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human capital and by developing the capabilities of teams and individuals within that
therefore focuses not only with ‘WHAT’ is produced but, also ‘HOW’ it is produced.
It seeks to ensure that what has been produced is in line with the organization’s needs
and these products have been produced in line with the organization’s way of doing
things.
can be described as a fairly old system of measuring employees’ performance that has
been in use in many organizations. However, Performance appraisal has not brought
in the amount of positive results that was expected of it. Armstrong and Mulis
annual ritual”. The question that arises then is: “If Managers (the custodians of the
system) do not have confidence in their own system, what more employees (who
The meaning of the word “appraisal” is “to fix a price or value for something”. This is
used in finance in terms such as project appraisal or financial appraisal where a value
1
Performance appraisal can be defined as a system of measuring employee’s
starts with the supervisor and or with the subordinate agreeing on specific
that are used in the Performance appraisal stem from the main
to individual goals.
The performance appraisal system has to be transparent and the employee should be
taken into full confidence. In many cases employees themselves are given a chance to
the organization and the employee. However the organization must also take care of
Normally the immediate supervisor does the appraisal. Some organizations also have
The HR person must also ensure that line managers are properly trained for carrying
out the appraisal including interviewing techniques and on how to give feedback. The
managers must also be trained to look at the cases objectively outside of their personal
2
COMPANY PROFILE
Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection
of Pre-Engineered Metal Building Systems. The Group is well known in the Middle
East & India for the quality of the products and services offered. In 1998, Jindal
Brothers Pvt. Ltd started its journey in India by setting up State of Art manufacturing
facility at Manesar, Gurgaon. Design and Detailing work is carried out by highly
skilled Engineers with computed aided design and drafting facilities at the Company’s
Head Office at New Delhi. Their objective is to deliver cost effective, quality Pre-
Engineered Metal Buildings within agreed time schedules to their Customers. Jindal
Brothers Pvt. Ltd. maintains high degree of professionalism at all levels, a
commitment needed to maintain highest possible standards. Every project is executed
with Micro Planning, to achieve the Milestones set out in the contract. This combined
with quality of their products has earned us reputation in the Market Place. Corporate
giants, both National and Multinational, have complimented their strategy of
providing single point responsibility for Supply and Erection with highly motivated
and trained In House Project Management Team to handle projects, whether it is
small or big, simple or complex. More than 500 Pre-Engineered Buildings have been
installed across the length and breadth of their Country. This experience corroborates
their claim. Regional / Area offices across the Country are fully equipped to provide
pre-order and post order service to their valued Customers. Organizational
effectiveness depends upon the level of performance of its employees. Hence the level
of performance has to be ensured. Periodic stock taking of the qualitative state of the
man power is of vital importance to an organization and the organization tries to
collect the relevant data through the tool of performance appraisal reports. Thus
performance appraisal is essential for performance effectiveness and efficiency of the
organization and also for carrying out administrative decisions regarding human
resources. The correctness of the decision will depend heavily upon the validity of the
data gathered through appraisal system.
3
existing system of performance appraisal so that this might help other organizations to
follow the same.
Services
metal roofing/wall cladding and connection fasteners. These components are designed
that they are compatible with each other. The fabrication of these components is
carried out in factory under strict quality control as per detailed shop drawing. These
components are transported to site with proper markings and assembled at site as per
erection drawings.
They call this the knowledge Hub, a world class Design & Engineering Office
manned with team of experienced professionals and equipped with latest sophisticated
design tools which distinguishes Jindal Brothers Pvt. Ltd. from others.
Stadd Pro, MBS, AUTOCAD, Primavera, MS Projects are among the few
Engineering & execution tools in use at Jindal Brothers Pvt. Ltd. that delivers the
fastest solution at the best of engineering practices applied in a true international
design environment.
The Brain House offers intelligent engineering solutions and supports post order
functions with general arrangement, fabrication and erection drawings. The
computerized drafting, detailing and logic programs enable user friendly details to
simplify manufacturing process and erection methods.
The Jindal Brothers Pvt. Ltd. knowledge archives has vanity of standards and design
codes such as AISC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to
suit customer’s need of a Pre-Engineered building at any place or country.
4
The Jindal Brothers Pvt. Ltd.’s consistent efforts in research & development and
global sourcing of material have positioned the Organization as a lead runner in
introducing innovative ideas and products in the market place.
Manufacturing Facility:
Well defined process on the shop floor ensures smooth flow of material and
productivity.
All major raw materials and bought out items are sourced from a Panel of
5
Automatic Purlin Roll
Roofing Profile
Welding Forming
Line
Machine Machine
6
JINDAL BROTHERS India Projects:::
Location Client
Washim ITC
Grain Godown
Cafeteria
Dept. Store
Jagdishpur ITC
Grain Godown
Cafeteria
Mandsour ITC
Grain Godown
Cafeteria
Dept. Store
Amaravati ITC
Dept. Store
Gurgaon SMCC
7
8
OBJECTIVES OF THE STUDY
1. To study the 360 Degree Appraisal systems and evaluate its benefits in context of
Jindal Brothers.
at Jindal Brothers.
