PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Project Synopsis A STUDY ON DIFFERENT APPROACHES OF PERFORMANCE APPRAISALS: A SPECIFIC STUDY

IN S OFTWARE INDUSTRY Project Guide Submitted By

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Project Synopsis checklist 1. 2. 3. 4. 5. 6. 6.1. 6.1.1 6.2. 6.3. 6.4. 6.5. 6.6. 6.6.1 6.6.2 6.6.3 7. 8. TI TLE OF THE PROJECT ............................................................. ..................3 EXECUTIVE SUMMARY .......................................... .......................................3 STATEMENT ABOUT THE PROBLEM ........... ...................................................4 RESEARCH METHODOLOGY....... ...................................................................6 QUESTIONNAI RE ............................................................................. ............9 CHAPTERISATION SCHEME ............................................ ............................ 16 Introduction ................................... ........................................................... 16 Background of the Study ......................................................................... ... 16 Research Design ......................................................... ............................... 17 Company profile ............................. ........................................................... 17 APPROACHES OF PER FORMANCE APPRAISAL .............................................. 17 Conclusion. ................................................................................ ................ 18 Bibliography & Annexure .................................... ........................................ 18 List of Tables ..................... ........................................................................ 18 List of figures .................................................................... ........................ 18 Questionnaire ...................................... ...................................................... 18 PERFORMA FOR SYNOPSIS OF PROJECT WORK .......................................... 18 Guides Resume..... ................................................................................ ..... 19 6.1.2 Introduction to the IT System?............................................ ........................... 16 (This Project Synopsis is submitted in partial fulfillment of the requirement of Master of Business Administration, Institute Of Management Technology Centre Di stance Learning, Ghaziabad)

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 1. TITLE OF THE PROJECT A STUDY ON DIFFERENT APPROACHES OF PERFORMANCE APPRAISALS AND EVALUATION OF EMPL OYEE SATISFACTION: A SPECIFIC STUDY IN SOFTWARE AND COMMUNICATION INDUSTRY 2. EXECUTIVE SUMMARY Performance appraisal is an important HRD mechanism. It is the process of evalua ting the performance of employees in terms of the requirements of the job for wh ich they are employed for administrative purpose, including suitable placement, selection, promotion, giving financial rewards and other action which require di fferential treatment between the members if a group as distinguished from action s affecting all the members equally. Earlier performance appraisal was considere d as a simple and confidential method of rating the job performance of individua l employees by their superiors for the purpose of giving those remarks and rewar ds. Early appraisal systems stressed assessment of personality tracts, which wer e difficult not only to measure but also to relate constructively to the job its elf. The purpose of performance evaluation is to generate information to support administrative decisions. The difficulties in measuring performance in software companies like the performance evaluations are highly subjective. Goal setting is ineffective when goals are too simple, when goals of not constitute the goal job, when goal attainment is difficult to prove or measure, when performance is the result of term efforts, peer and subordinate rating not followed no incentiv e for performance, implementation of the appraisal system may not be as planned because of time constraint and span of reports. Over a period of time appraisal become a ritual. To address the above a study was conducted to study the differe nt approaches of appraisals adopted by software companies. A sample of 30 softwa re companies was taken. A structure questionnaire was administered to HR manager s/ executives of different companies to elicit the information. Major findings o f the study include the most common type of appraisal is the open system followe d by MBO, a few companies followed 360 feedback while most of the companies are planning to implement this powerful new model for employee assessment and perfor mance improvement. The positive areas/benefits of the appraisal system followed included training and development inputs, career planning, and objective I setti ng etc.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The criteria or m easures to evaluate an employee in most of the companies are technical competenc e, performance, achievement vs. objectives, key result areas set at the beginnin g of a specific period, forming result oriented areas, leadership skills, team w ork, attitude are behavior oriented areas compensation increase is related to pe rformance and depended on the performance code/rating give. Target is set for em ployee being appraised for a period of 6 months; checklist for carrying out appr aisals and carrier planning is followed. 360 feedback process gives an all round perspective restricting the inconsistency factor that exist in traditional appra isal system. Organizations remove layers of management, flatten their structure, and begin using self-directed terms; the, only practical option for performance feedback is from multiple sources. As organization changes their culture to ali gn with their vision and values, 360 feedbacks becomes an ideal choice to communi cate the new competencies required by the new values. 3. STATEMENT ABOUT THE PROBLEM The research intends to study the different approaches of appraisals adopted by software Companies and employee attitude, employee Satisfaction and industrial m orale. It also analyses the most commonly occurring errors within performance ap praisal methods and to understand the level of effectiveness of 360 appraisal in the industry 3.1 NEED AND IMPORTANCE OF THE STUDY This study is conducted with respect to understanding the different appraisal sy stems conducted in the software industry and their effects thereafter in the sam e. Due to time and resource constraints, the study was restricted to the softwar e industry in Delhi Region . 3.2 OBJECTIVES OF THE RESEARCH 1. To find out the different appraisal systems fo llowed by software companies. 2. To find out who appraises the employees. 3. To analyze and study the benefits of the appraisal systems. 4. To analyze the short comings of the appraisal systems. 5. To identify the criteria and measures adopt ed to evaluate employee performance. 6. To find out the level of effectiveness o f the 360 degree feedbacks. 3.3 REVIEW OF LITERATURE Purpose

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The literature re view section examines the importance of search studies, company data or industry reports that serve as a foundation for the setup of study. The research dimensi on of the related literature and the relevant information begins from an explana tory perspective, approaching towards specific studies which do related to the j udge the limitations and informational gaps in data from the secondary sources. This analysis may reveal conclusions from past studies to realize the reliabilit y of the secondary sources and their credibility. This in turn enables one to re ly on a comprehensive review for the study. ANALYSIS OF PREVIOUS STUDY A survey about current practice, which is followed in companies to appraise performance: ( Phatak, International Dimensions of Manage ment) Almost all software companies responding do have formal appraisal programs . About 93% of smaller organizations (those with fewer than 500 employees) have such programs. About 97% of large organizations have them. Rating scales are by far the most widely used appraisal technique. About 62% of small organization us e rating scales, 20% use essays, and about 19% use MBO. Among the large organiza tions, 51% use rating scales, just over 23% use essays and about 17% use MBO. Ho wever, those using ratings as the main appraisal technique typically also requir e narrative comments to justify rating and to describe employee strengths and we akness and document development plans. Those using essays as the main appraisal technique usually require an overall quantitative performance rating to facilita te employee comparisons for compensation decisions. The employees immediate super visor makes Ninety two percent of appraisals. These appraisals are in turn revie wed by the appraisers supervisor in 74% of the responding organizations. Only abo ut 7% of the organizations use self-appraisal in any part of the overall apprais al process. Virtually all employees (99%) are informed of the results of their a ppraisals. Overall about 77% are given a chance to respond with written comments on their appraisals. In 69% of companies, appraisals are done annually. METHODS OF REVIEWING THE LITERATURE

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The review of lit erature does scrutinize the important research studies. The primary sources that provide relevant information are the best form to retrieve data from the resear ch. The primary sources were encouraged with the help of distribution of questio ners as well as conducting personal interviews. With this the data received enab les the researcher to accurately arrive at the problem of the study and the cons ecutively solutions to the same. The secondary sources were also relied on for a dditional information. It includes company journal, newsletters, records, manual s etc. CONCLUSION Performance management lays an evaluative and developmental di mension to its makeup, and is crucial in both linking rewards to performance and providing a platform for the development of employees. Over concentration on th e assessment of performance can work to the detriment of effort aimed at establi shing the development needs of the individual in an open and honest way. The man ager, as an appraiser, may encounter difficulties in reconciling the roles of j udge and mentor . Managers need to develop the skills of coping with such tens ions in their roles. In some organizations, this problem is solved by having dif ferent managers carrying out performance and development appraisals. Appraisal p rovides the context in which mangers can seek to ensure that there is acceptable congruency between the objectives of the individual and those of the organizati on. 4. RESEARCH METHODOLOGY TYPE OF RESEARCH The research design comprise of the plan and structure of inves tigation conceived so as to arrive at the responses to the research queries. It there by addresses the aims and objectives of the study, both descriptively and analytically. SAMPLING TECHNIQUE The sampling technique adopted for the study is non-probabili ty Random sampling technique according to the convenience of the researcher. A q uestionnaire was administered to HR managers / executives of different software companies to obtain data for the purpose of analysis. SAMPLE SIZE Data is collec ted using a sample of 30 software companies. SAMPLE DESCRIPTION

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The sample mainly consists of data from the primary sources that are utilized fo r the purpose of this study. This is done by means of administrating questioners to human resource managers / executives in different software companies in the city of Bangalore. Secondary data like company journals, newsletters, records et c. were also relied on for retrieving further information. INSTRUMENTATION TECHNIQUE Questionnaire and structure disguised questions. ACTUAL COLLECTION OF DATA Both secondary and primary sources of data are utilized for the purpose of this study. Primary data is collected by means of administering a questionnaire to th e Human Resource Managers / Executives in different software companies. Secondar y data is collected from various records, manuals and other sources of the HR De partment. TOOLS USED FOR TESTING OF HYPOTHESIS In attempting to arrive at a decision about the population on the basis of the s ample information it is necessary to make assumptions or guesses about the popul ation parameters involved such an assumption is called statistical hypothesis, w hich may or may not be true or not is called test of hypothesis or test of signi ficance. In the test of hypothesis it begins with an assumption or hypothesis is called Null Hypothesis. The null hypothesis asserts that there are no significa nt differences between the statistics and the population parameters and whatever observes difference is there merely due to fluctuations in sampling from the sa mple population. Null hypothesis is usually denoted by the symbol, Ho. Any hypot hesis that contradicts the Ho (null hypothesis) is called an alternative hypothe sis and is denoted by symbol H1. hypothesis is Test for proportion. TEST FOR PROPORTION The technique used to test the

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Suppose the population of an attribute in a population is now known, we want to test whether the proportion is a given value P. The null hypothesis is Ho : p = P. The alternative hypothesis is H1: p P. The large random sample of size n from the population, let x units possess the attribute. Then the sample proportion i s p = x/n. And so, Z = p-P PQ n Therefore, the test statistics is | Z | = P = assumed level of effectiveness Q = 1-P p = level of effectiveness of sample n = sample size For the sample, if | Z | cal > k, Ho is rejected .On the other hand, if | Z | ca l < Ho is accepted. OTHER SOFTWARE USED FOR THE DATA ANALYSIS For the data analysis, and the subsequent interpretation the researcher has adop ted advanced version of MS-EXCEL 2000. This application software has facilitated the researcher to construct the frequency table, various kinds of graphs and to find out the average responses from the sample. By this automated data analysis it has minimized the researchers time constraint and reduced human errors and al so accurate outlay of information.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 5. QUESTIONNAIRE There were two questionnaire were designed. First has been designed to assess th e job satisfaction level and morale of the employees in the organization. Second was designed for the HR of the specific software companies. HOW YOU FEEL ABOUT YOUR JOB? The questionnaire consists of nine sections, each section having a number of sta tements. Please answer all the statements. You are requested to be honest and fr ank in your replies. You are not required to write your name. The answers given by you will be kept confidential. Please assess the extent to which each statement describes you and your organiza tion using the following five point rating scale; encircle the most appropriate rating. 1. Strongly Disagree (SD) 2. Disagree (D) 3. Indifferent (I) 4. Agree (A) 5. Str ongly Agree (SA) SECTION I (Personal Details): 1. Age : ______________________________________ 2. Experience in the present org anization: ___________ SECTION II (Job Itself): S.NO : A. 3. SD D I A SA TASK SIGNIFICANCE My performance on the task determines or influences performance of my colleagues also. 1 2 3 4 5 B. TASK IDENTITY

