Effectiveness of Performance Appraisal System in Pantaloons Retail India Limited (PRIL)

Submitted To: by:

MR. MAYANK GUPTA

Submitted
MOHIT BATRA

(Asst. Prof)

00821001909

Pantaloon Retail (India) Limited

A future group venture

Acknowledgement
People must have guidance in doing their work and know where to turn for help & guidance.
Truly independent project is a contradiction in terms. Every project involves contribution of many people. This project also bears the imprint of many peoples and it is a pleasure to acknowledge all of them. First of all I am thankful to Mrs. Amandeep Kaur, Sr. Manager (HR) in Pantaloon Retail India Ltd. who gave me the opportunity to do this project & provided the much needed support & encouragement. I am especially indebted to managers, officers and workers of Pantaloon Retail India Ltd. (Future Group) from various departments who have helped me by providing information & giving me their support & valuable time. It is only because of them that this report is completed. Last, but not least I would acknowledge my family & my friends for their help & support & my project guide MR. MAYANK GUPTA , ASSISTANT PROFESSOR,IIMT.

MOHIT BATRA

00821001909

Executive Summary
Performance appraisal has finally caught up with 21 st -century management practices. In the old model, performance appraisal tended to be one-way, adversarial, oriented toward the past and universally despised by all. In the new model, performance appraisal: Involves an ongoing process of planning, goal-setting, feedback and performance review Is an ongoing series of discussions between supervisor and employee rather than an annual event. Focuses on the future more than the past Focuses on improving employee performance and career development rather than employees' mistakes Is used as a tool to build trust, open communication and better supervisor employee relationships at all This project is aimed at identifying the effectiveness of the current performance appraisal system in Pantaloon Retail India Ltd. and taking views of the employees on the same.

Objective of the study are:

To study the problems faced by the appraise during the appraisal process. To assess the expectation and satisfaction level of employees with regard to existing performance appraisal system. To offer policy suggestions for better implementation of the scheme

Content
1. Research Methodology 2. Introduction Objective of the Study Scope of the Study 3. Literature review Introduction about PIRL Introduction about Big Bazaar Company Profile 4. Data analysis 5. HR role in Pantaloon Retail India LTD (big bazaar) 15 21 5 7 10 3 4 14

6. Introduction Theoretical Framework of performance 26 appraisals

7. Performance Appraisal 8. Appraisal Process in Pantaloon Retail India LTD. 360 Balance Scorecard 9. EXECUTIVE SUMMARY Conclusion 45

30

47 51 57 58

9. APPENDIX Bibliography Questionnaire

60 61 62

Research Methodology

Methodology
If you dont know where you want to go, Any road will get you there.
The current study is an EXPLORATORY one designed to identify the effectiveness of performance appraisal system in the organization. The performance appraisal effectiveness identification was done by soliciting employees opinions through a survey questionnaire, conducting discussions with senior officers for gap analysis and outcome analysis. With a premise that people concerned are best judges of their needs, the study was conducted in Bottom Approach. The study involved collection of both primary and secondary data. The employees sample was chosen on the basis of RANDOM SAMPLING TECHNIQUE. Survey: Questionnaire was developed to survey employees opinions about their past experience of performance appraisal. The opinions were also sought on their future performance appraisal system based on their job and changes in the job environment and convenience. Discussions: Various issues that emanated from survey formed the basis for discussions with senior officers of the company. Pantaloon Retail India Ltd. has approximately 600 employees in all. A sample of 100 employees (78 workers, 16 officers, 6 managers) has been taken by applying random sampling. A well-designed questionnaire containing 10 questions was administered to all

the 100 sample respondents to have their views in various aspects of performance appraisal. Managers or Head of the Departments were asked three more questions regarding the members under them, their area of improvement. Data collected with the help of questionnaire has been analysed and interpreted by applying statistical techniques like tabulation, percentage and presented accordingly.

Objective Of The Study

Where vision is one year, Cultivate flowers Where vision is ten years, Cultivate trees Where vision is eternity, Cultivate people
The genre of Employees seems to have evolved through a transformation process. They are now more growth oriented, ambitious, industrious, forward-looking and increasingly vulnerable to the rocking changes in the industry. They have a high self-concept and seek intrinsic motivation in the form of work satisfaction, intellectual growth and gratification of cognitive needs. The premium on career growth, self-development and the critical nature of employee retention are certain issues that have conspired to extend the moving frontiers of performance appraisal. The title of the study is self-explanatory as far as the objective of the study is concerned i.e., Effectiveness of Performance Appraisal System at Pantaloon Retail India Ltd.. The incidental objectives that contribute to the main objective have been:

To study the problems faced by the appraises during the appraisal process.

 To assess the expectation and satisfaction level of employees with regard to existing performance appraisal system.
To offer policy suggestions for better implementation of the scheme

Scope of the Study

On the premise that all levels of personnel are performing roles of support to high level management in production, administrative, financial, technical goal achievement of organization, attempts were made to target most of the employees from various departments in the organization. Though the findings of the study can be generalized to majority of organizations yet for the sake of convenience and accuracy the study has been conducted at Pantaloon Retail I Limited.. Total number of employees in Pantaloon Retail India Ltd is approximately 6000. To identify gray areas for performance appraisal in most of the organization in Retail and at Pantaloon Retail India Ltd. in particular the study has been conducted.

Company profile

Future Group Manifesto

It is this understanding that has helped us succeed. And it is This that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing. Rewrite Rules. Retain Values Future the word that signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but create_ future_ scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners. Our customers will not just get what they need, but also get them where, how and when they need. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it We will not just spot trends; we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.

Group Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

Group Mission

We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

Future Group
Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to cater to the entire Indian consumption space. The Future Group operates through six verticals: Future Retail (encompassing all retail businesses), Future Capital (financial products and services), Future Brands (management of all brands owned or managed by group companies), Future Space (management of retail real estate), Future Logistics (management of supply chain and distribution) and Future Media (development and management of retail media). Future Group companies include, Indus League Clothing that owns and retails brands like Indigo Nation and Scullery and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the groups financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The groups joint venture partners include Italian insurance major, Generally,

French retailer ETAM group, US-based stationary products retailer, Staples and UKbased Lee Cooper and India-based Talwalkars, Blue Foods and Liberty shoes.

