SUMMER TRAINING REPORT SUBMITTED TOWARDS THE

PARTIAL

FULFILLMENT OF POST GRADUATE DEGREE IN

MANAGEMENT

PERFORMANCE APPRAISAL SYSTEM

With special reference to

(DCM SHRIRAM FERTILIZERS & CHEMICALS

LTD.)

SUBMITTED BY:
Name- RITESH MEENA
M.B.A.-(2009-11)
Enrollment No-A30101909110
INDUSTRY GUIDE:
FACULTY GUIDE
 AMITY GLOBAL BUSINESS SCHOOL,
NOIDA

AMITY UNIVERSITY-UTTAR
PRADESH

ACKNOWLEDGEMENT

The project title “Performance Appraisal System” has been conducted at

DCM Shriram Fertilizers & Chemicals Ltd. I have completed this project,
based on the primary research, under the guidance of Mr.Shashank
Tyagi( Industry Guide).

I owe enormous intellectual depth towards my guides Ma’am Aparajita

Dasgupta Amist Faculty Guide; A.G.B.S. Noida has augmented my knowledge
in the field of “Performance Appraisal System”. They have helped me learn
about the process and gave me valuable insight into the subject matter.

I am obliged to Mr. Shashank Tyagi(Asst. HR Manager, DCM Shriram

Fertilizers & Chemicals Ltd.) for corporation during the project. My increased
spectrum of knowledge in this field is the result of his constant supervision
and direction that has helped me to absorb relevant and high quality
information.

I would like to thank all the respondents without whose cooperation my

study/project would not have been completed.

Last but not least I feel indebted to all those persons and organizations
whose/which have provided help directly or indirectly in successful
completion of this study.

Date:

RITESH MEENA
MBA (3RD SEM)

Enr
ollment No- A30101909110

TABLE OF CONTENTS

CHAPTER NO. SUBJECT

PAGE NO.
1.0 Executive Summary

2.0 Introductions

a. Objectives( for gaining maximum experience and

exposures in the company)

3.0 Industry Profile

4.0

5.0 Company Profile

6.0
5.0 Data

Collection

Primary Data

Secondary Data

6.0 Issues and challenges facing the organization

7.0 Findings & Analysis

8.0 Recommendations

9.0 Bibliography

10.0 Annexures

a. Tables

b. Graphs

c. Forms

11.0 Case Study

12.0 Synopsis of the project

CHAPTER 1
 EXECUTIVE SUMMARY
This project is a seminal work to study the Performance Appraisal in a
Manufacturing sector.
DCM Shriram Fertilizers & Chemicals Ltd. Started its operation in 1882 and
since it is marching towards glory and has many laurels to its name. My
training period in this company has given me a lot of confidence and
exposures to what corporate world is. The project given to me is
“Performance Appraisal System”

The aim of the project is to determine the effectiveness of Performance

Appraisal Policy in DCM Shriram Fertilizers & Chemicals Ltd in comparative
with other companies (BSNL, O.N.G.C., WIPRO, Maruti Udhyog, and TCS)

We started the research by circulating questionnaires, fixing appointments

and collecting secondary data through various sources like Internet
(company’s website), books etc. Filled questionnaires which we received
from the organizations which gave a transparent view of how companies
perform and do performance appraisal, what are the criteria for performance
appraisal and what employees feel about the performance appraisal system
prevalent in the company. We took various steps to collect the feedback from
employees and the management, like interviews and questionnaires. We talk
about the performance appraisal system and how it is implemented. And it
was learnt that the companies do performance appraisal of their employees
based on their performance & the amount of hard work put in by them in
their day to day work.

It was also learnt that the feedback mechanism and Self-Assessment

are very essential and fruitful for the organization but the only constraint is
that the appraisal cycle is yearly and the appraisal done is for a very few
employees.

Having good performance appraisal system is just the key to success; it

helps in reducing the attrition rate and motivates the employees to work hard
and give their best. It is found that company DCM SFC is doing very well by
following Self-Assessment performance appraisal system.

CHAPTER 2
 INTRODUCTION
Human Resource (or personnel) management, in the sense of getting things
done through people, is an essential part of every manager’s responsibility,
but many organizations find it advantageous to establish a specialist division
to provide an expert service dedicated to ensuring that the human resource
function is performed efficiently.

“People are our most valuable assets ‘’, is a

cliché, which no member of any senior management team would disagree
with. Yet, the reality for many organizations is that their people remain
under utilized.

Performance Appraisal is the process of

assessing the performance and progress of an employee on a given job and
his/ their potentials for future development .It consists of all formal
procedures used in the working organizations to evaluate personalities,
contribution and potential of employees.
 PERFORMANCE APPRAISAL:

History:

The history of performance appraisal is quite brief. Its roots in the early 20th
century can be traced to Taylor's pioneering Time and Motion studies. But
this is not very helpful, for the same may be said about almost everything in
the field of modern human resources management.

As a distinct and formal management procedure used in the evaluation of

work performance, appraisal really dates from the time of the Second World
War - not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the
scale of things historical, it might well lay claim to being the world's second
oldest profession!

There is"... a basic human tendency to make judgments about those one is
working with, as well as about oneself." Appraisal, it seems, is both inevitable
and universal. In the absence of a carefully structured system of appraisal,
people will tend to judge the work performance of others, including
subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and
legal problems in the workplace. Without a structured appraisal system,
there is little chance of ensuring that the

Judgments made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income

justification. That is, appraisal was used to decide whether or not the salary
or wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employee's

performance was found to be less than ideal, a cut in pay would follow. On
the other hand, if their performance was better than the supervisor expected,
a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of

appraisal. If was felt that a cut in pay, or a rise, should provide the only
required impetus for an employee to either improve or continue to perform
well.

Sometimes this basic system succeeded in getting the results that were
intended; but more often than not, it failed.

For example, early motivational researchers were aware that different people
with roughly equal work abilities could be paid the same amount of money
and yet have quite different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were

important, yes; but they were not the only element that had an impact on
employee performance. It was found that other issues, such as morale and
self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively

rejected. In the 1950s in the United States, the potential usefulness of
appraisal as tool for motivation and development was gradually recognized.
The general model of performance appraisal, as it is known today,
began from that time.

DEFINATION AND CONCEPT:

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 employee’s 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.

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 management’s interest in
the progress of the employees.
PROJECT TITLE- Analysis and review of Performance Appraisal system at
SFC, Kota

PROJECT OBJECTIVE- To identify & review in detail the Performance

Appraisal Process and all the others specific tools used in this regard at SFC
Kota

The project aims analysing and reviewing of Performance Appraisal Process

System at SFC Kota.

The objective of this training is to provide a chance to the student to

have an insight in the practical working environment in the industry.

OBJECTIVE
1. To know the various types of performance appraisal methods being
used at SFC Kota

2. To know which appraisal system is being mostly used in SFC Kota

3. To know whether the performance appraisal system of SFC Kota.

Increase the productivity of employee or not.

4. To provide feedback to the employees regarding their past performance.

5. Provide information to assist in the other personal decisions in the organization.

6. Provide clarity of the expectations and responsibilities of the functions to be performed by

the employees.

7. To judge the effectiveness of the other human resource functions of the organization such
as recruitment, selection, training and development

8. To reduce the grievances of the employees

 DELIVERABLES OF THE PROJECT

1. To identify and map the process used for Performance Appraisal of

employee at SFC Kota

2. To identify the role of individual in the Performance Appraisal

System.

3. To identify the information which is used to measure the

performance of a employee.

4. To recognize the variables which are used to appraise the

performance of a employee

5. To measure the methods which is used to be in Performance

Appraisal System

METHODOLOGY/ APPROACH TO THE PROJECT

1. To map & identify the process of performance appraisal at SFC Kota

2. To analyze in detail the sub-processes of tools used for the purpose of

appraisals.

a. The appraisal forms

b. The process of filling up the appraisal form.

c. The process of giving feedback.

3. To analyze the role of the appraiser, appraise and the HR in the

process.
4. To benchmark the existing process with the industry standards & best
practices.

5. To suggest improvement in the existing system & the tools used in the
appraisal process.

CHAPTER 3
 INDUSTRY PROFILE
Manufacturing sector is the backbone of any economy. It fuels growth,
productivity, employment, and strengthens agriculture and service sectors.
Astronomical growth in worldwide distribution systems and IT, coupled with
opening of trade barriers, has led to stupendous growth of global
manufacturing networks, designed to take advantage of low-waged yet
efficient work force of India. ' Indian Manufacturing ' sector is broadly divided
into - Capital Goods &Engineering, Chemicals, Petroleum, Chemicals &
Fertilizers, Packaging, Consumer non-Durables, Electronics, IT Hardware &
peripherals, Gems & Jewelry, Leather & Leather Products, Mining, Steel &
non-Ferrous Metals, Textiles & Apparels and Water Equipment.

