Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
INTRODUCTION
1.1 PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and also the
future potential of the employee. Its aim is to measure what an employee does.
People differ in their abilities and their aptitudes. There is always some difference
between the quality and quantity of the same work on the same job being done by two
different people. Therefore, performance management and performance appraisal is
necessary to understand each employees abilities, competencies and relative merit and
worth for the organization. Performance appraisal rates the employees in terms of their
performance.
Performance appraisal takes into account the past performance of the employees
and focuses on the improvement of the future performance of the employees. Here at
naukrihub, we attempt to provide an insight into the concept of performance appraisal, the
methods and approaches of performance appraisal, sample performance appraisal forms
and the appraisal softwares available etc. An attempt has been made to study the current
global trends in performance appraisal.
Personal issues that are impacting performance such as bereavement, close family
member sickness, financial or relationship worries
Workplace issues that are impacting performance such as helping other colleagues
to meet their objectives before own objectives, issues with the work environment
such as an excessively noisy office or frequent interruptions
Team issues such as working relationship with other team members, dependencies
on others to complete their objectives first, access to needed tools, experts or thirdparty suppliers
To judge the gap between the actual and the desired performance.
1 .2 INDUSTRY PROFILE
1.2.1 HISTORY
The first practical automobile with a Petrolengine was built by Karl Benz in 1885
in Mannheim, Germany Benz was granted a patent for his automobile on 29 January 1886,
and began the first production of automobiles in 1888, after Bertha Benz his wife, had
proved with the first long-distance trip in August 1888 - from Mannheim to Pforzheim and
back - that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha
Benz Memorial Route commemorates this event.
Soon after, Gottlieb Daimler and Wilhelm Mabuchi in Stuttgart in 1889 designed a
vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an
engine. They also are usually credited as inventors of the first motorcycle in 1886, but
Italys Enrico Bernardi of the University of Padua in 1882, patented a 0.024 horsepower
(17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle
making it at least a candidate for the first automobile, and first motorcycle;.[9]:p.26 Bernardi
enlarged the tricycle in 1892 to carry two adults.
1.2.2 AUTOMOTIVE INDUSTRY
The automotive industry designs, develops, manufactures, markets, and sells the
world's motor vehicles. In 2009, more than 88 million motor vehicles, including cars and
commercial vehicles were produced worldwide.
About 250 million vehicles are in use in the United States. Around the world, there
were about 806 million cars and light trucks on the road in 2009; they burn over 260
billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly,
especially in China and India. In the opinion of some, urban transport systems based
around the car have proved unsustainable, consuming excessive energy, affecting the
health of populations, and delivering a declining level of service despite increasing
investments. Many of these negative impacts fall disproportionately on those social groups
who are also least likely to own and drive cars. The sustainable transport movement
focuses on solutions to these problems.
In 2009, with rapidly rising oil prices, industries such as the automotive industry,
are experiencing a combination of pricing pressures from raw material costs and changes
in consumer buying habits. The industry is also facing increasing external competition
from the public transport sector, as consumers re-evaluate their private vehicle usage.[7]
Roughly half of the US's fifty one light vehicle plants are projected to permanently close in
the coming years with the loss of another 200,000 jobs in the sector, on top of the 560,000
jobs lost this decade. As a result, in 2010, China became the largest automobile market in
the world
Majority of Indians, especially the youngsters prefer motorbikes rather than cars.
Capturing a large share in the two-wheeler industry, bikes and scooters cover a major
segment. Bikes are considered to be the favourite among the youth generation, as they help
in easy commutation.
Large variety of two wheelers is available in the market, known for their latest technology
and enhanced mileage.
With over a billion plus population, the bike industry in India has witnessed
enormous growth in the last decade. Bikes in India encompass a major portion of the
Indian two-wheeler industry. With changing market dynamics, bikes have slowly started
replacing the scooter and mopeds. Consuming a large share in the Indian two-wheeler
industry, bikes have come to represent style and class for many Indian men and a few
women as well.
1.2.4.1 DEALERS
Our Brand Image speaks for itself. Complementing the Marketing team is our vast
and strong Dealer network - the backbone of our vital marketing operations.
Recent initiatives have been launched by Yamaha in the field of business-tobusiness as well as business-to-consumer cooperation with Dealers. The new showrooms
based on YAMAHA VISUAL IDENTITY are one of the many steps in this direction.
Our dealer network works on the "3S" fundamentals of -SALES SERVICE and
SPARE PARTS under one roof. With a strongly dedicated team of Sales and Service
engineers, IYM targets the fulfillment of customer's needs. Every single customer matters
to us. Together the 3S operate in tandem to serve our customer and forge an everlasting
bond with them.
