1. Performance Evaluation
Definition
Performance evaluation is the systematic assessment of an employee’s or system’s effectiveness, efficiency, and contribution toward achieving organizational goals.
Objectives
- Identify strengths and weaknesses.
- Provide feedback for improvement.
- Support decisions on promotions, rewards, or training.
- Align individual performance with organizational objectives.
Methods
- Graphic Rating Scales: Rate employees on traits (e.g., punctuality, teamwork).
- 360-Degree Feedback: Input from peers, subordinates, supervisors, and self.
- Management by Objectives (MBO): Evaluate based on predefined goals.
- Behaviorally Anchored Rating Scales (BARS): Combine qualitative and quantitative assessments using specific behavioral examples.
Key Considerations
- Fairness & Objectivity: Avoid bias (halo effect, recency bias).
- Regular Feedback: Not just annual reviews.
- Link to Development: Use results for training and career planning.
2. Management Information System (MIS)
Definition
An MIS is a computer-based system that collects, processes, stores, and disseminates information to support managerial decision-making, coordination, and control.
Characteristics
- Relevant, accurate, timely, and summarized information.
- Supports structured decisions (routine, repetitive).
- Integrates data from various departments (finance, HR, operations).
Functions
- Data Collection: From internal and external sources.
- Data Processing: Converting raw data into useful information.
- Reporting: Routine reports (daily sales, inventory levels).
- Decision Support: Helps middle management with tactical decisions.
Levels of MIS
| Level | Type of Information | Example |
|---|---|---|
| Strategic | Long-term, external | Market trends, ROI |
| Tactical (MIS) | Medium-term, summarized | Monthly sales by region |
| Operational | Real-time, detailed | Daily transaction logs |
Note: MIS primarily serves tactical-level management.
Benefits
- Improves efficiency and productivity.
- Enhances decision-making.
- Facilitates coordination across departments.
3. SWOT Analysis
Definition
A strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.
Components
| Category | Description | Examples |
|---|---|---|
| Strengths | Internal positive attributes | Strong brand, skilled workforce |
| Weaknesses | Internal limitations | Outdated technology, high employee turnover |
| Opportunities | External favorable conditions | Emerging markets, new regulations |
| Threats | External challenges | New competitors, economic downturn |
Purpose
- Assess current position.
- Formulate strategies (e.g., SO – use strengths to seize opportunities).
- Support strategic planning and risk management.
Tips for Exam
- Strengths/Weaknesses = Internal
- Opportunities/Threats = External
- Always link SWOT to actionable strategies.
4. Business Process Reengineering (BPR)
Definition
BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical performance measures (cost, quality, service, speed).
Coined by Hammer & Champy (1993): “Don’t automate, obliterate!”
Key Principles
- Focus on end-to-end processes, not tasks or departments.
- Customer-centric design.
- Leverage information technology as an enabler.
- Break away from traditional hierarchical structures.
Steps in BPR
- Identify the process to reengineer.
- Analyze the current (“as-is”) process.
- Redesign the process (“to-be”) from scratch.
- Implement the new process.
- Monitor and improve continuously.
Outcomes
- Reduced cycle time.
- Lower operational costs.
- Improved customer satisfaction.
- Flatter organizational structure.
Risks
- Employee resistance.
- High implementation cost.
- Failure due to poor change management.
5. Time and Motion Study
Definition
A technique used to analyze and improve work efficiency by:
- Time Study: Measuring the time taken to perform a task.
- Motion Study: Analyzing body movements to eliminate waste and fatigue.
Pioneered by Frederick Taylor (Scientific Management) and Frank & Lillian Gilbreth.
Objectives
- Establish standard time for tasks.
- Improve work methods and reduce unnecessary motions.
- Increase productivity and reduce worker fatigue.
Procedure
- Select the task to study.
- Observe and record current method (using video or direct observation).
- Break task into therbligs (basic motion elements – e.g., reach, grasp, move).
- Eliminate, combine, or rearrange motions for efficiency.
- Set a standard time using timing devices (stopwatch, PMTS).
Applications
- Assembly line optimization.
- Setting performance standards.
- Designing ergonomic workstations.
Criticism
- Can lead to worker stress if used punitively.
- Ignores human and psychological factors (addressed later by Human Relations Movement).
Summary Table
| Concept | Focus Area | Key Purpose | Key Proponent/Tool |
|---|---|---|---|
| Performance Evaluation | Human Resources | Assess & improve employee performance | MBO, 360-degree feedback |
| MIS | Information Systems | Support tactical decision-making | Computer-based reporting |
| SWOT Analysis | Strategic Planning | Internal/external environment scan | Strategic management tool |
| Reengineering (BPR) | Process Improvement | Radical redesign for breakthrough results | Hammer & Champy |
| Time & Motion Study | Operations/Work Study | Optimize task efficiency & reduce waste | Taylor, Gilbreths |
Exam Tips
- Link concepts: e.g., MIS provides data for performance evaluation; SWOT informs BPR initiatives.
- Distinguish BPR vs. Continuous Improvement: BPR = radical change; Kaizen = incremental.
- Time Study ≠ Motion Study: Time = “how long?”; Motion = “how done?”
- In case studies, identify which tool applies (e.g., declining efficiency → Time & Motion Study; strategic shift → SWOT + BPR).
| Concept | Key Developer(s) | Year / Era Introduced |
|---|---|---|
| Performance Evaluation (MBO) | Peter Drucker | 1954 (The Practice of Management) |
| 360-Degree Feedback | General Electric (popularized) | 1990s |
| MIS | Gordon B. Davis (academic framing) | 1970s (term in use since late 1960s) |
| SWOT Analysis | Albert Humphrey & SRI team | 1960s–1970s |
| BPR | Michael Hammer & James Champy | 1990 (HBR article), 1993 (book) |
| Time Study | Frederick Winslow Taylor | 1880s–1911 |
| Motion Study | Frank & Lillian Gilbreth | 1890s–1911 |