The overall manufacturing growth rate is projected to rise to 9.5% in 2008-

09, after declining to 8.8% in the 2007-08 from a high of 12.3% attained in
the previous year (2006-07). Over the past year or two there has been
mounting confidence about the new found strength of India's manufacturing
sector and its long-term potential. The recently approved 11th Five Year Plan
expects manufacturing to grow at 10-11 per cent a year during the period
2007-12.Of the 100 sectors surveyed, as many as 67 sectors are poised to
achieve ‘excellent’ to ‘high’ growth rates ranging 10 to 20 per cent or more.
While 12 sectors project excellent growth of more then 20 per cent or more,
55 sectors foresee high growth of 10 to 20 per cent, 32 sectors expect
moderate growth of up to 10 per cent and 1 sector has projected a negative
growth during 2008-09.

FERTILIZER SECTOR

The production of fertilizers during 2007-08 including urea and phosphatic,

both by public as well as private sector, is around 6.2 million metric tons. The
installed capacity of urea is 4.2 million tons and DAP is 0.650 million tons per
annum. The demand of DAP in the country is around 1.3-1.5 million tons per
annum, whereas, the consumption of Urea is around 5.2 million tons as
against production of around 4.8 million tons. Fauji Fertilizer Bin Qasim
Limited is the only fertilizer plant which is producing DAP in the country. The
national average retail price of Urea and DAP is Rs. 761.00 and Rs. 3084 per
50 Kg bag respectively. All fertilizers are importable at zero rate of duty. The
local production of fertilizer is not sufficient to meet the local demand;
therefore, substantive quantity of fertilizer has to be imported every year.
The Government has also provided various incentives under Fertilizer Policy,
2001 to encourage the fertilizer production in the country including following:

-The Government is providing feed stock gas at concessionary rates to the

fertilizer plants for production of Urea. Rock Phosphate and Phosphoric Acid
imported by manufacturers of fertilizer are importable free of customs
duty.

CHEMICAL SECTOR

The chemical industry comprises the companies that produce industrial

chemicals. It is central to modern world economy, converting raw materials
(oil, natural gas, air, water, metals, and minerals) into more than 70,000
different products.

The chemical industry is a key contributor to the world economy. It is a

knowledge based industry with significant investment in R&D. The industry
supplies to virtually all sectors of the economy and produce more than
70,000 products. In terms of consumptions, the chemical industry is its own
largest customer and accounts for approximately 33 percent of the
consumption. In most cases, Basic chemical undergo several processing
stages to be converted into downstream chemicals. These in turn are used
for industrial applications, agriculture, or directly for consumer markets.

CHAPTER 4
 COMPANY PROFILE

DSCL- An Overview

Founded by Sir Shriram in 1889 (as DCM limited), today DCM Shriram Consolidated
Limited (DSCL) is a large scale industry with turnover of Rs. 3523 crores.

DSCL has manufacturing facilities at Kota (Rajasthan), Bharuch (Gujarat), and

Ajbapur, Rupapur, Hariawan and Loni (UP).The hybrid seed operations are at
Hyderabad (India), Vietnam, Philippines and Thailand. The Company also has its
window fabrication units at Bhiwadi, Bangalore, Mumbai, Hyderabad and Chennai.

DSCL has strong brand equity reflective of credibility, ethical values and consistent
high quality product image. With over 30 years of experience in managing large
scale process industries with sustained high level of performance, DSCL meets the
needs of a wide range of customers from farmers to industrial users, from house
builders to business owners. Fostering enduring relationships is at the core of
DSCL's business philosophy - with vendors, business partners, and customers and
within the organization between employees.

The company operates in a range of energy intensive businesses in the Chloro-Vinyl

and agri-sectors. The company is always seeking to produce multiple downstream
products in a manner that it derives the maximum earnings accrual from every unit
of power that it generates in a sustainable way and in varied market conditions. It
follows this model across its manufacturing operations at different locations with an
endeavor to add value while it curtails operating costs. Such an approach allows it to
direct resources and inputs to various downstream businesses in the most efficient
manner and also become a cost competitive producer in our chosen area.

In a major IT initiative the company has networked all its locations on a Wide Area
Network (WAN) and implemented SAP R/3 Enterprise Resource Package (ERP) across
the Company. The key IT enabling initiatives are Customer Relationship
Management (CRM) and Business Information Warehousing (BIW).

The Hariyali division of the company was awarded “ACE-Best Customer Award” for
successful implementation of the SAP IS retail package.

All its main line locations/products have ISO 9000, 14000 certification and OHSAS
18001: 1999 system of Occupational Health and Safety certifications. The Kota
complex of the company was given 5 Star rating for last 4 years & instituted in 2006
& 2008 with the prestigious “ Sword of Honor” by British Safety Council for
implementing and practicing the best safety standards.

In an increasingly global business environment, DSCL's vision is to strengthen its

agri and energy intensive business while ramping up "Value Added" & "Knowledge
based" products & services in the areas of its operations. Accordingly, DSCL is
expanding its rural retail initiative Hariyali Kisan Bazaar to create a rural hub that
makes agri and consumer products (of all manufacturers) and agri services available
to farmers in a fair, transparent and convenient format.

The company had launched value added UPVC window system business under the
Fenesta TM brand in India. This product has very attractive design and insulation
attributes that makes it strong business proposition as the concept is gaining
acceptability.

DSCL strongly believes in socially responsible business activity. DSCL has made
significant contribution to the society in the fields of Environment, Health Care,
Family Planning, Education, Cultural Heritage, Rural Development and in promoting.
For its social contributions DSCL's Chlor-Alkali facility at Bharuch has been
recognized with a SA 8000:2001 certification by RINA (Registro Italiano Navale),
making it amongst the few companies in India to get this recognition.

Core Values & Beliefs

DSCL's core values and beliefs are a reflection of its commitment to build a world
class, learning organization, striving for excellence in all its endeavors.
Customer Focus:

 Be sensitive to the needs of the customer; develop superior customer insight

 Commitment to surpass expectations and deliver superior value

Innovation and Excellence:

 Strive to think differently and promote creativity

 Make continuous improvement a way of life; drive excellence

People Development:

 Continuously improve and upgrade the skills and competencies of our people
 Support people to realize their potential

Team work:

 Work closely as a cohesive, well-knit team

 Inculcate a spirit of openness and collaboration

Relationships and Human Dignity:

 Value people and partnerships

 Nurture understanding, compassion, trust and respect in all relationships

Social Responsibility and Ethics:

  Be a socially responsible corporate, addressing the needs of the community
and environment
 Conduct business ethically
 Maintain highest standards of personal integrity

The main business units of DSCL now comprise of:

Energy Intensive Businesses:

 Chemicals
 Calcium Carbide & PVC Resin
 Cement

Value Added Businesses:

 Fenesta Building Systems

 PVC Compounds
 Energy Services(ESCO)

Agri Businesses:

 Sugar
 Urea
 Agri Inputs
 Shriram Bio seeds
 Hariyali Kissan Bazaar
Other Businesses

Textiles
CHAPTER 5
QUESTIONNAIRES TO VICE PRESIDENT R.C.MODI
RELATED TO PERFORMANCE APPRAISAL PROCESS
IN DCM SRIRAM FERTILIZERS & CHEMICALS LTD.

1. What is the purpose of performance appraisal?

Answer- 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.

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.

•Provide information to assist in the HR decisions like promotions, transfers

etc.

•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.

•Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.
According to a recent survey, the percentage of organizations (out of the
total organizations surveyed i.e. 50) using performance appraisal for the
various purposes are as shown in the diagram below:

The most significant reasons of using Performance appraisal are:

• Making payroll and compensation decisions – 80%

• Training and development needs – 71%

• Identifying the gaps in desired and actual performance and its cause –
76%

• Deciding future goals and course of action – 42%

• Promotions, demotions and transfers – 49%

• Other purposes – 6% (including job analysis and providing superior

support, assistance and counseling)
 2. How you analyze the performance of an individual in the
organizations ?

Answer- By Essay evaluation, under this method the rater is asked to

express the strong a well as weak points of the employee’s behavior.
This technique is normally used with a combination of the graphic rating
scale because the rater can elaborately present the scale by
substantiating an explanation for his rating .While preparing the essay on
the employee, the rater considers the following factors;-

(1) Job knowledge and the potential of the employee;

(2) Employee understands of the company’s programmes, policies,

objectives, etc.

(3) The employee’s relations with co-workers and supervisors;

(4) The employee’s general planning, organising and controlling ability;

(5) The attitudes and perceptions of the employee, in general.

3. What are the parameters used in performance appraisal

process?

Answer- The parameters which is used for Performance Appraisal

process is Competency Factors are following as:-

1. Professionals Knowledge and its Application

2. Analytical ability and conceptual skill

3. Managerial Skills

4. Inter-personal skills

5 Quality, safety, and environmental awareness

6. Innovativeness and creativity

 7. Leadership

8. Emotional Stability

9. Achievement Orientation

10. Team Work

11. Commitment

12. Personal Integrity

13. Attitude-Exhibits enthusiasm and cooperativeness on the job.

14. Dependability-Conscientious, Thorough, reliable, accurate, with

respect to attendance, reliefs, etc.

4. How you identify the area of improvement of employee which

is help to increase the skills in the performance appraisal
process?

Answer- The area of improvement is basically depends on feedback.

