by Deanna Hartley | Talent Management
The global nature of business today oftentimes entails overseeing teams comprised of foreign nationalities – a reality that has spawned “Outsourced,” an NBC sitcom that documents the journey of a manager whose department gets outsourced to India.
“I worry about people seeing the show. Because it’s in India, they somehow would think there are different rules in India about managing human behavior – and there aren’t,” said Aubrey Daniels, author of Oops! 13 Management Practices That Waste Time and Money.
The core management principles that enable employees to perform effectively are the same, regardless of geography, he explained. Bosses on shows such as “The Office” and “Outsourced” amuse audiences because they are often clueless as to why they can’t influence their direct reports to behave in certain ways. According to Daniels, this is because they take a one-size-fits-all approach to workforces.
“Any time you try to reinforce everybody with the same thing – whether it’s something you say or something you give them – you’re going to be in trouble, because what’s positive to one may be negative to another,” he said. “In ‘Outsourced,’ there are going to be lots of occasions like that, where the American is going to try to reinforce everybody with ‘steaks [are] on me’ – and that may not go over very well.”
Here are a few tips for managers of global – or even local – teams to improve performance.
1. Learn employees’ positive reinforcers.
“You could pat somebody on the back and not increase whatever they’re doing, so that would tell you that’s not a reinforcer,” Daniels said. “We need to look at behavior to see the impact of what we do. If I’m going to have a good relationship with you, then I’m going to have to pay attention to you; I’ve got to watch your behavior and how you respond to things I do.”
In an organization, this may entail setting up candid one-on-one meetings with direct reports.
“We sit down with [the employee] and say, ‘Tell me what’s important to you, what you’re trying to accomplish here. Why did you come to work here? What do you want to accomplish for yourself short term and long term?’” he said.
Doing so not only empowers the individual to contribute his or her best to the organization, but also helps managers develop a good working relationship with direct reports.
2. Pinpoint behaviors that add value.
Throwing out ambiguous statements, such as ‘We want you to take more initiative,’ doesn’t serve to improve employee performance, Daniels explained.
“We want to determine what drives the result we’re trying to accomplish, and we find over and over again that managers don’t know what it is, as basic as that seems,” he said.
For this reason, it would behoove managers to pinpoint behaviors that add value and be specific when communicating them to their direct reports. In a sales situation, it may be setting up meetings with prospective customers, writing proposals, etc.
3. Graph employee progress.
Graphic feedback – or feedback plotted on a graph or chart of some sort – allows managers to track the progress of individuals or groups, Daniels explained.
“The value of a graph is you can see small changes in behavior, which allows you many more opportunities to reinforce them than if you’re not tracking it,” he said. “Other people seeing that can comment on how well you’re doing, so you can get social reinforcement as well as reinforcement from the boss.
For example, graphically tracking the frequency of customer contact in a given week may help a bank strengthen its relationship-banking efforts.
4. Reinforce behaviors that contribute to progress.
Tangible business results aren’t immediately obvious. For example, it may take the aforementioned bank a month to begin to detect an increase in sales.
“The problem is, if you didn’t get some form of recognition for the effort you were making in contacting the customers, then in four weeks your effort would diminish because the results are lagging the behavior,” Daniels said. “If you know that contact with customers is going to increase sales, then your job as a manager or supervisor is to make behaviors get enough reinforcement to keep them going until such time as they begin to see [an] increase in sales.”
5. Celebrate results.
Managers typically commend their teams for a job well done by calling them together, telling them how well they performed and providing something tangible, such as cash incentives or time off.
“We talk about a celebration as an opportunity to relive an accomplishment,” he said. “The celebration should be employees talking about what they did to create that result. That’s their reinforcement because it allows management to see how smart they are, how hard they worked, how difficult it was, etc.”
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.
360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employee's manager, peers, and direct reports. A mixture of about eight to twelve people fill out an anonymous online feedback form that asks questions covering a broad range of workplace competencies. The feedback forms include questions that are measured on a rating scale and also ask raters to provide written comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms.
Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their strengths and weaknesses. The 360 feedback system automatically tabulates the results and presents them in a format that helps the feedback recipient create a development plan. Individual responses are always combined with responses from other people in the same rater category (e.g. peer, direct report) in order to preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and weaknesses.
360 Feedback can also be a useful development tool for people who are not in a management role. Strictly speaking, a "non-manager" 360 assessment is not measuring feedback from 360 degrees since there are no direct reports, but the same principles still apply. 360 Feedback for non-managers is useful to help people be more effective in their current roles, and also to help them understand what areas they should focus on if they want to move into a management role.
360 degree appraisal has four integral components:
1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree performance appraisal where the employees’ responsibilities and actual performance is rated by the superior.
Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.
Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.
360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.
Companies typically use a 360 feedback system in one of two ways:
1. 360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and become more effective
When done properly, 360 is highly effective as a development tool. The feedback process gives people an opportunity to provide anonymous feedback to a coworker that they might otherwise be uncomfortable giving. Feedback recipients gain insight into how others perceive them and have an opportunity to adjust behaviors and develop skills that will enable them to excel at their jobs.
