Q.1 Define Performance Management?

Explain the principles of developing a performance

management plan.

Q.2 Let, Ryan and Grossman suggested four key capacities for organizational effectiveness.-
Elucidate. [10 Marks]

Q.3 Explain the process of performance management

2010(July) Master of Business Administration-MBA Semester IV

Subject Code – MU0007
Subject Name – Performance Management and Appraisal
2 Credits
(Book ID: B0934)
Assignment Set- 2 (30 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Explain the role of ethics in performance appraisal. [10 Marks]
Q.2 Mr. Sunil is a manager in a manufacturing company. He thinks that his subordinates are
inherently lazy, avoid work and they needs supervision to perform tasks and therefore he shows
authority over his subordinates’. According to McGregor theory, what assumptions Mr. Sunil is
having of his subordinates. And also elucidate McGregor both the theories.
[10 Marks]
Q.3 Write notes on:
 Management by Objectives
 Behavioral Anchored Rating Scales
 Graphic Rating scale
 Behavioral checklist

ANS 2 : Letts, Ryan and Grossman (1998) suggest four key capacities for organizational
effectiveness. These capacities were suggested for nonprofit organizations. However, they also
apply to organizations in general and, thus; their descriptions are modified in the following
paragraphs to apply to organizations in general.

1. Adaptive capacity

It is the ability of an organization to maintain focus on the external environment of the

organization, particularly on “performing” (meeting the needs of customers), while continually
adjusting and aligning itself to respond to those needs and influences. Adaptive capacity is
cultivated through attention to assessments, collaborating and networking, assessments and
planning.

2. Leadership capacity
It is the ability to set direction for the organization and its resources and also guide activities to
follow that direction. Leadership capacity is cultivated through attention to vision, establishing
goals, directing, motivating, making decisions and solving problems.

3. Management capacity

It is the ability to ensure effective and efficient use of the resources in the organization.
Management capacity is accomplished through careful development and coordination of
resources, including people (their time and expertise), money and facilities.

4. Technical capacity

It is the ability to design and operate products and services to effectively and efficiently deliver
services to customers. The nature of that technical capacity depends on the particular type of
products and services provided by the organization. In addition, a fifth key capacity has been
mentioned.