PERFORMANCE APPRAISAL SYSTEM

IN
M/S 5 CORE PVT LTD.
PROJECT REPORT

(A REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN SIKKIM MANIPAL UNIVERSITY OF DISTANCE LEARNING)

SUBMITTED BY:

NEHA VERMA
ENROLMENT NO: 520951457. MBA: HUMAN RESOURCE MANAGEMENT

VAG MANAGEMENT SERVICES, D 42, SOUTH EXTENSION PART - I NEW DELHI - 110 049 CENTRE CODE 2005

Performance Appraisal System

SIKKIM MANIPAL UNIVERSITY NEW DELHI SIKKIM MANIPAL SCHOOL OF DISTANCE LEARNING SOUTH EXTN. PART - I, NEW DELHI-110049 YEAR OF SUBMISSION: 2011

TABLE OF CONTENT
Serial Number 1. 2. 2. 3. 4. 5. 6. 7. 8. Topics Page Number 06 12 26 28 36 49 52 58 60

Introduction Theoretical Perspective Objective and Scope Methodology Data Collection & Analysis Findings Recommendations Conclusion Appendix

Performance Appraisal System

9.

Bibliography

61 TO 66

CERTIFICATE-I

This is to certify that the Project Work entitled Performance Appraisal System in M/s 5 Core Pvt Ltd., is a record of bona fide work carried by Miss. NEHA VERMA under the supervision of Mrs. Inderpreet Kaur towards partial fulfillment of the Management Programme course (MBA) of the Sikkim Manipal School of Distance Learning, New Delhi 110049.

Place: New Delhi Date:

NEHA VERMA

Countersigned

Performance Appraisal System

Place: Date:

Mrs. Inderpreet Kaur H.R.Manager (Project Guide)

CERTIFICATE-II

Certified that the Project Report entitled Performance Appraisal System in M/s 5 Core Pvt Ltd., is an Original one and has not been submitted earlier to Sikkim Manipal School of Distance Learning (SMSoL), New Delhi.

Place: New Delhi Date:

NEHA VERMA

Performance Appraisal System

ACKNOWLEDGEMENT
In pursuing and completion of my MBA and other commitments, I under look the task of completing my Project on Performance Appraisal System of employee of M/s 5 Core Pvt Ltd. To this and I would to thank and convey my gratitude to the Top Management of M/s 5 Core Pvt Ltd. Who allowed me to conduct my Project and gave me their whole-hearted support. I also gratitude the entire employee from every department of M/s 5 Core Pvt. Ltd. Some of whom were frank and forthright and a few

Performance Appraisal System

who were slightly apprehensive but nevertheless gave me their full cooperation. To all those I owe debt gratitude. I am fortunate in having sought and secured valuable guidance, continuous encouragement and strong support at every stage of my family members who always encouraged me and have been a source of inspiration and help in continuing effort. Last but not the least my special thanks go all those who have given all the secretarial support despite all the commitments.

NEHA VERMA

Performance Appraisal System

CHAPTER 1

INTRODUCTION

Performance Appraisal System

INTRODUCTION
Today HRM is an evolving branch of Management. It looks after the HR planning, Job Design, Job analysis, Training and development compensation system, motivation, safety, Industry Relatives etc. Since organization exist to achieve goals, the degree of success that individual employees have in reaching their individuals goals is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goals, therefore, becomes a critical part of HRM. This lead us to the topic of performance appraisal. Among these performance Appraisal are the measure of the effectiveness of hiring the employees Appraisal are like Balance- sheets- a snapshots of past performance, but they need to be given the shape of a profit and loss statement a moving picture. AIM There are basically three purposes to which performance appraisal can be put.

First, it can be used as a basis for reward allocations. A decision as to whom gets salary increases, promotions, and other rewards are determined by their performance evaluation. Second, these appraisals can be used for identifying areas where development efforts are needed. Management needs to spot those individuals who have specific skill or knowledge deficiencies. The performance appraisal is a major tool for identifying these deficiencies. Finally the performance appraisal can be used as a criterion against which selection devices and development programs are validated. It is one thing to say, for example, that our selection process is successful in differentiating satisfactory performers from unsatisfactory performers.

Performance Appraisal System

M/s 5 CORE Pvt. Ltd. was incorporated in 1988. The company was established with a mission to provide innovative and creative solution to hitherto unaddressed infrastructure and power relative problems faced by the telecom operators in the country. The idea was to provide solutions that are cost effective, environment friendly, reliable and delivered a quick Return on Investment (ROI). Based on the commitment to R&D innovation, M/s. 5 CORE Pvt. Ltd. converted its vision and mission into tangible business reality by launching a spate of unique and original products that clearly addressed the pain points of the telecom operators. Their success in this endeavor is born out the fact that some of the largest Telecom companies in the world like Nokia and Airtel are users of their passive infrastructures solutions. M/s 5 CORE Pvt. Ltd. provides comprehensive passive infrastructure solutions to wireless telecom players both in India as well as overseas. It has three main policies. These are: Zero defect products Total customer focus Implementation of Kaizen M/s 5 CORE Pvt. Ltd. believes its principal differentiator is its ability to provide end-to-end solutions as compared to partial solutions provided by most other companies. It launched the Green Shelters, which is a complete package to fit various environment and temperature parameters at telecom sites, avoiding the running of back up systems like diesel generators. About a decade ago it had achieved an annual turnover of over Rs. Approx. 650 Crores. It has manpower strength of almost 500 employees. However, over the past few years the performance in terms of providing Zero defects products, total customer focus and implementation of kaizen services went below expected level, attrition level got high and it is believed that its happened because employee unhappiness in lack of Good Performance Appraisal system in the M/s 5 CORE Pvt. Ltd. which resulted declaiming in the turnover of M/s 5 CORE Pvt. Ltd. Though there have been many reasons which together have contributed to the decline in

