Chapter - 1 Human Resource Management: Perormance Appraisal

PERORMANCE APPRAISAL
CHAPTER 1
INTRODUCTION
HUMAN RESOURCE MANAGEMENT
Any organization needs for its survival and growth, Money, material,
machinery and men (the 4 ms). The success or failure of any organization
depends on the effective combination of these factors money, material, and
machinery will yield nothing if the men i.e. the work force (HR) factor is
not up to the mark.
The labor input is vital to the success of any organization without effective
employee, the organization may not produce its goods and services
effectively and the very survival itself is a big question. The organization
should care about human resources.
HRM address this concern through managing people at work. It is mainly

concerned with employees both as on individual as well as a group. The
aims are to get better result with their combination or active enrolment in the
functioning of organization. HRM should aid and direct work force in
maximizing their personal contribution.
HRM not only identifies the potentialities of the employees but also nurtures
develop and make us of the same to the maximum extent .1
THEORETICAL OVERVIEW
Organization today knows that outstanding business performance raises the
best possible performance by every team and every employee. How to
ascertain weather an employee has show his or her performance on a give
job, the answer is performance appraisal. Individuals teams and
organization will all depend on receive feedback to improve the way they
perform.
Performance appraisal as a concept is not unique to the modern industrial
estate rather it is characteristic, common to all mean in which individual
match others appraise their behavior in accordance with that the individual
consider good or bad not only do we judge or rate others but also we are
aware that others are constantly evaluating us.
Performance appraisal is one of the extent methods, which includes
comprehensive detailed information on the latest state of art performance,
appraisal methods and techniques it bridges the gap b/w the theory practice
with truly useful information about designing and implementing appraisal

system.
Once the employee has been selected, trained and motivated, he is then
appraised for his performance appraisal is the step where the managements
find out how effective it has been at hiring and placing employees. If any
problem is identified steps are taken to communicate with the employee and
to remedy them P.A is a process of evaluating employees performance of a
job in terms of requirements .2
HEYEL observed it is a process of evaluating the performance and

qualification of employees in terms of the requirement of the job for which
is employed for the purpose of administration including placement.
Selection for promotion providing financial rewards and other factors
affecting an members equally.
PERFORMANCE APPRAISAL
INTRODUCTION
One phase of the annual performance management cycle is performance
appraisal, the process of reviewing employee performance, setting new
Performance objectives, documenting the review, and delivering the review
verbally in a face-to-face meeting. Performance appraisal has been around
For hundreds of years, as it is only human nature to evaluate fellow
Colleagues.
Performance appraisals are also effective and useful during the beginning
Period of employment at set intervals or when an employee changes job
duties. Suggested time periods include three and six month appraisals
During This time the employee is learning the expectations of the job and
the Company.
OBJECTIVES;
To study the employee appraisal procedure in Bharath Industries
Impact of performance appraisal in employees Motivation, promotion

and productivity.
To known the degree of fairness or impartiality in performance for
promotions.
To study whether the employees are satisfied or dissatisfied with the
performance appraisal procedure in the organization.
To study whether the effective performance appraisal procedure is
creating the healthy working condition in the organization.
To study whether the salary resize are directly proportionate to
performance of the employees in the organization.
DEFINATIONS
Different theories, scholars, authors and procaines have defined P.A. in
different ways:
Performance appraisal is defined as a systematic, periodic evaluation of the

worth of an individual to an organization usually made by a superior or
someone, in a position to observe his performance.
MC GEGOR says Formal appraisal mans are designed to meet their three
needs One of the organization and other two of the individual via :-
They provide systematic judgment to back up salary increase,

transfers demotions and terminations.
They are means of telling subordinates how he is doing to suggesting
needed changes. In his behavior, attitudes, skills or job knowledge
they let him know where he stands with the boss.
The superior uses them as a base for coaching and counseling the
individual.
A formal definition is it is the systematic evolution of an individual with

respect to his or her performance on the job and his or her potential for
development.
A more comprehensive definition is P.A. is a formal structure system of

measuring and evaluating an employees job. Related behavior and
outcomes to discover how and why the employees is presently performing
on the job and how the employee can perform more effectively in future so
that the employee organization and society all benefit.
OBJECTIVES OF PERFORMANCE APPRAISAL:

