Human Resource Management (MGT501) Assignment NO.1 Spring 2020 Sample Solution

Human Resource Management (MGT501)

Assignment Semester “Spring 2020”

Sample Solution

In a big chain of retail stores annual performance appraisal system is used as a base for determining the
employee’s annual raise. Upper management has the authority to double the increment on an exceptional
performance. One of the problems with the appraisal system is that it is more inclined towards
subjectivity. A new sales manager joined the chain in December 2019 and annual performance appraisal
of two supervisors one from grocery section and one from the toys section was due in April 2020. Due to
lockdown in March 2020 the sales of grocery section were above targets and consequently, the supervisor
from the grocery section got double increment on the recommendation of the manager.

Question: 01 (6 marks) Word limit 200 words
(2 for Identifying Error, 2 for justification, and 2 for ways to handle it)
Question 1: Keeping in view, the possible raters’ error in performance appraisal, discuss the specific error
that occurred in this scenario and how it could be handled? Justify your answer with solid arguments.

The error which has been occurred in this specific scenario is Recency Error, where the manager evaluated
the supervisor’s performance based on the performance of the last three months. Here sales manager

ignored the performance (sales) of the first three quarters of the year.
One way to avoid this error is to maintain a record of all year’s performance in an objective manner.

Question: 02 (4 marks) Word limit 100 words (2 +2)
Question 2: Each supervisor has a team consisting of 10 to 15 sales staff. While assessing “Quality of
work” of team members, supervisors can choose one of the following categories.

• Unsatisfactory
• Marginal
• Satisfactory
• Good
• Outstanding.

Which of the appraisal tool/method is being used in that retail store and what is its disadvantage?

The above-mentioned method is the graphic rating scale where evaluation is being performed according
to defined factors. Here “Quality of work” is the factor and unsatisfactory to outstanding are the five
categories.
Possible disadvantages of this method are unclear standards, central tendency and hallo effect etc.