chapter iii review of literature 3:1 performance appraisal...
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CHAPTER – III
REVIEW OF LITERATURE
The review of related literature helps us to examine various research works
undertaken in the same area of research. It also helps us to identify the research gaps
existing in the same field of research. This chapter has taken effort to study the available
literature in the area of Performance Appraisal.
3:1 Performance Appraisal of group of Employees:
3:1:1 Performance Appraisal of Employees of laboratory professional:
Rick Panning and Beverly Farrell,11 in the web site on management help have
written a paper on ‘Performance Appraisal Process - What to expect as a laboratory
professional?’. In this descriptive paper, he analyses the methodologies of Performance
Appraisal process with focus on laboratory professional. In the clinical laboratory
profession, one of the most important aspects of the employment process is called
performance management (more commonly called Performance Appraisal). The purpose
of this process is to ensure that an organization provides high quality service to meet the
service needs of the customers. This is achieved by promoting employee competence.
According to the authors, a successful performance management process begins
during the hiring process. It continues as an ongoing cycle from recruitment, through
hiring, orientation, and goal setting and on to Performance Appraisal and evaluation.
11 Rick Panning, & Beverly Farrell, ‘Performance Appraisal Process - What to expect as a laboratory
professional”, www.managementhelp.org
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The performance management process starts with employee planning and ends
with an evaluation of employee progress. Managers and employees should meet to discuss
planning and goals throughout the year.
The Performance Appraisal is usually done in two steps. The first step is
completing the Performance Appraisal form. And the second step is participating in a
Performance Appraisal interview. The appraisal form, used in the first step, consists of
performance standards and criteria that are used to judge the performance. The
performance score is determined using a numerical rating scale similar to the following: 3
= excellent, 2 = average and 1 = poor.
3:1:2 Performance Appraisal of Employees of Automobile Industry:
Dr.Asha Nagendra12 in her article, An Analysis of Performance Appraisal System
in the Automobile Industry says that Performance Appraisal is a tool to assess an
individual’s competencies and training needs. It entitles evaluation of the performance of
all personnel such as employees, supervisors and managers, so that they can be trained
and developed for facing present and future challenges. However it tends to become a
ritual to be done with a minimum of time investment. Hence, this study was conducted to
establish the adequacy/inadequacy of the Performance Appraisal system in two companies
in the automobile sector, to assess whether it is human resource development oriented and
to evaluate whether it is effectively implemented. Two of the largest manufacturing
companies in our country, TATA Motors and Bajaj Auto were selected. The random
sampling method was used to select 100 middle level managers from the two
organisations. Result showed that managers from both the organisations felt that there
12 Dr.Asha Nagendra, (2008), “An Analysis of Performance appraisal System in the Automobile Industry”,
Rai Management Journal, Vol.5, Issue 1, March 2008, pp 77-83.
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existed a good Performance Appraisal system in their organisation that is HR oriented.
However its implementation was found lacking. On comparison, TATA Motors scored
higher than Baja Auto in all aspects revealing that managers in TATA Motors were more
satisfied with the existing implementation of the Performance Appraisal system in their
organisation than those in Bajaj Auto. And it is concluded that it can be said that
Performance Appraisal still has a long way to go before it reaches a satisfactory
acceptance level. Principal component analysis and Factor analysis were used in
processing the data.
3:1:3 Performance Appraisal of Employees of knowledge society:
Rachna Narula13 in her essay on ‘Appraising performance in knowledge society,
Area of academics’, aimed at establishing the need to appraise the performance of the
academicians. According to her view, the academicians have been teaching the same
content for many years without making any major change in their style in accordance with
the changes in society, economies and so on.
In the business sector, performance planning is done by setting performance levels
by defining ‘key performance area’. The academicians also should be encouraged to get
feedback on their abilities. According to Cambridge Dictionary, feedback means
information or statement of opinion about something, which provides an idea of whether it
is successful or liked. So the process of feedback should be aimed at effective teaching
learning.
In her research, both primary and secondary data are being used. Two sets of
questionnaires, one from the students and the other from the faculty are collected. The
13 Rachna Narula (2005), “Appraising Performance in Knowledge Society, Area of Academics”- The HRM
Review, ICFAI university press, Oct. 2005. pp35-38.
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study finds that feedback is necessary and it should be on dissemination of knowledge,
encouraging and coordinating discussion in the right direction, punctuality, clarification of
concepts, introducing novelty in the course content and so on.
The suggestion on feedback is given and it should be timely, relevant, factual,
helpful, confidential, respectful, tailored to specific needs and encouraging. It should
follow a systematic process.
Shagufta Jabeen14 says that as the educational institutions train the manpower
and the other sectors utilise them, they have to go hand in hand and have continuous
dialogue as to what is required to improve them and how it can be prepared. Human
resource is the only asset which appreciates in its value with the passage of time.
3: 2 Case study of Performance Appraisal Systems in private companies:
T.V.Rao15, has done a critical case study on ‘Senior Management Personnel
Appraisal: Crompton Greaves Limited.’ The study aims at studying the methodology
adopted in the Performance Appraisal System of Crompton Greaves Limited. The
objective of Performance Appraisal system in Crompton Greaves Limited is mainly to
assess three values.
The first one is Assessment of performance in Key Performance Area (KPA). This
KPA guided by quantum improvement as well as quality improvement in area of
performance. Goal setting should be followed by a weighted allocation of points for
assessment among the KPAs after prioritization of each KPA.
14 Shagufta Jabeen, (1999), “Performance Appraisal System in Industries Implication to Education System”,
University News, 37(30), July 26, 1999, pp8-10 15 T.V.Rao (2005), “Senior Management Personnel Appraisal Crompton Greaves Limited”, Chapter 12,
Human Resource Mangement,
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The second part is Leadership and Team Building. Here the idea generation, risk
taking and taking ventures, critical attributes, training and development needs were taken
for consideration.
The third part is contribution to team spirit. Scores of each part of the appraisal
were entered in the overall rating. Appraisee’s boss also will give his comments. Hence
according to the rating level, the performances were rated.
Biswajeet Pattanayak16 in his critical analysis of the Performance Appraisal system
of Lintas India Limited, has given his report as follows;
Lintas uses the philosophy of Management By Objectives (MBO). They also
follow planning in their appraisal system. Objectives are set after discussion with the
concerned employee. Performance is measured in terms of these objectives every 3
months. Performance review discussion is made more objective. Before formal review
discussion, every employee is required to self appraise his performance based on the set
objectives. The company tries to find out the employee’s strength and skills in different
key areas and not his personal traits. Based on the appraisal discussions, employees are
also sent for management development programmes (if required).
Lateral shifts are made for people having potential in any other area. Performance
review discussions are held quarterly and career planning discussion are done annually for
every employee.
The negative comments about the Performance Appraisal are that there is a
considerable difference in the stated and practiced objectives of the PA. In the whole of
16 Biswajeet Pattanayak (2005), “Human Resource Management”, Prentice-Hall of India Pvt. Ltd., New
Delhi, pp 135
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appraisal the supervisors tend to assume the role of judges. In contrast, when the aim is to
develop employees, managers need to be counsellors, helpers and teachers and not judges.
Companies that go for personal trait evaluation observe too much of subjectivity, bias and
halo effect in their decision.
