FOUNDATION of MANAGEMENT

( MGMT 7030 )
INDIVIDUAL APPRAISAL TASK
By ABHISHEK GUPTA
(u5880442)
Performance appraisal is that occasion when once a year you find out who claims sovereignty
over you.
-

Peter Block

INTRODUCTION
Todays world is very competitive and this competition is spread across every global market place , as it
is not just one can say that its because of various products & services or low cost but also due to the
essential skills that a company possess that also includes its key strategies & core competencies.Hence the
skilled employees that a company has are also considered among the companys competences. Further
taking into consideration employees who are efficient as well as skilled are very essential for the
industries like Pharmaceuticals as they have very specialized skills like expertise in various fields that
includes expertise in technical as well as scientific areas so that a better quality products & services could
be developed & provided.
This brings into the picture, a Human Resource Department as it is essential for them to ensure that a
company have efficient & skilled employees retained and in order to do so they use tool called as
Performance Appraisal. As per the Reports and gathered articles , this concept is said to be first developed
by the federal government of US , which was done[10] in order to evaluate the performance of the clerks so
that it is easy to identify if the clerks that are employed are working usefully and brought this appraisal
system through tools in form of regular & written performance feedback depending on the way of
analyzing in companies.
Performance Appraisal can be defined as the system in which a senior supervisor or managers
measures/evaluates the work performance/efficiency of their subordinates on the basis of parameters such
as their strengths,weaknesses as well as skills used across different jobs being prepared by the means of
some performance appraisal tools that includes their current as well as past performance (Garry Dessler
1999) in the form of feedbacks given so that if there are performance deficiency, it could be improved.

Hence Performance Appraisals are used now by most companies especially in the form of feedbacks so
that the performance of employees as well as that of a company could be improved.
Although the first question that comes into our mind is ,
Why Performance Appraisal is Important ?
Taking the Employees Perspective, Performance Appraisal is important because of the following :a) It helps an employee to ensure that he is made aware of his weaknesses and hence by improving
he becomes an efficient performer.
b) It helps in gaining increased recognition across the organization.
Where as Taking the Organisations Perspective, Performance Appraisal is important because :a) It helps in making good decisions in respect of promotion, transfer,demotion etc.
b) It helps in rewarding employees.
c) It helps in overall efficiency & effectiveness of work function in an organization through justified
feedbacks.
APPROACHES & PERFORMANCE MEASURE USED
Depending on the organization, the Performance Appraisal approach can be Competency based , results
based or could be hybrid. Taking my approach , the approach is Hybrid Based as there are various
techniques/methods towards the approach.This could be explained in two types of methods [10] :A. Method 1 - Past Oriented.
B. Method 2 - Future Oriented.
Method 1
(1) Past Oriented Past oriented methods are also called as traditional methods.
In these , the assessment of performance is based on ones past behaviours &
performance that includes his past output in work , past job knowledge & behaviours.
It includes methods like
a) Rating Scale Method
b) Checklist Method
c) Confidential Records
d) Behavioural Scale

a) Rating scale method - This method includes the performance criteria such as initiative , attitude ,
co-operation , dependability , & output. These are rated in form as , from Poor to Excellent .
It is rated as below [11]

For Example- Noaris could us such method in order to gather Performance Appraisal on its
employees if they can do multi-tasking so as to have an idea of how much output by the employee
can be brought further.
b) Checklist This method includes statements that tells about employees Traits. These are rated in
form as , YES

or

NO . It is rated as below [11]

Its Advantages are i) Low Cost ii) Easy to Administer.

Its Disadvantages are i) Raters Bias ii) Improper HR weighs.
For Example Noaris can use Checklist method in order to gather information for keeping fast track
environment if it is made aware if the employee traits are not biased.

c) Confidential Records This method is preferably used for Government Servants that includes
performance criteria such as Quality of Work , Productivity , Job Knowledge , Attendance etc.
The are rated as Outstanding , Very Good , Good , Below Average , Unsatisfactory . It is
rated as below [11]

Its Advantages are i) High Confidentiality & Secrecy.

Its Disadvantages are i) Manipulated Ratings.
d) Behaviour Scale This method assess an employees bahaviour.These are rated as Strongly
Agree , Neither Agree or Disagree & Disagree . It is rated as below [11]

Its Advantages i) Overcoming rating error.

