ATHIRA R ICM New PROJECT

A Study on Effectiveness of Performance Appraisal System at Indira Gandhi Co-operative Hospital, Thalassery
1.1 INTRODUCTION
The importance of health care in modern day society can be evaluated from the fact that good
health is recognized as one of the fundamental rights of an individual. Out of the eight
recognized millennium development goals of the United Nations, health finds a third place
in them (United Nations, 2000). The economic development of a country depends on multiple
independent and interrelated factors. It is seen that each economy has certain specific and
critical industry that contribute more to the economic growth than the other industries.
However, a close observation across economies shows that certain industries substantially
contribute to the economic growth of the nation. One such industry is the healthcare industry
in India. Health has always been a higher priority area in any country. It has been recognized
as one of the most important components in the process of economic and social development.
It does not simply mean the absence of diseases; rather it is a state of complete physical,
mental and social well-being.
Hospital industry is a service industry, where patient (customer) is the most important person.
So tremendous importance of people element has to be given, so all the employees of the
hospital have to perform their duties in a better way in order to get customer satisfaction. As
it is important how advanced technology and drugs you use to cure the patient, but it is also
very important that how you deal with patient and their relatives (i.e., customer). So, it is
very important that how the staff of hospital performance their duties in order to make the
patient satisfied. If the performance of employees is appraised then it is very beneficial for
both the employees and the management to understand the current performance level and
making improvements. Also, performance appraisal helps to identify training needs so that
employees can be trained to enhance their performance. This ultimately leads to customer
satisfaction and overall organization development
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The performance appraisal is the process of obtaining, analysing and recording information
about the relative worth of an employee. The focus of the performance appraisal is measuring
and improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does. Performance appraisals are regular
reviews of employee performance within organizations
Performance Appraisal has different measures to judge the capabilities and efficiency of an
individual in an organization how far the targets have been achieved, how has his
performance been! It plays a very important role in their analysis as it keeps the employees
motivated towards their jobs. This assessment also helps in the overall growth of the
organization. So, Performance Appraisal today plays a very important role in keeping a track
of various employees for different kinds of jobs in the organization. Its aim is to measure
what an employee does. It is a powerful tool to calibrate, refine and reward the performance
of the employee. It helps to analyse his achievements and evaluate his contribution towards
the achievements of the overall organizational goals. By focusing the attention on
performance, performance appraisal goes to the heart of personnel management and reflects
the management’s interest in the progress of the employees.
Performance appraisal enables an employee to know how his/her performance and to identify
areas which need improvement and proper training. Manasa, K. Reddy (2009) said that “a
performance appraisal is a systematic and periodic process that assesses an individual
employee’s job performance and productivity in relation to certain pre-established criteria
and organizational objectives”. Effective appraisal system provides step-by-step guidance
and standardized evaluation procedure and forms, which leads to consistency. Health care
organizations are service oriented organizations. Healthy environment is highly essential to
provide quality service. For improving healthy environment, employees need to develop their
performance. Effective appraisal system serves determines how well an employee is working
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at his or her job and also decides the ways to improve his/ her performance. Performance
Appraisal system consists of Performance planning, monitoring performance, developing the
capacity to perform, assessing the employee’s performance, Reward and Recognition.
1.2 STATEMENT OF THE PROBLEM
The Focus of this study was to determine whether Performance Appraisal with their staff
were using as an important management tool. This study randomly selected 50 workers
consisting of both Permanent and Temporary employees in the hospital. This workers include
Doctors, Nurses, Pharmacists, social workers and Patient care technicians.
Majority of the workers were of the view that Performance Appraisal System motivated them
to perform better in the job and provided work satisfaction. It helped them to identify training
and development needs in the hospital.
Performance Appraisal System was carried out on quarterly basis in the hospital by survey
questions that pertained to Performance Appraisal, respondents were asked how frequently
Performance Appraisal took place, what information was used in the evaluation what type of
Follow-up took place after Performance Appraisal was completed. The results suggest that a
Significant number of Staffs were receiving appraisals in the hospital.
1.3 SCOPE OF THE STUDY
The purpose of the research is to find out the level of effectiveness of performance appraisal
towards the employees of Indira Gandhi Co-operative Hospital, Thalassery. This study helps
to find out whether the employees meet the present standard of performance and to improve
the current performance. The study helps the management to know the worth of employees
and competent employee who are rewarded. It aims at evaluating the performance appraisal
system in order to identify and fulfil the gap.
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1.4 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES
• To study the effectiveness of performance appraisal in Indira Gandhi Cooperative
Hospital, Thalassery.
SECONDARY OBJECTIVES
• To identify whether performance appraisal helps in the personnel development.
• To assess the various methods to improve the performance appraisal system.
• To measure the performance of the employees and identify the area in which training
is required.
• To identify the satisfaction level towards training and development programme
provide by the company
• To give suitable suggestion to improve the performance appraisal system
• To know whether there is harmonious relationship between the employer and
employee.
1.5 RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem.1t is understood
as a science of studying how research is done scientifically. The design of study is connected
with techniques for collection of data and analysis of data in a manner that aims to have
relevance to the research purpose
1.5.1 RESEARCH DESIGN
In this study descriptive research design was used.
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1.5.2 SAMPLING DESIGN
Sampling design is a define plan for obtaining sample from workers refers to procedure in
selecting sample. The sample units are chosen primarily on the basis of the convenient
sampling method
1.5.3 SAMPLE SIZE
In the hospital 105 Permanent employees and 128 temporary employees are there and the
sample of 50 workers was taken for the study.50 workers include Doctors, Nurses,
Pharmacists ,social workers and Patient care technicians.
1.5.4 SOURCES OF DATA
l. Primary Data
Primary data is collected through the well-structured questionnaire. The data is collected by
administering questionnaire to the workers directly and collecting the information.
2. Secondary Data
In this study secondary data are collected from;
➢ Internet
➢ Hospital website
➢ Published sources such as journals, newspapers
➢ Unpublished sources such as hospital internal reports prepared by them
RESEARCH PROBLEM
The problem is to evaluate the knowledge management, to analyse and offer constructive
suggestions for improving them.
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CONSTRUCTIVE OF QUESTIONNAIRE
The questionnaire framed for the research study is a structured questionnaire in which all the
questions are predetermined before conducting the survey. The forms of questionnaire are: -
1. Personal details of the employees
2. Opinions of the respondents regarding the performance appraisal system in the
hospital.
3. The questionnaire contains both open and close ended question
• Dichotomous Scale -Yes/No
❖ Findings of the study are based on the assumption that the respondents have given
Opinion.
Due to the busy schedule of the employees, they were not able to provide sufficient
1.5.5 TOOLS FOR ANALYSIS
Mainly 2 tools were used for analysis. They are:
• Percentage Analysis
• Chi-Square Test
1)PERCENTAGE ANALYSIS:
The percentage analysis consists of reducing a number of related amounts to a series of a
given base. This analysis facilitates comparison and is helpful in evaluating the relative size
if items or the relative change in items.
The percentage is calculated through the formula
Percentage (%) = (Number of people responded / Total number of respondents) * 100
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2)CHI-SQUARE ANALYSIS:
It is a statistical test which tests the significance of difference between observe frequencies
and corresponding theoretical frequencies of a distribution of the population. Chi square test
is one of the simplest and most widely used non parametric tests in statistical work
Chi-Square values are found out by using the formula;
There; O= Observed frequency
E= Expected frequency
1.6 PERIOD OF THE STUDY
The study was conducted from 9th may 2022 to 17th June 2022.
1.7 LIMITATONS OF THE STUDY
Some of important limitations were found at the time of study. They are
❖ The time is inadequate to conduct a deep study.
❖ The company management keeps certain files, records and information as
confidential.
❖ A certain degree of reluctance was shown by some of the employees in revealing
their opinions due to the fear for disclosure.
❖ The study is restricted only to a few workers in the organization and their opinions
of the other majority.

