A PROJECT REPORT

ON

PERFORMANCE APPRAISAL SYSTEM

For The Partial Fulfillment of University Requirement for the
Award of
BBM Degree of Mohan Lal Sukhadia University, Udaipur

Academic Session : 2013-2014

SUBMITTED TO:
MISS JYOTI JAIN

SUBMITTED BY :
PANKAJ WADHWANI

BHUPAL NOBLES POST GRADUATE COLLEGE, UDAIPUR

(Affiliated to MOHAN LAL SUKHADIYA UNIVERSITY, Udaipur)
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ACKNOWLEDGEMENT

I could tell where the lamplight was by the trail he left behind him.
-HARRY LAUDER
The profound effect of these words dawned on the during my summer training
at HRH. I feel immense pleasure in expressing my deep sense of gratitude to the
whole team of HR dept. at HRH for their professional guidance and encouragement.

My sincere thanks to Mr. Ajay Nagar (Manager HR) for his timely help, valuable
suggestions and for giving me an opportunity to work in this esteemed organization.

I am grateful to Mr. R.K. Paliwal (Deputy Manager HR) for his kind cooperation
and support throughout, the training period.

I owe immense gratitude to Mr. Dennis Thomas (Exe. HR) without their
forethoughts this project would not have been possible.

I also thankful to Miss Dimple Singh Gaur and Miss Jyoti Jain (Faculty, BBM
Dept., B.N. P.G. College) for their guidance and motivational support.

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PREFACE
Gone are the days when a person of new abilities could make in the world.
Today, every next opportunity is a challenge, every next person a competitor.
The horizons of today have expanded to such heights and widths, that for
establishing once identity, one requires a great deal of knowledge, smartness, tactics
and courage.
Today is the world of specialization, and I have opted for specialization in the
field of Human Resource. It is because HR, from being a supplementary tool for
business in the past has become an integral and important part of business world.
The GLORY AND SUCCESS of any business strongly requires HR as its initial identity.
Hence in the present scenario, a student is required to avail practical training
in his/ her field of specialization therefore for this purpose, I have selected, the topic
Performance Appraisal System through the case study of the unit Historic Resort
Hotels Pvt. Ltd.
Books dont suffice the level of knowledge a student is required to posses. He/
she should have a previene absent the real happening of corporate sector.
The following project report is such an attempt to magnify my knowledge and to
sharpen the edges of my skills.

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DECLARATION
I PANKAJ WADHWANI S/o Mr. MANOHAR LAL WADHWANI Student of BBM 6th
Semester hereby declares that for the purpose of Training Project Report I have
conducted study on PERFORMANCE APPRAISAL SYSTEM of HRH GROUPS OF
HOTELS for the partial fulfillment of BBM degree. It is my original work.

Place:
PANKAJ WADHWANI
Date:

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CONTENTS

Company Profile
Vision and Mission
Units of HRH Group
o Shiv Niwas Palace,Udaipur
o Fateh Prakash Palace,Udaipur
o Gajner Palace,Bikaner
o The Aodhi Hotel,Kumbalgarh
o Shikarbadi Hotel,Udaipur
o Gorbandh Palace Hotel,Jaisalmer
o Fateh Bagh Hotel,Ranakpur
o Karni Bhawan Palace,Bikaner
o Garden Hotel,Udaipur
o Jagmandir Island Palace

Performance Appraisal System

Introduction
Process flow chart
Objectives
Main Features
Potential Benefits
Performance Appraisal Process
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Purpose
Performance Standards
Performance Measurement
Data Collection Methods
Sources of Error in Performance
Appraisal
Employee Reaction
Research Study
Data Analysis
Findings and Conclusion
Bibliography
Annexure

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TITLE
Project report on the Performance Appraisal System of
HRH group of Hotels in Udaipur.

OBJECTIVE

The major objective of the study at HRH Group of Hotels

was to get an insight of the Performance Appraisal process
and other aspect of Human Resource Management (HRM).

1. To find out existing disciplinary action process.

2. To know about the HRH Group of Hotels.
3. To find out existing Performance Appraisal process.
4. To assess the attitude and views of Human Resource
(HR) manager towards the Performance Appraisal
process.
5. To analyze the view of Human Resource (HR) manager
regarding the objective and other aspect of Human
Resource (HR).

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SIGNIFICANCE

HRH group of Hotels is the only chain of heritage palace hotels

& resorts in Rajasthan India. Now a days new Industries are
coming up as a result increasing.

Competition all over it attracts employees through high salary

and incentive. It also helped to gain an insight into the practical
and other aspects of HR.

RESEARCH METHODOLOGY

Research type Exploratory

Type of data used Primary

Instrument Schedule

Sampling unit HR Department

Sample size Normal

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SCOPE OF STUDY
The study was conducted to profile the company HRH group of
Hotels. The data were collected from 18 November, 2013 to 3 rd
January, 2014 in Udaipur city.

LIMITATION OF STUDY
Since the results have been drawn on the basis of
information provided by respondents, response might creep
in.
Researcher is not an expert in the field of research, error in
analysis and interpretation might have occurred.

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COMPANY PROFILE

HRH group of is the only chain of heritage palace hotels & resorts in Rajasthan &
India. It is headquarter in Udaipur.
Udaipur, the city of dreams is perhaps the most romantic city in Rajasthan. A city
without rival in the country, it is not known for brutal forts but for exquisitely
decorated palaces, gardens & lakes. Palaces on lakeshores & on islands surrounded
by emerald & turquoise water. Encircled by the Aravelli Mountains, the lakes & the
altitude give Udaipur an extremely agreeable climate. The sunset & sunrise are from a
dream world.
This wonderful city was born out of the necessity of the ruling clan for the peace,
calm & security after the various Mughal invasions on their previous capital Chittor.
Then Maharana, Udai Singh ji, after the third siege of his capital Chittor in 1568-69,
looking for an agreeable & a safe palace to build his capital, came across the lake
Pichola. With the blessings of a holy sage of the region, built his palace on the
banks of this lake. To this day, in a shrine in the heart of the city palace, a flame
burns in gratitude to the ascetic.
The HRH group of Hotels invites the tourist to visit the home of the Rajput warrior
& enjoy the luxury of the converted palaces, forts & residences, which form some of
the properties in this exclusive chain.
Presently

with

properties

of

Udaipur,

Kumbhalgarh,

Jodhpur,

Gajner,

Bikaner,

Jaisalmer, Ramgarh & Ranakpur for HRH sky is the limit.

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Originally inherited palace, were converted into hotels due to the Sheer vision of
CMD. The HRH is now a leading chain of hotels in Rajasthan & aspires to expand
further.
The basic set up is unit wise decentralization with a central reservations department,
situated at the corporate office, city palace Udaipur. The units run independently with
the front office dept, F&B productions, F&B service, housekeeping , Accounts,
personnel & stores. The central stores are located at Udaipur. The head office of sales
& marketing is at Jaipur & the branch offices are at Udaipur, Ahmadabad Delhi,
Mumbai, and Ajmer & Bikaner. The HRH group is preserving royal palaces & resorts
across Rajasthan & has developed an authentic heritage circuit in the Indian state.

