COMPANY PROFILE

COMPANY PROFILE

The first brick was laid at Sigma Secunderabad, the first corporate hospital in Andhra

Pradesh. Since that momentous day the Sigma Hospitals has ascended to a position of

leadership in healthcare in Secunderabad and Jeedimetla. Driven by the vision of its Chairman

D. Krishna Kishore Reddy, Sigma Hospitals has transformed the landscape of healthcare in

Andhra Pradesh. The group owns and manages 2 hospitals.

With nursing college, telemedicine, DBR leadership status extends to all aspects of the health

care spectrum.

GROUP OF COMPANIES

Sigma Hospitals – 2

DBR Diagnostics – 6

Nursing College – 1

Hospital Overview

Sigma Hospitals is a multi speciality with 110 beds tertiary care centre. It has over 50 multi

speciality with surgical disciplines. Most of the consultants at the hospital have international

experience either educational, work experience related or observational. The average staff to

patient ratio for the Hospitals is 3:1 with a 1:1 ratio prevailing in priority areas like the

Intensive Care Unit and the Cardiac Care Unit.

Medical MilestonesSigma Hospitals has several notable accomplishments to its credit. The hospital has been the

first in the Andhra Pradesh to pioneer and perform several revolutionary procedure,

technologies and services such as:

* Advance orthopaedic surgery knee & hip replacement, etc

* Baloon and Laser angioplasty techniques

* Key hole spinal surgery

* Modern emergency care with Emergency Services

* Largest series of surgical and invasive cardiac procedure to treat congenital heart disease.

Owned Hospital

2 Hospitals with 110 beds, 50 beds

5 cardiothoracic units

1 Oncology Units

70 Intensive Care beds

Sigma Education & Research Foundation

* 1 College of Nursing

* Clinical Trials

* Course in Emergency Medicine

The Centre Of Excellence At The Hospital Are

* Cardiology and cardiothoracic Surgery * Cosmetic, Plastic, Hand Surgery

* Critical Care Medicine

* Diabetology & Endocrinology

* Nephrology & Urology

* Neurology & Neurosurgery

* Obstetrics, Gyanaecology & IVF

* Oncology

* Orthopaedics

MISSION & VISION

Our mission is to bring the highest standard of healthcare within the reach of every individual.

In doing so we are committed to the achievement and maintenance of excellence in medical

education, research and healthcare for the benefit of humanity.

Today India is evolving itself as a healthy nation, proud nation. Its people not only have the

best of healthcare expertise, but are geared to provide it to the rest of the world as well.

Tomorrow we envision this field as global brotherhood, a two way street, in which every

other nation will have the access and availability of the best of healthcare form this great

country. A country where the finest tradition of Indian hospitality and the cutting-edge of

Indian intellect will come together to bring the highest quality of healthcare to people all over

the world.

Company Profile

Sigma Hospital is most reputed Multi-Speciality Hospital. It is situated in Secunderabad. It is

improving its infrastructure at a rapid pace and is introducing new departments and having

well experience and senior staff and also appointing new specialised employees to use New

technology and New medical equipments to diagnose the all types of critical diseases.

Therefore it is continuously appraisal in the organisation.

The hospital has 150 employees who work for 21 various departments such as

1. Cardiology Department

2. Radiology Department

3. Pathology Department

4. Physiotherapy Department

5. Nursing Department

6. Front office Department

7. Billing Department

8. Emergency Department

9. Maintenance Department

10. Anaesthesia Department

11. Operation Theatre Department

12. Dialysis Department

13. Gynaecology Department

14. Gastroenterology Department

15. Dental Department

16. Plastic Surgery Department

17. Intensive Care Department

18. Bio-medical Department

19. Food and Beverage Department

20. Orthopaedics Department

21. Medical Records Department

SERVICES

Sigma Hospital treats patients and provides healthcare services. The hospital conducts

different types if diagnostics services and treatment to the patients. Following services are

available in different departments

CARDIOLOGY:

Non-invasive Cardiology

E.C.G, ECHO, T.M.T, HOLTER

Invasive Cardiology

Coronary Angiogram, coronary angioplasty, temporary pacemaker, permanent pacemaker,

IABP

RADIOLOGY:

X Ray, CT scan, Ultrasound, MRI

PATHOLOGY

Bio Chemistry, microbiology, histopathology, blood bank

PHYSIOTHERAPY

IFT, SWT, TENS, Laser, Ultrasound therapy, VAX Therapy

GASTROENTEROLOGY

Laproscopy, Endoscopy, Scolonoscopy, Laser treatment

PLASTIC SURGERY

Skin grafting, facial grafting, burns treatment

EMERGENCY

All types of emergency treatment

PERFORMANCE APPRAISAL PROCEDURE IN

SIGMA HOSPITALS

The method of performance appraisal followed in the organisation is briefly explained in the

following points:

The Performance Appraisal system in Sigma Hospital is based on the belief that “it is

basic and vital record of the performance of an all employees and executives and

basic input to judge his/her future advancement in his/her career” It is considered as a

“Development Process” rather than a “fault finding” method.

The performance appraisal system is for both management staff and executives.

The system of performance appraisal chiefly involves information in the confidential

reports.

In preamble to the appraisal system, the management has spelt out the following as

objective of executive performance appraisal system.

To evaluate the extent of achievement of the result / targets by the individual

executing during the year.

To provide objective information on performance to the executives.

To review and plan for his better performance.

To understand the gap in knowledge and skill with a view to provide guidance and

training.

To identify the potential of an individual executive so that dependable management

successive plans be built upon.

While doing performance appraisal there is no chance of any injustice to the any

employees.

While doing performance appraisal in Sigma Hospital all employees are recognizing

correctly according to their performance in work field.

According to Employees performance they are getting marks in appraisal system.

According to their marks employees are getting increments and promotions and

getting the chance to training and development and learning new things.

While doing performance appraisal HODs are giving chance to the employees to give

their Feedback and Opinion about their appraisal. HODs are giving full freedom to

the employees to speak about their appraisal. And HODs are finding they are satisfied

with present Performance Appraisal System or not. It no means what performance

should b adjust in present appraisal system.

