HRM613 — Final Term Summary (Lectures 23–45)

📘 Lecture 23 — Evaluation of Appraisal Forms

📖 Overview: This lecture explains how overall performance scores are computed from appraisal forms and the strategies used to determine these scores. It also covers the timing of appraisals (appraisal periods) and the different types of formal appraisal meetings between supervisors and employees. Understanding these concepts is critical for implementing a fair and effective performance management system.

🗂️ Topics Covered

This lecture begins by explaining two strategies for determining overall performance from appraisal forms: the judgmental procedure and the mechanical procedure, with advantages of the latter. It then covers the appraisal period, comparing annual, semi-annual, and quarterly reviews, and discusses when reviews should be held. Finally, the lecture details the six types of formal appraisal meetings: system inauguration, self-appraisal, classical performance review, merit/salary review, development plan, and objective setting.

📝 Lecture Summary

Evaluation of Appraisal Forms

Once the appraisal form is completed, overall performance is computed by summing up the scores of all sections. The overall computed performance scores identify whether the appraisal is improving performance, which assists in taking administrative decisions regarding allocation of rewards.

Strategies for determining overall performance There are two strategies used to obtain an overall performance score of an appraisal form:

1. Judgmental Procedure
2. Mechanical Procedure

Judgmental Procedure: As per this method, every aspect of performance is considered by the appraiser, who then arrives at a defensible summary. It is a holistic procedure relying on the ability of an appraiser to arrive at a fair and accurate overall performance score.

Mechanical Procedure: In this technique, initially scores assigned to each section of the appraisal form are considered, and then each section’s score is added to obtain an overall score. While adding scores, weights are assigned on the basis of relative importance of performance dimension to each section, which are further used to add scores from each section. Competencies are weighted in the appraisal form according to their relative value to the organization; therefore, key results have different weights.

It is based on the organization’s policy to apply judgmental or mechanical procedure. However, the mechanical procedure is considered advantageous. Some of its advantages include:

• Allow supervisors to come to an objective and clear overall performance score for each employee.
• Allow supervisors to come to a verifiable score for each employee.
• Supervisor and employee can be sure that the overall performance rating is reflective of the employee’s performance in each category.

💡 Why this matters: The mechanical procedure provides transparency and defensibility in performance ratings, which is essential for fair reward allocation and employee trust.

Appraisal Period

Questions like how long the appraisal period should be and what period of time should be included determine the duration and number of meetings required. Usually organizations conduct appraisals annually, however annual appraisals are not considered effective to identify performance issues and allocate rewards timely. Therefore, appraisals are also conducted semi-annually and quarterly.

Annual Review: Reviews performed annually are preferred due to ease, i.e., performed once a year. However, it might not provide sufficient opportunity for supervisor and subordinate to address performance issues timely.

Semi-Annual Review: Appraisals carried out twice a year are known as semi-annual appraisals. Such appraisals allow employees to receive feedback and adjust goals/objectives if necessary for preparation of the more detailed annual review.

Quarterly Reviews: Appraisals conducted four times a year are termed quarterly reviews. They provide more opportunity to discuss performance issues and allocation of rewards/punishments timely.

When should reviews be held? The usual practice is to have an annual formal review that provides a basis for a new performance agreement and performance rating. Some organizations hold all reviews at the same time, especially if they need a performance rating for pay purposes. The timing can be linked to the corporate business planning programme to ensure integration of team/individual objectives with corporate objectives.

There may be scope for separate business units to align reviews to their own planning cycle. Some organizations conduct reviews on the employee's birthday or anniversary of joining, which spreads the load for managers but makes it difficult to fit into the annual planning cycle.

Corporate guidelines often suggest interim formal progress reviews during the year, such as quarterly or half-way through the review year. Managers should be allowed to choose their own times for interim or informal reviews, and it is best not to ask managers to complete standard review forms for these. Some organizations require a formal performance review for new starters at the end of a probationary period.

Formal Appraisal Meetings

There are mostly six formal appraisal meetings conducted between the appraiser (manager/supervisor) and appraisee (employee/subordinate):

1. System Inauguration Meeting
2. Self-appraisal Meeting
3. Classical Performance Review Meeting
4. Merit/Salary Review Meeting
5. Development Plan Meeting
6. Objective Setting Meeting

System Inauguration Meeting: This includes a discussion of how the PMS works and the identification of the requirements/responsibilities of supervisor and employee. Discussion includes the role of self-appraisal and dates for formal meetings. It plays a major role in introducing PMS to newly appointed employees.

Self-appraisal Meeting: In this meeting, the employee assesses his/her performance him/herself, providing an opportunity to describe their own performance. The supervisor does not pass judgment. It is helpful if the employee is given the same form to provide self-ratings using the same dimensions as the supervisor.

Classical Performance Review Meeting: During this meeting, employee performance is discussed from both employee and supervisor perspectives. The meeting is past-oriented and does not focus on how performance should be in the future.

Merit/Salary Review Meeting: In this meeting, compensation changes (if any) are discussed, usually as a consequence of the period’s performance. It is better to differentiate between performance and reward meetings so the employee can focus initially on performance and then on rewards, otherwise the employee will not be attentive during the performance discussion. Supervisors should explain the performance-rewards link; rewards have no significance if not directly linked to performance.

Development Plan Review: During this meeting, the employee’s developmental needs and steps to be taken to improve performance during the following period are discussed. It includes information about types of resources employees require for developing new skills.

Objective Setting Meeting: This meeting discusses matters like goal setting (both behavioral and results oriented) regarding the next review period. It also includes clear feedback about employee performance on the past review period. It assists in identifying allocation of rewards, developmental needs and goals, and resources available.

⭐ Key Takeaways

The two main strategies for determining overall performance are the judgmental procedure (holistic, appraiser-dependent) and the mechanical procedure (objective, verifiable, and weighted), with the mechanical procedure being generally preferred for its transparency. Appraisal periods can be annual, semi-annual, or quarterly, with more frequent reviews (e.g., quarterly) providing better opportunities for timely feedback and course correction. There are six distinct formal appraisal meetings, each with a specific purpose: system inauguration, self-appraisal, classical performance review, merit/salary review, development plan, and objective setting. It is critical to separate the performance review meeting from the salary review meeting to ensure employees focus on performance improvement before discussing rewards. Finally, the timing of reviews should ideally align with business planning cycles, and interim progress reviews are recommended to supplement the annual formal review.

🧠 Quick Revision Questions

1. What are the two strategies for determining overall performance from an appraisal form, and which one is generally considered more advantageous?
2. What are the main advantages of the mechanical procedure over the judgmental procedure for computing overall performance scores?
3. Compare the advantages and disadvantages of annual, semi-annual, and quarterly appraisal periods.
4. List the six types of formal appraisal meetings and briefly state the primary purpose of each.
5. Why is it recommended to separate the performance review meeting from the merit/salary review meeting?

📘 Lecture 24 — Performance Information Sources

📖 Overview: This lecture explores the various sources from which performance information can be gathered for employee evaluation. It emphasizes that relying on a single source, such as the supervisor, can lead to biased and incomplete feedback, and therefore advocates for a multi-source approach to obtain more accurate and transparent performance data.

🗂️ Topics Covered

The lecture begins by establishing the need for multiple performance data sources to overcome the limitations of relying solely on supervisors. It then systematically examines six key sources: supervisors, customers, peers/colleagues, subordinates, self, and other sources (like technology-based monitoring). For each source, the lecture discusses its advantages, disadvantages, and specific considerations for effective use, such as confidentiality and the purpose of the appraisal (e.g., developmental vs. administrative).

📝 Lecture Summary

Performance Information Sources

Information based on which performance is evaluated is commonly gathered from the supervisor, as the supervisor is the one directly connected to the employee. However, a single source of performance data is more likely to be biased and it is not possible for a single supervisor to observe and note the performance of all subordinates at different time intervals. To overcome this limitation of data source, multiple sources are suggested which may provide relatively accurate and transparent feedback.

Sources of Information

Following sources are considered to get complete and accurate feedback: Supervisors, Customers, Peers/Colleagues, Subordinates, Self, and Other sources.

Supervisors:

A supervisor is considered as the most important, and sometimes only, source of performance information. Supervisors are mostly preferred as a main data source because they are in the best position to evaluate performance in relation to strategic organizational goals and are able to differentiate among performance dimensions. Therefore, they are mostly responsible for decisions about rewards associated with performance evaluation. Besides this close association with performance, supervisor evaluations are targeted as biased ratings i-e entirely based on a single individual’s perception. Moreover, for a supervisor, performance evaluation becomes a monotonous and routine work.

🔑 Definition — Supervisor as a Source: The most common source of performance data, preferred for their alignment with organizational goals, but prone to single-rater bias.

Customers:

Customer, being the end user, is an appropriate source to provide feedback about the final product/services. This source evaluates the performance in terms of received outcome. The tendency of personal biasness is limited in this case as customers do not personally know any of the employees.

Peers/Colleagues:

Peers/colleagues (employees at the same level) are well aware of the responsibilities and job duties of a specific position and hence can better evaluate the employee’s performance. Chances of personal biases exist in this feedback as rater and ratee both are counterparts and may compete each other for performance rewards. Evaluations by peers are resisted if the employee (appraisee) believes friendship bias is present, and therefore he/she does not consider this feedback to improve his/her performance. Peers are less discriminating among performance dimensions than supervisors as they are also viewing the job with the same lens as the ratee. Considering all the aspects of peer evaluations, it is suggested not to use peer evaluation as a sole source of performance information.

Subordinates:

Subordinates can be a good source of information regarding conduct, leadership, management, capacity, and ability of the managers. They can evaluate leadership competencies like delegation, organizational skills, communication skills, etc., as they directly experience such leadership traits. Moreover, subordinates can rate the manager’s ability in terms of removing barriers that employees face, shielding employees from politics, and raising employee’s competence. Performance information provided by subordinates is more authentic if to be used for development and not for administrative purposes. Confidentiality is mandatory to maintain in such appraisals, else it may lead to professional rivalry among the manager and the subordinates. Subordinates may hesitate to provide upward feedback. This probable issue can be resolved if managers take time to involve employees in the process by soliciting their input; consequently, employees will be more likely to give honest feedback.

Self:

Self-appraisal is an important component of any performance management system. When employees themselves participate in evaluations, their acceptance of the rating decision increases and defensiveness about the appraisal interview decreases. The employee is in a good condition to keep track of activities during the review period. But self-appraisals should not be used as a sole source of information in making administrative decisions because self-ratings are more lenient and biased than ratings by a supervisor. However, self-ratings are less lenient if used for developmental purposes. Following measures can assist in enhancing the effectiveness of self-appraisals:

• Use comparative measurement systems
• Allow employees to practice self-rating skills: By providing multiple self-appraisal opportunities, the skill of self-evaluation of employees gets improved through practice.
• Assure confidentiality: Provide reassurance that performance information provided will not be shared with anyone other than the direct supervisor or relevant parties.
• Emphasize the future: The developmental plan section of the form should receive substantial attention so that the employee should indicate his/her plans for future development and accomplishments.

Other Sources:

Apart from the sources mentioned above, performance information can be gathered through other sources like:

• Close Circuit Cameras
• Biometrics technology
• Login-logout logs
• Internet browsing logs
• Etc.

⭐ Key Takeaways

For an exam, a student must remember that performance evaluation should use multiple sources to reduce bias, but each source has unique strengths and weaknesses. Supervisors are best for strategic alignment but are prone to single-rater bias; customers offer an unbiased perspective on the final output; peers understand job duties well but can be affected by friendship or competition; subordinates provide valuable insights on leadership but require confidentiality and are best for development; self-appraisals boost acceptance and ownership but are generally too lenient for administrative decisions. Finally, technology-based sources like logs and cameras provide objective data but should supplement, not replace, human judgment.

🧠 Quick Revision Questions

1. Why is it problematic to rely on a supervisor as the sole source of performance information?
2. What is the primary advantage of using customers as a source of performance data?
3. What is "friendship bias" in the context of peer evaluations, and why is it a concern?
4. For which purpose are subordinate appraisals considered more authentic: developmental or administrative? Why?
5. List two specific strategies that can make self-appraisals more effective and reliable.

📘 Lecture 25 — Rating Issues

📖 Overview: This lecture examines the motivational and cognitive factors that cause performance ratings to be distorted, intentionally or unintentionally, by raters. It introduces a model of rater motivation to explain why raters inflate or deflate ratings, categorizes common unintentional rating errors, and outlines the components of rater training programs designed to minimize these distortions. Understanding these issues is critical for designing fair and effective performance management systems.

