CHAPTER 1

INTRODUCTION

HUMAN RESOURCE MANAGEMENT

1
WHAT IS HUMAN RESOURCE MANAGEMENT?
HRM is the study of activities regarding people working in an organization. It is a
managerial function that tries to match an organization’s needs to the skills and abilities
of its employees.

DEFINITION OF HRM
Human resources management (HRM) is a management function concerned with hiring,
motivating and maintaining people in an organization. It focuses on people in
organizations. Human resource management is designing management systems to ensure
that human talent is used effectively and efficiently to accomplish organizational goals.

HRM is the personnel function which is concerned with procurement, development,

compensation, integration and maintenance of the personnel of an organization for the
purpose of contributing towards the accomplishments of the organization’s objectives.
Therefore, personnel management is the planning, organizing, directing, and controlling
of the performance of those operative functions (Edward B. Philippo).

According to Dessler (2008) the policies and practices involved in carrying out the
“people” or human resource aspects of a management position, including recruiting,
screening, training, rewarding, and appraising comprises of HRM.

Generally HRM refers to the management of people in organizations. It comprises of the

activities, policies, and practices involved in obtaining, developing, utilizing, evaluating,
maintaining, and retaining the appropriate number and skill mix of employees to
accomplish the organization’s objectives. The goal of HRM is to maximize employees’
contributions in order to achieve optimal productivity and effectiveness, while
simultaneously attaining individual objectives (such as having a challenging job and
obtaining recognition), and societal objectives (such as legal compliance and
demonstrating social responsibility).

In short Human Resource Management (HRM) can be defined as the art of procuring,
developing and maintaining competent workforce to achieve the goals of an organization
in an effective and efficient manner.

2
INTRODUCTION OF PERFORMANCE APPRAISAL:
Performance appraisal is a systematic evaluation of present potential capabilities of
personnel and employees by their superiors, superior's superior or a professional from
outside. It is a process of estimating or judging the value, excellent qualities or status
of a person or thing. It is a process of collecting, analyzing, and evaluating data
relative to job behavior and results of individuals. The appraisal system is organized on
the principle of goals and management by objectives. Management decisions on
performance utilize several integrated inputs: goals and plans, job evaluation,
performance evaluation, and individual history. It connotes a two dimensional
concept - at one end of the continuum lies the goals set by the authority, and at the
other end, the performance achieved by the individual or any given group.

According to DeNisi, “Performance appraisal is the system whereby an organization

assigns some score to indicate the level of performance of a target person or group”.

Performance appraisal can be either formal or informal. Usage of former systems

schedule regular sessions in which to discuss an employee's performance.
Informal appraisals are unplanned, often just chance statements made in passing about
an employee's performance. Most organizations use a formal appraisal system. Some
organizations use more than one appraisal system for different types of employees or
for different appraisal purposes. Organizations need to measure employee performance
to determine whether acceptable standards of performance are being maintained. The
six primary criteria on which the value of performance may be assessed are: quality,
quantity, timelineness, cost effectiveness, need for supervision, and interpersonal
impact. If appraisals indicate that employees are not performing at acceptable levels,
steps can be taken to simplify jobs, train, and motivate workers, or dismiss them,
depending upon the reasons for poor performance.

FEATURES OF PERFORMANCE APPRAISAL:

1. Organized Process: Performance appraisal is an organized process having following
three steps:
 Deciding performance standards.
3
 Comparing actual performance of employee with performance standards.
 Providing feedback so that the employee can remove errors and enhance his/her
performance in due course of time.

2. Evaluating Process: it identifies the employees’ performed level and tries to develop a
future improvement plan.

3. Periodic Process: Performance appraisal is performed at regular intervals as per the

specified plan. It is not a one-time process.

4. Futuristic: Performance appraisal does not focus on the past rather it focuses on the
future.

5. Identifies Employee’s Potentialities: Performance appraisal determines the capability

of the employee to perform the allocated job effectively.

6. Develops Employees: Performance appraisal also emphasizes on overall development

of employees. It guides managers to act like a coach rather judge.

USES OF PERFORMANCE APPRAISAL

Performance appraisal is crucial tool in the hands of the management to bring about
greater agility and responsiveness in human resources of an organization. Performance
appraisal is the foundation of much human resource decision. Therefore, it has
multifarious uses as depicted below:
 PERFORMANCE IMPROVEMENT: Performance feedback allows the employee,
manager and personnel specialists to intervene with appropriate actions to improve
performance.

 COMPENSATION ADJUSTMENTS: Performance evaluations help decision-

makers determine who should receive pay raises. Many firms grant part or all pay
increases and bonuses based upon merit, which is determined mostly through
performance appraisals.

 PLACEMENT DECISIONS: Promotions, transfers and demotions are usually based

on past or anticipated performance. Often promotions are a reward for past performance.

 TRAINING AND DEVELOPMENT NEEDS: Poor performance may indicate the

need for retraining. Likewise, good performance may indicate untapped potential that

4
should be developed.

 CAREER PLANNING AND DEVELOPMENT: Performance feedback guides

career decisions about specific career paths one should investigate.

 STAFFING PROCESS DEFICIENCIES: Good or bad performance implies

strengths or weakness in the personnel department’s staffing procedures.

 INFORMATIONAL INACCURACIES: Poor performance may indicate errors in

job analysis information, human resource plans, or other parts of the personnel
management information system. Reliance on inaccurate information may have led to
inappropriate hiring, training, or counseling decisions. 
JOB DESIGN ERRORS: Poor performance may be a symptom of ill-conceived job
designs. Appraisals help diagnose these errors.
 EQUAL EMPLOYMENT OPPURTUNITY: Accurate performance appraisals that
actually measure job related performance ensure that internal placement decisions are not
discriminatory.
 EXTERNAL CHALLENGES: Sometimes performance is influenced by factors
outside the work environment such as family, financial, health or other personal matters.
If uncovered through appraisals, the human resource department may be able to provide
assistance.
 FEEDBACK TO HUMAN RESOURCES: Good/bad performance throughout the
organization indicates how well the human resource function is performing.