HODs are really explaining to the employees throughout the year what performance

they done about their work. What mistakes they have done and where they are

having very high performance and where they are having very much poor

performance and where they should improve their performance.

What are the future goals to be achieved in next financial year

HODS are explaining to employees how to achieve this goals and how to improve

their Quality of Work Life.

HODs are explaining how Employees whoa re should go for go for training in next

financial year.

CONCEPT OF PERFORMANCE APPRAISAL

In the fast changing trend towards globalisation, today many organisations are striving hard to

modernise themselves. One of the most important hallmarks of a modern organisation is to

have performance appraisal system.

Performance appraisal is the systematic evaluation of the individual with respect to his

performance on the job and his potential or development. According to Flippo, performance

appraisal is “a systematic, periodic and so far as human possible, an impartial rating of an

employee‘s excellence in matters pertaining to his present jobs and his potentialities for a

better job”.

Performance appraisal is concerned with the process of valuing an employee’s worth to an

organisation, with a view to increasing it.

HISTORY OF PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th century can be

traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the

same may be said about almost everything in the field of modern human resources

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

performance, appraisal really dates from the time of the Second World War - not more than

60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale

of things historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make judgements about those

one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and

universal. In the absence of a carefully structured system of appraisal, people will tend to

judge the work performance of others, including subordinates, naturally, informally and

arbitrarily. The human inclination to judge can create serious motivational, ethical and legal

problems in the workplace. Without a structured appraisal system, there is little chance of

ensuring that the judgments made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is,

appraisal was used to decide whether or not the salary or wage of an individual employee was

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

was found to be less than ideal, a cut in pay would follow. On the other hand, if their

performance was better than the supervisor expected, a pay rise was in order.

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

felt that a cut in pay, or a rise, should provide the only required impetus for an employee to

either improve or continue to perform well. Sometimes this basic system succeeded in getting

the results that were intended; but more often than not, it failed. For example, early

motivational researchers were aware that different people with roughly equal work abilities

could be paid the same amount of money and yet have quite different levels of motivation and

performance. These observations were confirmed in empirical studies. Pay rates were

important, yes; but they were not the only element that had an impact on employee

performance. It was found that other issues, such as morale and self-esteem, could also have a

major influence.

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

1950s in the United States, the potential usefulness of appraisal as tool for motivation and

development was gradually recognized. The general model of performance appraisal, as it is

known today, began from that time.

MODERN APPRAISAL SYSTEM

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual or

semi-annual), in which the work performance of the subordinate is examined and discussed,

with a view to identifying weaknesses and strengths as well as opportunities for improvement

and skills development.

In many organizations - but not all - appraisal results are used, either directly or indirectly, to

help determine reward outcomes. That is, the appraisal results are used to identify the better

performing employees who should get the majority of available merit pay increases, bonuses,

and promotions.

By the same time, appraisal results are used to identify the poorer performers who may

require some form of counselling, or in extreme cases, demotion, dismissal or decreases in

pay. (Organizations need to be aware of laws in their country that might restrict their capacity

to dismiss employees or decrease pay.)

Whether this is an appropriate use of performance appraisal - the assignment and justification

of rewards and penalties - is a very uncertain and contentious matter.

HRD AND PERFORMANCE APPRAISAL

The strength of any organisation is its people. For any organisation to grow fast, people

should be attended to properly by recognizing their talents, developing their capabilities and

utilizing them appropriately.

Human resource also have a need to grow and develop themselves professionally.

Development of their capabilities keeps them to be psychologically vital. This development

needs to be monitored in terms of matching it with organisational requirements. Therefore,

any organisation, interested in developing the capabilities of its employees should understand

the nature of capabilities required to perform different functions. These could be technical

capabilities, managerial capabilities, behavioral capabilities and conceptual capabilities.

There are three behaviour dimensions involved in most of the capabilities cognitive, affective

and active. The cognitive dimension of capability involves gaining of understanding

knowledge, information, information insight etc, in order to perform the task. The affective

dimension deals with gaining the motivation and desire to use the knowledge and

understanding. The active dimension deals with the skill involved actually in performing the

task.

Development involves acquisition of new capabilities (cognitive, affective, and active). In the

organisational context it involves, acquisition of capabilities (technical, managerial,

behavioral and conceptual) that would enable a person to person to perform well the different

functions associated with the role he is performing to the given point of time the role he is

likely to perform subsequently.

Development cannot be forced on anyone, the individual should himself have to show interest

in developing his own capabilities. The one should make clear choices about the directions in

which he would like to grow and develop and then only he can develop his capabilities faster

and better. One should always be aware of his strengths and weaknesses, he should be able to

identify the opportunities within and outside organisation for his development.

Feedback also plays an important role in developing or motivating in behavioural capabilities.

When an employee knows that his performance is being appraised, he would try to maintain it

high because every individual has the need to maintain his self – respect. As he is being

compared with others, the moment the recognizes any inadequacy in his capabilities, he

would try to acquire these capabilities. So organisation has to create a climate that motivates

people to acquire more capabilities.

It can be done through linking performance with rewards and creation of learning

opportunities.

OBJECTIVE OF PERFORMANCE APPRAISAL -

THE PAST

Due to lack of understanding of the potential uses performance appraisal systems by everyone

and improper designing of performance appraisals, the appraisals system are designed to meet

following objectives of an organisations.

To control employee behaviour by using it as an instrument for rewards, punishments and

threats.

To make decisions regarding salary increases and promotions

To place people to do the right kind of jobs

To identify the training and developmental needs of the employees.

The following assumptions are made to make above objective

Employee’s motivation levels are likely to be high when they do not know how their boss

has rated them. This enhances the control value of appraisals.

When boss is in good position the appraisee should not provide any inputs at the time of

appraisal because most employees would like to put themselves in best possible light and

therefore bias the rating of bosses.

The appraisers alone can generate objective date for placement and promotion decisions.

Training needs can be decided through confidentially rated appraisals.

Assessment on a few standard dimensions like honesty, sincerity, drive, job-knowledge,

dependability, leadership, etc, is sufficient to know about an individual.

NEW OBJECTIVES OF PERFORMANCE

APPRAISALS

It can be an instrument in helping employee to understand his own strength and

weaknesses with respect to his role and functions in the company.

