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Performance Appraisal

In partial fulfillment of the requirements for the Degree of


Bachelor of Business Administration

Submitted to Submitted by
Ms. Shweta Sharma Muneeb-ul-hafiz
Add. Dean Roll No:-1107132
(Planning & Admin) BBA:-6TH
H.O.D (Mgt.)




UNIVERSAL INSTITUTION OF MANAGEMENT AND TECHNOLOGY
AFFILATED TO -
PUNJAB TECHINICAL UNIVERSITY JALANDHAR

ACKNOWLEDGEMET
Research is an endless ocean and one requires be guiding and supporting by
several individual in order to derive out a handful of pearls from its depth. It is
difficult to acknowledge so precious debt as that of learning, as it is the only debt
that is difficult to repay, except through gratitude.
It is my proud privilege and pleasure to express deep sense of gratitude to MS.
Charanjeet (Project Guide) to placing complete faith and confidence in my ability
to carry out this study. He took interest in spite of his numerous commitment and
busy schedule to help me to complete this project. My project would not have seen
the light of the day without his masterly guidance and overwhelming help.
I am also gratefully indebted to Ms.Charanjeet (faculty member of Universal
Business School) for providing me inspiration, encouragement, help, valuable
guidance, constructive criticism and constant interest to complete my project
report.The successful completion of this project would not have been possible
without the guidance of above people.
Lastly but not the least, I would take the opportunity to thank my parents, friends
and all those visible and invisible hands that contributed to make this project a
success.
Muneeb-ul-hafiz
Roll No:-1107132
BBA 6
th




PREFACE
Managing human resources in todays dynamic environment is becoming more and
more complex as well as important. Recognition of people as a valuable resource
in the organization has led to increases trends in employee maintenance, job
security, etc My research project deals with Performance Appraisal. In this report,
I have studied &evaluated the performance appraisal process as it is carried out in
the company. The first section of my report deals with a detailed company profile.
It includes the companys history: its activities and operations, organizational
structure, etc. this section attempts to give detailed information about the company
and the nature of its functioning. The second section deals with performance
appraisal. In this section, I have given a brief conceptual explanation to
performance appraisal. It contains the definition, process and significance of
performance appraisal. In the third section of my report, I have conducted a
research study to evaluate the process of performance appraisal this section also
contains my findings, conclusions, suggestions and feedback. The forth and final
section of this report consists of extra information that I related to the main
contents of the report. These annexure include some graphs and diagrams relating
to the company, graphs relating to the research study and important documents
upon which the project is based.







DECLARATION

This is to certify that Muneeb-ul-hafiz student of BBA bearing roll no.1107132 has
completed the project titled PERFORMANCE APPRAISAL SYSTEM under
my guidance.

This is original piece of work. The findings in this report are based on the data
collected by him. He has not copied the data from any previous report. I further
certify that this project has not been submitted to any other Company/ University
for any other purpose.




Muneeb-ul-hafiz






TABLE OF CONTENTS

Acknowledgement
Preface
Declaration
List of tables
List of Graphs

CHAPTER No. CHAPTER NAME PAGE NO:

Chapter-1 Introduction 1-12
Chapter-2 Review of literature 13-16
Chapter-3 Research Methodology 17-18
1.1 Research design 19-21
1.2 Objectives of the study 22
1.3 Scope of the study 23
1.4 Data collection 24
1.5 Limitations 25

Chapter-4 Analysis & Interpretations 26-37
Chapter-5 Conclusion & Recommendations 38-43

