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Management Thesis

On

Impact of performance appraisal system on productivity of

Employees of Sonalika.

SUBMITTED BY

(Sunny kumar)

MANAGEMENT THESIS

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ON

Impact of performance appraisal system on productivity of employees of ITL

By

Sunny Kumar

8NBJL011

Under the guidane !"

M#$ %i&ha

'(au)ty Su*er+i#!r,

A re*!rt #u&mitted in *artia) "u)-))ment !"the re.uirement !"

THE MBA /OGAM

'The )a## !" 0082010,

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1

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+ 'B2E!TI.E 3

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STUDY

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1 BIBLI'%#$"Y /0

#!:&'*LEDEME&T

Education becomes more meaningful when its theoretical aspects are combined with practical

experience. This provides an opportunity to the students to improve their understanding of the

studies.

M! is a course" which combines both its theory and application as its content of study in the

field of management as a part of this course" every aspirant has to submit a Dissertation. The

purpose of this Dissertation is to expose the students or management sciences to real business

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situation and to use theoretical #nowledge into practical experience. In order to use the

theoretical #nowledge I have done Dissertation on the concept of $erformance appraisal % its

impact on the productivity of employees. I am very than#ful to my &' faculty Ms. (ibha.

E-E!UTI.E SUMM#%Y

My research is based on manufacturing company as I am taking these company

to find out the impact of performance appraisal on productivity .In this project I

am doing research on the basis of these variables like :

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The employees are satisfied with these appraisal, appraisal increase

productivity or not.

For such I am collecting knowledge of company through internet and by

visiting their company. Till this time I framed uestionnaire to do my research.

!fter that my further plan is to visit their organi"ation meeting employee,

filling uestionnaire to find out the response of the employee about the

performance appraisal.

INTRODUCTION

E#ta&)i#hed in 13435 S!na)i6a gr!u* "r!m the +ery &eginning ha# tried t! under#tand

u#t!mer need #! that they get &etter +a)ue "!r their m!ney5 hard earned$ S!na)i6a

ha# #tate !" manu"aturing5 #*read in are#5 )!ated at H!#hiar*ur and ta7 "ree !ne

at Am& in Himaha) /rade#h$ S!na)i6a i# the !ne !" the t!* 9 trat!r manu"aturing!m*anie# in India5 !ther *r!dut# in)ude !" mu)ti uti)ity +ehi)e#5 engine# and

+ari!u# "arm e.ui*ment#$ T!day the gr!u* #tand# ta)) :ith an a**r!7imate turn!+er

!" 900 r!re# IN$ An a+erage gr!:th !" 90; ma6e# it !ne !" the "a#te#t gr!:ing

!r*!rate in India$ It i# a)#! !ne !" the "e: de&t "ree !m*anie#$ Gr!u* ha# #trength

!" a&!ut 000 em*)!yee# < tehn!rat#$ Hi#t!ry re+ea)# that inn!+ati!n i# the 6ey

t! !ntinue *r!gre## and :hen a**)ied t! tehn!)!gy that t!uhe# human )i"e5 it an

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un"!)d a :h!)e ne: e!n!mi *hen!men!n that ha# the *!:er t! hange the :!r)d$

=ith uni.ue initiati+e# )i6e the th!ught )eader#hi*

forum" it has been able to create a uni)ue platform for learning through success stories of

industry leaders.

No doubt that the *onali#a $roducts has created a niche for themselves not only in India but also

in foreign mar#et. To maintain )uality have any detect even at Micro level is been ta#en care of

and rectified. The technology for painting" which they use" is of the high +uality and they have a

paint shop with world class )uality standards.

The success saga of *onali#a group" a business conglomerate having prime interest in

agricultural % auto machinery goes bac# to nearly , decades. The corporate philosophy

embedded in trust" )uality and commitment has helped the group to carve out a niche for itself inthe highly competitive world of machinery.

*onali#a is the fastest growing tractor company registering growth over growth since its

inception has crossed -./ la#h merely in -/ years % has attained one of the positions in top

three in India.

0ompetitors1 M%M2$un3ab Tractors" Escorts" 4ord

0ustomers1 4armers

Sonalika Group

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#ic: $From left% Managing &irector Mr. &eepak Mittal, 'hairman (.&. Mittal and )ice*

'hairman !.+. Mittal of +onalika roup

.ision

To become the world5s leading company for agricultural machinery and a ma3or player in

automotive products and services.

