MBA (Human Resources)

A PROJECT REPORT ON

PERFORMANCE APPRAISAL EFFECTIVENESS ANALYSIS AT

CHAMPION VOYAGER DESIGNERS PVT LTD

SUBMITTED TO THE UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF MASTERS IN BUSINESS ADMINISTRATION

BY

JEAN THOMAS MBA BANSILALRASMNATHAGARWALCH ARITABLETRUSTS(BRACT)VISHWAK ARMA INSTITUTE OF MANAGEMENT, PUNE(2005- 2006) II

Jean Thomas

Performance Appraisal Effectiveness

MBA (Human Resources)

ACKNOWLEDGEMENTS Preparing a project of this nature is an arduous task and I was fortunate enough t o get support from a large num ber of people to whom I shall always remain grateful. I would like to express my gratitude to Champion Voyager Designers Pvt Ltd for allowing me to undertake this project.

I would like to take this opportunity to thank Raj Utpal for providing m e with an opportunity to work for Champion Voyager Designers Pvt Ltd.

I am also desirous of m entioning my profound indebtedness to Dr Vandana Gote, Faculty m em ber, Vishwakarm a Institute of Managem ent , for the valuable advice, guidance, precious time and support she offered.

I would be failing in my duty if I do not acknowledge my gratitude to Dr S. Joshi, Director, Vishwakarm a Institute of Managem ent, who m otivated m e a lot in carrying out this project.

Last but not the least, I would also like to thank all the respondents for giving m e their precious tim e, relevant inform ation and advice without which I would not be able to complete this project.

COMPANY PROFILE
Champion Voyager Designers Pvt Ltd
Champion Voyager Designers Pvt Ltd is the leading pioneer in the large-scale outsourcing of document creation services, with more than 80 years of graphics history. It is also the world s largest and most experienced provider of artwork and embroidery digitizing.

They cater to more than 2,000 clients worldwide with output-ready digital files for all types of printing, computer-generated communications, stitched apparel and product imprinting and work 24 hours / 7 days a week / 365 days a year.

Retail and quick printers, commercial printers, apparel and promotional products suppliers/distributors, advertising agencies and corporations rely on Champion Voyager Designers Pvt Ltd for customized digital graphics solutions that help them generate higher profits, increase productivity and enhance competitive differentiation, without the ongoing costs of equipment, labor, or technology.

Production Facility Headquartered in Elgin, Illinois, Champion Voyager Designers Pvt Ltd maintains a large Production Center in Pune, India, staffed by 350 highly skilled employees and operating 24/7/365.

Quality Quality is the top priority at this facility. That s why they apply Six Sigma processes and detailed quality control procedures for every client and every project.

Training Because they understand how important quality and accuracy are to the customer s business, Champion Voyager Designers Pvt Ltd has created a detailed, comprehensive approach to training their document creation, artwork and digitizing specialists. Training is ongoing with periodic reassessments, based on the customer s specific needs and Affinity Express commitment to continuous improvement.

Technology They offer a web-based order entry and management system for maximum convenience and speed. Champion Voyager Designers Pvt Ltd supports PC

and Mac platforms and is certified in over 30 software packages to meet the needs of clients.

Confidentiality and Security Champion Voyager Designers Pvt Ltd takes great care to ensure uptime and protect the clients data through an elaborate security system and set of backup procedures both onand off-site.

Support Clients have a direct link to customer support 24/7/365 and can get fast answers on the status of their projects, revisions, quotes and other questions. For any issues that require escalation, the Account Services team is available Monday through Friday, from 8:00 A.M. to 6:00 P.M. Central Standard Time.

Graphic solutions Champion Voyager Designers Pvt Ltd offers three categories of graphics services and the function is the same for each: they format the graphics, photos and written copy that the customers submit and produce digital, production-ready files. These files are then used by the customer for printing, posting to web sites, presentations, embroidery on apparel or screen-printing on ad specialty items.

