Sem: Dec-2024 Maximum Marks: 50 Examination: End Exam Date: 15/12/2024 Duration: 2.5hrs
Programme code: 18 Programme: MBA for Working Executive	Class: FY	Semester: III Batch- 2023-24
College: K. J. Somaiya Institute of Management	Name of the department/Section/Center: HR Department
Course Code:	Name of the Course: Performance Management Systems
Instructions: Q1 is compulsory. Each question will carry equal marks. For Q2, any two short notes. Each question will carry equal marks.

Question No.	Max. Marks
Allen Hansen has been the operations manager of Great Grocery, a large grocery distributor, for just under two years. He is widely considered by employees and management alike to be a “hands-off” type of manager who trusts his reports and always give them the benefit of the doubt when disputes arise, mistakes are made, or goals are missed. He includes everyone on major decisions pertaining to his department. As long as Allen feels that his reports are trying their hardest, he leaves them alone. As a result, turnover has been very low at Great Grocery during the past two years, as are unexcused absences (a rarity in the region). In addition, employee morale is exceptionally high compared to other companies in this industry. However, the CEO of Great Grocery found out recently that his primary competitor operates 10 percent more efficiently in their warehouse, and customer service/fulfillment scores are 50 percent higher. After a great deal of deliberation, the CEO dismissed Allen from the company and hired Randall Moody from a competitor, to take over as operations manager. Randall received exceptional results at his previous company, and decided to come to Great Grocery for a higher salary and a new challenge. Randall boasts that he is an “old school” type of manager. He is often heard saying that “This company is not a democracy…it is a dictatorship. If you don’t like it, work for another company.” Randall tells his reports upon their first reviews that he is uninterested in how hard they try. He cares only about whether or not they meet their objectives. He cares only about results. All the employees feel that the objectives that were set for them are too high, even though Randall has assured them these same goals were attainable at his old company. Morale is at an all-time low. Many employees are leaving the company, causing issues with fulfillment and customer satisfaction. As a result, Great Grocery’s top three customers are already negotiating with their competitors about moving their accounts. Randall ensures the CEO that change takes time and these are just growing pains, The company is at a serious turning point. A. Do you think the CEO made the appropriate decision in replacing Allen with Randall? Why or why not? B. Do you agree with Randall that the problems at Great Grocery are just growing pains? C. Performance can effectively be managed as behaviors or results. However, as an abrupt shift from one to the other is a shift in the culture of the organization. Did Great Grocery do a good job of switching from behavioral to a results approach? D. How would you manage this situation? For example, if the CEO of Great Grocery hired you as a consultant, what would you recommend?	40 marks
2.	Short notes (any two) Characteristics of an ideal PMS Errors in rating Three levels of context in PMS	10 marks