CHAPTER-I

INTRODUCTION

1.1 INTRODUCTION OF PERFORMANCE APPRAISAL

Every year employees experience an evaluation of their past performance.

Employees generally see these evaluations as having some direct effect on their work
lives. They may result in increased pay, a promotion, or assistance in personal
development areas for which the employee needs some training. As a result, any
evaluation of employees work can create an emotionally charged event. Because the
performance evaluation is not the simple process it once was, it is now more critical to
perform one while simultaneously focusing on key activities of the job.
If we want to know how well the employees are doing, weve got to measure
their performance-not necessarily an easy task. Many factors go into the performance
evaluation process, such as why do we do them, who should benefit from the evaluation,
what type of evaluation should be used, and what problems might be encountered.
Performance management systems involve a number of activities. They are more than
simply reviewing what an employee has done. These systems must fulfill several
purposes.
1.2 Purpose of performance management systems
Nearly three decades ago, performance evaluations were designed primarily to
tell employees how they had done over a period of time and to let them know what pay
raise them would be getting. This was the feedback mechanism in place. Although this
may have served its purpose then, today there are additional factors that must be
addressed. Specifically, performance evaluations should also address development and
documentation concerns.
Performance appraisal must convey to employees how well they have performed
on established goals. Its also desirable to have these goals and performance measures
mutually set between the employee and the supervisor. Without proper two-way feedback
about ones own effort and its effect on performance, we run the risk of decreasing an
employees motivation. However, equally important to feedback is the issue of
development. Development, it is referred to those areas in which an employee has a
deficiency or weakness, or an area that simply could be better if some effort was
2

expended to enhance performance. Documentation is used as a record of the performance

appraisal process outcomes. A performance evaluation systole is remiss if it did not
concern itself with the legal aspects of employee performance.
Purpose of Performance Appraisal

1. To create and maintain a satisfactory level of performance.

2. To contribute to the employee growth and development through training,
self and management development programs.
3. To help the superiors to have a proper understanding about their
subordinates.
4. To guide the job changes with the help to continuous ranking.
5. To facilitate fair and equitable compensation based on performance.
6. To provide information for making decisions regarding lay off, retrenchment
etc.
7. To ensure organizational effectiveness through correcting employee for
standard and employee performance.

1.3 PROFILE OF THE COMPANY

Narangs International Hotels Ltd.

Hotel Ambassador Pallava
Narangs International Hotels Ltd. is India's largest privately owned hotelier,
flight catering and fast food catering company. It owns three hotels and two
flight kitchens and several fast food outlets.
The Ambassador Group of Hotels today occupies a unique niche in the
deluxe hotels with meeting facilities and special services for the business
traveler and tourists. Every Ambassador Hotel is designed to make your visit
work, to help you accomplish the most in your time with us, whether it is a
sightseeing tour or business talks. It gives you the assistance beyond the
facilities and amenities that are taken as 'standard'.
The Ambassador Group also has the largest Flight Catering Unit in South
East Asia; equipped with modern equipments, located at Mumbai and
catering to several prestigious airlines. It has another Flight Catering unit in
Delhi as well. It also has a revolving restaurant at Mumbai Hotel.
To capitalize on infrastructure and the unique cuisine available at the Flight
Catering unit of Mumbai, Croissants etc., a chain of largest fast food outlets
was established. Now, it boasts of several fast food outlets all over the city
of Mumbai.
As a major diversification launch and to show growing concern towards
environment, The Narangs ventured into harnessing wind for generating
electric power through 25 wind electric generator units installed in the state
of TamilNadu.

Today, Ambassador Hotels have a reputation not only for their physical
distinctiveness, incorporating local art and design, but also for the amenities
4

and services it provides. Settings of First Class elegance with thorough

attention to pleasures like renowned cuisines as well as practicalities and
business facilities. Friendly and Informal yet totally professional.
The Ambassador group is one of the fastest growing and dynamic
organization intent on providing the best possible service and becoming the
best in the field.
Ambassador Pallava in Brief
Ambassador Pallava - a hotel with opulence, is conveniently located in the
heart of Chennai, close to the city's most prestigious shopping and business
quarter. Set in an attractive atmosphere they offer a relaxing retreat
harmoniously adorned with the tradition and culture. It is a hotel with the
flawless combination of fine service and international style all set in together
to create the perfect mood for the perfect traveler.
The personalized service and luxurious accommodations, along with its
contemporary elegance, provide the ultimate setting for distinguished tastes.
It provides 100 comfortable guest rooms and suites, including single rooms,
double rooms, executive and luxurious suites all equipped with modern
facilities. The hotel's elegantly furnished Presidential suite is the height of
luxury and has hosted many special guests and business elites.
Our chefs create one-of-a-kind dishes from the freshest, most delectable
ingredients for relaxed dining until sunset, each in their own distinct style
amid stunning decor. With banqueting halls customized to suit all events,
this is the ideal venue to host parties, and meetings. Our staff are all set
ready to assist with all your needs, and a dedicated business center is also
available for the convenience of meeting delegates and business travelers.
HOTEL FACTS:
ADDRESS

: No.30, Montieth Road,

5

Egmore, Chennai 600008.

