REPORT

On

A STUDY OF PERFORMANCE APPRAISAL AT KATARIA

Submitted in partial fulfillment of

requirements of

Master of Business Administration

Submitted By,
Dhruti Patel

MBA(2014-2016)
AURO UNIVERSITY
The School of Hospitality & Management

Acknowledgement
I take this opportunity to thank the management department of AURO
UNIVERSITY of Surat for giving me the opportunity to study this topic.
To be or not to be is not anything which matters, how to be thankful is what
really matters
I am highly thankful to my project guide Prof Vimal Babu for his continuous
support, supervision; motivation throughout my project in spite of his hectic
schedule who truly gave his experience gave me the light of handling research
project and helped me in handling critical situation and understanding the objective
of my work.
I would also like to thank our friends and all the faulty member of our college, for
their valuable co-operation and support for the fulfilment of the project.
Finally readers are invited for giving their suggestion to improve the standard of
this project.

Dhruti patel

TABLE OF CONTENTS
SERIA
L NO
1
2.

PARTICULARS

PAGE
NO

3.

LITERATURE REVIEW

4.

RESEARCH METHODOLGY

5.

DATA ANALYSIS AND INTERPRETATIONS

6.

RECOMMENDATIONS AND CONCLUSION

7.

BIBLIOGRAPHY

8.

APPENDIX

INTRODUCTION
NEED, OBJECTIVE AND SCOPE OF STUDY

CHAPTER 1: INTRODUCTION

1. INTRODUCTION
1.1 INTRODUCTION OF THE COMPANY
Kataria group has introduced, as one of the diversified business enterprise, with the
operation in the spanning field, from transport to the telecom industry. Kataria started its
operation and makes a name with the transport business and very soon became one of the
largest fleet in the industry.
Then after Kataria group has taken entry in automobiles industry, with a two-wheeler
dealership in 1983. After that they developed their business with four-wheelers dealership of
Maruti Suzuki Ltd at Dariapur Darwaja in Ahmedabad and it is the head-office of Kataria
Automobiles Ltd. The last decade has been us growing and to be one of the largest dealer of
Maruti Suzuki in India.
Now-a-days Kataria Automobiles has opened number of branches and Workshops across
Gujarat as below given table.
CITY

NUMBER

OF NUMBER

Ahemdabad
Surat
Bardoli
Navasari
Palanpur
Anand
Vapi
Mahesana
Valsad
Nadiad

SHOWROOMS
3
3
1
1
1
1
1
1
1
1

OUTLATES
4
-

OF NUMBER

OF

WORKSHOPS
3
3
1
1
1
1
-

They are ISO certified company with Quality system-ISO-9001-2000.They are one of the
Maruti dealer in Gujarat during course of time they have grown as a company and having 3
Maruti Showroom. Three full-fledged workshop at Surat One at Varachha and another at
5

parlepoint and another at piplod. J. D. Power Survey has rated us as No. 1 in CUSTOMER
SATISFACTION amongst all India Maruti dealers.We have been awarded a prestigious
PLANTIUM DEALERSHIP award for continuously three years.
COMPANY PROFILE
Board of Directors
Name
Mr. Rajendra Kumar Kataria
Mr. Rohan Kumar Kataria

Designation
Director
Director

1.2 INDUSTRY PROFILE

HISTORY
The first practical automobile with a Petrol engine was built by Karl Benzin, 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 are also usually credited as inventors of the first motorcycle in 1886, but Enrico
Bernardio of the University of Padua in 1882, patented a 0.024 horsepower one-cylinder
petrol motor fitting into his sons tricycle making it at least a candidate for the first
automobile, and first motorcycle. Bernardi enlarged the tricycle in 1892 to carry two adults.
AUTOMOTIVE INDUSTRY
The automotive industry designs, develops, manufacturers, markets, and sells the worlds
motor vehicles. In 2009, more than 88 million motor vehicles, including cars and commercial
vehicles were produced worldwide.
In 2009-2010, a total of 90 million new automobiles were sold worldwide: 24 million in
Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 14.4 million in Latin
America, 6.4 million the Middle East and 7.4 million in Africa. The markets in North
America and Japan were stagnant, while those in South America and Asia grew strongly. Of
the major markets, Russia, Brazil, India and China saw the most rapid growth.
About 250 million vehicles are in the 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
7

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 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 the private vehicle usage. Roughly half of
the USs 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 markets in the world.

