Monitoring and Evaluation

Performance Appraisal
 Performance appraisal is the systematic,
periodic and an impartial rating of an
employee's excellence in matters pertaining
to his present job and his potential for a
better job
 It is a systematic evaluation of the individual
with regard to his or her performance on the
job and his potential for development
 It is the systematic way of judging the
relative worth of an employee in performing
his task
Objectives
 Compensation decisions
 Promotion decisions
 Training and development
programmes
 Feedback
 Personal development
Methods
 Traditional methods
 Modern methods
Traditional methods
 Ranking method
 Paired comparison
 Grading
 Forced distribution method
 Forced choice method
 Checklist method
 Graphic scale method
 Essay method
 Field review method
Modern method
 Management by objectives ( MBO)
 Behaviorally anchored rating scales
 Assessment centers
 360 degree appraisal
 Cost accounting method
Management By Objectives
 Management by objectives as a dynamic
system which integrates the company's
need to achieve its goals for profit and
growth with manager's need to contribute
and develop himself.
 It is a process whereby the superior and
subordinate managers of an organization
jointly identify its common goals.
Features
 Operational technique
 Comprehensive technique
 Participative management
 Result oriented
 System approach
 Concentration on key results area
Process of MBO
 To define the objectives of the organization
 To formulate sub objectives
 Formulation of departmental objectives
 Establishing goals or targets of subordinates
 Fixing key result area
 Follow up and periodic review of progress
 Appraisal of performance and counselling
Advantages of MBO
 It leads to unity of planning in the sense that plans made
at various levels of the organization have the same focus
of action.
 Objectives serve as a device for organizational control
by clarifying the contribution of each unit as well as each
job.
 MBO fits individual goals into overall organizational
goals.
 Objectives facilitate coordination of efforts and resources
of the enterprise by providing unity of direction.
 Objectives lead to improved communication and
organization structure which help in locating problem
areas.
Disadvantages of MBO
 Difficulty in setting quantitative targets
 Emphasis on short term goals
 Resistance to change
 Lack of training
 Lack of follow up
 Rigidity
 Costly process
360 degree feedback
 It is the systematic collection of performance data on
an individual or group derived from a number of stake
holders on their performance.
 It is a process through which an employee is
appraised by his supervisor, subordinates, peers and
customers with whom he interacts in the course of his
job performance.
 Under 360 degree appraisal , performance
information such as employee's skills, abilities and
behaviors is called all around an employee i.e. from
his / her supervisors, subordinates , peers even
customers and clients.
Components of 360 degree
feedback

 Self appraisal
 Peer appraisal
 Son/ daughter (subordinate) appraisal
 Parent (Boss) appraisal
 Grand parent/ Super-boss appraisal
 Uncle / Aunt appraisal
 Client appraisal
Steps in 360 degree feedback
 Identify and define the key competencies for
organizational success based on the organization's
vision, values and goals
 Express the key competencies as attitudes against
which participants can be assessed
 Select the persons to be evaluated – peers,
customers, subordinates and managers
 Compile the results
 Provide feedback to the individual
 Create an action plan to improve the individual's
performance
Benefits of 360 degree
feedback
 Individuals get a broader prospective of how they are perceived
by others than previously possible
 Increased awareness of and relevance of competencies
 Increased awareness by senior management that they too have
development needs
 More reliable feedback to senior managers about their
performance
 Provide a clear picture to senior management of individual's real
worth
 Identifying key development areas for the individual, a
department and the organizations as a whole
 Identifying strengths that can be used to the best advantage of
the business
Limitations of 360 degree
feedback
 Receiving feedback on performance from multiple sources can be
intimidating
 It is essential that the organization create a non-threatening
environment by emphasizing the positive impact of the technique
on an employee's performance development.
 Multiple raters are less adept at providing a balanced and
objective feedback than the supervisors who are sought to be
replaced
 Raters can have enormous problems separating honest
observations from personal differences and biases.
 People not giving frank or honest feedback
 People being put under stress in receiving or giving feedback
 Over reliance on technology
Assessment centers
 It is a central location where managers come together
to participate in well designed simulated exercises.
 It is a technique which is used for measuring
dimensions of a persons competencies. The
technique consists of a mix of separate techniques for
measuring psychological dimensions such as traits,
qualities or competencies of the people.
 It is a mechanism used to identify the potential for
growth of individuals.
 It is a procedure specifically used designed to
evaluate an employee's managerial potential.
Features
 Job analysis
 Multiple assessment techniques
 Situational exercises
 Behavioral observations
 Multiple assessors
 Trained assessor
 Integration observation
Advantages
 More accurate evaluation
 Minimum biasedness
 Right selection
 Promotion of executives
Limitations
 Costly and timing consuming
 Causes suffocation to the solid
performers
 Discourages to the poor performers
 Breeds unhealthy competition among
the assesses
 Bears adverse effects on those not
selected for assessment.
Total Quality Management (TQM)