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1.8 CHAPTER SCHEME
The project report has been presented in following format.
➢ The first chapter gives the introduction and design of the study which
includes the introduction, statement of the problem, objectives of the study,
sample design, methodology, tools of analysis limitations and chapter scheme.
➢ The second chapter brings out the literature survey.
➢ The third chapter highlights the industry and company profile
➢ The fourth chapter presents the analysis and interpretation of data.
➢ The fifth chapter consists of findings, suggestions and conclusion
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2.1 LITERATURE REVIEW
A large number of researches have been conducted on the mechanisms of measurement,
assessment of performance appraisal system in India. However, there are very few
researches conducted so far on studying the appraisal variables affecting the overall
effectiveness of performance appraisal system Again researches focusing on different
variables indulged in the designing and execution of appraisal process. A brief retrospect
below to gain an insight into various aspects of the present study.
Singh, Maggu, and Warrier (1981) in their study explained briefly about performance
appraisal system in Indian organizations. The main objective of the study was to find out the
validity of the observed attitudes and opinions by examining the level of managerial
satisfaction with the existing performance appraisal system. The study tried to identify the
factors responsible for the non-effectiveness of the appraisal system. The study found that
the managerial community in India is considerably dissatisfied with the performance
appraisal systems. The study also found that the level of managerial satisfaction is
significantly different in the private sector when compared to the public sector and the
managers at private sector are more satisfied. The study recommends that to be effective the
appraisal system must focus on individual behaviors, format, techniques and organizational
needs.
Brooks (2000) observe that 360 performance appraisals can play significant part in improving
the communication channels between co-workers in an organization. They might be able to
talk more openly about their own performance as well as the performance of co- workers
which could bring the organization closer together. this may make the work environment more
conducive to better production. The traditional top-down approach does not add to the
communication between the employees and the supervisor. In a 360-degree appraisal there is
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vital feedback given to the supervisor. The subordinate can pinpoint certain skills that the
supervisor needs to improve upon. Lack of knowledge on the part of supervisor leads to
incompetent handling of the problem. Not only the skills of the supervisor will improve but
will also help better working conditions between the subordinates and the supervisor. The
subordinates feel that they can be honest with their supervisor than they will feel more
comfortable at work which will increase performance. Top-down appraisals only focus on
feedback from the supervisor and don’t have anything to do with feedback form other co-
workers. Feedback from other co-workers is useful because most people want to held up in
high regard by their peers and coworkers. They want to know that their co-workers think that
his/her performance is holding up to expectations and they are pulling their share of the load.
Sometimes the supervisor is not in a position to know how each individual is performing.
Petti john and Taylor (2000) in their article titled “An Exploratory Analysis of Salesperson
Perceptions of the Criteria Used in Performance Appraisals: Job Satisfaction and
Organizational Commitment” state that in some sales organizations the performance appraisal
is treated as a bureaucratic exercise required by some "higher-up" executive. As such, sales
managers may essentially conduct appraisals in an arbitrary and perfunctory manner. This
behavior could be the result of the manager's perception that conducting performance
appraisals requires considerable amounts of time and effort, which provides few rewards, but
adds considerably to the manager's level of conflict and stress. The purpose of this research is
to examine the relationships existing between one aspect of performance appraisals,
salesperson perceptions of the appropriateness of the criteria used, and two other variables,
organizational commitment and job satisfaction. A survey of retail salespeople provided the
data required to evaluate the relationship between satisfaction, commitment, and the perceived
appropriateness of the criteria used. The findings indicate that salesperson satisfaction levels
are significantly correlated with the level of the perceived inappropriateness of the evaluation
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criteria used. However, the findings also indicate that the perceptions of the inappropriateness
of the evaluation criteria are not significantly related to the salesperson's level of
organizational commitment. Based on these findings, recommendations are made regarding
the salesperson's role in the development of the performance appraisal process.
Fletcher (2001) in his article titled, “Performance appraisal and management: The developing
research agenda” expresses that performance appraisal has widened as a concept and as a set
of practices and in the form of performance management has become part of a more strategic
approach to integrating HR activities and business policies. As a result of this, the research on
the subject has moved beyond the limited confines of measurement issues and accuracy of
performance ratings and has begun to focus more of social and motivational aspects of
appraisal. This article identifies and discusses a number of themes and trends that together
make up the developing research agenda for this field. It breaks these down in terms of the
nature of appraisal and the context in which it operates. The former is considered in terms of
contemporary thinking 71 on the content of appraisal (contextual performance, goal
orientation and self-awareness) and the process of appraisal (appraiser–appraisee interaction,
and multi-source feedback). The discussion of the context of appraisal concentrates on cultural
differences and the impact of new technology. In reviewing these emerging areas of research,
the article seeks to explore some of the implications for appraisal practice at both
organizational and individual levels
Brown (2002) in his articles entitled ―A theory of the process of creating power in
relationships‖ comments that with regard to health care specifically, research has frequently
uncovered a lack of loyalty to the organization and the nursing profession. Brown noted that
nurse administrators face the challenge of repairing ―broken relationships with nurses
because of changes in management policies over time. During the1990s, health care
organizations tried to adopt cost cutting strategies employed by many other industries, thereby
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taking the focus away from the quality of care to patients. This conflict ultimately left nurses
feeling disengaged and empowered in their roles in delivering patient care and at odds with
the financial performance initiatives of health care administrators.
Brown and Heywood (2005) in their article titled “Performance Appraisal Systems:
Determinants and Change” used establishment data from the Australian Workplace Industrial
Relations Survey to estimate the determinants of performance appraisal systems. The results
indicate that performance appraisal is associated with workers having shorter expected tenure
and greater influence over productivity. These results reflect those circumstances in which the
net benefits of performance appraisal are likely to be the greatest. The results also show that
complementary human resource management practices, such as formal training and incentive
pay, are associated with an increased likelihood of performance appraisal, but that union
density is associated with a reduced likelihood of performance appraisal.
Jawahar (2006) in his article titled, “Correlates of satisfaction with performance appraisal
feedback” states that the relative lack of research on employees’ reactions to performance
appraisal feedback is the primary impetus for this study which advances this important, but
neglected, research area by investigating potential predictors and consequences of satisfaction
with appraisal feedback. Survey responses from 112 employees were matched with their
performance ratings from two different appraisal periods to test specific hypotheses. Results
indicate that satisfaction with rater and previous performance ratings influence employees’
satisfaction with appraisal feedback. Satisfaction with appraisal feedback was positively
related to job satisfaction and organizational commitment and negatively related to turnover
intentions. Supervisory status moderated the relationship between satisfaction with appraisal
feedback and subsequent performance such that the relationship existed only for supervisory
employees who, in addition to receiving feedback about their own performance, also provided
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feedback to their subordinates. Implications of results for researchers and practitioners are
discussed.
Varma and Pichler (2007) in their article titled, “Interpersonal Affect: Does It Really Bias
Performance Appraisals?”, state that interpersonal affect has been found, in prior laboratory
research, to be related to ratings of job performance. Such findings have been taken to mean
that affect creates bias in ratings. The study was conducted to determine if this relationship
would hold up in a field setting. The study was also designed to examine how structured
diary78 keeping, and the nature of the appraisal instrument, might be related to affect appraisal
relationships. The results for 85 raters and 404 ratees, suggested that affect was significantly
related to all ratings, but more strongly related to trait like ratings than task/outcome-like
ratings, and that having raters keep performance diaries actually increased the strength of the
relationship between affect and ratings. They concluded that affect may not be a biasing
influence on ratings, but may be a result of better subordinate performance. Results from an
analysis of the diary content supported this conclusion. Implications for the role of effect on
ratings and the nature of the relationship between past performance and interpersonal affect
in field settings are discussed.
Khan (2007) in the article entitled "Performance Appraisal ̳s Relation with Productivity and
Job Satisfaction" pinpointed that the whole essence of the management activities of an
organization culminates in the system of performance appraisal adopted in that organization.
This, in turn, reflects the extent of the individual contributions and commitment of the
employees’ indifferent hierarchical levels toward the achievement of organizational
objectives/goals. It goes without saying that an effective performance appraisal system can
lead an organization to take strides towards success and growth by leaps and bounds.
Conversely, an ineffective performance appraisal system can seal the fate of an organization
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by creating chaos and confusion from top to bottom in the administrative hierarchy. As a
consequence, the chances of success and growths of that organization are doomed.
Redshaw (2008) the study was conducted among nurses to assess their perception and
experiences about performance appraisal process within the hospital. The study found that the
nurse managers and staff nurses lack guidance on how to undertake and complete appraisals.
The study also found that appraisals are poorly implemented and the nurses expressed negative
attitudes towards appraisals.
Hanan (2008) in his study assessed the factors affecting the performance of nurses. The study
discussed about the differences among employee demographics, job satisfaction, and
organizational commitment when influenced by performance. The study found that job
performance is positively correlated with organizational commitment, job satisfaction and
personal and professional variables. The study found that job satisfaction and organizational
commitment are the strong predictors of nurses’ performance and job performance was
positively related to personal factors like years of experience, nationality, gender, and marital
status. The study also found that the level of education was negatively related to performance.
The study concluded that cultural diversity is a reality for most health organizations in Saudi
Arabia and therefore, organization need to adopt effective human resources strategies to
improve commitment and retention of qualified workers.
Chen and Fu (2008) in their article titled “A systematic framework for performance appraisal
and compensation strategy” state that systematical strategic fit benefits organization’s
performance and makes the organization systemic. Researches on performance appraisal
strategy and compensation strategy are extensive, but most of them only focused on the single
