A Study on

PERFORMANCE APPRAISAL SYSTEM

With reference to UNICORP GROUP OF COMPANIES

A project report submitted to the Department of Management Studies in Partial fulfillment for the Award of the Degree of

Master of Business Administration

Submitted by

SUNIL SINGH YADAV

Under the Guidance of

AMPU HARIKRISHNAN (Faculty Member,M.B.A. Programme)

PRATAP UNIVERSITY (2011-2013)

CERTIFICATE This is to certify that the project report entitled A STUDY ON PERFORMANCE APPRAISAL SYSTEM with reference to UNICORP GROUP OF COMPANIES, Submitted by SUNIL SINGH YADAV Final M.B.A, in the partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Pratap University, During the academic year (2011-2013).

Project Guide Department

Head of the

ACKNOWLEDGEMENT
It gives me great privilege and honour to offer thanks to all those who helped me in my project. I would like to extend my sincere thanks and gratitude to my project guide Mr. Ampu Harikrishnan for acting as a mentor and as a catalyst during entire duration of my project. I also thank him for providing continuous cooperation support and expert guidance throughout my project, whenever needed. I also thank all the Department Managers for showing keen interest in the study and for giving their valuable suggestions from time to time, as and when required and also for rendering all possible help during the time when the study was conducted. I express my cordial thanks and acknowledgements to all front hand employees for taking out time from their busy schedule and providing me with relevant information, which contributed significantly in my project analysis and increased my knowledge in a totally new sphere. It was great interacting with the customers of various frequencies and learning from their experiences.

PREFACE

In spite of the theoretical knowledge gained through classroom study, a person is incomplete if not subject to practical exposure of real corporate world and may have to face hurdles, which will be difficult to overcome without any first hand experience of business. In this context 45 days of summer training has been design to make the person aware of happening of the real business world .

CONTENTS

Certificate Acknowledgement Preface

CHAPTERS CHAPTER-1
INTRODUCTION NEED FOR THE STUDY
IMPORTANCE OF THE STUDY OBJECTIVES OF THE STUDY METHODOLOGY LIMITATIONS

Page no 6-15
7 9 10 12 13 15

CHAPTER-2 COMPANY PROFILE

16-25

CHAPTER- 3
CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

26-53

CHAPTER- 4
DATA ANALYSIS & INTERPRETATION 5

54-71

CHAPTER-5 FINDINGS & SUGGESTIONS

CONCLUSION ANNEXURES BIBLIOGRAPHY

72-75

76-81 82-83

CHAPTER - 1

INTRODUCTION

Human Resources Management:

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human resource management (HRM) is the strategic and coherent approach to

the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.
[1]

The terms "human resource management" and "human resources" (HR) have largely replaced

the term "personnel management" as a description of the processes involved in managing people in organizations.[1] In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

Human Resources Development:

Human Resource Development (HRD) is the framework for helping employees develops their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.

The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers. Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases.

Performance Appraisal System:

Performance appraisal refers to all the formal procedures used to evaluate an individual, his contributions and potential. In other words, it is to plan and measure the performance of an individual in terms of the requirement of the job or it is a process of finding out how effective the organization has been at hiring and placing an employee. Performance appraisal is a formal system of review and evaluation of individual or team task performance. While evaluation of team performance is critical when teams exist in an organization, the focus of performance appraisal in most firms remains on the individual employees. Regardless of the emphasis, an effective appraisal evaluates accomplishments and initiates plans for development, goals and objectives.

NEED FOR THE STUDY

Appraising the performance of individuals, groups and organizations is a common practice of all societies. While in some instances these appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Consciously of unconsciously evaluate our own actions from time to time. In social interactions, performance is conducted a systematic and planned manner to achieve widespread popularity in recent years. Performance appraisal is essential to understand and improve the employee's performance through HRD. In fact, performance appraisal is the basis fore HRD. It was viewed performance appraisal was useful to decide upon employee promotion / transfer salary determination and the like. But the recent developments in human resources management indicate that performance appraisal is the basis for employee development. Performance appraisal indicates the level of desired performance level, level of actual performance and the gap between these two. This gap should be bridged through human resources development techniques like training executive development etc. According to the past survey it was noticed that the performance appraisal system in this company was not up to the mark. Hence there would be scope for giving few suggestions as per my knowledge to improve the performance appraisal system which was quite essential for the better performance of the employees.

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IMPORTANCE OF THE STUDY

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.

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Communicate Divisional and Company Goals 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.

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OBJECTIVES OF THE STUDY

1.

To study the need and importance of Performance Appraisal.

2.

To portray the profile of Delta Paper Mills.

3.

To study the performance appraisal implementation in delta paper mills.

4.

To make data analysis and interpretation based on the perception of the employee in the organization.

5.

To summarize and find certain suggestions for the impotent of Performance Appraisal system in the company.

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METHODLOGY OF THE STUDY

After the objective of the study has clearly stated, the next step in formal research project is to determine the source from which the data is required to be collected. The data collection is an interesting aspect of the study achieving data effectively the information consists of two types of data. The diagram is as follows:

Data collections:

a) Primary data:
The primary data are those, which are collected freshly and for the first time, from the employees directly. It is collected through the following methods. 1. Questionnaire: A structure of questionnaire was prepared and distributed among the employees & workers. 2. Interview: Personal interviews and interaction with the employees and

contractor labour. 3. Observation: By observing the working environment.

b)Secondary data:

The secondary data are those which have already been collected by someone or else which have been passed through statistical process. Sources of secondary data can be categorized into two broad categories named published and unpublished statistics. Various sources are available namely books, synergies monthly (Chakaravahini) books etc. and also collected from various files, records and synergies casting Ltd.
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Size:
A sample of 40 employees has been selected .Although it looks to be a small sample keeping in view the large number of employees it has to be limited because of time constraint(8 weeks).Even then the sample size is not considered to be small. It is enough to draw conclusions.

Type:
Since employees from all levels (strata) namely the top level, the middle level, and the lower level are bound to experience stress, the sample has to include employees from all levels. Stratified random sampling technique was selected while preparing questionnaire as this was the only technique that helped to draw conclusions accurately.

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LIMITATIONS OF THE STUDY

As the study revolves around the performance appraisal of human resources aspects the overall organization performance cannot be ascertained. In spite of giving honest and sincere efforts there are several limitations, which are as follows:
a) The period of study is only for about 45 days, which is a major constraint.

b)

The perception bias or attitude of the respondents may also act as hurdles to the study. c) The study is only confined to performance appraisal. d) The study cannot be oriented with all HRM practices followed by e) The sample size taken for the research is small due to the constraint of time.

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CHAPTER -2 COMPANY PROFILE

Introduction:

17

The UNICORP GROUP OF COMPANIES PVT LTD Located at mumbai is one of the leading company for air conditions. The Unicorp Group was founded in the year 1953 with its primary business of marketting and installing Airconditioning systems with the core philosophy of care, commitment and utmost sincerity and honesty to the customer which has paid very rich dividends through the 54 years of its existance and has led to it's current form of being a totally multifaceted diversified group having a firm foothold in various businesses including Airconditioning, Security Systems, Power Management and Conservation Systems, Green Building & Consultancy, Property and Lifestyle products, Building Management Systems, Facilities Management and Marine Solutions but with the absolutely same vision and a singleminded determination to serve the customer dilligently and offer the best products at the best values.

