A PROJECT REPORT

ON

“PERFORMANCE APPRAISAL SYSTEM”

For The Partial Fulfillment of University Requirement for the Award of

BBM Degree of Mohan Lal Sukhadia University, Udaipur

Academic Session : 2013-2014

SUBMITTED TO: SUBMITTED BY :

MISS JYOTI JAIN PANKAJ WADHWANI

BHUPAL NOBLES’ POST GRADUATE COLLEGE, UDAIPUR

(Affiliated to MOHAN LAL SUKHADIYA UNIVERSITY, Udaipur)

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ACKNOWLEDGEMENT

“I could tell where the lamplight was by the trail he left behind him.”

-HARRY LAUDER

The profound effect of these words dawned on the during my summer training

at HRH. I feel immense pleasure in expressing my deep sense of gratitude to the

whole team of HR dept. at HRH for their professional guidance and encouragement.

My sincere thanks to Mr. Ajay Nagar (Manager HR) for his timely help, valuable

suggestions and for giving me an opportunity to work in this esteemed organization.

I am grateful to Mr. R.K. Paliwal (Deputy Manager HR) for his kind cooperation

and support throughout, the training period.

I owe immense gratitude to Mr. Dennis Thomas (Exe. HR) without their

forethoughts this project would not have been possible.

I also thankful to Miss Dimple Singh Gaur and Miss Jyoti Jain (Faculty, BBM

Dept., B.N. P.G. College) for their guidance and motivational support.

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PREFACE

Gone are the days when a person of new abilities could make in the world.

Today, every next opportunity is a challenge, every next person a competitor.

The horizons of today have expanded to such heights and widths, that for

establishing once identity, one requires a great deal of knowledge, smartness, tactics

and courage.

Today is the world of specialization, and I have opted for specialization in the

field of Human Resource. It is because HR, from being a supplementary tool for

business in the past has become an integral and important part of business world.

The GLORY AND SUCCESS of any business strongly requires HR as its initial identity.

Hence in the present scenario, a student is required to avail practical training

in his/ her field of specialization therefore for this purpose, I have selected, the topic

“Performance Appraisal System” through the case study of the unit “Historic Resort

Hotels Pvt. Ltd”.

Books don’t suffice the level of knowledge a student is required to posses. He/

she should have a previene absent the real happening of corporate sector.

The following project report is such an attempt to magnify my knowledge and to

sharpen the edges of my skills.

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DECLARATION

I PANKAJ WADHWANI S/o Mr. MANOHAR LAL WADHWANI Student of BBM 6th

Semester hereby declares that for the purpose of Training Project Report I have

conducted study on PERFORMANCE APPRAISAL SYSTEM of HRH GROUPS OF

HOTELS for the partial fulfillment of BBM degree. It is my original work.

Place:

PANKAJ WADHWANI

Date:

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CONTENTS

Company Profile

Vision and Mission

Units of HRH Group

o Shiv Niwas Palace,Udaipur

o Fateh Prakash Palace,Udaipur

o Gajner Palace,Bikaner

o The Aodhi Hotel,Kumbalgarh

o Shikarbadi Hotel,Udaipur

o Gorbandh Palace Hotel,Jaisalmer

o Fateh Bagh Hotel,Ranakpur

o Karni Bhawan Palace,Bikaner

o Garden Hotel,Udaipur

o Jagmandir Island Palace

Performance Appraisal System

Introduction Process flow chart Objectives Main Features Potential Benefits

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Performance Appraisal Process Purpose Performance Standards Performance Measurement Data Collection Methods Sources of Error in Performance Appraisal Employee Reaction

Research Study

Data Analysis

Findings and Conclusion

Bibliography

Annexure

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TITLE

Project report on the “Performance Appraisal System” of “HRH group of Hotels” in Udaipur.

OBJECTIVE

“The major objective of the study at HRH Group of Hotels was to get an insight of the Performance Appraisal process and other aspect of Human

Resource Management (HRM).”

1. To find out existing disciplinary action process.

2. To know about the “HRH Group of Hotels”.

3. To find out existing Performance Appraisal process.

4. To assess the attitude and views of Human Resource (HR) manager towards the Performance Appraisal process.

5. To analyze the view of Human Resource (HR) manager regarding the objective and other aspect of Human Resource (HR).

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SIGNIFICANCE

HRH group of Hotels is the only chain of heritage palace hotels & resorts in Rajasthan India. Now a days new Industries are coming up as a result increasing.

Competition all over it attracts employees through high salary and incentive. It also helped to gain an insight into the practical and other aspects of HR.

RESEARCH METHODOLOGY

Research type – Exploratory

Type of data used – Primary

Instrument – Schedule

Sampling unit – HR Department

Sample size – Normal

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SCOPE OF STUDY

The study was conducted to profile the company “HRH group of Hotels”. The data were collected from 18 November, 2013 to 3rd January, 2014 in Udaipur city.

LIMITATION OF STUDY

Since the results have been drawn on the basis of information provided by respondents, response might creep in.

Researcher is not an expert in the field of research, error in analysis and interpretation might have occurred.

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COMPANY PROFILE

HRH group of is the only chain of heritage palace hotels & resorts in Rajasthan &

India. It is headquarter in Udaipur.

Udaipur, the city of dreams is perhaps the most romantic city in Rajasthan. A city

without rival in the country, it is not known for brutal forts but for exquisitely

decorated palaces, gardens & lakes. Palaces on lakeshores & on islands surrounded

by emerald & turquoise water. Encircled by the Aravelli Mountains, the lakes & the

altitude give Udaipur an extremely agreeable climate. The sunset & sunrise are from a

dream world.

This wonderful city was born out of the necessity of the ruling clan for the peace,

calm & security after the various Mughal invasions on their previous capital Chittor.

Then Maharana, Udai Singh ji, after the third siege of his capital Chittor in 1568-69,

looking for an agreeable & a safe palace to build his capital, came across the lake

Pichola. With the blessings of a holy sage of the region, built his palace on the

banks of this lake. To this day, in a shrine in the heart of the city palace, a flame

burns in gratitude to the ascetic.

The HRH group of Hotels invites the tourist to visit the home of the Rajput warrior

& enjoy the luxury of the converted palaces, forts & residences, which form some of

the properties in this exclusive chain.

Presently with properties of Udaipur, Kumbhalgarh, Jodhpur, Gajner, Bikaner,

Jaisalmer, Ramgarh & Ranakpur for HRH sky is the limit.

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Originally inherited palace, were converted into hotels due to the Sheer vision of

CMD. The HRH is now a leading chain of hotels in Rajasthan & aspires to expand

further.

The basic set up is unit wise decentralization with a central reservations department,

situated at the corporate office, city palace Udaipur. The units run independently with

the front office dep’t, F&B productions, F&B service, housekeeping , Accounts,

personnel & stores. The central stores are located at Udaipur. The head office of sales

& marketing is at Jaipur & the branch offices are at Udaipur, Ahmadabad Delhi,

Mumbai, and Ajmer & Bikaner. The HRH group is preserving royal palaces & resorts

across Rajasthan & has developed an authentic heritage circuit in the Indian state.