Performance Appraisal system in L&T was appraised by T.V.Rao.17. The main
purpose of the appraisal system is to help an employee in identifying the strength and
weakness and to improve his performance and to develop him by guidance and training.
In L & T, by 15th October every year, the appraisee has to fill in Part A and
relevant portion of Part B of the form and hand over the same to his supervisor. A check
list helps the employee in filling of the form.
On receipt of the form, the immediate superior will arrange an appraisal interview
with the appraisee to discuss the performance, strength, weakness and ways of
development. The form along with the notes of the supervisors is to be submitted to the
next higher authority by 15th December.
There are guidelines for the appraisal of the supervisors, higher cadre staff, new
employees and transferred employees. The rating given are categorised as outstanding,
very good, good, adequate and inadequate.
The organisation aims at achieving knowledge upgradation, skill building,
behavioural and attitude development for its employees by the way of involvement,
counselling and training.
17 T.V.Rao (2005), “Performance Appraisal System in Larsen and Toubro Ltd”,’ Performance Appraisal
System’ pp138-158. Human Resource Mangement.
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The article on ‘Turn Around from Feedback’18 by Brian Flannigon presents a case
study of Nalco’s success in using the 360 degree feedback system for developing their
sales personnel.
The case study stems from Nalco’s reduced annual turnover of its sales, through
the initiative of its Quality Action Team which identified the main reasons for its high
turnover. But they found that one primary issue that commended attention was – problems
with the boss.
To address this grave issue, the 360 degree assessment process was initiated by
Nalco along with North Block – a consulting firm and a pioneer in 360 degree assessment
process.
The 360 degree assessment was essentially aimed at district sales manager. The
managers assessed themselves and were assessed by their own sales manager and sales
representatives who reported to them. The data was analysed and a profile of each
individual was shared confidentially with the concerned person. Eventually the action
plans were drawn out and group recommendations were initiated.
Each manager was aided in identifying milestones that indicated he or she had
undergone a significant change. Thus, in this way, the Nalco experience of implementing
360 degree feedback for the sales managers was a success.
In this case study article of the authors N.Krishna Kishore and V.V.Ramani19 made
an attempt to study the complexity in the existing performance management system at RK
Fertilizers Company.
18 Brian Flannigon, (1997), ‘Turnaround from Feedback”, , HR Focus, October 1997, pg.3 19 “Performance Management System: A Case study on Indian Fertilizers Industry”, The ICFAI Journal of
Organizational Behaviour, April 2004, The Icfai University Press.
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The objective of the study is to study the present system and if necessary to
restructure the whole system, to study whether the performance management system is
used as a performance developmental tool rather than appraisal tool and to emphasise
career developments, succession planning and promotions based on performance rather
than experience.
As the RK fertilizers is an old economy industry, performance management
system has to be studied by taking in to account industry’s cultural factors and
behavioural norms of the people in the company.
The methodology used for the study is Formal meeting and Informal meeting.
Questionnaire with a sample size of Junior manager (107), Middle manager (14) and
Senior manager (5) from manufacturing, finance, marketing and Human Resource
Management analysis of existing performance management system and Performance
Appraisal reports. Analogy to the cases is found and inferences are drawn, references to
books and other literature are made. Introduction on RK Fertilizers is given. It employs
more than 1150 people, located in Andhra Pradesh and is one of the pioneers in India that
introduced full fledged performance management system. The system is a highly suitable
system for this organisation.
This research is focussed on the reasons for the failures of the system and attempts
to suggest better ways of implementing the system. The results of the survey shows that
the key objectives of performance management are met only in a partial manner and the
company could not take full advantage of the merits of the system. The golden rule of
management is to value the individuals as persons and listen to them and act upon their
thoughts, feelings, needs and dreams.
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Finally, performance enhancement system is quite useful in managing achievable
targets. Managers have to give the people the work they can do. Managers cannot expect
to achieve production beyond the reasonable capacity and skills beyond their training.
Managers should provide them an opportunity to learn and achieve.
J.Abhi Solomon20, ‘A Study on the Effectiveness of Performance Appraisal
System at SPIC Limited, Chennai’ July 2005.
The research is aimed at determining the effectiveness of PA system followed by
SPIC for officer’s cadre and to study the satisfaction level of employees towards fixing of
target, peer group, promotion, pay rise, increments and towards the PA system.
The study uses the primary data which is collected with a questionnaire on a
sample of 70 respondents. Chi-Square test is used to test the hypothesis that there is
significant relationship between the extent of pressure of performance and the extent of
pressure due to Performance Appraisal system. Using Semantic Differential Scale it is
seen that most of the respondents are satisfied with the 360 degree performance system.
It is suggested by the author that updates must be communicated to the employee.
Monetary rewards and compensatory packages should be modified into more attractive
packages. Counselling and resource mobilization for poorly rated employee would help
them to improve. Both individual goals and group goals should be clarified. Monthly
review meeting should be held every month for discussing the short comings.
J.Nalini21 has done a study (2005) on ‘A Study on Performance Appraisal of
Employees with respect to Dharangadara Chemical Works Limited (DCW)’
20 J.Abhi Solomon, (2005) “A Study on the Effectiveness of Performance Appraisal System at SPIC
Limited, Chennai”, July 2005, Madurai Kamaraj University, Madurai.
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The objectives of the study are to analyse the feed back of Performance Appraisal
to evaluate the personal traits of employees and to analyse and recommend suitable
suggestions for improving the skills of the employees. The study is a descriptive analysis
of the Performance Appraisal system of workers of the DCW. The size of the sample is
120.
The finding of the study is that there is negative correlation between the age of the
employee and their opinion about the performance improvement. There is negative
correlation between work experience and opinion about professional growth, work
experience and opinion about job knowledge. The educational qualification and opinion
about problem solving and decision making skills are also negatively correlated. But it is
found that there is no relation between work experience and quality of work.
It is suggested by the author that Performance Appraisal should be done
periodically and it should be communicated to the employee periodically. During
Performance Appraisal, feed back should be given to the employees. It will help for
identifying the strengths and weaknesses of the employees and the solutions for correcting
the weaknesses should also been given so that employees can improve their performance.
It is also suggested that to improve the skills and the knowledge of the job the employees
should be trained properly. The Performance Appraisal may be done in proper interval by
trained faculty. Recognition and promotion may be given on the basis of the performance
at the right time and age. It is also expected that the bias in evaluation by the superiors be
eliminated to have a good work environment.
21 J.Nalini, (2005) “A Study on Performance Appraisal of Employees with respect to Dharangadara
Chemical Works Limited”, 2005. Madurai Kamaraj University, Madurai.
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3:3 Performance Management:
Dr. Suvarna Sen22, in his article titled ‘Innovations in Performance
Management’, says Performance Management provides an efficient option for
implementing a system. This is about enabling managers to perform better in order to
succeed. It means creating a motivating work environment through appropriate incentives,
feed back and rewards; encouragements for wanting to do better jobs. Performance
Management system needs certain pre-requisites to function smoothly. They are:
• it should be used holistically as a system.
• the relevant sub-systems are in place and accepted.
• the organisation’s philosophy and human environment is conducive to high morale.