Performance Appraisal System

performance of M/s 5 CORE Pvt. Ltd., lack of inappropriate Performance appraisal systems for employee appears to be one of the key reasons. Their turnover of approx 50 crores in the year 2003 has now dropped to just 45 crores in 2009.Their manpower turn over too has increased over the last 4 year. WHY IS THE TOPIC CHOSEN I have been an employee of the M/s 5 CORE Pvt. Ltd. as a Stenographer in Customer Support Deptt. since 2006 and during my MBA Study I got an opportunity to conduct project work. Because of decline in employee performance and increased employee attrition which resulted in decreasing turnover of company. I am deeply concern with the well being of organization and would therefore, like to scientifically analyze the reasons and suggest remedial measures to the management. WHAT CONTRIBUTION WOULD THE PROJECT MAKE AND WHOM Looking to current management scenario in M/s 5 CORE Pvt. Ltd. who are already ceased of problem. The outcome of my survey and analysis would provide a very useful input to the management of M/s 5 CORE Pvt. Ltd. They have given me the opportunity, welcomed my endeavor and are looking forward to collecting all available data in this respect for examining the problem in totality OBJECTIVE AND SCOPE Objective The objective of my project is to evaluate the Performance Apprisal System of the employees in M/s 5 CORE Pvt. Ltd. and suggest remedial measures. Scope The topic chosen Performance appraisal was aimed for the betterment of the organization in terms of quality as well as quantity. The scope of the study under mentioned points depicts the same. 1. To increase the productivity by increasing the level of performance. 2. The program would help the organization in meeting it future personal need. 3. The programme will help the employee in their personal group by improving their knowledge as well as skill. METHODOLOGY

10

Performance Appraisal System

Primary Data For obtaining the Primary data for my project, I propose to use two research instructions i.e., Questionnaire and Structured Interview: a. Questionnaire i. ii. Sample Size :100 Employees Sample Composition (Company employee from every department and level like staff, senior staff, supervisor /workers )

Secondary data were collected through: Internet Company report and old studies done Complain of the employee who left the organization. Brochures etc.

LAYOUT OF THE PORJECT PROJECT REPORT

1. The project report has been presented in nine chapter as per following details:

a. CHAPTER 1 : INTORUDCTION Introduction the subject of the project, identification of the problem and my reasons of choosing it.

b. CHAPTER 2 : THEORITICAL PERSPECTIVE Provide the theoretical perspective and various aspect of Performance Appraisal System

c. CHAPTER 3 : OBJECTIVE AND SCOPE Give the objective of the project and lays down its scope.

11

Performance Appraisal System

d. CHAPTER 4: METHODOLOGY Provide the methodology for conduct of the study, the research tools used, sampling details and the manner of Collecting primary and Secondary data.

e. CHAPTER 5: DATA COLLECTION & ANALYSIS

Record the empirical data obtained from the responses to the Questionnaire and the structured interviews. Analysis the empirical data and other inputs to the project research to bring out logical deductions.

f. CHAPTER 6 : FINDINGS Records the following arrived at due to analysis in Chapter 5.

g. CHAPTER 7 : RECOMMENDATIONS Based on the findings obtained, this chapter recommends specific actions for improvement Performance Appraisal System and overall operational efficiency of M/s 5 CORE Pvt. Ltd. for consideration of their top management.

h. CHAPTER 8 : CONCLUSION This concludes the project report and takes a stock of achievements with reference to the objectives of the project.

12

Performance Appraisal System

13

Performance Appraisal System

CHAPTER 2
THEORETICAL PERSPECTIVE

14

Performance Appraisal System

THEORETICAL PERSPECTIVE
Objectives of Performance Appraisal Performance Appraisal process show that organizational undertake performance appraisal to meet certain objectives which are in the form of salary increase, promotion, identifying training and development needs and putting pressure on the employees for better performance. The objectives are explained in the following points: SALARY INCREASE: - Performance appraisal plays a major role in making decision about salary increase. The increment in the salary depends on how the employee performs the job, and there is a continuous evaluation of his performance formally or informally. In small organizations as there is direct contract between the superiors and the subordinate, performance appraisal can be a informal process, but in large organizations where direct contract hardly exists the performance appraisal process is formal. PROMOTION: - Performance appraisal discloses how an employee is working in his present job and what are his strong and weak points. In the light of these, it can be decided whether he can be promoted to the next higher position and what additional training will be necessary for him. Similarly, performance appraisal can be used for transfer, demotion, and discharge of an employee. TRAINING AND DEVELOPMENT: - Performance appraisal tries to identify the perfection of an employee on his present job. This information can be used for devising Training & Development programmes appropriate for overcoming weakness of the employee. PRESSURE ON EMPLOYEES: - Performance appraisal puts some sort of pressure on employees for the better performance. If the employees are conscious that they are being appraised in respect of certain factors and their future largely depends on such appraisal, they tend to have positive and acceptable behaviour in this respect. Thus appraisal can work automatically as a control device. SATISFACTION THROUGH FEEDBACK: - Performance appraisal provides feedback to employees about their performance. A person works better when he knows how he is working. The knowledge of how his efforts are contributing to the attainment of organizational objectives provide him satisfaction, that his work is meaningful. Through Feedback he comes to known his shortcomings and then he tries to overcome them and contribute more to the achievement of goals set by the organizations. The history of performance appraisal is quite brief

15

Performance Appraisal System

Its roots in the early 20th century can be traced to Taylors pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates form the time of the second World War- not more than 60 years ago. Yet is a broader sense, the practice of appraisal is very ancient art. In the scale of things historical, it might well lay claim to being the worlds second oldest profession!. There is, say Dulewicz (1989), a basic human tendency to make judgement about those one is working with, as well as about oneself. Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgement made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employees was justified. The process was firmly linked to material outcomes. If an employees performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes, but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began form that time. Modern Appraisal Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills developments. In many organizations- but not all- appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same

16

Performance Appraisal System

token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organization need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal the assignment and justification of rewards and penalties- is a very uncertain and contentious matter.

