International Journal of Research ISSN NO: 2236-6124

A study on Performance Appraisal System in TV Sundaram Iyengar

and Sons Limited, Trichy

Dr.K.Muraliselvam1 and Dr.N.Santhoshkumar2,

1
Associate Professor in Commerce, 2Research Advisor in Commerce,
1&2
Marudupandiyar College, Thanjavur – 613 403, Tamil Nadu, South India.
1
Email: drkmmpc@gmail.com, 2Email: cnrskumar@gmail.com

Abstract: Performance appraisal has been considered as a most significant and indispensable tool for an
organization, for the information it provide is highly useful in making decisions regarding various personal
aspects such as promotions and merit increases. It is a process that involves determining and communicating to
an employee how he or she is performing the job and ideally, establishing a plan of improvement. In this
research paper, the sample constitutes the permanent employees belonging to different departments. The data
were collected from the primary and secondary sources. Stratified random sampling technique was done to draw
the sample size of 50 respondents from the lot of 90 employees. The major findings of the study were there is a
significant relationship between the appraisals based training with improvement in performance. So there is a
strong correlation between satisfactory level of the employees and monitory rewards. The main suggestions for
the performance appraisal activities are; Employees can be motivated with rewards, promotions based on their
performance appraisal. Suitable training programmed has to be arranged after the appraisal made. Performance
rated can be communicated to the employees so that they will know their level of performance.

Key words: performance appraisal system, Satisfaction level, training program.

1. Introduction

Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally
including both the quantitative and qualitative aspects of job performance. It is a systematic and objective way of
evaluating both work related behaviour and potential of employees. Performance appraisal is necessary to
measure the performance of the employees and the organization to check the progress towards the desired goals
and aims. Performance appraisal continues to be a subject of interest and importance to human resource
specialists. For decades, performance appraisal has received considerable attention in the literature, from both
researchers and practitioners alike. The information gathered and performance appraisal provide basis for
recruitment and selection, training and development of existing staff, and motivating and maintaining a quality
human resource through correct and proper rewarding of their performance.

2. Definition

According to ACAS [1988] appraisals are, “regularly record an assessment of an employee’s performance,
potential and development needs”. The appraisal is an opportunity to take an overall view of work content,
loads and volume, to look back at what have been during the reporting period and agree objectives for the next.

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 International Journal of Research ISSN NO: 2236-6124

3. Objectives of the study

 To study the level of employee performance appraisal followed in TV Sundaram Iyengar and Sons Limited.
 To portray the attitude of employee towards performance appraisal system.

4. Need for the study

Performance appraisals are a regular review of employee’s performance with in organization. For a people first
company the focus is always on the employee’s satisfaction and industrial studies have revealed that this aspect is
to a great dependent on performance appraisal system existing in company. Management wants to know the
quality of appraisal criteria parameters and duration from the viewpoint of employees. This is turning forms the
need for the study.

5. Review of literature

Dr.V.Antony Joe Raja and R.Anbu Ranjith Kumar (2016) in their study titled “a study on effectiveness of
performance appraisal system in manufacturing industries in India” concluded that the Performance appraisal
system in company is effective but there exist certain criteria like seniority merits. Potentials of the employees
that are too considered for effective functions. Based on the findings of the study some valuable suggestions
have been offered. It is hoped that the findings and suggestions will be useful in improving the existing
employee performance annual appraisal system.

A.Suhasini and Dr.Kalpana Koneru (2016), in their study titled "A study on Effectiveness of performance
appraisal system in Educational institutions" concluded the purpose and therefore implementation of
performance appraisal is essential. The development of systematic approaches is required; one that approximates
best practices and sees to develop a collaborative professional culture that facilitates the ongoing refinement of
effective teaching is required. Teaching that lead to improved student outcomes requires various methodologies
and performance standards to be set and proper performance appraisal. It is clear that the systematic significant
and sustained performance appraisal process/system are developed that lead to improved outcomes for all the
students in the colleges. However the performance appraisal system should be modified with personal biases,
likes and dislikes of the appraisers.

