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Unit III · Strategic HRM and industrial relations
10 min readConcept sheetMCQ · methods, rating errors and career models

Career planning, performance management and appraisal

Career planning matches personal goals with organisational opportunities. Performance management is a continuous cycle; appraisal is its periodic rating, open to errors like halo and leniency.

Career anchorsEdgar Schein: eight, such as technical/functional, managerial, autonomy and security
Career stages (Super)Growth, exploration, establishment, maintenance, decline
MBOPeter Drucker, 'The Practice of Management' (1954)
360-degree feedbackRatings from superiors, peers, subordinates, customers and self

Career concepts

ConceptAuthorKey idea
Career anchorsEdgar ScheinA self-image of talents, motives and values a person will not give up; eight anchors
Life-span career stagesDonald SuperGrowth, exploration, establishment, maintenance, decline
Personality-job fit (RIASEC)John HollandRealistic, investigative, artistic, social, enterprising, conventional
Protean careerDouglas HallSelf-directed career driven by personal values; success is psychological
Boundaryless careerArthur and RousseauMoves across employers, industries and roles
Career plateauGeneral termPoint where further upward movement is unlikely
Dual career ladderGeneral termParallel technical and managerial paths to advancement

Performance management cycle

Appraisal is one step in the cycle; performance management is the whole cycle (Michael Armstrong).

Appraisal methods

CategoryMethods and notes
Traditional (past-oriented)Straight ranking, paired comparison, forced distribution, graphic rating scale, checklist, essay, critical incident, confidential report
Modern (future-oriented)MBO, BARS, assessment centre, 360-degree feedback, human resource accounting, psychological appraisal
Paired comparisonEach employee is compared with every other; pairs = N(N − 1) ÷ 2
Forced distributionRaters place fixed shares of staff in each category, like a bell curve; curbs leniency and central tendency
BARSBehaviourally anchored rating scale: a rating scale anchored with critical incidents
MBOSuperior and subordinate jointly set goals, monitor progress and review results

Rating errors

ErrorMeaning
Halo (or horn) effectOne good (or bad) trait colours all ratings
Leniency and strictnessRating everyone too high or too low
Central tendencyRating everyone near the middle of the scale
Recency effectWeighting recent events and ignoring the rest of the period
Similar-to-me biasRating people like oneself more favourably
Contrast errorJudging against other employees instead of against standards

Worked example: paired comparison

Problem

A manager ranks 8 employees by paired comparison. How many comparisons are needed?

Working
  1. Pairs = N(N − 1) ÷ 2 = 8 × 7 ÷ 2.
  2. 8 × 7 = 56; 56 ÷ 2 = 28.
  3. Check by counting: the first employee is paired with 7 others, the next with 6 new ones, and so on: 7 + 6 + 5 + 4 + 3 + 2 + 1 = 28.
Answer

28 comparisons. For 10 employees: 10 × 9 ÷ 2 = 45.

How NET asks this

NET asks you to classify appraisal methods as traditional or modern, name the rating error in a scenario, match career concepts with authors, and compute paired-comparison counts.

Exam angle

Typical MCQ: “How many comparisons does the paired comparison method need for 8 employees?” 8 × 7 ÷ 2 = 28. Trap: forgetting to divide by 2 gives 56.

Typical MCQ: “Who introduced management by objectives?” Peter Drucker, in 'The Practice of Management' (1954). Trap: Likert is linked with participative management systems, not with MBO.

Remember it

Rating errors HLCR: halo, leniency, central tendency, recency. Pairs = N(N − 1) ÷ 2.