INTRODUCTION TO HRM

Evolution of HRM
Human Resource Management (HRM) is relatively an new term for what was earlier called as
personnel management. The term HRM became popular during the 1970summer in USA and
later in India and elsewhere in the world. In real sense, HRM is nothing but a refined form of
personnel management.
Early management:-
In training the evolution of personnel or HRM management, it can be stated that the personnel
management began right from the early days of civilization. Some 7000 years ago there occurred
the great battle victories of the past , the beautiful monuments all over the world and other
achievements are due to management of the people.
HRM then gave birth to Industrial revolution which took place in the 1876 in England. The
concept of factory act and mass production took place. Thereafter the evolution of HRM gained
significance in the traditional world and thereafter in the next line HRM is defined by various
experts in different ways such as Robert Owen. These experts gave different views about HRM.

Robert Owen (1771-1885) who introduced the concept of feedback to the employees to improve
productivity He placed lot of emphasis on Human Resources.
HRM is the need for any part of the organisation. It is universally applicable to all types of
organisations. It places emphasis not only on the achievement of predetermined objectives but
also on improving corporate image and performance of Employees and Organisation in an
attempt to face the competitive business world.

HRM is focused on achieving corporate image in the minds in the minds of various stakeholders.

Concept and Features of HRM :

HRM places emphasis more on the performance appraisal. Performance appraisal is the method
or step in the selection procedure. On the basis of which the efficiency of the employees and
organisation is observed. The performance is conducted at every stage of the organisation
whether it is managerial or non-managerial.

The Earlier organisation used place emphasis only on personnel management of the employees
and organisation. The personnel management played emphasis only on the personnel
 management of the job evaluation and not on actual efficiency of the employees or candidates in
the organisation through its performance.

But the personnel management played emphasis on the cost of the labour. It treated employees as
cost centre. This created a problem of increase in absenteeism and high labour turnover. The
employees were losing there interest over the job because they taught that the job is not
challenging. This resulted into increase in inefficiency of the labour or the employees in the
organisation. This would affect entire productivity of the organisation. This resulted into
1) Increase in labour cost.
2) Increase in inefficiency of the organisation.
3) It resulted into wattages of resources.
4) The financial resource resulted into declining phase.
5) The stock or turnover was either below stock or over stock.
6) The company started loosing their corporate image in the minds of stakeholders.
7) The profits of the company affected adversely.
Then in later part of world the concept of HRM policies took over the traditional personnel
management.
HRM is a process of managing human resources to improve individual, group and organisational
effectiveness. HRM consists of various elements such as human resource planning, recruitment and
selection, training, motivation, performance appraisal, promotion/transfers and career development
of human resources.
In the words of David DeCenzo and Stephen Robbins Human resource management is concerned
with the people dimension in management. Since every organisation is made up of people, acquiring
their services, developing their skills, motivating them to higher levels of performance and ensuring
that they continue to maintain their commitment to the organisation are essential to achieving
organisational objectives.
Edwin Flippo defines the term Personnel/HR Management planning, organising, ,directing and
controlling of the procurement, development, ,compensation, integrations, maintenance and
separation if human resources to the end that individual, Organisational, social objectives are
accomplished.
The nature of HRM is briefly described as follows:
1) Process: HRM is a process of managing human resources. HRM process is undertaken to
achieve organizational objectives. The process of HRM includes:
Acquiring the services of people (selection).
Developing the skills of human resources (training).
 Motivating the manpower.
Ensuring the employees commitment to achieve organizational activities.

2) Multidisciplinary Approach: HRM is dynamic and Multidisciplinary approach. HR managers

make use of various disciplines to manage the workforce effectively. The various disciplines
include:
Management Science,
Psychology,
Sociology,
Communication,
Organisational Behaviour,
Philosophy, etc.
The use of various disciplines enables the management to manage the human resources
effectively to achieve organisational objectives.

3) Universal Application: HRM is all pervasive. It is applicable to business organisations and to

non-business organisations. For instance, a non- business organisation, such as a college or
university has to select, train and motivate human resources to achieve its objectives.

4) Continuous in Nature: HRM is a continuous activity. Organisations need to manage human

resources on a continuous basis. As long as the organisation exists, there is a need to manage
human resources on continuous basis so that the employees undertake the activities with
application and dedication.

5) Objective oriented: HRM places emphasis on the accomplishment of objectives. The

objectives can be broadly listed under four categories:
(a) Individual objectives of Employees such as career development, promotion, etc.
(b) Group objectives such as team work.
(c) Organisational objectives such as increase in market share, profits, etc.
(d) Societal objectives such as social development activities.

6) Long term Benefits: HRM brings long term benefits to the employees, organisations and the
society as well.
 For instance, training (and important element of HRM) improves knowledge, attitude, skills
and social behaviour of the employees. Thus, there is direct effect on the performance of the
organisation not only in the short term but also in the long term.

Due to overall performance of the organisation, the various stakeholders benefit:

Employees gain long-term benefits by the way of the monetary and non-monetary
incentives.
The organisations gains by the way of higher returns investment and better
corporate image.
The society is benefited by the way of better quality of products.
The shareholders benefit by the way of higher dividends, etc.

7) Development of team spirit:HRM aims at developing and maintaining team spirit at every
organisational unit i.e groups and departments. Team spirit can be developed through fair
policies and practices, cordial relations, effective communication skills, etc. Team spirit leads
to team work in the organisation. Team work begins success to the organisation . Team work
begins success to the organisation.

8) Key element in coping with problems: Social, economic, and technological changes have
created acute problems for business and industry. For instance, technological changes require
changes in Organisational structure, upgradation of skills of Employees, product
modifications.

9) Integrated use of subsystems: HRM involves the integrated use of subsystems such a:
Training and development,
Career development,
Organisational development,
Performance appraisal,
Potential Appraisal etc.
Emphasis needs to be placed in all possible areas so that individual, group and organisational
effectiveness is enhanced.

10) Development of employees potentialities to the maximum possible extent, so that they gain
maximum satisfaction from the job. Employees potentialities can be developed through
effective training and development programmes, counselling, and motivation.
Concept of strategic HRM :

Business Dictionary.com defines strategic HRM as Proactive management if the employees of a

company or an organisation.
Society for human resources management (USA) states that Strategic HRM as a discipline
covers the concepts and practices that guide and align HRM philosophy, tactical planning and
practice with the strategic and long term goals of the organisation, with a particular focus on
Human capital.
Strategic HRM involves improving manpower policies and practices relating to selection,
Employees training, employee training, employee compensation, appraisal techniques and
discipline.
It involves working with employees in a collaborative manner to boost retention, improve the
quality of work experience, and maximise the mutual benefit of employment for both employees
and the employer.
Strategic HRM gives direction on how to build the foundation for strategic advantage by creating
an effective organizational structure and design, culture, employee value proposition, systems
thinking an appropriate communication strategy and preparing organizational for a changing
landscape, Which includes downturn and mergers & acquisitions.
Sustainability and corporate social responsibility come within the ambit of this discipline
especially with reference to organisational values and their expression in business decision
making.
Strategic HRM addresses broad organizational issues relating to changes in structure and culture,
organizational effectiveness and performance, matching resources to future requirements, the
development of distinctive capabilities, knowledge management, and the management change.
Strategic HRM is concerned with both human capital requirements and the development of
process capabilities, that is, the ability to get things done effectively. Overall, it deals with any
major people issues that effect or are affected by strategic plans of the organization.

Traditional HRM v/s Strategic HRM

1) Meaning: Traditional approach of managing human resources so as to achieve the short term
goals of the organization. Strategic HRM is a professional and proactive approach o
managing the human resources so as to achieve the strategic goals of an organisation.

2) Nature of decisions: Traditional HRM takes reactive decisions relating to human resources.
Strategic HRM takes proactive decisions relating to human resources
 3) Nature of HR policies: Generally, HR policies are rigid in nature. Once framed,there are
hardly any changes in HR policies. Strategic HR policies are flexible in nature. HR policies
are reviewed periodically and changes are made therein.

4) Objective: The main objective of traditional HRM is to select employees and to compensate
them for undertaking activities of the organisation. The main objective of strategic HRM is
to select, train, place, appraise, promote, motivate, and retrain competent employees.
5) Performance appraisal : Generally, there is lack of emphasus on performance apprausal.
TAAAheHaaRmenagermsy adopt traditional perfirmanceapprausal techniques such as
msinteinungconfidential reports. There us lot if emohasis on performance appraisal of
employees. Midern methods if performance appraisal are undertaken sych as assessment
centres, role analysis, 360 degree appraisal, etc.
6) Ptomotion: Under traditional HRM, promotion by seniority us folllowed at all levels.
Strategic HRM gives importance to promotiob by merit st the top level. And by seniority at
lower level.
7) Placement: Under traditional HRM, thrre us lack of emphasis on systematic placement of
employees right person for the right job.
8) quality if work : Traditional HRM gives more importance to qusntity if eork. Strategic HRM
places lot of emphasis on quality of work performance.
9) Retention of Employees : There us lack of emphasis on retention of employees. Special
schemes are designed to retain employees, sych as retention bonus and other loyalty
programmes to retain competent employees.
The HRM policies are
1) Recruitment and selection.
2) Placement of personnel
3) Performance appraisal
4) Career development
5) Organisational development

1) Recruitment and selection

Meaning of Recruitment : Recruitment us a process of searchinh and attracting
people tiappky for jobs in the company. Recruitment facilitates selection of
employees.
In the eordsof Edwin Flippo, Recruitment is a process if searching for prospective
employeesand stimulating them to apply gor jobs.
 Recruitment can ve undertaken from two main groups of sources:
Internal siurces of recruitment which include transfers, recall of retired
managers, internal sdvertisements, promotion., etc.
External sources of recruitment which inckude consultants, advertisements,
campus recruitment.

Factors Influencing Recruitment Process:

The following are some of the factors that govern recruitment process of an organisation:
1. Internal Factors: There are certain internal factors of the organisation that affect the recruitment
process:
Size of the organisation: Recruitment process is affected by the size of the
organisation. A multi- divisional organisation may require a systematic and an
effective recruitment process to hire the right candidates.
Recruitment policy: Every organisation has a recruitment policy that affects the
recruitment process.
Corporate image: The corporate image of the organisation affects its recruitment
process. An organisation that enjoys a good corporate image would be in a
position to attract best of the talents. Corporate image of the company is based on
factors such as:
1) Working conditions of employees.
2) Social responsibility projects undertaken by the company.
3) Organisational Culture.
Hiring costs: Hiring costs involves:
1) Job posting cost, which includes cost of placing an advertisement for vacant
posts through various media.
2) New recruitment cost involves conducting pre-employment tests and
interviews, background checks, orientation of new employee, etc.
3) Training and development cost includes the cost invested for training the
new employee, salary, and benefits of training staff, training equipments,
and manuals.
Management philosophy: The management philosophy affects the recruitment
process of the organisation. If the management follow traditional philosophy,
then the organisation may prefer to recruit employees ( from within the
organisation ). However, if the management follows professional philosophy,
 the employees may be recruited from the external sources, by following a
proper selection procedure. If a new employee is recruited from the outside, he
may infuse new ideas in the company.
2) External Factors: The external factors affecting recruitment process of the organisation are:
Competitors: Competition in the industry can affect recruitment process in the
or organisation. As the competition intensifies in the market, so is the
Demand for competent employees.
Suppliers of labour: These include employment exchanges, educational
institutes, consulting firms, and others.
Employment Situation: On one hand, the number of educational unemployed us
increasing . On the hand, there is an acute shortage of a variety of skills.I
Pressure Groups: Recruitment process is also being governed by pressure
groups, such as:
1) Trade unions
2) Politician
3) Displaced persons, etc.
Government policy: Recruitment process of the organisation is also affected
by government policies. For instance, as per government policy, certain
seats are reserved for backward castes, especially in government
organisations.

Selection: Meaning of online selection process

Online selection process is a cost-effective method, especially for testing candidates who are located
at a far away place. Online selection process is a win-win situation to the candidates and to the
organisation. The candidates Do not have to waste their time and effort in travelling to the physical
place of testing or interviewing. Organisations can also save selection costs as there is no need to the
candidates.
Tests and interviews can be conducted online. Organisation can conduct skill assessment testing
online. Also preliminary interview can be conducted via Skype, Google Video Cell (Google Duo),
WhatsApp Video call and other networks. However, it is advisable to conduct final interview in
person.
Steps in online selection process:
1) Job analysis: The first step in selection (in- person or online ) is to analyse the job. Job
analysis consists of two elements:
Job description
 Job Specification
Proper analysis helps to advertise the job properly with reference to duties, salary,
qualifications, experience, and so accordingly, the right candidates may apply for job, thus
saving the time and effort of the selectors.
2) Advertising the job: The job can be advertised through various media such as newspapers,
magazines, online ( including social networking sites like linkedln), and so on.
3) Screening: After receiving the applications, the organisation needs to screen them. Usually, a
junior executive does the screening job. The executive may check the age, qualifications,
experience, and other relevant details mentioned on candidates application.
4) Application blank: A company may post application blank to the screened applicants, if so
required. Application blank is a companys format to obtain standard information of every
candidate in respect of academic, biography, career achievements, experience, etc.
5) Online tests: An online tests may be conducted by an organisation to judge the ability or
expertise of the candidates. The various tests that can be conducted online include:
Performance test
Aptitude test
Personality test
Interest test
Intelligence test, etc.
6) Online Interview : It is advisable to conduct interview of those candidates who clear the
written tests. Generally, interviews follow tests, because the number of candidates to be
interviewed is less as compared to those that appear in the tests.
7) Reference Check: Candidates may be asked to provide references to confirm about the
candidates character, and experience. References help to check :
Character and experience of the candidate.
Relevance of the information provided by the candidate in application
and in the interview.
8) Personal Interview: A few short listed candidates may be asked to give personal interview. In
personal interview, the interviewers personally interact with the interviewee. In the personal
interview; the interviewers can find out whether or not the candidate is seriously interested in
the jib. At this stage, salary and other perks may be negotiated.
9) Medical check.: A company needs to conduct medical check before the candidate is selected
for the job. It is undertaken to:
Check whether or not the candidate is medically fit to do the job.
Ensure the health and safety of existing employee.
 10) Job offer: This is the most crucial and final step in selection process. A wrong selection of a
candidate may affect the goodwill of the organisation for several years. A company should
make a very important decision to offer right job to the right person.

Placement of the personnel: Placement of personnel is very important in the organisation. The
placement helps to select and place right person for right job. The person who is placed on the right
job will be interested in doing job and will perform well in organisation and will produce good
results.

Placement of the personnel affects the performance level of the employees in the organisation.
Placement of the personnel helps to gave suitable candidate for right job.

Hypothesis 1- placement of personnel significantly affects the productivity of employees and

organisation .

