PPM 1
PPM 1
PPM 1
1.1 Introduction –
1.2 Definitions –
i) Management is a process
A) Interpersonal Roles –
B) Informational Roles –
A) Functions of Management—
Limitation of management
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2.1 Introduction
Management in one or the other from had existed everywhere in the world
since the beginning of human civilization. Human beings are basically social
beings and they prefer to live in groups, so they are known as gregarious in
nature right from the beginning. There is lot of evidence of the use of
management principles in the context of the organization of public life in
Ancient Greece, the organization of the Roman Catholic Church and the
organization of military forces of ancient kingdoms. However the study of
modern management principles is the phenomena of twentieth century. In
early stages, field of management remained neglected because of indifferent
attitude adopted by sociologists, economists and political thinkers towards
trade, commerce and industry, as these activities were not well developed. It
was also believed that managers are born and cannot be made as the
management was considered as an art and not the science. The concept of
management actually developed along-with the growth of socio-economic,
political and scientific institutions. Thus management is an evolutionary
concept.
2.2 Development of Management Thought-
1. Management in Antiquity
2. Management during the medieval period or pre scientific
management
3. Period of Taylor’s scientific approach to management (Scientific
management movement)
4. Fayol’s functional approach to management.
5. Human Relations or behaviour sciences movement.
6. Modern Theories let us discuss these approaches briefly as follows-
1. Management in Antiquity-
Management first began with family organization and later expanded to tribe
or community and later on entered into the formalized political organizations
such as those found in Baby Lonia and Mohen Jo Daro in India During those
days in these organizations, financial control and record keeping took the
form of clay tablets with inscriptions. The concept of managerial
responsibility was clearly evidenced through the code of Hammurabi. During
early days production and distribution activities were taking place on a very
small scale where personal supervision and leadership was necessary and
sufficient so management generally took the form of personal leadership.
Approach to administration was governed by customs and traditions, practical
thinking and guidelines rather than by any systematic or scientific theories. In
ancient Mesopotamia and even in India, there was a group of priests who did
management work. They were selfless and devoted philosophers so they
directed and governed by virtue of their authority and as representatives of
gods whom the people worshipped. They advised kings and rulers, planned
trade routes and organized the work of all the members of society including
labourers, artisans, soldiers, traders and housewives.
A) Egypt.:
B) Greece –
D) Military Organizations
E) The Bible –
F) Cameralists –
G) China-
H) India –
In the south East Asia trade and industry were flouishing where the
management of industry and trade, existence of the craft guides and
federation of guilds, the organization and management of finance , the
operation of banking, the dominance of middle class helping entrepreneurs to
take quick decisions and huge capacity of traders to undertake risks and its
management etc are the examples indicating that people were knowing some
of the management principles of modern times. In India small scale and
cottage industries were developing because of increasing demand for Indian
products in European markets. Master craftsmen were managing their
enterprises efficiently Marketing was no problem hence for increasing
production they had no alternative but to motivate employees through
establishing family bonds between employers and employees. Trade was
efficiently managed by Indian and foreign traders.
The books written by Lone also deal with the knowledge of management
possessed by the businessmen of Italy in 15th century.
In 16th century the maritime activity was as its top when the government ship
yard was managed like modern lines of management covering production,
finance and accounting functions.
During 14th to 16th century India was known as the industrial workshop of the
world. There were private factories and State enterprises known as “Imperial
Karkhanas “is an example of mixed economy. The industry and trade were
carried on according to the principles of management production in factories ,
recruitment and selection, development, compensation of employees,
procurement of finances and marketing of goods etc functional areas of
management were carried on according to the modern principles and practice
of management. Craft guides and federation of guides led to the increase in
efficiency in management.
The period of 18th and 19th centuries is known as the period of managerial
awakening. The evolution of management concept has been closely
associated with evolution of manufacturing processes.
