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INTRODUCTION
Its roots in the early 20th century can be traced to Taylor's pioneering Time
and Motion studies. But this is not very helpful, for the same may be said
performance, appraisal really dates from the time of the Second World War
Yet in a broader sense, the practice of appraisal is a very ancient art. In the
scale of things historical, it might well lay claim to being the world's second
oldest profession!
There is, says Dulewicz (1989), "... a basic human tendency to make judgments
about those one is working with, as well as about oneself." Appraisal, it seems,
is little chance of ensuring that the judgments made will be lawful, fair,
justification. That is, appraisal was used to decide whether or not the salary or
performance was found to be less than ideal, a cut in pay would follow. On the
other hand, if their performance was better than the supervisor expected, a pay
appraisal. If was felt that a cut in pay, or a rise, should provide the only
well.
Sometimes this basic system succeeded in getting the results that were
For example, early motivational researchers were aware that different people
with roughly equal work abilities could be paid the same amount of money and
important, yes; but they were not the only element that had an impact on
employee performance. It was found that other issues, such as morale and self-
rejected. In the 1950s in the United States, the potential usefulness of appraisal
as tool for motivation and development was gradually recognized. The general
Modern Appraisal
between a subordinate and supervisor, that usually takes the form of a periodic
In many organizations -but not all -appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority
By the same token, appraisal results are used to identify the poorer performers
pay.)
Whether this is an appropriate use of performance appraisal -the assignment
and justification of rewards and penalties -is a very uncertain and contentious
matter.
Controversy, Controversy
appraisal.
and psychometricians -who have expressed doubts about the validity and
(see Derven, 1990, for example). At the other extreme, there are many strong
Between these two extremes lie various schools of belief. While all endorse
the use of performance appraisal, there are many different opinions on how
There are those, for instance, who believe that performance appraisal has
many important employee development uses, but scorn any attempt to link the
process to reward outcomes -such as pay rises and promotions. This group
people would gladly admit their work problems if, at the same time, they
knew that their next pay rise or a much-wanted promotion was riding on an
appraisal result? Very likely, in that situation, many people would deny or
Nor is the desire to distort or deny the truth confined to the person being
relationship. They work together on a daily basis and may, at times, mix
skills is one thing; giving an appraisal result that has the direct effect of
On the other hand, there is a strong rival argument which claims that
which rewards -which are not an unlimited resource -may be openly and fairly
distributed to those most deserving on the basis of merit, effort and results.
There is a critical need for remunerative justice in organizations. Performance
appraisal -whatever its practical flaws -is the only process available to help
achieve fair, decent and consistent reward outcomes. It has also been claimed
that appraises themselves are inclined to believe that appraisal results should
when told this is not the case. Rather than feeling relieved; appraises may
suspect that they are not being told the whole truth, or that the appraisal
Recent research (Bannister & Balkin, 1990) has reported that appraises seem
to have greater acceptance of the appraisal process, and feel more satisfied
with it, when the process is directly linked to rewards. Such findings are a
serious challenge to those who feel that appraisal results and reward outcomes
must be strictly isolated from each other. There is also a group who argues that
with them about their performance, are part of the basic responsibilities of
motivation.
having separate wage and salary reviews, in which merit rises and bonuses are
First, it can be used as a basis for reward allocation. Decision as to who gets
appraised against
1. Absolute standards
2. Relative standards
3. Objectives
PERFORMANCE MANAGEMENT
Since organizations exits to achieve goals, the degree of success that individual
organization effectiveness.
sustained commitment. The cost of failure to provide such feedback may result
commitment by employees, in sum, the myth that the employee know what.
expensive fantasy.
6. Initiate action
THE PURPOSE OF APPRAISING PERFORMANCE
and use their full potential in carrying out their firm’s mission.
identify the areas where development efforts are "' needed to bridge the
SYSTEM.
subordinates) may see the same individuals job performance very differently.
observe what the employee has done and the condition under which he or she
has done it. By making appraisal system relevant, sensitive and reliable we
all, for it is true that human resources program must have the support of.
those who will use them. Unfortunately, many organizations do not put much
effort into garnering the front end support and participation of those who will
define as clearly as possible the type and level of job behaviour desired of
employees.
making explicit what aspects of job performance they will be evaluated on.
Practicality: This implies that appraisal instruments are easy for managers
For years, personnel specialists have searched for the 'Perfect; appraisal
method as if it were some kind of miraculous cure for many pitfalls that
work far more emphasis needs to be placed on process issues. Factors such as
a dialogue involving people and data. Both technical and human issues are
The most fundamental requirement for any rater is that he or she has an.
is probably the most familiar with the individual's performance and in most
jobs has had the best opportunity to observe actual job performance. Further
more, the immediate supervisor is probably best able to relate the individual's
In some jobs such as outside sales, law enforcement and teaching, the
immediate development. Subordinates know first hand the extent to which the
leadership he has and the extent to which he or she plans and orgasms.
