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PREFACE
PRIYANKA
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ACKNOWLEDGEMENT
I also wish to thank respondents and all other people who have
directly or indirectly contributed to my project in making a
success.
PRIYANKA
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INTRODUCTION
AND
RATIONALE OF THE
STUDY
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INTRODUCTION
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development, empowerment, reward and incentive system,
counseling, job enlargement and job enrichment. The managerial
decision, by and large, would have an impact on organizational
effectiveness. It is because all available physical resource in the
organization are got to be utilized through the human being for
achieving and enhancing organizational effectiveness.
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LITERATURE REVIEW
AND
CONCEPT
FORMULATION
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CHAPTER-1
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There are several terms such as merit rating, performance rating,
employee evaluation, performance evaluation, etc. which have
been used interchangeably both by practitioners and scholars
engaged in the field. Explicitly, it is largely that the term “rating”
has narrow connotations while the term “appraisal” is broad and
comprehensive. The term “performance appraisal” which seems to
involve the comparison of performance measures of different
individuals holding similar areas of work responsibility and relate
to determination of worth of measures for the accomplishment of
organizational goals.
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order to design a system for appraising performance, it is important
to first define what is meant by the term “work performance”.
Although a person’s job performance depends on some
combination of ability, effort, and opportunity, it can be measured
in terms of outcomes on results produced. Performance is defined
as the record of outcomes produced on a specified time period. For
example, a trainer working for the Word Bank was evaluated on
her “organization of presentations”, which was defined as “the
presentation of training material in a logical and methodical order”.
The extent to which she was able to make such “orderly”
presentations would be one measures of outcomes related to that
function. Obviously, a sales representative would have some
measure of sales as an outcome for a primary function of that job.
Customer service is a likely candidate as another important
function, “performance”. College teachers are typically evaluated
on three general functions: teaching, research, and service.
Performance in each of these areas is defined by one or more
different outcomes measures.
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employees in a work group, in terms of personal qualities or
deficiencies and the requirements of their respective jobs. To quote
Dale Yoder, “performance appraisal includes all formal
procedures used to evaluate personalities and contributions and
potentials of group members in a working organization. It is a
continuous process to secure information necessary for making
correct and objective decision on employees.” The comparisons of
performance with job requirements help in finding out the merit of
individual employees in a work group. Rating may be done by a
supervisor or an independent appraiser.
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may be for the organization. These sources of resistance to change
have to be identified and managed so as to build incentives for
using a new appraisal system.
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HISTORICAL PRESPECTIVE
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to – man’ rating forms. The army in the First World War to assess
the performance of officers later used the ‘man – to – man’ rating
form. Appraisal of employees became popular only after First
World War and appraisal of managers was not widely practiced
until after Second World War. Yearly 1950’s appraisal was an
accepted practice in many organizations. During the past 40 years,
it has been observed that the earliest use of performance appraisal
was as a basis for administrative decisions such as salary
increase/financial incentives, promotions, and so on. However,
throughout the1960s, 1970s and 1980s, performance appraisals
were increasingly used for employee development. From
subjective (trait) approach. The focus is shifting from performance
measurement to performance management.
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The third major trend is the growing diversity of the workforce.
With grater proportions of women and older workers in the labor
force, unfairness and biases already present in appraisal systems,
either real or perceived, may be magnified by greater diversity and
differences between the raters and the rated. Consequently, an
organization requires fairness and objectivity in appraisal practices
and personnel decisions.
ETHICAL PRESPECTIVE
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for procedural justice (Folger and Greenberg 1985, p.146):
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and should help to assure that the emotionally – laden process of
performance appraisal is seen as fair in so far as humanly possible.
STRATEGIC IMPORTANCE OF
APPRAISAL SYSTEM
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managers of an organization can only guess as to whether
employees are working towards the right goals in the correct way,
and to the desired standard.
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comparison to others may be counterproductive. Such a system
will engender competition rather than teamwork among
employees. In such a setting, an appraisal system that emphasizes
coaching and development, and involves feedback from co-
workers, may be more appropriate than the traditional supervisor
based rating.
Validity
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A measure is free of command if it avoids assessing other
construct besides performance. If the professor’s performance
rating includes an assessment of how well the professor’s shoes
were shined, the measure would be contaminated by this irrelevant
content.
Reliability
Consistency
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necessarily expected.
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1. The rating content is not job related or valid
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THE NEXUS BETWEEN PERFORMANCE
APPRAISAL AND ORGANIZATIONAL
EFFECTIVENESS
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the first category. Their knowledge may be empirically based
and may even clarify the relationship with kindred areas.
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qualitatively and quantitatively. Juxtaposition of organization
dynamics and its attributes over and above this already hazy
picture reduces it to a poor monochromatic mosaic. At the macro
level of organizations, performance dons the mantle of corporate
image, which in sum total represents an amalgam of the individual
goals, objectives, plans and strategic, for the achievement of
organizational goals and objectives in the milieu of society,
culture, technology, constraints, facilities and resources. The
current literature on management provides quite a few approaches
(the process approach, the quantitative approach, the system
approach, the behavioral approach and the contingency approach)
for analyzing corporate and individual performance in
organizations.