🗂️ Topics Covered

The lecture opens with a discussion of the inevitability of rating bias and presents a Model of Rater Motivation. It then details the two main types of distorted ratings: intentional errors (both inflated and deflated), explaining the organizational and personal motives behind each. Subsequently, it describes a comprehensive list of common unintentional rating errors (e.g., similar-to-me, halo, recency). The lecture concludes by defining the purpose and key components of rater training programs to mitigate these problems.

📝 Lecture Summary

Performance ratings are evaluated by individuals (supervisor, customer, peer, self) therefore, ratings are likely to be biased by the raters.

Performance ratings, being human evaluations, are inherently susceptible to bias. This bias can be intentional or unintentional, and while it cannot be completely eliminated, its effects can be minimized. Rating distortions lead to negative outcomes such as incorrect administrative decisions, perceptions of unfairness among employees, and increased risk of litigation. The likelihood of distortion increases when raters are given opportunities to practice biased behaviors and when such violations are rewarded. A Model of Rater Motivation is presented to explain the motivational barriers that prevent accurate and just evaluation, separating the motivation to provide accurate ratings from the motivation to distort them, each influenced by the expected consequences and their perceived probability.

Types of distorted ratings

Intentional errors: Intentional ratings can either lead to inflated ratings or deflated ratings.

Inflated Ratings: Biasness leading to over evaluations while evaluating employee performance results into inflated ratings. Such intentional rating distortions are encouraged in order to:

1. Maximize merit rewards of employees: Highest possible ratings result in the highest possible rewards.
2. Encourage employees: High ratings are used to boost employee motivation.
3. Avoid creating a written record: Supervisors may avoid documenting low performance that could have negative consequences for the employee.
4. Avoid confrontation with employees: Supervisors give high ratings to avoid uncomfortable negative feedback sessions.
5. Promote undesired employees out of unit: A high rating can make it easier to transfer or promote an undesirable employee to another department.
6. Make the manager look good to his/her supervisor: A manager appears to be an effective leader if all unit members receive high ratings. Raters who commit inflated ratings are usually considered soft and seek to create a soft environment.

Deflated Ratings: Biasness leading to under evaluations while evaluating employee performance results into deflated ratings. Such intentional rating distortions are encouraged in order to:

1. Shock an employee: To give a warning that undesirable work and behavior has been noticed.
2. Teach rebellious employees a lesson: A low evaluation can cause severe loss for the employee.
3. Send a message to the employee: To encourage the employee to consider leaving the organization voluntarily.
4. Build a strong documented, written record of poor performance: To create a paper trail of substandard performance when a supervisor wants to get rid of an employee. Raters who commit deflated ratings are usually considered aggressive and reactive.

Unintentional errors: These are errors which may occur unintended due to lack of skills, knowledge and awareness of the supervisors.

• Similar to me error: Occurs when supervisors tend to favor employees who are similar to them.
• Contrast error: Occurs when an employee is evaluated in comparison to other employees rather than against set performance standards.
• Halo error: Occurs when an employee is rated similarly on multiple dimensions, based on the perception that being good in one dimension implies competence in all others.
• Primacy error: Occurs when evaluation is based only on information gathered in the initial review phases.
• Recency error: Occurs when evaluations are based only on recent performance, overlooking holistic performance.
• Negativity error: Occurs when more weight is given to negative aspects of performance, ignoring positive aspects.
• First impression error: Occurs when evaluations are based only on initial judgments (favorable or unfavorable) about the employee's performance.
• Spillover error: Occurs when current evaluations are influenced by evaluations from previous review periods.
• Stereotype error: Occurs when supervisors evaluate an employee based on their clan or group rather than on performance dimensions.
• Attribution error: Occurs when a supervisor attributes an employee's poor performance to the employee's personality, ability, or behavior, while ignoring situational factors.

Rater Training Programs

To prevent performance evaluations from distortions (intentional and unintentional), evaluators need to be trained properly. Rater training provides raters with tools to implement the Performance Management System (PMS) effectively and efficiently. The training content focuses on enhancing the information, motivation, and skills of evaluators. The key components of rater training programs include:

1. Reasons for implementing PMS: Providing an overview of the entire system, its purpose, and its benefits for all employees.
2. How to identify and rank job activities: Teaching how to conduct job analysis and understand the most important accountabilities and competencies.
3. How to observe, record, and measure performance: Developing skills to fill out the appraisal form appropriately, including observational skills to focus on important behaviors and ignore irrelevant ones.
4. Information on the appraisal form and system mechanics: This includes the detailed content of the appraisal form, the number of recommended meetings, and expectations for each participant.
5. How to minimize rating errors: Providing steps to minimize unintentional errors caused by the cognitive demands associated with observing and evaluating performance.

⭐ Key Takeaways

A student must remember that performance ratings are inherently biased because they are made by humans, and this bias can be intentional or unintentional. The Model of Rater Motivation explains the deliberate choice to distort ratings, split between inflating ratings (e.g., to avoid conflict, maximize rewards) or deflating them (e.g., to shock an employee or build a termination case). In contrast, unintentional errors (e.g., halo, recency, contrast) stem from cognitive limitations and a lack of skill or knowledge rather than malice. The primary tool to combat both types of distortion is a comprehensive rater training program, which must cover the system's purpose, job analysis, observation skills, form mechanics, and techniques for minimizing cognitive errors.

🧠 Quick Revision Questions

1. What are the two primary categories of rating distortion discussed in the model of rater motivation, and what are their key drivers?
2. List and explain four distinct motivations a supervisor might have for intentionally giving an inflated rating to an employee.
3. How does the "contrast error" differ from the "halo error?" Provide a brief example of each.
4. What is the "attribution error," and how does it lead to an inaccurate assessment of an employee's performance?
5. What are the five key components of an effective rater training program designed to minimize rating errors?

📘 Lecture 26 — Communication Plan for PMS

📖 Overview: This lecture explains the critical role of a formal communication plan in successfully implementing a Performance Management System (PMS). It details the key dimensions a communication plan must address, identifies personal biases that can undermine communication effectiveness, and provides concrete measures to minimize these biases for greater employee acceptance.

🗂️ Topics Covered

The lecture begins by defining the purpose of a communication plan for PMS, emphasizing the need for widespread employee awareness and acceptance. It then outlines six essential dimensions the plan must address, including what PMS is, its strategic fit, personal benefits, operational details, responsibilities, and links to other initiatives. Next, it identifies three types of personal biases that hinder communication effectiveness: selective exposure, selective perception, and selective retention. Finally, the lecture presents eight practical measures to minimize the negative impact of these biases and ensure the communication plan's success.

📝 Lecture Summary

Communication Plan

Before implementing a PMS, the organization must ensure most people are aware of and accept the new system. A formal and thorough communication plan ensures that information regarding performance management is widely disseminated, leading to employee acceptance and satisfaction.

🔑 Definition — Communication Plan: A formal strategy to widely disseminate information about a performance management system to ensure employee acceptance and satisfaction.

Communication Plan for PMS should address the following dimensions:

1. What is performance management? This provides general information on PMS, explains how it is implemented, and describes the main goals of the system.
2. How does performance management fit into our strategy? The relationship between PMS and strategic planning must be communicated to clarify the system's role in accomplishing strategic goals.
3. What’s in it for me? This dimension explains the benefits of implementing PMS for all those involved in and influenced by the system.
4. How does it work? A detailed description of the performance management process and its implementation timeline must be communicated.
5. What are my responsibilities? The roles and responsibilities of each person at each stage of the process must be communicated so that non-compliance can be justly questioned.
6. How is performance management linked to other initiatives? PMS must be linked with other systems like training, promotion, and succession planning, and this linkage must be clearly discussed so employees can align their activities.

Biases in Communication Plan

Three types of personal biases can affect the effectiveness of any communication plan, even a successfully implemented one.

🔑 Definition — Selective Exposure: An individual’s tendency to favor information and ideas that reinforce their pre-existing views while ignoring the actual meaning of the information.

🔑 Definition — Selective Perception: An individual’s tendency to interpret information in the way they want to see it, even though the information does not give that particular meaning.

🔑 Definition — Selective Retention: An individual’s tendency to remember only those pieces of information with which they already agree.

📌 Example: An employee who dislikes performance appraisals (pre-existing view) might only read the part of a PMS communication that talks about potential negative consequences and ignore sections about developmental benefits. This is an example of selective exposure.

Measures to minimize effect of biases

Eight steps are suggested to reduce the negative impact of these biases:

1. Involve employees: Involve employees while designing the system; greater participation means greater support.
2. Understand employee needs: Understand employee needs regarding PMS and then devise ways to meet them. Providing a clear, personal, and convincing answer to "what’s in it for me" removes ambiguities.
3. Strike first (Being proactive): Create a positive attitude towards the new PMS before a negative attitude is created. Make realistic communications and discuss possible arguments against the system by providing evidence.
4. Provide facts and consequences: Clearly explain facts about the system, what they mean, and the consequences so employees cannot draw their own, potentially incorrect, conclusions.
5. Put it in writing: Bring the system plans in writing so it can be examined and checked for accuracy. Documentation communicates more powerful and credible information.
6. Use multiple channels of communication: Include meetings, emails, and paper communication to repeatedly expose employees to the same message through different channels, ensuring all channels convey consistent information.
7. Use credible communicators: Use credible sources like trusted or admired people and key organizational players to communicate the PMS.
8. Say it, then say it again: Repeat information for retention because people absorb only a small amount of information at a time.

💡 Why this matters: The success of a PMS hinges not just on its design, but on how well it is communicated. Failing to address these personal biases can lead to employee resistance, misunderstanding, and the ultimate failure of the entire system, regardless of its technical merits.

⭐ Key Takeaways

A formal communication plan is not optional but essential for PMS implementation success, and it must address six critical dimensions: what PMS is, its strategic fit, personal benefits, how it works, individual responsibilities, and links to other systems. Three personal biases—selective exposure, perception, and retention—can sabotage even a good communication plan by causing employees to favor, interpret, or remember information in a self-serving way. To counter these biases, managers must proactively involve employees, understand their needs, and provide clear facts and consequences. The most effective communication strategy uses multiple channels, credible communicators, and repeated, documented messages to ensure retention and buy-in.

🧠 Quick Revision Questions

1. What are the six dimensions a communication plan for PMS must address?
2. Define the three types of personal biases that affect communication effectiveness.
3. Explain the difference between selective exposure and selective perception.
4. Why is it important to "strike first" when communicating a new PMS?
5. List four of the eight measures recommended to minimize the effect of personal biases in the communication plan.

📘 Lecture 27 — Appeal Process in PMS

📖 Overview: This lecture explains the appeal process within a Performance Management System (PMS), which provides a platform for employees to formally disagree with their performance ratings. It covers the types of issues that can be appealed (judgmental and administrative) and describes a two-level process for handling these appeals, emphasizing the importance of fairness, impartiality, and clear procedures.

🗂️ Topics Covered

This lecture covers the purpose and importance of an appeal process in PMS, the two main types of rating issues (judgmental and administrative), and a detailed breakdown of the two-level appeal process. It specifically explains the role of the Human Resource Department at Level 1 as a mediator and the role of an Arbitrator or review panel at Level 2 for a final resolution.

📝 Lecture Summary

Issues addressed in appeal process

The lecture defines two distinct categories of rating issues that employees may raise in an appeal. These issues question either the fairness of the rating itself or the correct application of the rules.

Judgmental Issues: Judgmental issues question the validity of the ratings. The employee believes the assigned ratings do not truly represent their performance.

🔑 Definition — Judgmental Issues: A type of appeal in which the employee questions whether the performance rating accurately reflects their actual work performance.

Administrative Issues: These types of issue are raised when the complainant believes that rules, policies, and procedures were not followed properly while evaluating the performance.

🔑 Definition — Administrative Issues: A type of appeal in which the employee claims that the established rules, policies, or procedures of the performance management system were not correctly applied during their evaluation.

Steps in appeal process

The lecture outlines a two-level process for handling appeals, from initial review to a final binding decision.

Level 1 or Level A: An appeal filed for the first time is sent to the HR department.

🔑 Definition — Level 1 (Level A): The first stage of the appeal process where the employee’s formal disagreement is initially sent to the Human Resource (HR) department.

Role of Human Resource Department: The HR department serves as a mediator between the employee and the supervisor. It is well-positioned to judge whether policies and procedures were implemented correctly and has good information about various jobs, expected performance levels, and the performance of other employees within the unit or organization. The HR department gathers the necessary facts and brings them to the attention of either the rater (supervisor) or the ratee (subordinate) . The rater is encouraged to reconsider the decision that caused the appeal, while the complainant is explained why there have been no biases or violations.

