Winter project Report

On
“PERFORMANCE APPRAISAL SYSTEM”

Under the supervision of

PROF. LK SINGH

Submitted By:
BABITA PADIYAR
MBA (2YR) 4TH SEM

ROLL NO-

DEPARTMENT OF MANAGEMENT STUDIES BHIMTAL

(BHIMTAL)

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 ACKNOWLEDGEMENT
It is not a single man’s effort which is sufficient for the accomplishment of a research. No
task can be successfully by a single individual. I acknowledge here the names of those people
who have been instrumental in preparation of my project.

I take the opportunity to thanks Prof. Lk Singh (project guide/ lecturer management dept)
for motivating, encouraging, guiding, and supporting at every steps and sparing his valuable
time for me.

I convey my gratitude towards the entire individual who directly or indirectly towards
completion of this report.

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 DECLERATION

I hereby declare that the project entitled “PERFORMANCE APPRAISAL SYSTEM”

is a record of an original work done by me under the guidance of PROF. L K SINGH
(project guide)

I also confirm that the report is only prepared for my academic requirements not for any
other purpose.

I understand any duplication is liable to be punished in accordance within the university

rules.

NAME – BABITA PADIYAR

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 EXECUTIVE SUMMARY

 Most organization has a performance appraisal program that has evolved over
time and is likely not meeting the needs of employees and managers.
 Many competing Performance Appraisal theories and practices exist making
development of an effective program difficult. However, done well, a strong PA
program reinforces organizational culture and help emlpoyees achieve high
levels of performance.
 Every strong Performance Appraisal program has three elements performance
tracking informal, feedback and formal appraisal.
 Build on these elements to customize your program to your organizations goals
and values:
Informal coaching is the single most significant factor in easing retention and development
talent.
o Forced ranking and forced distribution are techniques that work well in
competitive environments. Avoid them in team based departments.
o 360-degree evaluation helps to improve people management abilities.
Stay away from using for manager compensation or disciplinary
purposes.

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 CONTENT

TOPICS PAGE NO.

CHAPTER 1- INTRODUCTION

CHAPTER 2- COMPANY PROFILE

CHAPTER3- LITERATURE REVIEW

CHAPTER4- RESEARCH METHA

CHAPTER5-

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 CHAPTER: 1

INTRODUCTION

Performance Appraisal is a process supporting the use of human resources in an organization.

It is possibly management’s most powerful tool of controlling performance and productivity
of human resources in the organization. Used effectively, appraisal system can have
tremendous strategic potential for governing employee behavior and, in turn, organization’s
direction through its dynamic links to selection, training, career-path planning and reward
systems.

Over the period, the scope of performance appraisal has grown significantly. Its traditional
focus has been enlarged to include not only the individual’s behavior on the job but also his
functioning as an integral part of the organization.

The main utility of the appraisal system lies in its being an adjunct of sound personnel
administration; it furnishes the base material on which placements, promotions, further
training and education, etc. should normally depend. Performance appraisal helps the
organization evaluate the overall effectiveness of its own programme of management
development.

DEFINITIONS OF PERFORMANCE APPRAISAL:

According to Alford and Beatty, “Performance appraisal is the evaluation or appraisal of the
relative worth to the company of a man’s services on his job”.

According to Flippo, “Performance appraisal is a systematic, periodic and so far as humanly

possible, and impartial rating of employee’s excellence in matters pertaining to his present
job and to his potentialities for a better job”.

According to Deal Yoder: “All formal procedures used in working organization to evaluate
personalities and contribution and potentials of group member.”

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A formal definition of Performance Appraisal is that, “It is the systematic evaluation of the
individual with respect to his or her performance on the job and his potential for
development.”

The regular (usual annual) process where an employee’s performance for the year is assessed
by manager and/or employee. It is only one part of the performance management approach.
Usually means the same as "performance review"

According to Douglass: Performance appraisal is a method of acquiring and processing the

information needed to improve an individual employee’s performance and accomplishments.

Characteristics of performance Appraisal

 Performance Appraisal is a process consisting of a series of steps.

 It is the systematic examination of an employee’s strengths and weaknesses in
terms of a job.
 Used in the study. The same approach is adopted for all jobholders so that the
results are comparable. Performance Appraisal is a scientific or objective study.
Formal procedures are
 It is an ongoing or continuous process wherein the evaluations are arranged
periodically according to a definite plan.
 The main purpose of performance appraisal is to secure information necessary for
making objective and correct decisions on employees.
 Appraisals are arranged periodically according to a definite plan.
 Performance evaluation is not job evaluation.

Need for performance appraisal:

 Provide information about performance rank based on which decision regarding

salary fixation, promotion, transfer and demotion are taken.
 To prevent grievances and in disciplinary activities.
 Provide information which helps to counsel the subordinate.

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  Provide feedback information about the level of achievement and behavior of
subordinates.
 Provides information to diagnose deficiency in employee regarding skill, knowledge,
determine training and development need and to prescribe the means for employee’s
growth provides information for correcting placement.

Functions of performance appraisal:

 Identification of the areas of training and development.

 Helps in reward allocation.
 Provide the opportunity to review the strengths and weakness of the
employees.
 It helps in career planning and personnel development.
 Helps in establishing credibility of the selection procedure.
 Act as a motivation factor.
Advantage of performance appraisal:

 It overcomes the communication barrier.

 It will remove the inherent weakness of the appraisal system i.e., subjective
assessment of vague and abstract performance targets, unclear guidelines for appraisal
etc.
 There will be an objective analysis of traits of both the superior and subordinate.
 There will be change to subordinate to express his views even after performance
appraisal.

Essentials of an effective Performance Appraisal:

To be effective, a performance appraisal system should satisfy the following requirements:

(1) Mutual Trust:

An atmosphere of mutual trust and confidence should be created in the organization

before introducing the appraisal system. Such an atmosphere is necessary for frank

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 discussion of appraisal. It also helps to obtain the faith of employees in the appraisal
system.

(2) Clear objectives:

The objectives and uses of performance appraisal should be made clear and specific.
The objectives should be relevant, timely and open. The appraisal system should be
fair so that it beneficial to both the individual employee and the organization. The
system should be adequately and appropriately linked with other subsystems of
human resource management.

(3) Standardization:

Well-defined performance factors and criteria should be developed. These factors as

well as appraisal form, procedures and techniques should be standardized. It will help
to ensure uniformity and comparison of ratings .The appraisal techniques should
measure what they are supposed to measure. These should also be easy to administer
and economical to use. The appraisal system should be performance based and
uniform .Employees should be made fully aware of performance standards and should
be involved in setting the standards.

(4) Training:

Evaluators should be given training in philosophy and techniques of appraisal. They

should be provided with knowledge and skills in documenting appraisals, conducting
post appraisal interviews, rating errors, etc.

(5) Documentation:

The raters should be required to justify their ratings. Documentation will encourage
evaluators to make conscious efforts minimizing personal biases. It will also help to
impart accountability for ratings.