Its Disadvantages i) Inherent Distortions.
(2) Future Oriented Future Oriented methods are also called as modern methods.
In these , the assessment of performance of an individual is based on his
future potential & responsiveness. It includes methods like
a) Management by Objecive (MBO)
b) Psychological Appraisals
c) Assessment Centres
a) Management by Objective (MBO) This method assess whether an employee has achieved the
objectives which were given by the management
Its Advantages are i) Appropriate for employees in managerial positions
Its Disadvantages are i) Short term goals emphasized over long term goals.
b) Psychological Appraisals This method assess various aspects in form of charateristics that
affects employees like Emotional , Motivational , Intellectual & Work Related etc.
Its Advantages are i) Identifying potentials of employees in totality
Its Disadvantages are - i) Slow & Costly process
c) Assessment Centres This method assesses executive potential of an employee that includes
charateristics like Assertiveness , Self Confidence , Stress Level , Administrative Ability etc.
Its Advantages are i) Professional experienced assessors ii) Define clear criteria for promotions
Its Disadvantages are i) Travelling & Lodging costs ii) Psychologist fees.
d) 360 Degree Appraisal This method assesses on the basis of feedback and performance
information based on an employees skills , his abilities , or behavior given by his peers , clients ,
supervisors , subordinates , or customers etc.
Its Advantages are i) Multi source feedback is useful

ii) Gives broader perspective feedback

Its Disadvantages are i) Unprofessional multiple raters.

For example- A supervisor may penalise any of his employee by giving/providing them negative
feedback, also a peer, who is being influenced by give and take feeling may give a rave review
on his/her colleague[10].

PERFORMANCE CRITERIA
In Reference to the above the preferably used approach in order to measure Performance in
Pharmaceutical Company is Hybrid Approach as in this approach uses the combination of macro as well
as micro competences , Hence such approach covers all the three basic ways of evaluating criteria for
management performance by being Job focused , Person Focussed & Role Focussed thereby enabling
optimum use of resources with a better transparency and ensuring full range of various competencies are
utilized thereby ensuring sustained improvements in future performances.Taking performance evaluation
into consideration , Performance Ratings which are said to be a common form for performance evaluation
are always subjected to a variety of biases that reduces their reliability & validity (Landy & Farr , 1980).
In a pharmaceutical company,it is expected that the competent sales managers should speciafically target
the groups of healthcare professionals, physicians as well as health expert by providing proper
applications and details of the products in order to boost sales by doing market analysis on the basis of
reports and customer demand along with examining the overall competition.The Sales Manager should
use data collection by the method of Checklist and formulate qualitative techniques so that the
information generated is utilized.
For Sales managers in a pharmaceutical company , the method used for performance appraisal can also
be rating scale method , as there are many items and hence an evaluation is done on the basis of point
scale.Based on the performance the employees/managers gets benefits like posting in areas of their
choice, extra perks and hence brings motivation along with talent recognition.The company should also
adopt a Management by Objective & 360 degree performance appraisal instrument for appraising its
managers as it is very essential that the true potential of its employees could be recognized .
My Small Experience in sales & how performance appraisal was conducted in I want to share my personal for sales with performance appraisal, when I was a salesperson, I was always
given some targets like I have to sell a minimum of 50 packets of a particular item every day and the
performance was analysed monthly. So what I use to do is that I knew that my boss knows that I couldnt
sell 50 packets in day , he knew that could only sell near 20-30 packets a day, but what actuality was as I
use to sell more than 40 packets a day, but in reply I tell my boss that I sold 20-25 packets but boss knew
the target of his is tough , he use to show me that he is angry but that was not the fact and he tells us work
hard , so why I use to tell my boss that I sold less , reason being that if at any day I sold less than 10
packets so it would be tough for me to justify in my monthly report so I use my previous selling of extra
packets, so in order to balance my overall report I did that , thats what most of the sales guys does so that
their performance appraisal should not be affected.What if I told my boss I sold high no. of packets, it
makes sales more tough as now my target for sales to achieve will increase. The Performance appraisal
used in my company was Management by Objective,The company during the period of Appraising gave