🔑 Definition — Rater: The supervisor or manager who assigns the performance rating to the employee. 🔑 Definition — Ratee: The subordinate or employee who receives the performance rating.

Level 2 or Level B: If an appeal is not resolved successfully in Level 1, it is referred to Level 2. In Level 2, an outside and unbiased arbitrator makes a final and binding resolution.

🔑 Definition — Arbitrator: An impartial third party or panel, comprised of peers and managers, that reviews the case and makes a final, binding decision.

Role of Arbitrator: The arbitrator may consist of a panel of peers and managers. This panel reviews the case, asks questions, interviews witnesses, researches precedents, and reviews policy. The panel may also conduct voting to make the final decision. The voting by the panel can be considered in either of two ways: the vote represents the final decision, or the vote is forwarded to a high-level manager who takes the panel’s vote into consideration when making a final decision.

⭐ Key Takeaways

The appeal process is a critical mechanism for ensuring fairness and trust in a Performance Management System, providing employees a formal way to contest ratings. Two main types of appeals exist: judgmental issues (challenging the accuracy of the rating) and administrative issues (challenging the correct application of procedures). The process is structured in two levels: Level 1 involves the HR department acting as a mediator to resolve the dispute, and Level 2 involves an external arbitrator or panel for a final, binding decision if Level 1 fails. The core principle of the appeal process is that it must be open, fair, just, and impartial to be effective.

🧠 Quick Revision Questions

1. What is the primary purpose of an appeal process in a Performance Management System?
2. Explain the difference between a judgmental issue and an administrative issue in an appeal.
3. What is the main role of the Human Resource Department when an appeal is filed at Level 1?
4. What happens to an appeal if it is not successfully resolved at Level 1?
5. Describe the two possible ways a voting decision by an arbitrator panel can be used to make a final decision.

📘 Lecture 28 — Rater Training Programs

📖 Overview: This lecture explores the critical role of rater training in Performance Management Systems (PMS). It details the key dimensions that rater training should cover and describes five specific types of training programs designed to minimize rating errors, improve evaluation accuracy, and enhance rater confidence. Understanding these programs is essential for implementing a fair and effective performance appraisal process.

🗂️ Topics Covered

The lecture begins by outlining seven essential dimensions for rater training programs, ranging from general communication about PMS to specific skills like conducting appraisal interviews. It then delves into five distinct training types: Rater Error Training, Frame of Reference Training, Behavioral Observation Training, Self-leadership Training, and Self-Efficacy Training. For the last two, it also provides step-by-step guides on how to design such programs.

📝 Lecture Summary

RATER TRAINING PROGRAMS

To avoid the rating errors discussed in Lesson 25, raters must be properly trained. Training for evaluators should involve the following seven dimensions:

1. Reasons for implementing PMS
2. Information regarding appraisal form and system mechanics
3. Procedure to identify and rank job activities
4. Ability to observe, record, and evaluate performance
5. Technique to minimize rating errors
6. Ability to conduct an appraisal interview
7. Ability to train, counsel, and coach employees

Dimensions 1 and 2 are general and should be part of the organization's communication plan for all members. Dimensions 3, 4, and 5 are specific to raters and involve observing, recording, and evaluating performance. Dimensions 6 and 7 are also rater-specific, focusing on how to interact with employees during feedback.

Types of Rater Trainings

Based on these dimensions, different training programs are designed for raters:

1. Rater Error Training
2. Frame of Reference Training
3. Behavioral Observation Training
4. Self-leadership Training
5. Self-efficacy Training

Rater Error Training

This training aims to make raters aware of probable, especially unintentional, rating errors and to help them develop strategies to minimize these errors. The program includes descriptions of common errors, explanations of their causes, and suggestions for avoidance. It can minimize, but not completely eliminate, the likelihood of these errors. 💡 Why this matters: This is a foundational training that protects the system from common biases and ensures a baseline level of fairness.

🔑 Definition — Rater Error Training: A training program designed to make raters aware of common rating errors and to assist them in developing strategies to minimize these errors.

Frame of Reference Training

This training educates raters about the performance dimensions to be evaluated. Raters are given complete information about job descriptions and dimensions. A clear understanding of evaluation scales (e.g., good, satisfactory, poor) provides a common frame of reference to accurately evaluate employees in similar roles. This training is relatively time-consuming but ensures accurate performance evaluations, which helps in designing employee development programs based on actual performance discrepancies.

🔑 Definition — Frame of Reference Training: A training program that provides raters with a common understanding of performance standards and evaluation scales to ensure consistent and accurate performance evaluations across similar jobs.

Behavioral Observation Training

The focus of this training is to improve a rater’s skills in observing, storing, recalling, and using performance information. It includes lessons on using observational aids like notes and diaries to record observed behaviors and critical incidents. These practices allow raters to keep a record of observations to justify performance ratings.

🔑 Definition — Behavioral Observation Training: A training program focused on improving a rater’s ability to systematically observe, record, and recall specific employee behaviors and performance incidents.

Self-leadership Training

This training is designed to improve a rater’s confidence in their ability to manage performance. It involves positive self-talk, mental imagery, and positive beliefs and thought patterns that may lead to more accurate evaluations. This training encourages self-direction, self-motivation, and confidence by emphasizing intrinsic sources of behavioral standards.

Designing Self-Leadership Training Program: The following steps are followed:

1. Observe and record existing beliefs, assumptions, self-talk, and mental imagery patterns.
2. Analyze the functionality and constructiveness of these patterns.
3. Identify and develop more functional and constructive beliefs and mental images.
4. Substitute the more functional thinking for dysfunctional thoughts in actual situations.
5. Continue monitoring and maintaining these positive patterns over time.

🔑 Definition — Self-leadership Training: A training program designed to improve a rater’s confidence and self-efficacy in managing performance by encouraging positive self-talk, mental imagery, and constructive thought patterns.

Self-Efficacy Training

Similar to self-leadership training, its major objective is to decrease a rater’s discomfort with the interpersonal demands of the PMS and to inculcate the belief that they have the necessary skills to manage performance.

Designing Self-Efficacy Training Program: The following steps are followed:

1. Raters watch a videotape of various success experiences, including a manager conducting a successful review meeting.
2. Raters engage in a follow-up discussion about specific behaviors observed in the videotape that contributed to success.
3. Raters participate in a role-play exercise that requires providing feedback to an employee.

This role-play is repeated until raters demonstrate an appropriate level of mastery.

🔑 Definition — Self-Efficacy Training: A training program designed to decrease a rater’s discomfort with the interpersonal demands of performance management and to build their confidence in their ability to provide effective performance feedback.

⭐ Key Takeaways

Rater training is not a single event but a multi-faceted process designed to equip evaluators with different, critical skills. The seven training dimensions highlight that training must cover everything from the system’s purpose to interpersonal communication. The five specific training types each target a distinct problem: Rater Error Training reduces bias, Frame of Reference Training ensures consistency, Behavioral Observation Training improves evidence gathering, and both Self-leadership and Self-Efficacy Training build rater confidence and reduce discomfort with giving feedback. Choosing the right combination of these trainings is key to a successful PMS.

🧠 Quick Revision Questions

1. What are the seven key dimensions that should be included in a comprehensive rater training program?
2. Which type of rater training is specifically designed to provide a common frame of reference for evaluating employees in similar jobs?
3. What is the primary focus of Behavioral Observation Training, and what tools does it recommend?
4. Describe the difference between Self-leadership Training and Self-Efficacy Training.
5. List the five steps involved in designing a Self-Leadership Training Program.

📘 Lecture 29 — Pilot Testing of PMS

📖 Overview: This lecture discusses the process and advantages of pilot testing a performance management system (PMS) before its full launch. It emphasizes the importance of identifying and correcting flaws early to ensure system credibility and user acceptance.

🗂️ Topics Covered

The lecture covers the process of pilot testing a PMS, including formal meetings, data collection, and feedback communication, while ensuring evaluations are not included in employee files. It also outlines the advantages of pilot testing, such as early flaw identification, user feedback collection, early acceptance through champions, and higher user acceptance due to stakeholder involvement.

📝 Lecture Summary

PILOT TESTING OF PMS

Once the Performance Management System (PMS) is completely developed and ready to implement, it is suggested to pilot test it prior to its final launch. This is done to analyze the proper functioning of the system and identify the loopholes and errors at the very initial stage.

Process of Pilot Testing of PMS

While pilot testing the PMS, every activity of PMS is conducted properly and formally, including formal meetings between supervisors and employees, collection of performance data, designing employee development plans, and communicating the performance feedback to employees. It is ensured that evaluations obtained during pilot testing are not included in the employee performance files. During the whole procedure, all the participants (managers, supervisors, and employees) of pilot testing maintain records of issues encountered and discrepancies identified.

Advantages of Pilot Testing

Pilot testing is preferred due to the prospective advantages attached with it, which are as follows:

1. Allows for identification and early correction of flaws: It can provide huge savings by timely identifying the flaws and errors. It also helps in identifying problems before they become irreversible and the credibility of the system will be ruined permanently.
2. Allows management to gain information from the perspective of the system’s users on/to: – How well the system works. – Any difficulties or unforeseen obstacles. – Collect recommendations on how to improve all aspects of the system. – Understand personal reactions to the system.
3. Pilot testing helps achieve early acceptance from a small group who can act as champions for the PMS rather than putting a burden on the HR department to sell the idea.
4. End users are likely to have a higher system acceptance rate, knowing that stakeholders helped with its design, and it was not created by the HR department alone.

💡 Why this matters: Pilot testing ensures the PMS is user-friendly and effective before full implementation, preventing costly errors and building trust among employees.

⭐ Key Takeaways

Pilot testing is a critical step before fully launching a PMS, as it allows for early detection and correction of flaws, saving time and resources. It provides valuable user feedback on system functionality, obstacles, and improvement recommendations. Involving a small group of users as champions facilitates early acceptance and reduces HR’s burden. Finally, stakeholder involvement in design increases end-user acceptance, as the system is seen as collaborative rather than imposed by HR alone.

🧠 Quick Revision Questions

1. What is the primary purpose of pilot testing a Performance Management System (PMS)?
2. List three activities that are conducted formally during the pilot testing process.
3. Why is it important that evaluations from pilot testing are not included in employee performance files?
4. How can pilot testing help in achieving early acceptance of the PMS?
5. Explain one advantage of pilot testing related to gaining information from system users.

📘 Lecture 30 — Personal Development Plans (PDPs)

📖 Overview: This lecture focuses on Personal Development Plans (PDPs) designed to improve employee performance after a Performance Management System (PMS) is developed. It explains the objectives of such plans, the types of developmental activities available, and how they support continuous learning, performance improvement, and career advancement.

🗂️ Topics Covered

This lecture covers the definition and purpose of Personal Development Plans (PDPs), their key characteristics, and the specific objectives they serve: improving current performance, sustaining performance, preparing for advancement, and enriching work experience. It then details various developmental activities including on-the-job training, courses, self-guided reading, mentoring, attending conferences, obtaining degrees, job rotation, and temporary assignments.

📝 Lecture Summary

Personal Development Plans (PDPs)

Plans specially designed for the personal development of employees, created once the PMS is completely developed and ready to implement. It is suggested to pilot test the system prior to its final launch to analyze proper functioning and identify loopholes and errors at the initial stage.

• Specify courses of action to improve performance.
• Allow employees to answer: How can I continually learn and grow? How can I do better? How can I avoid past performance problems?
• Achieving goals allows employees to keep abreast of changes in their field.
• Can be created for every job (entry level to executive).
• Should focus on knowledge and skills.
• There is always room for improvement.
• Can be designed based on each of the performance dimensions evaluated.

Objectives of Developmental Plans

• To encourage continuous learning, performance improvement, and personal growth.
• To improve performance in current job: Help employees meet performance standards; include suggested course of action to address each deficient performance dimension.
• To sustain performance in current job: Provide tools to continue meeting and exceeding expectations; include suggestions for each performance dimension in the appraisal form.
• To prepare employees for advancement: Include advice and course of action for future opportunities and career advancement; indicate new competencies and behaviors needed.
• To enrich the employee’s work experience: Provide opportunities for growth and learning new skills; these offer intrinsic rewards and a more challenging work experience; make jobs more attractive and serve as a powerful employee retention tool; new skills can be useful for lateral transfers.

Developmental Activities

On-the-job training: Employees are paired with a coworker or supervisor who designs a formal on-the-job training course, including a time frame and specific learning objectives.

Courses: Large organizations (e.g., McDonald's, Motorola) offer in-house courses at corporate units. Some organizations provide tuition reimbursement. Employees can choose from online courses.

