New HRM Project_2003

7/30/2019 New HRM Project_2003

1/79

PERFORMANCE APPRAISAL

A Project Report submitted in partial fulfillment of the requirements for the Award of degree of

Bachelor of Business Administration

2012 2013

Submitted by: Amruta Shetty Guided by: Anjali Kalse

BHARATI VIDYAPEETH DEEMED UNIVERSITY SCHOOL OF DISTANCE

EDUCATIONAcademic Study Center - BVIMR, New Delhi

An ISO 9001:2008 Certified Institute

NAAC Accredited Grade A University

Page 1 of79


2/79

ORGANISATION DECLARATION

This is to certify that AMRUTA SHETTY daughter of SUNDER SHETTY pursuing BBA from

Bharati Vidyapeeth Deemed University, SDE, Academic Study Center BVIMR, New

Delhi. Has successfully completed Project Report in our organization on the topic titled,

PERFORMANCE APPRAISAL from 2012 to 2013 During her project tenure in the

organization, we found her hard working, sincere and diligent person and her behavior and

conduct was good during the project. We wish her all the best for her future endeavors.

Comments of Guide

1.

2.

3.

Pratiksha Singarpure

Name and Signature of the Mentor (Industrial Guide)

Designation - Manager HR

Page 2 of79


3/79

STUDENT DECLARATION

This is to certify that I AMRUTA SHETTY had completed the Project titled

PERFORMANCE APPRAISAL in NETWORK18 INDIA LTD. under the guidance of Ms.

(Faculty guide) in the partial fulfillment of the requirement for the award of degree of BBA

from Bharati Vidyapeeth Deemed University, SDE, Academic Study Center BVIMR, New

Delhi. This is an original piece of work and I had neither copied nor submitted it earlier

elsewhere.

Amruta Shetty

Student Name and Signature

Course BBA

Dated 25 April 2013

Page 3 of79


4/79

INTERNAL GUIDE CERTIFICATE

This is to certify that the project titled PERFORMANCE APPRAISAL is an academic work

done by AMRUTA SHETTY submitted in the partial fulfillment of the requirement for the

award of the Degree of BBA from Bharati Vidyapeeth Deemed University SDE, Academic

Study Center BVIMR, New Delhi under my guidance and direction. To the best of my

knowledge and belief the data and information presented by him/her in the project has not been

submitted earlier.

Anjali Kalse

Name and signature of Faculty Guide

Designation -

Page 4 of79


5/79

DIRECTOR CERTIFICATE

This is to certify that the Project titled PERFORMANCE APPRAISAL is an academic work

done by AMRUTA SHETTY submitted in the partial fulfillment of the requirement for the

award of the Degree of Course from Bharati Vidyapeeth Deemed University , SDE,

Academic Study Center BVIMR, New Delhi. . It has been completed under the guidance of

Ms. Anjali Kalse (Internal Guide)

Dr. Sachin S. Vernekar

Director

Page 5 of79


6/79

ACKNOWLEDGEMENT

Vital to every operation is co-operation. We really agree to this wonderful quotation put

forth by Mr. Frank Tyger. This project was successful due to the co-operation extended by

people who have truly contributed towards it. We want to thank the management of various

companies who gave us the permission to conduct research. We would also like to thank all

the employees and HR executives who empowered us with valuable information. And

finally to those whose lives and writings has come the wisdom of the ages. We have tried to

learn from your legacy.

Amruta Shetty

Name and Signature of Student

Page 6 of79


7/79

PREFACE

Amruta Shetty

Name and Signature of Student

Page 7 of79


8/79

ABSTRACT

Appraisal is a continuous process and done annually as a formal exercise before completion

of the financial year. Appraisal has tremendous motivational impact on people through

meaningful feedback and is a powerful tool for recognition. This p r o j e c t

e x p l a i n s performance appraisal system and tries to find out how efficiently Performance

Appraisal is conducted. And if performance appraisal doesnt meet its objective then, what

are the factors causing failure.

Page 8 of79


9/79

TABLE OF CONTENTS

Sr. No Title Page No

1 Introduction 102 Research & Survey 32

3 Results 33

4 Findings and Recommendations 64

5 Conclusion 67

6 Appendices 68

7 Bibliography 74

Page 9 of79


10/79

1. INTRODUCTION

In the business world investment is made in machinery, equipment and services.

Quite naturally time and money is spent ensuring that they provide what their suppliers

claim. In other words the performance is constantly appraised against the results expected.