It helps in the identification of developmental needs of employees with respect to the roles

and function.

Providing feedback to employees to know where they stand

Developing valid date for administrative decisions concerning placements, pay,

promotion, punishments, etc.

Developing positive superior-subordinate relationships.

It increases the mutuality between each employee and his supervising officer so that every

employee should feel happy and contribute his maximum to the organisation.

By communicating an employee and his superior, employee get to know the expectations

of his boss form him and superior get to know what the difficulties of his employee and

try to solve it, and thus they both try to accomplish the task together.

Performance appraisal provides the opportunity for employee for self-Reflection and

individual goal settings by which he can develop himself.

PURPOSE OF APPRAISAL

Performance appraisal plays an important role in the overall process of performance

management. Performance appraisal has many facts. In general, appraisal serves a two fold

purpose, (1) to improve employees work performance by helping them to realize and use their

full potentials and (2) to provide information to employees and mangers for use in making

work-related decisions.

Appraisal systems serve following purposes also:

Appraisals provide legal and formal organisational justification for employment decisions to

promote outstanding performer. Appraisals serve as a key input for administering a formal

organizational reward and punishment system.

Appraisals are used as criteria in test validation

Appraisals provide feedback to employees and thereby serve as vehicles for personal and

career development.

Appraisals can help establish objectives for training programs once the development of

employment are identifies.

Appraisals can help diagnose organisational problems as a result of the proper

specification of performance levels.

PRINCIPLES OF PERFORMANCE APPRAISAL

Effective performance appraisal systems contain two basic systems operating in conjunction:

an evaluation system and a feedback system.

The main aim of the evaluation system is to identify the performance gap (if any). This gap is

the shortfall that occurs when performance does not meet the standard set by the organization

as acceptable.

The main aim of the feedback system is to inform the employee about the quality of his or her

performance. (However, the information flow is not exclusively one way. The appraisers also

receives feedback from the employee about job problems, etc.)

One of the best ways to appreciate the purposes of performance appraisal is to look at it from

the different viewpoints of the main stakeholders: the employee and the organization.

Employee’s ViewpointFrom the employee viewpoint, the purpose of performance appraisal is four-fold:

(1) Tell me what you want me to do?

(2) Tell me how well I have done it?

(3) Help me improve my performance

(4) Reward me for doing well.

Organizational ViewpointFrom the organization's viewpoint, one of the most important reasons for having a system of

performance appraisal is to establish and uphold the principle of accountability.

For decades it has been known to researchers that one of the chief causes of organizational

failure is "non-alignment of responsibility and accountability." Non-alignment occurs where

employees are given responsibilities and duties, but are not held accountable for the way in

which those responsibilities and duties are performed. What typically happens is that several

individuals or work units appear to have overlapping roles.

The overlap allows - indeed actively encourages - each individual or business unit to "pass the

buck" to the others. Ultimately, in the severely non-aligned system, no one is accountable for

anything. In this event, the principle of accountability breaks down completely.

Organizational failure is the only possible outcome.

In cases where the non-alignment is not so severe, the organization may continue to function,

albeit inefficiently. Like a poorly made or badly tuned engine, the non-aligned organization

may run, but it will be sluggish, costly and unreliable. One of the principal aims of

performance appraisal is to make people accountable. The objective is to align responsibility

and accountability at every organizational level.

ETHICS OF APPRAISAL

Ethics of performance appraisal is such an important factor that if it is ignored there arise

several problems and organizational morale issues. Thereby the basic purpose of evaluation

gets defeated. Marion S. Kellog spells out Ten commandments of keeping the appraisals

ethical:

1. Don’t appraise without knowing why the appraisal is required.

2. Appraise on the basis of sufficient information.

3. Appraise on the basis of relevant information.

4. Be honest in your assessment of all the facts you obtain.

5. Don’t write one thing and say another.

6. In offering an appraisals, make it plain that this is only your personal opinion of the facts

as you see them.

7. Pass appraisal information along only to those who have good reason to know it was

made.

8. Don’t accept another’s appraisal without knowing the basis on which it was made.

9. Don’t imply the existence of an appraisal that hasn’t been made.

10. Don’t be partial.

REQUIREMENT OF EFFECTIVE PERFORMANCE

APPRAISAL

Legally and scientifically the requirement of any appraisal systems are relevance, sensitivity

and reliability. In the context of on going operations, the key requirements are acceptability

and practicality.

Relevance is determined by answering the question “what really make the difference between

success and failure on a particular job and according to whom?” the answer is the customer,

relevance also implies the periodic maintenance and updating of job analysis performance

standards, and appraisal systems.

Sensitivity implies that a appraisal system is capable of distinguishing effective from

ineffective performers, if it is not, then the appraisal system cannot be used for any

administrative purpose and will not help in developing the employees in anyway.

Reliability refers to the consistency of judgment. The most reliable will the appraisal of

supervisor than peers and sub-ordinates because their perspective will be different.

Acceptability is the most important requirement of all, the appraisal systems that are

acceptable to those who will be affected by them lead to more favourable reactions to the

process and actually increase trust for top management.

Practicality implies that appraisal instruments are easy for managers and employees to

understand and use.

MAKING PA WORK

Appraisal systems are not successful in our country, fro that matter it’s not very successful in

even world also. A performance appraisal system has much dissatisfaction with salary and

other forms of rewards. As no two persons have some perspective, they’re always likely to be

differences in assessments. So for making performance appraisals systems works effectively

there are some responses from every level of an organization.

Top Management Responses

Corporate managers and top-level decision makers should recognize the link between

development of the capabilities and organisational growth.

They should be willing to encourage upwards communication in the organisation, willing

to take negative feedback, view such feedback with understanding and use it for corrective

actions.

They should examine their personal policies to be in consonance with their human

resources development philosophy and policies.

Managerial Response

There should be more commitment from the top-level management.

Promotion policies, reward policies, transfer policies and support mechanics should be

streamlined before introducing this system.

Boss subordinate distance may decrease resulting in loss of control over subordinate.

Nobody admits his weakness. So open systems of appraisal fail to develop people.

