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SUBMITTED BY: Krishna Kumar Yadav

(Enrollment No: 06416688512)


UNDER THE GUIDANCE OF: Dr. Sanchita Bansal










Experience is the best teacher. This saying plays a guiding line in our lives and also in project reports that are an integral part of the MBA programmed in Indraprastha University, New Delhi. Todays age is an age of management. Management is the backb one of any organization or any activity done. The real success of management lies in applying the professional management techniques an all managerial activities.

Hence, to attain this objective and to have the outlook of all intricacies of corporate world I have undertaken the Term Paper Project in PERFORMANCE APPRAISAL SYSTEM OF NEWGEN SOFTWARE TECHNOLOGY LTD.

Term Paper during the first semester is the phase of the activity during my study in which I am expected to expand my creative thinking ability and to get the bring some practical approach in the subjects . It was a great pleasure working on analysis of inventory management. The presentation of this report gives me a feeling of fulfillment, as a stepping stone towards achieving a master of business administration degree. Normally, it requires a lot of people support to complete this opportunity to acknowledge their support for me. First of all I am thankful to Dr. Sanchita Bansal for providing complete guidance and support for completing this report. I am thankful to Ms. Neeta Singh (Project Manager), Mr. Deepak Badru (Team Leader) and Mrs. Kavitha Vijayraghvan for guiding me through out the project development. I even show my gratitude towards Dr. Ashish , Dr Pooja Malhotra without whose support my project would not be possible to complete. I have been able to prepare my report successfully and I acknowledge a special thanks to all those people without whose support it was impossible for me to make the project report.

During the Term Paper project at Newgen Software Technology . I have tried to cover the glimpse of overall working of the Appraisal Process System of the organization. Newgen is a large Business Process Management company established on 1992. Aims to be a company that provides highest level of Uptime in BPM in country.

To know the present system of performance appraisal. To know the extent of effectiveness of appraisal system to enhance motivation at workplace. To identify and know the area for improvement system.

Aim of the Research To ascertain the effectiveness of Performance Appraisal methodology used by the Organization. The task of data collection begins after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz., primary and secondary. The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical process. Objectives of the study: The following are the objectives of the study -

To develop my understanding of the subject Performance Appraisal System implemented in various Organizations varies according to the need and suitability. Through my research, I have tried to study the kind of Appraisal used in the Organization and the various pros and cons of this type of system. To conduct a study on social behavior Social behavior is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for social development.

To enhance the welfare of employees The Appraisal system is conceived by the Management but mostly does not take into consideration the opinion of the employees. This can lead to adverse problems in the Organization. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Performance Appraisal System. To exercise social control and predict changes in behavior. The ultimate object of my research is to make it possible to predict the behavior of individuals by studying the factors that govern and guide them.


For the past 20 years, Newgen's pioneering efforts have helped organizations around the world gain a competitive advantage through increased efficiency and quality, enhanced service, and bottom line results. This timeline illustrates Newgen's key innovative accomplishments. Newgen Software Technologies Limited was founded and incorporated in 1992, in New Delhi, India. From the beginning, the company's Managing Director Mr. Diwakar Nigam and Chief Financial Officer Mr. T. S. Varadarajan were committed to striving for excellence within the software product development field. Newgen will continue to use its technologies to benefit people as it pursues its objective of becoming a company that is loved by corporate throughout the world Fact Sheet Newgen Defines, Designs and Delivers End-to-end Business Process Management (BPM) solutions covering the entire spectrum of software services from Workflow Automation to Document Management to Imaging. These solutions increase our customers' operational superiority (cost and time per transaction) through our unique Delivery Model that guarantees superior quality and speed of implementation. Head-quartered in New Delhi, India the company markets its innovative BPM solutions in more than 45 countries through its global sales, professional services, support organizations and global partners. Global Operation Newgen Software Technologies Limited produces and markets products and solutions for corporate worldwide, with a focus on enhancing the quality of life. Our global strategies

are implemented through our two Regional Office system with bases in the U.S. Having addressed largely overseas market needs for over a decade, Newgen is developing its solutions based on a global perspective, giving due attention to the special characteristics of each regional market. We are striving to be an exemplary corporate citizen that works in close cooperation with local societies.