(6) Feedback and participation:

Arrangements should be made to communicate the ratings to both the employees and
the raters. The employees should actively participate in managing performance and in
the ongoing process of evaluation. The superior should play the role of coach and

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 counselor. The overall purpose of appraisal should be developmental rather than
judgmental.

(7) Individual differences:

While designing the appraisal system, individual differences in organizations should

be recognized. Organizations differ in terms of size, nature, needs, and environment.
Therefore, the appraisal system should be tailor-made for the particular organization.
The needs of rates in terms of feedback, mobility, confidence and openness should
also be considered.

(8) Post appraisal interview:

After appraisal an interview with the employee should be arranged .it is necessary to
supply feedback, to know the difficulties under which the employees work and to
identify their training needs. The later should adopt a problem solving approach in the
interview and should provide counseling for improving performance

(9) Review and appeal:

A mechanism for review of ratings should be provided .the review may be made by a
committee consisting of line executives and personnel experts .The committee will
see whether the raters are unusually strict or lenient .it may compare ratings compare
rating with operating results and may requires the raters to give a specific examples of
tangible proof .Differences if any are discussed and dissent is recorded .Provision
must be made for an appeal in case the employee is not satisfied with the ratings.

Uses or importance of Performance Appraisal:

 Performance Appraisal provides valuable information for personnel decisions

such as pay increases, promotions, demotions, transfers and terminations.
 It helps to judge the effectiveness of recruitment, selection, placement and
orientation systems of the organizations.
 It is useful in analyzing training and development needs. It also identifies
individuals with high potential who can be groomed up for higher positions.

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  Performance Appraisal can be used to improve performance through appropriate
feedback, working and counseling to employees. It serves to stimulate and guide
employee’s development.
 Performance Appraisal facilitates human resource planning, career planning and
succession planning.
 It promotes a positive work environment which contributes to productivity.
 A competitive spirit is created and employees are motivated to improve their
performance.
 Systematic Appraisal of performance helps to develop confidence among
employees. Employee grievances can be reduced.

Approaches of performance appraisal:

Performance appraisal is a multistage process involving several activities, which can be
administered using a variety of approaches. Some of these approaches are considered below,
based on Einstein and LeMere-Labonte, 1989; and Monga, 1983:

 Intuitive approach: In this approach, a supervisor or manager judges the

employee based on their perception of the employee’s behavior.
 Self-appraisal approach: Employees evaluates their own performance using a
common format.
 Group Approach: The employee is evaluated by a group of persons.
 Trait Approach: This is the conventional approach. The manager or supervisor
evaluates the employee on the basis of observable dimensions of personality,
such as integrity, honesty, dependability, punctuality, etc.
 Appraisal based on achieved results: In this type of approach, appraisal is
based on concrete, measurable, work achievements judge against fixed targets
or goals set mutually by the subject and the assessor.
 Behavioral method: This method focuses on observed behavior and observable
critical incidents.
Factors Affecting Performance Appraisal:
It is always advisable to make a preliminary survey of the following constraints within which
the employees of an organization are working.

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 1. Environment constraints:

There are several environmental constraints which may be outside the control of a worker
and to ignore this fact in judging his performance would be unjust. For e.g., the quality of
raw material in an organization may deteriorate over a period or the machinery may break
down unexpectedly. As a result both productivity and quality may suffer. But if selection of
materials and maintenance of machinery are done at higher levels in the organization the
performance appraisal of the worker should not be affected.

2. Organizational leadership:

The style of the top leadership of an organization should also be looked into. It is the nature
of leadership at the top which determines to a large extent the loyalty and commitment of
employees to the goals of an organization. Effective top leadership orients and motivates the
entire organization for better performance. Employees at every level become highly
performance conscious. Performance appraisal under such conditions is liked by everybody.
But in opposite conditions it is considered an imposition or structure.

3. Interdependence of sub-system:

Since every organization is a big system composed of a number of interdependent sub-

systems, the success or failure of any one sub-system has got to be interpreted in the context
of all other sub-systems to which it is related. For e.g., the sub-standard output of the
production department may be due to the poor quality of purchases made by the Purchasing
Department or the trouble may be at some higher level sub-system where planning for the
production and purchase departments has been done.

It is precisely because of this interdependence of sub-systems that suggestion is often made to

start performance appraisal from the apex. This leads to more systematic and logical cause-
and-effect tracing of performance at all levels within the organization.

4. Organizational structure:

Initiative, drive and innovation thrive best in a flexible structure. These qualities do not
receive encouragement in a rigid structure. This is because in this type of structure the
authority to approve innovation is often placed several levels above the people who
innovate. This makes the proposal pass from person to person and robs the information

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reaching the ultimate decision makers of much of its logic and understanding. What is
needed is a direct relationship between the doer and the approver. No matter how
strategically wise or strong a boxer is if he has to call New Delhi to clear each punch during
his fight in Udaipur, he is doomed. In rigid structures ponderous planning and controls make
people give up innovating and become resigned and bitter. Rather than beg for the
acceptance of their innovative ideas they take their ideas and creativity home and become
dead wood at work.

Problems / Limitations of Performance Appraisal:

(1) Errors in Rating:

Performance appraisal may not be valid indicators of performance and potential of

employees due to the following types of errors:

a) Halo Effect:
It is the tendency to rate an employee consistently high or low on the basis of overall
impression. One trait of the employee influences the rater’s appraisal on all other
traits.
b) Stereotyping:
This implies forming a mental picture of a person on the basis of his age, sex, caste or
religion. It results in an over-simplified view and blurs the assessment of job
performance.
c) Central tendency:
It means assigning average ratings to all the employees in order to avoid commitment
or involvement. This is adopted because the rater has not to justify or clarify the
average ratings. As a result, the ratings are clustered around the midpoint.
d) Constant error:
Some evaluators tend to be lenient while others are strict in assessing performance.
The tendency may be avoided by holding meeting so that the raters understand what is
required of them
e) Personal bias:
Performance appraisal may become invalid because the rater dislikes an employee.
Such bias may arise on the basi regional or religious beliefs and habits or interpersonal

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 conflicts. Bias may also be the result of time. Recent experience or first impression of
the rater may affect the evaluation

f) Spillover effect:
This arises when past performance affect assessment of present performance. For
instance, recent behavior or performance of an employee may be used to judge him.
This is called regency.

1) Lack of reliability:
Reliability implies stability and consistency in the measurement. Lack of consistency
overtime and among different raters may reduce the reliability of performance
appraisal. Inconsistent use of measuring standards and lack of training in appraisal
techniques may also reduce reliability. Different qualities may not be given proper
weightage. Factors like initiative are highly subjective and cannot be quantified.

2) Incompetence:
Raters may fail to evaluate performance accurately due to lack of knowledge and
experience Post appraisal interview is often handled ineffectively.
3) Negative approach:
Performance appraisal looses most of its value when the focus of management is on
punishment rather than on development of employees.

4) Multiple objectives:
Raters may get confused due to too many objectives or unclear objective of
performance appraisal.

5) Resistance:
Trade unions may resist performance appraisal on the ground that it involves
discrimination among its members. Negative ratings may affect interpersonal relations
and industrial relations particularly when employees/unions do not have faith in the
system of performance appraisal.

