UNIT V evaluation influence the decisions regarding the design and execution of performance

evaluation technique. For instance, a particular performance evaluation technique suitable for
PERFORMANCE EVALUATION AND CONTROL determining training needs of employees may not be ideal for deciding the pay scales of
Performance evaluation – Feedback - The control process – Importance – Methods – grievances employees. However, a comprehensive evaluation system can overcome this problem to a great
– Causes – Redressal methods. extent. A properly designed evaluation tool can find a use in every stage of the human resource
management process. Obviously, the information obtained through performance evaluation can
Performance Evaluation An Overview help the HR managers in several ways. It can be used to convert strategic goals of the
Although performance evaluation is basically a procedure used for ascertaining, examining and organization into the employees’ goals, to devise or revise its HR plans, to revisit the
recording information about the relative worth of the members of an organization, it has been employees’ career plans, and to enhance individual and organizational performance. The
defined differently by various authors. following are some of the HR operations where the results of performance evaluation are
Performance Evaluation definition widely utilized:
Performance evaluation is a formal system of review and evaluation of individual or team task Human Resource (HR) Planning
performance.” —R. Wayne Mondy HR planning involves forecasting and determining the manpower requirements of an
“Performance appraisal is a systematic, periodic and impartial rating of an employee’s organization to meet its strategic goals. With the help of a performance evaluation, the
excellence in matters pertaining to his present job and his potential for a better job.” —Edwin organization can assess its available manpower effectively and plan its future HR programmes
B. Flippo based on the anticipated labour requirements. Through performance appraisal, it can also plan
“Performance evaluation means evaluating an employee’s current and/or past performance and prepare a profile of its HR strengths and weaknesses to support its strategic missions and
relative to his or her performance standards.” —Gary Dessle goals.
Recruitment and Selection
Objectives of Performance Evaluation The purpose of any selection tool is to predict the likely performance of candidates
Every organization practices some form of performance evaluation to achieve the pre- when offered jobs. The scores from the various selection devices administered to candidates at
specified objectives. The common objectives of performance evaluation are: the time of selection are usually correlated at a later stage with their actual job performance to
Identify the Performance Gap determine the efficacy and validity of the selection tools. In fact, performance evaluation offers
Performance evaluation helps in determining the gap between the actual performance of the a way for validating both internal (promotions and transfers) and external (employing new
employee and the performance expected or desired by the organization. people from outside sources) selection programmes. Performance evaluation ratings are good
Provide the Basis for Promotion, Transfer and Termination at predicting the performance of candidates. However, when not enough attention is given to
Performance evaluation facilitates the process of identifying in an objective manner the the appropriate evaluation of the employees’ performance, the time and money spent on the
employees who deserve promotions, transfers or even terminations. designing and development of selection tools are simply wasted.
Aid in Designing Training and Development Programmes Employee Training and Development
The results of performance evaluation can be used to identify the specific skills required to be Performance evaluation can easily identify a worker’s specific needs for training. This
developed for each employee and thus can help in developing the training and development is because shortages in performance are usually the direct outcome of the absence of adequate
programmes. knowledge or skills on the part of the workforce. In fact, performance evaluation results can
Assist in Wage and Salary Administration be used to decide whether an employee or group of employees will require additional training
Performance evaluation helps in determining compensation packages like wage fixation, and development. Inadequacies in the performance of the employees can be identified through
rewards allocation, and incentives for the employees on a scientific basis. evaluation and training programmes formulated accordingly so that employees can build on
Help in Increasing Employee Effectiveness their strengths even while removing their deficiencies.
It facilitates the organization in improving the effectiveness of its employees by helping them Compensation Decisions
identify their strengths and eliminating their weaknesses. Performance evaluation provides reliable information for determining the pay scale of
Improve Interpersonal Relations the employees. In fact, compensation decisions, to varying degrees, are based on the results of
It helps in building a cordial industrial relationship by encouraging good contact between the an employee’s performance appraisal. Performance evaluation helps the organization to reward
management and the labour. It acts a mechanism for communication between the superiors behaviour that contributes directly to the accomplishment of the organizational objectives.
and the employees. Thus, it is essential to design and execute a dependable performance evaluation system to
Identify Employees’ Grievances reward the most efficient workers and groups appropriately. A recent study showed that two
It helps in identifying and recognizing the grievances of the employees at the earliest and thirds of the companies use performance reviews to determine pay increases, and almost half
thereby removing factors responsible for such grievances. use them to calculate bonuses.
