Final Report 72

8/6/2019 Final Report 72

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INTRODUCTION

Periodic assessment and evaluation is vital for the growth of any business.

Performance appraisal one of such tool to measure the performance of employee.

Performance appraisal is mainly used to determine the wage increase,

promotions, transfers and layoffs, termination of services and training and development

to the employee in the organization. It serves as a tool to determine the future of the

organization and visualize the career growth of the employees.

Performance appraisal is normally done by senior executives and the

managers in the organization to apprise the employee of their performance and also to

find out their performance and also to find out their difficulties while meeting their goals.

During this period of carrying out the process, the appraiser faces problem in rating the

subordinate/employees/peers and sometimes he may rate his subordinates wrongly, which

will block the whole purpose of the appraisal.

NOTES ON THE PERFORMANCE APPRAISAL:

The performance of organization depends on the effective utilization ofthe resource of 4Ms (Man space & buildings, raw materials, Plant and machinery &

money). Man is the most important resources for effective utilization of other resources

using their skills, knowledge and ability to perform.

People are key to our business success and their performance and moral

are related to effectiveness of leadership. Every organization, therefore, strives for greater

productivity, elimination of waste, lower costs and higher wages. The organization where

management leadership is effective, achieves better performance. If the leader is poor, it

will result in poor organization performance.

In any organization there is some sort of evaluation of the employees

and subordinates.


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PERFORMANCE APPRAISAL

An employee performance appraisal is a systematic, orderly and

objective method of evaluating the present and potential usefulness of the employee to

the organization.

A good appraisal program would enable the management to introduce a highly

systematic measurement of an individuals contribution to the organizational

effectiveness. It is equally essential to measure group performance, as a success of an

organization depends upon the effectiveness of the teamwork.

Performance appraisal provides a systematic basis for assessment of employee

contribution and distribution of economic rewards. Modern appraisal philosophy focuses

on performance, objective and goal setting.

KKC INSTITUTE OF PG STUDIES 2


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ORGANISATION CHART


MD

Executive

Director

Marketing

Director

G.M.

Finance

A.G.M.

(H.R.D)

G.M.

Production

D.G.M.

(S.O.D)

G.MR&D/QAD

A.G.M(Stores)

A.G.M

(C&S)

D.G.M

(P&M)

A.G.M

(U&T)

D.G.M

(D&M)

D.G.M(M.TL)

Chairman


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SCOPE

Performance appraisal systems are practiced in most organizations

today. Performance appraisal is a Pre-requisite to user in quality at the human-social

subsystems of an organization enabling better reward process and adoption to

environmental changes. The performance appraisal process is not the sole responsibility

of human resource. It is the prime responsibility of all line managers

The study emphasizes the top level management, supervisory cadres

covering all the departments. It takes into the preview primary datas secondary data and

also certain observation during data collections.



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OBJECTIVES

PRIMARY OBJECTIVES

The study titled Performance Appraisal System as a tool for organizational

development has been conducted with the following objectives.

To study the existing system of performance appraisal at SHOBIZ

EXPERIMENTAL COMMUNICATION PRIVATE LID.,

SECONDARY OBJECTIVES

To find out the effectiveness of the performance appraisal system.

To obtain the perception of the employees towards the Performance Appraisal.

To suggest the ways and means to improve the appraisal system.



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RESEARCH METHODOLOGY

Research Methodology is a systematic and objective process of identifying

and formulating the problem by setting objective and methods and the methods for collecting,

editing, tabulating, evaluating, analyzing, interpreting and presenting data in order to find

justified solution.

RESEARCH DESIGN

A Research Design is a purely and simply the framework or plan for a study that

guides the collection and analysis of data. It is a blue print that is followed in completing a

study.

The research design undertaken by the researcher is descriptive research design. The

methodology involved in this design is mostly qualitative in nature. Descriptive research

design is concerned with the research studies with a focus on the portrayal of the

characteristics of a group or individual or a situation. The main objective of such studies is to

acquire knowledge. Similarly, such studies are used to examine the characteristics of the

corporate sector or consumer behavior etc., the descriptive study is typically concerned with

determining frequency with which something occurs or how two variables vary together.

SOURCES OF DATA COLLECTION

Data refers to the information or facts. Often researchers understand by data only numerical

figures. It also includes descriptive facts, non-numerical information, qualitative and

qualitative information. The source of data can be from primary and Secondary.

Primary Data



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Primary data are those data, which are collected as fresh and for the just time and thus happen

to be original primary data for this study was collected by preparing a well-structured

questionnaire.

Method of Sampling

There are many sample methods to collect data. The sampling method used is simple

random sampling.

Sample Size:

The Sample constituted of 60 workers from different department of the organizations.

Survey Design:

The survey is based on the primary source of data. Three methods of primary

data were selected to conduct the study i.e., Questionnaire, Observation and Personal

Interviews methods. Since the statements in the Questionnaire and Schedule were

qualitative, they are quantified on a five-point Scale using Linker type technique.