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 4. I feel that th e task(s) I perform need independent charge and cannot be clubbed with some othe r responsibility. 1 2 3 4 5 C. 5. 6. SKILL VARIETY The organization believes in multi-skilling. I am given an opportunity to develo p my skills further to do my job in the organization. 1 1 2 2 3 3 4 4 5 5 D. 7. 8. AUTONOMY I am given independence in important decision-making. There is flexibility and f reedom in the job that I do. 1 1 2 2 3 3 4 4 5 5 E. 9. INTEREST IN WORK My job is usually interesting enough to keep me from being bored. 1 2 3 4 5 10. Most days I am enthusiastic about my work. 1 2 3 4 5 SECTION III (Job Advancement/ Scope For Advancement): S.NO SD GROWTH PROSPECTS / PROMOTIONS 11. I feel I can personally develop or grow in my job. 1 2 3 4 5 D I A SA 12. 13. 14. Promotions decisions are taken objectively. The company has satisfactory promoti on policy. Good performance is also considered in promotion decisions. 1 1 1 2 2 2 3 3 3

4 4 4 5 5 5 SECTION IV (Management Responsiveness): S.NO : A. 15. SD D I A SA RECOGNITION AND APPRECIATION I feel that my efforts are valued in the company. 1 2 3 4 5

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 16. I will be rec ognized and appreciated when I will go beyond what is expected in my job. 1 2 3 4 5 B. 17. FEEDBACK My supervisor(s) constantly provide me feedback, which enable me to improve my p erformance. 1 2 3 4 5 C. 18. MONETARY BENEITS (Pay, Perk, Benefits, Compensation) There is a significant component in my compensation package that is performance linked. 1 2 3 4 5 19. All incentive schemes are transparent. Linkages of incentives with performance a re clear. 1 2 3 4 5 20. Compared with people in similar jobs in other companies, I feel my pay is fair. 1 2 3 4 5 21. I personally feel that monetary rewards alone are not sufficient to motivate me to work better. 1 2 3 4

5 D. 22. SECURITY In my understanding, there is no threat to my job due to redundancy or any other reason. 1 2 3 4 5 E. 23. 24. PARTICIPATION / PARTICIPATIVE MANAGEMENT My superiors involves me in the decision making process. I can express frankly m y feelings and reactions in the meetings and to my senior managers. 1 1 2 2 3 3 4 4 5 5 25. I personally feel that my subordinates have to be given very clear directions to execute their work. 1 2 3 4 5 F. 26. GRIEVANCE HANDLING There is a fairly clear-cut and detailed grievance handling mechanism in place i n my organization. 1 2 3 4 5 G. 27 TRAINING AND LEARNING My company sends people for training when they need to learn new things related to their job profile. 1 2 3 4 5 28. It is my companys express policy to proactively train people from a long term H.R development perspective. 1 2 3 4 5

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION H. 29. 30. COMMUNICATION SYSTEM I am kept informed on what goes on here. I am satisfied with the communication a nd the way information flows around in my organization. 1 1 2 2 3 3 4 4 5 5 I. 31. REWARD Mainly excellence in performance and getting tasks accomplished is rewarded. 1 2 3 4 5 32. Knowledge and expertise are recognized and rewarded here. 1 2 3 4 5 SECTION V (Working Groups & Culture): Factors included in this are: 1. Supervision (Quality of supervision, support fr om supervisors, supervisory treatment, competency of the supervisor) 2. Relation ship with co-workers 3. Support from co-workers 4. Cohesiveness 5. Teamwork 6. C ulture S.NO A. 33. SD SUPERVISION My superior / boss gives me enough freedom to do things in my own way. 1 D I A SA 2 3 4 5 34.

My boss provides me enough guidance about how I should perform my job well. 1 2 3 4 5 35. Supervisors try to use their expertise and competence rather than their formal a uthority in influencing their subordinates. 1 2 3 4 5 B. 36. WORKING GROUPS I feel that we work as a team of mutually complementing individuals in our section / department. 1 2 3 4 5 37. My company provides enough conducive environment formally and informally to work in teams. 1 2 3 4 5

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 38. 39. People ge t along well with each other in my section. The people I work with are very frie ndly and supportive of one another. 1 1 2 2 3 3 4 4 5 5 SECTION VI (Status / Occupational Status): S.NO : 40. I dont care about rank and job titles; its what I am doing is important. 41. I think my position should be reflected through various status symbols, etc. 42. My organization ensures that hierarchical differences are clearly discernible. 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 SD D I A SA SECTION VII (Working Environment): Factors included in this are: 1. Conditions of work, physical environment 2. Working hours 3. Fatigue and mono tony 4. Provision of food 5. Transportation S.NO 43. 44. I have convenient working hours. I feel exhausted by the time I am throu gh with my days work. 45. In a typical days work : We get good lunch and other sna cking items. 46. Transportation to my workplace and back is comfortable experien ce : Because the company has good transportation facilities. SD 1 1 D 2 2 3 3 I A 4 4 SA 5 5 1 2 3 4 5 1 2

3 4 5

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION SECTION VIII (Social Relations): Factors included in this are: 1. Participation in social activities 2. Friends a nd associates. S.NO : 47. 48. My interaction with colleagues extends beyond office hours. Our company organizes lot of events like sports meet, recreational activities, family outing s etc. 1 1 2 2 3 3 4 4 5 5 SD D I A SA SECTION IX (Organizational Commitment): S.NO : 49. I think I can proudly tell the name of the organization I work for. 50. Even if the company would reduce my salary because of financial problems, I would be reluctant to change to another company. 1 2 3 4 5 1 2 3 4 5 SD D I A SA QUESTIONNAIRE FOR HR Name of the Organization: Designation: Total No. Of employees in the Organizatio n 1. Do you appraise an employee by an appraisal system? Yes No 2. If yes, what is the system of appraisal adopted by your company? 3. How often are appraisals carried out in your organization? Quarterly Annually Half Yearly Others (Please Specify)

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 4. What are the criteria used in your company to evaluate an employee? Performan ce Technical Competence Target Vs. Achievement Quality of Output Customer Focus Attendance Key Result Areas 3 Point Scale 5. What is the rating system used in your company? Scoring Both If scoring is it Alpha Both 6. Do you obtain feedback on the person being appraised? Yes No Nume ric Comments 7. How is feedback given to the employees? Written Detailed Self-Assessed Oral S ummarized Manager Assessed 8. Do you share both positive and negative feedback with appraise in the same me eting? Yes No 9. Do you follow a self-assessment of an employee? Yes No a) If yes, is it integrated into the appraisal system you follow? Yes No 10. Is compensation increase related to an appraisal in any way? Yes No 11. Does the appraiser set targets for an employee being appraised? Yes No

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION If yes, for what period? 3 Months 6 Months 3-6 Months 12 Months 12. Do you have a checklist for carrying out appraisals? Yes 13. Do you follow c areer planning? Yes No No 14. What would be the level of effectiveness of 360 score when implemented as a form of appraisal? Less than 20% 35% - 50% 20% - 35% above 50% 6. CHAPTERISATION SCHEME The project would deliver the following topics: Introduction Research design Com pany profile Approaches of performance appraisal Findings, suggestions and concl usions Bibliography and Annexure 6.1. Introduction This chapter would provide a short introduction of what is Per formance Appraisal and the Background of the research and what would be divided on 3 basic chapters as mentioned below. 6.1.1 Background of the Study This chapter would be designed in such a way to provide an overall scenario of t he IT world and the lateral shift of the Methods used and result observed. Almos t all software companies responding do have formal appraisal programs. About 93% of smaller organizations (those with fewer than 500 employees) have such progra ms. About 97% of large organizations have them. 6.1.2 Introduction to the IT System? This chapter will have an elaborate descrip tion of Information Technology and ERP systems. ERP which is one of the latest d evelopments in software for business enterprise wide Resources Planning (ERP) Sy stem is an integrated business management system

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 6.2. Research Des ign The research intends to study the different approaches of appraisals adopted by software Companies. 6.2.1 Statement of the problem It also analyses the most commonly occurring errors within performance appraisal methods and to understand the level of effectiveness of 360 appraisal in the ind ustry 6.2.2 Need and importance of the study This study is conducted with respect to understanding the different appraisal sy stems conducted in the software industry and their effects thereafter in the sam e 6.2.3 Objectives of the study To find out the different appraisal systems followed by software companies 6.2.4 Review of literature The literature review section examines the importance of search studies, company data or industry reports that serve as a foundation for the setup of study. 6.2 .5 Operational definitions of concepts A more comprehensive definition is, Performance appraisal is a formal structured system of measuring and evaluating an employee s job and how the employee can pe rform effectively in future so that the employee, organization all be benefited. " 6.2.6 Research Methodology 6.3. Company profile 6.3.1. Indian IT industry The Indian IT-ITES industry is broadly categorized int o IT services and software, ITES-BPO and Hardware segments. The industry continu es to chart remarkable double-digit growth, with industry aggregate revenue for 2005-06 expected to reach US$ 28 billion. The industry is forecast to grow more than fivefold over FY 1999-06, at a CAGR of 28 percent. 6.3.2. Industry Trends. 6.4. APPROACHES OF PERFORMANCE APPRAISAL Analysis of data was done with the purp ose of summarizing the collected data and organizing these in such a manner that they answer the research questions. Percentage analysis was used for analysis

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION of data and the r esults have been presented by way of pie charts, bar charts, with the help of SP SS package 6.5. Conclusion At the end of the project report we can mention why an organization would and sh ould use an Effective Performance Appraisals techniques and its key benefits. 6.6. Bibliography & Annexure 6.6.1 6.6.2 6.6.3 List of Tables List of figures Qu estionnaire 7. PERFORMA FOR SYNOPSIS OF PROJECT WORK PROFORMA FOR SYNOPSIS OF PROJECT WORK Name: Amit Kursija Address for Corresponde nce : BA/ 45 - B Phase 1 Ashok Vihar Delhi 110052 Mobile No: +91-9873253288 Majo r area of specialization in which project work is to be undertaken: Human Resour ces Questionnaire attached: Yes Resume of Project Guide attached: Yes Consent le tter of Project Guide: Yes Phone No. of Project Guide: 9990688283 Date of submis sion: August 14, 2008 Enrol. No.: 52102420