CUSTOMER SATISFACTION is our motto and we remain steadfast in our
commitment to our valued customers...Offering Nothing But the Very BEST to Them.
1.2.4.2 EXPORTS
IYM is an active player in the exports market. Currently, we export motorcycles to
50 countries including Argentina, Mexico, Philippines, Bangladesh, Sri Lanka, Columbia,
Dominican Republic, Nigeria and lvory Coast. The export Product line boasts of RX 100,
Crux, YD 125, Enticer and Libero.
To consolidate our position in the exports arena, we are rapidly expanding our
presence in Asia, Africa, Central and South America.
1.3.2 DEPARTMENT
There are four departments in the company, they are,
Customer Care
Sales
Service
The customer care department is taking care of queries of customers and booking of the
bikes. Sales department is taking care of delivering the bike in time. Service department is
taking care of free service and maintenance of the bike at the customers satisfaction level.
At present Abinaya Auto has 100 employees and widely distributing the bike all
over Tamil Nadu. The company is giving opportunity to do the apprentice for the diploma
holders. At presently there are 7 apprentices in the company.
The company provides best model of bikes as well as services to the Yamaha Bike.
The Company has the infrastructure for the service of the vehicles in good manner and ontime delivery. Abinaya Auto offer various facility to its customers like delivering the bike,
giving free service to the customers to their complements, attending their queries and
providing solution, etc.
The company employs a strong sales force so that they can operate the extensive
sales network successfully.
The company went on developing with latest technology and young generations
idealist works on this field which leads to high quality-level, quality control, which
increases its reputation and goodwill and also established classical standards in the industry
like perfection, reliability and quality.
The company also supplies the new category of bikes and spare parts which make
more satisfaction to the customers.
SECONDARY
To study the purpose of performance appraisal conducted at Abinaya Autos.
To understand the opinion of employees towards performance appraisal at Abinaya
Autos.
To identify the effect of performance appraisal on individual and organizational
development.
To understand the existing relationship between management and employees.
To identify ways to improve the existing performance appraisal system.
10
11
The result of the study are subject to bias and prejudices of the respondents
12
2. REVIEW OF LITERATURE
Performance appraisal is one of the most important requirements for all successful
business and human resource policy (Kressler, 2003). Rewarding and promoting effective
performance in organization, as well as identifying ineffective performers for resource
management (Pulakos, 2003). The ability to conduct performance appraisal relies on the
ability to assess an employees performance in a fair and accurate manner. Evaluating
employee performance is a difficult task. Once the supervisor understands the nature of the
job and the source of information, the information needs to be collected in a systematic
way, provided as feedback, and integrated into the organizations performance
management process for use in making compensation, job placement and training decisions
and assignment (London, 2003). After a review of literature, a performance appraisal
model will be described in detail. The model discussed is an example of a performance
appraisal system that can be implemented aim a large institution of higher education,
within the Student Affair division. The model can be applied to top-level, middle-level and
lower-level employees. Evaluation instruments (forms) are provided to assist with
implementation the appraisal system.
Performance evaluations have been conducted since the times of Aristotle (Landy,
Zedeck, Cleveland, 1983). The earliest formal employee performance evaluation program
is thought to have originated in the United States military establishment shortly after the
birth of the republic (Lopez, 1968). The measurement of an employees performance
allows for rational administrative decisions at the individual employee level. It also
provides for the raw data for the evaluation of the effectiveness of such personnel-system
components and processes as recruiting policies, training programs, selection rules,
promotional strategies, and reward allocations (Landy, Zedeck, Cleveland, 1983). In
addition, it provides the foundation for behaviorally based employee counseling. In the
counseling setting, performance information provides the vehicle for increasing
satisfaction, commitment, and motivation of the employee. Performance measurement
allows the organization to tell the employee some thing about their rates of growth, their
13
competencies, and their potentials. There is little disagreement that if well done,
performance measurements and feedback can play a valuable role in effecting the
organization (Landy, Zedeck, Cleveland, 1983).
PURPOSE
Performance appraisals should focus on three objectives: performance, not
personalities; valid, concrete, relevant issues, rather that subjective emotions and feelings;
reaching agreement on what the employee is going to improve in his performance and what
you are going to do (McKirchy, 1998). Both the supervisor and employee should
recognize that a strong relationship exists between training and performance evaluation
(Barr, 1993). Each employee should be allowed to participate in periodic sessions to
review performance and clarify expectations. Both the supervisor and the employee should
recognize these sessions as constructive occasions for two-way should include
opportunities for self-assessment as well as supervisor feedback.
