Performance Appraial - Google New Edited
Performance Appraial - Google New Edited
Performance Appraial - Google New Edited
INTRODUCTION
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INTRODUCTION
The process of HRD helps the employees to acquire and develop technical,
managerial and behavioral knowledge, skills and abilities and moulds the values,
beliefs and attitudes necessary to perform present and future roles. The process of
Performance Appraisal & Counselling helps the employees and the management to
know the level of employee’s performance compared to the standard/pre-determined
level.
Under Performance Appraisal & Counselling we evaluate not only the performance
of a worker but also his potential for development. Some of the important features of
Performance Appraisal & Counselling may be captures thus:
Performance Appraisal & Counselling is the systematic description of an
employee’s job-relevant strengths and weaknesses. The basic purpose is to
find out how well the employee is performing the job and establish a plan of
improvement.
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Appraisals are arranged periodically according to a definite plan.
Performance Appraisal & Counselling is not job evaluation. Performance
Appraisal & Counselling refers to how well
someone is doing the assigned job. Job evaluation determines how much a job
is worth to
the organization and, therefore, what range of pay should be assigned to the
job.
Performance Appraisal & Counselling is a continuous process in every large
scale organization.
MEANING :
Performance Appraisal & Counselling is a method of evaluating the behavior of
employees in the work spot normally including both the quantitative and qualitative
aspects of job performance. Performance here refers to the degree of accomplishment
of the tasks that make up an individual’s job. It indicates how well an individual is
fulfilling the job demands. Often the term is confused with effort, but performance is
always measured in terms of results not efforts.
DEFINITION :
According to Randel S. Schuler “Performance Appraisal & Counselling is a formal
structured system of measuring and evaluating job related behavior and out comes to
discover how and why the employee is presently performing on the job, how
employee can perform more effectively and in society, all benefits. Performance
Appraisal & Counselling is a method of evaluating the behavior of employees in the
work spot normally including both quantitative an qualitative aspects of job
performance.”
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1.2 NEED OF THE STUDY
Performance Appraisal & Counselling is needed in order to provide information
about the performance ranks basing on which decisions regarding salary fixation
confirmation, promotion, transfer and demotion are taken.
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1.3 OBJECTIVES OF STUDY
The study was undertaken to analyze the methods used for the appraisal
program.
To assess how often Performance Appraisal & Counselling programmes are
conducted.
To study the important factors which are needed for Performance Appraisal &
Counselling .
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1.4 SCOPE OF THE STUDY
The scope of the study major purpose is description of the state of affairs existing at
present. The study is descriptive design, which includes surveys and facts. Study
helps to improve knowledge as well as skills.
Performance Appraisal & Counselling aimed for the betterment of the organization in
terms of quality as well as quantity and increase the productivity by increasing the
level of performance.
PERIOD OF STUDY
Made a study for the period of 5 years 2018-2021
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METHODOLOGY OF THE STUDY
The relevant data has been collected from the primary sources and secondary sources.
PRIMARY DATA : It is first hand data collected from questionnaire from the
employees. For this purpose of data collection, the questionnaire was circulated
among the employees to collect information.
RESEARCH METHODOLOGY
Discuss the research design, research problems, scope and significance of the study,
sources of data, questionnaire, sample design, statistical techniques used and
limitations of the study.
Data analysis: The primary data and secondary data collected are analyzed and are
shown in the form of bar diagram.
Source of data: The relevant data has been collected from the primary sources and
secondary sources. The primary data is collected by a questionnaire from the
employees. For this purpose of data collection, the questionnaire was circulated
among the employees to collect information. The secondary data is collected by news
paper, company journals, magazines, websites etc.
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Questionnaire administration
Questionnaire was prepared after consulting with Aditya Chandran , HR-Manager
(Google ). Though performance management system is wide concept, only a few
aspects were taken into consideration. The type of questionnaire used in this research
is close ended by using convenience sampling technique. A four point scale “strongly
agree to strongly disagree” was used for this purpose.
Sample design:
A sample of 100 respondents was taken using random sampling. The researcher
contacted the executive personally and brief summary of the nature of the study and
details in the questionnaire were narrated to them.
Period of study:
The present study had been undertaken for period of 45days, in which it had divided
into three stages as such. Stage I is of research problem and collection the literature of
the topic chosen. Stage II is of analysis and interpretations by using different
statistical tools. Stage III is of findings and recommendations.
Unfavorable choices. The rating scale of most of the questions is a Forced Choice
Rating Scale which requires the associates to select one of the offered alternatives.
But for some questions where a majority of the associates are undecided, the scale is
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an Unforced Choice rating Scale which provides the associates with an opportunity to
express No Opinion when they are unable to make a choice.
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LIMITATIONS
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CHAPTER – II
REVIEW OF LITERATURE
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2.1 REVIEW OF LITERATURE
1. According to Biswajeet Pattanayak (2006), organizations are run and steered
by people. It is through people that goals are set and objectives realized. The
performance of an organization is thus dependent upon the sum total of the
performance of its members. The performance of an employee in his resultant
behavior on task which can be observed and evaluated. It refers to the
contribution made by an individual in the accomplishment of organizational
objectives. Performance can be measured by some combination of quality,
quantity, time and cost. People do not learn unless they are given feedback to
take place, feedback must be provided regularly and it should register both
successes and failures and should follow soon after the relevant actions.
Performance Appraisal & Counselling system provides management an
opportunity to recall as well as feedback to people as to how they are doing, so
that they can correct their mistakes and acquire new skills. Performance
Appraisal & Counselling refers to all those procedures that are used to
evaluate the Personality, the performance and the potential of its group
members. Evaluation is different from judgment the former being concerned
with performance, the latter with person while evaluation deals with
achievement of goals; judgment has an undercurrent of personnel attack and is
likely to evoke resistance.
2. According to Arun Monappa and Mirza S Saiyadain (2007), the purpose of
Performance Appraisal & Counselling is to determine what aspects of
performance need to be evaluated; a distinction has to be made between
performance and the job and potential for upward mobility. Sometimes only
the potential i.e. the ability of the individual and his capacity for development
is evaluated. However in most cases raters are asked to assess both areas. To
evaluate is to assess the worth of value. In social life, we generally evaluate or
appraise the behavior of others in relations to our own need or goals.
Appraisals are judgments or the characteristic, traits and performance of others
.On the basis of these judgments we assess the worth or value of others, and
identify what is good and bad.