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 8. Guides Resume As per the guidelines please find below the resume of Mr. Rajiv Malhotra who has guided and helped me design the below project. He also assisted me run this pro ject within our organization and assisted to go get the data from the other soft ware companies in delhi and NCR region, without his approval and help this would not have been possible. Objective To specialize in organization level Human Res ource Planning and Development. To keep developing HR skills and be a part of a dynamic team and help the organization grow, by suggesting and implementing inno vative HR policies and initiatives. Academic profile Master of Personnel Managem ent & Industrial Relations (MPM&IR), 2 Years Full Time Post Graduate Course from Jiwaji University, Gwalior (1999) Higher Diploma in Software Engineering (HDSE) from Aptech. (MS -DOS, Windows 95/98/NT, MS- Office, C, C++, Oracle, D2k, Netwo rking, SSAD, Internet Browsers) (1999) B.Com from Jiwaji University, Gwalior (19 97) Pursuing Diploma in Training & Development from ISTD, Delhi (Final Semester) Work Experience S.NO 1. 2. ORGANISATION Intersoft Data Labs Pvt. Ltd Fidelity Na tional Information Services (Earlier know as Second Foundation India Pvt Ltd) Na tional Dairy Development Board (NDDB) Deus Technology DESIGNATION Manager-HR Ass istant Manager-HR DURATION Aug 2006 Till Date Aug 2005 Aug 2006 3. 4. Deputy Manager-HR Senior Executive-HR Recruiter Aug 2004 Aug 2005 Nov 2002 July 2004 Oct 1999 Nov 2002 August 2006 to Till Date : Intersoft Data Labs Pvt. Ltd., Gurgaon Manager-HR Handling a team of seven HR professionals and overseeing all HR activities of th e organization including recruitment, people practices, employee satisfaction, p erformance management, organizational development, audits (BS7799, ISO27001, CMM i) and compensation management etc. Key Responsibilities HR Strategy and processes o Contributing to HR strategy and ensuring that action plans are created and implemented to implement the strategy. o Identifying Key Result Areas for the processes annually with respect to business Operations with inputs from the business heads and monitoring the implementation of these. o De signing of role competency matrix for each role in the organization. o Documenta tion and release of the Human Resources Manual for the organization. o Designed Developed and implemented People Management policies and processes after benchma rking with the best in the industry and as per company requirements.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Define and implem ent strategies for recruitment & resource management o Define and implement stra tegies for recruitment & resource management. o Define manpower recruitment plan . o Define processes and policies for selection, outsourcing and induction. o In terview and shortlist candidates for interviews with line managers. o Manage Cam pus and Off Campus hire. o Conceptualize and define systems & tools to support R esource Management. o Allocate resources to projects based on projections. o Dev eloping, Monitoring and Maintaining of database on the basis for immediate futur e manpower requirements. Prepare / Update Monthly Manpower Report. Employee Mana gement & Organizational Development o Facilitation of OD Initiatives like compen sation benchmarking, open house, E-Sat etc. o Conducting Exit interview and prep aring Attrition Analysis as part of retention strategy. o Actively participated in Implementation of Quality System for successful certification of BS7799, ISO: 27001 & CMMi. o Ensuring effective HR Services deployment, Process compliance & Service delivery as per SLA. o Sharing information with the employees in differ ent forums. o Taking care of entire employee engagement/retention/welfare. o Emp loyee Satisfaction Index on a quarterly bases to ensure a transparent culture an d healthy environment. Ensuring fulfillment to Internal Customers expectations on time. Counseling employees, from time to time on behavioral attributes, defusin g conflicts, building a congenial and performance friendly work atmosphere. o An choring the employee help-desk. Addressing employee issues and concerns. o Organ izing Get-togethers (Monthly / Annual) like Fun Friday; Employee Day; Family Get togethers; Monthly sports competitions. o Corporate Social Responsibility - Bloo d Donation camps, Computer literacy camps, Philanthropy, o Visits to various NGO . Training and Skill Development o Prepare/Maintain Annual Training Calendar, Tr aining Attendance, Feedback Records, Measuring Training Effectiveness and Traini ng Analysis. o Plan for and schedule the induction events in anticipation of the dates of joining of Individuals. Ensure completion of joining formalities in te rms of process steps and documentation. o Skill Inventory Application Maintenanc e. Performance Management o Ensuring a fair and transparent process of appraisal through feedback sessions with employees and Human resource presence (where nec essary). o Managing the overall Appraisal process Policy Formulation & Clarifica tion, communication / rollouts, coaching employees / managers in writing effecti ve appraisals, Data Validation, Goal Setting, Self Appraisal, Appraiser evaluati on, Reviewer evaluation, identifying development plans for employees conducting ensuring the appraisal process is closed with the time line. o Performance Norma lization meetings, Post-Appraisal data mapping, analysis and finalization of rew ards. August 2005 to August 2006 : Fidelity National Information Services (Earlier know as Second Foundation India Private Limited), Chandigarh Assistant Manager-HR Company Profile Fidelity National Information Services (Earlier know as Second F oundation India Private Limited), a leading provider of global software services , specializes in Business Intelligence, Software Security and Web Services solut ions. It houses more than 650 employees.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Job Responsibilities Policies & Procedures o Drive the design and implementation of HR strategies in a high growth environment and also formulate comprehensive HR policies. o Design ed Developed and implemented People Management policies and processes after benc hmarking with the best in the industry and as per company requirements. o Docume ntation of policies & processes necessary for smooth implementation of policies. Regular review of policies & process improvements. Capacity Planning and Recrui tment o Preparing and monitoring recruitment plan o Ensuring acquisition of the best talent through a process of recruitment tests and interviews. o Plan for Ca mpus and Off Campus hire and its implementation. o Sourcing talent and their Ref erence Check; Background and employment verification. Performance Management o A ssisted in review and implementation of effective performance appraisal uniforml y all across the organization. o Defining various roles within the organization as well as skill required at each level. (Job and Role Descriptions). Defining t he organization structure and career progression path. o Manage Goal Setting Exe rcise. OD Initiatives o Facilitating healthy organizational culture by promoting open house discussions, suggestion schemes, E-Sat (ESS), Intranet etc. o Employ ee Engagement activities like Open House, Monthly Events, Employee Events, Celeb rations, Yoga Classes, Grievance Handling etc o Manage exit formalities. Conduct exit interviews, analysis and finalize F&F settlement. Actively participated in Implementation of Quality System for successful certification of ISO: 9001:2000 . Trainings o Organizing training programmes for existing employees and freshers hired through campus & offcampus. o Organising Induction trainings for new hire s. o Identification of behavioral and technical training needs. o Generating fee dback from the trainees with regard to the benefits drawn from the training. Com pensation Management o To gather and update information about the compensation/s alary, employee welfare and incentive schemes with respect to competitors vis--vis market intelligence. o Improve communication of policies and benefits through B enefits campaigns; Policy clarification sessions for the HR and Resourcing team; Timely response to queries on policies and benefits. o Conduct Salary benchmark ing exercises. o Active interaction with Resourcing team for taking inputs on ma rket trends and equip them with recruitment guidelines. Compliance o Shops and E stablishment o PF Compliance o Payroll o Contractual staff o Mediclaim Insurance

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION August 2004 to Au gust 2005 (Gujarat) : National Dairy Development Board (NDDB), Anand Deputy Manager-HR Company Profile The NDDB is a Public Financial Institute and w as created to promote, finance and support producer-owned and controlled organiz ations. Fundamental to NDDB s efforts are cooperative principles and the Anand P attern of Cooperation. It houses more than 1500 employees. Job Responsibilities Human Resource Information System (HRIS)- ERP Implementation o Undertake necessa ry actions for implementation of HRIS (ERP-Orion) module. o Provide support/inpu ts in context of problems arising during implementation. o Continually monitor H R/Client information needs and design new/modify existing system to meet changin g requirements. o Provide accurate, timely responses to information requests fro m operating groups, Support Group and others as appropriate. o Design, generates and distributes a variety of reports and statistical summaries. Prepare and sub mit periodic, recurring activity & status reports to superiors Training & Develo pment o Devising an Induction Intersoft Data Labs Pvt. Ltd, Compensation, etc. o Organizing training programmes for Officers & Staff, Identification of training needs, Generating feedback from the trainees with regard to the benefits drawn from the training. Performance Management o Process the Appraisals of the employ ees, Initiation appraisal forms and follow-up for timely receipt of the same. o Assisted in Six Monthly & Annual Performance Feedback. Operations o Responsible for personnel functions like joining, LTA, Separation, Full & Final Settlement, etc, Formulation of Organization Structure. o Employee grievance handling. Issua nce of Various Certificates i.e. NOC for Passport, NOC for Visa, Verification, R esidence Proof, Service Certificates etc. o Periodic Voluntary Medical Check-up (PVMC), Permission for Higher Studies, Training/Visits Abroad. Proposals to MD f or approval for various other purposes. o Implementing formal system of Internal Communication- Interaction meeting with Unions, Other participative Forums. o W elfare activities for employees and their family members. o Liaisoning with All Department Heads regarding HR related matters. Oct 1999 to July 2004 : Deus Tech nology, Delhi Senior Executive HR Recruiter (Nov 2002 to July 2004) (Oct 1999 to Nov 2002) Job Responsibilities Recruitment & Selection o Organizing the entire recruitment process. o SourcingAd vertising, Job portals, Consultants, Referrals, Head hunting, cold calling, Inte rnet researching Getting References etc. o Maintaining targets & quality. o Init ial screening, Scheduling & Coordinating for further Interviews. o Responsible f or recruitments at all levels and spheres (National/Overseas) o Offer Negotiatio ns & Follow up, Reference Checking. o Generation of activity reports and analysi s.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION o Induction, Veri fy credentials if required through verification process, Statutory compliance, C onfirmations, Probation reports, Confirm / Extension / Termination. Performance Appraisal o To organize Appraisals as per the policy and to Ensure A ppraisals are done and are in order. o Performance evaluation and compilation an d finalization of rewards. o Issue promotion / increment letter as applicable. P ayroll Management o Responsible for preparing Salary statement every month with all necessary deduction and timely o disbursement. o Providing salary statement and monthly report to accounts department on a monthly basis. Operations o Atten dance & Leave Management, Full & Final preparation, Exit Interviews, Employees C ommunication, Employees Database Management etc. o Introduced Suggestion Box and Movement Register in the organization. o Drafting of Offer Letters, Appointment Letters, and Experience Letter, Relieving Letter, Increment Letter, and Salary Certificate etc. o Issue of Warning Letters, Maintaining Discipline Maintenance of harmonious Relation. o Design and regularly updating the HR manual. o Organiz ing employees get-togethers and parties to celebrate the special occasions. o In duction Trainings, Training to Resource Executives. o Ensure compliances w.r.t. PF, Gratuity, Shops & Establishment Act, etc. o General administration activitie s-Telephone/Fax, Library Management, Hotel & Travel Arrangement, etc. Professional Memberships Details o Individual Life Member of National HRD Network (NHRDN), Delhi Chapter. o Stude nt Member of Indian Society for Training & Development (ISTD), Delhi Chapter. Or ganisation Training Details Training/Membership Training on Metrics Introduction to CMMi Business Communicat ion Stress Management Training On ESI, PF, Bonus, Gratuity Personnel Functions ( OJT) Grievance Handling (ST) Personal Details Date Of Birth Permanent Contact Ad dress Phone Passport No Driving License No. 17th Jan, 1977 Bhardwaj Sadan, City Ce ntre, Opposite BSNL Building, Tulsi Vihar, Gwalior (M.P)-474011. 0751-223876 A85 39380 Y-1964/20 Organisation Intersoft Data Labs Pvt. Ltd. Intersoft Data Labs P vt. Ltd. FIS (Second Foundation) NDDB ATC Infotech (P) Ltd Flex Industries Ltd H TC Ltd Duration Half Day 1 Day 2 Days 1 Day 1 Month 3 Months 2 Months Date May 2 8, 2007 Apr 12, 2007 May 12-13, 2006 Jan 2005 April-May 2000 1999 1998