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Features of HRH

Well-disciplined employees.
Healthy competitions among all the branches of HRH.
Sports and cultural evenings for employees.
Excellence hospitality.
People are highly co-operative and communicative.
People work with team spirit.
Rewards and punishments are considered part of game.
Every new day is learning experience for people over there.
Nepotism and favoritism does not exist.
Positive approach.
Hierarchy is not a hurdle in the personal relationships.
People work on the principle of equality and justice e.g. food is common for each

level employee (whether junior or senior).

Friendly atmosphere for new entrants.
Workers suggestions are welcomed.
HRH meets are organized on a continual basis.
Training program is conducted.
Workers problems are given a hearing and they are tried to be resolved.
Consumer satisfaction is the motto of the organization.
Supportive to the employees.
Event management is given importance.
Feedback.
Orientation and induction.
Job rotation.
Get together.
Town halls (monthly).

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Corporate Philosophy Of HRH Group

Preserving the royal heritage, culture and traditions of India and presenting it
meaningfully to the guest in the 21st century.
Become tree leaders in heritage hospitality, offering world-class facilities and unique
holiday opportunities for guest from all over the world.

Atithi devo bhavo. Treating the guests as if they God they inculcating a truly
Indian sense of personalized service towards guests within the organization.
Building an ethical employee-friendly organization that can strive towards making this
vision a reality.
Initiating environment-Protection programs and development plants to positively impact
the quality of life in the present and for future generations.

Marketing Concept of HRH

The marketing concept of HRH ltd. is to optimize capacity utilization by delivering
desired customer satisfaction more effectively and efficiently. The company intends to
have a presence in all the places of significant interest in Rajasthan within the near future
and then to expand beyond.
HRH analyzed the market and worked out a very distinct marketing strategy to
achieve organization goal. HRH have carefully segmented the market and their emphasis
is :

To target and develop up market in bound tourist which would be fitting

clientele for the types of product HRH to offer.

Concentrating on free individual travelers and direct booking. Contracted rates to

approved travel agents for group travel.

Develop corporate conferences.
Develop banquets.
Develop special events.
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Develop festival related tourism.

Develop leisure related tourism.
Develop historical and cultural tourism.

HRH firmly believes that the only way to retain or maintain ancient forts,
palaces, havelies, etc. The philosophy of HRH ltd has been to create a conducive
environment to encourage ethic and cultural tourism where a tourist would get a
complete experience of the glorious past and rich heritage of the country. To
accomplish this our companys objective have been to develop existing heritage
properties and to acquire unique properties with heritage values and to integrate our
business thereby widening the scope and the base of various activities and facilities
which would give a holistic experience to the tourist.

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About Hotels of HRH

For the hotels of HRH we can say, Experience the original in the adobe of kings.
HRH have nine hotels in Rajasthan. They are as follows:

UDAIPUR:

Shiv Niwas Palace.

Fateh Prakash Palace.
Shikarbadi Hotel.
Garden Hotel.
The Aodhi, Kumbalgarh.
Fateh Bag, Ranakpur.

BIKANER:

Gajner Palace.
Karni Bhawan Palace.

JAISALMER:
Gorbandh Palace.

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Besides hotels HRH have many other properties also. Some of them are as listed below:

Ramgarh Resort and polo complex, Jaipur

Regal experience:

Manak Chowk.
Darbar Hall.
Janana Mahal
The Vintage and classic car collection.
The Crystal Gallery.
Solar boats, Horse safari.

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HRH Group Of Hotels

The HRH Group of Hotels, Udaipur is the only chain of grand heritage hotels, palace
hotels, luxury hotels and historical resorts in Rajasthan, India. It is headquartered in Udaipur
(city of lakes), an historic city founded in 1559 on the banks of Lake Pichola. The HRH
Group of hotels is committed to preserve royal palaces and historic resorts across Royal
Rajasthan and has developed an authentic heritage circuit in this Indian state.
The HRH Group of hotels, Udaipur (Rajasthan) today offers authentic Indian grand heritage
palace hotels and historical venues for memorable Destination Regal Wedding', grand
palace theme wedding in India, honeymoon packages, special holiday offers and other
events conferences, theme shows, banquets.
HRH Hotels Resorts and Palaces are the finest grand heritage and luxury hotels in
Rajasthan, India. HRH Hotels are the premier hospitality providers in Rajasthan India,
gracing important rajasthan towns and cities. HRH Hotels Resorts and Palaces comprises 9
hotels, resorts and authentic palace hotels in 5 locations across Rajasthan India with hotels
and resorts in Udaipur, Gajner, Bikaner, Kumbalgarh, Ranakpuur, Jaisalmer in the Royal
Rajasthan, India.

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Grand Heritage Palace Hotels

Grand holiday Palace hotels and retreats in enchanting settings or elegant business and
leisure hotels in major royal Rajasthan cities. HRH Hotels & Resorts, Rajasthan are the
epitome of luxury and hospitality. Exquisite interiors, impeccable service, fine cuisine and
contemporary technology come together to create an experience that is both grand and
intimate. Grand Heritage Hotel are Palace Hotels which offer luxurious accommodation and
an experience of a lifetime as all the suites and rooms have been restored to their pristine
glory.

Shiv Niwas Palace, Udaipur

A crescent adorning the southern end of the Palace complex, the Shiv Niwas Palace Hotel
Udaipur was originally Maharana Fateh Singhji's residence. The rooms around this aweinspiring courtyard were used as a place for entertaining personal guests. Shiv Niwas Palace
Hotel Udaipur was the vision of the His Late Highness Maharana Bhagwat Singhji Mewar,
which led to its conversion into a luxury hotel. Shiv Niwas Palace Hotel Udaipur is now
categorised as a Grand Heritage Palace as it has been restored to its original pristine glory.

Fateh Prakash Palace, Udaipur

The imposing lakeside Fateh Prakash Palace Hotel Udaipur recapitulates royal traditions
and lifestyles in its antique furniture, original paintings and opulent interiors. Its serene
premises and picturesque views of Lake Pichola, Jagmandir Island Palace, Lake Palace and
the Sajjangarh Fort, promise a soothing break from the rigors of city life. The magnificent
Durbar Hall, the exclusive Gallery Restaurant and the dazzling Crystal Gallery complete the
royal repertoire of unparalleled experiences at Fateh Prakash Palace Hotel Udaipur.

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Gajner Palace, Gajner

Gajner Palace, an incomparable jewel in the Thar Desert is built on the embankment of a
lake. Built by H.H. Maharaja Sir Ganga Singhji of Bikaner, this Grand Heritage property is
spread over 6000 acres. The former Maharajas and visiting British dignitaries during the
days of the Raj used Gajner Palace as a hunting resort.

Royal Retreat Rajasthan

The hotels and services of the HRH Group of Hotels, the premier chain of Palace Hotels and
Resorts in Rajasthan are offered under two distinct brands Grand Heritage Hotels & Royal
Retreat culminating in a Regal Experience Grand Heritage Hotels are Palace Hotels which
offer luxurious accommodation and an experience of a lifetime as all the suites and rooms
have been restored to their pristine glory. Royal Retreats are Hunting lodges and Desert
Retreats that offer a complete getaway with modern comforts blended into the natural and
traditional ambience.