TELEPHONE NO : 044-28554476
FAX NUMBER

: 044-28554492

E-MAIL

: Pallava@ambassadorindia.com

WEB SITE

: www.ambassadorindia.com

STAR CLASSIFICATION: 4 STAR

OTHER CERTIFICATION: ISO 22000
OUR CREDO
We believe our first responsibility is towards customers who use our
products and services I.e., the highest quality Food & Beverage along with
attractive and tasteful rooms. Customer Satisfaction levels must be high with
their needs to be serviced promptly and accurately.
We believe in intelligent, interested and informed employees who will
complement the services we strive to provide. We are responsible for our
employees, everyone must be considered as an individual. They must have a
sense of security in their jobs. Compensation must be fair and adequate and
working conditions clean, orderly and safe. Employees must feel free to
make suggestions and complaints. We must provide competent management
and their actions must be just and ethical.
Business must make a sound profit. Constant up gradation must
be carried on. Technology must be brought in. Reserves must be created to
provide for adverse times. When we operate according to these principles,
the organization should realize a fair return.
ISO 22000 POLICY IN AMBASSADOR PALLAVA

We at Hotel Ambassador Pallava strive to ensure food safety to our guests by

Using Quality Raw materials, by following good manufacturing Practice&
Hygienic Service through our trained staff complying with all legal
requirements.
OBJECTIVES

ZERO DEVIATION IN CCP

NO

PRODUCT

WITHOUT

LOCAL

LICENCE

TO

BE

PURCHASED ON OR BEFORE AUGUST 2012

ZERO RODENTS IN FOOD HANDLING AREAS

MINIMUM 1-HOUR TRAINING CLASS FOR ALLTHE FOOD

HANDLERS.
7 PILLAR OF TOURISM:
SWAGAT

- WELCOME

SOOCHANA

- INFORMATION

SUVIDHA

- FACILITATION

SURAKSHA

- SAFETY

SUHYOG

- COOPERATION

SAMRACHANAM

- INFRASTRUCTURE

SAFAI

- CLEANLINESS

SAFE & HONOURABLE TOURISM OBJECTIVES;7

 Encourage tourism activities to be undertaken with respect for basic

rights like dignity, safety and freedom from exploitation of both
tourists and local residents.
Aid the prevention of prostitution, sex tourism and forms of sexual
exploitations.

To enhance prevention of activities like forced or involuntary drug

use, manipulated and incorrect information, cultural and social
intolerance which could increase vulnerability or crime.
STAFF BENEFITS:
Appointment order policy
Distribution of salary
Leave period / Deduction / Holidays benefits
Cafeteria / medical / benefits
Uniform / Name badge
PF / ESI benefits
Carrying mobile phones at work
Personal records
Change of address
Outside business activity
Hours of work / Shift / attendance

(Coming to work on time is duty, Completing the assigned work after

duty hours is your responsibility)
Notice period
Staff locker room
Security physical search
Employee excellence program
Emergency preparedness
Theft procedure
GROOMING FOR WOMEN
Uniform to be changed everyday
Hair longer than jaw line to be tied neatly into a bun & a plain black
net to be tied around the same
No Fringe Hairstyles will be permitted
Only black bands / pins / clips
Ear - rings - Half inch or studs - if two, small ones to be used which is
near to invisible i.e. not exceeding 0.2 cm. dia
Accessories - One ring only on each hand Watch - One. Bracelet Or
Bangle
Simple plain chain with small pendent - No beads / pearls
Dry or fly - away hair to be gelled or sprayed

 Only while nail polish and lipstick either pink or maroon red. Brush
on & black eye - liners only
Nails to be properly shaped & not like claws with nail polish while on
duty. No chipped nail polish
GROOMING FOR MEN
Uniform to be changed everyday
Shoes to be polished everyday
Plain black shoes as per standard
Nails to be absolutely clean and short
Only wedding bands are permitted
Proper deodorant to be used - to cut off body odor
Name tags to be worn while on duty.
No. ear - rings allowed
Hair to be short and neat and should not touch the collar or ears
Shaving to be done every day without fail
Moustache to be trimmed properly and above lips
Side burns should not be shorter than the top of the ear and not longer
than the bottom on the ear lobe

10

HYGIENE
Ambassador pallava hotels prepare food under hygiene conditions and
renders services as per the requirements ensuring quality with minimal
prescribed production.
VISION STATEMENT
To be a leading player in Integrated facilities to build a fast growing
efficient and a world class service company utilizing the local advantage to
become the market leader in providing quality services for the Corporate
and Individuals.
MISSION STATEMENT
To create a special niche in the hospitality segment so that our
Customers utilize the services by experiencing the differences.
CORPORATE VALUES
PROFESSIONALISM
RESPONSIBILITY
SERVICE EXCELLENCE
CUSTOMER SATISFACTION
COMPANY
It is a private limited company.
WORK FORCE
In Ambassador pallava Hotels 225 employees are working.
11

REVIEW OF LITURATURE:

Introduction
Once the employee has been selected trained and motivated he is then appraised
to his performance. Performance appraisal is the step where the management will find
and put effective at hiring and placing employees.

Definition
A performance appraisal is a process of evaluating an employees performance
of a job in terms of its requirements water Dill Scott.

Heyel observe it is the

process of evaluating the performance and qualification of the employees in terms of

requirements of the job of which he is employed for purpose of administration including
placement selection for promotions, providing financial rewards and other actions which
require difference treatment among the members of group as distinguished from actions
affecting all members equally. Others regard it is a process of estimating or judging the
value. Excellence, qualities or status of some object persons or thing, individually and
collectively. It is a part of all the other staffing process viz. recruitment, selection,
placement and indoctrination. Employee appraisal technique is said to have been used for
the first time during the first world war when at the distance of water Dill Scott ,the U.S.
army adopted the man to-man rating system for evaluating military personnel during the
1920-30 period relational wage structure for hourly paid worker for adopted in industrial
under this system this policy at giving grade wage increments on the basis at merit was
accepted .There early employees plans were called merit rating programs which
continued to be so called up to the 1950 .

12

Every year employees experience an evaluation of their past performance.

Employees generally see these evaluations as having some direct effect on their work
lives. They may result in increased pay, a promotion, or assistance in personal
development areas for which the employee needs some training. As a result, any
evaluation of employees work can create an emotionally charged event. Because the
performance evaluation is not the simple process it once was, it is now more critical to
perform one while simultaneously focusing on key activities of the job.
If we want to know how well the employees are doing, weve got to measure
their performance-not necessarily an easy task. Many factors go into the performance
evaluation process, such as why do we do them, who should benefit from the evaluation,
what type of evaluation should be used, and what problems might be encountered.
Performance management systems involve a number of activities. They are more
than simply reviewing what an employee has done. These systems must fulfill several
purposes.