Uses of Performance Evaluation Career Planning and Development
An organization may have several reasons to appraise its employees. For instance, HR Performance evaluation is useful in determining the career plans of employees. Any
managers require performance evaluation to provide feedback, support the performance organization would like to promote only the best qualified employees to the higher levels. In
enhancement drive, make valid decisions, justify terminations, recognize training and this context, performance evaluation data is vital in evaluating an employee’s strengths and
development needs, and defend any personnel decisions. In fact, the given uses of performance weaknesses and also in deciding the employee’s potential. An organization may decide about
transfers, lay-offs, and so on, based on the results of the performance evaluation. Finally, the The Process of Performance Evaluation
HR professional can help employees in developing and implementing their career plans on the The entire ethos of performance evaluation should start at the top and be built into the
basis of performance evaluation. strategy of the firm. It should be embodied in the values of the company. The performance
Grievance and Discipline Issues evaluation process should strengthen the working relationship between the managers and their
Performance evaluation information is also used frequently for decisions relating to promotion, employees. It should also contribute to the long-term success of the organization. The entire
demotion, termination, layoff and transfer. Performance evaluation results can be used to process should be a rewarding and satisfying experience not only for the organization but also
initiate the necessary action against incompetent employees faring poorly in the performance for the individual employees. An ideal performance evaluation process should provide the basis
evaluation, provided the process of evaluation is flawless and standard. Performance evaluation for managing the business of today and for developing it in the future. Figure 10.1 illustrates
data can also be used as an important source of documentation for formal grievances that are the steps involved in a performance evaluation process.
filed in connection with employee disciplinary actions. Setting the Performance Evaluation Goals
Feedback The first step in the process of performance evaluation is setting specific goals. These goals
Employees are usually interested in knowing the results of the performance evaluation. This is are usually set jointly by both the superiors and the employees. The goal-setting process
because they may be curious to know how well they are performing at present and how much
improvement is required to attain the desired performance. This feedback enables them to have
a clear idea about their standing in the organization as related to performance rewards like
promotion, or merit pay. An objective and timely feedback can benefit the employees in terms
of motivation and satisfaction; it can benefit the management in terms of increased cooperation,
productivity and support from the employees.
Determining the Criteria for Performance Evaluation
The determination of the criteria for performance evaluation often involves the tricky question
of what aspects of employees’ performance are to be evaluated. The note of caution here is that
the criteria selected should be purely job-related and well within the control of the workers.
Also, they should be clearly defined and have no ambiguity. As far as possible, performance
evaluation that is based on a single criterion is to be avoided. The job analysis report can help
in identifying the criteria for each job. Normally, performance evaluation criteria involve
individual traits, behavioural characteristics, goal accomplishment, scope for improvement,
and competencies. We shall now discuss these criteria briefly.
Individual Traits
The employees’ attributes like attitude, outlook and initiative can be the basis for the
performance appraisal. However, it is to be ensured that the subjective elements in these traits
are controlled carefully and defined properly, otherwise, they can cause inaccuracy in ensures that every employee knows what is expected of him and how the achievement of
evaluation. For instance, subjective elements like leadership qualities, appearance, personal the goal contributes to the overall success. Organizations should select only those goals that
conduct, attitude towards life, ethical practice, imagination, mental alertness, and reliability are most important and realistically achievable. Stephen Williams specified the following
can cause bias and prejudice in evaluation. three types of objectives for a performance evaluation programme:
Behavioural Characteristics (i) Key result areas: The objectives which contribute to the achievement of the business
Behaviour is the aggregate of the responses, reactions or movements made by a person in any goals of the unit.
situation. Although the individual’s response on a particular occasion is difficult to determine, (ii) Performance standards: The objectives which contribute to the improvement in the
organizations may evaluate the standard task-related behaviour or competencies. For instance, performance of the individual job.