1.3 PERFORMANCE APPRAISAL

Performance appraisal is the process of obtaining, analysing 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.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps
to analyse his achievements and evaluate his contribution towards the achievements of the
overall organizational goals. By focusing the attention on performance, performance
appraisal goes to the heart of personnel management and reflects the management's interest in
the progress of the employees.

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 employee's 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.
OBJECTIVES OF PERFORMANCE APPRAISAL:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between supervisor

subordinates and management-employees.
9

To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.

To provide feedback to the employees regarding their past performance. Provide

information to assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.

To reduce the grievances of the employees.

If employee development is required for performance improvement then solving these

performance problems should be straight forward with a clear understanding of root causes.
Possible approaches include changing the work environment, better prioritization of
conflicting priorities, time off, additional training, shadow or buddy system, mentoring or
coaching, changing team environment or set objectives and soon.
1.4 INTRODUCTION OF THE SUBJECT
Performance appraisal may be defined as an organized formal interaction between a
subordinate and supervisor that usually takes the form of a periodic interview, in which the
work performance of the subordinate is examined and discussed, for identifying weaknesses
and strengths as well as opportunities for improvement and skills development. In other
words, Performance appraisal is a formal system of measuring, evaluating, and influencing an
employees job-related attributes, behaviours and outcomes to determine how productive an
employee is, and to determine if an employees productivity can be improved.
Appraisal results are used in many organizations, either directly or indirectly, to help
identifying the better performing employees who should get the majority of available merit
pay increases, bonuses, and promotions. There are various appraisal methods are in usage
today. Broadly, we can classify them as comparative appraisals (ranking, paired
comparisons, and forced distribution), behavioural appraisals (graphic rating scales,
checklist, critical incidents, essays, and behaviourally anchored rating scales), and output
10

based appraisals. Also there are rapid appraisal methods for quick, low cost ways to gather
data for managers information needs.
All of the appraisal methods have been discussed and their advantages and disadvantages are
mentioned. In this paper a new appraisal method has been proposed using the existing
methods. This new method is developed by taking the advantages of the three common
methods including comparative, behavioural and output based. The advantages and
disadvantages of this new method are also discussed. A hierarchical structure discussed in
this paper uses all the appraisal methods accordingly at appropriate levels of the company.

11

1.5 METHODS FOR APPRAISING PERFORMANCE

Performance actually can be appraised by a wide variety of methods and techniques. The
most commonly used performance appraisal methods can be distinguished into three major
categories: comparative appraisals, behavioural appraisals, and output-based appraisals.
Comparative Appraisals
Managers directly compare the performance of their subordinates against one another in
comparative appraisals. For example, a data entry operator's performance would be compared
with that of other data-entry operators by the computing supervisor. Comparative techniques
include ranking, paired comparisons, and forced distribution.
Ranking: In this method, the supervisor lists all subordinates in order, from the highest to the
lowest in performance. Rankings such as this are appropriate only in small companies. As the
number of employees increases, it becomes gradually more difficult to discern differences in
their performance.
Paired Comparisons: The paired comparison method involves comparing each employee to
every other employee in the rating group, one at a time, to determine the better. A rank order
is obtained by counting the number of times each individual is selected as being the better of
a pair.
Forced Distribution: In forced distribution, the supervisor must assign only a certain
proportion of his/her subordinates to each of several categories on each evaluative factor. A
common forced distribution scale is divided into five categories. A fixed percentage of all
subordinates in the group fall within each of these categories. Typically, the distribution
follows a normal distribution.

