TABLE OF CONTENTS

1. INTRODUCTION

1.1 Performance management

1.2 What is Performance?
1.3 How is Performance managed?
1.4 Why Performance Appraisal?
1.4.1 Performance Appraisal Process
1.4.2 Pre-requisites of effective Performance
Appraisal
1.4.3 Purpose of Performance Appraisal
1.4.4 Performance Appraisal Methods

2. COMPANY PROFILE

3. RESEARCH METHODOLOGY

3.1 Statement of the problem

3.2 Objective

3.3 Types of Research

4. RESULTS

4.1 Findings from appraisee survey

4.2 Findings from appraiser survey

5. SUGGESTIONS AND RECOMMENDATIONS

6. CONCLUSION

7. QUESTIONNAIRE
BIBLIOGRAPHY
CHAPTER 1
 INTRODUCTION

In the business world investment is made in machinery, equipment and services. Quite naturally
time and money is spent ensuring that they provide what their suppliers claim. In other words
the performance is constantly appraised against the results expected. When it comes to one of
the most expensive resources companies invest in, namely people, the job appraising
performance against results is often carried out with the same objectivity. Each individual has a
role to play and management has to ensure that the individual’s objectives translate into overall
corporate objectives of the company. Performance Management includes the performance
appraisal process which in turn helps identifying the training needs and provides a direction for
career and succession planning.

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 asset” 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
undervalued, under trained and underutilized.

The market place for talented, skilled people is competitive and expensive. Taking on new staff
can be disruptive to existing employees. Also, it takes time to develop ‘cultural awareness’,
product / process / organization knowledge and experience for new staff members.

The performance appraisal has taken very important role in Human Resource management. It is
also known as “Administrative tool” .The concept of performance appraisal becomes enviable
and approach to performance will also be changing. There is a telling that performance appraisal
is only an activity to achieve short term objectives. Some also feel that it focuses on the team.
Some others feel that it will be useful only in extreme cases where employees are subjective and
at times it puts down the morale of the employees. All these opinions and feelings are not true.
In reality performance appraisal is an effective tool in hands of the executives to improve the
quality of work in the organization.
1.1 Performance Management

PERFORMANCE MANAGEMENT

CORPORATE GOALS

DETERMINE INDIVIDUAL
OBJECTIVES LINKED TO
CORPORATE GOALS

ENSURE RESPONSIBILITY
AND
ACCOUNTABILITY

PERFORMANCE
APPRAISAL

PERFORMANCE LINKED
INCREMENTS/
INCENTIVES/REWARDS

1.2 What is Performance?

Performance is synonymous with behavior; it is what people actually do. Performance includes
those actions that are relevant to the organizational growth and can be measured in terms of each
individual’s proficiency (level of contribution). Effectiveness Performance refers to the
evaluation of results of performance that is beyond the influence or control of the individual.

1.3 How is Performance Managed?

Good performance by the employees creates a culture of excellence, which benefits the
organization in the long run. The activity includes evaluation of jobs and people both, managing
gender bias, career planning, and devising methods of employee satisfaction etc. The efforts are
to generate the individual’s aspirations with the objectives of the organization. Organization has
to clear the way of career advancements for talented and hardworking people. Fear of any kind
from the minds of the employees should be removed so that they give best to their organization.
Communication network should be designed in such a way no one should be allowed to become
a hurdle. This enables the managers to take correct decisions and that too quickly.

1.4 Why Performance Appraisal?

Performance Appraisal is defined as the process of assessing the performance and progress of an
employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in working organizations and potential of
employees. According to Flippo, “Performance Appraisal is the systematic, periodic and an
important rating of an employee’s excellence in matters pertaining to his present job and his
potential for a better job.”

