PROJECT DISSERTATION REPORT ON

“PERFORMANCE APPRAISAL TECHNIQUE – A

COMPARATIVE STUDY”

Submitted in partial fulfillment of the requirement

For the award of degree of

MASTER OF BUSINESS ADMINISTRATION

To

Guru Gobind Singh Indraprastha University,Delhi

Under the Guidance of: Submitted by:

Ms. Sanober Khan Sweta Gautam

Professor M.B.A- IV SEM

01018003917

Session 2017-19

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 TO WHOM IT MY CONCERN

I SWETA GAUTAM , Enrolment No. 01018003917 from MBA-IV Semester of the Delhi
Technical Campus, Greater Noida hereby declare that the Project Dissertation Report
(MS202) entitled PERFORMANCE APPRAISAISAL TECHNIQUE – A
COMPARATIVE STUDY is an original work and the same has not been submitted to any
other Institute for the award of any other degree. A presentation of the Report was made
on_____ and the suggestions as approved by the faculty were duly incorporated.

Date: Signature of the Student

Certified that the Project Dissertation Report submitted in partial fulfilment of Master of
Business Administration (MBA) to be awarded by G.G.S.I.P. University, Delhi by Sweta
gautam , Enrolment No. 0108003917 has been completed under my guidance and is
Satisfactory.

Date: Signature of the guide

Ms. Sanober Khan
Designation: Professor

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 AKNOWLEDGEMENT

This report is a synergic product of many minds. I am grateful for the inspiration and wisdom
of many people for their insights and encouragement. I cannot possibly mention the names of
all the people who have enriched and improved my thinking through their conversations, but
without their names of some people this project report would not be possible. This report has
been analyzed and sharpened by their intellectual process. I would like to thank my faculty
guide, Prof. Sanober Khan, who helped me in carrying ahead the project and provided
valuable suggestions and guidance during the whole project. Her perspective has encouraged
me to incorporate a different dimension to the project

SWETA GAUTAM

MBA- IV SEM

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 TABLE OF CONTENT

S.No Topic Page No.

Introduction
1.
-Objective of the study 6-17

- Companies profile

2. Literature Review 18-33

3. Research Methodology 34-35

4. Data Analysis and Interpretation 36-56

5. Recommendations and Suggestions 57-59

6. Conclusion 60-61

7. Annexure 62-68

8. Bibliography 69

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 EXECUTIVE SUMMARY

Performance appraisal is a systematic and objective way of judging the relative worth of
ability of an employee in performing his/her task. It helps to identify
those who are performing their assigned tasks well and those who are not and the reasons for
such performance. Performance Appraisal is the systematic evaluation of the performance of
employees and to understand the abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which are as follows: 1. The
supervisors measure the pay of employees and compare it with targets and plans. 2. The
supervisor analyses the factors behind work performances of employees. 3. The employers
are in position to guide the employees for a better performance. 4. An annual review of an
employee’s overall contributions to the company by his/her manager. Performance appraisal
is a method of evaluating the job performance of an employee. It is an ongoing process of
obtaining, researching, analyzing and recording information about the worth of an employee.
Performance appraisals, also called annual reviews, evaluate an employee’s skills,
achievements and growth, or lack thereof. Companies use performance appraisals to give
employees big-picture feedback on their work and to justify pay increases and bonuses, as
well as termination decisions.
The main objective of performance appraisals is
 To measure and improve the performance of employees
 To increase their future potential and value to the company
 To providing feedback, improving communication, understanding training needs,
 To clarifying roles and responsibilities and determining how to allocate rewards.
The performance appraisal is the process of assessing employee performance by way of
comparing present performance with already established standards which have been already
communicated to employees, subsequently providing feedback to employees about their
performance level for the purpose of improving their performance as needed by the
organisation. As said above the very purpose of performance uprising is to know performance
of employee, subsequently to decide whether training is needed to particular employee or to
give promotion with additional pay hike. Performance appraisal is the tool for determining
whether employee is to be promoted, demoted or sacked (remove) in case of very poor
performance and no scope for improvement.

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 CHAPTER- 1

INTRODUCTION

1.1 PERFORMANCE APPRAISAL

A performance appraisal has been defined as any personnel decision that affects the status of
employee regarding their retention, termination, promotion, transfer, salary increase or
decrease, or admission into a training program.
Performance appraisal is a systematic evaluation of present and potential capabilities of
personnel and employees by their superiors, or a professional from outside. It is a process of
estimating or judging the value, excellent qualities or status of a person or a thing. It is a
process of collecting, analyzing, and evaluating data relative to job behavior and results of
individuals. The appraisal system is organized on the principle of goals and management by
objectives. Management decisions on performance utilize several integrated inputs: goals and
plans, job evaluation, performance evaluation, and individual history.
Performance appraisal can be either formal or informal. Formal system is used for schedule
regular sessions in which an employee’s performance is discussed. Informal appraisals are
unplanned, often just chance statements made in passing about an employee’s performance.
Most organizations use a formal appraisal system. Some organization use more than one
appraisal system for different types of employees or for different appraisal purposes.
Organizations need to measure employees performance to determine whether acceptable
standards of performance are being maintained. The six primary criteria on which the value
of performance may be assessed are: quality, quantity, timeliness, cost effectiveness, need for
supervision, and interpersonal impact. The trend nowadays is in the direction of attempting to
measure what the man does rather than what he is- to measure what is the output rather than
what is the input. The observations and understanding of the performance appraisal process
helped reduce a monumental task into something much more manageable.

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 Performance Appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.
Performance appraisals are essential for the effective management and evaluation of staff.
Appraisals help develop individuals, improve organizational performance, and feed into
business planning. Formal performance appraisals are generally conducted annually for all
staff in the organization. Each staff member is appraised by their line manager. Directors are
appraised by the CEO, who is appraised by the chairman or company owners, depending on
the size and structure of the organization.
Annual performance appraisals enable management and monitoring of standards, agreeing
expectations and objectives, and delegation of responsibilities and tasks. Staff performance
appraisals also establish individual training needs and enable organizational training needs
analysis and planning.

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 Performance appraisals also typically feed into organizational annual pay and grading
reviews, which commonly also coincide with the business planning for the next trading year.
Performance appraisals generally review each individual's performance against objectives
and standards for the trading year, agreed at the previous appraisal meeting.
Performance appraisals are also essential for career and succession planning - for individuals,
crucial jobs, and for the organization as a whole.
Performance appraisals are important for staff motivation, attitude and behavior development,
communicating and aligning individual and organizational aims, and fostering positive
relationships between management and staff.
Performance appraisals provide a formal, recorded, regular review of an individual's
performance, and a plan for future development.
Job performance appraisals - in whatever form they take - are therefore vital for managing the
performance of people and organizations.
Managers and appraises commonly dislike appraisals and try to avoid them. To these people
the appraisal is daunting and time-consuming. The process is seen as a difficult
administrative chore and emotionally challenging.

Are performance appraisals still beneficial and appropriate……….??