When it comes to one of the most expensive resources companies invest in, namely

people, the job appraising performance against results is often carried out with the same

objectivity. Each individual has a role to play and management has to ensure that the

individuals objectives translate into overall corporate objectives of the company.

Performance Management includes the performance appraisal process which in turn helps

identifying the training needs and provides a direction for career and succession planning.

1.1 Understanding Performance Management

Figure 1.1

Page 10 of79

PERFORMANCE MANAGEMENT

CORPORATE GOALS

PERFORMANCE LINKEDINCREMENTS/INCENTIVES/REWARDS

PERFORMANCE APPRAISAL

ENSURE RESPONSIBILITY ANDACCOUNTABILITY

DETERMINE INDIVIDUALOBJECTIVE LINKED TO CORPORATE

GOALS


11/79

1.2 What is Performance?

A performance a p p r a i s a l , e m p l o y e e a p p r a i s a l , p e r f o r ma n c e r e v i e w , o r

(career) development discussion is a method by which the job performance of an employee is

evaluated (generally in terms of quality, quantity, cost, and time) typically by the

corresponding manager or supervisor performance appraisal is a part of guiding and

managing career development. It is the process of obtaining, analyzing, and recording

information about the relative worth of an employee to the organization. Performance

appraisal is an analysis of an employee's recent successes and failures, personal strengths

and weaknesses, and suitability for promotion or further training. It is also the

judgment of an employee's performance in a job based on considerations other than

productivity alone.

Page 11 of79


12/79

1.3 Objectives of a performance appraisal

Give employees feedback on performance

Identify employee training needs

Document criteria used to allocate organizational rewards

Form a basis for personnel decisions: salary increases, promotions, disciplinary

actions, bonuses, etc.

Provide the opportunity for organizational diagnosis and development

Facilitate communication between employee and administration

Validate selection techniques and human resource policies to meet federal Equal

Employment Opportunity requirements.

To improve performance through counseling, coaching and development.

Page 12 of79


13/79

1.4 Importance of Performance Appraisal

Performance appraisals provide employees and managers with opportunities to discuss areas

in which employees excel and those in which employees need improvement. Performance

appraisals should be conducted on a regular basis, and they need not be directly attached to

promotion opportunities.

Personal Attention

During a performance appraisal review, a supervisor and an employee discuss the employee's

strengths and weaknesses. This gives the employee individual face time with the supervisor

and a chance to address personal concerns.

Feedback

Employees need to know when their job duties are being fulfilled and when there are issues

with their work performance. Managers should schedule this communication on a regular

basis.

Career Path

Performance appraisals allow employees and supervisors to discuss goals that must be met

to advance within the company. This can include identifying skills that must be acquired,

areas in which one must improve, and educational courses that must be completed.

Employee Accountability

When employees know there will be regularly scheduled evaluations, they realize that they

are accountable for their job performance.

Communicate Divisional and Company Goals

Page 13 of79


14/79

Besides communicating employees' individual goals, employee appraisals provide the

opportunity for managers to explain organizational goals and the ways in which employees

can participate in the achievement of those goals.

Page 14 of79


15/79

1.5 Process of Performance Appraisal

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards

which will be used to as the base to compare the actual performance of the employees. This

step requires setting the criteria to judge the performance of the employees as successful or

unsuccessful and the degrees of their contribution to the organizational goals and objectives.

The standards set should be clear, easily understandable and in measurable terms. In case the

performance of the employee cannot be measured, great care should be taken to describe the

standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the

employees of the organization.

The employees should be informed and the standards should be clearly explained to them. This

will help them to understand their roles and to know what exactly is expected from them. The

standards should also be communicated to the appraisers or the evaluators and if required, the

standards can also be modified at this stage itself according to the relevant feedback from the

employees or the evaluators.

Page 15 of79


16/79

Figure 1.2

Page 16 of79


17/79

1.6 MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the actual

performance of the employees that is the work done by the employees during the specified

period of time. It is a continuous process which involves monitoring the performance

throughout the year. This stage requires the careful selection of the appropriate techniques of

measurement, taking care that personal bias does not affect the outcome of the process and

providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The

comparison tells the deviations in the performance of the employees from the standardsset.