The supervisor should keep in contact with the employee to assure the training
experiences are producing desired impact (Barr, 1993). A portion of the process should be
devoted to an examination of potential opportunities to pursue advancement of acceptance
of more complex responsibilities. The employee development goals should be recognized
as legitimate, and plans should be made to reach the goals through developmental
experiences or education (Barr, 1993). Encouraging development is not only a
supervisors professional responsibility, but it also motivates an employee to pursue
additional commitments. In addition, the pursuit of these objectives will also improve the
prospect that current employees will be qualified as candidates when positions become
available. This approach not only motivates current performance but also assists the
recruitment of current employees as qualified candidates for future positions (Barr, 1993).
14
level. Work teams may be restructured for maximum efficiency. Employee renews his or
her interest in being a part of the organization now and in the future. Training needs are
identified. Time is devoted to discussing quality of work without regard to money issues.
Supervisor becomes more comfortable in reviewing the performance of employees.
Employees feel that they are taken seriously as individuals and that the supervisor is truly
concerned about their needs and goals. (Randi, Toler, Sachs, 1992).
PITFALLS TO AVOID
When conducting performance appraisals on any level, it is important to keep in
mind the common pitfalls to avoid.
These pitfalls may include but are not limited to:1. Bias/prejudice- Race, religion, education, family background, age, and/ or sex.
2. Trait assessment Too much attention to characteristics that have nothing to do
with the job and are difficult to measure.
3. Over-emphasis on favorable or unfavorable performance of one or two tasks which
could lead to an unbalanced evaluation of the overall contribution.
4. Relying on impressions rater than facts.
5. Holding the employee responsible for the impact of factors beyond his/her control.
6. Failure to provide each employee with an opportunity for advance preparation
(Maddux, 1993).
LEGAL IMPLICATIONS
Any performance appraisal system used to make employment decisions about a
member of a protected class (i.e. Based on age, race, religion, gender or national origin)
must be a valid system (an accurate measure of performance associated with job
requirements). Otherwise, it can be challenged in the courts based on Title VII of the1964
Civil Rights Act, the Civil Rights Act of 1991 and the Age Discrimination in Employment
Act of 1975(London, 2003).
15
Performance appraisal system are home work that provides the information you
need in order to make appropriate administrative recommendations, hold meaningful
feedback discussions with staff members, and determined were performance improvement
is required
More Time
goals
Maximizing and measuring our own performance and that of the people who work
for us is a basic tenant of the work environment. Always use of simple tool and approach
that can be beneficial in achievement performance plan. -By Zack Mansdorf;
Performance Management; Identifying work goals
Most managers and supervisors today are attempting to quantify their departmental
objective and pass them on their employees through performance standards. Despite the
simplicity of this management- by objective approach, deadlines are missed, quality is
16
relatively poor and productive is low. The reasons for this may not be the fault of the
employees carrying out the work. The cause is most often associated with the immediate
supervisors lack of attention to the realities surrounding objectives and performance
standards require a careful analysis of all the relevant issues. -By Gregory Isaac; Plan for
performance
Organizational culture
17
3. RESEARCH METHODOLOGY
RESEARCH
Research in common parlance refers to a search for knowledge Redman
and Mory define Research as a systematized effort to gain new knowledge. Research is an
academic activity and as such the term should be used in a technical sense. According to
Clifford woody, Research comprises defining and redefining problem, formulating
hypothesis or suggested solutions; collecting, organising and evaluating data; making
deductions and research conclusion; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.
It must be able to define clearly what he wants to measure and must find adequate
methods for measuring it along with a clearly cut definition of population he wants to
study. Since the aim is to obtain complete and accurate information in the said studies, the
procedure to be used must be carefully planned. The research design must make enough
provision for protection against bias and must maximise reliability with due concern for
the economical completion of the research study.
18
Descriptive research is adopted for this study. It includes surveys and fact
finding enquires of different kinds. The major purpose of descriptive research is
description of the state of affairs as it exists at present. The main characteristic of this
method is that the researcher has no control over the variables. He can only report what has
happened or what is happened.
Primary and
Secondary
PRIMARY DATA
The primary data are those which are collected afresh and for the first time and thus
happen to be original in character. The tool used for collecting primary data is a structured
questionnaire.
19
SECONDARY DATA
The secondary data on the other hand are those which have already been collected
by someone else and which have already been passed through the statistical process. The
secondary data has been collected from the company records, journals. The secondary data
collected for this research was obtained from journals, magazines, company reports and
websites
(ii)
(iii)
attributes are associated. In such a situation, we proceed with the null hypothesis that the
two attributes are independent. If the calculated value is less than the tabulated value at
certain degrees of freedom, the null hypothesis is accepted and vice versa.
2 is calculated as follows:
20
2 =
(O-E) 2
E
Where2
Chi square
Oi
Observed Frequency
Expected Frequency
Ei
test depends on the set of observed and expected values and on the degrees of
freedom.
