A PROJECT REPORT ON PERFORMANCE APPRAISAL

SUMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF THE MASTERS OF BUSINESS ADMINASTRATION (MBA-3rd sem) (Session 2008-10)

Submitted to.

Submitted by-

(PriyankaDhiman)
Fathers name-Sh. Kailash Dhiman Univ. Roll.no.- 1358 Regd. No. Institute Roll no.-4025

PREFACE

Education

becomes

more

meaningful

when

its

theoretical

aspects are combined with practical experience. This provides an opportunity to the students to improve their understanding of the studies. MBA is a course, which combines both its theory and

application as its content of study in the field of Social Work as a part of this course, every aspirant has to undergo at least six weeks Winter Training in an organization of repute. The purpose of this Winter Training is to expose the students or management sciences to real business situation and to provide insight into the various functions carried out within the organization. In order of to use the theoretical Training in knowledge MANKIND I get the

opportunity

Summer

PHARMA

LTD.Paonta Sahib. As complementary to training, I have prepared and submitted a Winter Training report. It is an attempt to present on account of practical Winter Train (PRIYAN KA DHIMAN) knowledge and observations gathered during the

ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people and this work is no different. I take this opportunity to express my appreciation to all those with whom I worked and interacted during my Winter Training and whose thoughts and insight helped me in furthering my knowledge. I wish to express my gratitude to Mr. Manjeet Kumar, Senior Manager, Training & Development for his kind cooperation and guidance during the project. I would like to thank Mr.Saurabh Gautam,Jr. Manager (T & D) for giving me a chance to work with an esteemed organization. He has been constant source of guidance and encouragement in exploring the nuances of the project. I offer my special thanks toMr.Sarabjeet, Jr.Exec. HR(T&D) and Mr.Ravinder singh , (Asitt. HR) who very patiently with incisive observation guided my training on the subject Role of training in employee carrier development. They took special interest in the study and gave me their guidance and pertinent suggestions. I express my gratitude to the Management and the Staff of the Mankind Pharma Ltd. for all their help, cooperation and assistance. At the end Mankind Pharma Ltd. was great learning experience, where I feel the great working environment is one of the vital factors of its success. To all who have helped me, I say thank you. (PRIYANKA DHIMAN)

ABSTRACT
Appraisal is a continuous process and done annually as a formal exercise before completion of the financial year. Appraisal has tremendous motivational impact on people through meaningful feedback and is a powerful tool for recognition. This project explains performance appraisal system and tries to find out how efficiently Performance Appraisal is conducted. And if performance appraisal doesnt meet its objective then, what are the factors causing failure.

CONTENTS

SR.NO.

DESCRIPTION
EXECUTIVE SUMMARY OF PROJECT LITERATURE SURVEY INTRODUCTION OF PROJECT COMPANY OVERVIEW OBJECTIVE OF PROJECT SCOPE OF STUDY RESEARCH METHODOLOGY FINDINGS LIMITATIONS SUGGESTIONS & RECOMMENDATIONS CONCLUSION APPENDICES (QUESTIONNAIRE) BIBLOGRAPHY

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

EXECUTIVE SUMMARY

Performance management is building on that process, adding the relevant communication and action on the progress achieved against these predetermined goals. In organizational development (OD), performance can be thought of as Actual Results vs Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the performance improvement zone. Performance management and improvement can be thought of as a cycle: 1. Performance planning where goals and objectives are established 2. Performance coaching where a manager intervenes to give feedback and adjust performance 3. Performance appraisal where individual performance is formally documented and feedback delivery performance of management system means a ongoing interaction with the participation of employees and direct involvement of customer .it is based on objective and competencies . The present system of performance appraisal is operation since 1998 , and bases on assessing mutually agreed target that are laid down at the beginning of the year .

The finding of the climate survey done in 1996 at all location revealed the dissatisfaction on the efficacy of the system .during the process of organization . alignment model done in

February 99 brought out a need for a review of the performance management system. The purpose of introducing new system is to improve upon a concern areas ,which highlight during the climate survey .

The performance management system is a continuous procees . not just a set of forms which are routinely completed or the annual rituals . performance management system is an on going interactive process , which uses the multiple sources of feed back from the supervisor , colleagues and sometime self appraisal .

Performance management process include three step :-

Target setting process . Feedback process Appraisal process Target setting process:Target setting process is the pre requisites for target setting process in the context , is the

strategic functional plan , which gives a strategic perspective of the function for the next few years . After strategic functional plan and annual functional plan are finalized an dare available , functional goals are then derived which provides financial employees documents . Three broad areas :Functional target Process improvement target Feedback process :Feedback is the reaction toward the some particular performance and behavior . this involved give positive and negative behavior and it is help full to other person can use it to maintain positive aspects of their performance. Appraisal process:appraisal process is the channel of communication between the appraiser and appraisee to discuss the target and what they expect from each others appraisal process by the appraisee measurement the indicator reviewer would review and give the comments for the good result of the performance management system :

punctual responsible towards the job activeness and alertness

LITERATURE SURVEY
Some previous literature survey of performance management system are :Previous Studies on Performance Appraisal. Several committees studied and recommended changes for the Federal performance appraisal system. In 1990, the Committee on Performance Appraisal for Merit Pay, a National Research Council committee established at OPM's request, reviewed current research on performance appraisal and merit pay and supplemented the research findings with an examination of the practices of private sector employers. In 1991, the Pay-for-Performance Labor-Management Committee examined ways to strengthen the linkage between the performance of Federal employees and their pay. Also that year, the Performance Management and Recognition System (PMRS) Review Committee was established to review and recommend improvements to the PMRS system of merit pay for the Government's mid-level managers. All three committees concluded that an appraisal approach must be flexible and decentralized so that it would be able to fit its context of both work technology and organization culture. Consensus was also clear about the value of involving employees in the design and implementation of appraisal and awards systems for increasing credibility and acceptance.

