Performance Appraisal Synopsis

PERFORMANCE APPRAISAL SYSTEM


INTRODUCTION TO HRM:

Human Resource Management is basically concerned with the people’s

dimension in the organization. Here, people are treated as assets to be use

for benefit of the organization. It refers to the set of programs, functions and

activities designed ad carried out in order to maximize both employees as

well as organizational effectiveness. HRM is the management of employees,

skills, knowledge, talent, aptitudes, creative abilities etc. Here employees are

treated as profit centers.

“Personnel Management is the planning, organization, and controlling of the

procurement, development, compensation, integration, maintenance and

separation of human resources to the end those individual, organizational

and social objectives is accomplished”.

Human resource is considered to be the most valuable assets in any

organization. It is the sum total of inherent abilities, acquired knowledge and

skills represented by the talents and attitudes of the employed persons who

comprise executives, supervisors, and the rank and file employees.

It may be noted here that Human Resource should be utilized to the

maximum possible extent in order to achieve individual and organization

goals.

Importance of HRM:

HRM has a significant role in today’s organization. It takes lead in

assisting management with the people’s component of organization.

It provides healthy work environment, it promotes teamwork in the

employees, and provides maximum opportunities for personnel development.

Human resource covers the following items:

1. Determining the competence need of personnel performing work affecting

product quality.


2. Identification of training needs of all personnel involved in production, testing

distribution and marketing belonging to different cadres of the organization

and relevant documentation.

3. Heads of Department / Functional in-charge shall ensure that personnel with

the respective department performing work affecting product quality shell be

competent on the basis of appropriate education, training, skill and

experience and provide necessary human resource.

4. The Heads of Department shell asses the competence of personnel before

assigning a specific job to persons.

5. If required, the Heads of Department shall provide training or other actions

and evaluate the effectiveness of actions taken.

6. The Heads of Department shall ensure that the personnel are aware of the

importance of the assigned work to them and its contribution to the quality

objectives.

7. Manager-HRD shall maintain appropriate records of education, training, skills and

experience of personnel.

INTRODUCTION TO PERFORMANCE APPRAISAL:

Once the employee has been selected, trained and motivated he is then

apprised of his performance. Performance appraisal is the steps where the

management finds out how effective it has been top communicated with the

employee and rectify them.

Employee appraisal techniques are said to have been used for the first time

in the First World War when at the instance of Waller dill Scot the U.S army

adopted man-to-man rating system for evaluating military personnel.

During the 1920-30 periods relational wage structures for hourly paid workers

were adopted in industrial units under this system the policy of giving grade

wise increments on the basis of merit were accepted. These early employee

plans were called merit rating program which continued up to the fifties

however attention began to be devoted to the performance appraisal of the

technical professional and managerial personnel.


DEFINITION:

The term performance appraisal has defined by various authors, of these the

widely accepted definitions are as follows:

EDWIN B.FLIPPO defines performance appraisal as “A systematic,

periodic and as far as humanly possible an impartial rating of an

employee’s excellence in matters pertaining to his present job and his

potentialities for a better job.”

DALE S.BEACH defines performance appraisal, as “It is a systematic

evaluation of the individual with respect to his performance on the job

and his potential for development”.

According to M.W.CUMMINGS “performance appraisal or merit rating

attempts to recognize and reward the personal abilities that an individual

brings to the job, measured by the extent to which his output or quality of his

work exceed the minimum that even reasonably be expected for his basic

rate of pay.

So it can be said that performance appraisal is the process of evaluating the

employee’s performance on the job in terms of requirements of the job

APPRAISAL PROCESS: STEP 1: Establishment of performance standards

STEP 2: Communications of these expectations

STEP 3: Measurement of performance

STEP 4: Comparison of actual performance with standards

STEP 5: Discussion of the appraisal with the employee

STEP 6: Initiation of corrective action when necessary

Sub-ordinate and then have the subordinate accept the appraisal in

constructive manner; appraising performances touches on one of the

PERFORMANCE APPRAISAL SYSTEMmost emotionally changed activities the assessment of another

individual’s contribution and ability. The impression that subordinates

receive about their assessment has a strong input on their self-esteem

and very important on considerably less difficult for the manager

and the subordinates than conveying the bad news that performance

has been below expectations . In this context, the discussions of the

appraisal can have negatives as well positives motivational

consequences, it provides a clear understanding to the superior about

this subordinates contribution &the capability or potentially to

contribute. It serves as a basis for improving the quality for

performance of the executives in their present work. It helps to identify

the strength to overcome weakness. Enables to locate the problems which

may stand on the way of performance so that corrective action can

be taken to improve the performance. Enables the concerned executive

to know, where he stands and to know his worth. Provides the basis

for the superior to direct his subordinate to accomplish the

performance, while it enables the subordinates to understand their

superior’s expectations.