Bibliography 44-45

Annexure 46-49



INTRODUCTION
Performance appraisal is a systematic evaluation of present potential capabilities of personnel and
employees by their superiors, superiors superior or a professional from outside. It is a process of
estimating or judging the value, excellent qualities or status of a person or thing. It is a process of
collecting, analysing, and evaluating data relative to job behaviour and results of individuals. The
appraisal system is organised on the principle of goals and management by objectives. Management
decisions on performance utilise several integrated inputs: goals and plans, job evaluation, performance
evaluation, and individual history. It connotes a two-dimensional concept - at one end of the continuum
lies the goals set by the authority, and at the other end, the performance achieved by the individual or any
given group.
Performance appraisal can be either formal or informal. Usage of former systems schedule regular
sessions in which to discuss an employees performance. Informal appraisals are unplanned, often just
chance statements made in passing about an employees performance. Most organisations use a formal
appraisal system. Some organisations use more than one appraisal system for different types of employees
or for different appraisal purposes. Organisations need to measure employee performance to determine
whether acceptable standards of performance are being maintained. The six primary criteria on which the
value of performance may be assessed are: quality, quantity, timelineness, cost effectiveness, need for
supervision, and interpersonal impact. If appraisals indicate that employees are not performing at
acceptable levels, steps can be taken to simplify jobs, train, and motivate workers, or dismiss them,
depending upon the reasons for poor performance.
The results of appraisal are normally used to:
(1) estimate the overall effectiveness of employees in performing their jobs,
(2) identify strengths and weaknesses in job knowledge and skills,
(3)determine whether a subordinates responsibilities can be expanded,
(4) identify future training and development needs,
(5) review progress toward goals and objectives,
(6) determine readiness for promotion, and
(7) motivate and guide growth and development.

OBJECTIVES OF PERFORMANCE APPRAISAL

Performance appraisal plans are designed to meet the needs of the organisation and the
individual. It is increasingly viewed as central to good human resource management. This is
highlighted in Cummings classification of performance appraisal objectives. According to
Cummings and Schwab (1973), the objectives of performance appraisal schemes can be
categorised as either evaluative or developmental. The evaluative purpose have a historical
dimension and are concerned primarily with looking back at how employees have actually
performed over a given time period, compared with required standards of performance.
The developmental performance appraisal is concerned, for example, with the identification of
employees training and development needs, and the setting of new targets.
The broad objectives of performance appraisal are:
1. To help the employee to overcome his weaknesses and improve his strengths so as to enable
him to achieve the desired _performance.
2. To generate adequate feedback and guidance from the immediate superior to an employee
working under him.
3. To contribute to the growth and development of an employee through helping him in realistic
goal setting.
4. To provide inputs to system of rewards (comprising salary increments, transfers, promotions,
demotions or _terminations) and salary administration.
5. To help in creating a desirable culture and tradition in the organisation.
6. To help the organisation to identify employees for the purpose of motivating, training and
developing them.
7. To generate significant, relevant, free, and valid _information about employees.
In short, the performance appraisal of an organisation provides systematic judgments to backup
wage and salary administration; suggests needed changes in ones behaviour, attitudes, skills, or
job knowledge; and uses it as a base for coaching and counseling the individual by his superior.
Appraising employee performance is, thus, useful for compensation, placement, and training and
development purposes.




USES OF PERFORMANCE APPRAISAL
The appraisal systems do not operate in isolation; they generate data that can contribute to other
HRM systems - for example to succession planning and manpower planning.Some of the
common uses of appraisals include:
Determining appropriate salary increases and bonuses for workers based on performance
measure.
Determining promotions or transfers depending on the demonstration of employee
strengths and weaknesses.
Determining training needs and evaluation techniques by identifying areas of
weaknesses.
Promoting effective communication within organisations through the interchange of
dialogue between supervisors and subordinates.
Motivating employees by showing them where they stand, and establishing a data bank
on appraisal for rendering assistance in personnel decisions.
Organisations use performance appraisals for three purposes: administrative, employee
development, and programme assessment. Programme appraisal commonly serve an
administrative purpose by providing employers with a rationale for making many personnel
decisions, such as decisions relating to pay increases, promotions, demotions, terminations and
transfers. Valid performance appraisal data are essential to demonstrate that decisions are based
on job related performance criteria. An employees performance is often evaluated relative to
other employees for administrative purposes, but may be assessed in relation to an absolute
standard of performance. Performance appraisal for employee development purposes provides
feedback on an employees performance. The intent of such appraisals is to guide and motivate
employees to improve their performance and potential for advancement in the organisation.
Appraisal data can also be used for employee development purposes in helping to identify
specific training needs of individuals. Programme assessment requires the collection and storage
of performance appraisal data for a number of uses. The records can show how effective
recruiting, selection, and placement have been in supplying a qualified workforce. Performance
measures can be used to validate selection procedures and can also be used asbefore and

after measures to determine the success of training and development programmes. In brief, the
various uses of performance appraisal can be classified into two broad categories. One category
concerns the obtaining of evaluation data on employees for decision-making for various
personnel actions such as pay increases, promotions, transfers, discharges, and for selection test
validation. The other main use is for employee development including performance improvement
training, coaching, and counseling.