Self-guided reading: Employees read books and study resources independently. It is important to set an objective regarding what will be read, the time frame, and the measure to assess learning.

Mentoring: A one-on-one relationship between a senior (mentor) and junior (protégé) employee. Allows mentor and protégé to choose each other. Mentors serve as role models and teach protégés to be successful and gain targeted skills.

Attending a conference: Sponsor attendance at conferences, trade shows, or workshops. The employee should provide a written report or presentation upon returning, making it easier to assess learning and share knowledge.

Getting a degree: Some organizations provide tuition reimbursement for employees to obtain additional degrees or certifications.

Job rotation: Temporarily assign employees a different job (e.g., medical residents rotate across specialty areas for several months).

Temporary assignments: A less systematic rotation system providing an opportunity to work on a challenging temporary assignment. Employees gain specific skills within a limited time frame.

⭐ Key Takeaways

Personal Development Plans (PDPs) are systematic tools designed to improve, sustain, and enrich employee performance after a PMS is developed. They are tailored to each job and focus on knowledge, skills, and performance dimensions. The five core objectives—improving, sustaining, preparing for advancement, enriching work experience, and encouraging continuous learning—guide all developmental activities. Key activities include on-the-job training, mentoring, courses, self-guided reading, conferences, degrees, job rotation, and temporary assignments. For any activity, setting clear objectives, time frames, and assessment measures is crucial for effectiveness.

🧠 Quick Revision Questions

1. What is the primary purpose of pilot testing a Performance Management System before its final launch?
2. List the five objectives of Personal Development Plans as described in the lecture.
3. How does mentoring differ from on-the-job training in terms of the relationship and long-term goals?
4. Why is it important for an employee attending a conference to provide a written report or presentation upon returning?
5. What are the key components that should be defined when designing a self-guided reading activity?

📘 Lecture 31 — 360 Degree Feedback System

📖 Overview: This lecture explores the 360-degree feedback system, a preferred tool for gathering performance information from all individuals around an employee. It discusses the system's purpose for developmental improvement, the online implementation process, key contents of effective feedback forms, and the Check Point system for evaluating competencies.

🗂️ Topics Covered

This lecture covers the definition and purpose of the 360-degree feedback system, including gap analysis between self-perceptions and others' perceptions. It details the online 360-degree feedback process steps and additional features like online training for raters and virtual feedback coaches. The lecture also examines the contents of effective 360-degree feedback forms through critical questions and introduces the Check Point system for assessing competencies such as communication, leadership, and adaptability.

📝 Lecture Summary

360 degree Feedback System

The 360 degree Feedback System is a preferred tool for helping supervisors to improve performance by gathering information from individuals all around the employee/ratee. Information is collected anonymously to minimize rating inflation. In this system, employees also rate themselves. Gap analysis is conducted to examine areas where there are discrepancies between self-perceptions and perceptions of others. For example: A study of 2000 managers showed that objectives included in PDPs (Personal Development Plans) were driven by performance dimensions that received low scores in 360-degree feedback systems. The 360 degree Feedback System is most helpful when it is used for developmental and not for administrative purposes.

🔑 Definition — 360 degree Feedback System: A tool that gathers performance information anonymously from individuals all around the employee (supervisors, peers, subordinates, and self) to help improve performance and identify gaps between self-perception and others' perceptions. 📌 Example: A study of 2000 managers found that objectives in PDPs were driven by performance dimensions that received low scores in 360-degree feedback systems. 💡 Why this matters: Using 360-degree feedback for development rather than administrative decisions (like pay or promotions) encourages honest feedback and genuine self-improvement.

Online 360-Degree Feedback

One of the major benefits of this system is that it minimizes paperwork as well as the time to collect data for this feedback.

Major steps involved in this online 360-feedback system are:

• Step 1: Service provider (usually outside consulting firm) sends an email with instructions and time frames for assessment of each employee to be rated.
• Step 2: Employees can access a secure Website, enter personal ID and passwords, and create individual list of raters who will be asked to provide feedback about their performance.
• Step 3: Appointed raters are asked to visit the website and provide performance feedback within a certain time period.

🔑 Definition — Online 360-degree Feedback: A digital system that minimizes paperwork and data collection time by using secure websites, personal IDs, and email instructions to collect anonymous performance feedback.

Additional features of online system

Some additional features help us understand this system even better. This system provides online training for raters on how to complete feedback forms in helpful and constructive ways. Moreover, it allows the detection of certain rating errors. Another feature of the 360-feedback online system is that it includes an online virtual feedback coach to help create developmental plans.

🔑 Definition — Online virtual feedback coach: A feature of the online 360-degree feedback system that helps employees create personalized developmental plans based on feedback received.

Contents of effective 360-Degree Feedback form

When we look at the major contents of the 360-Degree Feedback form, the following questions come to mind:

1. Are decisions made about rewards and promotion fairly free of favoritism?
2. Are decisions made that take into account the input of people affected by such decisions?
3. Do people from different departments usually cooperate with each other and help each other?
4. Is there little or no fear of speaking up?
5. Do people believe that their peers and subordinates can provide valuable information about their performance?
6. Are employees trusted to get the job done?
7. Do people want to improve their performance?

💡 Why this matters: These questions assess the organizational culture's readiness for 360-degree feedback — if there is fear, distrust, or favoritism, the feedback collected may be unreliable.

Check Point System

The Check Point system includes information on the following competencies:

• Communication (listens to others, processes information, and communicates effectively).
• Leadership (instills trust, provides direction, delegates responsibility).
• Adaptability (adjusts to circumstances, thinks creatively).
• Relationships (builds interpersonal relationships, facilitates team success).
• Task Management (works efficiently, works competently).
• Production (takes action, achieves results).
• Development of others (cultivates individual talent, motivates successfully).
• Personal Development (displays commitment, seeks improvement).

🔑 Definition — Check Point system: A framework for evaluating performance based on eight specific competencies: Communication, Leadership, Adaptability, Relationships, Task Management, Production, Development of Others, and Personal Development.

⭐ Key Takeaways

The 360-degree feedback system is a developmental tool that gathers anonymous feedback from multiple sources (supervisors, peers, subordinates, and self) to identify gaps between self-perception and others' perceptions. It is most effective when used for developmental purposes rather than administrative decisions like pay or promotions. The online version minimizes paperwork and time through secure websites, email instructions, and features like rater training, error detection, and virtual coaching. Effective feedback forms must address key cultural questions about fairness, trust, cooperation, and willingness to improve. Finally, the Check Point system provides a structured way to assess eight core competencies including communication, leadership, adaptability, and personal development.

🧠 Quick Revision Questions

1. What is the primary purpose of using a 360-degree feedback system, and why should it not be used for administrative purposes?
2. List the three major steps involved in implementing an online 360-degree feedback system.
3. What are three additional features of the online 360-degree feedback system that enhance its effectiveness?
4. Name four of the seven questions that should be considered when designing an effective 360-degree feedback form.
5. What are the eight competencies evaluated in the Check Point system?

📘 Lecture 32 — 360 DEGREE FEEDBACK SYSTEM Cont’d

📖 Overview: This lecture continues the discussion on the 360-degree feedback system, focusing on perceptions as operational realities and how performance management systems (PMS) function in different organizational environments. It outlines the advantages and associated risks of this feedback method, along with key factors that enhance its effectiveness in practice.

🗂️ Topics Covered

The lecture covers the 360-degree feedback system’s role in perception-based and conflict-based management environments, its specific advantages such as reducing biases and improving performance, associated risks including negative feedback and user acceptance challenges, and a detailed list of factors that enhance the system’s effectiveness, such as anonymity and training.

📝 Lecture Summary

360-Degree Feedback System

Perceptions are often termed as the operational realities, and the 360-Degree Feedback system makes you learn about these perceptions. In a perception-based social and administrative system, a Performance Management System (PMS) will sensitize employees and raters in one direction. It also assists employees to move or work in one particular direction. While encountering a conflict-based management environment, PMS works best. In slightly different situations where a consensus-based social environment prevails in an organization, then the PMS will perform the best. And perhaps there is a need for an elaborated PMS.

Advantages of 360-Degree Feedback System

In an organizational setup, the 360-degree feedback system has several advantages:

1. Decreased possibility of biases.
2. Increased awareness of expectations.
3. Increased commitment to improve.
4. Improved self-perceptions of performance.
5. Improved performance.
6. Reduced “un-discussable” issues.
7. Enable employees to take control of their careers.

Associated Risks

Along with all the advantages, certain risks are also associated with this technique. Negative feedback can hurt an employee’s feelings. If those giving feedback don’t offer their comments in a constructive way, then this practice can create negative feelings among employees. One challenging situation occurs about user acceptance, as it is an important determinant of the system’s success. The system is likely to produce positive results only if individuals feel comfortable with the system and believe they will be rated honestly and treated fairly. When very few raters provide information, it may be easy for the employee being rated to identify the raters. A limited number of raters may cause the existing ones to be overloaded with forms to fill out because they need to provide information on so many individuals (peers, superiors, subordinates).

Factors enhancing effectiveness

The following important factors need to be considered while evaluating the effectiveness of a 360-degree feedback system:

• Companies that have success with these programs tend to be open to learning and willing to experiment.
• Led by executives who are directed about the expected benefits as well as the challenges.
• Laying oneself open to praise and criticism from all directions and inviting others to do the same.
• Maintain anonymity.
• Interpretation of Feedback.
• Follow-up in response to feedback.
• Use for developmental purposes only.
• Avoidance of survey fatigue.
• Emphasis on behavior.
• Raters go beyond ratings by providing additional comments.
• Raters should be trained.

⭐ Key Takeaways

The 360-degree feedback system is a tool that reveals perceptions, which are considered operational realities, and it works best in conflict-based environments but also suits consensus-based settings with an elaborated PMS. Key advantages include decreasing biases and improving performance, but risks such as negative feedback hurting feelings and challenges with user acceptance and rater anonymity must be managed. For the system to be effective, openness to learning, executive leadership, anonymity, proper interpretation and follow-up, developmental use, and trained raters are critical.

🧠 Quick Revision Questions

1. According to this lecture, what is often termed as "operational realities"?
2. In which type of management environment does a Performance Management System (PMS) work best?
3. List three advantages of a 360-degree feedback system mentioned in the lecture.
4. What is a major risk associated with negative feedback in this system?
5. Why is it important to maintain anonymity when using a 360-degree feedback system?

📘 Lecture 33 — Coaching Styles and Processes

📖 Overview: This lecture introduces coaching as a collaborative, ongoing process between managers and employees aimed at improving performance. It covers the four core principles of successful coaching, the major functions coaches perform, ideal coaching behaviors, and a self-assessment questionnaire for coaches to evaluate their effectiveness.

🗂️ Topics Covered

The lecture begins by defining coaching and its role in performance management, then explains four foundational principles of successful coaching. It proceeds to list and describe the major functions of coaching, such as guiding, supporting, and providing feedback. Next, it outlines seven ideal behaviors that coaches should exhibit, and concludes with "The Good Coach Questionnaire," a set of eight reflective questions for coaches to assess their own practices.

📝 Lecture Summary

Coaching – Definition and Context

Coaching is a collaborative, ongoing process in which a manager interacts with employees and takes an active role and interest in their performance. It involves observing performance, directing employees toward the right paths, motivating and complementing quality work, and rewarding positive and productive behavior. Coaching also assists in correcting performance that does not meet expectations and is concerned with long-term performance and the accomplishment of developmental plans. A successful coach must establish a helpful and trusting relationship, as coaching is a pervasive organizational activity.

Four Principles of Successful Coaching

1. A healthy coaching relationship is essential. The coach-employee relationship must be based on mutual trust and a collaborative environment. Collective trust of all stakeholders is necessary. Interests of both coach and employees must be aligned, and the coach should view the job and organization from the employee’s perspective. The manager should coach with tolerance, empathy, and compassion.
2. The employee is a source and director of change. The purpose of coaching is to change the employee's future behavior if needed. The coach acts as a facilitator, helping employees set their own goals, agenda, and direction.
3. Each and every employee is whole and unique. Coaches must realize each employee is distinctive, with multiple effective job-related and job-unrelated identities and a unique personal history. Employees should not be evaluated on just a few traits; the coach must create a complete picture of the employee, evaluating them on every relevant competency.
4. The coach must act as a facilitator for employee growth. The coach directs the process but should not control it. The coach must develop an attitude of exploration in themselves and the employee. A good coach teaches the employee to be aware of their own strengths, realize their resources, and prepare for future challenges. The coach should also facilitate goal setting and help align personal goals with organizational goals.