The result can show the actual performance being more than the desired performance or, the

actual performance being less than the desired performance depicting a negative deviation in

the organizational performance. It includes recalling, evaluating and analysis of data related

to the employees performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one- to-

one basis. The focus of this discussion is on communication and listening. The results, the

problems and the possible solutions are discussed with the aim of problem solving and

reaching consensus. The feedback should be given with a positive attitude as this can have an

effect on the employees future performance. The purpose of the meeting should be to solve

the problems faced and motivate the employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the

performance of the employees, take the required corrective actions, or the related HR

decisions

Page 17 of79


18/79

Traditional Methods of Performance Appraisal

ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as "Free Form method" involves a

description of the performance of an employee by his superior. The description is an

evaluation of the performance of any individual based on the facts and often includes

examples and evidences to support the information. A major drawback of the method is the

inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In this method,

the appraiser ranks the employees from the best to the poorest on the basis of their overall

performance. It is quite useful for a comparative evaluation

3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this method compares each

employee with all others in the group, one at a time. After all the comparisons on

the basis of the overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on the basis of

critical events and how the employee behaved during those incidents. It includes both negative

and positive points. The drawback of this method is that the supervisor has to note down the

critical incidents and the employee behavior as and when they occur.

Page 18 of79


19/79

5. FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses and

interviews the supervisors to evaluate and rate their respective subordinates. A major

drawback of this method is that it is a very time consuming method. But this method helps to

reduce the superiors personal bias.

6. CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behavior of the employees on job.

The checklist contains a list of statements on the basis of which the rater describes the on

the job performance of the employees.

7. GRAPHIC RATING SCALE

In this method, an employees quality and quantity of work is assessed in a graphic scale

indicating different degrees of a particular trait. The factors taken into consideration include

both the personal characteristics and characteristics related to the on the job performance of the

employees. For example a trait like Job Knowledge may be judged on the range of average,

above average, outstanding or unsatisfactory

FORCED DISTRIBUTION

To eliminate the element of bias from the raters ratings, the evaluator is asked todistribute the

employees in some fixed categories of ratings like on a normal distribution curve. The rater

chooses the appropriate fit for the categories on his own discretion.

Page 19 of79


20/79

Modern Methods of Performance Appraisal

ASSESSMENT CENTRES -

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

similar to 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 centers 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.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally 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 behavioral statements describing important job

performance qualities as good or bad (for eg. the qualities like inter personal relationships,

adaptability and reliability, job knowledge etc). These statements are developed from critical

incidents.

In this method, an employees actual job behavior is judged against the desired behavior by

recording and comparing the behavior with BARS. Developing and practicing BARS requires

expert knowledge.

Page 20 of79
http://appraisals.naukrihub.com/assessment-centers.htmlhttp://appraisals.naukrihub.com/assessment-centers.html


21/79

1.7 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 the Performance appraisal of the

employees is judged in terms of cost and contribution of the employees.

The cost of employees include 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.

Page 21 of79


22/79

1.8 MANAGEMENT BY OBJECTIVES

The concept ofManagement by Objectives (MBO) was first given by

Peter Drucker in 1954. It can be defined as a process whereby the

employees and the superiors come together to identify common goals, the

employees set their goals to be achieved, the standards to be taken as the

criteria for measurement of their performance and contribution and

deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of

actions and decision making. An important part of the MBO is the

measurement and the comparison of the employees actual performance

with the concept ofManagement by Objectives (MBO) was first given

by Peter Drucker in 1954. It can be defined as a process whereby the

employees and the superiors come together to identify common goals, the

employees set their goals to be achieved, the standards to be taken as the

criteria for measurement of their performance and contribution and deciding

the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of

actions and decision making. An important part of the MBO is the

measurement and the comparison of the employees actual performance

with the standards set. Ideally, when employees themselves have been

involved with the goal setting and the choosing the course of action to be

followed by them, they are more likely to fulfill their responsibilities.

Page 22 of79


23/79

THE MBO PROCESS

Figure 1.3

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create

empowered employees who have clarity of the roles and

Page 23 of79


24/79

responsibilities expected from them, understand their objectives to be

achieved and thus help in the achievement of organizational as

well as personalgoals.

Page 24 of79


25/79

360 Degree Performance Appraisals

360 degree feedback, also known as 'multi-rater feedback', is the most

comprehensive appraisal where the feedback about the employees

performance comes from all the sources that come in

contactwith the employee on his job.

360 degree respondents for an employee can be his/her peers, managers

(i.e. superior), subordinates, team members, customers, suppliers/

vendors - anyone who comes into contact with the employee and can

provide valuable insights and information or feedback regarding the "on-

the-job" performance of the employee. 360 degree appraisal has four

Integral components

1.Self appraisal

2 Superiors appraisal

3 Subordinates appraisal

4.Peer appraisal

Self-appraisal gives a chance to the employee to look at his/her strengths

and weaknesses, his achie vements , and judge his own performance.