Industrial Revolution took place during the period of 1760 to 1840 in England
and later on spread to America in 1790 and in continental Europe, it came to
India only in 1860 . The Industrial Revolution marked the beginning of a new
phase in industrial activities, through complete transformation in the system
of production and distribution. Industrial Revolution may be defined as a
process of bringing about revolutionary changes in the system of economic,
technological and scientific areas of production processes. The machines
were designed to increase productivity. Human and animal energy was
replaced by steany engines and electricity. A large number of laborious tasks
were removed from the production activities. The workers instead of working
with their inefficient handtools started working with developed equipment’s
so that they could substitue machine power for muscle power. Since
machinery used was massive , stationary and dependent on a given source
of power such as waterfall, it became necessary to locate materials and
equipment in a central plant. So factory system came into existence and
became deminant feature of the economy. Workers from agriculture in rural
areas started moving towards factory sites and urbanization started making
progress in the economy. Under this system an entrepreneur or a group of
promoters collected huge capital through the system of shareholders and
hired labour, land and other resources for processing them and converting
them in goods on a large scale to satisfy needs of the people. Thus mass
production became the order of the day. The system of mass production was
advantageous to manufacturers and consumers as cheaper products were
available in plenty, while manufacturers were able to earn huge profits.
However it resulted into unequal distribution of income and wealth in the
society and division of society into rich capitalists and poor labours. The
capitalists concentrated on profit maximization through exploitation of labour
and workers became slave of machines. These developments attracted
attention of social thinkers and management experts.
F.W.Taylor (1856-1915)
Taylor in his early career as machinists and a foreman observed much
disorder and wastages of human and other resources at work place. People
were habituated in traditional ways of ding things even in organized settings.
Much reliance was placed on rule of thumb, initiative and trial and error
approaches. Taylor as a man of great initiative and imagination devoted
himself to the task of improving the techniques of management. He was firm
believer in Protestant work ethic the cannons of which were hardwork,
achievement, austerity , efficiency, order discipline and the pursuit of self
interest. It was believed that” work is worship.” Taylor as a rationalist tried to
apply the cannons or rules of work ethic to actual work situations by adopting
engineering techniques and approaches. he emphasized that there was a
science of doing things and petting things done by others. He carried out a
large number of experiments, empirical investigations in actual work settings
on a wide range of operational matters. He adopted scientific methods.
2) Functional Foremanship :
Concept of
Scientific Harmony
Management not discord
Maximum
output not
restricted Co-operation
output not
individualism
Functional Foremanship
To ensure that each job is done well and in time and speed of machine is
properly controlled.
vii) Inspector -
To see that work confirms the standards of quality laid down by the planning
department.
To see that all the machines, tools and equipment’s in the factory are
maintained in perfect working order.
v) Financial Incentives –
vi) Economy-
a) Benefits to Business –
b) Benefits to workers –
c) Benefits to society –
In-spite of several merits, the scientific management has been criticized by workers
and their unions, employers, psychologists and theorists.
a) Workers’ Criticism-
b) Employers’ Criticism
c) Theorists’ Crit6icism.
d) Psychologist’s Criticism-
Concept of management-
Out of all these activities management was the most important activity
affecting performance of the organization and hence needed more attention.
Fayol was the first thinker to identify essential qualities for a person
to become effective and efficient manager. These qualities are as
follows
1) Division of work-
4) Unity of command –
5) Unity of Direction –
7) Remuneration of Personnel –
9) Scalar Chain
10) Order -
13) Initiative-
It means the spirit of loyalty and devotion which unites the members
of a group or society. It also means regard for the honour of the
enterprise to which a person belongs. The principle implies “Union
is strength” as it has been noticed that when people are united they
do wonders which otherwise are not posible. Gayol is against the
practice of management of “divide and rule” as in the long run it may
ruin the organization . Fayol emphasizes proper communication
plays a key role in promoting the spirit of union among employees.
He prefers verbal communication. In place of written one, as fair as
possible, to clear misunderstanding and getting fee back quickly.
Criticism –
Fayol takes a broad view of the management process and has not
emphasised on positive attitude towards workers nor paying workers
fair wages and incentives. Workers are treated as biological
machines.
Some of the terms and concepts have not been properly explained.
For example, there is no clear distinction between the structure and
process of organization. The principle of specialization does not tell
about how tasks should be divided.
His theory is more concerned with what managers should know and
do, rather than more understanding about managerial behaviour.
theory fails to explain when the principles must be applied, which
principle should take precedence over the other when they are being
applied.
Elton Mayo and others argued that workers should not be treated as
factor of production but be treated as human beings. Workers
“attitudes, needs and feelings are more important on the job, Haw
thorne Experiments were carried out at the Hawthorne Plant of
Western Electric co during 1924 to 1932.