Major Functions of Coaching

Major functions include guiding employees to improve personal and team performance, providing guidance on knowledge and skills development, and offering support so employees feel confident enough to seek help. Coaches enable employees to enhance their performance continuously and increase their sense of responsibility for managing their own performance. They provide positive feedback and feedback on areas for improvement. Finally, they help employees gain greater competence to prepare for upcoming challenges and complex tasks, motivating employees for both short-term and long-term goals.

Ideal Behaviors of Coaches

Ideally, coaches must possess the following seven behaviors:

1. Establish developmental objectives: Work jointly with employees to create a developmental plan and its objectives.
2. Communicate effectively: Maintain regular and clear communication about performance, including results and behaviors.
3. Motivate employees: Reward positive performance.
4. Document performance: Gather and document evidence for both good and poor performance.
5. Give feedback: Praise good performance and point out substandard performance; help employees avoid poor performance in the future.
6. Diagnose performance problems: Determine whether deficiencies are due to lack of knowledge, skills, motivation, or situational factors beyond the employee’s control; provide resources and address contextual issues.
7. Develop employees: Provide financial support and resources for development; help employees plan for the future and give them challenging assignments to force them to learn new things.

💡 Why this matters: These seven behaviors provide a concrete, actionable checklist for any manager to transform from a simple supervisor into an effective coach.

The Good Coach Questionnaire

An ideal coach must honestly answer the following questions about their own practice:

1. Do you listen to your employees?
2. Do you understand the individual needs of your employees?
3. Do you encourage employees to express their feelings openly?
4. Do you provide your employees with tangible and intangible support for development?
5. Do your employees know your expectations about their performance?
6. Do you encourage open and honest discussions and problem solving?
7. Do you help your employees create action plans that will solve problems and create changes when needed?
8. Do you help your employees explore potential areas of growth and development?

⭐ Key Takeaways

For effective coaching, a manager must build a trusting and collaborative relationship where the employee is seen as a unique individual who is the director of their own change, with the coach acting only as a facilitator. The coach’s core functions are to guide, support, provide feedback, and help develop employee competence for both short and long-term goals. To be effective, a coach must practice seven key behaviors: establishing objectives, communicating, motivating, documenting, giving feedback, diagnosing problems, and developing employees. The Good Coach Questionnaire serves as a vital self-assessment tool for managers to reflect on whether they truly listen, understand needs, provide support, and encourage growth. Ultimately, a coach should teach employees to be self-aware and prepare them for future challenges without taking control of their development.

🧠 Quick Revision Questions

1. What are the four principles of successful coaching as described in the lecture?
2. What is the main difference between a coach acting as a "director" versus a "facilitator" of employee change?
3. According to the lecture, what are the seven ideal behaviors a coach must possess?
4. In the process of diagnosing performance problems, what specific categories of root causes must a coach investigate?
5. What is the purpose of "The Good Coach Questionnaire" and what is the first question a coach must ask themselves?

📘 Lecture 34 — Coaching Styles and Processes Cont’d

📖 Overview: This lecture explores the four primary coaching styles—Driver, Persuader, Amiable, and Analyzer—and examines their characteristics and effectiveness. It also details the five-step coaching process, with a particular focus on observing and documenting developmental behavior, including constraints and ways to address them.

🗂️ Topics Covered

The lecture covers four coaching styles: Driver, Persuader, Amiable, and Analyzer, comparing their assertiveness, communication patterns, and focus. It discusses why no single style is most effective and advocates for an adaptive approach. The five-step coaching process is introduced, with emphasis on the observation and documentation step, including its constraints (time, situational, activity) and solutions. Benefits and recommendations for constructive documentation are also provided.

📝 Lecture Summary

Coaching Styles

According to literature there are four basic coaching styles: Driver, Persuader, Amiable, and Analyzer.

1. Driver Major characteristics of this coaching style are: Assertive; speak quickly and often firmly; usually talk about tasks and facts; not very expressive; expose a narrow range of personal feelings to others.

2. Persuader Coach must educate employee about the benefits of a particular task for the organization, for the employee him/herself and to a customer. Characteristics: Assertive; use extensive gestures; talk more about people and relationships; expose others to a broad range of personal feelings.

3. Amiable Major characteristics of this coaching style are: Not very assertive; speak deliberately and pause often; seldom interrupt others; make many conditional statements; tends to be subjective rather than objective.

4. Analyzer Major characteristics of this coaching style are: Not very assertive; talk about tasks/facts rather than personal feelings; analyze information in a logical and systematic way; follow rules and procedures when providing a recommendation.

Which of the four styles is most effective?

When it comes to effectiveness, no style is necessarily superior to others. A good coaching should be perceived as one that provides a learning opportunity for the employees as well as an opportunity to set clear goals and delegate action. Coaching can involve all of the following at different times: providing direction; showing empathy and creating positive feelings; paying attention to rules and procedures.

It is recommended that a combination of styles is used; having an exclusive emphasis on just one style will not help employees develop and grow. Ineffective coaches stick to one style and don’t adapt to other styles. It is recommended that the coaches must act as adaptive coaches because these sorts of coaches are able to adjust their style according to employees’ needs and hence they are most effective than those who stick to one style only.

💡 Why this matters: Recognizing that no single coaching style is universally best allows managers to become more flexible and responsive to individual employee needs and situations.

Coaching Process

There are five basic steps in a coaching process:

1. Set developmental goals
2. Identify developmental resources and strategies
3. Implement strategies
4. Observe and document developmental behavior
5. Give feedback

(The lecture includes a figure showing this process as a cycle: Set developmental goals → Identify developmental resources and strategies → Implement strategies → Observe and document → Give feedback → back to Set developmental goals.)

Observing and Documenting of Developmental Behavior

It is important to document observations, descriptions, and evaluations by colleagues in terms of memos, letters, emails, handwritten notes, comments, etc.

Constraints:

• Time: Managers may be too busy to gather and document information of employee’s progress. Too much time may elapse between assignment of activity and the manager’s checking on employee’s progress.
• Situational: Managers are often unable to observe employees as they engage in developmental activities. They may not have firsthand knowledge about employee’s performance.
• Activity: In highly unstructured developmental activity (like reading a book) manager may have to wait until activity is completed to assess its benefits.

Ways to address Constraints: There are many ways to address time, situational and activity related constraints, some of them are as under:

1. A good communication plan is necessary.
2. Managers should be trained to: i. Minimize errors ii. Share notions of what it means to complete developmental activities successfully iii. Observe performance accurately iv. Be confident and comfortable in managing employee’s developmental activities
3. We need to understand the forces that motivate managers to invest time and effort in employee’s development.

Benefits of documenting employee’s developmental activities:

1. Minimize cognitive load
2. Create trust
3. Plans for future
4. Provide legal protection

Recommendations for Useful and Constructive Documentation:

1. Be specific
2. Use adjectives and adverbs sparingly
3. Balance positives with negatives
4. Focus on job related information
5. Be comprehensive
6. Standardize procedures
7. Describe observable behavior

💡 Why this matters: Systematic observation and documentation are crucial for accurate performance feedback, legal compliance, and building a foundation for future development planning.

⭐ Key Takeaways

Coaching effectiveness depends not on sticking to one style but on being an adaptive coach who adjusts the style (Driver, Persuader, Amiable, or Analyzer) to meet employee needs. The five-step coaching process (set goals, identify resources, implement, observe/document, give feedback) is a cycle, not a one-time event. Observation and documentation of developmental behavior face three key constraints—time, situational, and activity-related—which can be mitigated through communication plans and manager training. Documenting behavior provides crucial benefits including reducing cognitive load, building trust, supporting future planning, and offering legal protection. Effective documentation must be specific, job-related, balanced, and focused on observable behavior rather than subjective adjectives.

🧠 Quick Revision Questions

1. What are the four basic coaching styles described in the lecture, and what is the primary difference between a Driver and an Amiable coach?
2. Why is no single coaching style considered the most effective, and what characterizes an adaptive coach?
3. List the five steps of the coaching process in the correct order.
4. Identify the three constraints managers face when observing and documenting developmental behavior, and name one way to address each.
5. State four benefits of documenting employee’s developmental activities, and list three recommendations for making documentation constructive.

📘 Lecture 35 — Dynamics and Purposes of Feedback

📖 Overview: This lecture explores the critical role of feedback in performance management, distinguishing between positive and negative feedback and their respective impacts on employee performance. It emphasizes that feedback is not inherently beneficial; its effectiveness depends on how it is delivered and received, making the dynamics and best practices essential knowledge for managers.

🗂️ Topics Covered

The lecture begins by defining feedback and its purposes, then examines the dynamics that can make feedback either helpful or harmful. It lists key factors that improve feedback effectiveness, addresses the specific challenges of giving negative feedback, explains the dangerous "feedback gap" that arises when managers avoid negative evaluations, and concludes with the essential questions that effective feedback must answer.

📝 Lecture Summary

Giving Feedback

Providing feedback to an employee regarding his/her progress towards achieving goals is a key component of the coaching process. Feedback is defined as information about past behavior given with the goal of improving future performance. It includes information about positive and negative aspects of performance, and how well employees are meeting the established standards.

🔑 Definition — Feedback: Information about past behavior given with the goal of improving future performance; includes positive and negative aspects and how well employees meet established standards.

Purposes of Feedback

Feedback helps to build confidence among employees; it gives managers the idea to take care about their human resource. Positive and constructive feedback from managers helps to develop competence among employees. It clearly communicates about the desired performance & behaviors, and it enhances involvement of employees.

💡 Why this matters: Feedback is not just about telling employees how they did; it is a developmental tool that builds confidence, competence, and engagement when used properly.

Dynamics of Feedback

Presence of feedback does not mean that its purposes will be fulfilled. For example, 131 studies concluded that 38% of feedback programs reviewed had a negative effect on performance. Feedback can have detrimental effects if it focuses on the employee as a whole instead of specific behaviors at work. Feedback can cause self-doubt and questions about identity. The advantages of providing feedback generally outweigh the major disadvantages associated. Organizations nowadays seem to be stuck with chronic poor performance and their employees continue performing at substandard levels. Employees might develop incorrect perceptions of how their performance is regarded by others.

💡 Why this matters: This finding is crucial — feedback is not automatically good. Managers must be trained to deliver feedback that targets specific behaviors, not the person's identity, to avoid damaging effects.

Factors to Improve the Effect of Feedback

The factors that can contribute to the improvement in the effects of feedback are as follows:

• Timeliness — give feedback soon after the behavior
• Frequency — provide feedback regularly, not just once a year
• Specificity — be precise about what was done well or poorly
• Verifiability — use objective data that can be confirmed
• Consistency — apply the same standards to all employees
• Privacy — deliver sensitive feedback in private settings
• Consequences — explain what will happen based on performance
• Description first, evaluation second — describe what you observed before judging it
• Performance continuum — place feedback along a spectrum of performance levels
• Pattern identification — look for recurring behaviors over time
• Advice and idea generation — suggest solutions, not just problems
• Confidence in employee — show belief in the employee's ability to improve

💡 Why this matters: These factors transform feedback from a potentially harmful interaction into a constructive developmental tool. Following these guidelines reduces defensive reactions and increases the likelihood of behavior change.

Negative Feedback

Negative feedback may include the information that performance has fallen short of the acceptable standards. The question arises: why are managers uncomfortable in giving negative feedback? Answer: they want to avoid negative reactions and consequences; they may want to avoid their negative experiences in the past; another case can be that managers are reluctant to play the role of an all-knowing approach. While giving negative feedback, managers are going to need very strong, convincing, irrefutable, and conclusive evidence.

🔑 Definition — Negative Feedback: Information that performance has fallen short of acceptable standards, requiring strong evidence to deliver effectively.

Feedback Gap

It is now the general practice that managers avoid giving negative feedback while evaluating their employees, and employees avoid seeking it. Both employees and managers mutually instigate and reinforce lack of communication. This results in a serious feedback gap where the employee gets the message that their performance is adequate, but the situation is different, and over time performance problems get more intense.

The importance of giving negative feedback can be understood because early coaching has identified warning signs and the performance problem can be managed accordingly. Negative feedback actually clarifies unwanted behaviors and consequences and focuses on behaviors that can be changed. The manager is perceived to be trustworthy for making a genuine attempt to improve the employee's performance. Negative feedback is valuable if it uses straight talk and not subtle pressure, and is supported by hard data. Negative feedback is important but it needs to be handled very carefully — just as when it is necessary to give bad news, it is delivered in a tactful way so that the message is also received with minimum damage to the person receiving it.