The manager is oriented to and equipped with high performing attitudes and
leadership skills. He emphasises that the performance management is the manager’s
concern and interest. Rewards, remuneration and other systems are for motivation and
reinforcement.
While saying about the Organisation Development (OD), he says the prime goal of
OD is to optimise the system by ensuring that system elements are harmonious and
congruent. OD techniques and approaches have been widely disseminated in society. The
OD is about people helping each other to unleash the human sprit and human capability in
the work place. Training and development is vital for every organisation to cope with
changes from time to time and perform well. Training need is defined as the gap between
the actual performance and the desired performance.
22 Dr.Suvarna Sen, (2006), “Innovations in Performance Management”, Personnel Today, A Quarterly
Publication of NIPM, April-June 2006, Vol XXVII, No 1, pp19-25.
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Hence a performance management system is a formal review process to define,
encourage, recognise and reward high performance. It should define required skill sets for
each level of management, and quickly identify staffers who are exceeding or lagging
behind company expectations. The system should provide a basis for rewarding positive
performance and remain a key mechanism for determining which all employees should
move to higher layer of training.
T.V.Rao23, in his article on ‘Lessons from experience: a new look at performance
management systems’ stresses upon the importance of understanding the nature, potential,
and complexities of performance management systems (PMS), based on his
experiences of designing integrated HRD systems for various companies. Evaluating an
employee’s performance on the basis of numbers assigned could inflict serious injustice to
the performer. The outlook has to shift from an annual exercise to the on-going activities.
Appraisal focuses on ratings while improvements focus on work, stakeholders, service
levels, productivity, motivation effort and all such performance – related variables. Few
changes are suggested in order to improve PMS as a system. A questionnaire survey was
conducted on the managers from three organizations: an MNC, a family – owned
business, and a professionally managed company from abroad. This has clearly indicated
the potential use of PMS for performance enhancements and a similarity in the
implementation of PMS in all these organizations. The author discusses how these
insights helped him in designing the programme, popularly known as ‘invest twenty and
23 T.V.Rao, ‘Lessons from experience: a new look at performance management systems’
VIKALPA-The Journal for Decision makers, Volume- 33 July-September 2008 Number-
3.
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direct 2,000 to 20,000TM’.The line managers and top management are being told that
their managers can learn to direct 2,000 hours of their performance time to 20,000 hours
of their junior’s performance time by merely investing 20 hours of their time for planning
their own and their junior’s work. PMS can be a great tool if designed comprehensively
and implemented in all earnestness, the author affirms. He has also given the comparison
chart between Performance appraisal systems (PAS) and Performance management
systems (PMS).
Dipti Sethi24 in the article on ‘Performance enhancing culture - A Rationale
Performance management Implications and Insight’ gives a background on performance
enhancing culture. The author says, job satisfaction, job involvement and commitment and
employees attitude are considered to enhance the organisation’s final output.
Defining this, the author says that it means a culture of an organisation which is
proactive in its action, blocks and weeds out actions and behaviour which cause barriers
and destructions and encourages and reinforces those actions and behaviours which are
positive, constructive and rewards the same. This will enable the employee to be
committed and engaged towards their work and contribution to the organisation. The
organisation is disciplined in its action but at the same time they are flexible and liberal in
its functioning – a quite long and confusing definition of course. The author says, to create
a performance culture, the organisation should consider their human resource as an
invaluable asset.
The components of a performance culture in an organisation are:
24 Dipti Sethi, (2007), “Performance Enhancing Culture: A Rationale, Performance Management
Implications and Insight”, Dipti Sethi (Ed), ICFAI University Press, Hyderabad, 2007, pp 3-10.
80
• Integrated Performance Management System (consisting of reward, culture, career,
competency, leadership, team based and measurement based performance strategy).
• High Performance Working System and Practices [HPWP] (includes job rotation, pay
for performance, new reward systems, continuous improvement in system and
extensive use of technology – also include sharing financial and non financial
information, profit sharing, multi skilling, quality circles, total quality management
and team work).
• Develop a Culture of Mentoring and Coaching (this gains vital importance).
• Talent Management (through HPWP) and
• Organisational Spirituality (this is an unending guide for the organisation under all
circumstances).
In conclusion the author says, to create and sustain a performance enhancing
culture, calls for a continuous effort in the organisation at the individual, group and
system level and strengthen it self to face the challenges in its environment. As per the
author, the article is an overview, briefing about the components of a performance
enhancing culture.
The author Tapomoy Deb25 is emphasising the importance of human power as a
resource. The author is giving explanation to stress the importance of human resource in
the complex, turbulent and dynamic business environment of today where goals,
circumstances, organisation structures, staffing and activities are constantly changing.
Task of Human Resource function is to organize, motivate, equip and direct rather
ordinary people to perform at their highest possible level. 25 Tapomoy, (2006), “Driving Human Resource to Performance: The New Mandate”, HRM Review, October
2006, The ICFAI University Press.
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The strategies suggested by him regarding this are, Ownership of Performance
Management System. HR function is to see that every employee of the organisation
understand and to speak the language of business of the organisation and visualise success
as a team), Linking Work Goals to Performance Expectations, Change Agent and
Organisation as Rejuvenation Initiator and Ethic Custodian.
Appraising HR function:
Four perspectives are suggested by the author for this. They are,
Operations Perspective – refers to internal business process and their alignment with HR
planning, acquisition, development and retention of trained and developed employee who
can perform.
Financial Perspective – to keep cost of compensation and benefits at optional level based
on organisation’s ability to pay, industry norms, business strategy and growth prospects.
HR perspective – includes employee training and corporate culture attitudes related to
both individual and corporate self improvement. Today’s HR function needs to develop an
entrepreneur work force capable of delivering results at all times consistently and
continuously.
Customer perspective – customer delight and loyalty can be built only through employees
because, happy, committed and motivated employees pass on their goodwill to the
customers.
In conclusion, the author says, HR function has to ensure that the employees of the
organisation are utilised in such a way that the employer obtains the greatest possible
benefit from their abilities and the employees obtain both material and psychological
reward from their work.
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The authors, K. Ravichandran and DJE. Ravithilagan26 explains the need for
Performance Management System and right Performance Appraisal System. They have
criticized the earlier approach of Performance Appraisal system as the one that does more
harm than good.
Superiors feel uncomfortable about giving appraisals. They don’t like the idea of
‘playing God’. Then the authors continue to give the advantages of the newer ways and
especially of the Management by Objective way of appraisal. The newer method shift the
emphasise away from inferred traits and focus more on observed behaviours and results.
The modern performance review process includes three essential steps.
Goal setting, Progress review and Performance review. Performance Appraisal System is
the continuous process of evaluating the performance behaviour and the results of such
behaviour in the work spot. Performance Appraisal refers to all forms and procedures used
to evaluate the contribution and potentials of employees that were traditionally used to as
a mechanism of controlling employee through salary administration, reward
administration, promotion and disciplinary action.
Performance Management System is a broader term than Performance Appraisal,
emphasised as total quality management programme using all of the management tools,
including Performance Appraisal to ensure achievement of performance goals.
The ultimate objective of performance management system is to ensure that
organisations link performance plans to its strategic goals, identify key result areas and
performance indicators and enable employees to achieve the desired performance targets.
26 K.Ravichandran & DJE. Ravithilagan, (1997), “Transformation of the Performance Appraisal System;
The Changing Scenario”, HRM Review, February 1997.