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and individual performance.
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performance appraisal system could be enumerated as under:-
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9. Standardized and objective performance appraisal providing
uniform process and criteria results in a fair, valid and legally
defensive basis for rewarding and recognizing individual
performance.
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unlikely to know that behavior is out of synchronization with
relevant goals or what to do about it.
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management, it has emphasis, measurement, and monitoring
performance planning and coaching. Its philosophy is holistic
treating people as valued resources. It is concerned with the
interrelated processes of work, management, development and
reward.
PROBLEM FORMULATION
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
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challenging job; important because it is a job, not of managing
‘man’, but of appraising the performance of people in an
organization. Performance is challenging task because of dynamic
nature of the people. No two persons are similar in mental abilities,
traditions, sentiments and behavior, they differ widely. People are
responsive; they feel, think and act; therefore, they can’t be
operated like machine or shifted and altered like a template in a
room layout. They therefore need a tactful appraisal of their
performance by management or by leaders. So, it had become
necessary to research on such a name “performance appraisal in
small scale industries”. The basic idea to select this topic is that to
know that – What are the factors that affect the performance of
employees? , How the people work in different situations? And
also to know that where the persons are lacking so, that they can be
improved.
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To compare the performance style between two sex (i.e.
Male & Female).
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2.4 (c) SAMPLING
Sample Size – 50
The sample size was 50, which proved a limitation for me.
Most of the respondents were not very helpful and since they
were not having management qualification. I had to make
things understand to them every time.
Although the study is carried out with full effort and devotion
the limitation of time resource available was faced.
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ANALYSIS
Analysis of the data was done with the help of the Answer-cum-
Work Sheet, which is used here for scoring the individual
responses and to diagnose the performance of employees which is
done by:-
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employee. Thus there are two question papers and each
question paper includes fifteen questions.
• Section A
• Section B
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ANALYSIS OF
DATA
AND
INTERPRETATION
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1. Satisfied with the appraisal system -
95% Yes
Almost all the persons are satisfied with the appraisal system.
100% Yes
All the employees feel that they are given the appropriate and
required knowledge about the appraisal rating given to them.
93% Yes
7% No
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100% yes monetary rewards are based on performance appraisal.
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All of them feel that the formal appraisal system is necessary for
my colleagues and them.
100% Yes
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and guidance to help them improve their performance.
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1. Awareness of the performance appraisal and promotional
policies -
4. Environment -
6. Periodicity of assessment -
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50% feel that periodicity of assessment should be once in a year.
The executive set short term goals themselves. Senior officers set
the employees goals.
95% employees told that they are putting their beat foot forward
discharging their duties to the best of their abilities.
9. Clarity about -
90% of the employees are fully aware of the pay policy of the
organization. The lower level employees are not very clear about
the same.
80% of the employees are clear about the linkage of pay with
performance appraisal.
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provided to them by the management as it will helps in making
them aware of there shortcomings, identify there training needs.
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17. Discussion with the employee before the final grading –
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FINDINGS
CONCLUSION
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of questionnaire, culling out the relevant material from the
organization’s published material in the form of annual reports,
company reports, interviews with personnel at all levels (staff,
supervisors and executive personnel) were conducted in a relaxed
manner. It was gratifying that they were forthcoming in providing
a fair account of what they perceived to be the organizational
philosophy on performance appraisal and what are their hopes,
aspirations and expectations.
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benefits, and the performance appraisal helps the personnel
performance better.
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SUGGESTIONS
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SOME SUGGESTED DO’S AND DON’TS
DO
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DON’T
Dictate what the employee must not do. You can outline the
approach most likely to succeed, but if the individual chooses
not to adopt it, then don’t press your point.
Categories:
Executive
Supervisory
Staff
Methodologies:
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PERFORMANCE APPRAISAL
EXECUTIVES
SUPERVISORY
STAFF
SCALE
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1 to 4 points on each aspect of appraisal.
BIBLIOGRAPHY
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REFERENCES
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House, New Delhi.
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ANNEXTURE
QUESTIONNAIRE – 1
Age:
Sex:
Designation:
Department:
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5. I am fully aware of the criterion used in my performance
appraisal.
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11. There is mutual co-operation and understanding with my
superiors in matters related to my job.
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17. Sufficient time is spent on discussion and guidance to help me
improve my performance.
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18. (a) I am satisfied with the appraisal system that I have with my
superiors (in terms of past performance level, personal strength,
salary/promotion/my training needs, personal weakness, problems
and difficulty)
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QUESTIONNAIRE - 2
8. Are you aware that you are performing well in your job?
Yes ( ) No ( )
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9. Every employee in the company has a sense of pride in the
quality of work he/she does:
Yes ( ) No ( )
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18. Do past rating affect your current performance?
Yes ( ) No ( )
20. Are there any discussion with the employee before the final
grading?
Yes ( ) No ( )
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