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COMPANY
RAJEEV
Roll No=1335170052
1 l Pages
PREFACE
Managing human resources in todays dynamic environment is becoming more and
complex as well as important. Recognition of people as a valuable resource in the
organization has led to increases trends in employee maintenance, job security, etc
The first section of my report deals with a detailed company profile. It includes the
companys history: its activities and operations, organizational structure, etc. This
section attempts to give detailed information about the company and the nature of
its functioning.
The second section deals with performance appraisal. In this section, I have given a
brief conceptual explanation to performance appraisal. It contains the definitions,
process and significance of performance appraisal.
In the third section of my report, I have conducted a research study to evaluate the
process of performance appraisal at EARTH INFRASTRUCTURE Ltd. This section also
contains my findings, conclusion, suggestions and feedback.
The fourth and final section of this report consists of extra information that I related
to the main contents of the report. These annexure include some graphs and
diagrams relating to the company, graphs relating to the study and important
documents upon which the project is based.
4 l Page
KNOWLEDGEMENT
World often fail to express inner feeling of and indenes to ones benefactors but
then it is the only readily available medium through which the undersigned can
express her sincere thanks to all those are associated with her work in one way of
the other.
I feel it my profound privilege to express my most sincere gratitude and
indebtedness to my project guide who were instrument in providing me direction,
constant encouragement and cooperation in my attempt to take this project to this
logical conclusion.
I heartily want to thank to ALL FACULITY OF MBA DEP for having granted this
wonderful opportunity to pursue my summer project at EARTH INFRASTRUCTURE
properly guide me time to time regarding completion of my project report, and to all
the respondents who featured in my survey but remain as nameless entities, I
present a deep bow of gratitude. And also to all those who have been of help
directly or indirectly but have not featured hare.
I also here by thanks to the director of KRISHNA INSTITUTE OF TECHNOLOGY who
granted me this wonderful opportunity to do my summer training in EATRH
INFRASTRUCTRE
5 l Page
EXECUTIVE SUMMARY
The history of performance appraisal is quite brief. Its roots in the early 20 th century
can be traced to Taylors pioneering Time and Motion studies. But this is not very
helpful, for the same may be said about 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 years ago.
In many organizations but not all appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority of
available merit pay increases, bonuses and promotions.
By the same token, appraisal results are used to identify the poorer performers who
may require some form of counseling, or in extreme cases, demotion, dismissal or
decreases in pay. (Organizations need to be aware of laws in their country that
might restrict their capacity to dismiss employees or decrease pay.)
The purpose of this study has been to determine whether the performance appraisal
was used for employee development and whether the appraisal was emphasized as
an important part of the performance appraisal process. Also whether the
performance appraisal helps in increasing companys profitability.
Our study suggested that the performance appraisal has helped in increasing the
profitability of EARTH INFRASTRUCTRE which was clearly shown by their
performance enhancement. Certain loop holes has been determined and
suggestions were made.
6 l Page
TABLE OF CONTENTS
S.NO
1
2
3
5
6
7
8
9
10
11
12
13
14
15
Title
Introduction
Company Profile
Human Resources Management
Performance Appraisal
Rationale of the study
Performance
A. What is Performance?
B. How is Performance managed?
C. Understanding Performance Management?
Performance Appraisal
Performance Management Cycle
Methods of Performance Appraisal
Performance Rating Process
Benefits of Performance Appraisal
Errors in Performance Appraisal
Reasons to conduct Performance Appraisal
Points to be considered during Performance Appraisal
Roles in Performance Appraisal process
Performance
Appraisal
method
adopted
by
INFRASTRUCTRE
Research and survey
Objectives of the study
Research Methodology
Findings
Performance Review and Development Plan 2012
Recommendations
Conclusion
Appendices
Bibliography
Page No
1
17
18
19
23
42
EARTH
60
64
93
95
100
101
7 l Page
COMPANY PROFILE
8 l Page
Its constant goal and this is evident in all its projects. All these practices policies,
heritage, success and reputation are carried ahead by earth infrastructure ltd
9 l Page
10 l Page
11l Page
ABSTRACT
Human Resources (or personnel)
management, in the sense of getting things
done through people, is an essential part of every managers responsibility, but
many organizations find it advantageous to establish a specialist division to provide
an expert service dedicated to ensuring that the human resources function is
performed efficiently.
People are our most valuable asset is a clich, which no member of any senior
management team would disagree with. Yet, the realities for many organizations are
that their people remain undervalued, under trained and underutilized.
12 l Page
People are our most valuable asset is a clich, which no member of any senior
management team would disagree with. Yet, the realities for many organizations are
that their people remain undervalued, under trained and underutilized.
The market place for talented, skilled people is competitive and expensive. Taking
on new staff can be disruptive to existing employees. Also, it takes time to develop
cultural awareness, product/process/organization knowledge and experience for
new staff members.
13 l Page
Recruitment
Selection
Induction
Performance Appraisal
Training & Development
Recruitment
The process of recruitment begins after manpower requirements are determined
in terms of quality through job analysis and quantity through forecasting and
planning.
Selection
The selection is the process of ascertaining whether or not candidates possess
the requisite qualification, training and experience required.
Induction
Induction is the technique by which a new employee is rehabilitated into the
changed surroundings and introduced to the practices, policies and purpose of
the organization.
