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A SUMMER TRAINING REPORT

ON

Study of Performance Appraisal System

In

Dabur Pt! "td!

Submitted in Partial Fulfillment Of Degree in Master of

Business Administration

Sunder Deep Institute Of Management Technology

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Submited to# Submited by

Ms! Ric$a %uls$rest$a Smita Rai

MBA 3rdSem

Roll No.0724070046

&ERTI'I&ATE

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This is to certify that the project work done on Study of Performance

Appraisal System and its Effectiveness in an organization by S!TA

"A! in partial fulfillment of the re#uirement for the award of the degree of

$A is a bonafide work carried out by him%her under my supervision &

guidance' This work has not been submitted any where else for any

other degree%diploma as per my knowledge'

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Preface

This project ill accomplish to !"dersta"d ho the people i"teract ith tech"olo#$

sa%$ prod!cts a"d if the$ are read$ for doi"# all the tradi"# thro!#h "et. The project

also helps i" !"dersta"di"# the tre"d of the scripts of the partic!lar sector & 'a"(i"#

sector ) i" differe"t mar(et co"ditio".

To mai"tai" a"d cope !p ith the #roi"# competitio" from the %ario!s o"li"e

tradi"# pro%iders* +a'!r P%t. ,td. "eeds to fi"d pote"tial clie"ts* also the "e

i"%estors a"d satisf$ there "eeds.

The Broad o'jecti%e of the project is to e-!ipped the trai"ees ith all the -!alit$

hich is esse"tial to face a"$ circ!msta"ces hich ca" arise hile pro%idi"#

All these steps help me to !"dersta"d ho to cope !p ith differe"t t$pes of people

a"d there di%ersified "eed a"d satisfactio" le%el.

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DE&"ARATION

*SMITA RAI( st!de"t of MBA 3rdSem here '$ declare that the project e"titled

)Performance Appraisal System in Dabur Pt! "td!*is m$ ori#i"al or( a"d the

same has "ot 'ee" s!'mitted to a"$ other "stit!te / "i%ersit$ for the aard of a"$

de#ree. The s!##estio"s #i%e" '$ s!per%isor ha%e 'ee" d!l$ i"corporated i" this

report.

Smita Rai

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A&%NO+"EDGEMENT

M$ si"cere tha"(s to Ms.Richa !"der hose a'le #!ida"ce a"d (i"d

cooperatio" as a'le to complete the project or( titled ,Study of

Performance Appraisal System in Dabur Pt! "td!, .

o!ld also li(e to tha"( Mr. Siddharth Mali(* "it Ma"a#er* +a'!r "dia

,td. for #!idi"# me.

Also* do tha"( a"d remem'er m$ frie"ds for their effort a"d helpi"# ha"d.

1%er$ effort has 'ee" made to e"ha"ce the -!alit$ of or(. oe%er* oe the

sole respo"si'ilit$ of the shortcomi"#* if a"$* i" the st!d$.

SMITA RAI

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&ONTENTS

hapter 5 "trod!ctio"

hapter 25 'jecti%e a"d Methodolo#$ of the St!d$

hapter 35 r#a"iatio" Profile

hapter 45 Performa"ce Appraisal8 Theoretical Re%ie

hapter 95 Performa"ce Appraisal S$stem i"

+a'!r "dia ,td.

hapter 65 A"al$sis a"d "terpretatio" of +ata

hapter 75 o"cl!sio" a"d S!##estio"s

hapter : A""e;!re

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&-APTER .

INTRODU&TION

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&-APTER .

TITLE OF THE PROJECT:

Study of Performance Appraisal System and Its

Effectieness in an Or/ani0ation

INTRODU&TION

T$e $istory of performance appraisal is 1uite brief!

ts roots i" the earl$ 20th ce"t!r$ ca" 'e traced to Ta$lor

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caref!ll$ str!ct!red s$stem of appraisal* people ill te"d to j!d#e the or(

performa"ce of others* i"cl!di"# s!'ordi"ates* "at!rall$* i"formall$ a"d

ar'itraril$.

The h!ma" i"cli"atio" to j!d#e ca" create serio!s moti%atio"al* ethical a"d

le#al pro'lems i" the or(place. =itho!t a str!ct!red appraisal s$stem* there

is little cha"ce of e"s!ri"# that the j!d#eme"ts made ill 'e laf!l* fair*

defe"si'le a"d acc!rate.

Performa"ce appraisal s$stems 'e#a" as simple methods of i"come

j!stificatio". That is* appraisal as !sed to decide hether or "ot the salar$ or

a#e of a" i"di%id!al emplo$ee as j!stified.

The process as firml$ li"(ed to material o!tcomes. f a" emplo$ee

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Cor e;ample* earl$ moti%atio"al researchers ere aare that differe"t people

ith ro!#hl$ e-!al or( a'ilities co!ld 'e paid the same amo!"t of mo"e$

a"d $et ha%e -!ite differe"t le%els of moti%atio" a"d performa"ce.

These o'ser%atio"s ere co"firmed i" empirical st!dies. Pa$ rates ere

importa"t* $es '!t the$ ere "ot the o"l$ eleme"t that had a" impact o"

emplo$ee performa"ce. t as fo!"d that other iss!es* s!ch as morale a"d self8

esteem* co!ld also ha%e a major i"fl!e"ce.