The main purpose of employee assessment is as follows:
1. . To effect promotion based on competence and performance.
2. To confirm the services of probationary employees upon they are
completing the probationary period satisfactory.
3. To Asses the training and development needs of employees
4. To decide upon a way raise where (as in UN organized sector) many
scale has not been fixed.
5. To let the employees know where they stand in so far as their
performance is concerned to assist them with constructive criticism
and guidance for their purposes of their development.
6. To improve communication performance appraisal provides a format
for dialogue b/w the superior and the sub ordinate and improves
understanding of personal goals and concerns.
7. Finally, performance appraisal can be used to determine whether HR

programmers such as selection, training and transfers been effective or
not.
Performance review program is an important management tool. It is

appropriate to say that performance review brings the selection program to
an end. The result of this program reveal whether the individual are
performing according to the expectations many organizations have began to
place greater emphasis on their performance appraisal programs. The
performance review program is designed to help to accomplish this end by
having each employee become engaged in a continuous using program of
self development that has been mutually conceived accepted by both the
employee and superior. The benefits area as follows: The process of listing man job objective by the employee and their
review by his immediate superior dent to eliminate any miss
understanding as to the job objectives.
The performance review raises each superior to consider at regular

intervals the relatives strengths and weakness of each subordinate and
to reassure the performance against assigned responsibilities.
It also makes each employee to know where he stands. The reviews

are important concerning opportunities through which the superior can
help to improve sub-ordinate performance or prepare for increased
responsibilities.
Performance review helps in determining development and training
needs of personnel.
It also fasters good personal relations because misunderstandings are
eliminated during the post appraisal interviews.
Performance reviews to provide objective basis for discussing salaries
and wages.
10
By appraising the performance of new employees various recruitment

and selection methods techniques can be validated.
The sub ordinate is consulted in setting up of standard performance
and he given opportunity to express his opinion during the post
appraisal interview. This will give him a sense of participation and
probably increase his job satisfaction.
11
APPROCHES TO P.A.
Generally speaking three approaches are used in making P.A.
A casual unsystematic and often hazard appraisal: This method was
commonly used in the past, but now it has given more to more formal
method. The main basis being seniority or quantitative measures of quality
or quantity of output for rank and fine personal.
Traditional and highly systematic measured of

Employee characteristics and employee contribution or both is evaluates all
the performances in the same manner utilizing the same approach so that
ratings obtained from different persons are comparable.
12
The behavior approach emphasizing mutual goal settings

According to MC GREGO, in the traditional approach the supervisor is
placed in the position of playing gods The judges and at time criticizes the
personal worth of his men therefore emphasis has been laid upon providing
mutual goal setting and appraisal of progress by both the appraiser and
praise. This approach is based on the behavior value of fundamental trust in
the goodness, capability and responsibility of human beings.
The primary approach of P.A. is to ensure communication between manager

and employee in order to plan, review, and improve performance in the
current position. People will be productive and develop more quickly if they
know clearly:
What is expected to them?

How are they doing against expectations?
How to get help to do a good job?
13
PAST ORIENTED METHOD

Rating scale
The typical rating scale system consists of several numerical scales. Each
representing a job related performance Criterion. Each scale ranges from the
excellent to the poor. The rather checks the appropriate performance level on
each criterion, then computer the employees total numerical score.
Rating scale offers the advantages of adaptability, relatively easy use and
low cost.
Checklist method
Under this method the rather does not evaluate employee performance but he
only does the reporting based on which the MR department does the final
assessment. The reporting by the rater is indication of positive or negative
points with respect to the employee behavior of the job.
14
METHODS OF APPRAISAL
They can be classified into 2 sections
Past oriented methods
Further oriented methods
Each group has several techniques as shown below
PAST ORIENTED METHOD FUTURE ORIENTED METHOD
Rating scales
* Management by objectives
(MBO)
Checklist method
Forced choice method
Critical incidents methods
Behaviorally Anchored rating scales * Assessment Centers
Performance tests and observations
Cost accounting methods
Forced choice description method
15
In this, the rater is given a series of statements of an employee. These

statements are arranged in block of two or more and the rather indicates
which statement is more or less descriptive of the employees.
This method is know as forced choice method because the raters are forced
to select statements, which are ready made. The advantage of this method is
the absence of personal bios in ratings. The disadvantage is that the

statement may not be properly framed.
Critical incidents method

This method has generated a lot of interest these days. The approach focuses
on certain critical behavior of an employee that makes all the difference b/w
effective and no effective performance of the job. The superiors record such
incidents as and when they occur. One of the advantages of this method is
that evaluation is based on actual job behavior.
Behavior anchored rating scales (BARS)

BARS are rating scales whose scales points are determined by statement of
effective and ineffective behavior. They are said to be behaviorally anchored
16
in that the scales represent a range of descriptive statements of behavior

varying from the least to the most effective a rater indicates which behavior
on each scale best describes an employees performance.
Performance test and observations