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Features of HRH

Well-disciplined employees.

Healthy competitions among all the branches of HRH.

Sports and cultural evenings for employees.

Excellence hospitality.

People are highly co-operative and communicative.

People work with team spirit.

Rewards and punishments are considered part of game.

Every new day is learning experience for people over there.

Nepotism and favoritism does not exist.

Positive approach.

Hierarchy is not a hurdle in the personal relationships.

People work on the principle of “equality and justice” e.g. food is common for each

level employee (whether junior or senior).

Friendly atmosphere for new entrants.

Workers suggestions are welcomed.

HRH meets are organized on a continual basis.

Training program is conducted.

Workers problems are given a hearing and they are tried to be resolved.

Consumer satisfaction is the motto of the organization.

Supportive to the employees.

Event management is given importance.

Feedback.

Orientation and induction.

Job rotation.

Get together.

Town halls (monthly).

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Corporate Philosophy Of HRH Group

Preserving the royal heritage, culture and traditions of India and presenting it

meaningfully to the guest in the 21st century.

Become tree leaders in heritage hospitality, offering world-class facilities and unique

holiday opportunities for guest from all over the world.

“Atithi devo bhavo”. Treating the guests as if they God they inculcating a truly

Indian sense of personalized service towards guests within the organization.

Building an ethical employee-friendly organization that can strive towards making this

vision a reality.

Initiating environment-Protection programs and development plants to positively impact

the quality of life in the present and for future generations.

Marketing Concept of HRH

The marketing concept of HRH ltd. is to optimize capacity utilization by delivering

desired customer satisfaction more effectively and efficiently. The company intends to

have a presence in all the places of significant interest in Rajasthan within the near future

and then to expand beyond.

HRH analyzed the market and worked out a very distinct marketing strategy to

achieve organization goal. HRH have carefully segmented the market and their emphasis

is :-

To target and develop up market in bound tourist which would be fitting

clientele for the types of product HRH to offer.

Concentrating on free individual travelers and direct booking. Contracted rates to

approved travel agents for group travel.

Develop corporate conferences.

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Develop banquets.

Develop special events.

Develop festival related tourism.

Develop leisure related tourism.

Develop historical and cultural tourism.

HRH firmly believes that the only way to retain or maintain ancient forts,

palaces, havelies, etc. The philosophy of HRH ltd has been to create a conducive

environment to encourage ethic and cultural tourism where a tourist would get a

complete experience of the glorious past and rich heritage of the country. To

accomplish this our company’s objective have been to develop existing heritage

properties and to acquire unique properties with heritage values and to integrate our

business thereby widening the scope and the base of various activities and facilities

which would give a holistic experience to the tourist.

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About Hotels of HRH

For the hotels of HRH we can say, “Experience the original in the adobe of kings”.

HRH have nine hotels in Rajasthan. They are as follows:

UDAIPUR:

Shiv Niwas Palace.

Fateh Prakash Palace.

Shikarbadi Hotel.

Garden Hotel.

The Aodhi, Kumbalgarh.

Fateh Bag, Ranakpur.

BIKANER:

Gajner Palace.

Karni Bhawan Palace.

JAISALMER:

Gorbandh Palace.

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Besides hotels HRH have many other properties also. Some of them are as listed below: -

Ramgarh Resort and polo complex, Jaipur

Regal experience: -

Manak Chowk.

Darbar Hall.

Janana Mahal

The Vintage and classic car collection.

The Crystal Gallery.

Solar boats, Horse safari.

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HRH Group Of Hotels

The HRH Group of Hotels, Udaipur is the only chain of grand heritage hotels, palace

hotels, luxury hotels and historical resorts in Rajasthan, India. It is headquartered in Udaipur

(city of lakes), an historic city founded in 1559 on the banks of Lake Pichola. The HRH

Group of hotels is committed to preserve royal palaces and historic resorts across Royal

Rajasthan and has developed an authentic heritage circuit in this Indian state.

The HRH Group of hotels, Udaipur (Rajasthan) today offers authentic Indian grand heritage

palace hotels and historical venues for memorable “Destination Regal Wedding', grand

palace theme wedding in India, honeymoon packages, special holiday offers and other

events conferences, theme shows, banquets.

HRH Hotels Resorts and Palaces are the finest grand heritage and luxury hotels in

Rajasthan, India. HRH Hotels are the premier hospitality providers in Rajasthan India,

gracing important rajasthan towns and cities. HRH Hotels Resorts and Palaces comprises 9

hotels, resorts and authentic palace hotels in 5 locations across Rajasthan India with hotels

and resorts in Udaipur, Gajner, Bikaner, Kumbalgarh, Ranakpuur, Jaisalmer in the Royal

Rajasthan, India.

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Grand Heritage Palace Hotels

Grand holiday Palace hotels and retreats in enchanting settings or elegant business and

leisure hotels in major royal Rajasthan cities. HRH Hotels & Resorts, Rajasthan are the

epitome of luxury and hospitality. Exquisite interiors, impeccable service, fine cuisine and

contemporary technology come together to create an experience that is both grand and

intimate. Grand Heritage Hotel are Palace Hotels which offer luxurious accommodation and

an experience of a lifetime as all the suites and rooms have been restored to their pristine

glory.

Shiv Niwas Palace, Udaipur

A crescent adorning the southern end of the Palace complex, the Shiv Niwas Palace Hotel

Udaipur was originally Maharana Fateh Singhji's residence. The rooms around this awe-

inspiring courtyard were used as a place for entertaining personal guests. Shiv Niwas Palace

Hotel Udaipur was the vision of the His Late Highness Maharana Bhagwat Singhji Mewar,

which led to its conversion into a luxury hotel. Shiv Niwas Palace Hotel Udaipur is now

categorised as a Grand Heritage Palace as it has been restored to its original pristine glory.

Fateh Prakash Palace, Udaipur

The imposing lakeside Fateh Prakash Palace Hotel Udaipur recapitulates royal traditions

and lifestyles in its antique furniture, original paintings and opulent interiors. Its serene

premises and picturesque views of Lake Pichola, Jagmandir Island Palace, Lake Palace and

the Sajjangarh Fort, promise a soothing break from the rigors of city life. The magnificent

Durbar Hall, the exclusive Gallery Restaurant and the dazzling Crystal Gallery complete the

royal repertoire of unparalleled experiences at Fateh Prakash Palace Hotel Udaipur.

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Gajner Palace, Gajner

Gajner Palace, an incomparable jewel in the Thar Desert is built on the embankment of a

lake. Built by H.H. Maharaja Sir Ganga Singhji of Bikaner, this Grand Heritage property is

spread over 6000 acres. The former Maharajas and visiting British dignitaries during the

days of the Raj used Gajner Palace as a hunting resort.