Who Should Evaluate Performance

The most fundamental requirement for any ratter is that he or she has an adequate opportunity

to observe the ratee’s job performance over a reasonable period time (e. g 6 months). This

suggests several possible ratters.

The Immediate Supervisor

The immediate supervisor will be the person best able to relate the individual’s performance

to what the department and the organization are trying to accomplish. He will be the person to

whom the rate will submit his or her report of the work, so he will be the right person to

evaluate actual work performance. Hence he or she also is responsible for reward (or

punishment in rare cases) decisions, and for managing the overall performance management

process.

PeersIn some jobs, such as outside sales, where immediate supervisor cant be with them, then peers

who will be with them for accomplishing the work, will be really helpful in evaluating the

actual job performance. Peers can provide a different perspective on performance from that of

immediate supervisor.

Sub-OrdinatesAppraisals by subordinates can be a useful input to the immediate supervisor’s development.

Subordinates will have first hand information about their supervisors to what extent the

supervisor actually delegate, how well he or she communicates, the type of leadership style he

or she is comfortable with etc. This is important because it demonstrates that what managers

do with upward feedback is related to tits benefits.

Self AppraisalThis refers to the evaluation that employee make of them. Generally, after the employee and

the supervisor make their evaluations, they discuss perceived differences. Here, the aim is not

only to assess a person, but also to encourage employee development, to build team work and

to link job performance with the organization’s goals. Self-rating is particularly relevant for

appraising white-collar employees.

METHODS OF PERFORMANCE APPRAISALSMany regard rating methods or format as the central issue in performance, however is not the

case. First the methods are classified into traditional and modern methods but as the time

passed and competition increased, the methods are classified into Behaviour – oriented

rating methods which focus on employee behaviours, either by comparing the performance

of employees to that of other employees – relative rating system or by evaluating each

employee in terms of performance standards without reference to others absolute rating

systems.

Result Oriented Rating SystemsWhich focus on what an employee produces i.e. volume off sales, number of units, produced

and number of interceptions during a football season.

Evidence indicates that ratings i.e judgements about performance are not strongly related to

results, because ratings are generally depend heavily on the mental processes of the rater. As

these processes of ratings are complex, there may be errors of judgment in the ratings, as per

their perception they rate the employee rather than their work. On the other hand results are

dependent heavily on conditions that may be outside the control of the individual worker,

such as the availability of supplies or the contributions of others. With these considerations in

mind, let’s examine the behaviour and results oriented systems more fully.

Behaviour Oriented Rating MethodsIn this system a rater describes in writing an employee’s strengths, weakness, and potential,

together with suggestions for improvement. This approach assumes that a candid statement

from a rater who is knowledgeable about an employee’s performance is just valid as more

formal and more complicated ratings methods. The statement may b written and edited by the

appraiser alone, or it may b composed in collaboration with the appraisee.

Advantage:

The essay method is far less structured and confining than the rating scale method. It can

provide detailed feedback to sub-ordinates regarding their performance, if essay are done

well.

Thus the process is open ended and very flexible, the appraiser is not locked into an appraisal

system, which limits the expression or assumes that employee’s traits can be neatly scaled.

Disadvantage:This method has its own disadvantages also such as, since different essays are based on

different aspects of each subordinate’s performance, so it becomes impossible for

comparisons across individuals, groups or departments.

It’s difficult to use essay information for employment decisions since subordinates are not

compared objectively and ranked relative to one another.

Ranking

Simple ranking requires only that a rater order all employees from highest to lowest from

“best” employee to “worst” employee. In alteration ranking it first chooses the best employee

then the second worst and so forth.

Advantages:

The greatest advantage of ranking scales is that they are structured and standardized. This

allows rankings to easily compared and contrasted-even for entire workforces.

Ranking scale methods are very easy use and understand.

Disadvantages:

It’s difficult to rank every employee into two categories i.e. best and worst. One employee can

be good at one and other employee may be good at other work so comparison is quite

impossible between them.

Paired ComparisonUse of paired comparisons is a more systematic method for comparing employees to one

another. Here each employee is compared with every other employee, usually in terms of an

overall category such as present value to the organisation. The rater task is simply to chose

“better” of each pair and each employee’s rank is determined by counting the number of time

she or he was rated superior.

Advantage:

Methods that compare employees to one another were useful for generating

initial rankings for purpose of salary administration.

Disadvantage:

Since the comparison is based on upon an overall basis (that is “who is better\’

and not in terms of specific jobs behaviour or outcomes, they may be subject to legal

challenge.

Forced DistributionAnother method of comparing employees to one another is forced distribution. The overall

distribution of ratings is forced into a normal, or bell shaped curve under the assumption that a

relatively small portion of employees is truly outstanding, a relatively small portion is

unsatisfactory and everybody else falls in between.

Advantage:

It is more useful when a large number of employees must be rated and there is more than on

rater. One study found that individual who scores high in agreeableness (trustful, sympathetic,

cooperative and polite) tend to be most lenient, while those who score high in

conscientiousness (strive for excellence, high performance standards, set difficult goals) tend

to be least lenient.

Disadvantage:

As this method divides all the employees at tops of the distribution i.e rater leniency at the

bottom of the distribution i.e rater severity or in the middle i.e central tendency, does

eliminate clustering.

Behaviour ChecklistThe rater is provided with a series of statement that describes job related behaviour. His or her

task is simply to “Check” which of the statements describes the employee’s behaviour.

Descriptive methods of ratings are reliable than evaluative (good/bad) ratings.

Advantages:

This is best suitable when one wants to derive an overall numerical rating for each employees,

one simply sums the weights of the response that were checked for each item.

Disadvantage:

This method has the draw back that; this method uses the scale of Likert method i.e 3 or 5

scale ratings, which does not give full freedom to the rater, and they have to choose from that

choice only, which may lead to wrong conclusions.

Critical IncidentsCritical incidents are brief accidental reports by supervisors of things employees do that

particularly effective or ineffective in accomplishing parts their jobs. They focus on

behaviour, not traits. Such anecdotes force attention onto the ways in which situation

determine job behaviour and on ways of doing successfully that may be behaviours rather

than on vaguely defined traits. They are judging performance, not personality.

Advantage:

As they describe the person, they can provide the basis for the training programs.