Respondents are asked to tick mark the appropriate scope on a five-point continuum.

STATISTICAL TOOLS FOR THE STUDY

Sample Analysis By Percentage (%)Method

% refers to a special kind of ratio. % is used in making comparison between two

or more serried of data, % are used to describe relationship. It can be used to compare therelative terms, the distribution of two or more series of data.

NO OF RESPONDENT

TOTAL NO OF SAMPLES SIZE* 100



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LIMITATIONS

Study is limited to SHOBIZ EXPERIMENTAL COMMUNICATION PRIVATE

LID.,

Employees did not disclose much of information for the fear of their superiors.

Time constraint is one of the factor .



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REVIEW OF LITERATURE

MEANING OF PERFORMANCE APPRAISAL:

Performance appraisal may be understood as the assessment of an individuals

performance in a systematic way, the performance being measured against such factors as job

knowledge, quality of output, initiative, leadership abilities, potential dependability, co-

operative, judgment versatility and health.

Assessment should not be conformed to past performance alone. Potentials

of employees for future performance must also be assessed.

Performance appraisal or merit rating or performance evaluation is one of

the most important functions of personnel management that area of management deals

with human beings and their behaviour.The need of performance appraisal also arises due

to the fact that every person has a different personality-situational, social and

psychological. Once the employees are hired, they are inducted trained and developed

with the help of various development programs.

DEFINITION OF PERFORMANCE APPRAISAL:

Performance appraisal is a systematic judgment of the subordinate by the superior

authority to access the standard of work and overall performance.

Performance appraisal is a formal structured system of measuring and

evaluating an employees job related behaviors and outcomes to discover how and why



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employee is presently performing on the job and how the employee can perform more

effectively in the future so that employee, organization and society all benefit.

Performance appraisal may be understood as the assessment of an

individuals performance in a systematic way, the performance being measured against such

factors as job knowledge, quality and quantity of output, initiative, leadership abilities,

supervisors, dependability, co-operation, judgment, versatility, health etc.

BENEFITS OF A SYSTEMATIC APPROACH TO PERFORMANCE

APPRAISAL:1. Help to establish the current level of performance in the job and seek ways of

improving it.

2. Helps to identify potential for the development and to aid manpower planning Right

man for the right job at right time can be aimed.

3. Helps to ink salary realistically to performance.

4. Helps to maintain good employee-employer relationship for promoting motivation,

communication and equality.

5. Helps in promoting group cohesiveness and establish fair relationship with in the

work groups.

6. Helps the management to allocate their resources in a dynamic environment and

thereby meeting the challenges of the modern technological development.

7. Help the management to administer effectively tactical and strategic planning in the

organization by ensuring continuity and growth of economic activities.

8. This is a unified system, thus avoiding the errors of nepotism, self-interest and

discrimination.

9. It provides information which is useful in making and enforcing important personnel

decisions.



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10. The appraisal of employees are stored and maintained in the personnel and their skill

inventory cards. Arbitrators adjudicators or conciliation officers accept these in the

course of grievance handling procedures as authentic records.

11. Timely, systematically, up to date, honestly and sincerely done performance appraisal

creates mutual understanding of them.

OBJECTIVES OF PERFORMANCE APPRAISAL:

Data relevant to performance assessment of employee are recorded, stored and used for

several purposes.

The main objectives of employees performance appraisal are:

1. To effect promotions based on performance and competence.

2. To confirm the services of probationary employees, upon their completing the

probationary period satisfactorily.

3. To access the training and development need of the employees.

4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have

not been fixed.

5. To let the employees become aware about their performance level and to assist them with

constructive criticism and guidance for the purpose of their development.

6. To improve communication, performance appraisal provides a format of dialog between

superiors and the subordinates, there by bringing an understanding or personal goals and

concerns.

7. Performance appraisal can be used to determine whether HR programs such as selections,

training and transfers have been effective or not.

8. Performance appraisal would increase the moral of employees.



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9. Performance appraisal would stimulate employees participation in decision making,

there by increasing the effectiveness of his own work.

10. It will help the management in rationalizing a job oriented level of individual

performance.

JOSEPH TIFFIN LISTS THE FOLLOWING OBJECTIVES OF

PERFORMANCE APPRAISAL (PA)

It prevents grievances.

It improves job performance.

It increases analytical ability of supervisor.

Broadly PA serves four objectives:

Developmental uses.

Administrative uses/decisions.

Organizational maintenance/objectives.

Documentation purpose.

MULTIPLE PURPOSES OF PERFORMANCE ASSESSMENT:

General Applications Specific Purposes

Developmental Uses I. Identification of individual needs.

II. Performance feed back

III. Determining transfers and job

assessment

IV. Identification of individual

strengths and development needs.