Future Retail Future Media Future Brands Future Capital Future Space Future Logistics

INTRODUCTION ABOUT PANALOON-PRIL

Pantaloon Retail (India) Limited is a leading retailer with a turnover of over Rs. 3550 Crore for the financial year 2006-07. Headquartered in Mumbai, the company operates through primarily the Lifestyle and Value formats through multiple delivery mechanisms and lines of business some of them being, fashion, food, general merchandise, home, leisure and entertainment, financial services, communications and wellness. The company has stores in 54 cities across the country, constituting over 7 million square feet of retail space. The company caters to the Lifestyle segment through its 39 Pantaloons Stores and 5 Central Malls, as well as its other concepts. In Value retailing it is present through 83 Big Bazaar hypermarkets, 130 Food Bazaars and other delivery formats.

Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket chain that combines the look and feel of Indian bazaars, with aspects of modern retail, like choice, convenience and hygiene. Food Bazaar, food and grocery chain and launch Central, a first of its kind seamless mall located in the heart of major Indian cities, followed this. Some of its other formats include, Collection i (home improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), all (fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has launched its entailing venture, f u t u r e b a z a a r . c o m .

The CEO of Big Bazaar is Mr. R a j a n M a l h o t r a . In 2001, PRIL opened its first Big Bazaar Hypermarket a 30,000 square feet store kolkata. The major USP OF Big Bazaar store is low pricing. These stores offered the best price proposition to customers. As, part of the stores focused less on branded items and more on unbranded products with the same quality as branded ones, at much cheaper rate. The stores stocked a wide range of products including apparel, footwear, home linen, electronic items, furniture bazaar and many others, aimed at covering 70% of a customers shopping basket. Big Bazaar offered these products at prices lower than the maximum retail price by 5% to 60%. To highlight its low prices, the company used the tagline, (Isse sasta aur aacha kahin nahin).

PRIL tied up with Arvin Mills for selling for selling the latters Ruf and Tuf denim brand, exclusively through Big Bazaar. Under the Ruf and Tuf brand, Big Bazaar offered a wide range of denim apparel for children and adults, PRIL also tied up with many manufacturers in non-apparel section, some of whom included Liberty (footwear), Cello (Plastic items) and Safari and American Tourist (Luggage items). Kishore Biyani-led Future Group is considering hiving-off its hypermarket format Big Bazaar into a separate company. Managing a $1 billion business already is a challenge; Biyani said speaking to the reporters on Friday, referring to the big Bazaar format, which is expected to generate revenue of $1 billion in the fiscal 2007-08. Big Bazaar is a hypermarket format of the Pantaloon Retail (India) Ltd. The Group expects to increase its revenues to $7-8 billion by 2011, of which Big Bazaar is expected to contribute a large chunk of around $4 billion. It has emerged as the largest retail format of Future Group's retail division. Biyani said that the proposal is at a very initial stage and has to be taken to the board. Currently we have more than 80 Big Bazaars and we are planning to scale it up to 160 by the year end, he said. Highlighting that the company was going to go very aggressive in rolling out the Big Bazaar format, he said that the total floor area by 2011 would scale up to 30 million square feet from the present figure of 10 million square feet. Speaking on the other formats, Biyani said that the group was expecting revenue of Rs 1,300 Crore from the Home Town stores, which the company launched last year.

Biggest Format of PRIL

April 05, 2008 - Pantaloon Retail (India) Limited, part of the Future Group, announced the launch of its flagship hypermarket retail store Big Bazaar in Ranchi city. This is the second Big Bazaar in Jharkhand region and the first biggest store with 80,000-sq.ft areas in East Zone for the company. Annual turn over of Rs. 3000 Crore around Indias largest chain of Discount Stores. Pioneer in initiating the concept of Hypermarket in India. All products are available at up to 60% lower than market price. 83 Big Bazaars & 125 Food Bazaars across India. More than 1.7 Lakh items - Food, Groceries, Apparels, Home needs, Kitchen needs, etc

HR Role in Pantaloon retail India Limited (Future Group)

Medical checkup Recruitment Joining Formalities Personal Dossier Generation of Employee Code and Position Code Hiring in SAP. Entry in MIS and Payroll. Account Opening Uniform Issue Locker Issue Identity Card Issue Preparation of MIS and Payroll on Monthly basis. Maintaining attendance and leave records of all the employees in the store. Dealing with Employee Grievance. Complying with all the statutory compliances.

 Maintaining data of ESIC, Provident Fund, Med claim Taking Exit Interview of employees when they resign. Maintaining data of all kinds of loans Benevolent, Pantaloon Foundation. Maintaining record of all education programs for employees like Shishya, Seekho. Making PERK data. Organizing Employee of the month, Birthday Celebrations and Prerna. Maintaining the Fun Zone. Maintaining discipline among the employees.

Appraisal process
A process of encouraging and nurturing a culture of continuous improvement, which identifies and aligns organizational goals with individual development.

Objectives:
To assess the individuals performance for last year. To identify areas of improvement. To establish a clear linkage between the performance and financial rewards and thereby create a pay for performance culture in organization.

Scope: All functions and jobs Guidelines:

are covered by this process.

The HOD does the appraisal. The appraisal is conducted in the month of March.

 Self-appraisal is a part of the appraisal exercise. Final rating is not disclosed to the appraise.

TRAINING AND DEVELOPMENT

TRAINING AREAS FOR WORKERS INCLUDE: Skill Development activities in assistance with the technical department. Behavioral Attitudinal and improve The quality of work life, Communication skills Teamwork. Development of workers with assistance of internal and external faculty. Games and Role-playing techniques are used to motivate the workers

DISCIPLINARY PROCEDURES
ATTENDANCE: Punch Cards are used to record the attendance of all the
employees. The attendance is also stored in the MASTER ROLL register by the HR department. General shift- from 9:00 a.m. to 6:00 p.m. 11:30 a.m. to8: 30 p.m.

1:30 p.m. to10:30 p.m

Availability of leave:
All employees of the Company shall be entitled to the following leave All Purpose Leave Compensatory Off: is granted to employees for working on holidays or for working on extra shifts. . PAYMENTS AND welfare of staff and workers in fulfillment of govt. norms Salary and wages include basic salary, overtime payment, ESI (employees state insurance), and PF (provident fund). Above 8 hours is considered as overtime for workers and they are to be paid twice the normal rate. ESI contribution by employees is 1.75% of wages and by the employer is 4.75% of wages. PF contribution by employee is 12% and by employer is also 12 %( 3.67%to PF (to a limit of 6500) and 8.33% to Pension fund). Advance PF can be availed if the person has worked for a minimum of 5yrs and have a minimum balance of Rs.20000 as PF contribution. A bonus of 20% is given to those whose basic salary is up to Rs.3500. Gratuity is payable after completion of a minimum of 5yrs of service or in case of death or permanent disablement.