Performance Appraisal Process (Elements):

The Performance Appraisal process follows a set pattern and it consists of the
following steps:

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(1)Establishing Performance standards:

The Appraisal process begins with the setting up of criteria to be used for appraising
the performance of employees. The criteria are specified with the help of job analysis
which reveals the contents of a job. This criteria should be clear, objective and in
writing. It should be discussed with the supervisors to ensure that all the relevant
factors have to be included. Where the output can be measured the criteria is clean. If
work performance cannot be measured, the personal characteristics which contribute
to employee performance must be determined. These characteristics include work
quality, honesty, cooperation, team work, job knowledge etc. These standards should
be indicated on the appraisal form. Appraisal form should be carefully designed and
printed. In addition, who is to do the appraisal and how frequently appraisal is to be
done should also be decided.

(2)Communicating the standards:

The performance standards specified in the first step are communicated and explained
to the employees so that they come to know what is expected of them. The standards
should be conveyed to the evaluators. The reactions of the employees to the standard
should be obtained. If necessary the standards may be revised in the light of feedback
obtained from the employees and the evaluators.

(3)Measuring Performance

Once the performance standards are specified and accepted, the next stage is the
measurement of actual performance. This requires choosing the right technique of
measurement, identifying the internal and external factors influencing performance
and collecting information on result achieved. The performance of different
employees should be so measured that it is comparable. What is measured is more
important than how it is measured.

(4)Comparing the actual with the standards:

Actual performance is compared with the predetermined performance standards. Such

comparison will reveal the deviations which may be positive or negative. Positive
deviations occur when the actual performance exceeds the standards. On the other

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 hand, excess of standard performance over the actual performance represent negative
deviation.

(5) Discussing the appraisal:

The result of the appraisal are communicated to and discussed with the employees.
Along with the deviations, the reason behind them are also analyzed and discussed.
Such decisions will enable an employee to know his weaknesses and strengths.
Therefore, he will be motivated to improve himself. The impression the subordinate
received about his performance has an impact on his subsequent performance. The
impact may be positive or negative depending how the appraisal feedback is presented
and discussed with the employee.

(6) Taking corrective actions:

Through mutual discussions with employees, the steps required to improve

performance are identified and initiated. Training, coaching, counseling, etc. is the
example of corrective action that helps to improve performance.

Methods of performance appraisal:

1. Individual evaluation method:

 Confidential report.
 Easy evaluation.
 Critical incident.
 Checklists.
 Graphic rating scales.
 Behaviorally anchored rating scale.
 Forced choice method.
 Management by objectives.

2. Multiple person evaluation method:

 Ranking.
 Paired comparison.

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3.Other method:

 Group appraisal.
 Human resource accounting.
 Assessment centre.
 Field review.

Various Methods of performance appraisal:

a. Graphic Rating Scale :

The graphic rating scale is the simplest and most widely used appraisal
technique. This method is performed by assigning a rating for an employee for
each of several different traits. The rating usually on a scale of 1 to 5, or
descriptive words such as excellent, good, fair, and poor. In most cases, a
numerical value is placed on the various ratings and an overall score is
calculated. This score is then compared to a pay scale to determine the amount
of raise, if any, the employee will receiver supervisor may tend to rate the
employee low in all areas.

b. Alternation Ranking Method :

The alternation ranking method is when the supervisor pools all the employees
together, and picks the best employee, then the worst, and keeps going back and
forth until all the employees are ranked best to worst.

c. Paired Comparison Method:

This method compares each employee to all other employees on how well they
perform each trait. Each employee is put on a chart that represents one trait.
Then one employee is rated better than, or worse than all of the rest of the
employees until a comparison is made of how well that one employee performs
relative to each of the other employees. .

d. Critical Incident Method:

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 In this method, the supervisor keeps a record of uncommonly good and
uncommonly undesirable incidents that happen over the course of the review
period. At the end of the period, the supervisor and employee sit down and
discuss each incident at length so the employee can get an idea of what the
supervisor likes and dislikes about the job that was performed.

d. Management by Objectives Method (MBO):

The Management by Objectives Method involves setting specific goals with each
employee and at the end of the review period the manager and employee review
what progress is made. These goals represent specific and measurable targets,
meaning that these goals cannot be vague.

There are six steps involved in MBO: Setting organizational goals; Setting
departmental goals; Discussing departmental goals; Defining expected results;
Performance reviews; and providing feedback.

f. 360 DEGREE METHOD:

The appraiser may be any person who has through knowledge about the job content,
contents to be appraised, standards of contents who observe the employee while
performing a job. The appraiser should be capable of determine what is more
important and what is relatively less important. He should prepare report and make
judgment without bias. Typical appraisers are, supervisors, peers, subordinate,
employee themselves, users of service and consultants. Performance appraisal by all
these parties is called 360 degree appraisals.

 Components of 360 Degree Appraisal:

The components of 360-degree appraisal are described as under:

1. Self Appraisal
Self-appraisal is a very important part of the 360 degree appraisal system because it gives the
employee absolute freedom to look at his strengths and an opportunity to assess the
performance. Self-appraisal also provides an opportunity to the employee to express his
career moves for the future. Another important area of self-appraisal is the concern for self-

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renewal and development of the employee.
2. Superior Appraisal
Here the focus is to provide constructive feedback on employee’s performance and his
development needs. It is the responsibility of the superior to put carrier aspirations of the
employee in proper perspective.

3. Peer Group Appraisal

Peers play an important role in the life of an employee in the organization. They can also
provide a deep insight into the personality make up, attitude and style of working of the
employee. Peers both from within the department as well as from the other departments
which are directly connected with the working of employee’s department are to be included
in this system. Peer appraisal must strive to get the feedback on

 employee’s working style,

 sensitivity towards others,
 spirit of co-operation and collaboration, and
 Ability to work as a team member.

4. Subordinate’s Appraisal
It signifies two things. Firstly, is a clear expression from the organization that it encourages
openness and that feedback is a two-way process? Secondly, it is a systematic recognition of
the fact than employee’s subordinates do play a vital role in his appraisal. Thus, the purpose
of subordinate’s appraisal is to get first hand assessment of how the subordinates perceive
their superior to be in terms of:

 delegation of authority,
 guiding and training of subordinate,
 motivation of subordinates
 Team building, etc.