Purpose of performance management systems

Nearly three decades ago, performance evaluations were designed primarily to
tell employees how they had done over a period of time and to let them know what pay
raise them would be getting. This was the feedback mechanism in place. Although this
may have served its purpose then, today there are additional factors that must be
addressed. Specifically, performance evaluations should also address development and
documentation concerns.
Performance appraisal must convey to employees how well they have performed
on established goals. Its also desirable to have these goals and performance measures
mutually set between the employee and the supervisor. Without proper two-way feedback
about ones own effort and its effect on performance, we run the risk of decreasing an
13

employees motivation. However, equally important to feedback is the issue of

development. Development, it is referred to those areas in which an employee has a
deficiency or weakness, or an area that simply could be better if some effort was
expended to enhance performance. Documentation is used as a record of the performance
appraisal process outcomes. A performance evaluation system would be remiss if it did
not concern itself with the legal aspects of employee performance.
PERFORMANCE APPRAISAL AND EEO
Performance appraisal is the integral part of most of the organizations. Properly
developed and implemented, the performance appraisal process can help an organization
achieve its goals by developing productive employees. Although there are many types of
performance evaluation systems, each with its own advantages and disadvantages, we
must be aware of the legal implications that arise.
EEO laws require organizations to have HRM practices that are bias free. For
HRM, this means that performance evaluation must be objective and job related. That is,
they must be reliable and valid! Furthermore, performance appraisals must be able to
measure responsible performance success. To assist these matters, two factors arise
1. The performance appraisal must be conducted according to some established
intervals and
2. Appraisers must be trained in the process.

The reasons for these become crystal clear when you consider that any employee action,
like a promotion or termination, must be based on valued data-data prescribed from the
performance evaluation document. These objective data often support the legitimacy of
employee action.

14

OVERVIEW OF PERFORMANCE MANAGEMENT

Performance management is the systematic process by which an agency involves employees,
as individuals and members of a group, in improving organizational effectiveness in the
accomplishment of agency mission and goals.
Employees performance management includes

PLANNING
PLANNING

MONITORING
MONITORING

REWARDING
REWARDING

DEVELOPING
DEVELOPING

RATING
RATING

1. Planning work and setting expectations.

2. Continually monitoring performance.
3. Developing the capacity to perform effectively.
4. Periodically rating performance.
5. Rewarding good performance.
15

Planning
In an effective organization, work is planned out in advance. Planning means
setting performance expectations and goals for groups and individuals to channel their
efforts towards achieve organizational objectives. Getting employees involved in the
planning process will make them understand the goals of the organization. Performance
elements should be measurable, understandable, verifiable, equitable and achievable.
Monitoring
In an effective organization, assignments and projects are monitored continually.
Monitoring well means consistently measuring performance, providing ongoing feedback
to employees and work groups on the progress towards reaching their goals.
Regulatory requirements for the monitoring performance include continuous
progress reviews with the employees. Ongoing monitoring provides opportunity to check
how well employees are meeting predetermined standards and to make changes to
unrealistic or problematic standards by monitoring continually, unacceptable performance
can be identified any time during the appraisal period.

Developing
In an effective organization, employee development needs are addressed.
Developing in this instance means increasing the performance through training, giving
assignments that introduce new higher levels of responsibility, improving work processes.
Providing employees with training and developmental opportunities encourages good

16

performance, strengthens job-related skills and competencies, and helps employees keep
up with changes in the environment such as the introduction of new technology.
Carrying out the processes of the performance management provide excellent
opportunity to identify developmental needs.
Rating
From time to time, organizations find it useful to summarize employee performance.
This can be helpful for looking at and comparing performance among various employees.
Rating of performance appraisal means evaluating employee or group performance
against the standards in an employees performance plan and assigning a suitable rating of
record. The rating of record is assigned according to process included in the organizations
appraisal program. It is based on what has been performed during an entire appraisal period.
Rewarding
In an effective organization, rewards are used well. Rewarding means recognizing
employees, individually and as members of groups, from performance and acknowledging their
contributions to the agency. A basic principal of effective management is that all behavior is
considered by its consequences. Those consequences can and should be both formal and informal
and both positive and negative.
Good performance is recognized without waiting for nominations and awards are
solicited. Recognition is an ongoing, natural part of experience. None of awards regulation
provides a broad range of forms that more formal rewards can take, such as cash, time off and
many non-monitory forms.
OBJECTIVES
1. To prevent grievances
2. To improve job performance
3. To increase analytical abilities of supervisors
4. To assist management in promotion demotion and transfer problems
5. To reveal areas where training is needed
17

6. To control employee behavior by using it as an instrument for rewards punishments and

threats
7. To place people to do the right kind of jobs

8. To create and maintain a satisfactory level of performance.

9. To contribute to the employee growth and development through training, self and
management development programs.

10. To help the superiors to have a proper understanding about their subordinates.
11. To guide the job changes with the help to continuous ranking.
12. To facilitate fair and equitable compensation based on performance.
13. To provide information for making decisions regarding lay off, retrenchment etc.
14. To ensure organizational effectiveness through correcting employee for standard and
employee performance.
The objectives of performance appraisal could be described as
1. judgmental
2. developmental
Judgmental objectives focus on

1. providing feedback to employees to know where they stand

2. developing valid data for administrative decisions concerning placement, pay, promotion,
punishment etc
Developmental objectives focus on
1. Diagnosing individual and organizational strengths and weaknesses (SWOT analysis)
2. Counseling, coaching, career and succession planning, employee morale and motivation
3. Developing positive superior-subordinate relationship.
BENEFITS OF APPRAISAL
Benefits Of Individual
18

Gaining a better understanding of their role

Understanding more clearly how and where they fit within the wider picture

A better understanding of how performance is assessed and monitored

Getting an insight into how their performance is perceived

Improving understanding of their strengths and weaknesses and developmental needs

Identifying ways in which they can improve performance

Providing an opportunity to discuss and clarify developmental and training needs

Understanding and agreeing their objectives for the next year

An opportunity to discus career direction and prospects

Benefits of line manager/ supervisor/ team leader

Opportunities to hear and exchange views and opinions away from the normal pressure
of work