FLOWCHART OF PROCESS OF PERFORMANCE APPRAISAL SETTING PERFORMANCE STANDARDS TAKING CORRECTIVE ACTIONS DISCUSSING RESULTS COMMUNICATING STANDARDS MEASURING PERFORMANCE

Comparing With Standard

17

Performance Appraisal System

PROCESS OF PERFORMANCE
1

ESTABLISHING PERFORMANCE STANDARDS: - The first step in the process of performance appraisal is the establishment of certain standards, which will serve as the basis of the evaluation. These standards should be clear and in writing. It should be discussed with the supervisors to ensure that all the relevant factors have been included. If work performance cannot be measured then the personal characteristics, which contributed to employees performance must be determined. These characteristics include work quality, honesty & reliability, cooperation & teamwork, job knowledge, initiative, leadership, attendance, sense of responsibility, health and physical conditions etc. The standards should be mentioned in the appraisal form & the appraisal form should be carefully designed and printed. In addition who is to do appraisal and how frequently appraisal is to be done should also be decided. COMMUNICATING THE STANDARDS: - The performance standards specified are communicated and explained to the employees so that they come to know what is expected of them. The standard should be conveyed to the evaluators also. The reactions of the employees to the standard should be obtained and if necessary the standard should be revised in the light of the feedback received form the employees and the evaluators. MEASURING PERFORMANCE: - One the performance standards are specified and accepted the next stage is the measurement of the actual performance. This requires choosing the right technique of management, identifying the internal and external factors influencing performance and collecting information on results achieved. Personal observations, written reports and face-to-face contacts are the means of collecting data on performance. COMPARING THE ACTUAL WITH THE RESULTS: - Actual performance is compared with the predetermined performance standards. Such comparisons reveal the deviations, which may be positive or negative. Positive deviations occur when the actual performance exceeds the standards if actual performance is less than the standards and if actual performance is less than the standards then it is negative deviation. DISCUSSING THE APPRAISAL: - The results of the appraisal are communicated to and discussed with the employees. Along with the deviations the reasons behind them are also expressed and discussed. Such discussion will enable the employees to know their weakness and strengths and thus the employees will be motivated to improve himself.

18

Performance Appraisal System

TAKING CORRECTIVE ACTIONS: - Through mutual discussions with employees, the steps required to improve performance are identified and initiated. Training, counseling etc. are examples of corrective actions that help to improve performance.

Essential requirements for effective appraisal

1

Mutual Trust: - An atmosphere of mutual trust and confidence should be created for frank discussion of appraisal and to obtain faith of employees in the appraisal system. Clear Objectives: - The objectives and uses of performance appraisal should be made clear and specific. The appraisal system should be fair so that it is beneficial to both the individual employee and the organization. Standardization: - Well-defined performance factors and criteria should be developed. These factors as well as appraisal form, procedures and techniques should be standardized. It will help to ensure uniformity and comparison of ratings. Training: - Evaluators should be provided training in philosophy and techniques appraisal. They should be provided with the knowledge and skills in documenting appraisals, conducting post appraisal etc.. Job Relatedness: - The evaluators should focus attention on job behaviour and performance of employees. In order ti obtain and review job performance related information a checklist should be prepared. Multiple criteria should be used for appraisal and appraisal should be done periodically rather than once a year. Documentation: - Documentation will encourage evaluators to make conscious efforts minimizing personal biases. Feedback & Participation: - The ratings should be communicated between the ratees and the raters. The ratees or the employees should actively participate in the ongoing process of evaluation. The superiors should play role of counsellor. Individual differences: - Organizations differ in terms of size, nature, needs and environment. Therefore the appraisal should be made for the particular organization keeping in view of all the factors. The individual differences in the nature of the employees should be given high importance, as no single person is similar in all the ways. Post Appraisal Interview: - After appraisal an interview with the employees should be arranged. It is necessary to supply feedback to know the difficulties under which the employees work and to identify their training needs.

19

Performance Appraisal System

10

Review and Appeal: - A mechanism for review of ratings should be provided. The review may be made by a committee consisting of line executives and personnel experts to see whether the raters are usually strict or lenient. Provision must be made for an appeal in case the employees is not satisfied with the ratings.

Performance CRITERIA for executives Performance criteria for top level managers 1 Return on capital employed 2 Labour productivity indices 3 Contribution to community development 4 Degree of clarity about corporate goals and policies among middle class executives. 5 Degree of growth and expansion of enterprise. PERFORMANCE CRITERIA FOR MIDDLE LEVEL MANAGERS 1 Departmental performance 2 Total cost per unit in a given period 3 Rational use of overhead facilities 4 Coordination among supervisors PERFORMANCE CRITERIA FOR FRONTLINE SUPERVISORS 1 Quality and quality of output in a given period 2 Labour cost pr unit of output in a given period 3 Material cost per unit in a given period 4 Rate of absenteeism and turnover of employees 5 Number of accidents in a given period REQUIREMENT OF THE PERFORMANCE MANAGEMENT SYSTEM. Reliability : - The foremost requirement of a sound system is reliability. In this contact it refers to consistency of judgement. For any given employee, appraisals made by raters working independently of one another should agree closely. But raters with different perspective (e.g. supervisors, peers, subordinates) may see the same individuals job performance very differently. To provide reliable data, each rater must have an adequate opportunity to observe what the employee has done and the condition under which he or she has done it. By making appraisal system relevant, sensitive and reliable we assume the resulting judgement are valid as well. Acceptability: - In practice, acceptability is the most important requirement of all, for its is true that human resources program must have the support of those who will use them. Unfortunately, many organizations do not put much effort into garnering the front end

20

Performance Appraisal System

support and participation of those who will use the appraisal system. Ultimately it is managements responsibility to define as clearly as possible the type and level of job behaviour desired of employees. It is important to enlist the active support and cooperation of subordinates by making explicit what aspect of job performance they will be evaluated on. Practicality: - This implies that appraisal instruments are easy for managers and employees to understand and to use. For years, personnel specialists have searched for the Perfect appraisal method as if it were some kind of miraculous cure for many pitfalls that plague organizations. Such a method does not exist. In tomorrows world of work far more emphasis needs to be placed on process issues. Factors such as timing and frequency are no less important. In sum performance appraisal is a dialogue involving people and data. Both technical and human issues are involved. Neither can be overemphasized at the expense of the other. WHO SHOULD EVALUATE PERFORMANCE ? The most fundamental requirement for any rater is that he or she has an adequate opportunity to observe the rates job performance over a reasonable period of time. This suggest several possible raters. The immediate supervisor: - Generally appraisal is done by this person. He is probably the most familiar with the individuals performance and in most job has had the best opportunity to observe actual job performance. Further more, the immediate supervisor is probably best able to relate the individuals performing to department and organizations objectives. Peers : - In some jobs such as outside sales, law enforcement and teaching, the immediate supervisor may observe a subordinates actual job performance rarely (and indirectly thru written reports). Here judgement of peers play important role. However, there is a danger of potential bias. Subordinates: - Appraisal by subordinates can be useful input to the immediate development. Subordinates know first hand the extent to which the supervisor actually delegates, how well he communicates, the type of leadership he has and the extent to which he or she plans and organizes. Self appraisal: - On one hand it improves the rates motivation and moral, on the other it tends to be more lenient, less variable and biased. The evidence on the accuracy of self assessment is fairly complex.