Administrative uses/decisions Salary, promotion, retention or termination,

reorganization of individual performance,

lay-offs, identification of performance



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Organizational maintenance objectives HR planning, determining organizational

training need evaluation of organizational

goal achievements.

Documentation Criteria for validation research,

documentation of decisions, helping to

meet legal requirements.

PURPOSE OF PERFORMANCE APPRAISAL:

Every individuals offer in their personality, situational, social, physiological traits.

Once the employees are hired. They are inducted, trained and developed with the help of

various training and development programs. But such development is slow.

Performance appraisal plays a key role in reward system. It is the process

of evaluating the performance of employees.

APPRAISAL PROCESS:

OBJECTIVES OF APPRAISAL:

Objectives includes effective promotions and transfers, assessing

training needs, awarding pay increases etc. the emphasis is to correct the problem.

KKC INSTITUTE OF PG STUDIES

OBJECTIVES OF PERFORMANCEAPPRAISAL

AllocateResource

Reward

Employees

Give

EmployeesFeedback

Maintain

Fairness

Coach&

DevelopEmployees

Comply with equalopportunity Regulation

13


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These objectives are appropriate as long as approach in the appraisal is focused on the

individual.

ESTABLISH JOB EXPECTATIONS:

Includes informing the employees what is expected of him/her on

the job. Normally a discursion is held with his/her superior to review the major duties

contained in the job description. Individuals should not be expected to begin unstill they

understand what is expected of them.

DESIGN JOB EXPECTATIONS:

Designing an appraisal program poses several questions that need answers.

They are

a) Formal vs. informal appraisal.

b) Whose performance is to be assessed?

c) Who are the raters?

d) What problems are encountered?

e) How to solve the problem?

f) What should be evaluated?

g) When to evaluate?

h) What methods of appraisal are to be used?



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WHAT SHOULD BE RATED?

Six criteria for assessing performance are:

1. QUALITY

2. QUANTITY

3. TIMELINESS

4. COST-EFFECTIVENESS

5. NEED FOR A SUPERVISION

6. INTERPERSONAL IMPACT

TIMING OF EVALUATION:

How often should an employee be assessed? The general trend is to evaluate

once in 3 months or 6 months or once in a year. According to survey conducted in 1997

by Author Anderson, 70% of the organization conduct performance appraisal once a year.



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METHODS OF APPRAISAL:

Broadly all the approaches to appraisal can be classified in to following:

a) Past-oriented methods

b) Future oriented method.

METHODS OF APPRAISAL

1. PAST ORIENTED

A. RATING SCALEB. CHECK LISTS

C. FORCED CHOICE METHOD

D. FORCED DISTRIBUTION METHOD

E. CRITICAL INCIDENT METHOD

F. BEHAVIORALLY ANCHORED SCALE

G. FIELD REVIEW METHOD

H. PERFORMANCE TESTS AND OBSERVATIONS

I. ANNUAL CONFIDENTIAL REPORT

J. ESSAY METHOD

K. COST ACCOUNTING APPROACH

L. COMPARATIVE EVALUATION METHOD

M. FUTURE ORIENTED



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A. MANAGEMENT BY OBJECTIVES

B. 360 DEGREE APPRAISAL

C. PSYCHOLOGICAL APPRAISAL

D. ASSESSMENT CENTERS

PAST-ORIENTED METHODS:

RATING SCALE:

This is the simplest and most popular technique of appraising employees

performance. The typical rating scale system consists of several numerical scales, each

representing a job related performance criterion such as dependability, initiation, output,

attendance, attitude, co-operation and the like. Each scale ranges from excellent to poor.

The rater checks the appropriate performance level on each criterion, and then computes

the employees to total numerical score. The number of points scored may be linked

salary increases, where by so many points equal a rise of some percentage.

Rating scaled offers the advantages of adaptability, relatively easy use and low cost.

The disadvantages of this method are several. The raters biases are likely to

influence evaluation, and the biases are particularly pronounced on subjective criteria

such as co-operation, attitude and initiative.

CHECK LIST METHOD

Under this method, a check list of statements on the traits of the employee and

his /her job is prepared in 2 columns-viz, a Yes column and a No column. All that the

rater should do is to tick the Yes column if the answer to the statement is positive and in

the column No if the answer is negative.

FORCED CHOICE METHOD:



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In this the rate is given a series of statements about an employee.

These statements are arranged in a block of two or more, and rather indicate, which

statement is more or least descriptive of the employee.

FORCED DISTRIBUTION METHOD:

The forced distribution method seeks to over come the problems by

compelling the rates on all points on the rating scale. The method operates under an

assumption that employee performance level conforms to a normal statistical distribution.

Generally it is assumed that the employee performance levels conform to a bell shaped

curve.

CRITICAL INCIDENTS METHOD:

The critical incident method of employee assessment has generated a

lot of interest these days. The approach focuses on behavior of employees that makes all

the difference between effective and non-effective performance of job. Such incidences

are recorded by superiors as and when they occur.