An opportunity to identify any potential difficulties or weaknesses

An improved understanding of the resources available

An opportunity to plan for and set objectives for the next period

An opportunity to think about and clarify their own role

An opportunity to plan for achieving improved performance

An opportunity to plan for future delegation and coaching

An opportunity to plan for motivate members of the team

Benefits of the organization

A structured means of identifying and assessing potential

Up-to-date information regarding the expectations and aspirations of employees

Information on which to base decision about promotion and motivation

19

An opportunity to review suggestions planning

Information about training needs which can act as a bases for developing training plans

Updating of employee records (achievements, new competencies)

Carrier counseling

Communication of information

LIMITATIONS OF PERFORMANCE APPRAISAL

RATER BIAS
1. Halo Effect
Halo effect is the tendency to let the assessment of an individuals one trait influence
the evaluation of that person on other specific traits.
2. Central Tendency
Extremely high or extremely low evaluations are avoided by assigning average ratings.
3. Similarity Error
This error occurs when the appraiser perceives the employee as himself. He is like
me.
4. Leniency Error
Relative to the true or actual performance an individual exhibits, some evaluators mark
high, while others mark low. The former is referred to leniency error.
5. Inflationary Pressures
As equality values have grown in importance in our society, as well as fear of
retribution from disgruntled employees who fail to achieve excellent appraisals, there has been a
tendency for evaluation to be less rigorous and negative repercussions from the evaluation to be
reduced by generally inflating or upgrading appraisals.
6. Inappropriate Substitutes

20

It is difficult to get consensus on what is a good, and it is even more difficult to get
agreement on what criteria will determine performance. As a result, the appraisal is frequently
made by using substitutes for performance. Many of the times substitutes are chosen and give a
good approximation. However, the substitutes chosen are not always appropriate. So, the
appropriate substitute in one job may be inappropriate in another.
7. Constant Error
Some appraisal tend to be lenient towards their subordinates and others tend to rate them
too strictly.
8. First Impression
Raters may identify some specific qualities and quickly form an overall impression
which may not provide an adequate base for appraisal.
9. Regency Error
The raters generally remember the recent actions at the time of rating and rate on the
basis of these actions.
10. Personal Prejudice
If the rater dislikes any employee he may rate him at the lower end and affect the career
of that employee.
11. Opportunity Bias
The amount of output is influenced by factors beyond the control of employees .hence
there output may be greater than others working on identical task.
12. Concerned With Self Protection
The rate is concerned with his own protection. If I rate him well he will rate me
well.
13. Spillover Effect
21

This refers to allowing past performance to influence the evaluation of present

performance

Factors that distort appraisals

INAPPROPRIATE
SUBSTITUTES

INFLATIONARY
SUBSTITUTES

LENIENCY
ERROR

DISTORTIONS

CENTRAL
TENDENCY

HALO
ERROR

SIMILARITY
ERROR

Components of Appraisal System

As we have seen performance evaluation reasons. The personnel evolution system should
address the questions who, what, when where how of performance appraisal.
Who of Appraisal

22

Usually the immediate supervisor must be entrusted whit the task of rating the
assent because he is most familiar with his work supervisory rating are regarded as the
best possible assessment and they are often considered as the heart of the most appraisal
system
Appraisal is also done by the staff specialist the personnel officers they may advice the
supervisors while evaluating their subordinates stressing the need for evidence
.Sometimes self evaluation is also employed evaluating performance .But this approach
has his disadvantage individual may rate himself excessively.
What of Appraisal
Promote to understanding between supervisor and his subordinate Aiding in
decision-making for promotion. Transfer, lay-off and discharges .So the appraisal is
necessary.
When of Appraisal
In most of the organization employees or formally evaluated once of a year in
other twice a year .New employees are rated more frequently than the older ones. The
ideal thing is that employees should the rated three months and six months and every six
months thereafter.
Where of Appraisal
The where indicates the location where an employee may be evaluated? It is
usually done at the place of work of office of the supervisor.
How of Appraisal
Every organization must decide what different methods are available and which of
these may be used for performance appraisal on the basis of comparative advantages and
disadvantages it is decided which method would suit the best method.
METHODS FOR APPRAISING PERFORMANCE
23

Generally speaking their approaches are used in making Performance appraisal.

1. Causal And Unsystematic Appraisal
This method was commonly used .This method is used most if small scale industries
only.

2. Traditional And Systematic Appraisal

Employee characteristics and contribution are both .It is evaluates all the performance
in same approach. So that the rating obtained of separate personnel are comparable.
3. Management By Objective
It seek to minimize external control and maximize internal motivation through joint
goal setting between the managers and the subordinates and increase the subordinates
own control of his work.

Systematic Appraisal Methods

1. Straight Ranking Method
It is the oldest and simplest method of performance appraisal by which remain
and his performance are considered as an entity by the rater. No attempt is made to
functionalize the rate or his performance. The workman is compared with the whole
man that is the ranking of man in a work group is done against that one of another .But
this greatest limitation of this method used for paired comparison techniques .As per the
technique every employee to compare a single individuals is difficult when a large
number of persons are rated.

24

02. Paired Comparison Technique

This is technique was used by the U.S.A. Army during the First World War. By this
method certain factors are selected for the purpose of analysis such as leadership,
dependability, initiative and a scale is designed rates for each factor. In other words
comparing whole man to whole men personnel are compared to the key man in
respect of one factor at a time. This method in a job evaluation and is known as the factor
comparison method.

03. Grading Method

Under this system that rater considers certain features and marks them according to a
scale.
A = Outstanding
B = Very good
C = Good or Average
D = Fair
E = Poor
The selected may be analytical ability co-oppressiveness, dependability,
Self-expression, Job knowledge, Judgment, Leadership and organizing ability. The
Actual performance at employees is then compared with these grade definitions and he is
allocated the grade which describes his performance.

04. Graphic Rating Scale

25

This is the most commonly used method of performance appraisal. Under it, a
printed from person to be rated. In this method initiatives, attitude, leadership, quality of
work, regularity of attendance towards supervisors and associated versatile.

