Explain the linkage of Performance Management System with four other HR systems

1.Recurring and selection (quality candidates):-Recruitment and Selection is an important operation in HRM, designed to
maximize employee strength in order to meet the employer's strategic goals and objectives. It is a process of sourcing,
screening, shortlisting and selecting the right candidates for the required vacant positions. 2.Human resource
planning(matching organization effectiveness):- is the continuous process of systematic planning ahead to achieve
optimum use of an organization's most valuable asset—quality employees. It ensures the best fit between employees
and jobs while avoiding manpower shortages or surpluses. 3.Mentoring and counselling(leadership skill,employee
empowerment,work life balance):-Mentoring is the process of sharing your knowledge and experience with an
employee.4.Reward management(talent identification,career and succession planning):-It exists in order to motivate
employees to work towards achieving strategic goals which are set by entities.It is not only concerned with pay and
employee benefits. It is equally concerned with non-financial rewards such as recognition, training, development and
increased job responsibility.

Explain the PMS cycle and the various stages it passes through (Four stages)

The first stage of this performance management cycle is ‘planning’, a phase which was traditionally carried out only once
each year. During this planning phase, employees are set SMART objectives, which contribute to achieving one or more of
the company’s goals.The planning phase also includes the formation of a personal development plan (what strengths and
skills the employee should develop to achieve their goals) and a review of the employee’s job requirements. The idea is
to ensure that the organisation’s goals and values feed into this planning phase, thereby ensuring that individual
performance is aligned with the overall strategy of the organisation.

The next stages are ‘Act’ and ‘Track’, which occur throughout the year. Employees aim to achieve their objectives and
carry out their role effectively, while their managers coach their employees, track progress, and provide feedback.

Companies have placed a large emphasis on the final stage, ‘Review’, often combining it with employee performance
ratings. The ‘Review’ phase traditionally encompasses an annual performance review, a meeting where employee and
manager discuss and evaluate goal progression & completion, performance issues, training & development and
opportunities for advancement.

Explain any three challenges faced when Bell Curve is used in the PMS process

1.It can develop a sense of insecurity amongst managers who fear attrition from employees.2 Performance appraisals
should be conducted on an individual’s performance, even if the work done is a team work. If not, this can lead to
de-motivation.3.Bell Curves can produce Inaccurate and Unfair Assessments. When teams exceed performance goals,
performance cannot be accurately measured on the bell curve. The bell curve forces individuals to rank low on the scale,
even though they have surpassed expectations.

Normalization :-Normalization is the process of review of the ratings of all ratees as a whole to ensure the ratings are as
per the recommended norms. The percentages are generally decided by HR in consultation with top management.
As a general guideline, normalized rating of an employee would be arrived at taking into account the Difficulty of
Assignment and importance of KRA attached to the individuals. This would be a rating relative to performance of other
employees in the group considering the same factors.Normalization is done :1.To remove any personal biases from the
appraisal scores2.To rectify any judgmental errors.

Fringe Benefits :- are the additional benefits & services paid to employees for their contribution, which cannot be
measured by the mere estimation of wages and salaries paid to them. The characteristics of fringe benefits are:

1.Are distinctly additional to the regular wages paid to the workers. As such, they are not provided as a substitute for
wages or salaries of the employees.2.Meant primarily to be of advantage to the employees.3.Only those benefits fall
within the purview of fringe benefits which are or can be expressed in cash terms.

Variable Pay :-compensation linked to performance accomplishments (bonus, incentive, commissions to sales personnel,
ex gratia).also known as incentive pay, refers to pay earned beyond an employee's normal weekly, monthly or annual
salary. Not a guarantee, it is paid out only if an individual or team achieves a goal. Typically these goals relate to profit,
sales growth, productivity or customer service improvement.
Basic pay :-basic compensation which an employee gets.Base pay is the initial rate of compensation an employee receives
in exchange for services. It excludes extra lump sum compensation such as bonuses or overtime pay, as well as benefits
and raises. An employee's base pay can be expressed as an hourly rate or as a weekly, monthly or annual salary.

Minimum Wages:-The minimum wage may be defined as the lowest wage necessary to maintain a worker and his family
at the minimum level of subsistence, which includes food, clothing and shelter. When the government fixes minimum
wage in a particular trade, the main objective is not to control or determine wages in general but to prevent the
employment of workers at a wage below an amount necessary to maintain the worker at the minimum level of
subsistence. Minimum wage in a country is fixed by the government in consultation with business organizations and trade
unions.

PMS :- is the process that a company uses to appraise and recognize its personnel. A company with a properly executed
performance management system can improve employee morale, increase productivity and retain its top workers.There
are several components of an effective PMS process:-1.Planning2.Monitoring and Evaluating Employee
Performance3.Recognition4.Employee development.

