Titan defines performance appraisal as

A regular activity conducted periodically to rate an employee

An activity to identify the developmental need of the employee

An activity to keep a check in the performance of the employee

A system to help employees identify his own strengths and weakness with respect tohis job

A system to assist various personnel decisions by generating

d a t a a b o u t e a c h employee periodically

A means to improve communication between superior and subordinate

Objectives of performance appraisal

To make decisions regarding salary increase

To identify the training and developmental needs of the employees

To facilitate communication between the superior and his subordinates

Method of appraisal

Rating

Critical incidents

MBO

360 degrees appraisal

Basic of appraisal
Results

Job behaviour

The performance of employees are appraised on the basis of results

c o m b i n e d w i t h t h e process of achieving those results, i.e., job behaviour.T i t a n u s e s
performance appraisal to set goals for employees. It serves as a
p l a t f o r m t o communicate the goal of the organisation to the employees as they
understand what is their role or what part do they play in achieving the goals. It
gives them a clear view of what theorganisation expects from them. Also, at the time
of appraisal, the employees at Titan speak freely about their developmental needs and
personal objectives.Here at Titan, MBO is followed. The Top management decides the goal
of the company andthen it is broken down for different departments and then to
employees.
Problems in Appraisal

Time consuming

Untrained appraisers

Difference of opinion between the appraiser and the appraise

Solutions to problems

The appraisal is time consuming in natu re in the sense that a lot of time is taken
for t h e a p p r a i s a l p r o c e s s , s t a r t i n g f r o m t r a i n i n g t h e a p p r a i s e r s
r e g a r d i n g t h e u s e o f appraisal, followed by target setting for the year, followed by
review of performance,t h e n f i n d i n g o u t t h e f a c i l i t i e s a n d t h e h i n d e r i n g
f a c t o r s , t h e n t h e d i s c u s s i o n s a n d finally make the decision.

Lack of training is also a major problem faced by the company. Appraisers need to
be properly trained for the use of the appraisal system. The objective of the
appraisalsystem goes hay wire if the appraiser is untrained. Therefore the
company must hire professionals who are well trained to fulfil the purpose of appraisal.

The difference of opinion between the appraiser and the appraise is usually solved
byinterviews and discussions.

Rewards
Titan follows the concept of performance related payA p p r a i s a l i s a m o t i v a t i n g
f a c t o r a n d i t i s a l l t h e m o r e m o t i v a t i n g w h e n i t i s l i n k e d w i t h increased
pay packets. Financial incentives play an important role in inducing employees
to p e r f o r m b e t t e r . T h u s , m o s t o r g a n i s a t i o n s n o r m a l l y l i n k
i n c e n t i v e s w i t h a p p r a i s a l s . Performance related to pay allows good performance
to receive material recognition for their good performance.