Today’s working climate demands a great deal of commitment and effort from employees, who
in turn naturally expect a great deal more from their employers. Performance appraisal is
designed to maximize effectiveness by bringing participation to more individual level in that it
provides a forum for consultation about standards of work, potential, aspirations and concerns. It
is an opportunity for employees to have significantly greater influence upon the quality of their
working lives. In these times of emphasis on “quality”, there is a natural equation: better quality
goods and services from employees who enjoy better quality “goods and services” from their
employers.
Performance appraisal must be seen as an intrinsic part of a manager’s responsibility and not an
unwelcome and time-consuming addition to them. It is about improving performance and
ultimate effectiveness.
Performance appraisal is a systematic means of ensuring that managers and their staff meet
regularly to discuss post and present performance issues and to agree what future is appropriate
on both sides.
This meeting should be based on clear and mutual understanding of the job in question and the
standards and outcomes, which are a part of it. In normal circumstances, employees should be
appraised by their immediate managers on one to one basis. Often the distinction between
performance and appraising is not made. Assessment concerns itself only with the past and the
present. The staff is being appraised when they are encouraged to look ahead to improve
effectiveness, utilize strengths, redress weaknesses and examine how potentials and aspirations
should match up. It should also be understood that pushing a previously prepared report across
and desk cursorily inviting comments, and expecting it to be neatly signed by the employee is
not appraisal - this is merely a form filling exercise which achieves little in terms of giving staff
any positive guidance and motivation.

THE APPRAISAL OF PERFORMANCE SHOULD BE GEARED TO:

• Improving the ability of the jobholder;

• Identifying obstacles which are restricting performance
• Agreeing a plan of action, that will lead to improved performance.

It is widely accepted that the most important factor in organization effectiveness is the
effectiveness of the individuals who make up the organization. If every individual in the
organization becomes more effective, then the organization itself will become more effective.
The task of reviewing situations and improving individual performance must therefore be a key
task for all managers. For appraisal to be effective, which means producing results for the
company, each manager has to develop and apply the skills of appraisal

These are: -
 ➢ Setting standards on the performance required, which will contribute to the achievement
of specific objectives
➢ Monitoring performance in a cost –effective manner, to ensure that previously agreed
performance standards are actually being achieved on an ongoing basis
➢ Analyzing any differences between the actual performance and the required performance
to establish the real cause of a shortfall rather than assume the fault to be in the jot
holder.
➢ Interviewing having a discussion with the jobholder to verify the true cause of a shortfall,
a developing a plan of action, which will provide the performance, required

Appraisal can then become a way of life, not concerned simply with the regulation of rewards
and the identification of potential, but concerned with improving the performance of the
company. The benefits of appraisal in these terms are immediate and accrue to the appraising
manager, the subordinate manager/employee, and to the company as a whole.

1.4.1 Performance Appraisal Process

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which
will be used to as the base to compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to describe the
standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization. The employees should be informed and the standards should be
clearly explained to them. This will help them to understand their role and to know what exactly
is expected from them. The standards should also be communicated to the appraisers or the
evaluators and if required, the standards can also be modified at this stage itself according to the
relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual performance
of the employees that is the work done by the employees during the specified period of time. It is
a continuous process which involves monitoring the performance throughout the year. This stage
requires the careful selection of the appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process and providing assistance rather than
interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set. The
result can show the actual performance being more than the desired performance or, the actual
performance being less than the desired performance depicting a negative deviation in the
organizational performance. It includes recalling, evaluating and analysis of data related to the
employee’s performance.
DISCUSSION RESULTS
The result of the appraisal is communicated and discussed with the employees on one-to-one
basis. The focus of this discussion is on communication and listening. The results, the problems
and the possible solutions ate discussed with the aim of problem solving and reaching
consensus. The feedback should be given with appositive attitude as this can have an effect on
the employee’s future performance. The purpose of the meeting should be to solve the problems
faced and motivate the employees to perform better.

DECISSION MAKING

The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions
like rewards, promotions, demotions, transfer etc.

1.4.2 Pre – requisites for effective & successful Performance Appraisal

The essentials of an effective performance system are as follows:

Documentation – means continuous noting and documenting the performance. It also helps the
evaluators to give a proof and the basis of their ratings.

Standards / Goals – the standards set should be clear, easy to understand, achievable,
motivating, time bound and measurable.

Practical and simple format – The appraisal format should be simple, clear, fair and objective.
Long and complicated formats are time consuming, difficult to understand, and do not elicit
much useful information.

Evaluation technique – An appropriate evaluation technique should be selected; the appraisal

system should be performance based and uniform. The criteria for evaluation should be based on
observable and measurable characteristics of the behavior of the employee.
 Communication – Communication is an indispensable part of the performance appraisal
process. The desired behavior or the expected results should be communicated to the employees
as well as the evaluators. Communication also plays an important role in the review or feedback
meeting. Open communication system motivates the employees to actively participate in the
appraisal process.