subject without the synergy of them. An extensive literature review is provided in this research
to build up a systematic theoretical framework for performance appraisal and compensation
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strategy. Four propositions of the criteria and methods of performance appraisal and
compensation strategy are inferred in this systematic framework. Furthermore, four situations
of 2×2 combinations with the criteria and above methods are discussed for the new systematic
performance appraisal and compensation strategy. Through this framework, an organization
can appropriately focus on employees’ representation or individual to evaluate and motivate
employees in a rational or humanistic way
Zhang and Lovegrove (2009) in their article titled, “Performance appraisal for Chinese state-
owned banking industry” states that performance appraisals, which are used to assist
individual development and organizational planning, are considered an important part of
effective human resource management. Studies of performance appraisal are invariably based
on western theories, which can create issues when they are applied in different cultures, with
China being identified as one such area. With China’s WTO accession and the entry of foreign
banks, the Chinese banking sector has become an extremely sensitive area of development for
the nation’s economy. It is important, therefore, to understand the factors surrounding
performance appraisal and what does the process add to the efficiencies in the Chinese state-
owned banking industry. This article is based on the data collected from the employees of
Chinese state-owned banks from 2005 to 2007. The findings suggest that the employees
‘perception of justice has a positive relationship to their overall satisfaction with both the
performance appraisal process and their outcomes. However, statistically significant
differences were found in relation to whether employees had received training in performance
appraisal or not.
Grunda and Sliwka (2009) in their article titled “The anatomy of performance appraisals in
Germany” investigated the use of performance appraisal (PA) in German firms. First, they
derived hypotheses on individual and job-based determinants of PA usage. Based on a
representative German data set on individual employees, they tested these hypotheses and also
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explored the impact of PA on performance pay and further career prospects. The results
include that PA is positively linked to an individual’s willingness to take risks. The
performance of older employees and women is evaluated less often. Furthermore, larger firms
evaluate the performance of their employees more. They found evidence for a non-monotonic
relation between the hierarchical level and usage of performance appraisal: The performance
of employees with very high or very low responsibilities is assessed less often
Brown, Hyatt and Benson (2010) in their assessed the impact of low-quality performance
appraisal on three indicators of human resource management like job satisfaction,
organizational commitment and intent to quit. The study was based on the responses of the
non-managerial employees of PSR as the employees of this organization work under the
performance appraisal process and whose behaviors the system is intended to affect. The study
found that employees reporting high quality performance appraisal experience a higher level
of independence, less role conflict, more supportive co-workers and higher perceived job
security than employees reporting low performance appraisal and employees experiencing
low quality performance appraisals have lower job satisfaction, organizational commitment
and are more intended to quit from the organization.
Migiro and Taderera (2011) in their study briefly described the appraisal process in the bank
of Botswana. The study found that the appraisal system was used to identity employees for
promotion and salary. The study also found that the reward outcomes did not always show a
positive reflection of the performance appraisal outcomes and that the system was not
consistent. The study also identified issues that needed to be addressed for the bank’s
performance appraisal system to be effective are regular training for both the employees and
the evaluators; transparency in the implementation of the appraisal system; provision of
continuous feedback to employees on their performance and reduction of inconsistency in the
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system across the Bank. The study highlighted the unique challenges of the PAS in the bank
and provided suggestions for its improvement.
Rakesh, Bimal and Ashish (2011) in their study discussed the importance of performance
appraisal process in hospitals. The study described the purpose of having a performance
appraisal as a program to monitor employees’ performance, motivate staffs which improve
hospital morale. The study suggested that performance of a health care professional should be
appraised by the appropriate departmental manager, professionals in a team or program, by
peers, based on prior agreement on expectations. The study also discussed various appraisal
approaches like behavioral approaches such as rating scales, peer rating, ranking or
nomination and outcome approaches such as MBO and goal setting. The study concluded that
professionals should give and receive timely feedback on a flexible schedule and feedback
must be provided one-on-one or by a group assessing the quality of care or through an
anonymous survey.
Sher Singh, Hemant and Banshiwal (2012) in their study assessed the formal structural system
of performance appraisal system to measure and evaluate nurse’s job-related behaviors and
outcomes. The study found that the philosophy, purpose and objectives of the organization,
written job descriptions, suitability of appraisal tool, trained evaluators, and full support of
top management are the important characteristics of performance appraisal which
ensures/enhances quality nursing care.
Sandesh Kumar Sharma and Cheidam Kumar Sharma (2015) conducted study among private
hospitals, in Jaipur to determine the opinion of the employees regarding the existing
performance appraisal process. The study found that employees are aware of performance
appraisal system. The study also found that employees felt that the method adopted for
appraisal is of good quality, which helped the employees to improve their performance and
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also give opportunities to achieve the personal goals. The study concluded that the
performance appraisal helped to increase the performance of private hospitals employees.
K.P. Thooyamani, S. FabiyolaKavitha, Bernice Lancia Rajasekhar (2017) assessed the
effectiveness of performance appraisal system with 100 employees in gem plast. This study
covers the Human resources management and performance appraisal system of the company
and human resource, performance appraisal system covers the aspects like, employee attitude
towards work, behavior, trait, task, and relationship with authority and co-workers of Gem
Plast. Study revealed that most of Employees are feel Appraisal is necessary and make the
performance evaluation system more effective and efficient, the company decided to re-design
the appraisal system. The study shows that overall Performance evaluation in the company
satisfactory but company should concentrate more on following better strategies towards the
improvement of appraisal system. Dr Rajeshwari Malik and
Dr Supriya Chikkara (2018) evaluated the Performance Appraisal Systems in Service
Industry in India. Study analyzed the appraisal systems, to study the interrelationship between
the factors like job satisfaction, organizational culture, etc., with performance appraisal
system. How long people wish to stay in the organization, and how they talk about their
organization outside. The sample size is 300 and survey was conducted in higher education
institutes located in Delhi-NCR. The study is consisting of twenty-nine elements divided into
five factors namely (i) feelings towards current job (ii) Perception towards the appraisal
process (iii) Career plans in near future(iv) Ability to Perform and (v) General feelings
towards current organization. Study suggested every organization to constantly realized its set
goals, it is important that Performance Appraisal must become a regular exercise and must
occupy central role/or function of the management.
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Ajibola, K., S., Mukulu, E., Orwa, G., O. (2019) evaluated performance appraisal as a
determinant of employee work engagement in manufacturing firms in Nigeria. Study revealed
that there is positive significant relationship between performance appraisal and employee
engagement. The study concluded that there were traditional performance appraisal practices
in manufacturing firms in Nigeria. Study also recommends that manufacturing firms should
embrace continuous performance appraisal to improve the level of employee engagement
among its workforce
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2.1 THEORATICAL REVIEW
Performance Appraisal is a formal, structured system that compares employee performance
to established standards. Assessment of job performance is shared with employees being
appraised through one of several primary methods of performance appraisals. Elements in
performance appraisal methods are tailored to the organization's employees, jobs, and
structure.
An effective review process helps organizations in three areas:
1. Evaluation and improving personnel selection and training systems
2. Preventing wrongful termination
3. Increasing real employee diversity
Objectives of Performance Appraisal:
 Let the employees know where they stand in so far as their performance is concerned and
to assist them with constructive criticism and guidance for the purpose of their development.
 Assessment of skills within an organization.
 Set targets for future performance.
 Effect promotions based on competence and performance.
 Strengthen relationship between superior and subordinate.
 Assess the training and development needs of employees.
 Identify the strengths and weaknesses of employees.
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 Decide upon a pay raise (increments)
 Determine whether human resource programs such, as selection, training and transfers
have been effective or not.
 Form a basis for personnel decisions-salary (merit) increases, promotions, disciplinary
actions, etc.
 Provide the opportunity for organizational diagnosis and development.
 Facilitate communication between employee and administrator.
 Increase motivation to perform effectively.
 Better clarify and define job functions and responsibilities.
 Clarify organizational goals so they can be more readily accepted.
Performance Appraisal Process
• Prepare - prepare all materials, notes agreed tasks and records of performance,
achievements, incidents, reports etc. - anything pertaining to performance and achievement
• Inform - ensure the appraise is informed of a suitable time and place and clarify purpose
and type of appraisal
• Venue - ensure a suitable venue is planned and available - private and free from
interruptions
• Introduction - relax the appraise - open with a positive statement, smile, be warm and
friendly
• Review and measure - review the activities, tasks, objectives, and achievements one by
one.
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• Agree an action plan - An overall plan should be agreed with the appraisee, which should
take account of the job responsibilities, the appraisee's career aspirations, the departmental
and whole organization's priorities
• Agree necessary support - This is the support required for the appraisee to achieve the
objectives and can include training and anything relevant and helpful that will help the
person
develop towards the standard and agreed task. Also consider training and development that
relates to 'whole-person development' outside of job skills. Developing the whole person
in this
way will bring benefits to their role and will increase motivation and loyalty.
• Invite any other points or questions - make sure you capture any other concerns.
• Close positively- Thank the appraisee for their contribution to the meeting and their effort
through the year and commit to helping in any way you can.
• Record main points, agreed actions and follow-up - Swiftly follow-up the meeting with
all necessary copies and confirmations, and ensure documents are filed and copied to
relevant departments.
Benefits:
The following are the benefits of a successful appraisal system:
1.For the Organization:
❖ Communication to people that they are valued.
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❖ Improved performance throughout the organization due to: - Effective
communication of organization’s objectives and values - Increased sense of
cohesiveness and loyalty.
❖ Managers are better equipped to use their leadership skills and to develop their staff.
❖ Improved overview of tasks performed by each member of a group.
❖ Identification of ideas for improvement.
2. For the Appraiser:
❖ Opportunity to develop an overview of individual jobs.