3. According to R.S.Dwivedi (1997), the Performance Appraisal & Counselling
like every other personnel function, forms eventually a line responsibility,
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although involving the staff assistance and advice. At the very outset, it may
be pointed out that Performance Appraisal & Counselling is a continuous
function and not merely an issue of formal reports at particular points in time.
It is an ongoing responsibility of the supervision to determine how effectively
his subordinates are performing different tasks allotted to them in their
positions, to identify and correct their weak points and to recommend to
higher positions in the organization. Performance Appraisal & Counselling
which seems to involve the “comparison of performance measures of different
individuals holding similar areas of work responsibilities and relate to
determination of worth of the measures for the accomplishments of the
organizational goals”.
4. According to Manish Agarwal, Smita Gupta (2007), one of the most debated
human resource development mechanisms that could go a long way in
systematically increasing the performance level of an individual as well as of
the organization is the Performance Appraisal & Counselling system (PAS).
Appraisal effectiveness refers to how well the appraisal system is operating as
a tool for the assessment of work performance. Performance Appraisal &
Counselling should be carried out with a view to increasing the consistency,
fairness and accuracy of employee appraisal because the information
generated from such Performance Appraisal & Counselling programmes is
generally used to implement certain administrative and development decision
regarding selection, placement, promotion ,appraisal rewards, termination, and
training development. In the recent past, research studies have shown that only
a few organizations are satisfied with their existing Performance Appraisal &
Counselling system and that dissatisfaction is growing. Although research for
the perfect Performance Appraisal & Counselling has been going on for
decades researchers have found widespread dissatisfaction among most
organizations surveyed. Parther (1974) stated that if a new appraisal system is
developed with an objective to correct some or all the appraisal problems, the
newly designed system invariably becomes ineffective within two or three
years. Research also indicates that the perception, feelings and attitudes of
appraise with respect to the effectiveness of overall appraisal system practices
and appraiser / supervisor behavior may change over a period of time and this
has attracted the interest of many practitioners and researchers and alike.
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5. According to Aftab A Niazi (2008), the term performance management refers
to a set of activities, approaches system that would lead to achievement of
goals and objectives of an organization, a department or of an individual
employee. Employee performance management process includes establishing
performance goals; developing performance plans; establishing and acting
upon the mechanism for observation and feedback; identifying performance
problems; developing improvements / development plans. It also involves
evaluating and rewarding performance and taking administrative decision. The
individual’s level of performance requires clarifying expectations (which
essentially means setting up goals and objectives) and providing necessary
support and guidance (by previous of resource, getting decision made at higher
levels or getting action taken at lateral levels). Individual’s effort and ability
are not the only factors that determine a level of performance. It may be
argued that Performance Appraisal & Counselling also assist decisions on
rewards and taking administrative decisions, in fact performance management
would necessary include the system of deciding on rewards. Once a topic has
been decided, it is essential to review all relevant materials which have a
bearing on the topic. In fact, review of literature begins with a search for
suitable topic and continues throughout the duration of the research work.
Since a research report, either a dissertation or a thesis, is supposed to be an
in-depth study of and contribution to existing knowledge, a careful check
should be made that the proposed study has not previously been carried out.
The study of Performance Appraisal & Counselling and training programmes
has attracted many of the researchers and practitioners. There has been
continuous research in the field of sugar industries and its methods, appraisal
time, appraisal meeting, training programmes and their benefits in the
industry. Though there is no dearth of document any evidence in the field of
sugar industries, studies, particularly in Performance Appraisal & Counselling
and Training Programmes are rare. It is a field in the preschooler stage in
India, when compared to other countries in the west. However, the available
contributions from the following authors and researchers have been reviewed
and a brief account of the review is given in this chapter.
6. Cummings (2008)1 in an article titled, “A Field Experimental Study of the
Effects of Two Performance Appraisal & Counselling Systems”, reported the
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results of a field experiment designed to test the effects of manipulating
several elements of an operative level Performance Appraisal & Counselling
system. First, the multipurposive nature of appraisal in formal organizations is
discussed. This is followed by a brief overview of the literature on
Performance Appraisal & Counselling . The design and results of the study at
hand are then discussed.
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for rating format and content changes. Some have even suggested the
elimination of appraisal. More recently, an identifiable body of knowledge
which seriously casts doubt on the use of supervisor’s judgment in evaluating
employee performance has begun to emerge. The purpose of this paper is to
explore this emerging body of knowledge and to examine its ramifications for
Performance Appraisal & Counselling .
11. Allinson (2010)6 in his paper describes a study of the effects of a training
course on Performance Appraisal & Counselling interviewing. Managers who
had attended the course were asked, by means of a postal questionnaire, to
compare their pre-training and post-training interviewing performances. There
were three important findings. First, that the trainees had improved on almost
every aspect of appraisal interviewing; secondly, it is not just the skill of
interviewing which is important, but also an understanding of the role of
Performance Appraisal & Counselling ; and finally, managers in mid-career
may have the most to gain from training of this type.
12. Decotiis and Petit (2010)7 in their article titled, “The Performance Appraisal
& Counselling Process: A Model and Some Testable Propositions”, present a
literature-based model of the determinants of the accuracy of performance
ratings. The model indicates that the major determinants of accuracy are: (a)
rater motivation; (b) rater ability; and (c) availability of appropriate
judgmental norms. Several propositions and suggestions for further research
are derived from the components of the model.
13. Wilsted and Taylor (2010)8 in their article titled, “Identifying Criteria for
Performance Appraisal & Counselling Decisions” states that appraising
employee performance has long been regarded as an important part of the
management function, for purposes of salary administration and recognizing
future management potential. More recently Performance Appraisal &
Counselling has been recognized for its value as one of the several tools
available to organizations for employee motivation. Central to such
programmes as 'Management by Objectives,' for example, is the motivational
value of participatively developed goals, clearly communicated and supported
with a clear and accurate perception by the subordinates regarding the criteria
to be applied in appraising his/her performance against those goals. Indeed,
what is perceived by individuals is often more important than 'reality' in
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influencing behaviour. Selective filtration by superiors and subordinates
depends on the trust established, and serves to set expectations for
performance in the work environment. Individuals function on the basis of
perceptions. Accurate perceptions of the Performance Appraisal &
Counselling criteria by those being evaluated is essential to the motivational
objectives of appraisal. Yet, even in the most formal rating programmes, the
ratee's perception of appraisal criteria often varies widely from that actually
employed.