Training
Training is concerned with imparting developing specific skills for a particular
purpose. Training is the act of increasing the skills of an employee for doing a
particular job. Training is the process of learning a sequence of programmed
behavior.
In earlier practice, training programmed focused more on preparation for
improved performance in particular job. Most of the trainees used to be from
operative levels like mechanics, machines operators and other kinds of skilled
workers. When the problems of supervision increased, the steps were taken to
train supervisors for better supervision.
Development
Management development is all those activities and programmed when
recognized and controlled have substantial influence in changing the capacity of
the individual to perform his assignment better and in going so all likely to
increase his potential for future assignments.
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1. PERFORMANCE APPRAISAL
Almost every organizations in one way or another goes through a periodic
ritual, formally or informally, Known as performance appraisal. Performance
appraisal has been called many things. The formal performance appraisal has
been called a tool of management, a control process, an activity and a critical
element in human resources allocation. Uses for performance appraisal have
included equal employment opportunity considerations, promotions, transfer
and salary increases. Primarily performance appraisal has been considered an
overall system for controlling an organization. Performance appraisal has also
been called an audit function of an organization regarding the performance of
individuals, groups and entire divisions.
Performance appraisal may be defined as a structured formal interaction
between a subordinate and supervisor, that usually takes the form of a
periodic interview (annual or semi-annual), in which the work performance of
the subordinate is examined and discussed, with a view to identifying
weakness and strengths as well as opportunities for improvement and skills
development
Almost every organization in one way or another goes through a periodic
ritual, formally or informally, known as performance appraisal. Performance
appraisal has been called many things. The formal performance appraisal has
been called a tool of management, a control process, an activity and a critical
element in human resources allocation. Uses for performance appraisal have
included equal employment opportunity considerations, promotions, transfer
and salary increases. Primarily performance appraisal has been considered an
overall system for controlling an organization. Performance appraisal has also
been called an audit function of an organization regarding the performance of
individuals, groups and entire divisions.
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WHAT IS PERFORMANCE?
Performance is synonymous with behavior it is what people actually do.
Performance includes those actions that are relevant to the organizational growth
and can be measured in terms of each individuals proficiency (level of
contribution). Effectiveness Performance refers to the evaluation of results of
performance that is beyond the influence or control of the individual.
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PERFORMANCE
CORPORATE
DETERMINE
INDIVIDUAL
ENSURE
PERFORMANCE
PERFORFANCE
LINKED
INCREMENTS
18 l Page
Characteristics
1. Performance Appraisal is a process
2. It is the systematic examination of the strengths and weakness of employee
in terms of job.
3. It is scientific and objectives study. Formal procedures are used in the study.
4. It is an ongoing and continuous process where in the evaluations are
arranged periodically according to a definite plan.
5. The
Limitations
1.
2.
3.
4.
Errors in Rating
Lack of reliability
Multiple objectives
Lack of knowledge
19 l Page
R
E
W
A
R
D
R
A
T
E
P
L
A
N
D
E
V
E
L
O
P
M
O
N
I
T
O
R
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Employee OR rating
Official creates the
performance
objectives
Employee
and
Rating
Official
discuss
performance
objectives
Employee
Rating Official Signs
Reviewing Official
signs
Acknowledges and
signs
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Employee
initiates
Employee assesses
progress
Progress against
performance
objectives and
Rating Official
assesses progress
against performance
objectives and
assigns rating
Employee
Rating Official Signs
Acknowledges and
signs
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Employee initiates
Employee assesses
progress
Employee signs
Against performance
objectives and
The following process flow identifies the step within the PAAC to develop your
Rating of Record.
Rating
Official
initiates
Rating
Official
signs
Employee
acknowledg
es and signs
Rating Official
assesses
progress
against
performance
objectives and
Reviewing
Official signs
Rating
Official
comments
Performance
Review
Authority
(PRA) reviews
Reviewing
Official
comments
Rating Official
informs
employee of
their rating of
record
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Essay appraisal
In its simplest form, this technique asks the rater to write a paragraph or more
covering an individuals strengths, weaknesses, potential, and so on. In most
selection situations, particularly those involving professional, sales, or managerial
positions, essay appraisal from former employers, teachers, or associates carry
significant weight.
This technique may not yield the depth of an essay appraisal, but it is more
consistent and reliable. Typically, a graphic scale assesses a person on the quality
and quantity of his work (is he outstanding, above average, or unsatisfactory?) and
on a variety of other factors that vary with the job but usually include personal traits
like reliability and cooperation. It may also include specific performance items like
oral and written communication.
Field review
The field review is one of several techniques for doing this. A member of the
personnel or central administrative staff meets with small groups of raters from
each supervisory unit and goes over each employees rating with them to (a) identify
areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c)
determine that each rater conceives the standards similarly.
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Forced-choice rating
Like the field review, this technique was developed to reduce bias and establish
objective standards of comparison between individuals, but it does not involve the
intervention of a third party.
Management by objectives
To avoid, or to deal with, the feeling that they are being judged by unfairly high
standards, employees in some organizations are being asked to set or help set
their own performance goals. Within the past five or six year, MBO has become
something of a fad and is so familiar to most managers that i will not dwell on it
here.
