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MU0016 — Performance Management and Appraisal

MU0016 — Performance Management and Appraisal

Summer 2013

Master of Business Administration- MBA Semester 4

MU0016 — Performance Management and Appraisal

(Book ID: B1337)

Note: Assignment (60 marks) must be written within 6-8 pages. Answer all questions. Kindly note that answers for 10 marks questions should not exceed 400 words.


Q1. Explain the evolution of performance management. What are the aims of performance management?

Answer : Explanation of evolution of performance :

The performance management process evolved in several phases.

First Phase: The origin of performance management can be traced in the early 1960’s when the performance appraisal systems were in practice. During this period, Annual Confidential Reports (ACR’s) which was also known as Employee service Records were maintained for controlling the behaviors of the employees and these reports provided substantial information on the performance of


Q2. Define motivation. Explain McGregor’s theory X and theory Y.

Answer : Motivation :

Motivation is a psychological feature that arouses an organism to act towards a desired goal and elicits, controls, and sustains certain goal-directed behaviors. It can be considered a driving force; a psychological one that compels or reinforces an action toward a desired goal. For example, hunger is a motivation that elicits a desire to eat. Motivation is the purpose or psychological cause of an action.

McGregor’s Theory X :

In this theory, which has been proven




Q3. Explain the Contents of performance agreement. Describe the managers’ responsibility in Performance Planning.

Answer : Contents of performance agreement :

Each agency uses performance agreements to define accountability for specific organizational goals and to help its executives align their daily operations with the agency’s program goals. Performance agreements, like performance appraisal plans, define individual employee performance expectations and establish results-oriented goals. When the agency aligns executive performance agreements with its goals, executives can better understand the connection between their organization’s daily activities and agency goal achievement.

The parties agree that the purpose of this Agreement is to:

1. Comply with the provisions of Sections 57(1) (b), (4) (a), (4) (b) and (5) of the Municipal Systems Act as well as the Employment Contract entered into between the




Q4. Describe the traditional methods of performance appraisal.

Answer : Traditional methods of performance appraisal :

1.Rating Scales Method

2. Essay appraisal method

3. Ranking method

4. Paired comparison

5. Critical incident method

6. Confidential report system




Q5. Write a brief note on Subjectivity and Errors in Rating. What is Behaviorally Anchored Rating Scale (BARS)? What are its advantages and disadvantages?

Answer : Subjectivity :

Subjectivity is a term used to refer to the condition of being a subject and the subject’s perspective, experiences, feelings, beliefs, and desires. The term is usually contrasted with objectivity, which is used to describe humans as “seeing” the universe exactly for what it is from a standpoint free from human perception and its influences, human cultural interventions, past experience and expectation of the result. Subjectivity is an inherently social thing that comes about through innumerable interactions within society. As much as subjectivity is a process of individuation, it is equally a process of



Q6. What are the methods to measure performance? How do you monitor performance?

Answer : Explanation of methods to measure performance :

1. Overview :

Employee performance measurements can determine an employee’s compensation, employment status or opportunities for advancement. For these reasons, performance management programs must consist of methods that enable fair and accurate assessments of employee performance. To assist with measuring employee performance, employers first establish performance standards. Performance standards define what it takes for employees to meet or exceed the company’s performance expectations.

2. Graphic Rating Scales :

Graphic rating scales are ideal for production-oriented work environments, as well as for other workplaces that move at a fast pace, such as those found in the food and beverage industry. A rating scale consists of a list of job duties, performance standards and a scale usually


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