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PERFORMANCE APPRAISAL
A Project Report submitted in partial fulfillment of the requirements for the Award of degree of
Bachelor of Business Administration
2012 2013
Submitted by: Amruta Shetty Guided by: Anjali Kalse
BHARATI VIDYAPEETH DEEMED UNIVERSITY SCHOOL OF DISTANCE
EDUCATIONAcademic Study Center - BVIMR, New Delhi
An ISO 9001:2008 Certified Institute
NAAC Accredited Grade A University
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ORGANISATION DECLARATION
This is to certify that AMRUTA SHETTY daughter of SUNDER SHETTY pursuing BBA from
Bharati Vidyapeeth Deemed University, SDE, Academic Study Center BVIMR, New
Delhi. Has successfully completed Project Report in our organization on the topic titled,
PERFORMANCE APPRAISAL from 2012 to 2013 During her project tenure in the
organization, we found her hard working, sincere and diligent person and her behavior and
conduct was good during the project. We wish her all the best for her future endeavors.
Comments of Guide
1.
2.
3.
Pratiksha Singarpure
Name and Signature of the Mentor (Industrial Guide)
Designation - Manager HR
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STUDENT DECLARATION
This is to certify that I AMRUTA SHETTY had completed the Project titled
PERFORMANCE APPRAISAL in NETWORK18 INDIA LTD. under the guidance of Ms.
(Faculty guide) in the partial fulfillment of the requirement for the award of degree of BBA
from Bharati Vidyapeeth Deemed University, SDE, Academic Study Center BVIMR, New
Delhi. This is an original piece of work and I had neither copied nor submitted it earlier
elsewhere.
Amruta Shetty
Student Name and Signature
Course BBA
Dated 25 April 2013
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INTERNAL GUIDE CERTIFICATE
This is to certify that the project titled PERFORMANCE APPRAISAL is an academic work
done by AMRUTA SHETTY submitted in the partial fulfillment of the requirement for the
award of the Degree of BBA from Bharati Vidyapeeth Deemed University SDE, Academic
Study Center BVIMR, New Delhi under my guidance and direction. To the best of my
knowledge and belief the data and information presented by him/her in the project has not been
submitted earlier.
Anjali Kalse
Name and signature of Faculty Guide
Designation -
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DIRECTOR CERTIFICATE
This is to certify that the Project titled PERFORMANCE APPRAISAL is an academic work
done by AMRUTA SHETTY submitted in the partial fulfillment of the requirement for the
award of the Degree of Course from Bharati Vidyapeeth Deemed University , SDE,
Academic Study Center BVIMR, New Delhi. . It has been completed under the guidance of
Ms. Anjali Kalse (Internal Guide)
Dr. Sachin S. Vernekar
Director
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ACKNOWLEDGEMENT
Vital to every operation is co-operation. We really agree to this wonderful quotation put
forth by Mr. Frank Tyger. This project was successful due to the co-operation extended by
people who have truly contributed towards it. We want to thank the management of various
companies who gave us the permission to conduct research. We would also like to thank all
the employees and HR executives who empowered us with valuable information. And
finally to those whose lives and writings has come the wisdom of the ages. We have tried to
learn from your legacy.
Amruta Shetty
Name and Signature of Student
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PREFACE
Amruta Shetty
Name and Signature of Student
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ABSTRACT
Appraisal is a continuous process and done annually as a formal exercise before completion
of the financial year. Appraisal has tremendous motivational impact on people through
meaningful feedback and is a powerful tool for recognition. This p r o j e c t
e x p l a i n s performance appraisal system and tries to find out how efficiently Performance
Appraisal is conducted. And if performance appraisal doesnt meet its objective then, what
are the factors causing failure.
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TABLE OF CONTENTS
Sr. No Title Page No
1 Introduction 102 Research & Survey 32
3 Results 33
4 Findings and Recommendations 64
5 Conclusion 67
6 Appendices 68
7 Bibliography 74
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1. INTRODUCTION
In the business world investment is made in machinery, equipment and services.
Quite naturally time and money is spent ensuring that they provide what their suppliers
claim. In other words the performance is constantly appraised against the results expected.
When it comes to one of the most expensive resources companies invest in, namely
people, the job appraising performance against results is often carried out with the same
objectivity. Each individual has a role to play and management has to ensure that the
individuals objectives translate into overall corporate objectives of the company.
Performance Management includes the performance appraisal process which in turn helps
identifying the training needs and provides a direction for career and succession planning.