The company is a fully ISO 9001 :2000 certified organisation and has a full fledged setup in 7 cities all over India and now provides direct and indirect employment to more than 1,500 personell in various capacities and serving more than 450 large corporations and tens of thousands of individuals and smaller companies with one of the most efficient and state of the art core customer service centre dedicated to the group with more than 300 dedicated lines to offer it's customers absolutely unparallel priority service across the groups activities.

Unicorp Airconditioning

18

Airconditioning and ventilation systems still remains our biggest and core business and we are the distributors of Mitsubishi, LG, Daewoo, Daytek, General, Onida, York, ETA, Godrej, and a further 17 leading airconditioning brands. We are also the recipients of a vast number of Sales and Service awards from various manufacturers and are the single largest distributors of Mitsubishi airconditioning systems in the whole of India for five years in a row. We are also the single largest distributors of Daewoo and Daytek range of airconditioning systems in the entire country and similiarly also the largest distributors of LG commercial airconditioning systems in the whole of India.

Unicorp Project management

Our group company Unicorp Consultancy is a totally dedicated Project management and consultancy company overseeing entire building projects right from the construction stage to entire scheduled completion along with HVAC, Security systems, ACP, glazing, elevators, fire fighting systems etc. with total emphasis on quality control , time management and stringent control over project costing and execution.

Unicorp Security Solutions

Our sister concern and our group company Unicorp Security Solutions and Argus Electronic Solutions are also in the business of total electronic security systems consisting of CCTV's , Digital Video Recorders and surveilence systems, biometric readers , fire fighting systems and also data management and access control systems etc. We have a vast team of highly dedicated and trained engineers who totally design and install these systems with utmost precision. We are also one of the largest providers of maintainance contracts for the same and are a leading force in the banking and commercial sectors as total electronic solution providers.

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Unicorp Lifestyles and Properties

Our ancillary company Unicorp Lifestyles and Properties is also a pioneer in the business of property development and also in Marketting of high end exclusive properties and other lifestyle products with strategic tieups with various reputed builders and Corporates offering exclusive properties that enhance the quality of life and work as well as providing an excellent investment opportunity to the discerning buyers. We also have our own team of senior lawyers who at a nominal cost certify the legal paperwork and make the ownership experience a pleasurable and hasslefree one.

Unicorp Power Systems

Our other group company Unicorp Power Systems specialises in energy saving and conservation devices such as the revolutionary Ecopower which considerable reduces energy usage of airconditioning units , state of the art light chokes that save electricity, advanced water heating systems that dramatically reduce the power bills, solar and wind solutions as well as special energy saving glass panels and films that help cut solar radiation and thus save a considerable amount in energy costs. In other words we can completely carry out an entire energy audit of any building or commercial structure and then single handedly implement a plethoria of techniques and devices to ensure a dramatic saving in electricity cost and substantially reduce the carbon footprint on this Earth's fragile enviroment.

Unicorp Marine Solutions

We are distributors for high end luxury yachts such as dockers and all other type of marine vessels for recreation and commercial usage which are all officially imported and fall within the purview of the warrantees extend by the manufacturer.

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We also specialize in arranging various types of charters, round trips and also specialize in high end theme parties on luxury yachts complete with decorations, deejays and international cuisine through our sister companies.

We also undertake complete upkeep and maintenance of any type of vessel on a yearly contract basis or a charter contract basis and provide you with all turnkey services such as captains, tindels, and housekeeping and even dry docking during the monsoons.

Unicorp Advertising and Media Solutions

Media and Creative Concepts our group company is a full fledged advertising agency and an event management company covering the entire spectrum of advertising including creative conceptualization and execution of entire film, media and ad campaigns, and also including entire organizing and hosting of events such as parties, exhibitions, conferences and award ceremonies on a turnkey basis including construction of stages, sets and props through our sister concern group companies. We'll help you select options that will provide the biggest impact at the right price.

Unicorps network of creative professionals is always available to create promotions and advertising that work. Our experience with multi-media services is aimed at the hearts and minds of your intended audience. By initiating fresh ideas and using big picture thinking, and in collaboration with our clients, the desired result is achieved

We have a large team of professionals who diligently strive with the single minded objective to add value to our clients brand and come up with creative concepts and campaigns that bring value to their product and services.

Unicorp Facilities Management

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We also through our facilities management company can take up the total maintainance and upkeep of entire buildings, large commercial offices and housing societies which would include total security, housekeeping, concierge facilities as well as overall maintainance and upkeep at most competitive rates.

List of Clients:
(1) Jet Air Ltd. (Approx. 150,000 sq. ft.) (2) Enam Securities and Group Companies (Approx. 4 Lac sq. ft.) (3) R. K. Studios (Approx. 20 lakh cu. ft.) (4) Tata Asset Management & other Tata Group Cos (Approx. 1,45,000 sq. ft.) (5) Building for Vasudha Developers at Juhu (Approx. 1 lakh sq. ft.) (6) Mr. Amitabh Bacchhans Offices and Janak building at Juhu (Approx. 70,000 sq. ft.) (7) B. Arunkumar Jewellers (Approx. 70,000 sq. ft.) (8) Mr. Haresh Jhaveris Building at Juhu (Approx. 30,000 sq. ft.) (9) Entire Aravali building for Kothari Builders at Ridge Rd. (Approx. 1,80,000 sq. ft.)
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(10) Rivergate Resorts (Approx. 400 tons) (11) Percept Group (Approx. 70,000 sq. ft.) (12) Buildings and offices for Rohan Group (Approx. 20,000 sq. ft.) (13) Chowgule Group in Mumbai, Goa & including their building in Pune. (14) Sanghvi Exports (Approx. 15,000 sq. ft.) (15) Raheja House at Khar (Approx. 7,000 sq. ft.) (16) Hotel Airlink (Approx. 40,000 sq. ft.) (17) Notamdas Building (Approx. 55,000 sq. ft.) (18) Entire Hind Vidya Bhavan Academy building at Marine Lines. (Approx. 50,000 sq. ft.) (19) Radio Club (20) Davars Colleges and Group Cos & Shiamak Davar (Approx. 35,000sq.ft.) (21) Hotel Dukes Retreat Resort (Lonavla) and Group Cos (Approx. 31,000 sq. ft.) (22) Entire building of Global Vipassana Foundation (Essel Group) (23) ABG Heavy Industries. (24) Rajiv Gandhi Institute of Technology.