Cascading Goals :-Cascading goals is the process of translating goals from one level of the organization to the next to
ensure alignment between the organization’s strategy and individual employees’ activities and goals.It helps employees
and managers define expectations, develop goals, and align employee goals with the broader organizational objectives. It
provides an overview of each individual’s goals and how it contributes the overall business strategy – increasing
transparency, making expectations clear, and engaging the workforce.

Compensation Planning:-A compensation plan refers to all the components of a compensation package (wages, salaries,
and benefits), the manner in which it will be paid, and for what purpose employees receive bonuses, salary increases, and
incentives.It enables organizations to easily manage compensation plans with configurable, intuitive, and accurate
workflows – eliminating manual processes, reducing paperwork, and saving time and administrative costs.Both for
employee and employer planning is done.

What should goals look like?

1.Goals should be, at a minimum, SMART. SMART is an acronym that stands for specific, measurable, attainable, relevant,
and timely. We’ll look later at ways to enrich SMART goals and customize this approach for an organization. 2.Goals
should be manageable in number. Five or six meaningful stretch goals are sufficient to challenge employees and keep
them engaged in their contribution to the business. Adding more goals is likely to have a negative impact on productivity
and derail progress toward achieving any of them. 3.Goals must be reasonable. The challenge of a stretch goal can be
invigorating; an impossible target will certainly be frustrating and can be demoralizing. 4.Goals should address both
business results and personal development.

Name the stakeholders in any standard appraisal system.

360-degree feedback requires the employer to survey co-workers, supervisors, subordinates and even customers about
each employee actions. The multiple feedback channels offer objective perspectives of behavioral traits and actions.
"From [360-degree] feedback, the worker is able to set goals for self-development, which will advance their career and
benefit the organization.

Explain the different perspectives of balanced score card.

1.Financial perspective as timely and accurate funding data will always be a priority,a.Financial metrics are
monitored,b.Capability to justify costs,c.Financial responsibilities have to be attached with every role.

2.Customer perspective due to the increasing realization of the importance of customer focus and customer
satisfaction.It Captures all that needs to be done for customer retention & satisfaction

3.Business process / Internal process perspective to show the managers how well their business is running and whether
its products and services conform to customer requirements.--Product and service quality, efficiency and productivity,
conformance with standards, and cycle times can be measured
4.Learning and growth perspective --- both individual and corporate self-improvement to provide the necessary talent
and human capital pool to ensure the future of the organization. It can be measured through the quality and conduct of

- Employee training and development - Mentoring programs - Succession planning - Knowledge creation and sharing
State two reasons why normalization should be done in PMS.
Normalization is done : 1.To remove any personal biases from the appraisal scores,2.To rectify any judgmental errors.
--Managers have a tendency to rate differently – some are naturally lenient while some fall on the opposite end of the
spectrum. However, more often than not, it is the employees reporting to them that experience the brunt of these
variations.

Forms of Industrial Disputes.- Strikes: a spontaneous and concerted withdrawal of labour from production temporarily –
collective stoppage of work by group of workers – pressurise employers to accept certain demands

Are of several types:[1]Sympathetic strike: to show sympathy with workers in other industries[2]General strike: strike by
all or most of the unions in an industry or region.[3]Unofficial strike: strike undertaken without consent of the unions

[4]Sectional strike: Refusal of a section of a given class of workers to perform their normal duties.[5]Bumper strike: It is a
strike when the unions plan to paralyze the industry, firm by firm, the order being chosen by the union – such strikes are
supported by the contributions of those who are still at work[6]. Sit down strike (also called stay-in, tool down, pen down
strike) workers cease to perform their duties but do not leave the place of work7. Slow down strike: ‘go-slow’ tactic –
workers do not stop working but put brakes to the normal way of doing things8. Lightening strike: Out of provocation,
workers may go on strike without notice or at very short notice – element of surprise in such wildcat strikes9. Hunger
strike: To gain sympathy from the public and get noticed by the employer, workers may decide to forego food for a
specified period – small batches of workers may go on relay hunger strike in a sequential order – such non-violent strikes
bring moral pressure on employers.Lockouts: counterpart of strike – employer close down factory till workers agree to
resume work on conditions laid down by employer – closing of a place of employment – moral pressure on workers to
agree to employer’s conditions or face closure

Gherao: to surround – prevent management to enter office – can happen outside the factory premises – create problems
of law and order – inflict physical duress on employer

Picketing and Boycott: carry/display signs, banners, placards – prevent others from entering the work place – persuade
others to join the strike