1.1 Understanding Performance Management
Figure 1.1
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PERFORMANCE MANAGEMENT
CORPORATE GOALS
PERFORMANCE LINKEDINCREMENTS/INCENTIVES/REWARDS
PERFORMANCE APPRAISAL
ENSURE RESPONSIBILITY ANDACCOUNTABILITY
DETERMINE INDIVIDUALOBJECTIVE LINKED TO CORPORATE
GOALS
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1.2 What is Performance?
A performance a p p r a i s a l , e m p l o y e e a p p r a i s a l , p e r f o r ma n c e r e v i e w , o r
(career) development discussion is a method by which the job performance of an employee is
evaluated (generally in terms of quality, quantity, cost, and time) typically by the
corresponding manager or supervisor performance appraisal is a part of guiding and
managing career development. It is the process of obtaining, analyzing, and recording
information about the relative worth of an employee to the organization. Performance
appraisal is an analysis of an employee's recent successes and failures, personal strengths
and weaknesses, and suitability for promotion or further training. It is also the
judgment of an employee's performance in a job based on considerations other than
productivity alone.
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1.3 Objectives of a performance appraisal
Give employees feedback on performance
Identify employee training needs
Document criteria used to allocate organizational rewards
Form a basis for personnel decisions: salary increases, promotions, disciplinary
actions, bonuses, etc.
Provide the opportunity for organizational diagnosis and development
Facilitate communication between employee and administration
Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
To improve performance through counseling, coaching and development.
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1.4 Importance of Performance Appraisal
Performance appraisals provide employees and managers with opportunities to discuss areas
in which employees excel and those in which employees need improvement. Performance
appraisals should be conducted on a regular basis, and they need not be directly attached to
promotion opportunities.
Personal Attention
During a performance appraisal review, a supervisor and an employee discuss the employee's
strengths and weaknesses. This gives the employee individual face time with the supervisor
and a chance to address personal concerns.
Feedback
Employees need to know when their job duties are being fulfilled and when there are issues
with their work performance. Managers should schedule this communication on a regular
basis.
Career Path
Performance appraisals allow employees and supervisors to discuss goals that must be met
to advance within the company. This can include identifying skills that must be acquired,
areas in which one must improve, and educational courses that must be completed.
Employee Accountability
When employees know there will be regularly scheduled evaluations, they realize that they
are accountable for their job performance.
Communicate Divisional and Company Goals
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Besides communicating employees' individual goals, employee appraisals provide the
opportunity for managers to explain organizational goals and the ways in which employees
can participate in the achievement of those goals.
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1.5 Process of Performance Appraisal
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees. This
step requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and objectives.
The standards set should be clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to describe the
standards.
COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.
The employees should be informed and the standards should be clearly explained to them. This
will help them to understand their roles and to know what exactly is expected from them. The
standards should also be communicated to the appraisers or the evaluators and if required, the
standards can also be modified at this stage itself according to the relevant feedback from the
employees or the evaluators.
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Figure 1.2
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1.6 MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the specified
period of time. It is a continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of the appropriate techniques of
measurement, taking care that personal bias does not affect the outcome of the process and
providing assistance rather than interfering in an employees work.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standardsset.
The result can show the actual performance being more than the desired performance or, the
actual performance being less than the desired performance depicting a negative deviation in
the organizational performance. It includes recalling, evaluating and analysis of data related
to the employees performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one- to-
one basis. The focus of this discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can have an
effect on the employees future performance. The purpose of the meeting should be to solve
the problems faced and motivate the employees to perform better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions
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Traditional Methods of Performance Appraisal
ESSAY APPRAISAL METHOD
This traditional form of appraisal, also known as "Free Form method" involves a
description of the performance of an employee by his superior. The description is an
evaluation of the performance of any individual based on the facts and often includes
examples and evidences to support the information. A major drawback of the method is the
inseparability of the bias of the evaluator.
2. STRAIGHT RANKING METHOD
This is one of the oldest and simplest techniques of performance appraisal. In this method,
the appraiser ranks the employees from the best to the poorest on the basis of their overall
performance. It is quite useful for a comparative evaluation
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this method compares each
employee with all others in the group, one at a time. After all the comparisons on
the basis of the overall comparisons, the employees are given the final rankings.
4. CRITICAL INCIDENTS METHODS
In this method of Performance appraisal, the evaluator rates the employee on the basis of
critical events and how the employee behaved during those incidents. It includes both negative
and positive points. The drawback of this method is that the supervisor has to note down the
critical incidents and the employee behavior as and when they occur.