PLANNING THE APPRAISAL
A meaningful performance appraisal is a two-way process that benefits both the employee and
the manager. For employees, appraisal is the time to find out how the manager thinks they are
performing in the job. For a manager, a formal appraisal interview is a good time to find out how
employees think they are performing on the job. The planning appraisal strategy has to be done:
Before the appraisal
1. Establish key task areas and performance goals.
2. Set performance goals for each key task area.
3. Get the facts.
4. Schedule each appraisal interview well in advance.
During the appraisal
1 Encourage two-way communication.
2. Discuss and agree on performance goals for the future.
3. Think about how you can help the employee to achieve more at work.
4. Record notes of the interview.
5. End the interview on an upbeat note.


After the appraisal
1. Prepare a formal record of the interview.
2. Monitor performance.
APPROACHES TO PERFORMANCE APPRAISAL
George Odiorne has identified four basic approaches to performance appraisal.
Personality-based systems: In such systems the appraisal form consists of a list of personality traits that
presumably are significant in the jobs of the individuals being appraised. Such traits as initiative, drive,
intelligence, ingenuity, creativity, loyalty and trustworthiness appear on most such lists.
Generalised descriptive systems: Similar to personality-based systems, they differ in the type of
descriptive term used. Often they include qualities or actions of presumably good managers: organises,
plans, controls, motivates others, delegates, communicates, makes things happen, and so on. Such a
system, like the personality-based system, might be useful if meticulous care were taken to define the
meaning of each term in respect to actual results.
Behavioural descriptive systems: Such systems feature detailed job analysis and job descriptions,
including specific statements of the actual behaviour required from successful employees.
Results-centred systems: These appraisal systems (sometime called work-centred or job-centred systems)
are directly job related. They require that manager and subordinate sit down at the start of each work
evaluation period and determine the work to be done in all areas of responsibility and functions, and the
specific standards of performance to be used in each area.When introducing performance appraisal a job
description in the form of a questionnaire has to be preferred. A typical questionnaire addressed to an
individual would cover the following points:
What is your job title?
To whom are you responsible?
Who is responsible to you?
What is the main purpose of your job?
To achieve that purpose what are your main areas of responsibility?
What is the size of your job in such terms of output or sales targets, number of items
processed, number of people managed, number of customers? What targets or standards
of performance have been assigned for your job? Are there any other ways in which it
would be possible to measure the effectiveness with which you carry out your job?
Is there any other information you can provide about your job?



COMPONENTS OF PERFORMANCE APPRAISAL

The components that should be used in a performance appraisal system flow directly from the
specific objectives of appraisal. The following components are being used in a number of Indian
organizations.

1. Key Performance Areas (KPAs) / Key Result Areas (KRAs)
2. Tasks/targets/objectives; attributes/qualities/traits
3. Self appraisal
4. Performance analysis
5. Performance ratings
6. Performance review, discussion or counseling
7. Identification of training / development needs
8. Ratings / assessment by appraiser
9. Assessment / review by reviewing authority
10. Potential appraisal.












TYPES OF PERFORMANCE APPRAISAL
There are two types of performance appraisal systems which are normally used in organisations:
close ended appraisal system,
open ended appraisal system.
In the close ended appraisal system, commonly used in government organisations and public
enterprises, a confidential report is submitted on the performance of the employee. Only where
an adverse assessment is made against an individual, the concerned individual is informed about
the same. The main shortcoming of this system is that an individual is not informed about his/her
inherent strengths and weaknesses and, therefore, is not given an opportunity to respond to the
assessment made on him/her. The employees are, therefore, in a constant dilemma as to how
their performance is viewed by the management. In the open ended appraisal system, unlike in
the close ended system, the performance of the individual is discussed with him, and he is ranked
in a five or ten point rating scale. The company uses this tool primarily for rewarding a good
performer or for other considerations like promotions. The main weakness of this system is that
all the employees are ranked in a particular scale, and whereas the good performers are
rewarded, there is no concerted effort to motivate the average performers in performing better.
Another weakness of the grading system is that the appraisal may turn out to be more subjective
in nature due to insufficient data maintained on the individual. This system also leads to
unnecessary comparisons made on different individuals performing similar jobs. Performance
appraisal can be a closed affair, where the appraises do not get any chance to know or see how
they have been evaluated; or it can be completely open, where the appraises have the opportunity
of discussing with their superiors during the evaluation exercise.







