CHAPTER I

INTRODUCTION

Every year workers experience an assessment of their past performance. Employees

generally see these evaluation as having some direct effect on their work live. They may result in
increased pay, a endorsement, or assistance in personal growth 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 at the same time focusing on key behavior of the job.

If we want to know how well the employees are doing, weve got to measure their
performance-not of need 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 complete several purposes.

TOPIC CHOSEN FOR STUDY

The topic chosen for study is PERFORMANCE APPRAISAL at GBCMU LTD,

GULBARGA.
OBJECTIVES .

To understand the role of performance appraisal.

To know the perception of employees about appraisal system of organization..

To study the different aspects of performance appraisal system such as the criteria of
performance appraisal.

To study the methodology of the performance appraisal at this organization.

SCOPE OF THE STUDY

The scope of the study was excellent towards the organization, visited various department
Function, and operating function of the organization. Good employee performance system in the
KMF.

It also helps in knowledge about whom the raters are rating and what role do they play in
appraising the performance. On the contrary, the study reveals whether the employees are
satisfied by it or whether they used some ways of promoting them.
REVIEW OF LITERATURE

According to latham and wexley, 1981 performance appraisal are only effective if it is
ongoing. Periodic observations, monitoring, coaching, counseling, feedback and record keeping
by rater are crucial. Hence in this way performance problems are caught early and corrected
before they have costly consequences. The result of performance appraisal must be given
frequently to an employee if they are to bring about a change in an employees behavior or
maintain a high standard of excellence. Employees need feedback on how well they are doing.
They must accurately perceive the consequences of their efforts and be able to set goals on the
basis of this feedback.

There is empirical evidence to support these suggestions. Bretz, Mikovich and

Read(1992) defines halo effects as group of rating, or appraisals, that are generally inflated and
co related with each additional due to a general perception of the rater that is not tried to the
specific characteristics being rated. A halo appears when, instead of differentiate between levels
of performance on different size, the rater assigns ratings on the basis of a global impression of
the ratee.

Borman, 1975 the halo effect causes individuals to be rated as consistently good or
consistently poor performance (Nathan and Lord, 1983). This halo effect is omnipresent in
nature and represents a considerable hurdle in conducting performance appraisal.
RESEARCH METHODOLOGY

Conceptual Background:
In carrying out of any project research choosing the appropriate research
methodology is vital. An efficient research methodology is the backbone of any
projects methodology which clearly brings out the various steps required.

The study was carried out in KMF for a period of 45 day the both primary and
secondary date were used for collecting information.

Primary Data:
In order to collect first hand information a questionnaire was designed to elicit
responses from the employees. The was personally administered to each
respondent get his or her responses.
Questionnaire was prepared which include not closed ended and open end
question sample size of 25 was randomly chosen for the survey. Data was
tabulated classified where ever necessary data provided in graph.

Secondary data:
The source of secondary data had been.
1. The company manuals.
2. Internet.
3. Concerned textbooks.

Sample area:
The survey was carried out at KMF co. Ltd,, wherever necessary the study
would make use of relevant statistical tools like percentage and Diagrams the
 observation of research has also played a key role in Analysis of data. The raw
obtained would be segregated according to requirement and then results would be
evaluated.

LIMITATIONS

This study was limited to that particular organization.

The study cannot be taken as representative of the other milk union in the State.

They are based on human assessment and are subject to rater error and biases.

Performance appraisal is very time consuming and cannot be overwhelming to

managers with many employees.

This study was restricted within the organization campus.

NEEDS

It provides information which helps to counsel the subordinate.

To prevent grievance and in disciplinary activities advertisements.

It provides information about the performance ranks basing on which decision

regarding salary fixation, confirmation, promotions, transfer and demotion are
taken.