BEHAVIOURALLY ANCHORED RATING SCALE (BAR):

Behaviorally anchored scales, sometimes called behavioral expectationscales, are rating scales whose scale points are determined by statements of effective and

in-effective behaviors. They are said to be behaviorally anchored in that the scale

represent a range of descriptive statements of behavior varying from least to most

effective. BAR has following features:

1. Areas of performance to be evaluated are identified and defined by the people

who will use the scale.

2. The scales are anchored by descriptions of actual job behavior that, supervisors

agree, represent specific level of performance. The result is a set of rating scale in

which both dimensions and anchors are precisely defined.



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3. All dimensions of performance to be evaluated are based on observable behaviors

and are relevant to the job being evaluated since BARS are tailor-made for the

job.

4. Since the raters who will actually scale are actively involved in the development

process, they are more likely to be committed to final product.

FIELD REVIEW METHOD:

This is an appraisal by someone outside the accesss own department,

usually someone from the corporate office or the HR department. The outsider reviews

employee records and holds interviews with the rate and his or her superior. The method

is primarily used for making promotional decision at the managerial level; field reviews

are also useful when comparable information is needed from employees in different units

or locations.

PERFORMANCE TEST AND OBSERVATIONS:

With a limited number of jobs, employee assessment may be based upon a test of

knowledge or skills. The test may be of the paper and pencil variety or an actual

demonstration of skills. The test must be reliable and validated to be useful.

COFIDENTIAL RECORDS:

Confidential records are maintained only in government departments, though its

application in the industry is not ruled out. The system is highly secretive and

confidential. Feedback to the assesses was given only incase of an adverse entry.

ESSAY METHOD:



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In the essay method, the rater must describe the employee within a number of

board categories such as

The raters overall impression of the employees performance,

The promo ability of the employee,

The jobs that the employee is now able or qualified to perform,

The strengths and weakness of employee and

The training and the development assistance required by the employee. Although

this method is being used independently, it is most frequently found is combination

with others. It is extremely useful for filling information gaps about the employees

that often occur in the best structured checklist method.

This is the traditional method in which appraises the rate in an open-ended

manner and uses a free-form in his own words and puts down his impressions about the

employee.

They take note about these factors:

a) Job knowledge and potentials.

b) Employees characteristics and attitude.

c) General organization and planning attitude.

d) Understanding of companys policies and procedures and its

application.

e) Production or quantity, quality and cost control.

f) Physical conditions.

g) Development needs of future.

COST ACCOUNTING METHOD:

This method evaluates performance from the monitory returns the employee

yields to his or her organization. A relationship established between the cost included in

keeping the employees and the benefits the organization derives from him or her.

Performance of the employee is then evaluated based on the established relationship

between the cost and the benefits.



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COMPARITIVE EVALUATION APPROACHS:

This method evaluates performance from the monetary returns the

employee yields to his or her organization. A relationship is established between the costincluded in keeping the employee and the benefit the organization derives from his or her.

Performance of the employee is then evaluated based on the established relationship

between the cost and the benefit.

FUTURE ORIENTED APPRAISAL:

The commonly used future oriented technique is MBO, psychological

appraisal &assessment centers.

Management by objectives:

Management by objectives is a technique used by managers in some organizations

to motivate employees to perform well by using the goal-setting technique.

Objectives of MBO:

To identify the problems and opportunities in the business.To convert identified opportunities in to clear goals.

To set up a system to convert these goals into achievements.

To set a standard of performance.

To raise a standard of performance.

To set a new target where the existing ones have proved unrealistic.

To achieve something in particular.

8) To innovate.

9) To develop the individual.

To cash in on unforeseen circumstances.

To clarify the policies and systems to accomplish the objectives.

To implement the new policy.



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13) To review the organization in the light of units objectives. To ensure

that the managers idea of the nature of the job is in line with the organizations

overall profit plan.

Psychological appraisal:

Large organizations employ full time industrial psychologist, when

psychologists are used for evaluations; they assess an individuals future potential and not

performance. The appraisal normally consists of in depth interviews, psychological tests,

discussions with supervisors and a review of other evaluations. The psychologist may be

for a specific job opening for which the person is being considered, or it may be a global

assessment of his or her future potential.

Assessment center:

Mainly used for executive hiring, assessment centers are now beginning

used for evaluating executive or supervisory potential. An Assessment centers are a

central location where managers may come together to have their participation in job-

related exercises evaluated by trained observers. The principal idea is to evaluate

managers over a period of time, say one to three days, by observing(and later evaluating)

their behavior across a series of select exercises or work samples.

360-degree feedback:

The performance evaluation technique by multiple raters is called 360-

degree appraisal. The 360-degree technique is understood as systematic collection of

performance data on an individual or group, derived from a number of stakeholders- the

stakeholders being the immediate supervisors, team members, customers, peers, and self.

