Performance Appraisal and Potential Evaluation-2


SKU: AMSEQ-207 Category:

Assignment – A

Question 1. “360 degree appraisal method has its own short-comings”. Discuss. Also point out the merits of this method.

Question 2. Enlist the modern methods of performance appraisal. Which of these do you prefer the most and why? Give reasons.

Question 3. Discuss, in brief, the role of coaching and counseling in improving performance of employees.

Question 4. How can the relationship between ‘performance’ and ‘pay’ be instrumental in improving performance in an organization?

Question 5. Distinguish between ‘Performance Appraisal’ and “Potential Evaluation”. Also discuss, in brief, the methods of Potential evaluation.

Assignment – B

Question 1. What precautions should be taken while designing performance appraisal system so that it may serve the desired purpose? Discuss in detail.

Question 2. “No performance appraisal method will serve the desired purpose until and unless it is followed by post-review discussion” Discuss.

Question 3. Write short notes on any three of the following:
(a) Emerging issues in performance management
(b) Competency Mapping.
(c) HRD and performance appraisal.
(d) Role Clarity.

Case Study


Kalyani Electronics Corporation Ltd., recently diversified its activities and started producing computers. It employed personnel at the lower level and middle level. It has received several applications for the post of Commercial Manager-Computer Division. It could not decide upon the suitability of the candidates to the position, but did find that Mr. Prakash is more qualified for the position than other candidates. The Corporation has created a new post below the cadre of General Manager i.e. Joint General Manager and asked Mr. Prakash to join the Corporation as Joint General Manager. Mr. Prakash agreed to it viewing that he will be considered for General Manager’s position based on his performance. Mr. Anand, the Deputy General Manager of the Corporation and one of the candidates of General Manager’s position was annoyed with the management’s practice. But, he wanted to show his performance record to the management at the next appraisal meeting. The management of the Corporation asked Mr. Sastry, General Manager of Televisions Division to be the General Manager in-charge of Computer Division for some time, until a new General Manager is appointed. Mr. Sastry wanted to switch over to Computer Division in view of the prospects, prestige and recognition of the position among the top management of the Corporation. He viewed this assignment – As a chance to prove his performance.

The Corporation has the system of appraisal of the superior’s performance by the subordinates. The performance of the Deputy General Manager, Joint General Manager and General Manager has to be appraised by the same group of the subordinates. Mr. Anand and Mr. Sastry know very well about the system and its operation, whereas Mr. Prakash is a stranger to the system as well as its modus operandi. Mr. Sastry and Mr. Anand were competing with each other in convincing their subordinates about their performance and used all sorts of techniques for pleasing them like promising them a wage hike, transfers to the job of their interest, promotion, etc. However, these two officers functioned in collaboration with a view to pull down Mr. Prakash. They openly told their subordinates that a stranger should not occupy the ‘chair’. They created several groups among employees like pro-Anand’s group, pro-Sastry group, Anti-Prakash and Sastry group, Anti-Anand and Prakash group.

Mr. Prakash has been watching the proceedings calmly and keeping the top management in touch with all these developments. However, Mr. Prakash has been quite work-conscious and top management found his performance under such a political atmosphere to be satisfactory. Prakash’s pleasing manners and way of maintaining human relations with different levels of employees did, however, prevent the emergence of an anti-Prakash wave in the company. But in view of the political atmosphere within the company, there is no strong pro-Prakash’s group either.

Management administered the performance appraisal technique and the subordinates appraised the performance of all these managers. In the end, surprisingly, the workers assigned the following overall scores. Prakash: 560 points; Sastry: 420 points; and Anand: 260 points.

1. How do you evaluate the worker’s appraisal in this case?
2. Do you suggest any techniques to avert politics creeping into the process of performance appraisal by subordinates? Or do you suggest the measure of dispensing with such appraisal systems?