The employee gets useful feedback information about how effectively
and efficiently he is able to discharge the assigned duties. It also gives
the opportunity to the employee to explain his views about the ratings,
standards, rating methods, internal and external causes for low level of
performance. The appraiser gets a chance to explain the employee his
ratings, the traits and the behaviors he has to taken into account for
appraisal, etc. He can utilize this opportunity to offer constructive
suggestions, and help, guide and coach the employee for his
 advancement. The post appraisal interview helps both parties to review
standards, and set new standards based on the experience gained.

5. What is the role of demonstrated performance in Performance

appraisal process of an employee?

Answer- In the demonstrated performance we have to cover day to

day performance. Such as efficiency & cost norms, quality, time
management, projects, report handled in addition to his routine
function etc.

After measure some major competency factors of an individual we

have to measure some other factors in demonstrated performance .By
this we have to judge the appraise level of performance. From this
method we have to analyze A to Z performance of an appraiser. To
measure performance of an employee it is required to measure all the
hidden factors of an employee.

6. How do you visualize actual performance in the company?

Answer- After the performance standards are set and accepted, the
next step is to measure actual performance .This requires the use of
 dependable performance measure, the ratings used to evaluate
performance. Performance measures – to be helpful – must be easy to
use reliable, and report on the critical behaviors that determine
performance .For common sources of information which are generally
used by managers regarding how to measure actual performance and
personal observation , statistical reports, oral reports and written
reports.

7. What is the various methods used in Performance Appraisal

System at DCM SFC?

Answer- The various methods are following as:-

1. Essay evaluation: Under this method, the rater is asked to

express the strong as well as weak points of the employee’s behavior. This
technique is normally used with a combination of the graphic rating scale
because the rater can elaborately present the scale by substantiating an
explanation for his rating. While preparing the essay on the employee, the
rater considers the following factors:

(i) Job knowledge and potential of the employee;

(ii) Employee’s understanding of the company’s programmes, policies,

objectives, etc.;

(iii) The employee’s relations with co-workers and superiors;

(iv) The employee’s general planning, organizing and controlling ability;

(v) The attitudes and perceptions of the employee, in general.

Essay evaluation is a non-quantitative technique. This method is

advantageous in at least one sense, i.e., the essay provides a good deal of
information about the employee and also reveals
More about the evaluator. The essay evaluation method however, suffers
from the following limitations:

 It is highly subjective; the supervisor may write a biased essay. The

employees who are sycophants will be evaluated more favorably then
other employees.
 Some evaluators may be poor in writing essays on employee
performance. Others may be superficial in explanation and use flowery
language which may not reflect the actual performance of the
employee. It is very difficult to find effective writers nowadays.
 The appraiser is required to find time to prepare the essay. A busy
appraiser may write the essay hurriedly without properly assessing the
actual performance of the worker. On the other hand, appraiser takes a
long time, this becomes uneconomical from the view point of the firm,
because the time of the evaluator (supervisor) is costly.

2. Graphic rating scale: Perhaps the most commonly used

method of performance evaluation is the graphic rating scale. Of
course, it is also one of the oldest methods of evaluation in use. Under
this method, a printed form, as shown below, is used to evaluate the
performance of an employee. A variety of traits may be used in these
types of rating devices, the most common being the quantity and
quality of work. The rating scales can also be adapted by including
traits that the company considers important for effectiveness on the
job. A model of a graphic rating scale is given below.

Table: Typical Graphic Rating Scale

Employee Name................... Job title .................

Department ......................... Rate ...............

Data..................................
Quantity of work: Unsatisfact Fair Satisfact Goo Outstandi
Volume of work under ory ory d ng
normal working
conditions

Quality of work:
Neatness,
thoroughness and
accuracy of work
Knowledge of job

A clear understanding
of the factors
connected with the job

Attitude: Exhibits
enthusiasm and
cooperativeness on
the job

Dependability:
Conscientious,
thorough, reliable,
accurate, with respect
to attendance, reliefs,
lunch breaks, etc.

Cooperation:
Willingness and ability
to work with others to
produce desired goals.

From the graphic rating scales, excerpts can be obtained about the
performance standards of employees. For instance, if the employee has
serious gaps in technical-professional knowledge (knows only rudimentary
phases of job); lacks the knowledge to bring about an increase in
productivity; is reluctant to make decisions on his own (on even when he
makes decisions they are unreliable and substandard); declines to accept
responsibility; fails to plan ahead

Effectively; wastes and misuses resources; etc., then it can safely be inferred
that the standards of the performance of the employee are dismal and
disappointing.

The rating scale is the most common method of evaluation of an employee’s

performance today. One positive point in favor of the rating scale is that it is
easy to understand, easy to use and permits a statistical tabulation of scores
of employees. When ratings are objective in nature they can be effectively
used as evaluators. The graphic rating scale may however suffer from a long
standing disadvantage, i.e., it may be arbitrary and the rating may be
subjective. Another pitfall is that each characteristic is equally important in
evaluation of the employee’s performance and so on.

3. Behaviorally anchored rating scales: Also known as the

behavioral expectations scale, this method represents the latest innovation
in performance appraisal. It is a combination of the rating scale and critical
incident techniques of employee performance evaluation. The critical
incidents serve as anchor statements on a scale and the rating form usually
contains six to eight specifically defined performance dimensions. The
following chart represents an example of a sales trainee’s competence and a
behaviorally anchored rating scale.

Table: An Example of Behaviorally Anchored Rating Scale (BARS)

 Point
Performance Behavior
s

Extremely 7 Can expect trainee to make valuable

good suggestions for increased sales and to have
positive relationships with customers all over
the country.

Good 6 Can expect to initiate creative ideas for

improved sales.

Above 5 Can expect to keep in touch with the

average customers throughout the year.

Average 4 Can manage, with difficulty, to deliver the

goods in time.

Below 3 Can expect to unload the trucks when asked

average by the supervisor.

Poor 2 Can expect to inform only a part of the

customers.
Extremely 1 Can expect to take extended coffee breaks
poor and roam around purposelessly.

How to construct BARS? Developing BARS follows a general format

which combines techniques employed in the critical incident method and
weighted checklist ratings scales. Emphasis is pinpointed on pooling the
thinking of people who will use the scales as both evaluators and evaluees.

Step 1: Collect critical incidents: People with knowledge of the job

to be probed, such as job holders and supervisors, describe specific examples
of effective and ineffective behavior related to job performance.

Step 2: Identify performance dimensions: The people assigned

the task of developing the instrument cluster the incidents into a small set of
key performance dimensions. Generally between five and ten dimensions
account for most of the performance. Examples of performance dimensions
include technical competence, relationships with customers, handling of
paper work and meeting day-to-day deadlines. While developing varying
levels of performance for each dimension (anchors), specific examples of
behavior should be used, which could later be scaled in terms of good,
average or below average performance?

Step 3: Reclassification of incidents: Another group of participants

who are knowledgeable about the job is instructed to retranslate or reclassify
the critical incidents generated (in Step II) previously. They are given the
definition of job dimension and told to assign each critical incident to the
dimension that it best describes. At this stage, incidents for which there is
not 75 per cent agreement are discarded as being too subjective.

Step 4: Assigning scale values to the incidents: Each incident

is then rated on a one-to-seven or one-to-nine scale with respect of how well
it represents performance on the appropriate dimension. A rating of one
represents ineffective performance; the top scale value indicates very
effective performance. The second group of participants usually assigns the
scale values. Means and standard deviations are then calculated for the scale
values assigned to each incident. Typically incidents that have standard
deviations of 1.50 or less (on a 7-point scale) are retained.

Step 5: Producing the final instrument: About six or seven

incidents for each performance dimension – all having met both the
retranslating and standard deviation criteria – will be used as behavioral
anchors. The final BARS instrument consists of a series of vertical scales (one
for each dimension) anchored (or measured) by the final incidents. Each
incident is positioned on the scale according to its mean value.

Because the above process typically requires considerable employee

participation, its acceptance by both supervisors and their subordinates may
be greater. Proponents of BARS also claim that such a system differentiates
among behavior, performance and results and consequently is able to
provide a basis for setting developmental goals for the employee. Because it
is job-specific and identifies observable and measurable behavior, it is a more
reliable and valid method for performance appraisal.

Researchers, after surveying several studies on BARS, concluded that

“despite the intuitive appeal of BARS, findings from research have not been
encouraging”. It has not proved to be superior to other methods in
overcoming rater errors or in achieving psychometric soundness. A specific
deficiency is that the behaviors used are activity oriented rather than results
oriented. This creates a potential problem for supervisors doing the
evaluation, who may be forced to deal with employees who are performing
the activity but not accomplishing the desired goals. Further, it is time
consuming and expensive to create BARS. They also demand several
appraisal forms to accommodate different types of jobs in an organization. In
a college, lecturers, office clerks, library staff, technical staff and gardening
staff all have different jobs; separate BARS forms would need to be
developed for each. In view of the lack of compelling evidence demonstrating
the superiority of BARS over traditional techniques such as graphic rating
scales. Decotis concluded that: “It may be time to quit hedging about the
efficacy of behavioral scaling strategies and conclude that this method has
no clear-cut advantages over more traditional and easier methods of
performance evaluation”.