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The authors suggest that Performance management system should ideally be
owned and managed by individuals and teams and not by Human Resources Department.
While concluding, the authors say that the system will no longer be just an
evaluation
3:4 360 degree assessments System:
The article on ‘Visual 360; A Performance Appraisal System that’s Fun27 presents
a visual 360 degree assessments saving a lot of time on the administrative front and
making it interesting and simple to the rate people. The author explains in detail how to
use the technology, right from logging on to rating the assessee through visual 360 degree
assessment. It is also easy to use and the raters have reported to be enjoying the process. It
also carries out the task of completing and compiling performance ratings. The program is
connected to various other relevant databases which can verify data and allow analysis.
The people revive and return their assessments quickly through their e-mail
connections. The report can also be prepared in different formats. The heart of the
systems, basically, is developing meaningful competencies that truly reflect the
company’s mission.
On the whole, visual 360 degree assessment is useful for reasonability large
companies; helps employees complete their rational forms easily, helps administrators
track what is happening and provides everyone in the process meaningful reports.
27 Jim Meade, (1999), “Visual 360; A Performance Appraisal System that’s Fun”, HR Magazine, July 1999,
pg 119-122.
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The authors Gary Yukl and Richard Lepsinger, 28 describes ways and means by which this 360
degree feed back tool can be used in the most effective manner. For this tool to be
effective, it is essential to consider the design of the questionnaire, the way it is
administered, the process of feed back reporting and to follow up the process with
supporting activities such as training and development.
The 360 degree feed back can prompt real measurable changes in managers’
behaviour when people receive honest, specific feed back from their boss, colleague and
subordinates, they often come to understand how their behaviour affect others and the
need for changes in some of their behaviour.
In selecting the feed back questionnaire important areas should be considered. The
questionnaire should be well researched, behavioural, positive, if possible personal, and
should be multidirectional.
A successful feed back system depends on enlisting the operation of a sufficient
number of respondents who have knowledge about the manager’s behaviour.
In general the feed back report should be able to clearly identify feed back from
different perspective. The behavioural description obtained from different perspective –
direct report, colleague, bosses – should be presented separately. Aggregate feed back
from different sources tend to make it more difficult to interpret. Compare feed back from
others with manager’s own perception. Going through the process of rating compare the
manager’s rating to the fixed norms.
28 Gary Yukl and Richard Lepsinger, Source How to Get Most Out of 360 degree Feed Back ,: reprinted
with permission from The Complete New Training Library, copy right VNU Business Media, 50, South
Ninth Street, Minneapolis, MN, 55402, USA
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Mark R.Edwards and Ann J Ewans29 in the book describe the powerful tool of 360
degree feedback for employee assessment and performance improvement. It deals with
the feedback tool in three phases. They are 360 degree feed back system as a new
assessment model, implementing 360 degree system and finally the concerns and needs of
the user.
In the first phase, the book underlines the power of 360 degree feed back, its
evolution and variations and applications. The second phase, deals with designing,
implementing and evaluating the 360 feed back process, while the third phase deals with
concern doubts like pitfalls and ways of avoiding them, criticism of 360 degree feed back
system, etc. The book deals with the potential that 360 degree feedback technique
promises for the future in career development, leadership and employee development,
selection and promotion systems, reengineering and redeployment, assessment systems,
team building, succession planning etc.
3: 5 Performance Appraisal for managers and supervisors:
Using archival organisational data, Lyness K.S. & Heilman30 the authors of the
paper on ‘When Fit is Fundamental: Performance Evaluation and Promotions of Upper
Level Female and Male Managers’, examined relationship of gender and type of
position (ie., line and staff) to performance evaluation of 448 upper managers and
relationship of performance evaluation to promotions during the subsequent 2 years
consistent with the idea that there is a greater perceived lack of fit between stereotypical
29 Mark R Edwards and Ann J Ewans (1996), “360 Degree feedback”, Valley Center: Organisational
Universe Systems, P.O. Box 38, 1996, pp 181. 30 Lyness K.S. & Heilman (2006), “When Fit is Fundamental: Performance Evaluation and Promotions of
Upper Level Female and Male Managers”, Journal of Applied Psychology, 91(4), 777-785, ISSN: 0021-
9010.
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attributes of women and requirements of line jobs that staff jobs or men in either line or
staff jobs. Moreover, promoted women had received higher performance ratings than
promoted men and performance rating were more strongly related to promotion for
women than men, suggesting that women were held to stricter standards of promotion.
Diefendorff.J.M., Richard.E.M and Gosserand.R.H 31 expresses the hesitation
dimension of action-state orientation refers to the behavioural capacity to start action on
tasks. In this study, job characteristics (autonomy and routine ness) and job attitudes
(satisfaction and involvement) were examined as moderators of the relation between
hesitation and supervisor ratings of work behaviour (overall job performance and self
management performance) in two different samples. In both samples no difference in
performance was observed. In addition job satisfaction and job involvement were
significant moderators of the relation between hesitation and self management
performance with individuals low in hesitation performing better than individuals high in
hesitation when satisfaction or involvement was low but no difference in performance
were observed when satisfaction or involvement was high process, but will be a
development process.
3: 6 Methods of performance measurement:
In this article the authors Andrew Dutta and Manjeesh K Singh32, attempt to
provide an analysis of the most relevant performance measurement technique.
31 Diefendorff.J.M., Richard.E.M & Gosserand.R.H (2006), “Examination of Situational and Attitudinal
Moderators of the Hesitation and Performance Relation”, Personnel Psychology, 59(2), 365-393,
ISSN:5826. 32 Andrew Dutta & Manjeesh K Singh, (2003), “Appraisal Tools for Today’s Performance Management”,
HRM Review, September 2003.
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The authors explain three methods of techniques available to managers to appraise
the performance of the employees. These modern methods are assessment centre,
management by objective (MBO) and behaviourally anchored rating scale (BARS).
Management By Objective(MBO) was proposed by Drucker based on the results
of his study of managerial behaviours in General Motors. Five step by step approaches to
be followed in this method of appraisal is explained.
Behaviourally Anchored Rating System (BARS) developed by P.C.Smith and
L.M.Kendali is a psychometrically valid reliable, discriminating and useful tool raters.
The caveat given for this is developing suitable BARS is time consuming. Lack of
benchmarking may make implementing BARS an expensive proposition.
In methods explained earlier the appraisal is either done by supervisor or by the
employee or both. But in 360 degree method, the employee gets evaluated horizontally,
vertically and diagonally. The main advantage here is that it provides a very
comprehensive and holistic picture of the performance of the employees.
In conclusion, the authors says that in performance management, a key
management goal is to ensure that the people who contribute the most receive the greatest
rewards.
3: 7 Enhancing the effectiveness of Performance Appraisal:
Dr. Kavita Shastri33, in the article ‘Enabling Human Resource for Excellence in
Performance’, emphasises the importance of human resource and discusses the ways of
making it to excel. The human resource is the most significant and the only factor of
production. The utilisation of all other resources directly depends on the efficient
33 Dr. Kavita Sastri, (2006) “Enabling Human Resource for Excellence in Performance”, Personnel Today,
A Quarterly Publication of NIPM, April-June 2006, Vol XXVII, No 1, pp 27-36.