Workgroup Leader
3) Work Group -- The work group plays an important role in determining the
attitudes and performance of workers. Work is social experience and
workers find satisfaction in membership in social groups, In order to improve
human relations this aspect need to be realized.
The movement has been criticised as manipulative, insincere, ignoring the reality of
economic variables. During 1950s human relations movement was heavily criticized
on the following grounds.
The critics pointed out that human relations studies have clinical bias as they
neglected theory and most of these conclusions are not supported by
adequate scientific evidence.
2) Shortsighted in Nature –
6) MODERN THINKERS -
3) Elements of organization-
4) Functions of Executives –
6) Executive Effectiveness--
7) Motivation-
8) Organizational Equilibrium-
Theory X—
THEORY Y-
Theory Z--
Urwick criticized both the Theories X and Y and proposed a new theory called theory
Z. He argued that, the primary task of a manager is to produce goods and services at
fair prices which consumers are able and willing to pay with this objective in view,
manger must direct his effort of those associated with him. It would be possible
under two conditions –
2) All the members of the organization should be confident that the realizations
of organizational goals is going to affect their need satisfaction positively.
Thus theory Z takes into consideration the organizational variables shaping
the behaviour of individuals. The supporters of the theory believe that a
particular individual is likely to behave differently in different organizational
conditions. The theory presents more realistic picture of human behaviour in
the organization without making assumptions about human behaviour. The
success of an organizations depends on the morale of all the people of the
organization. If the management develops appropriate organization which
will satisfy both, the needs of the people and the needs of job then it will lead
to maximum motivation and productivity. However the theory Z could not
get much popularity because such propositions have been given in one form
or the other by different theories
1) Nature of management –
2) Management Functions-
3) Organization Structure –
4) Federalism --
6) Futurity –
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Limitation—
This approach is useful for developing the diagnostic and analytical skills
among the students. The main limitation of the approach is that, basing
generalization on cases and past experiences has not contributed
significantly towards development of management as a separate discipline.
Secondly , as managers have to function under dynamic environment,
successful techniques of the past period may not be successful in present or
in future.
4) Human Relations (Behaviour) Approach—
Main features—
Main Features –
Main Features –
Main Features –
Main features –
Kenneth, Boulding etc. authors have used the systems approach to study
new types of organizations such as project management organization. The
main problems with the systems approach is that its method tends to be
complex especially when it is applied to study large complex and dynamic
organizations.
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Q. 4 a) Define Planning. Explain the nature objectives, advantages and
disadvantages of planning.
b) Explain different types of plans.
c) What are the steps involved in the planning process ?
2.1 Introduction-
2.2 Definitions –
B) TYPES OF PLANS -
Standing Plans-
There are the plans which are used repeatedly over large period as and
when required.
2. Objectives -- Objectives are open ended attributes and indicate end point of
planning. As Mc farlnd has pointed out objectives are goals, aims or
purposes that organizations wish to achieve over various periods of time”
Thus objectives are expressed in broad terms like “ Our aim is to improve the
image of the organization.” Objectives decide where the organization wants
to go, what it wants to achieve and what is its destination. As objectives are
end points and giving direction to the planning, without objectives planning
cannot be undertaken.
6) Strategies - Strategy is the complex plan for bringing the organization from a
given position to a desired position in a future period of time. The main
purpose of strategy is to overcome the competitive forces and achieving
organizational objectives the strategy is formulated by the top management
for the purpose of interpreting and shaping the meaning of other policies.
Single use plans are prepared to meet the demands of particular situation.
These plans are used only for specific periods.
There are the various types of plas which are used by management
to achieve the organizational goals through optimum use of available
resources.
4) Determination of Objectives-
Under long term or strategic plan, all the important areas of business
activities are covered so as to include profits, capital expenditure for
growth and diversification, organization structure managerial
philosophy, pricing, leadership in the market, finance, personnel,
advertising, industrial relations, know-how capabilities, product
planning etc.
Corrective
Action
PLAN OPERATING
RESULTS
All the senior managers should remove any type of obstacles to planning and
try to develop climate in which their subordinates will be motivated to
participate in the process of planning.
2) Planning should originate from the top management who are in charge of
preparing strategic or long term plan, and other plans can be based upon it.
4) A long range plan must be integrate with short term plans, for achieving pre-
determined goals.
5) Flexible organizations
The managers should build organization in such away that it will be willing
and ready to accept challenges of change. It should be able to predict
changes and be ready to welcome changes. Development of pro change
attitude is highly desirable for growth of organization.