❖ Opportunity to identify strengths and weaknesses of appraises.
❖ Increased job satisfaction.
❖ Opportunity to link team and individual objectives with department &
organizational objectives.
❖ Opportunity to clarify expectations that the manager has from teams and
individuals.
❖ Opportunity to re-prioritize targets
❖ Means of forming a more productive relationship with staff based on mutual trust
and understanding.
❖ Due to all above Increased sense of personal value.
3.For the Appraise:
❖ Increased motivation and job satisfaction.
❖ Clear understanding of what is expected and what needs to be done to meet
expectations.
❖ Opportunity to discuss aspirations and any guidance, support or training needed to
fulfil these aspirations.
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❖ Improved working relationships with the superior.
❖ Opportunity to overcome the weaknesses by way of counselling and guidance from
the superior.
Performance Appraisal Techniques: -
The actual performance (Key performance area) of an employee is then compared to the
predetermined grade definitions.
Traditional Methods of Appraisals:
Ranking
• In this, the superior ranks his/her subordinates in order of their merit, from best
to worst.
• It is done in a competitive group.
• It is done by placing the appraise on numerical scales I.e., 1st, 2nd, 3rd etc. in
the total group
• Ranking of an appraise on his job performance/traits against that of another
member
Person-to-Person/Paired Comparison
Under this method the appraiser compares each employee with every other employee,
one at a time
• Certain key performance areas/traits are developed. E.g.: Leadership, Creativity,
Initiative etc.
• A scale for each factor is designed.
• A scale of people is also created for each factor.
ICM KANNUR 24
• Each Appraisee is compared to every other person on the scale.
• Certain scores for each factor are awarded to the appraisee
Grading
• Certain categories of traits/performance criteria, which are worth of appraising, are
established. E.g., cooperativeness, self-expression, dependability, job knowledge
etc.
• Appraisee is allotted with the grade, which describes his performance in the best
possible manner. -Any grade that is selected should be well defined.
Graphic Scale
• A printed form, one for each person to be rated is used.
• The factors included in the form are Employee characteristics such as leadership,
cooperativeness, enthusiasm, loyalty etc. or Employee contribution which includes
quantity and quality of work, specific goals achieved, regularity of attendance,
responsibility assumed etc.
• The traits can be evaluated on continuous scale – the appraiser places a mark along
a continuum (range).
Checklist
• A series of questions are presented concerning an appraiser’s behaviour.
• The appraiser must reply to the questions in either negative or positive tone-
(Yes/No).
• The value of each question may be weighted i.e., one can have predetermined scale
and scoring to those questions.
ICM KANNUR 25
Essay
• A blank form is given to the appraiser.
• The form contains main heading such as employees’ characteristics, attitudes, job
knowledge, potential etc.
• The appraiser is asked to put in words his impressions about the employee.
• It gives specific information about the employee.
Confidential Reporting
• It is the most traditional way of appraising employee’s performance. The basic
assumption here is that since the superior is in direct contact, he knows his
subordinates better than any other and hence his appraisal would be more
appropriate.
• The superior writes a paragraph or so about his subordinate’s strengths,
weaknesses, intelligence, attitude to work, attendance, conduct and character, work
efficiency, etc.
Critical Incident Method
• Initially a set of noteworthy (good or bad) on-the-job behaviours is prepared. This is
usually in the form of incidents.
• These incidents are given to a group of experts who assign scale values depending
upon the degree of desirability for the job.
• This checklist is used by superiors for evaluating the employees.
• This method helps in identifying the key areas where the employees are weak or
strong.
ICM KANNUR 26
• It emphasizes rating on objective evidence and helps in counselling.
Forced Choice Technique
• In forced choice system the appraiser is forced to choose one from among a group
of 4 statements that best fits the individual being rated and one which least fits
him.
• Each statement is given a value or a score.
• The evaluator does not know the score value of statements; hence he cannot show
any favour towards the appraise.
• The method of arranging the traits involves a long process from getting the
description of “good” or “bad” employees to establishing their validity and
reliability.
Modern Methods of Appraisal
Behaviourally Anchored Rating Scales
Behaviourally Anchored Rating Scales (BARS) is a relatively new technique which combines
the graphic rating scale and critical incidents method. It consists of predetermined critical areas
of job performance or sets of behavioural statements describing important job performance
qualities as good or bad (for e.g., the qualities like inter-personal relationships, adaptability and
reliability, job knowledge etc.). In this method, an employee’s actual job behaviour is judged
against the desired behaviour by recording and comparing the behaviour with BARS.
Developing and practicing BARS requires expert knowledge.
Human Resource Accounting Method
Human resources are valuable assets for every organization. Human resource accounting
method tries to find the relative worth of these assets in the terms of money. In this method
ICM KANNUR 27
the performance of the employees is judged in terms of cost and contribution of the
employees. The cost of employees includes all the expenses incurred on them like their
compensation, recruitment and selection costs, induction, and training costs etc. whereas
their contribution includes the total value added (in monetary terms). The difference between
the cost and the contribution will be the performance of the employees. Ideally, the
contribution of the employees should be greater than the cost incurred on them.
Assessment Centers
An assessment centre typically involves the use of methods like social/informal events, tests
and exercises, assignments being given to a group of employees to assess their competencies
to take higher responsibilities in the future. Generally, employees are given an assignment
like the job they would be expected to perform if promoted. The trained evaluators observe
and evaluate employees as they perform the assigned jobs and are evaluated on job related
characteristics. The major competencies that are judged in assessment centres are
interpersonal skills, intellectual capability, planning and organizing capabilities, motivation,
career orientation etc. assessment centers are also an effective way to determine the training
and development needs of the targeted employees
Management by Objectives
The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in
1954. Management by Objectives is basically a process whereby the superior and the
subordinate managers of an enterprise jointly identify its common goals, define everyone’s
major areas of responsibility in terms of the results expected of him and use these measures
as guides for operating the unit and assessing the contribution of each of its members.
Management by Objectives is primarily to change the behaviour and attitude towards getting
an activity or assignment completed in a manner that it is beneficial for the organization.
ICM KANNUR 28
Management by objectives is a result-oriented process, wherein emphasis is on results and
goals rather than a prescribed method. Several companies have had significant success in
broadening individual responsibility and involvement in work planning at the lowest
organizational levels.
Management by Objectives is a process having followed basic steps:
I. Set Organizational Goals
II. Joint Goal Setting
III. Performance Reviews
IV. Set check posts
V. Feedback
360º Feedback
The 360º Feedback process is called multi-source assessment, taps the collective wisdom of
those who work most closely with the employee, superiors, colleagues (peers), direct reports
and possibly internal and often external customers. The collective intelligence these people
provide on critical competencies or specific behaviours and skills gives the employee a clear
understanding of personal strengths and areas ripe for development. Employees also view
this performance information from multiple perspectives as fair, accurate, credible, and
motivating. As the 360º Feedback process better serves the needs of employees, it serves the
changing needs of their organizations too. Organizations are reducing hierarchy by removing
layers of management and putting more emphasis on empowerment, teamwork, continuous
learning, individual development, and self-responsibility. The 360º Feedback Model aligns
with these organizational goals to create opportunities for personal and career development.
ICM KANNUR 29
360-degree appraisal has four integral components:
1. Self-appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal and peer appraisal.
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ABOUT THE INDUSTRY
Healthcare is one of India ‘s largest sectors, in terms of revenue and employment, and the
sector is expanding rapidly. During the 1990s, Indian healthcare grew at a compound annual
rate of 16%. Today the total value of the sector is more than $34 billion. This translates to
$34 per capita, or roughly 6% of GDP.
By 2012, India ‘s healthcare sector is projected to grow to nearly $40 billion. The Indian
healthcare industry is seen to be growing at a rapid pace and is expected to become a US$280
billion industry by 2020. The Indian healthcare market was estimated at US$35 billion in
2007 and is expected to reach over US$70 billion by 2012 and US$145 billion by 2017.
According to the Investment Commission of India the healthcare sector has experienced
phenomenal growth of 12 percent per annum in the last 4 years. Rising income levels and a
growing elderly population are all factors that are driving this growth. In addition, changing
demographics, disease profiles and the shift from chronic to lifestyle diseases in the country
has led to increased spending on healthcare delivery.
Even so, the vast majority of the country suffers from a poor standard of healthcare
infrastructure which has not kept up with the growing economy. Despite having centers of
excellence in healthcare delivery, these facilities are limited and are inadequate in meeting
the current healthcare demands. Nearly one million Indians die every year due to inadequate
healthcare facilities and 700 million people have no access to specialist care and 80% of
specialists live in urban areas.
A Hospital, in the modern sense of the world is an institution for health care providing patient
treatment by specialized staff and equipment, and often but not always providing for longer-
term patient stays .1ts historical meaning, until relatively recent times, was "a place of
hospital", for example the Chelsea Royal Hospital. Established in 1681 to house veteran
soldiers.
ICM KANNUR 31
Today, hospitals are usually funded by the public sector by health organizations, (for profit
or non-profit), health insurance companies or Charities. including by direct charitable
donations. Historically, however, hospitals were often founded and funded by religious
orders or charitable individuals and leaders. Modern-day hospitals are largely staffed by
professional physicians, surgeons, and nurses, whereas in history, this work was usually
performed by the founding religious orders, such as the Alexians and the Bon Secours Sisters
which still focus on hospital ministry.
During the Middle Ages hospitals served different functions to modern institutions, being
alms-houses for the poor hostels for pilgrims, or hospital schools. The word hospital comes
from the Latin word ‘Hospitalia’, which means an apartment for strangers and guests.,
signifying a stranger in or foreigner, hence a guest. Another noun derived from this,
Hospitalia came to signify hospitality, that is the relation between guest and shelter.
Hospitality friendliness. Hospitable reception. The latter modern word derives from lasting
via the ancient French romance word hostel, which developed a silent which.is signified by
a circumflex in the modern French word hotel.
Grammar of the word differs slightly depending on the dialect the U.S., hospital usually
requires an article; in Britain and elsewhere, the word normally is used without an article
when it is the object of a preposition and when referring to a patient (“in/to the hospital" vs
"in/to the hospital); in Canada both uses are founded.
Kerala scenario
Kerala the “God ‘s own country”, is the cradle of Ayurveda and traditional system of
medicine. The alternative system of medicine, Ayurveda is very well marketed in Kerala in
ICM KANNUR 32
terms of medical tourism. Kerala has the best qualified professionals in each and every field.
The state has the most competent doctors and world class medical facilities also.
The medical charges in Kerala are also competent so that people from other states, across the
borders and from all parts of the world come here for the treatment of various health
conditions.
The Kerala hospitals are well equipped of accommodating and treating a multitude of
medical tourists at the same time. The state-of-the-art infrastructure and health facilities
provided to patients are excellent. The panel of doctors is well experienced and veterans in
their fields. Kerala has many Super Specialty Hospitals, multi-specialty hospitals, Dental
care hospitals, eye care hospitals, Ayurvedic centers. Moreover, economical and effective
treatment is assured by the renowned hospitals of Kerala.
Ancient Asia
The sin hales (Sri Lankans) are perhaps responsible for introducing the concept of dedicated
hospital to the world. According to the Mahavamsa, the ancient chronic of Sinhalese royalty
written in the 6th century A.D, King Pandukabhaya (4th century B.C) had lying homes and
hospitals had in various part of the country. This is the earliest documentary evidence we
have of institution specifically dedicated to the care of the sick anywhere in the world
mihintale hospital is perhaps the oldest in the world.
TYPES
Some patients go to a hospital just for diagnosis. treatment, or therapy and then leave
(outpatients') without staying overnight; while there are 'admitted' and stay overnight or for
several weeks or months ('inpatients'). Hospitals usually are distinguished from other types
ICM KANNUR 33
of medical facilities by their ability to admit and care for inpatients whilst the others are often
are described as clinics.
1. General
The best-known type of hospital is the general hospital, which is set up to deal with many
kinds of disease and injury, and normally has an emergency department to deal with
immediate and urgent threats to health. A general hospital typically is the major health care
facility in its region, with large numbers of beds for intensive care and long-term care; and