Ranking methods
For comparative purpose, particularly when it is necessary to compare people who
work for different supervisors, individual statements, ratings, or appraisal forms are
not particularly useful. Instead, it is necessary to recognize that comparisons
involve an overall subjective judgment to which a host of additional facts and
impressions must somehow be added. There is no single form or way to do this.
The best approach to be a ranking technique involving pooled judgment.
The two most effective methods are alternation ranking and paired comparison
ranking.
1. Alternation ranking:
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Advantages
Instead of assuming traits, the MBO method concentrates on actual
outcomes. If the employee meets or exceeds the set objectives, then he or she has
demonstrated an acceptable level of job performance. Employees are judged
according to real outcomes, and not on their potential for success, or on someones
subjective option of their abilities.
The guiding principle of the MBO approach is that direct results can be observed
easily. The MBO recognizes the fact that it is difficult to neatly dissect all the
complex and varied elements that go to make up employees performance.
MBO advocates claims that the performance of employees cannot be broken up into
so many constituent parts, but to put all the parts together and the performance
may be directly observed and measured.
Disadvantages
This approach can lead to unrealistic expectations about what can and cannot be
reasonably accomplished. Supervisors and subordinates must have very good
reality checking skills to use MBO appraisal methods. They will need these skills
during the initial stage of objective setting, and for the purposes of self-auditing and
self-monitoring.
Variable objectives may cause employee confusion. It is also possible that fluid
objectives may be distorted to disguise or justify failures in performance.
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SIGNIFICANT
CONTRIBUTOR
supervision.
5. Sets examples for others.
9. Is self motivated.
10.Supportive team player.
11.Leads own team very effectively.
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Central tendency:
Halo error:
Rater effect:
Extensively high or low score are given only to certain individuals or groups based
on the raters attitude towards them and not on actual outcomes or behaviors; sex,
age, race and friendship biases are examples of this type of error.
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Spillover effect: -
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employees to have significantly greater influence upon the quality of their working
lives. In these times of emphasis on quality, there is a natural equation: better
quality goods and services from employees who enjoy better quality goods and
services from their employers.
This meeting should be based on clear and mutual understanding of the job in
question and the standards and outcomes, which are a part of it. In normal
circumstances, employees should be appraised by their immediate managers on
one to one basis. Often the distinction between performance and appraising is not
made. Assessment concerns itself only with the past and the present. The staff is
being appraised when they are encouraged to look ahead to improve effectiveness,
utilize strengths, redress weakness and examine how potentials and aspirations
should match up.
It should also be understood that pushing a previously prepared across and desk
cursorily inviting comments, and expecting it to be neatly signed by the employee is
not appraisal this is merely a form filling exercise which achieves little in terms of
giving staff any positive guidance and motivation.
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.
.
.
.
2. Quantity of work
. Competence, thoroughness, and efficiency of work regardless of volume.
. Neatness and accuracy
3. Teamwork:
. Establish and maintain effective working relationship with other.
. Shares information and resources with other.
. Follows instructions of supervisor and respond to requests from others the
team in a helpful
manner.
. Contributing work and effort to group performance to meet agreed upon
objectives and achieve team success.
4. Job Knowledge:
. Application of appropriate level of technical and procedural knowledge in
specific field.
. Degree of technical competence
. Understanding of job procedures, methods, facts and information related to
assignments.
. Perform duties with minimal supervision but seek guidance where and when
appropriate to job, consults the appropriate staff.
34 l Pages
5. Initiative
. Consider the extent to which the employee sets own constructive work
practices under commends and creates own procedures.
. Self-starter, develop and implement new methods, procedures, solution,
concepts, designs and/or applications of existing designs or procedures.
35 l Pages
9. Planning and organizing:
.
.
.
.
.
10.
Staff development
Dependability
36 l Page
the organization itself will become more effective. The task of reviewing situations
and improving individual performance must therefore be a key task for all
managers.
For appraisal to be effective, which means producing results for the company, each
manager has to develop and apply the skills of appraisal.
These are:Setting standards on the performance required, which will contribute to the
achievement of specific objectives
Monitoring performance in a cost effective manner, to ensure that previously
agreed performance standards are actually being achieved on an ongoing basis.
Analyzing any differences between the actual performance and the required
performance to establish the real cause of a shortfall rather than assume the fault
to be in the job holder.
Interviewing having a discussion with the job holder to verify the true cause of a
shortfall, a developing a plan of action, which will provide the performance, required
Appraisal can then become a way of life, not concerned simply with the regulation
of rewards and the identification of potential, but concerned with improving the
performance of the company. The benefits of appraisal in these terms are
immediate and accrue to the appraising manager, the subordinate
manager/employee, and to the company as a whole.
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Discuss with the reporting managers on the behavioral traits of all the
employees for whom he / she is the reviewer
Where required, independently assess employees for the said behavioral
traits; such assessments might require collecting data directly from other
relevant employees
c) HOD (In some cases, a reviewer may not be a HOD)
Presents the proposed Performance rating for every employee of his / her
function to the Normalization committee.
HOD also plays the role of a normalization committee member
Owns the performance rating of every employee in the department
d) HR Head
Secretary to the normalization committee
Assists HODs / Reporting Managers in communicating the performance rating
of all the employees
Normalization Committee
Decides on the final bell curve for each function in the respective Business
Unit / Circle
Reviews the performance ratings proposed by the HODs, specifically on the
upward / downward shift in ratings, to ensure an unbiased relative ranking of
employees on overall performance, and thus finalize the performance rating
of each employee
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39 l Pages
current thinking among the corporate honchos that this feedback provides a
more conductive environment for continuous learning and the inputs for
employees to enhance their performance.