1. Cooperating Sponsors Program Indicators CSS implementing MYAPs are required to develop M&E plans and track and report on performance indicators that permit them and FFP to assess progress made towards objectives. Each MYAP has its own indicators specific to its program. MYAP performance indicators are identified in the Indicator Performance Tracking Table (IPTT) submitted with the original proposal, and updated each November in the programs annual Results Report to reflect progress made in the previous fiscal year (FY). The IPTT indicators should be selected based on the MYAPs strategic framework and implementation strategies, and should be useful for program management and performance reporting. To the extent feasible, these indicators should include well-established food security indicators 1 commonly used by FFP programs . There are generally two types of indicators in the IPTT impact indicators and annual monitoring indicators.
1

As of FY 2006, the M&E system of MYAPs may also include trigger indicators, which form part of an early warning system that alerts the CS and FFP to increasing food stress in the MYAP intervention region. 2. Food for Peace/Washingtons PMP Indicators FFP Washington has its own Performance Management Plan (PMP) designed to measure progress on the Offices 2006-2010 Strategic Plan2. The PMP identifies a limited set of indicators developed to capture results from a wide range of FFP-funded programs. The data source for most of FFPs PMP indicators is the Standardized Annual Performance Questionnaire (SAPQ). As of FY 2006, all css implementing myaps or syaps are required to fill in and submit an SAPQ with their annual Results Report in November of each year. Some of the data for the PMP indicators also comes from the Summary Request and Beneficiary Tracking Table, also submitted as part of the annual Results Report. The FFP PMP indicators and the type of program for which they are applicable are: Strategic Objective: Food Insecurity among Vulnerable Populations Reduced 1. Percentage of underweight children 0-5 years of age in Title II-assisted areas in FFP priority countries (MYAP) 2. Percentage of applicable programs reporting maintenance or improvement in nutritional status (SYAP/MYAP) 3. Average number of months of adequate food provisioning in Title IIassisted program areas (MYAP) 4. Percentage of applicable programs reporting maintenance or improvement in household food consumption (MYAP)

Stakeholder Interests:Many stakeholders had voiced concerns about the Federal performance management system as it operated prior to the 1995 regulations. Employees were dissatisfied with the old system; it was the single greatest source of grievances. Unions expected change to the system based on the recommendations in the Pay-for-Performance Labor-Management Committee report. Management associations expected change based on the
2

recommendations in the PMRS Review Committee report. Taxpayers wanted to see pay-for-performance and individual performance accountability systems for Federal employees in part because many believe that service is poor, that mediocre performance is tolerated, and that pay raises are automatic. Federal managers had been demanding change and expressing growing frustration with the system that did little to add value or help them actually manage performance. And Congress had expressed the strong need to maintain individual accountability through the appraisal process and to ensure that rewards are allocated appropriately and can be justified.

Conflicting Purposes :A principal source of these problems and stakeholders' concerns lay in the underlying conflict between two purposes system designers intended for the performance management procedures and requirements. First, performance appraisal was to be the means of establishing and maintaining individual accountability and the basis for making decisions about rewards and sanctions. But it was also supposed to lead to improved employee and agency performance. Experience has demonstrated that the hard links between ratings and rewards have led inexorably to inflated ratings against standards that do not serve as effective performance targets and stretch goals. While the private sector has not solved the problems this dual use of performance management systems can produce, it does appear that organizational commitment to the performance management system reduces the problems that occur when the summary appraisal is the focus of the system. When the emphasis is on managingrather than primarily judgingperformance, frequent feedback to performers allows for correction of performance deficiencies before the summary appraisal is made.

Government wide Performance Initiatives That Link to Performance Management:-

Fortunately, several Government wide initiatives are leading agencies to reexamine and improve their performance measures. The 1995 performance management regulations are primed to use those measures for managing and rewarding employees. Key performance initiatives require agencies to set goals and standards and to measure their performance in terms of results. When employee and group performance plans are aligned with these agency goals, everyone's efforts are focused on goal achievement and improving organizational performance. Setting goals and measuring performance are part of an effective performance management process. The Government Performance and Results Act of 1993 (GPRA) provides for the establishment of strategic planning and performance measurement in the Federal Government. It requires agencies to develop strategic plans and performance plans for program activities. Those performance plans establish objective, quantifiable, and measurable goals; establish performance indicators; and provide a basis for comparing program results with plan goals. And on September 7, 1993, the President issued Executive Order 12862, "Setting Customer Service Standards," which requires agencies to identify and survey their customers; post customer service standards and measure results against them; and publish a customer service plan that includes customer service standards and describes future plans for customer surveys.

INTRODUCTION OF THE COMPANY

Mankind Pharma Ltd.

MISSON-TO DELIVER MEDICINES THAT ENABLE PATIENTS TO

LIVE,HAPPIER AND MORE ACTIVE LIVES

VISSION- TO BE AMONG THE TOP 3 PHARMACEUTICAL COMPANIES OF

INDIA BY THE 2010

MANDKIND PHARMA LIMITED, PAONTA SAHIB(H.P)

COMPANY OVERVIEW

Mankind Pharma Ltd., a pharmaceutical company, engages in formulating, developing, commercializing, and delivering medicines in India. It provides prescription, OTC, and animal healthcare products. The company offers products in the areas of antibiotic, antifungal, antiviral, gastrointestinal, NSAID, anthelmintic, cardiovascular, dermal, erectile dysfunction, GI drugs, antibacterial, reproductive, digestive, gynecological, and acute and chronic therapeutic, as well as in vitamins and minerals. It also provides condoms, toothbrushes, sanitary napkins, and sweeteners. The company sells its products through a network of stockists, and C and F agents. It serves the animal husbandry market. Mankind Pharma Ltd. was founded in 1995 and is headquartered in New Delhi, India with distribution offices in Meerut, Indore, and Secunderabad, India. Hide Detailed Description 236, Okhla

Phase-III New Delhi, 110 020 India Founded in 1995

Phone: 91 11 4654 1400 Fax: 91 11 6660 8081

www.mankindpharma.com

KEY EXECUTIVES Mr. R. C. Juneja Chairman Age: 54 Mr. Rajeev Juneja Senior Director of Marketing & Sales and Director Mr. Ajay Bansal Director of Marketing and Director Mr. Sheetal Arora Director of Marketing and Director

KEY DEVELOPMENTS FOR MANKIND PHARMA LTD. Pfizer Eyeing Indian Pharma Companies For Acquisition, Alliance 10/23/2009 Pfizer Inc. has approached a few Indian drug makers for potential alliances as part of moves to try and strengthen revenues, three persons with direct knowledge of the matter said. The company has reportedly approached Zydus Cadila, Emcure Pharmaceuticals Ltd., Intas Pharmaceuticals Ltd. and Mankind Pharma Ltd. but the Indian companies have not responded favorably to offers, said one of the persons, a senior industry executive.

While Pfizer has approached some of these companies directly, it chose to send feelers to the rest, added the executive, requesting to remain anonymous. "Pfizer approached Mankind Pharma with a lucrative offer, valuing the Indian company at $1 billion," said another person familiar with the matter, wishing to remain anonymous. However, RC Juneja, the founder managing director of the company, refuted that any MNC has approached it with an offer. Intas and Zydus Cadila did not respond to emailed queries from ET, while Emcure officials could not be contacted. One executive familiar with Pfizer's India plans said: "Top executives of Pfizer are regularly assessing opportunities and have been approaching select Indian companies." A spokeswoman for Pfizer India refused to comment on what she said was "market speculation". However, promoters of the four companies said to have been approached by Pfizer are keen to continue running their companies and are not thinking about exiting, he added. Another industry executive said Pfizer has also expressed interest in a Hyderabad-based vaccine maker for a strategic buy. But the promoters and private equity investors in the company have both denied any such possibility.