The 2 distribution is the limiting approximation designation
It is expressed as,
Percentage (%)
No. of respondents
x 100
21
the items in the distribution is not the same. Where the importance of the items varies it is
essential to allocate weight applied but may vary in different cases. Thus weighted is a
number standing for the relative importance of the items.
Weighted Average method is used to sum up the views of the various respondents
to obtain mean score for the particular statement.
Mean score = Total score / Number of respondent
Where,
Total score = Number of respondent x Weighted average
22
3.5
No. of respondents
Percentage (%)
Male
89
89
Female
11
11
Total
100
100
INTERPRETATION:
From the above table, it can be inferred that 89% of the respondents are male and
11% of the respondents are female.
23
24
No. Of Respondents
Percentage (%)
20 25 Age
25
25
30 35 Age
33
33
40 45 Age
30
30
Above 45 Age
12
12
100
100
Total
Source : Primary Data
INTERPRETATION:
From the above table, it can be inferred that 33% of the respondents are in the age
between 30 35, 30% of the respondents are in the age between 40 45, 25% of the
respondents are in the age between 20 25 and 12% of the respondents are in the age
above 45.
25
26
No. Of Respondents
Percentage (%)
Below 5 Years
28
28
5-10Years
54
54
10 15 Years
18
18
100
100%
Above 15Years
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 54% of the respondents are having 510 years experience persons, 28% of the respondents have below 5 years of experience
persons, 18% of the respondents are having10 15 years of experience and no respondents
have experience more than 15 years.
27
28
No. Of Respondents
Percentage (%)
UG Degree
49
49
PG Degree
19
19
Engineering
Others(iti)
28
28
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 49% of the respondents are UG degree
holders, 28% of the respondents are some others (iti), 19% of respondents are PG degree
holders and 4% of the respondents are engineering graduates.
29
30
No. Of Respondents
Percentage (%)
100
100
Twice a year
No specific time
100
100
Once year
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents agree that
performance appraisal is conducting once a year.
31
No. Of Respondents
Percentage (%)
Identifying barriers of
100
100
100
100
conducting
performance
All of the above
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents agree that
the reason for conducting performance appraisal includes all the factors such as to identify
motivating methods, to decide monetary benefits and identify barriers for performance.
32
No. Of Respondents
Percentage (%)
87
87
13
13
100
100
appraisal conducted
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that for 87% of the respondents
performance appraisal is conducted during working hours and for 13% respondents
performance appraisal is conducted during non-working hours.
33
34
No. Of Respondents
Percentage (%)
Superior
Peers
Everyone
Outsider
100
100
100
100
conducts
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that for 100% of the respondents
performance appraisal is conducted by outsider.
35
No. Of Respondents
Percentage (%)
Always
20
20
Sometimes
77
77
Never
100
100
conducting
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 77% of respondents feel that
the reason for performance appraisal is discussed sometimes, 20% of the respondents feel
it is discussed always and 3% of respondents say reason is never discussed.
36
37
Percentage (%)
Once
100
100
Twice
Thrice
100
100%
employee performance
Nil
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that for 100% of the respondents
meeting on performance is conducting once a year.
38
No. Of Respondents
Percentage (%)
To a high extent
12
12
To some extent
69
69
To a low extent
19
19
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 69% of the respondents feel the
performance appraisal relates to some extent to organization goals, 19% feel to a low
extent and 12% feel to a high extent it relates.
39
40
No. Of Respondents
Percentage (%)
Always
Sometimes
100
100
100
100
Never
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents say they are
never involved in designing the appraisal system.
41
S. No
No. Of
Relevance
Respondents
Percentage (%)
Highly relevant
87
87
relevant
13
13
no idea
Irrelevant
highly irrelevant
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 87% of the respondents feel that
performance appraisal is highly relevant to employee job and 13% feel it is relevant.
42
FIGURE 3.5.8
EMPLOYEE JOB
43
No. Of Respondents
Percentage (%)
Mostly
100
100
Rarely
Never
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents mostly share
their opinion and suggestions to their managers.
44
No. Of Respondents
Percentage (%)
Yes
100
100
No
100
100%
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents are given
training to fill the appraisal form.
45
No. Of Respondents
Percentage (%)
Completely aware
Aware to an extent
100
100
100
100
Not aware
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents feel that the
appraiser is not aware of their job responsibilities and duties.
46
No. Of Respondents
Percentage (%)
Frequently
11
11
Occasionally
89
89
100
100
Never
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 89% of the respondents feel that
feedback is provided occasionally whereas 11% feel that feedback is provided frequently.
47
48
Percentage (%)
Highly involved
34
34
Less involved
44
44
Not involved
26
26
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 44% of the respondents feel the rater is
less involved, 34% of the respondents feel they are highly involved and 26% of the
respondents they are not involved.