10

15

No interest in work

Carelessness

10

Interested in work

15

Enthusiastic about job and fellow workers

20

Enthusiastic opinion and advises

05

20

25

Check Lists Method

Under this method does not evaluate employee performance he supplies reports it

and the final rating is done by the personnel dept. a series of questions are presented
concerning employee to his behavior. The rater then checks to indicate if the answer to
the question about an employee is yes or no.

06. Forced Choice Description Method

Under this method rating elements are several sets of paid phrases adjectives
relating to job proficiency or personnel qualification. The method has certain such as
26

while choosing statements from each series. The rates are unable to introduce personnel
bias on hallo effect as only one of the favorable phrases in each series is related to
success of failure on the job.
07. Selection of Critical Incidents
The method was developed and conducted by the armed forces in the

United

States during World War 2. The essence of this system is that if attempt to measure
workers performance in terms of certain events or episodes that occur in the performance
of the rates job. These events are known as critical incidents.
The supervisor keeps a written record of the events that can easily be recalled and
used in the courses of a periodical or formal appraisal. Feedback is revived about the
incident during performance review session.
These critical incident methods are discovered after a thorough study of the personnel
working on a job. The collected incidents are than tanked in an order of frequency and
importance. The approach reduces the regency of most performance ratings.
08. Free Essay Method
Under this method the supervisor makes a freed from open-ended
Appraisal of an employee in his own words and puts down his impression about the
employee. There are several advantages of this method. An easy can provide a good deal
of information especially if the supervisors asked, for instance to give two or three
examples of each judgment he makes. The explanation will give specific information
about the employee and can reveal even more about the supervisors.

09. Group Appraisal Method

Under this method employees are rated by an appraisal group, consulting
of their supervisor and three or four other supervisors who have some knowledge of their
27

performance. The supervisor explains to the group the nature of subordinates duties. The
group then discusses standards of performance for that job. The actual performance of
job-holder and the causes of their particular level of performance and others suggestions
for future improvement.
10. Field Review Method
Under this method a trainer employee from the personnel department
Interviews line supervisors to evaluate their respective subordinates. The appraiser is
fully equipped with definite test questions. The supervisor is received to give his opinion
about the progress of his subordinates. The level of the performance of the subordinate is
his weaknesses. Good point outstanding ability, profitability and the possible plans of
action in cases require further consideration. The questions are asked and answered
verbally. The appraiser takes detailed notes of the answer placed in the employees
personal folder.
The success of this system is depends upon the competence of the interviewer.
He keeps supervisor on his toes by this evaluation and minimizes bias and Prejudice on
his part. This system is useful for a large organization.
De-Merits Of Traditional Techniques
Many of the above traditional performance evaluation techniques have
Internal weakness. Managers generally are not qualified to assess personality traits and
most managers are even not properly trained to conduct evaluation and performance
interviews. They name very notions of the purpose of evaluations. Hence, they do a poor
job.
Modern Methods of Appraisal
01. Appraisal by results or MBO
Peter Drucker has evolved this method. MBO is potentially a powerful
philosophy of managing and an effective way for operational sing the evaluation process.
It seeks to minimize through joint goal setting between the manager and the subordinate
and increasing the subordinates own control of his work.
28

MBO can be described as a process whereby the superior and

Subordinate managers of an organization jointly identify its common goals. The MBO is
to change behavior and attitudes towards getting the job done.
MBO PROCESS

Set Organization goals

Joint goal setting

Performance review

Set check posts

Feed back

02. Assessment centre method

This concept was initially applied to military situations by Simony in the
Germany army in the 1930s and the war office selection board of the British army in the
1960s. The purpose of this method was and is to test candidates in a asocial situations,
using a number of assessors and a Varity of procedures. The most important feature of
this method is job related simulations;
03. Human Asset Accounting Method
This method refers to activities devoted to attaching money estimates to
the value of firms internal human organization and its external customer goodwill. The
current value of firms human organization can be appraised by developed. Procedures are
undertaking periodic measurement of key casual and interviewing enterprise variables.
04. Behaviorally Anchored Rating Scales
This is new appraisal technique which has been recently developed its
support claim that it provides better, more equitable appraisals as compared to other
techniques. The procedure for BARS is usually five steps.

Generic critical incidents

Develop performance dimensions

Reallocate incidents

Scale of incidents
29

Develop final instrument

05. 360 Degree Appraisal Systems

This is defined as the systematic collection and feedback of performance
data on an individual or group, derived from a number of the stakeholders in their
performance. It is done in a systematic way via questionnaires or interviews. This
formalizes people judgment coming from natural interactions they have with each other.
There is both collection and a feedback process.

Uses of 360 Degree Feedbacks

Self development and individual counseling

Part of organized training and development

Team building

Performance management

Strategic or organizational development.

Validation of training and other initiatives

Remuneration

Problems of Appraisal
The ideal approach to performance evaluation is that in which the
Evaluator is free from personal biases prejudices. This is because when an evaluation is
objective, it minimizes the potential capricious and functional goals. However a single
fool proof evaluation is not available. Inequality in evaluation often destroys the
usefulness of the performance system-resulting inaccurate, invalid appraisals. There are
many significant problems, these are:

The hallo effect

Leniency

The central tendency

30

Similarity

Miscellaneous bias.