4. Management by Objectives (MBO): MBO represents a modern

method of evaluating the performance of personnel. Thoughtful managers
have become increasingly aware that the traditional performance evaluation
systems are characterized by somewhat antagonistic judgments on the part
of the rater. There is a growing feeling nowadays that it is better to make the
superior work with subordinates in fixing goals. This would inevitably enable
subordinates to exercise self-control over their performance behaviors. The
concept of management by objectives is actually the outcome of the
pioneering works of Drucker, McGregor and Odiorne in management science.
Management by objectives can be described as “a process whereby the
superior and subordinate managers of an organization jointly identify its
common goals, define each individuals’ major areas of responsibility in terms
of results expected of him and use these measures as guides for operating
the unit and assessing the contributions of each of its members”. MBO thus
represents more than an evaluation programme and process. Practicing
management scientists and pedagogues view it as a philosophy of
managerial practice; it is a method by which managers and subordinates
plan, organize, control, communicate and debate.

Features

 MBO emphasizes participatively set goals that are tangible, verifiable

and measurable.
 MBO focuses attention on what must be accomplished (goals) rather
than how it is to be accomplished (methods).
 MBO, by concentrating on key result areas translates the abstract
philosophy of management into concrete phraseology. The technique
can be put to general use (non-specialist technique). Further it is “a
dynamic system which seeks to integrate the company’s need to clarify
and achieve its profit and growth targets with the manager’s need to
contribute and develop himself”.
 MBO is a systematic and rational technique that allows management to
attain maximum results from available resources by focusing on
achievable goals. It allows the subordinate plenty of room to make
creative decisions on his own.

5. Critical incident technique: Under this method, the

manager prepares lists of statements of very effective and
ineffective behavior of an employee. These critical incidents or
events represent the outstanding or poor behavior of employees on
the job. The manager maintains logs on each employee, whereby he
periodically records critical incidents of the workers behavior. At the
end of the rating period, these recorded critical incidents are used in
the evaluation of the workers

Performance. An example of a good critical incident of a sales

assistant is the following.
July 20 – The sales clerk patiently attended to the customers complaint. He is
polite, prompt, and enthusiastic in solving the customers’ problem.

On the other hand the bad critical incident may appear as under:

July 20 – The sales assistant stayed 45 minutes over on his break during the
busiest part of the day. He failed to answer the store manager’s call thrice.
He is lazy, negligent, stubborn and uninterested in work.

This method provides an objective basis for conducting a thorough discussion

of an employee’s performance. This method avoids recency bias (most
recent incidents get too much emphasis). This method suffers however from
the following limitations:

 Negative incidents may be more noticeable than positive incidents.

 The supervisors have a tendency to unload a series of complaints about
incidents during an annual performance review session.
 It results in very close supervision which may not be liked by the
employee.
 The recording of incidents may be a chore for the manager concerned,
who may be too busy or forget to do it.

Most frequently, the critical incidents technique of evaluation is applied

to evaluate the performance of superiors rather than of peers of
subordinates.
8. What would be the steps followed while introducing a good
potential appraisal system ?

Answer- The following are some of the steps required to be followed

while introducing a potential appraisal system.

1. Role Descriptions- Organizational roles and functions must be

defined clearly. To this end, job descriptions must be prepared for
each job.

2. Qualities need to perform the roles- Based on job descriptions; the

roles to be played by people must be prepared (i.e. technical,
managerial jobs and behavioral dimensions.

3. Rating mechanism- Besides listing the functions and qualities, the

potential appraisal system must list mechanisms of judging the
qualities of employees such as:

(a) Rating by others- The potential of a candidate could be rated by

the immediate supervisors who is acquainted with the
candidate’s work in the past especially his technical capabilities.

(b) Tests: - Managerial and behavioral dimensions can be measured

through a battery of psychological tests.

(c) Records:- Performance records and ratings of a candidate his

previous jobs could be examined carefully on various dimensions
such as initiative, creativity, risk taking ability, etc., which might
play a key role in discharging his duties in a new job.

4. Organizing the systems- After covering the above preliminaries, the

HR Manager set up a system that will allow the introduction of the
scheme smoothly incorporating answers to some complex questions
such as ;
(a) How much weightage to accord to merit in place of seniority in
promotions?

(b) How much weightage to accord to each of the performance

dimensions – technical, managerial, behavioral qualities?

(c) What is the mechanism of assessing the individual on different

indicators of his potential, and with what degree of reliability?

5. Feedback- The system must provide an opportunity for every

employee to know the results of his assessment .” He should be
helped to understand the qualities actually required for performing
the role for which he thinks he has the potential, the mechanisms
used by the organizations to appraise his potential and results of
such an appraisal.
 PERFORMANCE APPRAISAL

9. In your point of view what is the essential characteristics of an

effective appraisal system?

Answer- Performance appraisal system should be effective as a

number of crucial decisions are made on the basis of score or rating
given by the appraiser, which in turn, is heavily based on the appraisal
systems. Appraisal systems, to be effective, should possess the
following essential characteristics:

A.Reliability and validity- Appraisal system should provide

consistent, reliable and valid information and data, which can be
 used to defend the organizations-even in legal challenges. If two
appraise are equally qualified and.

Competent to appraise an employee with the help of the same

appraisal technique, their ratings should agree with each other

B.Job relatedness- The appraisal technique should measure

the performance and provide information in job related activities.

C.Standardization- Appraisal forms, procedures,

administration of techniques, ratings, etc, should be standardized as
appraisal decisions affect all employees of the group.

D.Practical viability:- The techniques should be practically

viable to administer; possible to implement and economical to
undertake continuously.

E.Legal Sanction- Appraisals must meet the laws of the land.

They must comply with provisions of various statues relating to
labour.

F.Training to appraisers: - Because appraisals are important

and sometime difficult, it would be useful to provide training to
appraisers viz, some insights and ideas on rating, documenting
appraisals and conducting appraisal interviews. Familiarity with
rating errors can improve’s rater performance and this may inject
the needed confidence in appraisers to look into performance
ratings more objectively.

G.Open communication:- Most employees want to know how

well they are performing the job. A good appraisal system provides
the needed feedback on a continuing basis. The appraisal interviews
should permit both parties to learn about the gaps and prepare
themselves for future. To this end , managers should clearly explain
their performance expectations to their subordinates in advance of
the appraisal period.
 H.Employee access to results;- Employees should know the
rules of the game. They should receive adequate feedback on their
performance. If performance appraisal is meant for improving
employee performance, then withholding appraisal result would not
serve any purpose. Employees simply cannot perform better
without having access to this information. Permitting employees to
review the results of their appraisals allows them to detect any
errors that may have been made. If they disagree with the
evaluation, they can even challenge the same through formal
channels.

I.Due Process – It follows then that formal procedures should be

developed to enable employees who disagree with appraisal results.
They must have the means for pursuing their grievances and having
them addressed objectively.

2.RESEARCH AND SURVEY:

Statement of the Problem:

Performance appraisal is a process of assessing, summarizing and developing the

work performance of an employee. In order to be effective and constructive, the
performance manager should make every effort to obtain as much objective
information about the employee's performance as possible. Low performance can
push the organization back in today’s tough competition scenario. The project is
aimed at analyzing the performance appraisal in companies.
Objective:
The various objectives of our research are as follows:
To examine why an appraisal system is important.
To study existing appraisal system in various organizations across sectors like BPO, IT &
Telecom.
To find the expectation of appraiser and appraisee
To determine the satisfaction level of the appraisee
To reveal the various loopholes in the appraisal system if any
To find the consequences of an inappropriately conducted appraisal system

Research Methodology:
The data source: Primary as well as Secondary.
The research approach: Survey Method.
The research instrument: Questionnaire.
The respondents: The Managers & Employees of various organizations.
The primary data was collected with the help of survey information. A concise questionnaire was
prepared keeping in mind the information specifications.
 3.RESULTS

Findings from Appraisee Survey

1. Expectations from Appraisal System :

Respondents were asked to rank the various options according to their
preference. (Rank 1 being most preferred and rank 6 being least preferred).
Then scoring was given on the basis of ranks. 1 mark was allotted to rank 1, 2
marks for rank 2 and so on.