The Aodhi Hotel, Kumbhalgarh

Kumbhalgarh, an imposing fort set amid massive ramparts and surrounded by hundreds of
temples, is the creation of one of Mewar's legendary heroes, Rana Kumbha. The Aodhi is
the best location from where to explore the fort. The structure of this Royal Retreat has been
designed to match the landscape of the terrain. The Aodhi has a picturesque hilly and lush
setting, not far from the citadel. The resort abounds in natural beauty and promises a
delightful sojourn from day work tribulations.

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Shikarbadi Hotel, Udaipur

Originally a hunting lodge frequented by the royalty of Mewar, this Royal Retreat, is set
amidst the serene, wooded Aravalis. Though only 15 minutes from the City Palace, this
getaway is so peaceful that leaving the clamor of city life behind becomes easiest thing to
do. For wildlife and adventure buffs, there is a licensed Deer Park and also a provision for
horseback excursions into the sanctuary and the Aravali hills where one can spot deer,
antelope, wild boar, monkey and the nilgai.

Gorbandh Palace Hotel, Jaisalmer

The very name of this hotel is inspired by the influence of the desert. Gorbandh is a harness,
which the desert women decorate for their husband's camel with any material they can find:
cowry shells, beads, sequins, cultured threads and even buttons. The architecture of this
Royal Retreat has been inspired by traditional Indian homes. There is a central courtyard
with a swimming pool which is surrounded by luxuriously appointed rooms.

Fateh Bagh Hotel, Ranakpur

Fateh bagh is the latest addition to the HRH Group of Hotels. This Royal Retreat is located
in Ranakpur, the famous Jain temple town. Fateh Bagh is recreating a forgotten chapter of
Rajathan's history. It is probably India's first attempt at transplanting a palace, faithfully
preserving the richness of the Raj architecture for 21st century visitors. It was in 1802 AD
that Rawla Koshilav flourished as a palace on the foothills of Aravallis near Jodhpur.

Karni Bhawan Palace Hotel, Bikaner

Karni Bhawan Palace, an Art Deco Building built by Maharaja Dr. Karni Singh Ji of Bikaner
as his private residence is now a Royal Retreat surrounded by sprawling lawns located
within the desert city of Bikaner. Situated in the heart of the residential area, the hotel is near
to the major tourist attractions of the city like the Junagarh fort, Lalgarh Palace, the camel
breeding farm, the temples and the bazaars.

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Garden Hotel, Udaipur

Away from the City Palace Complex is the serene Garden Hotel:a circular building that has
been a distinguished landmark for the city of Udaipur for it houses the renowned Vintage &
Classic Car Collection. Garden Hotel, a Royal Retreat of the HRH Group of Hotels, is
located across the edge of Gulab Bagh; a tree lined landscaped garden spread across acres
of greenery.

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Regal Events

Regal Weddings, banquets, receptions, fashion shows, music concerts, classical

performances, exhibitions, product launches, film shoots and conferences are being
regularly organized at the unique venues of the HRH Group of Hotels
Regal Weddings are organized at Grand Heritage Palaces of the HRH Group as part of the
ongoing Regal Events. The historic venues in Udaipur and Gajner along with specialized
services and facilities provide an authentic backdrop for a truly Regal Wedding.
We offer corporate in India and oversees the matchless opportunity of hosting conferences
in a unique heritage environment. Grand Heritage Palaces and Royal Retreats of the HRH
Group have developed modern facilities and amenities for large and small conferences.

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Our Vision
The genesis of the HRH Group of Hotels is a tribute to the vision of Bhagwat Singh Mewar,
the 75th Maharana of Udaipur.
In post-Independent India of the 1950s, Maharana Bhagwat Singh was the first Indian royal
to have realized the potential of tourism to preserve the rich heritage of Rajasthan and
Udaipur. He took a pioneering decision to convert the Jag Niwas into the super deluxe Lake
Palace Hotel.
The grand opening of the Lake Palace Hotel in 1963 marked a new era in heritage tourism in
India. It was hailed all over the world as probably the finest luxury resort, distinguished by
uniquely Indian hospitality and service standards.
The 1980's witnessed a period of further growth and consolidation. The HRH Group of
Hotels assumed its present corporate form under the chairmanship of Shri Arvind Singh
Mewar, the 76th Maharana of Udaipur, and a professional hotelier. The HRH Group of Hotels
is today one of the finest chains of heritage hotels across Rajasthan, with each unique
heritage property being meticulously preserved, restored and developed.

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Our Mission
Preserving the royal heritage, culture and traditions of India and presenting it meaningfully to
guests in the 21st century
Becoming the leaders in heritage hospitality, offering world-class facilities and unique holiday
opportunities for guests from all over the world
Atithi devo bhava: Treating the guests as if they were God themselves - inculcating a truly
Indian sense of personalized service towards guests within the organization
Building an ethical and employee-friendly organization that can strive towards making this
vision a reality. Initiating environment-protection programmes and developmental plans to
positively impact the quality of life in the present and for future generations.
The House of Mewar has lived up to four perennial values:
1. Self respect
2. Self reliance
3. Respect for mankind
4. Service to community.
In order to sustain these values in ever changing times, the House of Mewar invested its
skills, time, and finances in the living heritage of art, architecture and culture. Now, it invites
you to become a joint custodian. It invites you to subscribe to the highest human values your
heart can subscribe to. This belief system drives all activities of the House of Mewar,
whether for profit (eg: The HRH Group of Hotels) or not- for-profit (eg several charitable,
cultural and educational trusts, the more salient being Maharana of Mewar Charitable
Foundation.)

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PERFORMANCE
APPRAISAL
SYSTEM

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Introduction

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the
performance appraisal is measuring and improving the actual performance of the
employee and also the future potential of the employee. Its aim is to measure
what an employee does

According to Flippo, A prominent personality in the field of Human resources,

performance appraisal is the systematic, periodic and an impartial rating of an
employees excellence in the matters pertaining to his present job and his
potential for a better job." Performance appraisal is a systematic way of
reviewing and assessing the performance of an employee during a given period
of time and planning for his future.

Employee performance Management includes:

Planning work and setting expectations,

Continually monitoring performance,

Developing the capacity to perform,

Periodically rating performance in a summary fashion, and

Rewarding good performance

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Performance management is the systematic process by which an organization

involves its employees, as individuals and members of a group, in improving
organizational effectiveness in the accomplishment of organization mission and
goals.

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It is a powerful tool to calibrate, refine and reward the performance of the

employee. It helps to analyze his achievements and evaluate his contribution
towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the

heart of personnel management and reflects the managements interest in the
progress of the employee.

Performance appraisal is a method of evaluating the behavior of employees in

the work place normally including both the quantitative and qualitative aspects
of job performance. Performance refers to the degree of accomplishment of the
tasks that make up an individuals job. It indicates how ell an individual is
fulfilling the job demands.