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5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and
interviews the supervisors to evaluate and rate their respective subordinates. A major
drawback of this method is that it is a very time consuming method. But this method helps to
reduce the superiors personal bias.
6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behavior of the employees on job.
The checklist contains a list of statements on the basis of which the rater describes the on
the job performance of the employees.
7. GRAPHIC RATING SCALE
In this method, an employees quality and quantity of work is assessed in a graphic scale
indicating different degrees of a particular trait. The factors taken into consideration include
both the personal characteristics and characteristics related to the on the job performance of the
employees. For example a trait like Job Knowledge may be judged on the range of average,
above average, outstanding or unsatisfactory
FORCED DISTRIBUTION
To eliminate the element of bias from the raters ratings, the evaluator is asked todistribute the
employees in some fixed categories of ratings like on a normal distribution curve. The rater
chooses the appropriate fit for the categories on his own discretion.
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Modern Methods of Performance Appraisal
ASSESSMENT CENTRES -
An assessment Centre typically involves the use of methods like social/informal events, tests
and exercises, assignments being given to a group of employees to assess their competencies
to take higher responsibilities in the future. Generally, employees are given an assignment
similar to the job they would be expected to perform if promoted. The trained evaluators
observe and evaluate employees as they perform the assigned jobs and are evaluated on job
related characteristics.
The major competencies that are judged in assessment centers are interpersonal skills,intellectual capability, planning and organizing capabilities, motivation, career orientation
etc. assessment centers are also an effective way to determine the training and
development needs of the targeted employees.
BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines
the graphic rating scale and critical incidents method. It consists of predetermined critical
areas of job performance or sets of behavioral statements describing important job
performance qualities as good or bad (for eg. the qualities like inter personal relationships,
adaptability and reliability, job knowledge etc). These statements are developed from critical
incidents.
In this method, an employees actual job behavior is judged against the desired behavior by
recording and comparing the behavior with BARS. Developing and practicing BARS requires
expert knowledge.
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1.7 HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human
resource accounting method tries to find the relative worth of these assets
in the terms of money. In this method the Performance appraisal of the
employees is judged in terms of cost and contribution of the employees.
The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs
etc. whereas their contribution includes the total value added (in monetary
terms). The difference between the cost and the contribution will be the
performance of the employees. Ideally, the contribution of the employees
should be greater than the cost incurred on them.
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1.8 MANAGEMENT BY OBJECTIVES
The concept ofManagement by Objectives (MBO) was first given by
Peter Drucker in 1954. It can be defined as a process whereby the
employees and the superiors come together to identify common goals, the
employees set their goals to be achieved, the standards to be taken as the
criteria for measurement of their performance and contribution and
deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of
actions and decision making. An important part of the MBO is the
measurement and the comparison of the employees actual performance
with the concept ofManagement by Objectives (MBO) was first given
by Peter Drucker in 1954. It can be defined as a process whereby the
employees and the superiors come together to identify common goals, the
employees set their goals to be achieved, the standards to be taken as the
criteria for measurement of their performance and contribution and deciding
the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of
actions and decision making. An important part of the MBO is the
measurement and the comparison of the employees actual performance
with the standards set. Ideally, when employees themselves have been
involved with the goal setting and the choosing the course of action to be
followed by them, they are more likely to fulfill their responsibilities.
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THE MBO PROCESS
Figure 1.3
UNIQUE FEATURES AND ADVANTAGES OF MBO
The principle behind Management by Objectives (MBO) is to create
empowered employees who have clarity of the roles and
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responsibilities expected from them, understand their objectives to be
achieved and thus help in the achievement of organizational as
well as personalgoals.
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360 Degree Performance Appraisals
360 degree feedback, also known as 'multi-rater feedback', is the most
comprehensive appraisal where the feedback about the employees
performance comes from all the sources that come in
contactwith the employee on his job.
360 degree respondents for an employee can be his/her peers, managers
(i.e. superior), subordinates, team members, customers, suppliers/
vendors - anyone who comes into contact with the employee and can
provide valuable insights and information or feedback regarding the "on-
the-job" performance of the employee. 360 degree appraisal has four
Integral components
1.Self appraisal
2 Superiors appraisal
3 Subordinates appraisal
4.Peer appraisal
Self-appraisal gives a chance to the employee to look at his/her strengths
and weaknesses, his achie vements , and judge his own performance.