MetLife Wins Trademark Infringement Case Against Mankind Pharma 12/22/2008 Mankind Pharma Pvt. Ltd. has withdrawn its lifestyle diseases range of drugs sold under brand names MetLife-500 and MetLife-1000. The withdrawal comes after a Delhi High Court injunction sought by MetLife Inc. The insurer claimed that Mankind's use of the name diluted its own brand image. The withdrawal will not impact the company's sales significantly as both were small brands. The court's decision comes in the midst of negotiations that were under way between the two companies, wherein Mankind proposed to stop using the aforementioned brand name if the insurance firm would forgo the litigation costs and damages claimed. Mankind Pharma Mulls IPO In 2010 04/17/2008

Mankind Pharma Pvt. Ltd. plans to launch an initial public offering (IPO) to raise INR 3 billion INR 4 billion by off loading a 20% stake for its expansion plans. The company plans to list by the first or second quarter of 2010. A company executive said: The Company plans to list by the first or second quarter of 2010. The fund raised from the market would be primarily used to set up a new research and development (R&D) facility in the NCR region, foray in new therapeutic segments such as cardiovascular and psychiatric segment and augment the companys field force. Giant steps from Mankind Mankind Pharma is one of the fastest growing domestic pharmaceutical companies, making a strong impact on the Indian pharma scene for the past decade since it came into existence.Sapna Dogra finds more A Rs 350 crore company, Mankind, has grown dramatically at a rate of more than 60 percent. Its fast pace has placed it amongst the top five fastest growing pharmaceutical companies of India (ORG-IMS, retail audit, 2005).

Impressive growth The story of Mankind Pharma is one of inspiration, persistence and perseverance. From a humble beginning in 1995 with a capital investment of about Rs 50 lakh, Mankind was able to achieve a turnover of over Rs 300 crore in the year 2005 from a modest Rs 3.5 crore in the year 1995. With a market share of about 1.75 percent of the Rs 25,000 crore domestic pharma market, Mankind has a strong presence in antibiotics, antifungals, nutritionals, gastrointestinals, NSAIDs, antihelmintics and ED categories. They have many brands that ranked number one like Zenflox, Nuforce, Nurokind and Manforce. Other top brands include Bandy, Cefakind, Fynal, Mahacef, Omidom and Sparkind. Mahacef ranked first among the top launches of the last two years. Marketing strategy When it started in 1995, Mankind had a presence in just two states. Today, Mankind covers the entire length and breadth of India. The company focuses on the grassroots by tapping small towns and rural areas through its team of about 1,900 medical representatives. It is doing fairly well even in cities like Delhi, Chennai, Mumbai. The company is aggressively expanding its domestic sales through its existing divisions, namely Mankind, Discovery Mankind and Life Star, as a business strategy. For instance, the Mankind division has a mixed bag of cardiovascular and diabetic products. Mankinds domestic formulations business is expected to grow at a whopping 40 percent. The Discovery Mankind division was launched about two-and-a-half years ago. With a field force of 650 medical representatives and managers, already quite a few brands of

Discovery Mankind have reached to the top five positions in their respective segments. They are Zenotin, Sparkind, Nobel Gel, Nuforce-3 Kit, Fynal, and Mahacef. The relatively new Life Star division is yet another sister concern of Mankind Pharma, which has inducted around 100 field people so far. The focus of Life Star division of Mankind is on ophthalmology and the dermal segment. Very soon, it will be entering into antimalarial segment.

MANKIND is a leading pharmaceutical company of India was launched in year ,1995' with a goal to serve the suffering humanity. We ranked 7th in India and 4th in North India as per ORG-IMS, Prescription Audit, March, 2006. As per Stockist Secondary Audit March 2006, we ranked 13th position in India. Our foresight, hardworking, determination to perform better year after year has made us a company of Rs. ( www.mankindpharma.com ) Mankind Pharma to expand
PM News Bureau Mankind Pharma Ltd has announced an expansion plan including the setting up of a new plant and a research and development centre. The company is planning to spend Rs 70 crore on the expansion over the next two years. Out of the total investment, Rs 35 crore will go into setting up the R&D facility. The company plans to borrow the entire amount from State Bank of Patiala and ICICI. The new manufacturing plant will come up at Poanta Sahib in Himachal Pradesh and will be operational by June 2006. The plant will have a capacity to manufacture 30 million ampules and 12 million vials. The R&D centre would have capabilities in the areas of formulations development, new drug delivery systems, bioequivalence studies, contract research and new drug discovery. Contact: Mankind Pharma Ltd, 835 Udyog Vihar Phase-V Gurgaon, Haryana 122005. Tel: 01242342718

PRODUCTS:The products of Mankind Pharma Ltd. Are available in following dosages forms: Tablets. Capsules (hard & soft gel). Small volume injections (dry & liquid both) Syrups. Ointments. Infusions.

Why Do We Need Performance Appraisals?

Performance Appraisal is an objective system to judge the ability of an individual employee to perform his tasks. A good performance appraisal system should focus on the individual and his development, besides helping him to achieve the desired performance. This means that while the results are important the organization should also examine and prepare its human capital to achieve this result. This holds true even for new inductees. There is a strong linkage between induction, training and appraisal. In a large number of firms worldwide, a new recruit is expected to discuss his schedule of work in achieving his induction objective. This schedule of work becomes a part of his job for the next few months .

THE OBJECTIVE OF PERFORMANCE APPRAISAL FALLS INTO TWO CATEGORIES .1. ADMINISTRATIVE OBJECTIVE:- PROMOTION - TRANSFER - TRAINING AND DEVELOPMENT - WAGE AND SALARY - ADMINISTRATION - PERSONNEL RESEARCH 2. SELF IMPROVEMENT

Objectives of Appraisal

Almost all organizations practice performance appraisal in one form or another to achieve certain objectives. These objectives may vary from organization to organization or even

within the same organization from time to time. It has been found that there are two primary objectives behind the use of this methodology. One is to use it as an evaluation system and second, to use it as a feedback system. The aim of the evaluation system is to identify the performance gap. This means that it helps determine the gap between the actual performance of the employee and that required or desired by the organization. The aim of the feedback system is to inform the employee about the quality of his work or performance. This is an interactive process by which the employee can also speak about his problems to his superior. An effective performance appraisal system should emphasis individual objectives, organizational objectives and also mutual objectives. From the viewpoint of individual objective the performance appraisal should talk about a) What task the individual is expected to do? b) How well the individual has done the task? c) How can his performance be further improved? d) His reward for doing well.

From the organizational view point a performance appraisal should generate manpower information, improve efficiency and effectiveness serve as a mechanism of control and provide a rational compensation structure. In short the appraisal system establishes and upholds the principle of accountability in the absence of which organization failure is the only possible outcome. Finally, talking about mutual goals, the emphasis is on growth and development, harmony, effectiveness and profitability.