With an international commitment to both Traditional and Internet-based market research, Newgen in conjunction with its global network, conducts strategic research in multiple localized languages around the world; offering solutions to corporations, education, health care and non-profit organizations.

Our global network is comprised of locally based market and opinion research companies, who are selected for their proven experience in providing quality client service Our People At Newgen we believe in the power of resourceful humans. Our people are our primary source of competitive advantage and they help us to drive our growth in a planned and efficient manner. We work towards developing a culture that attracts people with multidimensional experiences and skills. Newgen has a strong workforce of over 1100 employees, out of which 5% are engaged in Research & Development, 27% are into Product Development, 25% are in Applications Development, 15% in Sales & Marketing and 15% are in Support, 10% in Services and 3% in others. Newgen has development strength of close to 400 Computer Engineers and MBA's handpicked with great care from the top institutions of the country.

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But it is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might very well lay claim to being the world's second oldest profession! There is, A basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without structured appraisal system, there is little chance of ensuring that the judgments made in the organization will be lawful, fair, defensible, accurate and desirable to others. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. It was felt that a cut in pay, or a rise, should provide the only required impetus for an

employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

Each step in the process is crucial and is arranged logically. The process as shown in Fig. below is somewhat idea1ised. Many organizations make every effort to approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately, many others fail to consider one or more of the steps and, therefore, have less-effective appraisal system.

1. Objectives of Appraisal Objectives of appraisal as stated above include effecting promotions and transfers, assessing training needs, awarding pay increases, and the like. The emphasis in all these is to correct problems. These objectives are appropriate as long as the approach in appraisal is individual. Appraisal in future, would assume systems orientations. In the systems approach, the objectives of appraisal stretch beyond the traditional ones. In the systems approach, appraisal aims at improving the performance, instead of merely assessing it. Towards this end, an appraisal system seeks to evaluate opportunity factors. These opportunity variables are more important than individual abilities in determining work performance. In the systems approach the emphasis is not on individual assessment and rewards or punishments. But it is on how work the work system affects an individual. In the systems approach the emphasis is not on individual assessment and rewards or punishments. But it is on how the work systems affect an individuals performance.

2. Establish Job Expectations The second step in the appraisal process is to establish job expectations. This includes informing the employee what is expected of him or her on the job. Normally, a discussion is held with his or her superior to review the major duties contained in the job place of formal performance evaluation. 3. Design Appraisal Programme Designing an appraisal Programme poses several questions which we need to answers. They are: 1. Formals versus informal appraisal 2. Whose performance is to be assessed? 3. Who are the raters? 4. What problems are encountered? 5. How to solve the problems? 6. What should be evaluated? 7. When to evaluate? 8. What methods of appraisal are to be used?

ASSESSING PERFORMANCE CRITERIA 1. Quality: The degree to which the result or process of carrying out an activity approaches perfection in terms of either conforming to some ideal way of performing the activity, or fulfilling the activitys intended purpose.

2. Quantity: The amount produced, expressed in monetary terms, number of units, or number of completed activity cycles. 3. Timeliness: The degree to which an activity is completed or a result produced, at the earliest time desirable from the standpoints of both co-coordinating with the outputs of others and of maximizing the time available for other activities. 4. Cost Effectiveness: The degree to which the use of the organizations resources (e.g. human, monetary, technological and material) is maximized in the sense of getting the highest gain or reduction in loss from each unit or instance of use of a resource. 5. Need for supervision: The degree to which a job performer can carry out a job function without either having to request supervisory assistance or requiring supervisory intervention to prevent an adverse outcome. 6. Interpersonal impact: The degree to which as performer promotes feeling of self-esteem, and goodwill.