It is sometimes fashionable in the 'modern age' to dismiss traditional processes such as
performance appraisals as being irrelevant or unhelpful. Be very wary however if considering
removing appraisals from your own organizational practices. It is likely that the critics of the
appraisal process are the people who can't conduct them very well. It's a common human
response to want to jettison something that one finds difficult. Appraisals - in whatever form,
and there are various - have been a mainstay of management for decades, for good reasons.
Think about everything that performance appraisals can achieve and contribute to when they
are properly managed, for example:
 performance measurement - transparent, short, medium and long term
 clarifying, defining, redefining priorities and objectives
 motivation through agreeing helpful aims and targets
 motivation though achievement and feedback
 training needs and learning desires - assessment and agreement
 identification of personal strengths and direction - including unused hidden strengths
 career and succession planning - personal and organizational

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 team roles clarification and team building
 organizational training needs assessment and analysis
 appraise and manager mutual awareness, understanding and relationship
 resolving confusions and misunderstandings
 reinforcing and cascading organizational philosophies, values, aims, strategies, priorities, etc
 delegation, additional responsibilities, employee growth and development
 counseling and feedback
 manager development - all good managers should be able to conduct appraisals well - it's a
fudamental process

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1.2 OBJECTIVES OF THE STUDY

This report is based on the project “Performance Appraisal Technique: A Comparative

Study”.

1) To ascertain the effectiveness of Performance Appraisal methodology used in HCL,

HSS and POLARIS.

2) To study and compare the Performance Appraisal Techniques and measures the
satisfaction level of the employees with the Performance Appraisal Techniques HCL,
HSS and POLARIS.

1.3 In brief, the main purposes of performance appraisal are:

-To review past performance;

-To assess training needs;
-To help develop individuals;
-To audit the skills with in organization;
-To set targets for future performance;
-To identify potential for promotion.
In short, the performance appraisal of an organization provides systematic judgments
to backup wage and salary administration; suggests needed changes in one’s behavior,
attitudes, skills, or job knowledge; and uses it as a base for coaching and counseling the
individual by his superior. Appraising employee performance is useful for compensation,
placement, and development purposes.

The topic chosen Performance appraisal was aimed for the betterment of the organization in
terms of quality as well as quantity. The scope of the study under mentioned points depicts
the same.
1. To increase the productivity by increasing the level of performance.
2. The programme would help the organization in meeting it future personal need.
3. The programme will help the employee in their personal group by improving their
knowledge as well as skill.

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4. To understand the Performance Appraisal activities of the company.
5. To find out if the Performance Appraisal activities help the employee inhis performance.
6. Take the response of employees towards the Performance Appraisal activities carried on
upon them

1.4 Scope of the Study

This project was undertaken to know the extent to which the employees of HCL.HSS and
POLARIS, are satisfied and happy with their performance appraisal system and
environment which exist in that organization.

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 1.5 COMPANY PROFILE
HCL Info systems

HCL Info systems Ltd. is India's premier information enabling company. Products & services
include Computers, Laptops, Servers, Storage, Enterprise Networking, Copiers, and Digital
Projectors & Communication Devices. This is backed by HCL's service support infrastructure
- the widest in the country
HCL has developed and implemented solutions for multiple market segments, across a range
of technologies in India. We have been in the forefront in introducing new technologies and
solutions.
HCL philosophy is, "what gets measured, gets reviewed and what gets reviewed, gets
improved” HCL has a Performance Tracking System, a daily to weekly to monthly to
quarterly review system. This is done through tracking enablers and results. This leads to
customer satisfaction (both internal and external), people satisfaction and business growth.

HCL's belief for holistic quality improvement is realized through the adoption of 360 Degree
Feedback. It shares a reciprocal relationship with various processes facilitating continuous
improvements in areas such as selection, career planning, goal setting, reward schemes and
culture.
Assessments in HCL are not just for improvement and development, but are also well
recognized and rewarded.

Culture
HCL believes in "Leadership built on Trust". HCL has an open and entrepreneurial
environment. HCL are synonymous with passion for performance, high need for achievement

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and commitment to job. A core value of high integrity with a Never-Say-Die approach is
ingrained and visible in their people, practices and processes.
Their philosophy of Celebrating Competition and a Caring Management, is apparent in our
efforts to maintain the quality of work life and a balance of personal / professional life
through fun at work.

Hughes Software Systems Limited (HSS):

Hughes Software Systems Limited (HSS) was incorporated in India on 30th December
1991 with Hughes Network Systems (HNS), a unit of Hughes Electronics Corporation
(HUGHES), USA. HUGHES, a world-leading provider of digital television entertainment,
broadband services, satellite-based private business networks, and video and data
broadcasting, reported revenues of $8.9 billion in 2002. HNS, a unit of HUGHES, is the
world's largest provider of broadband satellite network solutions for businesses and
consumers, with over 400,000 systems installed in more than 85 countries.

With the opening of the Indian economy in the early nineties, HUGHES was attracted by the
long-term potential of outsourcing software development and chose to set up a subsidiary in
India to supplement HNS' R&D efforts.HSS began its operations in New Delhi with a team
of about 20 professionals and was initially focused on developing software solutions in the
areas of VSAT-based networks for voice and data, cellular wireless telephony, packet
switching and multi-protocol routing. Within three years, HSS grew to 240 professionals and
in 1995, shifted to its present campus at ElectronicCity, Gurgaon, aNew Delhi suburb. Today,
over 2100 professionals work on cutting edge technologies at six state-of-the-art facilities
near New Delhi, Bangalore, India's Silicon Valley and Nuremberg, Germany.

At HSS our people practices focus on personal and professional development to dynamically
align individual goals with organizational objectives. This credo and the innovative practices
that have evolved from it, have earned HSS the recognition of being counted among the top
twenty five employers in India in a Business Today-Hewitt Associates survey.

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HSS also won the coveted CIO Award 2001 for the usage of Information Technology in
Human Resource Management. The award was in recognition of HSS' initiatives in using IT
to create and drive its people practices.
The CIO Awards instituted by Technology Media Group's CIO magazine is a recognition for
companies that have demonstrated innovation in areas like - creation of new technology
offerings for significant benefits in the market place, refining, redefining and improving
relationships with outside technology partners and creation of internal processes for
continued success of the organization.

At HSS we bring together the best people and the best ideas. To show how much we value
our employees' contributions, we offer some of the best rewards in the industry - a
comprehensive package that adds up to a lot more than just a paycheck.
Company Lease for Residential Accommodation
Car Plan
Medical Insurance Policy
Provident Fund
Gratuity

Internal Job Posting Program (IJPP)

Policy on Self Development

The company encourages employees to undertake educational programs to enhance their

professional skills. Employees who want to undertake further studies may discuss their
educational plan with their supervisor and the HR team. An employee becomes eligible for
the same after one year of employment at HSS.

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 Polaris Software

Polaris Software, a leading global provider of financial Technology Solutions and offshore IT
Services, is a debt free and a cash rich company with a cash reserve of over $20 million.
The blend of industry-leading products, domain knowledge, project management skills and
extensive experience has helped Polaris deliver complete solutions that can help
organizations improve quality of service while building customer loyalty. Some of the most
successful financial services firms have partnered with Polaris to optimize their technology
investment, saving millions of dollars over the course of the relationship.
Polaris’ product suite offers comprehensive solutions that can be seamlessly integrated into
the existing systems and technologies of any financial institutions. Polaris offer solutions for
all domains - corporate banking, retail banking, trade finance, credit/risk management, cash
management, treasury management, lending, investments and securities mutual funds, credit
cards and insurance.