💡 Why this matters: The feedback gap is a silent performance killer. Both parties avoid the difficult conversation, leading to worsening problems that could have been corrected early with honest, evidence-based negative feedback.

Feedback Should Provide Answers

An effective feedback must answer the following questions:

1. How is your job doing? Do you have what you need to do your job?
2. Are you adequately trained? Do you have skills and tools you need to do your job?
3. What can be done to improve you and your unit/organization/job/product/service?
4. How can you better serve your internal and external customers?

📌 Example: A manager giving feedback should ensure that the employee leaves the conversation knowing whether they have the necessary resources (question 1), whether their training is sufficient (question 2), what specific improvements are expected (question 3), and how to better meet customer needs (question 4).

⭐ Key Takeaways

Feedback is a double-edged sword — while it aims to improve future performance, research shows 38% of feedback programs actually harm performance, especially when feedback targets the person rather than specific behaviors. The effectiveness of feedback depends on twelve critical factors including timeliness, specificity, verifiability, privacy, and ensuring description precedes evaluation. Negative feedback is particularly challenging because managers avoid it to prevent negative reactions, yet this avoidance creates a dangerous "feedback gap" where employees think performance is adequate while problems intensify. To be effective, negative feedback must be supported by irrefutable evidence, delivered with straight talk, and focused on behaviors that can be changed. Finally, effective feedback must answer four essential questions about resources, training, improvements, and customer service to ensure employees leave with clear direction.

🧠 Quick Revision Questions

1. What is the definition of feedback according to this lecture, and what percentage of feedback programs were found to have a negative effect on performance?
2. List at least six of the twelve factors that can improve the effect of feedback.
3. Why are managers typically uncomfortable giving negative feedback, and what kind of evidence do they need to provide it effectively?
4. What is the "feedback gap," and how do both managers and employees contribute to it?
5. What four questions must effective feedback answer to be complete and useful for the employee?

📘 Lecture 36 — Performance Review Meetings

📖 Overview: This lecture focuses on Performance Review Meetings, a critical component of Performance Management Systems where employee performance is formally evaluated and discussed. It covers the types of review meetings, necessary prerequisites, the sequence of events during the meeting, and strategies for handling defensive employee behaviors, which are essential for conducting effective and constructive performance discussions.

🗂️ Topics Covered

This lecture begins by defining performance review meetings and their main objectives. It then lists six distinct types of performance review meetings. The discussion moves to necessary steps prior to the meeting, followed by the proper sequence of events within a meeting. Finally, the lecture identifies behavioral patterns indicating defensiveness and provides suggestions for dealing with such situations effectively.

📝 Lecture Summary

Performance Review meetings

Analyzing employee performance is a critical HR practice. Performance is primarily evaluated against the job description and the employee's contribution to organizational goals. The first step is to check if the employee is fulfilling their assigned duties as per their job description. If yes, the next step is to assess whether these duties are being performed effectively and efficiently. Finally, employees are rated on their contribution to achieving organizational goals. Performance review meetings are formal meetings conducted to discuss performance-related matters. Their main objective is to judge employee performance, identify problematic areas, and provide coaching to employees.

Types of performance review meetings

There are several types of performance review meetings, depending on the nature of the meeting:

1. IT System inauguration meeting
2. Self-appraisal meeting
3. Classical performance review meeting
4. Merit/salary review meeting
5. Development plan meeting
6. Objective setting meeting

Steps prior to meeting

For an effective and fruitful performance review meeting, certain prerequisites must be taken care of:

• Give the employee enough time to prepare for the meeting.
• Ensure there is sufficient time allocated for the meeting itself.
• Arrange to meet in a private location without interruptions.
• Communicate a clear message that the meeting and the Performance Management System (PMS) are important.

Sequence of events in performance review meeting

A fruitful performance review meeting must follow a proper sequence:

1. Start by explaining the purpose of the meeting so all members are clear before the discussion begins.
2. Conduct self-appraisal.
3. Share ratings and explain the rationale behind the performance assessment.
4. Discuss developmental aspects and define appropriate rewards for good performance.
5. Conduct follow-up meetings to ensure the reward was given and to review post-reward performance.
6. The purpose of follow-up meetings also includes reviewing the implementation of the results from the previous review.
7. After the design approval and appealing process, conduct a final recap.

Behavioral patterns that indicates defensiveness

An individual's behavior, particularly a fighting response, can predict whether they are being defensive or aggressive. According to human behavior experts, the best approach is to maintain a healthy balance between being aggressive and being defensive. Becoming aggressive is generally not good, and looking away or turning away is also not advisable.

Suggestion to deal

To effectively deal with defensiveness during a performance review, the following suggestions are offered:

• Develop rapport with the employee.
• Be empathetic to their situation.
• Observe verbal and non-verbal cues to understand their state of mind.

⭐ Key Takeaways

Performance review meetings are formal, structured events with clear objectives beyond just rating, including coaching and development. A successful meeting requires careful preparation, including allocating sufficient time and ensuring a private, interruption-free environment. The meeting must follow a logical sequence, starting with purpose clarification and ending with a final recap, while incorporating self-appraisal, rationale sharing, and follow-up. Managers must be skilled in recognizing defensive behaviors in employees and know how to respond by building rapport and showing empathy. The ultimate goal is a constructive dialogue that links performance evaluation to both developmental plans and appropriate rewards.

🧠 Quick Revision Questions

1. What are the two primary criteria against which employee performance is evaluated?
2. List any four of the six types of performance review meetings mentioned in the lecture.
3. What is the first step in the proper sequence of a performance review meeting?
4. Besides evaluating performance, what are the other two main objectives of a performance review meeting?
5. Name two suggestions given in the lecture for dealing with an employee who is showing signs of defensiveness.

📘 Lecture 37 — Pay Plans

📖 Overview: This lecture examines two fundamental types of pay plans—basic pay plans and contingent pay plans—and their impact on employee motivation, retention, and performance. Understanding these plans is crucial for designing compensation systems that align with organizational goals and cultural contexts.

🗂️ Topics Covered

The lecture covers basic pay plans based on hierarchal position, contingent pay plans based on performance, five specific types of contingent pay plans including piece rate, sales commissions, group incentives, profit-sharing, and skill-based pay. It also discusses major issues in pay plan implementation, such as rewarding undesired performance, employee dissatisfaction, manager accountability, and the balance between intrinsic and extrinsic rewards, along with key considerations for designing effective pay plans.

📝 Lecture Summary

Basic pay plan

Basic pay plan is normally based on job positions/hierarchal position rather than performance of the employees. Higher the hierarchal position of the employee, higher will be his pay package. In Pakistan, basic pay plan prevails in nearly all purely public sector organizations. In this pay plan, salary is indirectly linked with performance of the employee. Some private sector organizations have offered some of the allowances within this pay plan to create a direct link between pay and performance. Despite public and private sectors, this pay plan is mostly applicable in collective cultures.

Contingency Pay plan (CP plan)

Unlike the basic pay plan, contingency pay plans use the principle of “More performance more rewards.” It includes variable pay in addition to basic salary that is purely based on the achievement of certain performance standards. Here employees’ performance is dependent on their declarative knowledge, skills, abilities, and accomplishment of the organizational goal; all these factors are considered while rewarding employees. Contingency pay plan (CP plan) is mostly applicable in individualistic cultures.

There are certain benefits attached to this pay plan. It creates a direct link between performance and rewards. Employees are purely evaluated on the basis of their performance; even if they are seniors and they are not performing well, they will be rewarded less than the high performers. By adopting this practice, overall performance of all the employees is enhanced. It clarifies what is expected from employees and they must boost their performance for a handsome pay package. In this way, organizations attract and retain high achievers, which will improve motivation among employees.

Types of Contingency Pay plans (CP plan)

There are basically five types of Contingency Pay plans:

• Piece rate: based on items produced during production
• Sales commissions: based on sales made
• Group incentives: based on group achievement as a collective effort
• Profit-sharing: company’s profit is shared among the participant-employees
• Skill based: based on the skills acquired

Issues in Pay plans

Major issues related to pay plans are issues related to Performance Management System (PMS) development and implementation. Rewarding an undesired aspect even if you as a manager don’t like this aspect of performance, but if it is contributing to the organization, you have to reward it. Another challenge that HR managers have to deal with is dissatisfaction of employees, as many a time offered increment seems to be insufficient for employees. Managers must be held accountable for appraising their employees; they have to take responsibility and justify why they have rated some employees low and some high. Managers must understand that rewards are not the only drivers of performance; they cannot entirely ignore the intrinsic rewards with extrinsic rewards. Inappropriate rewards distribution among employees is another challenge that needs to be dealt with. As businesses are now gone global and organizations need to rethink their strategies and revisit their plans, the management has to accept the regional based differences and plan and act according to the ground realities of that particular region.

💡 Why this matters: These issues directly impact the fairness, effectiveness, and acceptance of any pay plan, ultimately affecting employee morale and organizational performance.

Considerations while designing pay plans

While designing pay plans, the following aspects must be considered by HR managers:

• Hardships of location
• Organizational as well as regional culture
• Clearly defined rules & regulations
• Well described organizational expectation

⭐ Key Takeaways

The two primary pay plans are basic pay plans (tied to hierarchal position, common in public sector and collective cultures) and contingent pay plans (tied to performance, common in individualistic cultures). Contingent pay plans include five types: piece rate, sales commissions, group incentives, profit-sharing, and skill-based pay. Key issues in implementing pay plans include rewarding undesired performance, employee dissatisfaction with increments, manager accountability for ratings, balancing intrinsic and extrinsic rewards, and addressing inappropriate rewards distribution. When designing pay plans, organizations must consider location hardships, culture, clear rules, and well-described expectations to ensure effectiveness and fairness.

🧠 Quick Revision Questions

1. What is the fundamental difference between a basic pay plan and a contingent pay plan in terms of how pay is determined?
2. Name the five specific types of contingent pay plans discussed in the lecture.
3. Why must managers be held accountable for appraising their employees under contingent pay plans?
4. List at least three major issues that arise in performance management system development and implementation related to pay plans.
5. What four key considerations should HR managers keep in mind when designing pay plans?

📘 Lecture 38 — Pay Structures

📖 Overview: This lecture examines the components of pay structures, distinguishing between financial and non-financial rewards and their roles in employee motivation. It explains why organizations must carefully design pay structures tailored to job specifics, as a one-size-fits-all approach fails to reward employees fairly.

🗂️ Topics Covered

The lecture introduces pay structures as comprising financial and non-financial rewards. It details types of financial rewards (basic salary, incentives, fringe benefits) and non-financial rewards (recognition, challenging work, flexible time, development opportunities). Finally, it discusses considerations for designing pay structures, emphasizing job nature, significance, difficulty, and required KSA.

📝 Lecture Summary

Pay Structure

Pay structure varies from organization to organization, but when we look at it comprises of:

1. Financial rewards
2. Non-financial rewards

Financial rewards

Financial rewards are the monetary incentives that an employee earns as a result of his/her good performance. Various types of financial rewards that are given to the employees of different organizations are given below.

🔑 Definition — Financial rewards: monetary incentives earned as a result of good performance.

Types:

• Basic salary: amount paid to an employee before any extras are added or taken off
• Incentives: paid for specific performance results rather than simply for time worked
• Fringe benefits: on-wage compensation provided to employees in addition to their normal wages or salaries being a member of organization

Non-financial rewards

Unlike financial rewards, non-financial rewards are non-monetary rewards that are primarily focused on employees’ variety of needs like recognition, achievement, responsibility, autonomy, influence, and personal growth etc. Some employees are motivated only by financial rewards but some employees need something more than monetary rewards. These are the personalities that are motivated only when they are recognized by the organization, when their immediate supervisor gives them autonomy by trusting on their abilities. Despite of financial rewards they prefer to have growth opportunities more and they attach their loyalty with those organizations which could offer them more developmental opportunities. So non-financial rewards are also very important and cannot be ignored.

🔑 Definition — Non-financial rewards: non-monetary rewards focused on needs like recognition, achievement, responsibility, autonomy, influence, and personal growth.

Major types of non-financial rewards are as follows:

• Recognition
• Challenging work
• Leisure time for social bonding
• Flexible time
• Development opportunities
• Promotion/increased autonomy

💡 Why this matters: Not all employees are motivated by money alone. Non-financial rewards like autonomy and growth opportunities can build stronger loyalty and engagement, especially for knowledge workers.