Superiors appraisal forms the traditional part of the 360 degree
performance appraisal where the employees responsibilities and
actual performance is ratedby the
superior.
Subordinates appraisal gives a chance to judge the employee on the
parameters like communication and m o t i v a t i n g a b i l i t i e s ,
su p e r i o r s ab i l i t y to de le g at e th e wo rk , leadership qualities
etc. Also known as internal customers, the correct feedback given by
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peers can help to find employees abilities to work as a team, co-
operation and sensitivity towards others.
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Figure 1.4
Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree
Performance appraisal have high employee involvement and also have the strongest impact
on behavior and performance. It provides a "360-degree review" of the employees
performance and is considered to be one of the most credible performance appraisal
methods.
360 degree performance appraisal is also a powerful developmental tool because when
conducted at regular intervals (say yearly) it helps to keep a track of the changes others
perceptions about the employees. A 360 degree appraisal is generally found more suitable for
the managers as it helps to assess their leadership and managing styles. This technique is being
effectively used across the globe for performance appraisals. Some of the organizations
following it are Wipro, Infosys, and Reliance Industries etc.
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Benefits of Performance Appraisal
If appraisal is to be effective, staff must see the process attempting to meet their needs,
otherwise the system will not work. This means Heads of Department do need to form an
overview of the issues raised by their staff and if appropriate feed these into the planning
process. Appraisal should result in:
Benefits for the individual:
Gaining a better understanding of their role
Understanding more clearly how and where they fit in within the wider picture
A better understanding of how performance is assessed and monitored
Getting an insight into how their performance is perceived
Improving understanding of their strengths and weaknesses and developmental
needs
Identifying ways in which they can improve performance
Providing an opportunity to discuss and clarify developmental and training needs
Understanding and agreeing their objectives for the next year.
An opportunity to discuss career direction and prospects.
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Benefits to the line manager/supervisor/team leader:
Opportunities to hear and exchange views and opinions away from the normal
pressure of work
An opportunity to identify any potential difficulties or weaknesses
An improved understanding of the resources available
An opportunity to plan for and set objectives for the next period
An opportunity to think about and clarify their own role
An opportunity to plan for achieving improved performance
An opportunity to plan for further delegation and coaching
An opportunity to motivate members of the team
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Benefits to the organization:
A structured means of identifying and assessing potential
Up-to-date information regarding the expectations and aspirations of employees
Information on which to base decisions about promotions and motivation
An opportunity to review succession planning
Information about training needs which can act as a basis for developing training
plans
Updating of employee records (achievements, new competencies etc)
Career counseling
Communication of information
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Disadvantages of performance appraisal
Performance appraisals are usually part of a yearly review process in which a supervisor
reviews the job performance, goal completion and projects accomplished by an employee.
While the structure of performance appraisals offers a way for giving constructive feedback
to employees, which in turn can be used as a reward or a motivational tool, there are
downsides to traditional performance appraisals.
One Sided Input
Traditional performance appraisals involve a supervisor and supervisee, both of which have
limited perspectives. As with any situation, limited perspectives lead to a limited amount of
information by which to judge performance.
If a manager is busy supervising several people, as well as tasks and other projects, then there
will be limited time to take in the full scope and practice of the performance of the
supervisee. As an alternative, many industries today are utilizing 360-degree feedback, which
takes into account the relationships that an employee has with peers, customers, clients,
supervisors and those whom the supervisee is responsible for overseeing.
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Forms Only Give Quantitative or Qualitative Data
Many times, feedback forms that are utilized in performance appraisals only use quantitative
or qualitative measures, but not both. Quantitative appraisals mainly measure numbers, suchas how many projects, how many were on time. While this is important, there are other things
to take into consideration.
Qualitative benchmarks involve the completion of personal or professional goals and the
stories of how the supervisee utilized opportunities to lead by example and proactively
implement the values and mission of the organization. Listening to the stories of what has
happened over the past year and looking at numbers and outcomes will result in a clearer
picture of what the value of the employee is to the organization.
Once-a-Year Raises
Performance appraisals are usually done once a year and are connected to an increase in
salary. This is a disadvantage in that supervisees generally live in fear and experience
anxiety when their review time comes up. Having more consistent interaction when it comes
to feedback between management and supervisees can help reduce the fear, anxiety and
wondering about a raise.