21

Performance Appraisal System

In industry it is seen that feed back/ input is taken from various sources peers, subordinates, superiors etc. some companies have gone step ahead in taking feedback form the customers and integrating it into the performance management process. APPROACHES TO PERFORMANCE MANAGEMENT The traditional approach:- The one dimensional model. Define what results have to be achieved Performance contact Define a set of key objectives against the The Job Accountabilities i.e output accountabilities Review against performance the key

objectives In this model job expectations are defined in terms of what results have to be achieved. This model doesnt have a long term focus and cant be used for employees development and career path planning.

22

Performance Appraisal System

The mixed model Define what results The Job have to be achieved Performance contract Define a set of key

objectives Define a set Define results to achieved Review against performance key objectives how have be Accountabilities of behavioral objectives against key competence

and key competence

23

Performance Appraisal System

The 3 dimensional model Define what results have to be achieved Performance contract

The Job

Key Objectives + Define how results have to be achieved Customer Feedback Review Performance against key objectives and key A satisfactory performance implies doing a job effectively and efficiently, with a minimum degree of employee-created disruptions. Employees are performing well when they are productive. Yet productivity itself implies both concern for effectiveness and efficiency. Effectiveness refers to goal accomplishment. Efficiency evaluates the ratio of inputs consumed to outputs achieved. The greater the output of a given input, the more efficient the employees. Similarly, if output is a given, the lower input consumed to get the output results in greater efficiency. There are basically three purposes to which performance appraisal can be put . First, it can be used as a basis for reward allocations. Decisions as to who gets salary increases, promotions, and other rewards are determined by their perform evaluation. Second, these appraisals can be use for identifying areas where development efforts are needed. Management needs to spot those individuals who have specific skill or knowledge deficiencies. The performance appraisal is a major tool for identifying these deficiencies. Finally, the performance appraisal can be used as a criterion against which selection devices and development programs are validated. BARRIERS IN PERFORMANCE APPRAISAL SYSTEM There are certain barriers, which work against the effective appraisal system. Identification of these barriers is essential, so that suitable measure may be adopted to reduce their impact to a possible minimum level. These barriers can be grouped in three categories, they are Customer Expectations Key competencies

24

Performance Appraisal System

FAULTY ASSUMPTIONS PSYCHOLOGICAL BLOCKS TECHNICAL PITFALL

FAULTY ASSUMPTIONS : - Because of the faulty assumptions of the parties concerned i.e the superior & the subordinate, the appraisal does not work properly and objectively. These assumptions are of the following types: Managers sometimes assume that personal opinions are beter than formal appraisal and they find little use of systematic procedure and review procedures. Managers take a particular appraisal system and assume it as perfect and then they dont want to change it for any reason and want to continue it for ever. PSYCHOLOGICAL BLOCK : - The utility of performance appraisal depends on the psychological characteristics of mangers no matter whatever method is used. There are certain psychological blocks, which work against the effectiveness of an appraisal system. These blocks are feeling of insecurity, to take appraisal as an extra burden, disliking of subordinate, feeling to treat their subordinates failure as their deficiency and so on. Thus due to these psychological blocks, mangers do not tend to become impartial and thereby defeating the basic purpose of appraisal. TECHNICAL PITFALLS : - The design of performance appraisal forms has received the detailed attention from psychologists, but the problem of finding adequate criteria still exists. The main technical difficulties in appraisal fall in two categories; the criterion problem & distortions that reduce the validity of results. i. CRITERION PROBLEM: - A criterion is the standard of performance the manger desires of his subordinates and against which he compares their actual performance. This is the weakest point in the appraisal procedure because criterions are hard to define in measurable or even in objective terms. Ambiguity, vagueness and generality of criteria are difficult hurdles for any process to overcome. ii DISTORTIONS: - Distortions occur in the form of biases and error in making the evaluation. An appraisal system has folling possible distortions 1 Halo Effect : - This distortion exists when the rater is influenced by ratees one or two outstanding good or bad performance and he evaluates the entire performance accordingly. It is an effect, which is formed by the image of the rate in the raters mind either of his good or bad performance in the past and the rater rates them accordingly. 2 Central Tendency : - This error occurs when the rater marks all or almost all his personnel as average. This may arise form the raters lack of knowledge of individuals he is rating or from haste, indifference or carelessness.

25

Performance Appraisal System

Constant Errors : - There are easy raters and tough raters in all phases of life. Some raters habitually rate everyone high, while some others tend to rate low. In such a situation the result of two raters are hardly comparable.

OVERCOMING BARRIERS OF PERFORMANCE APPRAISAL ONGOING FEEDBACK :- To make appraisal system effective it should be backed by effective feedback system which is often a missing link in appraisal system. Employees often feel scared if the post appraisal feedback is not provided. It should not be taken as a faultfinding system but as a system for improving performance. TRAINED APPRAISERS :- The appraisers should be well trained so that they may be able to rate the ratees in a more accurate and developed method rather than employing the old traditional and less accurate methods. They should also be trained to avoid errors such as halo-errors, constant rating and so on. POST APPRAISAL INTERVIEW :- After the system of appraisal a post appraisal interview should be conducted to let the employees or the ratees know about their evaluation and they can know their shortcomings and can take measurers to improve them. REWARDS FOR ACCURATE APPRAISERS :- Some rewards should be given to the appraisers who have done appraisals accurately. When the rewards will be given they would turn positive towards the appraisal system. MULTIPLE RATERS :- Instead of only one rater or appraiser completing the appraisals, multiple raters should be involved in the appraisal system. Due to the presence of a group of raters ratings can be done more effectively. In the case of only one rater it would be difficult to avoid distortions whereas in the presence of a group they can be avoided to a greater extent.

26

Performance Appraisal System

CHAPTER 3 OBJECTIVE AND SCOPE

27

Performance Appraisal System

OBJECTIVE AND SCOPE

The project aims at studying the system of performance appraisal and its effectiveness in an organization. Performance appraisal is the most significant and indispensable tool for the management as it provide useful information for decision making in area of promotion and compensation reviews. The broad objectives of the study includes:

To know the present system of performance appraisal To know the extent of effectiveness of the appraisal system To identify and know the area for improvement To suggest certain measurers for further improvement in the current system. To know the attitude of employees towards the performance Appraisal system. To know the effectiveness of performance appraisal system being adopted by M/s 5 CORE Pvt. Ltd. To Know the different methods of performance appraisal being practiced by M/s 5 CORE Pvt. Ltd.