PLANNING THE APPRAISAL

A meaningful performance appraisal is a two-way process that benefits both the
employee and the manager. For employees, appraisal is the time to find out how the
manager thinks they are performing in the job. For a manager, a formal appraisal
interview is a good time to find out how employees think they are performing on
the job. The planning appraisal strategy has to be done:
5
 Before the appraisal:-
1. Establish key task areas and performance goals.
2. Set performance goals for each key task area.
3. Get the facts.
4. Schedule each appraisal interview well in advance.
 During the appraisal:-

1. Encourage two-way communication.

2. Discuss and agree on performance goals for the future.

3. Think about how you can help the employee to achieve more at work.

4. Record notes of the interview.

5. End the interview on an upbeat note.

 After the appraisal:-

1. Prepare a formal record of the interview.

2. Monitor performance.

APPROACHES OF PERFORMANCE APPRAISAL

George Odiorne has identified four basic approaches to performance appraisal.

Personality-based systems: In such systems the appraisal f o r m consists of a list of

personality traits that presumably are significant in the jobs of the individuals
being appraised. Such traits as initiative, drive, intelligence, ingenuity, creativity,
loyalty a n d trustworthiness appear on most such lists.

Generalized descriptive systems: Similar to personality-based systems, they differ in

the type of descriptive term used. Often they include qualities or actions of
presumably good managers:

"Organizes, plans, controls, motivates others, delegates, communicates, makes things

happen," and so on. Such a system, like the personality-based system, might be useful
if meticulous care were taken to define the meaning of each term in respect to actual
results.

Behavioral descriptive systems: Such systems feature detailed job analysis and job
descriptions, including specific statements of the actual behavior required from
6
successful employees.

Results-ce ntered systems: These appraisal systems (sometime called work-centered or

job-centered systems) are directly job related. They require that manager and
subordinate sit down at the start of each work evaluation period and determine the
work to be done in all areas of responsibility and functions, and the specific
standards of performance to be used in each area. When introducing
performance appraisal a job description in the form of a questionnaire has to be
preferred. A typical questionnaire addressed to an individual would cover the following
points:

What is your job title?

To whom are you responsible?

Who is responsible to you?

What is the main purpose of your job?

To achieve that purpose what are your main areas of responsibility?

What is the size of your job in such terms of output or sales targets, number of
items processed, number of people managed, number of customers? What targets or
standards of performance have been assigned for your job? Are there any other ways
in which it would be possible to measure the effectiveness with which you carry out
your job?

Is there any other information you can provide about your job?

COMPONENTS OF PERFORMANCE APPRAISAL

7
The components that should be used in a performance appraisal system flow directly
from the specific objectives of appraisal. The following components are being used in
a number of Indian organizations.

1. Key Performance Areas (KPAs) I Key Result Areas (KRAs)

2. Tasks/targets/objectives/attributes/qualities/traits

3. Self-appraisal

4. Performance analysis

5. Performance ratings

6. Performance review, discussion or counseling

7. Identification of training and development needs

8. Ratings and assessment by appraiser

9. Assessment and review by reviewing authority

10. Potential appraisal.

TYPES OF PERFORMANCE APPRAISAL

There are two types of performance appraisal systems which are normally used in
organizations:
1. Close ended appraisal system,
2. Open ended appraisal system.

In the close ended appraisal system, commonly used in government organizations and
public enterprises, a confidential report is submitted on the performance of the
employee. Only where an adverse assessment is made against an individual, the
concerned individual is informed about the same. The main shortcoming of this system
is that an individual is not informed about his/her inherent strengths and weaknesses
and, therefore, is not given an opportunity to respond to the assessment made on
him/her. The employees are, therefore, in a constant dilemma as to how their
performance is viewed by the management. In the open ended appraisal system,
unlike in the close ended system, the performance of the individual is discussed with

8
him, and he is ranked in a five or ten point rating scale. The company uses this tool
primarily for rewarding a good performer or for other considerations like promotions.
The main weakness of this system is that all the employees are ranked in a
particular scale, and whereas the good performers are rewarded, there is no
concerted effort to motivate the average performers in performing better. Another
weakness of the grading system is that the appraisal may tm out to be more subjective
in nature due to insufficient data maintained on the individual. This system also leads to
unnecessary comparisons made on different individuals performing similar jobs.
Performance appraisal can be a closed affair, where the appraises do not get any
chance to know or see how they have been evaluated; or it can be completely open,
where the appraises have the opportunity of discussing with their superiors during the
evaluation exercise.

PROCESS OF PERFORMANCE APPRAISAL:-

1. Establish Performance Standards with Employees: The process of
performance appraisal starts with the formation of performance standards, according to
organizational planned goals. These standards should be easy to understand so that they
can be easily comprehended and evaluated.
2. Mutually Set Measurable goals: After the formation of standards, the most
important thing is to convey the expectations so that an employee would not waste his
time in presuming what is being expected from him.
3. Measure Actual Performance: To measure actual performance, it is necessary to
collect information about it. Managers should be aware of what is to be measured and
how. There are four common sources of information which are often exercised by the
managers to evaluate actual performance. These are: Personal Observation; statistical
reports, oral reports and written reports.
4. Compare actual performance with Standards: Next step involves comparison
of standards with actual performance. This step includes identification of fluctuations
between the standard performance and the actual performance in order to proceed further.
5. Discuss the Appraisal with the Employee: During this phase, the appraiser
discusses the appraisal with the employee. For a manager, the most difficult job is to
provide a precise appraisal to the employee. The review of performance appraisal affects
employee’s self-esteem and most importantly his performance.
9
 6. If Necessary, Take Corrective Actions: The last phase of appraisal involves
taking remedial actions wherever needed. These actions could be immediate or basic.