 It is a philosophy which believes in a

company wide responsibility towards
quality.
 It is an organizational culture
committed to the continuous
improvement of skills, teamwork,
process, product and service quality
and customer satisfaction.
Objectives
 Meeting the customer's requirements
 It is a continuous improvement of
quality.
 It aims at developing the relationship
of openness and trust among the
employees at all levels in the
organization.
Components
 Customer oriented
 Continuous improvement
 Employees involvement
Benefits
 TQM brings quality consciousness in the enterprise
which encourages production of quality products
 It helps in providing greater satisfaction to the
customers by meeting their requirements.
 It is a good public image of the enterprise by
helping it to provide goods and services of higher
quality to the society.
 There is better utilization of materials, machines,
capital and human resources
 Wastages are reduces to the minimum.
 The employees are committed to higher quality and
feel highly motivated.
Steps
 Lay down policies and objectives of TQM
 Check out the methods to achieve TQM objectives
 Educate and retain workers and managers to understand and
meet the requirements of TQM
 Start the operation of TQM by introducing new product,
machines, procedures etc
 Observe results of operations and find out the causes of non-
conformance of quality standards
 Analyze results and determine the consequences of non-
conformance and place the report before the top management
 Prevent undesired effects in quality improvement
 Suggest measures for improvements of methods and design
in future
JUST-IN-TIME(JIT)
 It is a philosophy that focuses attention on
eliminating waste by purchasing or
manufacturing just enough of the right items
just in time
 It means producing necessary units in
necessary quantities at the necessary time
 It is a process through which organization
produce product in such a way that there is
minimum work in progress and minimum
stock of finished goods in inventory is
required.
Elements
 Purchase and produce goods in
smaller but higher quality lots
 Design more efficient workflows by
eliminating costly bottlenecks
 Reduce scrap
 Enhance employee motivation through
genuine participation or empowerment
Benefits
 Quality improvement
 Higher productivity
 Lower cost
 Less inventory of raw materials
 Increased team work
 Higher worker's morale and motivation
Quality circle
 A quality circle is a small group of
employees doing similar or related
work who meet regular to identify,
analyze and solve product quality
problems and to improve general
operations
Features
 A quality circle is a voluntary group
 It represents a collective effort
 It intends to improve the quality of output
 It coordinates the activities of members towards
improving the quality of work in the workshop
 It facilitates frequent meetings and discussions of
members for improving quality
 It has no discrimination against against age, sex
and position
Purpose
 Overall improvement of quality of products
manufactured by the enterprise
 Improvement of production methods and
productivity of the enterprise
 Self development of the employees who
take part in quality circles
 Encouragement of innovative ideas among
the employees
 Building high morale of employees by
developing team work in the organization
Benefits
 Formation of quality circles in Japan and
other countries has helped in bringing out
several innovations and changes in work
methods and products
 Quality circles have proved to be a valuable
tool for increasing productivity, improving
quality and increasing workers job
satisfaction
 Members in a quality circle means a
participative environment that provides
identification with the work group
 It helps in the development of the
participants as they are encouraged to
produce innovative ideas and find new
ways to improve product quality
 It provides opportunities for better
understanding among the members
 It creates awareness of the potential of
the workers.
Limitations
 Negative attitude
 Lack of ability
 Lack of management commitment
 Non-implementation of suggestion
Steps
 Selling the idea of quality circle
 Constitution of quality circles
 Analysis of quality problems
 Problem solving
 Presentation of suggestions to the
management
 Implementation
Kaizen
 It means improving the overall system
by constantly improving the little
details.
 In Japanese system quality is
expressed in relation to continuous
improvement is known as kaizen
Methods
 Improved and more consistent product
and service quality
 Faster cycle times
 Greater flexibility
 Lower cost and less waste