In fact, anyone who has useful information on how an employee does the job may be

one of the appraisers.



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The 360-degree appraisal provides a broader perspective about an

employees performance. In addition, the technique facilitates greater self-development

of the employees.

ORGANIZATIONAL STRATEGY AND PERFORMANCE APPRAISAL:

Performance appraisal system has strategic importance to a firm in three ways:

Feed back mechanism.

Consistency between organizational strategy and job behavior and

Consistency between organizational values and job behavior.

Feed back Mechanism:

An organization seeks to do three fundamental tasks.

1. Design jobs and work system to accomplish organizational goals;

2. Hire individuals with capabilities to discharge the jobs effectively; and

3. Train, motivate and remunerate employees for their performance and

productivity.

Performance evaluation is the central mechanism that not only provides feedback to

individuals, but also aids in the assessment of the program of the organization as whole.

Without a performance appraisal system, managers of any firm can only guess as or not

employees are working towards realization of the organization goals.

Consistency between organizational strategy and behavior:

An organization needs a strategy consistent with the behavior of its

employees if it were to realize its goals. A truism of organizational life is that people

engage themselves in behaviors that they perceive will be rewarded. As employees want

to be reward, they tend to occupy themselves more with those activities which the



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organization emphasized. For example, if the focus is on service, employees will behave

in ways that will help them in gaining the reward associated with service delivery. If the

focus is on cost control, employees will seek to control cost and thus be recognized and

rewarded. If the focus is on rewarding Productivity, employees will strive for

productivity.

COUNSELLING:

Counseling is a discussion of a problem that usually has emotional content

with an employee in order to help the employee cope with it better. Its goal is better

mental health and it is performed both by managers and professional counselors. The

major counseling functions are advice reassurance communication, release of emotional

tension, clarified thinking and reorientation.

Characteristics of counseling:

o Requires two people, a counselor and counselee.

o Is an act of communication?

o Helps employee cope.

o Reduces employee problems and emotional upsets.

o Improves organizational performance.

o Helps organization to be more humanly and considerate.

o Performed by both professionally and nonprofessionally.

o Involves both job and personal problems.

o Is confidential and private.

Advice: counselors often give advice to counselees in order to guide them towards

desired courses of action.



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Reassurance: The counseling experience often provides employees with reassurance,

which is confidence that they are following a suitable course of action and have the

courage to carry it out.

Communication: Counseling is communication experience. It initiates upward

communication to management and also gives the counselor an opportunity to interpret

management problems and give work insights to employees.

IMPROVING APPRAISAL SYSTEM:

The following suggestions might lead to a performance appraisal process:

1. Ensure that all employees are subjected to evaluate (from the president/manager down)

2. People in the organization will feel more committed to the performance evaluation

process. If the supervisors who do the appraisal will also be judged.

3. The appraisals ought to be spread through out the year.

4. Supervisors faced with a pile of appraisals at any one period of time will feel

overwhelmed and will not do a good job if they are hurried.

5. Legal considerations and confidentiality must be considered.

6. Politics with respect to where the appraisal will be kept and who has access to the must

be implement.

7. Self evaluation should be encouraged as part of the process.

8. This procedure may invite disagreement.

9. Most people rate them selves the same or lower than their manager will.

10. Another benefit is that managers frequently dont know all lthat required getting the jobdone the manager thus learns more about the organization by reading the employees self

appraisal form.

11. Have peers conduct reciprocal reviews.

12. Have subordinate evaluate their supervisors.

13. Establish a clear relationship between salary increments and performance appraisals.



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14. Establish a policy to determine how much of the review will be based of personal

observation and interaction and how much will they rely on input review from others.

15. Make sure all the employees are aware of this policy.

16. Publicize which performance appraisal methodology you intend to use.

17. Consider using external sources of information-customers/clients etc

18. Use performance appraisal as a chance to clarify or communicate the intention of the

employees.

BENEFITS OF PERFORMANCE APPRAISAL FOR TYPICAL EXECUTIVES:

The system should provide employee with an opportunity to receive feedback

regarding their performance usually once in a year. This leads to reduced error and

waste, increased production improved quality, and service for growth, and employee

motivation, commitment and since of ownership.

The system provides an opportunity for performance related discussion thatincludes the following aims:

Setting objective of employees

Aliening individual and organizational goals,

Identifying training and development needs,

Discussing career progression opportunities.

The system standardizes performance appraisal and provide uniform procedure

and criteria for measurement of performance. J This result in fire, valid andlegally defensible for rewarding basis for rewarding and recognizing individual

performance.

The system affords the corporation legal protection against employee

Lawsuits for discrimination and wrongful termination.