PERFORMANCE APPRAISAL AND DEVELOPMENT While the term performance appraisal has meaning for most small business owners, it might be helpful to consider the goals of an appraisal system. They are as follows: 1. To improve the company's productivity 2. To make informed personnel decisions regarding promotion, job changes, and termination 3. To identify what is required to perform a job (goals and responsibilities of the job) 4. To assess an employee's performance against these goals 1. To work to improve the employee's performance by naming specific areas for improvement, developing a plan aimed at improving these areas, supporting the employee's efforts at improvement via feedback and assistance, and ensuring the employee's involvement and commitment to improving his or her performance. All of these goals can be more easily realized if the employer makes an effort to establish the performance appraisal process as a dialogue in which the ultimate purpose is the betterment of all parties. To create and maintain this framework, employers need to inform workers of their value, praise them for their accomplishments, establish a track record of fair and honest feedback, be consistent in their treatment of all employees, and canvass workers for their own insights into the company's processes and operations. A small business with few employees or one that is just starting to appraise its staff may choose to use a prepackaged appraisal system, consisting of either printed forms or software. Software packages can be customized either by using a firm's existing appraisal methods or by selecting elements from a list of attributes that describe a successful employee's work habits such as effective communication, timeliness, and ability to perform work requested. Eventually, however, many companies choose to develop their own appraisal form and system in order to accurately reflect an employee's performance in light of the business's own unique goals and culture. In developing an appraisal system for a small business, an entrepreneur needs to consider the following: 1. 2. 3. 4. 5. 6. 7. Size of staff Employees on an alternative work schedule Goals of company and desired employee behaviors to help achieve goals Measuring performance/work Pay increases and promotions Communication of appraisal system and individual performance Performance planning

Size of Staff A small business with few employees may choose to use an informal approach with employees. This entails meeting with each employee every six months or once a year and discussing an individual's work performance and progress since the last discussion. Feedback can be provided verbally, without developing or using a standard appraisal form, but in many cases, legal experts counsel employers to maintain written records in order to provide themselves with greater legal protections. As a company increases its staff, a more formal system using a written appraisal form developed internally or externally should always be used, with the results of the appraisal being tied to salary increases or bonuses. Whether the appraisal is provided verbally or in writing, a small business owner needs to provide consistent feedback on a regular basis so that employees can improve their work performance. Alternative Work Schedules Employees working alternative work schedulesworking at home, working part-time, job-sharing, etc.will most likely need to have their performance appraised differently than regular full-time staffs in order to be fairly evaluated. An alternative work schedule may require different duties to perform a job and these new responsibilities should be incorporated into the appraisal. A small business owner should also be careful to ensure that these employees are treated fairly with regard to both the appraisal and resulting promotions. Company Goals and Desired Performance The performance of employees, especially in a smaller firm, is an essential factor in any company's ability to meet its goals. In a one-person business, goal-setting and achieving is a matter of transforming words into action, but moving the business towards its goals in a larger firm means that the employer has to figure out each person's role in that success, communicate that role to him or her, and reward or correct their performance. It also means that the appraisal should incorporate factors such as collaborative ability and sense of teamwork, not just individual performance. Measuring/Assessing Performance Once a list of tasks and attributes is developed, a small business owner or manager needs to determine how to measure an employee's performance on these tasks. Measurement provides another objective element to the appraisal. Ideally, measurement would be taken against previous performance, whether of the individual employee, the group, or the company at large. If a company is just developing its appraisal system or does not have a

baseline performance to measure against, it should develop realistic goals based on business needs or on the similar performance of competitors. Pay Increases and Promotions When developing an appraisal system, a small business owner needs to consider the connection between the appraisal and pay increases or promotions. While performance feedback for development/improvement purposes may be given verbally, a written summary of the individual's work performance must accompany a pay increase or promotion (or demotion or termination). It is crucial, therefore, that a manager or small business owner regularly document an employee's job performance. The method of pay increases impacts the appraisal as well. If a small business uses meritbased increases, the appraisal form would include a rating of the employee on certain tasks. If skill-based pay is used, the appraisal would list skills acquired and level of competency. Appraisals and resulting salary increases that take into account group or company performance should include the individual's contributions to those goals. Communicating the System A performance appraisal system is only effective if it is properly communicated and understood by employees. When devising an appraisal system for his or her company, an entrepreneur may want to consider involving staff in its development. Supporters contend that this promotes buy-in and understanding of the plan, as well as ensuring that the appraisal takes into account all tasks at the company. If the small business owner is unable to involve her staff, she should walk through the system with each employee or manager and have the manager do the same, requesting feedback and making adjustments as necessary. Communicating Performance and Planning Part of the appraisal system is the actual communication of the performance assessment. While this assessment may be written, it should always be provided verbally as well. This provides an opportunity to answer any questions the employee may have on the assessment, as well as to provide context or further detail for brief assessments. Finally, the employee and the entrepreneur or manager should make plans to meet again to develop a plan aimed at improving performance and reaching agreed-upon goals for the following review period. This planning session should relate company and/or group goals to the individual's tasks and goals for the review period and provide a basis for the next scheduled review.