According to a leading HR consultant, 40% of the American Companies used
360 degree feed back in 1995. This percentage is likely to surge to 65% in
2000. American society for training and development reviewed the training
practices of more than 750 firms. Out of 750 firms, 55 firms relied heavily on
360 degree feedback for individual development plans and annual
performance review. A recent study done in 2006 suggests that an over
whelming 90% of fortune 500 companies have joined the 360 degree
feedback bandwagon.
Though 360 degree is hailed as the greatest leadership development tools by
western countries, it is yet to make much headway in India. Indian corporate
are tad bit slow off the block to embrace 360-degree appraisal system. The
reasons are not far to seek. Indian business houses are markedly reluctant to
embrace the system for fear of tinkering with traditional hierarchical
structures. Nevertheless, top-notch companies like Wipro, Infosys. Maruti are
few of them who have gone 360 degree way and make success of it. 360
performance is an extremely formalized process, where an individual or
leaner or subject receives feedback from multiple individuals fall in the remit
of competencies, behavior and performance out comes. The raters, among
others include individual boss, direct reports, colleagues, internal and
external customers and suppliers. The subject will also carry out a selfassessment, which will be included in the appraisal.
40 l Pages
Fourthly Customers will be happy to find their voice resonating in the appraisal
process. The customer feedback can supplement the feedback provided by other
constituents. On the flip side, customer feedback should be taken into consideration
to evaluate group or organizational performance. The feedback should not be
considered for evaluating individual performance outcomes. They have a limited
understanding of the work processes and a policy frame works which places
immense constraints on the employees. Customers, at best are well poised to
evaluate the quality of products or services.
42 l Pages
43 l pages
In most
360-degree
processes,
the key
competencie
s are
identified and
statement
are framed
focussing on
them
Varda
Pendse
Director
Cerebrus
Consultant
s
widespread phenomenon in
as great development tools by
number of people pan it as a
bad blood in the company. The
account what a professionals
customers think of him. The
ones own appraisal and the
turn enable a professional to
shortcomings, and accordingly
is true that the system serves
reduces bias, it is not always
the right culture in the
system. If many people are
the
situation
can
turn
become obvious targets.
beneficial for small and midthe employee strength is large
evaluating the employees. In
organizations
conduct
the
rung managers. In most 360competencies are identified
focussing
on
these.
The
competencies but can range
employee will then provide
get feedback from others,
Director,
Cerebrus
44 l Pages
45 l Page
Right reasons
It is necessary that 360-degree be introduced in the company for the right reasons
(developmental purposes). MilindJadhav, senior Vice-President and Head, HR, Patni,
agrees that many a time organisations introduce such processes since they believe
they are getting popular or because they have read about then in the Harvard
Business Review. Organisations need to ask themselves certain questions. What is
it that we are looking for? Is this appraisal just for a salary change or other
developments? If it is only for the first reason then the answer is certainly no, but if
it is the second then any appraisal benefits, asserts jadhav. Patni has 11,000
employees, and only the top 200 managers are appraised through the 360-degree
programmed. At least 10 people are involved in each appraisal, which means that
almost 2,000 people get covered.
This appraisal system has more to do with understanding, communicating and
articulating in the right way; it is what ensures the success of the programmed. If it
is not articulated well-enough, different people will see it differently. For instance,
people in leadership may view things in a different manner from subordinates or
peer. It is necessary to have some kind of common understandings, points out
Jadhav. Lack of this understanding will spoil relations, create negativism, and have a
dampening impact on team morale and productivity.
Confidentiality vital
Confidentiality is the key when it comes to feedback from peers and direct reports.
It can often backfire if the right culture does not exist in the organisation. I believe
that the only people who have benefited from the 360-degree appraisal are the
software vendors who sell the system. In my organisation I have seen how it has led
to a lot of negativity and hard feelings, says the operations head of a mid-sized IT
organisation on the condition of anonymity.
46 l Page
Adds Ed Steinberg, Vice-President, HR, Synge, A 360-degree feedback programmed
is doomed if HR is its only champion. It needs buy-in from senior management as
well. Companies should also train people in giving and receiving feedback.
Organisations that implement 360-degree feedback without first checking and
developing their managers feedback skills serious damage to teamwork and
morale.
He points out that to provide constructive feedback, people need training and
practice. According to him, the gains will outweigh the high costs of the training as
the feedback delivered to participants becomes focused, targeting the behaviors
associated with value creation and destruction, ultimately, the goal should be to
create a culture in which individuals feel comfortable giving and receiving feedbackboth positive and negative-on a real-time basis rather than waiting for an annual
review, adds Steinberg.
The 360-Degree
evaluations can act as an
early warning for potential
problems
-Ed Steinberg
Vice-President, HR Synge
47 l Page
Pendse believes that the process of collecting the 360-degree feedback determines
to a large extent whether employees give vent to their feelings. If open-ended,
then the questions are left open for individual interpretation and the answers vary
depending on each individuals experiences. However, in a successful process,
statements depicting specific behavioral indicators are given and respondents
choose the option that is closest to the behavior of the employee. It is difficult for an
employee to be only negative or positive since the statements are specific and
focused. The exceptions are few and rare, she adds.
