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Summer Training ReportOn
ANALYSIS OF EMPLOYEES ATTITUDE
TOWARDS
PERFORMANCE APPRAISAL(a case study in NM Infotech)
in the partial fulfillment of the award of degreeof Master of Business Administration
(Session: 2010-2011)
SUBMITTED TO: SUBMITTED BY:
MR. MANVINDER TANDON HARDEEP KAUR BHANDAL PROJECT GUIDE) MBA 2nd SEM
105082250099
RIMT Institute Of Management and Technology
Mandi Gobindgarh
ACKNOWLEDGEMENT
Research is an endless ocean and one requires guidance and support by several
individuals in order to derive out a hand full of pearls from its depth. It is
difficult to acknowledge so precious a debt as that of learning, as it is the only
debt that is difficult to repay except through gratitude.
I take the privilege to pay my deepest appreciation and heartiest thanks to all
my teachers of SSIT, whose constant guidance is unbounded source of
inspiration for us. I would like to express my sincere thanks to my Project
guide Mr. Manvinder Tandon who provided me valuable insights on my
topic and helped me to clearly chalk out my area of study.
Last but not the least; I would take the opportunity to thank my parents,
friends and all those visible and invisible hands that contributed to make this
project a success.
(HARDEEP KAUR)
EXECUTIVE SUMMARY
The history of performance appraisal is quite brief. Its roots in the early 20th
century can be traced to Taylor's pioneering Time and Motion studies. But
this is not very helpful, for the same may be said about almost
everything in the field of modern human resources management.
As a dist inct and formal management procedure used in the
evaluation of work performance, appraisal really dates from the
t ime of the Second World War - not more than 60 years ago.
In many organizations - but not al l - appraisal results are used,
ei ther directly or directly, to help determine reward outcomes.
That is , the appraisal results are used to identify the better
performing employees who should get the majority of available
merit pay increases, bonuses and promotions
By the same token, appraisal results are used to identify the
poorer performers who may require some form of counseling, or
in extreme cases, demotion, dismissal or decreases in pay.
(Organizations need to be aware of laws in their country that
might restrict their capacity to dismiss employees or decrease
pay.)
The purpose of this study has been to determine whether the
performance appraisal was used for employee development and
whether the appraisal was emphasized as an important part of
the performance appraisal process. Also whether the
performance appraisal helps in increasing company’s
profitabil i ty.
Our study suggested that the performance appraisal has helped
in increasing the profitabil i ty of SAIL which was clearly shown
by their performance on BSE Sensex. Certain loop holes has
been determined and suggestions were made.
TABLE OF CONTENTS
S.NO TOPIC
1 INTRODUCTION OF THE COMPANY
2 INTRODUCTION OF THE TOPIC
3 OBJECTIVES OF THE STUDY
4 RESEARCH METHODOLOGY
5 DATA COLLECTION & ANALYSIS
6 FINDING OF THE STUDY
7 QUESTIONNARIE
8 CONCLUSION
9 SUGGESTIONS
10 BIBLOGRAPHY & REFERENCES
INTRODUCTION
OF
THE COMPANY
NM Infotech is one of the pioneers in the Indian Global market, established in
2002. NM Infotech a Growing software company in Mohali. It deals in
Software Product Development and provides services for all web application.
It offers differentiated technology and dedicated service support infrastructure
as per the needs and requirements of customers.
NM Infotech, the growing identity in Software Technology and Training, the
company is a dream of dedicated team of professionals who themselves have
grown up with the I. T. revolution. 6 Months industrial training provide in
Chandigarh, with quality faculty and great atmosphere for learning, Training
for the best JAVA Courses. Professionals in DOT NET, java, PHP , ERP.
Student are trained in live projects. NM Infotech is an organisation of
Designers, Devlopers and Analyst. your all web problems are sorted in NM
Infotech.
Mission of NM Infotech:
"To become the leading organization for ERP solutions and service providers
in the world".