Assignment – C

1. Which of the following is not the aim of performance appraisal?
(a) To make compensation plans more scientific and rational.
(b) To select the best candidates
(c) To identify the needs of training
(d) To identify potentialities for other work

2. Which of the following is not a traditional and highly scientific method of performance appraisal?
(a) Critical Incident Method
(b) Point Method
(c) Behaviourally Anchored Rating Scales (BARS)
(d) Man-to-Man comparison

3. Which of the following is not one of the modern methods of performance appraisal?
(a) 3600 Techniques
(b) Human resource accounting
(c) Grading Method
(d) BARS

4. In the paired comparison technique of performance appraisal, which of the following formulae is applied ?
(a) No. of comparison = N-(N-1)

(b) No. of comparison = N -(N-1)

(c) No. of comparison = N-(N-1)

(d) No. of comparison = N (N-1)


5. Which of the following statements regarding MBO is not true?
(a) There is no special provision in MBO for appraising of progress by both the appraiser and the appraised.
(b) MBO has a special provision for mutual goal setting
(c) MBO has emerged as a reaction to the traditional management practices
(d) MBO is based on behavioural value of fundamental trust in the goodness of human beings.

6. 360 Degree Technique does not evaluate the manager’s quality of interaction with:
(a) Customers
(b) Peers
(c) Subordinates
(d) Bosses

7. 360 Degree Technique does not play any important role in:
(a) Unfolding strengths and weaknesses in the managing style of assessee
(b) Boosting the morale of assessee
(c) Revealing truths about organizational culture and ambience
(d) Forcing inflexible managers to initiate self-change

8. Which of the following statement about 360 degree technique is not true?
(a) Assessees usually deny the truth of negative feedback
(b) Linking findings to rewards may be unfair
(c) Can be used to humiliate assessee(s)
(d) Can be used in writing job descriptions

9. Which of the following is not one of the steps in the process of constructing BARS?
(a) Collecting critical incidents
(b) Forcing choice descriptions
(c) Reclassification of incidents
(d) Identifying performance dimensions

10. Which of the following is not a modern method of performance appraisal?
(a) Human Resource Accounting
(b) Graphic Rating Scale Method
(c) MBO
(d) Self-evaluation

11. Which of the following is not one of the limitations and constraints of performance appraisal?
(a) Psychological Blocks
(b) Economic Blocks
(c) Technical Pit Falls
(d) Faulty Assumptions

12. Which of the following is not one of the distortions involved in performance evaluation?
(a) Halo effect
(b) Special tendency
(c) Rater’s liking and disliking
(d) Constant errors

13. Which of the following is not a method of potential evaluation?
(a) Review Appraisal
(b) Philips NV Holland Model
(c) Descriptive Evaluation
(d) Psychometric Tests

14. Which of the following is not included in the 2×2 matrix used in Philips’ Hi-Lo Model of potential
(a) Developers
(b) Problem Children
(c) Stars
(d) Planned Separation

15 Which of the following four qualities is generally not included while preparing 5-point scale for
potential evaluation in Philips NV Holland Model?
(a) Training effectiveness
(b) Operational effectiveness
(c) Interpersonal effectiveness
(d) Achievement motivation

16. Which of the following is not considered as one of the best practices of potential evaluation?
(a) Rewarding for good performance in the past
(b) Communicating potential appraisal to all employees regularly
(c) Incorporating the appraisal and reward of potential in the assessment system
(d) Ensuring to distinguish reward for potential from reward for past performance.