THE BASIC PERFORMANCE APPRAISAL PROCESS:

The basic appraisal process begins with the establishment of

performance standards i.e., objectives or goals which are the end points

or the specific targets-qualitative, to be achieved by the individuals

during the period of review. These standards are necessarily to be

evolved based on the job analysis and job description. As already

discussed; these goals should be clear and important to set

performance standards; rest the entire process may turn to be a futile

exercise. care, therefore, should be taken to set challenging yet

achievable goals keeping in view the overall corporate objectives and

specific needs of the each business segments of the organization.

Once the performance standards are established ,it is essential to

communicate these expectations to the concerned individuals, as the

PERFORMANCE APPRAISAL SYSTEMsubordinates should not be left their wisdom to guess as to what is

expected of them. While doing so, it should always be ensured that

the performance standards are properly communicated to the

subordinates with due clarity and the subordinate has understood them

with the purpose and intent with which such standards are set.

Therefore, feedback should be obtained invariably; or the very purpose

of setting of goals will be defeated.

Job rotation, which is an effective tool for enriching the

knowledge base of the employees and making them versatile in all

functional areas of the organizational activities, should be carried out

synchronizing with the setting of goals at the beginning of the year or

with the half yearly review of the performance.

Having set the performance standards and properly communicating

them to the employees in clear terms, the next step is to measure

the actual performance, it is necessary to acquire detailed information

through various sources like personal observation, statistical report, oral

report and written report. Although each of these sources of information has

its own limitations. The culmination effect of all these sources increases

the portable reliability of the information.

Once the actual performance is compared with the set goals and

derived the deviations if any, the next step is to discuss the appraisal

with the concerned employee. This task is very crucial and equally

sensitive to the appraiser, in as much as one of the most challenging

tasks facing today’s managers is to frankly present the actual

performance to the subordinate and then have the subordinate accept

the appraisal in its true spirit. The impression received by the

subordinates about their assessment has a strong impact on their self-

esteem and thus is very important for their subsequent performance. of

course, conveying news about the excellent performance is a welcome

feature than to convey the news about the low performance appraisal

document as privileged and confidential are thereby leading to

PERFORMANCE APPRAISAL SYSTEMavoidable gap between superior’s expectations and subordinate’s actual

performance as perceived by the superior. This sort of practice would

not serve the real purpose, which the system has been devised for.

Hence, it is imperative on the part of the management to create on

atmosphere of Openness and transparency in the system, which drives

the superior to judge the performance, based purely on the actual and

not only by subjective factors such as individuals likes and dislikes.

OBJECTIVES OF THE STUDY:

The following are the specific objectives behind taking up of the study in this

organization:

To study and analyze the performance appraisal method prevailing in the

organization.

To study the effectiveness of the performance appraisal methods used in

Organization

To know how best these methods help the organization in achieving the

goals.

To suggest if any, to enhance the performance appraisal methods in

Organization.


SCOPE OF THE STUDY:

The study enables me to understand the practical way of implementing the

performance appraisal system. This study helps the organization to identify

the areas to improve their performance appraisal system in tune with the

employee requirements. The present study makes a comparison of the old

performance appraisal with the new performance system and how the new

performance system is a best fit for the present industry trends. The study

covers the employees who are in the arena of the new performance appraisal

system. The departments included such as personnel, administration,

finance, nursing and other associated departments of global hospitals.


IMPORTANCE:

Performance appraisal has been considered as the most important and

significant tool for the information it provides is highly useful in making

decisions regarding personal aspects such as promotions and merit

increases. Performance measures also link information gathering and

decision making process, which provide a basis for judging the effectiveness

of the personnel sub-divisions such as recruiting, selection, training and

compensation. Accurate information plays an important role in the

organization as a whole. They help pinpoint weak areas in the primary areas.