6. Research Methodology

As the researcher aim to study and describe the various aspects performance appraisal of the employee and also
seeks to find out the contributing factors and association with selected variables with employee performance
appraisal thus the research design adopted is descriptive research design. Stratified random sampling method is
being used for the survey. The sample size selected for the study was 50 respondents. The researcher used
questionnaire method to collect data from the employees. The questionnaire consisted of two parts, the first part
being the personal data and the second part contained 18 questions under 5 point scales. Primary source of data
include those data which are collected for the first time. A well designed structured questionnaire was prepared
for this purpose. Secondary source of data was collected from personal records, books Magazines, Journals,
Internet, etc. The data collected were carefully analyzed and processed using statistical techniques such as
percentage analysis, Chi-square, Karl Pearson coefficient of correlation and weighted average.

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International Journal of Research ISSN NO: 2236-6124
7. Analysis of Data

Table: 1 Opinion about performance appraisal system followed in the company

S.No Opinion No. of Respondents Percentage
1. To measure performance 25 50
2. To identify skills 17 34
3. To recognize & reward 8 16
Total 50 100
Source: Primary Data

From the table it is observed that 50 per cent of the employees feels that appraisal system is to measure the
performance, 34 per cent of the employees feels to identify skills, 16 per cent of the employees feels to
recognize and reward .This shows that majority of employees feels that to measure the performance.

Table: 2 Satisfaction level towards appraisal system

S.No Opinion No. of Respondents Percentage
1. Highly satisfied 6 12
2. Satisfied 38 76
3. Moderately 4 8
4. Dissatisfied 2 4
5. Highly Dissatisfied 0 0
Total 50 100
Source: Primary Data

From the table it is observed that 12 per cent of the employees are highly satisfied, 76 per cent of the employees
are satisfied, 8 per cent of the employees are moderately satisfied, 4 per cent of the employees are dissatisfied,
none of the employees are highly dissatisfied. This shows that majority of the employees are satisfied.

Table: 3 Opinion about factors considered for performance appraisal system

S.No Rank No. of Respondents Percentage
1. Promotion 11 22
2. Salary 19 38
3. Retention/ termination 3 6
4. Identification of poor performance 12 24
5. Training assessment 5 10
Total 50 100
Source: Primary Data

From the table it is observed that 22 per cent of the employees feel that appraisal system is for promotion, 38
per cent of the employees feel that it is for salary, 6 per cent of the employees feel the retention or termination,
24 per cent of the employees feels the identification of poor performance, 10 per cent of the employees feels the
training assessment. This shows that majority of the employees chosen in first salary.

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International Journal of Research ISSN NO: 2236-6124
Table: 4 Cross tabulation between the satisfaction level and training program.
Opinion about the satisfaction level
Highly Satisfie Moderatel Dissatisfie Highly Total
Training
Satisfie d y Satisfied d Dissatisfied
d
Always 31 63 29 27 25 175
Often 16 48 14 12 10 100
Sometime 17 49 15 13 11 105
Not very 9 41 7 5 3 65
often
Never 7 39 5 3 1 55
Total 80 240 70 60 50 500
Source: Primary Data
H0 = There is no significant relationship between the appraisal based training with improvement in
performance.
H1= There is significant relationship between the appraisal based training with improvement in Performance.
Chi-Square Test
Oi Ei Oi - Ei (Oi – (Oi – Ei)²/ Ei
Ei)²
31 28.00 03.0 009.00 0.320
63 84.00 -21 441.00 5.250
29 24.50 04.50 020.25 0.830
27 21.00 06.00 036.00 1.710
25 17.50 07.50 056.25 3.210
16 16.00 00.00 000.00 0.000
48 48.00 00.00 000.00 0.000
14 14.00 00.00 000.00 0.000
12 12.00 00.00 000.00 0.000
10 10.00 00.00 000.00 0.000
17 16.80 00.20 000.04 0.002
49 50.40 -1.40 001.96 0.030
15 14.70 00.30 000.09 0.006
13 12.60 00.40 000.16 0.013
11 10.50 00.50 000.25 0.024
09 10.40 -1.40 001.96 0.188
41 31.20 09.80 096.04 3.080
07 09.10 -2.10 004.41 0.485
05 07.80 -2.80 007.84 1.005
03 06.50 -3.50 012.25 1.885
07 08.80 -1.80 003.24 0.368
39 26.40 12.60 158.76 6.013
05 07.70 -2.70 007.29 0.946
03 06.60 -3.60 012.96 1.964
01 05.50 -4.50 020.25 3.681
Total 31.01
Source: Calculated Values

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Calculated value = 31.01

Degrees of freedom = (r-1) × (c-1) = 4 × 4 = 16

Tabulated value of chi-square for 16 degree of freedom at 5 per cent level of significance is 26.

