1 Table of Contents

1 Table of Contents..................................................................................................1

2 Executive Summary...............................................................................................2

3 Alternatives...........................................................................................................3

3.1 To Understand the Nimal’s Failure.................................................................3

3.2 To Have a clear idea of the entire performance management system..........8

3.2.1 Performance Management process........................................................8

3.2.2 360 degree evaluation method.............................................................11

3.2.3 Conducting performance review discussion.........................................12

4 Conclusion...........................................................................................................13

5 References...........................................................................................................14

Figure 1: Performance management process.................................................................8

Figure 2: 360 degree evaluation...................................................................................11

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2 Executive Summary

In this case Nimal is a character that is retain in the company for a long time and He
has huge experience in various jobs in this company. Also he has very good
knowledge about the company activities, culture, objectives and goals.

Nimal has experience in various jobs but Nimal does not have specialized knowledge
for perform a higher jobs in management level. With his knowledge he gained from
the experience he performed well bottom level jobs as well as the middle level jobs.

However Director of the organization promote him as a People’s Manager recently.

It’s a top management level job and to manage people there is always need
specialized training or knowledge. Because people is not machines they need
motivation, they need proper leaders as well as good listener to their grievances and
have lot of expectations as well.

Director of the organization gave him to done one of key areas of HR management,
without knowing his knowledge about such activity. Then he fails to do the activity in
the proper way or according to the proper methodology. As a result of that
organization collapse with customer complaints, employee unsatisfactory and
demurrages.

So in this case study my target is to identify the Nimal’s failure and where the Nimal
fails and to have a clear idea of the entire performance management system.

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3 Alternatives

3.1 To Understand the Nimal’s Failure

Nimal joined the Diamond Freight Limited as document clerk. He is a well
experienced person. Also he won the peoples heart due to his good work and
behavior. Then he became as people’s person and also he have knowledge in general
office administrational activities in the company. Due to those things Nimal got
promotions and he build up his career within the organization.

But according to the case study details Nimal does not have specialized knowledge to
perform top management activities or to have a top managerial post. He have good
knowledge about the organization such as activities, Objectives, Vision, Missions and
Goals due his 20 years of experience in the organization. But to perform managerial
activities such as Performance evaluation of workers the appraiser should know the
methodologies and prerequisites that are need to perform such activity.

Following are the skills that appraiser should to have to perform performance
management process.

 Delivering feedback. The ability to give feedback is a key skill. It is

important to find a balance between positive and negative feedback.
Remember to keep negative feedback factual (based on your direct
observations wherever possible) and non-judgmental, focusing on what the
individual can do to improve.

 Giving praise. Recognition for a job well done is a powerful motivator, which
helps keep your team engaged and performing well. You should aim to give a
mixture of formal and informal praise, which can be verbal (thanking your
team at a meeting) or written (an email or a card).

 Asking the right questions. Being able to ask appropriate questions is central
to effective performance discussions. Using a range of questioning techniques
(open and probing questions) will encourage your team members to open up,
and allow you to discuss performance issues in a constructive way.

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 Listening. For performance management processes to be effective, two-way
communication and understanding is essential. Employees need to be able to
voice their views and concerns with you, therefore the ability to listen and
focus on what your team members are saying will help you focus on their
needs.

 Identifying areas for development. To help your team develop, you need to
be able to find appropriate new challenges which will stretch their skills and
help them to grow. You should hold regular development discussions with
each team member to seek their input on possible development areas. It is
important to strike the right balance between broadening their horizons and
providing adequate support and guidance when it is needed.

 Recognizing learning and development opportunities. Employees often

become demotivated and disengaged by a lack of learning and development
opportunities. You should aim to discuss and agree upon a range of
development options with your team, which can be tailored to suit their needs.
Opportunities might include shadowing more experienced colleagues,
undertaking a new project or attending a formal training course.

 Setting performance objectives. A key aspect of the performance review

process is the establishment of clear, achievable objectives or performance
targets. You may find it helpful to use SMART objectives, which link
individual goals to your department’s goals and wider organizational
objectives.

 Demonstrating positive behaviors. As a manager, you should aim to

establish a positive ‘performance’ culture, where individuals take
responsibility for their own performance. Your team members will take their
cue from how you behave, so an awareness of the impact of your behavior on
others and an ability to identify and demonstrate positive behaviors is
essential.

 Problem Solving. Manager is not freed from the results. Thereby, whatever
the problems face in the process need to be solved. Getting the employees

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 views and solving the problems is easier to achieve goals. By this exercise
your authority power is not get weaken.

 Delegation of authority. Manager can delegate his authority and connect

them with responsibility. It helps to increase employee happiness.

 Communication. Manager should communicate ideas, Suggestions, advices

to individuals and groups correctly.

 Coaching. Manager takes an active role and interest of trainee. It involves

directing, motivating & rewarding behavior. Manager should be able to
transfer the correct and appropriate knowledge, skills, and technical abilities to
the employee.