3. On the basis of what company increase salary and provide training to its
4. To understand more and more about his role and become clear about his
functions.
5. To understand his own strengths and weaknesses with respect to his role and
functions of the company.
7. Provides an opportunity to the employees for self reflection and individual goal
setting.
9
RESEARCH METHODOLOGY
the study.
Primary data was collected by questionnaire and interview in the organizations. The
questionnaire comprised of closed and attitude questions. The opinion on existing
Performance Appraisal practices and their affectivity were collected through
questionnaire which was circulated to all the employees at all levels and the results
have been analysed on the basis of agree and disagree. The methodology for
collection of data also included interviews and discussion with the top management of
the organization.
Sampling:
The total sample size for this project was 100 employees at Jindal Brothers.
The information collected through above methods has been tabulated, analysed and
interpreted. Finally an overall assessment of the contribution of top management,
supervisory staff has been made towards improving the effectiveness of the
organization.
10
TYPES OF RESEARCH
Research methodology is a way to systematic solve the Research Problem. It is a
procedure, which is followed step by step to solve a particular research problem.
Explorative Research:
To gain familiarity with phenomenon or to achieve an insight into it.
Descriptive Research:
To poetry accurately the characteristics of the particular individual situation or a
group.
Diagnostic Research:
To determine the frequency with which something occurs or with which it is
associated with something else.
11
LITERATURE REVIEW
Organizations exist to achieve goals. Goals are only met when individual employees
efforts matches with policy of the organization and thus bringing out success and
effectiveness. The assessment of how successful employees have been at meeting
their individual goals therefore becomes a critical part of HRM and here comes
Performance Appraisal System.
• Is an organizational necessity
12
OBJECTIVES OF PERFORMANCE APPRAISAL
There are mainly two purposes for which performance appraisal is used by an
organization:
(1) To improve the work performance of employees by helping them realize and use
their full potential in carrying out the firm’s missions; and
(2) To provide information to employees for use in making work related decisions,
• Reassurance that they are contributing and doing the right thing
3) Once the development needs of employees are identified appraisals can help
establish objectives for training programmes. Thus evaluations provide a basis for
changing performance plans, including objectives and standards of behaviors as
business plans and conditions change.
13
NEW OBJECTIVES OF PERFORMANCE APPRAISAL
Performance appraisal system can serve the following purposes if designed properly
Help each employee to understand more and more about his role and become clear
about his functions.
Helps each employee to understand his own strengths and weaknesses with
respect to his role and functions of the company.
Provides an opportunity to the employees for self reflection and individual goal
setting
14
EVOLUTION OF PERFORMANCE APPRAISALS IN INDIA
First Phase of Performance appraisals began in the early sixties were prepared in the
form of Annual Confidential Reports (ACR0, also known as Employee Service
Records (ESR) in some organizations. Negative remarks in the ACT or ESR were
considered damaging for career growth. It was thus important to keep the boss in
good humor so that the ACR or ESR did not get spoiled. The ESR was largely trait
based and the traits used were sincerity, punctuality, dynamism, job-knowledge,
loyalty, initiative, leadership etc. The ACR and it was this strict confidentiality that
was supposed to serve as the motivating force for them. This may be considered as
Phase 1 of the performance appraisal systems in India.
In the Second Phase that spanned late sixties and early seventies, the main change
was in communication of adverse remarks to the employees. It was felt that unless
this system of communicating to the employees in writing any quality or trait on
which they got a rating of 33 per cent or less. Even though the communication was
sent to the employer by the personnel department or the establishment section in a
routine manner, the employees took it very seriously because it required office played
a key role in moderating the assessment, and he normally had all the powers to
overrule the ratings of the reporting officer of the employee.
In the Third Phase of appraisals, the employee was given a scope to state his own
accomplishments in the confidential report form. The term annual confidential report
was replaced during this period by Performance Appraisal. The appraisal process
began at the end of the year with a statement by the appraise about his significant
accomplishments during that year. Some organizations later turned this “opportunity
given to the appraisee to express his significant achievements as self-appraisal”.
However, this term was a misnomer as there was no scope for the appraisee to
appraise himself. A few organizations subsequently developed this part of the
appraisal by adding other questions about difficulties faced, plans for improvement
next year etc. Everything else remained the same. The formats became a little more
elaborate and in few cases, the appraisal included the details of the actual work done,
largest achieved etc. The confidentiality, however, was maintained as before. In most
cases, there was no communication to the appraisee about the performance
assessment. In a few of them, a column of training needs was introduced. The
appraisals continued to be control oriented and not developmental.