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Objectives of Performance Appraisal

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance

Self assessment by employee

Understanding strength and weakness.

Identifying training and development needs.

Identifying potential.

Better understanding between appraised and appraiser.

Recognizing achievements.

Goal setting GOAL.

Improved organizational performance.

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior

subordinates and management employees.

To diagnose the strengths and weaknesses of the individuals so as to

identify the training and development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the

organization.

Provide clarity of the expectations and responsibilities of the functions to

be performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

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Main features

A performance appraisal is a systematic and periodic process that assesses an

individual employees job performance and productivity in relation to certain preestablished criteria and organizational objectives. Other aspects of individual
employees are considered as well, such as organizational citizenship behavior,
accomplishments, potential for future improvement, strengths and weaknesses,
etc.
To collect PA data, there are three main methods: objective production,
personnel, and judgmental evaluation. Judgmental evaluations are the most
commonly used with a large variety of evaluation methods. Historically, PA has
been conducted annually (long-cycle appraisals); however, many companies are
moving towards shorter cycles (every six months, every quarter), and some have
been moving into short-cycle (weekly, bi-weekly) PA. The interview could function
as providing feedback to employees, counseling and developing employees,
and conveying and discussing compensation, job status, or disciplinary
decisions. PA is often included in performance management systems. PA helps
the subordinate answer two key questions: first, "What are your expectations of
me?" second, "How am I doing to meet your expectations?"
Performance management systems are employed to manage and align" all of an
organization's resources in order to achieve highest possible performance. How
performance is managed in an organization determines to a large extent the
success or failure of the organization. Therefore, improving PA for everyone
should be among the highest priorities of contemporary organizations.
Some

applications

of

PA

are

compensation,

performance

improvement,

promotions, termination, test validation, and more. While there are many
potential benefits of PA, there are also some potential drawbacks. For example,
PA can help facilitate management-employee communication; however, PA may
result in legal issues if not executed appropriately, as many employees tend to
be unsatisfied with the PA process. PAs created in and determined as useful in
the United States are not necessarily able to be transferable cross-culturally.
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Potential benefits
There are a number of potential benefits of organizational performance
management conducting formal performance appraisals (PAs). There has been a
general consensus in the belief that PAs lead to positive implications of
organizations. Furthermore, PAs can benefit an organizations effectiveness. One
way is PAs can often lead to giving individual workers feedback about their job
performance. From this may spawn several potential benefits such as the
individual workers becoming more productive.
Other potential benefits include:

Facilitation

of

communication:

communication

in

organizations

is

considered an essential function of worker motivation. It has been

proposed

that

feedback

employees perceptions of

from

PAs

aid

in

uncertainty. Fundamentally,

minimizing

feedback

and

management-employee communication can serve as a guide in job

performance.

Enhancement of employee focus through promoting trust: behaviors,

thoughts, and/or issues may distract employees from their work, and trust
issues may be among these distracting factors. Such factors that
consume psychological energy can lower job performance and cause
workers to lose sight of organizational goals. Properly constructed and
utilized PAs have the ability to lower distracting factors and encourage
trust within the organization.

Goal setting and desired performance reinforcement: organizations find it

efficient to match individual workers goals and performance with
organizational goals. PAs provide room for discussion in the collaboration
of these individual and organizational goals. Collaboration can also be
advantageous by resulting in employee acceptance and satisfaction of
appraisal results.

Performance improvement: well constructed PAs can be valuable tools for

communication
performance

with
stands

employees
with

as

pertaining

organizational

to

how

their

expectations. At

job
the

organizational level, numerous studies have reported positive relationships

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between human resource management (HRM) practices" and performance

improvement at both the individual and organizational levels.

Determination of training needs: Employee training and development are

crucial

components

in

helping

an

organization

achieve

strategic

initiatives. It has been argued that for PAs to truly be effective, postappraisal opportunities for training and development in problem areas, as
determined by the appraisal, must be offered. PAs can especially be
instrumental for identifying training needs of new employees. Finally, PAs
can help in the establishment and supervision of employees career goals.

PROCESS OF PERFORMANCE APPRAISAL

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STEPS IN PERFORMANCE APPRAISAL

SYSTEM

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ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the
standards which will be used to as the base to compare the actual performance
of the employees. This step requires setting the criteria to judge the performance
of the employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The standards set should
be clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to
describe

the

standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the
standards to all the employees of the organization.
The employees should be informed and the standards should be clearly
explained to the. This will help them to understand their roles and to know what
exactly is expected from them. The standards should also be communicated to
the appraisers or the evaluators and if required, the standards can also be
modified at this stage itself according to the relevant feedback from the
employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the performance appraisal process is measuring the
actual performance of the employees that is the work done by the employees
during the specified period of time. It is a continuous process which involves
monitoring the performance throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process and providing
assistance rather than interfering in an employees work.

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COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard
performance. The comparison tells the deviations in the performance of the
employees from the standards set. The result can show the actual performance
being more than the desired performance

or, the actual performance being less than the desired performance depicting a
negative deviation in the organizational performance. It includes recalling,
evaluating and analysis of data related to the employees performance.

DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees
on one-to-one basis. The focus of this discussion is on communication and
listening. The results, the problems and the possible solutions are discussed with
the aim of problem solving and reaching consensus. The feedback should be
given with a positive attitude as this can have an effect on the employees future
performance. The purpose of the meeting should be to solve the problems faced
and motivate the employees to perform better.

DECISION MAKING
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions,
or the related HR decisions like rewards, promotions, demotions, transfers etc.

38 | P a g e

PURPOSE OF PERFORMANCE APPRAISAL

Performance Appraisal is being practiced in 90% of the organizations worldwide.
Self-appraisal and potential appraisal also form a part of the performance
appraisal processes.

Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

There are four key elements in the appraisal system:

1. Set objectives - Decide what the Team Leader wants from the employees
and agree these objectives with them.
2.

Manage performance - Give employees the tools, resources and

training they need to perform well.

3. Carry

out

the

appraisal

- monitor and assess the employees'

performance, discuss those assessments with them and agree on future

objectives.

4. Provide rewards/remedies - Consider pay awards and/or promotion

based on the appraisal and decide how to tackle poor performance.

39 | P a g e

Performance Standards
How does the Team Leader decide what's acceptable and what's unacceptable
performance? The answer to this question is the first step in establishing written
standards. Performance expectations are the basis for appraising employee
performance. Written performance standards let the Team Leader to compare the
employee's performance with mutually understood expectations and minimize
ambiguity in providing feedback.
Having performance standards is not a new concept; standards exist whether or
not they
are discussed or put in writing. When the Team Leader observes an employee's
performance, he usually makes a judgment about whether that performance is
acceptable.
Standards identify a baseline for measuring performance. From performance
standards, the Team Leader can provide specific feedback describing the gap
between expected and actual performance.

Guiding Principles
Effective performance standards: Serve as an objective basis for communicating
about performance.

Increase job satisfaction because employees know when

tasks are performed well.Inform new employees of your expectations about job
performance.