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5.2 DEFINITIONS --
1) Efficiency of Management –
2) Facilities Administration –
8) Smooth direction
9) Easy communication
10) Integration of individual efforts to achieve organizational goals.
11) Effective control over employees
12) Continuity and certainty of work performance.
ORGANIZATION
Formal Informal
1) Line Organization
2) Functional Organization
3) Line and staff organization
4) Matrix organization
5) Committee Organization
A) FORMAL ORGANIZATION—
1) LINE ORGANIZATION –
Foreman
Usually a general manager has three or four managers who have assistant managers
of similar number and so on up to lower level of foreman.
The task of each individual is well defined, hence there are no chances of duplication
overlapping.
Advantages –
1) The relation ship between the superior and the subordinate is quite clear
because the authority and responsibility of each person working at different
level are well defined.
2) Due to direct flow authority and responsibility there no confusion about work
done and responsibility.
3) Since the person has ultimate authority to decide and act, he can take quick
decisions.
Disadvantages
In spite of these limitations, the line organization is suitable for 1) Small scale units
2) Where automatic machinery is used 3) In case of continuous process 4)
Where number of subordinates is small.
2) FUNCTIONAL ORGANIZATION--
General Manger
Factory Manger
Production Manager
Advantages –
Disadvantages—
Disadvantages
In practice line and staff structure has become most popular in large
organizations. Generally an enterprise begins with line structure and late on
becomes line and staff organizations. However it is not suitable for small
scale organizations.
Advantages
Disadvantages -
Advantages
Disadvantages
2) It takes time and lot of money to call meetings and committee work is
also time consuming.
B) INFORMAL ORGANIZATION –
Man is a social animal and wants social interaction. Formal organizations are
jointed by people to satisfy their needs but these organizations cannot satisfy
all the needs of people because of their nature. Hence informal organization
spontaneously emerge in all the formal organizations.
According to Davis informal organizations is” that net work of personal and
social relations which is not established or required by formal organization. It
is a shadow organization. Informal organization is natural or spontaneous
network of personal and social relationships between individuals formed on
the basis of personal attitudes values emotions, friendships prejudices,
interests likes and dislikes, regional affinity, common work place etc.
Informal organization is all pervasive and is found at all levels of
management. It consists of small informal groups with their own behavioral
patterns, status systems, beliefs and goals. Informal groups may overlap
because an individual may be a member of more than one informal groups.
Informal organization has its own goals, authority structure, code of conduct,
communication system and system of reward and punishment. Authority is
personal and communication much faster but less accurate, than formal
commination. Informal leadership is based on age, seniority technical
competence etc. Informal group leader is considered as an ideal person by
the members who is able to satisfy group goals. The informal leader may
initiate action and creates consensus among group members and serves as
a link between the group and outside world.
Disadvantages
2) Interest of formal and informal groups may clash with each other.
Mangers should not resist formation of in formal groups but try to convince it
to contribute to organizational goals.
ORGANIZATION
FORMAL INFORMAL
1. Structure—
It is official, so it has prescribed It is in unofficial or natural having no
structure of roles and relationships . specific structure. It arises
It is planned and deliberately spontaneously without official sanction
created by management by management
2. Base –
It is based on delegation of It arises through social interactions
authority & may grow to very big between employees. It usually remains
size. It is mechanistic and brings small is size. It is humanistic and gives
order in the organizations. satisfaction to employees.
3. Nature –
It is deliberately created impersonal It is personal with emphasis on people
with emphasis on authority, and their intricate relationships,
functions, status differentials and informal rankings and multidimensional
down ward communications communications.
4. Shape –
It is hierachial and pyramid shaped It has no definite shape, and no division
and with because style of of work. It is structural less and ill
leadership defined . It is psychosocial system.
5 Orientation
Its tasks, goals and values are Its tasks goals and values are socio-
economic oriented towards psychological centering around
efficiency, productivity profitability individual and group satisfaction
and growth. affiliation co-friendship esteem etc.
2) To fix responsibility
BASIS/TYPES OF DEPARTMENTATION—
1) Departmentation By function—
Managing Director
Some functions are useful to the basic functions, so they are called service or staff
functions. In the diagram, sales are the basic function while marketing research and
advertising are staff functions.