Feedback should be specific, and it should induce action. At Synge, people are
trained to give specific examples in their evaluations, e.g. Staying late to finish the
xyz project was a great example of your sense of ownership. Steinberg reminds
that the deeper the insight into an employees performance, the more likely he or
she will understand what areas need to be improved-and how. The assessments
should be given and received with a sense of professionalism.
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Therefore, the organization should make sure that the appraisal process is
transparent and bias free to make sure that no justice is done.
50 l Page
In an IT organization, employees are the biggest asset and hence the 360-degree
appraisal system is a widespread phenomenon and is applauded as a great
development tool by many experts. 360-degree appraisals are founded on the idea
that any employees performance is seen by many others-the manager, peers,
direct reports, customers, etc.
Evaluation is done combining the feedback received from many people who see
different parts of an employees performance. Also known as multi-perspective and
peer-to-peer feedback, managers, supervisors and employees have found it to be
effective in improving their performance.
There should
be
at least four to six peer level
responses and six to ten
direct reports responses to be
able to implement the
process
-Naresh Shah
MD, IDC,
Bangalore
Novell
Many organizations always speculate on when is the right time to start
implementing the 360-degree appraisal system. Any time is perfect; the more
important thing is doing it right the first time. If organizations have the scale and
size to implement it while preserving the anonymity of the participants, it should
consider the same.
Naresh Shah, Managing Director, India Development Center (IDC) in Bangalore,
Novell feels that for this kind of an appraisal system, there should be at least four to
51 l Page
Vikram Shah, President India Operations, NetApp
points out that appraisal should not be looked at only
from point of view. A good amount of emphasis
should be laid on the process too. A matured
organization will always take into account the
process involved to derive complete learning out of
the appraisal for the employee and the organization.
NetApp deploys a development tool based on
research done from studying a 360 assessment of
200,000 employees from different industries. This
study and subsequent tool was developed by an
external agency.
A matured
organization will always
take into account the
process involved to
derive complete learning
out of the appraisal for
the employee and the
company
While this
system serves as an
excellent process since it
reduces biases, but it is
necessary to create the
right culture in the
company before
introducing it
-Chetan shah
MD
Synge India
Encourages teamwork
In todays global world, no objective or a result is
delivered
individually. Any endeavor
towards the achievement of goal
Primarily affects and involves team work. The biggest
advantage
52 l Page
He adds, Most of the times, it is the co-workers who are
the first to realize that there is a performance problem
with a team member, so the 360-degree evaluation can
help to find that out. In addition, it provides good data
about managers too. If you review their evaluations, it will
point to the strengths and weakness as perceived by their
subordinates/peers. Synge has a 360-degree appraisal
system for all the 500 global employees, including the top
management.
It acts
as an early arcingwhen someone gets
consistent
poor
rating from many
people, we identify
this as a case where
handholding
is
required
53 l page
The Pitfalls
positive and negative, on a real-time basis, rather than waiting for an annual
review.
54 l page
Presenting the results of the appraisal to managers in a constructive way is critical
to the success of the process, reveals Naresh Shah. The process of 360-degree
appraisal has been used by more than 90 6percent of Fortune 1000 companies for
the past 10 year. It is a boon to the corporate world though it has its drawbacks. As
opposed to the conventional appraisal system, wherein the immediate supervisor
provides the employee with unidirectional comments, the 360-degree relies on
multi-dimensional feedback. We Novell have a 360-degree appraisal for managers
and above, wherein there is scope of getting feedback from more than five peers,
he adds.
Confidentiality is also important because it will ensure that everyone can participate
in the process. Some individuals are comfortable writing their names in the
comments sections; some are not so, by making it anonymous, one can ensure
maximum participation. However, at Synge they have used a blended approach.
The managers appraisal is not confidential / anonymous. However, all the other
appraisals are confidential. The company believes that a manager should have an
open relationship with his subordinates and so anything they write, should not be a
surprise to the employee.
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RESEARCH METHODOLOGY
The data source: Primary as well as secondary.
The research approach: Survey Method.
The research instruments: Questionnaire.
The respondents: The Managers & Employees of organizations.
The primary data was collected with the help of survey information. A
concise questionnaire was prepared keeping in mind the information
specification.
Research Design
Sampling
An internal component of a research design is the sampling plan. Specifically, it
addresses three questions.
Making a census study of the whole universe will be impossible on the account
limitations of time. Hence sampling becomes inevitable. A sample is only a portion
of the total employee strength. According to Yule, a famous statistician, the object
of sampling to get maximum information about the parent population with minimum
effort.
Sample size is 100.
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Methods of sampling
Probability Sampling is also known as random sampling or chance
sampling. Under this sampling design every individual in the organization
has an equal chance, or probability, of being chosen as a sample. This
implies that the section of sample items is independent of the persons
making the study that is, the sampling operation is controlled objectively so
that the items will be chosenstrictly at random.
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FINDINGS
A.
Assistance in goal
Decision on layoff
50
100
150
200
250
300
350
400
Particular
Score
Overall Rank
87
109
228
254
312
3
4
5
354
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From the above table it can be seen that employees expect Salary
Administration and Benefits to be
the main reason for conducting a
Performance Appraisal. Decision to layoff is of least importance as per the
appraise
Awareness about
Responsibilities
From the graph it can be seen that majority of employees are aware about their
responsibilities, which implies that the appraisal have efficiently communicated to
the appraises all the parameters that will be taken into account appraisal.