Overall
Particular Score
Rank

Salary Administration and Benefits 87 1

Determination of promotion or 109 2

transfer

Assistance in goal 228 3

Guideline for training plan 254 4

An insight into your strengths and 312 5

weakness

Decision to layoff 354 6

From the above table it can be seen that employees expect “Salary
Administration and Benefits” to be the main reason for conducting a
Performance Appraisal. “Decision to layoff” is of least importance as per the
appraisee.
2. Awareness about Responsibilities :

From the graph it can be seen that majority of employees are aware about
their responsibilities, which implies that the appraisers have efficiently
communicated to the appraisees all the parameters that will be taken into
account during appraisal.
3. Satisfaction Level among appraise regarding Appraisal System :

From graph it can be seen that majority of the respondents are satisfied with
the appraisal system. Only a meager 30% were dissatisfied with the
Performance Appraisal programs.
4. Awareness about performance ratings :

This clearly shows that majority of the employees are not aware about the
performance ratings that are taken into account while conducting a
performance appraisal.
5. Alowing Self ratings :

From graph it can be seen that majority of respondents want self rating to be
a method of conducting the appraisals .
6. Chance to rate your own performance

From the graph we can see that majority of the employees are not given a
chance to rate their own performance in the organization.
7. Timing of Appraisals

This shows that most of the organisations conduct their Performance

Appraisal programs annually. A very small percentage of the organisations
conduct Performance Appraisals on a half yearly basis. The share of the
quarterly and monthly appraisals are extremely minimal.
8. Credibility of Appraiser

This shows that according to the employees/appraisees the credibility of the

appraiser is extremely important and it has an effect on the overall
Performance appraisal program.
9. Complaint channel for employees

This shows that there is no proper complaint channel existing in the organisations for the
employees who are dissatisfied with the performance appraisal system
 .

10. Standards communicated to employees

 From this it can be seen that there is a clear majority among the employees
who say that the standards on the basis of which the performance appraisal
is carried out is not communicated to the employees before hand.

11. Performance Appraisal

 Almost all the Performance Appraisals are carried our by the Immediate
Supervisor in these organisations. In very few organisations, Rating
committees carry out the performance appraisals. None of the organisations
use Peer Appraisals, Appraisals by subordinates and Self rating as a method
of Performance Appraisal.

12. Clear understanding of Appraisee’s job

 This shows that the performance Appraisal programs are successful in giving
a clear understanding of the appraisee’s job to both appraiser and appraisee.

13. Objectives of Appraisal System

 From the figure we can derive that the objective for conducting the Appraisal
system is clear only to half of the employees. The remaining half are not clear
about the objective for which the Performance Appraisal is carried out.

14. Good communication between top management and business

goals
 This shows that the appraisal systems do not provide a good communication
flow of the top-management plans and business goals to the staff below.

15. Comments and suggestions to be considered

 Almost all the employees expect that their comments and suggestions should
be taken into consideration while conducting the Performance Appraisal.

16. Post Appraisal interview

 As per the response from the employees we can see that there is no interview
conducted after the appraisal program for majority of the employees.

FINDINGS FROM APPRAISER SURVEY

1. Purpose of Appraisal

Respondents were asked to rank the various options according to their

preference. (Rank 1 being most preferred and rank 6 being least preferred).
Then scoring was done on basis of these
ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so on. Then the
total score for each purpose was calculated and overall ranking was given.

Particular Score Overall

Rank

Determination of promotion or 24 1
transfer

Salary Administration and Benefits 27 2

Decision to layoff 42 3

Guideline for training plan 69 4

Assistance in goal 72 5

An insight into your strengths and 81 6

weakness

From table it can be seen that appraiser considers “Determination of

promotion or transfer” & “Salary administration and Benefits” as two
important factors for conducting an Appraisal.
2. Appraisal System

In this question appraiser was asked to rate how helpful the appraisal system
is, from the graph it can be seen that majority of appraisers have rated 5,4 &
3 which implies that Performance Appraisal system is very helpful in Planning
their work. Also most of the appraisers are satisfied with the appraisal
system.
3. Support from subordinate

This question was asked to find out how helpful appraisal system is in
communicating the support that apprasier needs from appraisee. From results
it is seen that the performance appraisal system is very helpful in
communicating the support and help needed by the appraiser from the
appraisee.
4. Type of Appraisal System

From results its clear that majority of companies prefer to use “360 degree
feedback” system for Performance Appraisal. As 360 degree feedback gives
feedback of appraisee from everyone interacting with him, it is more reliable
and hence most preferred.

5. Performance Appraisal criteria

 From results we can see that Qualitative Process is considered as the most
important criteria for which the Performance appraisal programs are carried
out, which shows that companies consider Qualitiy of product & service and
Customer satisfaction as most important factors.

6. Timing of Appraisals
From graphs we can see that most of companies conduct appraisals on
annual basis. Some companies conduct quaterly also.
7. Effect of poor Appraisal System

It can be seen from results that most of the employees get De-motivated
because of a poorly conducted appraisal. To some extent employees dont
coordinate with their team members. Thus resulting in reduction of output.

8. Communication between top management and staff

 All appraisers totally agree that performance appraisal helps in
communicating the top management plans and business goals to staff at
lower level.

9. Insight to Apprasiee’s strength and weakness

 It is evident from the results that performance appraisal system doesn’t help
the appraiser in understanding strength and weakness of apraisee.

10. Appraisee’s comment and suggestion

 From the results it can be seen that appraisee’s comments and suggestion
are not taken into consideration before Performance Appraisal. Performance
Appraisal system is designed by appraiser without consulting appraisee.

11. Performance Appraisal

It is evident from the results that performance appraisal is conducted by the
Immediate Supervisor in all the companies.
12. Understanding of Apprasiee’s Job

From this it is clearly seen that according to appraiser there is a clear and
joint understanding of the appraisee’s job.

13. Standards for Performance Appraisal

From results it is evident that Performance appraisal standards are very well
communicated to Appraisee before the Appraisal is carried out.
14. Self rating in Performance Appraisal

From results it can be clearly seen that the Appraisee is not given a chance to
rate his own performance.
 15. Action after Performance Appraisal

This shows that most of the companies act upon the results of their Performance
Appraisal program.
 COMPARATIVE STUDY OF 5 COMPANIES
IN PERFORMANCE APPRAISAL SYSTEM
WITH DCM SHRIRAM FERTILIZERS &
CHEMICALS.

Performance Appraisal System in B.S.N.L

The foregoing list of major program pitfalls represents a formidable

challenge, even considering the available battery of appraisal techniques.
But attempting to avoid these pitfalls by doing away with appraisals
themselves is like trying to solve the problems of life by committing suicide.
The more logical task is to identify those appraisal practices that a

(a) Most likely to achieve a particular objective and

(b) Least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal
stated at the outset of the article, I shall briefly review each, taking them
more or less in an order of increasing complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or
more covering an individual's strengths, weaknesses, potential, and so on. In
most selection situations,

Particularly those involving professional, sales, or managerial positions, essay

appraisals from former employers, teachers, or associates carry significant
weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more
consistent and reliable. Typically, a graphic scale assesses a person on the
quality and quantity of his work (is he outstanding, above average, average,
or unsatisfactory?) and on a variety of other factors that vary with the job but
usually include personal traits like reliability and cooperation. It may also
include specific performance items like oral and written communication.

FIELD REVIEW
The field review is one of several techniques for doing this. A member of the
personnel or central administrative staff meets with small groups of raters
from each supervisory unit and goes over each employee's rating with them
to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a
consensus, and (c) determine that each rater conceives the standards
similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and
establish objective standards of comparison between individuals, but it does
not involve the intervention of a third party.

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly
high standards, employees in some organizations are being asked to set - or
help set - their own performance goals. Within the past five or six years, MBO
has become something of a fad and is so familiar to most managers that I will
not dwell on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare

people who work for different supervisors, individual statements, ratings, or
appraisal forms are not particularly useful. Instead, it is necessary to
recognize that comparisons involve an overall subjective judgment to which a
host of additional facts and impressions must somehow be added. There is no
single form or way to do this.

The best approach appears to be a ranking technique involving pooled

judgment.

The two most effective methods are alternation ranking and paired
comparison ranking.

1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another

method for evaluating employees. Since it is usually easier to distinguish
between the worst and the best employees than to rank them, an alternation
ranking method is most popular. Here subordinates to be rated are listed and
the names of those not well enough to rank are crossed. Then on a form as
shown below, the employee who is highest on the characteristic being
measured and the one who is the lowest are indicated. Then chose the next
highest and the next lowest, alternating between highest and lowest until all
the employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might

be more so. But with large numbers of employees it becomes extremely time
consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple rankings
(i.e., when two or more people are asked to make independent rankings of
the same work group and their lists are averaged), are among the best
available for generating valid order-of-merit rankings for salary
administration purposes.

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about
the assessment of future performance or potential? In any placement
decision and even more so in promotion decisions, some prediction of future
performance is necessary. How can this kind of prediction be made most
validly and most fairly?

360 DEGREE FEEDBACKS

Many firms have expanded the idea of upward feedback into what the call
360-degree feedback. The feedback is generally used for training and
development, rather than for pay increases.

Most 360 Degree Feedback system contains several common features.

Appropriate parties – peers, supervisors, subordinates and customers, for
instance – complete survey, questionnaires on an individual. 360 degree
feedback is also known as the multi-rater feedback, whereby ratings are not
given just by the next manager up in the organizational hierarchy, but also
by peers and subordinates. Appropriates customer ratings are also included,
along with the
element of self appraisal. Once gathered in, the assessment from the various
quarters are compared with one another and the results communicated to
the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO.
Like the critical incident method, it focuses on actual behavior and actual
results, which can be discussed objectively and constructively, with little or
no need for a supervisor to "play God."