12

Behavioural Appraisals
In contrast with comparative appraisals, behavioural appraisals allow supervisors to evaluate
each person's performance independent of other employees but relative to important jobrelated behaviours, which when exhibited can lead to job success.
Graphic Rating Scale: The graphic rating scale allows the rater to mark an employee's job
performance on a five-point or seven-point scale. This method identifies certain subjective
character traits, such as 'pleasant personality', 'initiative' or 'creativity' to be used as basic job
performance criteria. Because of its simplicity, the graphic rating scale is the most frequently
used performance appraisal method.
Checklist: The checklist uses a list of statements or words that are checked by raters. Raters
check statements most representative of the characteristics and performance of an employee.
Typical checklist statements are: can be expected to finish working time, seldom agrees to
work overtime, is cooperative and helpful, accepts criticism, and strives for selfimprovement.
The checklist can be modified so that varying weights are assigned to the statements or
words. The results can then be quantified. Usually, the results are not known by the rater and
are tabulated by someone else, such as a member of the HR unit.
Critical Incidents: In the critical incident method, the manager keeps a written record of the
highly favorable and unfavorable actions in an employee's performance. When something
happens [a 'critical incident' involving a particular employee] the manager writes it down.
Thus, a list of critical incidents is kept during the entire rating period for each employee. The
critical incident method can be used with other methods to document the reasons why an
employee was rated in a certain way.
Essays: The essay (free-form) appraisal method requires the manager to write a short essay
describing each employee's performance during the rating period. The rater usually is given a
few general headings under which to categorize comments. The intent is to allow the rater
more flexibility than other methods do. As a result, the method is often combined with other
methods.
13

Behaviorally Anchored Rating Scales (BARS): BARS utilize critical incidents to focus
appraisal on employee behaviors that can be changed. Thus, a BARS system describes
examples of 'good' or 'bad' behavior. These examples are 'anchored', or measured, against a
scale of performance levels. An example of BARS that rates a university professor's attitude
toward students is sited here. Construction of BARS begins with the identification of
important job dimensions. The dimensions are the most important performance factors in an
employee's description. Assume the major job dimensions associated with teaching are:
course organization, attitude toward students, fair treatment, and competence in subject area.
Short statements, similar to critical incidents, are developed that describe both desirable and
undesirable behaviors. Then they are 'retranslated' or assigned to one of the job dimensions.
This task is usually a group project and assignment to a dimension usually requires the
agreement of 60% to 70% of the group. The group, consisting of people familiar with the job,
then assigns each 'anchor' a number, which represents how 'good' or 'bad' the behavior is.
When numbered, these anchors are fitted to a scale. The drawbacks are: behaviorally
anchored rating scales require extensive time and effort to develop and maintain. Also,
separate BARS forms are necessary to accommodate different types of jobs in an
organization.
360 Degree Appraisal system: In human resources or industrial psychology, 360-degree
feedback, also known as multi-rater feedback, multi source feedback, or multi source
assessment, is feedback that comes from members of an employee's immediate work circle.
Most often, 360-degree feedback will include direct feedback from an employee's
subordinates, peers, and supervisor(s), as well as a self-evaluation. It can also include, in
some cases, feedback from external sources, such as customers and suppliers or other
interested stakeholders. It may be contrasted with "upward feedback," where managers are
given feedback only by their direct reports, or a "traditional performance appraisal," where
the employees are most often reviewed only by their managers.
Output-based Appraisals
While the methods described above focus on job behaviors or processes, output-based
appraisals focus on job products as the primary criteria. The most commonly used
14

outputbased appraisal is Management-by-Objectives (MBO). MBO specifies the

performance goals that an individual hopes to attain within an appropriate length of time. The
objectives that each manager sets are derived from the overall goals and objectives of the
organization. Implementing an MBO appraisal system comprised four basic stages.
Job Review and Agreement: In the first phase the employee and the supervisor review the
job description and the key activities that comprise the employee's job. The idea is to agree
on the exact makeup of the employee's job.
Development of Performance Standards: Specific standards of performance must be
mutually developed. This phase specifies a satisfactory level of performance that is specific
and measurable.
Guided Objective Setting: Objectives are established by the employee in conjunction with,
and guided by, the supervisor. Objectives should be realistically attainable and may be
different from the set performance standard.
Continuing Performance Discussions: The employee and the supervisor use the objectives
as bases for continuing discussions about the employee's performance. Although a formal
review session may be scheduled, the employee and the manager do not necessarily wait until
the appointed time for performance discussion. Objectives are modified mutually, and
progress is discussed during the period.

15

1.6 PERFORMANCE APPRAISAL

Performance appraisal is one of the most important requirements for all successful
business and human resource policy . Rewarding and promoting effective performance in
organization, as well as identifying ineffective performers for resource management. The
ability to conduct performance appraisal relies on the ability to assess an employee's
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 organization's performance management processor use in making compensation, job
placement and training decisions and assignment.
Performance evaluations have been conducted since the times of Aristotle. 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. The measurement
of an employee's 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. In addition, it provides the
foundation for behaviourally based employee counselling. In the counselling setting,
performance information provides the vehicle for increasing satisfaction, commitment, and
motivation of the employee. Performance measurement allows the organization to tell the
employee something about their rates of growth, their 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 .