METHODS OF PERFORMANCE APPRAISAL

Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for some
organizations only. None should be dismissed or accepted as appropriate except as they
relate to the particular needs of the organization or an employee. Broadly all
methods of appraisals can be divided into two different categories.
 Past Oriented Methods
 Future Oriented Methods

METHODS OF PERFORMANCE APPRAISAL

Traditional/Past-Oriented Modern/Future-Oriented
Methods Methods

Past Oriented Methods:-

These methods focus on past performance. These methods are as follows:
1. Rating Scales: Rating scales consists of several numerical scales representing job
related performance criterions such as dependability, initiative, output, attendance,
attitude etc. Each scales ranges from excellent to poor. The total numerical scores are
computed and final conclusions are derived. Advantages – Adaptability, easy to use, low
cost, every type of job can be evaluated, large number of employees covered, no formal
training required. Disadvantages – Rater’s biases
2. Checklist: Under this method, checklist of statements of traits of employee in the
form of Yes or No based questions is prepared. Advantages – economy, ease of
administration, limited training required, standardization. Disadvantages – Raters biases,
use of improper weighs by HR, does not allow rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in the blocks of two or
more are given and the rater indicates which statement is true or false. The rater is forced
to make a choice. HR department does actual assessment. Advantages – Absence of
10
personal biases because of forced choice. Disadvantages – Statements may be wrongly
framed.
4. Critical Incidents Method: The approach is focused on certain critical behaviors of
employee that makes all the difference in the performance. Supervisors as and when they
occur record such incidents. Advantages – Evaluations are based on actual job behaviors,
ratings are supported by descriptions, feedback is easy, reduces regency biases, chances
of subordinate improvement are high. Disadvantages – Negative incidents can be
prioritized, forgetting incidents, overly close supervision; feedback may be too much and
may appear to be punishment.
5. Behaviorally Anchored Rating Scales: statements of effective and ineffective
behaviors determine the points. They are said to be behaviorally anchored. The rater is
supposed to say, which behavior describes the employee performance. Advantages –
helps overcome rating errors. Disadvantages – Suffers from distortions inherent in most
rating techniques.
6. Field Review Method: This is an appraisal done by someone outside employees’
own department usually from corporate or HR department. Advantages – Useful for
managerial level promotions, when comparable information is needed. Disadvantages –
Outsider is generally not familiar with employees work environment, Observation of
actual behaviors not possible.
7. Performance Tests & Observations: This is based on the test of knowledge or
skills. The tests may be written or an actual presentation of skills. Tests must be reliable
and validated to be useful. Advantages – Tests may be apt to measure potential more
than actual performance. Disadvantages – Tests may suffer if costs of test development
or administration are high.
8. Confidential Records: Mostly used by government departments, however its
application in industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR) and may record ratings with respect to following items;
attendance, self-expression, team work, leadership, initiative, technical ability, reasoning
ability, originality and resourcefulness etc. Advantages - The system is highly secretive
and confidential. Feedback to the assesse is given only in case of an adverse entry.
Disadvantage - is that it is highly subjective and ratings can be manipulated because the
evaluations are linked to HR actions like promotions etc.

11
9. Essay Method: In this method the rater writes down the employee description in
detail within a number of broad categories like, overall impression of performance,
promote ability of employee, existing capabilities and qualifications of performing jobs,
strengths and weaknesses and training needs of the employee. Advantage – It is
extremely useful in filing information gaps about the employees that often occur in a
better-structured checklist. Disadvantages – It its highly dependent upon the writing skills
of rater and most of them are not good writers. They may get confused success depends
on the memory power of raters.
10. Cost Accounting Method: Here performance is evaluated from the monetary returns
yields to his or her organization. Cost to keep employee, and benefit the organization
derives is ascertained. Hence it is more dependent upon cost and benefit analysis.
11. Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers.
The usual techniques used may be ranking methods and paired comparison method.
 Ranking Methods: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to administer
and explanation.
 Paired Comparison Methods: In this method each employee is rated with
another employee in the form of pairs. The number of comparisons may be calculated
with the help of a formula as under.
N x (N-1) / 2

Future Oriented Methods:-

1. Management By Objectives: It means management by objectives and the
performance is rated against the achievement of objectives stated by the management.
MBO process goes as under.
 Establish goals and desired outcomes for each subordinate
 Setting performance standards
 Comparison of actual goals with goals attained by the employee
 Establish new goals and new strategies for goals not achieved in previous year.
Advantages – It is more useful for managerial positions. Disadvantages – Not
applicable to all jobs, allocation of merit pay may result in setting short-term goals rather
than important and long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed to assess employee’s
potential for future performance rather than the past one. It is done in the form of in-
depth interviews, psychological tests, and discussion with supervisors and review of other
12
evaluations. It is more focused on employees emotional, intellectual, and motivational
and other personal characteristics affecting his performance. This approach is slow and
costly and may be useful for bright young members who may have considerable
potential. However quality of these appraisals largely depend upon the skills of
psychologists who perform the evaluation.
3. Assessment Centers: This technique was first developed in USA and UK in 1943.
An assessment center is a central location where managers may come together to have
their participation in job related exercises evaluated by trained observers. It is more
focused on observation of behaviors across a series of select exercises or work samples.
Assesses are requested to participate in in-basket exercises, work groups, computer
simulations, role playing and other similar activities which require same attributes for
successful performance in actual job. The characteristics assessed in assessment center
can be assertiveness, persuasive ability, communicating ability, planning and
organizational ability, self-confidence, resistance to stress, energy level, decision making,
sensitivity to feelings, administrative ability, creativity and mental alertness etc.
Advantages – well-conducted assessment center can achieve better forecasts of future
performance and progress than other methods of appraisals. Also reliability, content
validity and predictive ability are said to be high in assessment centers. The tests also
make sure that the wrong people are not hired or promoted. Finally it clearly defines the
criteria for selection and promotion.
Disadvantages – Costs of employees traveling and lodging, psychologists, ratings
strongly influenced by assesses inter-personal skills. Solid performers may feel
suffocated in simulated situations. Those who are not selected for this also may get
affected.
4. 360-Degree Feedback: It is a technique which is systematic collection of performance
data on an individual group, derived from a number of stakeholders like immediate
supervisors, team members, customers, peers and self. In fact anyone who has useful
information on how an employee does a job may be one of the appraisers. This technique
is highly useful in terms of broader perspective, greater self-development and multi-
source feedback is useful. 360-degree appraisals are useful to measure inter-personal
skills, customer satisfaction and team building skills. However on the negative side,

13
receiving feedback from multiple sources can be intimidating, threatening etc. Multiple
raters may be less adept at providing balanced and objective feedback.