Vision of NM Infotech:
To create total harmony with our associates through trust and total
understanding. To progress and strive for excellence through optimum
opportunities to personnel and seek avenues to benefit the community at large.
NM is a leading ERP solutions and Software Development organization in
India. We deliver products and services of the highest quality adding more
value to our customers enabling them to achieve their business objectives.
NM key to the success has been providing solutions blending with the right
technology and ensuring value for the money.
NM is working from last few years as a Information Technology Company
with annual turnover exceeding INR 14 million. NM has established itself as
one of the leading companies in India and has had a growth rate of over 70%
in the last two years.
This is a result of consistent contribution of its core team of developers and
trainers, the management group and the dedicated members who have
collectively worked for its present image and striving to further improvise its
services and education related fields.
Company services: Software Solutions Security Solutions Corporate Training Industrial Training Campus Training
Projects handled: Guest house management system ERP solutions Online grocery Cyber access control
PUNCH LINE
“Quality Speaks Itself”
INTRODUCTION
OF
THE TOPIC
EMPLOYEES ATTITUDE
"An employee’s attitude toward the job's importance and the company had the
greatest impact on loyalty and customer service then all other employee
factors combined.
MEASURING EMPLOYEE ATTITUDE
Organizations are increasingly interested in retaining right talents while
targeting for new talents; measuring employees attitude provides an indication
of how successful the organization is in fostering a conducive environment
which nurtures great attitude among employee’s towards their Job and
company .
Because attitude is basically a psychological state, care should be taken in the
effort of quantitative measurement, although a large quantity of research in
this area has recently been developed.
The usual measures of employee attitude involve an employee attitude survey
with a set of statements using a Likert Technique or scale. The employee is
asked to evaluate each statement in term of their perception on the
performance of the organization being measured. The surveys of this type
provides an understanding how the employee perceives the organization.
This project has been undertaken to analyze the employees attitude towards
performance and potential appraisal i.e. how employees perceive these
appraisals in the organization and the effect of these appraisals on the
productivity of employees in the organization.
PERFORMANCE APPRAISAL
Appraising the performance of individuals, groups, and organization is a
common practice of all the societies while in some instances, the appraisal
process is structured and formally sectioned, in other instances, the process is
informal and integral part of daily activities.
Once the employee has been selected, trained and motivated, he is then
appraised for his performance. Performance appraisal is the step where the
management finds out how effective it has been at hiring and placing the
employees. If any problems are identified, steps are taken to communicate
with the employees and to remedy them.
Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the
performance appraisal is measuring and improving the actual performance of
the employee and also the future potential of the employee. Its aim is to
measure what an employee does.
According to Flippo, “performance appraisal is the systematic, periodic and an
impartial rating of an employee’s excellence in the matters pertaining to his
present job and his potential for a better job."
Performance appraisal is a systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for
his future.
It is a powerful tool to calibrate, refine and reward the performance of the
employee. It helps to analyze his achievements and evaluate his contribution
towards the achievements of the overall organizational goals.
By focusing the attention on performance, performance appraisal goes to the
heart of personnel management and reflects the management’s interest in the
progress of the employees.
OBJECTIVES OF PERFFORMANCE APPRAISAL:
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between
superior – subordinates and management – employees.
To diagnose the strengths and weaknesses of the individuals so as to
identify the training and development needs of the future
OTHER TERMS WHICH ARE USED FOR
PERFORMANCE APPRAISAL;
PERSONNEL APPRAISAL
EMPLOYEE ASSESSMENT
PERFORMANCE RATING
EMPLOYEE EVALUATION & MERIT RATING
EMPLOYEE PERFORMANCE REVIEW
Performance appraisal means evaluating an employee’s current or past
Performance relative to the person’s performance standards. Appraisal
involves:
(I) Setting work standards
(ii) Assessing the employee’s actual performance relative to these standards
(iii) Providing feedback to the employees with the aim of motivating that
person to eliminate deficiencies or to continue to perform above par.