Royal Retreat Rajasthan

The hotels and services of the HRH Group of Hotels, the premier chain of Palace Hotels and

Resorts in Rajasthan are offered under two distinct brands –Grand Heritage Hotels & Royal

Retreat culminating in a Regal Experience Grand Heritage Hotels are Palace Hotels which

offer luxurious accommodation and an experience of a lifetime as all the suites and rooms

have been restored to their pristine glory. Royal Retreats are Hunting lodges and Desert

Retreats that offer a complete getaway with modern comforts blended into the natural and

traditional ambience.

The Aodhi Hotel, Kumbhalgarh

Kumbhalgarh, an imposing fort set amid massive ramparts and surrounded by hundreds of

temples, is the creation of one of Mewar's legendary heroes, Rana Kumbha. The Aodhi is

the best location from where to explore the fort. The structure of this Royal Retreat has been

designed to match the landscape of the terrain. The Aodhi has a picturesque hilly and lush

setting, not far from the citadel. The resort abounds in natural beauty and promises a

delightful sojourn from day work tribulations.

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Shikarbadi Hotel, Udaipur

Originally a hunting lodge frequented by the royalty of Mewar, this Royal Retreat, is set

amidst the serene, wooded Aravalis. Though only 15 minutes from the City Palace, this

getaway is so peaceful that leaving the clamor of city life behind becomes easiest thing to

do. For wildlife and adventure buffs, there is a licensed Deer Park and also a provision for

horseback excursions into the sanctuary and the Aravali hills where one can spot deer,

antelope, wild boar, monkey and the nilgai.

Gorbandh Palace Hotel, Jaisalmer

The very name of this hotel is inspired by the influence of the desert. Gorbandh is a harness,

which the desert women decorate for their husband's camel with any material they can find:

cowry shells, beads, sequins, cultured threads and even buttons. The architecture of this

Royal Retreat has been inspired by traditional Indian homes. There is a central courtyard

with a swimming pool which is surrounded by luxuriously appointed rooms.

Fateh Bagh Hotel, Ranakpur

Fateh bagh is the latest addition to the HRH Group of Hotels. This Royal Retreat is located

in Ranakpur, the famous Jain temple town. Fateh Bagh is recreating a forgotten chapter of

Rajathan's history. It is probably India's first attempt at transplanting a palace, faithfully

preserving the richness of the Raj architecture for 21st century visitors. It was in 1802 AD

that Rawla Koshilav flourished as a palace on the foothills of Aravallis near Jodhpur.

Karni Bhawan Palace Hotel, Bikaner

Karni Bhawan Palace, an Art Deco Building built by Maharaja Dr. Karni Singh Ji of Bikaner

as his private residence is now a Royal Retreat surrounded by sprawling lawns located

within the desert city of Bikaner. Situated in the heart of the residential area, the hotel is near

to the major tourist attractions of the city like the Junagarh fort, Lalgarh Palace, the camel

breeding farm, the temples and the bazaars.

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Garden Hotel, Udaipur

Away from the City Palace Complex is the serene Garden Hotel:a circular building that has

been a distinguished landmark for the city of Udaipur for it houses the renowned Vintage &

Classic Car Collection. Garden Hotel, a Royal Retreat of the HRH Group of Hotels, is

located across the edge of Gulab Bagh; a tree lined landscaped garden spread across acres

of greenery.

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Regal Events

Regal Weddings, banquets, receptions, fashion shows, music concerts, classical

performances, exhibitions, product launches, film shoots and conferences are being

regularly organized at the unique venues of the HRH Group of Hotels

Regal Weddings are organized at Grand Heritage Palaces of the HRH Group as part of the

ongoing Regal Events. The historic venues in Udaipur and Gajner along with specialized

services and facilities provide an authentic backdrop for a truly Regal Wedding.

We offer corporate in India and oversees the matchless opportunity of hosting conferences

in a unique heritage environment. Grand Heritage Palaces and Royal Retreats of the HRH

Group have developed modern facilities and amenities for large and small conferences.

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Our Vision

The genesis of the HRH Group of Hotels is a tribute to the vision of Bhagwat Singh Mewar,

the 75th Maharana of Udaipur.

In post-Independent India of the 1950s, Maharana Bhagwat Singh was the first Indian royal

to have realized the potential of tourism to preserve the rich heritage of Rajasthan and

Udaipur. He took a pioneering decision to convert the Jag Niwas into the super deluxe Lake

Palace Hotel.

The grand opening of the Lake Palace Hotel in 1963 marked a new era in heritage tourism in

India. It was hailed all over the world as probably the finest luxury resort, distinguished by

uniquely Indian hospitality and service standards.

The 1980's witnessed a period of further growth and consolidation. The HRH Group of

Hotels assumed its present corporate form under the chairmanship of Shri Arvind Singh

Mewar, the 76th Maharana of Udaipur, and a professional hotelier. The HRH Group of

Hotels is today one of the finest chains of heritage hotels across Rajasthan, with each

unique heritage property being meticulously preserved, restored and developed.

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Our Mission

Preserving the royal heritage, culture and traditions of India and presenting it meaningfully to

guests in the 21st century

Becoming the leaders in heritage hospitality, offering world-class facilities and unique holiday

opportunities for guests from all over the world

Atithi devo bhava: Treating the guests as if they were God themselves - inculcating a truly

Indian sense of personalized service towards guests within the organization

Building an ethical and employee-friendly organization that can strive towards making this

vision a reality. Initiating environment-protection programmes and developmental plans to

positively impact the quality of life in the present and for future generations.

The House of Mewar has lived up to four perennial values:

1. Self respect

2. Self reliance

3. Respect for mankind

4. Service to community.

In order to sustain these values in ever changing times, the House of Mewar invested its

skills, time, and finances in the living heritage of art, architecture and culture. Now, it invites

you to become a joint custodian. It invites you to subscribe to the highest human values your

heart can subscribe to. This belief system drives all activities of the House of Mewar,

whether for profit (eg: The HRH Group of Hotels) or not- for-profit (eg several charitable,

cultural and educational trusts, the more salient being Maharana of Mewar Charitable

Foundation.)

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PERFORMANCE APPRAISAL

SYSTEM

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Introduction

Performance appraisal is the process of obtaining, analyzing and recording information about the

relative worth of an employee. The focus of the performance appraisal is measuring and improving

the actual performance of the employee and also the future potential of the employee. Its aim is to

measure what an employee does

According to Flippo, A prominent personality in the field of Human resources, “performance

appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the

matters pertaining to his present job and his potential for a better job." Performance appraisal is a

systematic way of reviewing and assessing the performance of an employee during a given period of

time and planning for his future.

Employee performance Management includes:

• Planning work and setting expectations,

• Continually monitoring performance,

• Developing the capacity to perform,

• Periodically rating performance in a summary fashion, and

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• Rewarding good performance

Performance management is the systematic process by which an organization involves its

employees, as individuals and members of a group, in improving organizational effectiveness in the

accomplishment of organization mission and goals.’

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to

analyze his achievements and evaluate his contribution towards the achievements of the overall

organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of personnel

management and reflects the management’s interest in the progress of the employee.