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(25) Siro Group of Companies (Approx. 20,000 sq. ft.) (26) Indian Writing Instruments Ltd. (Approx. 17,000 sq. ft.) (27) Cottage Industry Exposition Showrooms (Approx. 20,000 sq.ft.) (28) General Motors (Approx. 40,000 sq.ft.) (29) Entire Building for J.Master (Approx. 70,000 sq.ft.) (30) Royal Bombay Yatch Club (Approx. 7,000 sq.ft.) (31) UPS offices (Approx. 18,000 sq.ft.) (32) Nanavati Group (33) Birla Group (including Yantra and various commercial and residential properties) (34) Mr. Kumar Gauravs Residential building at Pali Hill. (35) Two Residential Buildings for Viraj Steel (Approx. 30,000 sq.ft.) (36) Complete buildings for Pudumjee Group. (37) Rolly, Lily and Dania Jewellery Group - Seepz(Approx. 1,50,000 Lac sq.ft.) (38) Complete air-conditioning of entire V.N. Sphere at Linking Road. (39) Complete air-conditioning of entire 40 storey building for Kamdar builders along with 1 lakh sq. ft. of attached commercial space at Tardeo.
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(40) Entire P.Jain building in Delhi. (41) Entire air-conditioning of Sahaj Building at Juhu measuring (80,000 sq. ft.) (42) Strategic precision air-conditioning installations at Bombay House & Taj Mahal Hotel.

Personnel Philosophy of Management:

. The personal or with outstanding experience in airconditon assembling and other major industries with proven track record in their respective professions with outmost dedication to achieve the companys objective. The company adopted modern management philosophy and believes in human resources development as a pre-requisite for optional growth of the organization. To the growth and development of the employees opportunities are provided to improve their performance and professional competence by appropriate exposure to nee based training and development programs. Welfare, sports and recreation facilities are provided to the employees in best traditions of the organization. The plant provides direct employment to around 20000 persons. The trust of the policies of directed towards the adoption of appropriate systems of management for providing security to share holders, speed in decision making, service to the customer and success of the employees exposes in the achievement of companies objectives.

Environment Policy:

25

Unicorp has the policy of modifying and upgrading the existing technologies and processes. Implementing eco-friendly measures for minimizing waste generation, resource conservation and prevention of pollution of contribute to wars environmental improvement.

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CHAPTER -3

CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

Introduction:

27

Appraising the performance of individuals, groups and organizations is a common practice of all societies. While in some instances these appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the performance of students, bankers evaluate the performance of creditors, parents evaluate the behaviour of their children, and all of us, consciously or unconsciously evaluate our "own actions from time to time. In social interactions, performance is conducted in a systematic and planned manner to achieve widespread popularity in recent years.

Meaning:
Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of hob 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 and not efforts. Some of the important features of performance appraisal given, they are:
1. Performance appraisal is the systematic description of an employee's job- relevant strengths and

weaknesses.
2. The basic purpose is to find out how well the employee is performing the job and establish a plan of

improvement. 3. Appraisals are arranged periodically according to a definite plan.

4.

Performance appraisal is not job evaluation. Performance appraisal 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.

Use of Performance Appraisal:

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1. Performance appraisal is helpful in assessing a firms human resources data must be

available that describe the promobility and potential of all employees. 2. A well designed appraisal system provides a profile of the organization's human 3. Performance evaluation ratings may be helpful in predicting the performance of job applicants. 4. Performance appraisal will point out employee specific needs for training and development. 5. Performance appraisal is useful in career planning and development. 6. Performance appraisal results provide a basis for rational decisions regarding 7. Performance appraisal data are also frequently used for decisions in several areas of internal employee relations, including promotion, demotion, termination, lay-off. and transfer. 8. Performance appraisal is useful in assessment of employee potential. 9. Performance appraisal can be used to determine whether HR programmes such as selection, training, and transfers have been effective or not. compensation programmes. resource strengths and weaknesses to support this effort.

Objectives of Performance Appraisal:

Performance appraisal aims at attaining the different objectives, they are 1. To create and maintain a satisfactory level of performance. 2. To contribute to the employee growth and development through training, self and management development programmes. 3. To help the superiors to have a proper understanding about their subordinates 4. To facilitate fair and equitable compensation based on performance. 5. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks.
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6. To provide information for making decisions regarding lay off, retrenchment etc. 7. To ensure organizational effectiveness through correcting employee for standard and improved performance, and suggesting the change in employee behavior.

Appraisal Process:

Each step in the process is crucial and is arranged logically. Many organizations make every effort to approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately, many others fail to consider one or more of the steps and, therefore have lesseffective appraisal system.

Objectives of Performance appraisal Establish job Expectations

Design an appraisal Programme

Appraise performance

Performance Interview

Use appraisal data for 30 appropriate Purpose

1. Objectives of Appraisal:
Objectives of appraisal include effecting promotions and transfers, assessing training needs, awarding pay increases, and the like. The emphasis in all these is to correct the problems.

2. Establish job expectations:

The second step in the appraisal process is to establish job expectations. This includes

informing the employee what is expected of him or her on the job.

3. Design appraisal programme:

Designing an appraisal programme posses several questions which need answers. They are:
(i) (ii) (iii) (iv) (v) (vi) (vii) (viii)

Formal versus informal appraisal; Whose performance is to be assessed? Who are the raters? What problems are encountered? How to solve the problems? What should be evaluated? When to evaluate? What methods of appraisal are to be used?

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4. Performance Interview:
Performance interview is another step in the appraisal process. Once appraisal has been made of employees, the raters should discuss and review the performance with the rates, so that they will receive feedback about where they stand in the eyes of superiors.

5. Use of Appraisal data:

The final step in the evaluation process is the use of evaluation data. The data and information generated through performance evaluation must be used by the HR department.

Methods of Performance Appraisal:

With the evaluation and development of appraisal system, a number of methods or techniques of performance appraisal have been developed.The important among them.

Traditional Methods 1) Graphic Rating Scales:

Graphic rating scales compare individual performance to an absolute standard. In this method, judgments about performance are recorded on a scale. This is the oldest and widely used technique. This method is also known as linear rating scale or simple rating scale. The appraisers are supplied with printed forms, one for each employee. These forms contain a number of objectives, behavior and trait - based Qualities and characters to be rated like quality and volume of work, job knowledge, dependability, initiative, attitude etc., in the case of workers and analytical ability, creative ability, initiative, leadership qualities, emotional stability in the case of managerial personnel. These forms contain rating of scales. Rating scales are of two types, viz., continuous rating scale and discontinuous rating scales. In continuous order like o, 1, 2, 3, 4 and
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5 and in discontinuous scale the appraiser assigns the point to each degree. The points given by the rater know performance regarding each character. The points given by the rater to each character are added up to find out the overall performance. Employees are ranked on the basis of total points assigned to each one of them. One reason for the popularity of the rating scales is its simplicity, which permits many employees to be quickly evaluated. Such scales have relatively low Design cost and high in case of administration. They can easily pinpoint significant dimensions of the job. The major draw back to these scales is their subjectivity and low reliability. Another limitation is that the descriptive words often used in such lies may have different meanings to different raters.