14. Kleiman and Durham (2010)9 in their article titled, “Performance Appraisal &
Counselling , Promotion and the Courts: A Critical Review”, reviewed
twentythree Title VII court cases in order to determine the standards set by the
courts in their assessment of Performance Appraisal & Counselling systems
when used as the basis for promotion decisions. The topics covered were
adverse impact determination, the courts' adjudication strategy, and the
evidence needed to justify the Performance Appraisal & Counselling
procedures. Among the major findings were the courts': (1) failure to adhere to
the “applicant flow technique” of adverse impact determination, (2) interest in
assessing Performance Appraisal & Counselling systems regardless of their
adverse impact, (3) ignorance regarding
15. Venclova Katerina (2013)The article focuses on employee Performance
Appraisal & Counselling methods used in Czech agricultural enterprises. The
first section of the article looks into the theoretical underpinnings of the term
"formal appraisal" as well as employee Performance Appraisal & Counselling
methodologies as described by Czech and international experts. Furthermore,
the paper provides staff Performance Appraisal & Counselling methodologies
that are regarded relevant for agricultural enterprises in the Czech Republic,
based on a questionnaire study.
16. Ashima Aggarwal, Gour Sundar Mitra Thakur (2013)performed a review of
Performance Appraisal & Counselling methods Ranking, Graphic Rating
Scale, Critical Incident, Narrative Essays, Management By Objectives,
Assessment Centers, BARS, 360 Degree, and 720 Degree are some of the
Performance Appraisal & Counselling approaches discussed, as well as their
benefits and drawbacks. The traditional method of Performance Appraisal &
Counselling or the modern method of Performance Appraisal & Counselling
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are used by the organisations. Organizations utilise a Performance Appraisal
& Counselling system to assess the efficacy and efficiency of their personnel.
17. Rocio de Andres (2014)looked into Distance function approaches are used to
evaluate performance. Some companies use Performance Appraisal &
Counselling to analyse their employees' efficiency and production in order to
plan their promotion, wage, and layoff policies, among other things. Initially,
only the executive staff carried out this procedure, but it has since grown into
an evaluation process based on the opinions of many reviewers, supervisors,
collaborators, consumers, and the employees themselves (360-degree method).
Reviewers analyse several signs connected to an employee's Performance
Appraisal & Counselling in such a process.
18. Yee C. C. and Y.Y.Chen (2014)The Multifactorial Evaluation Model was
studied in relation to the Performance Appraisal & Counselling System.
Employee performance evaluation is critical in managing an organization's
human resource. Maintaining talented knowledge workers is crucial as the
economy shifts to information-based capitalism. However, deciding whether a
performance is "excellent," "bad," or "average" is a difficult issue for
management.
19. Angelo DeNisi & Caitlin E. Smith(2015)Researched the design and
implementation of performance assessment and management systems to
improve efficiency. The study focuses on a model that demonstrates how
enhanced performance requires solid HR practises, fair assessment systems,
effective performance management, and a clear understanding of an
organization's overall strategic goals.
20. Rafiqul (2015) According to this notion, an effective performance evaluation
system is a tool for evaluating employee performance and recommending
ways to increase individual and organisational efficiency. Employee
performance evaluations using the AHP (analytic hierarchy process) on ISMS
personnel are the topic of this case study.
21. Abteen Ijadi Maghsoodi (2014)The selection of appropriate Performance
Appraisal & Counselling (PA) techniques and financing scales for
organisations in today's dynamic and agile environments is a challenging
subject. Performance Appraisal & Counselling has evolved into a strategic
strategy to merging company policies with human resource activities in
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modern enterprises. Finding the best PA approach is more difficult due to the
presence of various elements in the decision-making process.
22. Manish Khanna(2014) Performance Appraisal & Counselling is significant
since it is an important part of any company's human resource strategy.
Managing individual and team performance to accomplish corporate goals has
a clear value.
23. Yoganandan, Saravanan and Priya (2013) A pilot study of 56 employees
focused on the performance evaluation system and the organization's growth.
It looked at how the present PAS aids employee career development as well
as employee participation in the performance evaluation process.
Following this, Armstrong (2000) emphasizes the need for managers to deal with the
potential of employees and accomplishments while managing performance.
To determine if performance has been achieved, measures have to be developed to
appraise the accomplishments and establish the rate at which it has been
accomplished. Above all, performance should be about the decision and action taken
with available information at any existing situation.
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A Performance Appraisal & Counselling system is an integral employee practice of
the macro human resources (HR) framework of an organization. It is a formal--and at
times informal--and documented process of the performance of workers, professionals
and other staff members of an organization. All professionally managed businesses
and enterprises have Performance Appraisal & Counselling systems to measure the
intrinsic worth and work performance of employees and encourage, motivate and
reward them based on their performances.
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Concept of Performance Appraisal & Counselling
Performance is an accomplishment of assigned task by the employee. Anything that
we show or do is performance.Organization has a number of functions to be done
continuously for its effective operation. Policymaking, taking a decision is about
various areas, operation matching with dynamic environment needs to know
performance level of each employee. Succession planning, reward management,
adding expansion schedule need present performance level of employees that helps in
taking a decision about how to run operating activities in days to come.
According to Mondi and Noël," The process which leads to formalized evaluation of
employees is referred as a Performance Appraisal & Counselling ."
Performance Appraisal & Counselling is a function of human resource management.
It is to be made effective for the achievement of organization's objectives.
Organization needs to improve productivity through the improvement of Performance
Appraisal & Counselling mechanism. It is one of the oldest and most universal
practices of management.
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To reward employee: After having a higher profit in the organization then the
organization will reward the employee. Such that if organization earn a
maximum profit then the employees are rewarded by getting a car, bikes etc.
Performance Appraisal & Counselling identifies what kind of reward to be
given.
To review potentiality of employee: Based on the performance of the
employee they are rewarded. Potentiality of employees can be identified by
the production they have produced.
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Supervisory understanding: Period Performance Appraisal & Counselling
encourages supervisors to observe the job performance of their subordinates. They
take an interest in helping them. This improves communication and mutual
understanding between the supervisor and subordinates. The relationship gets
strengthened and grievances get reduced.
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Comparing standard and actual performance: After collecting information,
comparison of actual and standard performance either above or below limit is done.