EMPLOYEE BENEFITS
Locker Facility Uniforms Gift Vouchers Loans Salary advance , Special Privilege scheme Late sitting Allowance , Celebrations Pantaloon Shishya, Seekho Pantaloon Foundation

UNIFORMS

All uniformed employees receive 2 or 3 sets of uniform, depending on their designation and nature of work.

INTRODUCTION --Theoretical Framework of PERFORMANCE APPRAISAL

Definition
Performance appraisal provides a periodic review and evaluation of an individual's job performance. Although the appraisal forms may only be completed once a year, the job of performance appraisal is continuous sometimes daily - and requires effective communication on both the part of the supervisor and the employee. The supervisor is

ultimately responsible to make sure these conversations actually take place and are documented. It is essential that the supervisor hold all performance discussions and documentation in complete confidence. One employees performance should never be discussed with another employee. This is one of the best ways for a supervisor to lose the trust of all employees. The completed Performance Appraisal forms are maintained in the employees personnel file in Human Resources and are released only to the employee, the supervisor or other persons authorized by law, regulation, or policy.

Uses
Performance appraisal has many uses, but perhaps the most important is that it provides employees with critical feedback with which they can improve their performance. Without your feedback, your employee may have a difficult time figuring out what you want done differently.

It also provides supervisors with critical feedback with which they can help employees improve their performance and often also provides supervisors with ideas on how they can become a better supervisor. Training needs should be identified during performance discussions. If an employee is having trouble completing assignments, you should always investigate whether you have provided the employee with all needed training for the tasks. Just because other

employees may not have needed additional training, doesnt mean none of them need training. The University may use completed performance appraisals for many things, including Determining the promo ability of employees; Validating tests used for recruitment and selection; Evaluating the training program to find areas where additional training needs to be offered and possibly To determine merit pay when applicable. Employees wishing to have their performance appraisals reviewed by potential supervisors for consideration for a new position need to make sure Human Resources are aware of their wishes. As an employee, you should use your performance to help you plan your career and assess strengths and weaknesses to identify potential job growth. Since performance evaluations may also be used in legal disputes, it is essential that the information entered is truthful, accurate and based on performance, not personalities, rumors, or opinions. The annual performance appraisal must NOT be the sole basis for initiating formal discipline. When employee performance requires correction, it is the supervisors job to identify the problem, discuss it with the employee, and document the discussion as soon as the correction is identified. There should be no surprises during the annual discussion.

METHODS OF APPRAISAL

Performance Appraisal

Traditional Methods Methods

Ideal

Traditional Methods
Unstructured appraisal Employee Ranking Forced Distribution Graphic Rating Scales Check Lists Critical Incidents Field Review

IDEAL Methods
Management by Objectives Behaviorally Anchored Rating Scales 360 Degrees Appraisal The Balanced Scorecard

Essay Method
In the essay method approach, the appraiser prepares a written statement about the employee being appraised. The statement usually concentrates on describing specific strengths and weaknesses in job performance. It also suggests courses of action to remedy the identified problem areas. The statement may be written and edited by the appraiser alone, or it be composed in collaboration with the appraise

Advantages
The essay method is far less structured and confining than the rating scale method. It permits the appraiser to examine almost any relevant issue or attribute of performance. This contrasts sharply with methods where the appraisal criteria are rigidly defined. Appraisers may place whatever degree of emphasis on issues or attributes that they feel appropriate. Thus the process is open-ended and very flexible. The appraiser is not locked into an appraisal system the limits expression or assumes that employee traits can be neatly dissected and scaled.

Disadvantages
Essay methods are time-consuming and difficult to administer. Appraisers often find the essay technique more demanding than methods such as rating scales. The techniques greatest advantage - freedom of expression - is also its greatest handicap. The varying writing skills of appraisers can upset and distort the whole process. The process is subjective and, in consequence, it is difficult to compare and contrast the results of individuals or to draw any broad conclusions about organizational needs.

Graphic Rating Scales

The rating scale method offers a high degree of structure for appraisals. Each employee trait or characteristic is rated on a bipolar scale that usually has several points ranging from "poor" to "excellent" (or some similar arrangement). The traits assessed on these scales include employee attributes such as cooperation, communications ability, initiative, punctuality and technical (work skills) competence. The nature and scope of the traits selected for inclusion is limited only by the imagination of the scale's designer, or by the organization's need to know. The one major provision in selecting traits is that they should be in some way relevant to the appraisers job. The traits selected by some organizations have been unwise and have resulted in legal action on the grounds of discrimination.

Advantages
The greatest advantage of rating scales is that they are structured and standardized. This allows ratings to be easily compared and contrasted - even for entire workforces. Each employee is subjected to the same basic appraisal process and rating criteria, with the same range of responses. This encourages equality in treatment for all appraise and imposes standard measures of performance across all parts of the organization. Rating scale methods are easy to use and understand. The concept of the rating scale makes obvious sense; both appraisers and appraise have an intuitive appreciation for the simple and efficient logic of the bipolar scale. The result is widespread acceptance and popularity for this approach.

Trait Relevance
Are the selected rating-scale traits clearly relevant to the jobs of all the appraise It is inevitable that with a standardized and fixed system of appraisal that certain traits will have a greater relevance in some jobs than in others. For example, the trait "initiative" might not be very important in a job that is tightly defined and rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an employee lacks initiative. Rather, it may reflect that fact that an employee has few opportunities to use and display that particular trait.

Rating Errors
The problem here is not so much errors in perception as errors in appraiser judgment and motive. Unlike perceptual errors, these errors may be (at times) deliberate. The most common rating error is central tendency. Busy appraisers, or those wary of confrontations and repercussions, may be tempted to dole out too many passive, middleof-the-road ratings (e.g., "satisfactory" or "adequate"), regardless of the actual performance of a subordinate. Thus the spread of ratings tends to clump excessively around the middle of the scale. This problem is worsened in organizations where the appraisal process does not enjoy strong management support, or where the appraisers do not feel confident with the task of appraisal

Field review
When there is reason to suspect rater bias, when some raters appear to be using higher standards than others, or when comparability of ratings is essential, essay or graphic ratings are often combined with a systematic review process. The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter- rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. This group-judgment technique tends to be more fair and more valid than individual ratings and permits the central staff to develop an awareness of the varying degrees of leniency or severity -as well as bias- exhibited by raters in different departments. On the negative side, the process is very time consuming.