Key Responsibility Areas (KRA)

The Team Leaders in association with the Project Manager write performance
standards for each key area of responsibility on the employee's job description.
The employee actively participates in its development. Standards are usually
established when an assignment is made, and they are reviewed if the
employee's job description is updated. The discussions of standards include the
criteria for achieving satisfactory performance and the proof of performance
(methods the Team Leader will use to gather information about work
performance).

Characteristics of Performance Standards

40 | P a g e

Standards describe the conditions that must exist before the performance can be
rated satisfactory.
A performance standard should: Be realistic, in other words, attainable by any
qualified, competent, and fully trained person who has the authority and
resources to achieve the desired result Describe the conditions that exist when
performance meets expectations Be expressed in terms of quantity, quality,
time, cost, effect, manner of performance, or method of doing
Be measurable, with specified method(s) of gathering performance data and
measuring performance against standards

Expressing Standards
The terms for expressing performance standards are outlined below:
Quantity: Specifies how much work must be completed within a certain period
of time.
Quality: Describes how well the work must be accomplished. Specifies
accuracy, precision, appearance, or effectiveness.
Timeliness: Answers the questions, by when? , How soon? , Or within what
period?
Effective Use of Resources: Used when performance can be assessed in terms
of utilization of resources: money saved, waste reduced.
Effects of Effort: Addresses the ultimate effect to be obtained; expands
statements of effectiveness by using phrases such as: so that, in order to, or as
shown by.
Manner of Performance: Describes conditions in which an individual's personal
behavior has an effect on performance, e.g., assists other employees in the work
unit in accomplishing assignments.
Method of Performing Assignments: Describes requirements; used when
only the officially prescribed policy, procedure, or rule for accomplishing the work
is acceptable.
41 | P a g e

Performance Measurements
Since one of the characteristics of a performance standard is that it can be
measured, the Team Leader identifies how and where evidence about the
employee's

performance

will

be

gathered.

Specifying

the

performance

measurements when the responsibility is assigned will help the employee keep
track of his progress, as well as helping the Team Leader in the future
performance discussions.
There are many effective ways to monitor and verify performance, the most
common of Which are? Direct observation Specific work results (tangible
evidence that can be reviewed without the Employee being present) Reports &
records,

such

as

attendance,

safety,

inventory,

financial

records,

etc.

Commendations or constructive or critical comments received about the

employee's work.

Observation and Feedback (One on One)

Once performance objectives and standards are established, the Team Leader
observes the employees' performance and provides feedback. The Team Leader
has a responsibility to recognize and reinforce strong performance by an
employee, and identify and encourage improvement where it is needed. The
Team Leader provides informal feedback almost every day.
By observing and providing detailed feedback, the Team Leader plays a critical
role in the employee's continued success and motivation to meet performance
expectations.

One On One Sessions

One on One is a method of strengthening communication between the Team
Leader and the employee. It helps to shape performance and increase the
likelihood that the employee's results will meet expectations. One on One
session provide the Team Leader and the employee the opportunity to discuss
her progress toward meeting mutually established standards and goals. A One on
One session focuses on one or two aspects of performance, rather than the total
review that takes place in a performance evaluation.
42 | P a g e

Guiding Principles
Effective One on One can:
Strengthen communication between the Team Leader and the employee
Help the employee attain performance objectives
Increase employee motivation and commitment
Maintain and increase the employee's self-esteem
Provide support

43 | P a g e

Key Elements of One on One

To make One on One sessions effective, the Team Leader keeps the following key
elements of One on One in mind while conducting such a session:
Observe the employee's work and solicit feedback from others. When
performance is successful, take the time to understand why. Advise the
employee ahead of time on issues to be discussed.

Questions to Consider during One on One

To provide effective feedback the Team Leader must understand the elements of
performance and analyze marginal performance. These questions are kept in
mind:How is the employee expected to perform? Does the employee understand these
expectations? If not, why not?
Does the employee know what successful results look like? How does the Team
Leader know?
Does the employee know the performance is marginal? How does the Team
Leader know?
Are there obstacles beyond the employee's control? Can the Team Leader
Remove? them?
Has the employee ever performed this task satisfactorily? Is the employee willing
and able to learn? Does satisfactory performance result in excessive work being
assigned?
Does unsatisfactory performance result in positive consequences such as an
undesirable task being reassigned?

During the One on One Session

When the Team Leader conducts a One on One session to provide positive
feedback to the employee, he keeps the following points in mind: Describe the
positive performance result or work habit using specific details. Ask the
employee's opinion of the same product or behavior.

44 | P a g e

Ask the employee to identify elements that contributed to success (adequate

time or resources, support from management or other employees, the
employee's talent and interest in the project). Discuss ways in which the Team
Leader and the employee can support continued Positive results. Reinforce for
the employee the value of the work and how it fits in with the goals of the work
unit or department. Show your appreciation of the positive results and your
confidence

that

the

employee

will

continue

to

perform

satisfactory.

If

appropriate, document your discussion for the employee's file. When the Team
Leader conducts a One on One session to improve performance, he uses the
following format: Describe the issue or problem, referring to specific behaviors.
Involve the employee in the problem-solving process. Discuss causes of the
problem. Identify and write down possible solutions. Decide on specific actions to
be taken by each of the Team Leader. Agree on a follow-up date. Document key
elements of the session.

Methods of collecting data

There are three main methods used to collect performance appraisal (PA) data:
objective

production,

personnel,

and

judgmental

evaluation.

Judgmental

evaluations are the most commonly used with a large variety of evaluation
methods.
Objective production
The objective production method consists of direct, but limited, measures such
as sales figures, production numbers, the electronic performance monitoring of
data entry workers, etc. The measures used to appraise performance would
depend on the job and its duties. Although these measures deal with
unambiguous

criteria,

they are

usually

incomplete

because

of

criterion

contamination and criterion deficiency. Criterion contamination refers to the part

of the actual criteria that is unrelated to the conceptual criteria. In other words,
the variability in performance can be due to factors outside of the employees
control. Criterion deficiency refers to the part of the conceptual criteria that is
not measured by the actual criteria. In other words, the quantity of production
does not necessarily indicate the quality of the products. Both types of criterion
inadequacies result in reduced validity of the measure. Regardless of the fact
45 | P a g e

that objective production data is not a complete reflection upon job performance,
such data is relevant to job performance.
Happy-productive worker hypothesis
The happy-productive worker hypothesis states that the happiest workers are the
most productive performers, and the most productive performers are the
happiest workers. Yet, after decades of research, the relationship between job
satisfaction and job performance produces only a weak positive correlation.
Published in 2001 by Psychological Bulletin, a meta-analysis of 312 research
studies produced an uncorrected correlation of 0.18. This correlation is much
weaker than what the happy-productive worker hypothesis would predict.
Personnel
The

personnel

method

is

the

recording

of

withdrawal

behaviors

(i.e.

absenteeism, accidents). Most organizations consider unexcused absences to be

indicators of poor job

performance,

even with all other factors being

equal. However, this is subject to criterion deficiency. The quantity of an

employees absences does not reflect how dedicated he/she may be to the job
and its duties. Especially for blue-collar jobs, accidents can often be a useful
indicator of poor job performance, but this is also subject to criterion
contamination because situational factors also contribute to accidents. Once
again, both types of criterion inadequacies result in reduced validity of the
measure. Although excessive absenteeism and/or accidents often indicate poor
job performance rather than good performance, such personnel data is not a
comprehensive reflection of an employees performance.
Judgmental evaluation
Judgmental evaluation appears to be a collection of methods, and as such, could
be considered a methodology. A common approach to obtaining PAs is by means
of raters. Because the raters are human, some error will always be present in the
data.