28

Performance Appraisal System

CHAPTER 4 METHODOLOGY

29

Performance Appraisal System

RESEARCH METHODOLOGY Meaning of research :- A research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data; making deductions and reaching conclusions; at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. Research Design:- A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Step in research design: The study is about the effectiveness of the performance appraisal system conducted at M/s 5 CORE Pvt. Ltd. 2. The study is made to know the pulse of the employees insight about appraisal.
1.

The study is conducted at M/s 5 CORE Pvt. Ltd.. The required data are : Secondary data Personal views of the employees Questionnaire 1. The data can be found from various department in the company. 2. The study will take at least one months to cover. 3. The sample design would be 2-3 members form each department concerned. Techniques of data collection ; 1. Questionnaire 2. Personal interviews 3. The data can be analysed statistically by forming percentage weightage, average, graphs. The report will consist of : 1. Logical analysis of the subject matter 2. Preparation of the final outline 3. Preparation of rough draft 4. Rewriting and polishing 5. Preparation of the final bibliography 6. Writing the final draft Sample Design :- A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in

30

Performance Appraisal System

selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i.e the size of the sample. Sample size:- The total of 100 managers and supervisors at M/s 5 CORE Pvt. Ltd. 2-3 members from different department were selected. Different Department: Finance Marketing and distribution Personnel Security Material \ Purchase Manufacturing Maintenance R & D IT Center

31

Performance Appraisal System

DATA COLLECTION METHOD: Questionnaire :- A questionnaire of a number of questions printed or typed in a definite order on a form or a set of forms. A general form of a questionnaire is concerned, it consist of either structured or unstructured questionnaire. Structured questionnaire are those questionnaire in which there is definite, concrete and pre-determine questions. The form of the question may be either closed (i.e of the yes or no type ) or open (i.e inviting free responses) It may also have fixed alternative questions in which responses of the informants are limited to the stated alternatives (ie. Multiple choice question). Response to Questionnaire In sample size of 100 out of 96 questionnaire were given to employees falling in the category of supervisors and above. Out of which 48 could be collected back duly completed. The researcher individually contacted the employees to get response on the questionnaire. Data entry and analysis It has been an uphill task to enter the enormous data received through the questionnaire which consisted nearly 27 questions. Response to the descriptive question though very few but was valuable for the purpose of study. Hence these were further structured in time with the system adopted for compilation and data analysis. Limitations Many employees gave guarded answers to some crucial questions. Some of them did not fill the questionnaire due to lack of time Response could not be collected form the total sample selected. Some of the questionnaire could not be completed due to reasons other than time factor. The confidentiality of the system created some problem in getting information. 1)Personal Interview: - Personal interviews requires the interviewer asking questions generally in a face to face contact to the other person or persons. Certain guidelines for interview : 1. Interviewer must plan in advance and should know the problem under consideration. 2. Interviewer approach must be friendly and informal. 3. Effort should be made to establish proper rapport with the interviewee.

32

Performance Appraisal System

4. Free-flowing interview and the questions must be well phrased in order to have full cooperation of the interviewee. 2)Secondary Data : - The data which is published beforehand. Such as company profile, Hand book for managers. Internet :- Through the internet, related information about company and performance appraisal was sort out Magazines and Newspapers : - Such as Business Today and Hindustan Times for the detailed findings of the topic. 3)Data Analysis Use of statistical methods such as tabulation, average, Graphs. Designing of Performance Appraisal in the Organization: 1. The personnel department may attempt to obtain the maximum agreement of the line management in respect of needs and objectives of the programme. 2. The personnel of department has to examine the plans of the other organizations as well as the relevant literature applicable in the field to formulate the most suitable plan for the appraisal programme. Attempt should be made of obtain the cooperation of the supervisors in devising the appraisal form and to discuss with them different factors to be incorporated, weights and points to be given to each factor and descriptions and instruction to be indicated in the form. 3. The personnel manager should tend to explain the purpose and nature of the programme to all superior and subordinates to be involved and affected by it. Care should be taken to take into confidence trade union representatives of the company. Attempt should be made to provide intensive training to all the supervisors with a view to obtain unbiased and uniform appraisal of the subordinates. 4. Care should be taken to acquire line and staff coordination and mutual checking of appraisal to obtain intra department and inter departmental consistency and uniformity. 5. There should be arrangement for periodic discussion for appraisal by the superior with each of the subordinates where attempts can be made to stress good points, indicate difficulties and encourage improve performance. As soon as the appraisal has been duly discussed attempt may be made to recommend for salary increases and promotion.

33

Performance Appraisal System

PERFORMANCE APPRAISAL SYSTEM IN M/s 5 CORE Pvt. Ltd.

In M/s 5 CORE Pvt. Ltd. they have the system of performance appraisal of their employees. The main objective behind this performance appraisal system is to evaluate the performance, promote their employees and to arrange for the various training programmes if they require for enhancing their skills in their respective areas and in contribution enhancement. Employees are evaluated by how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of their job. This approach is frequently referred to as management by objectives. Management by objectives is a process that converts organizational objectives into individual objectives. It can be thought of as consisting of four steps: goal setting, action planning, self-control, and periodic reviews. In goal setting, the organization's overall objectives are used as guidelines from which departmental and individual objectives are set. In action planning, the means are determined for achieving the ends established in goal setting. That is, realistic plans are developed to attain the objectives. Self-control refers to the systematic monitoring and measuring of performance. Finally, with periodic progress reviews, corrective action is initiated when behavior deviates from the standards established in the goal-setting phase. M/s 5 CORE Pvt. Ltd. uses very constructive performance appraisal process while evaluating its employees. Its evaluation is based on quantitative wise and objective wise. Company set goals to its employee by properly reporting with its employees and then evaluating them upto what extent it has been achieved and if there is failure in reaching the target what are the causes or reasons behind it. Every evaluator has his or her own value system, which acts as a standard against which appraisals are made. Relative to the true or actual performance an individual exhibits, some evaluators mark high and others low. The former s referred to as positive leniency error, and the latter as negative leniency error. When evaluators are positively lenient in their appraisal, an individual's performance becomes over-stated; that is, rated higher tan it actually should. Similarly, a negative leniency error understates performance, giving the individual a lower appraisal. As such there is no scope of error as far as the M/s 5 CORE Pvt. Ltd. company is concerned, but sometimes over estimation of target brings about a description in the evaluating criteria. Thus, though chances are less, positive leniency errors have been stated to be committed. Outcome of Performance Appraisal