IMPORTANCE AND PURPOSE OF PERFORMANCE APPRAISAL

Introduction to Performance Appraisal
Once the employee has been selected, trained and motivated, he is then appraised for hisperformance. Performance Appraisal is the step where the Management finds out howeffective it has been at hiring and placing employees. If any problems are identified, stepsare taken to communicate with the employee and remedy them. Performance Appraisal is a process of evaluating an employee sperformance in terms of its requirements.Performance Appraisal can also be defined as the process of evaluating theperformance and qualifications of the employees in terms of the requirements of thejob for which he is employed, for purposes of administration including placement,selection for promotions, providing financial rewards and other actions whichrequire differential treatment among the members of a group as distinguished fromactions affecting all members equally.

Importance and Purpose

Performance Appraisal has been considered as the most significant an indispensable toolfor an organization, for an organization, for the information it provides is highly useful inmaking decisions regarding various personnel aspects such as promotion and meritincreases. Performance measures also link information gathering and decision makingprocesses which provide a basis for judging the effectiveness of personnel sub-divisionssuch as recruiting, selection, training and compensation. Accurate information plays avital role in the organization as a whole. They help in finding out the weaknesses in theprimary areas. Formal Performance Appraisal plans are designed to meet three needs, one of theorganization and the other two of the individual namely: o They provide systematic judgments to back up salary increases,transfers,demotions or terminations. o They are the means of telling a subordinate how he is doing andsuggesting needed changes in his behavior, attitudes, skills or jobknowledge. They let him know where he stands with the Boss. o Superior uses them as a base for coaching and counseling the individual.On the basis of merit rating or appraisal procedures, the main objectives ofEmployee Appraisal are: o To enable an organization to maintain an inventory of the numberand quality of all managers and to identify and meet their trainingneeds and aspirations. o To determine increment rewards and to provide reliable index forpromotions and transfers to positions of greater responsibility. o To suggest ways of improving the employee s performance whenhe is not found to be up to the mark during the review period.

o To identify training and development needs and to evaluate effectiveness of training and development programmes. o To plan career development, human resource planning based potentials.

PERFORMANCE APPRAISALSTRUCTURE IN THEORGANIZATION

Summary of the Performance Analysis System
Setting performance standards, observing and providing feedback, and conducting appraisals enables the Team Leader to achieve the best results through managing employee performance. To begin the process, the Team Leader and the employee collaborates on the development of performance standards. The Team Leader then develops performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discussion of goalsand objectives throughout

the year provides a framework to ensure that employeesachieve results through One on One and mutual feedback. At the end of the rating period,the Team Leader appraises the employee's performance against existing standards, andestablishes new goals together for the next rating period. As the immediate supervisor, the Team Leader plays an important role; his closestinteraction with the employee occurs at this level.There are four key elements in the appraisal system: 1. Set objectives - Decide what the Team Leader wants from the employees andagree these objectives with them. 2. Manage performance - Give employees the tools, resources and training theyneed to perform well. 3. Carry out the appraisal - monitor and assess the employees' performance,discuss those assessments with them and agree on future objectives. 4. Provide rewards/remedies - Consider pay awards and/or promotion based on the appraisal and decide how to tackle poor performance.

Performance Standards
How does the Team Leader decide what's acceptable and what's unacceptable performance? The answer to this question is the first step in establishing written standards.Performance expectations are the basis for appraising employee performance. Writtenperformance standards let the Team Leader to compare the employee's performance withmutually understood expectations and minimize ambiguity in providing feedback.Having performance standards is not a new concept; standards exist whether or not theyare discussed or put in writing. When the Team Leader observes an employee'sperformance, he usually makes a judgment about whether that performance is acceptable.Standards identify a baseline for measuring performance. From performance standards,the Team Leader can provide specific feedback describing the gap between expected andactual performance.

Guiding Principles
Effective performance standards: Serve as an objective basis for communicating about performance.Enables the employee to differentiate between acceptable and unacceptableresults.Increase job satisfaction because employees know when tasks are performed well.Inform new employees of your expectations about job performance.

Key Responsibility Areas (KRA)

The Team Leaders in association with the Project Manager write performance standardsfor each key area of responsibility on the employee's job description. The employeeactively participates in its development. Standards are usually established when anassignment is made, and they are reviewed if the employee's job description is updated.The discussions of standards include the criteria for achieving satisfactory performanceand the proof of performance (methods the Team Leader will use to gather informationabout work performance).