specialized facilities or surgery, childbirth, bioassay laboratories, so forth. Larger cities may
have several hospitals, especially in the United States have their own ambulance service.
2.Specialized
Types of specialized hospitals. children’s hospitals senior's(geriatric) hospitals, and hospitals
for dealing with specific medical needs such as psychiatric problems (see psychiatric
hospital), certain disease categories and so forth.
A hospital may be a single building or a number of buildings on a campus. Many hospitals
with pre-twentieth-century origins began as one building and evolved campuses. Some
hospitals are affiliated with universities for medical research and the training of medical
personnel such as physicians and nurses, often called teaching hospitals. Worldwide, most
hospitals are run on a non-profit basis by governments or charities. Within the United States,
most hospitals are non-profit.
3.Teaching
A teaching hospital combines assistance to patients with teaching to medical students and
nurses and often is linked to a medical school, nursing school or universities.
ICM KANNUR 34
4.Clinics
A medical facility smaller than a hospital is generally called a clinic, and often is run by a
government agency for health services or private partnership of physicians (nations where
private practice is allowed). Clinics generally provide only outpatient services.
DEPARTMENTS
Hospitals vary widely in the services they offer and therefore, in the departments they have.
They may have acute services such as an emergency department or specialist trauma centre.
Burn unit surgery or urgent care. These may then be backed up by more specialist units such
as cardiology or coronary care unit, intensive care unit., Neurology, cancer centre and
obstetrics and gynaecology’s. Some hospitals will have outpatient departments and some will
have chronic treatment units such as behavioural health services, dentistry, dermatology,
psychiatric ward, rehabilitation services and physical therapy.
Common support units include a dispensary or pharmacy, pathology, radiology and on the
non-medical side there often are medical records departments and/or release of information
department.
Classification of Hospitals
Hospitals are classified into different types depending upon different criteria. Hospitals are
divided into:
1. Classification based on objectives.
2. Classification based on ownership
3. Classification based on system of medicine
ICM KANNUR 35
Classification Based on Objectives
Hospitals are classified into three categories based on objectives:
1. General hospitals
2. Specialty hospitals
3. Teaching-cum-research hospitals
Industry Structure A Segmentation
Hospital industry structure is complex in nature, as the industry can be looked from
different angles. Each hospital is distinct in its characteristics as it differs in structure,
functions, performance and the community it serves. Hospitals are normally classified into
different types depending upon criteria like, objectives, ownership and system of medicine.
The sections below attempt to elaborate the structure of hospitals in little more detail.
General hospitals
The main objective of these hospitals is to provide medical care where teaching and research
is secondary. General hospitals (Gl I) are well-known type of hospitals, which deal with all
kinds of diseases, injury and also has an emergency ward to deal with immediate threats to
health and capable to deliver emergency medical services. GH has major healthcare facilities
with large number of beds for intensive care and long-term treatment. The hospital is
equipped to take care of medical, surgical, maternity, and psychiatric cases, child birth, and
plastic surgery and usually has a resident medical staff. Example: government run hospitals,
primary healthcare centre, district and taluka hospitals
Example: Osmania General Hospital .and Gandhi General Hospital.
ICM KANNUR 36
Specialty hospitals
A specialty hospital is dedicated to specific subspecialty care like paediatric centres,
oncology centres, psychiatric hospitals and others. Patients will often be referred from
smaller hospitals to a speciality hospital for major operations, and consultations with
subspecialists. These hospitals have highly trained specialists, high-end technology and have
the round the clock services. These hospitals are able to do specialized tests, undertake
dialysis for acute renal failure, provide ventilation to patients with respiratory failure and
render intensive care to critically ill patients.
These hospitals undertake research and have adequate library facilities These hospitals
concentrate on a particular organ of the body and provide medical care in that field only e.g.,
cancer, dental, psychiatry hospitals. T.B. hospitals, etc
Teaching-c u m - research hospitals
The main objective of these hospitals is teaching based on research and the provision of
healthcare is secondary for example. All-India Institute of Medical Sciences,New Delhi, and
Post-Graduate Medical Education and Research Institute. Chandigarh.
Classification based on ownership
This classification is mainly based on the ownership of the hospital. It includes hospitals like
government, semi-government hospitals, voluntary agencies hospitals and private or
charitable hospitals. These hospitals provide healthcare services by charging nominal fee
from the patient. Many of these hospitals run their services with the help of government and
the funds provided by the industrialist.
ICM KANNUR 37
Government hospitals
These hospitals are government-run hospitals: they are either managed by central
government or stale government. One of the major purposes of these hospitals is to provide
free or charged healthcare services at a very nominal cost to poor people. J J Hospital in
Mumbai is an example of such a hospital. However, there are other hospitals like railway
hospital or defence hospital which are for providing healthcare services to the employees of
Railways and Defence of Government of India.
Semi-government hospitals
These hospitals are owned by semi-government organisations like Employees State
Insurance (ESI) hospital. Some of the hospitals in this category is managed by various
municipalities/gram panchayats. etc.
Voluntary agencies hospitals
These hospitals are run with the funds received from various industrialists, national and
international charity organisations. Specialists from different countries visit these hospitals
at regular intervals. Some examples include Sri SatvaSai super Speciality Hospitals in
Puttaparthi, Andhra Pradesh and Bengaluru, as well as Amrita Institute of Medical Sciences
and Research Centre in Cochin, Kerala.
Charity hospitals
In India, charity hospitals have become a popular way of giving back to the society. Many
industrialists have sought to serve the society by promoting hospitals. Such hospitals fall into
two categories: not-for-profit hospitals and free hospitals. Example: Christian Medical
college and hospital in Tamil Nadu.
ICM KANNUR 38
Classification Based on System of Medicine
In addition to allopathic, increasing number of patients are relying on Indian systems of
medicine such as Ayurveda. Homoeopathy and unani. The Indian systems of medicine are
recognised by the union government. Most states are actively involved in colleges that teach
Ayurveda, Homoeopathy and Unani.
In addition, many traditional systems prevail in India particularly in rural and agency areas.
Typically, the local priest or village head administers medicines made of locally-available
herbs. While the Indian systems of medicine certainly have their advantages, a majority of
rural population relies on these systems due to lack of allopathic facilities, low purchasing
power and illiteracy.
The Indian systems of medicine largely rely on herbs from the foot hills of Himalayas,
tropical regions of Vindhva Mountains, Western Ghats and the north-eastern part of India.
These herbs form the basis for a range of medicines such as decoctions, powders and liquids,
in addition to herbs, other sources are also used to prepare medicines in the Indian systems
of medicine.
Allopathic
Allopathy based on science is widely practised medical system driven by the Western
hemisphere. In allopathy, treatment is based on drugs having opposite effects to existing
symptoms. Each drug in allopathy is a result of extensive research. Allopathy has been
responsible for increasing life expectancy worldwide.
Ayurvedic
This is an ancient system of treatment in India. Ayurveda is a science of life system, which
deals with causes, symptoms, diagnoses and treatment based on all aspects of wellbeing:
ICM KANNUR 39
mental, physical and spiritual. Ayurveda, which started as a supernatural-cum religious
practice, matured into a fully developed medical science with eight branches that have parallels
in the modern system of medicine.
Presently, the system is re-orienting itself to modern scientific parameters.
The following are Ashtanga Ayurveda
1. Internal Medicine (Kava Chikilsa)
2. Paediatrics (KcnnnarBhrilya)
3. Psychiatry (BhoolViilya)
4. Ophthalmology (Shalakya)
5. Surgery {Shalva)
6. Toxicology {AgadTanirci)
7. Geriatrics {Rusayana)
8. Eugenics and Aphrodisiacs (Vajikarana)
Homeopathic
Homoeopathy is also one of the ‘oldest systems of treatments in India. The Word
'Homoeopathy' is derived from two Greek words. Tomeis' meaning similar and 'pathos
meaning suffering homoeopathy involves treating diseases with remedies, prescribed in
minute doses, which are capable of producing symptoms similar to the disease when taken
by healthy people Presently, homoeopathy is a rapidly-growing system, known as the world,
In India Homoeopathy is popular due its safety and lack of side effects.
A study indicates that about 10% of the Indian population depends solely on Homoeopathy
for health problems. The system is older than a century and a half, well integrated into the
ICM KANNUR 40
roots of the country. 'Small wonder', it has been recognised as one of the National Systems
of Medicine. Homoeopathy plays an important role in providing healthcare to a large number
of people.
INTRODUCTION OF CO-OPERATIVE SOCIETY
The word ‘co-operation’ is derived from the Latin word "Cooperate" which means ‘working
together'. Generally, it implies living and working together. All organization of the society
ranging family to nation, are build up on the strong foundation of co-operation can be local,
regional, national or international, there was no period in human history when people decide
to work without co-operation.
At present the word 'co-operation' had gone beyond its general sense meaning of working
together. Now it presents to comprehensive concept. It is linked generally with an economic
organization there for co-operation is not merely a feeling of human being for the attainment
of their common economic requirement.
To co-operative movement was originated in England in 1844. The intent organization was
formed by group of flannel weaver. At his time the weavers in England were badly exploited
by the capitalist they found that co-operation is the only way of solution.
Definition
According to C.R. Ray, "co-operation is an association for the purpose of joint trading
originating among the week and conducted always in an unselfish spirit on such terms that
all are prepared to assume the duties of membership by share its reward in promotion to the
degree in which they may use their association”.
ICM KANNUR 41
CO-OPERATIVE HOSPITAL IN KERALA
In Kerala co-operative sector as, remarkable progress is providing health care service. There
cooperative hospitals have achieved organizational growth arising out locally felt needs and
initiatives shown by local leadership. The first hospitals in Kerala come in to being on 14
may 1969 in Thrissur. The venture was very successful and set in motion trend for the
formation of number of co-operative hospitals in Kerala. The Govt of Kerala also comes out
with certain promotional scheme for the formulation of hospital in co-operative sector. Once
was for the provision of one-time subsidy on selected investment such as purchase of
equipment and share capital assistance. The other was launching of a pilot project the
establishment if panchayath level dispensaries in 1973 with similar assistance. As a result of
this a number of hospital and dispensaries come up in the co-operative sector throughout
Kerala.
ICM KANNUR 42
3.2 COMPANY PROFILE
Indira Gandhi Co-operative Hospital (a unit of Mambaram co-operative hospital society
ltd.c.952) is functioning at Manjodi, Thalassery, Kannur, Kerala. Indira Gandhi Cooperative
Hospital opened its doors in 1990. to usher in a new era in sophisticated and specialized
medical care at affordable costs housed in a magnified 5 storey structure. The new building
with bed strength of 350 become functioning in 1999And now almost 280 peoples working
in this hospital. However, the institution was known for its dedicated care of patient at all
levels. The warm ambience, highly competent and dedicated doctor's well-trained an
experienced nursing staff along with dependable laboratory. The medical team has been
handpicked based on their skills, reputation and popularly. I their dedication and commitment
together with facilities make this hospital special place for total care.
Indira Gandhi Co-operative Hospital has 24 hours causality, pharmacy, accident care unit,
X-ray unit, laboratory, ultra sound scanning unit, intensive care unit (ICU). Intensive critical
care unit (ICCU) and separate paediatric ICU with all facilities. Other departments such as
General Medicine concerned with restoring and preserving health by means of remedial
substances. Neurology pertaining to nerve systems, cardiology, pediatric surgery,
orthopaedics, anaesthesiology, gynecology and ophthalmology. All major and minor
surgeries for voice problems, nasal endoscopic surgeries and all other routine in I surgeries
are performed.
The hospital has two main operation theatres, which are well equipped with sophisticated
operating microscope, lightining systems oxygen and suction systems, an anaesthesia
machine, monitors and electro surgical countries. The hospital has a pharmacy within its
premises where all sorts of medicines are available. Moreover, the hospital takes effort to
maintain cleanliness and hygiene to maximum extend.
ICM KANNUR 43
MISSION
Indira Gandhi Co-operative Hospital is a medical institution dedicated to providing quality
patient care with unrelenting attention to clinical excellence, patient safety and an unparallel
passion and commitment to assure the very best healthcare for those we serve.
"Quality health service at affordable price."
VISION
A hospital which the community recognizes as being sensitized to their needs even in their
most vulnerable capacity. Humane conduct without compromising on quality health care.
QUALITY POLICY
The Indira Gandhi hospital is committed to provide excellent quality health care at affordable
cost to the public. This shall be achieved through dedicated services of all staff of the
hospital. The management fully supports this policy with all necessary resources. "'Service
to the society" is the motto of the hospital.
ICM KANNUR 44
ORGANIZATIONAL STRUCTURE
CHAIRMAN
GENERAL MANAGER
ADMINISTRATIVE
OFFICER
ASSISTANT ASSISTANT PUBLIC NURSIN