Superiors appraisal forms the traditional part of the 360 degree

performance appraisal where the employees responsibilities and

actual performance is ratedby the

superior.

Subordinates appraisal gives a chance to judge the employee on the

parameters like communication and m o t i v a t i n g a b i l i t i e s ,

su p e r i o r s ab i l i t y to de le g at e th e wo rk , leadership qualities

etc. Also known as internal customers, the correct feedback given by

Page 25 of79


26/79

peers can help to find employees abilities to work as a team, co-

operation and sensitivity towards others.

Page 26 of79


27/79

Figure 1.4

Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree

Performance appraisal have high employee involvement and also have the strongest impact

on behavior and performance. It provides a "360-degree review" of the employees

performance and is considered to be one of the most credible performance appraisal

methods.

360 degree performance appraisal is also a powerful developmental tool because when

conducted at regular intervals (say yearly) it helps to keep a track of the changes others

perceptions about the employees. A 360 degree appraisal is generally found more suitable for

the managers as it helps to assess their leadership and managing styles. This technique is being

effectively used across the globe for performance appraisals. Some of the organizations

following it are Wipro, Infosys, and Reliance Industries etc.


28/79

Benefits of Performance Appraisal

If appraisal is to be effective, staff must see the process attempting to meet their needs,

otherwise the system will not work. This means Heads of Department do need to form an

overview of the issues raised by their staff and if appropriate feed these into the planning

process. Appraisal should result in:

Benefits for the individual:

Gaining a better understanding of their role

Understanding more clearly how and where they fit in within the wider picture

A better understanding of how performance is assessed and monitored

Getting an insight into how their performance is perceived

Improving understanding of their strengths and weaknesses and developmental

needs

Identifying ways in which they can improve performance

Providing an opportunity to discuss and clarify developmental and training needs

Understanding and agreeing their objectives for the next year.

An opportunity to discuss career direction and prospects.


29/79

Benefits to the line manager/supervisor/team leader:

Opportunities to hear and exchange views and opinions away from the normal

pressure of work

An opportunity to identify any potential difficulties or weaknesses

An improved understanding of the resources available

An opportunity to plan for and set objectives for the next period

An opportunity to think about and clarify their own role

An opportunity to plan for achieving improved performance

An opportunity to plan for further delegation and coaching

An opportunity to motivate members of the team


30/79

Benefits to the organization:

A structured means of identifying and assessing potential

Up-to-date information regarding the expectations and aspirations of employees

Information on which to base decisions about promotions and motivation

An opportunity to review succession planning

Information about training needs which can act as a basis for developing training

plans

Updating of employee records (achievements, new competencies etc)

Career counseling

Communication of information


31/79

Disadvantages of performance appraisal

Performance appraisals are usually part of a yearly review process in which a supervisor

reviews the job performance, goal completion and projects accomplished by an employee.

While the structure of performance appraisals offers a way for giving constructive feedback

to employees, which in turn can be used as a reward or a motivational tool, there are

downsides to traditional performance appraisals.

One Sided Input

Traditional performance appraisals involve a supervisor and supervisee, both of which have

limited perspectives. As with any situation, limited perspectives lead to a limited amount of

information by which to judge performance.

If a manager is busy supervising several people, as well as tasks and other projects, then there

will be limited time to take in the full scope and practice of the performance of the

supervisee. As an alternative, many industries today are utilizing 360-degree feedback, which

takes into account the relationships that an employee has with peers, customers, clients,

supervisors and those whom the supervisee is responsible for overseeing.


32/79

Forms Only Give Quantitative or Qualitative Data

Many times, feedback forms that are utilized in performance appraisals only use quantitative

or qualitative measures, but not both. Quantitative appraisals mainly measure numbers, suchas how many projects, how many were on time. While this is important, there are other things

to take into consideration.

Qualitative benchmarks involve the completion of personal or professional goals and the

stories of how the supervisee utilized opportunities to lead by example and proactively

implement the values and mission of the organization. Listening to the stories of what has

happened over the past year and looking at numbers and outcomes will result in a clearer

picture of what the value of the employee is to the organization.

Once-a-Year Raises

Performance appraisals are usually done once a year and are connected to an increase in

salary. This is a disadvantage in that supervisees generally live in fear and experience

anxiety when their review time comes up. Having more consistent interaction when it comes

to feedback between management and supervisees can help reduce the fear, anxiety and

wondering about a raise.