16

1.7 BASIC 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. Both the supervisor and employee should recognize that a strong
relationship exists between training and performance evaluation. 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 . 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.
Encouraging development is not only a supervisor's 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

1.8 BENEFITS OF PRODUCTIVE PERFORMANCE APPRAISALS

Employee learns of his or her own strengths in addition to weaknesses. New goal and
objectives are agreed upon. Employee is an active participant in the evaluation process. The
relationship between supervisor and employees is taken to an adult-to-adult level. Work
teams may be restructured for maximum efficiency. Employee renews his or her interest in

17

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..
1.9 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
is 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 rather 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).

18

CHAPTER 2: NEED, OBJECTIVE AND SCOPE OF

STUDY

19

2. NEED, OBJECTIVE AND SCOPE OF THE STUDY

2.1 NEED FOR THE STUDY
Automobile has become important need of people in their fast moving life. These automobile
companies are expanding in greater phase in various countries especially in highly populated
countries like India, China etc. These Companies are also contributing towards the
development of economy for a long time and at the moment it is treated as an important
industry in modern world. Due to globalization and free market economy, this industry is
facing severe competition, also it makes establishment of foreign company in other countries.
Most of the automotive companies fail due to lack of proper strategic planning and goals.
One of the major reasons of their poor performance is adaptation of traditional production
system. They are very much slow in adopting new product line, less concerned about
attracting and satisfying customers and being reluctant to implement information technology.
Thats why it is very necessary for each and every industry to evaluate its performance over
the periods.
Thus the purposes of choosing the topic are,

I feel that performance appraisal of employees will result in better productivity.

For the better understanding of the concept of performance appraisal.

To provide feedback on appraisal system of the company for further improvement of

the system.

2.2 OBJECTIVE OF THE STUDY

Primary Objective:

To study the performance appraisal of employees at KATARIA Group Surat.

To study the training needs required.

To study the purpose of performance appraisal conducted at KATARIA.

20

Secondary Objective:

To understand the opinion of employees towards performance appraisal at KATARIA.

To identity 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.

2.3 SCOPE OF THE STUDY

The management can identify the employee's opinion of the existing performance
appraisal system.

The study can be used to make the present appraisal system more effective and
satisfied among employees.

It could be used to identify training and development needs for the individual and the
organization as a whole

2.4 LIMITATIONS OF THE STUDY

Production is, in fact, a huge operation and it is quite impossible to cope up. And for that
reason limitations prevail while conducting the survey. Basic limitations faced while
preparing the study were:

The Companys policy of not disclosing some data and information for obvious
reasons, which would have been very much useful for the report.

Some of the questionnaires were incomplete.

Few employees sometime felt disturbed, as they were busy in their job.

Sometimes it was difficult to collect data from their files, because important files are
kept in volt for safety.

It is difficult to make information based a rich report in short time of period.

21

This report was prepared in short time.

CHAPTER 3: LITERATURE REVIEW

22

3. LITERATURE REVIEW

23

CHAPTER 4: RESEARCH METHODOLGY

24

4. RESEARCH METHODOLOGY
Research in common parlance refers to search for knowledge. Redman and Mory define
research as a Systematized effort to gain new knowledge. Research is an academic activity
and such the term should be used in technical sense. According to Clifford Woody, Research
comprises defining and redefining problem, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and research conclusions; and
at last carefully testing the conclusions to determine whether they fit the formulating
hypothesis.
Research is thus an original contribution to the existing stock of knowledge making for its
advertisement. It is pursuit of truth with the help of study, observation, comparison and
experiment. In short the search for knowledge through objective and systematic method of
finding solution to problem is research.

4.1 RESEARCH DESIGN

A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the Research purpose with economy in procedure.
In fact the Research design is the conceptual structure within which Research is conducted: it
constitutes the blueprint for the collection measurement and analysis of data.
It must be able to define clearly what they want to measure and must find adequate methods
for measuring it along with a clear cut definition of population wants to study. Since the aim
is to obtain complete and accurate information in these studies, the procedure to be used must
be carefully planned. The research design must make enough provision for protection against
bias and must maximize reliability with due concern for the economical completion of the
search study.
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 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.
25

4.2 SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from the sampling frame, it
refers to the technique or procedure the researcher would adopt in selecting some sampling
units from which interferences about the population is drawn. Sampling type used is Simple
Random sampling technique.
4.3 POPULATION AND SAMPLE SIZE
A decision has to be taken concerning sampling unit before selecting sample. The population
for this study includes the employees from three branches of KATARIA group. 100
employees were undertaken for the study.
4.4 DATA COLLECTIONS
For achieving the specific objectives of this study, data were gathered from both primary and
secondary sources.
Primary Sources

Direct conversation with the respective officers of the Departments.