all the employees a survey with questions asked on work conditions,pay,relationship with coworkers/supervisors & lastly Job satisfaction in order Analyse for Performance Appraisal.
RELIABILTY & VALIDITY OF PERFORMANCE
Regarding attainable levels , through the observations (Mackinney & Wolins , 1971) there are concerns
over reliability & validity through upper limits as it indicates how much improvement could be done in
reference to the performance appraisal system.The experts of the domains should have similar kind of
experience and training as those of the raters as a minor issues like a small delay between the observation
& evaluation can bring significant reductions in the ratings accuracy.
For Example If there is a Skating sports event at international level, and the skaters are to be judged
(Performance Analysed) by the judges on the basis of the performance of the atheletes and should not be
biased to give ratings and these ratings should be based on some set standards, Hence taking a skaters
performance into consideration, it can be an issue of argument that there are various conditions as every
skaters performance was also under the feedbacks of public enthusiasm as suppose judges agreement
would have been that that skater 3 was better than other skaters but the performance of other skaters was
on or near par with skater 3 which explains us that at one point others skater were good but in the end
they failed to qualify the competition[8].
CONCLUSION
Performance Appraisal of Noaris Pharmaceuticals can act as a role model to other multi national
companies.The company can appoint new employees in their Human Resource Department who can
observe the performance of it sales managers on quarterly basis so as there is no biasness in the
process.Job satisfaction in todays world very difficult and depends upon industry to industry basis.Hence
it is essential that there shall be a satisfaction among employees in regard of their jobs which is now a
days lot more been looked into by the focus of managers over their subordinates in the company.This
helps in improved service quality giving a boost to do business better.Taking pharmaceutical industry
into consideration we can see that increase in wage (money) acts as a good motivator through better
salary & compensations in order to satisfy employees.Hence an effective performance appraisal system
along with good work environment can give rise in job satisfaction among employees , who will now
ensure to work with better efficiency , hereby producing better output.Hence the company should conduct
an yearly survey with all of its employees in order to to know if they recognize and give importance to
companys goals and expectation.
RECOMMENDATIONS
1. I suggest companies should preferably use Checklist Method as it is more cost effective & easy to
evaluate but is essential with new Human Resource employees to be hired for zero biasness.

2. 360 Degree method should be combinedly used with rating scale method to get overall feedback
with proper monitoring.
3. Lastly a new method should be developed which is less time consuming & zero biasness and
should be conducted frequently like quarterly so that there should not be any manipulations &
mis ratings and a motivational aspect should be brought in picture so that those who havent
performed should work in right direction for better appraisal.
REFERENCES
1. Cheng, M. I., &. Dainty, R. I. J. (2005). Toward a multidimensional competency-based managerial
performance framework: A hybrid approach. Journal of Managerial Psychology, 20, 380-396.

2. Mount , M.K. 1984. Psychometric properties of subordinate ratings of managerial performance.

Personnel Psychology, 37 : 697-702.
3. Borman , D.S. , Kenny ,D.A.1977.Correlational bias:Not gone and not to be forgotten. Journal of
Personality and Social Psychology, 35:882-887.
4. Kavanagh , M.J MacKinney , A.C. , Wolins , L.1971. Issues in managerial performance:
Multitrait-multimethod analyses of ratings. Psychological Bulletin , 75:34-49.
5. DeCotiis , T.A., & Tice , T.E . 1973. A Multitrait-multimethod analysis of scales developed by
retranslation . Organizational Behaviour & Human Performance , 9: 421-438.
6. Lawler , E.E.1967. The multitrait-multimethod approach to measuring managerial job
performance. Journal of Applied Psychology , 51: 269-281
7. Prien , E.P., & Liske , R.E.1962. Assessment of High level personnel : A comparative analysis
of supervisor ratings and incumbernt self-ratings of job performance. Personnel Psychology ,
15:187-194.
8. Jeff A. Weekley Gli., & Joseph A.Gier BellSouth 1989. Ceilings in the reliability and validity of
performance ratings :The case of expert raters. Academy of Management, 32: 213-222
9. http://blog.mentishrms.com/
10. http://www.yourarticlelibrary.com/
11. www.images.google.com
12. www.slideshare.net

APPENDIX
The following questions are designed where the employees/respondents are asked to indicate the
following parameters in these questions that are to be answered as whether one [12]
Strongly Agree (SA) , Agree (A) , Neutral (N) , Disagree (D) , Strongly Disagree (SD)
Name of the Employee
Age of the Employee Designation in the company Department in the company -