2) Ranking Method:
Under this method the employees are ranked from best to worst on some characteristics. The rater first finds the employee with the highest performance and the employees with the lowest performance in that particular job category and rates the former as the best and the later as the poorest. Then the rater selects the next highest and next lowest and so on until he rates all the employees in that group. Ranking can be relatively easy and inexpensive, but its reliability and validity may be open to doubt. It may be affected by rater bias or varying performance standards. Ranking also means that somebody would always be in the backbench. It is possible that the low ranked individual in one group may turnout to be superstar in another group. One important limitation of the ranking method is that size of the different between individuals is not well defined. For instance, there may be little difference between those ranks third and fourth.

3) Paired Comparison Method:

This method is relatively simple. Under this method, the appraiser ranks the employees by comparing one employee with all other employees in the group, one at a time. As illustrated, this

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method results in each employee being given a positive comparison total and a certain %age total positive evaluation.

Example: A B C D E

A -

B A -

C A C -

D A D D -

E A E E E -

To compute Employee's positive evaluations: Number of positive evaluations number of evaluations Employee A Employee B Employee C Employee D X 100 = Employee's % Superior evaluation Total

(4/4)* 100=100% Employee E

(0/4)* 100=0%

(2/4)* 100=50%

(1/4)* 100=25%

(3/4) * 100 = 75%

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4) Forced Distribution Method:

The rater may rate his employees at the higher or at the lower end of the scale under the earlier methods. Forced distribution method is developed to prevent the raters from rating too high or too low. Under this method, the rater after assigning the points to the performance of each employee has to distribute his ratings in a pattern to conform to normal frequency distribution. Thus, similar to the ranking technique, forced distribution requires the raters (supervisors) to spread their employee evaluation in a prescribed distribution. This method eliminates central tendency and leniency biases. However, in this method employees are placed in certain ranked categories but not ranked within the categories. Quite often work groups do not reflect a normal distribution or individual performance. This method is based on the questionable assumption, as group of employees will have the same distribution of excellent, average and poor performers. If one department has all outstanding employees, the supervisor would find it extremely difficult to decide who should be placed in the lower categories. Difficulties can also arise when the raters most explain to the employee why he was placed in one grouping and others were placed in higher groupings.

5) Checklist Methods:

The Checklist is a simple rating technique in which the supervisor is given a list

of

statement or words and asked to check statements representing the characteristics and performance of each employee. There are three types of checklist methods, viz, simple checklist, weighted checklist and forced choice method.

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(a) Simple Checklist Method:

The checklist consists of large number of statements concerning employee behavior.

Checklist of Qualities:
1. Behavior is the employee punctual in attending the office? A) Yes 2. B)No

Does the employee behave courteously with his superiors? A) Yes B) No

3. Does the employee maintain sound customer relations'? A) Yes 4. Is the employee sincere in doing his job? A) Yes B) No B) No

The rater checks to include if the behavior of an employee is positive or negative to each statement. Employee performance is rated on the basis of number of positive checks. The negative checks are not considered in this method. A difficulty often arises because the statements may appear to be virtually identical in describing the employee. The words or statements may have different meanings to different raters.

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(b)Weighted Checklist:

The weighted checklist method involves weighting different items in the checklist having a series of statements about an individual, to indicate that some are more important than others. The rater is expected to look into the questions relating to the employee's behavior, the attached rating scale (or simply positive /negative statements where such a scale is not provided) and tick those traits that closely describe the employee behavior. Often the weights are not given to the supervisors who complete the appraisal process, but are computed and tabulated by someone else, such as a member of the personnel unit. In this method the performance ratings of the employee are multiplied by the weights of the statements and coefficients are added up. The cumulative coefficient is the weighted performance score of the employee. Weighted performance score is compared with the overall assessment standards in order to find out the overall performance of the employee. The weighted checklist, however, is expensive to design to design, since checklist for each different job in the organization must be produced. This may prove time consuming also in the end. Though the weighted checklist method is evaluative as well as development, it has the basic problem of the evaluator not knowing the items, which contribute mostly of successful performance.

(C) Forced Choice Method:

This method was developed at the close of World War II. Under this method, a large number of statements in groups are prepared. Each group consists of four descriptive statements (treated) concerning employee behavior. Two statements are most descriptive (favorable) and two are least descriptive (unfavorable) of each m tetrad. Sometimes there may be five statements

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in each group out of which one would be neutral. The actual weightings of the statements are kept secret. The appraiser is asked to select one statement that that mostly describes employee's behavior out of the two favorable statements are kept secret. The appraiser is asked to select one statement that that mostly describes employee's behavior out of the two unfavorable statements. The items are usually a mixture of positive and negative statements. The intent is to eliminate or greatly reduce the rater's personal bias, specially the tendency to assign all high or low ratings. The items are designed to discriminate effective from ineffective workers as well as reflect valuable personal qualities.

6) Critical Incident Method:

Employees are rated discontinuously, i.e., once in a year or six months under the earlier methods. The performance rated may not reflect real and overall performance, as the rater would be serious about appraisal method, i.e., critical incident method has been developed. Under this method, the supervisor continuously records the critical incidents of the employee performance or behavior relating to all characteristics (both positive and negative) in a specially designed notebook. The supervisor rates the performance of his subordinates on the basis of notes taken by him. Since the critical incident method does not necessarily have to be a separate rating system, it can be fruitfully employed as documentation of the reasons why an employee was rated in a certain way. The critical incident method has the advantage of being objective because the rater considers the records of performance rather than the subjective points of opinion.

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7) Essay or Free From Appraisal:

This method requires the manager to write a short essay describing each employee's performance during the rating period. This format emphasizes evaluation of overall performance, based on strengths weakness of employee performance, rather than specific job dimensions. By asking supervisors to enumerate specific examples of employee behavior, the essay technique minimizes supervisory bias and halo effect.

8) Group Appraisal:

Under this method, an employee is appraised by a group of appraisers. This group consists of the immediate supervisor of the employee, to other supervisors who have close contact with employee's work, manager or head of the department and consultants. The head of the department or manager may be the chairman of the group and the immediate supervisor may act as the coordinator for the group activities. This group uses any one or multiple techniques discussed earlier. The immediate supervisor enlightens others members about the job characters, demands, standards of performance etc. Then the group appraises the performance of the employee, compares the actual performance with standards, find out the deviations, discusses the reasons therefore, suggests ways for improvement of performance, prepares action plans, studies the need for change in job analysis and standards and recommends change, it necessary. This method is widely used for purpose of promotion, demotion and retrenchment appraisal.

39

9) Confidential Report:

Assessing the employee's performance confidentially is a traditional method of performance appraisal. Under this method, superior appraises the performance of his subordinates based on his observations, judgments and institutions. The superior keeps his judgment and report confidentially. In other words the superior does not allowed the employee to know the report and his performance. Superior writes the report about his subordinates, strengths. Weakness, intelligence, attitude to work, sincerity, commitment, punctuality, attendance, conduct, character, friendliness, etc, Though confidential report is a traditional method, most of the public sector organizations still follow this method in appraising the employee's performance. This method suffers from a number of limitations.

