- In this method, an employee’s performance is evaluated by his immediate superior.
- The superior is in the best position to judge performance as he allocates, supervises, and controls the work.
- The superior is responsible for the work of subordinates, so he has the authority to appraise them.
- However, appraisal by superior may be biased due to personal likes or dislikes.
- To reduce bias, appraisal by superior should be supplemented by feedback from juniors, peers, and clients (multi-source appraisal).
Topics
Introduction to Human Resource Management
- Human Resource Management
- Characteristics of Human Resource Management
- Importance of Human Resource Management
- Human Resources as a Competitive Advantage
- Functions of Human Resource Management
- Overview of Introduction to Human Resource Management
Job Analysis and Manpower Planning
- Job Analysis
- Relevance of Job Analysis
- Job Description or Position Description
- Job Specification or Man Specification or Employee Specification
- Job Enlargement
- Job Enrichment
- Manpower Planning
- Manpower Estimation
- Overview of Job Analysis and Manpower Planning
Staff Recruitment
- Recruitment
- Characteristics of Recruitment
- Sources of Recruitment: Internal Sources
- Sources of Recruitment: External Sources
- Differences Between Internal and External Sources of Recruitment
- E-recruitment
- Overview of Staff Recruitment
Staff Selection
- Meaning and Definition of Staff Selection
- Difference Between Selection and Recruitment
- Steps in Employee Selection Process
- Psychological Tests
- Interviews
- Types of Interviews
- Limitations of Interview
- Overview of Staff Selection
Staff Training
- Training
- Comparative Overview of Training, Education, and Development
- Importance of Training
- Types of Training
- Preparation of Training Programme
- Methods and Techniques of Training: On-the-Job Training
- Methods and Techniques of Training: Off-the-Job Training
- Types of Employee Training: Key Distinctions
- Hindrances to Training
- Benefits of Training to Employer and Employee
- Overview of Staff Training
Staff Morale
- Meaning and Definition of Staff Morale
- Characteristics of Staff Morale
- Morale Productivity Matrix
- Measurement of Morale
- Factors Influencing Morale
- Determinants of Morale
- Methods of Raising Morale
- Indicators of Low Morale or Disadvantages of Low Morale
- Passive Effects of High Morale or Advantages of High Morale
- Importance of Team Work
- Measures for Building Effective Teams
- Overview of Staff Morale
Staff Motivation
- Meaning and Definition of Staff Motivation
- Motivation Process
- Characteristics of Staff Motivation
- Difference Between Motivation and Morale
- Importance of Staff Motivation
- Factors Influencing Motivation
- Difference Between Financial/Monetary and Non-Financial/Non-Monetary Incentives
- Maslow's Theory of the Hierarchy of Human Needs
- Herzberg's Two Factor Theory
- Critical Appraisal of Herzberg's Theory
- Relationship Between Maslow and Herzberg Theories
- Overview of Staff Motivation
Staff Remuneration
- Meaning and Definition of Staff Remuneration
- Money Wages and Real Wages
- Methods of Wage Payment: Time-Rate System
- Methods of Wage Payment: Piece-Rate System
- Distinction between Time-Rate and Piece-Rate System
- Wage Records
- Various Staff Benefits
- Gratuity
- Types of Leave
- Overview of Staff Remuneration
Staff Leadership
- Meaning and Definition of Leadership
- Distinction Between Leadership and Management
- Importance of Leadership
- Leadership - Qualities of a Good Leader
- Leadership Styles
- Difference between Different Styles of Leadership
- Leaders: Born or Made?
- Leadership Continuum
- Situational Leadership
- The Managerial Grid
- Overview of Staff Leadership
Staff Appraisal
- Performance Appraisal
- Potential Appraisal
- Objectives of Performance Appraisal
- Importance of Performance Appraisal
- Method of Performance Appraisal
- Appraisal by Results
- Appraisal by Superior Staff
- The 360° Appraisal
- Overview of Staff Appraisal
Staff Promotion and Transfer
- Meaning and Definition of Promotion
- Benefits of Promotion
- Limitations of Promotion
- Open and Closed Policy of Promotion
- Dry Promotion and Upgrading
- Demotion
- Requirements of a Sound Promotion Policy
- Bases of Promotion
- Meaning and Definition of Staff Transfer
- Need and Purposes of Staff Transfer
- Types of Transfer
- Is Transfer a Punishment?