PERFORMANCE APPRAISAL SYSTEM AT O.N.G.C

PERFORMANCE APPRAISAL METHODS

1. Management by objective or goal setting.

2. Graphic rating scale.

 3. Work standard approach.

4. Essay appraisal.

5. Critical incidence method.

6. Forced choice rating method.

7. Point allocation method.

8. Ranking method.

9. Check list.

10. Behavioral anchored rating scale.(BARS)

11. 360 degree performance appraisal.

12. Team appraisal.

13. Balanced scorecard method.

MANAGEMENT BY OBJECTIVE (MBO)

The main aspect of MBO is clear & well defined goals, a definite time span to
achieve the goals, action plan & finally, timely & constructive feedback. It is
also called a goal setting approach; MBO is more commonly used for
managers & professionals.

GRAPHIC RATING SCALE

This method of appraisal requires the rater to rate the employee on factors
like quantity & quality of work, job knowledge, dependability, punctuality,
attendance etc. This method is also used for performance appraisal of
employees. They check their employees daily by using this method.

WORK STANDARD APPROACH

This method of appraisal is more suitable in a manufacturing scenario, where

the goals are pre determined work standard. These work standards can be
set based on the average output of a typical employee in the organization or
by bench marking against the work standard of a competitor in a similar
business.

ESSAY APPRAISAL

In the essay appraisal method, the appraiser prepares a document describing

the performance of the employees. Questions or guidelines are provider to
the appraiser based on which analyses & describes the employees’
performance.

CRITICAL INCIDENT METHOD

In this method of performance appraisal, the appraiser makes a note of all

the critical incident that reflect the performance & behavior of the employee
during the appraisal period. These are recoded as & when they occur & can
demonstrate either positive or negative traits or performance.
FORCED CHOICE RATING METHOD

In this method the appraiser is required to assign ranks to different attributes

are all seemingly positive, but have different weights which are unknown to
the appraiser. Once the employees’

Attributes are ranked the human resource department applies the weights &
arrives at a score which is the final appraisal score.

POINT ALLOCATION MATHOD

In this method of appraisal, the appraiser has to allocate points to different

members in his team. He has at disposal, a specific number of points which
he has to distribute among his team members, based on their performance
during the appraisal period.

RANKINNG METHOD

There are three commonly used methods of ranking namely alternation,

paired comparison & forced distribution. The first two methods are used
when there are only a few employees to be ranked, whereas forced
distribution method is used in large companies which have thousands of
employees.
CHECKLIST

In this method the rater has to respond ‘yes’ or ‘no’ to a set of questions
which assess the employee’s performance & behavior. Normally weights are
attached to each of these questions based on which the final appraisal score
of the employee is calculated.

BEHAVIOR ANCHORED RATING SYSTEM (BARS)

BARS concentrates on the behavioral traits demonstrated by the employees

instead of his actual performance. Some of the other methods like graphic
rating scale & checklist also measure the behavior based on the assumption
that desirable behavior result in effective performance.

360 DEGREE PERFORMANCE APPRAISALS

A 360 degree appraisal system aims at a comprehensive & objective

appraisal of employee performance. In a 360 degree appraisal system the
employees’ performance is evaluated by his supervisor, his peers, his
internal external customers, his internal external suppliers & his
subordinates. This system reduces the subjectivity of a traditional supervisor
appraisal.
TEAM APPRAISAL

In the new economy era, where team work is essential for any venture to
succeed, team appraisal has emerged as one of the best tool for the
performance management. In the team appraisal methods the individual
team members evaluates their colleagues in the team & provide feedback.

BALANCED SCORECARD

The balanced scorecard as a method of measuring performance channelizes

the efforts of people to achieve organizational goals. The implementation of
balanced scorecard involves formulating a strategy & deciding what each
employee needs to do to achieve the objectives based on strategy.
 PERFORMANCE APPRAISAL SYSTEM AT WIPRO

TRADITIONAL METHOD:

1. ESSAY APPRAISAL METHOD:

This traditional form of appraisal, also known as “Free Form method”
involves a description of the performance of an employee by his superior.
The description is an evaluation of the performance of any individual
based on the facts and often includes examples and evidences to support
the information. A major drawback of the method is the inseparability of
the bias of the evaluator.

2. STRAIGHT RANKING METHOD:

This is one of the oldest and simplest techniques of performance
appraisal. In this method, the appraiser ranks the employees from the
best to the poorest on the basis of their overall performance. It is quite
useful for a comparative evaluation.
 3. PAIRED COMPARISON:
A better technique of comparison than the straight ranking method, this
method compares each employee with all others in the group, one at a
time. After all the comparisons on the basis of the overall comparisons,
the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS:

In this method of Performance Appraisal, the evaluator rates the

employee on the basis of critical events and how the employee behaved
during those incidents. It includes both negative and positive points. The
drawback of this method is that the supervisor has to note down the
critical incidents and the employee behavior as and when they occur.

5. FIELD REVIEW:

In this method, a senior member of the HR department or a training

officer discusses and interviews the supervisors to evaluate and rate their
respective subordinates. A major drawback of this method is that it is a
very time consuming method. But this method helps to reduce the
superiors’ personal bias.

6. CHECKLIST METHOD:

The rater is given a checklist of the descriptions of the behavior of the

employees on job. The checklist contains a list of statements on the basis
of which the rater describes the on the job performance of the
employees.
7. GRAPHIC RATING SCALE:

In this method, an employee’s quality and quantity of work is assessed in

a graphic scale indicating different degrees of a particular trait. The
factors taken into consideration include both the personal characteristics
and characteristics related to the on-the-job performance of the
employees. For example a trait like Job Knowledge may be judged on the
range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION:

To eliminate the element of bias from the rater’s ratings, the evaluator is
asked to distribute the employees in some fixed categories of ratings like
on a normal distribution curve. The rater chooses the appropriate fit for
the categories on his own discretion.

MODERN APPRAISAL:

360 DEGREE PERFORMANCE APPRAISAL:

360 degree feedback, also known as 'multi-rater feedback', is the most

comprehensive appraisal where the feedback about the employees’
performance comes from all the sources that come in contact with the
employee on his job.

360 degree respondents for an employee can be his/her peers, managers

(i.e. superior), subordinates, team members, customers, suppliers/
vendors - anyone who comes into contact with the employee and can
provide valuable insights and information or feedback regarding the “on-
the-job” performance of the employee.

360 degree appraisal has four integral components:

1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths

and weaknesses, his achievements, and judge his own performance.
Superior’s appraisal forms the traditional part of the 360 degree appraisal
where the employees’ responsibilities and actual performance is rated by
the superior.

Subordinates appraisal gives a chance to judge the employee on the

parameters like communication and motivating abilities, superior’s ability
to delegate the work, leadership qualities etc. Also known as internal
customers, the correct feedback given by peers can help to find
employees’ abilities to work in a team, co-operation and sensitivity
towards others.
Self assessment is an indispensable part of 360 degree appraisals
and therefore 360 degree performance appraisals has high
employee involvement and also has the strongest impact on
behavior and performance. It provides a "360-degree review" of the
employees’ performance and is considered to be one of the most
credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because

when conducted at regular intervals (say yearly) it helps to keep a
track of the changes others’ perceptions about the employees. A
360 degree appraisal is generally found more suitable for the
managers as it helps to assess their leadership and managing
styles. This technique is being effectively used across the globe for
performance
 Appraisals. Some of the organizations following it are Wipro,
Infosys, and Reliance Industries etc.

PERFORMANCE APPRAISAL SYSTEM AT TCS

1. BEHAVIOURLY ANCHORED RATING SCALES –

 Combines graphic rating scales with critical incidents method.

 Descriptions of various degrees of behavior relating to specific
performance dimensions.
 The rater records observable job behavior of an employee and
compares these observations with BARS.

2. CRITICAL INCIDENT METHOD –

 The supervisor keeps a written record of critical (either good or bad)

events and how different employees behaved during such events.
 The rating of an employee depends on his positive / negative behavior
during these events.
 This method helps to avoid vague impressions and general marks as
the rating is based on actual records of behavior / performance.

3. GRAPHIC RATING SCALE –

 It is a numerical scale indicating different degrees of a particular trait.

 The rater is given a printed form for each employee to be rated. The
form contains several characteristics relating to the personality and
performance of employees.
 The rater records his judgment on the employee's trait on the scale.
The numerical points given to an employee are added up to find out his
overall performance.
 4. RANKING METHOD –

 The evaluator assigns relative ranks to all the employees in the same
work unit doing the same job. Employees are ranked from the best to
the poorest on the basis of overall performance.

 The relative position of an employee is reflected in his numerical rank.

 It is time saving and a comparative evaluation technique of appraisal.

5. MANAGEMENT BY OBJECTIVE –

A process whereby the superior and subordinate managers of an

organization jointly identify its common goals, define each individuals’
major areas of responsibility in terms of results expected of him and use
these measures as guides for operating the unit and assessing the
contributions of each of its members.

PERFORMANCE APPRAISAL SYSTEM AT MARUTI UDHYOG

1. GRAPHIC RATING SCALE -

• Uses a printed form to evaluate
• Uses variety of traits
• Most commonly quality and quantity of work.