88
utilisation of human resource. The business performance of any organisation lies in the
hands of its employees and in the organisation’s ability to fully utilise their experience,
talent and energy. The author says it is the motivation that makes the employee perform.
Understanding the needs and wants of the work force, culture and its impact on the
motivation and finding out measures to meet those results in performance. The author
quotes the Herzberg’s two factor theory to explain the motivation factors. The theory may
be applied to the de-motivated workers to improve the performance.
The author says that the Performance Appraisal determines how well an employee
is performing his job. It provides a mechanism for identification of qualities and
deficiencies observed in an employee in relation to his job performance. Potential
appraisal, training, role analysis, career planning, job rotation, quality circles, reward
system and hence we achieve the organisation development. A sound Human Resource
system is perhaps the most important element in the organisational effectiveness, which
not only ensure smooth performance but also long term survival and growth of the
organisation.
Amit Dhiman and Manjari Singh34, in their paper on ‘Appraisal Politics:
Revitalising from assessors perspective’ considers politics in appraisal (PAPS) as a bane
for administrative systems such as performance appraisals. Their paper focuses on the
assessors’ perspective and conceptualizes their perceptions of politics in appraisals
(PAPs). Argue that PAPS constitutes the assessor’ perception about political in behaviours
34 Amit Dhiman and Manjari Singh, ‘Appraisal Politics: Revisitings from assessors
perspective’, VIKALPA-The Journal for Decision makers, Volume- 32 January-march
2007 Number-1.
89
of other stakeholders- reviewers, assesses, and fellow appraisers- and shapes their own
perception. These perceptions will be influenced by certain contextual factors in which
appraisals are conducted. They have focused on four such factors: Ambiguity about
policies, procedures, performance standards, criteria, etc., Assessors’ accountability with
respect to appraisals, Assessors’ and assessees’ instrumentality linked to appraisal, and
organizational support in terms of assessors’ training to conduct better appraisals. The
assessor’s appraisal manipulations discussed in the last section have been termed
as”appraisal politics” and defined as “superior’s deliberate manipulations of employee
ratings to enhance or protect self or department interest” Thus, this paper has tried to
advance the knowledge in understanding the complex appraisal process in a manner that
can be appreciated both by the researchers and the practitioners.
Johari model:
An article in the www.businessballs.com on ‘JOHARI WINDOW’35 explains as
how the Performance Appraisal helps the employee to expand the open area. This was
developed by the American Psychologists Joseph Luft and Harry Ingam in 1950 while
researching the group dynamics.
1
(Open Area)
2
(Blind Area)
3
(Hidden Area)
4
(Unknown Area)
1 – Known by him and by others. (Open Area)
2 – Unknown by himself but known by others. (Blind Area)
35 www.businessballs.com
90
3 – Known by him but hidden to others. (Hidden Area)
4 – Unknown to all. (Unknown Area)
The aim is to increase the area of openness and to increase the productivity in the
group. The aim in any group should be always to develop the Open Area for any person
because when we work in this area with others we are at our most effective and productive
path and the group is at its most productive path too. The area is the space where good
communication and co-operation occur free from distraction, mistrust, confusion, conflict
and misunderstanding.
The Blind area ‘2’ is not an effective or productive space for individuals and
groups. People who are thick-skinned tend to have large blind area.
The organisational culture and working atmosphere have a major influence on
group members’ preparedness to disclose their Hidden selves (the area ‘3’). People fear
judgement or vulnerability and therefore hold back hidden information and feelings.
Large Unknown area ‘4’ will be in younger people and people who lack
experience or self belief. The article brings to focus that the Performance Appraisal helps
to open up more areas of individuals leading to good self development and organisational
development,
Y.Tejaswini36 says that for achieving the goals of the organisation effectively,
proper evaluation of the board is very important. Board evaluation is no longer just an
idea but is now imperative. A Keep It Simple (KIS) approach should be applied. The
author attempts to throw some light on the relative merits and demerits of the methods of
appraisal used to appraise the top executives.
36 Y.Tejaswini, (2004), “Appraising Board Performance: An Overview”, ICFAI Reader, 1 March, 2004, pp
55-61.
91
The Questionnaire Method, Interview Method, Focus Group Method, Self-
evaluation are some of the methods used to evaluate the top executives. The procedures
followed in these methods are explained. Some of the top level executives’ comments on
the Self-evaluation are given. The step by step procedure followed in the method are
given.
Giving an account of peer evaluation, the author argues that, it is not so fruitful as
there are so many ill effects like unpleasant happenings, rating lower or higher than
warranted, lenience in evaluating and providing near average rating. Board Directors
Scorecard method also is explained. While concluding the author says that irrespective of
the method used, the evaluation process should add to the continuous improvement of
effectiveness of the board.
Dana R. Scott37, writes that the employee Performance Appraisal enables the
appraiser to identify, evaluate and develop an individual's performance. It is a tool to
encourage strong performers to maintain their high level of performance and to motivate
poor performers to do better.
The important benefits of a formal appraisal process as given by him are validation
of hiring practices provision of an objective measuring tool on which compensation
decisions, and promotions can be based, identification of training and identification of
employees who have the potential for advancement or who might be better suited in other
areas of the organization. He then goes to explain how best to do it. A key component of
37 Dana R. Scott, (2001), “Evaluating Your Most Important Asset: The Employee Performance Appraisal
Process”, New Hampshire Business Review, August 2001.
92
the Performance Appraisal process is the creation of specific performance criteria or
competencies.
The three common mistakes generally done by the managers are: simply check off
a numerical rating on an evaluation form, not making enough time available to complete
the process and overrating the average performer or underrating the good one.
It is suggested that the Performance Appraisal tool should be updated on a periodic
basis and it should be equitable, accurate and timely. It should also create a process
whereby strong performers are acknowledged and rewarded, average performers are
encouraged and poor performers are coached and counselled toward improvement or
ultimately separated from the organization.
3: 8 Performance Linked Reward system:
Dr. Chandresh Agarwal38 et al in their paper on ‘Performance linked reward
management system (PLRS)’ has studied the effectiveness of PLRS in different
organization. The study is based on data collected from various sectors like Corporate,
academics and Government. Designing a performance linked reward scheme is
conditioned by a variety of factors such as the nature of business, types of technology, the
attitude of unions and human resource management strategies of the organisation.
The article written by Jess Gómez,39 and released by Ag Labor Consultant
Bakersfield, California from Gaisal Gregorio Billikopf Encina University of California
38 Dr. Chandresh Agarwal, Dr. Babita Agarwal and Prof. Shweta Soni, (2005), “Personal Linked Reward
System: A Strategic Approach towards Accomplishment of Work and Source for High Performance and
Excellence in Organisation”- Management Trend, Journal of Department of Business Management, vol. 3,
No.1, October 2005-March 2006. 39Dr.Jess Gomez, “Article about Performance Appraisal”, Ag Labor Consultant Bakers Field, University of
California.
93
says that, after employee selection, Performance Appraisal is arguably the most important
management tool a firm employer has at his disposal. The Performance Appraisal, when
properly carried out, can help to fine tune and reward the performance of the present
employees. The study is a descriptive analysis focussed on farm personnel manager.