Methods of Performance Appraisal

In order to achieve the objectives, a variety of performance appraisal methods have been developed. The choice of method depends on organizational ethos, its objectives, size, product and technology. The most traditional method is the Confidential Report method where the supervisor makes an evaluation of his subordinate on the basis of certain characteristics like loyalty, intelligence, conduct, character etc. In some other methods like Graphic Rating scale and the Ranking Methods though the process is simple it is plagued with subjectivity. In the Critical Incidents method a balance sheet of on-job-behavior for each employee is generated which can then be used at the end of the year to see how well the employee has performed. In 1961 Peter Drucker popularized the Management by Objectives (MbO) method. In this method the subordinate in consultation with the supervisor chalks out short term objectives followed by specific actions that he has to carry out. The goals are finally set and are action oriented. The goals set should be specific, measurable, achievable, review able and time bound and most importantly it should be aligned with the goal of the organization. At the end of a specified time period, the activities are jointly reviewed by both the subordinate and his supervisor. Depending on the performance of the subordinate, the goals are modified or redesigned for the next period of time. The MbO is thus a performance oriented system. A well thought out MbO system provides multiple benefits. It establishes a link between the performance of the individual and the organization. It is easy to implement because those who carry out the plan also participates in setting it up. Each employee becomes aware of the task he has to perform. This leads to better utilization of capacity and talent. It promotes better communication and information sharing. It provides guidelines for self evaluation as well as evaluation by the superior against set tasks and goals. It facilitates guidance and counseling.

But most organizations engage in a retrospective performance appraisal. In this process some objectives that were agreed upon in the beginning of the year are dragged out and the appraisee and the manager discuss and debate about how well each of these objectives was achieved. This procedure has many flaws. It does not address the basic human needs in the motivation process. Feedback should be as immediate as possible, it should focus on actual things and the individual involved should be given the opportunity to correct his behavior. But the traditional procedure is too late. It is difficult to remember events a month old let alone events that had occurred over ten months ago.

Performance Management and Performance Appraisal Many people mistake performance appraisal for performance management. Actually, performance management is a much bigger system, and is much more valuable to managers and companies (and employees) than performance appraisal. The essential components or parts of an effective performance management system include:

Performance Planning (includes employee goal setting / objective setting) Ongoing Performance Communication Data Gathering, Observation and Documentation Performance Appraisal Meetings Performance Diagnosis and Coaching

Performance Management is an ongoing process of measuring and adjusting performance continually focusing on behaviors throughout the year. It is a continuous process not an event. It is not the same as performance appraisal, which is an assessment of the employees performance by both the employee and his superior jointly, with the purpose of allocating a score that may be used for both development and salary or promotion purposes. Performance Management includes Performance Appraisal as one of its elements. Performance Management should became part of day to day workplace behavior. Some organizations have adopted an online Performance Management system. Going online with performance management puts ownership of the process in the hands of the individual as opposed to the traditional manager driven system. It allows direct communication between the individual and the manager via online journals at times convenient to both. It links performance with the individuals learning and development plans and also to the organizational goals, values and competencies.

In fact performance appraisal is the least important component of a performance management system. To quote Robert Bacal If all you do is appraisal -- if you don't do planning and have ongoing communication, collect data, and diagnose problems, you are wasting your time. In fact it's even worse than that. If all you do is performance appraisal, you will almost be guaranteed that morale will suffer, performance problems will increase, and the manager's job will become much harder.

Modern Trends

A growing number of front running organizations like Ford, Microsoft and Sun Microsystems, have adopted a performance appraisal model in which best-to-worst ranking methods are used to identify poor performers. The identified poor performers are then given a time period during which they have to show an improvement in their performance. In cases where the employee fails to improve his performance he is asked to leave the organization gracefully and a severance package is offered to him. If the employee refuses to leave then his service is terminated and no compensation is offered. This system is called rank and yank strategy. Advocates of this system feel that it continually motivates employees to better their performance since nobody would like to be included in the poor performance band. But the flip side of this strategy is that employees become too competitive and team spirit is not nurtured. Effective organizations are not build merely on investment and returns but more on the quality of the workforce, its commitment to the organizational goals and investments made to attract train and retain superior human capital. An integrated Performance Management system is essential to get the best out of its people. Employee performance is linked to company performance. This helps in achieving the organizational goal and creates a performance culture in the company. Invention, creativity, diversity of perspectives is fostered. Employees act as one company one brand. The best performance reviews let managers and employees communicate -- share ideas, opinions, and information. Unfortunately, most traditional reviews put managers into the position of uncomfortable judges, ostensibly telling employees how their work either fit the bill -- or didn't. Possibly because of this, most traditional reviews are no better than the manager's off-the-cuff judgements, and some may be illegal. Because of these problems, new types of reviews are coming into play. Most require that evaluations be done not for raises, promotions, or bonusses, but for growth, development, and communication. The most important aspect in every case is communication between the employee and other people, instead of one-way communication, for higher performance.

Problems with traditional systems Michael Rigg, of Fluor Daniel, (quoted in Industrial Engineering, August 1992) said that traditional evaluation methods damage teamwork because of the focus on supervisors evaluating individuals; they may "strip people of their sense of control." Rigg also said that evaluations should provide feedback to individuals so problems may be corrected and higher performance can be rewarded. In traditional reviews, the manager tells the employee how they measure up, assuming that they both perceive the employee's job the same way. New forms of review may help managers, employees, peers, and customers to gain a mutual understanding of what they

mean by "good performance." This may improve the work of everyone involved, while clearing up disputes. Most managers tend to rate their employees a bit higher than they would normally deserve, leading some companies to use ranking systems - but ranking has its own problems. Generally, traditional reviews are good at sniffing out excellent and very poor employees, but don't differentiate well among the vast middle ground. This is a problem when reviews are used as the basis for salary adjustments and bonuses, unless only people at the extremes are treated differently (e.g. everyone gets a 4% bonus except very poor employees, who get nothing, and excellent employees, who get 6%). With traditional reviews, employees are rated by a single person, who may be biased or have an incomplete view of their work. Alternative methods provide a more balanced view. Other problems with traditional evaluation systems include rater carelessness; use of appraisals for political or personal reasons; the halo effect, where an employee's strengths in one area are spread to other areas; and leniency and strictness errors, where all employees are rated either high or low. Newer systems avoid most of these problems.