34

Performance Appraisal System

As far as M/s 5 CORE Pvt. Ltd. Company is concerned, there are four outcomes are possible: 1. Outstanding - If the performance evaluated by the management turns out to be outstanding. If the employee performs in such a way as to collect 3 consecutive outstanding performance into his/her credit, he/she gets promoted. 2. Excellent - If the performance evaluated by the management turns out to be excellent. If the employee performs in such a way as to collect 3 consecutive excellent performance into his/her credit, he/she gets promoted. 3. Good - If the performance evaluated by the management turns out to be good. The management sends the employee to the training programme to improve his/her skill to perform better. 4. Below average - If the performance evaluated by the management turns out to be below average. And, if the employee collects 3 below average to his/her credit, then he/she is dismissed. Duration of Appraisal System The time constraints enables the employee to show or project his/her capabilities in term of performance as per the duration allowed. In M/s 5 CORE Pvt. Ltd., the performance appraisal system is carried out annually.

Feedback The company provides the annual feedback to its employees and thus, in term brings out the highlights of the self-assessment programme. This enables the better communication between the management and employees ad thus, helps in promoting the business future. Response There are mixed responses from the feedback by the employees. It has helped some of the employees in motivating themselves while those who felt bad were thoroughly communicated and all the confusion and failure part were discussed with employees.

35

Performance Appraisal System

CHAPTER 5
DATA COLLECTION & ANALYSIS

36

Performance Appraisal System

DATA COLLECTION, ANALYSIS AND INTERPRETATIONS OF DATA

After collecting the data on PERFORMANCE APPRAISAL SYSTEM data was analyzed and interpreted. The various topics covered for analysis and interpretation of data are : Promotions A promotion may be defined as an upward advancement of an employee in an organisation to another job, which commands better pay/wages, better status / prestige and higher opportunities / challenges and responsibility, a better working environment, hours of work and facilities etc. Promoters have a salutary effect on the satisfaction of the promoted persons need for esteem, belonging and security. They also afford an opportunity for greater self-actualizing action through more varied and challenging assignments. The promotion policies differ from an organisation to another. The guidelines for departmental promotion in are same for male and female employees. The period of experience required for filling a higher post departmentally varied from 3-5 years. 5 Years experience for promotion to managerial staff and 3 years experience for promotion to Junior Management staff is needed. The other area of promotion apart from seniority are merit and fitness. Though these guidelines are not in a written format the supervisor and manager get it at the time of appraisal from the personal department. As per the guidelines from the personnel department employees are to be promoted accordingly. However there is confusion among the employee as these guidelines are not being explained time to time, many are not aware of the existing promotion policy in the organisation. Respondents were asked whether the promotion is well defined in the organisation. The responses are given below : N=96 Response Yes No Cant Say Number 16 52 28 Percentage 16.66 54.16 29.16

37

Performance Appraisal System

60 50 40 30 20 10 0 Yes No

52

28 16

Can't Say

From the above table, it can be seen that 30% agree that promotion is well defined in the organization. However 54% were not able to say it as there is lack of information about the promotion policy. Every employee need to be communicated about the existing promotion policy. The responses were as given below : Response Merit Not Recognized Does not defined career plan Not integrated with business Heterogeneity within policy for different position Number 20 26 0 56 N=96 Percentage 20.83 16.66 0 58.83

Majority suggested for no change in the policy. It seems they are satisfied with the current policy. Aligning Goal Respondent were asked about the present system, does it help in aligning individual goal with those of the organisation. The responses were as given below : N=96

38

Performance Appraisal System

Response Yes No Cant Say No response

Number 44 12 36 4

Percentage 45.83 12.5 37.5 4.16

Here the response from the supervisor were 45.83% for the factor that it help in aligning their goal with those of organisation.

45 40 35 30 25 20 15 10 5 0

44 36

12 4

Yes

No

Can't Say

No Response

Career Progress Career progress is something, which is continuous, with the input from organisation in term of training, feedback and counselling. In todays changing scenario this has to be followed in every organisation so that an individual making progress in the career adding value to himself and the organisation. Respondent were asked about the current system helping in their career progress.

39

Performance Appraisal System

Career advancement is the most motivating factor when employee aspire for the advancement of his career and for better opportunities to use his/her talents. From the organisations point of view, it is necessary to develop in manager. Some expectations of opportunities for the future in order to keep their motivation high. Career planning means helping the employee plan his career in terms of his capabilities with the context or organisational needs. Individual, after becoming aware of some of his/her capabilities and career and development opportunities chooses to develop himself/herself in a direction that improves his/her chances of being able to handle new responsibilities. It is also the responsibility of the employer to help him/her to identity the career opportunity, make choices and develop his/her career and provide opportunities for career planning and succession planning. Question asked was as follows : Are the issues like career planning and succession planning a part of companys policy. The responses to the above were as given below :Response Yes No Cant Say Number 16 44 36 Percentage 16.66 45.83 37.5

Here only 46% of the respondent gave response that it does not while 38% gave response that there is no career development plan at all.

44
45 40 35 30 25 20 15 10 5 0 Yes No Can't Say
40

36

16

Performance Appraisal System

FEEDBACK Providing feedback play a constructive role. It helps the employee know his/her weakness and strength. Feedback provides for the area of improvement. Respondent were asked about the frequency of feedback based on their performance. The responses were as given below : Response Rarely On a few occasion Sometimes Often Almost Always Number 24 40 24 8 Nil Percentage 25 41.66 25 8.34 Nil

41 percent responded that feedback is provided though on a few occasion. The frequency has to increase both from the individual and organisation point of view to keep the individual motivated for work in line with the organisational expectations.