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 CHAPTER2:

COMPANY PROFILE ACME: AN OVERVIEW

MANOJKUMARUPADHYAY

Founder, Chairman and Managing

Director

In 2004, Manoj Kumar Upadhyay developed the Power Interface Unit (PIU) to create an
industry in itself. Since then several innovation through external and internal collaborations
shaped the company's future. ACME’s has a proven track record of providing innovative
solutions. ACME has embraced latest innovation like cloud computing and LED based
Network Operations Center among many other IT technologies, some of them first in the
country, to ensure the workforce spread across the length and breadth of the country is
empowered and highly productive.
Innovation is the backbone of ACME’s businesses. Our core philosophy is creation of
Path breaking comprehensive solutions rather than just products. ACME’s success as a
solution provider can be directly attributed to its ability to constantly innovate, invent and
pioneer to develop solutions, processes and products that advance its clients’ growth through
technology that talks to the environment. ACME’s customer focused innovation approach
backed by depth of understanding of the industry and critical business process requirements,
has advanced technologies that open markets, expand opportunities and anticipate customer
needs.
ACME’s engineers and staff work together to deliver state-of-the-art technology enabled
products & solutions. ACME believes that unique challenges in emerging markets and
sunrise industries requires the best minds to work together in order to challenge assumptions,

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generate ideas and deliver timely customer focused solutions. An integrated R&D and
engineering at Gurgaon, into which 2% of revenues are invested, allows the organization the
advantage of timely delivery of solutions to the market. ACME has been awarded as many as
six product patents and one process patent.

 Collaborative Innovation
ACME’s strong emphasis on sourcing best of the best innovations has resulted in,
collaborating with universities, customers and partners, and governments. Through our R&D
and Engineering centre we are deepening these relationships and ensuring that joint
endeavors result in high-impact solutions that meet the objectives of ACME and its partners.
As an organization committed to cutting-edge research and development, ACME has
broadened its horizons with exclusive R&D bases in India, USA & Canada. The organization
is recipient of a steady flow of technology research from its subsidiary companies located in
the USA and Canada – all of which augment its already strong commitment to future-tech
innovation.

 Innovation Focus
ACME’s interests spans a wide range of technical disciplines and touches all businesses.
ACME is applying, internal and external, expertise in these areas to address opportunities that
are crucial to the future of energy industry:
 Deployable Power
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  Hybrid Multi-Source Energy generation and management
 Remote Energy Management: Controllers, Smart meters, Sensors and Decision
Systems.
 Low Cost & Energy Efficient Housing Structures
 Space Cooling and Heating
 Efficient Electrical Power Modules
 Energy Saving Retrofits for Buildings
 Solar PV and Thermal Technologies
 Infrastructure Compatible Fuel: Bio-Mass, Gas etc
 Fuel Cells
ACME is seeking collaboration and proposals in any of the above areas from innovators,
startups and universities.

COMPANY PROFILE
ACME Cleantech Solutions Private Ltd. (ACSPL) provides comprehensive passive
infrastructure solutions to wireless telecom players both in India as well as overseas.
Focusing on innovation and R&D, ACSPL has developed a range of innovative products that
help provide cost-effective, energy-efficient, integrated, passive infrastructure solutions, to
companies.

 Acme believes its principal differentiator is its ability to provide end-to-end solutions
as compared to partial solutions provided by most other competitors. It launched the
"Green Shelter", which is a complete package to fit various environment and
temperature parameters at telecom sites, avoiding the running of backup systems like
diesel generators.
 The Company today enjoys an international presence in several countries around the
world, through its own establishments, channel partners, and associates.
 ACSPL’s pioneering R&D endeavors, aimed at developing a comprehensive range of
cost- and energy-efficient solutions for the wireless telecom sector, have resulted in
the company offering a rich and innovative product portfolio, based on advanced
technologies. Its product range includes telecom shelters that house and protect
telecom transmission equipment; the more advanced and Cooled Shelters; Power
Interface Units that provide complete power management; advanced telecom air
conditioners with filter-less technology for telecom sites; and Thermal Management

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 Systems which insulate shelters, allowing the temperature to remain low for longer
periods during power outages.

ACME Cleantech Solutions Private Ltd. (ACSPL) is one of the foremost providers of
technology solutions to the global wireless telecom industry. The company’s green and
innovative solutions incorporate consultancy, design, manufacture and maintenance of
integrated passive infrastructure, aimed specifically at fulfilling the requirements of the
telecom sector. Innovation through Research and Development (R&D) has enabled ACSPL
to build solutions that are environmentally-friendly, cost-effective and energy-efficient while
providing its clients with enhanced return on investment as well as speedy time to market.
ACSPL stands apart from competition in its ability and expertise, backed by seven years of
experience, in offering comprehensive end-to-end solutions including provision of
enclosures, cooling and electrical solutions, packaged in the unique “Green Shelter” concept.
This concept, pioneered by ACSPL, encompasses various components that fit diverse
environment and temperature parameters at telecom sites, thus reducing dependence on back-
up system such as diesel generators. The company’s solutions are targeted at helping telecom
players conserve time, cost, energy and the environment while boosting their productivity. In
effect, ACSPL offers green, original and efficient solutions that work across the telecom
sector, all the time and every time. ACSPL’s turnkey solutions rely on advanced technology
and flawless service to address the unique needs of the wireless telecom industry. In the
process, the solutions are instrumental in saving time, cost and energy while delivering
optimal performance. ACSPL’s solutions are built to ensure that the company’s clients
benefit from reduced OPEX costs, lower CAPEX investment, and reduced battery back-up
requirements. ACSPL’s pioneering technology works together with its experienced
professionals to offer an unbeatable advantage to the wireless telecom industryplayers.

METHODOLOGY USE IN ACME

'5S' methodology is the name of a workplace organization methodology that uses a list of five
Japanese words which are seiri, seiton, seiso, seiketsu and shitsuke.Transliterated or
translated into English, they all start with the letter S.

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The list describes how items are stored and how the new order is maintained. The decision
making process usually comes from a dialogue about standardization which builds a clear
understanding among employees of how work should be done. It also instills ownership of
the process in each employee.

Phases of 5S
There are 5 primary phases of 5S: sorting, straightening, systematic cleaning, standardizing,
and sustaining.

1. SORTING
Eliminate all unnecessary tools, parts, instructions. Go through all tools, materials, etc., in the
plant and work area. Keep only essential items. Everything else is stored or discarded.

2. STRAIGHTENING OR SETTING IN ORDER

There should be a place for everything and everything should be in its place. The place for
each item should be clearly labeled or demarcated. Items should be arranged in a manner that
promotes efficient work flow. Workers should not have to repetitively bend to access
materials. Each tool, part, supply, piece of equipment, etc. should be kept close to where it
will be used (i.e. straighten the flow path). Seiton is one of the features that distinguish 5S
from "standardized cleanup". This phase can also be referred to as Simplifying.

3. SWEEPING OR SHINING OR CLEANLINESS (SYSTEMATIC

CLEANING)
Keep the workplace tidy and organized. At the end of each shift, clean the work area and be
sure everything is restored to its place. This makes it easy to know what goes where and
ensures that everything is where it belongs. A key point is that maintaining cleanliness should
be part of the daily work - not an occasional activity initiated when things get too messy.

4. STANDARDIZING
Work practices should be consistent and standardized. Everyone should know exactly what
his or her responsibilities are for adhering to the first 3 S's.

5. SUSTAINING THE DISCIPLINE

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Maintain and review standards. Once the previous 4 S's have been established, they become
the new way to operate. Maintain focus on this new way and do not allow a gradual decline
back to the old ways. While thinking about the new way, also be thinking about yet better
ways. When an issue arises such as a suggested improvement, a new way of working, a new
tool or a new output requirement, review the first 4 S's and make changes as appropriate.