Peer Reviews A peer review program may be designed by a task force of three to six workers, to set the goals, benefits, and objectives of the program; design a criteria-based performance evaluation system; and conduct a pilot program (Training and Development, June 1992). During the pilot program, people may be encouraged to provide feedback on the system itself. Training and support should be available. Pilot programs are very important for any new system, because they let people iron out the bugs without letting the program lose credibility among other workers. Peer reviews often have a high level of worker acceptance and involvement; they tend to be stable, task-relevant, and accurate. By helping peers to understand each others' work and by airing grievances in a non-threatening manner, peer reviews may also help people to get along better. For the organization, this means higher performance. For the people,

this means a better place to work and less frustration; it may also help people to concentrate less on politics or working around people, and to spend more time on their work (or to put in less overtime). Peer reviews may work best if all parties know that the reviews will notbe used for setting pay, promotion possibilities, or disciplinary actions. However, a peer review system with the power to give promotions, raises, or disciplinary actions might be workable in some businesses, if the employees think it's a good idea. Self-Reviews Self-reviews are based on the idea that employees are most familiar with their work, and that their involvement is essential. Employees rate themselves on a number of criteria, usually with a formal survey form, and suggest improvements. They help to clarify their own goals, and expose areas of weakness so they may be worked on. The manager may be left out of the process, although an exchange of views between the worker and manager may help their relationship, and boost the employee's own understanding. Herbert H. Meyer (Academy of Management Executive, 1991) said that self-review changes the role of the manager to counselor, rather than judge - a role from which the manager can do more to support people. He wrote that self-review "...enhances the subordinate's dignity and self respect." Involving the employee as an equal in the review process is more likely (according to Meyer) to increase commitment to action plans, making the entire process both more satisfying and more productive. Self-reviews tend to have low halo error and result in little paperwork for managers. However, people may not see their own deficiencies as others do, so self-reviews should be used alongside other methods.

Upward Assessments Upward assessments are used in a large number of organizations, running from Honda and Chrysler to Motorola and NASA. These programs tend to be somewhat shocking to managers at first, but, if designed well, they can result in strong improvements. The rated managers become the program's biggest fans. Amoco's Bill Clover described this as the "SARAH reaction: Shock, Anger, Rejection, Acceptance, Help" (Training, March 1993). Most managers do not realize that what they say sometimes does not match up to what they do. Upward assessments can help managers to keep their words and actions consistent, while showing areas where managers can improve their performance. This can greatly increase their credibility.

The process is more important than the survey form; it can't be successful unless both raters and managers "open up." Managers must be helped to accept and deal with the results of the assessment. Outside consultants may have experience, needed skills, and an "objective outsider" image, so people can open up to them without fear of reprisal. If cost is a major issue, it may be possible to hire an intern from a local doctoral program in organizational or I/O psychology. Upward assessments may only be run with managers who have three or more direct reports. Someone other than the manager and ratees must assemble the completed survey forms into a report for the manager; some survey publishers do this. Many consultants recommend using upward assessments at least every two years. This helps managers to check their progress and refreshes the findings of the past survey in their minds; however, it doesn't make the cost unbearable. After the first assessment, the program may be run in-house.

360 Degree Feedback (360 Degree Review) 360 degree feedback is the most comprehensive and costly type of appraisal. It includes self ratings, peer review, and upward assessments; feedback is sought from everyone. It gives people a chance to know how they are seen by others; to see their skills and style; and may improve communications between people. 360 degree feedback helps by bringing out every aspect of an employee's life. Cooperation with people outside their department, helpfulness towards customers and vendors, etc. may not be rewarded by other types of appraisal. This system also helps those who have conflicts with their manager. 360 degree feedback generally has high employee involvement and credibility; may have the strongest impact on behavior and performance; and may greatly increase communication and shared goals. It provides people with a good all-around perspective. The Managing Individual Effectiveness (MIE) system at Bellcore is used for selfdevelopment. It gets feedback from peers, managers, subordinates, and the ratees themselves. According to a Bellcore representative, the results are better working relations; better communications; more information on management performance and style; increased effectiveness and productivity of individuals and the organization as a whole; knowledge of training needs; a better grasp of organizational priorities; and greater employee input in designing self-development plans. The Bellcore rep noted that, for success, expectations must be communicated clearly; employees must be involved early; resources must be dedicated to the process, including top management's time; confidentiality must be assured; and the organization, especially

top management, must be committed to the program. This system requires a third party, such as a consultant, to begin the process, which may take months to start up. 360 degree feedback may be given directly to the employees, who have the option of discussing them with their managers; or it may be given to the managers for use in a feedback meeting. Whichever method is chosen, training for the managers and ratees is necessary. Some off-the-shelf survey forms include job analysis techniques designed to form KSAs (knowledge, skills, and abilities required by a job) based on interviews, focus groups, and questionnaires. These forms may help to kill two birds with one stone, by helping to create valid job descriptions and then providing feedback on performance. The KSAs required by a job may be determined using traditional job-analysis techniques; competencies required by the job; strategic goals of the organization; development theory; or personality theory (e.g. communication or leadership styles).

PURPOSE OF PERFORMANCE APPRAISAL

1. To establish and uphold the principles of accountability. 2. Performance appraisal can protect the organization todays society is litigious formal documentation of employees performance is an important protection device. It helps counter claim of bias as a case of a dismissed worker 3. Performance appraisal offer a valuable opportunity - To focus on work activity and goals. - To identify and correct existing problem. - To encourage better and future performance through effective planning.

- Results enhance performance of whole organization. 4. Recruitment and induction - Appraisal data monitors success of organizations recruitment and induction practices e.g. how well are the employees performing? Who were hired in the past two years? - Monitor effectiveness of change I recruitment strategy. 5. Performance appraisal determines employees compensation. Common errors such as halo effect and tendency can be minimized or eliminated in workshop where manager can practice, observing and rating behavior effect of training diminish over time hence there is a need for refresher session.

LINK WITH REWARDS There is evidence to suggest that it is more difficult to obtain accurate appraisals when important reward depend upon the appraisals are carried out impartially, linkage to rewards is more than justified.

EFFECT ON PERFORMANCE It must be made mandatory for all superior to enhance the performance of their subordinates through training, job rotation and special projects. Superior may be given incentives to develop poor performers. Employee should have received a proper orientation to the appraisal process in the organization.

SCOPES

Scope
The scope of any performance appraisal should include the following: provide employees with a better understanding of their role and responsibilities; increase confidence through recognizing strengths while identifying training needs to improve weaknesses; improve working relationships and communication between supervisors and subordinates; increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and personal goal setting. (See Reference 3: Performance Appraisal Syste

INTRODUCTION
In the business world investment is made in machinery, equipment and services. Quite naturally time and money is spent ensuring that they provide what their suppliers claim. In other words the performance is constantly appraised against the results expected. When it comes to one of the most expensive resources companies invest in, namely people, the job appraising performance against results is often carried out with the same objectivity. Each individual has a role to play and management has to ensure that the individuals objectives translate into overall corporate objectives of the company.

Performance Management includes the performance appraisal process which in turn helps identifying the training needs and provides a direction for career and succession planning.