Feedback – The purpose of the feedback should be developmental rather than judgmental. To
maintain its utility, timely feedback should be provided to the employees and the manner of
giving feedback should be such that it should have a motivating effect on the employees’ future
performance.

Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the
performance appraisal process. Therefore, the evaluators should be trained to carry out the
processes of appraisals without personal bias and effectively.

1.4.3 Purpose of performance Appraisal

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.

Typically, 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 employed.

• To judge the effectiveness of the other human resource functions of the organizations
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)

1.4.4 Performance Appraisal Methods

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 are (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.
MORDEN-METHODS

ASSESMENT CENTRES
An assessment centre typically involves the use of the methods like social/ informal events,
tests and exercises, assignments being given to a group of employees to assess their competences
to take higher responsibilities in the future. Generally, employees are given an assignment
similar to the job they would be expected to perform if promoted. The trained evaluators observe
and evaluate employees as they perform the assigned jobs and are evaluated on job related
characteristics. The major competencies that are judged in assessment centers are interpersonal
skills, intellectual capability, planning and organizing capabilities, motivation, career orientation
etc., assessment centers are also an effective way to determine the training and development
needs of the targeted employees.

BEHAVIORALLLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the
graphic rating scale and critical incidents method. It consists of predetermined critical areas of
jobs performance or sets of behavioral statements describing important job performance qualities
as good or bad (for e.g. the qualities like inter-personal relationships, adaptability and reliability,
job knowledge etc). These statements are developed from critical incidents. In this method, an
employee’s actual behavior is judged against the desired behavior by recording and comparing
the behavior with BARS. Developing and practicing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting
methods tries to find the relative worth of these assets in the terms of money. In this method the
Performance appraisal of the employees is judges in terms of cost and contribution of the
employees. The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs etc whereas their
contribution includes the total value added (in money terms). The difference between the cost
and the contribution will be the performance of the employees. Ideally, the contribution of the
employees should be greater than the cost incurred on them.

CHAPTER 2

COMPANY PROFILE
Mannai owes its success and continued market leadership to shared values, core competence in
commerce and technology, and an unending spirit of innovation in all aspects of corporate life.
Our purpose is to deliver superior, long-range economic benefits to customers, shareholders,
employees, and the communities in which we operate.

The company is broadly divided into two key activities, Trade and Services. With businesses
spanning the oil and gas sector, automotive distribution, information and communication
technology, consumer products, travel services, logistics and representation, the company
provides a large spectrum of services and solutions to a fast-growing client base.

The strength of the Mannai Corporation lies in the interactive co-operation between different
operating companies. Every division and subsidiary works to the same high standards, totally
committed to the provision of outstanding levels of service to our clients, allowing them in turn
to improve their own business performance. We have earned a solid reputation for integrity
which has earned the respect and trust of partners around the world. This proactive group
underpins its continued growth by strong teamwork and the establishment of transparent
relationships with all whom we serve.

The Mannai Corporation celebrated its 50th Anniversary in 2000 as the largest private industrial
and trading company in Qatar. From humble beginnings as an auto parts trader established by
Mr Ahmed Abdullah Mannai, the Mannai Group grew to encompass activities ranging from
offshore rigs to telecommunications, with interests in many parts of the world.

With the growing importance of Qatar's economy, the group refocused its business in 2001 by
divesting all its overseas interests and reducing its dependence on cyclical, asset-heavy
activities. The goal of restructuring was achieved in 2004 when the trading and services
subsidiaries proved their capability of delivering sustainable quality earnings to shareholders. In
December 2005, Mannai Corporation became a member of the QIPCO Holding when a majority
of its equity was acquired by Qatar Investment & Projects Development Holding Company.
In August 2007 Mannai Corporation became a Public Company and its shares were listed on the
Doha Securities Market. QIPCO Holding remains Mannai”s largest shareholder.

CHAPTER 3

RESEARCH METHODOLOGY

3.1 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 Mannai.

3.2 Objective of the study

 ➢ To examine why an appraisal system is important.
➢ To study existing appraisal system in Mannai.
➢ To identify the needs of “Performance appraisal system in Mannai.”
➢ Employee attitude towards the present appraisal system.
➢ To provide suggestions & recommendations from the study conducted.

3.3 Types of Research

The data source: Primary as well as Secondary.