2. ESSAY APPRAISAL –

• Rater is asked to express the strong as well as weak points of the

employee’s behavior
• Used with a combination of the graphic rating scale
• Factors:
– (i) Job knowledge and potential of the employee;
 (ii) Employee’s understanding of the company’s programmes, policies,
objectives, etc.;
(iii) The employee’s relations with co-workers and superiors;
(iv) The employee’s general planning, organizing and controlling ability;
(v) The attitudes and perceptions of the employee, in general

3. CHECKLISTS –

• A set of objectives or descriptive statements about the employee

and his behavior
• The value of each question may be weighted equally or certain
questions may be weighted more heavily than others in the
weighted checklist.

4. CRITICAL INCIDENT TECHNIQUE-

a. Manager prepares lists of statements of very effective and

ineffective behavior of an employee

b. Manager maintains logs on each employee

c. Recorded critical incidents are used in the evaluation of the workers’

performance
.

5. 360 DEGREE FEEDBACK –

360 degree feedback, also known as 'multi-rater feedback', is the most

comprehensive appraisal where the feedback about the employees’
performance comes from all the sources that come in contact with the
employee on his job.
360 degree respondents for an employee can be his/her peers, managers
(i.e. superior), subordinates, team members, customers, suppliers/ vendors -
anyone who comes into contact with the employee and can provide valuable
insights and information or feedback regarding the "on-the-job" performance
of the employee.

6. BEHAVIOURAL ANCHORED RATING SCALES –

 Identify critical incidents

 Select performance dimensions
 Retranslate the incidents
 Assign scale to incidents
 Develop final instrument

MARUTI DSCL,
S.No. Performance Appraisal Parameters B.S.N.L O.N.G.C TCS WIPRO
UDHYOG Kota

1 Essay Appaisal a a - a - a
2 Graphic Rating Scale a a a a a a
3 Field Review a - - a - -
4 Forced Choice Rating a a - - a -
5 Management By Objective a - a - a a
6 Rankings Method a a a a - -
7 Assessment Centres a - - - - -
8 360 Degree Feedback a a - a a a
9 Work Standard Approach - a - - a -
10 Critical Incident Method - a a a - a
11 Point Allocation Method - a - - - -
12 Check List - a - a a -
13 Behavioral Anchored Rating Scale - a a - a a
14 Team Appraisal - a - a a -
15 Balanced Scorecard Method - a a - - -
16 Straight Ranking Method - - - a - -
17 Paired Comparison - - - a - -
CHAPTER 6
ISSUES AND CHALLENGES FACING THE
ORGANISATION
 CHAPTER 7

FINDINGS AND ANALYSIS

 Performance Appraisal System in DCM Shriram Fertilizers & Chemicals

is not transparent.
 Appraisers are usually unbiased.
 Employees are not able to know their actual position after the
appraisal.
 The management is serious about the appraisal process.
 The appraisal process provides them an opportunity for development
and growth.
 Relations with the superior affect the evaluation.
 Greater weightage is given to the recent performances.
 There are fixed standards to evaluate the performance but those are
not clear due to the subjectivity of the topic.
 Raters know how to conduct the appraisal.
 Raters are not that much concerned about the varied needs of people
at levels of experience and background.
 Superior-subordinate relations are good. Superior helps them set and
achieve meaningful goals.
 This makes the environment amiable and congenial.
 Performance appraisal sheet is lucid and easy to understand and fill.
 The parameters used to appraise the potential are ample.
 The system being not so transparent, employees are unable to identify
the performance gaps in order to prepare for the future.
 Individual feedback is not provided.

 The management helps provide an atmosphere where all are

encouraged for comradeship and teamwork.
 Appreciation is provided for the good job done.
 The appraisers are generally aware about their subordinates and their
talents and potential.
 Most of the raters have the ability to give constructive criticism in a
friendly, firm and positive manner.
 Employees don’t have the opportunity to respond to the appraisal
result.
 Employees are being rated on their knowledge and skills.
 Majority of people want that there should be some incentives based on
performance.
 Employees are not provided with the genuine feedback.
 Appraisal counseling is considered beneficial for future developments.
 Management doesn’t bother much about the training requirements
mentioned in the appraisal sheet.
 Most of the employees want that 360o feedback system should be
introduced.
 CHAPTER 8

RECOMMENDATIONS

The performance appraisal system of DCM Shriram Fertilizers & Chemicals

Ltd is of good quality. On the basis of the analysis of responses and findings I
have reached to some conclusions. So taking them into consideration few
steps may be considered to strengthen the performance appraisal system.
 The system should be made more transparent. This can be achieved by
creating awareness among the employees regarding each and every
aspect of the appraisal process. They should be made aware about the
standards and the criterions for evaluation. Further they should be
shown the appraisal result.

 The appraiser and appraisee should sit together and then the appraiser
should rate the appraisee for his performance and should state the
reason for the same. This will increase the level of transparency and
the employee will feel satisfied as he will have an opportunity to
respond at that very moment itself.

 The genuine feedback should be provided to the employees. So that

they may be in a position to know where they stand exactly. So that
they can identify their performance gaps and prepare accordingly for
the future.

 The general belief among employees is that the relations with the
superior affect the evaluation process. This is not good as this creates a
sense of favoritism in the organization. No doubt one should be in
pleasing terms with the superior but that should not affect the
 evaluation at all. For this the raters should always consider the
performance as the only measure for the evaluation.

 The raters should take note of the critical performance incidents of an

individual so that at the end of the year it should not be that only the
recent performances are given more weightage.

 Raters should consider the specific requirements of the people to do

the job. They should help them out by providing necessary skill set to
do the job more efficiently. They should set the goals as per the
potential and caliber of the individual.

 Employees should have the opportunity to respond to the appraisal

result. For this individual feedback should be provided.

 Management should take serious note of the training requirements

shown by the individual in the appraisal sheet. Training plays a vital
role in the development of an individual and helps improve the
performance.

 Some incentives should be introduced on the performances basis. This

thing creates a sense of healthy competition among employees which
boost up the growth of the individual as well as the organization.
 CHAPTER 9

BIBLIOGRAPHY

WEBSITES
 www.dscl.com
 www.wikipedia.org

 Business.mapsofindia.com
 www.performance-appraisal.com/intro.html

JOURNALS

 A New Framework for Selection of the Best Performance Appraisal

Method

 Function of performance appraisal in career development

 Innovative human resource management and corporate

performance in the context of economic liberalization in India.

 The Effects of Human Resource Management Practices on

Productivity.
 CHAPTER 10

ANNEXURES
Performance Appraisal Forms
CHAPTER 11
 CASE STUDY

DCM SHRIRAM CONSOLIDATED LIMITED

Overview

DCM Shriram Consolidated Limited (DSCL), a company with interests mainly

in chemicals and agribusiness, operates in western and northern India. The
western state of Rajasthan is home to the company's main manufacturing
plant, in Kota, which has also been the site of its HIV and AIDS program. The
program is uniquely local, drawing on local culture and adapting information,
education, and communication material to appeal to local sensibilities.
Committed to providing a safe and healthy working environment, the
company holds regular group sessions to build HIV and AIDS awareness
among its employees. DSCL's occupational health doctor speaks on the
basics of HIV and AIDS awareness and prevention. But then follows a song or
poem in the local dialect to convey messages more light-heartedly. The
company also uses cultural performances at festivals or other important
events at the Kota plant to generate mass awareness.

Communicating messages in ways that fit the local culture and local
sensibilities has helped the program capture the attention of the target
audience. It has also helped the program gain acceptance among the local
population.
Business background

DSCL has diverse business interests ranging from agribusiness (sugar,

fertilizers, agri-retail) to chemicals (chlorine, caustic soda), plastics (PVC
resins, polymer compounds), and others (cement, textiles, energy services,
real estate development). The corporate office is in New Delhi, and the main
manufacturing plant in Kota, in the western state of Rajasthan.
The Kota plant, the site of the company's HIV and AIDS intervention,
houses manufacturing facilities for fertilizers, plastics, chlor alkali, and
cement as well as a captive power plant. This site has 1,600 full-time
employees, 1,500 daily contract workers, and 500 staff for security, manual
labor, and the like.
The company's annual sales are Rs 23 billion (around US$500 million).
DSCL's main supply chain partner public enterprises and small and medium-
size suppliers provide raw materials such as coal, salt, naphtha, and
limestone.

Why do something about HIV and AIDS?

DSCL's decision to initiate an HIV and AIDS program was motivated largely
by its belief that AIDS is a public health challenge that could affect its
workforce, its supply chain, its value chain partners, and the broader
community. Looking at the experience of other countries, the company
recognized that the business community, particularly in manufacturing
needed to contribute to the fight against HIV and AIDS. Thus while no HIV-
positive cases have yet been reported at the company's sites, advocacy
efforts by industry associations in India convinced senior management that
DSCL, as a responsible corporate citizen, needed to take part.
The company has adopted an HIV and AIDS policy out of a belief that the
policy could serve as a key driver in initiating intervention program.