Polaris is the world’s first CMMi Level 5 company. Its physical and information security
practices meet the stringent security standards of the world’s top financial firms like
Citigroup and AIG.
With 4500 employees, 22 offices in 13 countries, 6 Software engineering Centers in India and
a Business Continuity Center in Singapore, Polaris is right sized for providing maximum
value to its customers.
Passion for excellence in people practices is primarily fuelled by their belief in the power of
peopleware. People Practices are constantly geared towards providing our associates with
terrific work environment, unlimited scope for personal growth, tremendous learning
opportunities, opportunity to work in cutting edge technologies, empowerment to charter
their own careers, and excellent rewards.

Lakshya Movement
Polaris prides itself, as a Lakshya-driven Organization. Lakshya is one of the most powerful
mechanisms that we have evolved for the organizational goal setting process. The most
remarkable feature of the Lakshya process is that all associates of Polaris are involved in this
process of organizational introspection and collective visioning. Every year, from the past 5

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years, teams across the organisation come together for brainstorming sessions and contribute
to the refinement of growth strategies.

Lakshya happens in three stages: pre-Lakshya, Lakshya and post-Lakshya

Pre-Lakshya - Open-Space Workshops with Process Facilitation done by the CEO and
Business Leadership Team. Discussion on challenges and vision for the next 3 to 5 years is
held.

Lakshya- This is a 3-day off-site exercise involving Konarks and Top Management
participation. Leading Management Consultants too invited. Pre-Lakshya inputs are carried
forward to Lakshya. The energy and passion unleashed at this event defies description
Momentous and Path-Breaking Business Decision taken here.

Post-Lakshya- It’s all about communicating the vision back to the people.It completes the
Process of Bottom-Up self-examination.

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 IMPORTANCE OF STUDY

-To estimate the overall effectiveness of employees in performing their jobs,

-To identify strengths and weakness in job knowledge and skills,
-To determine whether a subordinate’s responsibilities can be expended,
-To identify future training and development needs,
-To review progress toward goals and objectives,
-To determine readiness for promotion,
-To motivate and guide growth and development.

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 CHAPTER-2

LITERATURE REVIEW

Performance appraisal is a systematic evaluation of present and potential capabilities of

personnel and employees by their superiors, or a professional from outside. It is a process of
estimating or judging the value, excellent qualities or status of a person or a thing. It is a
process of collecting, analyzing, and evaluating data relative to job behavior and results of
individuals. The appraisal system is organized on the principle of goals and management by
objectives. Management decisions on performance utilize several integrated inputs: goals and
plans, job evaluation, performance evaluation, and individual history.
Performance appraisals also typically feed into organizational annual pay and grading
reviews, which commonly also coincide with the business planning for the next
trading year. Performance appraisals generally review each individual's performance
against objectives and standards for the trading year, agreed at the previous appraisal
meeting. Performance appraisals are important for staff motivation, attitude and
behavior development, communicating and aligning individual and organizational
aims, and fostering positive relationships between management and staff
.Performance appraisals provide a formal, recorded, regular review of an individual's
performance, and a plan for future development.

2.1 Types of Performance Appraisal system

Types of Performance Appraisal- There are two types of performance appraisal systems
which are commonly used in organizations:
1. Close ended appraisal system, and
2. Open ended appraisal system.

1. Close ended appraisal system- This system commonly used in

Government organizations and public enterprises, and a confidential report is submitted on
the performance of the employee in the organization. The main shortcoming of this system is
that an individual is not informed about his/her inherent strengths and weakness and,
therefore, is not given an opportunity to respond to the assessment made on him/her.

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 2. Open ended appraisal system- In this system, the performance of the individual is
discussed with him, and he is ranked in a five or ten point rating scale. The company used
this tool primarily for rewarding a good performer or for other considerations like
promotions. The main weakness of this system is that all the employees are ranked in
particular scale, and whereas the good performers are rewarded, there is no concerted effort
to motivate the average performer in performing better. Another weakness of the grading
system is that the appraisal may turn out to be more subjective in nature due to insufficient
data maintained on the individual.

2.2 Methods of Performance Appraisal

It has classified into two groups:

1. Traditional Performance Rating
2. Result-Oriented Appraisal

1. Traditional Performance Rating Method-

A. Graphic Rating Scales method- In this method employee are rated on a scale,
usually from 1 to 10, on traits and/or behavior such as intelligence, neatness, and quantity of
work accomplished. The term used to define the oldest and most widely used performance
appraisal method. The evaluators are given a graph and asked to rate the employees on each
of the characteristics. The number of characteristics can vary from one to one hundred.
The rating can be a matrix of boxes for the evaluator to check off or a bar graph where the
evaluator checked off a location relative to the evaluators rating.

B. Simple ranking method- the oldest and simplest method of performance appraisal is to
compare one man with all other man and place him in a simple rank order. In this way
ordering is done from the best to worst on their perceived performances. The term ranking
has been used to describe an alternative method of performance appraisal where the
supervisor has been asked to order his or her employees in terms of performance from highest
to lowest. The method is both simple and natural but its disadvantages are:
1. It is highly subjective,

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2. Comparison of the various components of a person’s performance is not done. People are
compared as a whole,
3. The magnitude of differences in ability between ranks is not equal and different position. For
instance, the differences in ability between the fifth and sixth individual may be much greater
in absolute terms then the differences between the sixth and seventh. In terms of ranks,
however, the differences between these individual is the same.
4. Its use is difficult in large groups when the rater cannot compare several people
simultaneously. As an answer to this problem the paired comparison method of ranking has
been evolved. In this method the rater compares each man in his groups with every other
man, with the final ranking of each worker determine by the number of times he was judged
better than the other. The number of comparisons involved in this method is thus vary large
and can be determined by the following formula:
Number of comparison= N (N-1) /2, where N stands for the no. of man to be rated.

C. Forced choice method- This method combines rating with scoring system and requires
the evaluator to choose among descriptions of employee behavior-scored according to a key.
This appraisal method has been developed to prevent evaluators from rating employees to
high. Using this method, the evaluator has to select from a set of descriptive statements that
apply to the employee. The statements have been weighted and summed to at, effectiveness
index. In this manner bias is removed from the appraisal process. In a research study, it was
found that the use of forced-choiced scale effectively eliminated the leniency error while the
use of a graphic scale format enabled bias to be introduced. There are certain disadvantage of
the forced-choice scaling, and because of these disadvantages, its use is not widespread.

D. Weighted Checklist method-This term used to describe a performance appraisal method

where supervisors or personnel specialists familiar with the jobs being evaluated prepared a
large list of descriptive statements about effective and ineffective behavior on jobs. The
method has the advantages of requiring only a reporting of facts from the rater. Since the
values assigned to different statements do not appear on the list, the rater does not know how
highly he has rated a giving individual. The objections to this method are:
 It is difficult to construct a good check-list,

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 A separate check-list is needed for each job because statements used in one check-list to
evaluate one category of workers cannot be used in another check-list to evaluate other
category of workers.
 Since the rater does not know the value given to different statements, he may resent the
system as a whole and may not give it his whole-hearted support
E. Critical incidents- This technique of performance appraisal was developed by Flanagan
and Burns. Under this procedure raters identify critical positive and negative employee’s
performance (Behaviorally anchored rating scales can be derived from these). The term used
to describe a method of performance appraisal that made lists of statements of very effective
and very ineffective behavior for employees. The lists have been combined into categories,
which vary with the job. Once the categories had been developed and statements of effective
and ineffective behavior had been provided, the evaluator prepared a log for each employee.
During the evaluation period, the evaluator recorded examples of critical behaviors in each of
the categories, and the log has been use to evaluate the employee at the end of the evaluation
period.