The employees assessments are based upon a test of knowledge or skills.
The test must be reliable and validates to be useful.
Cost accounting method

This method evaluates performance from the monitory returns. The
employee yield to his/her organization a relationship is established between
the cost included in keeping the employee and the benefit the organization
derives from his/her performance is then evaluated based on the established
relationship.
17
FUTURE ORIENTED APPRAISALS

Management by objectives (MBO)
This is a process whereby the superior and sub ordinate managers of an
organization jointly define or identify its common goals, define each
individuals major areas of responsibility in teams of results expected of him
use these measures as guidelines for operating the unit and assigning the
contribution of its members the steps involved are.
Setting of objectives consistence with the co Objectives time duration
allowed and basis of judgment.
Performance review at the end of the period
Set further objectives for the future.
Psychological appraisals
When psychologists are used for evaluations they assess an individuals
future potential and not past performance. The appraisal normally consists of
in depth intervals. Psychological tests and discussions with the supervisors
and review of other evaluations.
18
The psychologist then writes an evaluation of the employees intellectual,

emotions motivational and other work related characteristics that suggest
individual potential and may predict future performance.
Assessment centers:
It is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. The
principal idea is to evaluate managers over a period of time by observing
their behavior across a series of selected exercises or work examples. A will
conducted assessment centre can achieve better forecast of future
performance and progress than other method of appraisal.
19
FEATURES OF P.A.
The main features are
1. It provides a systematic judgment on salary increases, confirmation,
promotion, transfer, demotions and terminations.
2. It is used as scientific techniques for coaching and consulting of an
employee by his supervisor / officer.
3. It is an attempt to identify the efficiencies deficiencies of an
employee.
4. It provides an adequate feed back to each employee for his or her
performance.
5. It serves as basis for improving or changing an employees behavior
towards some more effective working habits.
6. It rates the job worker not the job.
7. It helps in identifying those average employees, who need special care
observation, control, etc.
20
PURPOSE OF P.A.
1. To create and maintain a satisfactory level of performance.

2. To contribute the entire growth and development through training.
3. To help the superiors to have a proper understanding about their
subordinate.
4. To guide the job changes with the help to continuous ranking.
5. To facilitate for testing and validating selected tests.
6. To facilitate fair and equitable compensation based a performance.
7. To provide information for making decision regarding lay off etc.
21
CHAPTER-2
RESEARCH DESIGN
The task of defining the research problem is the preparation of the research
Product, popularly known as Research Designe design regarding what,
when by means, how much etc.concening an enquiry of the research study
constitute a research desgine
a research design is arrangement of conductions of collection and analysis of
data in the manner that aims to combine relevance to the research purpose
with economy. It is a structure nothing, which research, is conducted.
22
TITLE OF THE PROJECT AND STATEMENT OF THE PROBLEM
The problem selected for the research is to make in in-depth study of the
Prevalent performance appraisal system at BHARATH INDUSTRIES.
Performance appraisal and practice have been continuously done based on
Innovation, research and experiment.
Hence research has made effort to study its effectiveness of the system and
The survey was aimed at knowing how the employee (both appraise and
appraiser) fees above the system their suggestions, if any for making the
System effective. The problem was specified. Through discussion with
Employees and supervision.
23
TOOLS FOR DATA COLLECTION:The task of data collection beings after a research problem has
Been identified while deciding about the method of data collection to be
Used for the study. The researcher should keep in mind the two types of data
Via;
1 primary data
2secoundary data
For this research purpose the primary data was obtained by means of a
Common structured question are that was given to employees. The
Questionnaire was carefully planned to cover various aspects of the
Appraisal system.
In deserving the questions. Care was taken to avoid bias the secondary data
Was collected through magazines, books, newsletters etc
24
PLAN OF THE STUDY

After preparing the questionnaire, the same was distributed to employees
Who are randomly selected from each group
The employees were very busy in there activities. In spite of this, the
Research met all respondent and explained about the survey and got his
Or her options through questionnaire.
25
OBJECTIVE OF STUDY
The study has been undertaken to fulfill as far as possible the
Following objectives:
To know the accusary of the present system in evaluating poor
Performance of the employees in the organization
To know whether the present system of performing improve the
Individual performance in organization
To know the periodicity of the appraisal of performance of the
Employees in the organization
To know whether the present system of performance appraisal is linked
With rewards, promotions, transfers etc, with the employees
To know whether the system of performance appraisal is linked with
Rewards, promotions
To know the system of performance appraisal system followed in the
Organization is linked with following aspects
26
Additional work, responsibility or job rotation