The research approach: Survey Method.
The research instrument: Questionnaire.
The respondents: The Manager & Employees of Mannai.
The primary data was collected with the help of survey information. A concise questionnaire
was prepared keeping in mind the information specifications.

RESEARCH DESIGN:

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

a) Determining Data Collection Design

b) Determining Data Methods

c) Determining Data Sources

d) Determining Primary Data Collection Methods

e) Developing Questionnaires

f) Determining Sampling Plan

(1) Explorative Research Design:

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

(2) Conclusive Research Design:

Conclusive Research Studies are more formal in nature and are conducted with a view to
eliciting more precise information for purpose of making marketing decisions.

These studies can be either:

a) Descriptive or

b) Experimental

Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive.

DATA COLLECTION:

Data Sources:

(i) Secondary Data through Internet

(ii) Primary Data through Questionnaire

(iii) Contact Method

(iv) Personal Interaction

DATA PRESENTATION AND ANALYSIS:

1. Bar graphs

2. Pie Diagrams
CHAPTER 4

RESULTS

4.1 Findings from Appraisee Survey

A. 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.

Particular Score Overall Rank

Salary Administration and Benefits 87 1

Determination of Promotion or Transfer 109 2

Assistance in Goal 228 3

Guideline for Training Plan 254 4

An insight into your strength and weakness 312 5

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.
B. 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.

C. Satisfaction Level among appraisee 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.

D. Do respondents feel that performance appraisal is necessary to the organization?

OPINION FREQUENCY PERCENTAGE

Yes 20 66.7%

No 10 33.3%

Total 30 100%

This table shows that among 30 respondents, 66.7% feel that performance appraisal is necessary
to achieve the organization goals and remaining 33.3% respondents feel that performance
appraisal is not necessary to achieve organization goals.

E. Do the respondents feel performance appraisal report constitutes important factor while
selecting employees for training and development program?

OPINION FREQUENCY PERCENTAGE

Yes 24 79.92%

No 06 19.98%

Total 30 100%
This table shows that among 30 respondents, 79.92% respondents responded that appraisal
report constitutes an important factor while selecting employees for training and development
and other 19.98% respondents responded that appraisal report is not an important factor while
selecting employees for training and development.

F. Do the respondents feel training and development seminars, conferences help them in
improving the performance?

OPINION FREQUENCY PERCENTAGE

Yes 21 69.93%

No 09 29.9%

Total 30 100%

This table shows that among 30 respondents 69.93% response was that training and development
seminars, conferences help them improving the performance and other 29.97% response was
that training and development seminars, conferences are not helpful in improving the
performance.
G. 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.

H. Allowing Self ratings:

From graph it can be seen that majority of respondents want self rating to be a method of
conducting the appraisals.
I. 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.

J. Complaint channel for employees

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

K. 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.

4.2 Findings from Appraiser Survey

A. 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 transfer 24 1

Salary administration and benefits 27 2

Decision to Lay Off 42 3

Guideline for training plan 69 4

Assistance in goal 72 5

An insight into your strengths and weakness 81 6

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.

B. 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.
C. Support from Subordinate

D. Type of Appraisal System

From results it’s 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.

E. 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.

F. Timing of Appraisals
This shows that the organization conduct their Performance Appraisal programs annually. A
very small percentage of the organizations conduct Performance Appraisals on a half yearly
basis. The share of the quarterly and monthly appraisals is extremely minimal.

G. 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 don’t coordinate with their team members thus
resulting in reduction of output.

H. 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.

I. Insight to Appraisee’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.

J. 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.

K. Performance Appraisal

Almost all the Performance Appraisals are carried out by the Immediate Supervisor in this
organization. At very few times, Rating committees carry out the performance appraisals. But it
does not use Peer Appraisals, Appraisals by subordinates and Self rating as a method of
Performance Appraisal.

L. 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.

M. 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.

N. Action after Performance Appraisal

This shows that Mannai Corporation act upon the results of their Performance Appraisal
program.

CHAPTER 5

SUGGESTIONS AND RECOMMENDATIONS

 From the survey results it’s evident that both the appraisee’s and appraiser’s expectation
from Performance appraisal system are the same i.e. “Determination of Promotion or
Transfer” and “Salary Administration and Benefits”. Hence a single performance
appraisal system can satisfy needs of both the Appraiser and appraisee. Therefore the
Performance appraisal program would be designed in such a way that the appraiser
would be able to analyze the contribution of the employee to the organization
periodically and all the employees who have been performing well would be rewarded
suitably either by an increase in the salary or a promotion. Through this the appraiser can
also motivate the employees who felt that they had no growth in the organization and
 serves the purpose of employee development. Thus performance appraisals can be used
as a significant tool for career planning.