F. Forced Distribution- The term used to describe an appraisal system similar to grading on
a curve. The evaluator had been asked to rate employees in some fixed distribution of
categories. One way to do this has been to type the name of each employee on a card and ask
the evaluators to sort the cards into piles corresponding to rating.

G. Paired Comparison-The term used to describe an appraisal method for ranking

employees. First, the names of the employees to be evaluated have been placed on separate
sheets in a pre-determined order, so that each person has been compared with all other
employees to be evaluated. The evaluator then checks the person he or she felt had been the
better of the two on the criterion for each comparison. Typically the criterion has been the
employees over all ability to do the present job. The number of times a person has been
preferred is tallied, and the tally developed is an index of the number of preferences
compared to the number being evaluated.

H. Field Review- When there is reason to suspect rater bias or when some raters appear to be
using higher standards than others, graphic ratings are often combined with a systematic
review process. The field review is one of several techniques for doing this. The personnel

21
 officer meets 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 of the standards
similarly. This method is not widely used because supervisors generally what they consider
the staff interference. The process is also very time-consuming.
I. Narrative or Essay Evaluation- The technique is very common for appraising individuals
for professional positions. In these method employees performances are described in essays.
This appraisal method asked the evaluator to describe strengths and weaknesses of an
employee's behavior. The biggest drawback of this technique is the variability of account, in
length and content. Hence it is difficult to compare two of account essay appraisals. Some
companies still use this method exclusively, whereas in others, the method has been
combined with the graphic rating scale.
2. Result-Oriented Appraisal

The result-oriented appraisals are based on the concrete performance targets which
are usually established by superior and subordinates jointly. This procedure has been known
as Management by Objectives (MBO).

A) Management by Objectives (MBO) - According to the Dr. George S.

Odiorne“Management by objectives is a process whereby the superior and subordinates
managers of an organization jointly identify its common goals, define each individual’s
major areas of responsibility in terms of the results expected of him, and use these
measures as guides for operating the unit and assessing the contribution of each of its
members.”
In other words, this appraisal method has worked to eliminate communication problems by
the establishment of regular meetings, emphasizing results, and by being an ongoing process
where new objectives have been established and old objectives had been modified as
necessary in light of changed conditions. MBO in essence involves the setting out clearly
defined goals of an employee in an agreement with his superior. Carroll and Tosi (1973), in
an extensive account of MBO, note its following characteristics:
 The establishment of organizational goals
 The setting of individual objectives in relation to organizational goals.
 A periodic review of performance as it relates to organizational goals

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  Effective goal-setting and planning by top management
 Organizational commitment
 Mutual goal-setting
 Frequent individual performance reviews
 Some freedom in developing means of achieving objectives.

The MBO has been designed to overcome certain inherent problems of traditional appraisal
systems. It really constitutes a new way of managing. Its major goal is to enhance the
superior-subordinate relationship, strengthen the motivational climate, and improve
performance. It helps to improve managerial performance and effectiveness. It provides a
workable framework to the manager within which he can make decision which are in the best
interests of the organization. The key concepts of MBO are emphasis on results, participation,
human relations, and a regular review system. For the successful implementation of MBO,
proper planning and preparation are required. To achieve success with MBO, it is necessary
to have top management’s full support and commitment, a realistic time-frame for
implementation, adequate training of people who would be involved in the process, and a
proper understanding of the role of MBO.

BENEFITS OF MBO

MBO has many benefits, since it:

 Provides a way for measuring objectively the performance of sub-ordinates.
 Co-ordinates individual performance with company goals.
 Clarifies the job to be done and define expectations of job accomplishment.
 Improves superiors’ sub-ordinates relationships through a dialogue that takes place regularly.
 Fosters increased competence, personal growth and opportunity for career development.
 Aids in effective overall planning system.
 Supplies a basis for more equitable salary determination especially incentive bonuses.
 Develops factual data a promotion criterion.
 Stimulates self motions, self discipline and self controlled.
 Serves as a device for integration of many management functions.

MBO has certain potential problems, as such:

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 It often lacks the support and commitments of top management.
 Its objectives are often difficult to establish.
 Its implementation can create excessive paperwork if it is not closely monitored.
 It concentrates too much on the short run at the expense of long-range planning.
 It may lead to excessive time-consuming.
Organizations are increasingly taking resource to newer initiatives for tracking performance
and measuring it against predetermined objectives, key results areas.

B) 360° Performance Evaluation

The 360-degree evaluation is a common tool in human resource management. Simply put, it
is An mechanism for evaluating someone's performance based on feedback from everyone
with whom the individual comes in contact—supervisors, coworkers, partners, subordinates,
the general public. It is a method of collecting input from many sources in an employee's
environment.
This can be a powerful tool. Each of wants to know how we're doing in our work. This
method of collecting evaluative input is an excellent source of motivation for employees
because it provides a truly honest assessment of how the employee and her performance are
viewed by a variety of constituents.
The 360-degree method uses confidential input from many people who can truly respond to
how an employee performs on the job. The supervisor and employee meet to discuss the
feedback received.

This type of feedback helps employees see themselves as others see them and allows them to
seriously examine their behavior. It can reveal areas in which employees are performing
particularly well and those areas in which there is room for improvement. It provides
information of which neither the employee nor the supervisor may be aware. Specific input
allows employees to adjust their performance.
The most challenging aspect of the 360-degree evaluation is the evaluators' concern about
confidentiality. When implementing this type of evaluation, it's best to assure other
employees that what they share will remain strictly confidential. Likewise, explain to each
employee that he will be evaluated by many people, including those who know his work best.
This review process is also helpful for the supervisor. It can provide a more accurate
assessment of an employee's performance and help eliminate accusations of favoritism. The

24
 360-degree process provides greater objectivity. And because the feedback is submitted
anonymously, it provides a supervisor with the most unbiased and accurate information from
which to draw performance conclusions.
Most people are not able to see clearly how their performance is either enhancing the work
situation for others or detracting from it. This performance evaluation method can help reveal
these areas and allow us to improve the way we do our job, thereby creating greater harmony
and better productivity in the workplace. The 360-degree evaluation will help employees
identify their strengths so they can build on them at the same time it addresses their skill
gaps. It is a process that leads to continuous learning, team building, growing self-confidence
and improved productivity.
Sounds like a winning system, right? It can be, but your organization must be ready to accept
the change from the traditional method of employee evaluation. Your formal and informal
leaders must buy in to this idea and see the value of its adoption.

360-Degree feedback:
In human resources or industrial/organizational psychology, 360-degree feedback, also
known as “multi-rater feedback“, “multi-source feedback”, or “multi-source
assessment“, is feedback that comes from all around an employee. “360″ refers to the 360
degrees in a circle, with an individual figuratively in the center of the circle. Feedback is
provided by subordinates, peers, and supervisors. It also includes a self-assessment and, in
some cases, feedback from external sources such as customers and suppliers or other
interested stakeholders. It may be contrasted with “upward feedback”, where managers are
given feedback by their direct reports, or a “traditional performance appraisal,” where the
employees are most often reviewed only by their managers.