Characteristics of Performance Standards

Standards describe the conditions that must exist before the performance can be rated satisfactory. A performance standard should:Be realistic, in other words, attainable by any qualified, competent, and fullytrained person who has the authority and resources to achieve the desired resultDescribe the conditions that exist when performance meets expectationsBe expressed in terms of quantity, quality, time, cost, effect, manner ofperformance, or method of doingBe measurable, with specified method(s) of gathering performance data andmeasuring performance against standards

Expressing Standards
The terms for expressing performance standards are outlined below: Quantity: Specifies how much work must be completed within a certain period oftime. Quality: Describes how well the work must be accomplished. Specifies accuracy,precision, appearance, or effectiveness. Timeliness: Answers the questions, by when? , How soon? , Or within whatperiod? Effective Use of Resources: Used when performance can be assessed in terms ofutilization of resources: money saved, waste reduced. Effects of Effort: Addresses the ultimate effect to be obtained; expands statements of effectiveness by using phrases such as: so that, in order to, or asshown by. Manner of Performance: Describes conditions in which an individual's personalbehavior has an effect on performance, e.g., assists other employees in the workunit in accomplishing assignments. Method of Performing Assignments: Describes requirements; used when onlythe officially prescribed policy, procedure, or rule for accomplishing the work isacceptable.

Performance Measurements
Since one of the characteristics of a performance standard is that it can be measured, theTeam Leader identifies how and where evidence about the employee's performance willbe gathered. Specifying the performance measurements when the responsibility isassigned will help the employee keep track of his progress, as well as helping the TeamLeader in the future performance discussions. There are many effective ways to monitor and verify performance, the most common ofwhich are: Direct observation Specific work results (tangible evidence that can be reviewed without theemployee being present) Reports and records, such as attendance, safety, inventory, financial records etc. Commendations or constructive or critical comments received about theemployee's work.

Observation and Feedback (One on One)

Once performance objectives and standards are established, the Team Leader observesthe employees' performance and provides feedback. The Team Leader has aresponsibility to recognize and reinforce strong performance by an employee, andidentify and encourage improvement where it is needed. The Team Leader providesinformal feedback almost every day. By observing and providing detailed feedback, the Team Leader plays a critical role inthe employee's continued success and motivation to meet performance expectations.

One On One Sessions

One on One is a method of strengthening communication between the Team Leader andthe employee. It helps to shape performance and increase the likelihood that theemployee's results will meet expectations. One on One sessions provide the Team Leaderand the employee the opportunity to discuss her progress toward meeting mutuallyestablished standards and goals. A One on One session focuses on one or two aspects ofperformance, rather than the total review that takes place in a performance evaluation

Guiding Principles
Effective One on One can: Strengthen communication between the Team Leader and the employee Help the employee attain performance objectives Increase employee motivation and commitment Maintain and increase the employee's self-esteem Provide support

Key Elements of One on One

To make One on One sessions effective, the Team Leader keeps the following key elements of One on One in mind while conducting such a session: Observe the employee's work and solicit feedback from others. When performance is successful, take the time to understand why. Advise the employee ahead of time on issues to be discussed. Discuss alternative solutions. Agree on action to be taken. Schedule follow-up meeting(s) to measure results. Recognize successes and improvements. Document key elements of One on One session.

Questions to Consider during One on One

To provide effective feedback the Team Leader must understand the elements of performance and analyze marginal performance. These questions are kept in mind: How is the employee expected to perform? Does the employee understand these expectations? If not, why not? Does the employee know what successful results look like? How does the TeamLeader know? Does the employee know the performance is marginal? How does the Team Leader know? Are there obstacles beyond the employee's control? Can the Team Leader removethem? Has the employee ever performed this task satisfactorily? Is the employee willing and able to learn? Does satisfactory performance result in excessive work being assigned? Does unsatisfactory performance result in positive consequences such as an undesirable task being reassigned?

