keep itself informed about
performance in different segments of the organizations.
4.Identification of deviation:
Where the exact deviation is found on what they lack in and where they
have made mistake and where they found the wrong. So that only these deviations can be
concentrated to find the solution to avoid in the next programme.
5.Analyse the cause for deviation:
Once the deviation is found, only on that area the analysis can be made
in order to find the reasons for these deviation, whether it is because for real fault or
negligence or a mistake ,etc and can follow up frequently to find out the exact reasons
and concentrate on it so all the defaults can be covered.
6.Correction action:This step requires that actions should be taken to maintain the
desired degree of control in the system or operation. The control includes actions like (i)
review of plans and goals and changes therein on the basis of such review, (ii) changes in
the assignment of task, (iii) changes in existing techniques of direction, (iv) changes in
organization structure, provision for new facilities, etc.
7.Implementation of action plan:It is waste unless these action plans should be
implemented otherwise it will only be a plan and it will not be an effective action plan. It
will help in concentrating on the next programme, so that the organizations can be careful
in these areas.

State the importance and methods of control process?

Importance of control:
Adjustments in operations: A control system acts as an adjustment in organization
operations. Every organization has certain objectives to achieve which becomes the basis
for control. It is not sufficient merely to have objectives but also to ensure that these
objectives are being achieved by various functions.
Policy verification:Various policies in the organization generate the need for control. For
organizational functioning, managers set certain policies and other planning elements
which later become the basis and reasons for control. They become the basis in the sense
for control.
Managerial responsibility:In every organization, managerial responsibility is created
through assignments of activities to various individuals.
Methods of control:Budget and budgetary control:
The budget is derived form a French word ‘bougettee’ denoting a leather pouch in which
funds are appropriated for meeting anticipated expenses. In fact, this is the basic idea
behind budgeting. A budget can be defined as a numerical statement expressing the plans,
policies and goals of an organization
Budgetary control is derived from the concept and use of budgets. Thus budgetary
control is a system which uses budgets as a means for planning and controlling entire
aspects of organizational activities or parts thereof. Budgetary control is a process of
comparing the actual results with the corresponding budget data in order to approve
accomplishments or to remedy differences by either adjusting the budget estimates or
correcting the cause of the difference.
Control through costing:Costing is concerned with cost determination and indicates
what is the approximate cost of a process or a product under existing conditions. Control
through costing involves the control over costs in the light of certain predetermined costs
usually known as standard costs. Standard costs are predetermined operation costs
computed to reflect quantities, prices and level of operations. Such standards are set in
respect of total costs as a whole and its various components material, labour, and
overheads. Thus, standard costing is a method of cost accounting in which standard costs
are used in recording certain transactions and the actual costs are compared with the
standard costs to find out the amount and reasons of variations from the standard.

What are the requirements of a good control process?

 Control must reflect the nature and need of the activity.
 Each department has their own activities, based on the need and nature of each
activity in each department control tools should be selected and implemented only
then it will be an effective control.
 It should be looking forward:
 Deviation in each activity should be promptly informed and delay in information
will delay in correction action and so future action to be focused for a control
system only then it will be an effective system.
 Control should be objective, flexible, economical and understandable.
 Control should disclose where failure is occurring and who is responsible for it
and what should be done about them.
 Motivation
 When the standards are fixed by each worker or individual it will be easy for them
to accomplish it, at the same time motivated.
 Control system must continuously test of control mechanism.
 Reporting to top level at regular intervals, employee morale, participation, stress,
tension, strain, like grievance, accident, etc, will help in finding out is the control
process is going on fine.

Explain the term grievance and its causes?

A grievance is 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.
 Causes for grievance:
Concerning wage :
 Demand for individual adjustment, the worker feels that he is underpaid.
 Complaints about incentives, piece rates are to low or too complicated.
 Mistakes in calculating the wage of a worker.
Concerning supervision:
Complaints against discipline; inadequate instructions given for job performance.
Objection to having a particular foreman; the foreman playing favorite; Objection to the
manner in which the general methods of supervision are used there are too many rules
and regulations and they are not clearly posted.
Concerning individual advancement:
Complaint that the employee’s record of continuous service has been unfairly broken.
Complaint that the claims of senior person have been ignored, that seriously has been
wrongly determined, that younger workers have been promoted ahead of older and more
experienced employees.
Charges are made that disciplinary discharge or lay-off has been unfair, that the penalty is
too severe for the offence treat is supposed to have been committed.
General working condition:
Complaints about toilet facilities were inadequate and dirty lunch room.
Complaints about working conditions, dampness, noise, fumes and other unpleasant or
unsafe conditions, which can be easily corrected, overtime is unnecessary, an employee
loses too much time because materials are not supplied to him in time.
Collective bargaining:
The company does not allow the supervisors to deal with, and settle, the grievances of the
employees.
The company treats indifferent the previous cases and agreements already arrived at wit
the workers and or their trade union
The other causes for grievance are:
Promotion
Amenities
Continuity of services
Compensation
Disciplinary action
Fines
Increments
Leave
Medical benefits
Nature of job
Payment of wages
Acting promotion
Recovery of dues
Safety appliance
Superannuation
Suppression
Transfer
Victimization
Condition of work
Complaints about the job classifications
Complaints against a particular foreman
Inadequacy of safety and health services / devices
Non availability of materials at time

What is the need for a grievance procedure and state its steps? (ref diagram frm
class notes ),Explain grievance machinery in detail
Need for grievance procedure
A grievance procedure is essential because it bring uniformity in the handling of
grievances. It gives confidence to the worker, for if he does not get a fair deal, he knows
what to do and who to approach to ensure that he does get justice. It also gives him
confidence that his complaints will be investigated and a decision given in a reasonable
periods of time.
Grievance procedure:
Step 1-The aggrieved employee verbally explains his grievance to his immediate
supervisor or in a conference or a discussion specifically arranged for the purpose. The
employee seeks satisfaction from his supervisor.
Step 2-The second step begins when the grievance is not settled by the supervisor. In this
case, it is sent to a higher level manager with a note in which are mentioned the time
place and nature of the action to which the employee objects.
The higher level manager is generally the chief business manager, a superintendent or an
industrial relations officer who goes into the grievance and gives his decision on the
matter.
Step3-This means that the grievance is to be submitted to the grievance committee since
the decision of the supervisor and of the higher level manager have not solved the
problem.
Step 4-If the decision or suggestion of the grievance committee is not accepted by the
grievant, he may approach the management or the corporate executive.

Step 5-An arbitrator is a third party intervention where is done not belong to the
management or the union, he is send by the government authorities. He will listen to the
both the management and the union and finally he makes suggestion which may or may
not be implemented, it is decided by the aggrieved party. This will take 7 days.