Disadvantage:

Supervisor find, recordings incidents for their sub-ordinates on a daily or even a weekly basis

is burdensome. Moreover, incidents alone do not permit comparisons across individuals or

departments. Graphic rating scales will overcome this problem.

Graphic Rating ScalesMany organization use graphic rating scales. Many different forms of graphic ratings scales

exist. In terms of the amount of structure provided, the scales differ in three ways:

The degree to which the meaning of the response categories is defined. The degree to which

the individual who is interpreting the ratings. The degree to which the performance

dimensions are defined for the rater.

Advantages:

Graphic rating scales may not yield the depth of essays or critical incidents, but they are less

time consuming to develop and administer. They also allow results to be expressed in

quantitative terms, they consider more than one performance dimension and since the scales

are standardised, they facilitate comparison across employees.

Graphic rating scales have come under frequent attack, but when compared to more

sophisticated forced-choice scale, the graphic scales have proved just as reliable and valid and

are more acceptable to raters.

Behaviourally Anchored Rating Scales: (Bars)A variation of the simple graphic rating scale is behaviourally anchored rating scale (BARS).

The major advantage of BARS is that they define the dimensions to be rated in behavioural

terms and use critical incidents to describe various levels of performance.

Nevertheless, the participation process required to develop them provides information that is

useful for other organisational purposes, such as communicating clearly to employees exactly

what “good performance” means in the context of their jobs.

Result Oriented Rating Methods

Management By Objectives (MBO)The use of Management by objective (MBO) was first widely advocated in the 1950s by the

noted management theorist Peter Drucker. MBA methods of performance appraisal are results

oriented MBO is a well known process of managing that relies on goal setting to establish

objectives for the organization as a whole, for each department, for each manager within each

department, and for each employee. MBO is not a measure of employee behaviour; rather it is

a measure of each employee’s contribution to the success or the organisation.

To establish objective, the key people involved should do three things: (1) meet to agree on

the major objectives for a given period of time (e.g. every year, every 6 months, or quarterly)

(2) develop plans for how and when the objective will be accomplished, and (3) agree on the

yardstick for determining whether the objectives have been met.

Process Of MBOThe entire process of MBO is based on five basic steps:

Set organizational goals

Joint goal setting

Performance reviews

Set check posts to measure progress

Feedback

Usually supervisor and subordinate establish the objectives jointly. Once an object is agreed,

the employee is usually expected to self-audit that is to identify the skills needed to achieve

the objective. Typically they do not rely on others to locate and specify strengths and

weaknesses. They are expected to monitor their own development and progress.

Advantage:

Appraising manager’s objectives or appraisal by results has a great potential. As an important

performance tool, MBO has various advantages.

It results in much improved management

It tends to force management for clarifying the organizational roles and structures

It results in management’s commitment for performance

It identifies weak areas and problems better and early

It stimulates and increase employee motivation

It reduces role conflict and role ambiguity

It serves as a device for organizational integration.

Disadvantage:

To some MBO is a complete system of planning and control a complete philosophy of

management. In theory MBO promotes success in each employee because, as each employee

succeeds, so do that employee’s manager, the department and the organization; but it takes

years to implement, and since relatively and few firms are willing to make that kind of

commitment, it is not surprising that MBO systems often fails.

360 Degree EvaluationA recent study in the U.S revealed that about one-third of the U.S organizations now use

inputs not only from manager but also from subordinates, peers, and even from customers to

provide a perspective on performance from all angles (360 degree) and that many more intend

to do so in future. Companies currently using this approach include ALCOA, DUPONT,

LEVI STRAUSS, HONEYWELL, UPS, SPRINT, AMOCO, AT&T and W L GORE &

ASSOCIATES

What is the appeal of 360 degree evaluation? They fit well into organisations that have

introduced teams, employee involvement, and TQM programs. By relying on feed back, from

co-workers, customers, and subordinates, these organizations are hoping to give everyone

more of a sense of participation in the review process and gain more accurate readings on

employee performance.

Disadvantage:

As this system includes everyone for feedback whoever come in contact with the employee to

whom the appraisal is taking place. The rater’s overall biases had the strongest influence on

performance rating for all combinations of rater perspective and performance dimensions. For

peers, sub-ordinates ratings and few self-rating, the effect of overall bias was stronger than

that of other factors combined.

Both bosses and sub-ordinates assessed different aspects of rate performance from their

unique perspective. While peer ratings did contain considerable amounts of performance

variability, they did not capture anything unique to that perspective.

To overcome these potential; problems, decision makers need to be aware of the personal

biases of raters and attempt to control their effects. The following measures help them in

controlling their biasness.

Make sure appraisal has a single and clear purpose development

Train all raters to understand the over all proves as well as in how to complete forms

and avoid common ratings errors.

Seek variety of types of information about the performance, possibility including

objective measures or ratings made by multiple individuals, and make rater

accountable to upper-level review.

Help employees interpret and react to the ratings, perhaps with the help of personal

coach, include goal setting and implement the 360-degree process regularly

Continue to use multirater systems, and take the time to evaluate their effectiveness

In addition to thee steps, make it clear who own the 360-degree reports is in the individual,

the manager, or the HR function.

LIMITATIONS OF PERFORMANCE APPRAISAL

Performance appraisals are very widely in used but have its own short coming and

deficiencies. Measuring performance is a very difficult job in itself. Defensive behaviour on

the part of person being very common, especially in salary; promotions are just keeping one’s

hobs are at stake. Then it won’t be correct performance appraisals on the part of organisation

point of view/ the person being developed must be willing to accept criticism, and try to

overcome his weaknesses.

Differences Among Raters:

A different among raters in their evaluations of performance leads to dissimilarity in

perception. When the employee disagreeing with supervisor, then one perceives it negatively

as insubordination while other treat it positively as willingness to stand up fro what are

believes.

Confusing Performance And Potential:

Many raters being confused in giving rates because they don’t differentiate between

performance and potential. This is a serious mistake that can penalize and gets credit where it

is not deserved. So the raters and rate should be clear in their opinions about performance and

potential.

Rating GameGenerally the performance is compared with other employees or to some standard. Which are

arrived by using some appraisal methods. Some methods are simple and straight but some are

more complex, so whatever be the method it should include measure the human values.

