Staff Appraisal — Important Questions

To identify the weaknesses of employees for suitable training and development

Step 1: The chapter lists several objectives of performance appraisal. Step 2: One key objective is to identify the weaknesses of employees so that suitable training and development programmes can be designed. Step 3: This helps employees grow and improve their performance over time. Step 4: Option B is the purpose of job evaluation, not performance appraisal. Step 5: Options C and D relate to recruitment and organisational design respectively, which are different HR functions. So Option A is correct.

Placement

Step 1: The chapter discusses the importance of performance appraisal under different headings. Step 2: Under 'Placement,' it states that performance appraisal reveals the skills and aptitudes of every employee. Step 3: Based on this, each employee can be assigned the job for which they are best suited. Step 4: 'Incentive compensation' is about wage incentives, not job assignment. Step 5: 'Promotion and Transfer' involves moving employees to higher or different roles, while 'Psychological Pressure' refers to motivation through awareness of being evaluated. So the correct answer is Placement.

10%

Step 1: In the Merit Grading method, ratings are distributed to create a normal frequency distribution. Step 2: The distribution given in the chapter is: 10% 'poor,' 20% 'below average,' 40% 'average,' 20% 'above average,' and 10% 'outstanding.' Step 3: So 'outstanding' forms the top 10% of the distribution. Step 4: 20% corresponds to 'above average' and 'below average.' Step 5: 40% is the largest group, rated as 'average.' Therefore, 10% is the correct answer for 'outstanding.'

Goal Setting Approach or Management by Objectives (MBO)

Step 1: 'Appraisal by Results' is a specific method of performance appraisal described in the chapter. Step 2: The chapter clearly states it is 'also known as goal setting approach to appraisal or appraisal through management by objectives (MBO).' Step 3: In this approach, the subordinate's performance is measured against specific objectives decided mutually. Step 4: Merit Grading is a different method that uses grade categories. Step 5: 360 Degree Appraisal and Self-Appraisal are separate methods. So the correct answer is Goal Setting Approach or MBO.