It is easy for managers to see which employ needs training or counseling

because jobs are grouped by categories. These performance data is available

management can maintain consistent promotion and compensation policies

throughout the system.

Below are given reasons why the experts think performance appraisal is

important:

1. They provide systematic judgments to back up the salary increases,

transfers, demotions or terminations.

2. There are means of telling a subordinate how he is doing and

suggesting needed changes in his behavior, attitude, skills or job

knowledge. They let him know “where he stands” with the boss.

PERFORMANCE APPRAISAL SYSTEM3. The superior uses them as a base line for catching and counseling the

individual.

According to Cummins the objective of performance appraisal is to

improve the efficiency of the enterprise by attempting to mobilize the best

possible efforts from individuals employed in it. Such appraisal has four

objectives including salary reviews, the developments and training of

individuals, planning job rotation and promotions.

On the basis of merit rating or appraisal procedures of various

companies in India, the main objectives of performance appraisal are:

1. To enable an organization to maintain inventory of the number and quality of

all managers and to identify and meet their training needs and Aspiration.

2. To determine increments and to provide a reliable index for promotions and

transfer to greater responsibility.

3. To maintain individual and group development by informing the employees of

their performance standard.

4. To suggest ways of improving employee’s performance when he is not found

to be up to the mark.


LIMITATIONS:

Accuracy of the report is completely dependent on the employee’s

respondents.

The study is limited to only Hyderabad branch.

An in depth study couldn’t be conducted because of the limited time

period.


COMPANY PROFILE

Zestwings group started with an objective to discover innovation in

addressing the technological needs. Our first innovation ZestU made us

close to many undiscovered horizons in the field of information technology.

Our product ZestU is a sms innovation started in the view of serving the

growing popularity of the mobile publicity. With our unbending quality of

service, vivacious marketing strategies supported by sheer technical brass

we could, in no time acquired a larger market share within Andhra

Pradesh. Presently we proudly serve sms needs of more than one thousand

corporate and many more individuals across the country.

We started adding creative brains to our technical ground and diversified our

presence into web development & maintenance, ERP solutions, custom

application rendering and API management.

At zestwings we give every opportunity for nurturing innovation. We cultivate

passion for excellence and always strive for the best possible outcome.

PERFORMANCE APPRAISAL SYSTEMWe cross our Hearts saying:

Live your Idea. Endeavor is ours.

Rationale - Why we are here:

We endeavor to technovate the process of conducting regular

business & profession. We aspire to add unique touches of

technology and make our clients’ job much easier than ever.

Vision - Our anthem of Motivation:

Zestwings wishes...

Let our Thoughts go Blue...

Let our Aims be at Great heights...

Let our Brains keep Innovating...

Let our Creativity show Difference...

& Let our Passion be Unending...

Strengths and core Competencies:

At zestwings we anticipate the technological needs of organizations of every

scale and individuals as well. We are proficient in latest web technologies and

our core skills can be listed under design, web application development, API

development and integration, Dynamic websites, PHP, JavaScript, Ajax, .NET.

We contemplate our technical expertise and creativity in creating exquisite

applications for our clients. We deliver spotless products while maintaining

the industry standards. We encourage feedback from our end - product

clients for further improvisations in the product; our support team is at service

to the clients always.

Verticalisation of IT services is a definitive emerging trend and users are

demanding services tailored to their needs. Mature IT customers are

PERFORMANCE APPRAISAL SYSTEMtoday looking for total solutions that can solve their business challenges

rather than at IT hardware, software, and services as discrete elements. At

zestwings we offer to develop new or customize existing offerings to address

the specific needs of each vertical / market segment. Such an approach,

based on solution-orientation, is enables zestwings team to offer

sustainable value to customers.

Future Projection:

There was a strong perception among a majority of the CIOs that domestic

customers were not a focus area for IT service providers and that the IT

service providers rarely offer Indian customers the kind of commitment and

expertise that they provide their large (and necessarily more lucrative)

global customers. Zestwings strongly believes in the potential of domestic

market which forms the main target for the technological innovations

offered by us. While adding value its regular services in existing market

zestwings is looking to venture into new verticals as well. Our team is putting

its efforts

to introduce propitious and economical products in the domestic market. We

would like

to represent ourselves in the frontlines of technology market in and from

India in near future.