 Increases self-knowledge
 Encourages continuous learning
 Stimulates individuals to enhance their strengths
 Identifies areas that need development
 Provides guidance for positive change
 Supports coaching and mentoring initiatives

25
2.3 The Performance Appraisal Process

Process of performance appraisal followed by different companies is different. A general

procedure is explained below with the help of a diagram:

1. Setting performance standards

In this very first step in performance appraisal the HR department decides the standards of
performance i.e. they decide what exactly is expected from the employee for each and every
job. Sometimes certain marking scheme may be adopted eg. A score 90/100 = excellent
performance, a score of 80/100 = good. And so on.

2. Communication standard set to the employee

26
Standards of performance appraisal decided in 1st step are now conveyed to the employee so
that the employee will know what is expected from him and will be able to improve his
performance.

3. Measuring performance

The performance of the employee is now measure by the HR department, different methods
can be used to measure performance i.e. traditional and modern method. The method used
depends upon the company’s convenience.

4. Comparing performance with standard

The performance of the employee is now judged against the standard. To understand the
score achieved by him. Accordingly we come to know which category of performance the
employee falls into i.e. excellent, very good, good, satisfactory etc.

5. Discussing result

The results obtained by the employee after performance appraisal are informed or conveyed
to him by the HR department. A feedback is given to the employee asking him to change
certain aspects of his performance and improve them.

6. Collective action

The employee is given a chance or opportunity to improve himself in the areas specified by
the HR department. The HR department constantly receives or keeps a check on the
employee’s performance and notes down improvements in performance.

7. Implementation and review

The performance appraisal policy is to be implemented on a regular basis. A review must be

done from time to time to check whether any change in policy is required. Necessary changes
are made from time to time.

27
2.4 Best Practices in Performance Appraisals

The most important things to remember when developing a performance evaluation system
include the following:

1. Make sure the evaluation has a direct relationship to the job. Consider developing specific
criteria for each job, based on the individual job specifications and description.
2. Involve managers when developing the process. Garner their feedback to obtain “buy-in”
for the process.
3. Consider involving the employee in the process by asking the employee to fill out a self-
evaluation.
4. Use a variety of methods to rate and evaluate the employee.
5. Avoid bias by standardizing performance evaluations systems for each job.
6. Give feedback on performance throughout the year, not just during performance review
times.
7. Make sure the goals of the performance evaluation tie into the organizational and
department goals.
8. Ensure the performance appraisal criteria also tie into the goals of the organization, for a
strategic HRM approach.
9. Review the evaluation for each job title often, since jobs and expectations change.

28
Best Practices in Performance Appraisals

29
Performance Review System

30
 2.5 Expectations of a Manager in doing a Performance Appraisal

The following is typically expected from company managers when doing performance
appraisals:
1. Translate organizational goals into individual job objective.
2. Communicate management's expectations regarding employee performance.
3. Provide feedback to the employee about job performance in light of management's objectives.
4. Coach the employee on how to achieve job objectives/requirements.
5. Diagnose the employee's strengths and weaknesses.
6. Determine what kind of development activities might help the employee better utilize his or
her skills improve performance on the current job.

2.6 Manage Employee Performance With The Performance Management Cycle

The Performance Management Cycle helps you put it all together and let you know if there
are any gaps in the system.

It considers your interaction with employees when they first join the business. It also includes
ways to keep staff motivated, developed and loyal to the business in the long term.

31
Here is a brief description of how you can manage each of the factors in the performance
management cycle to help your employees reach their full potential at work:

Goal Setting

At the start of the review period, take the time to set SMART goals with your employee.
These are Specific, Measureable, Achievable, Relevant and Time-framed. For example, a
goal might be to "lose weight". A Smarter goal could be to "lose 1 kilo a week for 8 weeks".

Learning

Build in lots of opportunities for your employees to learn over the review period. Learning
can take place in many ways, not just through offsite training courses. Offer project work,
short-term transfers, involvement in multi- disciplinary teams, distance learning and so on.

Employee Development

Discuss short term and long term career plans with your employees, so that you can invest
now for the future. Not all employees want to get on the career ladder, but most would
appreciate some form of change to keep them motivated and challenged.

Feedback

Employees I meet with regularly tell me they would appreciate more feedback on their
performance. Look out for opportunities to give positive feedback. Meet with your employee
on a regular basis to talk about how they are getting on and ask if anything is bothering them.
Ten minutes over coffee can be time well spent!

Coaching

Coaching involves an employee being supported by his/her manager to clarify and achieve a
specific goal. The employee owns the process so coaching can only occur when the employee
is willing to participate.

32
Mentoring

Mentoring involves a manager passing on his/her knowledge and expertise to an employee.

Typically, the employee has a mentor who is at management level but not directly involved in
his or her work area, so that issues can be discussed in an impartial and confidential manner.

33
 CHAPTER-3

REASEARCH METHODOLOGY

The research was conducted on a sample size of 65 employees from HCL, HSS and Polaris.
The project is done based on three dimensions namely, company performance appraisal
system, supervision, and clarity of role of the employee. The techniques used in these
organizations were studied and analyzed and compared with that of Polaris.

The Research Design adopted is an exploratory one. Primary data was collected using a
feedback form, annual reports and online resources have been used as secondary data, and
these data has been analyzed and interpreted by using statistical and graphical
representations.

After analyzing the results we see that the appraisal technique used in HCL and HSS were not
on par with the system used in Polaris.

. Research Design:
A Research design is purely and simply the framework or plan for a study that guides the
collection and analysis of data. The survey research was used in this project, because
employees’ feedback was necessary for obtaining the data.
Since the project is being conducted in HCL, HSS and POLARIS on satisfaction level, in
the hope of new findings, we can conclude that this is an ‘Exploratory’ type of research.

Area of Information:
The study was to be done on certain specific area of information. These could be classified
into:
 Organizational System
 Supervision
 Role Clarity

The problem areas covered in the questionnaire were:

1. Organizational System – Questions (3, 5, 6, 10, 11, 12, 13, 14, 15, 17)
2. Supervision – Questions (1, 2, 9)

34
3. Role Clarity – Questions (7, 8, 16)
Organizational System, Supervision and Role Clarity, of the questionnaire are based on the
‘Likert Scale’ model.

Sample Size:
The survey was conducted in the organization, 25 respondent from each organization (HCL
and HSS) and 15 respondent from POLARIS were taken in this study.

Data collection method:

The research has been carried out using a combination of primary and secondary data. The
primary data was collected using telephonic interviews and a self administered
questionnaire. The secondary data has been collected through articles, magazines, reports,
journals, and newspaper and internet.

35
 CHAPTER-4
DATA ANALYSIS
AND
INTERPRETATION

Mean Values of Company's System

45 40.66
40 35.28
35 31.68
30
25
20
15
10
5
0
HCL HSS POLARIS
Companies

Description of the measure:

Organizational System is a standard 10 item measure designed to assess the extent that in
which organization’s employee are satisfied with their performance appraisal system.
Respondents indicate their extent of agreement on a 5 point scale (1=strongly disagree,
5=strongly agree), hence evaluation is on a scale of 10 to 50, with an average of 30, such
that a high score indicates that the employees are satisfied with their organizational system
and a lower score indicates that they are not satisfied. In case, if the question shows negative
aspects, then the ranking order will be reverse.
From the above chart, it is evident that the measure of HCL’s performance appraisal system
is 31.68 which are just above (average-30) the average. HSS also has a very low score of
35.28, but that of Polaris is 40.66 which indicates that the company’ system is good for
employees instead of HCL and HSS and employees are satisfied with their system.