Forced-choice rating
Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party. Although there are many variations of this method, the most common one asks raters to choose from among groups of statements those which best fit the individual being rated and those which least fit him. The statements are then weighted or scored, very much the way a psychological test is scored. People with high scores are, by definition, the better employees; those with low scores are the poorer ones. Since the rater does not know what the scoring weights for each statement are, in theory at least, he cannot play favorites. He simply describes his people, and someone in the personnel department applies the scoring weights to determine who gets the best rating. The rationale behind this technique is difficult to fault. It is the same rationale used in developing selection test batteries. In practice, however, the forced-choice method tends to irritate raters, who feel they are not being trusted. They want to say openly how they rate someone and not be second-guessed or tricked into making "honest" appraisals. A few clever raters have even found ways to beat the system. When they want to give average employee Harry Smith a high rating, they simply describe the best employee they know. If the best employee is Elliott Jones, they describe Jones on Smith's forcedchoice form. Thus, Smith gets a good rating and hopefully a raise. An additional drawback is the difficulty and cost of developing forms. Consequently, the technique is usually limited to middle- and lower-management levels where the jobs are sufficiently similar to make standard or common forms feasible. Finally, forced-choice forms tend to be of little value- and probably have a negative effect- when used in performance appraisal interviews.

Critical incident appraisal

The discussion of ratings with employees has, in many companies, proved to be a traumatic experience for supervisors. Some have learned from bitter experience what General Electric later documented; people who receive honest but negative feedback are typically not motivated to do better - and often do worse - after the appraisal interview. Consequently, supervisors tend to avoid such interviews, or if forced to hold them, avoid giving negative ratings when the ratings have to be shown to the employee. One stumbling block has no doubt been the unsatisfactory rating form used. Typically, these are graphic scales that often include rather vague traits like initiative, cooperativeness, reliability, and even personality. Discussing these with an employee can be difficult. The critical incident technique looks like a natural to some people for performance review interviews, because it gives a supervisor actual, factual incidents to discuss with an employee. Supervisors are asked to keep a record, a "little black book," on each employee and to record actual incidents of positive or negative behavior. For example: Bob Mitchell, who has been rated as somewhat unreliable, fails to meet several deadlines during the appraisal period. His supervisor makes a note of these incidents and is now prepared with hard, factual data "Bob, I rated you down on reliability because, on three different occasions over the last two months, you told me you would do something and you didn't do it. You remember six weeks ago when I . . ." Instead of arguing over traits, the discussion now deals with actual behavior. Possibly, Bob has misunderstood the supervisor or has good reasons for his apparent "unreliability." If so, he now has an opportunity to respond. His performance, not his personality, is being criticized. He knows specifically how to perform differently if he wants to be rated higher the next time. Of course, Bob might feel the supervisor was using unfairly high standards in evaluating his performance. But at least he would know just what those standards are. There are, however, several drawbacks to this approach. It requires that supervisors jot down incidents on a daily or, at the very least, a weekly basis. This can become a chore. Furthermore, the critical incident rating technique need not, but may, cause a supervisor to delay feedback to employees.

Results Method (MBO Method)

The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO (management by objectives) methods of performance appraisal are resultsoriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. Usually the objectives are established jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the gross monthly sales volume to $250,000 by 30 June. Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress.

Advantages
The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured. Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of their abilities. The guiding principle of the MBO approach is that direct results can be observed, whereas the traits and attributes of employees (which may or may not contribute to performance) must be guessed at or inferred. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts - as one might take apart an engine to study it. But put all the parts together and the performance may be directly observed and measured.

Disadvantages
MBO methods of performance appraisal can give employees a satisfying sense of autonomy and achievement. But on the downside, they can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring. Unfortunately, research studies have shown repeatedly that human beings tend to lack the skills needed to do their own "reality checking". Nor are these skills easily conveyed by training. Reality itself is an intensely personal experience, prone to all forms of perceptual bias. One of the strengths of the MBO method is the clarity of purpose that flows from a set of well-articulated objectives. But this can be

BARS (Behaviorally Anchored Rating Scales)

The method was developed by Smith and Kendall. The BARS approach relies on the use of critical incidents to serve as anchor statements on a scale. A BARS rating form usually contains 6 to 10 specifically defined performance dimensions, each with 5 to 6 critical incident anchors (both positive and negative). Employees prefer the using of this method instead of others, as it seems that they become more committed, less tense and more satisfied than in case using other methods.

Benefits of Appraisal
Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily working life, it offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-one discussion of important work issues that might not otherwise be addressed. Almost universally, where performance appraisal is conducted properly, both supervisors and subordinates have reported the experience as beneficial and positive. Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced. For many employees, an "official" appraisal interview may be the only time they get to have exclusive, uninterrupted access to their supervisor. Said one employee of a large organization after his first formal performance appraisal, "In twenty years of work, that's the first time anyone has ever bothered to sit down and tell me how I'm doing. The value of this intense and purposeful interaction between a supervisors and subordinate should not be underestimated.

Motivation and Satisfaction

Performance appraisal can have a profound effect on levels of employee motivation and satisfaction - for better as well as for worse. Performance appraisal provides employees with recognition for their work efforts. The power of social recognition as an incentive has been long noted. In fact, there is evidence

that human beings will even prefer negative recognition in preference to no recognition at all. If nothing else, the existence of an appraisal program indicates to an employee that the organization is genuinely interested in their individual performance and development. This alone can have a positive influence on the individual's sense of worth, commitment and belonging. The strength and prevalence of this natural human desire for individual recognition should not be overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if more attention were paid to it. Regular performance appraisal, at least, is a good start.

Training and Development

Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur - for a supervisor and subordinate to recognize and agree upon individual training and development needs. During the discussion of an employee's work performance, the presence or absence of work skills can become very obvious - even to those who habitually reject the idea of training for them! Performance appraisal can make the need for training more pressing and relevant by linking it clearly to performance outcomes and future career aspirations. From the point of view of the organization as a whole, consolidated appraisal data can form a picture of the overall demand for training. This data may be analyzed by variables such as sex, department, etc. In this respect, performance appraisal can provide a regular and efficient training needs audit for the entire organization.