Face to face conversation with the employees.

Employees opinion collected through Questions.

Secondary Sources:

Various records of the Company.

Different Types of system information.

Website of KATARIA Group.

Different newsletters.

Annual Performance Appraisal Form of company.

26

Personal files of employees.

STATISTICALTOOLS
Graphical representation
Percentage analysis

PERCENTAGE ANALYSIS
It refers to a special kind of ratio. Percentage is used in making comparison between two or
more series of data; percentages are used to determine relationship between the series if data
finding the relative differences becomes easier through percentage.
It is expressed as,

Percentage (%) =

No. of respondents

x 100

Total no. of respondents

27

CHAPTER 5: DATA ANALYSIS AND

INTERPRETATIONS

28

5. DATA ANALYSIS AND INTERPRETATION

5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS

TABLE 5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS

Gender
Male
Female
Total
Source: Primary Data

No. of respondents
89
11

Percentage (%)
89
11

100

100

FINDINGS:
From the above table, it can be inferred that 89% of the respondents are male and 11% of the
respondents are female.
INTERPRETATIONS:
From this we can interpret that the organisation is male dominated and hardly few female
employees are there.

29

FIGURE 5.1 GENDER WISE CLASSIFICATION OF RESPONDENT

5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

TABLE 5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

Age
20-25Age
30-35Age
40-45Age
Above-45Age
Total
Source: Primary Data

No. Of Respondents
25
33
30
12
100

Percentage (%)
25
33
30
12
100

FINDINGS:
From the above table, it can be inferred that 33% of the respondents are in the age of 30-35,
30% of the respondents are in the age of 40-45, 25% of the respondents are in the age of 2025 and 12% of the respondents are in the age above 45.

30

FIGURE 5.2 AGE WISE CLASSIFICATION OF RESPONDENTS

5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

TABLE 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

Experience
Below 5Years
5-lO Years
10-15 Years
Above15Years
Total

No. Of Respondents
28
54
18
100

Sources: Primary Data

31

Percentage (%)
28
54
18
100%

FINDINGS:
From the above table, it can be inferred that 54% of the respondents are having 5-10years
experience persons, 28% of the respondents have below 5Years of experience persons, 18%
of the respondents are having 10-15years of experience and no respondents have experience
more than 15years.
INTERPREETATIONS:
From this we can interpret that 50% of the employees have 5-10 years of experience which
shows that organisation has good qualified employees which will help the organisation to
increase its productivity.

FIGURE 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

32

5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS

TABLE 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS
Educational Qualification
UG degree
PG degree
Engineering
Other ITI
Total

No. Of Respondents
49
19
04
28
100

Percentage (%)
49
19
04
28
100%

Sources: Primary Data

FINDINGS:
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.

FIGURE 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS

5.5 FREQUENCY OF PERFORMANCE APPRAISAL

33

TABLE 5.5 FREQUENCY OF PERFORMANCE APPRAISAL

Performance Appraisal
Once a Year
Twice a Year
No Specific Time
Total
Sources: Primary Data

No. of respondents
100
100

Percentage (%)
100
100

FINDINGS:
From the above table, it can be inferred that 100% of the respondents agree that performance
appraisal is conducting once a year.
INTERPRETATIONS:
As this is a huge organisation once in a year appraisal is good. The main purpose of
appraisals is to help managers effectively staff companies and use human resources, and,
ultimately, to improve productivity. When conducted properly, appraisals serve that purpose
by: (1) showing employees how to improve their performance, (2) setting goals for
employees, and (3) helping managers to assess subordinates' effectiveness and take actions
related to hiring, promotions, demotions, training, compensation, job design, transfers, and
terminations.