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Performance appraisal is a method of evaluating the behavior of employees in the work place

normally including both the quantitative and qualitative aspects of job performance. Performance

refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates

how ell an individual is fulfilling the job demands.

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Objectives of Performance Appraisal

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance

• Self assessment by employee

• Understanding strength and weakness.

• Identifying training and development needs.

• Identifying potential.

• Better understanding between appraised and appraiser.

• Recognizing achievements.

• Goal setting GOAL.

• Improved organizational performance.

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.

• To help the management in exercising organizational control.

• Helps to strengthen the relationship and communication between superior – subordinates

and management – employees.

• To diagnose the strengths and weaknesses of the individuals so as to identify the training

and development needs of the future.

• To provide feedback to the employees regarding their past performance.

• Provide information to assist in the other personal decisions in the organization.

• Provide clarity of the expectations and responsibilities of the functions to be performed by

the employees.

• To judge the effectiveness of the other human resource functions of the organization such as

recruitment, selection, training and development.

• To reduce the grievances of the employees.

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Main features

A performance appraisal is a systematic and periodic process that assesses an individual employee’s

job performance and productivity in relation to certain pre-established criteria and organizational

objectives. Other aspects of individual employees are considered as well, such as organizational

citizenship behavior, accomplishments, potential for future improvement, strengths and

weaknesses, etc.

To collect PA data, there are three main methods: objective production, personnel, and judgmental

evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation

methods. Historically, PA has been conducted annually (long-cycle appraisals); however, many

companies are moving towards shorter cycles (every six months, every quarter), and some have

been moving into short-cycle (weekly, bi-weekly) PA. The interview could function as

“providing feedback to employees, counseling and developing employees, and conveying and

discussing compensation, job status, or disciplinary decisions”. PA is often included in performance

management systems. PA helps the subordinate answer two key questions: first, "What are your

expectations of me?" second, "How am I doing to meet your expectations?"

Performance management systems are employed “to manage and align" all of an organization's

resources in order to achieve highest possible performance. “How performance is managed in an

organization determines to a large extent the success or failure of the organization. Therefore,

improving PA for everyone should be among the highest priorities of contemporary” organizations.

Some applications of PA are compensation, performance improvement, promotions, termination,

test validation, and more. While there are many potential benefits of PA, there are also some

potential drawbacks. For example, PA can help facilitate management-employee communication;

however, PA may result in legal issues if not executed appropriately, as many employees tend to be

unsatisfied with the PA process. PAs created in and determined as useful in the United States are not

necessarily able to be transferable cross-culturally.

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Potential benefits

There are a number of potential benefits of organizational performance management conducting

formal performance appraisals (PAs). There has been a general consensus in the belief that PAs lead

to positive implications of organizations. Furthermore, PAs can benefit an organization’s

effectiveness. One way is PAs can often lead to giving individual workers feedback about their job

performance. From this may spawn several potential benefits such as the individual workers

becoming more productive.

Other potential benefits include:

Facilitation of communication: communication in organizations is considered an essential

function of worker motivation. It has been proposed that feedback from PAs aid in

minimizing employees’ perceptions of uncertainty. Fundamentally, feedback and

management-employee communication can serve as a guide in job performance.

Enhancement of employee focus through promoting trust: behaviors, thoughts, and/or

issues may distract employees from their work, and trust issues may be among these

distracting factors. Such factors that consume psychological energy can lower job

performance and cause workers to lose sight of organizational goals. Properly constructed

and utilized PAs have the ability to lower distracting factors and encourage trust within the

organization.

Goal setting and desired performance reinforcement: organizations find it efficient to match

individual worker’s goals and performance with organizational goals. PAs provide room for

discussion in the collaboration of these individual and organizational goals. Collaboration can

also be advantageous by resulting in employee acceptance and satisfaction of appraisal

results.

Performance improvement: well constructed PAs can be valuable tools for communication

with employees as pertaining to how their job performance stands with organizational

expectations. “At the organizational level, numerous studies have reported positive

relationships between human resource management (HRM) practices" and performance

improvement at both the individual and organizational levels.

Determination of training needs: “Employee training and development are crucial

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for PAs to truly be effective, post-appraisal opportunities for training and development in

problem areas, as determined by the appraisal, must be offered. PAs can especially be

instrumental for identifying training needs of new employees. Finally, PAs can help in the

establishment and supervision of employees’ career goals.

PROCESS OF PERFORMANCE APPRAISAL

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STEPS IN PERFORMANCE APPRAISAL SYSTEM

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ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which will be

used to as the base to compare the actual performance of the employees. This step requires setting

the criteria to judge the performance of the employees as successful or unsuccessful and the

degrees of their contribution to the organizational goals and objectives. The standards set should be

clear, easily understandable and in measurable terms. In case the performance of the employee

cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the

employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will

help them to understand their roles and to know what exactly is expected from them. The standards

should also be communicated to the appraisers or the evaluators and if required, the standards can

also be modified at this stage itself according to the relevant feedback from the employees or the

evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the performance appraisal process is measuring the actual performance of

the employees that is the work done by the employees during the specified period of time. It is a

continuous process which involves monitoring the performance throughout the year. This stage

requires the careful selection of the appropriate techniques of measurement, taking care that

personal bias does not affect the outcome of the process and providing assistance rather than

interfering in an employees work.

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COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The comparison

tells the deviations in the performance of the employees from the standards set. The result can

show the actual performance being more than the desired performance

or, the actual performance being less than the desired performance depicting a negative deviation in

the organizational performance. It includes recalling, evaluating and analysis of data related to the

employees’ performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-one basis.

The focus of this discussion is on communication and listening. The results, the problems and the

possible solutions are discussed with the aim of problem solving and reaching consensus. The

feedback should be given with a positive attitude as this can have an effect on the employees’ future

performance. The purpose of the meeting should be to solve the problems faced and motivate the

employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the

performance of the employees, take the required corrective actions, or the related HR decisions like

rewards, promotions, demotions, transfers etc.

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PURPOSE OF PERFORMANCE APPRAISAL

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-appraisal and

potential appraisal also form a part of the performance appraisal processes.

Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

There are four key elements in the appraisal system:

1. Set objectives - Decide what the Team Leader wants from the employees and agree these

objectives with them.

2. Manage performance - Give employees the tools, resources and training they need to

perform well.

3. Carry out the appraisal - monitor and assess the employees' performance, discuss those

assessments with them and agree on future objectives.

4. Provide rewards/remedies - Consider pay awards and/or promotion based on the appraisal

and decide how to tackle poor performance.

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Performance Standards

How does the Team Leader decide what's acceptable and what's unacceptable performance? The

answer to this question is the first step in establishing written standards. Performance expectations

are the basis for appraising employee performance. Written performance standards let the Team

Leader to compare the employee's performance with mutually understood expectations and

minimize ambiguity in providing feedback.

Having performance standards is not a new concept; standards exist whether or not they

are discussed or put in writing. When the Team Leader observes an employee's performance, he

usually makes a judgment about whether that performance is acceptable.