As a res!lt* the traditio"al emphasis o" reard o!tcomes as pro#ressi%el$

rejected. " the @90s i" the "ited States* the pote"tial !sef!l"ess of appraisal

as tool for moti%atio" a"d de%elopme"t as #rad!all$ reco#"ied. The #e"eral

model of performa"ce appraisal* as it is ("o" toda$* 'e#a" from that time.

Modern Appraisal

Performa"ce appraisal ma$ 'e defi"ed as a str!ct!red formal i"teractio"

'etee" a s!'ordi"ate a"d s!per%isor* that !s!all$ ta(es the form of a periodic

i"ter%ie &a""!al or i" hich the or( performa"ce of the s!'ordi"ate is

e;ami"ed a"d disc!ssed* ith a %ie to ide"tif$i"# ea("esses a"d stre"#ths

as ell as opport!"ities for impro%eme"t a"d s(ills de%elopme"t.

" ma"$ or#a"iatio"s 8'!t "ot all 8appraisal res!lts are !sed* either directl$ or

i"directl$* to help determi"e reard o!tcomes. That is* the appraisal res!lts are

!sed to ide"tif$ the 'etter performi"# emplo$ees ho sho!ld #et the majorit$

of a%aila'le merit pa$ i"creases* 'o"!ses a"d promotio"s.

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B$ the same to(e"* appraisal res!lts are !sed to ide"tif$ the poorer performers

ho ma$ re-!ire some form of co!"seli"#* or i" e;treme cases* demotio"*

dismissal or decreases i" pa$. &r#a"iatio"s "eed to 'e aare of las i" their

co!"tr$ that mi#ht restrict their capacit$ to dismiss emplo$ees or decrease

pa$.)

=hether this is a" appropriate !se of performa"ce appraisal 8the assi#"me"t

a"d j!stificatio" of reards a"d pe"alties 8is a %er$ !"certai" a"d co"te"tio!s

matter.

&ontroersy( &ontroersy

Ce iss!es i" ma"a#eme"t stir !p more co"tro%ers$ tha" performa"ce

appraisal.

There are ma"$ rep!ta'le so!rces 8researchers* ma"a#eme"t comme"tators*

ps$chometricia"s 8ho ha%e e;pressed do!'ts a'o!t the %alidit$ a"d

relia'ilit$ of the performa"ce appraisal process. Some ha%e e%e" s!##ested

that the process is so i"here"tl$ flaed that it ma$ 'e impossi'le to perfect it

&see +er%e"* @@0* for e;ample). At the other e;treme* there are ma"$ stro"#

ad%ocates of performa"ce appraisal. Some %ie it as pote"tiall$ ... the most

cr!cial aspect of or#a"iatio"al life &,arie* @@0).

Betee" these to e;tremes lie %ario!s schools of 'elief. =hile all e"dorse

the !se of performa"ce appraisal* there are ma"$ differe"t opi"io"s o" ho

a"d he" to appl$ it*

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There are those* for i"sta"ce* ho 'elie%e that performa"ce appraisal has

ma"$ importa"t emplo$ee de%elopme"t !ses* '!t scor" a"$ attempt to li"( the

process to reard o!tcomes 8s!ch as pa$ rises a"d promotio"s. This #ro!p

'elie%es that the li"(a#e to reard o!tcomes red!ces or elimi"ates the

de%elopme"tal %al!e of appraisals. Rather tha" a" opport!"it$ for

co"str!cti%e re%ie a"d e"co!ra#eme"t* the reard8 li"(ed process is

percei%ed as j!d#me"tal* p!"iti%e a"d harroi"#. Cor e;ample* ho ma"$

people o!ld #ladl$ admit their or( pro'lems if* at the same time* the$

("e that their "e;t pa$ rise or a m!ch8a"ted promotio" as ridi"# o" a"

appraisal res!ltD Eer$ li(el$* i" that sit!atio"* ma"$ people o!ld de"$ or

do"pla$ their ea("esses.

Nor is the desire to distort or de"$ the tr!th co"fi"ed to the perso" 'ei"#

appraised. Ma"$ appraisers feel !"comforta'le ith the com'i"ed role of

j!d#e a"d e;ec!tio"er.

S!ch rel!cta"ce is "ot diffic!lt to !"dersta"d. Appraisers ofte" ("o their

appraisees ell* a"d are t$picall$ i" a direct s!'ordi"ate8s!per%isor

relatio"ship. The$ or( to#ether o" a dail$ 'asis a"d ma$* at times* mi;

sociall$. S!##esti"# that a s!'ordi"ate "eeds to 'r!sh !p o" certai" or(

s(ills is o"e thi"# #i%i"# a" appraisal res!lt that has the direct effect of

"e#ati"# a promotio" is a"other.

The res!lt ca" 'e rese"tme"t a"d serio!s morale dama#e* leadi"# to

or(place disr!ptio"* so!red relatio"ships a"d prod!cti%it$ decli"es.

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" the other ha"d* there is a stro"# ri%al ar#!me"t hich claims that

performa"ce appraisal m!st !"e-!i%ocall$ 'e li"(ed to reard o!tcomes. The

ad%ocates of this approach sa$ that or#a"iatio"s m!st ha%e a process '$

hich reards 8hich are "ot a" !"limited reso!rce 8ma$ 'e ope"l$ a"d fairl$

distri'!ted to those most deser%i"# o" the 'asis of merit* effort a"d res!lts.