40

Modern Methods 1) Behaviorally Anchored Rating Scales (BARS):

The Behaviorally Anchored Rating Scales (BARS) method combines elements of the traditional rating scales and critical incidents methods. Using BARS, job behaviors from critical incidents effective and ineffective behaviors are described more objectively. The method employs individuals who are familiar with a particular job to identify its major components. They then rank and validate specific behaviors for each of the components. BARS require considerable employee participation; its acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also claim that such a system differentiates among behavior, performance and results, and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job - specific and identities observable and measurable behavior, it is more reliable and valid method for performance appraisal.

2)

Assessment Centre:

This method of appraising was first applied in German Army in 1930. Later business and industrial houses started using this method. This is not a technique of performance appraisal by itself. In fact it is a system or organization, where assessment is done by several individuals and also by various experts by using various techniques. In this approach individual from various departments are brought together to spend two or three days working on an individual or a group assignment similar too the ones they'd be handling when promoted. All assess get an equal opportunity to show their talents and capabilities and secure promotion based on merit. An assessment model is shown below. Human Resource Accounting deals with cost of and contribution of human resource to the organization. Cost of the employee includes cost of manpower planning, recruitment, selection, induction, placement, training, development, wages and benefits etc. employee contribution is
41

the money value of employee service which can be measured by labour productivity or value added by human resources.

3) Management by objectives:

Although the concept or management by objectives was advanced by Peter F.Duckers way back in 1954, it was described only recently as 'large range' in performance appraisal. Refinements brought out by George Odione, Valentines, Humble and others have enriched the concept and made it more acceptable all over the globe as an MBO in their work settings. Some of the companies which implemented MBO reported excellent results, others disappointments, and many in decisions. Started briefly, MBO is a process whereby the superiors and subordinate managers of an organization jointly identify its common goals, define each individual's major areas of responsibility in terms of results excepted of him, and use these measures of guides for operating the unit and assessing the contribution of its members. Generally, the unit and assessing the contribution of its members. Generally the 1VIBO is undertaken along the following lines. The subordinate and superior jointly determine goals to be accomplished during the appraisal period and what level of performance is necessary for the subordinate to satisfactory achieve specific goals. During the appraisal period the superior and subordinate update and later goals as necessary due to changes in the business environment.

4) Psychological Appraisal:
Psychological appraisal are conducted to asses the employee potential, Psychological appraisal consist of (a) In - depth interviews (b) Psychological tests (c) Consultations and discussions with the employee
42

(d) Discussions with the superior's sub-ordinates and peers (e) Reviews of others evaluations. Evaluation is conducted in the areas of (a) employee's intellectual abilities, (b)Emotional stability, (c) motivational responses, (d) sociability, (e) employees ability to comprehend the vents, and (f) ability to foresee the future.

5) Counseling:

After the performance of the employee is appraised, the superior should inform the employee about the level of his performance, the reason for the same, need for and the methods of improving the performance. The superior should counsel the employee about his performance and the methods of improving it. Counseling is a planned, systematic intervention in the life of an individual who is capable of choosing the goal and the direction of his development. Thus, the purpose of counseling is to help the employee aware of his own performance, his strengths and weakness, opportunities availabilities available for performance counseling can be done in the form of performance interview by the superior.

The Post Appraisal Interview:

The post appraisal interview has been considered by most of the organizations, as well as employees, as the most essential part of appraisal system. This interview provides the employee the feedback information, and an opportunity to appraiser to explain the employee his rating, the traits and behavior he has taken into consideration for appraisal etc.

43

It also gives the opportunity to employee to explain his views about the rates, standards or goals, rating scale, internal and external environment causes for low level of performance, his resources responsible for performance etc. further it helps both the parties to review standards, set new standards based on the reality factors, and helps the appraiser to offer his suggestions, help, guide and coach the employee for his advancement. Thus, the post appraisal interview is designed to achieve the following objectives.

1. To let employees know where they stand. 2. To help employees do a better job by clarifying what is expected of them; 3. To plan opportunities for development and growth; 4. To strengthen the superior -subordinate working relationship by developing a mutual agreement of goals;
5. To

provide

an

opportunity

for

employees

to

experience

themselves

on

performance related issues.

Relating Performance Appraisal to Rewarding:

Management should recognize and performance. The forms of recognizing and rewarding performance include: (a) Private and public praise, (b) Written commendation, (c) published commendation, (d) increased autonomy, (e) change in job title, (f) Status symbols like office space, furnishings, (g) performance bonuses,
44

(h) salary increases, Managers should match the rewards both with performance and with the perception and needs of the employee.

6) Managerial Appraisal:
It is relatively easy to appraise the performance of technical or operative employees compared to managerial personnel. This is because; the performance of operative employees can be measured quantitatively, whereas the performance of managers cannot be determined quantitative terms. Harold Koontz has developed a concept of managerial functions, viz., planning, organizing, leading motivating, staffing and controlling. Performing a number of or series of activities can perform each of these functions. For example, performing staffing functions requires performing a series of activities like analyzing jobs of his department, planning for human resources, deciding upon internal and external recruitment. Thus each function and sub functions of manager are elaborated into a series of activities. The checklist contain the questions in these areas is prepared with a five degree rating scale, i.e., externally poor performance, neither poor nor fair performance and externally fair performance. Thus this technique measures the performance of managers in managing organizational environment. Importance of performance appraisal: For many organizations the primary goal of an appraisal system is to improve individual and organizational performance. There may be other goals, however. In fact, performance appraisal data are potentially valuable for virtually every human resource functional area.

45

System Of Performance Appraisal:

Performance appraisal is a nine-step process:
1. Establish performance standards. 2. Communicate standards/expectations to employee. 3. Measure actual performance due to the environment influences. 4. Adjust the actual performance due to the environmental influences. 5. Compare the adjusted performance what that of others and previous. 6. Compare the actual performance with standards and find out deviations, if any. 7. Communicate the actual performance to the employee concerned. 8. Suggest changes in job analysis and standard, if necessary. 9. Follow-up performance appraisal report.

At the first stage, performance standards are established based on the job description and job specification. The standard should be clear, objective and incorporate all the factors. The second stage is to inform these standards to all the employees including appraisers. The third stage is following the instructions given for appraisal, measurement of employee performance by the appraisers through observations, interviews, records and reports. Fourth stage is finding out the influence of various internal and external factors on actual performance. The influence of these factors may be either inducing or hindering the employee performance. The measured performance may be adjusted according to the influence of external and internal factors. The performance derived at this stage may be taken actual performance. Fifth stage is comparing the actual performance with that of other employees and pervious performance of the employee and others. This given an idea where the employee to the influence of external and internal factors. The performance derived at this stage may be taken actual performance.
46

Sixth stage is comparing the actual performance with the standards and finding out deviations. Deviations may be positive or negative. If employee's performance is more than standards, it is positive deviation and vice-versa is negative deviation. Seventh stage is communicating, the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for the positive or negative deviations from the pre-set standards as the case may be. Eighth stage is suggestions necessary changes in standards in standards, job analysis, and internal and external environment. Ninth stage is follow-up of performance appraisal report. This stage includes guiding, counseling, coaching and directing the employee or making arrangements for training and development of the employee in order to ensure improved performance. If actual performance is very poor and beyond the scope of improvement it is necessary to take steps for demotion or retrenchment or any other suitable measure.