Furthermore, the employee naturally will want to bargain for more money focusing on
their strengths and the management will want to emphasize the constructive areas of
performance evaluation in order to keep from giving raises, since money is a limited
resource in any organization. This adds to the stress of the review
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2. RESEARCH AND SURVEY:
Statement of the Problem:
Performance appraisal is a process of assessing, summarizing and developing the work
performance of an employee. In order to be effective and constructive, the performance
manager should make every effort to obtain as much objective information about the
employee's performance as possible. Low performance can push the organization back in
todays tough competition scenario. The project is aimed at analyzing the performance
appraisal in companies.
Objective:
The various objectives of our research are as follows:
To examine why an appraisal system is important.
To study existing appraisal system in various organizations across sectors like BPO, IT &
Telecom.
To find the expectation of appraiser and appraise.To determine the satisfaction level of the appraise.
To reveal the various loopholes in the appraisal system if any
To find the consequences of an inappropriately conducted appraisal system
Research Methodology:
The data source: Primary as well as Secondary.
The research approach: Survey Method.
The research instrument: Questionnaire.
The respondents: The Managers & Employees of various organizations.
The primary data was collected with the help of survey information. A concise questionnaire
was prepared keeping in mind the information specifications.
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3.RESULTS
Findings from Appraisee Survey
1. Expectations from Appraisal System:
Figure 3.1
Respondents were asked to rank the various options according to their preference.
(Rank 1 being most preferred and rank 6 being least preferred). Then scoring was
given on the basis of ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so
on.
Table 3.1
Particular Score Overall Rank
Salary Administration and Benefits 87 1
Determination of promotion or transfer 109 2
Assistance in goal 228 3
Guideline for training plan 254 4
An insight into your strengths and weakness 312 5
Decision to layoff 354 6
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From the above table 3.1 it can be seen that employees expect Salary Administration
and Benefits to be the main reason for conducting a Performance Appraisal.
Decision to layoff is of least importance as per the appraisee.
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2. Awareness about Responsibilities:
Figure 3.3
From the graph it can be seen that majority of employees are aware about their
responsibilities, which implies that the appraisers have efficiently communicated to the
appraises all the parameters that will be taken into account during appraisal.
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3. Satisfaction Level among appraise regarding Appraisal System:
Figure 3.4
From graph it can be seen that majority of the respondents are satisfied with the
appraisal system. Only a meager 30% were dissatisfied with the Performance
Appraisal programs.
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4. Awareness about performance ratings:
Figure 3.5
This clearly shows that majority of the employees are not aware about the
performance ratings that are taken into account while conducting a performance
appraisal.
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5. Allowing Self ratings:
Figure 3.6
From graph it can be seen that majority of respondents want self-rating to be a method of
conducting the appraisals.
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6. Chance to rate your own performance:
Figure 3.7
From the graph we can see that majority of the employees are not given a chance to rate
their own performance in the organization.
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7. Timing of Appraisals:
Figure 3.8
This shows that most of the organizations conduct their Performance Appraisal
programs annually. A very small percentage of the organizations conduct Performance
Appraisals on a half yearly basis. The share of the quarterly and monthly appraisals is
extremely minimal.
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8. Credibility of Appraiser:
Figure 3.9
This shows that according to the employees/appraisees the credibility of the appraiser is
extremely important and it has an effect on the overall Performance appraisal program.
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9. Complaint channel for employees:
Figure 3.10
This shows that there is no proper complaint channel existing in the organizations for the
employees who are dissatisfied with the performance appraisal system.
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10. Standards communicated to employees:
Figure 3.11
From this it can be seen that there is a clear majority among the employees who say that
the standards on the basis of which the performance appraisal is carried out is not
communicated to the employees beforehand.
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11. Performance Appraisal
Figure 3.12
Almost all the Performance Appraisals are carried out by the Immediate Supervisor in
these organizations. In very few organizations, Rating committees carry out the
performance appraisals. None of the organizations use Peer Appraisals, Appraisals by
subordinates and Self rating as a method of Performance Appraisal.
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12. Clear understanding of Appraisees job
Figure 3.13
This shows that the performance Appraisal programs are successful in giving a clear
understanding of the appraisees job to both appraiser and appraisee.
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13. Objectives of Appraisal System
Figure 3.14
From the figure we can derive that the objective for conducting the Appraisal system is
clear only to half of the employees. The remaining half is not clear about the objective
for which the Performance Appraisal is carried out.
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14. Good communication between top management and business goals
Figure 3.15
This shows that the appraisal systems do not provide a good communication flow of the
top-management plans and business goals to the staff below.