- Transfer Policy
- Overview of Staff Promotion and Transfer
Staff Separation
- Introduction of Staff Separation
- Means of Staff Separation
- Exit Interview
- Overview of Staff Separation
Emerging Trends in Human Resources
- Flexible Hours
- Permanent Part Time
- Work from Home
- Retainership
- Virtual Team
- Self-managing Teams (SMTs)
- Overview of Emerging Trends in Human Resources
Business Communication
- Communication
- Importance of Communication in Business
- Elements of the Communication Process
- Oral or Spoken Communication
- Written Communication
- Distinction between Oral Communication and Written Communication
- Gestural Communication
- Visual Communication
- Distinction Between Gestural and Visual Communication
- Internal Communication
- External Communication
- Distinction Between Internal and External Communication
- Formal Communication
- Informal Communication or Grapevine
- Distinction Between Formal and Informal Communications
- Horizontal Communication
- Vertical Communication
- Diagonal Communication
- Barriers to Communication
- Overcoming the Barriers to Communication
- Current Trends in Business Communication
- Overview of Business Communication
Business Correspondence
- Needs and Functions of Business Correspondence
- Elements and Components of Business Letters
- Essentials of a Good Business Letter
- Types of Letters
- Overview of Business Correspondence
Reports and Report Writing
- Meaning and Definition of a Report
- Characteristics of Reports
- Purposes or Functions of Reports
- Essentials of a Good Report
- Format of a Report
- Types of Reports
- Overview of Reports and Report Writing
Various Business Entities
- Sole Proprietorship
- Concept of Partnership
- Difference Between Partnership and Sole Proprietorship
- Private Limited Company
- Public Limited Company
- Difference Between Private Company and Public Company
- Overview of Various Business Entities
Sources of Business Finance
- Kinds of Shares> Equity Shares
- Kinds of Shares> Preference Shares
- Concept of Debentures
- Retained Profits
- Loans
- Public Deposits
- Trade Credit
- Accounting Treatment> Discounting the Bill of Exchange
- Global Depository Receipts (GDRs)
- Angel Investors
- Venture Capitalists
- Crowd Funding
- Peer-To-Peer Funding
- Factoring
- Overview of Sources of Business Finance
Globalisation
- Globalisation
- Nature of Globalisation
- Opportunities and Threats of Globalisation
- Transformation of Business by Globalisation
- Overview of Globalisation
E-Business
- Concept of E-business
- Comparative Study of E-Business
- Nature of E-Business
- Importance of E-Business
- Online Means of Conducting Business
- Overview of E-Business
Outsourcing
- Concept of Outsourcing
- Parties Involved in Outsourcing
- Concept of Outsourcing
- Business Process Outsourcing (BPO)
- Knowledge Process Outsourcing (KPO)
- Legal Process Outsourcing (LPO)
- Overview of Outsourcing
Business Regulators and Intermediaries
- Concept of Regulators and Intermediaries
- Reserve Bank of India (RBI)
- Securities and Exchange Board of India (SEBI)
- Insurance Regulatory and Development Authority of India (IRDAI)
- Pension Fund Regulatory and Development Authority (PFRDA)
- Food Safety and Standards Authority of India (FSSAI)
- Bureau of Indian Standards Authority (BISA) - Indian Standard Institute (ISI)
- Overview of Business Regulators and Intermediaries
Estimated time: 41 minutes
CISCE: Class 12
Definition: Performance Appraisal
- "The systematic evaluation of the individual with respect to his performance on the job and his potential for development." - Dale S. Beach
- Scot, Clothier and Spriegel have defined it as "The process of evaluating the employee's Performance on the job in terms of requirements of the job."
- In the words of Dale Yoder, performance appraisal consists of "All formal procedures used in working organisations to evaluate personalities and contributions and potentials of group members."
- According to Scot and Spriegel, "Performance appraisal is the process of evaluating the employees, performance on the job is terms of the requirements of the job."