REVIEW OF LITERATURE
Bendick, M., Egan, M. & Lofhjelm, S. (2001). HR performance appraisal system, Vol. 24 No. 2,
pp. 10-25. This articles focus on the US workplace. Organizations can benefit from
performance appraisal offering diversity training to employees. That is, training employees to
respect others and not to act in a discriminatory manner towards fellow employees. McGregor,
L. (2000). Career Development International. Vol. 5 No. 4/5, pp. 244-249.
This article presents two models of mentoring. The traditional view of mentoring is facilitated
mentoring where the more experienced person (mentor) acts as a role model for the less
experienced person (mentee). Another approach is also offered guided learning. A more
experienced co-worker uses guided learning to teach a less experienced worker new skills.
Taylor, W. (2005). The Age, My Career Section, p. 11, 26/11/2005. This paper outlines the
experiences of two executive women in developing an internal mentoring program. The
experiences demonstrate that the mentoring relationship not only benefits the mentees but also
the mentor While the increased demand for executive coaching in the marketplace has opened
up, the increasing number of coaches of every type, training, and perspective has also grown
(Brotman et al., 1998; Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Wasylyshyn, 2003). It is
surprising that with the increased use of executive coaching and the rising number of coaches,
there has not been a professional association formed to develop and monitor the standards,
requirements, and competency validation solely for executive coaches (Brotman et al., 1998;
ICF, 2006; Wasylyshyn, 2003). This need has brought reactions from executives, coaches, and
clients who suggest standardized methods.
Executives have recognized the significance of executive coaching in their professional
performance, both personally and organizationally (Effron et al., 2005; Joo, 2005; Kampa-
Kokesh, & Anderson, 2001; Turner, 2006; Wasylyshyn, 2003). During the beginning years of
executive coaching, it was seen as an executive crutch to assist non-performers. Today, executive
coaching is looked upon as a necessary tool and in some cases reserved only for senior
executives (Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Stevens, 2005; Turner, 2006;
Wasylyshyn, 2003). One reason for the about face attitude could be the value executive coaching
brings as a "time-out" break, from the unyielding demands of the corporate world, for inner-
thought, assessment, positive criticism, and a co-development of strategies (Bacon & Spear,

2003; Brotman et al., 1998; Joo, 2005; Kampa-Kokesh & Anderson, 2001; Kilburg, 1996a;
Orenstein, 2002; Stevens, 2005; Turner, 2006; Wasylyshyn, 2003).
One of the premier uses of executive coaching is to deliver "just-in-time" strategies for
increasing one's personal performance and effectiveness by transforming weaknesses into
strengths (Bacon & Spear, 2003; Kampa-Kokesh, & Anderson, 2001; Kilburg, 1996a; Orenstein,
2002; Wasylyshyn, 2003). Due to this increase in personal ROI, corporate America is enamored
with executive coaching and the benefits it has brought in recent years (Bacon & Spear, 2003).
With many corporate incomes decreasing over the past few years, corporations have reevaluated
their training and development practices, to include the use of external sources (Joo, 2005;
Kampa-Kokesh, & Anderson, 2001; Turner, 2006; Wasylyshyn, 2003). As a result, executive
coaching focuses on ensuring alignment with corporate strategy (Bluckert, 2005b; Brotman et
al., 1998; Edwards, 2003; Levinson, 1996; Joo, 2005; Orenstein, 2006; Peterson, 1996; Saporito,
1996; Turner, 2006). In this changing corporate setting, executive coaching must be used in a
laser-focused manner, rather than a liberally used improvised solution (Orenstein, 2006). Those
corporations who have identified the need and usefulness of executive coaching have created an
inner coaching environment to facilitate coaching through internal coaches (Turner, 2006).
It is in the new corporate coaching culture of companies employing their own coaches (internal)
where the chemistry of the coaching relationship takes a back seat to replicable measures in the
coaching protocol (Joo, 2005; Kampa-Kokesh & Anderson, 2001; Stevens, 2005; Turner, 2006;
Wasylyshyn, 2003). The internal coach, unfortunately, finds him or herself in a dilemma of
possibly losing one of his most prized outcomes, which is, assisting clients to become masters of
change management (Wasylyshyn, 2003). Another downturn of this "commoditization" of
executive coaching is to put a limit on the use of coaching, and to what extent, documenting the
benchmarks, stages, and action steps. Doing so, realistically, diminishes the coaching process to
a cookie cutter approach including a preset number of sessions and strategies rather than a co-
developed strategic plan developed over the course of an ongoing relationship. (Joo, 2005;
Kampa-Kokesh & Anderson, 2001; Turner, 2006; Wasylyshyn, 2003).