1.1

Understanding Performance Management

PERFORMANCE MANAGEMENT

CORPORATE GOALS

DETERMINE INDIVIDUAL OBJECTIVES LINKED TO CORPORATE GOALS ENSURE RESPONSIBILITY AND ACCOUNTABILITY

PERFORMANCE APPRAISAL

PERFORMANCE LINKED INCREMENTS/ INCENTIVES/ REWARDS

1.2 What is Performance? Performance is synonymous with behaviour; it is what people actually do. Performance includes those actions that are relevant to the organizational growth and can be measured in terms of each individuals proficiency (level of contribution). Effectiveness

Performance refers to the evaluation of results of performance that is beyond the influence or control of the individual. 1.3 How is Performance managed? Good performance by the employees creates a culture of excellence, which benefits the organization in the long run. The activity includes evaluation of jobs and people both, managing gender bias, career planning, and devising methods of employee satisfaction etc. the efforts are to make to generate the individuals aspirations with the objectives of the organization. Organization has to clear the way of career advancements for talented and hardworking people. Fear of any kind from the minds of the employees should be removed so that they give best to their organization. Allow free flow of information. Communication network should be designed in such a way no one should be allowed to become a hurdle. This enables the managers to take correct decisions and that too quickly. 1.4 Why Performance Appraisal????? Todays working climate demands a great deal of commitment and effort from employees, who in turn naturally expect a great deal more from their employers. Performance appraisal is designed to maximize effectiveness by bringing participation to more individual level in that it provides a forum for consultation about standards of work, potential, aspirations and concerns. It is an opportunity for employees to have significantly greater influence upon the quality of their working lives. In these times of emphasis on quality, there is a natural equation: better quality goods and services from employees who enjoy better quality goods and services from their employers.

Performance appraisal must be seen as an intrinsic part of a managers responsibility and not an unwelcome and time-consuming addition to them. performance and ultimate effectiveness. It is about improving

Performance appraisal is a systematic means of ensuring that managers and their staff meet regularly to discuss post and present performance issues and to agree what future is appropriate on both sides. This meeting should be based on clear and mutual understanding of the job in question and the standards and outcomes, which are a part of it. In normal circumstances, employees should be appraised by their immediate managers on one to one basis. Often the distinction between performance and appraising is not made. Assessment concerns itself only with the past and the present. The staff is being appraised when they are encouraged to look ahead to improve effectiveness, utilize strengths, redress weaknesses and examine how potentials and aspirations should match up. It should also be understood that pushing a previously prepared report across and desk cursorily inviting comments, and expecting it to be neatly signed by the employee is not appraisal - this is merely a form filling exercise which achieves little in terms of giving staff any positive guidance and motivation. THE APPRAISAL OF PERFORMANCE SHOULD BE GEARED TO: Improving the ability of the jobholder; Identifying obstacles which are restricting performance Agreeing a plan of action, that will lead to improved performance.

It is widely accepted that the most important factor in organization effectiveness is the effectiveness of the individuals who make up the organization. If every individual in the organization becomes more effective, then the organization itself will become more

effective. The task of reviewing situations and improving individual performance must therefore be a key task for all managers. For appraisal to be effective, which means producing results for the company, each manager has to develop and apply the skills of appraisal These are: Setting standards on the performance required, which will contribute to the achievement of specific objectives Monitoring performance in a cost effective manner, to ensure that previously agreed performance standards are actually being achieved on an ongoing basis Analyzing any differences between the actual performance and the required performance to establish the real cause of a shortfall rather than assume the fault to be in the jot holder. Interviewing having a discussion with the jobholder to verify the true cause of a shortfall, a developing a plan of action, which will provide the performance, required Appraisal can then become a way of life, not concerned simply with the regulation of rewards and the identification of potential, but concerned with improving the performance of the company. The benefits of appraisal in these terms are immediate and accrue to the appraising manager, the subordinate manager/employee, and to the company as a whole

RESEARCH AND SURVEY:

Statement of the Problem:

Performance appraisal is a process of assessing, summarizing and developing the work performance of an employee. In order to be effective and constructive, the performance manager should make every effort to obtain as much objective information about the employee's performance as possible. Low performance can push the organization back in todays tough competition scenario. The project is aimed at analyzing the performance appraisal in companies. Objective:The various objectives of our research are as follows: To examine why an appraisal system is important. To study existing appraisal system in various organizations across sectors like BPO, IT & Telecom. To find the expectation of appraiser and appraisee To determine the satisfaction level of the appraisee To reveal the various loopholes in the appraisal system if any To find the consequences of an inappropriately conducted appraisal system

Research Methodology:
The data source: Primary as well as Secondary. The research approach: Survey Method. The research instrument: Questionnaire. The respondents: The Managers & Employees of various organizations. The primary data was collected with the help of survey information. A concise questionnaire was prepared keeping in mind the information specifications.

RESULTS
Findings from Appraisee Survey 1. Expectations from Appraisal System :

Respondents were asked to rank the various options according to their preference. (Rank 1 being most preferred and rank 6 being least preferred). Then scoring was given on the basis of ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so on Particular Salary Administration and Benefits Score 87 Overall Rank 1

Determination of promotion or transfer Assistance in goal Guideline for training plan An insight into your strengths and weakness Decision to layoff

109 228 254 312 354

2 3 4 5 6

From the above table it can be seen that employees expect Salary Administration and Benefits to be the main reason for conducting a Performance Appraisal. Decision to layoff is of least importance as per the appraisee. 2.Awareness about Responsibilities :

From the graph it can be seen that majority of employees are aware about their responsibilities, which implies that the appraisers have efficiently communicated to the appraisees all the parameters that will be taken into account during appraisal.

1.Satisfaction Level among appraise regarding Appraisal System :

From graph it can be seen that majority of the respondents are satisfied with the appraisal system. Only a meager 30% were dissatisfied with the Performance Appraisal programs.

2. Awareness about performance ratings :

This clearly shows that majority of the employees are not aware about the performance ratings that are taken into account while conducting a performance appraisal.

3. Alowing Self ratings :

From graph it can be seen that majority of respondents want self rating to be a method of conducting the appraisals . 4. Chance to rate your own performance

From the graph we can see that majority of the employees are not given a chance to rate their own performance in the organization. 5. Timing of Appraisals

This shows that most of the organisations conduct their Performance Appraisal programs annually. A very small percentage of the organisations conduct Performance Appraisals on a half yearly basis. The share of the quarterly and monthly appraisals are extremely minimal.

6. Credibility of Appraiser

This shows that according to the employees/appraisees the credibility of the appraiser is extremely important and it has an effect on the overall Performance appraisal program.

7. Complaint channel for employees

This shows that there is no proper complaint channel existing in the organisations for the employees who are dissatisfied with the performance appraisal system.