PERFORMANCE APPRAISAL ASSESSMENT

The quality of an appraiser is much more crucial than the appraisal methods. It is
desirable to make the immediate superior a party to the appraisal program. The
assessment can be accomplished by an individual or by a combination of the
immediate superior, other managers acquainted with the assessor's work, a higher
level manager, a personnel officer, the assesses himself, and the assessor's
subordinates. Training of appraisers has been largely stressed as a measure to
improve performance appraisals. Appraisers can be trained with a view to improving
their ability to evaluate subordinates and discuss evaluations with them effectively.

The following questions can provide an assessment of performance appraisal system:

1. What purposes does the organization want its performance appraisal system to
serve?

2. Do the appraisal forms really get the information to serve the purposes?

3. Are the appraisal forms designed to minimize errors and ensure consistency?

4. Do the processes of the appraisal serve the purpose of effective communication

between the appraiser and the appraise?
14
5. Are supervisors rewarded for correctly evaluating and developing their employees?

6. Are the evaluation and developmental components separated?

7. Are superiors relatively free from task interference in doing performance appraisal?

8. Are the appraisals being implemented correctly?

PERFORMANCE APPRAISAL IN PRACTICE

Traditionally appraisals are carried out by the supervisors of the employees. Some
companies do follow self- appraisal and compare the same with the traditional
appraisal of the supervisors. A new approach has been recently enunciated by the
western management gurus, which is known as 360 degree appraisal whereby
appraisals are required to be carried out not only by the supervisors, but also by
those supervised (subordinates) and peers. This approach also needs are look in the
context of leadership concepts being practiced universally. If one requires to be
appraised on how well he performs the leadership role, the appraisal should originate
from the followers (bottom to top approach) and not from their supervisors alone.

While the supervisors can appraise, on the performance standards, goals, targets,
achievements, the leadership attributes need to be appraised only by those being
supervised. This argument is quite valid for higher level executives including CEOs.
Therefore, all the three approaches, top bottom, bottom-top and peer level appraisal
will be very relevant. Perhaps, appropriate weightage is required to be assigned for
appraisals being carried out in the 360 degree system, which is yet to take off
seriously in many organizations.

It is quite disappointing to note that appraisals are not being carried out with the due
importance and seriousness they deserve though the systems provide scope for
periodic and timely appraisals. Normally appraisals are being carried out once a
year or at the most twice a year as per the existing practice. Many organizations do
follow monthly and quarterly appraisals for management trainees till they are
confirmed, and follow the by-annual or annual appraisal system thereafter.
Appraisal is a continuous process, to be scientifically carried out day in day out, if
one has to seriously carry out appraisals.
15
CONCERNS AND ISSUES IN APPRAISAL
1. Identifying job responsibilities and duties and performance dimensions, standards
and goals.

2. Prioritizing and weighing performance dimensions and performance goals.

3. Determining appropriate methods for appraising performance.

4. Developing suitable appraisal instruments and scoring devices.

5. Establishing procedures that enhance fair and just appraisals of all employees.

6. Providing performance feedback to all employees.

7. Relating observed and identified performance to the rewards provided by

organization.

8. Designing, monitoring and auditing processes to ensure proper operation of the

system and to identify areas of weakness.

9. Granting employees opportunities for appeal whenever and wherever such action is
appropriate.

10. Training of employees in all phases of the appraisal system. The basic issues
addressed by performance appraisal are:

What to appraise?

How to appraise fairly and objectively?

How to communicate the appraisal and turn the total process into a motivator? How
the performance appraisal results can be put to good use?

How to implement the performance appraisal system smoothly?

CHAPTER 2
16
COMPANY PROFILE

COMPANY PROFILE

17
 ThinkNEXT Technologies Private Limited (Formerly Brilliant Software Solutions) is an
ISO 9001:2008 certified software development company founded in August 2009 and it
is approved from Ministry of Corporate Affairs which deals in University/College/School
ERP Solutions, Android /iPhone Applications development, Web designing, Web
development, Discount Deals (www.thinknextcard.com, www.tricitydeal.com), Bulk
SMS, Voice SMS, Bulk Email, Biometric Time Attendance, Access Control, SEO/SMO,
Database Solutions, Payment Gateway Integration, E-Mail Integration, Industrial
Training, Corporate Training and Placements etc. Think NEXT Technologies provides
software solutions using latest technologies e.g. Smart Card, NFC, Biometrics, GPS,
Barcode, RFID, SMS, Auto SMS (Short code), Android, iPhone, Web, Windows and
Mobile based technologies.
ThinkNEXT has wide expertise in .NET, Crystal Reports, Java, PHP, Android, iPhone,
Databases (Oracle and SQL Server), Web Designing, Networking, Web Server
configurations, various RAID Levels etc.
ThinkNEXT Technologies has also setup its offices in USA, Delhi, Shimla and Bathinda
for its software support. ThinkNEXT has its own multiple Smart Card printing, encoding
and barcode label printing machines to provide better and effective customer support
solutions. ThinkNEXT has also setup its own placement consultancy and is having
numerous placement partner companies to provide best possible placements in IT
industry.
Think NEXT Technologies has developed for the first time in northern region cloud
computing based Cloud Campus 4.0 to facilitate knowledge and placement centric
services. It is a unique concept for effective and collaborative learning.
1. ThinkNEXT deals exclusively in campus automation through Smart Campus ERP
Solutions. Therefore we have better experience in handling large group of institutions
through proper time-tested policies and procedures.