leadership styles, teamwork, commitment, and customer care are some of the desired (iii) Performance development: The objectives which contribute to the development in
behaviours normally included as criteria to evaluate the employees. Organizations tend to the performance of the individual.
recognize and reward those behaviours that can contribute to the overall growth of the Establishing the Performance Criteria
organization. The second step in the process is deciding the criteria for evaluation. These criteria are
Goal Accomplishment the basis for comparison. It is actually a reference point in terms of which other things can be
The successful accomplishment of goals can become a criterion for evaluating the performance evaluated. An organization has to decide what characteristics of the employees are to be
of employees. The outcome of those goals that contribute to the success of the organization can evaluated. The criteria should be job-related, specific, and within the control of the employees.
be an ideal appraisal criterion. They may be financial goals like profit, cash flow or marketing They may include, among others, the traits, behaviours, cost-related outcomes, competencies,
goals like the desired sales, achieving the target market share or standing in the market, goal achievement, and scope for further improvement. There should be joint discussions
maintaining the time schedule, and total quality management. However, it is imperative that between the superiors and the employees regarding criteria formulation. Once the performance
the management involve the employees in the process of fixing goals for evaluation. criteria are established, these should be communicated to all those concerned.
Actual Evaluation of Performance expected for each trait. These traits are usually job-related factors like the quality and quantity
At this stage, the employee’s performance is evaluated actually on the basis of of job and personal factors such as reliability, interpersonal skills, and adaptability. The scale
predetermined criteria. The evaluator and the employee review the latter’s job performance may have various scores representing outstanding, average, improvement required, etc. The
jointly and appraise it against established performance standards. This appraisal assists in supervisor evaluates an employee by circling in the evaluation form a scale of each factor that
determining to what extent employees have met these standards, ascertaining the reasons for best describes his or her performance. Finally, the assigned values are summed up for each
any deficiencies and preparing a plan to correct the problems. trait. Organizations are now allotting a space in the appraisal form for the evaluator to comment
Post-evaluation Interview with Employees (say, a written justification) on the particular rating given for each factor. The aim of this
As a final step in the formal evaluation process, the superior can have a meeting with exercise is to focus on rectifying the deficiencies and discourage a subjective and hasty
the appraised employees to discuss the results of the evaluation, once the appraisal is over. At evaluation. Though this method is ideal for evaluating an employee, the limitation of this
this stage, the evaluator can ascertain from the employees the reasons for their high or low level method is the possibility of the existence of the evaluator’s bias and prejudice.
of achievement against pre-determined objectives. Further, the evaluator can help the The Ranking Method
employees consolidate their strengths and improve their relative weaknesses. At this meeting, This is one of the oldest and easiest methods of evaluating the employees. Each
goals can also be set for the next evaluation period and the process goes on. employee is ranked by the evaluator on the basis of their relative worth to the organization, as
Performance Evaluation Methods compared to other employees. Each evaluated employee secures a place in a ranking order
The decision regarding the selection of a particular type of evaluation usually involves ranging from topmost to the worst for selected characteristics. In brief, the best employee in
answering questions like what aspects are to be evaluated and how they should be evaluated. the list is ranked the highest, and the poorest one is at the bottom for the same traits. Though
Nevertheless, the purpose of evaluation is the major guiding factor for such decisions. For this method enjoys the benefit of ease of administration and explanation, it suffers from several
instance, traditional methods like rating scales, paired comparisons and other similar methods defects. For instance, it provides scope for the evaluator’s bias and prejudice. This could be
are appropriate when the purpose of evaluation is identifying suitable employees for due to halo and recency effects. (Both of these have been discussed later in the chapter.)
promotions and compensation, whereas collaborative methods like evaluation by employees, Besides, it is not very suitable for evaluation involving a large number of persons. Nor can this
peers, customers and self-evaluation are more suitable for developing the employees. Thus, method be ideal when the employees have dissimilar behavioural qualities.