34

5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL

TABLE 5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL

Performance Appraisal
To

No. of respondents

Percentage (%)

100
100

100
100

Conducting
identity
motivating

methods
To decide monetary benefits
Identifying barriers of
performance
All of the above
Total
Sources: Primary Data
FINDINGS:

From the above table, it can be inferred that 100% of the respondent's agree that the reason
for conducting performance appraisal includes all the factors such as to identity motivating
methods, to decide monetary benefits and identity barriers for performance.
INTERPRETATIONS:
From this we can interpret that the organisation has proper reasons for which they conduct
performance appraisal. This helps the organisation to motivate employees, provide rewards
and helps them to improve their performance.

35

5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED

TABLE 5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED

When Performance

No. of respondents

Percentage (%)

37

18.5

13
50

13
50

Appraisal conducted
During working hours
During non-working hours
Total
Sources: Primary Data
FINDINGS:

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.

INTERPRETATIONS:
From this we can interpret that the appraiser will be able to better assess the employee as he
is actually working and will improve the effectiveness of the appraisal. However it may aslo
be negative as the employee will get conscious about it and may fake to work effectively at
that point.

36

FIGURE 5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED

5.8 WHO CONDUCT PERFORMANCE APPRAISAL

TABLE 5.8 WHO CONDUCT PERFORMANCE APPRAISAL

Who

Conducts

Performance appraisal
Superior
Peers
Everyone
Outsider
Total

No. Of Respondents
100
100

Percentage (%)
100
100

Sources: Primary Data

37

FINDINGS:
From the above table, it can be inferred that for 100% of the respondents performance
appraisal is conducted by outsiders.
INTERPRETATIONS:
Outsider doing performance appraisal has its pros and cons. Pros are that it will reduce the
favouritism in the organisation and the appraisal system will be free of biasness where the
cons are that the outsider may not be aware about the job duties so he may not provide
effective appraisal.

5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSED

TABLE 5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSED

Informed reason for
Performance appraisal
conducting
Always
Sometimes
Never
Total
Sources: Primary Data

No. Of Respondents
20
77
03
100

Percentage (%)
20
77
03
100

38

FINDINGS:
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 respondent's feel it is discussed
always and 3% of respondents say reason is never discussed.
INTERPRETATIONS:
The reason for performance appraisal must always be communicated with the employees.
This will improve the effectiveness of the performance appraisal and employees will be more
involved.

FIGURE 5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSED

5.10 EMPLOYEE PERFORMANCES DISCUSSED

TABLE 5.10 EMPLOYEE PERFORMANCES DISCUSSED

Meetings of Employee

No. Of Respondents

performance
39

Percentage (%)

Nil

Once

100

100

Twice
Thrice

Total
Sources: Primary Data

100

100%

FINDINGS:
From the above table, it can be inferred that for 100% of the respondents meeting on
performance is conducting once a year.
INTERPRETATIONS:
Employees must always be told about their performance at a regular interval. However in this
organisation they only are told about their performance once in a year. If employees are
regularly told about their performance they are more satisfied with the organisation.

5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH

ORGANIZATIONAL GOALS
TABLE 5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH
ORGANIZATIONAL GOALS
Goals
To a high extent
To some extent
To a low extent
Total
Sources: Primary Data

No. Of Respondents
12
69
19
100

40

Percentage (%)
12
69
19
100

FINDINGS:
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 and12% feel
to a high extent it relates.

INTERPRETATIONS:
Employees are always told by the superiors that they must perform their work according to
the organisational goals. Therefore the performance appraisal must also be in line with the
organisational goals.

FIGURE 5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH

ORGANIZATIONAL GOALS

5.12 1NVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

TABLE 5.12 INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM

Opinion

No. of

Always
Sometimes

Respondents
41

Percentage (%)
-

Never
Total
Sources: Primary Data

100
100

100
100

FINDINGS:
From the above table, it can be inferred that 100% of the respondents say they are never
involved in designing the appraisal system.
INTERPRETATIONS:
Employees need to be actively engaged in the process. This is important. In many, if not
most companies, performance management is something that managers do and employees
receive. That tends to lead to employees being disengaged from the process, and even
cynical about it. For performance management to be truly effective, we need to change that
paradigm.

5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB

TABLE 5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB

S. No
1
2
3
4
5

Relevance
Highly relevant
Relevant
No idea
Irrelevant
Highly irrelevant

Total
Sources: Primary Data

No. Of Respondents

Percentage (%)

87
13
-

87
13
-

100

100

42

FINDINGS:
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.
INTERPRETATIONS:
Performance appraisal is very vital for any organisation as it forms basis for promotion,
salary increments, rewards etc. this enables the organisation to give performance based
incentives and also will reduce biasness in the organisation.