The Standard Deviation of the means is as follows

36
HCL = 2.52
HSS = 2.9
Polaris = 1.57

Mean Values of Supervision

11.6
12
10
10 9.08

0
HCL HSS POLARIS

Companies

Description of the measure:

Another dimension is Supervision which contains standard 3-item measure designed to

assess the extent that in which organization’s employee are satisfied with their supervision
which is given by manager/supervisor of the organization.
Respondents indicate their extent of agreement on a 5 point scale (1=strongly disagree,
5=strongly agree), hence evaluation is on a scale of 3 to 15, with an average of 9, such that
a high score indicates that the employees are satisfied with their supervision and a lower
score indicates that they are not satisfied.
Mean scores of all the employees is presented in the following graph. (The scale is in the
range of 3 to 15).
From the above chart, it is evident that the measure of HCL’s supervision 9.08 which are just
above (average-9) the average. HSS also has a low score of 10, but that of Polaris is 11.66
which indicates that the company’ supervision is very good for employees instead of HCL
and HSS and employees are satisfied with their supervision.
The Standard Deviation of the means is as follows
HCL = 1.57
HSS = 1.55
Polaris = 1.238
37
 Mean Values of Role Clarity
14 12
12 10.2
9.4
10
8
6
4
2
0
HCL HSS POLARIS
Companies

Description of the measure:

Role clarity is a standard 3-item measure designed to assess the extent that in which
organization’s employee are satisfied with their role in the organization.
Respondents indicate their extent of agreement on a 5 point scale (1=strongly disagree,
5=strongly agree), hence evaluation is on a scale of 3 to 15, with an average of 9, such that
a high score indicates that the employees are satisfied with their role in the organization and a
lower score indicates that they are not satisfied. Mean scores of all the employees is presented
in the following graph. (The scale is in the range of 3 to 15).
From the above chart, it is evident that the measure of HCL’s performance appraisal system
is 9.4 which are just above (average-9) the average. HSS also has a very low score of 10.2,
but that of Polaris is 12 which indicate that the employees are clear with their role.
The Standard Deviation of the means is as follows
HCL = 1.81 HSS = 1.13
Polaris = 1.8

38
 Mean Values of All Dimensions

76
64.26
66
55.48
56 50.16

46

36

26

16
HCL HSS POLARIS

Description of Results

The Sum of the means of all the three dimensions were taken and the result is as shown
above. This gives an indication of the overall effectiveness of the performance appraisal
system within the organizations.
When the three organizations are compared, Polaris has a higher rating of about 64.26 on a
scale of 16 to 80, where as HCL and HSS have scores of 50.16 and 55.48 respectively. This
shows that the appraisal system used in Polaris is more effective than HCL and HSS.

HCL HSS Polaris

Dimensions

Mean S.D. Mean S.D. Mean S.D

Company's System 31.68 2.52 35.28 2.9 40.66 1.57

39
Supervision 9.08 1.57 10 1.55 11.6 1.238

Role Clarity 9.4 1.81 10.2 1.13 12 1.8

Total 50.16 55.48 64.26

40
Analysis of the Questionnaire

Q.1 The annual appraisal helps me to perform my job better.

Table 1.1

1 2 3 4 5
HCL 0 36 16 48 0
HSS 0 36 8 56 0
PLRS 0 0 20 47 33

60
50
40 HCL
30 HSS
20 PLRS
10
0
1 2 3 4 5

Figure 1.1

the annual system chart of performance appraisal chart in HCL 48% agree,36%
disagree,16% can’t decide,0% strongly agree,0% strongly disagree, HSS system 56%
agree,36% disagree,8% can’t decide,0% strongly agree,0% strongly disagree, PLRS system
47% agree,0% disagree,20% can’t decide,33 % strongly agree,0% strongly disagree,

41
Q.2 The promotion/grading process at company is fair and transparent based on
performance appraisal

Table 1.2
1 2 3 4 5
HCL 0 0 24 76 0
HSS 0 0 16 64 20
PLRS 0 0 13 67 20

80
70
60
50 HCL
40 HSS
30 PLRS
20
10
0
1 2 3 4 5

Figure1.2

Promotion /Grading system performance appraisal chart in HCL 76% agree,0%

disagree,24% can’t decide,0% strongly agree,0% strongly disagree, HSS system 64%
agree,0% disagree,16% can’t decide,0% strongly agree,20% strongly disagree, PLRS system
67% agree,0% disagree,13% can’t decide,20 % strongly agree,0% strongly disagree,

42
Q.3 I am highly motivated in my current job

Table no 1.3

1 2 3 4 5
HCL 0 36 20 44 0

HSS 0 32 8 60 0

PLRS 0 0 20 53 27

70
60
50
HCL
40
HSS
30
PLRS
20
10
0
1 2 3 4 5

Figure 1.3

Motivated system in performance appraisal chart in HCL 44% agree,36% disagree,20% can’t
decide,0% strongly agree,0% strongly disagree, HSS system 60% agree,32% disagree,8%
can’t decide,0% strongly agree,0% strongly disagree, PLRS system 53% agree,0%
disagree,20% can’t decide,27 % strongly agree,0% strongly disagree,

43
Q 4 I think I will be looking to work somewhere else in the near future

Table no 1.4

1 2 3 4 5
HCL 0 40 0 60 0
HSS 0 36 4 60 0
PLRS 0 0 20 53 27

Figure no 1.4

Working system in performance appraisal chart in HCL 60% agree,40% disagree,0% can’t
decide,0% strongly agree,0% strongly disagree, HSS system 60% agree,36% disagree,4%
can’t decide,0% strongly agree,0% strongly disagree, PLRS system 53% agree,0%
disagree,20% can’t decide,27 % strongly agree,0% strongly disagree,

44
Q 5 Excellent performers should receive more than average performers

Table no 1.5
1 2 3 4 5
HCL 0 36 40 24 0
HSS 0 72 16 12 0
PLRS 27 47 13 13 0

80
70
60
50 HCL
40 HSS
30 PLRS
20
10
0
1 2 3 4 5

Figure no 1.5

average Excellent performance appraisal chart in HCL 24% agree,36% disagree,30 % can’t
decide,0% strongly agree,0% strongly disagree, HSS system 12% agree,72% disagree,16%
can’t decide,0% strongly agree,0% strongly disagree, PLRS system 13% agree,47%
disagree,13% can’t decide,0 % strongly agree,27% strongly disagree,

45
Q 6 I have limited opportunities to develop and progress in my career.

Table no 1.6
1 2 3 4 5
HCL 0 44 20 36 0
HSS 0 32 8 60 0
PLRS 0 13 20 33 33

70
60
50
HCL
40
HSS
30
PLRS
20
10
0
1 2 3 4 5

Figure no1.6

opportunity to develop performance appraisal chart in HCL 36% agree,44% disagree,20 %

can’t decide,0% strongly agree,0% strongly disagree, HSS system 60% agree,32%
disagree,8% can’t decide,0% strongly agree,0% strongly disagree, PLRS system 33%
agree,13% disagree,20% can’t decide,33 % strongly agree,0% strongly disagree

46
Q 7 For this company I enjoy working.

Table no 1.7
1 2 3 4 5
HCL 0 48 16 36 0
HSS 0 72 8 20 0

PLRS 27 53 20 0 0

80
70
60
50 HCL
40 HSS
30 PLRS
20
10
0
1 2 3 4 5

Figure no 1.7

Enjoyment working system performance appraisal chart in HCL 36% agree,48% disagree,16
% can’t decide,0% strongly agree,0% strongly disagree, HSS system 20% agree,72%
disagree,8% can’t decide,0% strongly agree,0% strongly disagree, PLRS system 0%
agree,53% disagree,20% can’t decide,0 % strongly agree,27% strongly disagree.