Managers usually conduct the appraisal using a predetermined and formal
method. Various methods of appraisal include:-
1) Traditional methods
2) Modern methods.
TRADITIONAL METHODS
1. 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 behaviour as and when they occur.
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 behaviour 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 employee’s 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.
8. FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is asked
to distribute 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.
Modern methods
In this method, an employee’s actual job behaviour is judged against the
desired behaviour by recording and comparing the behaviour with BARS.
Developing and practicing BARS requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human resource
accounting method tries to find the relative worth of these assets in the terms
of money. In this method 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.
360 DEGREE FEEDBACK
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 contact with 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. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and
weaknesses, his achievements, and judge his own performance. Superior’s
appraisal forms the traditional part of the 360 degree appraisal where the
employees’ responsibilities and actual performance is rated by the superior.
Subordinates appraisal gives a chance to judge the employee on the
parameters like communication and motivating abilities, superior’s ability to
delegate the work, leadership qualities etc. Also known as internal customers,
the correct feedback given by peers can help to find employees’ abilities to
work in a team, co-operation and sensitivity towards others.
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 appraisal is also a powerful developmental tool because when
conducted at regular intervals 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.
MANAGEMENT BY OBJECTIVES
The concept of ‘Management 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 employee’s 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.
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 responsibilities
expected from them, understand their objectives to be achieved and thus help
in the achievement of organizational as well as personal goals.
Some of the important features and advantages of MBO are:
Clarity of goals – With MBO, came the concept of SMART goals i.e.
goals that are:
Specific
Measurable
Achievable
Realistic, and
Time bound.
The goals thus set are clear, motivating and there is a linkage between
organizational goals and performance targets of the employees.
The focus is on future rather than on past. Goals and standards are set
for the performance for the future with periodic reviews and feedback.
Motivation – Involving employees in the whole process of goal setting
and increasing employee empowerment increases employee job
satisfaction and commitment.
Better communication and Coordination – Frequent reviews and
interactions between superiors and subordinates helps to maintain
harmonious relationships within the enterprise and also solve many
problems faced during the period.
Thus, when properly conducted, performance appraisal not only let the
employee know about how well he is performing but also influences the
employee’s future level of effort, activities, results and takes appropriate
direction. Under performance appraisal, not only the performance of an
employee is evaluated but also his potential for development.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is the systematic method/process dealing with
identifying problem, collecting of facts or data, analyzing these data and
reaching at certain conclusion either in the form of solutions towards the
problem concerned or certain generalization for some theoretical formulation.
It also comprised of a number of alternative approaches and inter-related and
frequently overlapping procedures and practices. Since there are many aspect
of research methodology, the line of action has to be chosen from a variety of
alternative. The choice of suitable method can be arrived at through
assessment of objectives and comparison of various alternatives. Research
methodology used in the present study is as under:
Type of research: Present study is Descriptive in nature.
Sample Design: In most of the research studies, it become almost
impossible to examine the entire universe; the only alternative thus is to resort
to sampling. The present study is also of the same nature. According to
Manheim (1977), “a sample is a part of the population which is studied in
order to make inferences about the whole population.” Thus a good sample is
a miniature version of the population and good sample design involve the
following:
Sample Unit
Sampling Techniques
Sample Size
Sample Unit:
Since the objective of the present study was to analyze the employees attitude
towards potential and performance appraisal,thus employees of Thomson
press ar taken as sampling unit.
Sampling technique:
The procedure that a researcher adopts in selecting the unit for the sample is
known as sampling technique. In the present study, Non-probability sampling
has been used. Judgmental sampling has been used but utmost care has been
taken employees from all the profiles in the organization.
Sample Size:
The sample size was taken as 50. The 10 questionnaires were discarded
because of the incomplete information. Thus the effective sample size was 40.
Data collection method
Both primary and secondary data has been collected in this research.