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 1.1 Background of the Study Information technology (IT) revolutionized many aspects of a business. There is hardly any organization which has not installed at least one ubiquitous computer . There is a wide choice for computer users - from a simple PC to sophisticated network of computers. Applications of computers in various function is common th ese days; from mere data storage to more advanced software packages like ERP whi ch can do many things in an organization but fortunately, cannot substitute comm on sense or human ingenuity. It is well to remember that IT is one more tool in hands of a management to get things better and faster. Example of IT application , ERP which is one of the latest developments in software for business enterpris e wide Resources Planning (ERP) System is an integrated business management syst em which covers some important aspects of business such as logistics, production , finance, accounts, human resources, planning, materials and warehouse manageme nt. Right from the receipt of an inventory, an ERP system tracks materials, capa city and labor resources. Thus an ERP system package claims to aid a business to manage it activates dynamic and integrated manner. But it is equally important to understand and appreciate the flip side of such sophisticated IT packages lik e ERP. First of all the people ho handle such a package must be qualified and mu st posses relevant work experience in the functional module, which a person want s to get trained. An organization, which wishes to work with ERP, must have alre ady had experience with proper working IT infrastructure. There should be enough number of terminals for concerned people to key in data or run a query. One of the toughest things to overcome is the attitude of the people for adapting to a change. Thus ushering in a new "IT culture" remains one of the greatest challeng es for any management interested in adapting IT as a tool in as many functions o f the organization as possible.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The vital role of IT is to support a management and not control it. Thus the IT most understands their role vis--vis decision-making. Just because a sophisticate d IT package has been installed in an organization cannot guarantee success .If for example, a vendor is supplying poor quality supplies consistently, the infor mation system will tell the management of such a fact faster. But now it is up t o the management to initiate corrective measures- visit vendor to assist him to come up to standard, develop alternate vendor or import. Some cautious managemen t would like to implement information system module by module to gain experience . Such a procedure may or may not guarantee success. Some IT experts urge an org anization to implement a total IT system such as ERP-a classic case of all or bu st. In the enthusiasm to appear very modern and up-to date a management may go i n for IT package when the ground reality within the organization is not conducti ve to such a drastic change. On the other hand a few well-tried techniques do wo nders for an organization. For example, an organization s urgent need may be to change existing technology to an upgraded one. An ERP package obviously, won t t ell the management to do just that. Also, a few time -honored principles like "d o it right at the first time" must be followed in an organization with or withou t a sophisticated IT tools. A responsible management will put the IT in its plac e to serve the overall business interests. 2.1 Statement of the Problem

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The research intends to study the different approaches of appraisals adopted by software Companies. It also analyses the most commonly occurring errors within p erformance appraisal methods and to understand the level of effectiveness of 360 appraisal in the industry 2.2 Need and Importance of the Study This study is conducted with respect to understanding the different appraisal sy stems conducted in the software industry and their effects thereafter in the sam e. Due to time and resource constraints, the study was restricted to the softwar e industry in Bangalore City. 2.3 Objectives of the Research 1. To find out the different appraisal systems followed by software companies. 2 . To find out who appraises the employees. 3. To analyze and study the benefits of the appraisal systems. 4. To analyze the shortcomings of the appraisal system s. 5. To identify the criteria and measures adopted to evaluate employee perform ance. 6. To find out the level of effectiveness of the 360 degree feedbacks.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 2.4 Review Of Literature Purpose The literature review section examines the importance of search studies, company data or industry reports that serve as a foundation for the setup of study. The research dimension of the related literature and the relevant information begin s from an explanatory perspective, approaching towards specific studies which do related to the judge the limitations and informational gaps in data from the se condary sources. This analysis may reveal conclusions from past studies to reali ze the reliability of the secondary sources and their credibility. This in turn enables one to rely on a comprehensive review for the study. Analysis of previous study A survey about current practice, which is followed in companies to appraise perf ormance: ( Phatak, International Dimensions of Management) Almost all software c ompanies responding do have formal appraisal programs. About 93% of smaller orga nizations (those with fewer than 500 employees) have such programs. About 97% of large organizations have them. Rating scales are by far the most widely used appraisal technique. About 62% of small organization use rating scales, 20% use essays, and about 19% use MBO. Amo ng the large organizations, 51% use rating scales, just over 23% use essays and about 17% use MBO. However, those using ratings as the main appraisal technique typically also requ ire narrative comments to justify rating and to describe employee strengths and weakness and document development plans. Those using essays as the main appraisa l

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION technique usually require an overall quantitative performance rating to facilita te employee comparisons for compensation decisions. The employees immediate super visor makes Ninety two percent of appraisals. These appraisals are in turn revie wed by the appraisers supervisor in 74% of the responding organizations.Only abou t 7% of the organizations use self-appraisal in any part of the overall appraisa l process.Virtually all employees (99%) are informed of the results of their app raisals. Overall about 77% are given a chance to respond with written comments o n their appraisals. In 69% of companies, appraisals are done annually. Methods of reviewing the literature The review of literature does scrutinize the important research studies. The pri mary sources that provide relevant information are the best form to retrieve dat a from the research. The primary sources were encouraged with the help of distri bution of questioners as well as conducting personal interviews. With this the d ata received enables the researcher to accurately arrive at the problem of the s tudy and the consecutively solutions to the same. The secondary sources were als o relied on for additional information. It includes company journal, newsletters , records, manuals etc. Conclusion Performance management lays an evaluative and developmental dimension to its mak eup, and is crucial in both linking rewards to performance and providing a platf orm for the development of employees. Over concentration on the assessment of pe rformance can work to the detriment of effort aimed at establishing the developm ent needs of the individual in an open and honest way. The manager, as an apprai ser, may encounter difficulties in reconciling the roles of judge and mentor . Managers need to develop the skills of coping with such tensions in their role s. In some organizations, this problem is solved by having different managers ca rrying out performance and development appraisals. Appraisal provides the contex t in which mangers can seek to ensure that there is acceptable congruency betwee n the objectives of the individual and those of the organization.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Although one recognizes the part played by performance management in the determi nation of rewards, we believe that if treated as a way of providing feedback on progress and of jointly agreeing the next set of aims, the appraisal can have a positive effect on individual motivation. 2.5 Operational Definition of Concepts Performance Appraisal Performance appraisal is the assessment of an individual s performance in an per formance in a systematic way, the performance being measured against such factor s as job knowledge, quality and quantity of output, initiative, leadership abili ties, supervision, dependability, co-operation, judgment, versatility etc. asses sment should not be confined to the past performance alone. Potentials of the em ployee for the future performance must also be assessed. Performance appraisal c an be defined as "the systematic evaluation of the individual with respect to hi s or her performance on the job and his or her potential for development". A mor e comprehensive definition is, Performance appraisal is a formal structured syste m of measuring and evaluating an employee s job and how the employee can perform effectively in future so that the employee, organization all be benefited." Performance appraisal, to common understanding, is the formal and informal asses sment of the performance of the employee at work. In an informal system we are a ware that superior is continually making judgments about their subordinates per formance on a subjective basis. By contrast, superiors could resort to using for malized appraisal techniques when assessing the performance of subordinate, and these judgments arc considered to be more objective. In formalized systems the t erms performance appraisal and performance management are used. Both refer to a process where by mangers and their subordinates share understanding about wha t has to be accomplished, and the manager will naturally be concerned about how best bring about those accomplishments by adept management and development of pe ople in short and long terms. Also, performance would be measured using

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION the techniques discussed in this chapter and it will be subsequently related to targets or plans. In this way the subordinate receives feedback on his or her pr ogress. A distinguished feature of performance management is its integrating strength in aligning various processes with corporate objectives: for example, the introduc tion of performancerelated payment system and mobilization for training and deve lopment resources to achieve corporate objectives. Measuring Performance In many organizations, the feedback on job performance is ambiguous or is given annually as a ritualistic exercise. Many subordinates therefore have trouble in gasping how their efforts are perceived by the organization. Almost every one wh o has worked at a job can remember times when they were unclear on how their per formance was being judged. The annual performance appraisal system tends to serv e only a little purpose: salary administration, training and succession planning . But this is not the sole objective of performance appraisal. These objectives will only dilute and weaken the clarity and validity of any appraisal system. Mo st organization ties the formal appraisal system directly to salary increase, wh ich decrease their validity.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION It is therefore very important for organizations to: (a) Link Salary and Status Realistically to the Performance Appraisals Most personnel departments have a ve ry narrow outlook to appraisals. The general view is to receive the appraisal fo rms at a date (which usually is the deadline), issue instructions regarding incr ements and promotions, receive the data regarding the same and they issue letter s to the concerned employee informing of their salary increase. The appraisal pr ocess gets polluted as the appraiser and appraise have at the back of their mind s promotion and salary increase, rather than performance plans and participative reviews. This dilutes the objectives of appraisal to great extent. In fact, if organizations create, a culture of continuous feedback on the performance they w ould be making the appraisal system more relevant. Several organizations have al ready started delinking performance appraisal from salary increase. (b) Making O bjectives of Performance Appraisals Clear to All Employees If performance apprai sal should not directly be linked to salary increase the question then arises, w hat should the objectives of performance appraisals be that could be realistical ly achieved? Some suggestions: To do joint goal setting, and link the goals to he organizational objectives To provide role clarity by defining Key Result area s for Accounting. To establish a level of performance in the current job and see k ways of improving it. To identify potential for development and to support the total process of planning To increase communication between the appraiser and t he appraise. To identify factors that facilitate performance and other factors t hat hinder performance. To help the employees identify and recognize their own s trengths and weaknesses. To make them assess their own competencies and how the same can be multiplied and improved. To generate data about the employee for var ious decisions like transfers, rewards, job-rotation, etc.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION (c) Focus on Developmental Appraisals Managers should develop part ownership in the employee s future. Any good appraisal system should focus on developmental a ppraisal. Developmental appraisal mean that an organization needs to develop not just isolated performance appraisal tool/system, but the total frame work for t he individuals development, improvement in job and level of competence and prepa ring employees for future jobs. Thus, appraisal of people, which is a part of th e total HRD system, lies to be linked to long-term development activity and carr ier planning. Organizations have to show vision for the future. Vision, strategi es and objectives will give rise to individual objectives and performance standa rds. The immediate rewards and recognition do not lead to enduring performance a nd upgrading of competence and therefore are not real motivators. The appraisal as a tool not only gives the individual and the organization the idea of where t he individual stands in terms of his skills, competencies and abilities, but als o monitors the process of growth and development, together with the inputs that are required to develop a high level of competence by individuals. (d) Let Emplo yees Appraise Their Own Performance Subordinates need feedback more often on the ir performance. The best way to do it is to let them appraise their own performa nce.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Self-appraisal would 1) Motivate the employee to take more responsibility for hi s/her own performance. 2) Focus on the job behavior only. 3) Reduce ambiguity in performance and focus on change in job behavior. When subordinates undertake se lf-appraisal, they analyze their job duties and how key issues in a job they han dle. Each individual may rate himself or herself. Self-appraisal may focus on co st control, communication, planning, training, delegation and decision-making. A fter self-appraisal, the subordinate discusses the ratings with his/her direct r eport or superior to get a feed back on performance. Both then come to an agreem ent in areas of convergence and draw a job improvement plan. (e) Create a Climat e for Open Appraisals in Organizations In most organizations, the concept of ope n appraisal is misunderstood. Open appraisal does nut mean that the appraisal ra tings are shown by the subordinate, and his/her signature is then obtained. What it does mean that both the appraiser and the appraise share their views on perf ormance with each other, identify the areas of improvement and work towards it. One of the objectives of open communication between the appraiser and the apprai se is to bring them together to solve organizational problems and performance re lated problems. The quality of ratings is likely to improve if there is shared u nderstanding between the appraiser and the appraise. (f) Muscle Builds the Organ ization In today s competitive world, raising performance goals is essential. Th is entails analyzing the company s current situation, projecting the future, est ablishing higher expectations, and selling the top management on the upgrading p rocess and developing an action plan.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Muscle builds the organization by 1) Enhancing your own performance 2) Accelerat ing the professional growth of the best performers 3) Not tolerating managerial performers. One cannot muscle build the organization, unless marginal performers are replaced. 4) Developing multiple skills and competencies by worshiping succ ess and potential. (g) Build Commitment in the Workplace Change is an inevitable part of manager s job. As conditions change, individual responsibilities are al so expected to change. In commitment-based approach, the workplace, jobs are des igned to be broader than before, team accountability is as important as individu al accountability for performance. The performance expectations are high and emp hasize continuous important in the workplace. Managers have to stop being my top ic to performance appraisals. No personnel professional in the 90 s will be able to afford the luxury of myopia. We have to see our way to the various changes i n environment that are taking place and those changes that will revolutionize ou r organization culture in the out coming years. We must help our organization s triumphant progress through the 90s, by recognizing and rewarding performance. METHODS OR TECHNIQUES OF APPRAISAL Broadly all the approaches to appraisal can be classified into: a) Past Oriented Methods and b) Future Oriented Method