The

most

common

types

of

error

are leniency

errors, central

tendency errors, and errors resulting from the halo effect. Halo effect is
characterized by the tendency to rate a person who is exceptionally strong in
one area higher than deserved in other areas. It is the opposite of the Horns
effect, where a person is rated as lower than deserved in other areas due to an
extreme deficiency in a single discipline. These errors arise predominantly
46 | P a g e

from social cognition and the theory in that how we judge and evaluate other
individuals in various contexts is associated with how we acquire, process, and
categorize information.
An essential piece of this method is rater training. Rater training is the
process

of

educating

raters

to

make

more

accurate

assessments

of

performance, typically achieved by reducing the frequency of halo, leniency, and

central-tendency errors. Rater training also helps the raters develop a common
frame of reference for evaluation of individual performance. Many researchers
and

survey

respondents

support

the

ambition

of

effectual

rater

training. However, it is noted that such training is expensive, time consuming,

and only truly functional for behavioral assessments.
Another piece to keep in mind is the effects of rater motivation on judgmental
evaluations. It is not uncommon for rating inflation to occur due to rater
motivation (i.e. organizationally induced pressures that compel raters to
evaluate rates positively). Typically, raters are motivated to give higher ratings
because of the lack of organizational sanction concerning accurate/inaccurate
appraisals, the rater's desire to guarantee promotions, salary increases, etc., the
rater's inclination to avoid negative reactions from subordinates, and the
observation that higher ratings of the rates reflect favorably upon the rater.
The main methods used in judgmental performance appraisal are:

Graphic Rating Scale: graphic rating scales (see scale (social sciences))
are the most commonly used system in PA. On several different factors,
subordinates are judged on 'how much' of that factor or trait they possess.
Typically, the raters use a 5- or 7-point scale; however, there are as many
as 20-point scales.

Employee-Comparison

Methods:

rather

than

subordinates

being

judged against pre-established criteria, they are compared with one

another. This method eliminates central tendency and leniency errors but
still allows for halo effect errors to occur.

The rank-order method has

raters ranking subordinates from best to worst, but how truly good or
bad one is on a performance dimension would be unknown. The paired47 | P a g e

comparison method

requires

the

rater

to

select

the

two

"best"

subordinates out of a group on each dimension then rank individuals

according to the number of times each subordinate was selected as one of
the "best". The forced-distribution method is good for large groups of
rates. The raters evaluate each subordinate on one or more dimensions
and then place (orforce-fit, if you will) each subordinate in a 5 to 7
category normal distribution. The method of top-grading can be applied to
the forced distribution method. This method identifies the 10% lowest
performing subordinates, as according to the forced distribution, and
dismisses them leaving the 90% higher performing subordinates.

Behavioral Checklists and Scales: behaviors are more definite than

traits. The critical incidents method (or critical incident technique)
concerns

specific

behaviors

indicative

of

good

or

bad

job

performance. Supervisors record behaviors of what they judge to be job

performance relevant, and they keep a running tally of good and bad
behaviors.

discussion

on

performance

may

then

follow.

The Behaviorally Anchored Rating Scales (BARS) combine the critical

incidents method with rating scale methods by rating performance on a
scale

but

with

incidents. Note
Observation

the
that

Scale

scale

points

BARS

are

being

job

(BOS) approach

anchored

specific.
to

In

by

behavioral

the Behavioral

performance

appraisal,

employees are also evaluated in the terms of critical incidents. In that

respect,

it

is

similar

to

BARS.

However,

the BOS appraisal

rate

subordinates on the frequency of the critical incidents as they are

observed to occur over a given period. The ratings are assigned on a fivepoint scale. The behavioral incidents for the rating scale are developed in
the same way as for BARS through identification by supervisors or other
subject

matter

experts.

Similarly, BOS techniques

meet

equal

employment opportunity because they are related to actual behavior

required for successful job performance.

Sources of Error in Performance Appraisal:

48 | P a g e

1.

Rating Biases: It is a subjective measure of rating performance which is

not verifiable by others and has the opportunity for bias. There rater biases
include: a) the halo effect b) the error of central tendency c) the leniency and
strictness biases d) personal prejudice and e) the recency effect.
3.

Halo Effect: It is the tendency of the raters to depend excessively on the

rating of one trait or behaviourial consideration in rating all other traits or

behavioural considerations. One way of minimizing the halo effect is appraising
all employees by one trait before going to rate them on the basis of another trait.
4.

The Error of Central Tendency: Some raters follow play safe policy in

rating by rating all the employees around the middle point of the rating scale
and they avoid rating the people at both the extremes scale. They follow play
safe policy because of answerability to the management or lack of knowledge
about the job and person he is rating or has least interest in the job.
4.

The Leniency and Strictness: the leniency bias crops when some raters

have a tendency to be liberal in their rating by assigning higher rates

consistently. Such ratings do not serve any purpose. Equally damaging is
assigning consistently low rates.
5.

Personal Prejudice: If the rater dislikes any employee or any group, he

may rate them at the lower end, which may distort the rating purpose and affect
the career of these employees.
5. The Recency Effect: The raters generally remember the recent
actions of the employee at the time of rating them on the basis of
these recent actions

favorable or unfavorable-rather than on the

whole activities.

Employee reactions

49 | P a g e

Numerous researchers have reported that many employees are not satisfied with
their performance appraisal (PA) systems. Studies have shown that subjectivity
as well as appraiser biases often a problem perceived by as many as half of
employees. Appraiser bias, however, appears to be perceived as more of a
problem in government and public sector organizations. Also, according to some
studies, employees wished to see changes in the PA system by making the
system more objective, improving the feedback process, and increasing the
frequency of review. In light of traditional PA operation defects, organizations
are now increasingly incorporating practices that may improve the system. These
changes are particularly concerned with areas such as elimination of subjectivity
and bias, training of appraisers, improvement of the feedback process and the
performance review discussion.
According to a meta-analysis of 27 field studies, general employee participation
in his/her own appraisal process was positively correlated with employee
reactions to the PA system. More specifically, employee participation in the
appraisal process was most strongly related to employee satisfaction with the PA
system. Concerning the reliability of employee reaction measures, researchers
have found employee reaction scales to be sound with few concerns through
using a confirmatory factor analysis that is representative of employee reaction
scales.
Researchers suggest that the study of employees reactions to PA is important
because of two main reasons: employee reactions symbolize a criterion of
interest to practitioners of PAs and employee reactions have been associated
through

theory

to

determinants

of

appraisal

acceptance

and

success. Researchers translate these reasons into the context of the scientistpractitioner gap or the lack of alignment between research and practice.