Recruitment and Induction

Appraisal data can be used to monitor the success of the organization's recruitment and induction practices. For example, how well are the employees performing who were hired in the past two years? Appraisal data can also be used to monitor the effectiveness of changes in recruitment strategies. By following the yearly data related to new hires (and given sufficient numbers on which to base the analysis) it is possible to assess whether the general quality of the workforce is improving, staying steady, or declining.

Employee Evaluation
Though often understated or even denied, evaluation is a legitimate and major objective of performance appraisal. But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since evaluative and developmental priorities appear to frequently clash. Yet at its most basic level, performance appraisal is the process of examining and evaluating the performance of an individual. Though organizations have a clear right - some would say a duty - to conduct such evaluations of performance, many still recoil from the idea. To them, the explicit process of judgment can be dehumanizing and demoralizing and a source of anxiety and distress to employees. It is been said by some that appraisal cannot serve the needs of evaluation and development at the same time; it must be one or the other. But there may be an acceptable middle ground, where the need to evaluate employees objectively, and the need to encourage and develop them, can be balanced.

Performance Standards
Performance standards are what we use to differentiate between acceptable and unacceptable behavior. The standards are identified for each of the job elements and explain what satisfactory performance will look like. Justification must be provided for any less than satisfactory rating. The employees should have been notified well before the formal annual appraisal if they will be rated less than Meets Expectations.

Ratings Definitions
Use the following as a general guide when determining your ratings for each item:

Unacceptable:

Well below minimum requirements; not effective;

fails to satisfactorily accomplish virtually all aspects of the job element; has negative impact on the department in the job element

Needs Improvement:

Usually below acceptable standards; not

proficient; fails to satisfactorily accomplish some of the aspects of the job element; requires more than average supervision; needs development

Meets Expectations: Consistently meets all requirements of the

job element; solid performer; fully competent

Exceeds Expectations:
the job element.

Generally exceeds expected results;

high quality results; well above average; has positive impact on the department in

Performance Goals (SMART)

Performance goals must have certain characteristics in order to be effective. Goals must be:

S) Specific M) Measurable A) Attainable R) Relevant T) Tractable

Be sure goals and objectives are clearly connected to the department or University strategy or vision.

Rating Errors
It is the supervisors responsibility to ensure the Performance Appraisal accurately reflects the performance of the employee. Rating employees on their performance alone is not easy. Most raters (even the best) make many common mistakes. If you are going to have an effective rating system, you must avoid making any of the following rating errors:

Halo/Horn - allowing perceptions of performance on one rating

dimension to affect the rating of all performance dimensions. An employee who has difficulty working with others may rate very high in dependability or job knowledge.

Leniency/Severity - Rating easy or harsh regardless of

performance. This is usually done with employees we especially like or employees we may not like so much. Be sure to rate the performance, not how we feel personally about the person.

Central Tendency - Rating everyone average regardless of performance. This takes a lot of responsibility off the supervisors shoulders as it is difficult for any one to complain since no one got either a very good or a very bad rating. It could also mean rating the same employee average in all behaviors or job elements. Contrast Effect - comparing employees with one another. Remember that you rate each employees performance against the job descriptionnot how they compare with other employees, or how they compare with the last employee in that job. Primacy/Regency - First impression and memory errors. We remember best what we see either first or last. This is a good reason to keep an event record/log. Using this method should eliminate this error along with several others mentioned above. Escalation of Commitment - as familiarity increases commitment increases. Once we have made up our mind about an employee good or bad it is difficult to change our opinion. We look for good behavior in good employees and we look for bad behavior in bad employees. We continue to look for and only see behavior that supports our opinion.

Self-fulfilling Prophecy - managers who hire employees

usually want them to succeed. It is a good reflection on the good manager. At the same time, managers may not expect success from an employee that someone else

selected. It is also easy to put too much credence in what others have told you about this employee. We look for performance that supports our beliefs and disregard performance that is contrary to our beliefs. This is also called the Pygmalion Effect.

Bias

- value systems affects opinions. For example, it may be difficult to

consider someone of a different religion or ethnic group as being a good person, and so it may be difficult to rate them as a good employee. Stereotyping If we consider a certain group of people as hard working then we may tend to rate anyone in that group as being highly productive even if they are not.

Glass Ceiling Effect The supervisor may sometimes decide

when an employee has reached their peak performance and stop challenging the employee to continue to improve.

Appraisal Process In Pantaloon retail India Limited

In the Beginning

At the beginning of the rating cycle you and your employee must reach an understanding of how the appraisal process is going to proceed. You should begin by reviewing the position description and determining which Position Specific Factors will be used to evaluate the employee. Although you need to discuss this with the employee, you need to get their input and then make the final decision. You might want to select the area with the greatest percentage of time assessed to it, or you may want to select one that is very critical to the success of the employee. In any case, you should select the areas that you want the employee to concentrate on during the cycle because what gets measured gets done. You also need to determine which of the Job Elements will be rated. You may want to rate all of the elements or you may decide that up to two of the elements are not important for this job and leave them out of the evaluation. Again, although you will discuss this with your employee, you will make the final decision. The last thing you will need to do is determine and document at least two goals for the employee. Once it is clear how the employee will be evaluated, you should both sign the form and you should give the employee a copy.

During the cycle

As the year goes by, you need to have regular contact with your employee so you can actually see for yourself what is going on and discuss it with the employee as needed. Make regular entries in the Event Record/Log and discuss each entry with your employee. You should include both positive and negative events. Address any problems as they come up and take any necessary action to correct them. As you make entries in the log, be sure to provide a copy to the employee.

30 days and counting

About 30 days before you plan to conduct your annual appraisal discussion, meet with the employee and make sure they are aware of the scheduled meeting time and place, and also they have a copy of all Event Records/Logs as well as the originally agreed to Appraisal Form. Give the employee a blank copy of the Employee Worksheet and ask them to complete it and bring it with them to the meeting.

The Day has Come

On the day of the appraisal discussion review all the forms together with the employee. You may use the Checklist at the end of this booklet as a guide for the discussion. Remember to review performance not personalities. Discuss and document next years goals, position specific factors and job elements and you are done. If you have followed the steps up to now, addressed problems as they occur and discuss performance regularly with the employee, this meeting should be a snap.

When the Dance is Done

After your appraisal meeting you should formalize the form according to the discussion, 1) Get the employees signature on the form; 2) Provide a copy to the employee; and 3) Forward the original copy to your department director for signature and forwarding to Human Resources.