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION a) Past Oriented Methods Rating Scales This is the simplest and most popular technique for appraising emp loyee performance. The typical rating scale system consists of several numerical scales, each representing a job-related performance criterion such as dependabi lity, initiative, output, attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performan ce level on each criterion, and then computes the employees total numerical score . The number of points scored may be linked to salary increases etc. Checklist U nder this method, a checklist of statements on the traits of the employee and hi s or her job is prepared in two columns viz., a Yes column and a No column. All that the rater should do is to tick the Yes column if the statement is positive and in column No if the answer is negative. After ticking off against each item, the rat er forwards the list to the HR department where the actual assessment of the emp loyee takes place. In other words, the rater only does the reporting, while actu al evaluation is done by the HR department. The HR department assigns certain po ints to each Yes ticked. Depending on the number of Yes the total score is arrived a t. When points are allotted to the checklist, the technique becomes a weighed ch ecklist. Forced Choice Method Here, there would be certain statements mentioned and the appraiser will only have to select the appropriate statement that suits the appraise. This is called as Forced Choice Method because here, the appraiser has no freedom at all. He only has a few statements that he will have to select that suit the appraise. The list is then forwarded to the HR Department who wil l do the assessment. There will be points given to each of the individual statem ents.

Forced Distribution Method One of the errors in rating is leniency clustering a large number of employees around a high point on a rating scale. The forced distribution method seeks to

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION overcome the problem by compelling the rater to distribute the rates on all poin ts on the rating scale. The method operates under an assumption that the employe e performance level conforms to a normal statistical distribution. Generally, it is assumed that employee performance levels conform to a bell shaped curve. For example, the following distribution might be assumed to exist - excellent 10%, good 20%, average 40% below average 20% and unsatisfactory 10%. The major weakne ss of the forced distribution method lies in the assumption that employee perfor mance levels always conform to a normal (or some other) distribution. In organiz ations that have done a good job of selecting and retaining only the good perfor mers, the use of forced distribution approach would be unrealistic as well as po ssibly destructive to the employee morale. One merit of this approach is that it seeks to eliminate the error of leniency. This technique is however not accepta ble by most of the rates and rates. Critical Incidents Method This method of emp loyee assessment has generated a lot of interest these days. This approach focus es on certain critical behaviors of an employee that make all the differences be tween effective and non-effective performance of a job. Such incidents are recor ded by the superiors as and when they occur. One of the advantages of this metho d is that the evaluation is based on actual job behavior. Further, the approach has descriptions in support of particular ratings of an employee. Giving job rel ated feedback to the rate is also easy. It reduces bias on the part of the rater s. The method however has significant limitations. These include: a) Negative in cidents tend to get noticed more than positive incidents. b) Recording is a chor e, so supervisor could easily forget. c) Overly close supervision may result. Be haviorally Anchored Rating Scales (BARS)

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Behaviorally anchored rating scales, sometimes called as Behavioral Expectation Scales are rating scales whose scale points are determined by statements of effe ctive and ineffective behaviors. They are said to be behaviorally anchored in th at the scales represent a range of descriptive statements of behavior on each sc ale best described and employees performance. Behaviorally anchored rating scales (BARS) have the following features: 1. Areas of performance to be evaluated are identified and defined by the people who will use the scales. 2. The scales are anchored by descriptions of actual job behavior that, supervisors agree, repres ent specific levels of performance. The result is a set of rating scales in whic h both dimensions and anchors are precisely defined. 3. All dimensions of perfor mances to be evaluated are based on observable behaviors and are relevant to the job being evaluated since BARS are tailor made for the job. 4. Since the raters who will actually use the scales are actively involved in the development proce ss, they are more likely to be committed to the final product. BARS were develop ed to provide results, which subordinates could use to improve performance. Supe riors would feel comfortable to give feedback to the rates. Further BARS help to overcome rating errors. Unfortunately, this method too suffers from distortions inherent in most rating techniques.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION

Essay Method Here, the rater must describe the employee within a number of broad categories such as. 1. The raters overall impression of the employees performance. 2. The pr omotability of the employee 3. The jobs that the employee is now qualified or ca pable to perform 4. The strengths and weakness of the employee 5. The training a nd development assistance required by the employee. Although, this method might be used individually, it is most frequently used in combination with others. It is extremely useful in filing information gaps about the employees that often oc cur in the better-structured checklist method. Cost Accounting Method This metho d evaluates performance from the monetary returns the employee yields to his or her organization. A relationship is established between the cost included in kee ping the employee and the benefit the organization derives from him or her. Perf ormance of the employee is then evaluated based on the established relationship between the cost and the benefit. b) Future Oriented Method Management by Objectives (MBO) The concept of MBO conceived by Peter F. Drunker, reflects a management philosophy which values and utilized employee contributio ns. Applications of MBO in the field of performance appraisals are a recent thin king. The working of MBO can be described in four steps: The first step is to es tablish the goals each person is to attain. These goals can be used to evaluate employee performance. The second step involves setting the performance standard for the subordinates in a previously arranged time period. As subordinates perfo rm, they know fairly well what there is to do, what has been done and what remai ns to be done.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The third step, the actual level of goal attainment is compared with the goals a greed upon. The evaluator explores reasons for the goals that were not met and f or the goals that were exceeded. This step helps determine possible training nee ds. It also alerts the superior to conditions in the organization that may affec t a subordinate but over which the subordinate has no control. The final step in volves establishing new goals and possibly, new strategies for goals not previou sly attained. Psychological Appraisals Large organizations employ full time indu strial psychologists. When psychologists are used for evaluations, they assess an individuals future potenti al and not past performance. The appraisal normally consists of in-depth intervi ews, psychological tests, discussions with superiors and a review of other evalu ations. The psychologist then writes an evaluation of the employees intellectual, emotional, motivational and other related characteristics that suggest individu al potential and my predict future performance. The evaluation by the psychologi st may be for a specific job opening for which the person is being considered, o r it may be a global assessment for his or her future potential. From these eval uations, placement and development decisions may be made to shape the persons car eer. 360 Degree Appraisal This is a technique of appraisals wherein multiple rat es are involved in evaluating performance. This is understood as a systematic co llection of performance data on an individual or group, derived from a number of stakeholders the stakeholders being the immediate supervisors, team members, cu stomers, peers and self. In fact, anyone who has any information on how an employ ee does the job may be one of the appraisers. This provides a broader perspective about an employees performance. In addition, the technique provides for greater self-development of the employees. For an employees development multi-source fee dback is very useful as it enables the employee to compare his or her perception s of self with the perceptions of others.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 360-DEGREE FEEDBACK DEFINED 360 feedback is a relatively new feature of performance management. 360 feedback h as been defined by Ward (1995) as: The systematic collection and feedback of per formance data on an individual or group derived from a number of stakeholders on their performance. The data is usually fed back in the form of ratings against various performance dimensions. 360 feedback is also referred to as multi-source assessment or multi-rater feedback. 360-DEGREE FEEDBACK METHODOLOGY 1. The Questionnaire 360 feedback processes usually obtain data from questionnaires, which measure fro m different perspectives the behaviors of individuals against a list of competen cies. The competence model may be developed within the organization or the compe tency headings may be provided by the supplier of the questionnaire. The dimensi ons may broadly refer to leadership, management and approaches to work. 2. Ratings Ratings are given by the generators of the feedback on a scale against each head ing. This may refer both to importance and performance, as in the questionnaire, which asks those completing it to rate the importance of each item on a scale o f 1 (not important) to 6 (essential) and performance on a scale of 1 (weak in th is area) to 6 (outstanding). 3. Data Processing Questionnaires are normally processed with the help of software developed within the organization or, most commonly, provided by external suppliers. This enable s the data collection and analysis to be completed swiftly, with the minimum of effort and in a way that facilitates graphical as well as numerical presentation .