During the One on One Session

When the Team Leader conducts a One on One session to provide positive feedback tothe employee, he keeps the following points in mind: Describe the positive performance result or work habit using specific details. Ask the employee's opinion of the same product or behavior.Ask the employee to identify elements that contributed to success (adequate time or resources, support from management or other employees, the employee's talentand interest in the project). Discuss ways in which the Team Leader and the employee can support continuedpositive results. Reinforce for the employee the value of the work and how it fits in with the goalsof the work unit or department. Show your appreciation of the positive results and your confidence that the employee will continue to perform satisfactorily. If appropriate, document your discussion for the employee's file. When the Team Leader conducts a One on One session to improve performance, he usesthe following format: Describe the issue or problem, referring to specific behaviors. Involve the employee in the problem-solving process. Discuss causes of the problem. Identify and write down possible solutions. Decide on specific actions to be taken by each of the Team Leader. Agree on a follow-up date.

Document key elements of the session.

Follow-Up Discussion
During a follow-up discussion, the following steps are followed: Review the previous discussion(s). Discuss insufficient improvement and ask for reasons why. Indicate consequence of continued lack of improvement. Agree on action to be taken and set a follow-up date, if appropriate. Convey confidence in the employee. Document the discussion.

RESEARCH STUDY
Aim of the Research
To ascertain the effectiveness of Performance Appraisal methodology used by the Organization.

Objectives of the study

The following are the objectives of the study To develop my understanding of the subject. o Performance Appraisal System implemented in various Organizations varies according to the need and suitability. Through my research, I havetried to study the kind of Appraisal used in the Organization andthevarious pros and cons of this type of system. To conduct a study on social behavior. o Social behavior is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for socialdevelopment. To enhance the welfare of employees. o The Appraisal system is conceived by the Management but mostly doesnot take into consideration the opinion of the employees. This can lead toadverse problems in the Organization. Therefore by this study I haveattempted to put forth the opinion of the employee with respect to theacceptability of the Performance Appraisal System. To exercise social control and predict changes in behavior. o The ultimate object of my research is to make it possible to predict the

behavior of individuals by studying the factors that govern and guide them.

Research Design
A research design is a type of blueprint prepared on various types of blueprints availablefor the collection, measurement and analysis of data. A research design calls fordeveloping the most efficient plan of gathering the needed information. The design of aresearch study is based on the purpose of the study. A research design is the specification of methods and procedures for acquiring the information needed. It is the overall pattern or framework of the project that stipulates what information is to be collected from which source and by what procedures.

Sampling
An integral component of a research design is the sampling plan. Specifically, it addresses three questions Whom to survey (The Sample Unit) How many to Survey (The Sample Size) & How to select them (The Sampling Procedure) Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort.

Methods of Sampling
Probability Sampling is also known as random sampling or chance sampling . Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section

of sample items is independent of he persons making the study

that is, the

sampling operation is controlled objectively so that the items will be chosen strictly at random. Non Probability Sampling is also known as deliberate sampling , purposefuland judgmental sampling. Non-Probability Sampling is that which does notprovide every individual in the Organization with a known chance of beingincluded in the sample.
MBA (Human Resources)

Data collection method

Collection of data is the first step in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be secondary orprimary. Collection of Primary Data during the course of the study or research can bethrough observations or through direct communication with respondents on oneform or another or through personal interviews. I have collected primary data bythe means of a Questionnaire. The Questionnaire was formulated keeping in mindthe objectives of the research study. Secondary data means data that is already available i.e., they refer to data, whichhas already been collected and analyzed by someone else. When a secondary datais used, the researcher has to look into various sources from where he can obtaindata. This includes information from various books, periodicals, magazines etc.

Research Methodology Adopted

Research Design

Descriptive research

Research Instrument

Structured Questionnaire

Sampling Plan i) Sample Method : Non-Probability Sampling (Convenience Sampling)

ii) Sample Size

50

iii) sample Unit

Employees who do not hold supervisory position

gn

SamplingDesi

Convenience Sampling, as the name implies, is based on the convenience of theresearcher who is to select a sample. Respondents in the sample are included in it merelyon account of their being available on the spot where the survey was in progress .

Source of the data

structured questionnaire

Primary data :

Secondar y data: journals ,booklets , company data etc.