A farm personal manger may be appraised in terms of understanding labour
management principles, knowledge of labour laws, skills in conducting interview or
ability to counsel employees.
According to Jess Gomez, Performance Appraisal is a vehicle to validate and
refine organizational actions (e.g. selection, training); and to provide feedback to
employees with an eye on improving future performance. As a conclusion, the authors
suggest that the comparison method is good, as it will prevent raters from placing all
employees in one category.
Rogers40 (1995) in his paper on ‘Choosing Personnel Management: Holistic
Approach’ says that Personnel management is a joint process that involves both the
supervisor and the employee, who identify common goals which correlate to the higher
goals of the institution. This process results in the establishment of written performance
expectations, later used as measures for feed back and performance evaluation. Reward is
an aid to better performance. They can motivate the learning of skills and the development
of knowledge. A sample of 70, consisting of employees from Corporate, Government and
Academic were studied. In academics, 35 who are working as Lecturers, Readers and
Professors have responded. The remaining 35 are selected from corporate and government
40 Roger.D, (1995) “Choosing Personnel management: Holistic approach”, CUPA Journal 1995, Summer.
94
sectors. Structured questionnaires are used to collect information. Likert scale is used to
analyse the effectiveness of this system. Comparative study in various sectors is done.
Rewards are classified into internal rewards and intrinsic rewards or external
rewards (money, fringe benefits, profit sharing etc.). Bonus schemes should be based on
contribution to productivity and profitability according to a pre-determined formula with
gains some times distributed among the individual employees on the basis of merit rating.
Productivity bargaining: Employee stroke options plan (ESOP) and Competency
based Pay are some of the PLRS suggested. It was concluded that in the corporate world
PLR system is functioning well compared to academic and government sectors. Reward
system is the motivational factor to excel the performance. In the academic sector
performance is low. There are no benefits, perks or monetary aids for better performance
and hence employees are not interested in doing a good job. The mean (m=67) is found to
be significantly higher in the corporate world as compared to the government (m=53) and
academic sector (m=50).
The calculated value of Z in the Corporate Vs Academic is 5.36, where as in the
Corporate Vs Government is 9.09; in both the cases the value of Z is greater than the
tabulated value of Z (1.96) and hence the alternative hypothesis (H1) is accepted. Overall
contribution and satisfaction of the employees is the highest in the corporate world. To
keep them committed and belonging, motivate them to monetary and non-monetary
methods for optimum use of potential in work.
Edward Lawler41 in ‘Treat People Right’, (2003), argues while it may appear
simple enough it is also a fundamental key to creating effective organisations. However,
41 Lawler III E.Edward, (2003), “Treat People Right”, Josey Boss Inc., 2003.
95
this is more difficult than it seems to do. The challenge is to identify and implement
organisation designs and practices that are good for both individuals and organisations.
Treating people right leads the relationship between the employee and the organisation
into a virtuous spiral. He explains that when organisations reward people for
performance they perform better, which propels the organisation to higher levels of
performance. The organisation is then able to reward them better, attract and retain more
talent which in turn spirals the organisation towards even better position.
3: 9 Methods of performing Performance Appraisal:
R.Venkataramana Rao42 says that a Performance Appraisal can be made
confidential or openly. A confidential and open system are defined by him. The pros and
cons of the systems are also given by the author. He further has given he steps involved in
modern Performance Appraisal system. This is a research paper with objectives to study
the existing system of Performance Appraisal system for executives, to find the
effectiveness of the working of the system, to identify the lacunae in the system, to
determine the perception of the officers towards Performance Appraisal and to get inputs
on how effective an open Performance Appraisal system is.
Carter McNamara43, says that yearly performance reviews are critical. Organizations
are hard pressed to find good reasons why they can't dedicate an hour-long meeting once a
year to ensure the mutual growth of the employee and the organization. Performance
reviews help supervisors feel more honest in their relationships with their subordinates
42 R.Venkataraman Rao, (2005), “Making Performance Appraisal an Open System”, HRM Review, August
2005, pp48-57 43 Carter McNamara, MBA, PhD, (2007), “Basics of Conducting Employee Performance Appraisal’
Authenticity Consulting, LLC “, The Field Guide to Leadership and Supervision, 1997-2007.
96
and feel better about themselves in their supervisory roles. Subordinates are assured clear
understanding of what's expected from them, their own personal strengths and areas of
development and a solid sense of their relationship with their supervisor. Avoiding
performance issues ultimately decreases morale, decreases credibility of management,
decreases the organization's overall effectiveness and wastes more of management's time
to do what isn't being done properly. Conduct the following activities.
1. Design a legally valid performance review process.
2. Design a standard form for Performance Appraisals.
3. Schedule the first performance review for six months after the employee starts working
4. Initiate the performance review process and initiate the process for the upcoming
meetings.
5. Have the employee suggest any updates to the job description and provide written
input to the appraisal.
6. Document your input -- refer the job description and performance goals.
7. Hold the Performance Appraisal meeting.
8. Update and finalize the Performance Appraisal form.
9. Nothing should be surprising to the employee during the appraisal meeting.
The author thus gives the procedures to be followed in formatting a PA and while
emphasizing the importance of the same.
Payal Chananinia44 in his article, ‘Self-appraisal must lead to performance
development’, has emphasised the importance of the self-appraisal. According to the
author, the first step in assessment is to decide the rating factors, on the basis of the
44 Payal Chanania (2008), “Self-appraisal must lead to Performance Development”, The Hindu,
Opportunities, November 5, 2008, p4.
97
company values. But, the standards should tie with the job description and what the
employee actually does on the job. The questionnaire for assessment should depend on the
industry type, organisational structure, company culture and total number of employee.
Relevant information on perceived strength, achievements, areas of development
potential, areas of improvement, trainings needs, likes and dislikes of the employee,
additional work/responsibility the employee would like to shoulder, action to be taken to
improve performance, immediate and long term goals to be achieved, and other
suggestions. Self-appraisal forms can have questions on top job priorities, elements of job
that he finds interesting/difficult, factors that impacted his performance, tasks that were
not successful and how supervisor/co-worker can help in achieving the goals. The self-
appraisal form can have a combination of both open ended and multiple choice questions.
In conclusion, the author says that it is essential to compare the self-assessment with the
rating of the supervisors. Therefore, the self-review serves as a starting point that should
be integrated with other methods to arrive at a balanced evaluation.
Computerised Performance Appraisal System:
M.V.V.Satyanarayana45 in the article “Computerised Performance Appraisal
System for Managers” describes the development and testing of an innovative
behaviourally based Performance Appraisal system for managers. The system was
designed to elicit response from groups of raters on the degree of a variety of professional
competencies that a manager should possess. In total the system applies a systematic
45 Satyanarayana M.V.V., (1991) “Computerised Performance Appraisal for Managers” Information
Technology in every day life, CSI – 91 Proceedings, page 107-115, September 29-October 2, 1991, New
Delhi, Editor M.L. Goyal, TATA McGraw – Hall Publishing Company Ltd., New Delhi., Proceeding of the
XXVI Annual Conference of Computer Society Of India.
98
developmental, formative approach to Performance Appraisal and includes a presentation
of a ratee’s strengths and weakness.