Individual capacity and basic level of responsibility
Individual potential for growth.
To know whether the predetermined goals are realistic and attainable
by employees
To know the criteria of performance appraisal, promotion, and
incentives based on the performance of the executive.
To know whether the employees are satisfied with present system of
performance appraisal
SAMPLE SIZE
The workmen sample taken for analysis consists of 30 individuals.
The individual represent employees working in different departments of the
Co; this was done to avoid bios and get a clear understanding about he
Approach the employees.
27
LIMINATIONS OF STUDY
o The study was conducted under limited period
o The assumption are based on the answers given by limited(30)
Employees
o Only employees with the experience of being appraised were taken
Into sample leaving out others
28
CHAPTER-4
DATA ANALYLSIS AND INTERPERATION
1. TABLE SHOWIGN THE YEAR OF SERVICE IN BHARATH

INDUSTRIES
YEAR OF SERVICE
1-5
5-10
10-15
NO. OF RESPONDENTS
40
7
3
PERCENTAGE
80
14
6
29
TABLE SHOWING THE YEAR OF SERVICE IN BHARATH

INDUSTRIES
30
2. TABLE SHOWIGN THE AGE OF THE EMPLOYEE
AGE GROUP
21-30
30-35
35-40
40-45
45-50
50 & ABOVE
NO. OF RESPONDENTS
35
6
3
4
1
1
PERCENTAGE
70
12
6
8
2
2
TABLE SHOWIGN THE AGE OF THE EMPLOYEE
31
INFERENCE: - From the above data it is clear that most of the employees
that is 80% of the employees are completed their 1 to 3 years of service in

the organization. Rest of the 14% completed 5 to 10 years, 6% of them have
competed 10 to 15 years. It is clear that most of the employees are having
between 1 to 5 years of work experience in the organization.
3. TABLE SHOWIGN THE PERFORMANCE APPRAISAL

CONDUCTED IN BHARATH INDUSTRIES.
32
YEAR OF SERVICE
Less than 5
5 to 10
10 to 15
15 and above
RESPONDENTS
24
15
8
3
PERCENTAGE
48
30
16
6
TABLE SHOWIGN THE PERFORMANCE APPRAISAL

CONDUCTED IN BHARATH INDUSTRIES.
33
INFERENCE: - From the above data it is clear that 48% of the people are
assessed less than 5 times the current appraisal system in their service.
Remaining 30%, 16%, 6%, of the employees were assessed 5-10, 10-15, 15
and above times respectively.
4. TABLE SHOWIGN RATING OF PERFORMANCE APPRAISAL

IN THE COMPANY BY THE EMPLOYEES.
34
RATINGS
Very poor
Poor
Satisfactory
Good
Excellent
NO. OF RESPONDENTS
6
7
14
15
8
PERCENTAGE
12
14
28
30
16
TABLE SHOWIGN RATING OF PERFORMANCE APPRAISAL IN

THE COMPANY BY THE EMPLOYEES.
35
INFERENCE: - Out of 50 people 6 people rated performance appraisal s very
poor, that constitute 12% to 7 people rated as poor that is 14%, 14

employees has rated as satisfied that is 28%, 15 and 8 employees rated it has
good and excellent that is 32%, 16%. From this it is clear that more than
fifty percent of the employees are satisfied with the performance appraisal
procedure. So the satisfied employees can reach the organizational goal and
work very efficiently.
5. TABLE SHOWIGN THE DEGREE OF FAIRNES/

IMPARTIALITY.
36
RATINGS
Very poor
Poor
Satisfactory
Good
Excellent
NO. OF RESPONDENTS
5
5
13
12
15
PERCENTAGE
10
10
26
24
30
TABLE SHOWIGN THE DEGREE OF FAIRNES/ IMPARTIALITY.
37
INFERENCE: - From the table it is clear that 30% of the people respondent
the fairness in performance for promotions is excellent and 24% says it is

good and 26% of employees say it is satisfactory and 10% of employees say
it is poor and another 10% says it is very poor. Where there is no much
partiality in performance appraisal in the organization, because almost they
have rated satisfactory, good and excellent.
6. TABLE SHOWIGN THE CAPABILITY OF PERFORMANCE

APPRAISER.
38
RATINGS
Very poor
Poor
Satisfactory
Good
Excellent
NO. OF RESPONDENTS
5
6
18
14
7
PERCENTAGE
10
12
36
28
14
TABLE SHOWIGN THE CAPABILITY OF PERFORMANCE