8. Standards communicated to employees

From this it can be seen that there is a clear majority among the employees who say that the standards on the basis of which the performance appraisal is carried out is not communicated to the employees before hand. 9. Performance Appraisal

Almost all the Performance Appraisals are carried our by the Immediate Supervisor in these organisations. In very few organisations, Rating committees carry out the performance appraisals. None of the organisations use Peer Appraisals, Appraisals by subordinates and Self rating as a method of Performance Appraisal. 10. Clear understanding of Appraisees job

This shows that the performance Appraisal programs are successful in giving a clear understanding of the appraisees job to both appraiser and appraisee.

11. Objectives of Appraisal System

From the figure we can derive that the objective for conducting the Appraisal system is clear only to half of the employees. The remaining half are not clear about the objective for which the Performance Appraisal is carried out.

12. Good communication between top management and business goals

This shows that the appraisal systems do not provide a good communication flow of the top-management plans and business goals to the staff below.

13. Comments and suggestions to be considered

Almost all the employees expect that their comments and suggestions should be taken into consideration while conducting the Performance Appraisal.

14. Post Appraisal interview

As per the response from the employees we can see that there is no interview conducted after the appraisal program for majority of the employees. Findings from Appraiser Survey 1. Purpose of Appraisal

Respondents were asked to rank the various options according to their preference. (Rank 1 being most preferred and rank 6 being least preferred). Then scoring was done on basis of these ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so on. Then the total score for each purpose was calculated and overall ranking was given. Particular Determination of promotion or transfer Salary Administration and Benefits Decision to layoff Guideline for training plan Assistance in goal An insight into your strengths and weakness Score 24 27 42 69 72 81 Overall Rank 1 2 3 4 5 6

From table it can be seen that appraiser considers Determination of promotion or transfer & Salary administration and Benefits as two important factors for conducting an Appraisal. 2. Appraisal System

In this question appraiser was asked to rate how helpful the appraisal system is, from the graph it can be seen that majority of appraisers have rated 5,4 & 3 which implies that Performance Appraisal system is very helpful in Planning their work. Also most of the appraisers are satisfied with the appraisal system.

3. Support from subordinate

This question was asked to find out how helpful appraisal system is in communicating the support that apprasier needs from appraisee. From results it is seen that the performance appraisal system is very helpful in communicating the support and help needed by the appraiser from the appraisee. 4. Type of Appraisal System

From results its clear that majority of companies prefer to use 360 degree feedback system for Performance Appraisal. As 360 degree feedback gives feedback of appraisee from everyone interacting with him, it is more reliable and hence most preferred.

5. Performance Appraisal criteria

From results we can see that Qualitative Process is considered as the most important criteria for which the Performance appraisal programs are carried out, which shows that companies consider Qualitiy of product & service and Customer satisfaction as most important factors.

6. Timing of Appraisals

From graphs we can see that most of companies conduct appraisals on annual basis. Some companies conduct quaterly also. 7. Effect of poor Appraisal System

It can be seen from results that most of the employees get De-motivated because of a poorly conducted appraisal. To some extent employees dont coordinate with their team members. Thus resulting in reduction of output.

8. Communication between top management and staff

All appraisers totally agree that performance appraisal helps in communicating the top management plans and business goals to staff at lower level. 9. Insight to Apprasiees strength and weakness

It is evident from the results that performance appraisal system doesnt help the appraiser in understanding strength and weakness of apraisee.

10. Appraisees comment and suggestion

From the results it can be seen that appraisees comments and suggestion are not taken into consideration before Performance Appraisal. Performance Appraisal system is designed by appraiser without consulting appraisee.

11. Performance Appraisal

It is evident from the results that performance appraisal is conducted by the Immediate Supervisor in all the companies. 12. Understanding of Apprasiees Job

From this it is clearly seen that according to appraiser there is a clear and joint understanding of the appraisees job.

13. Standards for Performance Appraisal

From results it is evident that Performance appraisal standards are very well communicated to Appraisee before the Appraisal is carried out.

14. Self rating in Performance Appraisal

From results it can be clearly seen that the Appraisee is not given a chance to rate his own performance.

15.

Action after Performance Appraisal

This shows that most of the companies act upon the results of their Performance Appraisal program.

FINDINGS

 From the survey results its evident that both the appraisees and appraisers expectation from Performance appraisal system are the same i.e. Determination of Promotion or Transfer and Salary Administration and Benefits. Hence a single performance appraisal system can satisfy needs of both the Appraiser and appraisee. Therefore the Performance appraisal program would be designed in such a way that the appraiser would be able to analyse the contribution of the employee to the orgaisation periodically and all the employees who have been performing well would be rewarded suitably either by an increase in the salary or a promotion. Through this the appraiser can also motivate the employees who felt that they had no growth in the organisation and serves the purpose of employee development.Thus performance appraisals can be used as a significant tool fo career lanning. Analyzing ones own strengths and weaknesses is the best way of identifying the potentials available, rather than the other person telling. Self-appraisal is a tool to analyze oneself. One of the most important findings was that almost all the employees wanted self-rating to be a part of performance appraisal program carried out by the organisation. From the responses of the appraiser we can also see that Self rating is not encouraged by the organisations. This could therefore be an important factor which leads to dissatisfaction among the appraisees. At the end of the year of the appraisal period the appraisal process should begin with self-appraisal by every employee. To appraise ones own self on key performing targets and qualities, the appraisee would go through a process of reflection and review. It is an established fact that change is faster when it is self initiated. If any employee has to improve or do better, he must first feel the need to do so. Reflection and review is a process that enables him to feel the need and improve more upon his strengths and weaknesses

 Another point to be noticed is that even in the other forms of Performance Appraisal also the employees expect that they should be given a chance to rate their own performance. This can allow the employee to analyze ones own performance which gives new insights on how one is performing and what are the critical points where he has to put his best and improve upon

The existence of a proper complain channel was also of utmost importance to the appraisees. They should be given a chance to convey their greviences to the top management.

The appraisees also expect that their comments and suggestions should be taken in to account while conducting the appraisals. This expectation is not fulfilled as the appraisers do not take their comments and suggestions into consideration. Therefore they should look into this matter before it leads to dissatisfaction among the employees.

The results also indicate that the there is no communication of top management plans and business goal to the appraisee. The appraisers on the other hand feel that the goals and plans have been clearly communicated to the appraisees. Communication is very essential for any system to function efficiently. Therefore the appraisers should look into this matter and see to it that the goals and plans are communicated effectively.

The findings suggest that for success of Appraisal system the credibility of appraiser is of utmost importance.

As per the Appraiser, a poorly conducted appraisal system would lead to demotivation and ineffective teamwok which will result in inefficient

functioning and low productivity in the organization. Therefore, if at all they feel there is dissatisfaction among the appraisees they should motivate them. Achievement, recogntion, invelvement, job satisfaction and development can motivate the employees to a large extent. Along with this satisfactory working conditions and appropraite awards also play an important role.