Hypothesis 2- The placement of personnel does not affect performance of employees and
organisation
.
The placement of employees does not affects the performance of employees and organisation . This s
because the employees are focused on achieving the predetermined goals of the organisation and
they even interested in learning new skills of job which is offered to them even if they are wrongly
placed .
Importance of placement:
1) Improvement in performance: proper help to nurture and improve the performance of
employees and organisation in the market.
2) Motivation: proper placement helps employees to be interested in doing the job with
dedication and commitment.
3) Communication: Proper placement also helps to improve communication gap between
superiors and subordinates.
4) Less wastage resources: proper placement helps in making effective use of its various use of
resources. Effective use of resources helps to reduce wattages in case resources.
5) Optimum utilisation of resources: proper placement helps in making optimum use its various
resources:
Physical resources
Financial resources.
 Human resources.

6) Improvement in productivity: proper placement of personnel helps to produce better quality

of product of right quantity to satisfy the needs of the customers. This helps to retain existing
customers and get new customers which helps to get good amount of profit and get good
feedback from various other stakeholders which helps to improve productivity of the
company.
7) Corporate Image: Proper placement helps to improve corporate image in the minds of various
stakeholders.
8) Competitive advantage: Proper placement helps to get competent and capable employees in
the organisation. Thus helps to face the completion in the market under extreme conditions
also .
9) Helps to reduce employee turnover: Due to proper placement of employees the employees
become loyal towards the organisation. They do not leave the organisation and training costs
of employees is reduced and try to invest those funds for developmental purpose.

Career development and advancement:

Career planning is the systematic process by which a person selects career goals and the means to
achieve them. To achieve the career goals, the employees need to plan for career path. From the
organisations point if view , career planning implies assisting the employees to plan for career path
in terms of their capabilities.
Examples of career paths:

For management personnel- Management Trainee- Junior Executive Assistant Manager

Senior Manager Senior manager Departmental Manager Vice President CEO.
For unskilled worker- unskilled semi Skilled- skilled- specialist- Forman/supervisor.

Career Development is a set of programmes to match an employees career goals and abilities with
the current and future opportunities in the organisation.
CPD is important to the employee as well as to the organisation. The importance of CPD is explained
as follows:
1) Importance to the employee:
1) Career selection: career planning and development enables the employee to select
the right career in the organisation. The employee may be subject to various
 development programmes. The development programmes may help to enhance the
capabilities and skills of the employee.
2) Career upgradation: Career planning and development may enable the employee to
upgrade his /her career within the organisation. For instance, a management trainee
can rise even to the position of CEO in the organisation through proper planning of
career paths in the organisation.
3) Improvement in performance: Career planning and development enables the company
to improve his/her performance in the organisation. It facilitates the right placement
of the employee, which improve motivation level of the employee. Increased
motivation may result in greater commitment and dedication of the employee, which
in turn helps to increase job performance. Also, job performance improves due to
improvement in skills and capabilities on account of career planning and development
programmes.
4) Job Satisfaction: Career planning and development can sharpen the skills and
capabilities of the employee. The improvement in skills may lead to higher
performance. Higher performance may bring higher rewards and recognition to the
employee. Increased rewards and recognition may lead to higher job satisfaction,
which in turn will further improve the employee performance.
5) Improvement in morale: Career planning and development may help to boost morale
of the employee. Morale is the mental condition with respect to courage, discipline,
confidence, enthusiasm, etc., within an individual or in a group. According to Edwin
Flippo, Morale is the mental condition or attitude of individuals and groups which
determines the willingness to cooperate.
6) Satisfaction of esteem needs: Career planning and development can help to satisfy
esteem or ego needs are higher levels in the people and are able to meet demands of
life.
7) Improves Mental Health: Career planning and development programmes attempt to
improve mental health of employees. For instance, counselling technique of
developmenthelms to improve mental health and personal well being. Employees with
good mental health feel comfortable about themselves, right about other people and
are able to meet the demands of life.
8) Reduces Monotony and frustration: Performance of the same Type Of Work For
Years Together May Generate Monotony And frustration in the employee. Career
planning and development helps the employees gets an opportunity for handling
higher level jobs.
2) Importance to the organisation:

1) Reduction in employee turnover: Career planning and development helps to reduce

employees turnover The employee become loyal to the Organisation, and they may
not leave the organisation despite tempting offers from the competing firms. This is
because; the employees may be assured of higher as and when they fall vacant.
2) Motivated Employees: Career planning and development leads to highly motivated
workforce in the organisation. Employees are motivated because of right careers in
the organisation. Due to motivation, performance of the organisation improves.
Therefore, employees can be further motivated by giving them monetary and non
monetary incentives.
3) Higher Efficiency: Career planning and development helps to improve efficiency.
Efficiency us the ratio of returns to cost. Higher efficiency takes place when the
organisation gets higher returns at a lower cost than before. Employees make every
possible effort to improve returns and reduce costs, wherever possible.
4) Corporate image: Career planning and development promotes the image of the
organisation. Thus is because; well developed employees make constant efforts to
improve performance and productivity. As a result of higher performance and
productivity, image of the firm improves in the minds of various stakeholders.
5) Competitive Advantage: Career planning and development may give competitive
advantage to the firm. Employees may come up either innovative ideas to develop
new and quality goods. Innovative ideas may also help to reduce costs. Therefore, the
company may be able to offer quality products at right prices, the company may be
able to offer quality products at right prices, which definitely gives competitive
advantage.
6) Reduction in Employees grievances: Career planning and development heled to
reduce employees grievances. The employees are fully aware of the companys
policies, and improve the practices. Therefore, the employee grievances are reduced
to the minimum.
7) Facilitates succession planning: Career planning and development facilitates
succession planning. Succession planning is a process of making of the arrangements
to fill up the key organisational positions including that of CEO. Career planning and
development enables the company to fill up managerial positions as and e they fall
vacant. This is because; employees are well developed with the help of various
development programmes to handle higher level of jobs.
 8) Attracts and Retains Talented Employees: Career planning and development attracts
and retains the talented employees. This is because employees are more or less certain
of career opportunities within the organisation Also potential employees are more
willing to the join the organisation because if career advancement opportunities.

Abstract
The purpose of this study was to determine the factors which the employees in the organisation
preferring for their appraised for their appraisal for their appraisal and the employees satisfaction
with the existing appraisal system. The results of the current study can be biased by organisation to
develop policies, practices and strategies regarding their appraisal system and can create greater
efficiencies in meeting strategic business objectives. Findings were made based upon the data
collected from 150 employees with the aid of Questionnaire in which 5-point Liker scale and rating
scale were employed. Most of the respondents rate both subjective and objective measures as
preferable. It was also found that some employees surveyed are dissatisfied with their present
organization appraisal methods and there are great chances that they may leave their employees if
they may leave their employees if they get better job opportunities from any better employer. The
employers must pay attention to the situation and design effective methods as remedies at the earliest
or else they may soon loose their efficient workforce.

Chapter 1

Introduction to performance appraisal and other related areas

1.1) Introduction- Performance Appraisal is the systematic evaluation of the performance of

employees and to understand the abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which are as follows:
1) The supervisors measure the pay of employees and compare it with this goals and Plans to
measure the performance of the organisation.
2) The supervisors analyses factors behind work performance of employees.
3) The employees are in a position to guide the employees for a better performance.
The aspects and determinants of human behaviour is motivated in the organisation is the important
ancestors given to the performance level in the organisation. Many researchers like Armstrong and
Taylor in 2014 have studied the subject of performance appraisal as a part of human resource
management. The theorised and practices of performance appraisal have seen a lot of revolution over
ages. However, with the advent of the era of industrialisation, the topic gained prominence in
academic and professional research. The process and practices of performance appraisal has
undergone many changes in the past decades. Among such changes, the concept of forced ranking or
forced distribution has been a most talked about one. The concept was developed and popularised by
the most celebrated management professional Jack Welsh of the General Electric Company in the
last two decades of the 20th century (GE, 2000).
The Department o public Enterprise (hereinafter: DPE) of the government of India issued a guideline
in 2008 (DPE, 2008) making it mandatory for central public sector companies of India to adopt a bell
curve shaped forced distribution in their appraisal process for the purpose of regulation of
performance related pay (hereinafter, PRP). The National Aluminium company of India has been
following the system since 2009-10 in compliance of the guidelines of DPE.
This change has forced the company to mandatory rate minimum of 10% of executives as poor
performers, even though there may not be so many. This seems to have affected the morale if the
executives adversely in addition to career graph of some. This has also affected their pay package.
There is widespread discontent mentioned amongst executives,
mostly talented graduate engineers appointed in the earlier years of the company. This study
proceeds, in the background to determine the actual state of affairs in the appraisal process and its
possible effects on the morale and motivation of managers of the company and recommend steps for
correction, if required.
The various companies chose for their study is the study which helps in examining whether the
performance appraisal systems and other features in the process of performance appraisal is actually
causing loss of morale, commitment and motivation among the managers of the organisation. It also
intends to propose measures to reinforce the system of performance management of executives to
align the same with strategic objectives of the company within the perimeters of government
guidelines. With this purpose in view the study proceeds :

To find empirical evidences as to whether the morale of executives has been adversely
affected by the forced ranking of appraisals in the organisation;
To examine the executive performance appraisal system of the organisation before and after
2009-10 and analyse its impact on morale and performance of executives to find out answers
to the following questions:

1) How does the process followed by the organisation for force ranking its executives
compare with the theoretical framework and global practices?
2) How does it compare to the process followed by similar central public sector
companies of India?
 3) Do the executives of the company accept the bell curve based ranking as an
effective tool for performance management?
4) Has the forced ranking method affected or influenced the morale, motivation,
commitment, and workplace attitude of executives of the organisation?
5) Is there any alternate method of achieving the results of bell curve intended by the
DPE in its guidelines?

To briefly discuss the performance appraisal methods of a few central public sector
companies of India;

The research hypothesis arising from the above questions are:

Hypothesis 1: Managerial employees of the organisation do not consider the present appraisal
system as a good system.

Hypothesis 2: The level of work place behaviours like morale, motivation, organisational
commitment and attitude of managerial employees of the organisation is low.

Hypothesis 3: The forced distribution based appraisal system is responsible for low levels of
workplace behaviours demonstrated by the managerial employees of the Organisation.

For answering the above research questions and testing the hypothesis, the study uses a
deductive approach. Existing literature review using resources of FELU library and research
engines of Google, Mendley, Jstor etc and study of companys internal records, data available
on the official website of DPE has helped to establish the research questions and hypothesis
Primary data with regard to perception of executives and managers of the company about the
bell curve method and about their performance /motivation levels are from random
stratified sample based questionnaire survey and by telephone interview method. The study
uses the SPSS Statistical tools for descriptive statistics and hypothesis testing.

1.2Benefits/Uses of Performance Appraisal:

Performance appraisal serves a two fold purpose. The purpose could be either for evaluation of
performance or for development of employees. In general performance appraisal serves the
following purposes:
1) Performance Feedback:
2) Performance appraisal provides performance feedback to the employees. Employees can
come to know about their job related strengths and weaknesses. Such feedback enables the
employees to correct their weaknesses and improve on their strengths.
3) Training and Development:
4) Performance appraisal information may be used to determine whether an employee or a
group of employees requires additional training an development. Deficiencies in
performance may be attributable to inadequate knowledge or skills. Accordingly the
organisation may decide to provide additional training to employees.
5) Motivation:
6) Performance appraisal facilitates motivation of employees. The high performing employees
are given higher ratings in performance appraisal. They may be rewarded with monetary and
non-monetary incentives.
7) Promotion:
8) Performance appraisal gives management a means of identifying employees for promotion
Past appraisals together with other background data enable the management to promote the
right employees to higher posts.
9) Transfers:
10) Performance appraisal is useful in transfer decisions of employees. Effective transfer of
employees is possible through reports of performance appraisal.
11) Human Resource planning:
12) The appraisal process aids in human resource planning. Accurate appraisal data regarding
employees may provide management with important information to base decisions for future
employment. Without the knowledge of who is capable of being promoted, transferred, and
terminated; management is at a severe disadvantages with respect to framing future
employment plans.
13) Management- Labour Relations:
Performance appraisal helps to maintain good labour relations between the management and
labour. This is because; performance appraisal creates an healthy atmosphere in the
organisation.
14) Documentary Evidence:
Performance appraisal reports can be used as an important documentary evidence in case of
disciplinary evidence in case of disciplinary action taken against some ineffective employees.
This is especially true in
 15) Effective communication:
Appraisal interviews and reports can be effective means of communication to the employee
and result in improved performance.

16) Career development:

Performance appraisal enables managers to coach, counsel, and assist employees in the
career development.

1.3) The basic Motivation force

A) Needs:
The best word definition of a need in a deficiency. The employee needs motivation to perform well.
The motivation can be in the form of rewards and incentives. The motivation can help the
organisation to create efficient and productive employees in the organisation.
The motivation can help the employees to improve their awareness and mindset towards the
organisation. They can only perform better when the motivation helps the organisation to have
competent workforce.
The employees can work with positive attitude and learn to handle pressures situations very easily
and tackle the obstacles coming in the way of organisational activities.
The organisation or management needs to dominate rightly to motivate the employees to deliver
brilliant performance. The perfect domination will help the organisation to play a dominant role in
the global market as well.
The organisation can expand its business activities from local to national level and to the
international level.
The motivation in employees help to develop good relationship between the employees and the
organisation to which removes the communication gap between the employee and the management.
The employee should be promote on the basis of seniority because the performance appraisal helps
in understanding about the skills and obstacles of the employee.

B) Drive:
1) The drive helps to remove the deficiency among the employees in the organisation.
2) The drive helps in providing proprietary direction to the employees in the organisation.
3) This motivates the helps to get aware of their duties and responsibilities towards the
organisation.
 4) The employees can be action oriented and privies an enthusiasm towards accomplishment of
organisational objectives
5) The employees needs to have a perfect drive which can motivate them to be efficient and
productive.
6) The drive helps the organisation to have strong quality of work force.
7) The employees are treated with due respect and treat them as partners towards the success of
the organisation.
8) The employees should be given monetary and non-monetary incentives to motivate them to
work efficiently.
9) The examples of the needs for food water are translated into the hunger and thirst drives for
application.
C) Goals:
1) At the end the motivation cycle is the goal.
2) A goal in the motivation cycle is defined or a anything which will alienate a need and reduce
a drive. Thus attaining a goal will stand to restore physical or psychological balance and will reduce
or cut off the drive.
3) Eating food, drinking water and obtaining friends will tend to restore the homeostatic balance
and reduce the corresponding drives.
4) food, water and friends are the goals in this example.
1.4) Steps in performance appraisal
Setting performance standards

Communicating standards

Measuring performance

Comparing standards

Discussing results

Listing corrective Measures

Implementation

Review
1) Setting Performance Standards.: The process of performance appraisal begins with job
analysis, which includes job description and job specification. Job analysis helps in
establishing performance standards. Performance standards depend upon the objectives of the
appraisal I.e. to appraise actual performance on the present job or to judge potential for
higher jobs. The performance standards should be specific; measurable, attainable, realistic
and time bound. These standards should be carefully indicated on the appraisal form.
2) Communicating Standards.: The next step is to communicate and explain the performance
standards to the employees so that they come to know what is expected of them The
standards also be conveyed to the evaluators.
3) Measuring performance: Once the standards are communicated to the employees, next step is
to measure the actual performance. The evaluator can use the following techniques for
measuring the actual performance of the employees:
a) Management by objectives
b) Assessment centres
c) 360 degree appraisal, etc.
4) Comparing with standards: Actual performance is compared with the predetermined
performance standards. Such comparison will reveal the deviations which may be positive or
negative. Positive deviations occur when the actual performance exceeds standards. Negative
deviation is indicated is indicated when there is excess of standard performance over the
actual performance.
5) Discussing results: The results if the appraisal are communicated to and discussed with the
employees. The discussion will enable an employee to know his weaknesses and strengths
and overcome weaknesses of the employees.
6) Listing corrective Measures: The next step is to list corrective measures, which includes-
A) Training and development
B) Coaching and counselling
C) Firing and warnings, etc
7) Implementation: Out of the listed corrective measures, the most appropriate and suitable
measure may be selected for implementation. For, instance if training and development is
selected as a corrective measure, the following factors should be considered for its
implementation for its implementation:
a) Duration of training program
b) Contents of training
c) Method of training, etc.
 8) Review: The appraising authority must find out whether the corrective measures suggested
are implemented or not. He must also find out whether the corrective actions have helped to
improve the performance of the employee.