It is important to have continuous education about maintaining standards. When there are
changes that affect the 5S program such as new equipment, new products or new work rules,
it is essential to make changes in the standards and provide training. Companies embracing
5S often use posters and signs as a way of educating employees and maintaining standards.

KAIZEN
Kaizen (The German word for "efficiency" or Japanese for "improvement" or "change for the
better") refers to philosophy or practices that focus upon continuous improvement of
processes in manufacturing, engineering, supporting business processes, and management. It
has been applied in healthcare, government, banking, and many other industries. When used
in the business sense and applied to the workplace, kaizen refers to activities that continually
improve all functions, and involves all employees from the CEO to the assembly line
workers. It also applies to processes, such as purchasing and logistics that cross
organizational boundaries into the supply chain. By improving standardized activities and
processes, kaizen aims to eliminate waste. Kaizen was first implemented in several Japanese
businesses after the Second World War, influenced in part by American business and quality
management teachers who visited the country. It has since .spread throughout the world.

COMPANY DESCRIPTION

The ACME Group is a leader in the field of energy management and innovative solutions for
the wireless telecommunications and alternate energy sector. It prides itself as a pioneer in
the development of green technology solutions that environmental friendly, energy efficient,
& cost effective that are capable of delivering a quick return on investment. The ACME
group is a result of the vision and commitment of its founder, Mr. Manoj Kumar Upadhyay.
He sought to realise this goal by providing radically new technology solutions through

25
intensive research and development instead of making incremental changes to existing
technologies. The establishment of ACME Cleantech Solutions Private Limited in 2003 was
the first step towards realisation of this dream.
Today ACME products are installed over 1, 50,000 telecom sites across the globe. ACME
products help Carbon Emission Savings of 2.2 Million Tonnes Per Annum. ACME has
enabled telecom expansion to farthest as well as most interior and hitherto unconnected
regions of India while reducing carbon emissions from the telecom site as well.
The Company today enjoys an international presence, through its own establishments,
channel partners, and associates.

Values
It is important for organizations to have values for which they stand. At ACME, it is these
values which define and guide us.

Customer Centric
We empathize with our 'Customers' and deliver solutions that surpass their expectations.

Innovation
We relentlessly deliver innovative and path-breaking products, processes, services and
business solutions.

Respect
We 'respect' every individual. We promote an open and engaged environment that reflects
empathy and fairness. We reward only performance.

Continuous Learning
We transform all stakeholders (employees, customer, shareholders, partners and community)
through ‘continuous learning’ to enable them to achieve their qualitative and quantitative
goals.

Execution Excellence
We meet our commitments and create global benchmarks in “Execution Excellence” in all
that we do.

 ACME in Solar Power

26
Harnessing the Power of Sun
ACME is a solar power company providing solutions for both thermal and photovoltaic
technologies. Today ACME has developed capabilities for developing, constructing, and
operating MW scale power projects. While Acme owns and operates solar power projects, it
also provides Engineering, Procurement and Construction (EPC) services to other solar
power developers as well.

ACME has pioneered solar power development in India and has commissioned the first solar
thermal power project based on Tower technology in Asia.This state-of-the-art technology is
highly energy efficient. ACME is at the forefront of initiating a dialogue between innovative
technology and the environment for a better today and safer tomorrow.

 SOLAR PHOTOVOLTAIC
 We design and implement photovoltaic solutions for a range of applications. These
include large power projects integrated with grid networks.
 Partnering with the best
 We have a tie-up with First Solar, world's largest solar module manufacturing
company. Our photovoltaic technology is cutting edge and yet economically viable.
 First Solar manufactures solar modules with an advanced semiconductor technology
and provides comprehensive photovoltaic system solutions.
 We are executing our 15MW PV project in Gujarat, with panels supplied by First
Solar.
 Applications
 Grid connected, Off-grid and captive
 Roof top mounted and Street lightening systems
27
  Rural electrification systems between 3 KW - 50 KW requirements
 Lighting for open/protected areas like forest areas and national parks.
 ACME's PV solutions find extensive applications
 Grid-connected power plants ranging from few kwp to hundreds of MW
 Individual homes, Corporate offices and Shopping complexes
 Off-grid power plants
 Centralised and decentralised rural electrification
 Solutions offered
 Pre-feasibility and feasibility studies
 Complete EPC Solutions
 Solar Module Provider
 & M Services

 SOLAR THERMAL
ACME is one of the few companies that offer solar thermal power solutions. With
Concentrated Solar Power (CSP) plants set to become competitive vis-à-vis conventional
power plants in the coming future, we foresee a dominant role for CSP technology in solar
power.

28
  Technology
We develop utility-scale solar thermal projects. This covers pre-feasibility and feasibility
studies, engineering design, manufacturing and procurement, fabrication, construction,
installation, and commissioning; and operations and maintenance.

 Partnering with the best

We have partnered with eSolar, USA, who have developed state-of-the-art modular tower
technology. The technology is scalable and uses tower mounted boilers (known as receivers)
and flat mirrors (known as heliostats) for concentrating solar energy and producing steam for
generating electricity.

ACME is an equity investor in e-Solar and is the only Indian company that has an exclusive
master license for developing utility-scale solar thermal projects in India and neighbouring
countries.ACME's first 2.5 MW solar thermal power plant has been commissioned which will
be scaled up to 10MW at Bikaner, Rajasthan.

 ACME Solar Thermal Technology

 State-of-the-art concentrated solar power tower technology.
 Highly cost-effective and energy-efficient.
 Scalable to 50-100 MW unit size.
 Features
 The solar field design is in multiples of 4 MW and scalable to 50-100 MW.

29
  Double-axis software-driven mirror tracking system.
 Lightweight, small size of around 1 m2 flat mirrors.
 Advantages
 More suitable for high ambient temperature and designed for direct steam generation.
 More efficient electricity generation from steam due to higher temperature of steam
without the use of any intermediate heat transfer medium.
 Less 'parasitic' energy use for plant operation due to reduced movement of thermal
mass.
 Higher capacity utilisation-more MW hours produced per MW of installed power
equipment.
 Lower cost per MW power produced. We can work in the hybrid mode with gas, coal
or biomass for the optimum utilization of plant.

 SOLAR BLOCK
This mainly consists of the solar field of the sun tracking heliostats for reflecting and
concentrating the solar rays and a receiver mounted on a thermal tower along with piping for
steam generation.

30
  Power Block
This mainly consists of a steam turbo generator and its auxiliaries, piping and the electrical
transmission system.

 Applications
 Grid-based solutions and Captive Power (CP) solutions
 Steam-based solutions (for process requirements)
 Solutions
 Complete EPC solutions
 Engineering and solar block provider
 M service
 EPC SERVICES

31
ACME provides Engineering, Procurement and Construction (EPC) services for PV and CSP
power projects. ACME has a highly experienced and dedicated EPC team for end-to-end
project execution.