Satisfaction Level
38%
62%
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Partially Dissatisfied
Satisfied
From graph it can be seen that majority of the respondents are satisfied with
the appraisal system. Only a meager 30% were dissatisfied with the
Performance Appraisal programs
58%
This clearly shows that majority of the employees are not aware about the
performance ratings that are taken into account while conducting a performance
appraisal.
90%
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From graph it can be seen that majority of respondent want self rating to be a
method of conducting the appraisal.
25%
75%
From the graph we can see that majority of the employees are not given a chance
to rate their own performance in the organization.
7.Timing of Appraisals
Timing of Appraisals
7%
Immediate Supervisor
Peer appraisal
Rating committee
93%
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This shows that most of the organizations conduct their Performance Appraisal
programs annually. A very small percentage of the organizations conduct
Performance Appraisal on a half yearly basis. The shares of the quarterly and
monthly appraisal are extremely minimal.
8.Credibility of Appraiser
Credibility of Appraiser
75%
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This shows that is no proper complaint channel existing in the organization for
the employees who are dissatisfied with the performance appraisal system.
10.
From this it can be seen that there is a clear majority among the employees who
say that the standards on the basis of which the performance appraisal is carried
out is not communicated to the employees beforehand.
11.
Performance Appraisal
Timing of Appraisals
7%
Immediate
Supervisor
Peer appraisal
Rating committee
93%
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Almost all the performance Appraisal is carried out by the Immediate Supervisor in
these organizations. In very few organizations, Rating committees carry out the
performance appraisal. None of the organizations use Peer Appraisal, Appraisal by
subordinates and self rating as a method of Performance Appraisal.
12.
Yes
No
75%
This shows that the performance Appraisal programs are successful in giving a clear
understanding of the appraise job to both appraiser and appraise.
13.
No
51%
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From the figure we can derive that the objective for conducting the Appraisal
system is clear only to half of the employees. The remaining half is not clear about
the objective for which the Performance Appraisal is carried out.
14.
Yes
No
76%
This shows that the appraisal systems do not provide a good communication flow of
the top-management plans and business goals to the staff below.
15.
Yes
No
98%
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Almost all the employees expect that their comments and suggestion should be
taken into consideration while conducting the Performance Appraisal.
16.
As per the response from the employees we can see that there is no interview
conducted after the appraisal program for majority of the employees.
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Score
Assistance in goal
Decision on layoff
Respondents were asked to rank the various options according to their preference.
(Rank 1 being most preferred and rank 6 being least preferred). Then scoring was
done on the basis of these ranks. 1 mark was allotted to rank 1, 2 marks for rank 2
and so on. Then the total score for each purpose was calculated and overall ranking
was given.
Particular
Determination of promotion or transfer
Salary Administration and Benefits
Decision to layoff
Guideline for training plan
Assistance in goal
An insight into your strengths and weakness
Score
24
27
42
69
72
81
Overall
Rank
1
2
3
4
5
6
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From table it can be seen that appraiser consider Determination of promotion
or transfer & Salary administration and Benefits as two important factors
for conducting an Appraisal.
Appraisal System
Appraisal System
13%
27%
2
3
4
5
60%
In this question appraiser was asked to rate how helpful the appraisal system is,
from the graph it can be seen that majority of appraisers have rated 5,4 & 3 which
implies that Performance Appraisal system is very helpful in planning their work.
Also most of the appraisers are satisfied with the appraisal syste.
Yes
No
100%
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This question was asked to find out how helpful appraisal system is in
communicating the support that appraiser needs from appraise. From results it is
seen that the performance appraisal system is very helpful in communicating the
support and help needed by the appraiser from the appraise.
11%
Assessment center
14%
MBO
BARS
360 degree feedback
75%
Balance scorecard
From results its clear that majority of companies prefer to use 360 degree
feedback system for Performance Appraisal. As 360 degree feedback gives
feedback of appraise from everyone interacting with him, it is more reliable and
hence most preferred.
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16%
16%
Qualitative process
criteria
Quantitative process
criteria
68%
From results we can see that Qualitative Process is considered as the most
important criteria for which the Performance appraisal programs are carried out,
which shows that companies consider Quality of product & service and Customer
satisfaction as most factor.
Timing of Appraisals
Timing of Appraisal
0% 0%
Annual
13%
Quaterly
Half Yearly
Monthly
87%
Anytime
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From graphs we can see that most of companies conduct appraisal on annual basis.
Some companies conduct quarterly also
27%
Retention
Ineffetive teamwork
73%
It can be seen from results that most of the employees get De-motivated because of
a poorly conducted appraisal. To some extent employees dont coordinate with their
team members. Thus resulting in reduction of output.
Yes
No
100%
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All appraisers totally agree that performance appraisal helps in communicating the
top management plans and business goals to staff at lower level.
It is evident from the results that performance appraisal system doesnt help the
appraiser in understanding strength and weakness of appraise.
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From the results it can be seen that appraises comments and suggestion are not
taken into consideration before Performance Appraisal. Performance Appraisal
system is designed by appraiser without consulting appraise.