15
It was really in the he Fourth Phase that the system of performance appraisals
underwent a quantum leap. This phase began in the mid-seventies and in a way was
initiated in India by Larsen & Turbo Limited, followed by the State Bank of India ,
Bharat Earth Movers and few other organizations. This phase witnessed a shift from
control to development, appraisal to analysis, strong links to training, confidentiality
to openness and traits to quantifiable tasks and targets.
The movement towards open and development oriented appraisal systems was
initiated by L&T when it adopted a system making appraisal more performance
based, participative (dialogic and interactive), open and developmental. It required the
employee and his reporting officer to plan the performance (the term key performance
areas or KPAs was introduced) or the appraisee in the beginning of the year, review it
after six months with the boss, analyze the factors affecting performance, discuss
developmental needs, have performance counseling and share the ratings with the
appraisee. The system required active participation of the appraisee and was intended
to be a performance planning, performance reviewing. And performance developing
system. In the late seventies and early eighties, most organizations wee fascinated by
this open and development oriented system. Some of them even started new HRD
departments by appointing HRD managers having the skills to design, monitor and
implement the system. While a few organizations switched over to this system, it took
about 10 years of experience to fully understand its intricacies and dynamics. The
change process was slow largely because the employees were not used to the
openness introduced by the new system, the HRD managers did not have enough skill
base to monitor it, and the top management lacked patience and perspective about its
potential advantages. Several organizations could not get out of the mindset created
by earlier confidential report system. They continued to use it for promotions, which
were considered as the most important indicators of development. It is only by the
mid eighties that organizations started setting down and feeling comfortable with the
open appraisal systems.
Phase Fifth has started only in last three years with organizations showing some
maturity and growth in terms of their understanding of appraisals. This phase is
characterized by a movement towards development in spirit and form. This is
symbolized by the substitution of the term performance appraisal by performance
review system, performance development system, performance analysis and
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development to rewards and from comparative assessment to assessment in relation to
plans. There is a movement from rewards and controls to culture building and
development and the new phase also indicates a shift towards appraisal by multiple
sources rather than by only the reporting officer.
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PERFORMANCE APPRAISAL - PROCESS MAP
18
TRENDS IN PERFORMANCE APPRAISAL SYSTEM
Performance appraisal in its traditional from known as ACR-Annual Confidential
Report is often misused than used. Performance appraisal has now been recognized as
a HRD function. In the last decade many organizations have reviewed and changed
their managerial appraisal systems.
1) There is a trend away from the composite appraisals with multiple objectives
(e.g. performance planning, development rewards and promotions)to separate
systems for different systems for different clusters of objectives.
2) There is a move away from isolated appraisal system to the business linked one .
3) There is shift away from closed confidential type to open dialogue and
discussions based system.
4) There is a movement quantitative (pseudo objective) to qualitative (interactive,
improvement and process oriented) system.
5) There is a movement away from boss assessed feedback to 360-degrees
feedback involving customers, peers, team members, subordinates etc. in
addition to supervisors.
6) There is also a trend away from elaborate systems to simple ones.
7) There is a shift from standard systems to flexible and group specific ones.
8) There is a movement from result oriented systems to process oriented system.
9) There is a movement from the assessment of individual performance to the
development of team performance.
10) There is also a movement from complacency to experimentation through
continuous research change.
Performance appraisal refers to the assessment of an employee’s actual performance,
behavior on jobs, and his or her potential for future performance. Appraisal has
several objectives but the main purposes are to assess training needs, to effect
Appraisal of performance proceeds in a set pattern. The steps involved are –defining
19
programme, conducting performance interview, and using appraisal data for different
HR activities.
Objectives’.
Currently most of the companies are using one of the following Performance
Appraisal Methods:
Under the 360 Degree appraisal method the employee is rated from all angles i.e., by
the superiors, subordinates, peers, suppliers, distributors, customers and clients. Under
the Management by Objective method the employee goals are set mutually by the
employee's and the management. And the employees are rated based on the
accomplishment of these goals. Under the Rating Scale method each employee trait or
characteristic is rated on a scale that usually has several points ranging from "poor" to
"excellent" (or some similar arrangement).The traits assessed on these scales include
technical competence, etc. The selected traits should be in some way relevant to the
appraisee's job.
above, alongside and below him. Corporate like General Electric India (GE), Reliance
Industries Ltd. (RIL), Crompton Greaves, Godrej Soaps, Wipro, Infosys, Thermax
and Thomas Cook are all using this tool to find out truths about their managers.
20
Although deployed mostly as a fact-finding technique, 360 º appraisals are also used
variety of sources –the manager, peers, subordinates and even customers and clients”.
Thus, appraisal of an employee is done by his superior, his peers, his subordinates and
clients or outsiders with whom he interacts in the course of his job performance. In
360-degree appraisal, besides appraising the performance of the assesses, his other
attributes such as talents, behavior, values, and technical capabilities are also
appraised.