managers have to carefully choose from the number of evaluation options available to them The Paired Comparison Method
(Figure 10.2 lists the methods). We shall now see the important performance evaluation This method is only a variant of the ranking method but its ranking system is generally
methods available to an organization. superior. In this method, two employees of a group are considered as a unit or pair. On the
basis of predetermined criteria such as total performance, one employee is compared with
another. This process of comparing a pair of employees continues till all the employees have
been compared. Finally, the employee with the greatest number of favourable responses in
inter-person comparison gets the highest ranking. This method can be illustrated better with a
numerical example. Suppose six employees in a group are to be evaluated under the paired
comparison method. The maximum number of pairs can be calculated with the help of the
formula

This maximum number of pairs indicates the maximum possible alternative comparisons. A
worker who emerges better than others in as many comparisons yields the best score. However,
the major defect of this method is that it may not be appropriate when a large number of
employees are to be compared in a short span of time.
The Forced Distribution Method
In this method, the evaluator is forced to assign the employees to various performance
categories like excellent, good, average, and poor, each with a predetermined percentage. For
instance, the evaluator must have to distribute 10 per cent of the employees to the excellent
performer category, another 10 per cent to the poor performer category, and the remaining to
in-between performer categories. Forced distribution is emerging as a popular method as more
organizations are beginning to use it due to an increased focus on pay for performance. The
The Rating Scales Method merit of this method is that it forces the weak managers to act against the poor performers, who
In this method of performance evaluation, employees are rated according to pre- would otherwise escape corrective action. However, this method is unpopular in many
specified factors. This method is simple and clear-cut and it allows prompt evaluation of several organizations as it usually keeps the employees in constant fear of their future. For instance, in
employees at a time. In this method, evaluators record their assessments of the performance of a survey of HR professionals, 44 per cent of the respondents felt that the forced ranking system
the employees on a scale. A scale actually lists a group of traits and a range of performance prevalent in their organization damaged the morale of the employees and generated a mistrust
of leadership. This method can also cause potential damage to employee loyalty and The Work Standard Method
cooperation as the employees may suspect it to be an exercise to get rid of them. In this method, the evaluator compares the performance of the employees against the
The Forced Choice Method standards established in the form of expected output. The standard output is usually established
In this method, the evaluator has to evaluate the employees with the help of a series of on the basis of the normal performance of an average employee. F. W. Taylor’s work study,
statements (or list of traits). The series may contain both favourable and unfavourable including time study and work sampling, can be used to determine the work standard. The main
statements. Each statement would carry weights or scores, which may not be known to the advantage of this method is that the there is very little scope for the evaluator’s bias as the
evaluator. Now, the evaluator has to choose the most appropriate statement, which best standards are fixed scientifically and objectively. Although this method can be applied to
represents the individual being evaluated. This method objectively evaluates an employee as almost all types of jobs, manufacturing jobs usually get greater attention.
an evaluator will not know the scores of each statement. Further, there is an in-built mechanism The Checklist Method
available in this method that compels the evaluator to ascertain both negative and positive traits In this method, a checklist containing a series of statements on the traits of the
of the employees. The limitation of this method is that the preparation of forced-choice employees is prepared and presented to the evaluator, usually the immediate supervisor. The
instruments is usually a time-consuming process. checklist has both positive and negative statements. Each statement is to be answered in the
The Critical Incident Method “Yes” or “No” format. It carries a score based on its importance to the overall evaluation. Once
In this method, the supervisor is required to keep a written record of positive and the evaluator completes the evaluation by ticking the appropriate columns that best represent
negative work-related actions of the employees. For instance, when a critical incident relating the employee, the checklist is sent to the HR department for further processing like assigning
to the behaviour of the employee affects the unit’s or the department’s functioning, positively predetermined scores, and totalling such scores. The main advantage of this method is that it is
or negatively, the superior should record it. During the evaluation, these records can a simple, objective, time-saving and cost effective evaluation tool. Similarly, it does not require
supplement other data effectively in evaluating the employee’s performance. The major any specialized training on the part of the evaluator. The limitations of this method are many.
advantage of this method is that it provides live and real examples of good and bad performance For instance, there is a scope for the evaluator’s bias in this method. Similarly, ambiguous
of an employee. It helps the employees in identifying the fundamental areas in which they are statements in the checklist can cause confusion and are liable to misinterpretation. Besides, the
strong or weak. It also points out specifically what is to be done by an employee in order to focus of the evaluation is mostly on personality factors rather than on performance factors.