 Counseling. Understanding employee feeling and stabilize their mental

condition and drive them to be productive.

So appraiser need those qualities to conduct performance appraisal process. But I this
case Nimal fail to conduct these program to get a correct results or in a correct way. In
the other words Nimal fail to conduct the performance evaluation of the workers and
that’s why all most all workers shows above average performance according to his
evaluation results.

According to this problem I think Nimal evaluated those employees as what he saw
and what he generally knows about the employees individually, with his experience
within the company or day to day communications. Sometimes I think personal bias,
halo effects, tendency also affected to this evaluation results. There is another
important fact affects to these results and that is Nimal’s is a helpful person and he
gained love from all staff when he working in other positions. So there is integrated
problem in mind, when the evaluating employees who loved him very much. Nimal
will have problem how I rate those people as poor, good, very good or excellent. If
that it is Nimal need to change that manners to perform those managerial activities
and he have to take hard decisions also.

Also I think he does not know what are those employee’s primary objectives and
goals. As I say before when a performance appraiser or manager should know two
fundamental prerequisites before conducting the performance appraisal process
according to the Herman Aguinis’s six steps process of performance management.
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Herman Aguinis’s six steps process of performance appraisal

01. Prerequisites
02. Performance Planning / Agreement
03. Performance Execution
04. Performance Assessment
05. Performance Review
06. Performance Renewal and Recontracting

Prerequisites
There are two fundamental prerequisites known by the manager before performance
management is implemented. Those are:

01. Knowledge of the organization direction – Vision, mission, strategic goals,

business plans.
02. Knowledge of the job – By job analysis, manager will get to know what is an
employee is supposed to do. Also it provides other than the tasks what
knowledge, skills and abilities need to perform the job.

So that’s why I’m telling Nimal need specialized knowledge to perform those kind of
activities. Without getting knowing about what employees are supposed to do then
what is going to be evaluate and this is also not an easy process to find employee’s
job details Nimal has to go through the job analysis.

As a promoted new people’s manager Nimal’s goals objectives should have been
changed. According to my way thinking Mr. Sie also done a big mistake here. Sie
should have been evaluate Nimal after giving him the managerial post to ensure that
he suit to post and he can survive with the new responsibilities or to clear idea about
training needs of Nimal. Sie does not evaluate Nimal then Sie gave him key
responsible area of human resource management to perform. That’s what the reason
to collapse all of those areas of the organization.

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In briefly according to my understanding I could figure out Nimal’s failure as follows:

01. Nimal does not have specialized knowledge to perform such responsible
managerial activity like performance evaluation.
02. Mr. Sie does not evaluated him after giving the responsible position or
managerial position to ensure that he can do the such activities or he can
perform that job well.
03. Nimal does not have specialized knowledge although Nimal also does not
have proper guidance or training to perform those activities.
04. Nimal fails to identify the operation staff job, and their goals, objective.
05. Nimal fails to collect prerequisite data to perform evaluation process.
06. Personal bias, tendency and halo effect affected to the Nimal’s decision.
07. Inner state of mind that affecting Nimal when he evaluating staff who loved
him very much as people’s person.

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3.2 To Have a clear idea of the entire performance management system

Mr. Sie have a responsibility to get performance management system back on track.
After those problems we can identify Nimal’s job failure within one of key result
areas of HR management. So one of main thing is to train or give him specialized
knowledge about such managerial or key HR activities that he should perform well in
the day to day his works.

To get back entire performance management system back on track and to have a clear
idea about entire performance management system we need to implement
performance management system and need to evaluate employees in proper manner
or methodology. After to refresh employees we need to conduct proper performance
review discussion.

Implementing proper Performance Management process according to Herman

Aguinis.

3.2.1 Performance Management process

Performance Performance
Prerequisites
Planning Execution

Performance Perfrormance Performacne

Renewal Review Assesment

Figure 1: Performance management process

01. Prerequisites
The prerequisites is the first step in the performance management process. There are
two fundamental prerequisites known by the manager before performance
management system is implemented. Those are;

I. Knowledge of the organization direction – Vision, Mission, strategic goals,

business plans.

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 II. Knowledge of the job – By the job analysis, manager will get to know what an
employee is supposed to do. Also it provides other than tasks what knowledge,
skills and abilities needed to perform the job.
02. Performance Planning

This is the second stage of the performance management process. The employer and
employee discuss and agree on what needs to be done and how it should be done. In
the other words agreeing upon results, behaviors and a development plan.

Results – what results to be achieved could be found from the Job description and key
accountabilities.

Behavior – this includes competencies such as communication, product knowledge,

thinking, innovation, technical knowledge etc.

Development Plan – in short plans to improve job holder’s performance.