Performance Appraisal
Performance Appraisal
Immediate
supervisor
Peer appraisal
Rating committees
Self-rating
100%
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From this is clearly seen that according to appraiser there is a clear and joint
understanding of the appraises job.
From results it is evident that Performance appraisal standards are very well
communicated to Appraisal is carried out.
Yes
No
100%
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From results it can be clearly seen that the Appraise is not given a chance to rate
his own performance
Yes
No
100%
This shows that most of the companies act upon the results of their Performance
Appraisal program.
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NAME
DOB
EMPLOYEE CODE
:
:
DEPT
DATE OF JOINING
REPORTING TO
REVIEWER (HOD) :
College/university
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Passing
Year
INSTRUCTION
The employee is to be rated on the basis of Reporting Officers personal knowledge.
Performance is to be evaluated objectively on the basis of the standard for specific
assignment actually performed during the rating period and on standard of
character and conduct by placing tick mark () in appropriate block.
S. No
1.
Level of Intelligence
2.
Planning Implementation
3.
Delegation/Subordinate
development
4.
5.
Leadership skills
6.
7.
8.
9.
10.
Total Score
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Unsatisfactory
Satisfactory
Above Average
Superior
Outstanding
S. No
Factor
QUALITY OF WORK
1.
2.
3.
4.
5.
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PERSONALITY
6.
ABILITY TO LEARN
7.
8.
9.
TOTAL SCORE
Date of Issuance of
Letter
Type of
Letter
Misconduct
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-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Explain why
development
is needed and how
this will impact
performance and
or professional
Growth
Proposed
completion
Date
1.
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2.
3.
Supervisors Recommendation
OVERALL RATING
Recommendation For Promotion/Revised Designation
--------------------------------------------------------------------
DATE SENT
DATE RECEIVED
SIGNATURE
REPORTING OFFICER
REVIEWING OFFICER
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.OBJECTIVES:
1. To set individual performance targets in line with organizational goal.
2. To provide an opportunity for promoting an atmosphere of trust and
openness.
3. To reward meritorious performance.
4. To develop employees in their present job.
5. To develop employees with potential to take on higher responsibilities.
6. To serve as a means of increasing organizational effectiveness.
An employee shall be appraised and would be awarded grade points from 5 for
outstand contribution to 1 unsatisfactory performance
Rating Scale:
Exceptional :
a. Performance far exceeded expectations due to exceptionally high quality of
work performed in all essential areas of responsibility.
b. High quality results achieved in less than required time and cost.
c. Requires almost no guidance and assistance in fulfilling assigned
responsibilities.
d. Individual capacity to assume wider responsibility.
Exceeds expectation :
a. Performance consistently exceeded expectations in all essential areas of
responsibility.
b. The quality of work overall was excellent, Annual goals were met.
Meets expectation :
Performance consistently met expectations in all essential areas of responsibility, at
times possibly exceeding expectations, and the quality of work overall was very
good. The most critical annual goals were met.
Performance did not consistently meet expectation performance failed to meet
expectations is one or more essential areas of responsibility, and/or one or more of
the most critical goals were not met.
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Rating Scale
Remarks
95-100
Outstanding
75-94
Exceeds
Exception
60-74
Meets
Exception
40-59
Improvement
Needed
Below 40
Unsatisfactory
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RECOMMENDATIONS
From the survey results its evident that both the appraises and appraisers
expectation from Performance appraisal system are the same i.e. Determination
of Promotion or Transfer and Salary Administration and Benefits. Hence
a single performance appraisal system can satisfy needs of both the Appraiser and
appraise. Therefore the Performance appraisal program would be designed in such
a way that the appraiser would be able to analyses the contribution of the employee
to the organization periodically and all the employees who have been performing
well would be rewarded suitably either by an increase in the salary or a promotion.
Through this the appraiser can also motivate the employees who felt that they had
no growth in the organization and serves the purpose of employee development.
Thus performance appraisals can be used as a significant tool for career leaning.
Analyzing ones on strengths and weaknesses is the best way of identifying the
potential available, rather than the person telling. Self-appraisal is a tool to analyze
one self. One of the most important findings was that almost all the employees
wanted self-rating to be a part of performance appraisal program carried out by the
organization. From the responses of the appraiser we can also see that Self rating is
not encouraged by the organizations. This could therefore be an important factor
which leads to dissatisfaction among the appraises. At the end of the year of the
appraisal period the appraisal process should begin with self-appraisal by every
employee. To Appraise ones on self on key performing targets and qualities, the
appraise would go through a process of reflection and review. It is an established
fact that change is faster when it is self initiated. If any employee has to improve or
do better, he must first feel the need to do so. Reflection and review is a process
that enables him to feel the need and improve upon his strengths and weaknesses.
Another point to be noticed is that even in the other forms of performance Appraisal
also the employees expect that they should be given a chance to rate their own
performance. This can allow the employee to analyze ones own performance which
gives new insights on how one is performing and what are critical points where he
has to put his best and improve upon.
The existence of a proper complain channel was also of utmost importance to the
appraises. They should be given a chance to convey their grievances to the top
management.
The appraises also expect that their comments and suggestions should be taken in
to accountant while conducting the appraisals. This expectation is not fulfilled as
the appraisers do not take their comments and suggestions into consideration.
Therefore they should look into this matter before it leads to dissatisfaction among
the employees.