Secondary data has been collected from journals, websites, and research
articles from magazines while the primary data has been collected through the
well-structures comprehensive questionnaire.
Thus the decisions were taken on the basis of following attributes: -
Data Source Primary data & secondary data.
Research approaches Survey
Research instrument Questionnaire
Sampling plan Sample size
Contract method direct interview
DATA COLLECTION
&
ANALYSIS
DATA COLLECTION
To make a decision in any business situation we need data. Facts expressed
in quantitative form can be termed as data. Success of any statistical
investigation depends on the availability of accurate and reliable data.
So the data can be classified either as primary data or secondary data.
PRIMARY DATA: It is the data, which is collected afresh for the
research study. This type of data is collected for the very first time by the
investigator himself and has never been used by any other person earlier. The
various methods of the collection of the primary data are as follows:
Questionnaire
Observation
Interviews
SECONDARY DATA: When the data is collected by one person and
used by the others for their research, this type of data is called secondary data.
The researcher uses the data for his research, which is already available or
collected by other. The various methods of collection of secondary data are as
follows:
Newspapers
Magazines
Reports & Journals
Internet
For this project, I have used both the types of data i.e. primary as well as
secondary data.
Primary Data used in this project are as follows:
Questionnaire filled by the employees.
Personal Interviews of the employees.
Secondary Data used in this project are as follows:
Reports of the organization.
Journals of the organization.
Internet (Website of the organization)
DATA ANALYSIS
1.) AWARENESS OF APPRAISAL SYSTEMS AMONG THE
EMPLOYEES IN THE ORGANIZATION.
Performance appraisal
Awareness of performance appraisal
YES87%
NO13%
YES NO
Potential appraisal.
Awareness of potential appraisal
49%13%
25%
13%
YES NO MODERATELY CANT SAY
ANALYSIS: In sample size of 40, 87% of the employees are fully aware of
performance appraisal in the organization but 13% of employees are not aware
of this while analysis of awareness of potential appraisal shows that 49%
employees are fully aware of the potential appraisal while 25% are somewhat
aware, 13% are not aware and cant say respectively.
INTERPRETATION:
This analysis shows that most of the employees are aware of the performance
appraisal in the organization but the awareness of potential appraisal of
employees in the organization is not very high.
This shows that potential appraisal being a newer concept is not known much
to the employees even when it is used by the employees generally before
giving promotions and new projects.
2.) UNDERSTANDING OF REASON OF USAGE OF THESE
APPRAISALS.
PERFORMANCE APPRAISAL:
Performance appraisal
62%13%
25%
YES NO SOMEWHAT
ANALYSIS:
In the sample 62% of the employees completely understand why it is used
in the organization while 25% of the employees understand it a little bit
but not completely and 13% of the employees do not understand why it is
used in the organization.
INTERPRETATION:
More than half of the employees understand why it is used in the
organization but still high percent of employees do not understand it so it
shows lack of communication with regard to appraisal in the organization.
3.) HOW MANY TIMES YOU HAVE BEEN APPRAISED LAST
YEAR?
PERFORMANCE APPRAISAL:
Performance appraisal
37%
38%
25%
ONCE TWICE THRICE
ANALYSIS:
In the sample 25% are appraised thrice a year, 38% of them are appraised
twice and 37% are appraised once a year.
INTERPRETATION:
This analysis shows that all the employees undergo this appraisal once a
year and more than half of the employees undergoes this appraisal twice or
more in a year indicating that this is a regular affair in the organization.
POTENTIALAPPRAISAL:
Potential appraisal
62%
38%
0%
ONCE TWICE THRICE
ANALYSIS:
In the sample 62% of the employees are appraised once a year while 38%
says that they are appraised twice a year.
INTERPRETATION:
With the analysis it is concluded that potential appraisal is not as regularly
done in the organization as the performance appraisal although it is
conducted once a year for all the employees.
4.) WHO IS THE APPRAISER?