TYPES OF APPRAISALS AND ASSESSMENT TERMS Traditional In a traditional appraisal, a manager sits down with an employee and discusses performance for the previous performance period, usually a single year. The discussion is based on the manager's observations of the employee's abilities and performance of tasks as noted in a job description. The performance is rated, with the ratings tied to salary percentage increases. However, as David Antonioni notes in Compensation & Benefits, "The traditional merit raise process grants even poor performers an automatic cost of living increase, thereby creating perceived inequity'. In addition, most traditional performance appraisal forms use too many rating categories and distribute ratings using a forced-distribution format." Antonioni suggests the appraisal form use just three rating categoriesoutstanding, fully competent, and unsatisfac-toryas most managers can assess their best and worst employees, with the rest falling in between. Self-Appraisal Somewhat self-explanatory, the self-appraisal is used in the performance appraisal process to encourage staff members to take responsibility for their own performance by assessing their own achievements or failures and promoting self-management of development goals. It also prepares employees to discuss these points with their manager. It may be used in conjunction with or as a part of other appraisal processes, but does not substitute for an assessment of the employee's performance by a manager. Employee-Initiated Reviews In an employee-initiated review system, employees are informed that they can ask for a review from their manager. This type of on-demand appraisal is not meant to replace a conventional review process. Rather, it can be used to promote an attitude of selfmanagement among workers. Adherents to this type of review process contend that it promotes regular communication between staff and managers. Detractors, though, note that it is dependent on the employees' initiative, making it a less than ideal alternative for some workers with quiet, retiring personalities or confidence issues. 360-Degree Feedback 360-degree feedback in the performance appraisal process refers to feedback on an employee's performance being provided by the manager, different people or departments an employee interacts with (peer evaluation), external customers, and the employee himself. This type of feedback includes employee-generated feedback on management performance (also known as upward appraisals). As a company grows in size, a small

business owner should consider using 360-degree feedback to appraise employees. Communication in a business of ten people varies wildly from that of a company of 100 persons and 360-degree feedback ensures that an employee's performance is observed by those who work most closely with him. Small business owners or managers can either include the feedback in the performance review or choose to provide it informally for development purposes. LEGAL ISSUES Given that the results of a performance appraisal are often used to support a promotion, termination, salary increase, or job change, they are looked at very closely in employee discrimination suits. Besides providing a written summary of the appraisal to the employee, a small business owner would be well-advised to ensure the following with regards to the system at large:

Job expectations as well as the appraisal system and its impact on employee's work status are adequately communicated to all employees Performance measures are related to the job being performed Managers or co-workers providing input into the appraisal must be sufficiently trained as to be able to provide objective input Employees are given timely feedback on performance and a reasonable amount of time and support in improving their performance

Assistance in developing a system is available through a variety of sources including consultants, periodicals and books, and software. In addition, given the legal implications of appraisals, small business owners should have their companies' performance assessment processes, including training of managers and employees, reviewed by a qualified attorney.


Data Collection Collection of data is the first step in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be secondary or primary. Collection of Primary Data during the course of the study or research can be through observations or through direct communication with respondents on one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. Methods Of Appraisal The last to be addressed in the process of designing an appraisal programme is to determine methods of evaluation. Numerous methods have been devised to measure the quantity and quality of employees job performance. Each of the methods discussed could be effective for some purposes, for some organizations. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or of a particular type of employees. Broadly, all the approaches to appraisal can be identified into (i) past-oriented methods

Past-Oriented Methods Rating Scales: This is the simplest and most popular technique for appraising employee performance; the typical rating-scale system consists of several numerical scales, each representing a job-related performance criterion such as dependability, initiative, output, attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, and then computes

the employees total numerical score. The number of points scored may be linked to salary increases, whereby so many points equal a rise of some percentage