Besides the employee himself, superior, subordinates and peers play an important role
in the appraisal. Structured questionnaires are used to collect responses about the
employee from his superiors, peers and subordinates. Several parameters relating to
performance and behavior are used in the questionnaires. Each manager is assessed by
a minimum of fifteen colleagues, at least two of them being his bosses, four of them
peer, and six of them subordinates. Even the important customers or clients of the
firm may also be requested to give their assessment of the concerned employee. The
responses are presented collectively to the assesses in the form of charts and graphs.
Comments and interpretations are presented later. Counseling sessions are arranged
with the employee to remove the weaknesses identified in the 360 degree assessment.
(i) The 360 degree appraisal leads to greater self-awareness of those appraised. It
21
(ii) The gap between self assessment and the views of one’s colleagues of peer
group in reduced.
their bosses.
(v) Facts about organizational culture and ambience are brought to light by the
multiple appraisals.
(i) The 360 degree appraisal system ignores performance in terms of goals.
(ii) The candidate being appraised may not accept negative feedback from the
(iv) Linking rewards to findings under 360 degree appraisal can prove to be unfair.
(v) The subordinates and peers might not be fully competent in appraisal.
22
Guidelines for Better Use of 360º Appraisal
The use of multisource appraisal can be effective if the following guidelines are
followed:
(i) Involve people. Ask them who should serve as raters, and give them an
opportunity to review and interpret the results. This will strengthen their
(ii) Ensure that relevant data are being collected. Focus on behaviors and
outcomes that raters are capable of observing and are competent to evaluate.
(iii) Ensure that no single rater can dramatically affect the outcome. Use a
large enough sample or eliminate the highest and lowest scores to ensure that
(iv)Train raters in what and how to observe. The better people understand
what they look for and how to record”critical incidents” (specific things the
person said and did that can be used as examples to support their ratings, and
(v) Ask raters to support their evaluations. Whenever possible, raters should
discuss their observations and evaluations with other raters. These discussions
should trigger thoughts and combat selective memory. Raters should also be
required to provide a rationale for their rating to other raters. This would
(vi)Move slowly and start small. Any organization considering using 360 º
purpose only and then gradually to make it a part of appraisal system. Even
then, the focus should be on the goal-setting portion of the appraisal. People
23
development tool before they can accept it as part of the formal performance
management process.
human resource management system. Multisource feedback really does have the
(vii) Develop a culture that supports open feedback. Not surprisingly, 360º
rather than authoritarian, where giving and receiving feedback are the norm
and are seen as valuable sources of information. If the current system (where
only the supervisor does the appraisal) is not working due to lack of straight
in the organization.
(viii) Clear and agreed on performance measures and behaviors. When 360º
feedback is used for development only, the organization may be able to settle
the list of behaviors and skills that have reasonable face validity and general
behavior for which people are held accountable must be clear, unambiguous
and specific.
(ix)The users must support the system and be willing to invest the time
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(x) Sound feedback process. While the way the data are collected and
presented are always important, two aspects of sound 360º feedback procedure
are particularly relevant when the data are used for appraisal purpose: the
validity and reliability of the practices for which people will be measured and
(i) Appraisal by Superior/ Boss. This is the most important element of the 360
the superior to ensure that employee sets goals not only in the area of business
performance but also in the areas that are vital to the organization. These are
called corporate thrust areas and may include relationship management, safety
area and needs improvement for enhancing effectiveness then goal may be set
what the organization plans for the employee. Secondly, if the employee has
employee the realistic picture given his/ her strengths, development areas,
(ii) Appraisal by the Peer Group. The peers play an important role in the life
of an employee in the organization. The can also provide a deep insight into
25
the personality make up, attitude and style of working of the employee. For
better results, it is essential to select the right peers for the purpose of
appraisal. They must include peers both from within the department as well as
from the other departments, which are directly connected with the working of
Three to five internal customers should normally be chosen for peer appraisal.
In order to achieve the purpose of 360º appraisal, the peer group appraisal must
strive to get the feedback on (a) employee’s working style, (b) sensitivity towards
others, (c) spirit of co-operation and collaboration, and (d) ability to work as a team
member.
his appraisal. Thus, the purpose of subordinate’s appraisal is to get first hand
their superior on the kind of things they would like him/ her to continue doing
(status quo), things they would like him/ her to stop doing (areas for corrective
action), things they would like him/ her to start doing (areas for new initiatives).
26
Self appraisal facilitates the employee to identify his/ her strengths and
established system, employees use the self appraisal very effectively and
organizations also find that employees often are their own strongest critics and
opportunity to the employee to express his career moves for the future.
However, this is only for gathering information and that under the given
interest to at least know on a first hand basis the aspirations of its employees.
27
FINDINGS AND ANALYSIS
stock market.
operating and in order to keep it with the pace of the environment it believes
3- Jindal Brothers has a matrix kind of a structure wherein it takes the form of
making where interest conflicts arise and direct contacts replaces bureaucracy
what.
Line Organization
28
It is the traditional type of organization. It refers to a direct chain of command from
top to bottom. In the line organization the lines of direction are straight and vertical.