The actual performance is compared with the standards. The magnitude, nature,
causes and incidence of deviations are analyzed.
Discussion of appraisal with the employee: In this step, pros and cons of outcomes
were discussed with the employees. The results of Performance Appraisal &
Counselling are discussed with the employees which provide performance feedback
to the employees. The discussion of appraisal can have positive as well as negative
motivational consequences.
Corrective actions: This step is the last step of Performance Appraisal & Counselling
. If performance is below standards, training or punishment is given and if
performance is over standard, the reward is given. The corrective actions are initiated
to correct deviations.
Methods of Performance Appraisal & Counselling
Graphic rating scale method: Graphic rating scale method is a widely used method
of job Performance Appraisal & Counselling . Under this method, rater prepares a
firm with different qualities of employees and scale for each heading. Following
factors are rated on a scale. Quality and quantity of work, job knowledge, attendance,
appearance, loyalty, and dependability, honesty, integrity, attitude, initiative,
cooperation etc. It is easy method and comparison among employees is possible but it
is not free from biases and rating error may be present. It is an indirect method.
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collected. Whose rating is high will be high rated and rank is prepared for all the
considered employees. Whose rate is highest will be accepted as excellent and whose
rate is poor will be last. It is a simple process of planning employees on a rank in
order to observe job performance. The disadvantage of the ranking system is that it is
highly subjective.
Paired comparison method: Number of employees who are under appraisal are
compared with each other. Paired comparison method is useful to make an evaluation
of the performance of 10 to 20 employees. Positive and negative signs are given on
the basis of qualities and good performance of employees that they have shown in the
job. Who gets maximum plus will be highly rated and maximum negative signs show
poor performance. It is a simple and economic method. It is easy to prepare a chart for
the rating but chances of biases may present.
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etc. and employees understanding to them. But essay method is a time-consuming
method.
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Advantages of Performance Appraisal & Counselling s:
They provide a document of employee performance over a specific period
of time.
They provide a structure where a manager can meet and discuss
performance with an employee.
They allow a manager the opportunity to provide the employee with
feedback about their performance and discuss how well
the employee goals were accomplished.
They provide a structured process for an employee to clarify expectations
and discuss issues with their manager.
They provide a structure for thinking through and planning the upcoming
year and developing employee goals.
They can motivate employees if supported by a good merit increase and
compensation system.
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Models of Performance Appraisal & Counselling
To a company in which meeting and interacting with customers are frequent, working
attitude becomes one of essential factors in evaluating the qualification of an
employee. No matter how good an employee is, his poor attitude should be the reason
to fire him. The following phrases shall come in handy when you are trying to
describe an employee's attitude at work:
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Jennifer's talent is very valuable to the company; nevertheless, her working
attitude issomewhat required more check.
Bill always looks frightening and this often makes the team spirit down.
Generally to say, Ben is a friendly guy, not until his mood turns against us. He
needs tocontrol his temper and working attitude and learns not to react too
strongly towardnegative situations.
Bill seems to usually be the bridge of conflicts among his coworkers.
Paired comparisons: In this method appraiser compares the pair of individuals, rating
which employee is better. This could be based on the overall performance of the job
or one specific trait. A rank order is obtained from the number of times each
individual is selected as the better of a pair (Phil Long (1986). Performance Appraisal
& Counselling Revisited. 2nd ed. London: IPM Information and Advisory Services).
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Ranking: Rater requires listing the group of individuals and ranking them according to
the merit from best to worst. In this procedure a single performance trait is used to
evaluate the overall performance of employees towards the objectives.
Forced distribution: This procedure combines both paired comparisons and ranking
methods. Individuals receive a rating and also assigned to categories according to
predetermined distribution.
Absolute Methods:
This method evaluates the performance of an individual by reference to standards of
performance. Techniques include narrative approach, graphic or trait rating scales,
critical incidents and behavioural anchored rating scales.
Narrative Approach: This method describes the individual work performance and
behaviour in the words of appraiser. The appraiser describes the strengths,
weaknesses and potential of an individual and also suggest for improvements that are
required. Appraiser can explain in the form of essay or written report. Narrative
procedures have the benefit that they can explain and provide information regarding
the individual performance.
Trait Rating Scales: This is highly structured scale which consists of a list of
personality traits. The appraiser should indicate the performance of an individual on a
numerical scale for which individual is being appraised have these traits. A variation
of this is the graphic rating scale which requires the rater to evaluate the individual on
each of several defined qualities along a line containing a variety of objectives from
very high to very low (Phil Long (1986). Performance Appraisal & Counselling
Revisited. 2nd ed. London: IPM Information and Advisory Services).
Critical incident techniques: In this method rater explains the positive and negative
behavioural events which have been observed within a review period. It is more
suitable for performance feedback discussions.
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instruments which constitute of series of vertical scales. Each scale determines
performance dimension based on job requirements and past observations. The
behaviour anchors observed determines the work performance of the individual.
Results-oriented Methods:
These methods are mostly based on specific accomplishments and outcomes of job
performance rather than behaviours. Assessment is based on how the objectives have
been achieved. Objectives being jointly agreed between the superior and subordinate
and standards are set by discussion and negotiation. As the standards are known the
procedure can be corrected as they develop.
Secondary includes both quantitative and qualitative data, and they can be used in
both descriptive and explanatory research. Types of secondary data: Documentary
data, Survey-based data, and those compiled from multiple sources.
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Multiple-source secondary data can be based entirely on documentary or any survey
data, or can combination of the two.
Data collected will be analysed with the help of diagrams, graphs, pie charts and etc.
Qualitative data collected from all the possible sources will help in achieving the
objectives of dissertation. Saunders et al (2003) claims that there is no standard
approach to analyzing qualitative data but discuss one technique where the data are
disaggregated into meaningful categories that are subsequently rearranged and
analyzed for related data and key themes.
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standard and improved performance and suggesting the change in employee
behavior.
Establish a File
For managers to be effective and help employees develop skills and capabilities, it’s
essential to begin the performance management process on the employee's first day.
Create a file for each employee and record the accomplishments, areas for
improvement and regular feedback throughout the year.
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Discipline Issues
Throughout the year, an employee may engage in behavior that warrants disciplinary
action. Your company’s procedure for addressing discipline should include a
requirement to document every disciplinary action taken. All disciplinary issues and
improvements are taken into account during the annual Performance Appraisal &
Counselling meeting.