Self appraisal: On one hand it improves the rate's motivation and moral, on
the other it tends to be more lenient, less variable and biased. The evidence on
In industry it is seen that feed back/ input is taken from various sources -Peers,
subordinates, superiors etc. Some companies have gone step ahead in taking
management process.
APPROACHES TO PERFORMANCE MANAGEMENT
Accountabilities i.e,
Output
Review performance
against the key
Objectives
In this model job expectations are defined in terms of what results have to be
achieved. This model doesn't have a long term focus and can't be used for
performing well when they are productive. Yet productivity itself implies both
achieved. The greater the output for a given input, the more efficient the
greater efficiency.
There are basically three purposes to which performance appraisal can be put.
First, it can be used as a basis for reward allocations. Decisions as to who gets
areas where development efforts are needed. Management needs to spot those
This project aims at studying the system of performance appraisal and its
and indispensable tool for the management as it provide useful information for
The population covered for the present study consisted of employee belonging
to supervisory and the level above. For the purpose of this study, survey
and above.
3. Methodology of the project
The project work has been carried out in three stages, a structured
finalize. During the second stage, the questionnaire was administered to the
employees at Schneider Electric India Pvt Ltd. by contacting them. The work
relating to data entry compilation, data analysis and report writing constituted
the third stage. Interview index was also used at some places to get
The Questionnaire
Keeping in view the objective of the study, questionnaire was designed and
tested on few employees. After getting the proper response and sanction from
Response to Questionnaire
It has been an uphill task to enter the enormous data received through the
these were further structured in time with the system adopted for compilation
Limitations
Some of them did not fill the questionnaire due to lack of time
information.
Chapter 3
ORGANISATION PROFILE
Chapter 3
ORGANISATION PROFILE
Schneider Electric India Pvt. Ltd (SEI) is a 100% subsidiary of Schneider Electric
Industries SAS, a global specialist in energy management. With a strong force of over
5,000 employees, the company is well known for its unique vision, progressive
management and above all, its exemplary Quality.
Schneider Electric entered India in 1963 through a first joint venture with Tata
group.
In the year 2000 Schneider Electric further consolidated its position in the
Indian market by acquiring S&S Switchgear and Crompton Greaves LV
division.
Year 2007 saw Critical Power & Cooling Solutions major APC – MGE ‘s
acquisition by Schneider Electric
1935 A.J. "Al" Schneider used the proceeds from the sale of the family car to buy his
first truck.
1938 Bought Bins Transfer &Storage, incorporated the company (June 6) and
changed the name to Schneider Transport & Storage. Moved offices to a building
once used as a stable.
1961 Don Schneider, Al's oldest son, joined the company as manager, bringing the
office staff to five.
1968 Garrison Transport merged into Schneider Transport Inc. and was added to
Schneider's operating authority.
1969 Purchased Kampo Transit, a 50-truck regional milk and fuel oil hauler.
1970 Milestone grant of authority from the ICC to haul paper and paper products.
Paper remains a significant part of the Schneider portfolio.
1976 Purchased National Bulk Transport and changed the name to Schneider Bulk
Carriers. The acquisition expanded the company's portfolio to include national tanker
service.
1977 The first bulk fuel site was installed at the Wise Garage in Dayton, Ohio.
Christensen Oil was purchased to provide sufficient fuel of the appropriate quality.
1979 The second OPEC fuel crisis caused gas rationing and fuel shortages. Schneider
Transport responded with a national miles-per-gallon campaign through the Schneider
Fuel School, teaching 2,000 drivers to drive 55 miles per hour to conserve fuel.
1980 Congress passed the Motor Carrier Act of 1980, which provided for sweeping
deregulation of the trucking industry.
1981 ICC granted Schneider 48-state authority to carry all commodities except
explosives and bulk.
1982 To leverage the long-distance network needed for the growing number of
drivers, Schneider formed Schneider Communications to provide long-distance
telephone service to customers in the Midwest.
1982 Schneider National established its charitable arm, the Schneider National
Foundation, to create a positive force for change in the communities where its
associates live and work.
1984 Purchased International Transport, Inc. of Rochester, Minn., the largest flatbed
and heavy-haul Products Company in the United States.
1985 Schneider National Carriers (SNC) formed by joining all of the separate
business units purchased through the 70s and 80s. SNC is non-union, but Schneider
Transport remained a union carrier under agreement with the Teamsters.
1986 Schneider became the first carrier to install two-way satellite communication
systems in all 6,000 over-the-road trucks. Introduced EDI (Electronic Data
Interchange) transactions.