17. As per Mihir, K Basu’s Survey, the appraisal system for managerial personnel in the Tata Iron &
Steel Company (TISCO ) was introduced in :
(a) 1943
(b) 1953
(c) 1963
(d) 1973

18. Which of the following factors does not influence the measurement of work performance?
(a) Situational characteristics
(b) Individual Characteristics
(c) Image of the company
(d) Performance Management Procedures

19. Which of the following statements is false?
(a) Job analysis is the basic for performance standards
(b) Subjective measures in performance appraisal are most desirable
(c)Using multiple raters improves performance
(d) Rating scales are particularly subject to bias

20. Which of the following statements is correct?
(a) 360 degree appraisal compare ratees to one another
(b) Assessment Centers’ assessment is desirable when raters rate practically all employees above average
(c) Rating in BARS is in behavioural terms
(d) Narrative essay is the order of ranking from best to worst

21. Which of the following is not the major issue in performance appraisal?
(a) Performance Criteria
(b) Reward criteria
(c) Purpose & appraisal system
(d) Measurement technique

22. The basis for performance standard is:
(a) Job analysis
(b) Employees
(c) HR Plans
(d) Compensation Plan

23. Performance appraisals serve as building blocks of:
(a) Manpower Planning
(b) Job analysis
(c) Career Planning
(d) Selection

24. Which of the following is a future-oriented appraisal technique?
(a) MBO
(b) BARS
(c) Rating Scales
(d) Field Review Method

25. Which of the following technique is least susceptible to personal bias?
(a) BARS
(b) Forced Choice
(c) Rating Scales
(d) Check Lists

26. A disadvantage of rating scale is :
(a) Feedback
(b) Quantification of scores
(c) Time involved
(d) Cost.

27. Which of the following is not the typical Rater error?
(a) Stereo Typing
(b) Same as me
(c) Horn effect
(d) Desire to be accepted

28. Which step of the following should not be involved in the review of performance appraisal?
(a) Immediate Superior-subordinate Review.
(b) Deciding compensation
(c) Monitoring, Auditing and Appeals
(d) Review by Higher Levels of Management

29. Which, according to N.F.R. Maier, of the following is not included in the seven accomplishments of good counseling?
(a) Availability of expert knowledge
(b) Conformity of solution with value system
(c) Identifying threats
(d) Development of responsibility

30. Which of the following is not one of the key elements of performance appraisal which can be
achieved through an effective appraisal discussion?
(a) Exchange of views
(b) Agreement
(c) Feedback
(d) Disenchantment

31. Which of the following is not one of the main sub-processes of counseling?
(a) Communication
(b) Autonomy
(c) Helping
(d) Influencing

32. Which of the following is not involved in ‘Communication’?
(a) Listening
(b) Responding
(c) Empathy
(d) Feedback

33. Which of the following is not included in ‘influencing’?
(a) Autonomy
(b) Positive Re-enforcement
(c) Mutuality
(d) Identification

34. Which of the following is not involved in ‘helping’?
(a) Positive Re-enforcement
(b) Mutuality
(c) Empathy
(d) Development

35. Which of the following is not one of the key aspects of conducting Appraisal Discussion?
(a) Summation
(b) Attending
(c) Progression
(d) Acceptance

36. Which of the following is not one of the three distinct aspects which can be identified in ‘Action
(a) Positive Requirement
(b) Management Support
(c) Decision Making
(d) Searching

37. Which of the following is not one of the steps essential for development and introduction of
performance appraised system?
(a) Deterring an overall approach to performance appraised system
(b) Setting up project team
(c) Appropriate compensating the Project Team
(d) Pilot testing

38. Which of the following is not the purpose of self-appraisal?
(a) Orienting the employee regarding the intricacies of performance appraisal system
(b) Providing a formal opportunity for the employee to recapitulate.
(c) Identifying his own development needs
(d) Initiating an organization-wide process of review and reflection and supportive climate
39. Which is not the advantage of 360 degree appraisal?
(a) Requires extensive training
(b) Is more objective being multi-rater based
(c) Increases accountability of employees to customers
(d) Increases credibility of performance appraisal

40. Which of the following is not the new performance measure that Godrej & Boyce has identified?
(a) Networking Capital Returns
(b) Return on Investment
(c) Volume of Business Growth
(d) Net contribution of the Division