1.5)Principles and guidelines of performance appraisal

1) Proper Evaluators: The performance appraisal should be conducted by those who are
experienced, qualified, matured, and honest. If, necessary, proper training may be given to
the evaluators so that performances appraisal is fair and justified. If possible, performance
appraisal needs to be undertaken by more than one person.
2) Proper timing: Performance appraisal must be conducted Periodically. It is advisable to con
duct performance appraisal at least twice in a year. If possible, Performance appraisal may be
undertaken quarterly or every three months.
3) Proper feedback: The performance appraisal reports should be made known to the personnel.
This will enable them to know their strengths and weaknesses. Accordingly, personnel may
take corrective steps to correct their weaknesses and consolidate their strengths.
4) Proper weightage: proper weightage should be given to various performance factors. Certain
factors such as creativity may require higher weightage as compared to quantity of work. The
weightage given to the factors depends upon company to company and from one job to
another.
5) Provision for appeal: There must be mechanism for appeal, if an employee disagrees with a
supervisors appraisal. In other words there must be a systematic procedure to appeal against
the performance appraisal reports. The procedure must be made known to the employees.
6) Defined job dimensions.: There should be clearly defined dimensions of job performance
rather than undefined general measures of job performance. This facilitates systematic
appraisal of the employees.
7) Behaviour based dimensions: Performance dimensions should be behaviourally based and
ratings should be supported by objective observable behaviour.
8) Performance Appraisal policy: The performance appraisal should be made known about the
performance appraisal policy.
9) Reliability: The performance appraisal must be reliable. For any given employee, appraisals
made known about the performance appraisal policy. For any given employees, appraisals
made by the several raters working independently of one another should agree closely.
 10) Easy to administer: The performance appraisal system must be practical. It should be easy
and convenient to administer and at the same time it should serve the purpose.

1.6) Ethical Aspects in performance appraisal

Ethics is a social science that deals with what is good and right, and with duties and obligations.
Ethics is a social science of morality that guides and helps to achieve objectives through legal and
moral means. Ethics in appraisal guides the action of the appraiser as well as the appraisee.

1.Ethics on the part of the appraiser

The appraiser should maintain ethics while evaluating the performance of the appraiser.
1) Objective Evaluation: The rater must evaluate the ratees performance objectively. He must
avoid personal bias while rating the performance of the appraisee. If the rater has good
relations or connections with the ratee, he may always tend to give high scores to the ratee,
even though the ratee does not deserve such high scores. Such outright bias results in
defective evaluation.
2) Adequate information: The appraiser must not conduct performance appraisal for the sake.
He must collect complete and relevant information about the ratee to conduct effective
performance appraisal. The appraiser must know the performance based information and
behaviour based information of the ratee.
3) Reliability: The performance appraisal conducted by the rater must be reliable. For any given
employee, the rater may work with several other raters independently to find out the accurate
appraisal report of the given employee. The appraisal report prepared by the several raters for
the given employee must closely agree with each other.
4) Proper weightage: The appraiser must give proper weightage to various performance factors.
The weightage given to the factors depend upon company to company and from one job to
another. Certain factors such as creativity may require higher weightage as compared to
quantity of work.
5) Proper Feedback: The performance appraisal reports should be communicated to the
concerned employees. The reports should place emphasis on performance improvement areas
and not on accomplishment of penalty to employees. The reports should enable the
employees to know their strengths and weaknesses. Accordingly, employees may take steps
to consolidate their strengths and correct weaknesses.
6) Ethics on the part of the Appraiser
The Appraiser should consider the following with respect to his appraisals:
 6) Correct Information: The Appraiser must provide correct and adequate information to the
Appraiser for the proper conduct of performance provided is false or inadequate, then , it
would result in faulty performance appraisal.
7) Attitude towards ratings: The employee should have positive attitude towards the stings as
assigned to him by the rater. He should not criticise the raters remarks but should have the
spirit of correcting his weaknesses. He should focus on improving his performance.
8) Avoid confrontation: The ratee must avoid confrontation if he receives unfavourable remarks
from his rater. If he disagrees with the rater, then, he may make an appeal against the
performance appraisal reports. The performance for mechanism for appeal should be made
known to the employees.

1.7) Job analysis

A job may be defined as a sum total of tasks, duties and responsibilities which is assigned to
individual employees.
After definition of job, HR manager needs to undertake job analysis. Job analysis is the starting point
of recruitment and selection . It is a systematic process of collecting and studying information about
the various in the organisation.

Edwin Flippo defines, Job analysis is the process of studying and collecting information relating to
the operations and responsibilities of a specific job.
Job analysis consists of two areas
a) Job description
b) Job Specification

Job analysis
Job description Job Specification

Job titleQualifications
Duties and responsibilities Qualities
Working conditionsExperience
Working hoursFamily background
Salary and incentives Aptitude

Job description gives details of job in respect of duties, responsibilities and other aspects. It is
an overall written summary of task requirements.
Job Specification gives details relating to the candidate who is supposed to do the job, such as
qualifications, skills, experience, etc. It is an overall written summary of employees
requirements.
Benefits of job analysis:
Job analysis is the foundation many human resource management programmes. The uses and
importance of job analysis is stated as follows:
1) Organisational structure and design: By clarifying job requirements among jobs,
responsibilities at all levels can be specified.
2) Human Resource Planning: Job analysis is the foundation for forecasting human
resources requirements. It also helps to plan for activities such as training, transfer,
or promotion. HR requirements forecast is done in terms of quality and quantity.
3) Recruitment and selection: Job analysis is the starting point of recruitment and
selection. Properly analysed jobs can be advertised effectively. Only the suitable
candidates apply for job.
4) Placement: Job analysis facilitates proper placement. The selected candidates can be
placed at right job depending upon their qualities, qualifications, and experience.
5) Performance Appraisal: The performance of the employees can be compared to the
duties and responsibilities as stated in the job description. Accordingly, the
company can find out the strengths and weaknesses of its employees.
6) Training: Job analysis is useful for providing effective training. Those employees
whose performance is weak can be identified and accordingly training can be
provided to correct their weaknesses.
7) Job evaluation: Job analysis acts as a base for job evaluation. The relative worth of
each job cab be found out by comparing the details provided by job description and
job specification.
8) Promotion and transfers: Job analysis facilitates promotion and transfer of
employees. The performance of employees is compared against the job duties and
responsibilities.
9) Career path planning: Job analysis helps in thorough understanding of the
requirements of available jobs and how jobs at succeeding levels relate to one
another.
10) Health and safety: Job analysis helps to discover unhealthy and hazardous
environmental and operational conditions in various jobs. Such information enables
to take corrective measures to minimise and avoid the possibility of accidents and
thus, to ensure the healthy and safety of employees.
 11) Job design: With the help of job analysis information, improvements can be made in
the work design and work method time improve productivity and job satisfaction.
12) Acceptance of job offer: Job analysis is useful to the candidate for the job offer. The
candidate can get clear and correct information about the duties, salary, working
conditions, promotion opportunities, etc. This facilitates the candidates decision to
accept or reject the job offer.

Components of job analysis

1. Job description
Job description gives details of the job title, duties and responsibilities, location of the job, working
conditions, and other details describing the job.
According to Edwin Flippo a job description is an organised, factual statement of duties and
responsibilities of a specific job. In brief; it should tell what is to be done, how it is done and why. It
us a standard of function, in that it defines the appropriate and authorised content of a job.
Contents of job description:
1)Job identification: It gives details regarding to the job title, code number of the occupation,
location, name of the division/department, location and the Unit where the job exists.
2) Job summary: It gives a brief explanation of the contents of the job in terms of tasks or activities
to be performed, the hazards and discomforts relating to the job.
3) Duties and responsibilities: It indicates the duties to be performed what, how and why of a job. It
also describes job responsibilities relating to custody of valuables and records, supervision and
training of subordinates, and other responsibilities towards effective performance of the job .
4) Relationships with other jobs: It indicates internal (within the organisation) relationship of the
jobs that are horizontal, vertical and diagonal.
5) Machines and tools: Ireland states the type of machines, tools and equipments that are to be used
for the performing the job activities.
6) Supervision: It indicates the extent of supervision which the job is subject to from the higher
levels, and the extent of supervisions which the job holder to adjust with the social environment at
the work place.
7) Social environment: The social environment prevailing in the organisation may be stated in the
job description.

2) Job specification: Contents of job specification

1) Mental characteristics: includes general intelligence, aptitude, mental alertness, ability to
concentrate, analytical reasoning, logical reasoning, creativity and innovative Ness.
2) Personal Characteristics- includes age, gender, education, work experience, leadership qualities;
pleasing personality, and manners; communication skills, dispute resolving skills, technical skills,
conceptual skills, etc.
3) Physical characteristics- includes height, health, hearing, vision, voice, poise, motor coordination,
physical stamina, etc.
4) Social and psychological characteristics- includes emotional stability, cooperatives, human skills,
conversational skills, social relations, introvert/extrovert, social citizenship behaviour, etc

The elements included in job specifications different from organisations to organisation, from Job to
job. However, elements like age, gender, education, health, experience, and skills are invariably
included in job specification for all the type of jobs in all organisations.

Chapter 2
Research Methodology of performance appraisal of Span Systems

2.1) Research Methodology of Span Systems is the systematic investigation to search for new facts
in branch of IT sector. Research helps to arrive at new conclusions in case of SPAN Systems about
various performance related aspects of performance appraisal. SPAN Systems is helped by research
in finding solutions to certain problems. Research is often considered to as scientific enquiry in case
of performance appraisal in case of SPAN Systems to solve a particular problem or situation. This is
because; the search for facts needs to be undertaken systematically and not arbitrarily. The
systematic approach to research enables the research to search for facts in a rational manner and to
arrive at logical conclusions, whereas, the arbitrary approach attempts to find solutions to the
performance appraisal in case of SPAN Systems.
SPAN Systems makes the procedure and makes the use of various methods to determine
performance appraisal of each and every employees in the organisation . They use systematic way of
detecting performance of employees in the organisation. They take various internal test to judge the
ability and capabilities of employees for making strategic and systematic decision about performance
appraisal of each and every employees in the organisation.

Nature and Characteristics of Research.

 1) Scientific method: Research uses scientific method to find facts or to provide solutions to the
problems. The research needs to follow systematic procedure to conduct research in case of
performance of employees in SPAN systems.
2) Objective and logical: The scientific research is objective and logical in nature. Research is
based on valid procedure and principles.
There is need to collect relevant, accurate and objective data to investigate into the research
problem. Researchers need to make every possible efforts to avoid bias in data collection.
3) Applied and Basic research: The research can be broadly classifiedinto two broad groups:
A) Applied Research
B) Basic Research
Applied research is designed to solve the practical problems of the modern world rather than to
acquire knowledge about performance appraisal in case of span systems. The goal of applied
research is to improve the awareness of employees in case of improving the level of performance and
also to the SPAN Systems to provide required support to improve the performance of the employees
as well as the organisation world wide to face the competitive world outside the organisation
structure. For example historical research can be undertaken to know the information about past
performance of the employees and if there is positive deviation then will not require more support
and should take in view that that performances of the employees continues to be positive .
If there are negative deviations then it is required to undertake various measures to undertake the
various methods to remove the deviations and corrective action must be taken to improve the
performance of employees in the organisation.
Basic or fundamental research is driven by a managers curiosity or interest in a scientific question to
know the about performance of employees and to undertake knowledge about how to improve the
performance of employees in the SPAN systems. There is no obvious commercial value to the
discoveries regarding performance of employees and organisations that can result from the basic
research. For instance, basic research can be undertaken to study the origin of the universe. Basic
research lays down the foundation for applied science that follows.
4) Generalisation: Research findings can be applied to the larger population. A researcher can
conduct a research on a sample of respondents that represent the universe. The sample
selection must be done systematically so that it properly responds to evaluate the
performance of entire organisation contain big population of employees that represents the
performance of each and every employee in the population or the universe of the company.
5) Controlled Nature of Basic Research: Internal rea life experiences there are many factors that
affect any outcome. In case of performance appraisal , training , career development,
 replenishment of knowledge and learning of different skills have tremendous impact in the
performance levels of the employees.
6) Development of theories and principles: Acquiring systematic research helps in creating new
principles and theories. The systematic approach towards the assessment of performance of
the employees helps to deal with the situations in the organisation and to have good
knowledge about performance of the employees and to tackle the problem very
professionally.
7) Multipurpose or Multidimensional activity: Research in the case of performance appraisal is
the multidimensional activity helps to predict future performance levels of the employees
and very the old performance levels of each every employees in the organisation.
8) Manipulation odd concepts: The researcher tries to manipulate things, or concepts. The
manipulation or purposeful activity to control things or concepts and in this the situation may
arrive in the organisation by creating a situation where toughest situation and making
observing that the employees how they use of their skills to get rid of the critical incident in
the organisation to arrive at the statement of generality and which help to determine the
patience and temperament to deal with such situations. Remember only the brave will make
an effort to deal with the tricky and toughest situations in the organisation and service for a
longer period of time.
Need and importance of Research in case of performance appraisal of Span Systems
SPAN Systems can gain significantly with the help of research. Research and development is
undertaken to develop new products, improve the design and quality of existing ones, and to
reduce costs. Marketing research helps to solve marketing problems relating to price, physical
distribution, packaging, positioning, and so on.
The needs and importance of research in business is stated as follows
1) Product development: Through marketing research, a business firm can identify the customer
requirements, and therefore, it is possible to design new models or to modify existing
products to satisfy the customers.
For instance, Through marketing research, SPAN systems company may find out that the
customers looking for features, after-sales-service, re-sale value, right price, technology
efficiency, and so on. Accordingly services will be designed and marketed.
2) Reduction in costs: Research is SPAN Systems helps to reduce costs. The research may
indicate the areas where high costs are involved. It may for the firm to cut down the costs in
certain costs.
3) Marketing Mix decisions: Marketing research enables firm to arrive at sound marketing- mix
decisions with respect of SPAN Systems with respect to product, price, promotion, and
physical distribution.
A) Product Decisions: As mentioned earlier, marketing research about the SPAN
Systems helps to identify huge firm about the type and quality of products and
services to required by the stakeholder like customers.
B) Pricing decisions: Marketing research enables a firm to analyse competitors process
and adopting the strategic pricing policy about the product or services at the
affordable reasonable prices so that customers can get the product or get services
easily.
C) Promotion-mix decisions: SPAN Systems undertakes promotional techniques through
marketing research like publicity, sales promotion, etc. If promotion mix research is
not conducted, the firm may give more emphasis on certain elements..
D) Place decisions: Marketing research may also enable the firm to take appropriate
decisions, with reference to the area of distribution, channel selection, incentives to
channel intermediaries.
4) Customer relationships: Marketing research may help the firm to develop good relation with
its customers, especially, The priority customers. Research can help the firm to collect
valuable inputs about the priority customers. Based on the valuable input, the SPAN Systems
adopts various customer relationship techniques such as package of loyalty, free data services
for the priority customers and other voucher related benefits to the customers who are
delighted with three services.
5) Dealer relationship: SPAN Systems undertakes dealer relationship for the survival of the
answer success of the business organisations Marketing research enables a business firms to
maintain good relationship with dealers. Accordingly, the firm may take appropriate,
decisions relating to dealers compensation and incentives so as to maintain good
relationship.
6) Corporate image: Nowadays, firms need to build, maintain, enhance corporate image in the
minds of various stakeholders- customers, dealers, employees, and others. For instance,
SPAN Systems undertake consumers research which enables the firm time obtain feedback
on the customers requirements and expectations, and accordingly the company would make
the right efforts to satisfy customers and develop good image in the minds of customers.
Similarly dealer research enables the company that to obtain feedback on dealer
requirements and expectations, and thus the company would make efforts to enhance dealer
satisfaction, which in turn would develop good image in the minds of dealers.
 7) Competitive Advantage: Through research a company can take proactive decisions, such as
the introduction of new models, introduce price charges undertake innovative promotional
schemes, and so on . The proactive decisions can confer competition advantage to the firm.
8) Human resources plans and policies: Research is undertaken in case of SPAN Systems in
case of HR related policies in respect of:
1) Recruitment and selection
2) Training ton employees
3) Performance appraisal
4) Promotion and transfers
5) Compensation and Plans.
9) Financial Management: Research may be undertaken for efficient management of finance.
Finance. Financial management covers two broad areas:
1) Sources of funds
2) Applications of funds