18
2. First Company of India who has Launched NFC Technology (The Future) for Smart
Campuses through NFC Smart Cards.
3. First Company of India who has launched Android Version of Smart Campus ERP
Solutions for Mobiles and Tablet PCs.
4. First company of India who has developed SMS Opt-In Technology so that
Institutes/Colleges can send Transactional SMS with SMS Sender ID and without SMS
Template approval.
5. First company of Punjab, Haryana, Himachal, J&K (Northern region) who launched
Smart Cards (Contact Type), Smart Cards (Contactless) in Punjab for campus automation.
6. First company of India which has launched its Think NEXT Smart Card as Discount
Card in more than 120 enterprises.
7. Established own multiple Smart Card Designing, Smart Card Printing, Smart Card
Lamination and Oyster Barcode Printing Units.
8. Multiple SMS Gateway Support.

SERVICES:-
We provide Software Solutions using latest technologies or features:
NFC
Biometrics (Fingerprint with Automated Online)
Smart Card
Barcode
RFID
SMS
Short code 56767 (Auto SMS)
Android
ions (phone)
GPS
WAP (For WAP Enabled Mobile Phones)
Multiple SMS Gateway Support
Web based Technologies (365x24x7 services)
Windows based Technologies
Mobile based Technologies
Webcam support for various operations
Parallel Internet, Intranet and Wi-Fi Support

Vision:
ThinkNEXT Technologies Pvt. Ltd. are already very flexible and scalable. Still, we
always take care of specific requirements of our clients. Our highly committed R&D

19
team makes our software feature rich, dynamic and future tuned everyday so that our
clients always maintain the lead over their competitors. The development of the software
is being done and the purpose full customization of the package is carried out in the
ThinkNEXT lab.

Mission:
ThinkNEXT is pioneer in Smart Campus ERP Solutions for
Universities/Colleges/Schools using latest technologies and features. We provide
software solutions using .NET, PHP, Android, iphone, Java technologies with three tier-
architecture support. We provide back-end solutions using MS SQL Server, Oracle, and
MySQL.

Quality Policy:
We have wide experience working with eminent Educationists, Managements, Directors,
Principals, Head of Departments, other Staff Members, Parents and students. Therefore
we do not sell only software Modules but an innovative system which has more
importance than just ERP software modules. Today Smart Campus solutions are a need of
hour for every University/Group of Colleges or an Institution to make edge over others
and maintain a lead over their competitors. Our Research and Development team is
committed to make your institute(s) to maintain lead over their competitors.

More Services:
• ThinkNEXT offers various industry-ready programs so that student needs not to
struggle for jobs. ThinkNEXT offers 6 weeks/2 Months/6 Months training programs to
make students industry.

• ThinkNEXT is pioneer in providing best placements in Industry. We offer

minimum five job interviews for each student and provide 100% Placement Assistance.

• ThinkNEXT Offers Life-Time Validity Learning and Placement Card. Students

undergoing six months training will have advantage to learn free of cost anything against
that training program for life-time.

20
• ThinkNEXT offers Part-Time/Full Time Job Offer for each student during training
so that students can earn while they learn. Student can bear their food, accommodation
and other expenses on.

MANAGEMENT OF THINKNEXT TECHNOLOGIES PVT.LTD.

BOARD OF DIRECTOR
 Sunil Jindal
 Munish Mittal
 Ghansham Das
 Vikas Gupta
MANAGING DIRECTOR
 Sunil Jindal
MARKETING HEAD
 Munish Mittal
IT HEAD
 Mukesh Kumar

SOME OF OUR CLIENTS:

21
22
PLACEMENTS
COMPANY LIST

23


24
INDUSTRIAL TRAINING
6 Months/Weeks Industrial Training Programs
 Microsoft .NET
 Android
 iPhone
 Java
 PHP/MySQL
 Web Designing
 Embedded Systems
 AutoCAD
 Online Bidding (Freelancing)
 Oracle/SQL Server Administration
 Software Testing and Quality Assurance
 Hardware & Networking
 CCNA
 MCITP
 SEO
 CATIA
 Pro-E
 Solid Works
 Human Resource
 Marketing

 Finance

25
ACHIEVEMENTS
 Get Training under an ISO 9001:2008 Certified Company.
 Accredited Training Partner of National Institute of Electronics and Information
Technology, Department of Electronics and Information Technology, Ministry of
Communications Information Technology.
 Approved from Ministry of Corporate Affairs, Govt. of India. Corporate Identity
No. U72200PB2011PTCO35677
 Accredited Training Partner of ISTQB (International Software Testing
Qualifications Board).
 Member of CII (Confederation of Indian Industry) Membership No. N5238P.
 Industrial Training from Software/Electronics and CAD/CAM Systems
development Company (MNC) not just from a Training Institute

ThinkNEXT Cloud Campus Advantages

 Each Student will have Unique User ID and Password to Login to ThinkNEXT
Cloud Campus 4.0 anytime…anywhere…
 View Numerous Technical, Personality Development Videos anytime…
anywhere…
 Students will be able to download e-Books, e-Journals, Class Notes, Important
Links and other study material.
 ThinkNEXT Smart Campus is a step towards not only 100% placements but also
better job offers even after placements.
 Student Profile, Instant Technical Updates, Class Notes, Project Report
Submitted, Attendance, Performance, Notice-Board, Class Timings etc. Everything
online.
 Communication with industry experts, Technologists through cloud Campus
anytime…anywhere….
 Regular SMSes and E-mail for Related Job Offers.