47

Key elements of performance appraisal system are presented in figure below. Human Performance Performance Appraisal Employee Feedback

Performance Measures Performance Related Standards

Human Resources Decisions

Employee Records

48

The usual steps are as follows Plan the performance

Determine responsibility for appraisal Appraisal period

Examine work performed

Appraisal the results

Conduct appraised interview Discuss goals for next period

Problems in performance appraisal:

Performance appraisal has come under a heavy barrage of criticism. The list of the problems that have been associated with performance appraisal are as follows:

A potential weakness of traditional appraisal methods is that they lack objectivity.

A huge challenge that impedes an effective performance evaluation is the bias, which can be either positive or negative.

Some times halo error occurs when a manager generalizes one positive performance feature or incident to all aspect of employee performance. Leniency: - Giving an undeserved high performance appraisal rating to an
49

employee. Strictness: - Being unduly critical of an employee's work performance.

Establishment of performance appraisal criteria:

The most common appraisal criteria are traits, behaviors, competencies, goal achievement, and improvement potential. The main objective of establishment of performance criteria is to identify the aspects of a person's performance that an organization should evaluate.

Traits: Certain employee traits such as attitude, appearance, and initiative are the basis for some evaluations.

Behaviors: When an individual's task outcome is difficult to determine, organizations may evaluate the person's task related behavior or competencies. If certain behaviors result in desired outcomes, there is merit in using them in the evaluation process.

Competencies: This includes a broad range of knowledge, skills, traits, and behaviors that may be technical in nature, relate to interpersonal skills or be business oriented.

Goal achievement: If organizations consider ends more important than means, goal outcomes become an appropriate factor to evaluate. achievement

Improvement potential: When organizations evaluate their employees performance, many of the criteria used focus on the past. From a performance management view point the problem is that you cannot change the past. Unless a firm takes further steps, the evaluation data become merely historical documents. Therefore
50

firms should emphasize the future, including the behaviors and outcomes needed to develop the employee, and in the process achieve the firm's goals. This involves an assessment of the employee's potential.

Characteristics of an effective appraisal system:

The basic purpose of a performance appraisal system is to improve performance of individuals, teams, and the entire organization. The system may also serve to assist in the making of administrative decisions concerning pay increases, transfers, or terminations. In addition, the appraisal system must be legally defensible. Organizations should seek an accurate assessment of performance that permits the development of a plan to improve individual and group performance. The following factors assist in accomplishing these purposes;

Job related criteria: Job relatedness is perhaps the most basic criteria in employee performance appraisal. More specifically, evaluation criteria should be determined through job analysis.

Performance expectations: Managers and sub-ordinates must agree on performance expectations in advance of the appraisal period. On the other hand, if employees clearly understand the expectations, they can evaluate their own performance and may timely adjustments as they perform their jobs without having to wait for the formal evaluation review.

Standardization: Firm should use the same evaluation instrument for all employees in the same job categorywho work for the same supervisor. Supervisors should also conduct appraisals covering similar periods for these employees. Regularly scheduled feedback sessions and appraisal interviews for all employees are essential.

51

Trained appraisers: The individual or individuals who observe at least a representative sample of job performance normally have the responsibility for evaluating employee performance. This person is often the employee's immediate supervisor. Training should be given to these appraisers to ensure accuracy and consistency. A training module posted on the internet or company intranet may serve to provide information for managers as needed.

Continuous open communication: Most employees have a strong need to know how well they are performing. A good appraisal system provides highly desired feedback on a continuing basis. There should be few surprises in the performance review.

Performance reviews: A performance review allows them to detect any errors or omissions in the appraisal, or an employee may simply disagree with the evaluation and want to challenge it. Constant employee performance documentation is vitally important for accurate performance appraisal.

Due process: Ensuring due process is vital. If the company does not have a formal grievance procedure, it should

develop one to provide a employees an opportunity to appeal appraisal results that they consider inaccurate or unfair. They must have a procedure for pursuing their grievances and having them addressed objectively.

52

Appraisal Process Followed In unicorp group of companies :

In delta paper mills they are following one of treditional method of performance appraisal, that is critical incident method. But it is not helpful for the employees, because it is older method.

Critical Incident Technique:

This, too, is a type of appraisal for the employee alone. Here, the employee's best and worst incidents of behavior are analyzed annually. These events are the ones that are the most critical in appraising the employee.

53

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

54

Human Resources are the greatest assets for any organization. These recourses should be developed to their fullest extent for the efficient functioning of an organization and their performance needs to appraise continuously. The present study is aimed at analyzing the Performance Appraisal system at unicorp pvt ltd at mumbai. There is a felt, need and justification to conduct surveys and to know the perceptions of employees regarding existing practices. A structured questionnaire has been surveyed among 40 respondents by adopting strata technique. And their perceptions are analyzed and interpreted in this chapter. For the purpose of survey, a sample of 100 employees has been taken into consideration with a view to assess the "Performance Appraisal System" in UNICORP GROUP OF COMPANIES. performance appraisal helps in the assessment of individual potential.

55

Table-4.1 Performance Appraisal is the assessment of individual potential.

S.No. 1 2 3 4 5 Rating Scale Strongly Agree Neutral Strongly Disagree Agree Disagree Total No. of In% 17.5 10 0 72.5 0 100

Respondents 7 4 0 29 0 40

Graph-4.1

Analysis:
From the above table-4.1 it can be known that 72 % of respondents have agreed about the assessment of individual potential and 17.5 % of them have strongly agreed of the above statement and 10 % of the employees are in a neutral stage and where none of them have disagreed for the above statement. So majority of the respondents i.e. 72.5 % of the respondents have agreed about the assessment of individual potential.

56

Interpretation:
From the above analysis we can interpret that, some of the employees were in neutral position, because the appraisal system in the organization was not in a full fledge way.

Table-4.2
Performance Appraisal system followed in the organization is rational and fair. S.No. 1. 2. 3. 4. 5. Rating Scale Strongly Agree Neutral Strongly Disagree Agree Disagree Total 1 12 1 22 4 40 No. respondents 2.5 30 2.5 55 10 100 of ln%

Graph-4.2
25 20 15 10 5 0 Strongly Agree Neutral Srtongly Disagree Agree Disagree Series1

Analysis:
From the above table-4.2 it can be known that, 55% of respondents have agreed that die performance appraisal system followed in the organization rational and fair and 30 of the respondents are in neutral stage. Where as 2.5pciceiU of the respondents have agreed for the
57

above statement and 2.5petce&t of the respondents have strongly disagreed, where 10 % of the respondents have disagreed for the above statement.