Rater BiasThe rater can have some individual impression on rate, it may be positive or negative which

influence in assessment of performance. The major rater biases are Halo effects is a tendency

to let the assessment of an individual’s one trait influence the evaluation of that person on

other specific traits, for example if some performed the task well, he assumes he must be able

to do anything well, Horns effect is exactly opposite of halo effect. It refers to basing the

evaluation on the basis of one negative quality or feature perceived.

First Impression:

Raters may identify some specific qualities of features of the rate and quickly form an overall

impression about him may positive or negative. Some of the shortcomings of the performance

appraisal systems are stereotyping, proximity, similarity error, spill over effect, recovery

error, desire to be accepted, concern with self-protection, type casting, opportunity bias, lack

of top management, lack of emphasis on advantages, lack of motivation, inadequate training,

lack of communication, etc.

OBJECTIVE OF THE STUDY

OBJECTIVE OF THE STUDY

The prime objective of pursuing this project has been to conduct survey on performance

appraisal and the level of satisfaction of employees at Sigma Hospitals.

For the organization to develop, the human resource should be skilled, motives and develop. It

is through performance appraisals that we can know what are the drawbacks, their needs,

efficiencies, inefficiencies etc. and performance appraisals is the process where in the

strengths are encouraged, efforts are made to remove weaknesses, opportunities are provided

for them to develop and remove threats if any.

Keeping in view the above, the objectives of the study are:

To study the present system of appraisal

To identify its drawbacks etc.

To suggest improved system

SCOPE OF THE STUDY

Sigma Hospitals is the most reputed hospital. It is improving its infrastructure at a

rapid pace and is introducing new departments and hence appointing new employees.

Therefore it is continuously reviewing its methods to improve performance appraisal in

the organisation.

By conducting the study at Sigma Hospitals, information is collected about the

methods followed by the departments to appraise the performance of old and new

employees as well as the external individuals associated with the staff. The study is

conducted to identify the role of performance appraisal in the overall development of the

organisation.

METHODOLOGY

METHODOLOGY

RESEARCH METHODOLOGY USED FOR THE STUDY.

Sample Size and Design: Out of 120 employees at Sigma Hospitals, a sample size of

70 employees is studied which includes the all employees and executive staff.

The studies applicable to the entire workforce as performance appraisal is in the

preview of all the associated individuals, however care has been taken to cover all the

departments.

Since, Sigma Hospital, has 120 employees 21 departments this study has a wide scope

to conduct the survey. The survey is being planned to be conducted by distributing the

questionnaires among the employees and collecting their responses and suggestions.

PURPOSE

Primary purpose of conducting the survey of Performance Appraisal at Sigma Hospitals

is to identify any areas needing improvement. The survey is designed to get feedback from

the employees on the performance appraisal practices of the organisation. The result of

this survey gives the necessary information require to draw conclusions as to what

changes should be done in the present performance appraisal so that every employee is

satisfied with the organisation and also the organisation can utilize the full potential of the

employees for its development on the whole.

DATA ANALYSIS

ANALYSIS OF DATA

Analysis of responses to questionnaire circulated to all the head of departments in the

organisation.

1. To the question do they perceive performance appraisal, 100% have agreed that they

perceive performance appraisals for their work.

0

20

40

60

80

100

120

Yes No

Series1

2. 100% Are interest in knowing about their performance in the organisation?

0

20

40

60

80

100

120

Yes No

Series1

3. For the question would you like to appraise by the boss

a) 70 % of Employees says Yes

b) 30 % of Employees says No

01020304050607080

Yes No

Series1

4. For the question would like appraise by your Boss and Supervisor

a)80% of employees agreed and saying Yes

b)20% of employees agreed and saying No

0

20

40

60

80

100

Yes No

Series1

5. For the question would you like to appraise your own self

a) 20% employees says Yes

b) 80% employees says No

0

20

40

60

80

100

Yes No

Series1

6. Objectives of the appraisal systems should be incentives, promotions, feedback,

motivations, improving standards, training needs, all respondents given different

preferences to all the objectives.

7. Would you like annual appraisal system

a) 60% of employees feels that Yes

b) 40% of employees feels that No

010203040506070

Yes No

Series1

8. Would like to Half yearly appraisal system

a) 40% of employees says Yes

b)60% of employees says No

010203040506070

Yes No

Series1

9. To the question do you think appraisal ensures your potentials,

a) 90% have agreed that they will really appreciate

b) 10% of employees say no.

0

20

40

60

80

100

Yes No

Series1

10. Are your agree that your will really appreciate if your boss discuss with about how to do

work and setting the goals for the organisation

a) 100% employees feels that Yes

b) 0% feels that No.

0

20

40

60

80

100

120

Yes No

Series1

11. Are you agree that your performance to be measured on only important incidents

a) 20% of employees says that Yes

b) 80% of employees says that No.

0

20

40

60

80

100

Yes No

Series1

12. Morale and self-esteem can also play a major role in increasing Performance

a) 50% of the employees responded to strongly agree

b) 44% of the employees responded to strongly disagree

c) 6% of the employees responded to not sure they are not aware.

0102030405060

stronglyagree

stronglydisagree

not sure

Series1

13. Do your prefer to be rated, comparison with other employees

a) 30% says yes they don’t have any objection when they are compared with other employees.

b) 70% says no they are not feel to be compared with other employees.

01020304050607080

Yes No

Series1

14. Do you think imparting you with periodical in service training will help you in appraising

your subordinates more objectively/ accurately?

a) 67% employees responded to very much helpful.

b) 30% employees responded to some what helpful

c) 3% employees responded not helpful.

01020304050607080

Very much somewhat not helpful

Series1

FINDINGS AND SUGGESTIONS

FINDINGS1. Vast majority employees felt that they are very much interested in perceiving performance

appraisal in their organisation and they are also showing interest in knowing their

performance as well as their superiors, subordinates performance.

2. Most of the employee indicated that the PA system is enabling them to access their

performance.

3. It is also indicated by most of the respondents that their training needs are identified

through PA system.

4. Further most of the responses revealed that they are satisfied with their present PA system

and it is helping them in improving their interpersonal relations.