50 | P a g e

RESEARCH STUDY

51 | P a g e

Aim of the Research

To ascertain the effectiveness of Performance Appraisal methodology used by the
Organization.

Objectives of the study

The following are the objectives of the study
To develop my understanding of the subject.
Performance Appraisal System implemented in various Organizations varies
according to the need and suitability. Through my research, I have tried to study
the kind of Appraisal used in the Organization and the various pros and cons of
this type of system.
To conduct a study on social behavior.
Social behavior is a very unpredictable aspect of human life but social research is
an attempt to acquire knowledge and to use the same for social development.
To enhance the welfare of employees.
The Appraisal system is conceived by the Management but mostly does not take
into consideration the opinion of the employees. This can lead to adverse
problems in the Organization. Therefore by this study I have attempted to put
forth the opinion of the employee with respect to the acceptability of the
Performance Appraisal System.
To exercise social control and predict changes in behavior.
The ultimate object of my research is to make it possible to predict the behavior
of individuals by studying the factors that govern and guide them.

Research Design
52 | P a g e

A research design is a type of blueprint prepared on various types of blueprints

available
for the collection, measurement and analysis of data. A research design calls for
developing the most efficient plan of gathering the needed information. The
design of a research study is based on the purpose of the study. A research
design is the specification of methods and procedures for acquiring the
information needed. It is the overall pattern or framework of the project that
stipulates what information is to be collected from which source and by what
procedures.

Sampling
An integral component of a research design is the sampling plan. Specifically, it
addresses three questions Whom to survey (The Sample Unit) How many to
Survey (The Sample Size) & How to select them (The Sampling Procedure)
Making a census study of the whole universe will be impossible on the account of
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 is to get maximum information about the parent
population with minimum effort.

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 he persons making the study that is, the
sampling operation is controlled objectively so that the items will be chosen
strictly at random.
Non Probability Sampling is also known as deliberate sampling, purposeful
and judgmental sampling. Non-Probability Sampling is that which does not
provide every individual in the Organization with a known chance of being
included in the sample.

53 | P a g e

Data collection method

Collection of data is the first step in statistics. The data collection process follows
the formulation for research design including the sample plan. The data can be
secondary or primary.
Collection of Primary Data during the course of the study or research can be
through observations or through direct communication with respondents on one
form or another or through personal interviews. I have collected primary data by
the means of a Questionnaire. The Questionnaire was formulated keeping in
mind the objectives of the research study.
Secondary data means data that is already available i.e., they refer to data,
which has already been collected and analyzed by someone else. When a
secondary data is used, the researcher has to look into various sources from
where he can obtain data. This includes information from various books,
periodicals, magazines etc.

Research Methodology Adopted

Research Design: Descriptive research
Research Instrument: Structured Questionnaire
Sampling Plan
i) Sample Method: Non-Probability Sampling (Convenience Sampling)
ii) Sample Size: 30
iii) Sample Unit: Employees who do not hold a supervisory position

Sampling Design
Convenience Sampling, as the name implies, is based on the convenience of
the researcher who is to select a sample. Respondents in the sample are
included in it merely on account of their being available on the spot where the
survey was in progress.

Source of Data
a) Primary Data : Structured Questionnaire
b) Secondary Data : Journals, Booklets, Company Data, etc.
54 | P a g e

DATA ANALYSIS

55 | P a g e

Q1. How long you have been working in the industry ?

Chart Title
years
less than 3
3-5 years
more than 5

Interpretation: - Out of 30 respondents, number of employees that have

worked in the company for less than 3 Years is 6, for 3 to 5 years is 14 and those
who worked for more than 5 years is 10.

56 | P a g e

Q2. What do you think is your key role towards the success
of the company?

Interpretation

10

12

14

16

18

20

- Out of 30 respondents, number of employees those

worked really hard in the last one year are 16, those area of concern is to
grooming people are 8 so that they become better resources and those prime
area waz to manage people as a whole are 6.

57 | P a g e

58 | P a g e

Q 3. Were you informed about the Performance Appraisal

model,

used in the Organization, during your induction?

yes
no

1) Yes : 20
2) No : 10

Interpretation: Due to the fact that most of the employees have got no
experience in this sector before, they did not ask about the Performance
Appraisal model used in the Organization. The Respondents that said that they
were informed of the model during the interview were told so at the discretion of
the interviewer. The company has however made it a point to inform the
employee about the model before he signs the acceptance letter. This prevents
any mbiguities and misunderstanding about what is expected of the employee
before he joins the Organization.

59 | P a g e

Q 4. According to you, how often should the Performance

Review take place?

10

Data
1) Once in a week 8

2) Once a month 6

4) Every 6 Months 4

5) Once a Year - 2

3) Every 3 months - 10

Interpretation: Performance appraisal review is a constant process and

lesser the frequency between the appraisals, the better. The majority want the
frequency of the appraisal to every 3 months. The employees say that the longer
the frequency between appraisals, the more the chances of the appraisal not
matching up to their expectations because many performances get overlooked. If
the appraisal is done on a more frequent basis, the employee has a chance to
find out the gaps in his / her performance on a more regular basis which will help
them to improve more on their performance and thereby eliminate waste. The
appraisal does not necessarily have to be a formal one. Even informal
performance appraisals done between formal appraisals but on a more frequent
level will most certainly help and go a long way in improving performance.

60 | P a g e

Q 5) How do you find the Performance Appraisal Model in

this Organization? (Mark all the relevant options)

35
30
25
20
15
10
5
0

Data
1) Simple -10

2) Complicated -1

3) Objective - 2

4) Subjective - 2

5) Efficient - 15

6) Inefficient - 0

Interpretation: From the above chart it can be inferred that, a majority of

the sample respondents have found the Appraisal Model to be simple and
efficient. The Appraisal model has been thoroughly dealt with during the training
so the employees know exactly what is expected of them.

61 | P a g e

Q 6) In your opinion, does the Performance Appraisal System

give a proper assessment of your contribution to the
Organization?

Data
1) Yes 23

2) No - 7

Interpretation: About 76.67% of the respondents say that the Performance

Appraisal System does give a true and fair view of their contribution to the
Organization. This does include employees who think that their rating does not
always turn up to be correct as per their opinion. The group of respondents, who
have replied in the negative, also include candidates who say that the appraisal
does not turn out to be right most of the times but do show a fair
View sometimes.

62 | P a g e

63 | P a g e

Q 7) What is your Satisfaction level with the current

Appraisal System?

18
16
14
12
10
8
6
4
2
0

Data
1) Very Low 0
4) High 17
Interpretation :

2) Low 2

3) Average -5

5) Very High - 6
The satisfaction level of the Appraisal system is quite high as can

be seen from the graph.

This is a good sign as increased level of satisfaction is the main emphasis of any
appraisal system. The curve tops at the rating of high and this includes about
56% of the population. The bell curve shows that 92% have rated the Appraisal
system as average, high or very high . The high Satisfaction level in the System
could also be due to various reasons like monetary or non-monetary incentives
or growth parameters.
The satisfaction level also brings to light the efficiency of the management in
devising an acceptable Appraisal system.