The integrated services include:

 Engineering design
 Equipment supply and Civil construction
 Erection and commissioning
 Hand-over after successful commissioning
 Operations & Maintenance services - long term & short term
 Our Capabilities
 Turnkey responsibility as an overall contractor for complete power plant
 Design responsibility as an engineering partner
 Supply and erection contractor for solar block
 Facility operations manager

 R&D for technology improvement and cost reduction

We recognize the need to make solar power reliable and affordable for the consumers; and
we constantly strive to achieve this goal. We believe that technology improvement is a
continuous process and we invest considerable time and effort in research and development.

 Manufacturing
We have a world class production unit at Pant Nagar, Uttarakhand. The Pant Nagar plant is
the most modern and one of the largest in India and incorporates state-of-the-art equipment
and a high level of automation.

Some of the major components manufactured:

 Control Room Shelters for PV Invertors

 Module mounting structure
 Middle and End clamps for PV modules (approved by First Solar)
 ACDB and DCDB Panels

32
  PV ROOF TOP / DISTRIBUTED PV
ACME provides design, engineering, procurement and construction of Roof Top Solar PV
Power Plants - from few KW to MW. We have the capability to do pre-feasibility studies of
Roof Top Solar PV Power Plants - both Stand-alone and Grid Connected.

 ACME's photovoltaic solutions find extensive applications for

 Individual homes, corporate offices. Hospitals, Schools, Security Lighting and
Shopping complexes
 Offshore Oil and other applications
 Telecom Towers and Defence applications
 Rural water supply -drinking & irrigation
 Off-grid power plants and Grid-connected power plants ranging from few kwp to
hundreds of MW
 Centralized and decentralized rural electrification

 ACME EDGE
 ACME brings together global technology expertise and local understanding to provide
solar solutions best suited for the region.
 It combines low-impact, pre-fabricated form factor with advanced optics and software
engineering.
 The solutions are cost-effective and competitive irrespective of scale because ACME
has indigenized the components and equipment to bring down the cost per MW.
 ACME has the capability to handle large solar installations, with speed of deployment
and grid impact.

33
 CHAPTER3:

LITERATURE REVIEW

 In 1965, Zadeh [1, 94, and 95] introduces Fuzzy set as a multi-valued logic, that
allows intermediate values to be defined between conventional evaluations like
true/false, yes/no, high/low, etc. Fuzzy theory easily formulates notions like rather tall
or very fast and maintains fuzzy nature of data to a possible extent. In order to apply a
more human-like way of thinking in programming of computers [96] fuzzy theory is
more important.

This dissertation classifies performance appraisal system into three stages.

o First stage is to collect appraisals of an employee from supervisors or end

users in standard form;
o second stage converts linguistic appraisal or objective type of appraisals into
a crisp number
o And finally grades employees according to their appraisals.

So an effective fuzzy performance appraisal system depends on a method to

collect assessments, assessment strategy, converts assessments into useful fuzzy
or crisp information and grade or rank procedures to assess employees and their
effectiveness with respect to organizational expectations.

 This part discusses about various evaluation systems on students performance

in an examination. This idea helps to improve the process of evaluating
employees performance appraisal. Jauch and Glueck [97] developed measures
of research output both objective and subjective in order to identify which one
is effective to evaluate research performance. They discussed relative
effectiveness of different measures to evaluate research performance of
professors.

34
 Biswas [98]discuss about grading method of students performance in an
examination. He introduce Fuzzy Evaluation Method (FEM) in which they use
six objective points following uniform distribution ,to evaluate each answer of
a student. It is a computer based fuzzy approach, where it uses a vector valued
marking system. Later Biswas [98] generalizes FEM and introduces
Generalized Fuzzy Evaluation Method (GFEM) in which they adopt a matrix-
valued marking. GFEM evaluate each answer of a question from four different
aspects and assigns a mark. Even though it observes a students’ knowledge
more objectively, in every stage they determine separate grades for each
question applying a rounding off to the next by grade. This rounding off
results in an error at each step of evaluation and thereby causes a very huge
error in the final total grade.

 Various appraisal systems are available in literature. They differ in purpose,

implementation procedure and output expectations. Chen and Lee [99]
propose two methods for appraisal on objectives. They eliminate drawbacks in
the Biswas [98] method to some extent.
 Cheng and Yang [100] present an approach for evaluation, based on similarity
measure between interval-valued fuzzy sets. But it results in a huge
computation process and an evaluator takes more time to fill in grade sheets.
 Echauz and Vachtsevanos [101] discuss about difficulties associated with
translating a set of crisp scores into letter-grades.
 Mesak and Jauch [102] have developed a model by which college and
university administrators might evaluate performances of major components
of a faculty work: research, teaching, and service. They determine overall
faculty performance as a function of teaching achievements, research
achievements, and service achievements under a sub-criterion related to
those achievements.
 Ellington and Ross [103] propose a teaching evaluation scheme to assess
university teachers. This scheme accounts for a
teachingskillsprofilethatenablesanacademicstafftoundertakeself-rating with
respect to a set of basic criteria for effective performance in teaching and
other activities related to it.

35
 Agrell and Steuer [104] propose a multi-criteria evaluation system for
individual faculty member’s performance, which consists of five criteria
which are research output, teaching output, external service, internal service,
and cost. Their aim is to identify promotional candidates, reveal underlying
problems in managerial consistency, and they suggest categorizations for
faculty groupings

 Meho and Sonnenwald [105] analyze relationship between citation ranking

and peer evaluation to assess faculty research performance with a multi-
criteria approach. They use two sources of peer evaluation data: citation
content analysis and book review content analysis. This study presents many
subjective and objective criteria on the area of research performance and
concludes that citation ranking can provide a valid indicator for comparative
evaluation of senior faculty research performance

 Sproule [106] mentions reporting errors, inadequate sample size, and

accuracy errors of data as reasons of under determination of teaching
performance by student evaluations. Sproule [106] suggests that committees
in universities, whose mission is a justification related to reappointment, pay,
and compensation. Otherwise their decision rule becomes invalid, unreliable,
and flawed

 Paulsen [107] says that purpose of evaluating teaching effectiveness can be

grouped as formative and summative. Formative evaluation tries to provide
informative feedback to assist faculty in improving effectiveness but
summative evaluation tries to help managerial decisions related to pay
incentive, awards, honors, etc.

 Weistroffer et al., [108] propose a structure to model a faculty performance

appraisal that considers both quality and quantity of faculty outputs in the
areas of teaching, scholarship, and service. They identify the criteria related
to measuring quantity of performance outputs and assign quality weights.

 Adnan and Minwar [109] propose a framework for empirical evaluation using
fuzzy logic for performance appraisal systems.

 Huberty [110] consider factors such as instruction skills, research capacity,

service intension, and administration activities for evaluation of a faculty

36
  Jing et al., [111] demonstrate that fuzzy set theory successfully solves
multiple criteria performance appraisal systems.

 Deutsch and Malmborg [112] show that a fuzzy representation is useful to

compare alternative collections of performance measures. They present an
example of performance evaluation of university professors.

 Honetal.,[113]propose a multi-attribute method based on fuzzy weighted

average .