Rating scales offer the advantages of adaptability, relatively easy use and low cost. Nearly every type of job can be evaluated in a short time, and the rater does not need any training to use the scale. The disadvantages of this method are several. The raters biases are likely to influence evaluation, and the biases are particularly pronounced on subjective criteria such as cooperation, attitude and initiative. Furthermore, numerical scoring gives an illusion of precision that is really unfounded. Checklist: Under this method a checklist of statements on the traits of the employee and his or her job is prepared in 2 columns viz., a Yes column and a No column. All that the rater (immediate superior) should is tick the Yes column if the answer to the statement is positive and in column No if the answer is negative. A typical checklist is given in the table below. After ticking off against each item, the rater forwards the list to the HR department. The HR department assigns certain points to each Yes ticked. Depending upon the number of Yes the total score is

arrived at. When points are allotted to the checklist, the technique becomes a weighted checklist. The advantages of as checklist are economy, ease of administration, limited training of rater, and standardization. The disadvantages include susceptibility to raters biases (especially the halo effect), use of personality criteria instead of performance criteria, misinterpretation of checklist items, and the use of improper weights by the HR department.

Forced Choice Method: In this, the rater is given a series of statements about an employee. These statements are arranged in blocks of 2 or more, and the rater indicates which statement is most or least descriptive of the employee. As in the checklist method, the rater is simply expected to select the statements that describe the rate. Actual assessment is done by the HR Department. This approach is known as the forced choice method because the rater is forced to select statements, which are readymade. The advantage of this method is the absence of personal bias in rating.

The disadvantage is that the statements may not be properly framed they may not be precisely descriptive of the rates traits.

Field Review Method This is an appraisal by someone outside the, assessors own department. Usually someone from the corporate office or the HR department. The outsider reviews Employee records and holds interviews with the rate and his or her superior. This method is primarily used for making promotional decision at the managerial level.

Performance Tests and Observations With limited number of jobs, employee assessment may be based upon a test of knowledge or skills. The test may he of the paper-and-pencil variety or an actual demonstration of skills. The test must he reliable and validated to be useful. Even then, performance tests are apt to measure potential more than actual performance. In order for the test to be job related, observations should he made under circumstances likely to be encountered. Practicality may suffer if costs of test development or administration arc high. Essay Method In the essay method the rater must describe the employee within a number of broad categories such as:(i) The rater's overall impression of the employee's performance.

(ii) (iii) (iv) (v)

The promo ability of the employee The jobs that the employee is now able or qualified to perform The strengths and weaknesses of the employee. and The training and the development assistance required by the employee. Although this method may be used independently, it is most frequently found in combination with others. It is extremely useful in filing information gaps about the employees that often occur in the better structured checklist method. The strength of the essay method depends on the writing skills and analytical ability of the rater. However many raters do not have good writing skills. They become confused about what to say. How much they should state and the depth of the narrative.

Employees opinion as to the present appraisal system Options Fully Satisfied Satisfied Cant Say Dissatisfied Responses (in %) 2 24 44 30

Employee perception as to the frequency of appraisal Options Response (in %)

Once During The 2 Service Period Continuous Never Cant Say 92 0 6

If continuous appraisal what should be the gap between two appraisal period Options Quarterly Half Yearly

Response (in %) 20 44

How Performance Appraisal affects the productivity of the employees Motivated 38 12 24 Indifferent 12 10 21 Demotivated 28 5

+ Feedback - Feedback Neutral

Who should do the appraisal? Options Superior Peer Subordinate Self-Appraisal Consultant All of the above Superior + Peer Response ( in % ) 24 0 0 8 4 48 16

Does appraisal help in polishing skills and performance area? Options Yes No Somewhat Response ( in % ) 74 10 16

If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees, the very purpose of appraisal becomes illogical. In the survey conducted it was observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 10 % of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to whether it serve any such purposes or not. Does personal bias creeps-in while appraising an employee Options Yes No Response ( in % ) 82 18

In the process of appraising, both the parties are human being, that is, the one who is being apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising.