There is a critical "eed for rem!"erati%e j!stice i" or#a"iatio"s. Performa"ce

appraisal 8hate%er its practical flas 8is the o"l$ process a%aila'le to help

achie%e fair* dece"t a"d co"siste"t reard o!tcomes. t has also 'ee" claimed

that appraisees themsel%es are i"cli"ed to 'elie%e that appraisal res!lts sho!ld

'e li"(ed directl$ to reard o!tcomes 8a"d are s!spicio!s a"d disappoi"ted

he" told this is "ot the case. Rather tha" feeli"# relie%ed appraisees ma$

s!spect that the$ are "ot 'ei"# told the hole tr!th* or that the appraisal

process is a sham a"d aste of time.

T$e "in2 to Re3ards

Rece"t research &Ba""ister F Bal(i"* @@0) has reported that appraisees seem

to ha%e #reater accepta"ce of the appraisal process* a"d feel more satisfied

ith it* he" the process is directl$ li"(ed to reards. S!ch fi"di"#s are a

serio!s challe"#e to those ho feel that appraisal res!lts a"d reard o!tcomes

m!st 'e strictl$ isolated from each other. There is also a #ro!p ho ar#!es that

the e%al!atio" of emplo$ees for reard p!rposes* a"d fra"( comm!"icatio"

ith them a'o!t their performa"ce* are part of the 'asic respo"si'ilities of

ma"a#eme"t. The practice of "ot disc!ssi"# reard iss!es hile appraisi"#

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performa"ce is* sa$ critics* 'ased o" i"co"siste"t a"d m!ddled ideas of

moti%atio".

" ma"$ or#a"iatio"s* this i"co"siste"c$ is a##ra%ated '$ the practice of

ha%i"# separate a#e a"d salar$ re%ies* i" hich merit rises a"d 'o"!ses are

decided ar'itraril$* a"d ofte" secretl$* '$ s!per%isors a"d ma"a#ers.

There are 'asicall$ three p!rposes to hich performa"ce appraisal ca" 'e p!t.

Cirst* it ca" 'e !sed as a 'asis for reard allocatio". +ecisio" as to ho #ets

salar$ i"crease* promotio"* a"d other reards are determi"ed '$ their

performa"ce e%al!atio". Seco"d* these appraisals ca" 'e !sed for ide"tif$i"#

areas here de%elopme"t efforts are "eeded. The performa"ce appraisal is a

major tool for ide"tif$i"# deficie"cies i" i"di%id!als. Ci"all$ it ca" 'e !sed as

a criterio" a#ai"st hich selectio" de%ices a"d de%elopme"t pro#rams are

%alidated. As a (e$ i"p!t i"to ma"a#eme"t

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PER'ORMAN&E MANAGEMENT

Si"ce or#a"isatio"s e;its to achie%e #oals* the de#ree of s!ccess that i"di%id!al

emplo$ees ha%e i" reachi"# their i"di%id!al #oals is importa"t i" determi"i"#

or#a"isatio" effecti%e"ess.

Performa"ce s$stem is f!"dame"tall$* a feed 'ac( process* hich re-!ire

s!stai"ed commitme"t. The cost of fail!re to pro%ide s!ch feed'ac( ma$ res!lt

i" a loss of (e$ professio"al emplo$ees* the co"ti"!ed poor performa"ce of

emplo$ees ho are "ot meeti"# performa"ce sta"dards a"d a loss of

commitme"t '$ emplo$ees* i" s!m* the m$th that the emplo$ee ("o hat.

the$ are doi"# itho!t ade-!ate feed'ac( from ma"a#eme"t ca" 'e a"

e;pe"si%e fa"tas$.

T-E APPRAISA" PRO&ESS

. 1sta'lishi"# Performa"ce Sta"dard

2. omm!"icate Performa"ce e;pectatio"s to emplo$ees

3. Meas!re act!al performa"ce

4. ompare act!al performa"ce ith sta"dards

9. +isc!ssio" ith the emplo$ees a"d ide"tificatio" de%elopme"t pro#rams

to 'rid#e the #ap.

6. "itiate actio"

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T-E PURPOSE O' APPRAISING PER'ORMAN&E

" #e"eral the appraisal s$stems ser%e a to fold p!rpose

. To impro%e the or( performa"ce of emplo$ees '$ helpi"# them

realie a"d !se their f!ll pote"tial i" carr$i"# o!t their firms missio".

2. To pro%ide i"formatio" to emplo$ees a"d ma"a#ersfor !se i" ma(i"# *

or( related decisio"s.

More specificall$ appraisals ser%e the folloi"# p!rposes.

a) Appraisals pro%ide feed'ac( to emplo$ees a"d help the. < ma"a#eme"t

ide"tif$ the areas here de%elopme"t efforts are < "eeded to 'rid#e the

#aps there'$ ser%i"# as %ehiclesforperso"al a"d career de%elopme"t.

') t helps ma"a#eme"t spot i"di%id!als ho ha%e specific s(ills so that

their promotio"s/tra"sfer are i" li"e ith or#a"iatio"al re-!ireme"ts.

c) Appraisal ser%e as a (e$ i"p!t for admi"isteri"# a formal or#a"isatio"

reard a"d p!"ishme"t s$stem.

d) The performa"ce s$stem ca" 'e !sed as a criterio" a#ai"st hich

selectio" de%ices a"d de%elopme"t pro#rams are %alidated.

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RE4UIREMENT O' T-E PER'ORMAN&E MANAGEMENT

S5STEM!