Advantages
Disadvantages
5) It may fail to develop an overall view of the organization and its problems,.
2) Departmentation By Products
M.D
Advantages
Disadvantages –
3) Departmentation by Territory--
Head Office
Advantages
Disadvantages
4) Departmentation by customers/Markets
Managing Director
Marketing Manager
Advantages –
Disadvantages
GENERAL MANAGER
Advantages—
Disadvantages
i) Time – Public utilizes and restaurants may adopt “rush hours” and
“off hours” classification. There may be day and right shift
departments in factories.
ii) Numerical basis – In the army soldiers are sometimes grouped into
squads on the basis of numbers.
There are several basis of departmentation each one having its own
advantages and disadvantages . The base to be used in a particular case
depends on the requirements of the situation. However the following factors
are taken into consideration while selecting a suitable base for
departmentation.
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Q.7 a) Define the concepts of Authority, Responsibility and
Accountability.
a) Concept of Authority—
Definition—
Authority V Power
Both , authority and power seek to influence behaviour of others but there is
a difference between these two terms.
There are three theories dealing with the sources of authority, which may be stated
as follows
According to this theory all authority originates at the top in the formal
structure of an organization and it flows downwards to subordinates through
the process of delegation. The ultimate authority in a company rests with the
real owners, the shareholders who delegate their authority to the board of
directors which in turn is delegated to the chief executive and so on. Formal
Authority is the authority which a manager possesses by virtue of his position
in the organization. It is hierarchical in the nature, so it is called top down
authority. Formal authority is conferred by law and useful for a manager to
carry out his functions effectively.
1) Acceptance Theory –
2) Competence Theory—
Limits of Authority
2) Legal Restriction--
RESPONSIBILITY
ACCOUNTABILITY
As Robbins has pointed out, authority is the right to act, responsibility the
obligation to carry out delegated authority and accountability establishes
reliability for the proper discharge of the duties, delegated to the subordinate,
Responsibility and accountability may seem similar but they are different.”
Subordinates are responsible for the completion of tasks assigned to them
and are accountable to their superiors for the satisfactory performance of the
assigned work.
C) DELEGATION OF AUTHORITY—
6) Hiner -- Delegation takes place when one person gives another the
right to perform work on his behalf and in his name and the second
person accepts the corresponding duty or obligation to do what is
required of him” thus delegation takes place when enterprise
discretion is vested in a subordinate by a superior.
Importance of Delegation.
Steps in delegation—
2) Functional Definition—
4) Unity of Command—
5) Clarity of Delegation—
7) Absoluteness of Responsibility –
8) Completeness of Delegation –
Difficulties in Delegation
A) Attitudes of Superiors –
5) Fear of competition –
6) Absence of controls—
B) Attitude of subordinates –
4) Fear of criticism—
5) Dependence on Boss
6) Other obstacles –
A) CENTRALISATION –
Advantages of centralization
3) To provide integration—
4) To handle emergencies—
Limitations of Centralization—
B) DECENTRALIZATION—
9) It helps in saving time as all the paper work relating to the basic
operations of business can be significantly reduced, work can be
completed early without wasting time.
Disadvantages of Decentralization—
2) There may be lack of uniformity as all the decentralized units may not
follow uniform policies and procedures. Thus inconsistencies may
arise in the activities of the organization.
3) Decentralization may result into heavy overheads on account of
higher administrative expenses, duplication of staff and facilities
trained persons may not be fully utilized.
B) DELEGATION V DECENTRALIZATION
Both are the closely related terms as both refer to the location of
authority, but there is considerable difference between these two
terms. Gupta has explained it as follows—
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Q.9 a) What is staffing? Explain its importance to management.
A) STAFFING
Definition-
Nature of staffing –
Scope of Staffing –
The technique of manpower planning has been given serious thought since
the end of world war II. Manpower planning is directly related to the quality of
the product, the market demand for it and the type and skill necessary to
produce a quality product required by the consumers.
Definition—
3) Anticipating redundancies.
Skill Inventory
Managers must take into account the future changes along with
appraising the present human resources through skills inventory.
Some changes may have to be estimated while other changes like
retirements can be forecasted while transfer and promotions can be
estimated on the basis of ages of individuals in specific jobs, and the
retirements of organization.
4) Under utilization of over employment results in high labour costs and low
profit margin. Hence it should be avoided through systematic manpower
planning and execution.