The program

DSCL identified two potential target groups for its program: Its own
steadily growing employee base, a large captive audience that could be
informed about HIV and AIDS at the workplace and the large number of
truckers who came to its factories (particularly in the sugar division,
where many truckers offloaded sugarcane).
At an initial meeting to allocate responsibility for the program, DSCL
decided to assign the program to an official who volunteered his efforts.
The human resources unit normally would have led the program. But the
official's demonstrated eagerness to be involved in an HIV program made
him a promising choice.
 The program began in January 2005 by gathering information about
the issue, identifying resources such as organizations providing technical
services, and developing information, education, and communication
material. As many programs have done, DSCL's has created pamphlets
containing information about HIV and AIDS, but much of its material
shows unusual innovation. Cassettes intersperse HIV and AIDS messages
with popular Hindi film songs. And songs are written in the local dialect to
appeal to the diverse community working in the plant and living around it.

Awareness and prevention activities at the workplace

The company's awareness activities at the workplace center on group

meetings where the occupational health team shares information about HIV
and AIDS with DSCL employees. Sessions take place on the shop floor or
near the factory entrance. Meetings usually consist of a talk by the
company's medical officer, messages on HIV and AIDS conveyed through
poems, songs, or jokes in the local dialect, and a quiz to see whether
participants have grasped the information. Sessions end with distribution of
free condoms.
To encourage its contract employees to
participate, the company sought the cooperation of the contractors in con-
ducting the awareness sessions. Contract employees are more willing to
spend time at these sessions if their employers are agreeable.
Outside the meetings, the occupational health team dis-
seminates information about HIV and AIDS to employees and workers
through pamphlets, posters, and billboards created in-house. Some posters
call out to the target audience to join the fight against HIV and AIDS. Others
quote a powerful speech by Nelson Mandela portraying HIV and AIDS as
everyone's responsibility. Awareness material is placed in prominent
locations at the plant, such as in the visitors' lobby and on the notice board.
DSCL has made good use of the company's own resources in communicating
information. For example, employees skilled in music, drama, writing, and
poetry use their arts to convey messages about HIV and AIDS. One such
employee, a talented singer and poet as well as a brilliant orator in the local
dialect, accompanies DSCL's chief medical officer to awareness sessions.
These artists also convey messages during performances at
interdepartmental cultural competitions, plant days, and other festive
occasions.

The company disseminates information in other innovative ways as well. Its

visitor’s passes now include HIV and AIDS message. Films plays and cultural
performances impart HIV and AIDS awareness at public functions held to
commemorate important company days or religious festivals. Films are
screened occasionally in the canteens while the workers gather to eat. Films
on HIV and AIDS are also shown to officers trained at the company's training
institute.

For more informal communication with employees about HIV and

AIDS, DSCL relies on its welfare officers. These officers, each
responsible for the well-being of a certain number of employees, act as
conduits between management and workers and as support systems
and confidants for employees and their families. Their deep
engagement with employees makes them well placed to spread
awareness about HIV and AIDS and to provide individual counseling.
The medical doctors in the plant and trained polyclinic staff also
provide counseling.

DSCL does not have its own medical facilities for HIV and AIDS. But the city
of Kota has a government-established blood testing and detection center.
And DSCL’s medical staff has on HIV and AIDS, on such issues as primary
care, visual diagnosis and management of opportunistic infections, lab
diagnosis, and antiretrovi-ral therapy. The staff conducts regular medical
checkups on employees and is trained to notice symptomatic indicators of
HIV and AIDS.
While DSCL reports having no HIV-positive employees, it can arrange for
antiretroviral therapy at the Kota government hospital. The company now
covers the cost of treatment for some AIDS patient in the city of Kota even
though they are not DSCL employees.

Interventions for the community

DSCL also conducts awareness sessions beyond the shop floor, for truckers
who transport material to and from the company. The method is the same as
that for employees: in a group session the company doctor shares
information on HIV and AIDS, and then free condoms are distributed. The
sessions for the truckers take place while their goods are being loaded or
unloaded.
DSCL has sometimes faced challenges in implementing its HIV and AIDS
program while managing the varying expectations of the local community.
But the company plans to reach out to the wider community through similar
programs for local slum dwellers and drug addicts and through programs in
commercial areas.

Partnerships

The DSCL program has relied on partnerships from the outset. In designing
the initial strategy, the official taking responsibility for the program
consulted with area organizations that deal with HIV and AIDS, including
industry associations and government entities. And those in the company
who have implemented the program have often benefited from inputs from
partners. These partners include
• The Rajasthan State AIDS Control Society, the government organization
responsible for the state AIDS program in Rajasthan.
• The Confederation of Indian Industry and its Social Development Council
in the northern region. The council interacts with companies that are
confederation members on issues of corporate social responsibility.
• The Energy and Resource Institute.
Funding –

The program is funded entirely through internal resources of DSCL.

Management allocates Rs 500, 000 (around US$ 11, 000) a year for the
program through the annual budget. But if program needs exceed the
allocated budget, management can approve additional support.

Outreach

Mass awareness programs at the workplace and in the surrounding com-

munity have covered about 75,000 people. These include contract workers,
truck drivers and their assistants, and citizens of the city of Kota who visit
the company during local festivals.
Lessons learned

The program has identified key factors in its success as well as key
challenges and other lessons.

Key success factors

• Management commitment. The continued interest and involvement of

senior management since the program's inception has been critical,
providing the impetus and motivation for successful implementation. As
noted, DSCL's HIV and AIDS intervention is financed by the company
and thus has a greater likelihood of sustainability than if it depended on
external sources of funding.

Enthusiasm and innovativeness of the responsible official. The official

responsible for the program was no expert on HIV and AIDS. But he devised
unique strategies for the program by combining information from more
knowledgeable sources with his own knowledge of the local area. This
innovative spirit led to interesting ways of spreading information, such as
songs, poems, stories, and street plays in the local disalect.

Key challenges

• Stigma associated with HIV and AIDS in a conservative, semiur-ban

area. DSCL confronted ignorance, inhibitions, and misconceptions
among the local population and thus resistance to the HIV and AIDS
program. The company's engagement with the local population to
counter its fears and to persuade it that the program was in the interest
of public health helped overcome the resistance.
• Lack of infrastructure and potential partners. Key challenges have been
the inadequate government HIV and AIDS facilities in the area (the local
government hospital has only a voluntary counseling and testing center,
though staffed by a doctor) and the difficulty in finding local NGOs to act
as effective project partners. The company overcame these obstacles by
 designing its own information, education, and communication material
and relying on its own employees and occupational health team to
spread awareness about HIV and AIDS.

Other lessons learned

Sensitivity to local culture and local sensibilities. Using information,

education, and communication material and dissemination mechanisms that
suit local sensibilities helped the program gain acceptance among the local
population.

• Use of existing internal resources. The program has benefited from

DSCL employees' skills and capabilities in creating information,
education, and communication material. Relying on employees rather
than an external agency to create awareness about HIV and AIDS has
also helped build a greater sense of ownership for the program within the
company. This approach offers a good example of how to mainstream
HIV and AIDS activities and might help in institutionalizing and sustaining
the response over time.

Future plans

The company's future plans for its HIV and AIDS program, outlined in its
initial strategy, cover several areas of effort.
The HIV prevention and detection plan calls for:

• Conducting awareness programs in the city of Kota for schoolchildren,

the police, and high-risk groups such as drug users and local jail inmates.
• Proactively distributing condoms.
• Conducting blood testing campaigns to detect HIV.
• Providing financial assistance to those suspected of being HIV- positive
but who cannot afford the test to detect HIV.

The AIDS treatment plan includes:

• Providing antiretroviral drugs to those needing them.

Providing financial assistance for nutritional enhancement for those
undergoing treatment.

Finally, the rehabilitation plan covers several actions:

• Creating a nondiscriminatory environment in the workplace consistent with
the company's HIV and AIDS policy.

• Transferring HIV-positive employees to positions involving less physical

strain if that is important for their health.
• Partnering with other organizations to help AIDS patients earn income to
support themselves and undergo treatment.
CHAPTER 12
 SYNOPSIS OF THE PROJECT

PERFORMANCE APPRAISAL SYSTEM AT DCM SHRIRAM

FERTILIZERS & CHEMICALS

STUDENT NAME – RITESH MEENA

INDUSTRY GUIDE- SHASHANK TYAGI
FACULTY GUIDE- APARAJITA DASGUPTA AMIST

OBJECTIVE;-
 To know the various types of performance appraisal methods being
used at SFC Kota

 To know which appraisal system is being mostly used in SFC Kota

 To know whether the performance appraisal system of SFC Kota.

Increase the productivity of employee or not.

FINDINGS;-
 The appraisal process provides them an opportunity for development
and growth.
 The management helps provide an atmosphere where all are
encouraged for comradeship and teamwork.
 The appraisers are generally aware about their subordinates and
their talents and potential.
CONCLUSIONS;-
The HR Department is responsible for the Performance Appraisal
system along with the
Manager and Supervisors. They evaluate a person on their overall
performance, efficiency,
 Satisfied customers and productivity. They say that Performance
Appraisal’s main purpose is
to shape criterion for salary, increments and promotions.