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 4. Feedback The feedback is often anonymous and may be presented to the individual (most com monly) to the individuals manager (less common) or to both the individual and the manager. Some organizations do not arrange for feedback to be anonymous. Whethe r or not feedback is anonymous depends on the organizations culture the more open the culture, the more likely is the source of feedback to be revealed. 5. Action The action generated by the feedback will depend on the purposes of the process, i.e. development, appraisal or pay. If the purpose is primarily developmental, the action may be left to individuals as part of their personal development plan s, but the planning process may be shared between individuals and their managers if they both have access to the information. Even if the data only goes to the individual, it can be discussed in a performance review meeting so that joint pl ans can be made, and there is much to be said for adopting this approach.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION

360-Degree Feedback Advantages and Disadvantages Individuals get a broader perspective of how they are per reviously possible. Increased awareness of and relevance of competencies Increas ed awareness by senior management that they too have development needs. More rel iable feedback to senior managers about their performance. Gaining acceptance of the principle of multiple stakeholders as a measure of performance. Encouraging more open feedback new insights. Reinforcing the desired competencies of the bu siness. Provided a clearer picture to senior management of individuals real worth (although there tended to be some halo effect syndromes). Clarified to employees c ritical performance aspects. Opens up feedback and gives people a more rounded v iew of performance than they had previously. Identifying key development areas f or the individual, a department and the organization as a whole. Identify streng ths that can be used to the best advantage of the business. A rounded view of an individuals / teams / the organization performance and what its strength and we akness are It has raised the self awareness of people managers of how they perso nally impact upon others positively and negatively It is supporting a climate of continuous improvement It is starting to improve the climate / morale, as measu red through out employee opinion survey Focused agenda for development. Forced l ine managers to discuss development issues. Perception of feedback as more valid and objective, leading to acceptance of results and actions required. But there may be problems. These include:

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION People not giving frank honest feedback; People being put under stress in receiv ing or giving feedback; Lack of action following feedback; Over-reliance on tech nology Too much bureaucracy These can all be minimized if not avoided completely by careful design, communication, training and follow-up. 360-DEGREE FEEDBACK CRITERIA FOR SUCCESS 360-Degree is most likely to be successful when; It has the active support of to p management who themselves take part in giving and receiving feedback and encou rage everyone else to do the same. There is commitment everywhere else to the pr ocess based on briefing, training, and an understanding of the benefits to indiv iduals as well as the organization. There is a real determination by all concern ed to use feedback data as the basis for development. Questionnaire items fit or reflect typical and significant aspects of behavior. Items covered in the quest ionnaire can be related to actual events experienced by the individual. Comprehe nsive and well-delivered communication and training programs are followed.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION APPRAISAL ERRORS None of the methods for appraising performance is absolutely valid or reliable; each method has its own strengths and weakness. Let us try to understand the mos t commonly occurring errors within performance appraisal methods. 1. Error of Central Tendency: This refers to the tendency of not using extreme scale scores on the judgment sc ale; most of the rates are clustered in the middle. 2. Error of Leniency: This is caused by the tendency of the lenient rater to put most of the rates on the higher side of the scale, while a tough rater places them on the lower side of the scale. 3. Halo Effect: In other words, it is tendency to allow the assessment on one trait to influence assessment on others. This usually arises when traits are unfamiliar, ill defin ed and involved personal reactions. 4. Error in Unreliability: This error occurs when there is the existence of inconsistency in the evaluation s of a group of employees by two / more appraisers. 5. Personal Bias: This error occurs when there exists a close relationship between the appraiser a nd the appraise. This tends to influence the evaluation. The scores could be on the higher when there would be a bias on the side of the appraiser. Therefore, t he scores given could tend to be higher then what the appraise deserves. This wo uld give the appraise an undue advantage for the appraise during the times of pr omotions, pay rise etc. the same could happen vice versa too if an appraiser doe s not share a good relationship with the appraise, he could tend to give absolut ely low scores for the appraise. 5. No Consultation

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION There would tend to be an error in the scores if the appraiser just goes on givi ng scores without discussing with the appraise. If the appraise would not be giv en his say in the matter, the score will not reflect the actual capability of th e appraise. 6. Spill over Effect This refers to allowing past performance appraisal ratings to unjustifiably infl uence current ratings. 7. Status Effect: It refers to over rating of employed in higher level job or jobs held in high es teem, and under rating employees in lower level job at job held in low esteem. 2.6 Research methodology Type of Research The research design comprise of the plan and structure of investigation conceive d so as to arrive at the responses to the research queries. It there by addresse s the aims and objectives of the study, both descriptively and analytically. Sampling Technique The sampling technique adopted for the study is non-probability Random sampling technique according to the convenience of the researcher. A questionnaire was ad ministered to HR managers / executives of different software companies to obtain data for the purpose of analysis.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Sample Size Data is collected using a sample of 30 software companies. Sample Description The sample mainly consists of data from the primary sources that are utilized fo r the purpose of this study. This is done by means of administrating questioners to human resource managers / executives in different software companies in the city of Bangalore. Secondary data like company journals, newsletters, records et c. were also relied on for retrieving further information. Instrumentation Technique Questionnaire and structure disguised questions. Actual Collection of Data Both secondary and primary sources of data are utilized for the purpose of this study. Primary data is collected by means of administering a questionnaire to th e Human Resource Managers / Executives in different software companies. Secondar y data is collected from various records, manuals and other sources of the HR De partment. Tools used for testing of hypothesis In attempting to arrive at a decision about the population on the basis of the s ample information it is necessary to make assumptions or guesses about the popul ation parameters involved such an assumption is called statistical hypothesis, w hich may or may not be true or not is called test of hypothesis or test of signi ficance. In the test of hypothesis it begins with an assumption or hypothesis is called Null Hypothesis. The null hypothesis asserts that there are no significa nt differences between the statistics and the population parameters and whatever observes difference is there merely due to fluctuations in sampling from the sa mple population. Null hypothesis is usually denoted by the symbol, Ho. Any hypot hesis that contradicts the Ho (null hypothesis) is called an alternative hypothe sis and is denoted by symbol H1. hypothesis is Test for proportion. The techniqu e used to test the

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Test for Proportion Suppose the population of an attribute in a population is now known, we want to test whether the proportion is a given value P. The null hypothesis is Ho : p = P. The alternative hypothesis is H1: p P. The large random sample of size n from the population, let x units possess the attribute. Then the sample proportion i s p = x/n. And so, Z = p-P PQ n Therefore, the test statistics is | Z | = P = assumed level of effectiveness Q = 1-P p = level of effectiveness of sample n = sample size For the sample, if | Z | cal > k, Ho is rejected .On the other hand, if | Z | ca l < Ho is accepted. Other Software used for the data analysis For the data analysis, and the subsequent interpretation the researcher has adop ted advanced version of MS-EXCEL 2000. This application software has facilitated the researcher to construct the frequency table, various kinds of graphs and to find out the average responses from the sample. By this automated data analysis it has minimized the researchers time constraint and reduced human errors and al so accurate outlay of information. PROFILE OF SOFTWARE INDUSTRY SOFTWARE INDUSTRY

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 3.1 Indian IT - ITES Industry: The Indian IT-ITES industry is broadly categorize d into IT services and software, ITES-BPO and Hardware segments. The industry co ntinues to chart remarkable double-digit growth, with industry aggregate revenue for 2005-06 expected to reach US$ 28 billion. The industry is forecast to grow more than fivefold over FY 1999-06, at a CAGR of 28 percent. 3.2 Industry Trends (2004-05) The earnings from IT-ITES exports was US$ 13.3 dustry revenues) in 2004-05 and is expected to ent) in 2005-06. Key drivers of growth include rcing and the rapid expansion in the scale and Indian vendors. o billion (61.9 percent of total in touch US$ 17.9 billion (63.7 perc the growing adoption of IT outsou breadth of ITES-BPO offerings by

During 2005-06, software and services, and ITES-BPO would continue to remain the key contributors to Indias IT-ITES export revenues, with a share of 67.8 percent and 28.4 percent, respectively. While contribution of hardware exports would be around 3.7 percent, the situation is expected to change in the medium term, wit h this segment receiving a boost owing to market conditions. Overall pricing lev els in IT services stabilized at US$ 55-60 per hour for onsite services and betw een US$ 18-24 per hour for offshore services. Indian IT-ITES vendors successfull y executed the offshore delivery model to achieve sustained growth in service ex ports and established India as the most preferred offshore destination for globa l sourcing of services. o o

Indian IT-ITES vendors successfully executed the offshore delivery model to achi eve sustained growth in service exports and established India as the most prefer red offshore destination for global sourcing of services.

The domestic IT-ITES market witnessed a revival during 2004-05, with revenues re aching US$ 8.2 billion (a growth of 30 percent over previous year). The segment is expected to touch revenues of around US$ 10.2 billion during 2004-05, at a CA GR of 19.2 percent for the 2004-05 periods. Hardware and IT services accounted f or around

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 90 percent of the domestic IT-ITES revenues during 2004-05 and this market share is not likely to change in 2004-05. o The BFSI (Banking, Financial services, Insurance), Government and telecom segmen ts remained the key revenue drivers for the domestic IT-ITES market.

Two more companies within the IT-ITES domain joined the billion-dollar club, whi ch now includes the HCL Group, Infosys, TCS and Wipro. During 2004-05, the India n IT software and services segment added 98,000 jobs and the ITES-BPO sector add ed about 73,500 jobs. A total of 203,5000 new jobs are likely to be created by t he IT-ITES sector in the current fiscal.

Indian IT-ITES vendors focused on improving productivity and utilization and mov ed up the value chain. While IT service companies included new service lines suc h as package software implementation, systems integration, R&D engineering and r emote network management to their portfolio of offerings, ITES-BPO companies beg an more complex services such as financial research and analytics, actuarial mod eling, corporate and business research. The Indian IT-ITES players expanded their focus from the Fortune 500 companies t o address the needs of Global 2000 corporations. Bangalore - The "Technopolis" of India A large part of India s success in the so ftware sector is due to the crucial role played by the State of Karnataka in pro moting and providing a boost to IT. Karnataka has emerged as the computer capita l and center of high-tech industries, especially software. Bangalore has for lon g been known as India s answer to Silicon Valley, and this is the city where mos t large software companies have set up shop and operate out of state-of-the-art facilities. This is the reason why it is fast becoming the "Technopolis" of Indi a. The Government of Karnataka has also been extremely positive about the softwa re and services marketplace and has helped

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION create the relevant telecom and policy infrastructure conducive to the growth of this sector. The dynamic industrial policy declared in 1996, with comprehensive packages of incentives and concessions, has ensured a productive ground for var ious industries. The hardware and software industries have now brought about a r evolution of sorts under these schemes. Various institutions and computer traini ng centers have contributed to the large number of trained and talented professi onals. The City of Bangalore has positioned itself to help market the software i ndustry. This is also why Bangalore has been playing host to international-class conferences, workshops and exhibitions devoted to the software cause. The city has the highest number of engineering colleges in the world, almost 50 percent o f the world s SEI CMM Level 5 companies; COPC/ISO recognized Customer Interactio n Centers, and over 103 R&D Institutions. It is, in fact, home to GE s biggest R &D Center outside the U.S.-the Jack Welch Technology Center, which hires over 20 0 PhDs/scientists every month! To top it all, Bangalore has just been ranked the fourth best "Global hub of technological innovation" by none other than the Uni ted Nations. Bangalore s strengths in the software market also lie in its pursui t of new opportunities. In fact, two key segments that are expected to open up o ver the next few years for India are e-commerce and remote processing. Opportuni ties in e-commerce software solutions are emerging as a major area of growth in the Indian IT software and services industry. A recent study undertaken by The B oston Consulting Group for NASSCOM clearly stated that India could earn revenues of US$9 billion from e-business solutions by 2005. . Various Approaches Of Performance Appraisal The data was processed after collection and analyzed for the purpose. The data w as edited, classified and tabulated for analysis. Analysis of data was done with the purpose of summarizing the collected data and organizing these in such a ma nner that they answer the research questions. Percentage