Evaluate the System

Now that you have completed a cycle, you should evaluate the system to be sure your employee understands the feedback and to see if there is a positive change in performance as a result of the appraisal.

360 Degree
About 360 Degree Feedback
The (360 degree) feedback process...involves collecting perceptions about a persons behavior and the impact of that behavior from the persons boss or bosses, direct reports, colleagues, fellow members of project teams, internal and external customers, and suppliers. Other names for 360 degree feedback are multi-rater feedback, multi-source feedback, full-circle appraisal, and group performance review" I Pantaloon Retail India Ltd. In order for an organization to be ready for effective 360-degree feedback, a number of questions need to be answered. The effectiveness of the feedback is directly linked to the integrity of the process, and the integrity of the process is measured in terms of commitment, clarity of purpose, and follow-up. A 360-degree feedback team is recommended for accomplishing a detailed plan to address these issues prior to implementation

360-degree performance appraisals: More value, or just more to ignore? Although it seems like performance evaluations should be a logical and productive part of an employees development, they are often not anything more than ignored. We have all heard comments similar to: Why should we do these appraisals at all? Employees just ignore them and the company spends more money on these programs without getting any results or I dont see the point; I never get anything that actually helps me improve my performance! Statements like these reflect a widely-accepted reality: few people seem to value performance appraisals. Employees often consider the process biased, with unsupported ratings that do not reflect the work they actually do. The appraisal either just pats them on the back, or criticizes them with no workable suggestions for improvement. Their

review has become just another distraction during the annual (or less frequent) evaluation process. On the other hand, managers for the most part arent equipped to give productive feedback; often they are afraid to provide negative feedback because of legal threats or they do not want to adversely affect someones already small bonus; they are forced to spend hours filling out detailed forms and looking up figures or trying to remember specifics to evaluate their direct reports. But hold on Becky, there is a way to do performance evaluations more effectively, a way to save the process from becoming disregarded. Multi-rater or 360-degree appraisals can provide an accurate and acceptable way to evaluate performance while saving managers time and effort. 360-degree appraisals are founded on the idea that any employees performance is seen by many otherstheir manager, peers, direct reports, customers, etc. Nevertheless, none of these people see anyone elses performance all the time. 360- degree appraisals improve on any evaluation done by one person by combining ratings from many people who see different parts of an employees performance. For example, direct reports probably have the best understanding of someones delegating skills, while managers probably see someones results-focus most clearly. To get a complete image of performance, then, data is gathered from others with various relationships to the employee. Many 360-degree appraisal programs also have the employee rate how they think everyone else will rate them. While someones self evaluation may not be the best data on which to base pay raises, it often provides an eye-opening comparison that can serve as a good starting point for development. Gathering input from all of these pointsof-view provides a fuller picture of someones performance. In simple terms, 360-degree appraisals give a 3-dimensional performance report, whereas traditional performance appraisals only give a 1- dimensional report. Traditional performance appraisals often focus on goal attainment: how close did someone come to their sales goal, or did someone meet the minimum customer service rating. Most likely, there are only a couple of people in the organization who have the data to answer these types of questions. Because of this, goal-based appraisals limit the

amount of input that is available for a performance appraisal. 360-degree appraisals broaden the amount of usable input to target perceptions of an employees effectiveness. This approach takes advantage of the various relationships represented in the group of raters. So, while typically only an employees boss knows whether her/his cost-cutting goals were met for the most recent quarter, many more people will have perceptions of that employees financial skills, diligence, fiscal responsibility, etcall the things necessary to reach those goals. Also, by concentrating on competencies rather than goals, the data readily lends itself to personal development. These features of 360-degree appraisals offer several advantages that help prevent it from just becoming more to ignore: Gathering input from multiple sources ensures that individual ratings can be anonymous. Each rater, then, can be encouraged to be open and honest since their feedback cannot be singled out from the groups. Multiple sources of data also mean that ratings reflect multiple perspectives instead of the single top-down view afforded by traditional appraisals. Combined with the added anonymity, these ratings should give a fuller, more accurate picture of an employees performance. Since the data describes perceptions of effectiveness, using feedback for personal development is very easy. Instead of showing someone that they made their goals or not, or providing feedback in personality terms (which, more often than not, feels like a personal attack), an employee is shown how others perceive his/her behavior. Behaviors and perceptions are much easier to change than personality. And, unlike met or unmet goals, behaviors are specific and directly actionable. Managers only have to complete one form per employee, usually taking about 15 minutes each. There are no figures to research, no goals to look up from last year, no distribution of overall performance to worry about, no endless comparisons between employees. Compared with other performance appraisal approaches, managers are saving time and employees are getting more useful performance feedback

The Balanced Scorecard

Utilizing the four perspectives of the balanced scorecard as a framework for examining organizational readiness, the team would involve themselves in creating a plan which addresses the following:

Internal Business Process Perspective

Is 360 degree feedback needed to support the implementation of a corporate strategy or the accomplishment of a corporate goal? What is HRs and top managements role in the process? How will employee development plans be created utilizing the feedback? How will these development plans be utilized to align behaviors/expectations needed to successfully implement the corporate strategy or goal identified?

Financial Perspective
Are sufficient resources available to insure a high integrity 360 degree feedback process? Have funds been budgeted for follow-up activities, such as staff training? How does the corporate strategy or goal driving the process affect the bottom line?

Learning Perspective
How will individual development needs identified in the process be addressed? Will supervisors require training in order to address the identified needs of subordinates? Will HR utilize aggregate data on employee needs to create an organization-wide development plan?

Why Pantaloon retail India Ltd Consider 360 Degree Feedback for Your Organization
"To decide whether 360 degree feedback could be useful in your organization, ask yourself the following questions: Can your company meet the challenges represented by developments like consolidation, increased competition, global expansion...using the same skills and behaviors as in the past? If people need to change their behaviors to ensure the organizations future success, are they clear about exactly what they need to do differently, and do they feel equipped to make those changes? Is the behavior of people in the organization sufficiently consistent with the vision, mission, and espoused values of the company? Is there a formal system in place through which people receive information on how others perceive their behavior and their performance?... Do selection and development systems accurately reflect the current and future requirements of the jobs being done?"