5. Some of the respondents also felt that the, there should be an opportunity for the employee

to access his performance and they further felt that PA system is useful in their career

development.

6. Most of the respondents also revealed that they are not that much satisfied with the reward

system linked to PA.

7. It is also felt by most of the respondents that the PA system is useful in identifying their

strengths and weakness.

8. Some of the employees says what points they are seeing in appraisal format contents they

are able to see only yearly once after appraisal management not discussing about the

points with employees.

9. Some of employees say Departmental Immediate supervisor should do the appraisal as he

will be nearest to the employee, but in this organisation majority feels that both supervisor

and boss should evaluate their performance.

10. Some of employees felt that performance appraisal system is only for salary revising

purpose they don’t know real meaning.

SUGGESTIONS In order to increase the awareness amongst the staff, it is recommended that the staff

members are exposed do the details of the Annual Performance Appraisal system

awareness, modalities, and importance .This would increase the overall understanding

and effective functioning of the Annual Performance Appraisal system.

It is suggested that the appraises are give a fair chance to express their needs.

Since Annual Performance Appraisal is compulsory and an exercise that is to be

carried out.

The present Appraisals done at the end of the appraisal year.

However it is suggested to have mid year review of the performance so that it will

enable the employee as how is progressing in his performance and also it gives an

opportunity to the appraiser to facilitate the appraise for the shortcomings.

These suggestions would lead o the better operations and growth of the company in

the focused market.

CONCLUSION

CONCLUSION

A through analysis of the primary data of the study reveals that

1. There is common consensus among respondents that the PA is a useful tool for

human resource development.

2. Most of the responses indicated that the PA system is enabling them to access their

performance.

3. It is also indicated by most of the respondents that their training need are identified

through PA system.

4. Further most of the responses revealed that they are satisfied with the present PA

system and it is helping them in improving their interpersonal relations.

5. Some of the respondents also felt that the, there should be an opportunity for the

employee to access his performance and they further felt that the PA system is useful

in their career development.

6. Most of the respondents also revealed that they are satisfied with the reward system

linked to PA.

7. It is also felt by most of the respondents that the PA system is useful in identifying

their strengths and weakness.

8. Most of the respondents also felt that, the feedback given to them after appraisal is

satisfactory.

ANNEXURE

QUESTIONNAIRE FOR ANALYSING EFFECTIVENESS OF PERFORMANCE

APPRAISAL & COUNSELLING IN SIGMA HOSPITALS

Dear Sir/Madam,

This is just an academic exercise and will be grateful if you could spare a few minutes

and answer the following questions.

(please put a tick wherever applicable)

PERSONAL DATA

NAME :

SEX : AGE :

DEPARTMENT : DESIGNATION :

1. Are you aware of the Performance appraisal system in Sigma Hospital?

A) Yes B) No

2. Are you interested about knowing your performance in the organisation?

A)Yes B) No

3. Would like to appraise your Boss?

A) Yes B) No

4. Would like to appraise by your Boss and Supervisor?

A) Yes B) No

5. Would like to appraise by your Own self?

A) Yes B) No

6. What is the objective of the appraisal systems should be please tick below?

A) Incentives B) Promotions C) Feedback D)Motivation

7. Would like annual appraisal system?

A) Yes B) No

8. Would like half yearly appraisal system?

A) Yes B) No

9. Do you think appraisals ensure your potentials?

A) Yes B) No

10. Are your agree that your will really appreciate if your boss discuss with about how

to do work and setting the goals for the organisation?

A) Yes B) No

11. Are you agree that the performance to be measured on only important incident?

A) Yes B) No

12. Morale and self-esteem cal also play a major role in increasing Performance?

A) Yes B) No

13. Do you prefer to be rated, comparison with other employee?

A) Yes B) No

14. The appraisal system helps management to identify the strengths and weakness of

individual?

A) Yes B) No

(Signature)

BIBLIOGRAPHY

BIBLIOGRAPHY

Books referred:

Redesigning Performance Appraisal Systems (T. V. Rao)

Performance Planning and Appraisal (King. P)

Human Resource and Management Personnel Management (B. Patnayak)

A PROJECT

ON

PERFORMANCE APPRAISAL & COUNCELLING

IN

SIGMA HOSPITALS

SECUNDERABAD

In partial fulfillment of the requirements

For the degree award of

MASTER OF BUSINESS ADMINISTRATION

BY

Department of Human Resource Management

G. Ram Reddy Center for Distance Education

(Affiliated to Osmania University)

Hyderabad (A.P)

CERTIFICATION

This is to certify that the Project Report titled

PERFORMANCE APPRAISAL & COUNCELLunder my guidance. This has not been

submitted to any other University or Institution for the award of any

degree/diploma/certificate.

Name and address of the Guide Signature of the Guide

DECLARATION

I hereby declare that this Project Report submitted by me to the PGRRCDE

O.U, Hyderabad, is a bonafide work undertaken by me and it is not submitted to any other

University or Institution for the award of any degree diploma/certificate or published any time

before.

Name and Address of the Student Signature of the Student

ACKNOWLEDGEMENT

I express my deep sense of gratitude to – Shri. Ravinder Reddy - HR and ADMIN, Sigma

Hospitals for giving me an opportunity to carry out my project in his hospital.

Words are too few to express my deep gratitude to Mrs. Sujatha, Manager – HR, Sigma

Hospitals, who has guided me in my project work. I am greatly indebted to him for his

unweaving commitment through providing discussions and constructive comments to improve

my work.

I am thankful to, Prof. G. Ram Reddy Center for Distance Education, who has been my

internal guide for guidance and encouragement.

I am extremely thankful to all the staff of Human Resource Management, Sigma Hospital for

helping me carrying forward my project.

It is with deep sense of gratitude I wish to avail this opportunity to express my grateful respect

and sincere thanks to for assigning this interesting project to me and for rendering his valuable

advise and guidance in bringing this project work and a great inspiration in completing this

project.