Relia'ilit$5 The foremost re-!ireme"t of a so!"d s$stem is relia'ilit$. " this

co"tact it refers to co"siste"c$ of j!d#eme"t. Cor a"$ #i%e" emplo$ee*

appraisals made '$ raters or(i"# i"depe"de"tl$ of o"e a"other sho!ld a#ree

closel$. B!t raters ith differe"t perspecti%e &e.#. s!per%isors* peers*

s!'ordi"ates) ma$ see the same i"di%id!als jo' performa"ce %er$ differe"tl$.

To pro%ide relia'le data* each rater m!st ha%e a" ade-!ate opport!"it$ to

o'ser%e hat the emplo$ee has do"e a"d the co"ditio" !"der hich he or she

has do"e it. B$ ma(i"# appraisal s$stem rele%a"t* se"siti%e a"d relia'le e

ass!me the res!lti"# j!d#eme"t are %alid as ell.

Accepta'ilit$5 " practice* accepta'ilit$ is the most importa"t re-!ireme"t of

all* for it is tr!e that h!ma" reso!rces pro#ram m!st ha%e the s!pport of.

those ho ill !se them. "fort!"atel$* ma"$ or#a"isatio"s do "ot p!t m!ch

effort i"to #ar"eri"# the fro"t e"d s!pport a"d participatio" of those ho ill

!se the appraisal s$stem. ltimatel$ it is ma"a#eme"t

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Practicalit$5 This implies that appraisal i"str!me"ts are eas$ for ma"a#ers a"d

emplo$ees to !"dersta"d a"d to !se.

Cor $ears* perso""el specialists ha%e searched for the

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rarel$ &a"d i"directl$ thr! ritte" reports). ere j!d#eme"t of peers pla$

importa"t role. oe%er* there is a da"#er of pote"tial 'ias.

S!'ordi"ates5 Appraisal '$ s!'ordi"ates ca" 'e !sef!l i"p!t to the immediate

de%elopme"t. S!'ordi"ates ("o first ha"d the e;te"t to hich the s!per%isor

act!all$ dele#ates* ho ell he comm!"icates* the t$pe of leadership he has

a"d the e;te"t to hich he or she pla"s a"d or#amses.

Self appraisal5 " o"e ha"d it impro%es the rate

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APPROA&-ES TO PER'ORMAN&E MANAGEMENT

The traditio"al approach5 The o"e dime"sio"al model

The Ho' +efi"e hat res!lts Performa"ce co"tact

ha%e to e achie%ed

+efi"e a set of (e$

o'jecti%es a#ai"st the

acco!"ta'ilities

Acco!"ta'ilities i.e*

o!tp!t

Re%ie performa"ce

a#ai"st the (e$

o'jecti%es

" this model jo' e;pectatio"s are defi"ed i" terms of hat res!lts ha%e to 'e

achie%ed. This model does"

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A satisfactor$ performa"ce implies doi"# a jo' effecti%el$ a"d efficie"tl$* ith

a mi"im!m de#ree of emplo$ee 8created disr!ptio"s. 1mplo$ees are

performi"# ell he" the$ are prod!cti%e. >et prod!cti%it$ itself implies 'oth

co"cer" for effecti%e"ess a"d efficie"c$. 1ffecti%e"ess refers to #oal

accomplishme"t. 1fficie"c$ e%al!ates the ratio of i"p!ts co"s!med to o!tp!ts

achie%ed. The #reater the o!tp!t for a #i%e" i"p!t* the more efficie"t the

emplo$ees. Similarl$* if o!tp!t is a #i%e"* co"s!med to #et that o!tp!t res!lts i"

#reater efficie"c$.


Cirst* it ca" 'e !sed as a 'asis for reard allocatio"s. +ecisio"s as to ho #ets

salar$ i"creases* promotio"s* a"d other reards are determi"ed '$ their

performa"ce e%al!atio". Seco"d* these appraisals ca" 'e !sed for ide"tif$i"#

areas here de%elopme"t efforts are "eeded. Ma"a#eme"t "eeds to spot those

i"di%id!als ho ha%e specific s(ill or ("oled#e deficie"cies. The

performa"ce appraisal is a major tool for ide"tif$i"# these deficie"cies. Ci"all$*

the performa"ce appraisal ca" 'e !sed as a criterio" a#ai"st hich selectio"

de%ices a"d de%elopme"t pro#rams are %alidated.

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&$apter 8

O9:E&TI6E AND

MET-ODO"OG5 O' T-E

STUD5

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&$apter 8

O9:E&TI6E AND MET-ODO"OG5 O' T-E STUD5

.! Ob;ectie of t$e study

This project aims at st!d$i"# the s$stem of performa"ce appraisal a"d its

effecti%e"ess i" a" or#a"isatio". Performa"ce appraisal is the most si#"ifica"t

a"d i"dispe"sa'le tool for the ma"a#eme"t as it pro%ide !sef!l i"formatio" for

decisio" ma(i"# i" area of promotio" a"d compe"satio" re%ies.

Th!s 'road o'jecti%es of the st!d$ i"cl!des5

To ("o the prese"t s$stem of performa"ce appraisal

To ("o the e;te"t of effecti%e"ess of the appraisal s$stem

To ide"tif$ a"d ("o the area for impro%eme"t s$stem

8! Sample of t$e study

The pop!latio" co%ered for the prese"t st!d$ co"sisted of emplo$ee 'elo"#i"#

to s!per%isor$ a"d the le%el a'o%e. Cor the p!rpose of this st!d$* s!r%e$

co%ered the emplo$ee of +ABR N+A ,T+. falli"# !"der s!per%isor a"d

the le%el a'o%e.