Management by Objectives
Management by objectives, or MBOs, is another step in the Performance Appraisal &
Counselling process used for some employees who have defined goals and steps to
achieve each goal. These MBOs really should be reviewed quarterly to track progress
or redefine the goal if neither of you see enough progress. MBOs are also particularly
helpful to employees who are on a professional career track within your business.
Follow Up Action
After the Performance Appraisal & Counselling meeting, there will likely be follow
up matters such as discussing areas for improvement, establishing goals for the next
year and confirming the employee's salary or wage increase. In addition, the manager
and employee may schedule another time to discuss unresolvable issues that arise
during the Performance Appraisal & Counselling meeting.
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CHAPTER – IV
COMPANY PROFILE
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COMPANY PROFILE
Google Inc., American search engine company, founded in 1998 by Sergey Brin and
Larry Page, that is a subsidiary of the holding company Alphabet Inc. More than 70
percent of worldwide online search requests are handled by Google, placing it at the
heart of most Internet users’ experience. Its headquarters are in Mountain View,
California.
Google began as an online search firm, but it now offers more than 50 Internet
services and products, from e-mail and online document creation to software for
mobile phones and tablet computers. In addition, its 2012 acquisition of Motorola
Mobility put it in the position to sell hardware in the form of mobile phones.
Google’s broad product portfolio and size make it one of the top four influential
companies in the high-tech marketplace, along with Apple, IBM, and Microsoft.
Despite this myriad of products, its original search tool remains the core of its
success. In 2016 Alphabet earned nearly all of its revenue from Google advertising
based on users’ search requests.
Brin and Page, who met as graduate students at Stanford University, were intrigued
with the idea of extracting meaning from the mass of data accumulating on the
Internet. They began working from Page’s dormitory room at Stanford to devise a
new type of search technology, which they dubbed BackRub. The key was to
leverage Web users’ own ranking abilities by tracking each Web site’s “backing
links”—that is, the number of other pages linked to them. Most search engines
simply returned a list of Web sites ranked by how often a search phrase appeared on
them. Brin and Page incorporated into the search function the number of links each
Web site had; i.e., a Web site with thousands of links would logically be more
valuable than one with just a few links, and the search engine thus would place the
heavily linked site higher on a list of possibilities. Further, a link from a heavily
linked Web site would be a more valuable “vote” than one from a more obscure Web
site.
In mid-1998 Brin and Page began receiving outside financing (one of their first
investors was Andy Bechtolsheim, a cofounder of Sun Microsystems, Inc.). They
ultimately raised about $1 million from investors, family, and friends and set up shop
in Menlo Park, California, under the name Google, which was derived from a
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misspelling of Page’s original planned name, googol (a mathematical term for the
number one followed by 100 zeroes). By mid-1999, when Google received a $25
million round of venture capital funding, it was processing 500,000 queries per day.
Activity began to explode in 2000, when Google became the client search engine for
one of the Web’s most popular sites, Yahoo!. By 2004, when Yahoo! dispensed with
Google’s services, users were searching on Google 200 million times a day. That
growth only continued: by the end of 2011 Google was handling some three billion
searches per day. The company’s name became so ubiquitous that it entered the
lexicon as a verb: to google became a common expression for searching the Internet.
hire Eric Schmidt as chairman and chief executive officer (CEO) of the company.
Schmidt, who previously had held the same positions at the software company
Novell Inc., had a doctorate in computer science and melded well with the
technocratic impulses of the founders. During Schmidt’s reign as CEO, Page served
as president of products, and Brin was president of technology. The trio ran the
company as a “triumvirate” until Page took on the CEO role in 2011, Schmidt
became executive chairman, and Brin adopted the title of director of special projects.
The company’s initial public offering (IPO) in 2004 raised $1.66 billion for the
company and made Brin and Page instant billionaires. In fact, the IPO created 7
38
billionaires and 900 millionaires from the early stockholders. The stock offering also
made news because of the unusual way it was handled. Shares were sold in a public
auction intended to put the average investor on an equal footing with financial
industry professionals. Google was added to Standard and Poor’s 500 (S&P 500)
stock index in 2006. In 2012 Google’s market capitalization made it one of the
largest American companies not in the Dow Jones Industrial Average.
Google’s strong financial results reflected the rapid growth of Internet advertising in
general and Google’s popularity in particular. Analysts attributed part of that success
to a shift in advertising spending toward the Internet and away from traditional
media, including newspapers, magazines, and television. For example, American
newspaper advertising fell from a peak of $64 billion in 2000 to $20.7 billion in
2011, while global online advertising grew from approximately $6 billion in 2000
to more than $72 billion in 2011.
Since its founding, Google has spent large sums to secure what it has calculated to
be significant Internet marketing advantages. For example, in 2003 Google spent
$102 million to acquire Applied Semantics, the makers of AdSense, a service that
signed up owners of Web sites to run various types of ads on their Web pages. In
2006 Google again paid $102 million for another Web advertisement business,
dMarc broadcasting, and that same year it announced that it would pay $900 million
39
over three and a half years for the right to sell ads on MySpace.com. In 2007 Google
made its largest acquisition to date, buying online advertising firm DoubleClick for
$3.1 billion. Two years later the company responded to the explosive growth of the
mobile applications market with a $750 million deal to acquire the mobile
advertising network AdMob. All of these purchases were part of Google’s effort to
expand from its search engine business into advertising by combining the various
firms’ databases of information in order to tailor ads to consumers’ individual
preferences.
Management of human resources has become one of the most important business
functions for any company in today’s dynamic business environment. With the high
level of competition and a multitude of options available to the employees, attrition
rates have grown tremendously. Companies are struggling to attract and retain the
best talent. Companies have started coming up with many innovative strategies to
attract the best talent and keep them happy at the workplace. Google is one such
company that has implemented non-conventional HR strategies and believes in
providing maximum value to its employees.
This report talks about the HR strategies that Google has implemented and what their
ramifications have been. Also the reasons behind implementation of these strategies
and the how they would help the company achieve its long term goals. This report
also studies the unique working environment prevalent at Google and what keeps the
employees motivated and committed to innovation. Also the very important role of
hiring and retaining the best talent available in the market, performed by the HR
machinery has also been discussed in this report.