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION analysis was used for analysis of data and the results have been presented by wa y of pie charts, bar charts, with the help of SPSS package. After analysis, the phase of interpretation starts. This is done by drawing inferences from analyzed data. After interpretations, a report was prepared on the basis of inferences.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Table 4.1 Distribution of companies according to the total no of Employees Total no of employees Upto 100 100 1000 Above 1000 Total Frequency Percent 9 30. 0 16 53.3 5 16.7 30 100.0 Cumulative Percent 30.0 83.3 100.0 Source Primary Data Interpretation: The above table indicates that 9 companies were selected who employed 100 and be low employees. 16 companies employed between 100 and 1000 employees and only 5 c ompanies were selected who employed above 1000 employees. Graph 4.1Indicates the total number of employees in the organization T otal no.of employees A bove 1000 U pto 100 100 - 1000

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Table 4.2 Type of Appraisal System Frequency Type of Appraisal System Manager, Supervisor,Appraisers Self appraisal open system MBO 36Feed Back 5 Point Scale 3.point Scale 4.Point scale 10 Point scale Total 11 6 4 3 2 1 1 1 1 30 Percent Cumulative Percent 36.7 20.0 13.3 10.0 6.7 3.3 3.3 3.3 3.3 100.0 36.7 56.7 70.0 80.0 86.7 90.0 93.3 96.7 100.0 Source Primary Data Interpretation The above table indicates that 36.7% of the companies are appraised by the manag ers/supervisors/appraiser assessment, 20% of the companies emphasis on self asse ssment, in addition to this few companies follow Open System (13.3%), MBO (10%), 360 feed back (6.67%), 5 point scale (3.3%), 3 point scale (3.3%), 4 point scal e (3.33%) and 10 point scale (3.33%). Graph 4.2 Indicates the type of appraisal system adopted by the software companies T ype of A ppraisal System 10 P oint scale 4.P oint scale 3.point S cale 5P oint S cale 36Feed B ack M O B M anager,S upervisor,A open system S elf appraisal Table 4.3 Frequency of Appraisal

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Period Frequency Percent Quarterly 14 46.7 Half 6 20.0 Yearly Annually 4 13.3 Ot hers 6 20.0 Total 30 100.0 Cumulative Percent 46.7 66.7 80.0 100.0 Source Primary Data Interpretation From the above table most of the companies follow the annual system of appraisal (46.7%). Half yearly appraisal is carried out in 20% of the companies. 13.3% fo llow quarterly system of appraisal. Some companies follow the combination of hal f yearly and annual system (16.7%). Only 3.33% of the companies followed half ye arly + quarterly + annual system of appraisal. Graph 4.3Indicates how often appr aisals are carried out by the companies Frequency of Appraisal O thers Q uarterly A nnually H Y alf early Table 4.4 Criteria used for evaluation Criteria Performance Frequency Percent 12 40.0 Cumulative Percent 40.0

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION customer Focus Technical Competence Attendance Target Vs. Achievement Key Result Areas Quality of Output 3 Point Scheme Total 6 4 3 2 1 1 1 30 20.0 13.3 10.0 6.7 3.3 3.3 3.3 100.0 60.0 73.3 83.3 90.0 93.3 96.7 100.0 Source Primary Data Interpretation The above table indicates the criteria used in evaluating the employees. 40% of the companies evaluate their employee with the performance, 20% by the technical competence, 13.33% by the target v/s achievement, 13.33% by quality of output, 6.67 by customer focus, 3.33% on attendance, 3.33% by the key result area and 3. 33% by the 3 point scale. Graph 4.4 Criteria used for evaluation 3 Point Schem e Quality of Output Key Result Areas Target Vs. Achievem e Perform ance Attandence Technical Com petence custom Focus er Table 4.5 Rating System used by S / W Companies Rating Frequency Percent system Scoring 9 30.0 Comments 6 20.0 Both 15 50.0 Cumulative Percent 30.0 50.0 100.0

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Total 30 100.0 Source Primary Data Interpretation The above table indicates that 30% of the companies use scoring as the rating sc ale, 20% on comments and 50% of the companies use both scoring and comments as r ating scale. Graph 4.5 Rating scale used in software companies Rating System used by S/W Companies S coring Both Com ents m Table 4.6 Percentage if scoring is the Rating Scale Scoring Frequency Percent Alpha 7 23.3 Numeric 14 46.7 Both 3 10.0 Total 24 80.0 System 6 20.0 30 100.0 Cumulative Percent 29.2 87.5 100.0

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Source Primary Data Interpretation From the above table the companies, which follow scoring as rating scale use 23. 3% alpha, 46.7% numeric and 10% both alpha and numeric. Graph 4.6 if scoring is the rating scale Percentage if scoring is the Rating Scale M issing Alpha B oth N eric um Table 4.7 Feedback to employees after Appraisal Feedback Frequency Percent Yes 26 86.7 No 4 13.3 Total 30 100.0 Cumulative Perce nt 86.7 100.0 Source Primary Data Interpretation The above table indicates that 86.67% of the employees appraised received feedba ck and 13.33% employees did not receive feedback.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Graph 4.7 whether the person being appraised obtain feedback Feedback to employees after Appraisal N o Y es Table 4.8 Percentage of Feedback given to Employees Feedback Frequency Percent Written 9 30.0 Oral 7 23.3 Detailed 5 16.7 Summarized 3 10.0 Self-Assessed 3 10.0 Manger Assessed 3 10.0 Total 30 100.0 Cumulative Percent 30.0 53.3 70.0 80.0 90.0 100.0 Source Primary Data Interpretation The above table indicates how feedback is given to the employees. Most companies follow a written feedback with 30.00%, oral being 10%, manager assessed 10%, se lf assessed

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 16.67%, detailed 23.33% and summarized being 10%. Almost all the companies that were sampled followed a combination of more than one type of feedback. Graph 4.8 How feedback is given to the employees % of feedback given to Employees M anger Assessed Self-Assessed W ritten Sum ariz m ed Detailed Oral Table 4.9 Percentage of Positive or Negative Feedback Feedback Frequency Percent Yes 26 86.7 No 4 13.3 Total 30 100.0 Cumulative Perce nt 86.7 100.0 Source Primary Data Interpretation The above table indicates that 86.67% companies follow the sharing of feedback b oth positive and negative in the same meeting while 13.33% said no. adverse was communicated in writing and good performance is already known. Graph 4.9 whether the negative and positive feedback is shared with the appraise in the same meeting.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION % of Positive & Negative feedback N o Yes

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Table 4.10 Self-Assessment Self- Assessment Frequency Yes 21 No 9 Total 30 Percent Cumulative Percent 70.0 70.0 30.0 100.0 100.0 Source Primary Data Interpretation The above table indicates that 70% of the companies follow self assessment of an employee while 30% did not follow. Graph 4.10 whether the self-assessment of employee is followed in the company or not. Self-Assessment N o Yes

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Table 4.11 Percentage of Company following Self-Assessment. Self- Assessment Yes No Total System Frequency Percent 18 60.0 3 10.0 21 70.0 9 30.0 30 100.0 Cumulative Percent 85.7 100.0 Source Primary Data Interpretation The above table states the integration of the self-assessment of an employee in the existing appraisal system, 85.71% said yes and 14.29% said no. Graph 4.11 If the company follows a self-assessment of an employee, is it integr ated in the appraisal system followed? % of company following Self-Assessment M issing Y es N o

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Table 4.12 Percentage of Compensation increase Compensation Frequency Yes 25 No 5 Total 30 Percent Cumulative Percent 83.3 83.3 16.7 100.0 100.0 Source Primary Data Interpretation The above table indicates that 83.33% of the companies agreeing that appraisal a re related to compensation increase and 16.67% did not agree. Graph 4.12 Relatio n of performance appraisal in compensation increase Percentage of C ompensation increase N o Yes Table 4.13 Compensation increased and Appraisers set targets

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Compensation Frequency Percent Yes 22 73.3 No 8 26.7 Total 30 100.0 Cumulative Percent 73.3 100.0 Source Primary Data Interpretation The above table indicates that 73.33% of the respondents agreeing to setting tar gets to employees being appraised while 26.67% said no. Graph 4.13 The sets target for an employee being appraised Appraiser s set targets. N o Y es Table 4.14 Distribution of set target Distribution Frequency Percent Cumulative Percent 3 Months 2 6.7 9.1

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 3 - 6 Months 6 Months 12 Months Total System 2 4 14 22 8 30 6.7 13.3 46.7 73.3 26.7 100.0 18.2 36.4 100.0 Source Primary Data Interpretation From the above table, half (15) of the companies, the appraiser sets targets for an employee being appraised for a period of 12 months (50%), in other companies the targets are set for 6 months (20%), 3-6 (20%) and 3 months (10%). Graph 4.14 If the appraiser sets targets, for what period the targets are set. Distribution of set target M issing 3M onths 3- 6M onths 6M onths 12 M onths Table 4.15 Usage of checklists in Appraisals Check List Frequency Percent Cumulative Percent Yes 23 76.7 76.7 No 7 23.3 100.0 Total 30 100.0 Source Primary Data Interpretation

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The above table indicates that 76.67% of the companies (23) have a checklist for carrying out appraisals while 23.33% said no. Some companies have a performance appraisal handbook, which gives the details. One of the companies has an IT Too l as checklist. Graph 4.15 Do the companies have a checklist for carrying out appraisal Usage of checklists in Appraisals N o Yes Table 4.16 Is Career Planning effective Career Planning Frequency Yes 19 No 11 Total 30 Percent Cumulative Percent 63.3 63.3 36.7 100.0 100.0 Source Primary Data Interpretation

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The above table indicates that out of 30 companies 19 companies feel that career planning place an important role in Performance Appraisal (63.33%) and rest of the 11 companies do not agree with this (36.36%). Graph 4.16 Effectiveness of 360 degree appraisals. Is Career Planning effective N o Yes Table 4.17 Effectiveness of 360 degree appraisal Parameters Frequency Percent Cumulative Percent Less than 20% 1 3.3 3.3 20% - 35 % 3 10.0 13.3 35% - 50% 5 16.7 30.0 Above 50% 21 70.0 100.0 Total 30 100.0 Source Primary Data Interpretation From the above table, it is understood that when 360 score is implemented as a fo rm of appraisal so as to realize its effectiveness in a firm, almost above 50% o pts it to be very effective, with a score of 70% while 35-50% and 20%-35% votes its effectiveness up to a level of 16.67% and 10% respectively and less than 20% declares it least effective, i.e. 3.33%.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Graph 4.17 The level of effectiveness of 360 score when implemented as a 0 form of appraisal. Effectiveness of 360 degree appraisal Less than 20% 20% - 35% 35% - 50% Above 50% Table 4.18 Distribution Of Companies according to the total no. of employees Companies Per. Small Medium Large Total 12 40% 6 20% 4 13.3% 3 10% 9 (100) 3 (18 .8) Distribution of Companies according to the total no of Employees Cus. KRAs Qu ality 3Point Tech. Atten. Tar. Focus Competence Vs. Of Scheme Acheiv. Output 6 ( 37.5) 4 (25) 3 (18.8) 2 (40) 2 6.7% 1 (20) 1 3.3% 1 (20) 1 3.3% 1 (20) 1 3.3% Total 9 (100) 16 (100) 5 (100) 30 100% Note: Figures in brackets indicates percentage to total. Source Primary Data

