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Performance Management System
December 2024 Examination
- During a performance review process, an employee consistently receives lower ratings from a specific manager, despite positive feedback from other supervisors. Discuss how appraiser’s biases might be affecting this employee’s evaluations and suggest methods to mitigate such biases in future appraisals. (10 Marks)
Ans 1.
Introduction
Performance management systems are crucial for organizational growth and employee development, providing a structured approach to assess and enhance employee performance. However, the integrity of these systems can be compromised by various biases exhibited by appraisers during the evaluation process. One significant concern arises when an employee consistently receives lower performance ratings from a specific manager, despite favorable assessments from other supervisors. This scenario highlights the potential influence of appraiser biases, which can stem from personal prejudices, previous interactions, or a lack of understanding of the employee’s
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- Ravi Jai’s manager, needs to talk to Jai about his poor performance over the previous quarter. Jai enters the room and sits across the desk from Ravi. Jai: Ravi, you wanted to talk to me?
Ravi: Yes, Jai thanks for coming by. I wanted to talk about your performance of last quarter. (Ravi phone rings and he answers it. Five minutes later Jai is still waiting for Ravi) Jai finally gets frustrated and Ravi notices Jai looks at his watch several times.) Sorry for the interruption Jai, I know it is frustrating to be kept waiting.
Jai: I am very busy. Can we get on with this?
Ravi: Yes, absolutely. As you know you had some problems meeting all of your goals last quarter.
Jai: Now wait a second. I met the most important goal. Ravi: Yes, you did, but you miss the other four.
Jai: Just by a little and it wasn’t my fault.
Ravi: Jai, you need to accept responsibility for your own performance and not push blame on to others. You need to meet your goals this coming quarter or I will have to take more serious action.
Jai: One bad quarter and you threaten to fire me? I can’t believe this! Ravi: Just meet all of your goals, and I won’t have to take that action.
If you are Jai’s manager, how would you have handled this appraisal interview and what steps would you have followed? (10 Marks)
Ans 2.
Introduction
Performance appraisal interviews are critical moments for both managers and employees, as they provide an opportunity for constructive feedback and discussion regarding performance. In the scenario involving Ravi and Jai, the interaction highlights several challenges, including poor communication, inadequate preparation, and a lack of empathy from the manager. Such factors can lead to misunderstandings, frustration, and a negative work environment. Effective appraisal interviews should foster open dialogue, encourage accountability, and promote a supportive atmosphere that allows employees to express their concerns. If I were Jai’s manager, I would approach the appraisal interview with a structured and empathetic framework that prioritizes clear communication,
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- Imagine you are the manager of a mid-sized retail company facing increasing competition from online retailers. Over the past year, your company has seen a decline in foot traffic and a slight decrease in overall revenue. The CEO has asked you to implement the Balanced Scorecard method to help realign the company’s strategy and improve performance
- Given the situation, how would you develop a Balanced Scorecard for your company? (5 Marks)
Ans 3a.
Introduction
In today’s competitive retail landscape, characterized by the rise of online shopping, it is crucial for mid-sized retail companies to adapt their strategies to improve performance and sustain growth. The Balanced Scorecard method provides a comprehensive framework for aligning business activities with strategic objectives. By focusing on multiple perspectives—financial, customer,
b Outline the key objectives and performance measures you would set for each of the four perspectives to address the challenges and realign the company’s strategy. Imagine any benchmarks. (5 Marks)
Ans 3b.
Introduction
To effectively realign the strategy of a mid-sized retail company facing increasing competition from online retailers, it is essential to establish clear objectives and performance measures across the four perspectives of the Balanced Scorecard: financial, customer, internal processes, and learning and growth. Setting specific targets and benchmarks will enable the company to track progress and adapt its