Furthermore, the employee naturally will want to bargain for more money focusing on

their strengths and the management will want to emphasize the constructive areas of

performance evaluation in order to keep from giving raises, since money is a limited

resource in any organization. This adds to the stress of the review


33/79

2. RESEARCH AND SURVEY:

Statement of the Problem:

Performance appraisal is a process of assessing, summarizing and developing the work

performance of an employee. In order to be effective and constructive, the performance

manager should make every effort to obtain as much objective information about the

employee's performance as possible. Low performance can push the organization back in

todays tough competition scenario. The project is aimed at analyzing the performance

appraisal in companies.

Objective:

The various objectives of our research are as follows:

To examine why an appraisal system is important.

To study existing appraisal system in various organizations across sectors like BPO, IT &

Telecom.

To find the expectation of appraiser and appraise.To determine the satisfaction level of the appraise.

To reveal the various loopholes in the appraisal system if any

To find the consequences of an inappropriately conducted appraisal system

Research Methodology:

The data source: Primary as well as Secondary.

The research approach: Survey Method.

The research instrument: Questionnaire.

The respondents: The Managers & Employees of various organizations.

The primary data was collected with the help of survey information. A concise questionnaire

was prepared keeping in mind the information specifications.


34/79

3.RESULTS

Findings from Appraisee Survey

1. Expectations from Appraisal System:

Figure 3.1

Respondents were asked to rank the various options according to their preference.

(Rank 1 being most preferred and rank 6 being least preferred). Then scoring was

given on the basis of ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so

on.

Table 3.1

Particular Score Overall Rank

Salary Administration and Benefits 87 1

Determination of promotion or transfer 109 2

Assistance in goal 228 3

Guideline for training plan 254 4

An insight into your strengths and weakness 312 5

Decision to layoff 354 6


35/79

From the above table 3.1 it can be seen that employees expect Salary Administration

and Benefits to be the main reason for conducting a Performance Appraisal.

Decision to layoff is of least importance as per the appraisee.


36/79

2. Awareness about Responsibilities:

Figure 3.3

From the graph it can be seen that majority of employees are aware about their

responsibilities, which implies that the appraisers have efficiently communicated to the

appraises all the parameters that will be taken into account during appraisal.


37/79

3. Satisfaction Level among appraise regarding Appraisal System:

Figure 3.4

From graph it can be seen that majority of the respondents are satisfied with the

appraisal system. Only a meager 30% were dissatisfied with the Performance

Appraisal programs.


38/79

4. Awareness about performance ratings:

Figure 3.5

This clearly shows that majority of the employees are not aware about the

performance ratings that are taken into account while conducting a performance

appraisal.


39/79

5. Allowing Self ratings:

Figure 3.6

From graph it can be seen that majority of respondents want self-rating to be a method of

conducting the appraisals.


40/79

6. Chance to rate your own performance:

Figure 3.7

From the graph we can see that majority of the employees are not given a chance to rate

their own performance in the organization.


41/79

7. Timing of Appraisals:

Figure 3.8

This shows that most of the organizations conduct their Performance Appraisal

programs annually. A very small percentage of the organizations conduct Performance

Appraisals on a half yearly basis. The share of the quarterly and monthly appraisals is

extremely minimal.


42/79

8. Credibility of Appraiser:

Figure 3.9

This shows that according to the employees/appraisees the credibility of the appraiser is

extremely important and it has an effect on the overall Performance appraisal program.


43/79

9. Complaint channel for employees:

Figure 3.10

This shows that there is no proper complaint channel existing in the organizations for the

employees who are dissatisfied with the performance appraisal system.


44/79

10. Standards communicated to employees:

Figure 3.11

From this it can be seen that there is a clear majority among the employees who say that

the standards on the basis of which the performance appraisal is carried out is not

communicated to the employees beforehand.


45/79

11. Performance Appraisal

Figure 3.12

Almost all the Performance Appraisals are carried out by the Immediate Supervisor in

these organizations. In very few organizations, Rating committees carry out the

performance appraisals. None of the organizations use Peer Appraisals, Appraisals by

subordinates and Self rating as a method of Performance Appraisal.


46/79

12. Clear understanding of Appraisees job

Figure 3.13

This shows that the performance Appraisal programs are successful in giving a clear

understanding of the appraisees job to both appraiser and appraisee.


47/79

13. Objectives of Appraisal System

Figure 3.14

From the figure we can derive that the objective for conducting the Appraisal system is

clear only to half of the employees. The remaining half is not clear about the objective

for which the Performance Appraisal is carried out.


48/79

14. Good communication between top management and business goals

Figure 3.15

This shows that the appraisal systems do not provide a good communication flow of the

top-management plans and business goals to the staff below.