2.2)Objectives of performance appraisal research of SPAN Systems

Researchers undertake research with definite objectives Some of the important purpose of the
objectives of SPAN Systems in case of performance appraisal are currently briefly stated as follows:
1) To find solutions to the performance appraisal: Research has been undertaken that SPAN
Systems initiates the problem of performance appraisal to improve the performance of the
employees in the organisation. SPAN Systems increased the salary of the employees to
improve the performance of the employees in the organisation.
2) To verify and test existing laws and theories: Research is undertaken that the company makes
various law and theories to verify the performance of employees. Such verification and
testing of theories helps to improve the knowledge and ability to handle situations and events.
This is true when the existing theories may not be sufficient or relevant to handle certain
situations and events, and therefore, through research, improvements or modifications can be
made in the existing performance of the employee selectors.
3) To obtain information: Research is undertaken to obtain information about the performance
appraisal of the employees which can be easily obtained during the ordinary course of the
functioning of the institution or an organisation.
4) Tour extend knowledge: Researcher undertake research about the existing performance levels
of the employee and organisations. The knowledge can be enhanced by undertaking research
in general and by fundamental research in particular.
 5) To establish generalisations and general laws: Research can be undertaken to establish
generalisations and general laws in a particular society. In other words, statements of
generality can be stated through research . For instance various laws, principles and models
have been developed through research. AIDA ( attention, interest, desire, and action) model,
law of demand and supply, the law of gravitation, etc. , have been developed through
observation, experimentation, and other methods of research.
6) To predict events: Research may be undertaken to predict future policies and vision to
improve the performance of the employees in SPAN systems and by undertaking proper
manpower planning and training and development functions to improve the efficiency and
productivity of employees and organisations.
7) To analyse inter-relationships: Research is undertaken to analyse interrelationships between
variables to which are directly or in directly related to the maximise the performance of the
employees as well as of the organisation.
8) To develop new tools and concepts: The SPAN Systems makes use of new principles and
theories such as upgradation of technology and providing specialist training to the employees
so that the will be interested in doing the activity and improve the performance of the
employees.
9) To develop new principles and theories: The SPAN Systems makes systematic changes in the
the principle of promotion of employees on the basis of the merit at the higher level and also
which helps to have proper employees in the higher level in the organisation. This may bring
positive change in performance standards of the organisation.
10) To develop innovative ideas: Research may be undertaken to generate innovative ideas for
the welfare of the mankind. For instance, research enables the Organisation to develop
innovative ideas in respect of:
a) New and improved products.
b) Improved organisation structure.
c) Better technology.
d) New resources of raw materials, etc.
2.3) Performance related variables and process of Process of a Research Methodology for
performance appraisal:
Statement of problem: The performance appraisal of the employees in the organisation should be an
effective tool for measuring the employees performance. If the employees performance is not
measured in the real manner it will be critical issue. A study on impact of performance appraisal was
undertaken to the study the reasons and ways to improve the condition.
Hypothesis of the study: The formulation of hypothesis is an important in the formulation of research
problem. The company like SPAN Systems makes assumption of the problem of performance levels
of the employees. The study of hypothesis includes the calculation of null and alternative hypothesis
by comparing age group of respondents and preferences of the appraisal system. Null hypothesis is
used for testing. It is a statement that no difference exists between parameters and statistics being
compared to it.
The alternative hypothesis is the logical opposite of the null hypothesis.
Research hypothesis in case of SPAN Systems. The following hypothesis were tested.
Ho1 Reward will not have effect on the commitment of employees.
Ho2 Training does not have influence on the employees innovation and motivation.
Ho3Promotion does not have effect upon the employee productivity.
Ho4 Giving feedback will improve competitive advantage.

Reward: The use of reward has been an essential factor in any companys ability to meet its goals.
It helps in establishment of organisation, especially, in the public sector, it becomes imperative to
have the goal and objectives clearly stated meaning the employee has to give to them in a concise
manner and adequately reward or correct their performance.
If a company is just developing its appraisal systems without a baseline performance you reward
accordingly there likely to be a problem from the organisation in general.
Appraisals are often developed mostly in public sector to reward or recognise employees for a job
well done.
This kind of motivation for high performers to as a challenge for the low performers.
Training: Appraisals are done in order to identify the kind and level if employees that are low
performers. Training comes in when some of the employees are found your be deficient in the
performance of their activities. This training will then serve as a means to allow such employees to
acquire and obtain more and specific skills, capabilities, knowledge, information, and talents that
will be needful in his/her subsequent task.
However, both managers and employees of high performance should be continually trained as to be
able to provide objective input. Several duties indicated that employees are often satisfied with jobs
only when it results them until the opportunity to apply their skills and abilities, freedom as well as
adequate training and seminars which creates revenues for their enhancement and self-development.
In SPAN systems, employees are given feedback on their level of performance through adequate
training and developmental programmes.
Promotion: It has been a culture in the companies to provides appraisals to the employees. They are
often limited to bonuses and not to promotion. Also, it was also observed that appraisals system in
the SPAN Systems does not always ensure the highest performers of employees are treated fairly
with regard to both the appraisal system and resulting promotion. Im developing an appraisal system
for organisations management needs to think through pay increase and promotions.
Numerous students get like pointed that employees get motivated to work when they get frequent
promotions, training and career development and appreciation and improved work place environment
gives employees great opportunities and this will either directly or indirectly influence their
satisfaction on the job. When high performances are rewarded for employees, it must be supported
with a basis for pay increases and promotions. While performance feedback for development of
improvements purposes may be given usually a written summary of the individuals work
performance must accompany with a pay incense and promotions ( orientation or termination).
It is crucial therefore, that a manager or small business or small business owners regularly document
an employees job performance.
Feedback: An employee performance appraisal serves as basis for management to evaluate and
provides feedback on employees job performance, including steps to evaluate and provide feedback
on employees jobs performance, including steps to improve on their deficiencies as needed.
The study has indicated that the feedback mechanism serves as a means of identifying their strengths
and weaknesses. Some insisted upon to improve the performance of an individual workers, it
becomes important first to identify his areas of improvement and weaknesses through feedback and
assistance which assures the employees commitment, involvement and improvement in improving
his or her performance. For every survival of Organisational business, management needs to
continually inform workers of their worth, values, strength recognised from them for a job well done
and set a record of open minded and fair-minded feedback. This record of appraisal feedback is
appraisal can be provided verbally but in many areas, legal experts counsel employees to maintain
written records in Case order to provide themselves then reduces with greater legal protection. This
360 degrees helps the managers to the opportunities to assess performance of an individual
employees through his interaction with different co- workers, or departments, external customers and
employee himself. As a company increases his staff a formal system using a written appraisal being
tied to salary feedback on a regular basis so that employees increases or bounces. Whether appraisal
is provided verbally or in writings, organisation needs to provided consistent feedback that can
improve employees work performances.
Background of the performance appraisal;
This study is about the effect of leadership styles on employees performance which majority focused
on the employees.
Historical perspective:-
In recent past years, leadership has engaged as a new effective approach for managing the
employees and organisations at large. The employees and organisations at large. The traditional
concept of personnel administration has gradually replaced with the human resource management .
This gives importance to strategic integration of new leadership styles into effective management of
Employees and to improve the employee performance.
The aim of the study is to assess the perspective of performance appraisal practice of ANRS office of
the auditor general and its effect on employees work outcomes in form of work performance,
effective commitment and turnover incentives as well. The correlation analysis results also indicates
employees perception about performance appraisal practice had positive and significant relationship
with work performance and effective organisational commitment, negative and significant
relationship with employees turnover incentives whereas the findings of simple regression analysis
indicates employees turnover intention whereas the findings of simple regression analysis indicates
employees perception of performance appraisal practice had positively and significantly influence
work performance and effective organisational commitment whereas, negatively and significantly
influence employees turnover retention. Therefore it is recommended that organisations should have
to implement performance appraisal practice in a best possible way, there is need to develop good
feedback system, appropriate and adequately facing, discussing appraisal standard of every
employees in the organisation.
The performance of the employees have the effect on the working of the working of the organisation.
The employees performance should be conducted on regular basis to test their ability to perform in
difficult situation. The HRM places more emphasis on the performance appraisal of the employees
rather than just evaluation which was traditionally used in the earlier business world.

2.4) limitations of performance appraisal

1) Halo effect: The performance appraisal may be based on one positive factor of the rates. Several
work related factors may not be considered for evaluation.
2) Horn effect: The performance appraisal may be based one negative factor of the ratee. The ratee
may not evaluate several other job relevant factors.
3) Central tendency: Somerset raters may follow central tendency approach in ratingthe ratees. The
main aspects are that they give average scores to all the raters. Those who perform well are given
average scores and those who do not perform well are also given average scores.
4) Cost factor: Performance appraisal is an expensive activity. At times, experts may be appointed to
conduct performance appraisal
5) Problem of leniency: Some raters are very lenient in performance appraisal. They give High
scores to everyone; irrespective of their performances .
6) Latest behaviour effect: Rating is influenced by the most recent behaviour ignoring the commonly
demonstrated behaviour during the entire appraisal period. If the latest behaviour is good, the ratee
Will get high scores and vice versa.
7) Problem of strictness: Some raters are strict in their appraisal. They tend to give low scores to all
the ratees irrespective of their performance.
8) Spillover effect: Internal this case, the present performance appraisal us greatly influenced by past
performance.
9) Personal bias: The way an appraiser personally feels about a ratee may drastically affect the
appraisers objectively. Also, if the rater has good relations or connections with the ratee, even
though the ratee does not deserve such high scores.
10) Paper work: Some supervisors complain that performances appraisal is pointless paper work.
They complain so, because many-a-times, performance appraisal reports are found only in the files
rather than serving any practical use.
11) problem of appropriate technique: There are a number of evaluation techniques. Some techniques
may be easier and economical to use. Others may be time consuming, inconvenient, and costly.
12) Fear of confrontation: Sometimes, supervisors tend to give above average ratings to below
average performers, so as to avoid confrontations. Also, the performance appraisal may affect
superior-subordinate relations.

2.5) Methods of performance appraisal

There several methods or techniques of performance appraisal. The most common methods can be
broadly divided into two groups as follows:
Traditional techniques
1) Check list: A list prepared containing various work related statements such as :
Quality of work
Speed of work
Attitude towards work, etc.
Against the list, the employees are rated. The raters against yes or no squares to various statements.
2) Confidential reports: This is an old and traditional methods of appraising employees. A
confidentialreport on the subordinates strengths and weaknesses. This is a poor method of
performance appraisal, as it does not provide proper feedback to the employees.
3) Critical incident method: In this method, the rater records important incident and involving
the ratee. If the ratee performs well in such incidents, then he is given high scores and vice
versa. For instance, in a particular incident in which a salesman convinces an argumentative
customer to buy the product, then the salesmans performance may be given higher score.
 4) Ranking methods: There are various ranking methods which are commonly used to evaluate
the performance of the employees. The ranking methods used are:
A) Simple ranking method.
B) Alternation ranking method.
C) Paired comparison method
5) Graphic rating scale: In this method the raters use a graphic scale to appraise certain specific
factors such as quality of work, quantity of work dependability, etc. The is an example of
graphic scale:

Quality of work Quantity of work Dependability

Excellent
Good
Average
Poor

The graphic scale method is simple to understand, easy to conduct and less time consuming.
However, there is lots of paper work and there are chances of rater bias.
6) Narrative essay: The most simplest method is the narrative essay. In this, the rater describes
in detail an employees strengths and weaknesses and potentials, together with suggestions
for improvement.
Modern Techniques
7) Role analysis: Role analysis is process of analysing the role of a manager in relation to roles
of other managers who are affected by performance.
8) Assessment centre: This technique is used for performance appraisal as well as selection and
training. Some firms use this technique of performance appraisal, especially at the time of
promotion managers to higher levels.
9) Management by objectives (MBO): This technique can be used to measure the performance
of subordinates or lower level managers. In MBO, the process involved is as follows:
1) Superior and subordinate jointly define common goals.
2) Jointly frame plans
3) Subordinate implements the plan.
4) Jointly review of plans- where performance appraisal of subordinate is done by the superior.
10) Behaviourally Anchored Rating Scale ( BARS): It is a variation of simple attitude towards
the job is appraised. Employees who have a positive attitude towards the job make a every
effort to upgrade their knowledge and skills to handle their activities.
 11) 360 degree appraisal: This method is used by large professional firms to appraise the
performance of the employees, especially that of managerial personnel. Performance
appraisal is conducted by various parties such as superiors, subordinates, clients, colleagues,
panel of experts,etc.
12)Human resource accounting ( HRA): HRA deals with cost and contribution of human
resources to the organisation.
1) The cost of the employees includes cost of selection, training, compensation, etc.
2) Employee contribution is the money value of employees service to the organisation. Employees
performance can be rated as positive when contribution is more than the cost and vice versa.
2.6) Research design and sampling techniques
Research design aids the researcher in the allocation of limited resources by posing crucial
choices in the methodology.
Research design is the plan and structure of investigation so conceived as to obtain answers to
obtain answers to research questions. The plan is the overall scheme or program of the research
design. It includes outline of what the investigation will allow to write hypothesis and their
operational implications to the final analysis of the data.
Sampling techniques:-
The sampling techniques adopted for the purpose of the study is the convenience sampling.
As the same implies convenience sampling .
As the same implies convenience sampling means selecting particular units of the universe to
constitute a sample.
2.7 ) Scope of Performance Appraisal:-
The scope of any performance appraisal should include the following:-
1) Provides employees with a better understanding of their responsibilities which increases
confidence through recognising strengths while identifying training needs to improve
weaknesses
2) Improves the working relationships and communication between the supervisors and
subordinates.
3) Increase commitment to organisational goals.
4) Develop employees into future supervisors.
5) Increase assistance in personal decisions such as promotion or allocating rewards.
6) Allow time for effective self- selection self- appraisal and personal goals getting.