eliminate deficiency in his performance. Further, this method ensures that evaluation is a Further, it is normally difficult in the checklist method to assemble, analyse and weigh a
continuous process and not a one-time affair in a year. Finally, it facilitates better counselling number of statements about the employees’ traits and contributions.
of the employees by their superiors. However, the limitation of this method is that the superiors The Field Review Method
may find it difficult to record the incidents involving their employees on a regular basis. In this method, the evaluation of an employee is done by someone other than his own
The Essay Method superiors. The purpose of this is to avoid any possibility of the evaluator’s bias and prejudice.
In this method, the evaluator writes a short description of an employee’s performance. Normally, evaluation is done by the HR people, who scrutinize the records of those employees
The evaluator has to provide a narrative of the employee’s strengths, weaknesses and who are being evaluated and conduct interviews with them and their superiors. This method
potentials. This method focuses less on the employees’ regular day-to-day performance and facilitates inter-person comparison of the managerial personnel in different places. It is also
more on their extreme behaviours at work. However, the efficiency of this method depends appropriate for choosing employees for future assignments. The major defect of this method is
greatly on the evaluator’s writing skills and objectivity. The merit of this method is its that it does not allow continuous evaluation of employees and that there is only an all-at-once
simplicity as it does not require any complex preparation or training. It has, therefore, found approach to the process of evaluation. Besides, the superiors may view this as interference in
wide acceptance as a good performance evaluation technique. However, the defect of this their work.
method is that it provides scope for manipulation by the evaluator if he has excellent writing The Confidential Report (CR)
skills. For instance, the evaluator can project a mediocre worker as an excellent performer Confidential report is a kind of evaluation practised predominantly in government and
through his sheer writing skills. public sector organizations. It is called this because the evaluation records are kept strictly
The Cost–benefit Method confidential and are accessible only to the pertinent officials. The evaluation report is prepared
The essence of this method is that it focuses on the financial returns the organization by the immediate superiors, usually on the basis of the continuous observation of employees
obtains through an employee. In this method, the management evaluates the cost of retaining over a period of time, say, in a year. The confidential report follows a predetermined format
an employee in the organization and also the benefits accruing to it through that employee. for gathering data relating to employee’s skills, ability, knowledge, initiative, leadership skills,
Finally, a cost–benefit comparison is made as part of performance evaluation to determine the attitude, integrity, scope for improvement, aptitude for learning, area of concern, and
real contribution of that employee to the organization. The following factors provide essential weaknesses. The report helps in determining the promotion, transfers and financial incentives
guidelines for evaluating the performance: of employees. The merit of this method is that it permits the continuous evaluation of
1. Value of goods or services produced by the employee employees by their superiors and also facilitates better control over them. The disadvantage is
2. Quality of such goods or services produced that there is a risk of the evaluator’s bias and prejudice.
3. Indirect cost associated with goods or services produced The Result-based Evaluation System
4. Abnormal loss arising out of accidents, spoilage, wastages, and damage to machines This is a variation of the Management by Objectives or the MBO model (explained in
5. Appearance, manners, and sociability skills of the employee the later part of this chapter). Under the result-based system, the superior and the employees
6. The cost of supervision needed for the present employee performance work together on setting goals for the subsequent evaluation periods. On the basis of consensus,
the employees agree to achieve the goals set for them. For instance, they may agree to bring may include senior managers, supervisors, employees, peers, team members, internal or
down the cost of production by, say, 5 per cent through productivity enhancement and external customers and even the employees themselves. The 360-degree feedback is also
reduction in wastages. Now, let us look at the some other methods that are a combination of differently described as a multi-source assessment, multi-perspective rating, multi-rator
the methods we just discussed. feedback or full-circle feedback as this method collects evaluation inputs from multiple levels
The Behaviourally Anchored Rating Scales (BARS) Method both within and outside the organization. In fact, P. Ward defines the 360-degree feedback as
The Behaviourally Anchored Rating Scales (BARS) method is a combination of the “the systematic collection and feedback of performance data on an individual or group derived
positive features of several other methods like critical incident, essay method and rating scales. from a number of the stakeholders on their performance.” The main purpose of the 360-degree
In this method, the different performance levels of employees are shown by the side of the feedback method is to ensure a rather objective and comprehensive evaluation of a person’s
scale, with each level described in terms of specific behavioural example, either good or bad performance. Critical information about performance in a 360-degree feedback process is
performance. This method specifies the various dimensions to be rated in behavioural terms normally gathered about the employees from their superiors to whom they report, their peers
and makes use of critical incidents to explain the various levels of performance. It helps the or coworkers (who work as their team members or equal cadres in other departments), their
evaluators with a uniform frame of reference for evaluating the employees. A model BARS for external and/or internal customers, and also from self-evaluation reports of the appraised
judging the specific competency of an employee is presented in Table 10.1. employees. Figure 10.3 shows the various evaluators of an employee’s performance.