FIGURE 5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE

JOB

43

5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS

TABLE 5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS

Opinion and
Suggestions
Mostly
Rarely
Never
Total
Sources: Primary Data

No. of Respondents
100
100

Percentage (%)
100
100

FINDINGS:
From the above table, it can be inferred that 100% of the respondents mostly share their
opinion and suggestions to their managers.
INTERPRETATIONS:
This shows that managers are very friendly with the employees and therefore the employees
share their suggestions and opinions which makes this organisation very special to work for.
In any organisation where employees share a good bind with superiors is always a profit
making organisation.

5.15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM

TABLE 5.15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM
Forms
Yes
No
Total
Sources: Primary Data

No. of respondents
100
100

Percentage
100
100%

44

FINDINGS:
From the above table, it can be inferred that 100% of the respondents are given training to fill
the appraisal form.
INTERPRETATIONS:
It is always important to give training to the employees to fill the appraisal form as they are
not aware on how to fill it. This will increase the accuracy of the appraisal and will provide
accurate results on help in taking decisions.

5.16 APPRAISER'S AWARENESS ON EMPLOYEE JOB RESPONSIBLITIES

AND DUTIES

TABLE 5.16 APPRAISER'S AWARENESS ON EMPLOYEE JOB

RESPONSIBLITIES AND DUTIES
Aware

No. of respondents

Percentage (%)

Completely Aware
Aware to an extent
Not Aware
Total
Sources: Primary Data

100
100

100
100%

FINDINGS:
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.
INTERPRETATIONS:
This is a very negative loophole for the organisation as they are not aware about the job
responsibilities and duties. Then on what basis are they appraising the employees. This will
make the performance appraisal null.

5.17 FEEDBACKS PROVIDED FOR PERFORMANCE IMPROVEMENT

45

TABLE 5.17 FEEDBACKS PROVIDED FOR PERFORMANCE

IMPROVEMENT
Aware

No. of respondents

Percentage (%)

Frequently
Occasionally
Never
Total
Sources: Primary Data

89
11
100

89
11
100%

FINDINGS:
From the above table, it can be inferred that 11% of the respondents feel that feedback is
provided occasionally whereas 89% feel that feedback is provided frequently.
INTERPRETATIONS:
In performance appraisal giving feedback to the employees is very important as that feedback
will help the employees to improve his skills wherever he lacks. Feedback also motivates the
employees as he starts feeling loyal for this organisation.

FIGURE 5.17 FEEDBACKS PROVIDED FOR PERFORMANCE

46

IMPROVEMENT

5.18 INVOLVEMENT OF RATER

TABLE 5.18 INVOLVEMENT OF RATER
Involvement
Highly involved
Less involved
Not involved
Total
Sources: Primary Data

No. of respondents
34
40
26
100

Percentage (%)
34
40
26
100%

FINDINGS:
From the above table, it can be inferred that 40% of the respondents feel the rater is less
involved, 34% of the respondents feel they are highly involved and 26% of the respondents
are not involved.
INTERPRETATIONS:

5.19 PROPER EXECUTION OF PERFORMANCE APPRAISAL

TABLE 5.19 PROPER EXECUTION OF PERFORMANCE APPRAISAL

Properly executed in your
organization
Yes
No
Total
Sources: Primary Data

No. Of Respondents
78
22
100

FINDINGS:

47

Percentage (%)
78
22
100

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.
INTERPRETATIONS:
Properly executed performance appraisal is always beneficial as the employees are satisfies
that there is no bias in the appraisal system and the organisation can also analyse properly.

FIGURE 5.19 PROPER EXECUTION OF PERFORMANCE APPRAISAL

5.20 UPDATING OF PERFORMANCE APPRAISAL
TABLE 5.20 UPDATING OF PERFORMANCE APPRAISAL

Reviewed and updated

Frequently
Occasionally
Never
Total

No. Of Respondents
46
54
-

Percentage (%)
46
54
100

100

Sources: Primary Data

48

FINDINGS:
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.

INTERPRETATIONS:
From this we can interpret that the organisation does not change its appraisal system and
follows the same for many years. However if the organisation updates its appraisal system
then it may have a drastic impact on the turnover rate which might be positive for the
organisation.