2. 360 Feedback as a Performance Appraisal Tool to measure employee performance
Using a 360 degree feedback system for Performance Appraisal is a common practice, but not always a good idea. It is difficult to properly structure a 360 feedback process that creates an atmosphere of trust when you use 360 evaluations to measure performance. Moreover, 360 feedback focuses on behaviors and competencies more than on basic skills, job requirements, and performance objectives. These things are most appropriately addressed by an employee and his/her manager as part of an annual review and performance appraisal process. It is certainly possible and can be beneficial to incorporate 360 feedback into a larger performance management process, but only with clear communication on how the 360 feedback will be used.
360 Feedback Survey Measures..
- The behaviors and competencies
- 360 assessments provide feedback on how others perceive an employee
- 360 feedback addresses skills such as listening, planning, and goal-setting
- A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness
The whole object of travel is not to set foot on foreign land; it is at last to set foot on one’s own country as a foreign land.
— G K Chesterton
To be in sync with the quote, which expresses the importance and pleasure of exploring your own country, the government too wants to promote inland tourism. Accordingly, it has provided for tax benefits in respect of leave travel allowance (LTA) received from your employers.
Here, I will explain the present provision of LTA.
This tax benefit is available only to employed persons, not to self-employed ones. You can claim tax benefits on the LTA received from your present or past employer on fulfillment of certain conditions.
The exemption can be claimed under two conditions — first, you can claim it when you are continuing in your present employment and proceed on leave to any place in India.
The other condition is when you travel to any place after
your retirement from the services or on termination of services.
This benefit on retirement can be claimed every time you leave one employment and move to other location to take up another employment. So the retirement for this purpose not only includes the mandatory retirement on reaching the age of superannuating, but also includes leaving one employment to take up another employment at different location.
For whom you can claim LTA? You can either travel alone or with your family. However, no LTA benefit can be claimed for your family if it travels without you.
Moreover, you need to be on leave on the days of travel. You cannot claim the benefits of LTA in respect of your spouse or children if you take them along with you on your official trip, this is when you are not on leave.
Family for the purpose of claiming LTA exemption includes spouse, children whether dependent on you or not and parents, brothers and sisters who are wholly or mainly dependent on you.
The income-tax law provides that you can claim this LTA exemption benefit in respect of two children only.
How frequently can you claim it? You can claim LTA exemption twice in the block of four calendar years. This block is not calculated with reference to commencement of your employment but is predefined by the law.
The current block has begun from January 1, 2010 and will end on December 31, 2013. The next block will be from 2014 to 2017, and so on. It is not necessary that you claim the LTA exemption in alternate years, what is required is that you can not claim it more than two times in the defined block of four years. In case you and your spouse both are working, your family can travel every year and claim the tax benefit of LTA every year for two different calendar years in case of both of you. The only restriction is that you can not claim LTA exemption for the same journey.
Can LTA benefits be carried forward? What if you could not fully claim LTA / LTC exemption for some reason during the block 2006-2009? It can be carried forward to the first year of the next block of four years. Thus, in the current block of 2010 to 2013, you can claim the benefits of your arrears of LTA during the calendar year 2010 without affecting your right to claim two LTA exemptions in balance three years of the same block.
What amount can be claimed? The tax benefit is available only in respect of cost of transportation incurred by you on travelling in India. It is not available for expenses of stay in hotel or local conveyance for sight seeing etc.
In case you are going on a foreign trip, you can claim the expense of travel from your place to the point of departure from India for undertaking the foreign travel and back.
The exemption is restricted to actual expenses incurred by you in undertaking the journey from the starting point to farthest destination. However, there is a cap on maximum amount you can claim in respect of LTA exemption. The restrictions are dependent on the mode of transport (see table).
If there is no such recognised public transport system operating on that route, you can claim a fare equivalent to air-conditioned first class fare for the distance between your place to the destination by shortest rail route.
The exemption is available for the farthest place by shortest route when a circular journey is undertaken.
Do you need to preserve proof of your travel? You need to preserve the tickets to claim this income-tax benefit. If you hire a car, the receipt/ invoice from the travel agency or car rental agency is considered valid proof. Even if your employer does not verify and collect the proof of the expenses in respect of LTA, you are under obligation to produce it before the assessing office at the time of your income-tax assessment.
The writer is CFO, ApnaPaisa.com, a price comparison engine for loans, insurance and investments. He can be reached at balwant.jain@apnapaisa.com
1. ESSAY APPRAISAL METHOD
This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.
2. STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.
4. CRITICAL INCIDENTS METHODS
In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.
5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.
6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.
7. GRAPHIC RATING SCALE
In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.
8. FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.
MODERN METHODS
ASSESSMENT CENTRES -
An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.
The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees.
BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents.
In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.