Ranking Method In this, the superior ranks his or her subordinates in the order of their merit, starting from the best to the worst. All that the HR department knows is that A is better than B. The 'how' and 'why' are not questioned, nor answered. No attempt, is made to fractionalizes what is being appraised into component elements. This method is subject to the halo and regency effects, although rankings by two or more raters can be averaged to help reduce biases. Its advantages include ease of administration and explanation. Paired-comparison Method Under this method the appraiser compares each employee with every other employee one at a time. For example there are five employees named A, B. C. D and E. The performance of A is first compared with the performance of B and a decision is made about whose performance is better. Then A is compared with C. D and E in that order. The same procedure is repeated for other employees. The number of comparisons may be calculated with the help of a formula which reads thus: N(N-1)/ 2 where N stands for the number of employees to be compared. Future-oriented Appraisals Is it not enough if only the past performance is assessed? How an employee can perform in the days to come is equally important. This can be assessed by focusing on employee potential or setting future performance goals. The commonly used future oriented techniques are MBO, psychological appraisals, and assessment centres. Some practical motivation techniques that you can use to improve motivation in your workplace 1. Treat Employees as Individuals Do we make assumptions about what motivates your employees? Some are likely to be career focused, but others may see their work as a place to make friends and earn money.

Find out what motivates employees outside of work. Some enjoy a challenge such as a sporting activity; others may like to be on committees so they can use their organisational skills. Use their innate talents in the workplace where possible to keep them motivated. Set goals which stretch their abilities. Make goals SMART - specific, measurable, achievable, and relevant and time framed. 2. Treat Employees with Respect Get to know your employees on a personal level, and offer support when needed, even if it is only to listen to their concerns. Ask your employees for their opinions where possible, for example if you are changing systems or introducing new equipment. Being involved in decision making is one of the best motivation techniques. Catch your employees doing something well and praise them - and if you do this in front of others, it makes the employee feel even better. Giving employees recognition for their efforts will motivate them to repeat the process. 3. Provide Opportunities for Employee Learning and Development Encourage a learning climate, through structured on-the-job training programmes, job transfers, inter-disciplinary projects and support for further education. Aim to have your employees constantly learning new skills and gaining new knowledge. This will reduce the level of stagnation that can easily occur in a business. Promote from within where feasible - and invest the time and support in developing employees so they can take on new opportunities. Some managers worry that by offering a high level of training to employees, they may leave the business for better opportunities elsewhere. Remember this allows other employees to rise up and take their place! Also the word will spread that you are a good employer - which may encourage a higher calibre of external job applicants. 4. Make the Workplace a Fun Place

Having fun is one of the best motivation techniques. And small things can make all the difference. Bringing sweets to team meetings Sharing non-business news through e.g. newsletters Arranging activities such as lunchtime yoga sessions Surprising employees with a birthday cake Asking the employees for their opinion on what would make the workplace a fun place! DATA ANALYSIS Organizations need to employ valid and reliable instruments to measure its performance and so with their members. Likewise, the policies that guide the organization in assessing performance must be clear to all its members or else it will be subject to various interpretations that could have adverse repercussions. The right tools in measuring, analyzing information and making conclusions must be utilized with utmost care to arrive at a reasonable decision. The functions of performance appraisal are various. One, it helps in determining how every member fulfils his or her role and responsibility. Another, it offers insights how stakeholders and clients appreciate the services which the organization members deliver. In addition, with the use of a valid and reliable instrument, an employee can be appraised comprehensively avoiding the bias of judging his performance based on isolated observations. With the generated data, supervisors and managers can guide their employees in improving their competencies for efficacy. Lastly, performance evaluation can be used as determining instrument for the needed reinforcement to enhance the employees self-esteem and motivations towards work.

With those purposes that evaluations serve for the organization and its members, the choice of evaluation instrument is critical. In evaluation, both the qualitative and quantitative aspect of analysis must be considered. When an instrument is highly dependent on numerical data, decisions will have to be based on the result of statistical analysis. When the instrument allows for collecting qualitative data, those must be analyzed appropriately. In both analyses, generalizations have to be grounded on the data. Statistically, the levels of analysis can be descriptive, inferential to the rather more complex analyses. These are essential in making informed decisions. Qualitatively, the responses must fit those of the quantifiable obtained data. Otherwise, there will be inconsistency that may lead to failure in making informed decision. With numerical data, simple statistical analysis can be valuable already. In doing so, one can have a grasp of the performance holistically. Performance has to be evaluated holistically, or else the evaluation fails. On the merits of having high performance standards, with several components being evaluated, specific weights must be apportioned to the components. This reduces bias and so increases the validity and reliability of the evaluation process. Hence, evaluators cannot just set their eyes on a fluke in the data when everything else in the data says otherwise. There is a joke among researchers and academics, numbers do not lie but the interpreters of the data can do so. Statistical quandary can either result from manipulation of data or from the incompetency due to lack of knowledge to the side of the evaluator or researcher. If these happen, then the interpretations of the evaluator can be judged a hoax. Here is one case to illustrate statistical quandary. Assuming that a company is using a valid and reliable instrument that combines both quantitative and qualitative measures of constructs; that the performance evaluation is taken at several times and data is obtained from various groups; that the performance is evaluated in three different components; and that the policy states that an employee to move from ranks must obtain a very satisfactory