49
50
No. Of Respondents
Percentage (%)
Highly important
90
90
Less important
10
10
Not important
Total
100
100
INTERPRETATION:
From the above table, it can be inferred that 90% of the respondents feel
performance appraisal is highly important and 10% of the respondents feel it is less
important.
51
52
No. Of Respondents
Percentage (%)
Yes
78
78
No
22
22
Total
100
100
organization
INTERPRETATION:
From the above table, it can be inferred that 78% of the respondents feel
performance appraisal is properly executed while 22% feel it is not properly executed.
53
54
Support
No. of Respondents
Percentage (%)
Highly supportive
64
64
Less supportive
36
36
Not supportive
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 64% of the respondents feel top
management is highly supportive and 36% feel they are less supportive.
55
56
No. Of Respondents
Percentage (%)
Frequently
46
46
Occasionally
54
54
100
100
Never
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 54% of the respondents feel the
performance appraisal is reviewed occasionally while 46% of respondents feel they are
reviewed frequently.
57
58
No. Of Respondents
Percentage (%)
Effectively
36
36
Less effectively
54
54
Neutral
10
10
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 54% of the respondents feel that
potential is identified less effectively, 36% feel effectively, and 10% feel neutral.
59
60
No. Of Respondents
Percentage (%)
Unsatisfactory
17
17
Needs Improvement
51
51
Meets Expectations
12
12
Outstanding
20
20
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 51% of the respondents feel the
performance appraisal Needs Improvement, 20%of the respondents feel it is Outstanding,
17% of the respondents feel it is Unsatisfactory and 12% of the respondents say it Meets
Expectations.
61
62
No. Of Respondents
Percentage (%)
Strongly agree
57
57
Agree
21
21
Neutral
10
10
Disagree
12
12
100
100
Strongly disagree
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 57% of the respondents agree that
performance appraisal encourages to reach goals, 21% agree, 12% disagree and 10% feel
neutral.
63
64
No. Of Respondents
Percentage (%)
Frequently
33
33
Occasionally
57
57
Rarely
10
10
Never
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 57%of the respondents feel they
are given feedback occasionally, 33% feel frequently and 10% feel rarely.
65
66
No. Of Respondents
Percentage (%)
Yes
100
100
No
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 100% of the respondents feel that both
positive and negative points are discussed.
67
No. Of Respondents
Percentage (%)
Discouraged
46
46
27
27
Ready to learn
10
10
17
17
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 46% of the respondents feel
discouraged, 27% of the respondents feel determined to perform better, 17% of the
respondents feel they do not want to contribute and 10% of the respondents feel they are
ready to learn.
68
69
No. Of Respondents
Percentage (%)
Reliable
10
10
Effective
25
25
Accurate
25
25
Motivating
35
35
Unbiased
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 35% of the respondents feel the
performance appraisal programme is motivating, 25% of respondents feel it is effective,
25% of the respondents feel it is accurate, 10% of the respondents are feel it is reliable and
5% of the respondents feel it is unbiased.
70
71
No. Of Respondents
Percentage (%)
Highly Comfortable
75
75
Comfortable
25
25
Neutral
Uncomfortable
Highly uncomfortable
Total
100
100
INTERPRETATION:
From the above table, it can be inferred that 75% of the respondents feel they are
Highly Comfortable, and 25% of respondents feel they are Comfortable in discussing their
problems with their superior.
72
73
No. Of Respondents
Percentage (%)
10
10
25
25
Based on superiority
25
25
Based on contribution
40
40
Total
100
100
INTERPRETATION:
From the above table, it can be inferred that 40% of the respondents feel rating is
based on contribution, 25% of respondents feel rating is based on management reference.
25% of the respondents feel rating is based on superiority and 10% of the respondents feel
it is based on abilities and skills.
74
75
No. Of Respondents
Percentage (%)
33
33
Re-structuring of organisation or
25
25
25
25
17
17
100
100
individual objectives
Improvement in management-employee
relationship
Making changes in dissatisfied areas
No decision taken
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 33 % of the respondents feel there is
change in motivating strategy, 25% of the respondents feel re-structuring of organisation or
individual objectives, 25% of respondents feel there is improvement in managementemployee relationship and 17% of the respondents feel on making changes in dissatisfied
areas.
76
77
No. Of Respondents
Percentage (%)
Highly effective
34
34
Effective
16
16
Moderate
15
15
In Effective
25
25
Highly ineffective
10
10
100
100
Total
Sources: Primary Data
INTERPRETATION:
From the above table, it can be inferred that 34% of the respondents feel
performance appraisal improve overall performance highly effectively, 25% of the
respondents feel it is ineffective, 16% of respondents feel it is effective, 15% of the
respondents feel it is moderate and 10% of the respondents are feel it is highly ineffective.