Since the calculated value is greater than the tabulated value. So we reject the null hypothesis. There is significant
relation between the appraisal based training with improvement in performance.

Table: 5 Correlation between the satisfaction of the employees and monetary reward.
(X = Satisfactory level of the employees & Y = Satisfactory level of monetary reward)
X y dx = (x-x) dy = (y-y) dx² dy² Dxdy
6 13 -4 3 16 9 -12
38 23 28 13 784 169 364
4 13 -6 3 36 9 -18
2 1 -8 -9 64 81 72
0 0 -10 -10 100 100 100
∑x= 50 ∑y= 50 ∑dx= 0 ∑dy= 0 ∑dx²= 1000 ∑dy²= 368 ∑dxdy= 506
Source: Calculated Values

n (∑dxdy) - ∑dx.∑dy
Correlation coefficient r =
√n (∑dx²) – (∑dx) ². √n (∑dy²) – (∑dy)²

5(506) - 0×0
r= = 0.8342
√5×1000 - 0×√5×368 – 0

From the result we can see that the value is positive. The value of the positive correlation co-efficient ‘r’ is
between o and 1. So there is a strong correlation between satisfactory level of the employees and monetary
reward.

8. Findings of the study

 About 86 per cent of the respondents say that skill development training program is conducted in the
organization and about 50 per cent of the respondents say sometime the suggestion given by them are positively
looked into by seniors.
 About 34 per cent of the respondents say that the appraisal system often helps for improving the individual
development to ensure new knowledge and skill.
 About 82 per cent of the respondents say that there is no partiality when their performance was rated and about
36 per cent of the respondents are satisfied to 60 per cent-80 per cent while evaluating the performance.
 From the Chi-square analysis it is found that there is significance relationship between appraisals based training
programs in improving the performance.
 From the correlation analysis it’s found that satisfaction of employees and monetary reward are positively
related.

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9. Suggestions

 Most of the employees were satisfied with the appraisal system followed in the organization. But the employees
were not aware about the rated performance level. If it is communicated periodically, they can improve their
performance.

 Since there is relationship between appraisals based training and performance of the employee, the company can
give versatile training performances to different categories of employees.

 The company can encourage for self appraisal of the employees. For this the company can set a self-appraisal
from and make the employees to rate their performance. This helps the employees to know their level of
performance and standards.

10. Conclusion

Performance appraisal system followed at TV Sundaram Iyengar and Sons was evaluated and found to be good.
By providing suitable training and development programs, the concern organization can improve the
performance appraisal system. Performance appraisal is inevitable for every organization because it helps in the
employee relation with his subordinates and superiors, and increases the employee morale. So performance
appraisal system should be designed in such a way that it works effectively. The performance review and
feedback can be made as part of the day to day communication with employees. This will not only ensure the
effectiveness of performance appraisal but will help the employees to understand their draw back and can
correct themselves Hence overall organization improvement can also be achieved.

References

11.1 Journal Articles

[1] Dr .V. Antony Joe Raja. A Study on Consumer Perception in Facilities Management among the Middle Income
Public in India for Various Analytical Factors Applied In the Strategic Management. International Journal of
Management, vol. 5, no. 1, (2014), pp. 01-17.

[2] Vijayalatha S., Brindha G., Emerging employee retention strategies in it industry, International Journal of
Pharmacy and Technology, vol. 8, no. 2, (2016), pp. 12207- 12218.

[3] Karthik A., Brindha G., Green revolution conversion of offline education to online education, International
Journal of Pharmacy and Technology, vol. 8, no. 3, (2016), pp. 15393-15407.

[4] Padminii K., Venkatramaraju D., Brindha G., A Study on Quality of Women Employees in Medical
Transcription, Journal of Health Management, vol. 18, no. 1, (2016), pp. 13-20.

[5] Jeykar K., Srinivasan V., Performance characteristics of twin cylinder Di diesel engine operated with three
different non edible vegetable oil blends with diesel, International Journal of Applied Engineering Research, vol.
9, no. 22, (2014), pp. 7601-7607.

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11.2 Books

[6] Bacal, R. Performance management. New York: McGraw-Hill, (2009).

[7] Stone, R. J. Human Resource Management (4th ed.). Milton, Queensland: John Wiley and Sons, (2002).

[8] Mamoria C. B. “Personnel Management”, Himalaya Publishing House, New Delhi, (2003).

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