PRAISE is the modern appraisal system advocated by him. Praise, the acronym
standing for Performance Review, Analysis and Improvement System for Executives to
Employees is a developmental, formative, computerised, multirater, multi-trait
Performance Appraisal system. The system is based on the assumption that the desire for
growth is latent in everybody and that individuals look to the work place to grow
personally and professionally.
The PRAISE is designed to be used for both personal development and
development by consultants and trainers.
While this paper concentrates on the Performance Appraisal of middle level
managers, the complete PRAISE process encompasses procedures for appraising any role
incumbent from the executive to supervisor to employee level of the organisational
hierarchy. In summary, the PRAISE process helps the administrators to improve their
diagnostic and intervention skills and utilise and develop human resources effectively.
3: 10 Performance Appraisal of Employees in other countries:
Robert D. Bretz, Jr., George Milkovich, and Walter Read46 in their working paper
have studied the current status of the Performance Appraisal system followed in the
US. The most widely followed system is the MBO. Other formats such as trait-based
rating scales are far less common among these employee groups. However," mixed"
formats are common, and rating scales or ranking procedures are often used to supplement
MBO-based approaches. It is common to spend about 7 hours per year assessing the
46 Robert D. Bretz, Jr., George Milkovich and Walter Read, ‘Appraisal Research and Practices’, Working
Paper 92-15, Center for Advanced Human Resources (CAHRS).
99
performance of each employee at higher organizational levels and about 3 hours per year
for each employee at lower levels. Cognitive Processing Issues, Rater/Ratee Personal
Characteristics, Psychometric Issues are considered in the appraisal process.
The conclusion is that the authors have drawn from this and from earlier reviews
of appraisal. Research says that our knowledge of the rating process has expanded greatly
in recent years but remains fragmented. This fragmentation appears to be caused by
fundamental differences between the measurement aspects of appraisal research and the
organizational purposes of Performance Appraisal. From a measurement perspective, the
necessity to isolate specific effects has resulted in single-issue studies conducted in
laboratory settings. Moreover, most of this research addresses the consistency, not
necessarily the relevance, of the measurement. The effects of prior expectations, prior
knowledge of performance and memory decay have been studied separately from the
alternative uses of appraisals (administrative or developmental), the characteristics of
raters/ratees or the types of scales and formats employed.
Naceur Jabnoun and Khalefa Sedrani47 in their article TQM, Culture, and
Performance in UAE Manufacturing Firms investigates the TQM practices, corporate
culture and performance in UAE manufacturing firms with the help of questionnaires
containing three topics, distributed to General Managers, Quality Managers, Operation
Mangers and other functional Mangers. The impact of TQM on the performance of UAE
manufacturing companies is also studied.
47 Naceur Jabnoun, University of Sharjah & Khalefa Sedrani, Ministry of Education, UAE, (2005) “TQM,
Culture, and Performance in UAE Manufacturing Firms Quality Management”, Journal Vol. 12, No. 4,
2005.ASQ., www. asq.org pp 8-18.
100
The first part of the questionnaire is concerned with the demographic variables of
the respondents in addition to the number of employees in the organisations. The second
part is concerned with TQM practices. The critical TQM factor developed by Huarng and
Chen (2002) is used in framing this part of the questionnaire. The factors include seven
dimensions namely, leadership, customer focus, continuous improvement, supplier
partnership, empowerment, training and bench marking.
It is found that, customer focus and continuous improvement and management
commitment to quality are significantly correlated with all quality and performance
improvement.
It is to be noted that all performance measures had their highest correlation coefficient
with customer focus and continuous improvement, which is the most widely used TQM
dimension. Training is found to correlate with quality performance but not with business
performance. Finally the bench marks are found to correlate with quality performance in
addition to business performance.
3: 11 Confidential Report Writing System of Public Sector:
This case study by PRK.Raju and LK.Jena48 provides the background and
description of Performance Appraisal and its different methods. Further it gives a detailed
insight in to the new Performance Appraisals system of ONGC.
The authors when giving the definition of Performance Appraisal state that the
dictionary meaning of the verb ‘to appraise’ is ‘to fix a price for’ or ‘to value an object or
thing’. Again the Performance Appraisal is concerned with the process of valuing the
person’s worth to an organisation with the view to increase it.
48 PRK.Raju and LK.Jena, (2006), ‘The New Face of Performance Appraisal: ONGC Experience’, HRM
Review, April 2006.
101
The three types of Performance Appraisal explained are, the confirmation
appraisal, periodic Performance Appraisal and potential appraisal. ONGC is the company
of India running for a turn over of US Dollar 50 billion in five years. At ONGC, every
body matters, every soul counts. ONGC has a unique distinction of being a company with
in house service capabilities in all the areas of exploration and production of oil and gas
and other related oil field services, employing over 18,000 experienced, technically
competent executives, mostly scientists and engineers.
Performance Appraisal: Executive Performance Appraisal system is used in
ONGC and is assessed for the calendar year. There are reporting, reviewing and accepting
officers to assess the performance. Forced distribution method, where by employees
working in a particular centre disciplines are relatively appraised with four grades of Very
Good, Good, Adequate and Not Adequate. New system of Performance Appraisal is
suggested for ONGC. Then the authors go to narrate the procedure of Performance
Appraisal with the new Performance Appraisal system.
The various levels of appraisal and the authorities who have to do it are discussed.
While giving the benefits of the new Performance Appraisal system, the list class III and
class IV employees have distinct appraisal system, the class II officers at the threshold of
promotion to class I officer are assessed like that of class I officers and moderation
exercise is done after the reviewing officer’s assessment. ONGC is setting an example for
other Public Sector Undertakings.
102
V. Lakshamipathy 49 in his essay, ‘Personal Performance, Productivity and
Evaluation in the Public Sector’ deals with the technique of Performance Appraisal and its
utility in improving the productivity of public enterprises. Though specifically focusing
on government undertakings, Lakshamipathy’s analysis has relevance to most corporate
organisations, whether in public or private sector. His stress is on viewing and utilising
Performance Appraisal mechanism as an important tool of organisational development.
He advocates a close linkage of Performance Appraisal with Management by Objectives.
This linkage requires developing greater awareness about the nature and philosophy of
appraisal programme and the expectation from individual personnel and the reward
system..
Performance Appraisal in Public Enterprises, 1985 by V.Lakshmipathy50 talks of
how in the past the philosophy, perspectives and practices of appraisal were quite simple
and in time with organisational styles, Human needs, products, consumption patterns and
business styles have acquired new complexities due to rapid advances in technology
which in turn have stimulated multiple approaches to define knowledge in organisation.
Yet, personal performance, which is the anchor of individual goals and enterprise
objectives, continues to be treated as an inert object amenable to manipulation through
levers like rewards and incentives. All these elements while they are effective to a certain
degree cease to be so beyond a certain frame of time, function and place. On the other
hand, even a marginal innovation in either the procedures or process of appraising
49 V.Lakshamipathy (1992), “Personal Performance, Productivity and Evaluation in the Public Sector”,
Administration of Human Resources Comparative FOCI, Arihant Publishers, pp129-137. 50 Lakshmipathy.V., (1985), “Performance Appraisal in Public Enterprises”, Himalaya Publishing House,
1985.
103
performance facilitates better awareness of the job and generates greater willingness to
perform at every level with a minimum of dysfunctional side effects and costs.