78
79
Improvement
in overall PA
Changes
Highly
Effective
Moderate
Change in
motivating
strategy
Re-structuring of
organisation or
individual
objectives
12
11
Highly
ineffective
Total
12
33
25
25
17
34
16
15
25
10
100
effective
Taken
In
Effective
Improvement in
managementemployee
relationship
Making changes
in dissatisfied
areas
No decision taken
Total
80
STEP: 1
SETTING AN HYPOTHESIS
Expected frequency
STEP: 3
CALCULATION OF CHI-SQUARE VALUE
Formula
(O-E) 2
2 =
E
O
Observed frequency
Expected frequency
Chi square
81
O-E
(O-E)2
(O-E)2/E
11.22
-4.22
17.81
1.59
5.28
-0.28
0.08
0.01
4.95
4.05
16.40
3.31
12
8.25
3.75
14.06
1.70
3.30
-3.30
10.89
3.30
12
8.50
3.50
12.25
1.44
4.00
-2.00
4.00
1.00
3.75
2.25
5.06
1.35
6.25
-3.25
10.56
1.69
2.50
-0.50
0.25
0.10
11
8.50
2.50
6.25
0.74
4.00
4.00
16.00
4.00
3.75
-3.75
14.06
3.75
6.25
-0.25
0.06
0.01
2.50
-2.50
6.25
2.50
5.78
-1.78
3.17
0.55
2.72
-1.72
2.96
1.09
2.55
-2.55
6.50
2.55
4.25
-0.25
0.06
0.01
1.70
6.30
39.69
23.35
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
54.04
TOTAL
82
STEP: 4
Level of significance = 0.05
Degrees of freedom = (R-1) (C-1)
= (4-1) (5-1) = 12
Tabulated value at 5% level of significance and degree of freedom 12 is 21.026
STEP: 5
The calculated value is greater than the tabulated value: 54.04 > 26.296
RESULT
Therefore, reject the Null Hypothesis H0 and accept the alternate Hypothesis H1
INFERENCE
There is significant relationship between the changes taken for performance
appraisal and improvement of performance appraisal.
83
Proper
Execution
Yes
No
Total
10
19
25
21
25
30
10
40
78
22
100
Rating
Performance
Total
84
STEP: 1
SETTING AN HYPOTHESIS
STEP: 2
TO FIND THE EXPECTED FREQUENCY
Expected frequency
STEP: 3
CALCULATION OF CHI-SQUARE VALUE
Formula
(O-E) 2
2 =
E
O
Observed frequency
Expected frequency
Chi square
85
O-E
(O-E)2
(O-E)2/E
7.80
0.20
0.04
0.01
2.20
-0.20
0.04
0.02
19
19.50
-0.50
0.25
0.01
5.50
0.50
0.25
0.05
21
19.50
1.50
2.25
0.12
5.50
-1.50
2.25
0.41
30
31.20
-1.20
1.44
0.05
10
8.80
1.20
1.44
0.16
0.82
TOTAL
STEP: 4
Level of significance = 0.05
Degrees of freedom = (R-1) (C-1)
= (4-1) (2-1) = 3
Tabulated value at 5% level of significance and degree of freedom 3 is 7.82
STEP: 5
The calculated value is lesser than the tabulated value: 0.82 < 7.82
RESULT
Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1
INFERENCE
There is no significant relationship between the proper execution of performance
appraisal and rating employee performance.
86
Table 3.6.1.5 Cross tabulation between the Rate appraisal program and
performance appraisal developed in relevance to employee job
Improvement
in overall PA
Reliable
Effective
Accurate
Motivating
Unbiased
Total
Highly Relevant
22
20
34
87
Relevant
13
No Idea
Irrelevant
Highly Irrelevant
Total
10
25
25
35
100
Relevance
To employee
Job
87
STEP: 1
SETTING AN HYPOTHESIS
STEP: 2
TO FIND THE EXPECTED FREQUENCY
Expected frequency
STEP: 3
CALCULATION OF CHI-SQUARE VALUE
Formula
(O-E) 2
2 =
E
O
Observed frequency
Expected frequency
Chi square
88
O-E
(O-E)2
(O-E)2/E
8.70
-0.70
0.49
0.06
22
21.75
0.25
0.06
0.00
20
21.75
-1.75
3.06
0.14
34
30.45
3.55
12.60
0.41
4.35
-1.35
1.82
0.42
1.30
0.70
0.49
0.38
3.25
-0.25
0.06
0.02
3.25
1.75
3.06
0.94
4.55
-3.55
12.60
2.77
0.65
1.35
1.82
2.80
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
7.94
TOTAL
89
STEP: 4
Level of significance = 0.05
Degrees of freedom = (R-1) (C-1)
= (5-1) (5-1) = 3
Tabulated value at 5% level of significance and degree of freedom 16 is 26.29
STEP: 5
The calculated value is lesser than the tabulated value: 7.94 < 26.296
RESULT
Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1
INFERENCE
There is no significant relationship between the Rate appraisal program and
performance appraisal developed in relevance to employee job.