 Moon et al., [114] propose a methodology using fuzzy set theory and
electronic nominal grouping technology for multi-criteria assessment in
group decision making of promotion screening.

 Yee and Chen [115] propose a model to evaluate staff performance of an

Information and Communication Technology (ICT) based on specific
performance appraisal criteria. They use multi factorial evaluation model to
appraise employees.

CHAPTER4:

RESEARCH METHODOLOGY

RESEARCH
The research design of this project is exploratory. Though each research study has its own
specific purpose but the research design of this project on performance appraisal system is
exploratory in nature as the objective is the development of the hypothesis rather than their
testing.

37
METHODOLOGY
Every project work is based on certain methodology, which is a way to systematically solve
the problem or attain its objectives. It is a very important guidelines and lead to completion of
any project work through observation, data collection and data analysis.

“Research methodology comprises of defining & redefining problems, collecting,

organizing & evaluating data, making deduction & researching to conclusions.”

RESEARCH DESIGN
Research design refers to “framework or plan for a study that guides the collection and
analysis of data.” A typical research design of a company basically tries to resolve the
following issues.

a) Determining data collection design

b) Determining data methods
c) Determining data sources
d) Determining primary data collection methods
e) Developing questionnaire
f) Determining sampling plan

(1) EXPLORATIVE RESEARCH DESIGN

Explorative studies are undertaken with a view to know more about the problem.
These studies help in a proper definition of the problem, and development of specific
hypothesis is to be tested later by more conclusive research design. Its basic purpose
is to identify factors underlying a problem and to determine which one of them need
to be future researched by using rigorous conclusive research designs.

(2) CONCLUSIVE RESERCH DESIGN:

Conclusive research studies are more formal in nature and are conducted with view
eliciting more precise information for purpose of making marketing decisions.

These studies can be either

(a) Descriptive
(b) Experimental

Thus, it was mix of both the tools of research design that is, explorative as well as
conclusive.

38
 Sampling plan
Sample size = 50 emlpoyees
Sample are = ACME CLEAN TECH SOLUTION PVT. LTD

RESEARCH OBJECTIVE

 To understand the existing methods of performance appraisal.

 To analyses the performance appraisal system within the organization

RESEARCH INSTRUMENTS USED

 QUESTIONNAIRRE:

The term questionnaire usually refers to a self admistered processes whereby

he respondent himself read the question and records without the assistance of
an interviewer.

 INTERVIEW:

The interview method of collection data involves presentation of oral-verba

stimuli and reply in terms of oral-verbal response.

SAMPLE SIZE
The sample size for this study is 50 respondents

DATA COLLECTION
This is study primary data were collected through personal interview using questionnaire.
The questionnaire was administered to fifty emlpoyees of ACME CLEAN TECH
SOLUTION PVT. LTD., RUDRAPUR

SECONDARY DATA
Secondary data for this study was collected from.

39
  Previously published records, statistics, research report and documents.
 Books and websites.
QUESTIONNAIRE
In this study the researcher has used a questionnaire consisting of 10 multiple choice based
questions

ANALYTICAL TOOLS USED

The term analysis refers to the computation of certain measures belong with searching for
pattern of relationship that exists among data group. Analysis is essential for a scientific
study and for ensuring that we have all relevant data for making contemplated comparison.
Therefore, I have TABULATION, GRAPHS &CHARTS in my project.

LIMITATION

 This is subjected to the basis and prejudices of the respondents; hence 100% of
accuracy cannot be assured.
 The research was carried out in a short span of time, where in the research could not
widen the study
 The period of study was too short. So it was not possible to collect the relevant
information with in that period.
 The finding is based on the answers given by the employees, so any or bias may be
affecting the validity of the find.

CHAPTER5:

DATA ANALYSIS a

1. Employees aware of performance appraisal.

OPTION NO. OF REPONDENT PERCENTAGE %
YES 49 98%
NO 1 2%
111aaaaaaaa1111111aaarea

40
 50
45
40
35
30 percentage
25 no. of resppondent
20
15
10
5
0
yes no

INTERPRETATION:

Major of employees are aware of performance appraisal and few employees are not aware of
performance appraisal.

ANALYSIS:

98% of employees are aware of performance appraisal because they got their experience with
the performance appraisal and improved a lot and 2% of emlpoyees are not aware of it
because they are new in organization.

2. Employees satisfied with the existing performance appraisal.

OPTION NO. OF RESPONDENT PERCENTAGE %

Highly satisfied 29 54%
satisfied 18 36%
Just satisfied 4 8%
disattisfied 1 2%

41
 no. of respondent

highly satisfied
satisfied
just satisfied
dissatisfied

INTERPRETATION:

54% of the employees are highly satisfied with the existing performance appraisal in the
organization only 2% are not satisfied

ANALYSIS:

54% of employees are highly satisfied, so by this we can know how good the appraisal
system is in the organization. 2% of employees are not satisfied because they may be new to
the organization.

3. Employees performance improves after performance appraisal

OPTION NO. OF RESPONDENT PERCENTAGE%

Strongly agree 22 44%
agree 20 40%
neutral 8 16%
disagree 0 0%

42
 25

20

15
percentage
no. of respondent
10

0
strongly agree agree neutral disagree

INTERPRETATION:

44% of employees are strongly agree that performance improves after performance appraisal
in the organization. 16% of employees are in neutral stage.

ANANLYSIS:

44% of employees are strongly agree that performance appraisal improves after performance
appraisal because most of the employees believe that the performance appraisal improves all
the aspects in all the areas, it motivate the employees to find out their mistake and to correct
them and 16% are neutral may be they are new to organization.

4. Performance improves motivation and job satisfaction

OPTION NO. OF RESPONDENT PERCENTAGE%

Strongly agree 25 50%
Agree 21 42%
Neutral 4 8%
Disagree 0 0%

43
 30

25

20

percentage
15
no. respondent

10

0
strongly agree agree neutral disagree

INTERPRETATION:

50% of employees are strongly agreed that performance appraisal improves motivation and
job satisfaction in the organization. Only 8% are in neutral stage.

ANALYSIS:

50% of employees believe that performance appraisal improves motivation and job
satisfaction because their performance is improved in the organization. 8% of employees are
in neutral stage because they are new to organization

5. According to you does performance appraisal helps employees in improving.

OPTION NO.OF RESPONDENT PERCENTAGE%

promotion 46 92%
Job content 1 2%
Enrich your job 1 2%
Self actualization 2 4%

44
 no. of respondent

promotion
job content
enrich your job
self actualization

Interpretation:

Most of the employees feel that the appraisal has helped them in developing their
performance and few employees feels that performance appraisal has helped them in
improving job content and enrich their job.

ANALYSIS:

94% of employees believe that performance appraisal develops once performance appraisal
in a particular organization because they got their personal experience where with this
performance appraisal they improved a lot in their performance where the performance is
given much value in an organization.