64 | P a g e

65 | P a g e

Q 8) How important do you think is Performance Appraisal to

your
Performance?
35
30
25
20
15
10
5
0

Data
1) Not Important 0

2) Less Important - 1

4) Very Important - 15

5) Most Important - 8

Interpretation :

3) Important - 7

This question was put in to find out and analyze the importance of

the Appraisal system to the productivity of the employee. The data clearly shows
that the recognition of the employee s performance does have a direct impact on
his / her efficiency.
A vast majority of the respondents

affirm that their performance is directly

influenced by recognitions of their performance by the appraisal system. None of

the respondents have stated that the appraisal system had no effect on their
productivity.
This points out to the fact that the Appraisal system goes a long way in
determining the productivity of the employees in an Organization. Therefore it is
very important for any Organization to devise their Performance Appraisal System
carefully.

66 | P a g e

67 | P a g e

Q9. Promotion, transfer, demotion and suspension is purely

based on performance appraisal.

10

15

A. STRONGLY AGREE - 10

20

25

30

B. AGREE - 16

C. NEITHER AGREE NOR DISAGREE - 4

E. STRONGLY DISAGREE - 0

Interpretation: Around 33.33% employees are strongly agreed and 56.67%

are agreed

with this statement only 13% employees are neither agree nor

disagree it shows the importance of performance appraisal system.

Q10. Training programs are effective for organization and

individual development.
68 | P a g e

16
14
12
10
8
6
4
2
0

A. STRONGLY AGREE - 15

B. AGREE - 10

C. NEITHER AGREE NOR DISAGREE - 5

E. STRONGLY DISAGREE - 0

Interpretation: 50 % employees are in favor of training program. It is good

for the development of the employees as well as for organization.

Q11. Performance appraisal increases employee motivation.

69 | P a g e

30
25
20
15
10
5
0

A. STRONGLY AGREE - 10

B. AGREE - 10

C. NEITHER AGREE NOR DISAGREE - 5

E. STRONGLY DISAGREE 5

Interpretation: Around 20 employees are in favor of increase of employees

motivation through appraisal system and it will brought tremendous changes in
the performance of the employees and rest are not in favor of it because they
have there own set of mind for work.

70 | P a g e

LIMITATIONS

71 | P a g e

The following are the limitations faced by me during the course of the study

The sample consisted only of employees in the day shift. Employees of the
night
shift were not considered for the purpose of study.

There is no concrete basis to prove the response given is a true measure

of the
opinion of all the employees as a whole.

Convenient sampling was used as the mode of conducting the research.

The questionnaire contained mostly multiple-choice questions; therefore

many
Respondents may not have given a proper thought before answering the
questions.

The response of the respondents may not be accurate thinking that the
Management might misuse the data.

Almost all of the questionnaires had the closed-ended question.

Sensitive company information cannot be displayed in the project report.

Most respondents might be influenced by their peers in answering the

questions.

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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FINDINGS AND CONCLUSIONS

The following are the suggestions and conclusions derived from this particular
research study Objectivity One manager's idea of "self-starting ability" can be
quite different than another's idea. The question then arises as to how one
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objectively evaluates "creativity? If greater amount of objectivity can be infused

into the Appraisal system, it can help to bring more transparency.
Effective Communication
One function of performance appraisals is to help employees develop so they can
contribute more effectively. In order for the employees to develop and learn they
need to know what they need to change, where (specifically) they have fallen
short, and what they need to do. If a manager assigns a 1(unsatisfactory) on a
scale of 5, it does not convey much information to an
employee. It just says the manager is dissatisfied with something. In order to
make it meaningful and promote growth, far more information must be added to
the appraisal process and the related information should be transparently shared
with the employee.
Fairness
Most employees resist being classified at the low end of the scale. Employees
who are low rated are more likely to resist the evaluation of the superior and
argue, claiming that personal bias was involved in the ratings.
Managerial Efficiency
The implementation of a Performance Appraisal System rests on the shoulders of
the manager and he must ensure that it is done properly. A good manager can
make an average appraisal system work and vice-versa.

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BIBLIOGRAPHY

BOOKS

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 K. Ashwathappa Human Resource Management 5th edition.

C.B Mamoria and S.V. Gannker Personnel management 5 th edition.

T.V. Rao Appraising and Developing Managerial Performance

L.M Prasad Human Resource Management

M.L Monga Management of Performance Appraisal

V.S.P.Rao Human Resource Management

T.N. Chabra Human Resource Management

C.R.Kothari. International Marketing Management

JOURNALS AND MAGAZINES

Booklet of HRH Group of Hotels

Brochure of Eternal Mewar and HRH Group of Hotels
Synopsis of Maharana of Mewar Charitable foundation

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REFERENCES-

www.hrhhotels.com
www.pmintpc.com
http://en.wikipedia.org/wiki/Performance_appraisal
www.businessballs.com
http://www.performance-appraisal.com/intro.htm
http://www.performancemanagementguide.com/
www.openlearningworld.com
www.google.co.in
www.yahoo.com

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ANNEXURE

Q1. How long you have been working in the industry?

a) Less than 3 b) 3-5 years

c) More than 5 years

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Q2. What do you think is your key role towards the success of the company?
a.

You worked really hard in the last one year or so and ensured that everything is in

proper place
b.

Your area of concern was grooming people so that they become better resources.

c.

Your prime work area was to manage people as a whole

Q 3. Were you informed about the Performance Appraisal model,

used

in the

Organization, during your induction?

a. Yes

b. no

Q 4. According to you, how often should the Performance Review take place?
1) Once in a week

2) Once a month

4) Every 6 Months

5) Once a Year -

3) Every 3 months -

Q 5) How do you find the Performance Appraisal Model in this Organization?

(Mark all the relevant options)
1) Simple -

2) Complicated -

3) Objective -

4) Subjective -

5) Efficient -

6) Inefficient

Q 6) In your opinion, does the Performance Appraisal System give a proper

assessment of your contribution to the Organization?
a- yes

b. no

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Q 7) What is your Satisfaction level with the current Appraisal System?

1) Very Low
4) High

2) Low

3) Average -

5) Very High -

Q 8) How important do you think is Performance Appraisal to your

Performance?
1) Not Important

2) Less Important -

4) Very Important -

5) Most Important -

3) Important -

Q9. Promotion, transfer, demotion and suspension is purely based on

performance appraisal.
A. STRONGLY AGREE -

B. AGREE -

C. NEITHER AGREE NOR DISAGREE E. STRONGLY DISAGREE -

Q10. Training programs are effective for organization and individual

development.
A. STRONGLY AGREE -

B. AGREE -

C. NEITHER AGREE NOR DISAGREE E. STRONGLY DISAGREE -

Q11. Performance appraisal increases employee motivation.

A. STRONGLY AGREE -

B. AGREE -

C. NEITHER AGREE NOR DISAGREE E. STRONGLY DISAGREE

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