RESEARCH METHODOLOGY

Research means a search for knowledge. Sometimes, it may refer to scientific and systematic
search pertinent information on a specific topic. Intact researcher is an art of scientific
investigation. Redman and Moray define researcher as a systematic efforts to gain new
knowledge. Some consider researcher is a movement from the known to the unknown. It is
actually a voyage of discovery. According to Clifford woody, researcher compromise, define
and redefining problem, formulating hypothesis or suggested solution; collecting ,organizing and
evaluating data; making deduction and reaching conclusion; and at last carefully testing the
conclusion to determine whether they fit the formulating hypothesis.
Researcher is thus an original contribution to the existing stock of knowledge making
for its advancement. It is the pursuit of truth with the help of study, observation, comparison and
experiment. In short, the study of knowledge through objective and systematic method consisting
of enunciating the problem, formulating the hypothesis collecting the facts or data, analyzing the
facts and researching certain conclusion either in the form of solution towards the concerned
problem or in certain generalist for some theoretical formulations.











RESEARCH DESIGN:

Research Design refers to "framework or plan for a study that guides the collection and analysis
of data". A typical research design of a company basically tries to resolve the following issues:
a) Determining Data Collection Design
b) Determining Data Methods
c) Determining Data Sources
d) Determining Primary Data Collection Methods
e) Developing Questionnaires
f) Determining Sampling Plan
(1) Explorative Research Design:
Explorative studies are undertaken with a view to know more about the problem. These studies
help in a proper definition of the problem, and development of specific hypothesis is to be tested
later by more conclusive research designs. Its basic purpose is to identify factors underlying a
problem and to determine which one of them need to be further researched by using rigorous
conclusive research designs.
(2) Conclusive Research Design:
Conclusive Research Studies are more formal in nature and are conducted with a view to
eliciting more precise information for purpose of making marketing decisions.
These studies can be either:
a) Descriptive or
b) Experimental
Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive.



OBJECTIVES OF THE STUDY

1. To develop my understanding of the subject.
Performance Appraisal System implemented in various Organizations varies according to the
need and suitability. Through my research, I havetried to study the kind of Appraisal used in the
Organization and the various pros and cons of this type of system.

2. To conduct a study on social behavior.
Social behavior is a very unpredictable aspect of human life but social research is an attempt to
acquire knowledge and to use the same for social development.

3. To enhance the welfare of employees.
The Appraisal system is conceived by the Management but mostly does not take into
consideration the opinion of the employees. This can lead to adverse problems in the
Organization. Therefore by this study I have attempted to put forth the opinion of the employee
with respect to the acceptability of the Performance Appraisal System.
4. To exercise social control and predict changes in behavior.
The ultimate object of my research is to make it possible to predict the behavior of individuals by
studying the factors that govern and guide them.

OBJECTIVES OF THE STUDY:
To study performance appraisal system To understand and evaluate performance appraisal
mechanism in operation. To evaluate the effectiveness and satisfaction level of the employees
towards performance appraisal system in HAMUL






SCOPE OF THE STUDY
To help each employee understand more about their role and become clear about
their functions;
To be instrumental in helping employees to better understand their strengths and
weaknesses with respect to their role and functions in the organization;

To help in identifying the developmental needs of employees, given their role and function;

To i ncr eas e mut ual i t y bet we en empl oyees and t hei r s uper vi s or s s o t hat
ever y employee feels happy to work with their supervisor and thereby contributes
their maximum to the organization;

To act as a mechanism for increasing communication between employees and
their s uper vi s or s . I n t hi s wa y, ea c h empl oyee get s t o know t he
expect at i ons of t hei r superior, and each superior also gets to know the difficulties of their
subordinates and can try to solve them. Together, they can thus better accomplish their tasks;

To provide an opportunity to each employee for self -reflection and individual goal-
setting, so that individually planned and monitored development takes place;
To help employees internalize the culture, norms and values of the organization,
thus developing an identity and commitment throughout the organization;

To help prepare employees for higher responsibilities in the future by continuously reinforcing
the development of the behavior and qualities required for higher -level positions in
the organization;

To be instrumental in creating a positive and healthy climate in the organization that
drives employees to give their best while enjoying doing so; and

To as s i s t i n a var i et y of per s onnel deci s i ons by per i odi cal l y gener at i ng
dat a regarding each employee.