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Many organizations have introduced management development program to train

managers on general aspects of executive development, including:

For motion of committees

Problem solving

In-basket

Business games

Counseling

Coaching

Lectures

Promotion & transfer

Job rotation

Sensitivity training

TRAINING AND DEVELOPMENT:

Training is the art of increasing the skill of a worker in doing a worker in

doing a work more efficiently. The manager should develop a scheme of training to the

employee so that they can acquire knowledge, skill, Attitude and understanding need to

perform their job efficiency.Training and development activities are designed, considerable costs not

with standing, to imports specific skills abilities and knowledge to employees. Dissection

is often made between training, education and development. Training refers to imparting

specific skills. Education is learning opportunities designed to help employee grow and

employees differ. Training is confined to shop floor workers development is meant for

executives. Education of course is need for all employees irrespective of their hierarchy

Types of training:

Orientation training

Refreshing training

Apprenticeship training



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Internship training

MOTIVATION: The basic principle is that the performance of individuals depends on

his or her ability backed by motivation. Stated algebraically, the principle is: performance

=f (ability X MOTIVATION).ability refers to the skills and competence of the person to

complete a given along with the ability, a persons desire the task is necessary.

Organization becomes successful when employees have abilities and desire to

accomplish the given tasks

Definitions on Motivation:

Motivation is the act of stimulating someone or oneself to get a desired course of

action by Michael j.julius.

Some terms of motivation are: motives needs, incentives, disincentives, drives.

Benefits of motivation: Creates voluntary cooperation from the workers/employees.

Organization goals can be achieved.

The efficiency of the workers will raise the productivity and quality of workers

improves.

Reduce labor turnover and absenteeism.

Maintains cordial industrial relation. Reduce grievance and accidents.

Organizational change can be introduced easily.

Recognition and development of talents and skills.

Theories of motivation:



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Workers should be persuaded the objective of the organization. To motivate

people effectively. Managers should prepare certain plans. There are various plans,

strategies or theories of motivation.

Traditional theories of motivation:

Be strong theory or and pungent theory.

Effort and reward theory.

Monistic theory.

Carrot and stick theory.

Be good or paternalistic theory.

DATA ANALYSIS AND INTERPRETATION

TABLE -4.1

Q1: Whether the company should have a performance appraisal system?

ATTRIBUTES NO OF

RESPONDENTS

% OF

RESPONDENTS

YES 48 80

NO 20 20

TOTAL 60 100

GRAPH



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80%

20%

Yes

No

INFERENCE: From the above table, 80% of respondent felt that company should have a

performance appraisal system and 20% felt that no need of performance appraisal system.

TABLE-4.2

Q2: Are you satisfied with current performance appraisal system?

ATTRIBUTES NO OF

RESPONDENTS

% OF

RESPONDENTS

SATISFIED 32 53

DISSATISFIED 28 47

CANNOT 0 0

TOTAL 60 100

GRAPH



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53

47

0

0

10

20

30

40

50

60

S A TIS F A C TIO N D IS S A TIS F A C TIO N C A N NO T

% O F R E S P O N D E

INFERENCE: The above table shows that, most of the people satisfied with current

performance appraisal system53% and 47% people dissatisfied.

TABLE-4.3

Q3. According to you who should appraise employee performance?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPNDENTS

SUPERVISOR 32 53

SUBORDINATES 28 47OTHERS 0 0

TOTAL 60 100

GRAPH



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53

4 7

0

0

1 0

2 0

3 0

4 0

5 0

6 0

S UP E RIOR SSUB O RD INATE S OTH ER S

% O F RE SP ON DE

INFERENCE: From the above table shows that 53% of the people agree that superiors

and 47% with subordinates and 0% with others.

TABLE-4.4

Q4.What is the main benefit of performance appraisal system?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

GROWTH 24 40

REWARDS 0 0

MOTIVATION 28 47MISTAKES ARE

CORRECTED

8 13

TOTAL 60 100

GRAPH



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40%

0%47%

13%Growth

Rewards

Motivation

Mistake

INFERENCE: The above table shows that, 47% of the employees feel that motivation is

the only benefit of performance appraisal and 40% of employees feel growth and 13%

with mistakes.

TABLE-4.5

Q5. Whether you need training in performance appraisal system?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 40 67NO 20 33

TOTAL 60 100

GRAPH



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67%

33%

Yes

No

INFERENCE: From the above table shows that, 67% of the respondents agree with

training in performance appraisal system and rest of the 33% respondents does not agree.

TABLE-4.6

Q6.Do you feel that promotions are given based on performance?

ATTRIBUTES NO OF

RESPONDENTS

% OOF

RESPONDENTS

YES 32 53

NO 28 47TOTAL 60 100

GRAPH



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53%

47% Yes

No

INFERENCE: From the above table inferred that 53% of respondents are agreed with

promotions made on performance and remaining 47% is not needed.

TABLE-4.7

Q7. How do you feel about present job?