Also a majority of employees were satisfied with the current appraisal system although they requested for some changes.

Most of the employees were also not clear about the criteria on which ratings were given to each employee while conducting the performance appraisal. Instead of secrecy there should be openess. Because of lack of communication, employees may not know how they are rated. The standards by which employees think they are being judged are sometimes different from those their superiors actually use. Proper communication of these ratings can help the employers achieve the level of acceptability and commitment which is required from the employ.

From the survey we can also derive that the appraisees expect a post appraisal interview to be conducted wherein they are given a proper feedback on their performance and they can also put forward their complaints if any. The appraisal should also be followed up with a session of counseling which is often neglected in many organizations. Counseling involves helping an employee to identify his strengths and weaknesses to contribute to his growth and development. Purpose is to help an employee improve his performance level, maintain his morale, guide him to identify and develop his strong points, overcome his weak points, develop new capabilities to handle more responsibilities, identify his training needs.

LIMITATION OF THE STUDY

During the study I also came across certain factors are limitation of study. These are:1. Time was the most relevant factor to make a handle to complete to proper and diagnostic survey. 2. The employees were busy in their work. 3. We didnt get complete feedback from all the employees about the questionnaires. 4. The sample size is probably inadequate as, all the samples distributed were not respondent. 5. Sincerity of answering the questions can not be judged.

SUGGESTIONS AND RECOMENDETION

1. Work should be equally divided. 2. Try to reduce more paper work. 3. For promotion you use seniority principle, but if you will use promotion as a tool for promotion then it can also be helpful to motivate the employees. 4. You should try to improve your supervision and should try to keep an eye on the employees that they properly completing their targets in time. 5. You keep watch on employees that what are their requirements and should provide them proper resources so that they can achieve their target without any excuse. 6. You should try to give more stress on training and development of your Employees. 7. You should try make your employees so much authorized that they can implement few of their innovative thoughts. 8. You should try to make more congenial and friendly relationship with your Employees, so they never hesitate to share their views with you.

CONCLUSION
With rewards being directly linked to achievement of objectives, goal setting and Performance Appraisal assumes utmost importance. The Performance Appraisal System has been professionally designed and it is monitored by HRD. The implementation is the responsibility of each and every employee along with their supervisor. There should be adequate training to the evaluator that will go a long way in answering the quality of Performance Appraisal. In conclusion, a Performance Appraisal is a very important tool used to influence employees. A formal Performance review is important as it gives an opportunity to get an overall view of job performance and staff development. It encourages systematic and regular joint-stocking and planning for the future. Good performance reviews therefore dont just summarize the past they help determine future performance.

Appendices
Questions for Appraisee Name: ___________________________ __________________________ Contact No:

1. What do you expect from a Performance appraisal :

(Rank the options from 1 to 6; 1 being most preferred & 6 being least preferred) Detail Salary Administration and Benefits Determination of promotion or transfer Decision on layoff Assistance in goal Guideline for training Plan An insight into your strengths and weakness Rank

2. Do you know what exactly is expected from you at work?

a. Yes

b. No

3. Are you satisfied with the appraisal system?

1 2 3 4 5 (1 = Least satisfied; 5 = Most satisfied)

4. Are you aware of performance ratings?

a. Yes

b. No

5. Do you think you should be given an opportunity to rate your own performance?

a. Yes

b. No

6. Are you given a chance to rate your own performance?

a. Yes

b. No

7. Timing of Appraisals

a. Monthly b. Quarterly c. Half Yearly d. Annual e. Anytime

8. Does the credibility of Appraiser affect the Performance Appraisal System?

a. Yes

b. No

9. Is there a complaint channel for the employees who are dissatisfied with the

performance appraisal system? a. Yes b. No

10. Are the standards on the basis of which the performance appraisal is carried out

communicated to the employees before hand? a. Yes b. No

11. Who conducts the performance appraisal?

a. Immediate supervisor b. Peer appraisal c. Rating committees d. Self-rating e. Appraisal by subordinates

12. Is the performance Appraisal successful in giving a clear understanding of the

appraisees job to both appraiser and appraise? a. Yes b. No

Are the objectives of appraisal system clear to you? a. Yes b. No Does the appraisal system provide a good communication between the top-management plans and business goals to staff below? b. Yes b. No

13. Do you want your comments and suggestions to be taken into consideration

during appraisal? a. Yes b. No

14. Is there a post appraisal interview conducted?

a. Yes

b. No

Questions for Appraiser

Name: ___________________________ __________________________
1. Purpose of Performance appraisal :

Contact No:

(Rank the options from 1 to 6; 1 being main purpose & 6 being last purpose) Detail Rank Salary Administration and Benefits Retain performing employees

Determination of promotion or transfer Decision on layoff Assistance in goal Guideline for training Plan

Is the Performance Appraisal helping you to plan your work well? 1 2 3 4 5 (1 = Least helpful; 5 = Most helpful)
2. Does the system provide you a chance to communicate the support you need from

your subordinate to perform the job well. a. Yes b. No

3. Which appraisal system is being employed in the company?

a. Assessment centre b. MBO c. BARS d. 360 degree feedback e. Balance scorecard

4. Performance Appraisal criteria

a. Quantitative outcome criteria (Sales volume, Sales price, Productivity, Goal accomplishment rate) b. Qualitative process criteria (Quality of product or service, Customer satisfaction) c. Quantitative process criteria (Efficiency, Cost/expenses, Attendance) d. Qualitative process criteria (Judgment, Work attitude, Leadership, Conduct /Trait)

5. Timing of Appraisals

a. Monthly b. Quarterly c. Half Yearly d. Annual e. Anytime

6. What do you think is the effect of a poor appraisal system

a. b. c.

De-motivation Retention Ineffective teamwork

Does the appraisal system provide a good communication between the top-management plans and business goals to staff below? d. Yes b. No Does it give insight to appraisee regarding his strength or weakness? e. Yes appraisal? a. Yes b. No b. No

7. Are employees comments and suggestions taken into consideration before the

8. Who conducts the performance appraisal

a. Immediate supervisor b. Peer appraisal c. Rating committees d. Self-rating e. Appraisal by subordinates

9. Is the performance Appraisal successful in giving a clear understanding of the

appraisees job to both appraiser and appraise? b. Yes b. No

10. Are the standards on the basis of which the performance appraisal is carried out

communicated to the employees before hand? a. Yes b. No

11. Do you give an opportunity to the appraisee to rate his own performance?

a. Yes

b. No

12. Do you act upon the results of your performance appraisal?

a. Yes

b. No

13. If yes, then mention the remedial measures taken?

BIBLIOGRAPHY
BOOKS Organizational Behavior by Steve Robbins The Art of HRD, Reward Management, Volume 9 by Micheal Armstrong Helen Murlis Performance Management, Concepts, Practices and Strategies for success by S. K. Bhatia Organisation and