Impact of technology on performance appraisal:

 1) The technological developments are affecting the performance of employees in the
organisation ..
2) The technology has created positive as well as negative impact on the performance of the
employees in the organisation .
3) The employees which are were traditionally doing the work manually to record the accounting
transaction are now doing it electronically.
4) The electronic data saves time, effort and money of the organisation and also improves the
performance or efficiency of the employees in the organisation.
5) The technology provides information about the product online and also helps to know about the
market conditions quick and fast.
6) The technology has created a huge impact on the performance of the employees and helps to
achieve the organisational objectives.

2.8) data collection relating to performance appraisal of Span Systems

After the fulfilment of above related aspects the next step is to determine the source from
which the data is required to be collected.
The data collection is an issue an interesting aspect of the study achieving data collection
relating to the performance appraisal of Span Systems Research tells us that the in Span
systems the performance appraisal is supported by a feedback monthly. The performance of
each and every employees is evaluated by following the systematic process. They undertake
the performance appraisal reports to the employees and also undertaken to achieve the
organisational efficiency. The Spans systems undertake performance appraisal by following the
systematic and redefining problems, formulating hypothesis, and by provided with suggested
solutions, collecting, organising and evaluating data, making deductions and research
conclusions and at last carefully testing the conclusions to determine whether they fit for
formulating hypothesis.
Descriptive research design: The design for this study is descriptive research design. This
design was chosen as it describes accurately the characteristics of a particular systems as well
as the views helped by the individuals about the suitability of the system as well as the
constraints that might restrict its effectiveness.
Data collection can be done in two ways:
Primary source:- This primary source of data is through questionnaire.
Secondary source: The secondary sources of data collection is based upon various details
retrieved from the journal and magazines.
 The data collection for this study has been collected from secondary sources if . Secondary data
is collected from various sites and books and other related aspects relating to the performance
and appraisal.

Data collection of formation of SPAN Systems

Every Span systems is a Norwegian information technology company that supply services relating to
the company, including operation, outsourcing and online banking. The company is headquartered in
Oslo. It was established through a merger between EDB business partner and Ego group in 2010 and
has 10,000 employees at 135 offices in 16 countries.
Type Limited company
Industry Information Technology
Predecessor- EDB, Business Partner, Ergo group.
Founded Oslo, Norway ( October 2010)
Headquarters Oslo, Norway
Number of location 50 Offices
Areas served world wide
Key people Born Livoth(CEO)
Salim Nathore (Chairman)
Services- IT consulting
Business solution
IT infrastructure
Revenue- Nok 12.9 Billion(2015)
Operating income Nok 811 Million(2015)
Number of employees 10,000
Website Every.com

History
EDP Ergo group ASA was formed in 2010 with the merger of EDB business partner and Ergo group.
Telenor owned most of the shares of the Ergo group. The company subsequently changed its name to
Evry ASA in April 2012.
In August 2014, Evry announced that it was initiating a process to investigates strategic
opportunities. This was motivated by their assessment of the IT sector in the Norway countries. In
March 2015 Apex partner became the majority owner of the company, a new board was appointed
and it decided to apply for de-listing from the stock exchange. On 29 October 2015, the company
was delisted from the Oslo stock exchange.
In August 2015, following the lon of a contracts with positive gain bank DNB, Evry announced it
would lay off 500-550 workers in Norway and Sweden to profits, savings, Nok 400-500 Million (
about US DOLLAR 50-60 millions). In October 2015 it announced to transfer of a function 600
employees to IBM in an outsourcing deal worth UIDAI 1 Billion. In 2016 it announced it would
double the manpower as its Indian subsidiary, then at 600, in Mohali and 1500 Im Bengaluru, over
three years, investing INR 1-1.25 Billion. Evry had total work force of 9400 in 2016. The manpower
of Evry India as of 2015 was said to 2500.

Evry India.
Evry India Pvt. Ltd.
Type Private Company
Industry Computer applications and IT services
Founded Bangalore, India 1993
Headquarters Bangalore, India
Area served World wide
Key people Paynisk Mohan ( CEO and managing director)
Products IT products and service
Parent Evry ASA
Website www.Evry.in
Evry acquired SPAN Systems InfoTech , an Indian IT company which was renamed Evry India to be
coherent with its parent company. Evry India is a software services company and provides IT and
software products development services to customers based in Bangalore and Chandigarh, opting in
banking and financial services, insurance, health care, retail, and logistics industries.
SPAN Systems About the Company
Founded 1993
Type Products and services
Size 51 250 employees.
Stage Raise fundings
About the company:-
SPAN, an Evry Group company has formed deep rooted relationships with global enterprises
including Fortune 1000 companies, software firms ( ISVS), and the start-ups.

As a well- established and fast-growing IT services company, they focus on optimising and aligning
their clients IT initiating with business strategies.
They reduce cost as a strategy in several business plan and assist clients to reach global market plans
and faster.
SPANS Global footprint and group offices location across the US, India and group offices in
Europe. They operate through multiple off shore development centres in Bangalore and Chandigarh.
Quantitative Data: The data is used to find out the performance appraisal of SPAN Systems i150
employees across a single branch from Bangalore through secondary data. The tools used for data
collection is through the Questionnaire. The main reason for selecting the questionnaire method for
the study uses:-
a) Respondents have adequate time to give well thought out answers.
b) The time of the study was also a limiting factors.
c) Five pointer scale were used during the questionnaire.

Statistical tools used

Statistical tools used like Tabulation, graphics, representations, percentage analysis and, chi-square
in the compilationand computation of data.

Chi-square test
The chi- square test is one of the simplest and most widely used non-parametrictest in Statistical
work. It is practically useful in tests involving nominal data. It makes no assumptions about the
population being sampled. If chi-square is Zero which means that the observed and the expected
frequencies completely coincide, while the greater the value of chi-square is the greater would be the
discrepancies between observed and expected frequencies.
The formula for comparing chi-square is
Chi-square = (o-E)2/E
Where o = observed Frequency
E = Expected Frequency
The calculated value of chi- square is compared with the table value of chi-square for given degrees
of freedom of specified level of significance. If the calculated value of chi- square is greater than the
table value the difference between the theory.

2.9) Empirical nature of research of performance appraisal of Span Systems

1) The present empirical study is based on the effectiveness of the performance management systems
in SPAN systems.
2) The study focuses on the factor responsible for effectiveness of the performance management
systems and its different with organisational goals.
3) As part of the study, antecedents and consequences of effective implementation of performance
management systems in the Indian context were also minded.
4) It was found that managers have good academics background with high profiles are effective
implementers of the system.
5) Further, it was found that personality characteristics (consequences such as discipline, exposure
to the system, effective interpersonal relations and team building working are essentially required for
the effective implementation of the system.
Performance management systems of SPAN Systems
1) Echo span puts you in control of your employee performance management and leadership
development programs with a suit of on demand, web-based review tools.
2) SPAN Systems 360 degree appraisal feedback review and performance reviews tools help
clients to develop key employees to support strategic goals.
3) Founded in 2002, Echo SPAN pioneered delivery of the demand of employees performance
management solutions. Today more than 3000 companies entrust their employees data and
talent development processes to Echo SPAN.
4) Instead of buying expensive software customers simply pay-per use or buy an affordable
annual subscription.
5) A Web browser is all that what is needed to our tools.
Painless, Quick implementation

1) Most solutions can be implemented online instantlyrics.

2) Enterprise solutions can be deployed in less than 72 hours.
3) Our tools are 100 percent hosted
4) Theres no software to install or manage and use update monthly so your solution has the
latest features.
Limit less customization

1) Customizer solutions to meet the need and feature of the brand.

2) If you choose, we manage your entire project from start to the finish, or you can step up on
your own using our wizard, typically the same day you sign up at the very low cost.

Services of training
1) All Echo span licence purchase including a year of support.
 2) Support personnel are US-based and knowledgeable in both Echo span Systems as well
as employees performance management best practices.

3) All subscription include complimentary training for your administration.

Scalability
SPAN Systems solutions are scalable and affordable for the companies of any size.
Reliability
Since inception the SPAN Systems have constantly maintained and uptime if 99.99 percent.
Sustainable practices
At Echo span they make conscious effort every day to limit our by also carbon and other waste.
A few of the ways we strive to conserve our planets non renewable energy and natural resources
include:
a) Sunlight offices practice sessions
b) Paperless contracting and invoicing
c) Flexible work- from home policies for low commuter pollution.

Low energy consumption commuters and peripherals.

Aggressive office climate management during hot and cold months.
In-office recycling of paper, plastic and glass waste.

.
 Chapter3

Review of Literature
3.1) performance appraisal Essays
Performance appraisal due to growing focus on the personnel development there is an increasing
concern regarding the use of effective assessment methods. Performance appraisal are being used by
a large number if organisation for assessing their employees performance and its effects on the
organisation as a whole. Similarly, uncertainties make use of assessment methods to assess the
learning of their students. Despite popularity of performance there us an ongoing debate regarding
the effectiveness of the assessment methods and use of performance appraisals. This believe can be
further improvements in the performance levels. The performance helps in improving the conditions
of the organisation in the business world. The performance appraisal helps the organisation to know
the weaknesses and strengths of every employees in the organisation. The performance appraisal
helps to create good impact in case of improving the image in the market.
The performance appraisal helps in testing the ability of the employees in the organisation . It helps
to fulfill all the requirements of the job. The performance of the employees improves in providing
them good incentives and working conditions. The organisations can also reduce test labour turnover
in case of job recruitment and selection.
The organisation can also make its resources in a good manner and save cost and get higher returns .
The returns helps each employees training and development . The employees can also aware of their
duties and responsibilities and perform their job efficiently and effectively.
The employees in the organisation can conduct team work in the organisation can help the
organisation which can help to the organisation to achieve the individual/ group objectives.
The performance appraisal help the organisation to achieve its predetermined objective efficiently
and effectively.
The employees in the organisation can also involve in the organisation can also involve in decision
making which helps the organisation to have interaction with the employees and the employees will
learn to participate in decision making process.
The organisation earlier use to follow traditional system of performance appraisal techniques to
reward the employees in the organisation. This resulted into effecting the performance of the
employees in the organisation. The employees in the organisation can also improve the performance
was not the part of traditional system of management. The efficiency of the employees affected
adversely during that period. The performance improvement was also affected due to traditional or
personnel management. The traditional management did not follow scientific management and
systematic management of recruitment and selection procedures. This resulted into wrong placement
of employees in the organisation. The performance of the employees was getting affect due to
traditional management.
The personnel management of performance appraisal or management declared as the making
procedure of every Organisation. The traditional management affected the productivity of the
organisation in the market. The organisation started to liquidate or winding their business due to
profit or continuous losses. The organisations and employees could not perform well and could not
survive in the market for the longer period.
Hypothesis1 there is a significant relationship between the types of management and performance of
the employees in the organisation
Hypothesis2 the traditional management led to significant impact on the Employees productivity.
Hypothesis3 The employees productivity affected the profitability if the organisation.

3.2) performance management systems:-

Performance management system is a strategic and integrated approach of delivering sustained
process to organisation by improving the performance of the people who work in a team and by
developing the capabilities of teams and individual contributors.
The evolution of the concept of performance management as a new Human Resource management
model rejects a change of RM phases in the organisation away from command and control towards a
facilitation model of leadership. This change has been accompanied by recognition of the importance
to the employee and the institution of relating to the work performance to the strategic or long-term
and over searching mission of the organisation as a whole. Employees goals and objectives are
derived their department which in terms support the mission and goals of the organisation.
A performance management system includes the following components
1) Development job description
2) Selection of appropriate people with an appropriate selection process.
3) Negotiate recruitment and accomplishments based performance standards, outcomes and
measures.
4) Providing effective orientation, education and training.
5) Providing on-ongoing coaching and feedback.
6) Conducting Quarterly performance development discussions.
7) Designating effective compensating and recognition systems that reward people for their
contribution.
8) Providing promotions/career development opportunities for staff.
 Demolition, termination, redeployment, transfer and retrenchment
A second performance appraisal must be directed towards the achievement of every
organisational goal. Performance appraisal in private sector bring uniformity in evaluation
process so treat employees with capabilities could secure the same rating. In the same vein, it
provides information for controlling and carting out important manpower planning sub-
systems like training, demolition, pay increases, termination of employment; redeployment,
retrenchment, promotion, etc. Asserted that this aspect could help in tacking problems
emanating from instant decision or judgement if advance information is available as a result
of performance appraisal outcome. Invariably, the way weakness of the individual in the
organisation could be contained or removed by helping him or her through performance
appraisal to adjust or showed out.
However improving the performance if every employees and employer should be among the
highest priorities of contemporary organisation.
Performance appraisal are conducted at least annually assessment of employees performance
reviews appear to be studied in the modern organisation However it has been acknowledged
that appraisals conducted more frequently(mostly once a year) may have positive
implications for both the organisation and employees.
It is suggested that regular performance feedback provided to employees may be unexpected
and/or surprising feedback to year end discussion. In an recent research study concerning the
timeliness of performance appraisals one of the respondents are suggested that the
performance review should be formally and more frequently, perhaps once a month , and
recorded twice a year.