Remedial Measure 40 35 30 25 20 15 10 5 0 Yes Rarely Few Sometimes Often

40

24 16

24

8 0
Always

41

Performance Appraisal System

Based on the performance the remedial measures are taken to do away with weakness if any and build on the strength and add to the existing capability. Response on the remedial measures were as given below : Response Number Percentage Job Rotation 44 45.83 Sent to training 40 41.66 programme Counselled 12 12.5 Any other Nil Nil None Nil Nil

Here the response were both for job rotation and training programme. During the course it was felt that more training input is to be provided to the employee to overcome the weakness and improve upon the existing capability of the employee.

50 40 30 20 10 0

44

40

12 0
Job Rotation Counselled None

Training Programmes Any other

Training

42

Performance Appraisal System

Training refers to the teaching/learning activities carried on for the primary purpose of helping members of an organisation to acquire and apply the knowledge, skills abilities and attitude needed by that organisation. It is an act of increasing for knowledge and skill of an employee for doing a particular job. Respondent were asked for whether the present system help in identifying training needs. The response were given as below :

Response To large extent To some extent Not at all

Number 24 52 20

Percentage 25 54.16 20.83

60 50 40 30 20 10 0 To large extent

52

24

20

To Some Extent

Not at All

43

Performance Appraisal System

To system does help in identifying training needs but only to some extent. During the course, suggestion for separate section for identifying training needs came from the supervisory and above level employee. PROMOTION POLICY AND PERFORMANCE APPRAISAL SYSTEM Respondent were asked whether the promotion policy is linked with the performance appraisal system. The responses were as given below : Response Number Percentage Yes No Cant Say 54 28 14 56.25 29.15 14.58

Majority response were that promotion policy is linked with the performance appraisal system.

60 50 40 30 20 10 0

54

28 14

Yes Counselling :

No

Can't Say

44

Performance Appraisal System

Respondent were asked whether the organization provide counseling. The responses were as given below : The response were as given below : Response Number Yes No Cant Say 32 48 16 Percentage 33.33 50 16.66

Majority response were that organization does not provide counseling. This brings the need of counseling.

50 45 40 35 30 25 20 15 10 5 0 Yes No

48

32

16

Can't Say

45

Performance Appraisal System

Overall Assessment of performance appraisal Respondent were asked to rate the performance appraisal. The response were as given below : Response Outstanding Very Good Good Satisfactory Poor Number Nil 8 18 48 22 Percentage Nil 7.68 17.28 50 21.22

50% of the respondent rated the system of performance appraisal to be satisfactory. Nobody rated it to be poor.

Poor 3%

Outstanding 0%

Very Good 11%

Good 24%

Satisfactory 62%

46

Performance Appraisal System

CHAPTER 6 FINDINGS

47

Performance Appraisal System

SUMMARY AND FINDINGS

The analysis and interpretation of data on study of performance appraisal System and its effectiveness in an organisation led to the following findings : The promotion rule though defined need to be communicated to every employee before appraisal process is done and also justify the promotion as a result of the appraisal. That the promotion policy followed differs at different position and category. A uniformity has to be there in the implementation of promotion policy at all levels. The process of performance appraisal followed in M/s 5 CORE Pvt. Ltd.. at the supervisory and above level is to say not good but of satisfactory level. The employee do not rate it very good. The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. Also when performance goes down employee has to be given feedback and motivated to do better. The organisation at present doesnt lay career planning and career succession plans. In M/s 5 CORE Pvt. Ltd.feedback is being provided to the employee though on a few occasion. Performance appraisal in M/s 5 CORE Pvt. Ltd.. is done on an annual basis. More emphasis on training and job rotation as remedial measures. The mechanism of counselling pre-performance and post performance is not in practice at the organisation in strict term. During the course of study suggestions came from the employee side for the need of counselling. 80% of the sample feel MR is considered as an important aspect of the organisation. Around 90% of the sample are happy with the induction process of the comp. 60% of the employees are satisfied with their job placements. 95% of the employees have clarity of their duties and responsibilities When ages factor is taken, it is observed that a majority of respondents above the age of 45 years are partially satisfied on. 70% of the employees believe M/s 5 CORE Pvt. Ltd. has a clear cut career plan. Most of employee belonging to the age group 25-30 years are not satisfied with the way in which their career in taking place. Senior guide their juniors and prepare them for their future responsibility, but to some extent.

48

Performance Appraisal System

40% of the samples feel their appraisal result were not communicated to them The organisation help the employees in improving the performance. Most of the employees agrees that free communication exists between the employees in the organisation. The organisation culture in M/s 5 CORE Pvt. Ltd. is congenial. The employees of M/s 5 CORE Pvt. Ltd. enjoy cordial relation with their colleagues, senior as well as juniors. That the employees are highly satisfied with the timings followed at M/s 5 CORE Pvt. Ltd. Some employees are happy with the welfare facilities and some are not happy with the welfare facility provided to them. Most of employees believe that M/s 5 CORE Pvt. Ltd. is employees grievance handling is satsifactory. Very few sample feel that M/s 5 CORE Pvt. Ltd. does encourage employees participation in management. Some of the samples feel the welfare measures undertaken by M/s 5 CORE Pvt. Ltd. have a considerable motivational effect on them. Most of the samples are satisfied with the appraisal system followed by M/s 5 CORE Pvt. Ltd.

49

Performance Appraisal System

CHAPTER 7 RECOMMENDATIONS

50

Performance Appraisal System

RECOMMENDATIONS
There are some recommendations : Training the Appraise : It is proposed that appraiser be trained for clear understanding of the system and its objective and also counselled to be honest, fair, just, unbiased in appraising the appraisee. Factors/traits of evaluation : It is proposed that appraisee evaluated on above factors/traits be given suitable remark or justification for being given different quantitative grade. Greater clarity has to be has to there in terms of job responsibility. This is possible when the appraisal is done on the basis of the description. In the organization, performance appraisal is done on an annual basis which should be done Quarterly to make it more effective. Consistency is demanded in the promotional policy. It should not change every year. Monetary difference between two grades should not be large, it should be motivating in nature. Performance Appraisal system should be made more transparent and rationale. Performance feedback : The performance feedback sessions should be improved which would results in increasing employee motivation to improve performance. The following could be incorporated. Pin point the problem behaviour and make sure the employee is aware of it. Make sure the employee understands the consequences of the problem behaviour. Get employees commitment to change and make sure he careers about the change. Assistant should be provided to improve poor performance. Make a realistic plan appropriate to the behaviour and set a time frame for improvement. To make sure to review performance time to time. The other change which has to be incorporated at the supervisor and the level above are : These should be listing down of task undertaken during the last one year and the result achieved. In some areas of performance there should be self appraisal and more and more counselling so that employee improve upon week area and understand what is expected of him/her at the organization level. Based on the above an open appraisal system is suggested. In an open appraisal the employee would come together to set the targets, to understand the mutual expectations and support to be provided by the appraiser to the employee for achieving mutually accepted goals / targets. Through this process of setting targets the interpersonal relationship between the appraiser and the employee would improve.