Authority and responsibility flow vertically in an unbroken straight line from one
level to another. Every superior has complete command over his subordinate and
every subordinate has to report his work to only the senior or to the level above his
own level.
Staff Organization
Personal Staff:
Specialized Staff:
General Staff:
It includes a group of experts attached to the central office and it provides general
Complaint Handling
As part of the process for capturing customer complaints and acting on them, Jindal
Brothers has procedures that ensure that each customer complaint is captured,
recorded and reported as part of a formal review system. The process includes related
29
creating new procedures (or modifying existing ones) to prevent similar problems
Employee Excellence At Jindal Brothers they believe that they can build a world
class structures. Their vision document, which drives each employee as well as the
employees. Starting from the recruitment process and culminating in annual reviews,
Jindal Brothers has quality processes for tracking and maintaining quality standards.
Recruitment
For recruitment, Jindal Brothers administers various tests to the applicant. These
include aptitude tests, IQ tests, management tests, and personality tests. Each of the
tests captures different information about the individual so that Jindal Brothers can
ensure that the person is appropriate for the job and will fit into the company culture.
Goal Setting Before starting on the job, employees discuss their role and
responsibilities with their supervisors. This results in the setting of goals and
objectives for each individual for the coming year. This process clarifies the
expectations from each individual during the year. Each employee is expected to
monitor his/her goals by filling in a focus report every month, which is then discussed
Training
Jindal Brothers recognizes the fact that the skills of employees need to be upgraded
constantly. Jindal Brothers trains each and every employee continually through the
year. In fact, Jindal Brothers has one of the highest training days per employee in the
world: each Jindal Brothers employee receives over 11 days of training each year.
30
PERFORMANCE APPRAISAL AT JINDAL BROTHERS
While on the job, performance reviews of every employee are done every quarter. The
reviews are done with a view to helping the individual excel at his/her workplace. In
case there are any training requirements, these are noted and acted upon in the coming
quarter. Also, the goals and objectives for the employee are re-visited for
promotional purposes
These are done so as to motivate the employee and improve his performance level.
31
c) The actual performance is hence measured.
d) After measuring of the actual performance, the same is compared with the
standards set
f) And finally, if need arises corrective action is initiated. For this purpose the
32
Some of the methods used at Jindal Brothers are:
3. Paired Comparisons
It is based on the performance level of the employee generally classified on the basis
of:
• Targets achieved
Thus we can observe that the appraisal system is not a biased one but based on
performance and productivity basis. All the respective heads of the employee together
with the senior persons at the center brainstorm and then give the promotion.
• Coworkers – 40%
• Subordinates - 20%
• Superior - 40%
33
Thus the feedback given by these members at Jindal Brothers is considered under a
holistic view and then the employee is given a performance appraisal. This evaluation
method involves 40% feedback from the coworkers which says that the employee
should not only maintain good rapport with the senior or junior but majorly with the
coworkers also.
3. Paired Comparisons
The evaluator compares all possible pairs of subordinates on their overall ability to do
the job. Due to the subjectivity of evaluating overall performance some managers me
various centers. This is highly confidential and the information is sent in sealed
envelopes and opened only at the time of the final evaluation. There is no further
34
SURVEY FINDINGS
In this section, basic data for a group of 100 employees from lower, middle, senior
Frequency and frequency percent scores were computed for each of the groups of the
Through the questionnaire it was found that promotions were and known to most of
the top and senior management while middle and lower management were a bit not
clear about it. This could be attributed to the fact that senior and top management
were more involved in decision making and policy formulation than are the middle
Same reason could be attributed to the fact that code 1 managers were absolutely clear
of what was expected out of them every year, whereas 50% senior management ware
clear or partly clear about the same and the about 20% of middle management were
not clear about it and still further, the 71% of lower management was not aware of
85% of code 4 employees said that they could express their reason of failure. The
responses of 50% of Middle Managers were bit favorable whereas 100% senior
management also thought that they did not get the opportunity to express their cause
of failure. The 60% of top management were portly able to express their cause of
failure. This may be because the appraisal system is more of less performance based
and human factor is by and large overlook. Whereas, at the lower levels of the
organization, performance can be quantified, and the managers are made accountable
at the higher echelons the tasks are too complex and therefore cannot be assessed on
the basis of quantified performance and therefore the top and senior management
35
believed that the promotions are also for motivation whereas the attitude wanes as the
level of hierarchy goes up. This is probably because of the appraisal of performance
based on the quantity or results. If the employee’s output is good of better they get
promotions and also get motivation to achieve better performance. At the higher
levels the results are more of subjective nature therefore promotions does not accrue
Most of the managers feel that the mechanism for potential appraisal is not adequate.
This may be, because the training programmers are also not developed.
As far as feedback is from superiors is concerned, most of the top and senior
management were of the view that they constantly receive feedback. This is because,
they take decisions crucial to the existence of the organization and therefore are
closely watched and monitored as compared to the employees in the lower & middle
levels.