APPRAISER.
39
7. TABLE SHOWIGN THE FEED BACK OF THE RATIGN
RATINGS
NO. OF RESPONDENTS
PERCENTAGE
40
Always
Occasionally
Rarely
16
21
13
32
42
26
TABLE SHOWIGN THE FEED BACK OF THE RATIGN
41
INFERENCE: - It w sound that 42% of the employees says that the feedback
of the rating is done occasionally. 32% always and 26% says rarely. It is
clear that the feedback of the employees is only done occasionally. Feed
back is more important in performance appraisal it should be improved by
tang the views of the employees.
8. TABLE SHOWIGN THE INCENTIVE PROPORTIONATE TO

THE PERFORMANCE APPRAISAL
42
BASIS
Yes
No
NO. OF RESPONDENTS
27
23
PERCENTAGE
54
46
TABLE SHOWIGN THE INCENTIVE PROPORTIONATE TO THE

43
INFERENCE: - From the above data it is clear that out of 50 respondents 27
employees responded positively and 23 responded negatively. It is clear that

the incentives are proportionate to the performance in the performance in the
organization when it is proportionate the employee will perform better in his
work.
9. TABLE SHOWIGN THE CONDUCTING OF PERFORMANCE

APPRAISAL
RATERS
NO. OF RESPONDENTS
PERCENTAGE
44
Supervisors
Department Heads
Self appraisal
7
17
26
14
34
52
CHART SHOWIGN THE CONDUCTING OF PERFORMANCE

APPRAISAL
45
INFERENCE: - From the above data it is clear that more than 52% of the
employees are assessed by self-appraisal, it is clear to them, they are lagging

behind and where they have to in prove by adopting this procedure.
10. TABLE SHOWIGN THE TRAINING AFTER APPRAISAL
BASIS
NO. OF RESPONDENTS
PERCENTAGE
46
Yes
No
Occasionally
20
25
5
40
50
10
CHART SHOWIGN THE TRAINIGN AGTER APPRAISAL
47
INFERENCE: - The analysis of the data shows that majority of the employees
that is 50% says no, and 40% and 10% says yes and occasionally. It is clear
that most of the employees dont attend the training after the appraisal in the
organization. It is very necessary to attend the training program in the
organization.
11. TABLE SHOWIGN THE EFFECTIVENCESS IN IDENTIFIYIGN

THE TRAINING NEEDS
48
BASIS
Yes
No
NO. OF RESPONDENTS
20
30
PERCENTAGE
40
60
CHART SHOWIGN THE EFFECTIVENESS IN IDENTIFYING THE

TRAINING NEEDS
49
EFFECTIVENESS OF IDENTIFYING
TRAINING NEEDS
40%
Yes
60%
No
INFERENCE: - Out of 50 employees 20 employees believe in there is an
identification of the needs of the individuals in performance appraisal and

the 30 employees go for no. It is clear that the effectiveness of performance
appraisal in identifying training needs of an individual is not good. So they
have given more importance to the training needs of an individual by doing
it more effectively.
12. TABLE SHOWIGN THE CONTRIBUTION OF THE EMPLOYEE

TO ACCOMPLISH THE ORGANIZATIONAL GOALS
50
BASIS
Yes
No
NO. OF RESPONDENTS
36
14
PERCENTAGE
72
28
CHART SHOWIGN THE CONTRIBUTION OF THE EMPLOYEES

TO ACCOMPLISH THE ORGANIZATIONAL GOALS
51
CONTRIBUTION TO ACCOMPLISH
ORGANIZATIONAL GOAL
28%
Yes
72%
No
INFERENCE: - It is clear that 72% of employees say that performance
appraisal is used in assessing the contribution an individual in accomplishing

the organizational goals and the remaining 28% says no. From this it is clear
that most of the employees in the organization work for accomplishing the
ultimate objective of organization.
13. TABLE SHOWIGN THE VIEW CONSIDERATION IN

52
BASIS
Yes
No
NO. OF RESPONDENTS
43
7
PERCENTAGE
86
14
THE TABLE SHOWIGN THE VIEW CONTRIBUTION IN

53
VIEW CONSIDERATION IN
14%
Yes
No
86%
INFERENCE: - Majority of the employees says the view of the employees is
taken into consideration that is 86% and the remaining 14% of the employee
says it is not taken into consideration. It is clear that all most all the
employees in the organization are satisfied with performance appraisal
procedure in the satisfied employees are the assets to the company.
PRESENTATION OF HYPOTHESIS TESTING
54
1. RATINGS OF PERFORANCE APPRAISAL BY THE

EMLOYEE IN THE ORGANIZATION
Ratings
Very poor
Poor
Satisfactory
Good
Excellent
Number of respondents
6
7
14
15
8
Percentages
12
14
28
30
16
STEP-2
Let the null Hypothesis Ho: the ratings do not differ significantly
Against alternative hypothesis H1: the ratings differ significantly
STEP-2 under Ho.X2-test static is