26
  Access through PCs, Laptops, Tablet PCs, Mobiles via internet.

OTHER INFORMATION

TYPE Privately Held

COMPANY SIZE 35 Employees

WEBSITE http://thinknexttraining.com
http://managementinternship.com/
http://thinknexttraining.co.in

INDUSTRY TYPE IT Development and Professional Training

company

YEAR OF ESTABLISHMENT August 2009(ISO 9001:2008)

CORPORATE OFFICE ThinkNEXT Technologies Pvt. Ltd, SCF 113,

Sector 65, Phase XI, Mohali

HEAD OFFICE Canada US ,6931 148A SURREY , BC

CANADA (V350Y9)

27
 CHAPTER-3

RESEARCH METHODOLOGY

28
3.1 OBJECTIVES OF PERFORMANCE APPRAISAL:-

1. Providing Feedback: Main objective of performance appraisal is to

provide feedback to its employees. Through this process, the individual learns
how he performed during past twelve months. Then, he can utilize this
information for improving his performance in the future.
2. Facilitating Promotion and Downsizing decisions: Performance
appraisal helps in making decisions regarding promotion and downsizing so that
efficient employees can be retained and low performers can be removed.

3. Setting and measuring Goals: Goal establishment has been confirmed as

a management process which produces advanced performance. The performance
appraisal process is generally used to ensure that every individual sets and attains
valuable goals.
4. Determining Compensation: The concept of pay for performance is
generally followed by every organization. Performance appraisal helps in
ensuring that good performers are paid more. Thus, employees are rewarded as
per their performance.
5. Counseling Poor Performers: It is not possible for everyone to meet the
standards of organization. Performance appraisal pressurizes the managers to deal
with those who are not fulfilling the organizational expectations.
6. Encouraging Coaching and Mentoring: Managers are supposed to be
good coaches for their subordinates and mentors for their trainees. Performance

29
 appraisal determines the need for coaching and motivates managers to play an
active role of coach.
7. Supporting Manpower Planning: Well-groomed organizations
frequently evaluate their strengths to ensure that they have the required talent.
Organizations need to find out their most effective employees.
8. Determining Training and Development Needs: With the help of data
obtained from performance appraisals, training and development experts can
better decide the areas where an organization should focus its training efforts.
9. Validating Hiring Decisions: Once the performance of newly selected
employees is evaluated, only then the organization can determine that whether or
not it has selected the right candidate.
10. Improving Overall Organizational Performance: Performance
appraisal helps in conveying the organizational expectations to all team members
and evaluates how each employee is performing his job.

3.2 SCOPE OF PERFORMANCE APPRAISAL :-

Fairness in performance appraisal system is very important for the organization. If the
system of the organization is not fair that means employee is not satisfy with their
appraisal system which leads to the result of leaving the job by the employee. That means
increase in employee attrition. The main reason of doing this study is increase in
employee attrition.

3.3 MEANING OF RESEARCH :-

30
For achieving the objectives of study, survey was conducted. For survey; personal
interviews of the management were undertaken. A personal interview was selected as the
mode of survey to make the study more meaningful and so that maximum information
could be collected. For conducting the personal interviews of the management, a
questionnaire was made. The questionnaire was structured with open ended and close
ended questions.

The Management was interviewed on various aspects likely to have impact on the
absenteeism and on the turnover of the employed viz. number of the leaves allowed to the
employees, procedure for the promotions, increments in pay, bonus schemes incentive
sector etc. given to the employees.

3.4 SAMPLE SIZE:-

DESIGNATION SAMPLE SIZE

Employees 35
TOTAL 35

SAMPLING UNIT:-

The area, which is taken for study, is ThinkNEXT Technologies Pvt Ltd Mohali.

SAMPLING PROCEDURE:-

Convenience sampling has been used to collect the data from the respondents.
Convenience sampling technique is followed. Convenience sampling as the name
implies is based on the convenience of the researcher who is to select the sample.
This type of sampling is also called accidental sampling as the respondents in the
sampling are included in it merely on account of that being available on the spot
where the survey is in process.

Thus the researcher may stand at a certain prominent point and interview all
those or selected people who pass through that place.

31
3.5 LIMITATIONS OF THE STUDY :-

1. Time is important limitation due to the time constraints only few

employees is taken for the study.

2. The study is limited to the employees deployed in ThinkNEXT

Technologies Pvt Ltd.

3. The study often overlooked by management so redtops involvement could

manipulate desired result.

CHAPTER-4

DATA ANALYSIS AND INTERPRETATIONS

32
 DATA ANALYSIS AND INTERPRETATION

1. Since how many years you have been working in ThinkNEXT Technologies Limited,
Mohali?

a) Less than one year b) 1-2 years

c) 2-3 years d) More than 3 years

TABLE:

Options No. of respondents Percentages

Less than one years 7 20%
1-2 years 10 28.57%
2-3 years 12 34.28%

33
More than 3 years 6 17.15%
TOTAL 35 100%

CHART:

INTERPRETATION- As per the analysis, 20% of the respondents have been

working in organization for less than one year; 28.57% respondents have been working
from1-2 years, 34.28% respondents have been working for 2-3 years and the remaining
17.15% respondents have been working for more than 3 years.

2. Does the system provide you a chance to communicate the support you need from your
subordinate to perform the job well?

a) Yes b) No

TABLE:

Options No. of respondents Percentages

Yes 20 57.15%
No 15 42.85%
TOTAL 35 100%

CHART:

34
INTERPRETATION- As per the analysis 57.15% respondents believe that the
system provide a chance to communicate the support they need from your subordinate to
perform the job well and 42.85% respondents believe that system does not provide any
system to communicate.

3. Which appraisal system is being employed in the company?

a) Assessment center b) MBO

c) BARS d) 360 degree feedback

e) Balance scorecard

TABLE:

Options No. of respondents Percentages %

Assessment 7 20%
MBO 3 8.57%
BARS 10 28.57%
360 Degree feedback 9 25.71%
Balance 6 17.15%
TOTAL 35 100%

35
CHART:

INTERPRETATION- As per the analysis 20% respondents believe that assessment

appraisal system is being employed in the organization, 8.57% respondents believe that
MBO appraisal system is being employed in the org, 28.57% respondents believe that
BARS appraisal system is being employed in the org, 25.71% respondents believe that
360 degree feedback system is being employed the company and 17.15% respondents are
balanced.