ATTREBUTES NO OF

RESPONDENTS

% OF

RESPONDENTS

HOBBY 4 7

INTERESTING 12 20SATISFIED 44 73

TOTAL 60 100

GRAPH



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7%20%

73%

Hobby

Interesting

Satisfied

INFERENCE: From the above table shows that, 73% of employees are satisfied with

their present job and 20% feel that there job is interesting and rest of the employees feel

their job as hobby.

TABLE-4.8

Q8: How often appraisal should be conducted in practice?

ATTREBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

3MONTHS 0 0

6MONTHS 4 7

12MONTHS 56 93

TOTAL 60 100

GRAPH



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07

93

0

10

20

30

40

50

60

70

80

90

100

3M ON THS 6M ON TH S 12M ON THS

% O F R E S P O N D E N

INFERENCE: From the above table shows that, 73% of the respondents are satisfied

with their present job and 20% feel that there job is interesting and rest of the employees

feel their job as hobby.

TABLE-4.9

Q9.Do you feel that performance appraisal system be kept confidential?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 36 60NO 24 40

TOTAL 60 100

GRAPH



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60%

40%Yes

No

INFERENCE: From the above table shows that, 93% of the respondents feel that the

appraisal should be conducted for every 12 months and 7% of the respondents feel that it

should be conducted for every 6months.

TABLE-4.10

Q10: What do you think the word SUCCESSFUL means? Who is a successful

person?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

MONEY 4 7

OWN GOAL 36 60

CONTENT 20 33

TOTAL 60 100

GRAPH



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7%

60%

33%Money

Own goal

Content

INFERENCE: From the above table shows that, 60% of respondents feel that

performance appraisal system be kept confidential but 40% of the respondents does not

agree.

TABLE-4.11

Q11: How do you feel your appraisal interview to be?

ATTREBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

IN WRITTEN 16 27

FACE TOFACE

44 73

TOTAL 60 100

GRAPH



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27%

73%

In written

Face to face

INFERENCE: From the above table shows that, 73% of the employees feel that

appraisal interview should be as face to face and rest of them feel that should be in

written.

TABLE-4.12

Q12: What do you think you need while working?

ATTREBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

CLOSE 24 40

ALONE 36 60

TOTAL 60 100

GRAPH



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40%

60%

Close

Alone

INFERENCE: From the above table shows that, 60% of respondents prefer to work

alone to do work while 40% respondents requires close supervision while doing work.

TABLE-4.13

Q13: How do you prefer to handle job?

ATTREBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

ONE JOB AT A

TIME

56 93

ALL JOBS AT A

TIME

4 7

TOTAL 60 100

GRAPH



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INFERENCE: From the above table shows that, majority of the respondents prefer to

handle one job at a time than all jobs.

TABLE-4.14

Q14: According to you, what is the purpose of performance appraisal?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

ORGANIZATIONAL 24 40

PERSONAL 16 27

T&D 16 27

REWARDS 4 6TOTAL 60 100

GRAPH


93%

7%

One

All


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40%

27%

27%

6%Organizational

Personal

T&D

Rewards

INFERENCE: From the above table shows that, 40% respondents says that performance

appraisal means to improve organizational effectiveness where as 27% of the respondents

says that performance appraisal is to improve personal effectiveness and recommended

for training and development needs and 6% says help in pay adjustments/rewards.

TABLE-4.15

Q15: What is the objective of performance appraisal system?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

NEEDS 24 40

ROTATION 16 27

PROMOTIONA; 20 33

PUNISHMENT 60 100

TOTAL

GRAPH



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40

27

33

00

5

10

1520

25

30

35

40

45

NEED

S

ROTATION

PROMOTIONA

L

PUNI

SHMEN

T

%OF RESPONDENTS

INFERENCE: The above table shows that, majority of respondents i.e.; 40% feels

objective of performance appraisal system is to identify the training needs and 33% of

respondents says to determine promotional opportunity and 27% says that the objectives

is to be effect job rotation.

TABLE-4.16

Q16: Has your performance been enriched by any training you have undergone in

your field of working?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 28 47NO 32 53

TOTAL 60 100

GRAPH



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47%

53%

Yes

No

INFERENCE: From the above table shows that, 53% respondents feels that their

performance has not enriched by any training that they have under gone in field of

working were as 47% agree that the performance has enriched by training.

TABLE-4.17

Q17. Will the high performers performance be motivated further if he/she is

intimated regarding their performance?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 48 80

NO 12 20TOTAL 60 100

GRAPH



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GRAPH

33%

0%20%

47%

Better

Better way

Clear

Satisfaction

INFERENCE: From the above table shows that, 47% of respondents appreciate the

current appraisal system by increasing job satisfaction. Where as 20% of respondents

appreciate it provides a clear communication of employees expectation.

TABLE-4.19

Q19. Do you think the performance appraisal should undergo change as a matter of

policy from time to time?

ATTERIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 60 100NO 0 0

TOTAL 60 100

GRAPH



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60

0

0

10

20

30

40

50

60

YES NO

%OF RESPONDENTS

INFERENCE: The above table shows that, majority of respondents think that

performance appraisal should under go change as a matter of policy from time to time.

