Management Development

1. Management Development

2. Management Development • Management Development relates to the development and growth of the employees in an organisation through a systematic process.

3. Objectives of Management Development • Improving the performance of managers • Identifying the talents in employees and to develop them to make them capable of handling managerial tasks. • Motivating and Updating managers from time to time • Improving the analytical and logical skills of employees.

4. Management Development Methods • On the job methods • Off the job methods

5. On the job methods

6. Off the job Methods

7. Unit - 2Performance Appraisal

8. Performance Appraisal • It is the process of evaluating the performance of an employee and communicating the results of the evaluation for the purpose of rewarding or developing the employee.

9. Objectives of Performance Appraisal According to: Employee Organization • concrete and tangible particulars about their work • assessment of performance • mutual goals of the employees & the organization. • growth & development • increase harmony & enhance effectiveness • Personal development • work satisfaction • involvement in the organization. • measuring the efficiency • maintaining organizational control. Aims at:

10. Objectives of Performance Appraisal

11. Appraisal Process

12. The Appraisers • Self-Appraisal • Supervisors • Peers • Customers/ Clients • Subordinates

13. Performance Appraisal Methods • Traditional Methods • Modern Methods

14. Traditional Methods • Management by objectives or Goal Setting • Graphic rating scale • Work Standards approach • Essay Appraisal • Critical Incident Method • Forced Choice rating method • Point allocation method • Ranking Methods • Paired Comparison • Forced Distribution • Checklist

15. Modern Methods • Behaviorally anchored rating scale (BARS) • 360 degree performance appraisal • Team Appraisals • Balanced Score Card method

16. Management By Objectives (MBO) • Main aspects of MBO : • Clear and well defined goals • A definite time span to achieve the goals • Timely and constructive feedback • MBO is most commonly used for managers and professionals • The goals are set with the active participation of the employee and his supervisor. • The goals have to be in alignment with the organisational goals and have to contribute to their achievement

17. MBO Process • Set organizational goals • Defining performance target • Performance review • feedback

18. Graphic rating method • Used to rate the employees on factors like quantity and quality of job, job knowledge, dependability, punctuality, attendance etc. • Graphic Rating Scale includes numerical as well as written descriptions

19. Graphic or Linear Rating Scales Attitude 0 5 10 15 20 No interest In work: consistent complainer Careless: In-different Instructions Interested in work: Accepts opinions & advice of others Enthusiastic about job & fellow-workers Enthusiastic opinions & advice sought by others Decisiveness 0 5 10 15 20 Take decisions in consultation with others whose views he values Slow to take decisions Take decisions after careful consideration Takes decisions promptly Take decisions without consultation

20. Forced choice method • Criteria Rating • 1.Regularity on the job Most Least • Always regular • Inform in advance for delay • Never regular • Remain absent • Neither regular nor irregular

21. Specimen of Staff Assessment Form [Descriptive Essay Type] Staff Appraisal Name . . . . . . . Job Title . . . . . . . Department . . . . . . . . . . . . Date of Review . . . . . . . Age . . . . . .. . Years in present job • Section I Appraisal Of Performance • Note to Appraiser • Appraisal must cover the period of the preceding 12 months • Consideration to every function & responsibility of the job • An objective factual assessment of an employee’s improvement or deterioration • Section II Promotability & Potential • Promotability • Promotion now • Within 2 years • Within 5 years • Unlikely to qualify for promotion • Section III Career Development • Section IV Notes on Interview with employee • Section V Comments on & Endorsement by Reviewing Authority

22. Critical Incident method Ex: A fire, sudden breakdown, accident Workers Reaction scale A Informed the supervisor immediately 5 B Become anxious on loss of output 4 C Tried to repair the machine 3 D Complained for poor maintenance 2 E Was happy to forced test 1

24. Forced distribution method No. of employees 40% 20% 20% 10% 10% poor Below average average good Excellent Force distribution curve

25. Group appraisal method

26. Behavioral Anchored Rating Scales

27. 360 degree performance appraisal

28. Examples of 360 degree performance appraisal method These companies are using 360 Degree Performance Appraisal Method • Maruti Udyog • HCL Technologies • Wyeth Consumer Health (WCH) • Wipro • Infosys • Reliance Industries

29. Issues in appraisal system Formal and informal Appraisal Design What methods? Whose performance? When to evaluate? Who are the raters? What problems? What to evaluate? How to solve?

30. Pitfalls in Performance Appraisal • Halo Effect • Leniency Effect • Stringency Effect • Recency Effect • Primacy Effect • Central Tendency Effect • Culture • Stereotyping • Perpetual Set • Fundamental Attribution