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Interpretation From the above table it can be inferred that the criteria used to evaluate an em ployee for a Small Company is performance (100%) but for a Medium Company it is performance(18.8%),customer focus(37.5%), technical competence(25%) and attendan ce(18.8%). And finally for a Large Company the criteria include target Vs. achie vement(40%),Key Result Areas(20%), quality of output(20%) and 3Point scheme(20%) Table 4.19 Type of Appraisal System adopted and the frequency of Appraisal Appraisal Quarterly Manager Supervisor Appraiser Self-Appraisal Open System MBO 360 Feedback 5Point Scale 3Point Scale 11 (100) 3 (50) 3 (50) 3 (75) 1 (75) 3 (1 00) 2 (100) 1 (100) 1 Frequency Half Annually Yearly Others Total 11 (100) 6 (100) 4 (100) 3 (100) 2 (100) 1 (100) 1

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 4point Scale Total 14 (46.7) 6 (20) 4 (13.3) (100) 1 (100) 5 (16.7) (100) 1 (100) 30 (100) Note: Figures in brackets indicates percentage to total. Source Primary Data Interpretation This table indicates that the Organization carries out appraisals for QuarterlyM anagers/Supervisors/Appraisers, Self-Appraisal- Quarterly as well as Half-yearly (50%). Open system which is carried out half-yearly and annually. Where as 360De gree feedback, 5Point Scale, 3Point Scale, 4Point Scale follow other Appraisal S ystem Table 4.20 Adoption of Performance Appraisal and percentage of Feedback given to employees. Companies Written 9 Small (100) (100) Medium Large 9 Total (30) (23.3) (16.7) (1 0) (10) (10) (100 7 5 3 7 (43.8) 5 (31.3) 3 (18.8) 1 (6.3) 2 (40) 3 3 (60) 3 16 (100) 5 (100) 30 Oral Detailed Feedback Summarized SelfAssessed Manager assessed Total 9 Note: Figures in brackets indicates percentage to total. Source Primary Data Interpretation

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION This table indicates how feedback is obtained from the employee, ie., Oral(23.3% ), Written(30%), Detailed(16.7%), Summarized(10%), Self-Assessed(10%), Manager A ssessed(10%) which holds good for Small, Medium and Large Companies.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Table 4.21 Performance Appraisal System and the effectiveness of 360Degree feedb ack Effectiveness of 360Degree Appraisal 20%-35% 35%-50% Above 50% 3 (10) 3 (10) 5 ( 16.67) 5 (16.7) 21 (70) 21 (70) 30 (100) 30 (100) Total Appraisal Less Than 20% 1 (3.3) 1 (3.3) Total Note: Figures in brackets indicates percentage to total. Source Primary Data Interpretation This table shows how effective and feasible the 360Degree Appraisal format appli es to the Companies broken up into segments of : less than 20%, in between 20%-3 5%, 35%-50%, Above 50%

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Table 4.22 The level of effectiveness of 3600 appraisals Effectiveness Less than 20% 20%-35% 35%-50% 50% and Above TOTAL Percentage Of Co mpany 3.33% 10% 16.67% 70% 100% No. of Company 1 3 5 21 30 Source: Primary Data Ho: The Level of effectiveness of 3600 appraisals is less t han 50% H1: The level of effectiveness of 3600 appraisals is more than or equal to 50% Level of Significance, 0.05 Z= p-P PQ n p= X /N = 21 / 30 X= number of re spondents saying the effectiveness of 3600 appraisals is more than or equal to 5 0% n = total number of respondents ie; 30 P = assumed level of effectiveness i.e ., 0.50 Q = 1-P Q = 1 - 0 .50 = 0.50 Z= 0.7 0.5 0.5 * 0.5 30 Z = 2.191 Calculate d Value |Z| cal: 2.191

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Table Value |Z| tab: 1.645 Inference Since the |Z| cal > Z tab, the researcher has to reject Null hypothesis at 5% le vel of significance and the researcher can conclude that the level of effectiven ess of 3600 appraisal is more than or equal to 50% (H1).

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 5.1FINDINGS The following findings have been derived from the study conducted. The most comm on appraiser is the manager/supervisor/appraiser. The self-appraisal of an emplo yee is emphasized. Most of the companies followed a combination of self-appraisa l and manager assessment. The positive areas/benefits of the appraisal system fo llowed in software companies are inputs for training and development, career pla nning and development. There is an opportunity for free and regular feedback bec ause of the open and transparent system. The manager appraisal and self-appraisa ls help in comprehensive results, due to the appraisals there is scope for the g rowth of the employee and organization. There is benefit of the objective settin g for next six months. A clear distinction between performers and non-performers is possible. Appraisal on performance as well as values makes it a positive are a where it makes it punctual and efficient. All variables are easily quantified into a meaningful exercise and objective with work behavior, helping qualitative contribution in building culture. The criteria / measures to evaluate an employ ee in most of the companies are technical competence, performance, work knowledg e, achievement vs. objectives, contribution coding standard, common working capi tal, key result areas set at the beginning of a specific period forming the resu lt-oriented areas, leadership skills, teamwork, attitude, communication, value s ystem, conflict management, interpersonal skills, and dependability forming the behavior-oriented areas in most of the companies. The rating system used in most of the companies is both scoring and comments with numeric-type widely used and a few companies use both alpha and numeric type of scoring.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Majority of the companies obtain feedback on the person being appraised. Manager gives the feedback in most cases while peer and mixed is used in few cases. 360 feedback is followed in a lesser percentage of companies. Reverse appraisal, sla b-not time based is prevalent in a few companies. Feedback is given in the writt en form, manager assessed and self-assessed in most cases while summarized in fe w cases. There is a combination of the type of feedback given to the employers. Both positive and negative feedbacks are shared in the same meeting with apprais e. Almost all companies follow a self-assessment of an employer, which is integr ated, into the appraisal system followed. In majority of the companies, the appr aisal by the manager and self-sources are protected, the manager assessment in a few companies the sources are protected. Compensation increase is related to pe rformance and depends on the performance code/rating given. If the appraise scor es beyond the cut-off score based on the grades, a raise is given. It is related to the increment and project allowance. The appraiser sets targets for the empl oyee being appraised for a period of six months, 12 months and three months bein g lease. Targets are tracked by constant monitoring, appraisal at the end of the project, input form customer, six months reviews, weekly reports, by revenues a nd assignments. A checklist for carrying out appraisal is followed in many compa nies. Career planning is followed in most companies for two to three months, six months, project completion time, and current estimated potential. The appraisal system is manual with a few companies following automated and few both. The ben efits of 360 feedback are that it gives an all round perspective restricting the inconsistency factors that exists in traditional appraisal system. Evaluation an d feedback is more comprehensive and complete. It removes a lot off friction dow n the line improving boss-subordinate relation. The limitations because of 360 fe edback is not directly appreciated and not well taken in application-oriented ar eas. Most companies have not implemented the system as it consumes more time.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION The 3600 feedback is an appropriate system to use as it helps the appraise to kn ow the areas to be focused for development. An appropriate system should be an o pen system, system that link reward / recognition and pay for performance. It sh ould provide for two-way feedback, reduce subjectivity judgment factor. Most of the software companies are in the verge of implementing 3600 feedback processes in the near future. 5.2 RECOMMENDATIONS During the study, distribution of the questionnaire and conducting of personal i nterviews did help to arrive at the standards of appraisal system adopted by the software industry in the city of Bangalore. Appraisal systems are a very effect ive means to realize the growth of a company and its employees. Hence, it is con sidered to be important for the development of the industry. From the appraisal systems, the 3600 are the most preferred by a majority of them. 5.3 CONCLUSION The major implications are to know the different appraisal systems adopted in th e software industry and its level of effectiveness when implemented in the vario us organizations. From the research, certain suggestions could be arrived at wit h the help of available and relevant data. This in turn could enable one to unde rstand the growth and development of a company and that of its employees. The co mmon type of appraisal system is the open system and the management by objective s; some of the companies followed the 360-feedback process. The point-based syst em of appraisal is also very popular among the software companies, with the 5-po int scale being widely used. One of the companies followed personal interaction evaluation personal business commitment program. None of the companies followed one single system

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION of appraisal. Performance appraisal is followed in most of the companies annuall y and half yearly while a less percentage follows the quarterly system. A combin ation of half-yearly and annual system is followed. No appraisal system is free from limitations as it is very subjective. The rating by peer and subordinates i s not followed which is shortcoming. Absence of project end reviews poses as a l imitation. Implementation may not be as planned because of time constraints and span of reports. Over a period of time, appraisal becomes a ritual because of a lot of distrust and employees being scared of the process.

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION Ashwathappa K. Human Resource and Personnel Management. TATA McGraw Hill, 1997. Monappa Arun and Mizra S. Saiyadin. Personnel Management, TATA McGraw Hill, 1997 . Krishna Swami O.R. Methodology of Research in Social Science. Himalaya Publica tion, 1997. Rudrebasavaraj M.N. Dynamic Personnel Administration management of H uman Resourse. Himalaya Publishing House, 1996. Edwards, R.Mark. 360Degree Feedb ack: The powerful new model for Employee Assessment and Performance management.U S Publication, 1996. Martin Fischer. Performance Appraisal. Sunday Times Busines s Skills, 1996. QUESTIONNAIRE

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION I am a final year MBA student of Kristu Jayanti College Bangalore, conducting a research on Appraisal Systems. This project is in partial fulfillment of my MBA program. Your participation ill be greatly appreciated in this research effort; the responses will be kept confidential and only be used in an aggregate manner. Name of the Organization: Designation: Total No. Of employees in the Organizati on 1. Do you appraise an employee by an appraisal system? Yes No 2. If yes, what is the system of appraisal adopted by your company? 3. How often are appraisals carried out in your organization? Quarterly Annually Half Yearly Others (Please Specify) 4. What are the criteria used in your company to evaluate an employee? Performan ce Technical Competence Target Vs. Achievement Quality of Output Customer Focus Attendance Key Result Areas 3 Point Scale

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 5. What is the rating system used in your company? Scoring Both If scoring is it Alpha Both 6. Do you obtain feedback on the person being appraised? Yes No Nume ric Comments 7. How is feedback given to the employees? Written Detailed Self-Assessed Oral S ummarized Manager Assessed 8. Do you share both positive and negative feedback with appraise in the same me eting? Yes No 9. Do you follow a self-assessment of an employee? s Yes No No a) If yes, is it integrated into the appraisal system you follow? 10. Is compensation increase related to an appraisal in any way? Yes No 11. Does the appraiser set targets for an employee being appraised? Yes If yes, for what period? 3 Months 6 Months 3-6 Months 12 Months No 12. Do you have a checklist for carrying out appraisals? Yes No

PERFORMANCE APPRAISALS AND EVALUATION OF EMPLOYEE SATISFACTION 13. Do you follow career planning? Yes No 14. What would be the level of effectiveness of 360 score when implemented as a form of appraisal? Less than 20% 35% - 50% 20% - 35% above 50%