MANAGER MANGER RELATION G SUPT
OFFICER
PURCHASE PHARMACY GENERAL

ISSUES HEAD
&HOSPITAL NURSE
WORK
LAB MOTIVATIO
INCOME TAX
&SALES TAX N
WARD IN
CHARGE
SECURITY
GENERAL
STORE SWEEPERS
&PHARMACY RECEPTION
COUNTER
WARD BOY
LIFT
OTHER STAFFS
ICM KANNUR 45
The Indira Gandhi co-operative hospital provides a variety of services to its patients. It is
geared to handle an extensive range of medical and surgical problems. The services of
various Residential Medical Officers are also available at the hospital.
LAPROSCOPY, KEYHOLE SURGERY, PHYSIOTHERAPY, OPERATION
THEATRE, INTENSIVE CARE SERVICE, EMERGENCY SERVICE, RADIOLOGY
SERVICES, ULTRA SOUND SERVICES, PHARMACY, RECEPTION, ECG, EEG,
THREADMILL. ELISA TEST, ENDOSCOPY.CYSTOSCOPY
FACILITIES PROVIDED BY THE INDIRA GANDHI COOPERATIVE HOSPITAL
Room facility
The hospital offers rooms to patients with all facilities including general wards rooms a/c.
deluxe room non a/c and ordinary room. Other facilities are laboratory, incubator, free
treatment insurance scheme, canteen, rehabilitative facilities, integrated counselling and
testing centre, outpatient’s department.
DEPARTMENTS AT THE INDIRA GANDHI CO-OPERATIVE HOSPITAL
l) SUPER SPECIALITY DEPARTMENT
➢ Department of cardiology
➢ Department of neurology
➢ Department of urology
➢ Department of neuro surgery
➢ Department of paediatric surgery
➢ Department of endocrinology
ICM KANNUR 46
➢ Department of rheumatology
➢ Department of gastroenterology
2) SPECIALITY DEPARTMENT
➢ Department of paediatrics
➢ Department of general surgery
➢ Department of gynaecology
➢ Department of medicine
➢ Department of pulmonology
➢ Department of orthopaedics
➢ Department of ENT
➢ Department of ophthalmology
➢ Department of dermatology
➢ Department of radiology
➢ Department of anaesthesiology
➢ Department of psychology
➢ Department of psychiatry
➢ Department of Pathology
➢ Department of dental
ICM KANNUR 47
SCANNING DEPARTMENT
➢ CT-scanning
➢ MRI scanning
➢ Ultra sound scanning X-ray unit
ICM KANNUR 48
HR DEPARTMENT
STRUCTURE OF HR DEPARTMENT
GENERAL MANAGER
PERSONNEL
ADMINISTRATION
ADMINISTRATION
PUBLIC RELATIONS SECURITY CHIEF
EXECUTIVE
CANTEEN
OFFICE ASSISTANT SECURITY GUARD
SUPERVISOR
HELPER COOK
ICM KANNUR 49
Indira Gandhi co-operative hospital has a good HR department and it maintains good
relations with the employees. This helped the company to achieve tremendous growth. All
the employee’s related activities are managed by this department. The hospital is working
under the control of president.
The president delegates the authorities to the general manager and administrative officer.
The general manager and administrative officer looks after the HR department function. The
hospital has 105 permanent and 128 temporary employees.
Working hours:
Office time: morning 9am-6pm
Evening 6pm-9pm
For nurses there are three shifts:
7.30am - l .30pm
1.30pm - 7.30pm
7.30pm - 7.30 pm
ICM KANNUR 50
FUNCTIONS OF HR DEPARTMENT AT INDIRA GANDHI COOPERATIVE
HOSPITAL
1) RECRUITMENT
Recruitment is a process of searching for and obtaining applicant for jobs from among whom
the right candidates can be selected. Recruitment process is done after the job analysis and
the job design which specifies the task and duties of job and qualification expected from the
respective job holders. In Indira Gandhi cooperative hospital the HR department has a clear-
cut recruitment planning. For this they give advertisement in newspaper. After collecting all
applications, department sorts these applications and call up the right candidate for the
interview. The hospital should maintain the co-operative rules while recruitment.
2) INTERVIEW AND SELECTION
After screening the test, candidates are called for the interview. For the post of office staff
and managerial position written tests are conducted with the help of experts in the field. The
short-listed candidates will be called After interview. The employees are selected on the basis
of cooperative society's act. The interview panel consists of GM, department head &
administrative manager.
3) INDUCTION
The process of induction carried out to help a new employee overcome the sense of
strangeness. This process involves induction to the organization, its objective, policies and
practices. The employees are given a handbook containing the work to be carried out by
him.
ICM KANNUR 51
4) TRAINING AND DEVELOPMENT
Training and development refer to the importing of specific skills, abilities and knowledge
to an employee. The hospital is not conducting any training programs. But in the case of
waste management the nurses and sweepers are given training by employing the service
of private agencies and after successfully completing the training program the candidate is
awarded certificate. The key to a good employee relation program is communication channel
that gives the employee to access important information and an opportunity to express their
ideas and feelings. The supervisors are familiar with employment policies employees aware
of their right and this leads to lessen for misunderstanding.
5) COMPENSATION OF EMPLOYEES
EMPLOYEE REMUNERATION
Sec 80 of Kerala co-operative societies act specifies the rules to be followed by
compensation. Remuneration of employee occupies an important place. Remuneration is the
compensation an employee receives in return for his or her contribution the organization.
Wages and salary
Salary is paid with pay slip, which contains details of the pay. At the time when the employee
receives salary should sign on the copy of the pay slip and it is filed in the department.
ICM KANNUR 52
Dearness allowances
It is the allowance paid to employees in order to enable them to face the increasing dearness
of essential commodities. Kerala state rules give the percentage of DA.
Fringe benefits
Welfare fund pension and all other fringe benefits are fixed under the control of the registrar
of the co-operative society.
Provident fund
This benefit is meant; for economic welfare of the employee. The company contributes
12.5% in the employee provident fund scheme.
Pension
The hospital gives 1.67% of employee salary as pension,
Bonus
The employees of the hospital are given bonus for certain festivals like onam, vishu,
Christmas, new year etc. The minimum bonus is 8.33%. The bonus given depends
Labour welfare fund
Rsv4 contributed by staff and Rs.8 contributed by the co-operative society every 6 months.
Therefore, a total of Rs. 12 is kept aside as labour welfare fund.
Employee welfare fund
Every year the staff and co-operative society make an equal contribution of Rs.50 towards
the employee welfare fund.
ICM KANNUR 53
6) PROMOTION
A change for better prospects from one job to another is deemed by the employee as
promotion. The promotion period for the entire employee is up to 2 years. Seniority is taken
as the base for promotion. If two people have joined on the same day their age will be
considered.
After 10 years a grade will be assigned if no post is free for promotion.
1. LEAVE
Proper leave facilities are granted to the employees in order to reduce their absence leave.
In a year, 20 casual leave are given.
In a year,10 days medical leave.
In a year, 20 days half day leave.
For every 1 1 days, I day leave.
The office staff gets leave on government holidays and Sunday.
2. HEALTH SERVICE
Absence due to illness of an employee affects the hospital service to the patients and causes
lots of pay to the individual employees. The hospital provides free health treatment to
employee on basis of their share in hospital.
ICM KANNUR 54
7) EMPLOYEE WELFARE
Employee welfare plans form an integral part of all scheme. A meeting is conducted in 3–
6-month period to discuss the problems and grievances of the employee and thereby solve
their problems immediately. It is helpful to increase the employee working efficiency.
8) CANTEEN
The hospital has canteen for employees and patients. For drinking water, coolers are also
installed in the company whenever necessary
ICM KANNUR 55
AGE GROUP OF THE RESPONDENTS
TABLE NO 4.1
PARTICULARS NO OF RESPONDENTS PERCENTAGE
BELOW 25 4 8
25-35 24 48
35-45 18 36
ABOVE 45 4 8
TOTAL 50 100
Source: Primary data
CHART NO 4.1
AGE GROUP OF THE RESPONDENTS
50
40
Percentage
30 PERCENTAGE
20
10
0
BELOW 25 25-35 35-45 ABOVE 45
Age group of the respondents
INTERPRETATION
It is observed from the above table that 48%respondents falls under the age group of 25-
35,36% of the respondents falls under the age group of 35-45, 8% of the respondents falls
under the age group 45. Hence it can be referring that majority of the employees of
INDIRA GANDHI COOPERATIVE HOSPITAL are aged below 25-35 years.
ICM KANNUR 56
GENDER OF THE RESPONDENTS
TABLE NO 4.2
PARTICULARS 2O OF RESPONDENTS PERCENTAGE
MALE 34 68
FEMALE 16 32
TOTAL 50 100
CHART NO 4.2
Gender of respondents
80
60
Percentage
PERCENTAGE
40
20
0
MALE FEMALE
Gender of respondents
INTERPRETATION
It is observed from the above table 68% of the respondents are males and 32% are female
out of the sample.
ICM KANNUR 57
MARTIAL STATUS
TABLE NO 4 3
MARRIED 36 72
UNMARRIED 14 28
TOTAL 50 100
CHART NO 4.3
Martial Status
80
70
60
percentage
50
40 PERCENTAGE
30
20
10
0
MARRIED UNMARRIED
martial status
INTERPRETATION
It is seen from the above table that 72% of the respondents are married and 28% are
unmarried.
ICM KANNUR 58
EDUCATIONAL QUALIFICATION
TABLE NO 4.4
SSLC 15 30
DIPLOMA 20 40
GRADUATE 15 30
TOTAL 50 100
CHART NO 4.4
Educational qualification
45
40
35
30
Percentage
25
20
PERCENTAGE
15
10
5
0
SSLC DIPLOMA GRADUATE
Educational qualification
INTERPRETATION
From the above table it is seen that 40% Of respondents are having educational
qualification in diploma and 30 % are graduates and 30 % are SSLC.
ICM KANNUR 59
EXPERIENCE OF EMPLOYEES
TABLE NO 4.5
YEARS NO OF RESPONDENTS PERCENTAGE
LESS THAN 1 YEAR 24 48
1-3 YEARS 10 20
MORE THAN 3 YEARS 16 32
TOTAL 50 100
CHART NO 4.5
Experience of employees
60
50
40
Percentage
30
20 PERCENTAGE
10
0
LESS THAN 1 YEAR 1-3 YEARS MORE THAN 3 YEARS
Experience of employees
INTERPRETATION
Hence it is interfered that majority of the employees (48%) is having less than one of
experience,20% having 1 to 3 years and 32% having more than 3 years of experience
ICM KANNUR 60
KNOWLEDGE ABOUT PERFORMANCE APPRAISAL
TABLE NO 4.6
YES 47 94
NO 3 6
TOTAL 50 100
CHART NO 4.6
Knowledge about performance appraisal
100
80
Percentage
60
40
PERCENTAGE
20
0
AWARE UNAWARE
Knowledge about performance appraisal
INTERPRETATION
Hence it is interfered that majority of the employees of Indira Gandhi co-operative hospital
are aware of the performance aoppraisal.it is presumed that awareness about performance
appraisal indicates its effectiveness.
ICM KANNUR 61
FREQUENCY OF PERFORMANCE APPRAISAL
TABLE NO 4.7
QUARTERLY 49 98
HALF YEARLY 1 2
TOTAL 50 100
CHART NO 4.7
Frequency of performance appraisal
120
100
Percentage
80
60
40 PERCENTAGE
20
0
QUARTERLY HALF YEARLY
Frequency of performance appraisal
INTERPRETATION
It is noted from the above table that 98% of the respondents are of the view that
performance appraisal is carried out on quarterly basis and only 2% of the respondents are
of the view that appraisal is carried out on half yearly basis
ICM KANNUR 62
ROLE OF PERFORMANCE APPRAISAL
TABLE NO 4.8
ON THE BASIS OF MERIT RATING 39 78
SENIORITY 11 22
TOTAL 50 100
CHART NO 4.8
Role of performance appraisal
80
70
60
Percentage
50
40
30
20
10 PERCENTAGE
0
ON THE SENIORITY
BASIS OF
MERIT
RATING
role of performance appraisal
INTERPRETATION
It is noted from the above table that 78% of the respondents are of the opinion that
performance appraisal is based on merit rating and 22% of the respondents are of the view
that appraisal is carried out on the basis of seniority
ICM KANNUR 63
SCOPE/PURPOSE OF PERFORMANCE APPRAISAL
TABLE NO 4.9
BEHAVIORAL 12 24
FUNCTIONAL 15 30
PROMOTIONAL 2 4
TRAINING AND DEVELOPMENT 3 6
ALL THE ABOVE 18 36
TOTAL 50 100
CHART NO 4.9
Purpose of performance appraisal
40
Percentage
30
20
10
0
PERCENTAGE
Purpose of performance appraisal
INTERPRETATION
Hence it is interfered that majority of the employees of Indira Gandhi co-operative hospital
are aware of the view that performance appraisal. Carried out in the organisation helps to
meet several objectives.
ICM KANNUR 64
APPRAISAL METHOD
TABLE NO 4.10
360 DEGREE METHOD 50 100
TOTAL 50 100
CHART NO 4.10
Appraisal method
100%
90%
80%
70%
Percentage
60%
50%
40% PERCENTAGE
30%
20%
10%
0%
360 DEGREE METHOD
Appraisal method
INTERPRETATION
It is observed from the above table 100% of the respondents are of the v view that 360-
degree method is used for performance appraisal.it is presumed that the use of 360-degree
appraisal is an effective method of performance appraisal in hospital.
ICM KANNUR 65
PERCEPTION TOWARDS PERFORMANCE APPRAISAL METHOD
TABLE NO 4.11
GRADING METHOD 10 19
RANKING METHOD 5 36
360 DEGREE METHOD 35 45
TOTAL 50 100
CHART NO 4.11
Perception Towards Performance Appraisal Method
50
Percentage
0
PERCENTAGE
GRADING
METHOD RANKING
METHOD 360 DEGREE
METHOD
Perception Towards Performance Appraisal Method
INTERPRETATION
It is observed from the above table 19% of the respondents perception towards grading
method of performance appraisal system, 36 % are of the respondents have perception
towards ranking method and 45% of the respondents have perception towards 360 degree
method.
ICM KANNUR 66
SENSE OF FULFILLMENT
TABLE NO.4.12
OPTIONS NO OF RESPONDENTS PERCENTAGE
STRONGLY AGREE 39 78
AGREE 3 6
STRONGLY DISAGREE 7 14
DISAGREE 1 2
TOTAL 50 100
CHART NO 4.12
Sense of fulfillment
DISAGREE
Percentage
STRONGLY DISAGREE
AGREE
STRONGLY AGREE
0 10 20 30 40 50 60 70 80
Sense of fulfillment
INTERPRETATION
From this it is clear that 78% of the respondents strongly agree that performance appraisal
gives them a sense of fulfilment whereas 6% agree,14% strongly disagree and 2% disagree
that performance appraisal doesn’t give a sense of fulfilment
ICM KANNUR 67
PERFORMANCE APPRAISAL REPORT HELP YOU IN IDENTIFYING TRAINING &
DEVELOPMENT NEEDS
TABLE NO 4.13
PERFORMANCE APPRAISAL 46 92
HELPS TO IDENTIFY
TRAINING &DEVELOPMENT
NEEDS
TRAINING &DEVELOPMENT 4 8
NEEDS ARE NOT IDENTIFIED
TOTAL 50 100
CHART NO 4.13
Performance Appraisal Report Help You In Identifying Training &
Development Needs
Percentage
100
50
0
PERCENTAGE
PERFORMANCE APPRAISAL HELPS TO
IDENTIFY TRAINING & DEVELOPMENT
TRAINING& DEVELOPMENT NEEDS
NEEDS
ARE NOT IDENTIFIED
Performance Appraisal Report Help You In Identifying Training