Employee development plans be created utilizing the feedback

The 360 degree feedback team will need to address the issue of how the employee development plans will be created. Will the employee be the sole recipient of the feedback and responsible for developing his own plan, or will he be required to share some or all of his feedback with his superior and work on the plan together? These questions will need to be addressed prior to implementation of the process, because any changes in confidentiality agreements (who sees the feedback) during the process would severely undermine its integrity. "This evaluation technique enables companies to align employee performance with the organizations needs and overall strategy and leads to the development of a more involved, less hierarchical workforce...When 360 degree feedback is used, contrasting the

results of self-evaluation against organizational norms illuminates areas of the business plan that need more attention from the employee

Customer Perspective
For employees who interact with customers, the 360 degree feedback process may include customer feedback, depending upon the overall strategy or goal of the process. "Incorporating customer feedback in the evaluation process emphasizes the importance of client expectations in determining company focus" 360 degree feedback can be used to support a corporate strategy of shifting the focus of the company from meeting the internal needs of the department or functional unit to meeting the needs of the customer. In this way, customer involvement can be used to enhance strategic alignment and facilitate to-to-bottom focus (i.e., aligning goals from the organizational to the individual level

HR and top managements role in the process

top management be the first participants in the 360 degree feedback process. "We chose that route because we wanted to show people at other levels that they were part of senior managements development and also to provide them with a model for being open. When they saw that top-level executives were willing to open up to what people were saying about them, and to the fact that they needed to develop their skills, it created more willingness on the part of less senior people to undergo the process later on

HR role
HRs vision for the process can lead the way to achieving needed organizational change. "HR is shaped by the business goals, the corporate culture, the competitive position, and the workforce demographics of each organization it serves...In the 90s, HR has grappled with many key business challenges: aligning HR practices with business goals, using HR practices to better connect with a customer base, establishing effective partnerships while maintaining a distinct corporate culture" HR should strive to create and communicate a shared vision of the goals of the 360 degree feedback process, and should support the process with its technical expertise and resources. In addition, HR will play a key role in developing organization-wide development plans based on the training and other identified needs of employees. The plan may well include HRs playing a role in monitoring and tracking a number of follow-up activities, as well as measuring and reporting progress or improvements in achieving the companys overall goal or strategy.

CONCLUSION
"360 degree feedback can promote individual development and improve individual performance if the feedback is linked to developmental planning, goal setting, and organizational support The four conditions that will maximize the value of the 360 degree feedback process: the intervention is business-driven the organization clearly needs the measured behaviors to support a corporate strategy or goal the survey instrument and administration process are reliable and valid conditions for learning new skills exist .Recommendations from practitioners of 360 degree feedback: Link the effort to a strategic initiative or a business need. "For 360 degree feedback to be effective as a stimulus for change, people need to understand its broader purpose" Get senior management to participate in and drive the effort. "If the feedback is seen as something the top tells the middle to do to the bottom, it is less likely to have the intended effect"

Emphasize clear and frequent communication about the initiatives purpose and implications for each member of the organization. "The more people understand about why 360 degree feedback is being introduced in the organization and how the information will be used, the more likely they are to support the effort" Ensure that people see the behaviors that will be measured as important and relevant to their jobs. "It is much easier to gain peoples commitment...if they believe the behaviors that will be measured are directly related to the effective performance of their jobs" Provide ongoing support and follow-up. "People need clarification about what is expected of them after they receive the feedback, as well as ongoing support, if what they have learned is going to lead to action or change" "Including employees from multiple layers in the feedback process is concrete evidence that their opinions, observations and evaluations are valued by the organization. Creating an atmosphere that accents involvement can foster voluntary collaboration, an element sometimes sacrificed in traditional, striated cultures" Successful implementation of a 360 degree feedback process depends on whether it truly addresses, and is perceived to address, an important performance strategy or goal in the company. In addition to the benefits of exchanging feedback, its also a way to get people accustomed to living in a feedback-rich environment. When done well, 360 degree feedback systems can lead to positive change and enhanced effectiveness at the individual, team, and organizational levels

Dos & Donts for a productive 360-degree appraisal process

DO:
Provide usable feedback by focusing on competencies rather than personality. Review each employees raters to make sure the group can provide a full and accurate evaluation. Follow through with each employee to see that action plans are made and implemented. Get support for the program from top management, as that can go a long way in encouraging employees to buy into the program. Repeat the process regularly so employees can gauge their development.

DONT:
Use personality-based items that often cause employees to become defensive. Make the rating instrument too long or complex. That will just discourage honest and complete ratings. Just grab a 360-degree instrument off-the-shelf. Make sure it is tailored to reflect the work that is actually done in your organization. Compromise confidentiality and anonymity by letting people know who is rating whom. Promote or reassign anyone without knowing they have the skills to be successfuldo a 360-degree appraisal first!

Analysis & Conclusion

Total number of respondents = 100 employees (78 workers, 16 officers, 6 managers)

1. The employees defined the performance appraisal system of Pantaloon retail India Ltd as follows:

EXCELLENT 0% 3% 12% AVERAGE 65% 20% SATISFACTORY NEEDS SIGNIFICANT CHANGES GOOD

The majority of employees i.e. about 65% feel that the current performance appraisal system needs significant changes and the majority of remaining employees also feels that the system is satisfactory but not the best. Only 3% employees feel that the performance appraisal system is good and none of the employees felt that the performance appraisal system is excellent. An employee should be assessed at the following time interval according to the employees of Pantaloon Retail India Ltd.

2.Appropriate rater to appraise the employee is:

IMMEDIATE SUPERVISOR 20% 40% DEPARTMENTAL HEADS SUBORDINATES 5% 2% 6% 2% 15% 10% RATING COMMITTEE SELF APPRAISAL ALL OF ABOVE PEERS CLIENTS

A major chunk of the employees i.e. 40% feel that appraisal should be conducted by all the people with whom the employee deals, for instance peers, subordinates, clients, immediate superior, self-appraisal etc. In short the employees support the concept of 360degree feedback. The next favourite appraiser in the eyes of the employees is their immediate supervisor.

Interval at which an assessed is as follows:

18%

employee

should

be

25%

ANNUALLY

HALF YEARLY

QUARTERLY

57%

Majority of the employees i.e., about 57% feel that the appraisal should be done half yearly i.e. after six months as it leads to a fair picture of the employee. 25% of the employees feel that the appraisal should be done on quarterly basis and only 18% feel that appraisal should be done annually.