The st!d$ co%ered a sample of 00 emplo$ee 'elo"#i"# to s!per%isor$ le%el

a"d a'o%e.

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The project or( has 'ee" carried o!t i" three sta#es* a str!ct!red

-!estio""aire ith o'jecti%e a"d -!estio" as comm!"icated tested a"d

fi"alise. +!ri"# the seco"d sta#e* the -!estio""aire as admi"istered to the

emplo$ees at +a'!r "dia ,td. '$ co"tacti"# them. The or( relati"# to data

e"tr$ compilatio"* data a"al$sis a"d report riti"# co"stit!ted the third sta#e.

"ter%ie i"de; as also !sed at some places to #et i"formatio" o" the project

s!'ject.

The details of the methodolo#$ adopted are prese"ted 'elo5

T$e 4uestionnaire

Ieepi"# i" %ie the o'jecti%e of the st!d$* -!estio""aire as desi#"ed a"d

tested o" fe emplo$ees. After #etti"# the proper respo"se a"d sa"ctio" from

the co"cer"ed departme"t the -!estio""aire as fi"alised.

Response to 4uestionnaire

" all @6 -!estio""aire ere #i%e" to emplo$ees falli"# i" the cate#or$ of

s!per%isors a"d a'o%e. !t of hich 4: co!ld 'e collected 'ac( d!l$

completed. The researcher i"di%id!all$ co"tacted the emplo$ees to #et

respo"se o" the -!estio""aire.

Data entry and analysis

t has 'ee" a" !phill tas( to e"ter the e"ormo!s data recei%ed thro!#h the

-!estio""aire hich co"sisted "earl$ 20 -!estio"s. Res#o"se to the descripti%e

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-!estio"s tho!#h %er$ fe '!t as %al!a'le for the p!rpose of st!d$. e"ce

these ere f!rther str!ct!red i" time ith the s$stem adopted for compilatio"

a"d data a"al$sis.

"imitations

Ma"$ emplo$ees #a%e #!arded a"sers to some cr!cial -!estio"s.

Some of them did "ot fill the -!estio""aire d!e to lac( of time

Respo"se co!ld "ot 'e collected from the total sample selected.

Some of the -!estio""aire co!ld "ot 'e completed d!e to reaso"s other tha"

time factor.

The co"fide"tialit$ of the s$stem created some pro'lem i" #etti"# i"formatio".

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&$apter

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PER'ORMAN&E

APPRAISA"

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&$apter >

PER'ORMAN&E APPRAISA"

Si"ce or#a"isatio" e;ist to achie%e #oals* the de#ree of s!ccess that i"di%id!al

emplo$ees ha%e i" reachi"# their i"di%id!als #oals is importa"t i"

determi"i"# or#a"iatio"al effecti%e"ess. The assessme"t of ho s!ccessf!l

emplo$ees ha%e 'ee" at meeti"# their i"di%id!al #oals* therefore* 'ecomes a

critical part of RM. This leads !s to the topic of performa"ce appraisal.

PURPOSE


Cirst* it ca" 'e !sed as a 'asis for reard allocatio"s. +ecisio"s as to

ho #ets salar$ j"creases* promotio"s* a"d other reards are

determi"ed '$ their performa"ce e%al!atio".

Seco"d* these appraisals ca" 'e !sed for ide"tif$i"# areas here

de%elopme"t efforts are "eeded. Ma"a#eme"t "eeds to spot those

i"di%id!als ho ha%e specific s(ill or ("oled#e deficie"cies. The

performa"ce appraisals is a major tool for ide"tif$i"# these

deficie"cies.

Ci"all$ the performa"ce appraisal ca" 'e !sed as a criterio" a#ai"st

hich selectio" de%ices a"d de%elopme"t pro#rams are %alidated. t is

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o"e thi"# to sa$* for e;ample* that o!r selectio" process is s!ccessf!l i"

differe"tiati"# satisfactor$ performers from !"satisfactor$ performers.

T-E APPRAISA" PRO&ESS

Establis$ed performance standard

&ommunicate performance eFpectations to employee

Measure actual performance

&ompare actual performance 3it$ standards

Discuss t$e appraisal 3it$ t$e employees!

If necessary( initiate t$e correctie action

The appraisal process 'e#i"s ith the esta'lishme"t of performa"ce

sta"dards. These sho!ld ha%e e%ol%ed o!t of jo' a"al$sis a"d the jo'

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descriptio" disc!ssed !"der h!ma" reso!rce pla""i"#. These performa"ce

sta"dards sho!ld also 'e clear a"d o'jecti%e e"o!#h to 'e !"derstood a"d

meas!red. Too ofte"* these sta"dards are artic!lated i" some s!ch phrase as a

f!ll da$

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co"tri'!tio" a"d a'ilit$. The impressio" that s!'ordi"ates recei%e a'o!t their

assessme"t has a stro"# impact o" their self8esteem a"d* %er$ importa"t* o"

their s!'se-!e"t performa"ce.