5) It helps managers to achieve balance between long term supply and demand
conditions.
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Q.10 What do you understand by Recruitment Discuss various sources and
methods of recruitment?
Definitions –
Before inviting people to apply for the jobs in the organization it is necessary
to decide what types of persons are to be invited and what should be their
characteristics. This calls for 1) Job analysis 2) Job description and
3) Job specification.
1) Job Analysis --
3) Job Specification—
Sources of Recruitment --
A) Internal Sources –
Advantages –
4) The persons employed by the company are fully aware and well
acquainted with its policies procedures etc. So they require little
training and their chances to remain with the organization are
relatively higher them those of outsiders.
5) They are tried and hence reliable people recruitment of internal of
cheaper and time saving.
Disadvantages
Generally for middle level managers internal source is rarely used, however
for promoting blue collar workers to white collar jobs internal source is more
desirable.
B) External Sources -
Advantages
Disadvantages
1. Loyalty of an external person tends to be doubtful.
2. It may result into brain drain when other organization are ready to
take experienced persons on attractive terms.
Methods of Recruitment--
A) Direct Methods
B) Indirect Method—
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Q.11 What is selection? discuss Its importance . Explain the selection
procedure followed by modern organizations.
A) SELECTION
B) IMPORTANCE OF SELECTION-
C) SELECTION PROCEDURE—
The applicants are asked to give details about their age, marital
status, educational qualifications, work experience and references.
The organization may use different types of application forms for
different types of employees. The forms for lower level employees
are simple, general and easily answerable, while for higher posts
these forms are in more detail complex. Information’s about
nationality, race, caste religion, place of birth etc are regarded as
evidence of discriminatory attitudes and hence should be avoided.
An application form should be designed to serve as a highly effective
preliminary screening device. These applications are then
scrutinized to find out if they are lacking in educational standards,
experience or some other relevant qualifications and traits etc.
Those applicants found to be suitable for the post are subjected to
further tests.
3) Selection Tests-
Types of Tests.
There are several tests which are generally used during the process
of selection. These tests may be classified into four categories.
d) Interest Tests.
C) Personality Tests--
D) Interest Tests --
4) Employment Interview
Those candidates who are successful in selection tests are called for
employment interview. This interview is the most popular test in the
process of selection. It involves a brief personal contact with the
candidate with a view to judging his suitability for the job. It is useful
for various reasons.
5) Physical/Medical Examination -
6) Reference Checks--
7) Final Approval -
Induction or Orientation—
In order to make orientation program more effective, the new employee may
be taken around the factory and its offices and be introduced to the key
persons with whom he may have to contact in future. In order to provide
sufficient necessary information lectures and discussions may be arranged.
Handbooks, manuals and pamphlets may be supplied for the orientation of
the new employees.
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Q.12 a) What is performance Appraisal? Explain it’s significant.
1) Introduction –
2) Definitions—
c) Measurement of Performance –
e) Result of Appraisal—
A) Traditional Methods—
This method gives more realistic rating than the simple ranking
method. But the plan becomes more complicated when the number
of employees in the group is very large. Second it does not indicate
the degree of differences in the ratings of employees. It may be
useful for small organizations.
3) Grading Method
Under this method the rater considers certain features and marks
them according to a scale. The selected features may be co-
operatives, analytical ability, dependability, self-expression, job
knowledge leadership, judgement, organizing ability etc. Then they
are graded like A indicates outstanding B) Very good C) Good ,
D) Fair E) Poor V) B as very poor.
6) Check-list Method -
Under this method the rater reports the facts and he has not to
consider various traits. However it is a time consuming and
expensive method. It is also difficult to construct a good check list
for every job.
This method is more reliable as there is little chance for personal bias
of the rates.
Under this method the supervisor makes a free form, open ended
appraisal of an employee in his own words and writes his views
about the employee. The factors to be taken into consideration are
relations with fellow supervisors and his subordinates, general
organization and planning ability , job knowledge and potential,
employee characteristics and attitudes production quality and cost
control, physical conditions etc.
8) Critical Incidents --
This method is useful for large organizations and it does not suffer
from the weaknesses like of other methods. The overall ratings are
obtained under three categories such as outstanding, satisfactory
and unsatisfactory. Under this method the supervisors are relieved
from filling up of evaluation forms. The main limitation of this
method is that it keeps management representatives busy in the
process of evaluation of employees.