Standards identify a baseline for measuring performance. From performance standards, the Team

Leader can provide specific feedback describing the gap between expected and actual performance.

Guiding Principles

Effective performance standards: Serve as an objective basis for communicating about performance.

Increase job satisfaction because employees know when tasks are performed well.Inform new

employees of your expectations about job performance.

Key Responsibility Areas (KRA)

The Team Leaders in association with the Project Manager write performance standards for each key

area of responsibility on the employee's job description. The employee actively participates in its

development. Standards are usually established when an assignment is made, and they are reviewed

if the employee's job description is updated. The discussions of standards include the criteria for

achieving satisfactory performance and the proof of performance (methods the Team Leader will

use to gather information about work performance).

Characteristics of Performance Standards

Standards describe the conditions that must exist before the performance can be rated satisfactory.

A performance standard should: Be realistic, in other words, attainable by any qualified, competent,

and fully trained person who has the authority and resources to achieve the desired result Describe

the conditions that exist when performance meets expectations Be expressed in terms of quantity,

quality, time, cost, effect, manner of performance, or method of doing

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Be measurable, with specified method(s) of gathering performance data and measuring

performance against standards

Expressing Standards

The terms for expressing performance standards are outlined below:

Quantity: Specifies how much work must be completed within a certain period of time.

Quality: Describes how well the work must be accomplished. Specifies accuracy, precision,

appearance, or effectiveness.

Timeliness: Answers the questions, by when? , How soon? , Or within what period?

Effective Use of Resources: Used when performance can be assessed in terms of utilization of

resources: money saved, waste reduced.

Effects of Effort: Addresses the ultimate effect to be obtained; expands statements of effectiveness

by using phrases such as: so that, in order to, or as shown by.

Manner of Performance: Describes conditions in which an individual's personal behavior has an

effect on performance, e.g., assists other employees in the work unit in accomplishing assignments.

Method of Performing Assignments: Describes requirements; used when only the officially

prescribed policy, procedure, or rule for accomplishing the work is acceptable.

Performance Measurements

Since one of the characteristics of a performance standard is that it can be measured, the Team

Leader identifies how and where evidence about the employee's performance will be gathered.

Specifying the performance measurements when the responsibility is assigned will help the

employee keep track of his progress, as well as helping the Team Leader in the future performance

discussions.

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There are many effective ways to monitor and verify performance, the most common of Which are?

Direct observation Specific work results (tangible evidence that can be reviewed without the

Employee being present) Reports & records, such as attendance, safety, inventory, financial records,

etc. Commendations or constructive or critical comments received about the employee's work.

Observation and Feedback (One on One)

Once performance objectives and standards are established, the Team Leader observes the

employees' performance and provides feedback. The Team Leader has a responsibility to recognize

and reinforce strong performance by an employee, and identify and encourage improvement where

it is needed. The Team Leader provides informal feedback almost every day.

By observing and providing detailed feedback, the Team Leader plays a critical role in the employee's

continued success and motivation to meet performance expectations.

One On One Sessions

One on One is a method of strengthening communication between the Team Leader and the

employee. It helps to shape performance and increase the likelihood that the employee's results will

meet expectations. One on One session provide the Team Leader and the employee the opportunity

to discuss her progress toward meeting mutually established standards and goals. A One on One

session focuses on one or two aspects of performance, rather than the total review that takes place

in a performance evaluation.

Guiding Principles

Effective One on One can:

Strengthen communication between the Team Leader and the employee

Help the employee attain performance objectives

Increase employee motivation and commitment

Maintain and increase the employee's self-esteem

Provide support

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Key Elements of One on One

To make One on One sessions effective, the Team Leader keeps the following key elements of One

on One in mind while conducting such a session:

Observe the employee's work and solicit feedback from others. When performance is successful,

take the time to understand why. Advise the employee ahead of time on issues to be discussed.

Questions to Consider during One on One

To provide effective feedback the Team Leader must understand the elements of performance and

analyze marginal performance. These questions are kept in mind:-

How is the employee expected to perform? Does the employee understand these expectations? If

not, why not?

Does the employee know what successful results look like? How does the Team Leader know?

Does the employee know the performance is marginal? How does the Team Leader know?

Are there obstacles beyond the employee's control? Can the Team Leader Remove? them?

Has the employee ever performed this task satisfactorily? Is the employee willing and able to learn?

Does satisfactory performance result in excessive work being assigned?

Does unsatisfactory performance result in positive consequences such as an undesirable task being

reassigned?

During the One on One Session

When the Team Leader conducts a One on One session to provide positive feedback to the

employee, he keeps the following points in mind: Describe the positive performance result or work

habit using specific details. Ask the employee's opinion of the same product or behavior.

Ask the employee to identify elements that contributed to success (adequate time or resources,

support from management or other employees, the employee's talent and interest in the project).

Discuss ways in which the Team Leader and the employee can support continued Positive results.

Reinforce for the employee the value of the work and how it fits in with the goals of the work unit or

department. Show your appreciation of the positive results and your confidence that the employee

will continue to perform satisfactory. If appropriate, document your discussion for the employee's

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file. When the Team Leader conducts a One on One session to improve performance, he uses the

following format: Describe the issue or problem, referring to specific behaviors. Involve the

employee in the problem-solving process. Discuss causes of the problem. Identify and write down

possible solutions. Decide on specific actions to be taken by each of the Team Leader. Agree on a

follow-up date. Document key elements of the session.

Methods of collecting data

There are three main methods used to collect performance appraisal (PA) data: objective

production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly

used with a large variety of evaluation methods.

Objective production

The objective production method consists of direct, but limited, measures such as sales figures,

production numbers, the electronic performance monitoring of data entry workers, etc. The

measures used to appraise performance would depend on the job and its duties. Although these

measures deal with unambiguous criteria, they are usually incomplete because of criterion

contamination and criterion deficiency. Criterion contamination refers to the part of the actual

criteria that is unrelated to the conceptual criteria. In other words, the variability in performance can

be due to factors outside of the employee’s control. Criterion deficiency refers to the part of the

conceptual criteria that is not measured by the actual criteria. In other words, the quantity of

production does not necessarily indicate the quality of the products. Both types of criterion

inadequacies result in reduced validity of the measure. Regardless of the fact that objective

production data is not a complete reflection upon job performance, such data is relevant to job

performance.

Happy-productive worker hypothesis

The happy-productive worker hypothesis states that the happiest workers are the most productive

performers, and the most productive performers are the happiest workers. Yet, after decades of

research, the relationship between job satisfaction and job performance produces only a weak

positive correlation. Published in 2001 by Psychological Bulletin, a meta-analysis of 312 research

studies produced an uncorrected correlation of 0.18. This correlation is much weaker than what the

happy-productive worker hypothesis would predict.

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Personnel

The personnel method is the recording of withdrawal behaviors (i.e. absenteeism, accidents). Most

organizations consider unexcused absences to be indicators of poor job performance, even with all

other factors being equal. However, this is subject to criterion deficiency. The quantity of an

employee’s absences does not reflect how dedicated he/she may be to the job and its duties.