03. Performance Execution

In the third stage execution of performance plan / agreement is focused. This stage is
twofold. The employee has to contribute as agreed upon as well as the employer. It
also called primary responsibility of the employee. The employee can contribute to
the process by showing;

Commitment to achieve goals, providing feedback of current performances &

obtaining feedback Solicit training and coaching, communication with supervisor
honestly and regularly, Engaging self-review, Prepare for performance review.

The employer (Supervisor) can contribute to the process by showing;

Monitoring of records and reports on daily basis or often and keeping a track,
Updating objective, Providing feedback, Providing resources, Providing training and
motivation.

04. Performance Assessment

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The supervisor and employee should assess the performance individually. Active
participation in both parties leads to higher productivity. Self-assessment provides an
actual picture to the employee. Also it helps to reduce employee being defensive at
the performance review and increase the satisfaction.

05. Performance Review

Performance review is the fifth stage in the performance management process.

Reviewing of the performance is necessary and should take place formally. Results
and behaviors are evaluated with the agreed standards. It is found that some fails,
some achieves and employee gets the feedback for the past performances.

06. Performance Renewal

This is the final stage in performance management process. It is important to renew

performance goals because many environmental factors are changing often. Ex.
Customer complaints, Technological changes and so on. This may lead to change the
organizational goals invariably lead to change the individual goals as well. By
providing new goals or recontarcting will help to develop new hopes and positives in
the employee mind.

After identifying the proper performance management process and also performance
evaluation is important part of the performance management. So we have to find
proper performance evaluation method suit for this company.

According to my studies and gained knowledge from the other sources I think suitable
evaluation method for this company is 360 degree appraisal method. I selected this
method because this method can reduce personal biasness and employee can get
reliable feedback from the top management also this will get all rounded evaluation.
Also there no only one appraiser, appraisee getting feedback from Internal / External
customers, Peers, Manager, Subordinate and also from himself.

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3.2.2 360 degree evaluation method

Manager

Peers Individual Customer

Direct
Reports

Figure 2: 360 degree evaluation

The 360 evaluation feedback method was first used in the 1940s. Analogous to the
multiple points on a compass, the 360 method provides each employee the
opportunity to receive performance feedback from his or her supervisor, peers, staff
members, co-workers and customers.

360-degree feedback or multi-source feedback is an appraisal or performance

assessment tool that incorporates feedback from all who observe and are affected by
the performance of a candidate.

360 degree respondents for an employee can be his/her peers, managers, subordinates,
team members, customers, suppliers/ vendors - anyone who comes into contact with
the employee and can provide valuable insights and information or feedback
regarding the “on-the-job” performance of the employee.

Self-assessment is an indispensable part of 360 degree appraisals and therefore 360

degree Performance appraisal have high employee involvement and also have the
strongest impact on behavior and performance. It provides a "360-degree review" of
the employees’ performance and is considered to be one of the most credible
performance appraisal methods.

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After evaluating the employees there is another important thing is need to be done that
is conducting performance review discussion.

3.2.3 Conducting performance review discussion

Whatever the outcome is, the appraiser needs to make use the opportunity to show
fairness, professionalism and develop positives in the mind of the appraisee. It needs
to follow some principles and ground arrangements such as prior reparation, whilst on
discussion and at the final stage of the discussion. Concerns on those will provide
better results than an ad-hoc discussion or meeting.

01. The appraiser’s preparation is the first thing. Study the job holder’s job
description, goals and set standards. This helps to compare appraisee’s
performance easily.
02. Give adequate notice (at least 7 days). Also remind appraisee that you expect
studying of job description, goals, identification of problems, analyzing and
solutions.
03. Notify the place and time and make it disturbance free.
04. Preparation of necessary documents and formats.
05. Encourage the appraisee to talk and give the opportunity express the ideas.
06. Discuss achievements first.
07. Discuss to the point straightly. Supported by reports on production, customer
complains / appraisals, punctuality, absenteeism, damage & wastes, discipline,
quality, efficiency etc.
08. Do not take personally, do not compare with another.
09. Agree on future activities, new plans, processors, results, standards,
measurements in order to move the employer employee forward.
10. End with positives.
11.

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4 Conclusion

The project has provided an enormous knowledge which is not limited to the
technologies used but also the aspects of different types of users since, at the testing
phase several improvements to the user interface was raised from the actual users.
Therefore it is possible to conclude that not only the knowledge and skills that is
obtained but also the practicality of implementing real world solution has also
experienced throughout the development of the case study.

The Case Study can be described as a result of knowledge gathered from all the
Books relevant, Internet Studies and courses throughout the programme.

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5 References

01. Abdn.ac.uk,. 'Performance Management Skills | Researcher Development |

The University Of Aberdeen'. N.p., 2015. Web. 12 Oct. 2015.
02. Performance Review and Counselling handout | Mr.Thilak Devendra
03. Performance management process handout | Mr.Thilak Devendra
04. Whatishumanresource.com,. 'What Is Human Resource ?'. N.p., 2015. Web.
13 Oct. 2015.

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