 Analyzing one’s own strengths and weaknesses is the best way of identifying the
potentials available, rather than the other person telling. Self-appraisal is a tool to
analyze oneself. One of the most important findings was that almost all the employees
wanted self-rating to be a part of performance appraisal program carried out by the
organization. From the responses of the appraiser we can also see that Self rating is not
encouraged by the organizations. This could therefore be an important factor which
leads to dissatisfaction among the appraisees. At the end of the year of the appraisal
period the appraisal process should begin with self-appraisal by every employee. To
appraise one’s own self on key performing targets and qualities, the appraisee would go
through a process of reflection and review. It is an established fact that change is faster
when it is self initiated. If any employee has to improve or do better, he must first feel
the need to do so. Reflection and review is a process that enables him to feel the need
and improve more upon his strengths and weaknesses

 Another point to be noticed is that even in the other forms of Performance Appraisal also
the employees expect that they should be given a chance to rate their own performance.
This can allow the employee to analyze one’s own performance which gives new
insights on how one is performing and what are the critical points where he has to put
his best and improve upon.

 The existence of a proper complaint channel was also of utmost importance to the
appraisees. They should be given a chance to convey their grievances to the top
management.

 The appraisees also expect that their comments and suggestions should be taken in to
account while conducting the appraisals. This expectation is not fulfilled as the
appraisers do not take their comments and suggestions into consideration. Therefore they
should look into this matter before it leads to dissatisfaction among the employees.
 The results also indicate that the there is no communication of top management plans
and business goal to the appraisee. The appraisers on the other hand feel that the goals
and plans have been clearly communicated to the appraisees. Communication is very
essential for any system to function efficiently. Therefore the appraisers should look into
this matter and see to it that the goals and plans are communicated effectively.

 The findings suggest that for success of Appraisal system the credibility of appraiser is
of utmost importance.

 As per the Appraiser, a poorly conducted appraisal system would lead to de-motivation
and ineffective teamwork which will result in inefficient functioning and low
productivity in the organization. Therefore, if at all they feel there is dissatisfaction
among the appraisee’s they should motivate them. Achievement, recognition,
involvement, job satisfaction and development can motivate the employees to a large
extent. Along with this satisfactory working conditions and appropriate awards also play
an important role.

 Also a majority of employees were satisfied with the current appraisal system although
they requested for some changes.

 Most of the employees were also not clear about the criteria on which ratings were given
to each employee while conducting the performance appraisal. Instead of secrecy there
should be openness. Because of lack of communication, employees may not know how
they are rated. The standards by which employees think they are being judged are
sometimes different from those their superiors actually use. Proper communication of
these ratings can help the employers achieve the level of acceptability and commitment
which is required from the employees.

 From the survey we can also derive that the appraisee’s expect a post appraisal interview
to be conducted wherein they are given a proper feedback on their performance and they
can also put forward their complaints if any. The appraisal should also be followed up
with a session of counseling which is often neglected in many organizations. Counseling
 involves helping an employee to identify his strengths and weaknesses to contribute to
his growth and development. Purpose is to help an employee improve his performance
level, maintain his morale, guide him to identify and develop his strong points,
overcome his weak points, develop new capabilities to handle more responsibilities,
identify his training needs.

CHAPTER 6

CONCLUSION

With rewards being directly linked to achievement of objectives, goal setting and Performance
Appraisal assumes utmost importance. The Performance Appraisal System has been
professionally designed and it is monitored by HRD. The implementation is the responsibility of
each and every employee along with their supervisor. There should be adequate training to the
evaluator that will go a long way in answering the quality of Performance Appraisal. In
conclusion, a Performance Appraisal is a very important tool used to influence employees. A
formal Performance review is important as it gives an opportunity to get an overall view of job
performance and staff development. It encourages systematic and regular joint stocking and
planning for the future. Good performance reviews therefore don’t just summarize the past, they
help determine future performance.
CHAPTER 7

QUESTIONNAIRE

Questions for Appraisee

1. What do you expect from a Performance appraisal: (Rank the options from 1 to 6; 1 being
most preferred & 6 being least preferred?)