Considerations while design pay structures

As described in earlier, financial as well as non-financial rewards both mandatory and helpful for the organizations in their own way. But who will define which pay structure is better for the organization? There is not necessary that the pay design that is effective in one organization would be fruitful for the other organization as well. Mangers have to look at the dynamics of their own organization, they have to look at the job nature of their workforce, make changes in the pay design where there is a slight change in the job requirements. Difficulty level of each and every job is different, need of knowledge skills and abilities (KSA) are different, sensitivity of each job is different, so it is required that pay structure of each job would also be different. If managers will stick to a single pay structure for every job it would not be justified and employees would not be rewarded as they must be.

So following points must be taken care of while designing appropriate pay structure:

• Job nature
• Job significance
• Difficulty level
• KSA required to perform a job

💡 Why this matters: A uniform pay structure across all jobs ignores differences in skill requirements, risk, and complexity, leading to unfair compensation and demotivation.

⭐ Key Takeaways

(1) A pay structure includes both financial rewards (basic salary, incentives, fringe benefits) and non-financial rewards (recognition, challenging work, flexible time, development opportunities). (2) Non-financial rewards are crucial because some employees value recognition, autonomy, and growth more than monetary compensation. (3) Pay structures must be customized for each job based on its nature, significance, difficulty level, and KSA requirements. (4) A single pay structure for all jobs is unjust and fails to reward employees appropriately. (5) Managers must analyze their organization’s specific job dynamics rather than copying another firm’s pay design.

🧠 Quick Revision Questions

1. What are the two main components of a pay structure according to this lecture?
2. Name three types of financial rewards and three types of non-financial rewards.
3. Why might some employees be more motivated by non-financial rewards than by financial ones?
4. What four considerations must managers take into account when designing a pay structure?
5. Why is it problematic to use a single pay structure for all jobs in an organization?

📘 Lecture 39 — Laws Affecting Performance Management

📖 Overview: This lecture explores the legal principles that govern performance management systems (PMS) within organizations. It explains why organizations must design PMS in compliance with legal standards to avoid lawsuits, and outlines the characteristics of a legally sound performance management system.

🗂️ Topics Covered

The lecture covers six key legal principles affecting PMS: employment at will, negligence, defamation, misrepresentation, adverse impact of unintentional discrimination, and illegal discrimination. It then discusses the essential characteristics of a legally sound performance management system, including clearly defined standards, uniform procedures, timely feedback, appeal processes, and proper rater training.

📝 Lecture Summary

Legal principles affecting PMS

Performance management system is not just confined to the boundaries of the organization; it is also answerable by law. While designing PMS, managers must very strictly follow that their organization may not fall victim of any legal action due to noncompliance of any legal principle.

🔑 Definition — Employment at will: The company or the employee can terminate the employment relationship at any time, with or without cause, with or without notice. These clauses must be written and communicated to the employees in prior.

🔑 Definition — Negligence: On part of either employee or employer, negligence is not acceptable. Fail to fulfill the job responsibilities is an act of negligence from employee's perspective. If PMS is not applied in the manner it was expected, negligence is occurred on part of employer.

🔑 Definition — Defamation: Damaged reputation when a legal suit is filed against a particular organization and/or individual.

🔑 Definition — Misrepresentation: Showing incorrect or incomplete information about performance, ratee or system enhances risks and conflicts. E.g., information provided through references.

🔑 Definition — Adverse impact of unintentional discrimination: Unintentional discrimination leads to legal obligations and creates an adverse impact. For instance, differences in pay structures of females & males or rate of promotions among males and females are mostly biased unintentionally.

🔑 Definition — Illegal discrimination: Act of violating employee's rights based on religion, race, color, creed, national origin, sex, marital status, disability, age, sexual orientation or family status.

Characteristics of legally sound PMS

These are some of the characteristics of legally sound PMS; managers must insure that these characteristics are the part of their performance management system:

1. Clearly defined and communicated performance standards.
2. Set performance standards should be job related and realistic to attain.
3. Uniform and standardized procedures for every employee.
4. Timely feedback to employees on performance deficiencies.
5. Feedback from the employee should also be considered while setting PMS.
6. PMS system should include an appeal process.
7. Information regarding performance should be gathered from multiple sources to control biased, inaccurate and incomplete information.
8. Raters & supervisors should be properly trained to rate the employee performance.
9. Thorough and consistent documentation of firsthand knowledge.
10. Include procedures to detect potential discrimination or biases within the system.

💡 Why this matters: A legally sound PMS protects both the organization and its employees. Without these characteristics, organizations risk lawsuits for discrimination, defamation, negligence, or misrepresentation. Every manager must ensure these ten features are integrated into their PMS to create a fair, defensible, and effective system.

⭐ Key Takeaways

Students must remember the six legal principles that can expose an organization to legal action: employment at will, negligence, defamation, misrepresentation, adverse impact of unintentional discrimination, and illegal discrimination. The ten characteristics of a legally sound PMS are critical for exam — especially that performance standards must be job-related and realistic, procedures must be uniform, feedback must be timely, an appeal process must exist, raters must be trained, documentation must be thorough, and the system must detect potential discrimination or biases.

🧠 Quick Revision Questions

1. What is the difference between adverse impact of unintentional discrimination and illegal discrimination?
2. Name the six legal principles affecting performance management systems.
3. What does "employment at will" mean, and what must organizations do to enforce it?
4. List four of the ten characteristics of a legally sound PMS.
5. Why is it important to gather performance information from multiple sources?

📘 Lecture 40 — TEAM PERFORMANCE

📖 Overview: This lecture introduces the concept of teams in modern organizations, explaining their importance, types, and the crucial relationship between teamwork and performance management systems. It emphasizes that effective team performance requires shifting from purely individual rewards to a combination of team-based and individual contributions, while outlining the specific goals of a team’s performance management system.

🗂️ Topics Covered

This lecture begins by defining a team and the synergy it creates, highlighting its importance for problem-solving, innovation, decision-making, and motivation. It then explores the critical relationship between teamwork and the performance management system (PMS), stressing the need for rewards that balance team output with individual contributions. The lecture categorizes seven types of teams—including work, project, network, and virtual teams—and concludes by listing the key goals of a team’s performance management system, such as strategic, administrative, informational, and developmental objectives.

📝 Lecture Summary

Team

In the modern competitive world, the majority of organizational tasks are performed in teams. A team is formed when two or more individuals work together on a common goal, sharing a strong sense of mutual commitment that leads to synergy. Synergy means that the combined performance of a team is greater than the sum of the performances of its individual members. While teamwork offers many advantages, it requires a great deal of tolerance and flexibility to achieve good results.

🔑 Definition — Team: Two or more individuals working together on a common goal, with a strong sense of mutual commitment that leads to synergy. 📐 Concept: Synergy → The combined performance of a team is greater than the sum of the performances of its individual members.

Importance of team

Due to teamwork, an organization can achieve multiple benefits, including more resources for problem solving, improved creativity and innovation, and improved quality of decision making. It also fosters greater commitments to tasks, increased motivation of members, and better control and work discipline. Additional benefits include more individual need satisfaction, the ability to handle increased work pressures, effective handling of complex tasks, and the promotion of flat organizational structures. Ultimately, teamwork helps in meeting organizational goals efficiently and responding to rapidly changing environments.

Relation between team and PMS

The relation between teamwork and the performance management system (PMS) is crucial when teamwork is encouraged within an organization. In such an environment, rewards must not be based solely on an individual basis; instead, rewards should be given based on team output plus the individual contribution of members in that team. Individual contribution must also be rewarded within the team, alongside the reward for overall team performance. 💡 Why this matters: This dual-reward approach ensures that team members are motivated to collaborate for the group’s success while also being recognized for their personal efforts, preventing free-riding and maintaining accountability.

Types of teams

The lecture identifies several distinct types of teams:

• Work or service teams: For routine tasks.
• Project teams: For a particular project or assignment.
• Network teams: Virtually connected teams.
• Employee involvement team: Meets on a regular basis to help achieve continuous improvement.
• Cross-functional Team: Operates with members who come from different functional units of an organization.
• Quality Circle Team: Employees who meet periodically to discuss ways of improving work quality.
• Virtual Teams: Work together and solve problems through computer-based interactions.

Goals of team’s PMS

The performance management system for a team must serve several specific goals, ensuring it is comprehensive and supports both the team and the organization. These goals are:

• Strategic
• Administrative
• Informational
• Developmental
• Organizational maintenance
• Documentation
• Accountable to peers

⭐ Key Takeaways

The most critical point is that synergy, where team output exceeds the sum of individual efforts, is the core benefit of teamwork, but it requires tolerance and flexibility. When teamwork is encouraged, the performance management system must reward both team output and individual contributions, not just one or the other. Organizations can use seven types of teams—including work, project, network, and virtual teams—each suited for different tasks. The goals of a team’s PMS are multi-faceted, covering strategic, administrative, informational, and developmental purposes, among others. A student must remember that effective team performance management is about balancing collective success with individual accountability.

🧠 Quick Revision Questions

1. Define a team and explain the concept of synergy.
2. List at least five benefits an organization can gain from effective teamwork.
3. What is the crucial relationship between teamwork and the performance management system (PMS)?
4. Name and briefly describe four different types of teams mentioned in the lecture.
5. What are the seven goals of a team’s performance management system?

📘 Lecture 41 — Evaluating Team Performance

📖 Overview: This lecture examines how to evaluate team performance within a Performance Management System (PMS). It explains the three core issues of measuring individual performance, individual contribution to team tasks, and overall team performance, along with the principles and sequential components of designing an effective PMS for teams.

🗂️ Topics Covered

The lecture first defines team performance in PMS by addressing three basic issues: measuring individual performance, assessing individual contribution to team tasks (to identify "sleeping partners"), and evaluating overall team performance. It then outlines six principles for designing a PMS for teams, followed by a detailed breakdown of the six sequential components of a PMS: prerequisites, performance planning, performance execution, performance assessment, performance review, and performance renewal and re-contracting. Finally, it introduces measures for evaluating "WE performance," including effectiveness, efficiency, learning & growth, and team satisfaction.

📝 Lecture Summary

Team performance in PMS

Team performance in a Performance Management System is assessed based on three basic issues. The first issue is measuring individual performance of the team members. The second issue is the contribution of the individual in overall team tasks, as it is very important to assess the contribution of each member. This assessment helps identify "sleeping partners" in the team and encourages and motivates them to work harder for the achievement of team goals. The third issue is the assessment of overall team performance.

Principles of designing PMS for team performance

While designing a Performance Management System for team performance evaluation, the following principles must be adopted:

1. Make sure the team is really a team.
2. Make the investment to measure.
3. Define the measurement goal clearly.
4. Use a multi-method approach of measurement.
5. Focus on procedures as well as outcome.
6. Measure long-term changes.

Components of PMS

The Performance Management System involves the following steps in the given sequence:

1. Prerequisites: This requires knowledge of the organization’s mission and strategic goals and knowledge of the job in question.

2. Performance Planning: Performance planning can be done in four different ways: based on results, behavior, competencies, and development plans.

   • Performance w.r.t results: Includes key accountabilities, specific objectives, and performance standards.
   • Performance w.r.t behaviors: Focuses on how a job is done.
   • Performance w.r.t competencies: Includes measurable clusters of KSAs that are critical in determining how results will be achieved.
   • Performance w.r.t development plan: Includes areas for improvement and goals to be achieved in each area of improvement.

3. Performance Execution:

   • Employee Responsibilities: Include commitment to goal achievement, ongoing requests for feedback and coaching, communication with supervisor, collecting and sharing performance data, and preparing for performance reviews.
   • Manager Responsibilities: Include observation and documentation, updates, feedback, resources, and reinforcement.

4. Performance Assessment: This involves assessment from multiple sources: manager assessment, self-assessment, and other sources (e.g., peers, customers, etc.).

5. Performance Review: Performance review is a periodic and ongoing activity. It considers the past (behaviors and results) to learn from it, the present (compensation to be received) for current planning and policy, and the future (new goals and development plans) to prepare the organization for future competition.

6. Performance Renewal and Re-contracting: This phase is the same as or different from Performance Planning. It uses insights and information from previous phases, and the cycle begins again.

Measure WE performance

To measure "WE performance," four dimensions are evaluated:

• Effectiveness: The degree to which results have been achieved.
• Efficiency: The degree to which internal team processes support the achievement of results, team growth, and team member satisfaction.
• Learning & growth: The degree to which the team is able to learn new skills and improve performance over time.
• Team satisfaction: The degree to which team members are satisfied.

⭐ Key Takeaways

A student must remember that team performance evaluation involves three distinct levels: individual performance, individual contribution to the team, and overall team performance. The six components of a PMS (Prerequisites, Planning, Execution, Assessment, Review, and Renewal) form a cyclical process that must be followed in sequence. When measuring "WE performance," it is critical to evaluate not just results (effectiveness) but also the processes (efficiency), the team's ability to grow (learning & growth), and member satisfaction. The principles of designing a PMS for teams emphasize clear goals, multiple measurement methods, and a focus on both procedures and long-term outcomes.