Again the top management felt that they with their superior decide about their job but
100% of senior management did not feel the same at all. This is because again due to
power centeredness and power difference in the organization, being a tall organization
60% of lower management thought that their creativity was definitely not adequately
recognized whereas the top management believed that the organization encouraged
employee. 70% of lower management thought that the system was not free from
biases and same is felt by most of the middle, senior and top management. This shows
that human instincts and behaviors influence the performance appraisal system.
36
60% of lower management was not clear about the goals and objectives of the
organization. Most of top management thought that they were clear or very clear,
about the organization goals. This is because, the power distance is extent and
communication system of the organization is not very effective. This also shows that
70% of lower managers thought that the performance appraisal system did not
identify their training needs. 80% of senior managers also thought the same. But the
view of top management differed in the sense that they felt that the system helped
them surface their training needs. The reason being that the training programmes are
not fully developed and are not constantly evaluated in the organization. The top
management felt that there was a scope of super review. The senior management also
felt a bit the same but lower and middle management keep attending meetings and had
already developed rapport with their superiors and so could easily talk out their
appraisal results whereas this is not so for lower and middle management. They are
not able to approach their senior easily and are therefore could not appeal for super-
reviews.
60% of lower managers said that they do not get opportunity for self review and
reflection. This is because performance appraisal is lacking human touch to it. The
appraisals are entirely based on performances, overlooking the cause of successes and
failures. The appraisal system thus does not meet individual’s developmental needs
and also does not contribute to employee’s job satisfaction and moral development.
37
2. Findings from Observation and Discussions
The organization believed that self appraisal is the best for managers and above.
subordinates is essential.
The performance of the employees is not regularly monitor and the required feedback
is provided to the subordinates from time to time. The appraisals are conducted at
fixed intervals. The organization believes in using appraisal for rewarding and
increments.
There was a neither formal nor informal discussion on job specification and tasks to
There was no formal performance appraisal taking place till now in the organization.
There fore, there were no written records of such activity in the personal files of the
employees. However people were being appraised informally by the superiors and got
It would not be wrong to say that interpersonal relations and personal biases (i.e.
The management is in the process of restructuring and developing such policy in the
organization
38
.
This chapter deals in tabular presentation results and their analysis for the purpose of
easy reading the section has been divided into two parts.
• Inference
39
1. In your company, the key competencies required for each job are already
identified?
Not true 37 74
80
70
60
50 Very true
40
True
30
20 Partly true
10 Not true
0
No. of
responses
Inference: Most of the respondents (74%) found the above statement to be ‘Not
True”. This was followed by 18% of the respondents feeling that this statement was
‘Partly True’ for their organization. Only 8% of the people found it to be ‘True’.
Remarks: Although the appraise does not have a clear understanding of what is
expected of him at the beginning of the year (Inference I), both he and the appraiser
know what his job is all about. This also shows that although an employee knows
what his current to do to be rated higher by the reporting officer. The responsiveness
in category of Partly True and Not True may be due to the face that job content in
Jindal Brothers is flexible and not well defined and some people find it difficult to
define their jobs. However, most of the people have a general idea of the scope of
their jobs.
40
2. There are mechanisms that help employees develop their potential for the next
round of job?
Not true 20 40
50
40
30 Very true
20 True
Partly true
10
Not true
0
No. of
responses
Inference: Quite a large number of respondents (40%) shared the view that the
appraisal system did not give a clear understanding of all appraisals, job to both
appraiser and appraise by saying that it was ‘Not True’. Only 50% and 10% of the
respondents felt that the statement was ‘True’ and ‘Partly True’ respectively.
Remarks: Although the appraise does not have a clear understanding of what is
expected of him at the beginning of the year (Inference I), both appraisee and the
appraiser know what his job is all about. This also shows that although an employee
knows what his current to do to be rated higher by the reporting officer. The
responsiveness in category of Partly True and Not True may be due to the face that
job content in Jindal Brothers is flexible and not well defined and most people find it
difficult to define their jobs. However, most of the people have a vague idea of the
scope of their jobs.
41
3. Employees regularly receive feedback about their potential for higher level
jobs?
70
60
50
40 Very true
30 True
20 Partly true
10 Not true
0
No. of
responses
Inference: 70% of the respondents agreed that the appraisal system did not helped
them to know their potential to perform at higher levels. Plan their performance well
by saying that it was ‘Not True’. Only 16% and 14% people felt that this statement
was ‘True’ and ‘Partly True’.
Remarks: The above inference shows that the PA system in Jindal Brothers does not
give feedback about ‘planning for performance’ to its employees. It helps anticipating
work needs in order to arrange work in logical order. It also helps in devising efficient
methods to attain pre-determined plans. Again due to flexibility in job content, some
people may have found problems in planning their performance systematically.
42
4. Job rotation is practiced widely to help people develop their potential in new
areas?