& Development Needs
INTERPRETATION
From this table it is clear that 92% of employees feels, performance appraisal system is
more helpful in identifying training needs development needs and 8% of employees thinks
that performance appraisal system doesn’t helps in identifying training needs development
needs
ICM KANNUR 68
SATISFIED WITH EXISTING PERFORMANCE APPRAISAL SYSTEM
TABLE NO 4.14
AGREE 28 56
NEUTRAL 6 12
DISAGREE 2 4
TOTAL 50 100
CHART NO 4.14
Satisfied With Existing Performance Appraisal System

60
50
percentage…
Percentage
40
30
20
10
0
strongly agree agree neutral disagree
Satisfied With Existing Performance Appraisal System
INTERPRETATION
It is evident that 28% of employees strongly agree with the statement,56% of employees
agree with the statement, 12% of employees neutral with the statement and 4% of
employees strongly disagree with the statement and 0% of the employees disagree with
the statement that are you satisfied with existing system of performance appraisal
ICM KANNUR 69
MOTIVATION TO PERFORM BETTER IN THE JOB
TABLE NO 4.15
PARTICULARS NO OF PERCENTAGE
RESPONDENTS
YES 38 76
NO 12 24
TOTAL 50 100
CHART NO 4.15
Motivation To Perform Better In The Job
100
Percentage
50
PERCENTAGE
0
YES
NO
Motivation To Perform Better In The Job
INTERPRETATION
It is presumed that appraisal system that motivates employees perform better at their job
indicates the efficiency of the performance appraisal system followed at hospital. The
appraisal system is likely to have gained acceptance of majority of the employees of the
organisation.
ICM KANNUR 70
ACHIEVEMENT OF GOALS
TABLE NO 4.16
YES 37 74
NO 13 26
TOTAL 50 100
CHART NO 4.16
Achivements of Goals
80
70
60
Percentage
50
40 PERCENTAGE
30
20
10
0
YES NO
Achievement of Goals
INTERPRETATION
From the above table it refers that 74% of the respondents are of the view that performance
appraisal helps to achieve the goal and 26% of the respondents are of the view that not helps
to achieve the goal.
ICM KANNUR 71
EFFECTIVE COMPENSATION SYSTEM
TABLE NO 4.17
YES 38 76
NO 12 24
TOTAL 50 100
CHART NO 4.17
Effective Compensation System

80
70
60
Percentage
50
40
30
PERCENTAGE
20
10
0
YES NO
Effective Compensation System
INTERPRETATION
It is noted that from the above table 76% of the respondents are opinion that performance
appraisal helps in effective compensation system and 24% of the respondents are not
ICM KANNUR 72
PROPER FEEDBACK TO EMPLOYEES
TABLE NO 4.18
OPINION NO OF RESPONDENTS PERCENTAGE
YES 39 78
NO 11 22
TOTAL 50 100
CHART NO 4.18
PERCENTAGE
YES
NO
INTERPRETATION
It is noted from the above table 78% of the respondents are opinion that performance appraisal
helps in providing proper feedback to employees and 22% of the respondents are not.
ICM KANNUR 73
EXPECTATION ON POST APPRAISAL BENEFITS
TABLE NO 4.19
MONETORY 15 30
NON MONETORY 4 8
BOTH 31 62
TOTAL 50 100
CHART NO 4.19
PERCENTAGE
MONETORY NON MONETORY BOTH
INTERPRETATION
From the above table 30% of the respondent’s expectation on post appraisal benefits are
monitory ,8% are non-monitory and 62% are both.
ICM KANNUR 74
PERFORMANCE APPRAISAL BASED ON FAVOURISM