49/79

15. Comments and suggestions to be considered

Figure 3.16

Almost all the employees expect that their comments and suggestions should be taken into

consideration while conducting the Performance Appraisal.


50/79

16. Post Appraisal interview

Figure 3.17

As per the response from the employees we can see that there is no interview

conducted after the appraisal program for majority of the employees.


51/79

Findings from Appraiser Survey

1. Purpose of Appraisal

Figure 3.18

Respondents were asked to rank the various options according to their preference.

(Rank 1 being most preferred and rank 6 being least preferred). Then scoring was

done on basis of these ranks. 1 mark was allotted to rank 1, 2 marks for rank 2 and so

on. Then the total score for each purpose was calculated and overall ranking was

given.

Particular Score Overall Rank

Determination of promotion or transfer 24 1

Salary Administration and Benefits 27 2

Decision to layoff 42 3

Guideline for training plan 69 4

Assistance in goal 72 5

An insight into your strengths and weakness 81 6

Table 3.2

From table 3 .2 it can be seen that appraiser considers Determination of promotion or

transfer & Salary administration and Benefits as two important factors for

conducting an Appraisal.


52/79

2. Appraisal System

Figure 3.19

In this question appraiser was asked to rate how helpful the appraisal system is, from the

graph it can be seen that majority of appraisers have rated 5,4 & 3 which implies that

Performance Appraisal system is very helpful in Planning their work. Also most of the

appraisers are satisfied with the appraisal system.


53/79

3. Support from subordinate

Figure 3.20

This question was asked to find out how helpful appraisal system is in communicating the

support that appraiser needs from appraisee. From results it is seen that the performance

appraisal system is very helpful in communicating the support and help needed by the

appraiser from the appraisee.


54/79

4. Type of Appraisal System

Figure 3.21

From results its clear that majority of companies prefer to use 360 degree feedback

system for Perf ormance Appraisal . As 360 degree feedb ack gi ves fe edback

of appraisee from everyone interacting with him, it is more reliable and hence most

preferred.


55/79

5. Performance Appraisal criteria

Figure 3.22

From results we can see that Qualitative Process is considered as the most important

criteria for which the Performance appraisal programs are carried out, w h i c h shows that

companies consider Quality of product & service and Customer satisfaction as most

important factors.


56/79

6. Timing of Appraisals

Figure 3.23

From graphs we can see that most of companies conduct appraisals on annual basis.

Some companies conduct quarterly also.


57/79

7. Effect of poor Appraisal System

Figure 3.24

It can be seen from results that most of the employees get De-motivated because of a

poorly conducted appraisal. To some extent employees dont coordinate with their team

members. This resulting in reduction of output.


58/79

8. Communication between top management and staff

Figure 3.25

All appraisers totally agree that performance appraisal helps in communicating the top

management plans and business goals to staff at lower level.


59/79

9. Insight to Apprasiees strength and weakness

Figure 3.26

It is evident from the results that performance appraisal system doesnt help the

appraiser in understanding strength and weakness of apraisee.


60/79

10. Appraisees comment and suggestion

Figure 3.27

From the results it can be seen that appraisees comments and suggestion are not taken into

consideration before Performance Appraisal. Performance Appraisal system is designed by

appraiser without consulting appraisee.


61/79

11. Performance Appraisal

Figure 3.28

It is evident from the results that performance appraisal is conducted by the immediate

Supervisor in all the companies.


62/79

12. Understanding of Apprasiees Job

Figure 3.29

From this it is clearly seen that according to appraiser there is a clear and joint

understanding of the appraisees job.


63/79

13. Standards for Performance Appraisal

Figure 3.30

From results it is evident that Performance appraisal standards are very well

communicated to Appraisee before the Appraisal is carried out.


64/79

14. Self-rating in Performance Appraisal

Figure 3.31

From results it can be clearly seen that the Appraisee is not given a chance to rate his own

performance.


65/79

15. Action after Performance Appraisal

Figure 3.32

This shows that most of the companies act upon the results of their Performance

Appraisal program.


66/79

4.FINDINGS AND RECOMMENDATIONS

From the survey results its evident that both the appraisees and

appraisers expectation from Performance appraisal system are the same i.e.

Determination of Promotion or Transfer and Salary Administration and

Benefits. Hence a single performance appraisal system can satisfy needs of

both the Appraiser and appraisee. Therefore the Performance appraisal program

would be designed in such a way that the appraiser would be able to analyze

the contribution of the employee to the orgaisation periodically and all the

employees who have been performing well would be rewarded suitably either by

an increase in the salary or a promotion. Through this the appraiser can also

motivate the employees who felt that they had no growth in the organisation and

serves the purpose of employee development. Thus performance appraisals can

be used as a significant tool of career planning.