Why Appraisal Techniques Prove Failure

Performance appraisal techniques have often failed to go a correct assessment of
the employee. According to savable, the causes of such failures are the supervisor plays
dual and conflicting role both the judge and the helper. Too many objectives often cause
confusion the supervisor feels that subordinate appraisal is not rewarding considerable
time gap exists between two appraisal programs. The skills required for daily
administration and employee development are in conflict. Poor communication deeps
employees in the dark what is expected of them. There is a difference of opinion between
a supervisor and a subordinate, in regard to latters performance.
How Appraisals May Be Made Successful
The rater must be thoroughly well verses in the philosophy and nature of rating system.
Factors and factor scales most thoroughly defined, analyzed and discussed the
success of appraisal may be depends upon. The existence of an atmosphere of
confidence trust, both supervisor and subordinates may discuss frankly and offer
suggestions which may be beneficial for the organization and for improvement of the
employees. The supervisor must very thoroughly evaluate the employee
performance.
The result of performance rather than traits should

be given weigh

Jointly plans for the future must be developed after consultation with subordinates. The
individual as a person should never be criticized. The supervisor should try to analyze
the strengths and weakness of an employee. Which particular technique is to be adopted
for appraisal should be governed by such factors as the size. The results of the appraisal
particularly when they are negative should be immediately communicated to the
employees. So that they may try to improve their performance.
ETHICS OF APPRAISAL

31

Ethics of performance appraisal is an important factor. If it is ignored their arise several

problems.
These are some of the dos and donts
1. Dont appraise without knowing why the appraisal is required.
2. Appraise on the basis of representative information.
3. Appraise on the basis of relevant information.
4. Appraise on the basis of sufficient information.
5. Be honest in your assessment in all the facts you obtain.
6. Dont write one thing and say another.
7. Pass appraisal information only to those who have good reason to know it.
8. Dont accept anothers appraisal without knowing the basis on which it was made.
9. In offering the appraisal, make it plain that this is only your opinion of facts as you see
them.
Approaches to Performance Appraisal
Casual Approach This is an unsystematic system which has subsequently given place to more
formal methods. It has been largely based on seniority or quantitative standards of output for
rank and file employees.
Traditional Approach This is highly systematic and takes employee characteristics and
employee contribution as a measurement. In this system employee is rated in the same manner
utilizing the same approach.
Behavioral Approach This approach is based on the behavioral value of fundamental trust in the
goodness, capability and responsibility of human beings. It lays emphasis on providing mutual
goals settings and appraising of progress made by both the appraiser and appraise.

32

1.5 NEED FOR THE STUDY

Performance appraisal is needed in order to
1. provide information about the performance ranks on which decisions
regarding salary ,fixation , conformation, promotion, transfer and
demotion are taken
2. provide information which helps to council the subordinate
3. provide information for correct in placement
]

1.6 SCOPE OF THE STUDY

The scope of the study has been confined to the employees of
NARANGS INTERNATIONAL HOTELS LTD bulk activities. Our study includes

33

performance appraisal all the employees of NARANGS INTERNATIONAL

HOTELS LTD bulk activities to that include officers, executives and managers.

1.7 OBJECTIVES OF THE STUDY

Perfect at Narangs International Hotels Ltd is essentially focused towards
employee development. This means that the superior has to necessarily take
a predominantly developer/coach role vis--vis the employee. This also
implies that the focus is on performance improvements/growth and
employee alignment with organization strategy and values and not merely on
rewards and discrimination. A performance rating is an element but not the
primary aim of the perfect process.
1. To conduct the survey in NARANGS INTERNATIONAL HOTELS
LTD on performance appraisal
2. To understand the method for appraisal
3. To evaluate the appraisal systems and find out the limitations
4. To study various factors contributing to appraisal
34

5. To know the entire system of performance appraisal

CHAPTER-II

35

RESEARCH
METHODOLOGY

2.1 RESEARCH DESIGN:

A descriptive study is undertaken to analyze the performance appraisal
program in NARANGS INTERNATIONAL HOTELS LTD in all levels. To collect
the primary data i.e. questionnaire has been designed and it consists of 15
questions. The purpose the questionnaire is to understand

whether respondents

require any assistance in their interest event process

data analysis by in depth study of organization operations
data presentation through descriptive chapters

2.2 Sources of data collection

The sources of data collected for this process includes both primary and
secondary sources.
36

Primary data
The data is collected from the employees through questionnaires.
Secondary data
The data sources consists both the internal and external data. Internal data
was collected from the companies report and record. External data includes the
published data such as books on H.R and websites.

Sampling techniques
The type of sampling technique adopted in this project analysis is simple
random sampling. Employees from various departments were approached and data
was collected by administrating questionnaires to know their opinion about
performance appraisal in their organization.

Sample size
For a sample of 100 employees belonging to different functional
departments were given questionnaire to know their opinion with regard to
performance appraisal.
Data analysis
37

The collected data is tabulated and then analyzed by using simple

percentages and represented by different types of graphs.

LIMITATIONS
1. Time is the major constrain as the study is limited to 50 days
2. Being the time is limited to cover all the areas in NARANGS
INTERNATIONAL HOTELS LTD
3. As the universe is vast it is a constraint to the study
4. Time is not sufficient for the study of such big organization

CHAPTER-III

DATA ANALYSIS
38

AND
INTERPRETATION

DATA ANALYSIS AND INTERPRETATIONS

1. From how many years are you working in this organization?
A
NO.OF.RESPONDENTS 12
PERCENTAGE
12

B
22
22

39

C
22
22

D
26
26

E
18
18

INTERPRETATION
From the above it can be interpreted that, 12 of the employees are
working between 0-2 yrs, 22% between 2-5 yrs, 22% are working between 5-8yrs,
26 between 8-10 yrs and 12% of the respondents are working from more than 10
yrs.

2. How do you feel about the format of Perfect in your organization?

A
NO.OF.RESPONDENTS 20
PERCENTAGE
20

B
56
56

40

C
20
20

D
4
4

E
NIL
0

INTERPRETATION
From the above graph it can be interpreted that 20% of employees feel
that the format of perfect is very good, 56% feel it good, 20% feel that it is
average, 7.5% fell that it is not bad and none of them is totally dissatisfied with the
format of perfect in the organization.

3. Will your superior spend reasonable time dialoguing with

you and take active part in enhancing your performance?

NO.OF.RESPONDENTS
PERCENTAGE

A
30
75

B
10
25

INTERPRETATION
41

From the above analysis it is clear that 75% of the employees rated that
their superiors spend reasonable time dialoguing with them in enhancing their
performance and 25% of the employees disagree for the above. In the above graph
1 represents yes and 2 represents no.