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15. Comments and suggestions to be considered
Figure 3.16
Almost all the employees expect that their comments and suggestions should be taken into
consideration while conducting the Performance Appraisal.
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16. Post Appraisal interview
Figure 3.17
As per the response from the employees we can see that there is no interview
conducted after the appraisal program for majority of the employees.
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Findings from Appraiser Survey
1. Purpose of Appraisal
Figure 3.18
Respondents were asked to rank the various options according to their preference.
(Rank 1 being most preferred and rank 6 being least preferred). Then scoring was
done on basis of these ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so
on. Then the total score for each purpose was calculated and overall ranking was
given.
Particular Score Overall Rank
Determination of promotion or transfer 24 1
Salary Administration and Benefits 27 2
Decision to layoff 42 3
Guideline for training plan 69 4
Assistance in goal 72 5
An insight into your strengths and weakness 81 6
Table 3.2
From table 3 .2 it can be seen that appraiser considers Determination of promotion or
transfer & Salary administration and Benefits as two important factors for
conducting an Appraisal.
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2. Appraisal System
Figure 3.19
In this question appraiser was asked to rate how helpful the appraisal system is, from the
graph it can be seen that majority of appraisers have rated 5,4 & 3 which implies that
Performance Appraisal system is very helpful in Planning their work. Also most of the
appraisers are satisfied with the appraisal system.
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3. Support from subordinate
Figure 3.20
This question was asked to find out how helpful appraisal system is in communicating the
support that appraiser needs from appraisee. From results it is seen that the performance
appraisal system is very helpful in communicating the support and help needed by the
appraiser from the appraisee.
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4. Type of Appraisal System
Figure 3.21
From results its clear that majority of companies prefer to use 360 degree feedback
system for Perf ormance Appraisal . As 360 degree feedb ack gi ves fe edback
of appraisee from everyone interacting with him, it is more reliable and hence most
preferred.
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5. Performance Appraisal criteria
Figure 3.22
From results we can see that Qualitative Process is considered as the most important
criteria for which the Performance appraisal programs are carried out, w h i c h shows that
companies consider Quality of product & service and Customer satisfaction as most
important factors.
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6. Timing of Appraisals
Figure 3.23
From graphs we can see that most of companies conduct appraisals on annual basis.
Some companies conduct quarterly also.
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7. Effect of poor Appraisal System
Figure 3.24
It can be seen from results that most of the employees get De-motivated because of a
poorly conducted appraisal. To some extent employees dont coordinate with their team
members. This resulting in reduction of output.
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8. Communication between top management and staff
Figure 3.25
All appraisers totally agree that performance appraisal helps in communicating the top
management plans and business goals to staff at lower level.
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9. Insight to Apprasiees strength and weakness
Figure 3.26
It is evident from the results that performance appraisal system doesnt help the
appraiser in understanding strength and weakness of apraisee.
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10. Appraisees comment and suggestion
Figure 3.27
From the results it can be seen that appraisees comments and suggestion are not taken into
consideration before Performance Appraisal. Performance Appraisal system is designed by
appraiser without consulting appraisee.
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11. Performance Appraisal
Figure 3.28
It is evident from the results that performance appraisal is conducted by the immediate
Supervisor in all the companies.
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12. Understanding of Apprasiees Job
Figure 3.29
From this it is clearly seen that according to appraiser there is a clear and joint
understanding of the appraisees job.
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13. Standards for Performance Appraisal
Figure 3.30
From results it is evident that Performance appraisal standards are very well
communicated to Appraisee before the Appraisal is carried out.
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14. Self-rating in Performance Appraisal
Figure 3.31
From results it can be clearly seen that the Appraisee is not given a chance to rate his own
performance.
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15. Action after Performance Appraisal
Figure 3.32
This shows that most of the companies act upon the results of their Performance
Appraisal program.
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4.FINDINGS AND RECOMMENDATIONS
From the survey results its evident that both the appraisees and
appraisers expectation from Performance appraisal system are the same i.e.
Determination of Promotion or Transfer and Salary Administration and
Benefits. Hence a single performance appraisal system can satisfy needs of
both the Appraiser and appraisee. Therefore the Performance appraisal program
would be designed in such a way that the appraiser would be able to analyze
the contribution of the employee to the orgaisation periodically and all the
employees who have been performing well would be rewarded suitably either by
an increase in the salary or a promotion. Through this the appraiser can also
motivate the employees who felt that they had no growth in the organisation and
serves the purpose of employee development. Thus performance appraisals can
be used as a significant tool of career planning.