Especially for blue-collar jobs, accidents can often be a useful indicator of poor job performance, but

this is also subject to criterion contamination because situational factors also contribute to

accidents. Once again, both types of criterion inadequacies result in reduced validity of the

measure. Although excessive absenteeism and/or accidents often indicate poor job performance

rather than good performance, such personnel data is not a comprehensive reflection of an

employee’s performance.

Judgmental evaluation

Judgmental evaluation appears to be a collection of methods, and as such, could be considered a

methodology. A common approach to obtaining PAs is by means of raters. Because the raters are

human, some error will always be present in the data. The most common types of error are leniency

errors, central tendency errors, and errors resulting from the halo effect. Halo effect is characterized

by the tendency to rate a person who is exceptionally strong in one area higher than deserved in

other areas. It is the opposite of the Horns effect, where a person is rated as lower than deserved in

other areas due to an extreme deficiency in a single discipline. These errors arise predominantly

from social cognition and the theory in that how we judge and evaluate other individuals in various

contexts is associated with how we “acquire, process, and categorize information”.

An essential piece of this method is rater training. Rater training is the “process of educating raters

to make more accurate assessments of performance, typically achieved by reducing the frequency of

halo, leniency, and central-tendency errors”. Rater training also helps the raters “develop a common

frame of reference for evaluation” of individual performance. Many researchers and survey

respondents support the ambition of effectual rater training. However, it is noted that such training

is expensive, time consuming, and only truly functional for behavioral assessments.

Another piece to keep in mind is the effects of rater motivation on judgmental evaluations. It is not

uncommon for rating inflation to occur due to rater motivation (i.e. “organizationally induced

pressures that compel raters to evaluate rates positively”). Typically, raters are motivated to give

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higher ratings because of the lack of organizational sanction concerning accurate/inaccurate

appraisals, the rater's desire to guarantee promotions, salary increases, etc., the rater's inclination to

avoid negative reactions from subordinates, and the observation that higher ratings of the rates

reflect favorably upon the rater.

The main methods used in judgmental performance appraisal are:

Graphic Rating Scale: graphic rating scales (see scale (social sciences)) are the most

commonly used system in PA. On several different factors, subordinates are judged on 'how

much' of that factor or trait they possess. Typically, the raters use a 5- or 7-point scale;

however, there are as many as 20-point scales.

Employee-Comparison Methods: rather than subordinates being judged against pre-

established criteria, they are compared with one another. This method eliminates central

tendency and leniency errors but still allows for halo effect errors to occur. The rank-order

method has raters ranking subordinates from “best” to “worst”, but how truly good or bad

one is on a performance dimension would be unknown. The paired-comparison method

requires the rater to select the two "best" subordinates out of a group on each dimension

then rank individuals according to the number of times each subordinate was selected as

one of the "best". The forced-distribution method is good for large groups of rates. The

raters evaluate each subordinate on one or more dimensions and then place (or”force-fit”, if

you will) each subordinate in a 5 to 7 category normal distribution. The method of top-

grading can be applied to the forced distribution method. This method identifies the 10%

lowest performing subordinates, as according to the forced distribution, and dismisses them

leaving the 90% higher performing subordinates.

Behavioral Checklists and Scales: behaviors are more definite than traits. The critical

incidents method (or critical incident technique) concerns “specific behaviors indicative of

good or bad job performance”. Supervisors record behaviors of what they judge to be job

performance relevant, and they keep a running tally of good and bad behaviors. A discussion

on performance may then follow. The Behaviorally Anchored Rating Scales (BARS) combine

the critical incidents method with rating scale methods by rating performance on a scale but

with the scale points being anchored by behavioral incidents. Note that BARS are job

specific. In the Behavioral Observation Scale (BOS) approach to performance appraisal,

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employees are also evaluated in the terms of critical incidents. In that respect, it is similar to

BARS. However, the BOS appraisal rate subordinates on the frequency of the critical

incidents as they are observed to occur over a given period. The ratings are assigned on a

five-point scale. The behavioral incidents for the rating scale are developed in the same way

as for BARS through identification by supervisors or other subject matter experts.

Similarly, BOS techniques meet equal employment opportunity because they are related to

actual behavior required for successful job performance.

Sources of Error in Performance Appraisal:

1. Rating Biases: It is a subjective measure of rating performance which is not verifiable by

others and has the opportunity for bias. There rater biases include: a) the halo effect b) the error of

central tendency c) the leniency and strictness biases d) personal prejudice and e) the recency

effect.

3. Halo Effect : It is the tendency of the raters to depend excessively on the rating of

one trait or behaviourial consideration in rating all other traits or behavioural considerations. One

way of minimizing the halo effect is appraising all employees by one trait before going to rate them

on the basis of another trait.

4. The Error of Central Tendency : Some raters follow play safe policy in rating by rating

all the employees around the middle point of the rating scale and they avoid rating the people at

both the extremes scale. They follow play safe policy because of answerability to the management

or lack of knowledge about the job and person he is rating or has least interest in the job.

4. The Leniency and Strictness: the leniency bias crops when some raters have a tendency to

be liberal in their rating by assigning higher rates consistently. Such ratings do not serve any

purpose. Equally damaging is assigning consistently low rates.

5. Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at the

lower end, which may distort the rating purpose and affect the career of these employees.

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5. The Recency Effect : The raters generally remember the recent actions of the

employee at the time of rating them on the basis of these recent actions favorable

or unfavorable-rather than on the whole activities.

Employee reactions

Numerous researchers have reported that many employees are not satisfied with their performance

appraisal (PA) systems. Studies have shown that subjectivity as well as appraiser biases often a

problem perceived by as many as half of employees. Appraiser bias, however, appears to be

perceived as more of a problem in government and public sector organizations. Also, according to

some studies, employees wished to see changes in the PA system by making “the system more

objective, improving the feedback process, and increasing the frequency of review.” In light of

traditional PA operation defects, “organizations are now increasingly incorporating practices that

may improve the system. These changes are particularly concerned with areas such as elimination of

subjectivity and bias, training of appraisers, improvement of the feedback process and the

performance review discussion.”

According to a meta-analysis of 27 field studies, general employee participation in his/her own

appraisal process was positively correlated with employee reactions to the PA system. More

specifically, employee participation in the appraisal process was most strongly related to employee

satisfaction with the PA system. Concerning the reliability of employee reaction measures,

researchers have found employee reaction scales to be sound with few concerns through using a

confirmatory factor analysis that is representative of employee reaction scales.

Researchers suggest that the study of employees’ reactions to PA is important because of two main

reasons: employee reactions symbolize a criterion of interest to practitioners of PAs and employee

reactions have been associated through theory to determinants of appraisal acceptance and

success. Researchers translate these reasons into the context of the scientist-practitioner gap or the

“lack of alignment between research and practice.”

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RESEARCH STUDY

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Aim of the Research

To ascertain the effectiveness of Performance Appraisal methodology used by the Organization.