CISCE: Class 12
Key Points: Performance Appraisal
- Performance appraisal is a systematic evaluation of an employee’s performance and potential.
- It compares an employee’s performance with job requirements and predetermined standards.
- The main objectives are to reward efficient employees and identify areas for improvement.
- It helps in decisions related to promotion, pay increase, training, and career development.
- Performance appraisal is usually conducted by the immediate superior and reviewed by higher authority.
- It evaluates both past performance and future development potential of employees.
- Performance appraisal is a continuous process and should be objective and based on clear standards.
CISCE: Class 12
Key Points: Potential Appraisal
- Potential appraisal means evaluating the hidden abilities and future capabilities of an employee.
- It focuses on identifying an employee’s capacity to handle higher responsibilities.
- Potential is assessed through personality traits, skills, qualifications, experience, and past performance trends.
- It helps in identifying employees suitable for promotion and higher positions.
- Potential appraisal ensures proper use and development of employees’ talents for organisational growth.
CISCE: Class 12
Difference between Performance Appraisal and Potential Appraisal
| Basis | Performance Appraisal | Potential Appraisal |
|---|---|---|
| Meaning | Evaluation of job performance | Evaluation of future capabilities |
| Time | After job is performed | Before assigning higher job |
| Purpose | Decide pay, promotion, training | Decide future responsibilities |
| Basis | Quantity and quality of work | Traits, skills, experience, aptitude |
CISCE: Class 12
Key Points: Objectives of Performance Appraisal
- To evaluate whether employees are performing according to the required standards.
- To maintain performance records for decisions regarding wage increments and rewards.
- To identify employees who are wrongly placed and take corrective action.
- To assess employees’ potential for promotion and higher responsibilities.
- To identify weaknesses and provide suitable training and development.
- To create awareness among employees about their performance and motivate self-improvement.
CISCE: Class 12
Key Points: Importance of Performance Appraisal
- Performance appraisal helps in proper placement by identifying the right person for the right job.
- It identifies strengths and weaknesses, helping in training and development of employees.
- It assists in deciding incentive compensation such as pay increases and rewards.
- It supports decisions regarding promotions and transfers based on employee potential.
- It creates psychological awareness among employees, motivating them to improve their performance.
CISCE: Class 12
Key Points: Methods of Performance Appraisal> Merit Grading
- Merit grading is a method of performance appraisal where employees are placed into fixed categories like poor, average, and outstanding.
- Ratings are distributed according to a normal distribution pattern (e.g., 10% poor, 40% average, etc.).
- It is simple to understand and helps in easy comparison of employees’ performance.
- The method reduces bias by forcing distribution of ratings into predetermined grades.
- However, it may demotivate low-rated employees and does not provide detailed feedback for improvement.
CISCE: Class 12
Key Points: Methods of Performance Appraisal> Appraisal By Results
- Appraisal by Results is also known as Management by Objectives (MBO) and is based on goal setting.
- Performance is evaluated against specific and measurable objectives decided jointly by superior and subordinate.
- It involves setting targets, reviewing progress, and taking corrective actions through mutual discussion.
- This method reduces bias as appraisal is based on clear and time-bound goals.
- It improves motivation and job satisfaction by involving employees in goal setting.
- It focuses on training, development, and problem-solving rather than mere criticism.
- However, it is time-consuming, difficult to apply at lower levels, and may ignore external factors affecting performance.
CISCE: Class 12
Key Points: Methods of Performance Appraisal> Appraisal By Superior Staff
CISCE: Class 12
Key Points: Points: Methods of Performance Appraisal> The 360° Appraisal
- The 360° appraisal system evaluates an employee from multiple sources – superiors, subordinates, peers, and self.
- It uses structured questionnaires to collect feedback on performance and behaviour.
- The system increases objectivity, transparency, and participation in performance evaluation.
- Self-appraisal encourages self-awareness and helps employees identify strengths and weaknesses.
- Superior, subordinate, and peer appraisals provide comprehensive feedback from different work relationships.
- It promotes teamwork, empowerment, and personal development through counselling and feedback sessions.
- However, it may involve bias, misuse, denial of feedback, and may not always focus on goal achievement.