90
Table 3.6.1.7 Cross tabulation between the feel that performance appraisal
encourages and obtain appraisal feedback.
Obtain
appraisal
feedback
Frequently
occasionally
Rarely
Never
Total
Strongly
agree
17
37
57
Agree
11
21
Neutral
10
12
disagree
Total
33
57
10
100
Feel PA
Encourages
Disagree
Strongly
91
STEP: 1
SETTING AN HYPOTHESIS
STEP: 2
TO FIND THE EXPECTED FREQUENCY
Expected frequency
STEP: 3
CALCULATION OF CHI-SQUARE VALUE
Formula
(O-E) 2
2 =
E
O
Observed frequency
Expected frequency
Chi square
92
O-E
(O-E)2
(O-E)2/E
17
18.81
-1.81
3.28
0.17
37
32.49
4.51
20.34
0.63
5.70
-2.70
7.29
1.28
0.00
0.00
0.00
0.00
6.93
0.07
0.00
0.00
11
11.97
-0.97
0.94
0.08
2.10
0.90
0.81
0.39
0.00
0.00
0.00
0.00
3.30
0.70
0.49
0.15
5.70
-1.70
2.89
0.51
1.00
1.00
1.00
1.00
0.00
0.00
0.00
0.00
3.96
1.04
1.08
0.27
6.84
-1.84
3.39
0.49
1.20
0.80
0.64
0.53
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5.50
TOTAL
93
STEP: 4
Level of significance = 0.05
Degrees of freedom = (R-1) (C-1)
= (5-1) (4-1) = 12
Tabulated value at 5% level of significance and degree of freedom 12 is 21.026
STEP: 5
The calculated value is lesser than the tabulated value: 5.50 < 21.026
RESULT
Therefore, accept the Null Hypothesis Ho and reject the alternate Hypothesis H1
INFERENCE
There is no significant relationship between the feel that performance appraisal encourages
and obtains appraisal feedback.
94
4.1 FINDINGS
Majority (89%) of respondents are male.
Most of the respondents (33%) belong to the age group of 30 to35.
54% of the respondents have above 5 to 10 years of work experience.
Majority (49%) of the respondents are under graduates.
All of the respondents have undergone performance appraisal program once in a year.
100% of the employees interpret the reason for conducting performance appraisal
includes all the factors such as to identify motivating methods, to decide monetary
benefits and identify barriers for performance.
For 87% of the respondents performance appraisal was conducted during working
hours.
For 100% of the respondents the performance appraisal is conducted by outsider.
Most (77%) of the respondents feel that the reason for performance appraisal is
discussed sometimes.
Once in a year the meeting is scheduled for all employees to discuss their performance.
69% of the respondents feel that performance appraisal is related to organizational
goals to some extent.
All of the respondents infer that they are never involved in designing the performance
appraisal system.
87% of the respondents feel that the performance appraisal system is developed highly
relevant to the employees job.
All respondents mostly share their opinion and suggestions freely during the
performance appraisal.
All respondents have got the training to fill up the performance appraisal forms.
All of the respondents feel that the appraiser is not aware of the jobs and duties of the
each and every employee.
89% respondents feel the superior will provide informal feedbacks for performance
improvement occasionally.
95
Most (44%) of the respondents feel that the raters are less involved while appraising
employees.
Majority (90%) of the respondents feel that performance appraisal is important to the
organization.
Most (78%) of the respondents says the Performance Appraisal is properly executed in
the organization.
64% of the respondents feel that the top management is highly supportive towards the
performance appraisal system.
Majority (54%) of the respondents feel that performance appraisal system is reviewed
and updated occasionally.
54% of the respondents agree that performance appraisal helps to identify employees
potential for advancement less effectively.
Most (51%) of the respondents suggest that performance appraisal system needs
improvement
57% of the respondents strongly agree that performance appraisal system encourages to
put more effort in reaching goals.
57% of respondents feel the feedback about the performance appraisal system is
obtained occasionally.
All of the respondents feel both positive & negative points discussed to the employees.
46% of the respondents are discouraged when negative points are discussed.
Majority of the respondents 35% feel the rating appraisal system is motivating.
75 % of the respondents feel they are highly comfortable in discussing problems with
their superior.
Most (40%) of the respondents feel that performance is rated based on contribution
criteria.
33 % of the respondents feel change in motivating strategy is done after conducting
performance appraisal.