🧠 Quick Revision Questions

1. What are the three basic issues assessed when evaluating team performance in a PMS?
2. List at least four of the six principles for designing a PMS for team performance evaluation.
3. What are the six sequential components of a PMS?
4. In the performance planning component, what are the four ways performance can be planned?
5. What are the four dimensions used to measure "WE performance," and what does each dimension assess?

Here is the summary of Lecture 42, formatted exactly as requested.

📘 Lecture 42 — Rewarding Team Performance

📖 Overview: This lecture examines the challenges and methods of rewarding team performance in organizations. It contrasts different management philosophies on recognition, then details how to review team performance, set new objectives, and manage reward systems effectively to avoid common failures.

🗂️ Topics Covered

The lecture begins by contrasting schools of thought on rewarding teams versus individual employees and identifying major HR concerns. It then outlines the two primary methods for reviewing team performance (group vs. individual meetings) and their objectives. The process of performance renewal and re-contracting is explained, followed by key aspects of team performance management, including eligibility, reward characteristics, and variable pay systems.

📝 Lecture Summary

Rewarding Team Performance

One school of thought prefers rewarding employees beyond their pay and benefits, while another avoids the practice, fearing it undermines authority, stirs jealousy, or because of embarrassment or lack of time. Major concerns for HR managers when rewarding team performance include: Individual performance, the Contribution of the individual in the team, and overall Team performance.

Review Team Performance

When reviewing team performance, a supervisor has two options. The first is to meet all members together in a complete team session to discuss overall team matters and decisions. The second option is to meet all team members individually. Both meeting types are conducted to review past individual and team performance, discuss present conditions, and set future goals and policies. The major objectives of these team meetings are:

• Evaluation of individual and team behaviors and results
• Compensation to be received
• Setting new goals and development plans

Performance Renewal and Re-contracting

This process involves making adjustments to the performance plan. It is also critical to include a plan for individual performance as it affects team functioning.

Team Performance Management

HR professionals must keep several aspects in mind while measuring and evaluating team performance:

• All employees should be eligible for all perks and benefits.
• Rewards should be Visible, Contingent, and Reversible.
• Avoid factors which cause reward systems to fail.
• Consider variable pay systems in addition to individual bonuses.

⭐ Key Takeaways

To effectively manage team performance, managers must navigate differing philosophies on recognition, balancing team rewards with individual contributions. Performance reviews should utilize both group and individual meetings to evaluate past results and set future development plans. The critical characteristics of effective rewards are that they are visible, contingent on performance, and reversible. Finally, a successful system ensures all employees are eligible and considers variable pay systems to avoid common pitfalls of reward programs.

🧠 Quick Revision Questions

1. What are the three major concerns for HR managers when rewarding team performance?
2. What are the two main options a supervisor has for reviewing team performance?
3. List the three major objectives a supervisor aims to achieve from team performance review meetings.
4. What does the "performance renewal and re-contracting" process involve?
5. What are the three key characteristics that rewards for team performance must have to be effective?

📘 Lecture 43 — PERFORMANCE MANAGEMENT SOFTWARE

📖 Overview: This lecture introduces the role of technology in modern performance management, focusing on digital and cloud-based software that streamlines performance review processes. It explains why organizations are adopting these tools to improve engagement, fairness, and efficiency for managers and teams, and lists major types of performance management software.

🗂️ Topics Covered

The lecture covers the increasing use of technology in HR departments, specifically performance management software. It discusses how these tools are typically web-based, tailor-made, and assist in building electronic teams to monitor performance. It also details major characteristics and lists key types of performance management software, including Business library software, Mara consulting, SRT tools, Trinity quality software, and Workforce growth.

📝 Lecture Summary

Performance management software

In this century due to technological boost, organizations are becoming digital and are in a state of continuous improvement. Latest technologies are being used in various day-to-day activities. Within the working of human resource department, various human resource management systems are being used very frequently. In performance management systems, there are various software’s that are being tested and used for effective performance management. These days cloud-based performance management software are also being used as they dramatically streamline and simplify the performance review process. Performance management software provides fast, fair, and easy to use approach that drives improved engagement and performance for managers and their teams. Major characteristics of these performance management software’s are:

• They are mostly web based
• They are usually tailor made to accommodate the specific needs of the organizations
• Assists in building electronic teams to monitor performance, gather feedback and take appropriate actions
• Should deal with emotional as well as financial needs of the employees

💡 Why this matters: Understanding these characteristics helps HR professionals select software that aligns with organizational culture, ensures fair evaluations, and supports both the well-being and productivity of employees.

🔑 Definition — Performance management software: software that provides a fast, fair, and easy-to-use approach that drives improved engagement and performance for managers and their teams, often cloud-based to streamline the review process.

📐 Formula: Effective PM = Web-based tools + Tailor-made design + Electronic team monitoring + Emotional & financial need support

Types of PM software

Major types of performance management software are:

• Business library software
• Mara consulting
• SRT tools
• Trinity quality software
• Workforce growth

⭐ Key Takeaways

Performance management software is increasingly digital and cloud-based, designed to simplify and speed up performance reviews. Key characteristics include being web-based, customizable to organizational needs, and capable of building electronic teams for monitoring and feedback. These tools must address both the emotional and financial needs of employees to be effective. Five major types of PM software are Business library software, Mara consulting, SRT tools, Trinity quality software, and Workforce growth.

🧠 Quick Revision Questions

1. What are the four key characteristics of performance management software discussed in the lecture?
2. Why are cloud-based performance management software preferred over traditional methods?
3. List the five major types of performance management software mentioned.
4. How does performance management software help deal with employees' emotional needs?
5. What does "tailor-made" mean in the context of performance management software?

📘 Lecture 44 — Performance Management System; A Quick Overview

📖 Overview: This lecture provides a consolidated summary of the entire Performance Management System (PMS) course. It reviews the core aims, key characteristics, and essential performance measures that define an effective PMS. This matters because it ties together all previous lessons into a practical framework for building a high-performance culture within an organization.

🗂️ Topics Covered

The lecture covers three main topics: the aims of a Performance Management System, which include establishing a high-performance culture and aligning individual goals with organizational goals; the characteristics of PMS, describing it as a planned, continuous process built on human relations synergy; and performance measures, listing specific metrics for achieving and maintaining PMS effectiveness.

📝 Lecture Summary

Aims of PMS

One of the major aims of a performance management system is to establish a high performance culture among the organization. Organizations are moving towards performance-based evaluation systems, and for that purpose, communication patterns also need to be revised involving all the stakeholders. Performance management systems also communicate the expectations of all the stakeholders. Another major aim of PMS is to motivate, empower, and reward employees so that their loyalties remain with their organization and they wholeheartedly work for the productive outcomes. One major challenge HR managers face is to align individual’s goals with organizational goals, and this can be better served by implementing an effective PMS. Managing and resourcing performances is also among the aims of PMS.

💡 Why this matters: Understanding these aims helps you see PMS not just as an evaluation tool, but as a strategic system for culture building, motivation, and goal alignment.

Characteristics of PMS

Major characteristics of performance management systems are as follows:

• PMS is a planned, continuous process
• Represents synergy of human relations through:
  • Agreement
  • Measurement
  • Feedback
  • Positive reinforcement
  • Dialogue
• Measures outputs in terms of delivered performance in comparison to set objectives
• Continuously compares inputs & outputs
• Focuses on future performance
• Emphasizes on development

💡 Why this matters: These characteristics distinguish PMS from traditional, once-a-year appraisals, making it a dynamic, forward-looking, and developmental process.

Performance Measures

The following measures must strictly be taken in order to achieve and maintain the effectiveness of performance management systems:

• Achievement of objectives
• Competence
• Quality
• Contribution to team
• Customer care
• Working relationship
• Productivity
• Flexibility
• Skills
• Learning targets
• Alignment of personal objectives with organizational goals
• Business awareness
• Financial situation

💡 Why this matters: These measures provide a comprehensive checklist for evaluating both individual and organizational performance, ensuring nothing critical is overlooked.

⭐ Key Takeaways

The Performance Management System is a planned, continuous process designed to establish a high-performance culture by communicating stakeholder expectations. Its core purpose is to motivate, empower, and reward employees while aligning individual goals with organizational goals. Key characteristics include its focus on human relations synergy through agreement, measurement, feedback, positive reinforcement, and dialogue, as well as its emphasis on future performance and development. To maintain effectiveness, PMS must track measures like achievement of objectives, competence, quality, productivity, and business awareness. Remember that PMS is fundamentally different from traditional appraisals because it is ongoing, developmental, and strategically aligned.

🧠 Quick Revision Questions

1. What are the three major aims of a Performance Management System?
2. List at least four characteristics of a PMS.
3. How does a PMS achieve "synergy of human relations"?
4. Name five of the performance measures that must be taken to maintain PMS effectiveness.
5. Why is it important to align individual goals with organizational goals within a PMS?

📘 Lecture 45 — Performance Management System; A Quick Overview Cont’d

📖 Overview: This lecture concludes the overview of Performance Management Systems (PMS) by detailing the essential Dos and Don’ts for effective implementation. It highlights that in competitive business environments, moving toward performance-based compensation makes understanding these principles critical for HR managers. The lecture provides a practical checklist of actions to take and pitfalls to avoid for a successful PMS.

🗂️ Topics Covered

The lecture covers two main sections: the Dos of Performance Management System (PMS), listing 16 essential positive actions such as consulting stakeholders, ensuring simplicity, and aligning with other HR processes; and the Don’ts of Performance Management System (PMS), listing 10 common mistakes to avoid, such as treating PMS as a mere form-filling exercise, making the system complicated, or neglecting communication.

📝 Lecture Summary

Dos of Performance Management System (PMS)

The lecture begins by establishing that performance management is a broad domain with increasing worth in competitive business environments. As organizations move toward performance-based compensation, HR managers must know the Dos of PMS to ensure success. These positive actions focus on building a system that is consultative, clear, and integrated.

The major Dos include: Consult & involve all the stakeholders to gain buy-in; ensure healthy and two way communication throughout the process; keep the PMS should remain simple to avoid confusion; ensure alignment of activities with organizational goals; make sure the employee should own system in which they are working for engagement; provide clarity of purpose and process so everyone understands the "why" and "how"; monitor & evaluate the system’s effectiveness; ensure alignment of PMS with regional culture for contextual relevance; train employees according to PMS so they have necessary skills; plan and prepare carefully before launch; ensure alignment with other HR processes like recruitment and training; conduct a pilot test of PMS before full rollout; clarify link to rewards to motivate performance; understand PMS as business process not just an HR tool; be realistic about scale of change to avoid overwhelming the organization; define performance expectations clearly from the start; and make the process mandatory to ensure participation and consistency.

Don’ts of Performance Management System (PMS)

The lecture also outlines the major Don’ts, or common mistakes, that can derail a PMS. These pitfalls emphasize that PMS is not a trivial exercise and requires careful, ongoing effort.

The major Don’ts include: do not treat it as just a form filling exercise which destroys its value; do not make system complicated as simplicity is key; do not rush to new system without proper planning; do not underestimate the time it takes to introduce the system; do not keep changing the system as this erodes trust and understanding; do not assume that managers have necessary skills without training; do not blindly follow others without adapting to the organization’s context; do not neglect consultation and communication with employees; do not assume everyone wants PMS as some resistance is natural; and do not assume that PMS will start immediately after design, as rollout takes time.

⭐ Key Takeaways

The most critical takeaway is that a successful Performance Management System is built on consultation, simplicity, and alignment with organizational culture and other HR processes. It is a business process, not a mere administrative chore, and requires careful planning, pilot testing, and training. Conversely, the biggest failures come from treating PMS as a form-filling exercise, rushing its implementation, or assuming managers and employees automatically have the necessary skills and acceptance. Ultimately, for an exam, remember that the Dos focus on engagement, clarity, and integration, while the Don’ts are about avoiding complexity, haste, and neglect of communication.

🧠 Quick Revision Questions

1. What are three essential "Dos" of a Performance Management System related to employee involvement and communication?
2. Why is it a "Don't" to treat PMS as "just a form filling exercise"?
3. How should an organization ensure its PMS is aligned with its broader context, according to the lecture?
4. List two "Don'ts" that relate to the timing and introduction of a new Performance Management System.
5. What is the risk of "assuming everyone wants PMS" or that it will "start immediately"?