Interpretation:
From the above analysis we can interpret that, some of the employees were in neutral position. Because the organization doesnt following the companys policies fairly.

Table-4.3
Job expectations are informed and the superiors set the tasks. S, No. 1. 2. 3. 4. 5. Rating Scale Strongly Agree Neutral Agree Disagree Total No. of respondents In% 3 10 24 3 40 7.5 25 0 60 7.5 100

Strongly Disagree 0

Graph-4.3

25 20 15 10 5 0 Strongly Agree Neutral Strongly Disagree Agree Disagree Series1

58

Analysis:

From the above table-4.3 it can be known that, 60% of respondents have agreed

that the job expectations are informed and the superiors set die tasks. And 25% of die respondents are in neutral stage and 7,5% strongly agree for above statement and where as 7.5% of the respondents disagree for die above statement, none of them are in a stage of strongly disagree opinion.

Interpretation: The above analysis shows that, some of employees were in neutral position.
Because the job expectations were not informed, and the tasks were not assigned by superiors properly.

Table-4.4
Performance Appraisal followed in the Organization helps to the Training and development needs of employee.
zS.No. RatingScale No. respondents 1. 2. 3. 4. 5. Strongly Agree Neutral Strongly Disagree Agree Disagree Total 6 4 0 27 3 40 15 10 0 67.5 7.5 100 of In%

Graph4.4
30 25 20 15 10 5 0 Strongly Neutral Strongly Agree Disagree Agree Disagree Series1

59

Analysis:
From the above table-4.4 it is found that, 67.5% of respondents have agreed for the performance appraisal followed in the organization helps to assess the training and development needs of employee and I5 % of them have strongly agreed in ID-% of the respondents are in neutral stage and the remaining 7.5% of the respondents are in disagreed opinion. Where none of them are is strongly disagreed opinion.

Interpretation: The above analysis states that, majority of the employees opined that a good
performance appraisal system in the organization, helps to train and develop an employee in all aspects.

Table-4.5
The Performance appraisal in the organization helps to recognize the competence and potential of an individual. S.No. Rating Scale No. respondents 1. 2. 3. 4. 5. Strongly Agree Neutral Strongly Disagree Agree Disagree Total 4 3 1 30 2 40 10 7.5 2.5 75 5 100 of ln%

60

Graph-4.5

Analysis:
From the above table-4.5 it is found that, 75% of respondents have agreed for the performance appraisal in the organization helps to recognize the competence and potential of individual and 10 % of the respondents have strongly agreed, and 7.5% of the respondents are in neutral stage and 5% are in disagreed opinion where as 2.5% of the respondents strongly disagree for the above statement

Interpretation:
The above analysis elicits that, some of the employees were in neutral and disagree position. Because the appraisal process in the organization is not that much effective.

61

Table-4.6
Employees are happy with the assessment of performance followed in the organization. S.No. Rating Scale Strongly Agree Neutral Strongly Disagree Agree Disagree Total No. respondents 1. 2. 3. 4. 5. 3 14 0 18 5 40 7.5 35 0 45 12.5 100 of ln%

Graph-4.6

Analysis:

From the above table-4.6 it is found that, 45% of respondents have agreed that

they are happy with the assessment of performance appraisal followed in the organization. And 35 % of the respondents are in neutral stage and 12.5% of the respondents are in a disagreed stage where 7.5% have strongly agreed for the above statement but none of them have strongly disagreed for this statement.
62

Interpretation:We can interpret that, most of the employees were in disagree and neutral
position. Because the assessment system in the organization was not up to the mark.

63

Table-4.7
Employees have been appraised fairly according to the company's policies. S. No. 1. 2. 3. 4. 5. Rating Scale Strongly Agree Neutral Strongly Disagree Agree Disagree Total No. respondents 2 13 0 23 2 40 of In % 5 32.5 0 57.5 5 100

Graph-4.7

Analysis:

From the above table-4.7 it is found that, 57.5% of respondents have agreed that

the employees have been appraised fairly according to the company policies and 32.5% of the respondents are neutral stage and 5% of them are strongly agree and where as 5% of the respondents disagree for the above opinions and none of them have disagree for the above opinion.

Interpretation: Here we can state that, most of the employees were in disagree and neutral
position. Because performance appraisal was not done fairly according to the companies policies.

64

Table-4.8 Advises and suggestions are given to the employees during the appraisal process.
S. No. 1. 2 3. 4. 5. Rating Scale Strongly Agree Neutral Strongly Disagree Agree Disagree Total No. respondents 3 15 0 10 12 40 7.5 37.5 0 25 30 100 of In%

Graph-4.8

Analysis:

From the above table4.8 it is found that, 30 % of respondents have disagreed that

advises and suggestions are given to the employees during the appraisal process and 25% of them have agreed and 7.5% of the respondents strongly agree and majority of the respondents i.e. 37.5% are in a neutral stage and none of them have disagreed for the above statement.

Interpretation:

The above analysis exhibits that, employees are expecting many more

suggestions and advises, during the appraisal process that would be helpful for their career.

65

Table-4.9
The employees accept the appraisal feed back as. S. No. 1. 2. 3. 4. Rating Scale Positive way Uninteresting Negative way Neutral Total No. 3 15 0 10 40 Of % 7.5 37.5 0 25 100

respondents

Graph-4.9:

Analysis:

From the above table-4.9 it is found that, 50% of respondents have a

positive way regarding acceptance of the appraisal feed back. And 47.55 of them are in a neutral opinion and 2.5% of the respondents feel it uninteresting on the above statement. And none of them have a negative acceptance of this statement

Interpretation:
This analysis shows that, employees are not much interested in taking the appraisal feedback.

66

Table-4.10 The appraiser of the company should be. S.No. 1. 2. 3. 4. Rating Scale Superior HOD Subordinate Peer groups Total No. respondents 13 25 1 1 40 of In% 32.5 62.5 2.5 2.5 100

Graph-4.10

Analysis:

From the above table-4.10 it is found mat, 62.5perecent of respondents feel

that their HOD should be their appraiser and 32.5% of them feel that their superior should be the appraisal and 2.5% of the respondents feel that their subordinates and peer groups should be the appraiser.

Interpretation: This states that, the appraiser should be the head of the department, the
employee feel that he is the right person to evaluate their performance.

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Table-4.11
Employee need to be assessed as. S.No. 1. 2. 3. Rating Scale Once in 3 months Once in 6 months Once in a year Total No. of In% 20 27.5 52.5 100

respond eents 8 11 21 40

Graph-4.11

25 20 15 10 5 0 Once in 3 Once in 6 Once in a months m onths year Series1

Analysis:

From the above table-4.11 it is found that, 52.5% of respondents feel that their

appraisal system should be once in a year and 27.5% of the respondents feel that it should be twice in a year (6 months) and where as 20% of the respondents feel that it should be for every 3 months.

Interpretation:

Here, the employees felt that, they need to be assessed once in a year, as

they felt it is a right period of time to assess the performance.