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The results also indicate that the there is no communication of top management
plans and business goal to the appraise. The appraiser on the other hand feel that
the goals and plans have been clearly communicated to the appraises.
Communication is very essential for any system to function efficiently. Therefore the
appraisers should look onto this matter and see to it that the goals and plans are
communicated effectively.
The findings suggest that for success of Appraisal system the credibility of appraiser
is of utmost importance.
As per the Appraiser, a poorly conducted appraisal system would lead to demotivation and ineffective teamwork which will result in inefficient functioning and
low productivity in the organization. Therefore, if at all they feel there is
dissatisfaction among the appraisers they should motivate feel them. Achievement,
recognition, involvement, job satisfaction and development can motivate the
employees to a large extent. Along with this satisfactory working condition and
appropriate awards also play an important role.
Also a majority of employees were satisfied with the current appraisal system
although they requested for some changes.
Most of the employees were also not clear about the criteria on which ratings were
given to each employee while conducting the performance appraisal. Instead of
secrecy there should be openness. Because of lack of communication, employees
may not know how they are rated. The standards by which employees think they
are being judged are sometimes different from those their superiors actually use.
Proper communication of these ratings can help the employers achieve the level of
acceptability and commitment which is required from the employ.
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From the survey we can also derive that the appraises expect a post appraisal
interview to be conducted wherein they are given a proper feedback on their
performance and they can also put forward their complaints if any. The appraisal
should also be followed up with a session of counseling which is often neglected in
many organizations. Counseling involves helping an employee to identify his
strengths and weaknesses to contribute to his growth and development. Purpose is
to help an employee improve his performance level, maintain his morale, guide him
to identify and develop his strong points, overcome his weak points, develop new
capabilities to handle more responsibilities, identify his training needs.
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5. The response of the respondents may not be accurate thinking that the
management might misuse the data.
6. Almost all of the questionnaires had the open-ended question no. 11, left
unanswered.
7. Sensitive company information cannot be displayed in the project report.
8. Most respondents might be influenced by their peers in answering the
questions.
9. Due to the fact that most of the respondents were young, the questions
might not have been answered with due sincerity.
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CONCLUSION
With rewards being directly linked to achievement of objectives, goal setting and
Performance Appraisal assumes utmost importance. The Performance Appraisal
System has been professionally designed and it is monitored by HRD. The
implementation is the responsibility of each and every employee along with their
supervisor. There should be adequate training to the evaluator that will go a long
way in answering the quality of Performance Appraisal. In conclusion, a Performance
Appraisal is a very important tool used to influence employees. A formal
Performance review is important as it gives an opportunity to get an overall view of
job performance and staff development. It encourages systematic and regular joint-
stocking and planning for the future. Good performance reviews therefore dont just
summarize the past they help determine future performance.
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APPENDICES
Questions for Appraise
Detail
Salary administration and Benefits
Determination of promotion or transfer
Decision on layoff
Assistance in goal
Guideline for training Plan
An insight into your strengths and
weakness
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1. Do you know what exactly is expected from you at work?
a. Yes
b. No
2. Are you satisfied with the appraisal system?
1
2
3
4
5
(1 = Least satisfied; 5 = most satisfied)
3. Are you aware of performance ratings?
Rank
a. Yes
b. No
4. Do you think you should be given an opportunity to rate your own
performance?
a. Yes
b. No
5. Are you given a chance to rate your own performance?
a. Yes
b. No
6. Timing of Appraisals?
a.
b.
c.
d.
e.
Monthly
Quarterly
Half Yearly
Annual
Anytime
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8. Is there a complaint channel for the employees who are dissatisfied with the
performance appraisal system?
a. Yes
b. No
9. Are the standards on the basis of which performance appraisal is carried out
communicated to the employees before hand?
a. Yes
b. No
10.Who conducts the performance appraisal?
a.
b.
c.
d.
e.
Immediate supervisor
Peer appraisal
Rating committees
Self-rating
Appraisal by subordinates
________________________Contact
No:
Detail
Rank
Assistance in goal
Guide for training Plan
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b.
c.
d.
e.
MBO
BARS
360 degree feedback
Balance scorecard
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5. Timing of Appraisals
a.
b.
c.
d.
e.
Monthly
Quarterly
Half Yearly
Annual
Anytime
a. Yes
b. No
8. Does it give insight to appraise regarding his strength or
weakness?
a. Yes
b. No
suggestions
taken
into
a. Yes
b. No
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10.
appraisal
a.
b.
c.
d.
e.
Immediate supervisor
Peer appraisal
Rating committees
Self-rating
Appraisal by subordinates
11.
Is the performance Appraisal
Successful in giving a clear understanding of the appraise job to
both appraiser and appraise?
a. Yes
b. No
12.
Are the standards on the basis of
which the performance appraisal is carried out communicated to
the employees before hand?
a. Yes
b. No
13.
Do you give an opportunity to
the appraise to rate his own performance?
a. Yes
b. No
14.
your performance appraisal?
a. Yes
b. No
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15.
measures taken?
a. Yes
b. No
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BIBLIOGRAPHY
BOOKS
Organizational Behavior by Steve Robbins
The Art of HRD, Reward Management, Volume 9 by Michal
Armstrong and Helen Murlis
Performance Management, Concept, practices and Strategies for
Organisation success by S.K Bhatia.
100 l Page