DATA COLLECTION:


Data Sources:
(i) Secondary Data through Internet
(ii) Primary Data through Questionnaire
(iii) Contact Method
(iv) Personal Interaction

DATA PRESENTATION AND ANALYSIS:
1. Bar graphs
2. Pie Diagrams












LIMITATIONS OF THE STUDY

A few limitations and constraints came in way of conducting the present study, under which the
researcher had to work are as follows:
Although all attempts were made to make this an objective study, biases on the part of
respondents might have resulted in some subjectivity.

Though, no effort was spared to make the study most accurate and useful, the sample
Size selected for the same may not be the true representative of the Company, resulting
in biased results.


This being the maiden experience of the researcher of conducting study such as this, the
possibility of better results, using deeper statistical techniques in analyzing and
interpreting data may not be ruled out.







DATA ANALYSIS AND INTERPRETATION

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 Score Overall Rank
Salary Administration and Benefits 87 1
Determination of promotion or transfer 109 2
Assistance in goal 228 3
Guideline for training plan 254 4
An insight into your strengths and weakness 312 5
Decision to layoff 354 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.










Yes
86%
No
14%
Awareness about
Responsibilities

3. 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.
4. 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.
2%
28%
42%
23%
5%
Satisfaction Level
Fully Dissatisfied
Partially Dissatisfied
Satisfied
Partially satisfied
Fully satisfied
Yes
34%
No
66%
Awarness about Performance
Rating

5. Alowing Self ratings :



From graph it can be seen that majority of respondents want self rating to be a
method of conducting the appraisals .
6. 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.
Yes
92%
No
8%
Self Rating Should be allowed
Yes
23%
No
77%
Rate your own performance

7. 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.
8. 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.
2% 3%
11%
84%
Timing of Appraisal
Monthly
Quaterly
Half Yearly
Annual
37%
63%
Credibility of Appraiser
Yes
No

9. 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.
10. 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.
27%
73%
Complaint Channel for
employees
Yes
No
36%
64%
Standards Communicated to
Employees
Yes
No

11. 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.

12. Clear understanding of Appraisers job

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

91%
0%
9%
0%
0%
Performance Appraisal
Immediate
Supervisor
Peer appraisal
Rating committee
Self Rating
77%
23%
Clear understanding of
Appraisee's Job
Yes
No

13. 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.
14. 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.

50% 50%
Objective of Appraisal System
Yes
No
22%
78%
Good communication
between Top management
and Business goal
Yes
No

15. 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.
16. 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.



98%
2%
Comments and suggestion to
be considered
Yes
No
30%
70%
Post Appraisal Interview
Yes
No

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 Score Overall Rank
Determination of promotion or transfer 24 1
Salary Administration and Benefits 27 2
Decision to layoff 42 3
Guideline for training plan 69 4
Assistance in goal 72 5
An insight into your strengths and weakness 81 6

27
24
42
72
69
81
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
Purpose of Appraisal System
Score

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

0%
0%
27%
60%
13%
Appraisal System
1
2
3
4
5
100%
0%
Support from Subordinate
Yes
No

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.







0%
14%
13%
73%
0%
Type of Appraisal System
Assessment centre
MBO
BARS
360 degree
feedback

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.

20%
60%
20%
Performance Appraisal
criteria
Quantitative
outcome criteria
Qualitative process
criteria
Quantitative
process criteria
87%
13%
0%
0% 0%
Timing of Appraisal
Annual
Quaterly
Half Yearly
Monthly
Anytime

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.


73%
0%
27%
Effect of Poor Appraisal
System
De-motivation
Retention
Ineffective
teamwork
100%
0%
Good Communication
between Top Management
and Staff
Yes
No

9. Insight to Appraisers 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. Appraisers 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.
33%
67%
Insight into Appraisee's
Strength and weakness
Yes
No
13%
87%
Appraisee's comment &
suggestion
Yes
No

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.

