A

DISSERTATION REPORT

On

“Study of EMPLOYEE PERFORMANCE APPRAISAL”

Submitted by

RESHMA ANKUSH PURI

Under the guidance of

Prof. SWATI VIJAY

Submitted to

SAVITRIBAI PHULE PUNE UNIVERSITY

In partial fulfilment of the requirement for the award of the degree

of

Master of Business Administration (MBA)

Through

RMD SINHGAD SCHOOL OF MANAGEMENT STUDIES, WARJE

PUNE

Year 2018-2
 Apino Technology

This is to certify that Mr. Reshma Ankush Puri student of MBA

of RMD sinhgad School of management studies, pune. Has successful
completed his summer internship program for the period of 21st
may 2019 to 31st july in Apino Technology. his topic for study was
“The study of Performance appraisal with ………………

During his training we found him to be extremely hardworking,

efficient and sincere.

We wish him all the best for future endeavors.

For

Office No. 7/8/9 Swami Smarth Complex,

Vikas Mitra Mandal Chowk, Karve Nagar, Pune- 411052
Phone: 9923343134
www.apino.in
________________

ACKNOWLEDGEMENT
I take this opportunity to express my acknowledgement and
deep sense of gratitude to the individuals for rendering
valuable assistance and guidance to me. Their inputs have
played a vital role in the success of this of this project.

I express my deep sense of gratitude to Prof. Stella Samuel for

giving me this opportunity to carry out this dissertation work
and generous support, constant direction and mentoring at all
stages of the project.

I am also grateful to my guide Dr. Swati Vijay, (Dean,

RMDSSOMS) who was a real source of help and assisted me
during the course of the project.

I firmly believe that there is always a scope of improvement; I

welcome your suggestions to further enrich the quality of this
project.

Name: Reshma Ankush Puri

Date:
Signature:

DECLARATION
I Ms. Reshma Ankush Puri , the undersigned hereby declare that the
Dissertation Report entitled “Study of Employee Performance
Appraisal”, is written and submitted by me to the University of Pune,
in partial fulfilment of the requirement for the award of degree of
“Master of Business Administration” under the guidance of Prof.
Stella Samuel and my work and the conclusions drawn therein are
based on the material collected by me.

Place: Signature:

Date: Reshma A. Puri.

 INDEX
CHAPTER NO CHAPTERS PAGE NO

1 INTRODUCTION

2 EXECUTIVE SUMMARY

2 COMPANY PROFILE

3 RESEARCH PROBLEM

4 SIGNIFICANCE OF THE STUDY

5 LITERATURE REVIEW

6 RESEARCH METHODOLOGY

7 CONCLUSION

8 SUGGESTIONS

9 FINDINGS

10 BIBLIOGRAPHY
 EXECUTIVE SUMMARY
Executive Summary:

In every organization getting right man for the right job is necessary. Every employee
is considered as an asset of the company. To manage employees and employee‟s
every needs it is necessary to have a HUMAN RESOURCE. An organization has
various departments out of which HUMAN RESOURCE DEPARTMENT is
considered most important.

The project titled “PERFORMANCE APPRISAL” undertaken in APINO

TECHNOLOGIES, India. Training need identification is a tool utilized to identify
what educational courses or activities should be provided to employees to improve
their work productivity. Here the focus should be placed on needs as opposed to
desires of the employees for a constructive outcome.

The prime objective of the project is to find the Training needs Identification and
analysis of employees working in APINO TECHNOLOGY. After the TNI and TNA
of the training requirements of the company, the Project speaks about 3 Department
which include Production, Finance, Sales, After Sales and Store and mentions about
the training program provided to them. Out of the total population of 125employees, I
have selected the sample size of 25 respondents for the study. The selected sample
size is 20% of the total population of the organization. The study helps to understand
the Technical & Behavioural Training for employees along with the effectiveness of
Training for the growth of the organization. A company conducts Training Needs
Identification at Team/Departmental level and Individual Level.

I also other than Training needs studied Employees personal record i.e. age,
education, experience in which the documents of the employees were verified.

Having studied all about the Training I decided to take the topic of PERFORMANCE
APPRISAL.
CHAPTER 1
 INTRODUCTION
DEFINITION :

“A performance appraisal is a systematic, general and periodic

process that assesses an individual employee's job performance and
productivity in relation to certain pre-established criteria and
organizational objectives.”

“A performance appraisal is a regular review of

an employee's job performance and overall contribution to a
company. Also known as an "Annual Review", "Performance Review
or Evaluation", or "Employee Appraisal". A performance
appraisal evaluates an employee's skills, achievements, growth and
weaknesses.”

Performance appraisal system is a useful management tool which

helps to gain feedback, review and estimate whether
the performance is effective or not and discuss what needs to be
done for it to become so. Performance appraisal allows you to
provide positive feedback as well as identifying areas for
improvement.