Objectives of the study

The following are the objectives of the study –

To develop my understanding of the subject.

Performance Appraisal System implemented in various Organizations varies according to the need

and suitability. Through my research, I have tried to study the kind of Appraisal used in the

Organization and the various pros and cons of this type of system.

To conduct a study on social behavior.

Social behavior is a very unpredictable aspect of human life but social research is an attempt to

acquire knowledge and to use the same for social development.

To enhance the welfare of employees.

The Appraisal system is conceived by the Management but mostly does not take into consideration

the opinion of the employees. This can lead to adverse problems in the Organization. Therefore by

this study I have attempted to put forth the opinion of the employee with respect to the

acceptability of the Performance Appraisal System.

To exercise social control and predict changes in behavior.

The ultimate object of my research is to make it possible to predict the behavior of individuals by

studying the factors that govern and guide them.

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Research Design

A research design is a type of blueprint prepared on various types of blueprints available

for the collection, measurement and analysis of data. A research design calls for developing the most

efficient plan of gathering the needed information. The design of a research study is based on the

purpose of the study. A research design is the specification of methods and procedures for acquiring

the information needed. It is the overall pattern or framework of the project that stipulates what

information is to be collected from which source and by what procedures.

Sampling

An integral component of a research design is the sampling plan. Specifically, it addresses three

questions Whom to survey (The Sample Unit) How many to Survey (The Sample Size) & How to

select them (The Sampling Procedure) Making a census study of the whole universe will be

impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is

only a portion of the total employee strength. According to Yule, a famous statistician, the object of

sampling is to get maximum information about the parent population with minimum effort.

Methods of Sampling

Probability Sampling is also known as random sampling or chance sampling. Under this sampling

design every individual in the organization has an equal chance, or probability, of being chosen as a

sample. This implies that the section of sample items is independent of he persons making the study

that is, the sampling operation is controlled objectively so that the items will be chosen strictly at

random.

Non Probability Sampling is also known as deliberate sampling, purposeful and judgmental

sampling. Non-Probability Sampling is that which does not provide every individual in the

Organization with a known chance of being included in the sample.

Data collection method

Collection of data is the first step in statistics. The data collection process follows the formulation for

research design including the sample plan. The data can be secondary or primary.

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Collection of Primary Data during the course of the study or research can be through observations

or through direct communication with respondents on one form or another or through personal

interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was

formulated keeping in mind the objectives of the research study.

Secondary data means data that is already available i.e., they refer to data, which has already been

collected and analyzed by someone else. When a secondary data is used, the researcher has to look

into various sources from where he can obtain data. This includes information from various books,

periodicals, magazines etc.

Research Methodology Adopted

Research Design: Descriptive research

Research Instrument: Structured Questionnaire

Sampling Plan

i) Sample Method: Non-Probability Sampling (Convenience Sampling)

ii) Sample Size: 30

iii) Sample Unit: Employees who do not hold a supervisory position

Sampling Design

Convenience Sampling, as the name implies, is based on the convenience of the researcher who is

to select a sample. Respondents in the sample are included in it merely on account of their being

available on the spot where the survey was in progress.

Source of Data

a) Primary Data : Structured Questionnaire

b) Secondary Data : Journals, Booklets, Company Data, etc.

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DATA ANALYSIS

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Q1. How long you have been working in the industry ?

Chart Title

yearsless than 33-5 yearsmore than 5

Interpretation: - Out of 30 respondents, number of employees that have worked in the company

for less than 3 Years is 6, for 3 to 5 years is 14 and those who worked for more than 5 years is 10.

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Q2. What do you think is your key role towards the success of the company?

0 2 4 6 8 10 12 14 16

Series1Series2Series3

Interpretation : - Out of 30 respondents, number of employees those worked really hard in the

last one year are 16, those area of concern is to grooming people are 8 so that they become better

resources and those prime area waz to manage people as a whole are 6.

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Q 3. Were you informed about the Performance Appraisal model, used in the

Organization, during your induction?

yesno

1) Yes : 20

2) No : 10

Interpretation: Due to the fact that most of the employees have got no experience in this sector

before, they did not ask about the Performance Appraisal model used in the Organization. The

Respondents that said that they were informed of the model during the interview were told so at

the discretion of the interviewer. The company has however made it a point to inform the employee

about the model before he signs the acceptance letter. This prevents any mbiguities and

misunderstanding about what is expected of the employee before he joins the Organization.

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Q 4. According to you, how often should the Performance Review take place?

0 1 2 3 4 5 6 7 8 9 10

Series4Series3Series2Series1

Data

1) Once in a week – 8 2) Once a month – 6 3) Every 3 months - 10

4) Every 6 Months – 4 5) Once a Year - 2

Interpretation: Performance appraisal review is a constant process and lesser the frequency

between the appraisals, the better. The majority want the frequency of the appraisal to every 3

months. The employees say that the longer the frequency between appraisals, the more the chances

of the appraisal not matching up to their expectations because many performances get overlooked.

If the appraisal is done on a more frequent basis, the employee has a chance to find out the gaps in

his / her performance on a more regular basis which will help them to improve more on their

performance and thereby eliminate waste. The appraisal does not necessarily have to be a formal

one. Even informal performance appraisals done between formal appraisals but on a more frequent

level will most certainly help and go a long way in improving performance.

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Q 5) How do you find the Performance Appraisal Model in this Organization?

(Mark all the relevant options)

0

2

4

6

8

10

12

14

16

Series4Series3Series2Series1

Data

1) Simple -10 2) Complicated -1 3) Objective - 2

4) Subjective - 2 5) Efficient - 15 6) Inefficient - 0

Interpretation: From the above chart it can be inferred that, a majority of the sample

respondents have found the Appraisal Model to be simple and efficient. The Appraisal model has

been thoroughly dealt with during the training so the employees know exactly what is expected of

them.

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Q 6) In your opinion, does the Performance Appraisal System give a proper

assessment of your contribution to the Organization?

Data

1) Yes – 23 2) No - 7

Interpretation: About 76.67% of the respondents say that the Performance Appraisal System

does give a true and fair view of their contribution to the Organization. This does include employees

who think that their rating does not always turn up to be correct as per their opinion. The group of

respondents, who have replied in the negative, also include candidates who say that the appraisal

does not turn out to be right most of the times but do show a fair

View sometimes.

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Q 7) What is your Satisfaction level with the current Appraisal System?

02468

1012141618

Series1Series2

Series3

Series1Series2Series3

Data

1) Very Low – 0 2) Low – 2 3) Average -5

4) High – 17 5) Very High - 6

Interpretation : The satisfaction level of the Appraisal system is quite high as can be seen from the

graph.

This is a good sign as increased level of satisfaction is the main emphasis of any appraisal system.

The curve tops at the rating of high and this includes about 56% of the population. The bell curve

shows that 92% have rated the Appraisal system as average, high or very high . The high Satisfaction

level in the System could also be due to various reasons like monetary or non-monetary incentives

or growth parameters.

The satisfaction level also brings to light the efficiency of the management in devising an acceptable

Appraisal system.