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Table-4.12
The performance appraisal followed in the organization makes the employees. S.No Rating Scale 1 2 No. of In%

Respondents Motivating 38 95 De motivating 2 5

Graph-4.12

Analysis:

From the above table-4.12 it is found that, 95% of respondents are motivated

towards performance appraisal followed in the organization and 5 % of the respondents demotivates for the above statement. So majority of the respondents i.e.. 95 % of the respondents have motivated towards the appraisal system followed in the organization.

Interpretation:
motivating factor.

From the above study, employees felt performance appraisal system as a

69

Table-4.13
Types of errors / problems have impact on performance rating in the Organization. S. No 1 2 3 4 5 6 Rating Scale No of In% 22.5 40 20 2.5 12.5 2.5

Respondents Influence 9 Attitude 16 Biased 8 Personal Grudge 1 Subjectivity 5 Status Effect 1

Graph-4.13

Analysis:

From the above table-4.13 it is observed that, appraisal system is rated by attitude

that is 40% and 22.5% of the respondents by influence and 20% by biased, 12.5% by subjectivity and 2.5% by personal grudge and remaining 2.5% by status effect.

Interpretation:

The employees opined that, attitude factor have a greater impact on the

performance appraisal system.

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Table -4.14
Feedback on Performance is communicated after assessment of the Performance. S.No Rating Scale No 1 2 Yes No of In%

Respondents 19 47.5 21 52.5

Graph-4.14

Analysis:

From the above table-4.14 it is found that, 52.5% of respondents disagree that feed

back on performance is communicated after assessment of the performance appraisal. And 47.5% of the respondents agree for the above statement. So majority of the respondents i.e. 52.5 % of the respondents have disagreed that the feedback on performance is communicated after assessment of the performance appraisals.

71

Interpretation:

Here, the some of the employees express their view that, the

performance feedback need not be communicated after the assessment, while some of them felt that it is essential.

72

Table-4.15
Employees are aware of 360-degree appraisal. S.No Rating Scale 1 Yes 2 No No of Respondents 11 29 In% 27.5 72.5

Graph-4.15

Analysis:
From the above table-4.15 it is found that, 72.5% of respondents are aware of 360degree appraisal and 27.5% of die respondents are not known of 360-degree appraisal. So majority of the respondents i.e.. 72.5 % of the respondents have agreed that they were aware of 360 degree appraisal

Interpretation:
Here from the above study it is known that, the employees are not completely aware of 360degrees appraisal system.
73

CHAPTER-5 FINDINGS AND SUGGESTIONS

74

FINDINGS
More than half of the employees (72.5%) agree that Performance Appraisal is the

assessment of individual potential.

Some of the employees (30%) neutral that Performance Appraisal system followed in

the organization is rational and fair.

Some of the employees (25%) neutral that Job expectations are informed and the

superiors set the tasks.

Most of the employees (67.5%) agree that Performance Appraisal followed in the

Organization helps to the Training and development needs of employee.

Some

of the employees (5%) disagrees that The Performance appraisal in the

organization helps to recognize the competence and potential of an individual

Less than half of the employees (35%) disagrees that they are happy with the

assessment of performance followed in the organization.

most of the employees (32.5%) neutral that they have been appraised fairly according

to the company's policies.

Most of the employees (30%) disagrees that Advises and suggestions are given to the

employees during the appraisal process.

Most of the employees (37.5%) uninterestingly accept the appraisal

feedback.
Most of the employees (62.7%) feel that appraisal should be given by HOD. Most of the employees (52.5%) that they need to be assessed as once in a year. All most of the employees (95%) feels that the performance appraisal followed in the

organization makes the employees Motivated.

Most of the employees (40%) think that attitude have impact on performance rating in

the Organization.
Most of the employees (52.5%) do not agree that Performance is communicated after

assessment of the Performance.

75

SUGGESTIONS
As per the study the following are the suggestions:
The Performance Appraisal in the organization should be in a full fledge way so that

the others will be accepting this.

As the Performance Appraisal is helpful to the employees by the assignment of

superiors task by training & development which should be more effective so that the other employees will also be attracted.
The Performance Appraisal should be assist effectively to the employees as it

recognizes the competence and potential of an individual.

Employees appraisal should be fairly done according to the companies policies so

that it will assist the performance of the employees.

The company should give some advises and suggestions to the employees during the

process and should get there feedbacks about the process.

The employees should assess and appraised by their HOD once in a year. The employees should be aware of 360 degrees appraisal and the organization should

follow this to motivate the employees.

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CONCLUSION
The options required strong motivation to face the challenges.

Proper training and satisfaction at all levels will be the strongest foundation to launch an assault on the challenges and convert the challenges to opportunities through effective performance appraisal measures in the organization.

Industry most response like wise

In future performance appraisal measures will have to be planned in relation to the changes taking place.

The performance measures leads exist both at fresh entry level as well as to continuing education level for working personnel.

An effective safety measures based on emerging trends suggests model for achieving the targets which will make paper industry in India truly competitive.

77

ANNEXURE

78

1. Is Performance Appraisal helps in the assessment of individual potential?

Strongly Agree Neutral Strongly Disagree

Agree Disagree

2. Does the Performance Appraisal system followed in the organization is rational and fair?

Strongly Agree Neutral Strongly Disagree

Agree Disagree

3. Whether the Job expectations are informed and the superiors set the tasks?

Strongly Agree Neutral Strongly Disagree

Agree Disagree

79

4.

Does the performance Appraisal followed in the organization helps to assess

the training and development needs of employee?

Strongly Agree Neutral Strongly Disagree

Agree Disagree

5. Does the Performance appraisal in the organization helps to recognize the competence and potential of an individual?

Strongly Agree Neutral Strongly Disagree

Agree Disagree

6. Whether the employees happy with the assessment of Performance followed in the organization?

Strongly Agree Neutral Strongly Disagree

Agree Disagree

7. Does the Employees appraised fairly according to the companys policies?

Strongly Agree

Agree
80

Neutral Strongly Disagree

Disagree

8. Does the Advises and suggestions are given to the employees during the appraisal process?

Strongly Agree Neutral Strongly Disagree

Agree Disagree

9. How do the employees accept the appraisal feedback?

Positive way Uninteresting

Negative way Neutral

10.Who should be the appraiser?

Superior HOD

Subordinate Peer group

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11.How often should an employee be assessed?

Once in 3months Once in 6months Once in a year 12. How the performance appraisal followed in the organization? Motivate Denominative 13.What types of errors / problems have impact on performance rating in the organization? Influence Attitude Biased Personal Grudge Subjectivity Status Effect

14. Whether the Feedback on performance communicated after assessment of the Performance? Y es N o

15. Are you aware of 360-degree appraisal? Y es N o

82

BIBLIOGRAPHY

83

Books:
The Complete Guide to Performance Appraisal by dick grote.

P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.

NEWS PAPERS: Economics times Times of india

Web sites:

www.google.com
www.unicorp.in

http://appraisals.naukrihub

.com/

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