3..3) SPAN overview

1) The standard portfolio analysis of risks or SPAN is a system for calculating margin
requirements for futures and options for the future.
2) It was developed by the Chicago Mercantile Exchange in 1988.
3) SPAN is a portfolio margining method that was grid simulation.
4) It calculated the likely loss in a set of derivatives position ( also called a portfolio) and set
this value as the initial margin payable by the firm holding the portfolio.
5) Introduction this manner, SPAN for offsets between correlate positions and enhances
margining efficiency.
 6) The Standard portfolio analysis of risk( SPAN) system is sophisticated methodology that
calculates performance bond requirements by analysing the What if of virtually any market
scenario.
7) Continually enhanced and elaborate, the SPAN methodology can be used to evaluate risk
for the Broadest possible range of derivatives and physical instruments.
8. Although, originally, designed for the use with derivatives its extraordinary capabilities
have led to attributes or alternatively use in assessing risk for many different kinds or types of
financial instruments.
9. As the industry standard for portfolio risk management, SPAN is the official performance
bond(margin) mechanism of more than 50 registered exchanges, clearing organisations,
service bureaus and regulatory agencies throughout the world.
10 SPAN overview software is utilised by a wide range of end- users, including future
commission merchants(ECMS), investment banks, Heage funds, research organisations, risk
managers, brokerage firms, and individual investors world wide.
Breaking down SPAN margin
1) Options and future investors are required to have a sufficient amount to cover potential
losses.
2) The SPAN Systems, through its algorithm sets the margin of each position to its calculated
worst possible one-day more.
3) The system after calculating the margin of each position, can shift any excess margin on
existing positions to new positions or existing margin that are short of margin.
4) Initial margin is the percentage of the purchase price of securities that can be purchased on
margin that the investors must pay for with his own cash or marginal securities it is called
the initial margin requirements.
5) According to regulation T of the Federal Reserve Bird, initial margin in currently 50%, but
this level is only a minimum and some brokerage require you to deposit more than 50%.
6) For future contracts, initial margin requirements are set by the exchange.

Breaking down initial margin

1) A margin account require the investor to use the leverage and purchase more securities than
cash balance in their account would allow.
2) A margin account is essentially a loan account in which interest is charged on the outstanding
margin balance.
3) The securities purchased with cash loaned to the investors by the broker and the securities
themselves are used as collateral.
 4) This allows, for potential magnification in gains but also losses.
5) In the extreme extent than the securities purchased on the margins decline to Zero, the
investors would need to deposit the full initial value of the securities in cash to cover the loss.

3.4) Performance Evaluation Systems

1) A performance evaluation system is a systematic way to examine how well an employee in
performing in his or her job.
2) If you notice, the word systematic implies the performance evaluation process should be planned
system that allows feedback to be given in a formal as opposed in formal sense.
3) Performance evaluation can also be called performance appraisal, performance assessment or
employees appraisal.
4) There are four reasons why a systematic performance evaluation system should be implemented.
a) First, the evaluation process should be positive performance and behaviour.
b) Second, it is a way to satisfy employees curiosity as to how well they are performing in their
job.
c) It can be used as a tool to develop employees.
d) Lastly, it can provide a basis for pay raises, promotion and legal disciplinary actions.

Designing a performance appraisal systems

1) There are number of things to consider before designing or raising and existing performance
appraisal systems.
2) Some researchers suggest that the performance appraisal system is perhaps one of the most
important parts of the organisation (Bournemouth,1990) while others suggest that the
performance appraisal systems are ultimately flawless (Derwen 1990), making them
worthless.
3) For this purpose of the chapter, let resume we can create a performance appraisal systems that
will provide value to the organisation and the employees.
4) When designing the process, we should recognise that any process has its limitation but if we
plan it correctly, we can minimise smell of these.
The first step in the process is to determine how often performance appraisal should be given.
Please keep in mind that managers should constantly be giving feedback to employees and
this process is a mire formal way of doing so. If done well, it could take several hours for just
one employees. Defending your organisation structure you may choose one or the other. For
example, if mistake of your managers have five or ten employees to manage (this is called
span of control), it might be worthwhile to give performance evaluation More than once a
year, since the time cost isnt high. If most if your managers have twenty or more employees
it may not be feasible to perform this process mire than once per year. To determine costs of
your performance evaluation refer table Estimating the costs of performance evaluation
asking for feedback from managers and employees is a good way to determine how often
performance evaluations should be should be given

Table estimating the costs of performance Evaluation

Narrow span of control

Average span of control 8
Average time to complete one written review 1hour
Average time to discuss with employees 1 hour
Administrative time to set up meeting with hour
Employee

8 employees 2 hours per employee + hour

Administrative time to set up time to meet with employees=16.5 hours of time for one
manager to complete all performance reviews.

Wide Span of control

Average span of control 25
Average time to complete one written review 1 hour
Average time to discuss with employees 1 hour
Administrative time to set up meetings 1 hour
With employees

25 employees 2 hours per employee + 1 hour

Administrative time to set up times to meet with employees = 51 hours
 Once you have the number of hours it takes, you can multiply that by your manager hourly
pay to get an estimated cost to the organisation.

16 hours $50= 850

51 hours $50= 2550

Should pay increases be tied to performance evaluation this might be second consideration
before development of a performance evaluation process. There is a research that shows
employees have a greater acceptance of performance reviews if the review is limited to
rewards ( Bannister & balk in; 1990)
The third consideration should include goal setting. In other words, what goals does the
organisation hope to achieve with the performance appraisal process
Once the frequency, rewards, and goals have been determined, it is time to begin to find the
process. First we will need to develop the actual forms that will be used to evaluate each job
within the organisation. Every performance evaluation should be directly tried with that
employees job.
Determine who should evaluate the performance of the employee is the next decisions. It
could be their direct manager (most common method), subordinates, customers, or clients,
seldom and/or peers. A 360 degree performance appraisal is the way to appraise performance
by using the several sources to measure the employees effectiveness. Organisations must be
careful when using peer reviewed information. First example in the Matheson vs aloha airline
case, peer evaluation were found to be collaborative against a pilot union strike against a
different airline.
Management of their process can be time-consuming for the HR professional. Thats why
there are many software programs available ton help administer and access 360 reviews
feedback. Halogen 360, for example is used by the Prince cruises and media companies such
as MSBC( Halogen software, 2011).
This software allows the HR professional to set criteria anxiety easily send links to
customers, peer or managers who provide the information. Then the data are gathered and a
report is automatically generated, which an employee can use for quick feedback. Other
similar types of software include carbon 360 degree appraisal.

3.3) Personnel management

Personnel management can be defined as obtaining and using and maintaining a satisfied work force
. It is a significant part of management concerned with the employees at work and with their
relationship within the organisation.
According to Flippo performance appraisal is the planning, organising, compensation, integrations
and maintenance of people for the purpose of contributing to organisational, individual and societal
goals
According to Bech personnel management is that part which is primarily concerned with humans
resources of organisation.

Nature of performance management

Personnel management includes the function of employment, development and compensation. Those
functions are performed primarily by personnel management in an consultation with other
departments .personnel management in an extension to general management. It is concerned with
promoting and stimulating competent workforce to make their fullest contribution to the concern.
Personnel management exist to advice and assist the line manager in personnel matters. Therefore
personnel management or departments is a staff department of an organisation.
Personnel management lays emphasis on the action rather than making lengthy schedules, plans,
Work methods The problem and grievance of the people work effectively by through rationale
personnel policies It is based on Human orientation. It tried to help the workers to develop the
potential fully to the concern. It also motivates the employees through its effective incentives plans
so that employees provide fullest co-operation to the personnel management. In context to human
resources, it manages individual as well as blue-collar workers.
Role of personnel managers:-.
Personnel manager is the held personnel department. He performs both managerial and operative
functions if management. His sell can be summarised as: Personnel manager provides assistance to
top management. The top management the people who decide and frame the primary policies of the
concern. All kinds of policies related to the personnel or the work force can be framed out effectively
by the personnel manager. He advices the line managers as a staff specialist-personnel manage acts
the time managers acts as like at affordable adviser and assist the time managers in deciding with
varies personnel matters. As a counsellor, personnel manager attends problems and grievances of
employees and guides them. He tries to solve in the best of his capacity.

Personnel management acts as a mediator. He is linking between management and workers. He acts
as a spokesman, since he is a direct contact with the employees he is required to act as a
representative of a organisation in committee appointed by government. He represents company in
training programme.

Functions of personnel management:-

Manpower planning
Manpower planning which is also called a human resources planning consists of putting right
number of people right find of people at right pace, right time, along the right things for which they
are suited for which they are suited for the achievement of goals of the organisation. Human
Resource Planning has got an important place in the arena of industrialisation. Human resource
planning has to be a systems approach and is carried out in a set procedure. The procedure is as
follows:-
1) Analysing the current manpower inventory
2) Making future manpower forecasts.
3) Developing employment programme.
4) Design training programme.

Steps in manpower planning:-

Analysing the current manpower inventions:-

Before a manager makes forecast status her to be analysed. For this following things have to be noted
Type organisation: Number of department, number and quantities of such department employees in
this working units.
Once there are registered by a manager, he goes for future forecasts.
Making future manpower forecasts:- once the factors affecting future manpower forecasts are
unknown, planning can be done for the future manpower requirements in the several work assist.

The manpower forecasting exercises commonly employed by the organisation are as follows:-
Export forecasts:- This includes informal decisions formal export surveys and Delphi method.
Trend analysis:- Manpower needs can be projected through projecting past trends using based year as
basis and statistical analysis ( contradictory measure.)

Work load analysis:- It is dependent upon the nature of work load in a department, in a brand or in a
division.
Work force analysis:- whenever production and limit period to be analysed due to allowances have to
be made to analyse for getting manpower requirements.
Other methods:- General mathematical models with the aid of computer are used to forecast
manpower needs live budget click are planning analysis, regression, new venture analysis.
Developing employment programme: once the current inventory in compared with future forecasts
the employment programme can be framed and developed accordingly which gives advice for
recruitment, selection procedures and placement plans.
Design training programme: This will be based upon extent of diversification for expanding plans do
training and development for training programme depends upon the extent on the extent of
improvement in technology and advancement to take place.
Importance of manpower planning
Importance of manpower planning:-
Key to management function: The managerial function i.e planning, organising, directing, and
controlling are based upon the manpower .
Efficient utilisation of resources:- Efficient management of personnel becomes an important function
of in the industrialization world of today .
Setting off large scale enterprises required management of large scale enterprises require
management of large scale enterprises require management of large scale manpower can be
effectively done through staffing function.
Motivation:- Staffing function not only include putting right men on the right job but also comprises
of motivational programme he incentives plans to be framed first further participation and
employment of employees in concern.
Therefore all types of incentives plans become an integral part of Staffing function.
Better human relationship: a concern can stabilisation itself if human relationship develop and are
string .
Manpower planning can be in following manner.
1) Shortages and surpluses can be identified so that quick communication can be done wherever
required.
2) All the recruitment and selection programme are based on the manpower planning.
3) It also helps to reduce its labour costs as excess staff can be identified and there by Staffing
can be avoided.
4) It helps to identify the available talents to a concern and accordingly training programme can
be called out to develop those talents.
5) It helps in growth and diversification of business. Through manpower planning human
resources can be readily available and they can be utilise in best manner.
6) It helps the organisation to realise the importance of manpower management which
ultimately help in the stability of a concern.
Staffing function of management:-
The managerial function if Staffing involves forming the organisation structure through
proper and effective selection appraisal and development of the personnel so you fill the
requirements of the employees/workforce.

According to the Hai mani, Staffing pertain to recruitment, selection , development and
compensation of subordinates.

Nature of Staffing function

Staffing is an important managerial function:-Staffing function is the most important
managerial act along with planning, organising, directing and controlling.

Staffing is a pervasive activity- As Staffing function us carried out by all managers and in all
types of concern where activities and carried out.
Concepts
Performance appraisal has been defined as systematic and objectives way of judging the
relative worth of ability of an employee in performing in task . Performance appraisal helps
to identify those who are performing their assigned tasks well and this email who are their
designed tasks well and those who are not and the reasons for such performance.
Definitions
Performance appraisal has been defined by different scholars in various in various ways
.some of test important definition are as follows:-
Dales beach performance appraisal is systematic evaluation of the individual with respect to
his or her performance in the job and her potential for development.

Randall scholar, performance appraisal is a formal structure system of meaning and

evaluating an employee jobs related to behaviour and outcomes to discover how and why the
employees in presently performing on the job and how the employee can perform the more
effectively in the future so that the employees, organisation, and society all benefit.

Heyelets, it is the process if evaluating the performance and qualifications of the employees
in terms of the requirements of the job for which he is employed; for purposes of promotions
, providing financial reward and other actions which requires differential treatment among the
members of a group and distinguished from action affecting all members equally.
Reviews of performance appraisal:-
A performance appraisal is meant to help employees realise the strengths and shortcomings and
receive a compensation accordingly.
A recent survey of more than 2000 full time employees by staffing of North America found that less
than half of work as say manager take performance reviews seriously and even fewer say they
receive constructive feedback.
Tech Mahindra in its annual performance appraisal process layoff bottom performers every year and
this year too company, however did not specify the number of employees that could be asked to
leave. However, industry source suggest that number would run into hundreds. At the end of
December 2016, the Mahindra had over 1.17 lakhs employees. In an another incident the US based
company had called out a voluntary separation programme for director, associated VPS and services
offering then 6-9 months of salary.
The development comes at a time when Indian IT firms are facing challenges in business
environment and work regime in countries like US, Singapore, Australia and New Zealand.

Performance appraisal at Pepsi cola international. Pepsi cola international (PCI, operations in over
150 countries, has devised a common performance appraisal systems that focuses on motivating
managers to achieve that maintain high standards of performance.
Administrative consistency is achieved through the use of live feedback mechanism, instant
feedback, coaching, accountability bases performance appraisal, development feedback and a human
resources plan. The common system provides guidelines for performance appraisal, get allows for
modifications.
For example, the first step of instant feedback is based on the principle that any idea about any
individuals performance is raised appropriately discussed in a sensitive manner.
The instant feedback is always to improve business performance, not to criticise cultural styles.
Using this system, PCI tries to balance the cultural and administrative imperatives of a successful
managing of a diverse workforce.

60% of the employees say that performances evaluation is the waste of time.
Research:-
The managers are making possible efforts to make the employees motivated that the performance
evaluation is the most important part of the job. The managers are providing then various incentives
to have interest in giving better performance.
Majority of employees find performance reviews in their organisation opaque, cumbersome and ac
waste of time, reveals a time job survey. The performance review puzzle of more than 1200
employees in various kinds of organisation.
Research:-
Managers said that performances appraisal in any organisation is done at the specific period like
annually or half yearly or quarterly or may be regularly. It all depends on the nature or size if the
organisation and sometimes necessity of the managers decides the period of performance appraisal if
the employees.
The 85% of the employees were not allowed about the end to end poor of performance review.
Research:-
Most of the organisation are insisting employees appraisal should be a continuous process and should
not be a continuous process and should not be limited to formal review once a year.
Ninety percent found performance review forms complex and cumbersome.
Research:-
Most of employees received a formal appraisal annually, although mirror frequent appraisal
annually, although more frequently appraisal are often needed for new employee for longer serving
staff who have moved, to post or for those who are below acceptable performance standards.