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Q 8) How important do you think is Performance Appraisal to your

Performance?

0

2

4

6

8

10

12

14

16

Series4Series3Series2Series1

Data

1) Not Important – 0 2) Less Important - 1 3) Important - 7

4) Very Important - 15 5) Most Important - 8

Interpretation : This question was put in to find out and analyze the importance of the Appraisal

system to the productivity of the employee. The data clearly shows that the recognition of the

employee s performance does have a direct impact on his / her efficiency.

A vast majority of the respondents affirm that their performance is directly influenced by

recognitions of their performance by the appraisal system. None of the respondents have stated

that the appraisal system had no effect on their productivity.

This points out to the fact that the Appraisal system goes a long way in determining the productivity

of the employees in an Organization. Therefore it is very important for any Organization to devise their

Performance Appraisal System carefully.

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Q9. Promotion, transfer, demotion and suspension is purely based on performance

appraisal.

0 2 4 6 8 10 12 14 16

Series1Series2Series3Series4Series5

A. STRONGLY AGREE - 10 B. AGREE - 16

C. NEITHER AGREE NOR DISAGREE - 4

E. STRONGLY DISAGREE - 0

Interpretation: Around 33.33% employees are strongly agreed and 56.67% are agreed with this

statement only 13% employees are neither agree nor disagree it shows the importance of

performance appraisal system.

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Q10. Training programs are effective for organization and individual development.

0

2

4

6

8

10

12

14

16

Series1Series2

Series3Series4

Series5

Series1Series2Series3Series4Series5

A. STRONGLY AGREE - 15 B. AGREE - 10

C. NEITHER AGREE NOR DISAGREE - 5

E. STRONGLY DISAGREE - 0

Interpretation: 50 % employees are in favor of training program. It is good for the development

of the employees as well as for organization.

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Q11. Performance appraisal increases employee motivation.

0

2

4

6

8

10

12

Series5Series4Series3Series2Series1

A. STRONGLY AGREE - 10 B. AGREE - 10

C. NEITHER AGREE NOR DISAGREE - 5

E. STRONGLY DISAGREE – 5

Interpretation: Around 20 employees are in favor of increase of employees motivation through

appraisal system and it will brought tremendous changes in the performance of the employees and

rest are not in favor of it because they have there own set of mind for work.

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LIMITATIONS

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The following are the limitations faced by me during the course of the study

The sample consisted only of employees in the day shift. Employees of the night

shift were not considered for the purpose of study.

There is no concrete basis to prove the response given is a true measure of the

opinion of all the employees as a whole.

Convenient sampling was used as the mode of conducting the research.

The questionnaire contained mostly multiple-choice questions; therefore many

Respondents may not have given a proper thought before answering the questions.

The response of the respondents may not be accurate thinking that the

Management might misuse the data.

Almost all of the questionnaires had the closed-ended question.

Sensitive company information cannot be displayed in the project report.

Most respondents might be influenced by their peers in answering the questions.

Due to the fact that most of the respondents were young, the questions might not

Have been answered with due sincerity.

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FINDINGS AND CONCLUSIONS

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The following are the suggestions and conclusions derived from this particular research study

Objectivity One manager's idea of "self-starting ability" can be quite different than another's idea.

The question then arises as to how one objectively evaluates "creativity? If greater amount of

objectivity can be infused into the Appraisal system, it can help to bring more transparency.

Effective Communication

One function of performance appraisals is to help employees develop so they can contribute more

effectively. In order for the employees to develop and learn they need to know what they need to

change, where (specifically) they have fallen short, and what they need to do. If a manager assigns a

1(unsatisfactory) on a scale of 5, it does not convey much information to an

employee. It just says the manager is dissatisfied with something. In order to make it meaningful

and promote growth, far more information must be added to the appraisal process and the related

information should be transparently shared with the employee.

Fairness

Most employees resist being classified at the low end of the scale. Employees who are low rated are

more likely to resist the evaluation of the superior and argue, claiming that personal bias was

involved in the ratings.

Managerial Efficiency

The implementation of a Performance Appraisal System rests on the shoulders of the manager and

he must ensure that it is done properly. A good manager can make an average appraisal system

work and vice-versa.

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BIBLIOGRAPHY

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BOOKS –

K. Ashwathappa “Human Resource Management” 5th edition.

C.B Mamoria and S.V. Gannker “Personnel management” 5th edition.

T.V. Rao “Appraising and Developing Managerial Performance”

L.M Prasad “Human Resource Management”

M.L Monga “Management of Performance Appraisal”

V.S.P.Rao “Human Resource Management”

T.N. Chabra “Human Resource Management”

C.R.Kothari. “International Marketing Management”

JOURNALS AND MAGAZINES –

Booklet of HRH Group of Hotels

Brochure of Eternal Mewar and HRH Group of Hotels

Synopsis of Maharana of Mewar Charitable foundation

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REFERENCES-

www.hrhhotels.com

www.pmintpc.com

http://en.wikipedia.org/wiki/Performance_appraisal

www.businessballs.com

http://www.performance-appraisal.com/intro.htm

http://www.performancemanagementguide.com/

www.openlearningworld.com

www.google.co.in

www.yahoo.com

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ANNEXURE

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Q1. How long you have been working in the industry?

a) Less than 3 b) 3-5 years c) More than 5 years

Q2. What do you think is your key role towards the success of the company?

a. You worked really hard in the last one year or so and ensured that everything is in proper place

b. Your area of concern was grooming people so that they become better resources.

c. Your prime work area was to manage people as a whole

Q 3. Were you informed about the Performance Appraisal model, used in the Organization, during your

induction?

a. Yes b. no

Q 4. According to you, how often should the Performance Review take place?

1) Once in a week – 2) Once a month – 3) Every 3 months -

4) Every 6 Months – 5) Once a Year -

Q 5) How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options)

1) Simple - 2) Complicated - 3) Objective -

4) Subjective - 5) Efficient - 6) Inefficient –

Q 6) In your opinion, does the Performance Appraisal System give a proper assessment of your contribution

to the Organization?

a- yes b. no

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Q 7) What is your Satisfaction level with the current Appraisal System?

1) Very Low – 2) Low – 3) Average -

4) High – 5) Very High -

Q 8) How important do you think is Performance Appraisal to your

Performance?

1) Not Important – 2) Less Important - 3) Important -

4) Very Important - 5) Most Important -

Q9. Promotion, transfer, demotion and suspension is purely based on performance appraisal.

A. STRONGLY AGREE - B. AGREE -

C. NEITHER AGREE NOR DISAGREE -

E. STRONGLY DISAGREE -

Q10. Training programs are effective for organization and individual development.

A. STRONGLY AGREE - B. AGREE -

C. NEITHER AGREE NOR DISAGREE -

E. STRONGLY DISAGREE -

Q11. Performance appraisal increases employee motivation.

A. STRONGLY AGREE - B. AGREE -

C. NEITHER AGREE NOR DISAGREE -

E. STRONGLY DISAGREE –

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