X2 =(o-E)2/E
CALCULATION
55
O
6
7
14
15
18
Total 50
E
10
10
10
10
10
50
(O-E)2/E
1.6
1.6
1.6
2.5
0.4
2
X =7.00
STEP-3
Here df is 5-1 =4,
The test is one tail test, for 4 df, at 5% level significance the critical
value
K=9.49(X2 table)
56
STEP-4
Decision making: Here calculated X2 =7.00 < k 0.05=9.49 Therefore
Ho is accepted at 5% level of significance
STEP-5
Since H1 is rejected accept Ho at 5% level of significance. That is the
ratings to not differ significantly
INFERENCE: From the above hypothesis testing, it is clear that in the

organization the ratings do not differ significantly. The rating done by the
employees is almost same in the organization.
57
2. DEGERE OF FIRNESS/IMPARTIALITY IN PERFORMANCE

APPRAISAL FOR PROOTION
Ratings
Number of
Percentages
Very poor
Poor
Satisfactory
Good
Excellent
Respondents
5
5
13
12
15
10
10
26
24
30
STEP-1
Let the null hypothesis Ho: there is no partiality in appraisal
Against alternative Hypothesis H1: there is partiality in appraisal
STEP-2
Under Ho, X2 test statistic is
X2 = (O-E)2 /E
CALCULATION
O
(O-E)2/E
58
5
5
13
12
15
Total 50
10
10
10
10
10
50
2.5
2.5
0.9
0.4
2.5
2
X =8.8
STEP-3
Here, df is 5-1=4
The test is one tail test, for 4 df at 5% level of significance the critical
value
K=9.49(from X2 table)
STEP-4
Decision making: Here calculated X2 test=9.49<k0.05=8.8, therefore
Ho is accepted
STEP-5
Conclusion: Since H1 rejected accept H0 at5% level of significance.
That means no partiality in performance appraisal for promotion in the
organization.
59
INFERENCE; from the above Hypothesis, it is clear that in the organization

there is no partiality in performance appraisal for promotion. Almost all the
employees are happy with the performance appraisal procedure followed by
the company
60
CHAPTER-5
FINDINGS&CONCLUSION
FINDINGS
1. It was found that most of the employees are satisfied with the
performance appraisal method used by the organization.
2. It was found that there is recognition the top level management in
identifying the needs and requirements of the employees. Which
helps achieving individual as well as organizational goals?
3. When employee level of morale is high then the employees are
motivated towards the work and finds good working environment.
4. Organizational
goals should achieve the profit
and wealth
maximization.
5. Majority of the respondent agreed that impartiality in performance
appraisal for promotion is excellent.
6. The feedback for rating in performance appraisal was occasionally
conducted.
61
7. The monitory benefit was directly proportionate to performance

appraisal in the organization.
8. The organization was following very good time management.
9. The organization has very pleasant and peaceful working environment
in which employees will be motivated to work.
10. Most of the performance appraisal is conducted through selfappraisal.
11. Majority of the employees do not attend training programme after
appraisal.
12. Most of the employees agreed that the organization goal is achieved
through assessing the employees performance.
13. Majority of employees said that they dont involve in external
curricular activities.
14. In the appraisal methods, superior take most of the views of the
employees.
62
15. Most of the employees said that they are aware of productivity
scheme.
16. Employees agreed that performance appraisal is assessed based on
productivity.
17. The assessment of current performance appraisal system is conducted
once in a year that to less than 5 times in their service.
18. Employees are aware of performance appraisal methods that are
followed in the organization.
19. Employees are co-operative while giving the information in the
organization.
63
CONCLUSIONS
To start up any business everyone needs four Ms that is Men, Material,
Money, and Methods. Any organization survives only when they manage to
the maximum extent of these resources. Among these four Ms Men is
considered as the biggest asset for any organization, without which the rest
of four Ms cannot be managed and maintained properly. Thus in present
business environment men are considered very significant in all
organization, and we could see know the evaluation of managing men as
human resource management.
Performance appraisal is one of the important functions in HRM. It has to be

evaluated by the top management in every organization according to some
norms and which has got direct impact on the performance of employees in
any organization. Thus performance appraisal as to be conducted
appropriately, which in turn helps to achieve individual and organizational
goals as a whole.
64
To conclude the overall research Employee perception towards the

performance appraisal procedure at BHARATHINDUSTRIES. Most of the
employees are satisfied with present performance appraisal system, which is
existing at BHARATHINDUSTRIES. Majority of the employee felt that
partiality shouldnt be there in performance appraisal.
Performance appraisal is directly proportionate to the monetary

benefits in the organization and organization is having pleasant and peaceful
working environment in which employees are motivated to work.
Performance appraisal system is conducted once in a year at