Analyzing ones own strengths and weaknesses is the best way of identifying the

potentials available, rather than the other person telling. Self-appraisal is a tool to

analyze oneself. One of the most important findings was that almost all the

employees wanted self-rating to be a part of performance appraisal program

carried out by the organisation. From the responses of the appraiser we can also

see that Self rating is not encouraged by the organisations. This could therefore be

an important factor which leads to dissatisfaction among the appraisees. At the

end of the year of the appraisal period the appraisal process should begin with

self-appraisal by every employee. To appraise ones own self on key

performing targets and qualities, the appraisee would go through a process of

reflection and review. It is an established fact that change is faster when it is

self- initiated. If any employee has to improve or do better, he must first feel

the need to do so. Reflection and review is a process that enables him to feel the

need and improve more upon his strengths and weaknesses

Another point to be noticed is that even in the other forms of

Performance Appraisal also the employees expect that they should be given a

chance to rate their own performance. This ca n allow th e empl oye e to

ana lyz e o nes own Performance which gives new insights on how one is


67/79

performing and what are the critical points where he has to put his best and

improve upon

The existence of a proper complain channel was also of utmost importance to the

appraisees. They should be given a chance to convey their greviences to the top

management.

The appraisees also expect that their comments and suggestions should be taken in

to account while conducting the appraisals. This expectation is not fulfilled as the

appraisers do not take their comments and suggestions into consideration.

Therefore they should look into this matter before it leads to dissatisfaction among

the employees.

The results also indicate that the there is no communication of top management

plans and business goal to the appraisee. The appraisers on the other hand feel that

the goals and plans have been clearly communicated to the appraisees.

Communication is very essential for any system to function efficiently. Therefore

the appraisers should look into this matter and see to it that the goals and plans are

communicated effectively.

The findings suggest that for success of Appraisal system the credibility

of appraiser is of utmost importance.

As per the Appraiser, a poorly conducted appraisal system would lead to

demotivation and ineffective teamwok which will result in inefficient functioning

and low productivity in the organization. Therefore, if at all they feel there is

dissatisfaction among the appraisees they should motivate them. Achievement,

recogntion, involvement, job sat isf act ion and deve lopme nt can

motivate the employees to a large extent. Along with this satisfactory

working conditions and appropriate awards also play an important role.

A l s o a majority of employees were satisfied with the current appraisal system

although they requested for some changes.

M o s t of the employees were also not clear about the criteria on which ratings


68/79

were given to each employee while conducting the performance appraisal. Instead

of secrecy there should be openness. Because of lack of communication,

employees may not know how they are rated. The standards by which employees

think they are being judged are sometimes different from those their superiors

actually use. Proper communication of these ratings can help the employers

achieve the level of acceptability and commitment which is required from the

employ.

From the survey we can also derive that the appraisees expect a post appraisal

interview to be conducted wherein they are given a proper feedback on their

performance and they can also put forward their complaints if any. The appraisal

should also be followed up with a session of counseling which is often neglected

in many organizations. Counseling involves helping an employee to identify his

strengths and weaknesses to contribute to his growth and development. Purpose is

to help an employee improve his performance level, maintain his morale, guide

him to identify and develop his strong points, overcome his weak points, develop

new capabilities to handle more responsibilities, identify his training needs.


69/79

5. CONCLUSION

With rewards being directly linked to achievement of objectives, goal setting and

Performance App ra is al a ss ume s utmost impo rta nce . The Performance

Appraisal System has been professionally designed and it is monitored by HRD.

The implementation is the responsibility of each and every employee along with their

supervisor. There should be adequate training to the evaluator that will go a long way in

answering the quality of Performance Appraisal. In conclusion, a Performance

Appraisal is a very important tool used to influence employees. A formal Performance

review is important as it gives an opportunity to get an overall view of job

performance and staff development. It encourages systematic and regular joint-

stocking and planning for the future. Good performance reviews therefore dont just

summarize the past they help determine future performance.


70/79

Detail Rank

SalaryAdministrationand Benefits

Determination ofpromotion or transfer

Decision on layoff

Assistancein goal

Guideline for trainingPlan

An insight intoyourstrengths andweakness

6. APPENDICES

Questionsfor Appraisee

Name: ContactNo:

1. What do you expect from a Performance appraisal?

(Rank the optionsfrom 1 to 6; 1 beingmost

preferred & 6 being leastpreferred)

2. Do you know what exactlyis expectedfrom you at

work?

a. Yes

b. No

3. Areyou satisfiedwith the appraisal system?

1 2

3

4

5

(1 = Leastsatisfied;5 = Most satisfied)

4. Areyou aware ofperformance ratings?


71/79

a.