47
Q 8 I get all the training I need to do my job effectively

Table no 1.8
1 2 3 4 5
HCL 0 16 0 84 0

HSS 0 40 0 60 0
PLRS 0 0 20 47 33

100

80
HCL
60
HSS
40
PLRS
20

0
1 2 3 4 5

Figure no 1.8

Training assessment system performance appraisal chart in HCL 84% agree,16% disagree,0
% can’t decide,0% strongly agree,0% strongly disagree, HSS system 60% agree,40%
disagree,0% can’t decide,0% strongly agree,0% strongly disagree, PLRS system 47%
agree,0% disagree,20% can’t decide,33 % strongly agree,0% strongly disagree.

48
Q 9 I am clear about the definition of my job and the performance which is expected of me

Table no 1.9

1 2 3 4 5
HCL 0 36 8 56 0
HSS 0 12 0 88 0
PLRS 0 0 20 40 40

100

80
HCL
60
HSS
40
PLRS
20

0
1 2 3 4 5

Figure no 1.9

Clear definition system performance appraisal chart in HCL 56% agree,32 % disagree,8 %
can’t decide,0% strongly agree,0% strongly disagree, HSS system 88% agree,12%
disagree,0% can’t decide,0% strongly agree,0% strongly disagree, PLRS system 40%
agree,0% disagree,20% can’t decide,40 % strongly agree,0% strongly disagree.

49
Q 10 Are you satisfied the companies performance system

Table no 1.10

1 2 3 4 5
HCL 0 32 40 28 0
HSS 0 12 8 80 0
PLRS 0 0 20 40 40

100

80
HCL
60
HSS
40
PLRS
20

0
1 2 3 4 5

Figure no 1.10

Satisfaction systemof performance appraisal chart in HCL 28% agree,32% disagree,40 %

can’t decide,0% strongly agree,0% strongly disagree, HSS system 80% agree,12%
disagree,8% can’t decide,0% strongly agree,0% strongly disagree, PLRS system 40%
agree,0% disagree,20% can’t decide,40 % strongly agree,0% strongly disagree.

50
Q.11.-I have regular discussions with my manager/supervisor about my
Performanc eand my development.

Table no 1.11

1 2 3 4 5
HCL 0 44 8 48 0
HSS 0 32 8 60 0
PLRS 0 6.7 20 60 13

70
60
50
HCL
40
HSS
30
PLRS
20
10
0
1 2 3 4 5

Figure no 1.11

Based on the Supervision in performance appraisal chart in HCL 48% agree,44% disagree,8
% can’t decide,0% strongly agree,0% strongly disagree, HSS system 60% agree,32%
disagree,8% can’t decide,0% strongly agree,0% strongly disagree, PLRS system 60%
agree,6.7% disagree,20% can’t decide,13 % strongly agree,0% strongly disagree.

51
Q 12 I have confidence in my line managers’ ability to assess my performance effectively

Table no 1.12

1 2 3 4 5
HCL 0 40 12 48 0
HSS 0 28 12 60 0
PLRS 0 0 20 60 20

70
60
50
HCL
40
HSS
30
PLRS
20
10
0
1 2 3 4 5

Figure no 1.11

ability to access the Supervision performance in HCL 48% agree,40% disagree,12 % can’t
decide,0% strongly agree,0% strongly disagree, HSS system 60% agree,28% disagree,12%
can’t decide,0% strongly agree,0% strongly disagree, PLRS system 60% agree,0%
disagree,20% can’t decide,20 % strongly agree,0% strongly disagree.

52
Q 13 Company generally recognizes individual contribution to its success

Table no 1.13

1 2 3 4 5
HCL 0 40 24 36 0
HSS 0 20 20 60 0
PLRS 0 6.7 20 40 33

70
60
50
HCL
40
HSS
30
PLRS
20
10
0
1 2 3 4 5

Figure no 1.13

Individual contribution performance appraisal chart in HCL 36% agree,40% disagree,34 %

can’t decide,0% strongly agree,0% strongly disagree, HSS system 60% agree,20%
disagree,20% can’t decide,0% strongly agree,0% strongly disagree, PLRS system 40%
agree,6.7% disagree,20% can’t decide,33 % strongly agree,0% strongly disagree.

53
Q 14- I think my appraisal is conducted fairly

Table no 1.14

1 2 3 4 5
HCL 0 44 0 56 0
HSS 0 40 0 60 0

PLRS 0 0 27 40 33

70
60
50
HCL
40
HSS
30
PLRS
20
10
0
1 2 3 4 5

Figure no 1.14

Individual Fairly appraisal chart in HCL 56% agree,44% disagree,0 % can’t decide,0%
strongly agree,0% strongly disagree, HSS system 60% agree,40% disagree,0% can’t
decide,0% strongly agree,0% strongly disagree, PLRS system 40% agree,0% disagree,27%
can’t decide,33 % strongly agree,0% strongly disagree.

54
Q 15- My manager/supervisor is effective at communicating important issues that may
affect me or my job

Table no 1.15

1 2 3 4 5
HCL 0 40 32 28 0
HSS 0 32 20 48 0
PLRS 0 0 40 40 20

60
50
40 HCL
30 HSS
20 PLRS
10
0
1 2 3 4 5

Figure no 1.15

Supervisor communication issue appraisal chart in HCL 28% agree,40% disagree,32 % can’t
decide,0% strongly agree,0% strongly disagree, HSS system 48% agree,32% disagree,20%
can’t decide,0% strongly agree,0% strongly disagree, PLRS system 40% agree,0%
disagree,40% can’t decide,20 % strongly agree,0% strongly disagree

55
Q.16 I know and understand what the company’s strategicobjectives are.

Table no 1.16

1 2 3 4 5
HCL 0 24 12 64 0
HSS 0 0 16 84 0
PLRS 0 0 27 53 20

100

80
HCL
60
HSS
40
PLRS
20

0
1 2 3 4 5

Figure no 1.16

Supervision Strategic objects of appraisal chart in HCL 64% agree,24% disagree,12 % can’t
decide,0% strongly agree,0% strongly disagree, HSS system 84% agree,0% disagree,16%
can’t decide,0% strongly agree,0% strongly disagree, PLRS system 53% agree,0%
disagree,27% can’t decide,20 % strongly agree,0% strongly disagree

56
 RECOMMENDATION

After analyzing the collected data, the following recommendations were made to improve the
present performance review scenario in the organization.

 The performance appraisal system should be more performance oriented.

 Quarterly assessment of individuals should be done instead of yearly.
 Individual should be informed about the actual criteria on the basis of which his work
potential assessed.
 The appraisal system should provide two-way communication between the assessor and the
assesses.
 The salary structure of the employees should be revised timely as per the performance s.
 It should be more transparent in its working.
 Efforts should be made to reduce the chances of biasness.
 An employee’s appraisal should be discussed with him in order to remove his weaknesses.
 The HR policies should be clear to all employees i.e. the policies could be more result
oriented in approach.
 There should be uniformity of appraisal process in all departments.
 The employee’s interest should be taken in account while allocating the work department to
him.
 Data and information, which an employee enters in the appraisal form, should be correct and
authentic.
 Employee should take the entire discussion of feedback session positively and look at the
opportunity to improve.
 Prior to feedback and counseling session the manager should remember that the performance
appraisal is the most important thing for the employee.
 Appraisal system also gives the manager an opportunity to get a constructive feedback of
their own performances from their team members.
 The managers should not delay the discussions as it may lose value.
 The results of the performance rather than the personality traits should be given due weight.
 The existence of an atmosphere of confidence and trust should prevail between the supervisor
and employee.