rating during the period of evaluation; evaluators should be able to arrive at an informed decision. Newgen has all those set in the system, but surprisingly its board of evaluators could not decide whether to promote an employee to a higher rank because with one group at one time in that year, the employee had an unsatisfactory rating. In Newgen employee, filed for a promotion. The board reviewed her records but did not arrive at the point when they need to make a decision. She was evaluated for the past year, 16 times, in three terms, among different groups at different time intervals. This case can be considered like a panel study. She had 97% attendance efficiency. She had actively been involved in her organization through her pro-bono services. She had continuing education and professional development. She is even recognized in her participation as resource person, speaker and researcher locally and internationally. She has been serving the company for more than five years, and never actually got a promotion coming from her supervisors initiative. But, becauseshe failed in one out of the 16 evaluations, her request for promotion is still on the table of discussion, yet in all the rest of her evaluations she scored very satisfactory to outstanding. Applying simple descriptive statistics, one should understand that the power of one is insignificant to the value of 15 among 16 sets of evaluation data. The data will nearly show that 6.25% of the respondents does not approve of her performance. But the data also shows that over the entire whole group surveyed appreciated her performance to be very satisfactory (93.75%). There are actually more groups who gave Zhasha outstanding rating for her performance. The presiding officer of the evaluation board argues that an employee to merit promotion should have very satisfactory rating in all components during the term of evaluation. To arrive at a qualitative interpretation of the value, the statistician applies taking the general average or mean of the scale responses. The general average of all the ratings in

the term of evaluation says that Newgen had very satisfactory rating, but the evaluators eyes were so focused on that single group that gave her an unsatisfactory rating. With such kind of analysis, the other ratings have lost value. The judgment was bias based on single isolated case. The role of evaluation using several cases, at different terms has not served its cause. One can see then that the evaluation used was not to obtain a comprehensive understanding of ones performance, but or is it a mere instrument to find fault? That single case should not be singled out nor should it be emphasized. But the evaluators assume that is how the system is. If so, there is a problem with the existing system, not in the evaluation instrument, not in its administration, but in the system of thinking of those interpreting the data and those making decisions out of the data that they have. The said case should call the attention of the employer to reflect and consistently aspire to be more effective in the work. Newgens ratings were consistent, so far as the numbers tell throughout the evaluation period, yes except at one single case. But the overall rating for that term where the fluke is still says that she was very satisfactory in three components being evaluated. Probably, it is the definition of the component that causes the misinformation. This is because the evaluators assume that the component refers to any of the elements in the period of evaluation. That broad construct would then mean to include timing, case, number of respondents, performance areas and others. But it should not exclude the general rating or average score and interpretation. Yet, the policies which are accessible to all employees do not tell in all components and it does not define what components are and what they include. The illustration teaches us that policy ambiguity, the inadequate knowledge of evaluators in examining and interpreting numerical data can result to a dilemma. My basis of analysis was merely on the level of applying descriptive statistics. To arrive at a

justifiable conclusion to Newgens case or at least a reasonable decision, I challenge her evaluators to place the data in various statistical analyses to test the hypothesis: That Newgens performance during the period of evaluation is not satisfactory. I do see the merit of putting the highest benchmark because that will reinforce productivity. Although, Newgen Inc., may be too idealistic to assume that an employee can get 100% very satisfactory rating in all components. For Newgen, in the three panel surveys conducted she had received 100% very satisfactory rating. However, that is not how the evaluators see the case because their ignorance dictates them the very satisfactory performance is not statistically significant and it is not consistent, since they are looking at a tree and assume that it is the forest. This case is so revealing that a company can strive to keep the strictest measure without applying the least reasonable tool to come up with decisions over elementary statistical figures. It is saddening that while the company intends to maintain high standards, the standard of thinking of its administration is to abide by the pre-existing system without actually interrogating how the system really work for organizational productivity and the motivation of its employees. More than 90 percent of private sector organizations have some type of performance appraisal system in place because they believe the systems are effective.