51

Performance Appraisal System

The open appraisal system reduces the whims and fancies of the appraiser. It promotes result orientation as it is based on performance rather than on personality based appraisal. Developing Performance Objectives: Marketing 1) Sales quantity 2) Extra Short fall in contribution 3) Revenue realisation in org (average) number of days. 4) Hit rate 5) Territory / Channel development Service : 1) Customer Complaint 2) Satisfaction Ratio 3) Response Time Production : 1) Quantity 2) Rejection Quantity 3) Material Utilisation 4) Delivery Schedules HR/IR : 1) Response time for services 2) Labour Cost 3) Absenteeism 4) Statutory Complexes Finance 1) Accounts closing Schedules 2) Budget Formulation 3) Timely MIS 4) Funds Management 5) Tax Saving Planning 6) Audits Checks R&D 1) Number of Ideas Generated 2) Value Engineering 3) Prototype Development 4) Patents Applied 5) Documentation Quality : 1) Quality cost including manpower 2) New process development for better quality Legal :

52

Performance Appraisal System

1) Legal Payouts : 2) Process Improvement Security : 1) Response time 2) Theft / Pilferage control 3) Intelligence source developed 4) Gate movement control 5) Night Round Frequency General 1) Cost reduction percentage 2) Succession schedule 3) Savings 4) Innovations

53

Performance Appraisal System

CHAPTER 9 CONCLUSION

54

Performance Appraisal System

CONCLUSION

The employees are fairly satisfied with the HR practices followed at M/s 5 CORE Pvt. Ltd. Some employees especially the non administration employees are not happy with the welfare measures provided. Over all the employees seem to be satisfied wit the job. However, it was observed that there was a fair amount of satisfaction. The employees satisfied the Performance System applied by organisation. The experience of conducting a study in M/s 5 CORE Pvt. Ltd.had been a very good. After this expletory research tournover of M/s 5 CORE Pvt. Ltd. will be better . M/s 5 CORE Pvt. Ltd. needs to fallow above set guideline in terms of Performance Appraisal system. So that employee will be more motivated.

55

Performance Appraisal System

BIBLIOGRAPHY

Flippo Edwin B., Personnel management, Edition sixth, Tata Mc Graw Hills, 1984, p.g. 225-230. Gupta, C.B., Human Resources Management, Edition Fifth (Reprint), Sultan Chand and Sons, New Delhi 2001, P.G. 5.3-5.10 Rao, P.Subba, Essentials of Human Resource Management and Industrial Relations, Edition Second, Himalaya Publishing House, New Delhi 2001, p.g. 206-210

WEB SITES SURFED www.google.com www.indiatimes.com www.msn.com

56

Performance Appraisal System

APPENDICES

QUESTIONNAIRE TO STUDY PERFORMANCE APPRAISAL SYSTEM Performance Appraisal Name of the Employee Designation Department : : : _________________________ _________________________ _________________________

Please tick the right answer Q.1. Is the promotional policy well defined in your organization ? a. Q.2. Yes b. No C. cant say

Do you know the objectives of the performance appraisal system. If yes kindly specify.

Q.3.

How often the performance appraisal form is filled or performance Appraisal is done. a. d. Fortnightly. Annually b. e. Monthly not fixed c. Six-monthly

Q.4.

On What basis is the performance appraisal done. a. b. Merit cut seniority Seniority cum merit.

57

Performance Appraisal System

c. d. e. Q.5.

Merit only Seniority only. Any other, Pl. Specify.

Who appraises you ? a. b. c. d. e. Appraisal Committee. Your immediate supervisor Self appraisal 360 degree appraisal any other, please specify

Q.6.

What methods are being used for performance appraisal a. b. c. d. e. forced choice distribution method. essay method ranking method critical incident method any other, kindly specify Yes /No.

Q.7. Q.8

Does appraisal leads to Job Satisfaction?

is the procedure involved in the appraisal system clear to You ?

58

Performance Appraisal System

A)

Yes

B)

No

C)

Cant say

Q.9.

Is the promotional policy linked with the performance appraisal system a. Yes b. No. c. cant say

Q.10. are the issues like career planning and succession planning a part of companys policy a. Yes b. No. c. cant say

Q.11. Does the system help you in aligning your goals with those of the organization. a. Yes b. No. c. Cant say

Q.12. Does the appraisal system offers an opportunity to discovery your strength and weaknesses a. Yes b. No c. Cant say

Q.13. Will your subordinate yet benefit from the review you give them during the Performance Appraisal? a. Yes b. No c. Cant say

Q.14. What role does top management play in the performance appraisal. Kindly comment.

59

Performance Appraisal System

Q.15. Are you a part of the appraisal committee a. Yes b. No

Q.16. Who are want to be your Reviewing officer ? a. b. c. d. e. Immediate superior Subordinate Co-worker Peers Outside organization

Q.17. Do the employees get the feedback of performance appraisal a. c. yes, every time. only when required d. b. rarely. often, but not always.

Q.18. Does appraisal program leads to positive attitude ? Y/N Q.19. Does performance appraisal improves relationship between Boss and

Subordinate Y/ N Q.20. Does performance appraisal improve job knowledge skills ?

60

Performance Appraisal System

Y /N Q.21. Does appraisal / creates atmosphere of growth and communication ? Y /N Q.22. a. d. Does the organization provide counseling after the appraisal. Always Never b. e. Often Cant Say c. Rarely

Q.23. Who does the counseling a. c. trained professionals cant say b. untrained counselors

Q.24. What kind of remedial measures are taken. a. c. job rotation counseled b. d. sent to training programmes any other, kindly specify..

Q.25. How do you rate the overall assessment of performance appraisal. a. c. d. Outstanding Good Poor b) d) Very good Satisfactory

61

Performance Appraisal System

Q.26. For how long have you been working in this organisation. Q.27. Suggestion towards improving the performance appraisal system in your organisation.

62