57
 The supervisor should analyze the weaknesses and strengths of an employee and advice him
to take corrective measures.
 The appraisal program should be less time consuming and costly. It should be used as a
motivational tool.

58
 SUGGESTIONS

Some of the implications which could be deduced from this study are as follows:

 The results derived show the satisfaction level of the employees in these organizations.

 The result of HCL and HSS implies that even though the satisfaction level is favorable since
it is above average, but when compared with Polaris, it is very low.

 The satisfaction level gives an indirect indication of the effectiveness of the performance
appraisal system.

 This implies that 360 degree appraisal system is not too bad for a company, but it would be
better if companies would check whether this system is effective in their organization.

 Polaris uses a multiple performance appraisal system, different from HCL and HSS, and the
employees of Polaris were very much satisfied with their system.

59
 CONCLUSION

From the comparative analysis we find that the employees of the POLARIS are very much
satisfied instead of HCL, HSS. In both these companies, employees are not much satisfied
with their performance appraisal system which is existing in the organization.

In the analysis part all graphs shows that the both (HCL and HSS) companies have lower
rating rather than POLARIS. In some areas their rating is relatively high but most of the
areas show that the employees have some problem with their existing system, supervision
which is given by the managers/superiors and about their roles and performance.

HCL and HSS use 360-feedback for evaluation of performance of the individual. Adopted by
a growing number of organizations, 360-degree feedback is widely accepted as an effective
performance management tool. But new research shows that 360-degree feedback programs
may hurt more than they help. Unless everyone participating in a 360-degree program is
trained in the art of giving and receiving feedback, the process can lead to uncertainty and
conflict among team members. That doesn't necessarily mean 360-degree feedback programs
should be abandoned. But it does mean organizations should take a second look at their
performance management programs to see if they are accomplishing what they are supposed
to.
Through the process at which the organization is growing, gives unsatisfactory results at all
levels of the organization.360-degree suffers from various barriers, we cannot change the
whole organization’s process and routine tasks, but we can follow some strategies to improve
performance appraisal of the employees of the organization.
On the other side, POLARIS is using different kind of technique for evaluating
performance of the employee called “Lakshya”. When we compare 360-degree feedback to
Polaris’s “Lakshya” then we find that “Lakshya” is much better then 360-degree feedback.
“Lakshya” is a combined technique of performance appraisal.

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This research shows that the technique which is used by this company (POLARIS) is very
effective for the employees of this organization. Employees rely on their company’s system
and strength to cope with problems, and they feel free to interact or communicating with
manager/supervisor on important issues of the organization. Employees feel satisfied with
company’s system, with their jobs and roles in the organization.

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 ANNEXURE

Employee Performance Appraisal – Satisfaction Level Questionnaire

(Please be objective in your assessment. This research is meant for academic purpose
only and information given will be used for the same.)

Name (Optional): Designation:

Age: Gender: Male Female

Please indicate the extent to which you agree with the following statements.
1=Strongly Disagree 2=Disagree 3=Can’t Decide 4=Agree 5=Strongly Agree
S.No. 1 2 3 4 5

1. I have regular discussions with my manager/supervisor about my

performance and my development

2. I have confidence in my line managers’ ability to assess my performance

effectively

3. The annual appraisal helps me to perform my job better

4. Individual performance should influence to increase in his pay

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5. appraisal The promotion/grading process at company is fair and transparent
based on performance

6. I am highly motivated in my current job

7. I think my appraisal is conducted fairly

8. My manager/supervisor is effective at communicating important issues that may

affect me or my job

9. Company generally recognizes individual contribution to its success

10. I think I will be looking to work somewhere else in the near future

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11. Excellent performers should receive more than average performers

12. I have limited opportunities to develop and progress in my career

13. for this company I enjoy working

14. I get all the training I need to do my job effectively

15. I am clear about the definition of my job and the performance which is
expected of me

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16. I know and understand what the company’s strategic objectives are

Master
Chart

1=Strongly Disagree 2=Disagree 3=Can’t Decide 4=Agree 5=Strongly Agree

S
y
st
e
m

Question Question Questi

-3 -5 on-6

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

HCL 0 0 24 76 0 HCL 0 36 16 48 0 HCL 0 36 20 44 0

HSS 0 0 16 64 20 HSS 0 36 8 56 0 HSS 0 32 8 60 0

65
 2
PLRS 0 0 13 67 20 PLRS 0 0 20 47 33 PLRS 0 0 20 53 7

Question Questi
Qn-10 -11 on-12

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

HCL 0 40 0 60 0 HCL 0 36 40 24 0 HCL 0 44 20 36 0

HSS 0 36 4 60 0 HSS 0 72 16 12 0 HSS 0 32 8 60 0

3
PLRS 0 0 20 53 27 PLRS 27 47 13 13 0 PLRS 0 13 20 33 3

Question Questi
On = 13 -14 on-15

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

HCL 0 48 16 36 0 HCL 0 16 0 84 0 HCL 0 36 8 56 0

HSS 0 72 8 20 0 HSS 0 40 0 60 0 HSS 0 12 0 88 0

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 2 4
PLRS 7 53 20 0 0 PLRS 0 0 20 47 33 PLRS 0 0 20 40 0

Qn-17

1 2 3 4 5

HCL 0 32 40 28 0

HSS 0 12 8 80 0

PLRS 0 0 20 40 40

Supervisi
on
Question Question Questi
-1 -2 on-9

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

HCL 0 44 8 48 0 HCL 0 40 12 48 0 HCL 0 40 24 36 0

HSS 0 32 8 60 0 HSS 0 28 12 60 0 HSS 0 20 20 60 0

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 6. 3
PLRS 0 7 20 60 13 PLRS 0 0 20 60 20 PLRS 0 6.7 20 40 3

Feedback

Question Question Questi

-7 -8 on-16

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

HCL 0 44 0 56 0 HCL 0 40 32 28 0 HCL 0 24 12 64 0

HSS 0 40 0 60 0 HSS 0 32 20 48 0 HSS 0 0 16 84 0

2
PLRS 0 0 27 40 33 PLRS 0 0 40 40 20 PLRS 0 0 27 53 0

68
 BIBLIOGRAPHY

Books

Harper W Boyd, Jr. Ralph Westfall, Stanley F. Starch, ‘‘Marketing

Research (VII Edition)’’, AITBS Publications

1. Rao V. S. P. ‘‘Human Resource Management ’’, Excel Books, 1st

Edition, 2000

2. Tripathi P C, ‘‘Human Resource Development ’’, Sultan Chand

and Sons, 3rd Revised Edition, 2002

3. SARMA A. M., ‘‘Personal and Human Resource Management’’,

Himalaya Publishing house, 4th revised Edition, 2003

Magazines

Human Capital Magazine

Internet
www.hrresources.com
www.hclinfosystems.com
www.hssworld.com
www.polaris.co.in
www.hr-survey.com

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