Performance Appraisal Results-2011

4500 4000 3500 3000 2500 2000 1500 1000 500 0


987 80

993 89

Employee Feedback on the Process

In September 2011, the Human Resources Department surveyed employees, with 1,324 responses. A clear majority of the survey participants responded favorably to the Employee Performance Appraisal Process, including the appraisal form and each phrase of the process. The rating response ranged from 56% to 85% favorable regarding the Performance Planning and Performance Review Phases of the process. Survey results suggest that more training and coaching are needed to increase the number of supervisors conducting performance discussions throughout the year and providing feedback or demonstrating ways to improve employee performance.

A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows: Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity. Though, no effort was spared to make the study most accurate and useful, the sample Size selected for the same may not be the true representative of the Company, resulting in biased results. This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.


The following are the suggestions and conclusions derived from this particular research study Objectivity One manager's idea of "self-starting ability" can be quite different than another's idea. The question then arises as to how does one objectively evaluate "creativity ? If greater amount of objectivity can be infused into the Appraisal system, it can help to bring more transparency. Effective Communication One function of performance appraisals is to help employees develop so they can contribute more effectively. In order for the employees to develop and learn they need to know what they need to change, where (specifically) they have fallen short, and what they need to do. If a manager assigns a 1 (unsatisfactory) on a scale of 5, it does not convey much information to an employee. It just says the manager is dissatisfied with something. In order to make it meaningful and promote growth, far more information must be added to the appraisal process and the related information should be transparently shared with the employee. Fairness Most employees resist being classified at the low end of the scale. Employees who are low rated are more likely to resist the evaluation of the superior and argue, claiming that personal bias was involved in the ratings.

Managerial Efficiency The implementation of a Performance Appraisal System rests on the shoulders of the manager and he must ensure that it is done properly. A good manager can make an average appraisal system work and vice-versa. The analysis and interpretation of data on study of performance appraisal techniques and its application to enhance motivation at workplace led to the following conclusions:

1. The promotions rule though defined need to be communicated to every employee before appraisal process is done and also justify the promotion as a result of the appraisal. That the promotion policy followed differs at different position and category. Uniformity has to there in the implementation of promotion policy at all levels. 2. The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. Also when performance goes down employee has to be given feedback and motivated to do better. 3. The organization at present doesnt provide career planning and career suggestion plans. 4. In organizations feedback is being provided to the employee though on a few occasion. 5. Performance appraisal in maximum organizations is done on an annual basis. 6. More emphasis is on training and job rotation as remedial measures.

7. The mechanism of counselling pre-performance and post-performance is not in practice at the organization in strict term. Recommendations A new performance appraisal system should be developed and implemented as soon as possible, and it should incorporate the following features; Progress against individual objectives Setting and recording of new objectives, with clear links to the business plan. Discussion and clarification of role and responsibilities Identification of required competencies, and measurement. Identification of short term training needs linked to business plan Discussion on career aspirations and identification of development needs Prioritisation of training and development Identification of barriers to individual and team performance Overview of individual performance Overview of team performance A broad ranged rating system for final score Design of system engagement with staff Passenger Focus staff at all levels should be involved in the design, consultation and approval of the new system. Multi-Source Feedback Further discussions should take place between the Executive Management Team and Staff Forum to investigate the feasibility and potential benefits of multisource feedback, including 360 degree feedback and self appraisal. Training and Guidance Prior to launch of the new system, training should be given to all managers on the purpose, system, delivery and outcomes of performance appraisal. Guidance should be developed for staff receiving appraisals. Performance Management Passenger Focus Executive Management Team should discuss and agree a mechanism that ensures the outcomes of performance appraisal are incorporated into the wider performance management regime more comprehensively. This mechanism should identify how the results of individual and team performance relate to organisational performance and objective setting.

Some sites name: http://howtomotivateemployeesnow.com http://eHOW.com http://MANAGEMENTPARADISE.com http://www.leadership-and-motivation-training.com/ http://en.wikipedia.org http://rodrigo75.wordpress.com/

Some books name: Organizational Behaviour by Robbins. Bacal, R. Performance Management. New York, McGraw Hill.