4. What is the timing of Appraisals followed by ThinkNEXT Technologies limited?

a) Monthly b) Quarterly c) Half yearly

d) Annual e) Any time

TABLE:

Options No. of respondents Percentages%

Monthly 7 20%
Quarterly 4 11.43%
Half yearly 10 28.57%

Annual 12 34.28%
Any time 2 5.72%

TOTAL 35 100%

36
CHART:

INTERPRETATION- The table shows that 20% respondents say that appraisal is
conducted Monthly by the organization,11.43% respondents say that the organization
conducts the appraisal Quarterly, 28.57% respondents say that performance appraisal is
conducted Semi-Annually 34.28% respondents say that appraisal is conducted Annually
by the organization, and 5.72% respondents say that appraisal is conducted anytime by
the company.

5. What do you think is the effect of a poor appraisal system?

a) De-motivation b) Retention

c) Ineffective teamwork

TABLE:

Options No. of respondents Percentages%

De-motivation 20 57.14%
Retention 5 14.28%
Ineffective teamwork 10 28.58%
TOTAL 35 100%

CHART:

37
INTERPRETATION- It can be seen from result that 57.14% of the employees get
de-motivated because of poorly conducted appraisal; 14.28% of employees get retained
and 28.58% of respondents results in ineffective teamwork due to poor appraisal.

6. Are employee’s comments and suggestions taken in to consideration before the

appraisal?

a) Yes b) No

TABLE:

Options No. of respondents Percentages%

Yes 30 85.72%
No 5 14.28%
TOTAL 35 100%

CHART:

38
INTERPRETATION- From above it can be seen that the 85.72% employees believe
that their comment and suggestions are taken into consideration before the appraisal and
14.28% employees believe that their comment and suggestions are not taken into
consideration before the appraisal.

7. Who conducts the performance appraisal?

a) Immediate supervisor b) Peer appraisal c) Rating committees

d) Self-rating e) Appraisal by subordinates

TABLE:

Options No. of respondents Percentages %

Immediate supervisor
Peer appraisal
Rating committees
Self-rating
Appraisal by subordinates
TOTAL
25 71.43%
4 11.43%
2 5.71%
3 8.57%
1 2.86%
35 100%

CHART:

39
INTERPRETATION- From this it is evident that 71.43% employees say that
appraisal is conducted by the intermediate supervisor; 11.43% employees says that
appraisal is conducted by peers; 5.71% employees say that appraisal is conducted by
rating committees; 8.57% employees say that appraisal is conducted by self rating; 2.86%
employees say that appraisal is conducted by subordinates.

8. Is the performance appraisal successful in giving a clear understanding of the

appraiser’s job to both appraiser and appraisee?

a) Yes b) No

TABLE:

Options No. of respondents Percentages%

Yes 32 91.43%
No 3 8.57%
TOTAL 35 100%

CHART:

40
INTERPRETATION- From this it is clearly seen that 91.43% employees believe
that the performance appraisal is successful in giving a clear understanding of the
appraiser’s job to both appraiser and appraisee and remaining 8.57% employees believe
that the performance appraisal is not successful in giving a clear understanding of the
appraiser’s job to the appraiser and appraisee.

9. Are the standards on the basis of which the performance appraisal is carried out
communicated to the employees beforehand?

a) Yes b) No

TABLE:

Options No. of respondents Percentages%

Yes 31 88.57%
No 4 11.43%
TOTAL 35 100%

CHART:

41
INTERPRETATION- From above it is evident that 88.57% employees believe that
the standards on the basis of which the performance appraisal is carried out are
communicated to the employees beforehand and remaining 11.43% employees believe
that the standards on the basis of which the performance appraisal is carried out are not
communicated to the employees beforehand.

10. Do you think that the organization gives an opportunity to the appraisee to rate his
own performance?

a) Yes b) No

TABLE:

Options No. of respondents Percentages%

Yes 14 40%
No 21 60%
TOTAL 35 100%

CHART:

42
INTERPRETATION- From result it can be seen that the 40% employees think that
the organization gives an opportunity to the appraisee to rate his own performance while
remaining 60% employees think that the organization does not gives an opportunity to the
appraise to rate his own performance.

11. Do you act upon the results of your performance appraisal?

a) Yes b) No

TABLE:

Options No. of respondents Percentages

Yes 32 91.43%
No 3 8.57%
TOTAL 35 100%

CHART:

43
INTERPRETATION- From above we conclude that 91.43% employees act upon the
result of their performance appraisal and remaining 8.57% employees do not act upon the
result of their performance appraisal.

12. Are you fully satisfied by ThinkNEXT Technologies performance appraisal system?
a) Strongly agree b) Agree c) Neutral
d) Strongly disagree e) Disagree

TABLE:

Options No. of respondents Percentages %

Highly Satisfied 7 20%
Satisfied 11 31.43%
Neutral 9 25.71%
Dissatisfied 5 14.28%
Highly Dissatisfied 3 8.57%
TOTAL 35 100%

CHART:

44
INTERPRETATION- From above we can conclude that 31.43% employees are
satisfied by this company performance appraisal system and 20% employees are highly
satisfied; 25.71% employees are neutral; 14.28% employees are dissatisfied and
remaining 8.57% are highly dissatisfied with the Company’s performance appraisal
system.

CHAPTER-5

FINDINGS & SUGGESTIONS

45
FINDINGS
1. It has separate appraisal system for each level of employees. These appraisal
systems differ on the factors on which a person is rated and the nature of duties
handled by him.

2. It is seen that the employees are not satisfied with the way they are
appraised or they haven't been appraised properly. For this matter, the company have
interview and discussion.

3. The frequency of appraisal in this organization is yearly. Where appraisal is

based on Key Result Areas, a mid-term review is also undertaken. This data is then
compiled and the final appraisal is conducted at the end of the year.

4. In most of the cases the immediate supervisors is the appraiser but sometimes
it is also the HR department or the HOD.

