Page 115 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Unit 5: Appraising and Evaluating People in the Organization

All these techniques are related to each other. The manager must keep a written record of Notes
all these for future reference.
Psychological Appraisals

Psychological appraisals are conducted to assess the employee potential. Large organizations
recruit full-time psychologists to assess the future performance of the employees. Psychological
appraisals include in-depth interviews, psychological test, and discussions with supervisors.
Psychological appraisals are conducted to assess the following features of the employees:
• Intellectual abilities

• Emotional stability
• Reasoning and analytical abilities
• Sociability
• Interpretation and judgment skills

• Motivational responses
• Ability to foresee the future
Psychological evaluation can be done either to evaluate the performance of employees for
a particular job opening or to assess the future potential of all employees globally.
Psychological appraisal results are useful for decision-making about employee placement,
career planning and development, and training.

360 Degree Appraisal
It is a method of appraisal in which employees receive their performance feedback from
their boss, colleagues, customers, peers and their own subordinates in the organization. This
form of performance evaluation can be very beneficial to managers because it typically gives
them a much wider range of performance-related feedback than a traditional evaluation. This
method helps individuals to know their strengths and weaknesses and thus, helps them to
develop their inter-personal skills. It also improves communication between employees and
their customers, as they will be able to know what the customers think about them. Thus,
it is an efficient method to improve inter-personal skills of employees and to attain higher
customer satisfaction level.

Following are some of the drawbacks of this method:
• It is possible that the team member can have personal problems with the employee
and thus, he may not take an honest decision.

• A lot of time is required in selecting the team that will rate the performance, preparing
questionnaires, and analysing the collected information.

The performance appraisal, its roots in the early 20th century can be
traced to Taylor’s pioneering Time and Motion studies.

Self Assessment
Multiple choice questions:
1. .................. is a method of appraisal in which employees receive their performance
feedback from their boss.
(a) Psychological Appraisals (b) Human Resource Accounting
(c) Assessment Centre (d) 360 Degree Appraisal

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