6. Effect of poor performance appraisal system

OPTION NO. OF TRESPONDENT PERCENTAGE%

De- motivation 35 70%
resignation 0 0%
Ineffective teamwork 15 30%

45
 40

35

30

25
percentage
20
no. of respondent
15

10

0
de-motivation resignation ineffective
teamwork

INTERPRETATION:

70% of employees are demotivated with the effect of poor performance appraisal and 30% of
employees are affected by ineffective team work in the organizational.

ANALYSIS:

It can be seen from result that most of the employees get demotivated because of a poorly
conducted appraisal. To some extent employees don’t coordinate with their team member.

7. Appraisal system of your organization facilities career growth & learning

OPTION NO. OF RESPONDENT PERCENTAGE%

Yes 42 84%
No 8 16%

46
 45

40

35

30
PERCENTAGE
25
NO. OF RESPONDENT
20

15

10

0
YES NO

INTERPRETATION:

84% of employees feel that organization facilitate career growth& learning due to
performance appraisal, where as 16% of employees feel that organization does not provide
growth & learning of employees.

ANALYSIS:

Majority of employees agree that organization facilitate career growth & learning because
they feel that performance appraisal process helps them in better assessment of individual
and many feel that they have changed there thinking mind set just because of performance
appraisal. And employees feel it doesn’t helps because they may be new to the organization
and they have to gain experience about it.

8. Employees are aware of 360-degree appraisal

OPTION NO. OF RESPONDENT PERCENTAGE%

Yes 11 22%
No 39 78%

47
 40

35

30

25
PERCENTAGE
20 NO. OF RESONDENT

15

10

0
YES NO

INTERPRETATION:

78% of employees are not aware of 360-degree appraisal and 22% of employees are aware of
360-degree appraisal in the organization.

ANALYSIS:

Few employees are aware of 360-degree appraisal and majority of the employees are not
aware of 360-degree appraisal because they are not completely aware of 360-degree appraisal
system in the organization and some are new in the organization.

9. Method of performance appraisal do organization use

OPTION NO. OF FRESPOMDENT PERCENTAGE%

Ranking method 1 2%
Grading method 47 94%
Graphic scale method 1 2%
Essay method 1 2%

48
 50
45
40
35
30
percentage
25
no. of respondent
20
15
10
5
0
ranking grading graphic essay method
method method method

INTERPRETATION:

From above table grading method has been followed in organization. From this we cam know
that grading method is often used in many organizations, and how important it is , hence its
mostly used method when compared with others.

ANANLYSIS:

94% of employees are appraised by grading method because they cannot be compared with
others and degraded, grading method just tell how is there work by giving grades and ranking
method graphics method and essay method are the method where most of the employees
avoided because they find grading method more comfortable, where in ranking method the
employees are compared with others and they give where most of the employees don’t like it.

10. Performance appraisal is made in the organization

OPTION NO. OF FRESPOMDENT PERCENTAGE%

Once in 6th month 4 8%
Once in year 44 88%
Once in 2 year 1 2%
Occasionally 1 2%

49
 45

40

35

30

25 PERCENTAGE
20 NO. OF RESONDENT
15

10

0
once in 6th once in year once in 2 year occassionally
month

INTERPRETATION

88% employees are satisfied with appraisal system evaluated once in a year , even appraising
employees once in a year costs less for a company , and 4% of the employees differ to the
above system.

ANALYSIS:

88% of employees are satisfied with apprising once in a year because they find time for
improving their skills after the review by their superiors and they require sufficient time to
put the suggestions in practice. From company’s point of view it saves employees time and
energy.

50
 CHAPTER6:

FINDING&CONCLUSION& SUGGESTION

 98% of employees had respondent in favor of that they are aware of performance
appraisal
And 2% had respondent that they are not aware of performance appraisal.
 54% of employees are highly satisfied with the existing performance appraisal and
know how well the appraisal system in the organization.
 44% of employees are strongly agreed that performance improves after performance
because it motivates the employees to find out their mistake and to correct them.
 50% of employees believe that performance appraisal improves motivation and job
satisfaction because their performance improved in the organization.
 Most of the employees feel that the appraisal has helped them in developing their
performance and few feels that performance appraisal has helped them in improving
job content and enrich their job.
 It can be seen that most of the employees get demotivated because of a poorly
conducted appraisal. To some extent employees don’t coordinate with their team
members.
 Majority of employees agree that organization facilitate career growth & learning
because they have changed their thinking mind set just because of performance
appraisal.
 Few employees are aware of 360-degree and majority of employees are not
completely aware of 360-degree.

CONCLUSION:

 To encourage the technical skill and workplace behavior of the employees.

 To create healthy inter competition between staff members.
 To retain the skilled and loyal employees of the company.
 Employees were satisfied and there skills were enhanced after performance appraisal

SUGGESTIONS

The purpose of the performance appraisal is to focus on the employee’s goals, objectives, and
professional development. Recent trends are to flatten organization reflecting empowered
people and teams that know how to apply principles and identify core processes in many
different circumstances and situations. On account of this my recommendations \suggestion
to the company are:

51
1. The 2% of respondent responses shows that they are not aware about performance
appraisal. They should be aware about that how they can take promotion and greater
responsibility through better performance
2. New performance appraisal technique such as 360-degree performance appraisal
system should be used
3. Performance appraisal should be viewed as a process, and not simply as the creation
of ubiquitous standards.
4. When employees are working on projects, there must be an appraisal after each
assignment has been completed.
5. Rest 50% employees should also be motivated so that there performance can be
appraised.
6. Team coordination skills of the employees should be increased so that there
performance appraisal can be done.
7. Employees must be told about the existing appraisal system.

52
 ANNEXURE

Q1. Are you aware of performance appraisal?

a) Yes b) no

Q2.Are you satisfied with the existing performance appraisal?

a) Highly satisfied b) satisfied

c) Just satisfied d) dissatisfied

Q3.Do you think your performance improves after performance appraisal?

a) Agree b) partially agree

c) Neutral d) disagree

Q4.Do you think performance appraisal improves motivation and job satisfaction?

a) Strongly agree b) agree

c) Neutral d) disagree

Q5.What according to you does performance appraisal helps employees in improving?

a) Promotion b) job content

c) Enrich your job d) self actualization

Q6.What do you think what affect the poor performance appraisal system?

a) De-motivation b) resignation c) Ineffective teamwork

Q7. Does appraisal system of your organization facilities career growth & learning

a) Yes b) No

Q8. Do Employees are aware of 360-degree appraisal?

a) Yes b) No

Q9. Which method of performance appraisal does organization use?

a) Ranking method b) grading method

c) Graphic scale method d) essay method

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Q10. When performance appraisal is made in the organization?

a) Once in 6th month b)once in year

c) Once in 2year d) occasionally

BIBLOGRAPHY

www.acme.in

http://www.indianindustryprofiles.com

http://www.wikipedia.com/performanceappraisal

www.scribd.com

Books:

 HRM- C.B. memorial and S.V Gankar- Himalayan publishing house.

 Essential of HRM and industrial relations- P. Subba Rao.
 Donald l. Kirkpatrick, 2006, improving employees performance through appraisal
and coaching
 Richard rudman2003 performance planning and review.

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