BHARATHINDUSTRIES all most all the employees are satisfied with that.
The research clearly shows that performance appraisal followed by
BHARATHINDUSTRIES is accepted by all employees. So it creates an
environment to work better.
65
In the organization partiality is not there is performance appraisal. The

organization is having good relationship between the employer and
employee, which should be maintained for the better future.
In the organizational training programmes should be conducted

regularly with regard to enhance the knowledge in productivity of the
employee. During performance appraisal concerned authority as to take the
views of the employees for the betterment of the working condition.
Employees are the biggest assets of the organization so that an asset

has to be taken care and create a channel through which the organization
goals have to be met.
66
CHAPTER-6
RECOMMENDATION&SUGGESTION
SUGGESTIONS
One of the main purposes, of condition the survey about the performance
appraisal is to make them aware of the importance of performance appraisal.
It is always recommended that it is very important to keep the employee
environment good. Which helps in achieving organizational goals?
1. They should continue maintaining good relationship between

employer and employee.
2. Majority of the employees are not satisfied with the work of the
performance appraiser this has to be taken into consideration, since
the recognition of the performance of the employees depends on the
capability of the appraiser.
3. Performance appraisal system as to be upgraded and assessment as to
followed in such a way that should be beneficial to everybody.
67
4. Adopting an unbiased view of the individual like taking feedback

from all the employees
5. Taking self view of the employees in performance appraisal for the
betterment of the results in the organization.
6. Drawing a detailed plan containing various aspects of performance
appraisal and communicating the same to the employees for their self
understanding and improvements.
7. Communication of the feedback to the person whose performance has
been apprised both positive and negative aspect of his her behavior of
an employee.
8. Emphasis on the cultural aspects like games, presentations, Perform
decisions for better motivations and team spirit.
9. Publishing a list of ethical values and systems for enhancing spiritual
and moral values among the employees.
10. Most of employees did not attend the training programme, so training
should has to be provided.
68
11. Some employees are not satisfied with incentives, so it has to be

maintained.
12. Supervisor should also be involved in conducting performance
appraisal.
13. Employee should be motivated to take part in external curricular
activities.
14. 28% of respondents that they are not involved in contribution of
achieving Organizational goal, so it has to be improved.
15. Most of the employees specified that the performance appraisal
procedure followed by the company was satisfactory. That view point
should reach the excellent level.
16. The impartiality in performance for promotions is excellent, so it
should be maintained.
69
17. Laying down the career plan and goals to be accomplished for the
employees to motivate themselves for the better achievement of the
organization goals.
18. The company should focus on 3600 Performance Appraisal System to
enhance the effectiveness of Performance Appraisal
70
CHAPTER-7
ANNEXURE
QUESTIONNAIRE:-
1. Are you aware of the Performance Appraisal method adopted by your

organization?
Yes
No
2. Have you been assessed by the current performance appraisal system

if yes, how many time in your service?
Less than 5 times (
5 to 10 times
10 to 15 times
15 and above
3. How regularly do they conduct assessment?

Once in a year
Once in a 2 years (
Once in 3 years
71
Above 5 years
4. Are you aware of the parameters that are taken into consideration
while assessing performance?
Yes
No
5. Are you aware of the parameters that are taken consideration while
assessing performance?
Productivity
Behavior
Discipline
Efforts
Participation
Responsibility
Others
6. How would you rate the performance Appraisal procedure of your

Company on a scale of 1 to 5?
Very poor
Poor
)
72
Satisfactory
Good
Excellent
(
)
7. What is the degree of fairness / impartiality in performance for
promotion?
Very Poor
Poor
Satisfactory
Good
Excellent
8. What is your opinion on capability of performance appraiser?

Very Poor
Poor
Satisfactory
Good
Excellent
9. Is there any feedback of the rating?

Always
Occasionally
Rarely
10. Who conducts performance appraisal?

Superior (dept heads)
73
Self appraisal
Peer groups
3600 appraisal
Any others
11. Has the performance been effective in identifying the training needs
of individual?
Yes
No
12. Does your organization use this trail (performance Appraisal) in

assessing your exact contribution to the accomplishment of
organization task or goals?
Yes
No
13. Does it take your behavioral knowledge and external curricular

activities into consideration that helps in keeping the work
environment a pleasant one?
Yes
No
74
14. Did your superior take your views into consideration in the appraisal
methods?
Yes
No
15. Whether the effective performance appraisal procedure is creating the

healthy working in the organization?
Yes
No
16. Are you ever been trained like this in your service?
Yes
No
17. Are your satisfied or dissatisfied with the performance appraisal

procedure in the organization?
Yes
No
18. Have you attended training after appraisal?