Performance Appraisal has three basic functions:

 To provide adequate feedback to each person on his or
her performance.
 To serve as a basis for modifying or changing behaviour toward
more effective working habits.
 To provide data to managers with which they may judge future
job assignments.

Characteristics of Effective Performance Appraisal:

All organizations have performance appraisal system for evaluating
employee performances and for their annual reports. But have we
looked into the performance appraisal system that we have
implemented is effective or not? We come across a lot of
performance management and appraisal systems with varied
features and high price tags.

Organizations should understand that performance appraisal

systems with varied features are not always effective. Certain
characteristics put together will make an effective performance
appraisal system.

Following are the characteristics of an effective performance

appraisal system:

 Objectives should be clear:

The objectives of appraisal should be clear and specific. An
effective performance system will always have specific appraisal
attributes to match the employee’s job description.
 Data should be valid and reliable:
An effective performance appraisal system provides data that is
consistent, reliable and valid. It supplies data according to the
objective that serves the purpose of performance appraisal
and succession planning.
 Performance criteria should be well defined:
Effective performance appraisal has standard appraisal forms,
rules, and appraisal procedures. It will have well-defined
performance criteria and standards.
 Economical and less time consuming:
Effective performance appraisal systems are designed to be
economical and less time consuming to bring maximum benefits.

 Should initiate follow up:

 A post appraisal talk should be arranged for employees to get
feedback from their managers. It also helps the organization to
learn about the problems and difficulties the employees might be
facing and discover suitable training.

Performance appraisal is one thing that not done properly can

harm the organization and the employees by creating conflicts. An
organization that has conflicting teams at work can never prosper.
Therefore, choosing an effective performance appraisal system is a
wise thing to do, and it is now easy with Synergita Software that
brings performance management closure to people and business.

CHAPTER 2
 RESEARCH PROBLEM

A central reason for the utilization of performance appraisal is

performance improvement (initially at the level of the individual
employee, and ultimately at the level of the organization). Other
fundamental reasons includes as a basis for employment decisions
(e.g. promotions, terminations, transfers), as criteria in research (e.g.
test validation), to aid with communication (e.g. allowing employees
to know how they are doing and organizational expectations) to
establish personal objectives for training programs.

For transmission of objective feedback for personal

development as a means of documentation to aid in keeping track of
decisions and legal requirements in wage and salary administration.
Additionally performance appraisal can aid in the formulation of job
criteria and selection of individuals "who are best suited to perform
the required organizational tasks".

A performance appraisal can be part of guiding and monitoring

employee career development. Performance appraisal can also be
used to aid in work motivation through the use of reward systems.

CHAPTER 3
 SIGNIFICANCE OF THE STUDY

Why Performance Appraisal ?

Definition

The performance appraisal is part of larger system known as

the performance management system. This system is the approach
to the management of people using performance, planned goals and
objectives, measurement, feedback, and recognition to motivate
people to realise their maximum potential. Performance involves the
setting of clear quantifiable goals and objectives and assessing
individual performance against these measurement.

Aims

Performance appraisals are a way to give feedback to staff

regarding their performance. The appraisal can be used to encourage
good work as well as point out opportunities for improvement.
Appraisals can also ne used to set measurable targets and objectives
to continually performance improvement.

Increasing Role Clarity

Performance appraisal is a tool for communicating the skill,

knowledge and attitudes required for the different jobs roles. The
appraisal criteria acts as a guide to the attitudes and behaviours that
XYZ company would like their staff in their various capacities to have

Training and Development

 Performance appraisal measure an individual’s performance
and can identify apportunities for improvement or learning through
training.

Compensation and Reward

Bonuses and annual increments are linked to performance, a system

for measuring performance in an equitable way is necessary. The
performance appraisal encourages the use of objective, quantifiable
criteria to measure performance which will be known to all staff. This
system improves fair judgment and the perception of among staff.

Career planning

Performance appraisals will allow XYZ COMPANY’s to assess

the skill set of their existing staff to ascertain the career path for
each individual.

Enhance Corporate Value

Corporate value is the pursuit of innovative quality in the areas

of Customers, Employee, society, Product, Technology ,management
and fairness. These values are tanslated to performance measures
that are used in the appraisal. This enhances awareness of corporate
value and promotes behaviours that are in line with values.

PURPOSE STATEMENT

 To study the employee performance appraisal.

 To study the various concepts of performance appraisal.
 To study the application of the principles of employee
performance appraisal in the organization.
RESEARCH QUESTIONS

 Do organizations take interest in the performance appraisal of

its employees?
 Do employees benefit from the performance appraisal facilities
given to them?
 Is there an increase in employee engagement when employees
are given performance appraisal facilities?
 CHAPTER 4

LITERATURE REVIEW
According to Brumbrach (1988, cited in Armstrong, 2000):

“Performance can be actions as well as their consequences.