The fi"al step i" the appraisal is the i"itiatio" of correcti%e actio" he"

"ecessar$. orrecti%e actio" ca"* 'e of to t$pes. "e is immediate a"d deals

predomi"a"tl$ ith s$mptoms. The other is 'asic a"d del%es i"to ca!ses.

mmediate correcti%e actio" ofte" descri'ed as p!tti"# o!t fires* hereas

'asic correcti%e actio" #ets to the so!rce of de%iatio" a"d see(s to adj!st the

differe"ce perma"e"tl$.

mmediate actio" corrects somethi"# ri#ht "o a"d #ets thi"#s 'ac( o" trac(.

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&$apter B

PER'ORMAN&E

APPRAISA" S5STEM IN

DA9UR INDIA "IMITED

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correcti%e actio" is i"itiated he" 'eha%io!r de%iates from the sta"dards

esta'lished i" the #oal8setti"# phase. +a'!r !ses %er$ co"str!cti%e

performa"ce appraisal process hile e%al!ati"# its emplo$ees. ts e%al!atio"

is 'ased o" -!a"titati%eise a"d o'jecti%eise.

ompa"$ set #oals to its emplo$ee '$ properl$ reporti"# ith its emplo$ees

a"d the" e%al!ati"# them !pto hat e;te"t it has 'ee" achie%ed a"d if there is

fail!re i" reachi"# the tar#et hat are the ca!ses or reaso"s 'ehi"d it.

1%er$ e%al!ator has his or her o" %al!e s$stem hich acts as a sta"dard

a#ai"st hich appraisals are made. Relati%e to the tr!e or act!al performa"ce

a" i"di%id!al e;hi'its* some e%al!atorJ mar( hi#h a"d others lo. The former

is referred to as positi%e le"ie"c$ error a"d the latter as "e#ati%e le"ie"c$

error. =he" e%al!ators are positi%el$ le"ie"t i" their appraisal* a" i"di%id!al

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collect 3 co"sec!ti%e o!tsta"di"# performa"ce i"to his/her credit) he /

she #ets promoted.

b! EFcellent 8f the performa"ce e%al!ated '$ the ma"a#eme"t t!r"s o!t to

'e e;celle"t. f the emplo$ee performs i" s!ch a a$ as to collect 3

co"sec!ti%e e;celle"t performa"ce i"to his/her credit* he/she #ets

promoted.

c! Good 8f the performa"ce e%al!ated '$ the ma"a#eme"t t!r"s o!t to 'e

#ood. The ma"a#eme"t se"ds the emplo$ee to the trai"i"# pro#ramme

to impro%e his/.her s(ill to perform form.

d! 9elo3 aera/e 8f the performa"ce e%al!ated '$ the ma"a#eme"t t!r"s

o!t to 'e 'elo a%era#e. A"d* if the emplo$ee collects 3 'elo a%era#e

to his/her credit* the" he/she dismissed

Duration of Appraisal System

The time co"strai"ts e"a'les the emplo$ee to sho or project his/her

capa'ilities i" term of performa"ce as per the d!ratio" alloed. " +a'!r "dia

,imited* the performa"ce appraisal s$stem is carried o!t a""!all$.

'eedbac2

The compa"$ pro%ides the a""!al feed'ac( to its emplo$ees a"d th!s* i" term

'ri"# o!t the hi#hli#hts of the self assessme"t pro#ramme. This e"a'les the

'etter comm!"icaito" 'etee" the ma"a#eme"t a"d emplo$ees ad th!s* helps

i" promoti"# the '!si"ess f!t!re.

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Response

There are mi;ed respo"ses from the feed'ac( '$ the emplo$ees. t has helped

some of the emplo$ees i" moti%ati"# themsel%es hile those ho felt 'ad

ere thoro!#hl$ comm!"icated a"d all the co"f!sio" a"d fail!re part ere

disc!ssed ith emplo$ees.

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&$apter @

ANA"5SIS AND

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INTERPRETATION O'

DATA

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&$apter @

ANA"5SIS AND INTERPRETATION O' DATA

After collecti"# the data o" Performa"ce Appraisal S$stem data as

A"al$ed a"d i"terpreted. The %ario!s topics co%ered for a"al$sis a"d

i"terpretatio" of data are5 )

.! Promotions

A promotio" ma$ 'e defi"ed as a" !pard ad%a"ceme"t of a" emplo$ee i" a"

or#a"isatio" to a"other jo'* hich comma"ds 'etter pa$/a#es* 'etter stat!s /

presti#e a"d hi#her opport!"ities / challe"#es a"d respo"si'ilit$* a 'etter

or(i"# e"%iro"me"t* ho!rs of or( a"d facilities etc.

Promoters ha%e a sal!tar$ effect o" the satisfactio" of the promoted perso"

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fit"ess. Tho!#h these #!ideli"es are "ot i" a ritte" format the s!per%isor a"d

ma"a#er #et it at the time of appraisal from the perso""el departme"t.

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As per the #!ideli"es from the perso""el departme"t emplo$ees are to 'e

promoted accordi"#l$. oe%er there is co"f!sio" amo"# the emplo$ee as

these #!ideli"es are "ot 'ei"# e;plai"ed time to time* ma"$ are "ot aare of

the e;isti"# promotio" polic$ i" the or#a"isatio".

Respo"de"ts ere as(ed hether the promotio" is ell defi"ed i" the

or#a"isatio". The respo"ses are #i%e" 'elo5

NL@6

Response Number Percenta/e

>es 6 6.66

No 92 94.6

a"

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Respo"de"t ere also as(ed to s!##est a"$ cha"#e i" the polic$. The respo"ses

ere as #i%e" 'elo5


Merit "ot reco#"ied 20 20.:3

+oes "ot defi"e career pla" 26 6.66

Not i"te#rated ith '!si"ess 0 0

etero#e"eit$ ithi" polic$ for 96 9:.:3

differe"t positio"

Majorit$ s!##ested for "o cha"#e i" the polic$. t seems the$ are satisfied ith

the c!rre"t polic$.