CONTENTS

1. Introduction

2. Company Profile

3. Objective of the study

4. Methodology

5. Data Analysis

6. Findings and Suggestions

7. Conclusion

8. Annexure

9. Bibliography

INTRODUCTION

INTRODUCTION ON HRM

In a globally competitive and challenging business scenario, the Human Resource will

influence the success to a great extent – the people who make things happen. Today Human

Resource occupies, more than ever, the center stage of all economic activities. It is alarming

time for all those organisation that wish to be successful in global markets to gear up and

implement desired shift in their prevailing Human Resource Management Practices so as to

leverage their

Human Resource along with the other Resources. In competitive market survival and

prosperity of Business will depend critically on the way, an organisation manages its

resources especially the Human Asset.

Human Resources are the greatest Asset in the present scenario, retaining

employees becomes very important so as to have a competitive edge over the competitor. In

order to retain employees (Human Resource) organisation should have practices, which will

make employees stick to the company. Employees should have benefits and these must differ

from one company to other, as they feel satisfied. So it becomes important to understand the

satisfaction levels of the employees.

Human Resource Management (HRM) is the branch of the management

that deals with managing one of the resources of the organisation – Human Resources. It is

also called as Personnel Management. However the term

Human Resource Management or Human Resource Development (HRD) are simply Human

Resources.

Most organisations have full-fledged Human Resource Management

Department. The function of Human Resource Management is to acquire, train, develop and

retain the human resources of the organisation.

Human Resource Management System (HRMS), Human Resource Information

System (HRIS), or also called HR modules, shape an intersection in between human resource

management and information technology. It merges HRM as a discipline and in particular its

basic HR activities and processes with the information technology field, whereas the planning

and programming of data processing system evolved into standardized routines and packages

of Enterprise Resource Planning (ERP) software.

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

Though “Human Resource Management” may sound new, infact it is not. Kautilya’s

Arthashastra states that there existed a sound base for systematic management of resources

during as early as the 4th century B.C.

The American Society for Personal Administration (ASPA), the largest professional

association in this field of management, changed its name to the Society for Human Resource

Management (SHRM). Since then, the expression is gradually replacing the term

‘PERSONNEL MANAGEMENT’.

Personnel Management has a limited scope and an inverted orientation. Employees

are treated as the profit-making tool & worked solely for the benefit of organisation.

Owing to the limitations of Personnel Management evolution of Human Resource

Management took place where employees are considered as the asset of the organisation. It is

emerging as a distinct philosophy of management aiming at policies that promote mutuality –

mutual goals, mutual respect, mutual rewards and mutual responsibilities.The belief is that

policies of mutuality will elicit commitment that, in turn, will yield both, better economic

performance and greater Human Resource Development.

Hence,

HRM = (Personal Management + Human Resource Development).

Human Resource Department in Sigma Hospital is a centralised system which takes

care of Performance Appraisal & Councelling, Man power planning, Employee benefits,

Payroll administration, etc.

Human Resource Department has recognised more importance from last 2 years to

cater the growing requirement of company.

In order to retain the High Turnover professional division in Human Resource is

required to maintain proper system, policies, and retention of employees.

Based on the above points Human Resource Department has evolved growth and

achievements of this department is remarkable.

IMPORTANCE & OBJECTIVES

IMPORTANCE & OBJECTIVES

To study the performance appraisal of employees in Sigma Hospital.

To Final Out The Factor for motivation.

To suggest new methods of Performance Appraisal.

During the present and future requirements of the organisation in conjunction with its

personnel planning and job-analysis activities.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of the selection process by reducing the number of visibly

under qualified or overqualified job applicants.

Help reduce the probability that job applicants, once recruited and selected, will leave the

organisation only after a short period of time.

Meet the organisation’s legal and social obligations regarding the composition of its

workforce.

Identifying and preparing potential job applicants who will be appropriate candidates.

REVIEW OF LITERATURE

“Well crafted and detailed. I appreciate the quality of Maryann’s work and her ability to get at

the issue important in understanding contemporary Human Resource thought and practice.”

Dr. Kenneth R Thomson, De Paul University.

“This new edition of Strategic Human Resource Management is in global terms, the best book

in the field of strategic HRM I have ever read. I wouldn’t have expected less from two of the

world’s leading HR academics. Randall Schuler and Susan Jackson have done it again, and if

there was an academy Award for HR books internationally, this would be the overall winner

by far. It is a must read for those interested in people management.”

Cary Copper, Lancaster University Management School

“I recommended Mullins because of its readability and straightforward style. This is very

important when teaching multicultural classes where English is not their first language.”

David Wilson, Hoge school In Holland, The Netherlands

“I recommend Mullins because of its depth of coverage of topics which I consider central to

management and O B, and in particular for its focus on leadership. The book encourages

students to form their own conclusions by considering multiple points of view and brings

clarity to this often complex subject by avoiding jargon and technical terminology.”

Hugo Misselhorn, University of Durban- Westvilla, SA

OSMANIA UNIVERSITY

PGRR CDE – MBA PROGRAMME

Proforma for Approval of Project Proposal

Enrollment No. 094-05-00707 : Study Centre

Name and Address of the student :

Area of Specialization

Opted in final year MBA : H. R. M

Title of Project : PERFORMANCE APPRAISAL &

COUNSELLING

Subject Area : H. R. M

Name & Address Supervisor : Dr. P. V. Ramana Rao

Reader in commerce

Sree Ramachandra College

Adikmet, Hyderabad

Is the Supervisor an Academic Counsellor : Yes No

Of PGRRCDE (If No, please attach his/her Bio – data)

Signature of the Student Signature of the Supervisor

Date: _____________ Date: _____________

PROJECT PROFILE

Introduction

Performance Appraisal is the process of evaluating the performance of employees.

Appraisal of one individual by another individual is a continuous process and it is a natural

phenomenon in human beings. This is constantly done consciously or un consciously in our

day to day interaction either in family life or social setting or in an organisation for that

matter. While the individual or group uses appraisal in its own fashion depending on the need

of the situation, it becomes necessary in an organisation to implement a formal methodology

of appraisal system because it is important in:

1. Allocating resource in a dynamic environment.

2. Promote employees/ elevating to higher positions.

3. Give employees feedback about their work for further improvement.

4. Maintain fair relationships within groups.

5. Train and develop employees.

6. Entrusting employees with higher responsibilities.

Appraisal systems are, therefore necessary for performance management and for employee

development.