Analyzing ones own strengths and weaknesses is the best way of identifying the
potentials available, rather than the other person telling. Self-appraisal is a tool to
analyze oneself. One of the most important findings was that almost all the
employees wanted self-rating to be a part of performance appraisal program
carried out by the organisation. From the responses of the appraiser we can also
see that Self rating is not encouraged by the organisations. This could therefore be
an important factor which leads to dissatisfaction among the appraisees. At the
end of the year of the appraisal period the appraisal process should begin with
self-appraisal by every employee. To appraise ones own self on key
performing targets and qualities, the appraisee would go through a process of
reflection and review. It is an established fact that change is faster when it is
self- initiated. If any employee has to improve or do better, he must first feel
the need to do so. Reflection and review is a process that enables him to feel the
need and improve more upon his strengths and weaknesses
Another point to be noticed is that even in the other forms of
Performance Appraisal also the employees expect that they should be given a
chance to rate their own performance. This ca n allow th e empl oye e to
ana lyz e o nes own Performance which gives new insights on how one is
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performing and what are the critical points where he has to put his best and
improve upon
The existence of a proper complain channel was also of utmost importance to the
appraisees. They should be given a chance to convey their greviences to the top
management.
The appraisees also expect that their comments and suggestions should be taken in
to account while conducting the appraisals. This expectation is not fulfilled as the
appraisers do not take their comments and suggestions into consideration.
Therefore they should look into this matter before it leads to dissatisfaction among
the employees.
The results also indicate that the there is no communication of top management
plans and business goal to the appraisee. The appraisers on the other hand feel that
the goals and plans have been clearly communicated to the appraisees.
Communication is very essential for any system to function efficiently. Therefore
the appraisers should look into this matter and see to it that the goals and plans are
communicated effectively.
The findings suggest that for success of Appraisal system the credibility
of appraiser is of utmost importance.
As per the Appraiser, a poorly conducted appraisal system would lead to
demotivation and ineffective teamwok which will result in inefficient functioning
and low productivity in the organization. Therefore, if at all they feel there is
dissatisfaction among the appraisees they should motivate them. Achievement,
recogntion, involvement, job sat isf act ion and deve lopme nt can
motivate the employees to a large extent. Along with this satisfactory
working conditions and appropriate awards also play an important role.
A l s o a majority of employees were satisfied with the current appraisal system
although they requested for some changes.
M o s t of the employees were also not clear about the criteria on which ratings
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were given to each employee while conducting the performance appraisal. Instead
of secrecy there should be openness. Because of lack of communication,
employees may not know how they are rated. The standards by which employees
think they are being judged are sometimes different from those their superiors
actually use. Proper communication of these ratings can help the employers
achieve the level of acceptability and commitment which is required from the
employ.
From the survey we can also derive that the appraisees expect a post appraisal
interview to be conducted wherein they are given a proper feedback on their
performance and they can also put forward their complaints if any. The appraisal
should also be followed up with a session of counseling which is often neglected
in many organizations. Counseling involves helping an employee to identify his
strengths and weaknesses to contribute to his growth and development. Purpose is
to help an employee improve his performance level, maintain his morale, guide
him to identify and develop his strong points, overcome his weak points, develop
new capabilities to handle more responsibilities, identify his training needs.
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5. CONCLUSION
With rewards being directly linked to achievement of objectives, goal setting and
Performance App ra is al a ss ume s utmost impo rta nce . The Performance
Appraisal System has been professionally designed and it is monitored by HRD.
The implementation is the responsibility of each and every employee along with their
supervisor. There should be adequate training to the evaluator that will go a long way in
answering the quality of Performance Appraisal. In conclusion, a Performance
Appraisal is a very important tool used to influence employees. A formal Performance
review is important as it gives an opportunity to get an overall view of job
performance and staff development. It encourages systematic and regular joint-
stocking and planning for the future. Good performance reviews therefore dont just
summarize the past they help determine future performance.
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Detail Rank
SalaryAdministrationand Benefits
Determination ofpromotion or transfer
Decision on layoff
Assistancein goal
Guideline for trainingPlan
An insight intoyourstrengths andweakness
6. APPENDICES
Questionsfor Appraisee
Name: ContactNo:
1. What do you expect from a Performance appraisal?
(Rank the optionsfrom 1 to 6; 1 beingmost
preferred & 6 being leastpreferred)
2. Do you know what exactlyis expectedfrom you at
work?
a. Yes
b. No
3. Areyou satisfiedwith the appraisal system?
1 2
3
4
5
(1 = Leastsatisfied;5 = Most satisfied)
4. Areyou aware ofperformance ratings?
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a.