The following steps have been suggested to develop BARS: 33 Uses of the 360-degree Feedback Method
1. Developing critical incidents: Identifying the persons having the knowledge of the job ( Organizations generally use the 360- degree feedback to make evaluations available for
job holders and/or supervisors) in order to know from them the specific illustrations (critical traditional uses. However, of late, this feedback has been utilized even for non-conventional
incidents) of effective and ineffective performance. purposes like professional development, succession planning, and performance management.
2. Formulating performance dimensions: Asking these persons (job holders and/or • The organization can use the 360-degree feedback report as a critical input for determining
supervisors) to cluster the critical incidents into a smaller set (of 5 to 10) of performance the remuneration and other incentives of the employees.
dimensions, and then defining each dimension, such as “skill in human relations”. • It can act as an effective tool to determine the nature and type of training and development
3. Reassigning the incidents: Another group of people who also know the job shall then programmes required for the employees.
reallocate the original incidents. They get the cluster definitions and the critical incidents and
must reassign each incident to the cluster whom they think it fits best. When some percentage
(say, 50 per cent to 80 per cent) of the second group assigns the same cluster to a critical
incident as did the first group, that critical incident is to be retained.
4. Rating the incidents : This second group should then rate the behaviour described by the
incident as to how effectively or ineffectively it represents the performance on the dimension
( 7- to 9-point scales are typical).
5. Evolving a final instrument: Finally, six or seven of the incidents are chosen as the
behavioural anchors of the dimension.
The merits of this method are:
 The BARS method enjoys better trustworthiness and accuracy since it is devised only
by those who have complete knowledge of the job.
 It offers superior and impartial evaluation of the employees as compared to other
methods.
 It can have better acceptance as the employees are usually involved in its development.
 The inclusion of critical incidents for the evaluation of performance makes it easier to
clarify the doubts of the employees about the rating procedure.
 The evaluations based on this method seem to be relatively consistent and reliable, as
different rators’ evaluations of the same person tend to be similar. Feedback
Further, among all the evaluation techniques, the BARS method is perhaps the most
highly defensible in court because it is based on actual observable job behaviours. The defects
of this method are that each job will require separate BARS, which make the whole process a 1 Performance Feedback:
costly affair. It is also a time-consuming process as different groups of persons are to be
involved in developing the performance dimensions. The other popular method is the 360- Most employees want feedback about their performance.Performance feedback is the ongoing
degree feedback method. process between employee and the manager where information is exchanged concerning the
The 360-degree Feedback Method performance expected and the performance exhibited. Effective performance feedback skills
The 360-degree feedback method is gaining popularity as a comprehensive technique are extremely important for managers. Employees need to be able to constructive feedback
to evaluate the performance of employees. The uniqueness of this method is that all those who
regarding both positive and negative aspects of their performance.
interact with an employee in any capacity will prepare an evaluation report on him, and this
 usually includes a tolerance range that defines acceptable deviation. Standards can be set not
2 Features of Performance Feedback: only for final output but also for intermediate stages of production output.
Measure performance : measurement must be made at predetermined times.
It is specific rather than general.