40
Introduction
Google has a highly energetic and dynamic working environment. The employees,
known as “Googlers” in popular jargon know how to work hard and at the same
time have fun at the work place. The entire campus in Mountain view, CA exudes
a lot of creative energy and dynamism. The office has a relaxed environment of a
college campus with no compulsory dress code or daily formal meetings of any kind.
The campus has the facilities for the employees to play games like beach volleyball,
foosball, table tennis and many others. The employees are instilled with the belief
that they are superior to the competition not just in terms of the money they earn but
also in terms of their lifestyle and culture. They are taught to believe in values of
teamwork and satisfaction through creative achievements. As a result of this culture,
the employees also feel proud to be a part of the Google brand. Google has
comprehensive HR policies that help employees grow both personally as well as
professionally. People of many communities and ethnicities work in Google, who
are all made to feel part of one big Google family. Also the employees have a firm
belief that they are working for the best company in the world and the work they are
doing be it either organizing information or creating advertisements is for the
betterment of the society. The motto of the company is “Don’t be Evil” and
encourages the employees to strictly adhere to the ethical norms of the company.
Google encourages its employees to work on 70-20-10 rule where in the employees
have to devote 70 % of their time to core search and advertising work, 20% on a
project of their choice and 10 % on working on far-out ideas. The product
innovations of Google Talk and Gmail have been a result of this kind of initiative.
The business benefits of the 20 % off time are very limited as far as their core search
and advertising businesses are concerned. However the HR department and the
executives still continue to encourage the employees to go for these efforts to remain
motivated and committed to innovation and novelty.
41
The compensation policy of Google is highly rewarding with the employees getting
salaries, bonuses and stock awards at regular time intervals. Google also encourages
and rewards outstanding performance achievements amongst the employees. The
Google premise has a big collegiate environment with many sporting facilities and
other benefits that the employees can avail. The whole idea behind creating such an
environment is that the employees feel very comfortable and easy working in the
office and can be as
creative as possible. In order for the employees to maintain work life balance,
Google offers the employees flexible working hour options, work from home
facility, telecommuting and a generous vacation policy. This combined with the
TGIIF sessions that are held every Friday afternoon which is a get together within
the company itself. The company has a strong code of conduct and encourages its
employees to report any violation of policies and feel safe doing the same.
The HR policies are all aimed at improving employee productivity. The offices are
designed in such a way so as to provide color, lighting and a shared room to the
employees. The employees are seated very close to each other and made to share
offices, thus making knowledge sharing an essential part of the everyday culture at
Google. On an average, each employee generates more than 1 million in revenue
each year. This gives leverage to the Google employees and manager to try out new
things, make mistakes and learn from their failures, which is again a great motivating
factor for the employees to try out new stuff. So as a result any employee in the
company has a chance to create a new product or a feature.
Google is considered by many employees to be the best place to work. The core
strength of the company is its employees. All the benefits provided by the company
help it in recruiting the top employees who are willing to spend their entire day at the
work place itself. The entire HR policy of Google is based around hiring the best
talent; make them work hard and long and manage to keep them at Google for a long
time. Google also carries out various people programs in order to support the
42
growing expansion of the Google workforce across different countries in the world.
These programs are run to explain the many virtues of Google as an employer and
also to deal with the cultural diversities of the workforce across the nations.
Google has an innovative hiring strategy and hiring the right people is one of the
core pillars of the HR policy of the company. The company has a centralized hiring
team, comprising of specialists whose main endeavor is to identify the best talent in
the market and retain them. The branding team of Google also plays a very important
role in attracting the best of the professionals to work for Google.
This recruiting team is also well funded with 1 recruiter being provided for every
14 employees, which again makes it the best funded recruiting functions amongst
the product based organizations in the country. Google has HR Business partners
who perform the task of developing and implementing innovative programs and
technology in place to identify and resolve end user issues across the company
anywhere in the world. They collect and maintain important user data collected over
an employee’s life cycle which is then used to find out important traits and trends of
employee behaviors and identify the potentials problems. Google has quarterly hand
holding sessions with the senior executives to celebrate the achievement of the
previous quarter and set the agenda for the next quarter. However for those who are
not comfortable of speaking up in a public forum, the company conducts regular
surveys which are kept anonymous to understand the trends and identify the problem
43
areas if there are any. Google’s Learning and Leadership Development (LLD) team
innovative learning programs to identify and groom the company’s existing talent.
The managers perform the task of being life coaches and advise the young
employees on a lot of aspects apart from work also.
44
industry. Such a long hiring cycle again might not be feasible for any other company
in today’s day and time. Also the applicants are ready to wait for months despite the
inconvenience because working with Google is such a lucrative proposition in itself.
However it’s difficult to imagine that the applicants would be ready to go through
such a long and a tedious hiring cycle for any other company. Moreover it is not only
the HR department that is involved in the hiring process in the case of Google; it’s
the entire company that gets involved as the application first needs to be approved by
the team that has the opening. So it’s the entire machinery of the company that is
involved in the hiring process. Google can do this because of its flat organizational
structure. Other companies however would have to remove the bureaucracy in their
system and create small team structures in order to implement something on similar
lines.
Conclusion
Google is one of those companies that puts its employees at the core of their strategy
and looks at the long term benefits that they would bring to the shareholders and
their peers. In fact, in 2008 when Google began cutting its employee perks, its
employee productivity and stock prices both fell. This shows a direct correlation
between gaining and retaining outstanding employees with innovative ideas and the
overall company growth. The company’s success has been based on the fact that they
have been innovative, flexible and dynamic in their functions. Managing growth by
keeping the same collegiate environment in the future will be essential to company’s
success. As Google grows in shape and size, the challenge for the company will be to
maintain the same level creative activism and sense of empowerment amongst its
employees. Google is having problems finding the right talent in its other offices
worldwide especially in its South Asia operations. The employees must be
encouraged to work in a more entrepreneurial manner and
they must be provided adequate resources and finances for the same. Google is one
of the few companies where in the employees know that they will be paid for their
innovative efforts irrespective of the fact whether the product that they are working
on, may or may not come out right. This is a highly motivational factor for the
employees to remain committed to innovation. This is also an example how a HR
strategy of a company is directly linked to its business strategy.
45
Job analysis and design at google
Job Description & Specification. Because of the large size of the organization,
Google has highly varied job descriptions and specifications. The job descriptions
and specifications for positions in product development, for instance, significantly
differ from the job descriptions and specifications for positions in human resource
management. Nonetheless, Google emphasizes certain characteristics in all
employees, such as smartness and drive for excellence in all job positions throughout
the organization.