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Ali/nin/ /oal

Respo"de"t ere as(ed a'o!t the prese"t s$stem* does it help i" ali#"i"#

i"di%id!al #oal ith those of the or#a"isatio". The respo"ses ere as #i%e"

'elo5


>es 44 49.:3

No 2 2.9

a"

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&areer Pro/ress

areer pro#ress is somethi"# hich is co"ti"!o!s* ith the i"p!t from

or#a"isatio" i" term of trai"i"#* feed'ac( a"d co!"selli"#. " toda$

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!estio" as(ed as as follos5

Are the iss!es li(e career pla""i"# a"d s!ccessio" pla""i"# a part of compa"$s

polic$

The respo"ses to the a'o%e ere as #i%e" 'elo5


>es 6 6.66

No 44 49.:3

a"t sa$ 36 37.9

ere o"l$ 46K of the respo"de"t #a%e respo"se that it does "ot hile 3:K

#a%e respo"se that there is "o career de%elopme"t pla" at all.

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'eedbac2

Pro%idi"# feed'ac( pla$a co"str!cti%e role. t helps the emplo$ee ("o

his/her ea("ess a"d stre"#th. Ceed'ac( pro%ides for the area of

impro%eme"t.

Respo"de"t ere as(ed a'o!t the fre-!e"c$ of feed'ac( 'ased o" their

performa"ce. The respo"ses ere as #i%e" 'elo5


Rarel$ 24 29

" a fe occasio" 40 4.66

Sometimes 24 29

fte" : :.34

Almost ala$s Nil Nil

4 perce"t respo"ded that feed'ac( is pro%ided tho!#h o" a fe occasio". The

fre-!e"c$ has to i"crease 'oth from the i"di%id!al a"d or#a"isatio" poi"t of

%ie to (eep the i"di%id!al moti%ated for or( i" li"e ith the or#a"isatio"al

e;pectatio".

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Remedial measure

Based o" the performa"ce the remedial meas!res are ta(e" to do aa$ ith

ea("ess if a"$ a"d '!ild o" the stre"#th a"d add to the e;isti"# capa'ilit$

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Respo"se o" the remedial meas!re ere as #i%e" 'elo5


Ho' rotatio" 44 49.:3

Se"t to trai"i"# pro#ramme 40 4.66

o!"selled 2 2.9

A"$ other Nil Nil

No"e Nil Nil

ere the respo"se ere 'oth for jo' rotatio" a"d trai"i"# pro#ramme. +!ri"#

the co!rse it as felt that more trai"i"# i"p!t is to 'e pro%ided to the emplo$ee

to o%ercome the ea("ess a"d impro%e !po" the e;isti"# capa'ilit$ of the

emplo$ee.

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PROMOTION PO"I&5 AND PER'ORMAN&E APPRAISA"

APPRAISA"SYSEM

Respo"de"t ere as(ed ether the promotio" polic$ is li"(ed ith the

performa"ce appraisal s$stem

The respo"ses ere as #i%e" 'elo5


(es )* )+',)

-o ,. ,/'0)

a"t sa$ 4 4.9:

Majorit$ respo"se ere that promotio" polic$ is li"(ed ith the performa"ce

appraisal s$stem.

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S+OT ANA"5SIS

.! Stren/t$ 8+a'!r "dia ,imited is the first "dia" major compa"$ hich

came !p ith the idea of A$!r%edic co"cept i" %ario!s famil$ a"d health

care prod!cts. mostl$ hate%er i"#redie"ts it !ses i" its prod!ct are

e;tracted from "at!re as it has %er$ less s$"thetic chemical co"stit!e"ts

!sed i" its prod!ct a"d so it does "ot has a"$ threat of side effect. As it has

its prod!ct i" major areas %i. famil$* health care a"d i" food di%isio" it ca"

easil$ has lar#er share of mar(et. B$ this performa"ce appraisal s$stem act

as moti%ati"# factor for its emplo$ees to a #reat e;te"t '$ i"creasi"# their

efficie"c$ a"d s(ills. Cor e;ample* if e see +a'!r ,al +!"t Ma"ja"* it is

"dia

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&$apter C

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&ON&"USIONS

SUGGESTIONS

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&$apter C

&ON&"USIONS SUGGESTIONS

Conclusion

The a"al$sis a"d i"terpretatio" of data o" st!d$ of performa"ce appraisal a"d

its effecti%e"ess i" a" or#a"isatio" led to the folloi"# co"cl!sio"s5

The promotio" r!le tho!#h defi"ed "eed to 'e comm!"icated to e%er$

emplo$ee 'efore appraisal process is do"e a"d also j!stif$ the promotio" as

a res!lt of the appraisal. That the promotio" polic$ folloed differs at

differe"t positio" a"d cate#or$. A !"iformit$ has to 'e there i" the

impleme"tatio" of promotio" polic$ at all le%els

The process of performa"ce appraisal folloed i" +a'!r "dia ,td. at the

s!per%isor$ a"d a'o%e le%el S to sa$ "ot #ood '!t of satisfactor$ le%el.