FIGURE 5.20 UPDATING OF PERFORMANCE APPRAISAL

49

CHAPTER 6: RECOMMNEDATIONS AND

CONCLUSION

50

6. RECOMMENDATIONS AND CONCLUSION

RECOMMENDATIONS

1. Performance appraisal could be conducted by a person inside the organization and

one who is familiar with the employees.
2. Objective of conducting the performance appraisal could be discussed and doubts
can be clarified.
3. Performance appraisal could be updated regularly to match individual and
organizational goals.
4. Suggestion could be obtained from employees regarding framing the performance
appraisal system.
5. 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.
6. The appraiser must be familiarized with the employee's job responsibilities and
duties before conducting performance appraisal.
7. Feedback on performance could be discussed through formal or informal
meetings.
8. This may enhance the involvement and performance of employees.
9. Appropriate and experienced appraiser can be appointed for effective performance
appraisal results.
10. Performance appraisal can developed in such away to identify the hidden talent
and skills of employees.
11. Employees having low performance could be called individually, encouraged and
monitored closely to make improvements.
12. Appraisal feedback is very important in any performance appraisal program.
Could be carefully communicated by making high performers increase their target
and low performers to build up their confidence.

51

52

CONCLUSION

Performance appraisal may be understood as the assessment of an individual's 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, cooperation, judgment, versatility, health and the like. It also helps in developing strength and
rectifies weakness of the employees.

Kataria Group have been conducting performance appraisal for the past four years. From the
study it has been identified 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.

Kataria Group has been running successfully for past 5years 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.

53

BIBLOGRAPHY
BOOKS
Human Resource Management. By S. Seetharaman & B.Venkateswara Prasad, Scitech
Publication, 2007.
Kothari, C.R., Research Methodology- Methods & Techniques, New Delhi, New Age
international(P)Ltd.,Publishers,SecondEdition,2004.
Performance Management, Concepts, Practices and Strategies for Organisation success
by S.K.Bhatia, Deep & Deep Publications Pvt. Ltd, 2008.
Statistical Methods for Management, By P.N.Arora & S.Arora New Delhi, Sultan Chand
& Sons Publishers, 2005.

54

CHAPTER 8: APPENDIX

55

7 .APPENDIX

1. How many times performance appraisal is

conducted in your organization?
a) Once a year

b) Twice a year

c) No specific time

2. What is the reason for conducting performance appraisal in your organization?

a) To identify motivating methods

b) To decide monetary benefits

c) Identifying barriers of performance

d) All of the above

3. When is the performance appraisal conducted?

a) During working hours

b) during non-working hours

4. Who conducts performance appraisal?

a) Superior

b) Peers

c) Everyone

d) Outsider

5. Are you informed the reason for conducting performance appraisal programs?
a) Always

b) Sometimes

c) Never

6. How many meetings are scheduled in a year to discuss employee performance?

a) Nil

b) Once

c) Twice

d) Thrice

7. Does the performance appraisal programs relate to organizational goals?

56

a) To a high extent

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

9. Is the performance appraisal developed in relevance to employee job?

a) Highly relevant

b) relevant

c) no idea d) Irrelevant

e) highly irrelevant

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 to fill up performance appraisal forms?

a) Yes

b) No

12. Is the appraiser aware of your job responsibilities and duties?

a) Completely aware

b) Aware to an extent

c) Not aware

13.0ther than performance appraisal does your superior provide you within formal feedbacks
for performance improvement?
a) Frequently

b) Occasionally

c) never

14. Are the raters involved while appraising employees?

a) Highly involved

b) Less involved

c) not involved

15. Do you feel that performance appraisal is important in an organization?

57

a) Highly important b) less important

c) not important d) No idea

16. Is performance appraisal properly executed in your organization?

a) Yes

b) No

17. Does top management support and encourage performance appraisal?

a) Highly supportive

b) Less supportive

c) Not supportive

18. Is the performance appraisal reviewed and updated now and then?
a) Frequently

b) Occasionally

c) Never

19. Does performance appraisal identify employee potential for advancement?

a) Highly effectively b) Effectively c) Neutral d) Ineffectively e) Highly ineffectively
20. State your satisfaction through the performance appraisal program at the organization?
a) Unsatisfactory b) Needs Improvement c) Meets Expectation d) Outstanding

58