PERFORMANCE APPRAISAL:
Performance appraisal
75%
25%
0%
SUPERIOR PEER TOP MANAGEMENT
ANALYSIS:
In the sample 75% of the employees performance are been appraised by
their superiors while 25% of the employees are appraised by their peers.
POTENTIAL APPRAISAL:
Potential appraisal
62%
13% 25%
SUPERIOR PEER SELF
ANALYSIS:
in the sample 62% of employees potential is been appraised by their
superiors while for 25% of the employees self appraisal technique of
potential appraisal is used and 13% employees are been appraised by their
peers for judging their potential.
INTERPRETATION:
Most of the employees potential is been appraised by the superiors and
about 25% of the employees are provided the opportunity to appraise
themselves this shows that a certain level of decentralization is their in the
organization which is essential for the success of the organization.
5.) FAIRNESS AND JUSTIFICATION OF THE APPRAISAL
PROCESS.
PERFORMANCE APPRAISAL
Performance appraisal
62%
0%
0%
38%
YES MODERATELY NO CANT SAY
POTENTIAL APPRAISAL:
Potential appraisal
12%
62%
13%
13%
YES MODERATELY NO CANT SAY
ANALYSIS: In the sample almost employees sees the performance
appraisal as a fair and justified process and some don’t have any opinion
about the fairness of the process while the process of potential appraisal is
not seen as fair and justified process by the employees as performance
appraisal. Some of the employees see it as a unfair and unjustified process.
INTERPRETATION:
From the above analysis it can be concluded that the process of appraisal
of performance in the organization is perceived fair and justified while the
potential appraisal is not so fair and justified it is because the employer is
not able to completely find the potential of the employees and also the
less awareness of this appraisal process in the organization.
6.) DOES THESE APPRAISALS RESULTS IN MOTIVATION?
PERORMANCE APPRAISAL
Performance appraisal
74%
13%
0%
13%
YES MODERATELY NO CANT SAY
POTENTIAL APPRAISAL
Potential appraisal
13%
62%
25%
0%
YES MODERATELY NO CANT SAY
ANALYSIS: the performance appraisal process completely motivates
about 75% of the employees in the organization while the potential
appraisal process only moderately motivates about 62% of the employees
the organization and also about 25% of them are not at all motivated at all.
INTERPRETATION:
This analysis shows that the performance appraisal is more helpful in
motivating the employees while potential appraisal is able to motivate
employees only moderately. This shows that the employees performance is
properly realized and analysed in the organization while the employers are
unable to properly realize their potential i.e talents.
7.) DOES THESE APPRAISALS CREATE ANY ANXIETY OR
STRESS IN THE EMPLOYEES?
PERFORMANCE APPRAISAL
Performance appraisal
10%
21%
64%
5%
YES MODERATELY NO CANT SAY
POTENTIAL APPRAISAL
Potential appraisal
5%
25%
55%
15%
YES MODERATELY NO CANT SAY
ANALYSIS: from the sample study it is found that this appraisal does not
cause any anxiety or stress to most of the employees however about 30%
of the employees feel some mental stress and anxiety with these appraisals.
INTERPRETATION:
It is concluded that these appraisal are perceived by most of the employees
as necessary in the organization and they take these appraisals in a positive
manner.
8.) OUTCOME OF THE APPRAISALS?
PERFORMANCE APPRAISAL
Performance appraisal
25%
37%
25%
13%
PROMOTION JOB ENRICHMENT
JOB ROTATION NO CHANGE
ANALYSIS: in the sample about 37% of the employees get their job
enriched, 25% job rotation,25% promotion and 13% no change as a result
of their performance appraisal.
INTERPRETATRION:
Generally this performance appraisal results in job enrichment of
employees in the organization followed by promotion and job rotation.
POTENTIAL APPRAISAL
Potential appraisal
25%
62%
13%
NEW PROJECTS NO CHANGE CANT SAY
ANALYSIS: In the sample the potential appraisal results in no change for
more than half of the employees while some 25% of the employees get
new projects after their potential appraisals.