Outcome if performance appraisal never left 35 percent satisfied, while 25 percent had been fully
satisfied. Only 10 percent said that were always satisfied. Thirty percent were sometimes satisfied.
I
Research:
Above system, U.S. based software company be abolished annual performance appraisal systems of
its employees. Instead company management has introduced regular feedback.
This helps the manager to get satisfaction of performance appraisal from the maximum number of
employees.
The feedback motivates the employees to perform well by taking initiative in the working of the
organisation.
The outcome of appraisal of appraisal will better for their performances appraisal reports.

Mid year appraisal good for motivation:-

Appraisal may not longer exists as one-a- year phenomenon. A growing number of companies are
opting for mid-year- even quarterly.
The main argument in favour of this trend is that it may not because for the company to what as long
as one you to access employees performance.
Whether it is to reward employees for something they did two quarter back on Path for growth, in
case they have strayed, companies have realised the earlier they do so the better.

Company profile
SPAN technology is matured growing IT services company with 14 years of experience. The
company focusing on optimising and designing IT initiative with business strategies.

The company has achieved CMM level and ISO 9001-2000 and expecting to achieve CMM level 5.
Sales offices company for easy access to global markets. The company have multiple development
centre in Bangalore and planned their services to all over India.
The business model deliver value through optional use of offshore and on site resources and through
the pragmatic approach to an engagement rather than cost based model or a purely port driven mode
irrespective of activity with the clients the company have demonstrable methods of showing
enhanced productivity.
IT infrastructure
1) 15000 square feet offshore development faculty.
2) 125k2 dedicated 247 Internet access with secure firewall protection.
3) Intel pendulum 4/windows 2000, sun solais and Intel based red Lissett servers.
4) 40+ work stations, TCP based 100/1000 MBPS Ethernet LAN on MBPS switches.
5) Complete data back up recovery infrastructure with disaster recovery facility.
6) In house training facilities.

Product profile
IT services

SPAN Systems are tailored made to clients needs and built around the following and built needs and
built around the following lay areas relevant to any business enterprise.
A) Application development customised software applications based on the
architecture contract by our business consulting services.
B) Business intelligence Productivity solutions that empowerment decision makers to
access data across the enterprise.
C) Education and training:- Training and upgradation of skills in data modelling uml
modelling data warehouses and businesses strategies corporate.

Contracting:
People, project and systems recovery support. Span systems offers solutions that are strategically all
aligned with corporate business goals.
Span systems undertake mobilisation of personnel under placement at the client identified location.
On request, oral the conclusion of the contract period, the depicted personnel are demolished from
client sites.
IT Expertise
1) Operating systems:-
Windows 9001-2000, Red Hut Linux and sun solarisets.
2) Development tools:-
Visual basic, power builders, Oracle developer.
3) Databases:-
Oracle, so based, SQL server, zDB and mySQL.
4) UML modelling tool :-
Describes and rationale rows.
5) Data modelling tools :-
ERP studio, ERP win and power designer.
6) Group space:-
Lotus/domino, MS exchange.
7) Business intelligence:-
Oracle discoverer, business objects and congas.
8) Data warehouse tools:-
DT studio
9) Web tools :-
Macro media dream weaver/ flash and abode photos hope.
 Chapter 4

Analysis and interpretation

Table 1
Table shows sex of the respondents
Sex no of simple
Respondentspercentages
Male 132 88

Female 18 12
Source: Primary data

Inference:-
From the above table it is inferred that out of 150 respondents 88% of them are male and 12% of
respondents are female.

Figure 1
Figure showing sex of the respondents

Table 2
Table showing age group of the respondents

Age group No of simple

Respondents percentage
19-23 15 10
24-28 42 28
29-33 27 18
34-38 27 18
Above 38 39 26
Source: Primary data

Inference: The above table shows that 28% of the respondents are between the ages 24-28, 26% of
the respondents are above 38, 18% of the respondents are 29-33 and 34-38, and only 16% of the
respondents are between the ages 19-23.

Figure 2
Age group of respondents

Table3

Table showing date of joining of the respondents

Date of joining No of respondents simple percentage
71-80 03 02
81-90 15 10
91-00 30 20
01-07 102 68
Source: Primary data

Inference:- The above table shows that 68% of the respondents are joined during 2001-2007, 20% of
the respondents are joined during 91-2000, 10% of the respondents are joined during 81-90, and 2%
of the respondents are joined during 71-80.

Figures 3
Date of joining

Table 4

Table showing the preferences of the appraisal

Preference of the No of simple
Appraisal respondents percentage
Peers 15 10
Subordinates 21 14
Superiors 114 76

Source: Primary data:-

Inference: The above table shows that 76% prefer superiors appraisal, 14 of respondents prefer
subordinates appraisal and 10% of the respondents prefer peers appraisal.
Figure 4
Preference of appraisal

Table 5
Table showing the basis for performance appraisal
Basis for performance No of simple
Appraisal respondents percentage
Quality 18 12
Target 12 08
Both 120 80
Source: Primary data
Inference: The above table shows that 80% of the respondents prefer both quality and target for their
basis of performance appraisal, 12% of the respondents profit alone and 8% of respondents prefer
target alone.

Figure 5
Performance appraisal

Table 6
Table showing frequency of the appraisal system
Frequency of No of simple
Appraisal respondents percentage
Monthly 09 06
Half yearly 60 40
Annual 75 54
360 degree 06 04
Source: Primary data
Inference: From the above table shows that 50% of the respondents prefer annual appraisal, 40% of
the respondents prefer half yearly appraisal, 6% of the respondents prefer monthly appraisal and 4%
of the respondents prefer 360 degree appraisal.
Figure 6
Frequency of appraisal

Table 7
Table showing performance appraisal
Performance appraisal No of simple
Based on respondents percentage
Personality 06 04
Traits
Behaviour 09 06
Results 15 10
All the above 120 80

Source: Primary data

Inference: From the AOL Bovey table shows that 80% of the respondents prefer personality traits,
behavior and results, 10% of the respondents prefer results alone, 6% of the respondents prefer
behaviour, 4% of the respondents prefer personality trait.

Figure 7
Performance appraisal based on

.
Table 8
Table showing types of appraisal
Types of No of simple
Appraisal respondents percentage
Subjective 18 12
Objective 16 12
Both 114 76
Source: Primary data
Inference:
The above table shows that 76% of respondents prefer both subjective and objective factors, 12% of
respondents prefer objective alone and 12% of the respondents prefer subjective factors alone.
Figure 8
Types of appraisal
Table 9
Table showing gender discrimination
Based on gender any No of simple
Discrimination respondents percentage
Yes 48 32
No 102 68
Source: Primary data
Inference:
The above table shows that 68% of the respondents said there is no gender discrimination and
remaining 32% said there is gender discrimination.

Figure 9
Based on any gender discrimination.
Table 10
Table showing daily contact at the time of appraisal
Daily contact No of simple
At the time of respondents percentage
Appraisal
SA 09 o6
A 72 48
NC 30 20
D 06 04

Source: Primary data

Inference:
The above table shows that 48% of respondents agree that they are having daily contact, 20% of the
respondents are having no comments, 22% of the respondents are disagree with the daily contact, 6%
of the respondents are agree with the contact and 4% of the respondents are strongly disagree with
daily contact.
Figure 10
Daily contact at the time of appraisal
Table 11
Table showing feedback given at the time of appraisal.
Feedback given at the time of appraisal No of respondents simple percentage
SA 21 14
A 8456
NC 30 20
D 12 08
SD 03 02
Source: Primary data
Inference:-
The above table shows that 56% of the respondents are agree with the feedback given at the time of
appraisal, 20% of the respondents given no comment, 8% of the respondents are disagree with the
feedback, 14% of the respondents are strongly agree with the feedback and 2% if the respondents are
strongly disagree with the feedback given at the time of appraisal.
Figure 11
Feedback given at the time of appraisal.
Table 12
Table showing appraisal evaluates strengths and weaknesses
Appraisal No of simple
Evaluates respondents percentage
Strengths and weaknesses
SA 36 24
A 63 42
NC 36 24
D 09 06
SD 06 04

Source: Primary data

Inference:- The above table shows that 42% of the respondents agree with the evaluating their
strengths and weaknesses, 24% of the respondents are strongly agree with their evaluation, 24% of
the respondents given no comments based on the evaluation 6% of the respondents are disagree with
the evaluation and 4% of the respondents are strongly disagree with the evaluation of strengths and
weaknesses
Figure 12
Appraisal showing strengths and weaknesses.
Table 14
Table showing is the organisation provides effective training
Organisation providingNo of simple
Effective training respondents percentage
SA 36 24
A 48 32
NC 54 36
D 09 06
SD 03 02
Source: Primary data
Inference: The above table shows that 36% of the respondents given no comments regarding
effective training, 32% of the respondents are agree with the effective training, 24% if the
respondents are strongly agree with the effective training, 6% of the respondents are disagree with
the effective training and 2% of the respondents are strongly disagree with the effective training.
Figure 14
Providing training
Table 15
Table shows in the appraisal helps in personal growth
Appraisal No of simple
Helps in personal growth respondents percentage
SA 36 24
A 69 46
NC 39 26
D 00 00
Source: Primary data
Inference: The table shows that 46% of the respondents are agree with their personal growth, 26% of
the respondents given no comments, 24% of the respondents are strongly agree with their personal
growth and 4% of the respondents are disagree with their personal growth.
Figure 15
Appraisal helps in growth

Table 16
Table shows appraisal helps in promotion aspects
Appraisal help in No. Of simple
Promotion respondents percentage
SA 45 30
A 81 54
NC 15 10
D 09 06
SD 00 00
Source: Primary data
Inference: The table shows that 54% of the respondents are agree with the promotion aspects, 30%
of the respondents are strongly agree, 10% of the respondents given no comments and 6% of the
respondents are disagree with the promotion aspects.
Figure 16
Appraisal helps in promotion aspects

Table 17
Table shows recommendation for job rotation
Recommendations No of simple
For job rotation respondents percentage
Yes 120 80
No 30 20

Source: Primary data

Inference: The above table shows that 80% of the respondents recommended for their job rotation
and 20% of the respondents are not recommended the job rotation for their development.
Figure 17
Recommendations for job rotation.

Table 18
Table showing recommendation for job enlargement
Recommendations No of simple
For job enlargement respondents percentage
Yes 135 90
No 15 10
Source: Primary data
Inference:- The above table shows that 90% of the respondents recommended job enlargement and
10% of the respondents are not recommended the job enlargement for their development.
Figure 18
Recommendations for jobs enlargement

Table 19
Ideas to recommend for their development
Ideas to recommend No of simple
For their development respondents percentage
Yes 30 20
No 120 80
Source: Primary data
Inference: The above table shows that 20% of the respondents recommended their ideas for the
development and 80% of the respondents are not recommended their ideas for their development.
Figure 19
Ideas to recommend their development
Table 20
Table shows face to face interaction with the superior
Face to face No of simple
Interaction with respondents percentage
Superior
Yes 105 70
No 45 30
Inference:- The above shows that 70% of the respondents are agreeing with the superior and 30% if
the respondents are not agree with face to face interaction with the superiors.
Figure 20
Face to face interaction with superior
Table 21
Table shows the opportunity to improve performance
Opportunity to No of simple
Improve performance respondents percentage
Yes 129 86
No 21 14

Source: Primary data

Inference: The above table shows that 86% of the respondents are agree with their opportunities
given by organisation and 14% of the respondents are not agree with the opportunity given by the
organisation.
Figure 21
Opportunity to improve performance
Table 22
Table showing appraisal changes your attributes/behaviour
Appraisal changes No of simple
Your attributes/ respondents percentage
Behaviour
Yes 105 70
No 45 30

Source: Primary data

Inference: The above table shows that 70% of the respondents are agree with the changes in attitude
and behaviour and the remaining 30% of the respondents are disagree with the changes in attitude/
behaviour during appraisal period.
Figure 22
Appraisal changes your attitude
Table 23
Table shows satisfied with CFR
Satisfied with CFR no of respondents simple percentage
Yes 120 80
No 30 20
Source: Primary data

Inference: The table above shows that 80% of the respondents are satisfied with CFR ratings and
remaining 20% of the respondents are dissatisfied.
Figure 23
Satisfaction with CFR
Table 24
Table shows increase in salary by performance ratings
Performance rating increase No of simple
Salary respondents percentage
Yes 117 78
No 33 22
Source: Primary data
Inference: The above table shows that 78% of the respondents are satisfied with the increase salary
through performance ratings and the remaining 22% of the respondents are dissatisfied.

Figure 24
Performance measuring increases salary
Table 25
shows with present appraisal system
Happy with No of simple
Present appraisal respondents percentage

Yes 114 76
No 36 24
Source: Primary data

Inference: The above table shows that 76% of the respondents are happy with the appraisal system
and 24% are unhappy with the present appraisal system.
Figure 25
Happy with present appraisal

Hypothesis testing
Hypothesis 1 Managerial decision will not have effect in the commitment and loyalty of employees
Variables frequency present% cumulative
Percent
Sex Male 87 58.3 58.3
Female 63 41.7 100.0
Total 150 100.0

Age 19-30 years 34 22.8 22.8

31- 40 years 83 55.2 78.0
41-50 years 31 20.5 98.5
51 years above 02 1.5 100.0

Length of 0 9 years 119 79.6 79.6

Service 10- 19 years 29 18.9 98.5
20 years above 2 1.5 100.0

Table 1 :- Respondents demographic characteristics

Model R R square adjusted R Std. Error
Square of the estimate
1) .400 .180 .150 .577

Table 2 model summary

Model sum of Df mean F sign

Square square

1) Regression 7.903 1 7.903 27.792

Residual 41.809 125 .333
Total 49.512 126

Table 3: Annova
 Model umstandardised Standardised sign
Coefficient coefficient

B Std error Beta

1) (Constraints) 2.404 .442 5.437 .000

Managerial .457 .094 .400 4.537 .000
Decision
Have
. Positive
Effect
On job
Commitment
Table 4: Coefficient
Model R R square adjusted R Std. Error
Square of the estimate
1) .600 .359 .354 .674

Table 5 - Model summary

Model sum of df mean F

sign

1) Regression 31.895 1 31.895 70.155

.000
Residual 56.829 125 .455 .455
Total 88.724 126

Table 6. Annova
 The variation in Annova in Y is explained by the variation in the independent variable. This
percentage is good enough in determining the goodness of fit for the model (Regression
equation). After taking into account the number of predictors variables in the model, adjusted
R square yielded a 57.7% variations which is moderately significant in the analysis.
Predictions:- Constant, managerial decisions have positive effect on the job Commitment.
Dependant variable:- Managerial decision servers as in documents to getting commitment from
employees.
The table shows to explain which of the variables is making a statistically significant unique
contribution to the model looking of significance column in the table. Based on the analysis
above gorgeous which all calculated values are above the critical values, the null hypothesis (
H0 is rejected while the alternative hypothesis H1 is accepted, managerial decision has a
significant on the commitment of employees ( table5)
Hypothesis two
Ho2:- Training does not have influence on employees ensuring good training needs and
provided to subordinates to motivate them to work.
But dependent variable:- Innovation increase in the organisation when the employers motivate
the employees.
The ANNOVA table shows the assessment of statistical significance (sig=.000) in which the E
value is equal to 70.155 and less than or equal to 0.05, therefore we reject the null hypothesis.