Services

The below listed are the services we have been offering so far. We are in a

process to ascent the zenith in these fields while advancing our presence in

various other

services.

Web Solutions:

End-to-end website development and maintenance solutions blended

with logo design, database integration, API integration and hosting

solutions. We provide these services on PHP, SQL, .NET platforms.

PERFORMANCE APPRAISAL SYSTEMApplication Development:

We deliver value to our customers by building web applications and

integrating databases for a variety of corporate clients, using the .NET

and PHP platforms. We are as well proficient in developing custom

application as per the customer’s needs.

Bulk SMS Solutions:

We are one of the leading bulk SMS aggregators across the country

serving more than one thousand Corporates. We support a long chain of

SMS resellers apart from direct clients through our SMS gateway.

METHODOLOGY

Data is collected in the form of survey method with the help of questionnaire.

Taking the sample size as 100 employees.

Sample technique: convenience sampling.

Questionnaire: open ended and closed ended questions.

PERFORMANCE APPRAISAL SYSTEM SAMPLE SIZE:

The well-structured questionnaire with a sample size of 100

employees.

SAMPLE UNIT:

The sample unit i.e., total employees in the organization were 600 of

which was taken as the sample size. So that it would confine to 40% of the

total sample unit.

SAMPLE METHOD:

The primary data was collected through the opinions of the employees

and the questionnaire method and the findings are made by the percentage

method. The research was conducted through various statistic tools and

techniques.

PERIOD OF THE STUDY:

This study was done within 45 days of period.

FIELD WORK:

This study an indication about the accuracy with which the investigation was

done.

FRAME WORK OF STUDY: Percentage method has been used to

analyses the collected data based on the convinces of the available

sample the percentage has been evaluated.

SOURCES OF DATA

PRIMARY DATA:

Data collected from employees through questionnaires, Interviews and

discussions with staff with open ended and close ended questions.

PERFORMANCE APPRAISAL SYSTEM SECONDARY DATA:

The data include information obtains from the other external sources like

magazines, other publications and internet, annual reports, circulars,

journals, information brochures and other literature of the company

QUESTIONNAIRE

1) Are you aware of the New Performance Appraisal System in your Organization.

A) Agree B) Partly agree C) Partly disagree D) Disagree

PERFORMANCE APPRAISAL SYSTEM2) Are you clear about the policies, procedures involved in the New Appraisal System.


3) The New Performance Appraisal system is Good but depends on how it is implemented.


4) The New Performance Appraisal System identifies even the small factors of performance which were not included in the previous format.


5) The New Performance Appraisal system is helps in identifying our performance and to analyze our work effectively.


6) The New Performance Appraisal system is definitely an improvement over the previous systems in terms of co-ordination from the supervisor for facilitation of work.


7) The performance appraisal system is not desirable for the company.


8) The new appraisal system offers an opportunity for you to discover your strength and weakness.


PERFORMANCE APPRAISAL SYSTEM9) What Problems did you experience during self appraisal?

Found self appraisal easy or had no problems.


10) Is the New Performance Appraisal System Motivates.

To improve your performance


11) The appraiser is the right person to appraise your performance.


12) The new appraisal system provides for a frank discussion between the

appraiser and the appraise


13) The new method is giving regular feedback about their potential for

higher level of jobs.


14) This system is identifying training & development systems.


15) The organization has got effective communication for execution of the

New Performance Appraisal.



BIBLIOGRAPHY

BOOKS:

TEXR BOOK AUTHOR NAME PUBLISHER YEAR

APPRAISING AND

DEVELOPING

MANAGERIAL

T.V.RAO EXCEL 1998

PERFORMANCE APPRAISAL SYSTEMPERFORMANCE

HUMAN

RESOURCE AND

PERSONNEL

MANAGEMENT

K.ASWANTHAPPA TATA McGraw-Hill 1992

WEBSITES:

www.performanceappraisal.com

www.hrd.com

www.google.com

www.wikipedia.com

http://www.wikipedia.com/

http://www.google.com/

http://www.hrd.com/

http://www.performanceappraisal.com/

Documents

Performance Appraisal Synopsis