INTERPRETATION:
It is concluded that this potential appraisal is not resulting in more fruitful
results for the employees as they are already provided with the projects as
per their potential.
9.) LEVEL OF SATISFACTION AMONG EMPLOYEES WITH
THE RESULTS OF THE APPRAISAL?
PERFORMANCE APPRAISAL
Performance appraisal
13%
25%
0%
62%
YES NO CANT SAY MODERATELY
POTENTIAL APPRAISAL:
Potential appraisal
50%
0%
25%
25%
YES NO CANT SAY MODERATELY
ANALYSIS:
About 62% of the employees are moderately satisfied with the results of
performance appraisal while 50% of the emlployees are satisfied with the
potential appraisal.
INTERPRETATION:
Most of the employees are satisfied with the process of these appraisals in
the organization however level of satisfaction of potential appraisal is less
then the performance appraisal.
This appraisal also showing that employers are able to judge the potential
and performance of employees upto to a certain level thus leading them to
satisfaction.
10.) REGULARITY OF APPRAISAL
PERFORMANCE APRAISAL
PerformaNce appraisal
YES75%
NO25%
YES NO
POTENTIAL APPRAISAL:
Potential appraisal
75%
25%0%
YES NO
ANALYSIS: Out of the sample about 75% of the employees says that
these appraisals are regularly conducted in the organization.
INTERPRETATION:
It is concluded that these appraisals are a regular affair in the organization
as helping the organization to increase its effectiveness.
11.) EMPLOYER REALLY ABLE TO FIND OUT THE
POTENTIAL OF THE EMLOYEES TRULY?
Realisation of potential by employer
3%
84%
8%5%
ALWAYS SOMETIMES NEVER CANTSAY
ANALYSIS:
out of the sample about 84% of the employees feel that their potential is
realized completely sometimes only while 10% don’t have any opinion
whether their potential is realized completely by their employer or not.
INTERPRETATION:
As the potential is not been realized by the employers completely always
so there is a need of involving the employees also in this appraisal so as to
get more fruitful results of appraisal and realizing their potential to the
fullest so as to make the optimal use of the talent of available man power.
12.) NEW PROJECTS ARE GIVEN TO EMPLOYEES ON THE
BASIS OF WHICH APPRAISAL?
prefrence for assisgning new projects
38%
49%
13%
Potential Performance Both
ANALYSIS:
In the sample 49% of the employees are assigned on the basis of
performance appraisal while 38% of the employees are assigned new
projects on the basis of potential appraisal while 13% of the employees say
that both the appraisals are considered for assigning new projects.
INTERPRETATION:
Analysis shows that performance appraisal is been preferred by
employers for assigning new projects this is because of the lack of
awareness of potential appraisal benefits and also it is a newer concept
so preferred less.
13.) WHICH APPRAISAL IS A BETTER TECHNIQUE?
comparision of techniques
25%
50%
25%
Potential Performance Cant say
ANALYSIS:
Out of the sample 50% of the employees believe that performance
appraisal is a better technique while 25% believes potential appraisal is a
better technique and rest 25% can not say anything about which appraisal
technique is better.
INTERPRETATION:
Both the appraisals are equally important for the organization to attain the
objectives of the organization.
14.) EMPLOYEES OPINION ON WHICH APPRAISAL
TECHNIQUE SHOULD BE LAID MORE EMPHASIS ON?
Employees opinion
25%
37%
38%
POTENTIAL PERFORMANCE BOTH
ANALYSIS:
In the sample 38% of the employees believes that both the appraisals
should be emphasized equally while 37% of the employees says that
performance appraisal should be emphasized by employer and 25% of the
employees prefer potential appraisal to be emphasized by their appraiser.
INTERPRETATION:
Both the appraisals have their own benefits so most of the employees
believes that both the appraisals together should be emphasized for
appraising them.