50
40
30 Very true
20 True
Partly true
10
Not true
0
No. of
responses
Inference: About 50% of the respondents felt that the above statement was ‘Partly
True’. It was followed by 36% people feeling that it was ‘True’ with 14% believing
that it was ‘Very True’.
Remarks: Job rotation is the most economical way of providing training to the
employees. It facilitates both organization and individual development. Job rotation
gives an individual hand on experience for carrying out various different functional
activities. The performance appraisal system should include this process in the
training need identification performance.
43
5. The appraisal system provides an opportunity for self-review and reflection?
Not true 37 74
80
70
60
50 Very true
40
True
30
20 Partly true
10 Not true
0
No. of
Responses
44
6. Promotions are based strictly on need rather than to reward individuals?
50
40
30 Very true
20 True
Partly true
10
Not true
0
No. of
Responses
45
7. The appraisal system gives each appraisee an idea of what is expected of him
next year?
60
50
40
Very true
30
True
20
Partly true
10
Not true
0
No. of
Responses
Inference : 52% of the respondents felt that the above statement was ‘Partly
True’. This was followed by 28% and 20% of the respondents
feeling that it was ‘Not True’ and ‘True’ respectively.
46
8. It is designed to aid the appraisee and appraiser jointly understand the
formers job?
50
40
30 Very true
20 True
Partly true
10
Not true
0
No. of
Responses
Inference : There was a mixed response to the given statement. 44% of the
responses consisted of “Partly True’ ratings. 28% respondents
believed that this was ‘Not True’ whereas 28% believed that
this was ‘True’.
47
9. The performance appraisal provides an opportunity for self review and
reflection?
50
very true
40
30 true
20
partly true
10
0 not true
No. of
Responses
Inference : Most of the respondents agreed that the appraisal system catered
to their development needs (50% believed that it was “Partly
True”) and it was very closely followed by 46% saying it was
“Not True”. There were 4% cases, which believed that it was
‘True’.
48
10. The appraisal procedure allows the appraisee to express his developmental
needs?
60
50 very true
40
True
30
20
partly true
10
0 not true
No. of
Responses
Remarks : The above inference implies that people are satisfied with the
PA system in Jindal Brothers and believe that it provides scope
for developing their potential. This may be due to the fact that
the self appraised of the appraise invites suggestions on job
enrichment, training needs and steps to be taken to improve
individual’s effectiveness.
49
11. The system has scope to correct the biases of the assessor through a super
review?
70
60 very true
50
40 true
30
20 partly true
10
0 not true
No. of
Responses
Inference : 68% of the people rated the above statement as ‘Not True’ 28%
believed it was ‘Partly True’ with 4% disagreeing by saying that
it was ‘True’.
50
12. The appraisal system provides for a frank discussion between appraiser and
appraisee?
100
very true
80
60 True
40
partly true
20
0 not true
No. of
Responses
Inference: An astounding 88% rated the above statement as not true with 12%
that it was true.
Remarks Although, most of the people felt that there was mutuality and trust
between appraiser and appraise, it may again depend on the
proximity and relationship shared by an employee and his/her boss.
The ratings may be based, as the employees may have felt that a
negative answer may adversely affect them. The reason behind this
conclusion is that a low score on extent of communication and
discussion between appraisers and appraise and high score on
mutuality and trust give a contradictory view.
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13. The procedure allows for the communication of CEO‘s goal to the
workforce?
80
70 very true
60
50
true
40
30
20 partly true
10
0 not true
No. of
Responses
Inference : The typical response in this case was ‘Not True’, by 76% of the
respondents. 20% rated the above statement as ‘Partly True’ and
4% as ‘True’.
52
14. The appraisal system brings out the training needs of the employees.
50
very true
40
30 True
20
partly true
10
0 not true
No. of
Responses
53
15. The performance appraisal system clarifies the career prospects, aspirations
and intentions?
80
70 very true
60
50
true
40
30
20 partly true
10
0 not true
No. of
Responses
Inference : The typical response (80%) for the above statement was ‘Not
True’ 10% employees believed it to be ‘Partly True’ with an
equal 10% employees believing if to be ‘Not True’.
Remarks : The general picture drawn from the above inference is that all
the employees are not clear as to what the PA system is all
about and what is the reason behind its existence. This shows
that PA system has acquired an important status in Jindal
Brothers with all employees acknowledging its presence and
essence.
54
16. The appraisal system provides a rational basis for salary recommendations?
60
50 very true
40
True
30
20
partly true
10
0 not true
No. of
Responses
Inference : 56% of the respondents felt that the above statement was ‘Not
True’. 28% responses included ‘Partly True’ ratings whereas
16% responses included ‘True’ ratings.
Remarks : The employees do not want a fixed increment for their great
performance. The company should make recommendations
related to salary on the basis of regular performance feedback
about every employee since the frequency of performance
measurement varies from department to department, it is
difficult to carry out this work smoothly.