Yes

b. No

5. Do you thinkyou shouldbe givenan

opportunityto rate your own performance?

a.

Yes

b. No


72/79

6. Areyou givena chance to rate your ownperformance?

a. Yes b. No

7. Timing of Appraisals

a. Monthly

b. Quarterly

c. H a l f Yearly

d. Annual

e. Anytime

8. Does the credibility of Appraiseraffectthe Performance Appraisal

System?

a. Yes b. No

9. Isthere a complaintchannel for theemployeeswho are dissatisfied

with theperformance appraisal system?

a. Yes b. No

10. Are the standards on thebasis of which the performance

appraisal is carriedout communicatedto the employees

beforehand?

a. Yes b. No

11. Who conducts the performance appraisal?

a. Immediatesupervisor

b. Peerappraisal

c. Rati ng committees

d.Self-rating

e. Appraisalby subordinates

12. Isthe performance Appraisal successful in giving a clearunderstanding

oftheappraiseesjob to both appraiserand appraise?

a. Yes b. No


73/79

13. Do you want yourcomments and suggestionsto be taken

into considerationduring appraisal?

a. Yes b. No

14. Isthere a post appraisal interviewconducted?

a. Yes b. No


74/79

Questionsfor Appraiser

Name: ContactNo:

1. Purpose of Performance appraisal:

(Rank the optionsfrom 1 to 6; 1 beingmainpurpose & 6

being lastpurpose)

Detail Rank

Salary Administration and Benefits

Retain performing employees

Determination of promotion or transfer

Decision on layoff

Assistance in goal

Guideline for training Plan

Isthe Performance Appraisal helpingyou to planyour work

well?

1 23

4

5

(1 = Leasthelpful; 5 = Most helpful)

2. Does the system provideyou a chance to communicate

the support you needfromyoursubordinateto perform the

job well.

a. Yes b. No

3. Which appraisal systemisbeingemployedin the

company?

a.

Asses

sment


75/79

Centr

e

b.

MBO

c. BA RS

d. 360

degree

feedbac

k

e.

Balance

scorecar

d

4. Performance

Appraisal criteriaa. Quantitativeoutcome criteria(Sales

volume, Salesprice, Productivity, Goal

accomplishmentrate)

b. Qualitativeprocesscriteria(Quality ofproduct

or service,Customersatisfaction)

c. Qua nt i ta t ive processcriteria

(Efficiency, Cost/expenses,

Attendance)

d. Qualitativeprocesscriteria (Judgment, Work

a t t i tude ,Leadership, Conduct /Trait)

5. Timing

of

Appraisals

a.

Monthl


76/79

y

b. Quarterly

c

.

H

a

l

f

Y

e

a

r

l

y

d

.

A

n

n

u

a

l

e. Anytime

6. What do you think is the effect of a poor

appraisal system?

a. De-motivation

b. Retention

c. Ineffectiveteamwork

Does the appraisal sys tem prov ide a goo d communication


77/79

between the top- managementplansandbusiness

goalsto staffbelow?

a. Yes b. No

Does it give insightto appraiseeregardinghisstrength or

weakness?

a. Yes b. No

7. Are employeescomments and suggestionstaken into

consideration beforetheappraisal?

a. Yes b. No

8. Who conducts the performance appraisal?

a.

Immedi

ate

supervis

or

b.Peer

appraisal

c.

Ra t in

g

comm

ittees

d.

Self-

rating

e. Appraisalby subordinates

9. Isthe performance Appraisal successful in giving a clear

understanding oftheappraiseesjob to both appraiserand

appraise?

b. Yes b. No

10. Arethe standards on thebasis of which the


78/79

performance appraisal is carriedout communicatedto

the employeesbeforehand?

a. Yes b. No

11. Do you givean opportunityto the appraiseeto rate his

ownperformance?

a. Yes b. No

12. Do you act upon the results of yourperformance appraisal?

a. Yes b. No

13. Ifyes, then mentionthe remedial measurestaken?


79/79

BIBLIOGRAPHY

w w w .goog le.com

w w w .s cr ibd.com

w w w .c ityhr.com
http://www.google.com/http://www.scribd.com/http://www.cityhr.com/http://www.google.com/http://www.scribd.com/http://www.cityhr.com/

New HRM Project_2003

Documents

Transcript of New HRM Project_2003