3.Method of appraisal to be followed as follows:

30%

PAST ORIENTED FUTURE ORIENTED BOTH

56% 14%

Majority of the employees that is about 56% feel that the appraisal should be done on the basis of both past and future orientation. They feel that this is the best basis of assessing an employee as the work done by an employee in the past is important and at the same time it is necessary to know the potential of an employee to handle new job in the future. But there are still some employees i.e. about 30% who still feel that the appraisal should be only on the basis of the past performance of an employee. There is another segment of employees who want their appraisals to be done on the basis of future orientation.

1.Degree of transparency/openness in the present system of performance appraisal:

100% 80% 60% 40% 20% 0% YES NO 22% 78% YES NO

It is evident that there is no transparency/openness in the current system of performance appraisal in the Pantaloon Retail India LTD as 78% of employees feel so. One of the reasons for it can be the wrong and stringent attitude of the appraisers. Nontransparency leads to a lot of problems in the organization.

CONCLUSIONS The conclusion is based on the results of the survey, observation and discussion with the employees in the organization. The employees in the organization are not satisfied with the current performance appraisal system and feel that the current system of performance appraisal needs significant changes. The employees are not comfortable with their performance being evaluated over a period of a year as they feel that this reduces objectivity and increases subjectivity. The appraisers usually do not remember the employees performance of the past one-year and the appraisal is done on the basis of employees achievements or shortcoming of the near past. The appraisers while evaluating the employees performance ignore the future perspective. Employees expect their appraisers to take past as well as future perspective while evaluating their performance. The organization focuses and stresses on paperwork and forms. But the focus needs to be on the employees performance. When HR departments focus on getting the forms done, thats exactly what they get. Forms done. If thats what all this is about, anyone can tick off boxes on a form and send it on and this is exactly what happens at Pantaloon retail India Ltd. The employees are not trained about performance appraisal. If a manager and employee hold the same understanding about why they are doing appraisal, how it will be done, and what is expected, the possibility of an accurate appraisal is more probable. An appraisal is done WITH an employee, not TO an employee.

 The employees are appraised by their HODs and not by their immediate supervisors. As a result a true appraisal is not possible. The HODs due to their busy nature of jobs are not able to spare time for the appraisals and when they get time they do it hurriedly and do injustice to most of the employees The HODs do not encourage a healthy discussion and as a result employees are too scared to speak to their HODs about their performance and just agree to what the HOD says. The employees just sign the appraisal form without knowing what is in it. Lack of transparency leads to dissatisfaction among the employees and hampers their desire to do work and instead of getting motivated, they get de motivated. The appraisal of most of the employees falls due in the month of June but it is often delayed till July or August. The delay in appraisal results in a further delay in the employees getting their increments which is a matter of great concern.. The discussions revealed that the training needs, which are identified during the appraisal process, are not of any value as the employees are never given training to improve their shortcomings and it is just a formality in the appraisal form. Biasness and favoritism are prevalent in the appraisal process as only a single person is appraising an employee. The employees who have a good impression on the HOD and get along well with their HODs have a better appraisal as compare to others and in turn also get higher increments. All the above reasons lead to the employees dissatisfaction and loss of morale. As a result the organization is facing a very high labor turnover rate. There are minor flaws which can be easily rectified but ignorance on the part of management is leading to employees quitting their jobs and going elsewhere.

BIBLIOGRAPHY: Einstein, W. O., & LeMere-Labonte, J. 1989. Performance appraisal: dilemma or desire? Sam Advanced Management Journal, 54 (2): 26-30. Monga, M. L. 1983. Management of Performance Appraisal. Bombay: Himalaya Publishing House. Oberg, W. 1972. Make performance appraisal relevant. Harvard Business Review, January-February 1972: 61-67. Patten, T. H., Jr. 1982. A Manager's Guide to Performance Appraisal. London: Free Press. Rao, T. V. 1985. Performance Appraisal Theory and Practice. New Delhi: Vikas Publishing House. Craig, S. E., Beatty, R. W., & Baird, L. S. 1986. Creating a performance management system. Training and Development Journal, April: 38-42; May: 7479. Kubo, H. (1990, February 14-16). Improving Employee Communications. Presented at Pacific North West Orchard Business Shortcourse. Washington State University and Oregon State University. Scholtes, P. R. (1988). The Team Handbook: How to Use Teams to Improve Quality (p.6-25). Joiner Associates. Latham, G. P., & Locke, E. A. (1983). Goal SettingA Motivational Technique That Works. In Contemporary Problems in Personnel (3rd ed.) (pp. 313-324). Edited by Pearlman, K., Schmidt, F. L., & Hamner, W. C.York: Schlei, B. L., & Grossman, P. (1983). Employment Discrimination Law (p. 531).

ANNEXURE
QUESTIONNAIRE

PERSONAL INFORMATION: NAME (optional): _____________________________________ DESIGNATION: _____________________________________ GRADE: ____________________________________________ DEPARTMENT: _____________________________________ WORKING IN THE ORGANISATION SINCE: ____________ RESPONSE TO THE CURRENT PERFORMANCE APPRAISAL SYSTEM: How would you describe the present system of performance appraisal at pantaloon Retail India Ltd. Excellent Average Good Satisfactory Needs Significant Changes Who do you think is the appropriate rater to appraise the employees? Immediate Supervisor Departmental Heads Subordinates Peers Clients Rating Committee Self Appraisal All of the Above How often should an employee be assessed?

Annually Half Yearly Quarterly What method of appraisal should be followed? Past Oriented Future Oriented Or Both Do you feel there is a right degree of transparency/openness in the present system of performance appraisal? YES If No, then give reasons. Are your shortcomings correctly identified during the appraisal process? YES NO NO

Do you feel the training needs identified by your appraiser are correct? YES NO

If No, then, what can be done according to you? Of the following parameters given below in the table, mark the parameters as relevant and irrelevant. S.No. 1. 2. 3. 4. 5. 6. PARAMETRS Technical Skills Trust Leadership Communication Ability Analytical Ability Initiative RELEVANT IRRELEVANT

7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Innovative Ability to Plan Open Mindedness Ability to Organize Ability to delegate Self Confidence Integrity Punctuality Discipline Grooming & Etiquettes Interpersonal Skills Attitude Physical fitness Creativity

List down the factors, which you feel, should be added to the form. Does your performance appraisal help you to improve your performance and overcome your shortcomings? YES NO

If No, then what can be done according to you? If you feel that the current system needs a change, what change would you recommend so that you can have a suitable appraisal system.