The emplo$ees do "ot rate it %er$ #ood

The appraisal o!tcome has to 'e !sed fre-!e"tl$ for the p!rpose of reard

o" performi"# ell to#ether ith the feed'ac( o" the performa"ce. Also

he" performa"ce #oes do" emplo$ee has to 'e #i%e" feed'ac( a"d

moti%ated to do 'etter.

The or#a"isatio" at prese"t does"

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a fe occasio".

Performa"ce appraisal i" +a'!r "dia ,td is do"e o" a" a""!al 'asis.

More emphasis o" trai"i"# a"d jo' rotatio" as remedial meas!res.

The mecha"ism of co!"selli"# pre8performa"ce a"d post performa"ce is

"ot i" practice at the or#a"isatio" i" strict term. +!ri"#. the co!rse of st!d$

s!##estio" came from the emplo$ee side for the "eed of co!"selli"#.

Suggestions

The st!d$ !"derta(e" 'ri"# some i"teresti"# res!lt.

Trai"i"# the Appraisee5 t is proposed that appraiser 'e trai"ed for clear

!"dersta"di"# of the s$stem a"d its o'jecti%e a"d also co!"selled to 'e

ho"est* fair* j!st* !"'iased i" appraisi"# the appralsee.

Cactors/traits of e%al!atio"5 t is proposed that appraisee e%al!ated o"

a'o%e factors/traits 'e #i%e" s!ita'le remar( or j!stificatio" for 'ei"# #i%e"

differe"t -!a"titati%e #rade.

Greater clarit$ has to 'e has to there i" terms of jo' respo"si'ilit$. This is

possi'le he" the appraisal is do"e o" the 'asis of the descriptio".

" the or#a"iatio"* performa"ce appraisal is do"e o" a" a""!al 'asis

hich sho!ld 'e do"e !aterl$ to ma(e it more effecti%e.

o"siste"c$ is dema"ded i" the promotio"al polic$. t sho!ld "ot cha"#e

e%er$ $ear.

Mo"etar$ differe"ce 'etee" to #rades sho!ld "ot 'e lar#e* it sho!ld 'e

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moti%ati"# i" "at!re.

Performa"ce appraisal s$stem sho!ld 'e made more tra"spare"t a"d

ratio"ale.

Performa"ce feed'ac(5 The performa"ce feed'ac( sessio"s sho!ld 'e

impro%ed hich o!ld res!lts i" i"creasi"# emplo$ee moti%atio" to

impro%e performa"ce. The folloi"# co!ld 'e i"corporated.

Pi" poi"t the pro'lem 'eha%io!r a"d ma(e s!re the emplo$ee is aare

of it

Ma(e s!re the emplo$ee !"dersta"ds the co"se-!e"ces of the pro'lem

'eha%io!r. Get emplo$ee

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" a" ope" appraisal the emplo$ee o!ld come to#ether to set the tar#ets* to

!"dersta"d the m!t!al e;pectatio"s a"d s!pport to 'e pro%ided '$ the

appraiser to the emplo$ee for achie%i"# m!t!all$ accepted #oals/tar#ets.

Thro!#h this process of setti"# tar#ets the i"terperso"al relatio"ship 'etee"

the appraiser a"d the emplo$ee o!ld impro%e.

The ope" appraisal s$stem red!ces the hims a"d fa"cies of the appraiser. t

promotes res!lt8orie"tatio" as it is 'ased o" performa"ce rather tha" o"

perso"alit$ 'ased appraisal.

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AnneFure

a 4uestionnaire

b 9iblio/rap$y

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4UESTIONNAIRE

TO STUDY PERFORMANCE APPRAISAL SYSTEM

.. s the promotio"al polic$ ell defi"ed i" $o!r or#a"iatio"D

a. >es '. No c. ca"

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c. ra"(i"# method. d. critical i"cide"t method

e. a"$ other* (i"dl$ specif$

.7. " $o!r opi"io" does it ide"tif$ the trai"i"# "eedsD

a. to a lar#e e;te"t '. to some e;te"t c. ca"t sa$ d. "ot at all

.:. s the promotio"al polic$ li"(ed ith the performa"ce appraisal s$stem

a. $es '. "o c. ca"

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a. ala$s '. ofte" c. rarel$ d. "e%er. e. ca"

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.:. =hat do $o! feel are the positi%es i" the perfoma"ce appraisal s$stem i" $o!r

or#a"iatio"* Ii"dl$ me"tio"

.@ =hat do $o! feel are the shortcomi"#s of the performa"ce appraisal s$stem

'ei"# folloed i" $o!r or#a"iatio"* Ii"dl$ me"tio"

.20. Cor ho lo"# ha%e $o! 'ee" or(i"# i" this or#a"isatio"

.2. S!##estio" toards impro%i"# the performa"ce appraisal s$stem i" $o!r

or#a"isatio"

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9I9"OGRAP-5

) Clippo 1di"B.* Perso""el ma"a#eme"t* 1ditio" si;th* Tata Mc Gra ills*

@:4* p.#. 2298230

2) G!pta* .B.* !ma" Reso!rce Ma"a#eme"t* 1ditio" Cifth&Repri"t)*S!lta"

ha"d a"d So"s* Ne +elhi 2006* P.G. 9.389.0

3) Rao* P. S!''a*1sse"tials of !ma" Reso!rce Ma"a#eme"t a"d "d!strial

Relatio"s1ditio" Seco"d* imala$a P!'lishi"# o!se* Ne +elhi 2009*

p.#.206820

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