5. This organization have goal setting as part of appraisal. The performance is

evaluated against these targets.

6. On an average 85% of the employees of an organization are motivated by

performance appraisal.

7. Organizations use the data that is maintained for every employee to compare

46
the performance over a period of time. Some companies also use this data for making
decision regarding job rotation, succession planning. Very few companies make use
of this data for retrenchment as proof of poor performance.

8. A good deal of respondents felt that appraisal is likely to be more successful

when it is linked with financial and semi-financial incentives like promotion,
bonus, increment. This increases the commitment from the parties concerned the
appraisal and the appraisee.

9. 360° degree feedback system is not very popular in the Indian companies.
Among the companies under study, this system has been implemented in this system
can be adopted and is successful only in the presence of an o p e n organizational
climate.

10. Most of the companies have a separate appraisal system for the new
employees, who are on probation. This basically to confirm them is satisfied with the
current

11. In most of the organizations training is provided for the appraisal system one
to two weeks before the appraisal and also when new or revised Performance
appraisal system is introduced.

12. Performance appraisal is surly a good indicator (about 80%) for the training and
developmental need of the employees.

47
SUGGESTIONS
Performance appraisal should not be perceived just as a regular activity but its
importance should be recognized and communicated down the line to all the
employees.

a. There should be a review of job analysis, job design and work environment
based on the performance appraisal.

b. It should bring more clarity to the goal and vision of the organization.

c. It should provide more empowerment to the employees.

d. New methods of appraisal should be adopted so that both appraiser and the
appraise take interest in the appraisal process.

e. The employees who have excellent performance should be used as a mentor for
other employees who would motivate others to perform better.

f. Employees should be given feedback regarding their appraisal. This will help
them to improve on their weak areas.

g. Financial and non-financial incentives should be linked to the annual appraisal

system so that employees would be motivated to perform better.

h. New mechanisms should be evolved to reduce the time factor involved

m the procedure of appraisal. Introducing online-appraisal can do this.

i. The frequency of training program for the appraiser should be increased and
these sessions should be made interactive.

j. The awareness sessions for the employees/appraisee should be made

more interactive and the views and opinion of the appraisee regarding appraisal should
be given due consideration.

k. Assistance should be sought from specialists for framing a proper appraisal

system that suits the organization climate. Constant monitoring of the appraisal system
should be done through discussions, suggestions, interactions.
48
l. Combining the different methods of appraisal can minirnize the element of
biasness in an appraisal. Like the Rating method combined with assessment center
method would give an evidence of poor/unfavorable or outstanding behavior of the
appraisee, if any.

m. Use of modem appraisal techniques like 360° appraisal, assessment centers

which are more effective.

n. More transparency should be brought about in the appraisal system.

o. The appraisal system should cover all employees in the organization both white
collar and blue-collar jobs.

p. Recognizing the good performers i.e., appraises who have accomplished the
targets for the year can help in getting more commitment from the employees.

q. Information regarding the performance of the employees should be kept in proper

manner.

r. Some of the performance appraisals should be conducted by the top management

so that they can understand the employees and their needs, behavior better and to find out
the loopholes.

s. Performance appraisal should be effectively link to the performance management

system of the organization.

t. Performance appraisal should be effectively link to the performance management

system of the organization.

u. Still follow the traditional methods of appraisal that should be transformed into the
modem one.

49
CONCLUSION

50
 CONCLUSION

The findings in this research have showed that it is essential to have an effective
performance appraisal system. The system should be free from bias so that employees are
afforded the chance to get a fair appraisal. It shows that if appraisals are not fair, then an
employee would not be aware of their true performance level. This could affect their
opportunity for advancement in their jobs in the future. It can also affect employees moral
as good appraisal results motivate employees to work even harder. Therefore, inaccurate
ratings results in frustrated employees, inappropriate rewards and punishment.

51
 BIBLIOGRAPHY

 BOOKS

 Human resource management - Aswathappa

 Human resource management -V. S. Rao

 Human resource management - Gary Dessler

 Personnel management- C.B.Mamoria

 Evaluating management training and development- B.R.Virmani Premila Seth

 Strategic human resource management -Srinivas.R.Kandula

INTERNET
52
WEBSITES:

www.Google.com

www.yahoo.com

QUESTIONNAIRE

53
 QUESTIONNAIRE

Name: Contact No: ---------------------

1. Since how many years you have been working in ThinkNEXT Technologies

Pvt. Limited Mohali?

a. Less than one year b. 1 – 2 years

c. 2 – 3 years d. More than 3 years

2. Does the system provide you a chance to communicate the support you need from your
subordinate to perform the job well.

a. Yes b. No

3. Which appraisal system is being employed in the company?

a. Assessment Centre b. MBO c. BARS

d. 360 degree feedback e. Balance scorecard

4 What is the timing of Appraisals followed by ThinkNEXT Technologies Limited ?

a. Monthly b. Quarterly c. Half Yearly

d. Annual e. Anytime

5 What do you think is the effect of a poor appraisal system ?

a. De-motivation b. Retention c. Ineffective teamwork

54
6. Are employee's comments and suggestions taken into consideration before the
appraisal?

a. Yes b .No

7. Who conducts the performance appraisal?

a. Immediate Supervisor b. Peer Appraisal c. Rating Committees

d. Self-rating e. Appraisal by Subordinates

8. Is the performance Appraisal successful in giving a clear understanding of the appraisee's job
to both appraiser and appraise?

a. Yes b. No

9. Are the standards on the basis of which the performance appraisal is carried out communicated
to the employees beforehand?

a. Yes b. No

10. Does the company give an opportunity to the appraisee to rate his own performance?

a. Yes b. No

11. Do you act upon the results of your performance appraisal?

a. Yes b. No

12. Are you fully satisfied by ThinkNEXT Technologies performance appraisal system ?

a. Strongly agree b. Agree c. Neutral

d. Strongly Disagree e. Disagree

55