46
Employee training at google
Needs Analysis:
Google follows 3 types of need analysis methods:
Delivery:
Google’s human resource management delivers training programs in various ways,
such as discussions, simulations and on-the-job training. Discussions enable Google
to maintain rich communications involving employees. With rich communications,
training programs also benefit through maximum feedback from the trainees. The
company uses simulations to facilitate creative responses. Simulations empower
Google’s employees to understand the details of work tasks, projects, and products.
The company’s HRM uses on- the-job training to maximize the transfer of
47
knowledge to new hires or interns. Many of these interns are absorbed into Google’s
organization.
Evaluation:
Google has summative and descriptive purposes in evaluating training programs. The
summative purpose is to determine the effectiveness of the program in developing
human resources. The descriptive purpose of evaluation is to understand the effects
of the training on employees. Google’s human resource management uses evaluation
variables like trainees’ learning and reactions, and the results of training programs in
terms of changes in human resource knowledge, skills, and abilities.
48
compatible. Culture plays an important role when it comes to hiring new people.
How culturally compatible you are with Google decides how well you will perform
once you are inside. The role of culture and cultural compatibility has also been
highlighted by research. The more culturally compatible are the employees, the
higher will be the overall productivity of an organisation.
Recruitment is not only the HR function’s job, but the entire organisation is
somehow involved. Another key focus of Google’s recruitment strategy is diversity.
It has partnered several organizations to make its selection process a success and to
bring a highly diverse workforce together. Diversity is not just an HR concern,
instead something visible in all aspects of Google’s business. Google itself notes,
“There’s no one kind of Googler, so we’re always looking for people who can bring
new perspectives and life experiences to our teams. If you’re looking for a place that
values your curiosity, passion, and desire to learn, if you’re seeking colleagues who
are big thinkers eager to take on fresh challenges as a team, then you’re a future
Googler”. Google has created an efficient recruitment system composed of skilled
people. The recruitment team has members in roles like recruiting research analysts,
candidate developers, process coordinators,
49
CHAPTER – V
DATA ANALYSIS &
INTERPRETATION
50
DATA NALYSIS & INTERPRETATION
1. Age
Table No-1
20-30 15 15%
30-40 15 15%
40-50 10 10%
50-60 10 10%
TOTAL 50 100%
CHART-1
16%
15% 15%
14%
12%
10% 10%
10%
8%
Age
6%
4%
2%
0%
20-30 30-40 40-50 50-60
INTERPRETATION:
The above data imphasis that 15% of the sample/respondents are between the age of 20-
30. It can be understood that most of the employees are young people.
51
2. Gender
Table No-2
Male 25 50%
Female 25 50%
TOTAL 50 100%
CHART-2
60%
50% 50%
50%
40%
30%
Gender
20%
10%
0%
Male Female
INTERPRETATION:
The above data imphasis that 50% are male and 50% are Female. It can be understood that
most of the employees are Male. .
52
3. Education
Table No-3
UG 30 30%
PG 10 10%
Others 10 10%
TOTAL 50 100
CHART-3
35%
30%
30%
25%
20%
Education
15%
10% 10%
10%
5%
0%
UG PG Others
INTERPRETATION:
The above data imphasis that 30% are Under Graduate, 40% are Post Graduate and 10% are
others. It can be understood that most of the employees are UG & PG.
53
4. Occupation
Table No-4
Executive 30 30%
Supervisor 10 10%
Manager 10 10%
TOTAL 50 100
CHART-4
35%
30%
30%
25%
20%
Occupation
15%
10% 10%
10%
5%
0%
Executive Suervisior Manager
INTERPRETATION:
The above data imphasis that 30% are Executive, 10% , 10% are Supervisior and 30% are
Manager . It can be understood that most of the employees are Executive
54
Q1. The present appraisal system is an computerized system one.
Table no 4.1: Appraisal system
Options Responses
Strongly agree 36
Agree 26
Cannot Say 15
Disagree 12
Strongly Disagree 11
TOTAL 100
Chart No. 4.1 Appraisal System
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Q2. Midterm review of employee performance instead of annual
Review is beneficial.
Table no 4.2: Midterm review
Options Responses
Strongly agree 15
Agree 50
Cannot Say 21
Disagree 4
Strongly Disagree 10
TOTAL 100
56
Q3. Performance appraisal system helps in reducing the communication
gap between superiors and subordinates.
Table no 4.3: Communication gap
Options Responses
Strongly agree 10
Agree 41
Cannot Say 13
Disagree 28
Strongly Disagree 8
TOTAL 100
Chart 4.3: Communication gap
57
Q4. Performance appraisal system helps superiors to know their
employees in better way.
Table no 4.4: Superiors to know their employees
Options Responses
Strongly agree 66
Agree 25
Cannot Say 6
Disagree 2
Strongly Disagree 1
TOTAL 100
Chart 4.4: Superiors to know their employees
58
Q5. Sufficient time has been given to you for discussion and guidance
to improve your performance.
Table no 4.5: Sufficiency in time
Options Responses
Strongly agree 5
Agree 17
Cannot Say 19
Disagree 12
Strongly Disagree 47
TOTAL 100
Chart 4.5: Sufficiency in time
59
Q6. Formal appraisal systems help in discovering true potential for
higher responsibilities.
Table no 4.6: Formal appraisal system
Options Responses
Strongly agree 78
Agree 17
Cannot Say 4
Disagree 1
Strongly Disagree 0
TOTAL 100
Chart 4.6: Formal appraisal system
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Q7. Monetary and non monetary rewards given are based on Performance
Appraisal & Counselling rating.
Table no 4.7: Monetary and non monetary rewards
Options Responses
Strongly agree 39
Agree 36
Cannot Say 11
Disagree 9
Strongly Disagree 5
TOTAL 100
Chart 4.8: Monetary and non monetary rewards
61
Q8. The formal appraisal done by organization matches with self assessment.
Table no 4.8: Self assessment
Options Responses
Strongly agree 13
Agree 55
Cannot Say 17
Disagree 9
Strongly Disagree 6
TOTAL 100
Chart 4.8: Self assessment
62
Q9. This criterion is sufficient to judge the performance.