4. Do you think half-yearly review is necessary?

NO.OF.RESPONDENTS
PERCENTAGE

A
80
80

B
20
20

INTERPRETATION
The above question is posed to the employees to know whether the halfyearly review is necessary or not. From the above analysis 80% rated that it is
required and 20% rated that there is no need for conducting the half-yearly review.
42

1 in the graph represents the employees who require half-yearly review and 2
represents who do not need it.

5. If yes, in what way it is helpful to you?

A
NO.OF.RESPONDENTS 15
PERCENTAGE
15

B
15
15

C
6
6

D
22
22

E
42
42

INTERPRETATION
The above graph is the continuation of the 4 th question. This gives the
analysis of the employees who require half-yearly review to say in what way it is
helpful to them. The analysis say that 15% of the employees says that it helps in
making the corrections that are required and also the feedback can be received
43

periodically, 6% feel problems can be solved more easily 22% feel that
communication between superior and subordinate can be increased and 42% says
that all the above helps in conducting the half-yearly review.

6. Do you think both behavioral and functional aspects are considered

at the time of rating?
A
NO.OF.RESPONDENTS 50
PERCENTAGE
50

B
2
2

C
14
14

D
4
4

E
30
30

INTERPRETATION
From the above graph it can be interpreted that 50% of the employees feel
that both behavioral and functional aspects are taken into consideration at the time
of rating, 2% rated that both behavioral and functional aspects are not taken into
consideration, 14% rated that only behavioral aspects are taken into consideration,
4% rated that functional and other aspects are also taken into consideration.
44

7. Does your superior give you continuous feedback regarding your

Performance?
A
NO.OF.RESPONDENTS 32
PERCENTAGE
32

B
15
15

C
20
20

D
15
15

E
18
18

INTERPRETATION
The above pie chart represents the analysis made on the continuous
feedback regarding the employees performance. This give the information that
32% are given monthly feedback, 15% rated quarterly feedback has been given,
20% rated that they are given half-yearly feedback, 15% rated they got annual

45

feedback and 18% rated that they have not been given any feedback. Thus most of
the respondents rated that monthly feedback is been given to them.

8. How would you rate your own skills?

A

NO.OF.RESPONDENTS 16

14

55

PERCENTAGE

14

55

16

INTERPRETATION
The above pie chart represents the question regarding rating of employees
own skills. It gives the analysis that 16

% rated that they rate their own skills on

the basis of work allotted to them, 14% rated on the basis of perfectness in their
work, 8% rated on the basis of their personnel attitude, other 7% rated on the basis

46

of their experience and 55% responded that they will rate on the basis of all the
above skills.

9. How do you feel about apex review committee in your organization?

A
NO.OF.RESPONDENTS 17
PERCENTAGE
17

B
52
52

C
22
22

D
6
6

E
3
3

INTERPRETATION
The above pie chart represents the satisfaction of employees regarding the
apex review committee. The analysis say that 17% are highly satisfied, 52% are
satisfied, 22% have no idea, 6% are less satisfied and 3% are not satisfied with the
apex review committee. Thus the analysis says that most of them are satisfied with
apex review committee.
47

10. Do you think ARC is rating on the basis of unbiased and objective
facts?
NO.OF.RESPONDENTS
PERCENTAGE

A
60
60

B
40
40

INTERPRETATION
From the above pie chart it can be interpreted that 60% of the employees rated that
the apex review committee rates on the basis of unbiased and objective facts
whereas 40% of the employees feel that they do not rate on the basis of the above.
In the above chart 1 represents yes and 2 represents no.

48

11.Are the ratings given to you in past 5 years are up to your expectations?
A
NO.OF.RESPONDENTS NIL
PERCENTAGE
0

B
62
62

C
30
30

D
8
8

INTERPRETATION
From the above pie chart it can be interpreted that 62% responded that the
ratings given to them are to their expectations, 30% feel rating given to them is
below their expectations, 8% cant express their opinions in regard to this and no
one responded that the ratings are more than their expectations. Thus the above
analysis makes it clear that most of them are satisfied with their ratings.

49

12. Will you be given the training that is required after appraisal?
NO.OF.RESPONDENTS
PERCENTAGE

A
55
55

B
45
45

INTERPRETATION
The above question is put forward to employees to know whether they are
given the training required after appraisal or not and the analysis say that 55% say
that they have been given the training and 45% say that they have not been given
any training. Thus there is a small difference between the training provided and the
training not provided.

50

13. Training programs provided after appraisal are

A
NO.OF.RESPONDENTS 20
PERCENTAGE
20

B
32
32

C
40
40

D
3
3

E
5
5

INTERPRETATION
From the above table and graph it can be visible that 20% of the
employees have given their feedback regarding training provided after appraisal is
more effective, 32% given their feedback as effective, 40% as average, 3% and 5%
as less effective and not effective.

51

14. How many times have you been given the training programs in
past 5 years?
A
NO.OF.RESPONDENTS 35
PERCENTAGE
35

B
15
15

C
20
20

D
0
0

E
30
30

INTERPRETATION
From the above graph it can be interpreted that 35% of the respondents
took the training programs for 0-2 times in past five years, 15% took 2-5 times,
20% took5-8 times, and30% of the employees have taken more than 10 times in
past five years.

15. In which area do you think you can improve your performance?
52

A
NO.OF.RESPONDENTS 13
PERCENTAGE
13

B
32
32

C
55
55

INTERPRETATION
The above analysis represents the area of work in which the employees
would like to improve their performance. The above graph interprets that 13%
would like to improve in the same area of work, 32% in more specialized areas
and 55% of the respondents wants to improve in cross-functional areas.

16. Have you been given an opportunity to discuss and clarify

regarding developmental and training needs?
53

NO.OF.RESPONDENTS
PERCENTAGE

A
75
75

B
25
25

INTERPRETATION
From the above pie chart it is visible that most of the respondents have
been given good opportunity to discuss and clarify regarding training and
developmental needs. A nominal % of the respondents feel that the opportunity is
not given to them up to the mark.