15.) DO THESE APPRAISALS PROVIDE WITH THE UNBIASED
RESULTS?
Unbiasness in appraisal results
0%
62%
25%
13%
YES SOMETIMES NO CANT SAY
ANALYSIS:
In the sample 62% of the employees says that these appraisals provide
unbiased results sometimes only while 25% says that they did not get
unbiased results from these appraisals and 13% cant say anything.
INTERPRETATION:
There is a need to make these appraisals more transparent and fair so as to
increase the effectiveness of the organization.
16.) ESSENTIALNESS OF THESE APPRAISALS IN CREATING
WORK CULTURE OF COOPERATION AND TEAM WORK IN
THE ORGANISATION?
Essentiality in creating work culture
58%
14%
14%
14%
YES MODERATELY NO CANT SAY
ANALYSIS:
In the sample 58% employees believes that these appraisals are essential
for creating a work culture of cooperation and team work in the
organization while 14% of the employees do not believe that it is essential.
INTERPRETATION:
This analysis shows that these appraisals are necessary for creating a work
culture of cooperation and team work.
17.) IMPACT OF THESE APPRAISALS ON THE DEVELOPMENT
OF ORGANISATION
Impact on organisation development
62%
30%
8%
POSITIVE NEUTRAL NEGATIVE
ANALYSIS:
In the sample 62% of the employees believe that these appraisals have a
positive impact on the development of the organization and 8% of the
employees believe that these appraisals create a negative impact on the
organization while rest 30% believes that these appraisals have no effect.
INTERPRETATION:
These appraisals are benefitial for the organization as it allows the
organization to achieve the goals in an effective manner.
18.) REALISATION OF TRAINING NEEDS FROM THESE
APPRAISALS?
Training needs
29%
67%
2%
2%
ALWAYS SOMETIMES NEVER CANTSAY
ANALYSIS:
In the sample 67% of the employees says that these appraisals sometimes
result in training needs and 29% says that there is always a need of training
been realized with these appraisals.
INTERPRETATION:
These appraisals are benefitial for the organization as they allow the
employers to find out the training needs so that they could take a timely
action.
19.) DOES COMPENSATION PACKAGE IS DESIGNED ON BASIS
OF THESE APPRAISALS?
relation b/w compensation design and appraisal
13%
38%
49%
0%
YES MODERATELY NO CANTSAY
ANALYSIS:
49% of the employees say that their compensation package is not related at
all with their appraisals while 38% believes that sometimes it is related and
13% of the employees believe that it is related with their appraisals.
INTERPRETATION:
These appraisals have no impact on the compensation package of the
employees.
FINDINGS
OF
THE STUDY
FINDINGS:
As evident from the data analysis various findings are as follows:
Awareness: most of the employees were aware of these appraisals
but the level of awareness of performance appraisal is higher than
potential appraisal.
Understanding: although employees know about these appraisals
but very few completely understands why these appraisals are done
and used in the organization.
Regularity: These appraisals are regularly conducted in the
organization.
Motivation: these appraisals helps in motivating the employees
thus are beneficial for both the employees and organization
Satisfaction: employees are satisfied with the results of these
appraisals but this satisfaction level is not as desired so there is a
need to make these appraisals more fair and justified.
Potential appraisal being a newer concept is not preferred much
as performance appraisal because of the lack of awareness of this
appraisal technique.
These appraisals help the organization to find out the training needs
in the organization.
These appraisals are also creating a work culture of cooperation
and team work in the organization thus impacting the organization
development in a positive manner.
These appraisals are not considered much while designing the
compensation package of employees.
Employees want that both the appraisals should be given equal
weightage for appraising an employee.
There is a need of making these appraisals more fair and justified
so as to achieve unbiased results.
Employers are not able to realize the employee’s potential fully
through these appraisals so more communication and participation
of employees in these appraisals is required.
These appraisals are not creating any mental stress or anxiety in the
employees even when it is not motivating the employees.