The tables seeks to explain which of the variables is making a statistically significant unique
contribution to the model looking at the sig column in the table. Based on the analysis above for
which all calculated values are above for which all the calculated values are above the critical
values the null hypothesis H0 is rejected while the alternative hypothesis H1 is accepted which
states that makes an employee to be initiative.

Hypothesis 3
HO3: promotion does not have any significant effect on labour productivity (table 8)
In the model summary table above R square of .118 indicates that 11.8% of the variation in Y is
explained by the variation in the independent variables. This percentage is good enough in
determining the goodness of the fit for the model ( regression equation ). After taking into account
the number of predictors variables in the model, adjusted Road square yielded at 11.1% variations
which is moderately significant in this analysis ( Table 9). The ANNOVA table shows the
assessment of the statistical significance ( sig 20.000 ), in which the F- value is equal to 16.797, and
less than or equal to 0.05, therefore we reject the null hypothesis.
Table 7
Model umstandardised Standardised
sign
Coefficient coefficient
B Std Beta B
1 constant 1.2225 .321 3.818
.000
Innovation .650 .078 .600 8.376
.000
Motivation increases
Through adequate
Training of employees
In the organisation

Table 8: coefficient a researcher field survey

Module R R square Adjusted R Std.

Error of the
Square
estimate
1 .344(a) .118 .111 .751
Table 8 : Model summary

Model sum of square df mean square F

sign

1 regression 9.459 1 9.459

Residual 70.468 125 .564
Total 79.937 126
Table 9: ANNOVA
Model umstandardised Standardised F
sign

Coefficient coefficient
 B Std. Errors Beta B

1 Constant 2.094 .409 5.118

.000
For employees
To be productive .462 .098 .344 4.098
.00
Employees should
Provide promotion
Opportunities

Table 10: coefficient

Model R R square df sig

1 .193 .037 .030 .947
Table 11. Model summary

Model sum of square df mean F

sign

1 Regression 4345 1 4345 4845

.30
Residual 112.096 125 .897
Total 116.441 126
Table 12 : ANNOVA
Model umstandardised Standardised sign
Coefficient coefficient
B Std.error beta B Std.error
1 Constant 2.936 .340 8639 .000
Getting feedback
From employees .203 .092 .193 2.201 .030
Gives employees
Opportunities to
Perform better
Table 13 : coefficient a researcher field survey
Based on the analysis above for which all calculated values, are above the critical values, the null
hypothesis H0 is therefore, rejected while the alternative hypothesis H1 is accepted, which states
that promotion Opportunities will lead to increase in labour productivity ( Table 11).
Hypothesis 4
HO4:- Giving feedback will not improve competitive advantage.
In the model summary table above. R square of .037 indicates that 37% of variation in Y is
explained by variation in independent variable This percentage is good enough in determining the
goodness of fit for the model ( regression equation ). After taking into account the number of
predictor variables in its model, adjusted R square yielded a 30% variables which is moderately
significant in the analysis ( Table 12).
A) Predictors constant getting feedback from the employees gives employees opportunity
to perform better.
B) Dependent variable: For improved competitive positioning feedback is necessary.
The table seeks to explain which of the variables in making a statistically significant unique to
contribution to model looking at the sig column in the table. The analysis above indicates that all
calculative values were above the critical values, the null hypothesis H0 is therefore rejected, while
the Alternative hypothesis H1 is accepted which states that giving feedback helps in the improves the
performance of employees and above the efficiency and effectiveness of the organisation.
 Chapter 5

Findings
1) 88% of the respondents were male.
2) Majority of the respondents ( 28%) are between the age of 24-28 and the low level ( 10%)
was between the age of 19-23.
3) 68% of the respondents are joined in year of 2001-07 and the low level 2% were joined in the
year of 1971-80.
4) 65% of the respondents prefer supervisors for their appraisal and the low level 10% prefer
peer for their appraisal.
5) 80% of the respondents prefer both the qualities and target for the basis of their performance
appraisal and low level 8% prefer target for their basis for performance appraisal.
6) 50% of the respondents prefer the frequency of appraisal as annual and the low level 4%
prefer degree.
7) 80% of the respondents prefer that performances appraisal should be based on all (
personality trait, behavior and results ) and the low level 4% prefer personality trait.
8) 76% of the respondents prefer both ( subjective and objective ) the appraisal. The low level
12% prefer either subjective alone or objective alone.
9) 68% of the respondents said there is no gender discrimination and 32% of the respondents
said that there is gender discrimination.
10) 48% of the respondents are agree with daily contact at the tune of appraisal and low level
2% of the respondents were strongly disagree.
11) 56% of the respondents are agree with feedback given at the time of appraisal and the low
level 2% were strongly disagree.
12) 42% of the respondents are agree with the evaluation of strengths and weaknesses at the time
of appraisal and the low level 4%- of the respondents were strongly disagree.
13) 56% of the respondents were agreed with evaluation of skill gaps and the low level 8% were
disagree with this.
14) 36% of the respondents were having no comments based on effective training after appraisal
review and the low level 2% of the respondents were strongly disagree.
15) 46% of the respondents are agree with the personal growth of the individual and the low
level 4% were disagree.
16) 54% of the respondents are agree with the promotional aspects through appraisal and the low
level 8% of the respondents were disagree.
17) 80% of the respondents are recommended for job rotation.
 18) 90% of the respondents are recommended for job enlargement.
19) 20% of the respondents recommended some ideas for their development.
20) 70% of the respondents are agreeing with the face to face interaction with the superior.
21) 70% of the respondents are agreeing with the changes in the attitude/behaviour after
appraisal.
22) 86% of the respondents are agreeing with the changes in opportunities to improve their
performance after appraisal.
23) 80% of the respondents are satisfied with CFR ( critical factor ratings).
24) 78% of the respondents are agreeing with increase in their salary through CFR ratings.
25) 76% of the respondents are happy with the present appraisal system.
26) The chi Square analysis show that the comparison between the age of the respondents and
types of appraisal level calculated value of x square.

5.1) Conclusion
The black box phenomenon described in the literature ( Alvesoon, 2009 in Armstrong, 2012; Box all
& Purcell, 2011 ) shrouds a lot of mystery as to what happens in between various HR processes and
outcomes of those processes on the behaviour of employees and organisatonal performance. Linking
an organisational outcome with one or more specific HR processes does not seem feasible due to the
reason that these processes do not take place in isolation.
The organisation under study in any search also does not operate as a sole operator in the society.
The occurrences may not also least to the same result at different points in time, even if these occur
in isolation and if the researchers seals off the organisation from the external influence.
The entire research has focused on this aspect of variability of human behaviour in an organisation in
an organisation based on experience about an important HR process, which seeks to manner
performance.
The findings of both primary and secondary research lead to the conclusion that the performance
appraisal process in respect of managers in SPAN systems does not reasonably compare with the
policy and practice in other private limited companies in India.
It also does not match major private sector companies in India. It also does not match with the
contemporary global trend, which is predominantly placed against the IT services in ratings.
The difference observed in implementation of the DPE guidelines by different private sector
companies in the matter of appraisal and the Internet services and other technologies ratings indicates
that there is scope for a review of the practice in SPAN systems.
SPAN systems as a private sector company of India has Navratna status due to its overall excellent
performance over the years.
The performance of the organisation can be attributed to its rich human capital comprising of highly
qualified and skilled managerial personnel. However, the research has found out a good level of
Organisational commitment, positive workplace attitude and behaviour at present among the
managers of SPAN Systems, which is a matter of a concern.

The findings indicating a positive correlation between the perception of managers about the
performance appraisal process and their attributes indicates that positive efforts of managers and the
subordinates to the performance appraisal and level of performance of organisation among the
various other private limited companies. The performance appraisal improve when there is the
continuous efforts to improve the performance and efficient and effectiveness of employees in the
organisation.

5.2) Suggestions by the employees and recommendations of Performance Appraisal

The organisation should conduct the following programme for their development which are
. 3 modelling software
. Seminar is some of the functional areas like
Technical aspects
Business overview
Latest technology
Suggestions by the researcher
1) The company should conduct effective training after the performance appraisal for their
employees to improve the performance appraisal for their employees to improve their
performance and also CFR ratings should be discussed with the employees at the time of
performance appraisal reviews.
2) The company should give combination of both ( subjective and objective ) appraisal and it
could be half yearly.
3) The appraiser should keep on the contact with the employees and motivate them for their
growth and also to achieve the organisational goals.
4) When an employee is newly joined in an organisation he/she should be given proper
information about performance appraisal systems and its impact towards his/ her job.
5) Once an employee is evaluated, he/she has to be informed about their strengths and
weaknesses.
6) An employee should be aware of the above, he/she will improve their strengths and
weaknesses and also it helps to increase the productivity of the organisation.
Appendix

1) Name ( optional )

2) Sex : a) Male b) Female

3) Your age group

a) 19-23
b) 24-28
c) 29-33
d) 34-38
e) Above 38

4) Designation :

5) Date of joining :

6) Whose appraisal do you prefer

a) Peers
b) Subordinates
c) Superiors

7) Performance appraisal should be based on your

a) Quality
b) Target
C) both

8) The following of appraisal should be

a) Monthly
 b) Half yearly
c) Annually
d) 360 degree

9) Appraiser appraised your performance based on

a) Personality traits
b) Behaviour
c) Results
d) All of the above
10) Which type of performance appraisal do you prefer ?
a) Subjective performance appraisal
b) Objective performance appraisal
c) Combination of both
11) Based on gender discrimination performance appraisal varies ?
Yes/No

The following suggestions are presented on 5 point scale:-

1 Strongly agree
2 Agree
3 No Comment
4 Disagree
5 Strongly disagree

12) During appraisal, the Appraiser had daily contact with you ?

1 2 3 4 5

13) During appraisal process, you are allowed to give feedback

1 2 3 4 5
14) Do you think the performance appraisal evaluates your strengths and weaknesses?

1 2 3 4 5

15) The appraisal exactly evaluated the skill gaps within you
 1 2 3 4 5
16) The organisation is providing effective training programme for skill enhancement after your
appraisal period

1 2 3 4 5

17) Performance appraisal helps in your personal growth

1 2 3 4 5

18) The appraisal helps in future promotion projects

1 2 3 4 5

19) Do you recommend job rotation for your development

1 2 3 4 5

20) Do you recommend job enlargement for your development

Yes/No

21) Do you have any ideas to recommend your development Yes/ No

If yes, please specify

22) At the time of appraisal documentation review, did you have to face to face interaction with
your Appraiser. Yes/ No
23) Were opportunities given to you improve your performance ? Yes/No

24) Does the performance appraisal reviews actually change your attitudes/behaviour
Yes/No

25) Are you satisfied with the critical factor ratings is there any increase in the salary. Yes/No

27) Are you satisfied with the critical Factor ratings ? Yes/No

28) Are you happy with the present appraisal system?

Yes/ No

28) Do you have any comments on existing performance appraisal in your enterprise?
Specify your suggestions.

Bibliography:
WWW. Evry.com
WWW. Google Web light.com
WWW.Scribd.com
Table of contents

Introduction to HRM

CHAPTER1
INTRODUCTION TO Performance appraisal

CHAPTER2
RESEARCH METHODOLOGY AND HYPOTHESIS OF PERFORMANCE APPRAISAL OF
SPAN Systems

CHAPTER3

REVIEW OF LITERATURE OF PERFORMANCE APPRAISAL AND IMPORTANCE OF

MANPOWER PLANNING AND PERSONNEL MANAGEMENT

CHAPTER4
ANALYSIS AND INTERPRETATION OF PERFORMANCE APPRAISAL OF SPAN SYSTEMS
AND HYPOTHESIS TESTING

CHAPTER5
FINDINGS, CONCLUSION AND SUGGESTIONS IN PERFORMANCE APPRAISAL OF SPAN
SYSTEMS
LIIST OF TABLES 51 79

LIST OF GRAPHS 51 75
APPENDIX 88 91
Model Structure of Performance appraisal
Introduction to HRM Evolution of HRM, Concept and meaning of HRM, HRM policies,
Importance of Recruitment, online selection process, career advancement

Chapter No 1
Introduction of performance appraisal
Introduction to performance appraisal
Importance of performance appraisal
Performance appraisal process
Principles of performance appraisal
The basic Motivation force
Job analysis components
Chapter No.2
Research Methodology of performance appraisal
Performance appraisal and related variables
Objectives of performance appraisal
Methods of performance appraisal
Scope of performance appraisal
Data collection of SPAN Systems
Tools of the performance appraisal
Limitations of performance appraisal
Empirical study of performance appraisal of SPAN Systems

Chapter No 3
Review of Literature of performance
Performance appraisal essay
Overview of performance appraisal
SPAN Breakdown Margin
Importance of manpower planning
Importance of personnel management
Review of performance of SPAN Systems
Chapter No 4
Analysis and interpretation of Performance appraisal and hypothesis testing
Table and graphs of performance appraisal of SPAN Systems
Table of Hypothesis testing of SPAN Systems
Chapter No 5
Findings, conclusions and suggestions or recommendation

Appendix
Bibliography
 Certificate
This is to certify that Mr. Karun Utwani has worked and duly completed his project work first the
degree of Master in Commerce under the Faculty of Commerce in the subject of HRM and his
project is entitled Introduction to HRM and performance appraisal and analysis and interpretation
of SPAN Systems under my supervision. I further certify that work has been done by the learner
under my guidance and that no part of it has been submitted for any Degree of Diploma of any
University.
It his own work and facts reported by his findings.

Name and signature of guiding

Teacher
 Declaration by learner

I the undersigned Mr. Karun Utwani here by, declare that the work embodied in this project work
titled Introduction to HRM and performance appraisal and analysis of SPAN Systems, forms my
own contribution to the research work carried out under the guidance of Soni Madam is Ian result of
my own research work and has not been previously submitted to any other University for any other
Degree to this or any other University.
Wherever the information I got and the project has been clearly mentioned in the bibliography.
I, hereby by further declare that all information of thus document has been obtained and presented in
accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Name and Signature of Guiding Teacher

 Acknowledgement
To list who all helped me is difficult because the data is collected from the Internet and other sources
without meeting the people.
I would like to inform that it is difficult to because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following has being idealistic channels and fresh dimensions in the
completion of the project of performance appraisal.
I would like to thank my principal Ms. Parvathi Venkatesh for providing me chance to do this
project.
I take this opportunity to thank our coordinator Mr. Rane Sir for his moral support and guidance.
I would like to express my sincere gratitude towards my project guide Ms Soni Mam . whose
guidance and care made the project successful.
I would like to thank my college library, for having provided various reference books and magazines
related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my project.