It is focused on behavior rather than on the person. Compare actual performance with the standard: if actual performance results are within
It takes into account the needs of the receiver of the feedback. the desired tolerance range. The measurement process stop here.
It involves sharing of Information rather than giving advice.
3 Types of Performance Feedback: Take corrective action: if actual results fall outside the desired tolerance range action must
be taken to correct the deviation, the following questions must be answered:
Formal feedback
1. Is the deviation only a chance fluctuation?
Informal Feedback
Positive Feedback 2. Are the process being carried out incorrectly?
Negative Feedback 3. Are the process appropriate to the achievement of the desired standard? Action must be
taken will not only correct the deviation but also prevent it is happening again.
4 Process of Performance Feedback:
4. Who is the best person to take corrective action?
Scheduling performance feedback Measuring performance
Preparing for a feedback session
Conducting the Feedback session The end result of activity. Which measures to select assess performance depends on the
organizational unit to be appraised and the objective to be achieved. The objectives that were
THE EVALUATION AND CONTROL PROCESS established earlier in the strategy formulation part of strategic management process (dealing
with profitability, market share, and cost reduction, among others) should certainly be used to
Ensure that a company is achieving what it set out to accomplish. It compares performance measure corporate performance once the strategies have been implemented.
with desired result and provides the feedback necessary for management to evaluate results and
take corrective action, as needed. Types of control
There are three types of control
1. Feedback Control: This process involves collecting information about a finished task,
assessing that information and improvising the same type of tasks in the future.
2. Concurrent control: It is also called real-time control. It checks any problem and examines
it to take action before any loss is incurred.
Example: control chart.
3. Predictive/ feedforward control: This type of control helps to foresee problem ahead of
occurrence. Therefore, action can be taken before such a circumstance arises.

Grievance Handling: Definition, Features Causes, and Effects

Introduction and Definition of Grievance:
A grievance is any dissatisfaction or feeling of injustice having connection with one’s
Determine what to measure : Top managers and operational managers need to specify employment situation which is brought to the attention of management. Speaking broadly, a
what implementation process and results must be capable of being measured in a reasonably grievance is any dissatisfaction that adversely affects organizational relations and productivity.
objective and consistent manner. The focus should be on the most significant element in a To understand what a grievance is, it is necessary to distinguish between dissatisfaction,
process the ones that account for highest proportion of expense or the greatest number of complaint, and grievance.
problems. Measurement must be found for all important areas, regardless of difficulty. 1. Dissatisfaction is anything that disturbs an employee, whether or not the unrest is expressed
in words.
Establish standards of performance: Standards used to performance are detailed expressions 2. Complaint is a spoken or written dissatisfaction brought to the attention of the supervisor or
of strategic objectives they are measure of acceptable performance results. Each standard the shop steward.
3. Grievance is a complaint that has been formally presented to a management representative The effects are the following:
or to a union official. 1. On the production:
According to Michael Jucious, ‘grievance is any discontent or dissatisfaction whether a. Low quality of production
expressed or not, whether valid or not, arising out of anything connected with the company b. Low productivity
which an employee thinks, believes or even feels to be unfair, unjust or inequitable’.In short, c. Increase in the wastage of material, spoilage/leakage of machinery
grievance is a state of dissatisfaction, expressed or unexpressed, written or unwritten, justified d. Increase in the cost of production per unit
or unjustified, having connection with employment situation. 2. On the employees:
Features of Grievance: a. Increase in the rate of absenteeism and turnover
1. A grievance refers to any form of discontent or dissatisfaction with any aspect of the b. Reduction in the level of commitment, sincerity and punctuality
organization. c. Increase in the incidence of accidents
2. The dissatisfaction must arise out of employment and not due to personal or family problems. d. Reduction in the level of employee morale.
3. The discontent can arise out of real or imaginary reasons. When employees feel that injustice 3. On the managers:
has been done to them, they have a grievance. The reason for such a feeling may be valid or a. Strained superior-subordinate relations.
invalid, legitimate or irrational, justifiable or ridiculous. b. Increase in the degree of supervision and control.