Yes
No
75
Occasionally
19. Whether the salary revises or directly proportion to performance of

the employees in the organization?
Yes
No
76
BIBLIOGRAPHY
Performance Appraisal State Of Art In Practice by James.W.Smither
Human Resource Management third edition by Fisher Schoenfeldt

Shaw.
Human Resource & Personnel Management by K.Aswathappa
Project Report on Performance Appraisal procedure from Central

College Library, Vivekananda Degree College Library.
Company Profile & Brochure of BHARATH INDUSTRIES.
77

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PERORMANCE APPRAISAL

HRM address this concern through managing people at work. It is mainly

with truly useful information about designing and implementing appraisal

HEYEL observed it is a process of evaluating the performance and

To study the employee appraisal procedure in Bharath Industries

Impact of performance appraisal in employees Motivation, promotion

Performance appraisal is defined as a systematic, periodic evaluation of the

They provide systematic judgment to back up salary increase,

A formal definition is it is the systematic evolution of an individual with

A more comprehensive definition is P.A. is a formal structure system of

OBJECTIVES OF PERFORMANCE APPRAISAL:

7. Finally, performance appraisal can be used to determine whether HR

Performance review program is an important management tool. It is

The performance review raises each superior to consider at regular

It also makes each employee to know where he stands. The reviews

By appraising the performance of new employees various recruitment

Traditional and highly systematic measured of

The behavior approach emphasizing mutual goal settings

The primary approach of P.A. is to ensure communication between manager

What is expected to them?

PAST ORIENTED METHOD

Forced choice description method

In this, the rater is given a series of statements of an employee. These

the absence of personal bios in ratings. The disadvantage is that the

Critical incidents method

Behavior anchored rating scales (BARS)

in that the scales represent a range of descriptive statements of behavior

Performance test and observations

Cost accounting method

FUTURE ORIENTED APPRAISALS

The psychologist then writes an evaluation of the employees intellectual,

1. To create and maintain a satisfactory level of performance.

TITLE OF THE PROJECT AND STATEMENT OF THE PROBLEM

PLAN OF THE STUDY

Additional work, responsibility or job rotation

1. TABLE SHOWIGN THE YEAR OF SERVICE IN BHARATH

TABLE SHOWING THE YEAR OF SERVICE IN BHARATH

2. TABLE SHOWIGN THE AGE OF THE EMPLOYEE

TABLE SHOWIGN THE AGE OF THE EMPLOYEE

that is 80% of the employees are completed their 1 to 3 years of service in

3. TABLE SHOWIGN THE PERFORMANCE APPRAISAL

TABLE SHOWIGN THE PERFORMANCE APPRAISAL

4. TABLE SHOWIGN RATING OF PERFORMANCE APPRAISAL

TABLE SHOWIGN RATING OF PERFORMANCE APPRAISAL IN

INFERENCE: - Out of 50 people 6 people rated performance appraisal s very

poor, that constitute 12% to 7 people rated as poor that is 14%, 14

5. TABLE SHOWIGN THE DEGREE OF FAIRNES/

TABLE SHOWIGN THE DEGREE OF FAIRNES/ IMPARTIALITY.

the fairness in performance for promotions is excellent and 24% says it is

6. TABLE SHOWIGN THE CAPABILITY OF PERFORMANCE

TABLE SHOWIGN THE CAPABILITY OF PERFORMANCE

7. TABLE SHOWIGN THE FEED BACK OF THE RATIGN

TABLE SHOWIGN THE FEED BACK OF THE RATIGN

8. TABLE SHOWIGN THE INCENTIVE PROPORTIONATE TO

TABLE SHOWIGN THE INCENTIVE PROPORTIONATE TO THE

INFERENCE: - From the above data it is clear that out of 50 respondents 27

employees responded positively and 23 responded negatively. It is clear that

9. TABLE SHOWIGN THE CONDUCTING OF PERFORMANCE

CHART SHOWIGN THE CONDUCTING OF PERFORMANCE

employees are assessed by self-appraisal, it is clear to them, they are lagging

10. TABLE SHOWIGN THE TRAINING AFTER APPRAISAL

CHART SHOWIGN THE TRAINIGN AGTER APPRAISAL

11. TABLE SHOWIGN THE EFFECTIVENCESS IN IDENTIFIYIGN