Majority of the respondents 34% feel the performance appraisal system is highly
effective in improving overall performance.
96
4.2 SUGGESTIONS
Performance appraisal could be conducted by an person inside the organisation and
one who is familiar with the employees.
Objective of conducting the performance appraisal could be discussed and doubts
can be clarified.
Performance appraisal could be updated regularly to match individual and
organisational goals.
Suggestion could be obtained from employees regarding framing the performance
appraisal system.
Since the performance appraisal is conducted by the outsider, employees
suggestion during performance appraisal may not reach the top managers. For such
situations suggestion box can be implemented and frequently reviewed.
The appraiser must be familiarized with the employees job responsibilities and
duties before conducting performance appraisal.
Feedback on performance could be discussed through formal or informal meetings.
This may enhance the involvement and performance of employees.
Appropriate and experienced appraiser can be appointed for effective performance
appraisal results.
Performance appraisal can developed in such a way to identify the hidden talent
and skills of employees.
Employees having low performance could be called individually, encouraged and
monitored closely to make improvements.
Appraisal feedback is very important in any performance appraisal program. It
could be carefully communicated by making high performers increase their target
and low performers to build up their confidence.
97
4.3 CONCLUSION
Performance appraisal may be understood as the assessment of an individuals
performance in a systematic way. The performance being measured against such factors as
job knowledge, quality and quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgement, versatility, health and the like. It is also help the
developing the strengths & weakness of the employees
Abinaya Autos have been conducting performance appraisal for the past four
years. From the study it has been indentified that the performance appraisal is able to
identify employees potential and find the motivating factors of employees. The major
drawback is in terms of the appraiser and his knowledge regarding employees job
responsibilities and duties.
Abinaya Autos has been running successfully for past 9 years and has created a
good name among its customers and society. People having poor background are given
training and provided with jobs. Performance appraisal can be conducted more effectively
by using the right tools and properly reviewing and updating the performance appraisal
program.
Suggestion form employees and experienced personnel can further enhance and
make the performance appraisal an ideal evaluation system.
98
APPENDIX
Gender
( ) Male
Age group
( ) 20 30
Female ( )
( ) 31 40
( ) 41 50
( ) 51 60
Experience
Qualification
1.
________________
How many times dose performance appraisal takes place in your organization?
a) Once a year
b) Twice a year
c) No specific time
b) peers
c)everyone
d) outsider
5. Are you informed the reason for conducting performance appraisal programs?
a) Always
b) Sometimes
c) Never
b)once
c) twice
99
d) thrice
b) to some extent
c) to a low extent
8. Are you involved along with the manager in designing the appraisal system at the
organization?
a) Always
b) sometimes
c) Never
b) relevant
b) d) irrelevant
e) highly irrelevant
c) no idea
10. Do you share your opinion and suggestions freely to the managers during the
appraisal program?
a) Mostly
b) rarely
c) never
11. Are you given training of how to fill up performance appraisal forms?
a) Yes
b) No
b) Occasionally
c) never
b) Less involved
c) not involved
b) less important
c) not important
d) No idea
16. Is performance appraisal properly executed in your organization?
a) Yes
b) no
c) not supportive
18. Is the performance appraisal reviewed and updated now and then?
a) Frequently
b) Occasionally
c) never
c) neutral
e) highly ineffectively
100
20. Sate your satisfaction through the performance appraisal program at the
organization?
a) Unsatisfactory
b) Needs Improvement
c) Meets Expectations
d) Outstanding
21. Do you feel that performance appraisal encourages you to put in more effort in
reaching your goals?
a) Strongly agree
b) Agree
c) Neutral
b) d) Disagree
e) Strongly disagree
c) Rarely
d) Never
23. Are both five & negative points discussed to the employees?
a) Yes
b) no
b) comfortable
d) uncomfortable
e) highly uncomfortable
101
c) neutral
d) Based on contribution
28. What changes have been taken in the organization as a result of performance
appraisal?
a) Change in motivating strategy
b) Re-structuring of organization or individual objectives
c) Improvement in management-employee relationship
d) Making changes in dissatisfied areas
e) No decision taken
29. In general, how effective has your organization performance appraisal system in
improving overall performance
a) Highly ineffective
b) Ineffective
c ) Moderate
d) Effective
e) Highly effective
102
REFERENCES
BOOKS
Kothari, C.R., Research Methodology - Methods & Techniques , New Delhi, New
Age international (P) Ltd., Publishers, Second Edition,2004.
4. Statistical Methods for Management, By P.N. Arora & S.Arora New Delhi, Sultan
Chand & Sons Publishers, 2005.
WEBSITE
www.yamaha.com
www.citehr.com
www.performance-appraisal.com
103