1992 Company achieved $1 billion in annual revenue for the first time. Corporate
headquarters moved to the Customer Service and Corporate Business Center at 3101
South Packer land Drive in Green Bay, Wis.
1994 Schneider Logistics awarded the General Motors Service Parts Operation
contract. This is the largest logistics industry contract ever awarded.
1998 Purchased Highway Carrier Corporation, Builders Transport and Land star
Poole.
2002 Christopher Lofgren named president and CEO on August 2, 2002, succeeding
Don Schneider.
2006 Schneider Logistics opened office in Shanghai, China and began offering
supply chain consulting services.
2006 Schneider Logistics acquired American Overseas Air Freight to become the first
truckload carrier to offer door-to-door international logistics services.
2006 Schneider introduced dedicated intermodal service in the Ohio Valley. The new
service is a collaboration between Schneider, CSX Intermodal, Inc., the Kansas City
Southern railroad and the Marion, Ohio Industrial Center.
2008 Schneider rolled out Western Regional service to meet growing customer
demand for short-haul service. Seven-state service area includes Arizona, California,
Colorado, Nevada, Oregon, Utah and Washington.
2008 Schneider National becomes most energy-efficient fleet in the industry when it
reduces its fleet of 10,600 company drivers to 60 mph.
In 2009 they would work more closely than ever, with OEMs, Channel Partners, End
Users & Consultants and reveal exciting strategies & business plans to jointly help our
Customer to “make the most their Energy”.
As always, this issue provides us a glimpse of their r expertise in the wide ranging
application of their customer. The newspaper front page photograph few days back of
Antarctica’s dwindling Ice line frightening and we are all responsible for the same!
So, let’s partner to create “A World where we can achieve more while using less of
our common Planet.” We are delighted to help you to make the most of your Energy.
2009 is still full of business opportunities and this is always during the difficult period
that we see the stronger companies.
Chapter 4
PERFORMANCE
APPRAISAL
Chapter 4
PERFORMANCE APPRAISAL
Since organisation exist to achieve goals, the degree of success that individual
been at meeting their individual goals, therefore, becomes a critical part of HRM.
PURPOSE
There are basically three purposes to which performance appraisal can be put.
gets salary jncreases, promotions, and other rewards are determined by their
performance evaluation.
These should have evolved out of job analysis and the job description discussed
under human resource planning. These performance standards should also be clear
and objective enough to be understood and measured. Too often, these standards are
articulated in some such phrase as "a full day's work" or "a good job".
Communication only takes place when the transference has taken place and has been
the subordinate to the manager. Satisfactory feedback censures that the information
communicated by the manager has been received and understood in the way it was
intended.
acquire information about it. We should be concerned with how we measure and
what we measure.
What we measure is probably more critical to the evaluation process than how we
measure, since the selection of the wrong criteria can result in serious dysfunctional
appraisal to the subordinate and then have the subordinate accept the appraisal in a
and ability. The impression that subordinates receive about their assessment has a
performance.
The final step in the appraisal is the initiation of corrective action when necessary.
Corrective action can, be of two types. One is immediate and deals predominantly
with symptoms. The other is basic and delves into causes. Immediate corrective
action often described as "putting out fires," whereas basic corrective action gets to
Immediate action corrects something right now and gets things back on track.
Chapter 5
PERFORMANCE
APPRAISAL SYSTEM IN
SCHNEIDER ELECTRIC
INDIA PVT LTD
Chapter 5
In Schneider Electric India Pvt Limited they have the system of performance
system is to evaluate the performance, promote their employees and to arrange for
their various training programmes if they require for enhancing their skills in their
Employees are evaluated by how well they accomplish a specific set of objectives
that have been determined to be critical in the successful completion of their job.
action planning, self- control, and periodic reviews. In goal setting, the
and individual objectives are set. In action planning, the means are determined for
achieving the ends established in goal setting. That is, realistic plans are developed
action is initiated when behavior deviates from the standards established in the
Process while evaluating its employees. Its evaluation is based on quantitative and
objective wise.
Company set goals to its employee by properly reporting with its employees and
then evaluating them up to what extent it has been achieved and if there is failure in
reaching the target what are the causes or reasons behind it.
Every evaluator has his or her own value system which acts as a standard against
which appraisals are made. Relative to the true or actual performance an individual
exhibits, some evaluator~ mark high and others low. The former is referred to as
positive leniency error and the latter as negative leniency error. When evaluators are
stated; that is, rated higher than it actually should. Similarly, a negative leniency
error understates performance, giving the individual a lower appraisal. As such there
criteria.
Thus, though chances are less, positive leniency errors have been stated to be
committed.