These appraisals are very essential for the effective working of the
organization.
CONCLUSION
CONCLUSIONS
In a nutshell, the analysis of the data collected from the sample revealed that
the employees have a positive attitude towards the conductance of these
appraisals, they believe that these appraisals are necessary in the organization
for creating a work culture of team work and cooperation and to attain the
organizational objectives effectively.
Also the employees want a more effective appraisal system that is they want
that their participation should be their and these appraisals should be more
transparent and fair.
Out of the two appraisal systems viz. performance and potential appraisal
there is still more emphasis laid by the organizations although potential
appraisal is a future oriented approach its lack of awareness and it being a
newer approach it is been resisted by some in the organization but because of
the benefits which this appraisal will yield employers are moving towards
making a balance between the two appraisals in the organization.
SUGGESTIONS
SUGGESTIONS
There is a need of creating more awareness about potential
appraisal as it being a future oriented approach can yield better
results for the organization.
The employers must relate the designing of the compensation
package with the result of their appraisals as this will help in
increasing the employees motivation level and also will result in
better performance of their job.
These appraisals need to be done with utmost care as they help the
organization to optimally utilize their man power.
These appraisals should also be used in succession planning of
employees of the organization.
Potential appraisal should also be done regularly as performance
appraisal in the organization.
Employees’ participation in these appraisals should be there as it
will allow them to attain success.
There should be a better communication among employees and
appraiser so that these appraisals could result n unbiased and fair
results.
The employers must use these appraisals as a tool for motivating
employees to make them more effective.
A proper feedback must be given to employees so that they can
take the required actions for improving their performance and
potential to the desired level.
QUESTIONNARIE
QUESTIONNAIRE
1) NAME
2) DESIGNATION
3) AGE GROUP20-30 30-40 40-50 50-60
4) Do you know what performance appraisal is?YES NO
5) Do you understand why it is used?YES SOMEWHAT NO
6) How many times you have been appraised last year?ONCE TWICE THRICE MORE
7) Who appraises your performance?TOP MANAGEMENT PEERS SUPERIORS
8) Do you feel that the process is fair and justified?YES MODERATELY NO CAN’T SAY
9) Does the process of performance appraisal motivate you in any way?YES MODERATELY NO CAN’T SAY
10) Does this appraisal create anxiety or mental stress to you?YES MODERATELY NO CAN’T SAY
11) What is the outcome of the appraisal?PROMOTION JOB ENRICHMENTJOB ROTATION NO CHANGE
12) Do you feel satisfied with the results?YES MODERATELY NO CAN’T SAY
13) Is this appraisal a regular affair in your organization?
YES NO
14) Who appraises your potential?SUPERIOR PEER Self
15) How many times you go through the process in a year?ONCE TWICE THRICE MORE
16) Do you feel the process is fair and justified?YES MODERATELY NO CAN’T SAY
17) Does this process of performance appraisal create mental stress oranxiety in you?
YES MODERATELY NO CAN’T SAY
18) Do you feel satisfied with the results of appraisal?YES MODERATELY NO CAN’T SAY
19) What you feel is a better technique of appraisal?POTENTIAL PERFORMANCE CANT SAY
20) Which technique according to you should be laid more emphasis on byyour employer?
PERFORMANCE POTENTIAL BOTH EQUALLY
BIBLIOGRAPHY
BIBLIOGRAPHY & REFERENCE
WEBSITES
http://appraisals.naukrihub.com
www.googlesearch.com
www.fdu.edu/admin.com
www.openlearning.com
www.thomsonpress.com
BOOKS
Luthans, Fred, Organizational behavior, McGraw Hill Book Company,
Singapore.
Memoria C.B., Personal Management, Himalaya Publishing House,
Bombay.
Robbins Stephen, P. 1993 Organizational Behavior, Prentice-Hall of India
Private Limited, New Delhi.
Davis, K., Organizational Behavior.