Table no 4.9: Performance
Options Responses
Strongly agree 21
Agree 33
Cannot Say 19
Disagree 10
Strongly Disagree 17
TOTAL 100
Chart 4.9: Performance
63
Q10. In case of bad performance, the organization conducts
counseling or training programs.
Table no 4.10: conducting counseling or training programs
Options Responses
Strongly agree 64
Agree 22
Cannot Say 10
Disagree 2
Strongly Disagree 2
TOTAL 100
Chart 4.10: conducting counseling or training programs
64
Q11. Performance Appraisal & Counselling system leads to interpersonal conflicts
Among co-workers.
Table no 4.11: Conflicts among co-workers
Options Responses
Strongly agree 15
Agree 12
Cannot Say 17
Disagree 36
Strongly Disagree 20
TOTAL 100
Chart no 4.11: Conflicts among co-workers
65
Q12. The working conditions provided by organization helped in
Achieving goals.
Table no 4.12: working conditions
Options Responses
12
Strongly agree
Agree 43
Cannot Say 32
Disagree 10
Strongly Disagree 3
TOTAL 100
Chart 4.12: working conditions
66
Q13. The current Performance Appraisal & Counselling is motivating.
Table no 4.13: Current Performance Appraisal & Counselling is motivating
Options Responses
Strongly agree 21
Agree 52
Cannot Say 16
Disagree 8
Strongly Disagree 3
TOTAL 100
67
CHAPTER – VI
FINDINGS, SUGGESTIONS &
CONCLUSION
68
5.1 FINDINGS
1. 55% of respondents agree with the statement i.e., the formal appraisal
done by the organization matches with the self assessment of employees.
2. 33% of respondents agree with the statement i.e., the present criterion is
sufficient to judge their performance.
3. 64% of respondents strongly agree with the statement i.e., the
organization conducts counseling or training programs in case of bad
performance.
4. 36% of respondents disagree with the above statement i.e., the appraisal
system lead to interpersonal conflicts among co-workers.
5. 43% of respondents agree with the above statement i.e., the working
conditions provided by the organization helps in achieving their goals.
6. 52% of respondents agree with the above statement i.e., the current
appraisal system is motivating employees in the organization.
7. 24% of respondents strongly disagree with the statement i.e., the appraisal
system make employees to work under stress.
8. 39% of respondents strongly agree with the statement i.e., the employees
are satisfied with the feedback and review discussions in the appraisal
system.
9. 54% of respondents agree with the statement i.e., the individual
performance and feedback system is helpful in career development of
employees.
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5.2 SUGGESTIONS
1. 50% agree with the above statement i.e., instead of annual review
midterm review of employee performance is beneficial.
2. 41% agree with the above statement i.e., the Performance Appraisal &
Counselling system helps in reducing the gap between superiors and
subordinates
3. 66% strongly agree with the above statement i.e., Performance Appraisal
& Counselling system helps superiors to know their employees in better
way.
4. 47% strongly disagree with the above statement i.e., Sufficient time has
not been given to employees for discussion and guidance to improve their
performance.
5. 78% strongly agree with the above statement i.e., Formal appraisal
systems help in discovering their true potential for higher responsibilities.
6. 36% disagree with the above statement i.e., the appraisal system lead to
interpersonal conflicts among co-workers.
7. 40% strongly agree with the above statement i.e., the Performance
Appraisal & Counselling system helps to improve quality of employees
work
8. 44% agree with the above statement i.e., the present appraiser is the right
person to appraise the employee performance.
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5.3 CONCLUSION & SUMMARY
36% of respondents strongly agree with the statement i.e., the present
appraisal system is an effective one. 40% of respondents agree with the
statement i.e., introduction of a computerized system will make the
Performance Appraisal & Counselling system effective. 50% of respondents
agree with the statement i.e., instead of annual review midterm review of
employee performance is beneficial.41% of respondents agree with the
statement i.e., the Performance Appraisal & Counselling system helps in
reducing the gap between superiors and subordinates. 66% of respondents
strongly agree with the statement i.e., Performance Appraisal & Counselling
system helps superiors to know their employees in better way.
47% of respondents strongly disagree with the statement i.e., Sufficient
time has been given to employees for discussion and guidance to improve
their performance78% of respondents strongly agree with the statement i.e.,
Formal appraisal systems help in discovering their true potential for higher
responsibilities. 39% of respondents strongly agree with the statement i.e., the
monetary and non monetary rewards given to employees are based on
Performance Appraisal & Counselling ratings.
71
BIBLIOGRAPHY
72
BIBLIOGRAPHY
BOOKS
Subba Rao (2005 ):- “Personnel and Human Resource Management”
Himalaya Publishing House, Mumbai, P133-135.
Aswathappa K (2008):- “Human Resource Management”, Tata Mc Graw
Hill, N Delhi,P233.
Shashi, K. Gupta and Rosy Joshi (2004):- “Human Resource Management”,
Kal
Publishers, New Delhi, P18.1-18.03.
JOURNALS
The journal of Nepalese business studies vol. IX No. 1 December isssn:2350-
8795
International journal of science and management vol. No. 01,January 2016
Journal of indian research vol. No.4,October-December, 2013.105-111.
(2321-4155)
NEWS PAPER
Business Line
The economic Times
Times of India
WEBSITES
www.hrmguide.net
www.google .com
www.humanresource.uce.edu
www.hrindia.com
73
QUESTIONNAIRE
Q1. Does the present appraisal system, according to you, is an effective one?
Q3. Does the Performance Appraisal & Counselling system helps in reducing
the communication gap between superiors and subordinates?
Q5. Sufficient time has been given to you for discussion and guidance to
improve your performance.
Q6. Does the formal appraisal system help in discovering your true potential for
higher
Responsibilities?
a) Strongly agree b) Agree c) Cannot say d) Disagree e) strongly disagree
Q7. Monetary and non monetary rewards given to you are based on your
Performance Appraisal & Counselling rating.
a) Strongly agree b) Agree c) Cannot say d) Disagree e) strongly disagree
Q8. Does the formal appraisal done by organization matches your self
assessment?
Q10. If your performance is not good, does the organization conduct counseling
or
74
training programs for you?
a) Strongly agree b) Agree c) Cannot say d) Disagree e) strongly disagree
Q11. Do you feel that Performance Appraisal & Counselling system leads to
interpersonal conflicts
Among co-workers?
a) Strongly agree b) Agree c) Cannot say d) Disagree e) strongly
disagree
75