The study area is the executives in grade I-VI, working with a hi-tech public
sector unit engaged in casting and forging requirements of various Indian and Foreign
industries.
The existing system of Performance Appraisal is studied and elaborated. Random
sampling method is used to select 50 respondents and the data were collected by the way
of personal interview. Based on the study it is found that, a team of performer is to be
identified and the team of performers wants the appraisal to be open to understand the
need for training and the industries expectations. The results show that, a good
Performance Appraisal system is required to see to the training need, to produce result
oriented officers in the highest post, to bring out the reflection of the individuals and thus
if the appraisal is made open, it can be more liable to lead competence, which will help the
organisation to become competitive in the industry. The author has correctly lists out the
limitations and the scope for future studies on this topic.
104
3: 13 Concept development and Problem identification from earlier reviews: The reviews done in this chapter are consolidated in the
table given below:
Table 3: 1 Concept development and Problem identification from earlier reviews
Rick Panning and
Beverly Farrell
Performance Appraisal Process — What to
expect as a laboratory professional
Performance management is an ongoing cycle from
recruitment
Asha Nagendra An Analysis of Performance Appraisal System in
the Automobile Industry
The adequacy or the inadequacy of the performance
appraisal system in companies in the automobile sector
compared
Rachna Narula Appraising performance in knowledge society-
Area of academics
Need to appraise the performance and teaching style and
content
Shagufta Jabeen Performance Appraisal System in Industries
Implication to Education System
The adequacy of Performance Appraisal System is
compared.
Biswajeet Pattanayak Performance Appraisal system of Lintas India
Limited
Examines employee’s strength and skills in different key
areas and not his personal traits.
105
T.V.Rao Performance Appraisal System in Larsen and
Toubro Ltd
to develop performance by guidance and training-
appraisee to discuss the performance, strength and
weakness.
Brian Flannigon Turn Around from Feedback Confidentially - action plans were drawn out and group
recommendations.
N.Krishna Kishore and
V.V.Ramani
Performance Management System: A Case study
on Indian Fertilizers Industry
Restructuring the system by studying the use of P.A
System as a developmental tool or as a appraisal tool
J.Abhi Solomon A Study on the Effectiveness of Performance
Appraisal System at SPIC Limited
satisfaction level of employees towards fixing of target,
peer group, promotion, pay rise, increments and towards
the PA system.
J.Nalini A Study on Performance Appraisal of Employees
with respect to Dharangadara Chemical Works
Limited (DCW)
Relationship of experience, job knowledge, quality of
work with Performance Appraisal system.
Dr. Suvarna Sen Innovations in Performance Management’ Creating a motivating work environment through
appropriate incentives, feedbacks and rewards.
106
Dipti Sethi Performance enhancing culture - A Rationale
Performance management Implications and
Insight
Top satisfaction, involvement and commitment and
employees attitude
Tapomoy Deb Driving Human Resource to Performance: The
New Mandate
Organize, motivate, equip and direct ordinary people to
their highest possible level
K. Ravichandran and
DJE. Ravithilagan
Transformation of the Performance Appraisal
System; The Changing Scenario
Goal setting, progress review and performance review.
Jim Meade Visual 360; A Performance Appraisal System
that’s Fun
Using the technology, right from logging on to rating the
assessee
Gary Yukl and Richard
Lepsinger
How to Get Most Out of 360 degree Feed Back Essential to consider the design of questionnaire, the
way it is administered, the process of feedback reporting
and so on.
Mark R.Edwards and
Ann J Ewans
360 Degree feedback Assess, implement and concerns the need of the user.
Lyness K.S. & When Fit is Fundamental: Performance Examine the relationship of gender type of position
107
Heilman Evaluation and Promotions of Upper Level
Female and Male Managers
Diefendorff.J.M.,
Richard.E.M and
Gosserand.R.H
Examination of Situational and Attitudinal
Moderators of the Hesitation and Performance
Relation
Examines as moderators of the relation between
hesitation and supervisor ratings of work behaviour
Andrew Dutta &
Manjeesh K Singh
Appraisal Tools for Today’s Performance
Management
Assessment centre, Management by Objective (MBO)
and Behaviourally Anchord Rating System (BARS)
1 Dr. Kavita Sastri Enabling Human Resource for Excellence in Performance Importance of human resource and the ways of making
it excel.
Y.Tejaswini Appraising Board Performance: An Overview Importamce of proper evaluation of the board
Dana R. Scott Evaluating Your Most Important Asset: The Employee
Performance Appraisal Process
Identify, evaluate and develop an individual
performance.
Dr. Chandresh
Agarwal, Dr. Babita
Agarwal and Prof.
Personal Linked Reward System: A Strategic
Approach towards Accomplishment of Work and
Source for High Performance and Excellence in
Designing a performance linked reward system.
108
Shweta Soni Organisation
Dr.Jess Gomez, Article about Performance Appraisal Understanding labour management principles,
knowledge of labour laws and ability to councel
employees
Roger.D Choosing Personnel management: Holistic
approach
Identify common goal which correlate to the higher
goals of institution
Edward Lawler Treat People Right Organisations reward people for performance they
perform better
R.Venkataramana Rao Making Performance Appraisal an Open System Performance Appraisal System required to see training
needs to produce result oriented officers
Carter McNamara Basics of Conducting Employee Performance
Appraisal
Difficulties in yearly performance reviews and
importance of continuous assessment
Payal Chanania Self-appraisal must lead to Performance
Development
It must lead to performance development
Satyanarayana M.V.V Computerised Performance Appraisal for An innovative behaviourally based performance
109
Managers” Information Technology in every day
life
appraisal system for managers
Robert D. Bretz, Jr.,
George Milkovich and
Walter Read
Appraisal Research and Practices Process has expanded greatly in recent years but
fragmented
Naceur Jabnoun and
Khalefa Sedrani
TQM, Culture, and Performance in UAE
Manufacturing Firms Quality Management
Customer focus, continuous improvement and
management commitment to quality are correlated with
all quality and performance improvement.
PRK.Raju and
LK.Jena
The New Face of Performance Appraisal: ONGC
Experience
Valuing the person’s worth to an organisation with the
view of increasing it
V.Lakshamipathy Personal Performance, Productivity and
Evaluation in the Public Sector
Performance appraisal and it’s utility in improving the
productivity of public enterprise
3: 14 Gap in the study:
In the above table, few of the research papers and its contributions to the management
literature are listed out. The various authors in the articles reviewed here have done elaborate
studies on the Performance Appraisal system and have given their views on the topic. There
are studies on the use of different types of appraisal systems and their advantages and
disadvantages, Performance Appraisal for different kinds of companies and so on. But there
is a gap in the above referred studies, which clearly shows that there is no earlier study on the
need for revamping the existing Performance Appraisal system of a major Public sector
undertaking – the Indian Railways or any other organisation of such calibre. The Confidential
Report Writing system is not examined for its validity by earlier studies. No other known
study has suggested any alternative system for the existing method of Confidential Report
Writing system. Again the electronic appraisal system suggested by M.V.V. Sathyanarayana,
who has written about electronic system, has not gone intensively in preparing any electronic
appraisal system. Since these gaps were identified, the researcher intended proceed for
research in the identified areas.