100%
0% 0%
0%
0%
Performance Appraisal
Immediate
supervisor
Peer appraisal
Rating committees
Self-rating
100%
0%
Understanding of Appraisee's
Job
Yes
No

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.

87%
13%
Standards for Performance
Appraisal
Yes
No
0%
100%
Self Rating in Performance
Appraisal
Yes
No

15. Action after Performance Appraisal




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








100%
0%
Action after Performance
Appraisal
Yes
No

Conclusions and Suggestions
Performance appraisal should not be perceived just as a regular activity but its
importance should be recognized and communicated down the line to all the employees.
There should be a review of job analysis, job design and work environment based on the
performance appraisal.
It should bring more clarity to the goal and vision of the organisation.
It should provide more empowerment to the employees.
New methods of appraisal should be adopted so that both appraiser and the appraisee
take interest in the appraisal process.
The employees who have excellent performance should be used as a mentor for other
employees which would motivate others to perform better.
Employees should be given feedback regarding their appraisal. This will help them to
improve on their weak areas.
Financial and non-financial incentives should be linked to the annual appraisal system so
that employees would be motivated to perform better.
New mechanisms should be evolved to educe the time factor involved in the procedure
of appraisal. Introducing online-appraisal can do this.
The frequency of training program for the appraiser should be increased and these
sessions should be made interactive.
The awareness sessions for the employees/appraisees should be made more interactive
and the views and opinion of the appraisees regarding appraisal should be given due
consideration.
Assistance should be sought from specialists for framing a proper appraisal system that
suits the organisation climate. Constant monitoring of the appraisal system should be
done through discussions, suggestions, interactions.
Combining the different methods of appraisal can minimize the element of biasness in
an appraisal. Like the Rating method combined with assessment center method would
give an evidence of poor/unfavorable or outstanding behaviour of the appraisee, if any.
Use of modern appraisal techniques like 360
o
appraisal, assessment centers which are
more effective.

More transparency should be brought about in the appraisal system.
The appraisal system should cover all employees in the organization both white collar
and blue-collar jobs.
Recognizing the good performers i.e., appraises who have accomplished the targets for
the year can help in getting more commitment from the employees.
Information regarding the performance of the employees should be kept in proper
manner.
Some of the performance appraisals should be conducted by the top management so that
they can understand the employees and their needs, behavior better and to find out the
loopholes.
Performance appraisal should be effectively link to the performance management system
of the organization.
.still follow the traditional methods of appraisal that should be transformed
into the modern one.


















B I B L I O G R A P H Y




W e b s i t e s :-

w w w . s a i l i n d i a . c o . i n
w w w . w i k i p e d i a . o r g
www.performance-appraisal.com/intro.htm
www.telecollege.dcccd.edu/contents/evaluate.htm


B o o k s :-

i . P e r s o n n e l H u m a n R e s o u r c e M g m t
B y D a v i d A D e c e n z o

i i . H u m a n R e s o u r c e M g m t
B y G a r y D e s s l e r







Questions for Appraiser

1. Purpose of Performance appraisal :
(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


2. Is the Performance Appraisal helping you to plan your work well?
1 2 3 4 5
(1 = Least helpful; 5 = Most helpful)

3. 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

4. Which appraisal system is being employed in the company?
a. Assessment centre
b. MBO
c. BARS
d. 360 degree feedback
e. Balance scorecard



5. 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)


6. Timing of Appraisals
a. Monthly
b. Quarterly
c. Half Yearly
d. Annual
e. Anytime
7. What do you think is the effect of a poor appraisal system
a. De-motivation
b. Retention
c. Ineffective teamwork
8. Does the appraisal system provide a good communication between the top-management
plans and business goals to staff below?
a. Yes b. No
9. Does it give insight to appraisee regarding his strength or weakness?
a. Yes b. No
10. Are employees comments and suggestions taken into consideration before the appraisal?
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 appraisers
job to both appraiser and appraise?
a. Yes b. No

13. Are the standards on the basis of which the performance appraisal is carried out
communicated to the employees before hand?
a. Yes b. No

14. Do you give an opportunity to the appraisee to rate his own performance?
a. Yes b. No

15. Do you act upon the results of your performance appraisal?
a. Yes b. No

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


Thank you, Date 09/04/2014