Detail Rank
Salary Administration and Benefits

Determination of Promotion or Transfer

Assistance in Goal
Guideline for Training Plan
An insight into your strength and weakness
Decision to layoff

2. Do you know what exactly is expected from you at work?

a. Yes b. No

3. Are you satisfied with the appraisal system?

12345
(1 = Least satisfied; 5 = Most satisfied)

4. Do you feel that performance appraisal is necessary to the organization?

a. Yes b. No

5. Are you aware of performance ratings?

a. Yes b. No

6. Do you think you should be given an opportunity to rate your own performance?
a. Yes b. No

7. Are you given a chance to rate your own performance?

a. Yes b. No

8. Is there a complaint channel for the employees who are dissatisfied with the performance
appraisal system?
a. Yes b. No
Questions for Appraiser

1. Purpose of Performance appraisal: (Rank the options from 1 to 6; 1 being main purpose & 6
being last purpose)
Detail RANK
Determination of promotion or transfer
Salary administration and benefits
Decision to Lay Off
Guideline for training plan
Assistance in goal
An insight into your strengths and weakness

Is the Performance Appraisal helping you to plan your work well?

1 2 3 4 5
(1 = Least helpful; 5 = Most helpful)

2. Does the system provide you a chance to communicate the support you need from your
subordinate to perform the job well.
a. Yes b. No

3. Which appraisal system is being employed in the company?

a. Assessment centre
b. MBO
c. BARS
d. 360 degree feedback
e. Balance scorecard

4. Performance Appraisal criteria

a. Quantitative outcome criteria (Sales volume, Sales price, Productivity, Goal accomplishment
rate)
b. Qualitative process criteria (Quality of product or service, Customer satisfaction)
c. Quantitative process criteria (Efficiency, Cost/expenses, Attendance)
d. Qualitative process criteria (Judgment, Work attitude, Leadership, Conduct /Trait)

5. Timing of Appraisals
a. Monthly
b. Quarterly
c. Half Yearly
d. Annual
e. Anytime

6. What do you think is the effect of a poor appraisal system?

a. De-motivation
b. Retention
c. Ineffective teamwork

7. Does the appraisal system provide a good communication between the top management plans
and business goals to staff below?
d. Yes b. No

8. Does it give insight to appraisee regarding his strength or weakness?

e. Yes b. No

9. Are employee’s comments and suggestions taken into consideration before the appraisal?
a. Yes b. No

10. Who conducts the performance appraisal?”

a. Immediate supervisor
b. Peer appraisal
c. Rating committees
d. Self-rating
e. Appraisal by subordinates

11. Are the standards on the basis of which the performance appraisal is carried out
communicated to the employees before hand?
a. Yes b. No

12. Do you act upon the results of your performance appraisal?

a. Yes b. No
13. If yes, then mention the remedial measures taken?

BIBLIOGRAPHY

PERSONNEL & HUMAN RESOURCEMANAGEMENT BY P.SUBBARAO,

PERSONNEL & HUMAN RESOURCE MANAGEMENT BY C.B.MEMORIA

S.V. GANKAR,

ORGANIZATIONAL BEHAVIOR BY STEVE ROBBINS,

THE ART OF HRD, REWARD MANAGEMENT, VOLUME 9 BY MICHEAL

ARMSTRONG AND HELEN MURLIS,

PERFORMANCE MANAGEMENT, CONCEPTS, PRACTICES AND

STRATEGIES FOR ORGANISATION SUCCESS BY S. K. BHATIA
.
R KOTHARI

C.B GUPTA

360 DEGREE APPRAISALS (TV RAO)

REFERENCE SOURCES:

• THOMAS F.PATTERSON (1987) “REFINING PERFORMANCE

APPRAISAL” (HTML).

• JOYCE MARGULIES (2004-03-24). “PERFORMANCE APPRAISALS”

(PDF)

• 1998, ARCHER NORTH & ASSOCIATIATES, INTRODUCTION

TOPERFORMANCE APPRAISAL,
HTTP;//WWW.PERFORMANCEAPPRAISAL.COM/INTRO.HTM

• U.S. DEPARTMENT OF THE INTERIOR, PERFORMANCE

APPRAISAL HANDBOOK.