TABLE NO 4.20
YES 27 54
NO 23 46
TOTAL 50 100
CHART NO 4.20
Performance Apprisal Based On favourism

56
54
52
Percentage
50
48
46 PERCENTAGE
44
42
YES NO
Performance Apprisal Based On favourism
INTERPRETATION
It was inferred from the above table that 54% of the respondents are opinion that performance
appraisal is based on favourism and 46% of respondents are not.
ICM KANNUR 75
RELATIONSHIP BETWEEN THE MANAGEMENT AND EMPLOYEES
TABLE NO.4.21
AGREE 23 46
DISAGREE 4 8
TOTAL 50 100
CHART NO.4.21
Relationship between the management and employees

50
45
40
35
Percentage
30
25
20
15
10
5
0
Strongly agree Agree Disagree Strongly disagree
Relationship between the management and employees
Percentage
INTERPRETATION
It is identified that 42% of the respondents are opinion that performance appraisal helps in
strengthening relationship between management and employees and 46% agreed,8% disagreed
and 4 % are strongly agreed.
ICM KANNUR 76
PERFORMANCE RATING HELPS TO FIX INCREMENT
TABLE NO.4.22
AGREE 28 56
DISAGREE 1 2
TOTAL 50 100
SoSource: Primary Data

CHART NO.4.22
Performance rating helps to fix increment
60 Performance rating helps to fix increment

Percentage
40
20
0
Strongly
Agree
agree Strongly
disagree Disagree
Performance rating helps to fix increment
INTERPRETATION
It is identified that 56% of the respondents are opinion that performance appraisal rating
helps in fixing increment and 40% strongly agreed,2% disagreed and 2% are strongly agreed
ICM KANNUR 77
EMPLOYEES PERSONAL DEVELOPMENT AND WORK SATISFACTION
TABLE NO.4.23
AGREE 28 56
DISAGREE 4 8
TOTAL 50 100
CHART NO.23
PERCENTAGE
STRONGLY AGREE
AGREE
DISAGREE
STRONGLY DISAGREE
INTERPRETATION
It is observed that 32% of the respondents are strongly agreeing that performance appraisal
aims at employee’s personal development and work satisfaction, and 56% agreed,8% disagreed
and 4 % of the respondents are strongly agreed.
ICM KANNUR 78
CALCULATION OF CHI-SQUARE
Null hypothesis (HO): Employees are not satisfied with the current performance appraisal
system
Alternative hypothesis (H1): Employees are satisfied with the current performance appraisal
system
χ^2= ∑(O-E) ^2/E
CHI-SQUARE TABLE
O E (O-E) (O-E) ^2 (O-E) ^2/E
14 12.5 1.5 2.25 0.18
28 12.5 15.5 240.25 19.22
6 12.5 -6.5 42.25 3.3
2 12.5 -10.5 110.25 8.82
∑(O-E) ^2/E=31.6
Degree of freedom= (n-1)
The degree of freedom 3 @ 5% level of significance
Therefore, the calculated value =31.6
Table value= 7.815
RESULT:
CHISQUARE VALUE > TABLE VALUE
31.6>7.815
Thus, we reject null hypothesis and accept alternative hypothesis so we can conclude that
employees are satisfied with the current performance appraisal system.
ICM KANNUR 79
FINDINGS
The following are the findings derived from this research study “a study on
effectiveness of performance appraisal at Indira Gandhi co-operative Hospital, Thalassery:
• 48% of the respondents intended to fall under the age group of 25-35 out of 100 sample
maximum number of respondents ie,72% are married and 40 % of the respondents are
diploma holders
• 72%of the respondents are married and 48% of respondents have experience less than
one year
• 98% of the employees are satisfied with the duration(quarterly) of the performance
appraisal in the hospital
• 94% of respondents have knowledge about performance appraisal
• 78% of the respondents accepted that performance appraisal system is based on merit
rating
• From the study it is found that most respondents(ie;36%) with the overall objectives
of the performance appraisal such as behavioural, Promotional, functioning, training
and development
ICM KANNUR 80
• All the respondents (100%) accepted that 360-degree method is used for
performance appraisal in the hospital
• 92% of the respondents said that performance appraisal system helped them to
identity training and development needs of the employees in the hospital
• 45% of respondents have perception towards 360-degree method of performance
appraisal
• 78%of respondents agrees that performance appraisal helps to attain sense of
fulfilment
• 56% of the respondents are satisfied with the current performance appraisal method
followed in the hospital
• 74% of the respondents viewed that appraisal helped them to achieve their goals in
an effective manner
• 76% of the respondents accepted that only because of performance appraisal system
the effective compensation is being implemented in the hospital
• 76% of the respondents viewed that performance appraisal system had motivated
them to perform better in their job
ICM KANNUR 81
• 78% of the respondent viewed that performance appraisal gives timely feedback and
leads personal development of an employee
• 62% of respondents have expectations on post appraisal benefits i.e. Both
monitory and non-monitory
• 54% of respondents says that performance appraisal is based on favourism
• 46%of respondents agree that them exist a good relationship between management
and employees
• 56% of respondents agrees that performance rating helps to fix increment
ICM KANNUR 82
SUGGESTIONS
In the light of the major findings of the present research study, following are the suggestions
to improve the effectiveness of performance appraisal system at Indira Gandhi Co-operative
Hospital. This are as follows:
• The hospital should provide both monetary and non- monetary benefits as post appraisal
benefits
• Performance appraisal should not be based on favourism
• The hospital should make necessary modification in performance appraisal system to
motivate the employees to do the work in an effective manner
• Automation of performance appraisal system will increase the effectiveness of
performance in the hospital
• The hospital should take steps to retain the experienced employees
• If the hospital gives more concentration on performance appraisal system, they can
increase the success rate of training and development
ICM KANNUR 83
CONCLUSION
Indira Gandhi Co-operative hospital is well established and well-known super specialty
hospital locality, and has been performing well for the benefit of all classes of people in
the society. Performance appraisal helps to evaluate employee’s performance level and in
identify the gap .it plays a vital role in the hospital because performance appraisal feedback
motivates the employee to do this work in an effective manner and also to smoothen the
relationship between management and employees. The performance determines who is the
need person what kind of training is needed for the employees and makes the training and
development programme successful in the hospital
Concluded that the 360-degree performance appraisal method is effective in the company
and they have to improve the existing system of working culture, and also it has to take
effective measures to improve the standards of appraisal system in the hospital.
ICM KANNUR 84
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Appraisal Systems in Service Industry in India” Journal of General Management
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• Brown, M. & Heywood, J. S. (2005). Performance appraisal systems: determinants
and change. British Journal of Industrial Relations, 43(4), 659-679.
• Brown CL. A theory of the process of creating power in relationships. Nursing
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• Khan A. Performance appraisal ‘s relation with productivity and job satisfaction.
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Riyadh Region, Saudi Arabia” International Journal of Health Care Quality
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• Sher Singh Morodiya, Dr. Hemant Kothari and Dr. R.C. Banshiwal55 (2012)
“Performance Appraisal in Nursing” Contemporary Research in India: Vol: 2,
Issue: 2, June, 2012
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WEBSITES
https://igch.in
http://www.scribd.com/
http;//www.performance-appraisal.com/intro.htm
ICM KANNUR 88

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A Study on Effectiveness of Performance Appraisal System at Indira Gandhi Co-operative Hospital, Thalassery

mental and social well-being.

satisfaction and overall organization development

reviews of employee performance within organizations

the achievements of the overall organizational goals. By focusing the attention on

the management’s interest in the progress of the employees.

performance appraisal is a systematic and periodic process that assesses an individual

employee’s job performance and productivity in relation to certain pre-established criteria

and organizational objectives”. Effective appraisal system provides step-by-step guidance

organizations are service oriented organizations. Healthy environment is highly essential to

Appraisal system consists of Performance planning, monitoring performance, developing the

capacity to perform, assessing the employee’s performance, Reward and Recognition.

1.2 STATEMENT OF THE PROBLEM

Doctors, Nurses, Pharmacists, social workers and Patient care technicians.

and development needs in the hospital.

Significant number of Staffs were receiving appraisals in the hospital.

1.3 SCOPE OF THE STUDY

system in order to identify and fulfil the gap.

• To study the effectiveness of performance appraisal in Indira Gandhi Cooperative

• To identify whether performance appraisal helps in the personnel development.

• To assess the various methods to improve the performance appraisal system.

• To identify the satisfaction level towards training and development programme

provide by the company

• To give suitable suggestion to improve the performance appraisal system

• To know whether there is harmonious relationship between the employer and

1.5 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem.1t is understood

relevance to the research purpose

1.5.1 RESEARCH DESIGN

In this study descriptive research design was used.

1.5.3 SAMPLE SIZE

Pharmacists ,social workers and Patient care technicians.

1.5.4 SOURCES OF DATA

administering questionnaire to the workers directly and collecting the information.

In this study secondary data are collected from;

➢ Published sources such as journals, newspapers

➢ Unpublished sources such as hospital internal reports prepared by them

suggestions for improving them.

1. Personal details of the employees

2. Opinions of the respondents regarding the performance appraisal system in the

3. The questionnaire contains both open and close ended question

• Dichotomous Scale -Yes/No

1.5.5 TOOLS FOR ANALYSIS

Mainly 2 tools were used for analysis. They are:

The percentage analysis consists of reducing a number of related amounts to a series of a

if items or the relative change in items.

The percentage is calculated through the formula

Percentage (%) = (Number of people responded / Total number of respondents) * 100

Chi-Square values are found out by using the formula;

There; O= Observed frequency

1.6 PERIOD OF THE STUDY

1.7 LIMITATONS OF THE STUDY

❖ The time is inadequate to conduct a deep study.

❖ The company management keeps certain files, records and information as

❖ A certain degree of reluctance was shown by some of the employees in revealing

their opinions due to the fear for disclosure.

of the other majority.

1.8 CHAPTER SCHEME

The project report has been presented in following format.