55
17. The company relates reward to your performance?
80
70 very true
60
50
true
40
30
20 partly true
10
0 not true
No. of
Responses
Inference :` Most of the respondents (72%) felt that the above statement was
‘Not True’. 20% believed it to be ‘True’ whereas a mere 8% felt
that it was ‘partly True’.
Remarks : The company uses the reward system as a motivating force for
enhancing the performance of its employees. Rewards should be
promptly given to high achievers in terms of increment,
promotions, increased job responsibilities etc. for their
accomplishment.
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18. What kind of an appraisal system will bring out the best of an employee?
appraisal by
40 all superiors
35
30
25
20 appraisal by
15 im m ediate
10 superior
5
0 appraisal by
No. of reference
Responses team
appraisal by
reference
team and self.
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CONCLUSIONS & RECOMMENDATIONS
The appraisal system should be more sensitive and responsive to current competitive
environment. This is possible through making the organization.
• Cost effective
• Technology oriented
• People oriented
• Focused towards values and culture that would help unbottle hidden talent.
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PERIODIC PERFORMANCE REVIEW AND PLANNING:
There should be some aspect in the PA forms, which deals with the effect of Internal
Influences, organizational influences and external influences on performance of
employee to make the PA system more sensitive to changes.
The work done towards modifying and developing performance appraisal systems,
time to time should be continued.
• Individual rewards should be delinked with the PA system. The focus should
shift to team rewards. To recognize individual excellence, the team rewards. To
recognize individual excellence, the team should recommend rewards to tone up
motivation levels in the entire team.
Good performers should be recognized and rewarded, whereas weak performers need
to be encouraged to become better performers. PA systems when liked with individual
rewards and promotions create more problems than they help in motivating people.
They encourage fewer employees and discourage more. They do not develop the team
spirit but rather enhance interpersonal comparisons and power politics. The focus
should be shifted from rewarding the performance of few to development of
performance of many.
59
However there is also a need for recognition and rewarding good work. Alternative
systems of rewarding with multiple reward/recognition mechanism are needed. But
these systems should be separated from other systems (like career planning).
Role of HRD
• “Role analysis” should find a place in Jindal Brothers “role directories should
be published with key functions for each role.
what a person has done and how has he done. The nature of Performance appraisal
and its effectiveness depends a great deal on how human resources in the organization
are viewed and treated. People are to be treated as resources of the organization.
Unlike the other resources, the human resources have the capability of expanding to
should understand the nature and capabilities required to perform different functions
organizational content.
These capabilities can be considered to fall under four categories. They are:-
60
(i) Technical capabilities
The extents to which the various capabilities are required for the performance of the
Performance appraisal system can serve the following purposes if designed properly
(a) Help each employee to understand more and more about his role and become clear
(b) Helps each employee to understand his own strengths and weaknesses with
(e) Provides an opportunity to the employees for self reflection and individual goal
setting
61
RECOMMENDATIONS
Being in the field of it improve the frequency of the trading modules and workshops.
3. More stress relieving packages should be offered to the mentally stressed staff.
SAMPLE QUESTIONNANIRE
62
I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The
information furnished by you will help knowing the effectiveness of the present
appraisal and reward system and if need be designing of a new appraisal system. The
data will be kept confidential and will be used for academic purpose only.
1. In your company, the key competencies required for each job are already
identified.
a) Very true b) true
c) Partly true d) not true
2. There are mechanisms that help employees develop their potential for the next
rung of job.
a) very true b)true
c) partly true d) not true
3. Employees regularly receive feedback about their potential for higher level
jobs
a) very true b)true
c) partly true d) not true
4. Job rotation is practiced widely to help people develop their potential in new
areas.
a) very true b)true
c) partly true d) not true
5. Your company’s promotion policies are clearly defined and shared with all
employees.
a) very true b)true
c) partly true d) not true
7. The appraisal system gives each appraisee an idea of what is expected of him
next year?
a) very true b)true
c) partly true d) not true
63
10. The appraisal procedure allows the appraisee to express his developmental
needs?
a) very true b)true
c) partly true d) not true
11. The system has scope to correct the biases of the assessor through a super
review?
a) very true b)true
c) partly true d) not true
12. The appraisal system provides for a frank discussion between appraiser and
appraisee?
a) very true b)true
c) partly true d) not true
13. The procedure allows for the communication of CEO‘s goal to the
workforce?
a) very true b)true
c) partly true d) not true
14. The appraisal system brings out the training needs of the employees.
a) very true b)true
c) partly true d) not true
15. The performance appraisal system clarifies the career prospects, aspirations
and intentions.
a) very true b)true
c) partly true d) not true
16. The appraisal system provides a rational basis for salary recommendations.
a) very true b)true
c) partly true d) not true
18. What kind of an appraisal system will bring out the best of an employee?
a) appraisal by all superiors b) appraisal by immediate
superior
c) appraisal by reference team c) appraisal by reference team
and self.
64
sss
BIBLIOGRAPHY-
C.R KOTHARI
C.B GUPTA
INTERNET
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