Yes
b. No
5. Do you thinkyou shouldbe givenan
opportunityto rate your own performance?
a.
Yes
b. No
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6. Areyou givena chance to rate your ownperformance?
a. Yes b. No
7. Timing of Appraisals
a. Monthly
b. Quarterly
c. H a l f Yearly
d. Annual
e. Anytime
8. Does the credibility of Appraiseraffectthe Performance Appraisal
System?
a. Yes b. No
9. Isthere a complaintchannel for theemployeeswho are dissatisfied
with theperformance appraisal system?
a. Yes b. No
10. Are the standards on thebasis of which the performance
appraisal is carriedout communicatedto the employees
beforehand?
a. Yes b. No
11. Who conducts the performance appraisal?
a. Immediatesupervisor
b. Peerappraisal
c. Rati ng committees
d.Self-rating
e. Appraisalby subordinates
12. Isthe performance Appraisal successful in giving a clearunderstanding
oftheappraiseesjob to both appraiserand appraise?
a. Yes b. No
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13. Do you want yourcomments and suggestionsto be taken
into considerationduring appraisal?
a. Yes b. No
14. Isthere a post appraisal interviewconducted?
a. Yes b. No
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Questionsfor Appraiser
Name: ContactNo:
1. Purpose of Performance appraisal:
(Rank the optionsfrom 1 to 6; 1 beingmainpurpose & 6
being lastpurpose)
Detail Rank
Salary Administration and Benefits
Retain performing employees
Determination of promotion or transfer
Decision on layoff
Assistance in goal
Guideline for training Plan
Isthe Performance Appraisal helpingyou to planyour work
well?
1 23
4
5
(1 = Leasthelpful; 5 = Most helpful)
2. Does the system provideyou a chance to communicate
the support you needfromyoursubordinateto perform the
job well.
a. Yes b. No
3. Which appraisal systemisbeingemployedin the
company?
a.
Asses
sment
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Centr
e
b.
MBO
c. BA RS
d. 360
degree
feedbac
k
e.
Balance
scorecar
d
4. Performance
Appraisal criteriaa. Quantitativeoutcome criteria(Sales
volume, Salesprice, Productivity, Goal
accomplishmentrate)
b. Qualitativeprocesscriteria(Quality ofproduct
or service,Customersatisfaction)
c. Qua nt i ta t ive processcriteria
(Efficiency, Cost/expenses,
Attendance)
d. Qualitativeprocesscriteria (Judgment, Work
a t t i tude ,Leadership, Conduct /Trait)
5. Timing
of
Appraisals
a.
Monthl
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y
b. Quarterly
c
.
H
a
l
f
Y
e
a
r
l
y
d
.
A
n
n
u
a
l
e. Anytime
6. What do you think is the effect of a poor
appraisal system?
a. De-motivation
b. Retention
c. Ineffectiveteamwork
Does the appraisal sys tem prov ide a goo d communication
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between the top- managementplansandbusiness
goalsto staffbelow?
a. Yes b. No
Does it give insightto appraiseeregardinghisstrength or
weakness?
a. Yes b. No
7. Are employeescomments and suggestionstaken into
consideration beforetheappraisal?
a. Yes b. No
8. Who conducts the performance appraisal?
a.
Immedi
ate
supervis
or
b.Peer
appraisal
c.
Ra t in
g
comm
ittees
d.
Self-
rating
e. Appraisalby subordinates
9. Isthe performance Appraisal successful in giving a clear
understanding oftheappraiseesjob to both appraiserand
appraise?
b. Yes b. No
10. Arethe standards on thebasis of which the
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performance appraisal is carriedout communicatedto
the employeesbeforehand?
a. Yes b. No
11. Do you givean opportunityto the appraiseeto rate his
ownperformance?
a. Yes b. No
12. Do you act upon the results of yourperformance appraisal?
a. Yes b. No
13. Ifyes, then mentionthe remedial measurestaken?
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BIBLIOGRAPHY
w w w .goog le.com
w w w .s cr ibd.com
w w w .c ityhr.com
http://www.google.com/http://www.scribd.com/http://www.cityhr.com/http://www.google.com/http://www.scribd.com/http://www.cityhr.com/