TABLE-4.20

Q20. Do you think the performance appraisal system is a waste of time for the

organization, appraiser and appraise?

ATTRIBUTES NO OF

RESPONDENTS

% OF

RESPONDENTS

YES 0 0NO 60 100

TOTAL 60 100

GRAPH



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0

60

0

10

20

30

40

50

60

YES NO

%OF RESPONDENTS

INFERENCE: From the above table shows that, there were nil percent (%) thinks that

performance appraisal is a waste of time for the organization.

TABLE-4.21

Q21. Does your boss provide you advice and assistance regarding your work?

ATTRIBUTES NO OF

RESPONDENTS

%OF

RESPONDENTS

YES 56 93

NO 7 7

TOTAL 60 100

GRAPH



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93%

7%

Yes

No

INFERENCE: The above table shows that, majority of respondents agree that their boss

provides advice and assistance regarding their work.

FINDINGS

The present appraisal system of KS&DL is 360 degree performance appraisal

The appraisal system is such that employees are appraised by the superiors.

Most of the members are satisfied the performance appraisal method.

47% of the respondents felt that motivation was the main benefit of performance

appraisal system.



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73% of the respondents feel the performance appraisal interview should be as face

to face conversation.

The current appraisal system is increasing the job satisfaction of employees.

The respondents are strongly agreed that training needs can be decided.

The respondents agreed that they are getting appropriations from the superiors

only to some extent.

The management is paying much attention to the performance appraisal for

rewards and carrier enrichment of the employees.

The process of conducting performance appraisal programs to low-level

employees is periodic orientation and for middle level management it is through

counseling.

SUGGESTIONS

The management should design training & development programs and carrer

development programs on identified skills or knowledge needs.

Promotions of employees should be based on performance and not just on

experience.

Appreciate good performers and motivate others for better performance.

The evaluators should receive proper training in performance appraisal.



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The review meetings should conduct which is help to clarify their doubts

regarding their goals.

The efforts, skills and abilities of the employee should also consider while

appraising the employees.

Appreciation from superiors will make employees to render their best services

to the organization.

A self appraisal system helps the employees to know their standards.

The employees are informed that how they are ranked to peers, superiors and

subordinates.

BIBLIOGRAPHY

REFERENCE TEXT BOOKS:

TEXT BOOKS AUTHORS

1. Personnel Management Edwin B. Flippo

2. HR Management Ian Bread well & Len Holden

3. HR and Personnel Management K. Ashwathappa

4. Personnel/HRM Subba Rao and V. S. P Rao



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WEBSITES:

WWW.MYSORESANDAL.COM

ANNEXURE

QUESTIONNAIRE

1. Whether the company should have a performance appraisal system?

Yes

No

2. Are you satisfied with current performance appraisal system?

Satisfied

Dissatisfied

Can not



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3. According to you who should appraise employee performance?

Supervisor

Subordinates

Others

4. What is the main benefit of performance appraisal system?

Growth

Rewards

Motivation

Mistakes are corrected

5. Whether you need training in performance appraisal system?

Yes

No

6. Do you feel that promotions are given based on performance?

Yes

No

7. How do you feel about present job?

My job is like a hobby to me.

My job is interesting to me

I am satisfied with my present job.

8. How often appraisal should be conducted in practice?

3 months

6 months

12 months



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9. Do you feel that performance appraisal system be kept confidential?

Yes

No

10. What do you think the word SUCCESSFUL means? Who is a successful person?

Who made lot of money?

Who has achieved his own goal.

Who is happy and content

11. How do you feel your appraisal interview to be?

In written

Face to face conversation.

12. What do you think you need while working?

Require close supervisor

Prefer to work alone

13. How do you prefer to handle job?

One job at a timeAll jobs at a time.

14. According to you, what is the purpose of performance appraisal?

To improve organizational effectiveness.

To improve personal effectiveness.

Recommended for training and development needs.

Helps in pay adjustments/rewards.

15. What is the objective of performance appraisal system?

To identify training needs.



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To effect job rotation.

To determine promotional opportunity.

To evolve reward and punishment system.

16. Has your performance been enriched by any training you have undergone in your

field of working?

Yes

No

Can you state to which category your performance falls?

Excellent

Above average

Average

Fair

18. Will the high performers performance be motivated further if he/she is intimated

regarding their performance?

Yes

No

19. How do you appreciate the current appraisal system?

Opportunities to perform better

Task setting will induce people in better way

It provides a clear communication of employees expectation.

It increases job satisfaction.

20. Do you think the performance appraisal should undergo change as a matter of policy

from time to time?

Yes



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No

21. Do you think the performance appraisal system is a waste of time for the

organization, appraiser and appraise?

Yes

No

22. Does your boss provide you advice and assistance regarding your work?

Yes

No

Documents

Final Report 72