54

CHAPTER-IV

FINDINGS
SUGGESTIONS
CONCLUSIONS

FINDINGS
Maximum no of employees in the organization are long-standing
employees. So, the company can make use of their services to train the
new consumers
55

 The company succeed in implementing the format of prefer because

56% employees felt it good.
The superior spends more time for dialoging with the employees
because majority of employees are favor of them.
Majority of the employees viewed that half-yearly review of
performance appraisal is necessary to make corrections, feedback solve
the problems and for effectives communications between superiors and
sub-ordinates
Majority of employees are supporting the management in case of time
of rating considering both behavioral and functional aspects.
The superiors makes continuous feedback monthly to know the
performance of the employees and to detect the mistakes if any it is
helpful to the organization development.
The employees of NARANGS INTERNATIONAL HOTELS LTD are
rating their skills on the basis of fin work allotted perfectness in work.
Majority of the employees are satisfied about APEX REVIEW
COMMITTE it helps the management to know the performance of the
employees and makes them more skilled
SUGGESTIONS

56

 Though most of the departmental heads are having good communication with their
subordinate, there are some departmental heads that are not providing proper
guidance to their subordinates and they should be revised as soon as possible.
The column of career aspirations in perfect form that should be filled by the
employees should be given more importance; superiors should take proper action
and make employees mention their career plans clearly. And help them to achieve
their plans by giving proper feedback.
Most of the employees in the organization are feeling that the rating given to
those by apex review committee are biased. So, it becomes the responsibility of
the organization to ensure the employees that the ratings given to them are based
on objective facts.
The employees should be given a chance to express their view fairly regarding the
ratings given to them.
The organization should take care to improve the skills of the employees in crossfunctional areas so that they can satisfy their internal desire to excel in various
fields.
It would be more beneficial for the employees if the review is done quarterly. This
would specially help the employees in getting an additional opportunity to get the
feedback and improve themselves in performing their job more effectively.
The organization should see that the impact of training is made to prevail at the
work place, so that the learned skills of the employees are efficiently utilized.

CONCLUSION
57

Performance

appraisal

is

known

as

Perfect

in

NARANGS

INTERNATIONAL HOTELS LTD which is a great success and beneficial to great

extent. Perfect is conducted once in every year which has a fixed format.
Employees who will be rated gave their opinion that they are satisfied with the
perfect in their organization, which deals with evaluating the performance of each
employee. Perfect has been proved to be helpful to all the employees in achieving
both individual and organization goals.

It also helps to identify the needed training programs which are required to
improve functional and behavioral skills, helps in planning the career aspirations,
helps in developing good communication between superiors and subordinates.
Evaluation of employees with perfect helps in detecting the loopholes which leads
to increase the success ratio. This continuous scrutiny by efficient seniors led to
great success of perfect. This made the employees work efficiently which led to
the growth of both the individual as well as the organization.

58

CHAPTER-V
BIBLIOGRAPHY

BIBILOGRAPHY

1.

ESSENTIAL OF HUMAN RESOURCE

MANAGEMENT

P. SUBBA RAO

2.

READING IN HUMAN RESOURCE

T.V. RAO

59

MANAGEMENT
3.
3
4.

ORGANIZATIONAL BEHAVIOUR
PRINCIPALS AND PRACTICES OF
MANAGEMENT

V.S.P. RAO
TRIPATI &REDDY

5.

PERFORMANCE APPRAISAL THEORY

AND PRACTICES

R. HENDERSON

6.

HUMAN RESOURCE MANAGEMENT

K. ASWATAPPA

7.

HUMAN RESOURCE MANAGEMENT

ANJALI
GHANEKAR

8.

PERFORMANCE APPRAISAL

9.

HRM REVIEW

WWW.HR-GUIDE.COM.
ICFAI UNIVERSITY

60

CHAPTER VI
ANNEXURE

DEPARTMENT:

DATE:

EMPLOYEE CODE:

PLACE:

1. From how many years are you working in this organization?

[a] 0-2yrs

[b] 2-5yrs

[c] 5-8yrs

[d] 8-10yrs

61

[e] more than 10yrs

2. How does u feel about the format of perfect in your organization?

[a] Very good

[b] Good

[c] Average

[d] Not bad

[e] Bad

3. Will your superior spend reasonable time dialoguing with you and take active part in
enhancing your performance?
[a] Yes

[b] No

4. Do you think half-yearly review is necessary?

[a] Yes

[b] No

If yes, in what way it is helpful to you?

[a] Corrections can be made as and when required
[b] Feedback can be received periodically
[c] Problems can be solved more easily
[d] Communication between superior and subordinate will increase
[e]all the above
5. Do you think both behavioral and functional aspects are considered at the time of rating?
[a] both are taken into consideration
[b] Both are not taken into consideration
[c] Only behavioral aspects are taken
[d] Only functional aspects are taken
[e] Other aspects are also taken into consideration

6. Does your superior give you continuous feedback regarding your Performance?
[a] Monthly

[b] Quarterly

[c]Half-yearly

[e] None of the above

7. How would you rate your own skills?
[a] On the basis of work allotted to you
62

[d] Annually

[b] On the basis of perfect ness in work

[c] On the basis of personal attitude
[d] On the basis of your experience
[e] All the above
8. How do you feel about apex review committee in your organization?
[a] Highly satisfied

[b] Satisfied

[c] Neutral

[d] Less satisfied

[e]Not satisfied
9. Do you think ARC is rating on the basis of unbiased and objective facts?
[a] Yes

[b] No

10. Are the ratings given to you in past 5 years are up to your expectations?
[a] More than the expectations
[b] To the expectations
[c] Below the expectations
[d] Neutral
11. Will you be given the training that is required after appraisal?
[a] Yes

[b] No

12. Training programs provided after appraisal are

[a] More effective

[b] Effective

[c] Average

[d] Less effective

[e] Not effective

13. How many times have you been given the training programs in past 5 years?
[a] 0-2 times

[b] 2-5 times

[c] 5-8 times

[d] 8-10 times

[e] More than 10 times

14. In which area do you think you can improve your performance?
[a] In the same area of work

[b] In more specialized areas

63

[c] Cross functional areas

15. Have you been given an opportunity to discuss and clarify regarding
Developmental and training needs
[a] yes

[b] no

64