4. The discontent may be voiced or unvoiced, but it must find expression in some form. c. Increase in indiscipline cases
However, discontent per se is not a grievance. Initially, the employee may complain orally or d. Increase in unrest and thereby machinery to maintain industrial peace
in writing. If this is not looked into promptly, the employee feels a sense of lack of justice. Need for a Formal Procedure to Handle Grievances:
Now, the discontent grows and takes the shape of a grievance. A grievance handling system serves as an outlet for employee frustrations, discontents, and
5. Broadly speaking, thus, a grievance is traceable to be perceived as non-fulfillment of one’s gripes like a pressure release value on a steam boiler. Employees do not have to keep their
expectations from the organization. frustrations bottled up until eventually discontent causes explosion.
Causes of Grievances: The existence of an effective grievance procedure reduces the need of arbitrary action by
Grievances may occur due to a number of reasons: supervisors because supervisors know that the employees are able to protect such behavior and
1. Economic: make protests to be heard by higher management. The very fact that employees have a right to
Employees may demand for individual wage adjustments. They may feel that they are paid less be heard and are actually heard helps to improve morale. In view of all these, every organization
when compared to others. For example, late bonus, payments, adjustments to overtime pay, should have a clear-cut procedure for grievance handling.
perceived inequalities in treatment, claims for equal pay, and appeals against performance- What is Grievance Redressal?
related pay awards. A grievance redressal system is a process to address employee grievances, and it can be
2. Work environment: defined as a mechanism that enables employees to communicate their concerns to
It may be undesirable or unsatisfactory conditions of work. For example, light, space, heat, or management. The grievance redressal system helps in resolving employees’ grievances in a
poor physical conditions of workplace, defective tools and equipment, poor quality of material, formal manner which may be between an employee to employee or between employee and
unfair rules, and lack of recognition. management.
3. Supervision: For an organization to function effectively, it is important that the employees are satisfied
It may be objections to the general methods of supervision related to the attitudes of the and happy with their job. The grievance redressal system provides a fair and transparent
supervisor towards the employee such as perceived notions of bias, favouritism, nepotism, process for resolving employee complaints.
caste affiliations and regional feelings. It ensures that all employees are treated equally and fairly, regardless of their position or
4. Organizational change: seniority. The system is implemented through various policies and procedures designed to
Any change in the organizational policies can result in grievances. For example, the ensure that grievances are handled fairly and impartially, without bias towards anyone
implementation of revised company policies or new working practices. involved in the process.
5. Employee relations:
Employees are unable to adjust with their colleagues, suffer from feelings of neglect and The 7 Key Points of a Good Grievance Redressal System
victimization and become an object of ridicule and humiliation, or other inter- employee Document the issue/complaint:
disputes. The employee should make an initial effort to resolve the grievance with their immediate
6. Miscellaneous: supervisor. The first step is to write a letter to the grievance redressal committee/concerned
These may be issues relating to certain violations in respect of promotions, safety methods, department head/supervisor containing all relevant details of the issue. The supervisor’s
transfer, disciplinary rules, fines, granting leaves, medical facilities, etc. decision is final unless it is unreasonable, arbitrary, or irrational.
Effects of Grievance: Problem identification:
Grievances, if not identified and redressed, may adversely affect workers, managers, and the A supervisor should identify the problem and assess the situation.
organization. Collecting the information:
When the problem has been identified, the supervisor should collect all relevant information
about the grievance before developing a plan of action.
Analyze:
To find the root of the problem, the supervisor must study various aspects such as the
employee’s history, frequency of occurrences and management practices.
Decision making & Implementation:
The management work out several alternative courses of action, and the consequences of
each course on the employee and the administration are evaluated. A final decision is
reached based on which course of action will benefit all parties concerned and is
implemented.
Take Action:
If a grievance refers to a higher authority under this procedure and the outcome does not
meet their expectations, both parties can agree to appoint an arbitrator.
What type of complaints come under the system?
Complaints that come under this category are:

1. Unfair treatment at work due to age and gender discrimination.

2. Unfair promotion practices that do not follow meritocracy principles (e.g.,
favoritism).
3. Inappropriate behavior from a manager or supervisor.
4. Sexual harassment.
5. Disputes between co-employees.