Behaviours originate from a performer and convert performance
from a concept to an act. Not just the instruments for results,
behaviours are also outcomes in their own right – the product of
mental and physical effort applied to tasks – and can be judged apart
from results.”

The above definition considers performance to be involving both the

actions, in other word behaviours, taken during the process in
attempting to achieve goals and outputs obtained as a result from
the effort.

Following this, Armstrong (2000) emphasizes the need for managers

to deal with the potential of employees and accomplishments while
managing performance.

To determine if performance has been achieved, measures have to

be developed to appraise the accomplishments and establish the
rate at which it has been accomplished. Above all, performance
should be about the decision and action taken with available
information at any existing situation.

Grote (2002) describes performance appraisal as a formal

management tool that helps evaluate the performance quality of an
employee. Schneier and Beatty as cited in Patterson (1987) define it
as a process which apart from evaluating also identifies and develops
human performance.

According to Karol (1996) performance appraisal includes a

communication event planned between a manager and an employee
specifically for the purpose of assessing that employee’s past job
performance and discussing areas for future improvement.

Performance appraisal was seen in the industry in early 1800.

Randell (1994) identified its use in Robert Owen’s use of “silent
monitors” in the cotton mills of Scotland. The Silent monitors were in
terms of blocks of wood with different colours painted on each
visible side and it was hung above each employee’s work station. At
the end of the day, the block was turned so that a particular colour,
representing a grade of the employee’s performance, could be seen
by everyone.

(Weise and Buckley, 1998) Subjective evidence indicates that this

practice had a facilitating influence on subsequent behavior.

Spriegel(1962) and Weise and Buckley(1998) affirm that by the early

1950s, 61 per cent of organizations regularly used performance
appraisals, compared with only 15 per cent immediately after World
War II. DeVries et al. (1981) pointed out the primary tool to be the
trait-rating system, which focused on past actions, using a standard,
numerical scoring system to appraise people on the basis of a
previously established set of dimensions. The main tool, used under
here was trait rating system.

The concept of Management by Objective (MBO) was first proposed

by Peter Drucker in 1954.

Mcgreror then used it in the appraisal process in the year 1957. He

suggested that, employees should be appraised on the basis of short-
term goals, rather than traits, which are jointly set by the employee
and the manager. Weise and Buckley (1998) affirm that this method
was very advantageous as it lead to a transformation of a manager’s
role from being a judge to a helper. It also showed that employees’
productivity ultimately leads to performance. However, when
employees’ performance was measured on the basis of units, then
MBO was ineffective. This lead to new development in the appraisal
process and the employees were evaluated on the basis of
‘behaviour based rating’. Smith and Kendall (1963) designed the first
tool to focus on behaviors and it was the Behaviorally Anchored
Rating Scales (BARS).

Performance Analysis
Conclusion
 performance appraisal has a beneficial effect on both the
persons doing the appraisal and being appraisaed
 the appraisal brings prominently to the attention of
supervisor or executive the importance of knowing their
subordinates as human resource.
 The necessity of performance appraisal leads the
appraiser to a throught analysis of people rates and tends
to make him more alive to opportunities and
responsibilities in developing the subordinates.
 More engaged to the company people are, the better
Financial result are likely to be achieved

Suggestions
Findings
Bibliography

Questionnaire

Questionnaire on performance management system

Disclaimer : the data gathered throught this interview schedule
would be used exclusively for the perpose of academic research only.
Course : performance appraisal.

A: General profile of Respondents

1. Sex : Male Female
2. Age group : 25-35 36-45 46+
3. Designation :
4. Experience :
a) Less than 1 year b) 2-4 years
c) c. 5-7 years d) more than 7 years
5. Which of the following economic sectors best describes your
organization ?
a) Public Sector b) Private Sector
6. Approximately how many people are employed in your
organisation ?
a) Less than 100 b) 101-500
c) 501 – 1000 d) More than 1001
B: nature of current performance management syste
1. Does your organisation operate a formal performance
management system ?
a. Yes b. No

2. If yes, which of the following groups of employees do these

processes apply to ?

Senior Managers
Technical / Clerical
Manual / Blue Collar
Other managers / team leaders
Professionals
3. How do the performance management process operate differ
between the above group ?
a) Adoption of different methods of appraisal for different
groups
b) Extensive use of self-appraisal for certain bands of
employees
c) Adopting diffrents time spans of appraisal for the different
grous

4. What are the techniques that are used in your organization for
assessing performance ?
a) Observation b) Assessment
5. Please indicates which of the following methods of
performance appraisal form a part of your system ?
a) Written essay method
b) Graphic rating scales
c) ranking method
d) 360 degree appraisal
e) Self appraisal