0ontinuously maintaining competitive edge by developing innovative new products and

services.

Ensuring )uality and )uic# responsiveness of customer services.

To grow at faster rate through bac#ward 6 forward integration and venturing into new

opportunities.

Mission

7e !re ! 8lobal 4amily 7ith ! $roud &eritage $assionately 0ommitted To Development 9f

!gricultural Mechani:ation !nd $roviding $ersonal Mobility 4or $eople !round The 7orld.

7e anticipate consumer5s Need and Deliver outstanding $roducts and *ervices that Improve

people5s lives.

roup !ompanies;

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*onali#a !gro Industries 0orporation.

Agriu)tura) Mahinery

International Tractors ;imited.

Trat!r >i+i#i!n

Engine >i+i#i!n

International 0ars and Motors ;td.

/!:er train ? L @>(i

Engine Tran#mi##i!n and MU%

manu"aturing

International !utotrac 4inance ;td.

N!n Ban6ing (inaning @!m*any

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/ "istory of t tractor manufacturer in India. These tractors are also exported to various

countries including *outh !frica" !ustralia" Aimbabwe" *ri ;an#a" 0anada" angladesh" !lgeria"

Aambia" *enegal" 8ana" etc.

/, International !ars and Motors Limited

International 0ars % Motors limited BI0M;C" is a group company of the 's -?// 0rores *onali#a

group. The company is promoted by Mr. ;.D. Mittal" 0hairman" Mr. !.*. Mittal" (ice 0hairman

% Mr. Deepa# Mittal" Managing Director" who is having a vast experience in manufacturing of

tractors" farm machines % automobiles. I0M; is a pro3ect of its #ind and is the pride of

&imachal $radesh5. The company is having its state2of2the2art production facility" with centrally

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air2conditioned" dust % pollution free environment" to manufacture multi2utility vehicles 6 sports

utility vehicles" in !mb" &imachal $radesh. The company is a mother unit5 as its establishment

shall attract many other ancillary % small units for meeting the raw material re)uirements

yielding manifold employment avenues" revenue % industriali:ation in the state.

The company has entered into technical collaboration agreement with mg rover of F" with the

technical #now G how from M8 'over" F. The company has manufactured M( with the

name of 'hino 'X % the same M( boasts of rover engines. The company is in2process of

developing its own common rail direct in3ection B0'DIC engines.

/0 Sonalika #=ro Industies !orporation

*onali#a agro was established in -=

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/+ International #utotrac 4inance Limited

International !utotrac finance limited is a non ban#ing finance

company approved by 'I. I!4; provide finance to customersof international cars % motors limited in rural % semi2 urban

areas across India through customer friendly schemes. Its parent

company *onali#a group ran#s among the largest tractor % farm e)uipment manufacturer in

India.

6. Current Status

=ith net #a)e# !" 9$9)a Trat!r#5 the Indian trat!r indu#try gre: &y 0$C;

during (D0 !n the &a6 !" higher demand gr!:th5 im*r!+ement in rea)iati!n#

and ea#y and hea*er a+ai)a&i)ity !" -nane

M

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Fig*-: !ll India Tractor sales of International Tractors (td for the period of -*/001

esides farming" rising infrastructure activities are enhancing the use of tractors for

construction materials transportation.

Tractor financing )ualifies as priority sector lending. an#s and N40s now have a greater

focus on tractor financing due to reasonable tic#et si:e and higher resale value.

!lmost all of the tractors sold in India are financed due to relatively low interest rates" easy

repayment norms and longer tenure of finance" thereby translating the sales growth rates

into the tractor financing business growth.

7. ITL Organization Structure

Fig*/: 2ierarchy level at IT(

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Mr. ;.D. Mittal" 4ounder and 0hairman" holds the highest position of the *onali#a 8roup. Mr.

!.*. Mittal" 0o2founder and (ice20hairman" brother of Mr. ;.D. Mittal holds the second highest

position. Mr. Deepa# Mittal" son of Mr. ;.D. Mittal is the Managing Director. Mr. 'aman Mittal"

son of Mr. Deepa# Mittal is the Executive Director holding the fourth highest position.

Mr. ;.'. Jadav is the 0hief 9perating 9fficer who is responsible for International Tractors ;td"

International !utotrac 4inance ;td and *onali#a !gro Industies 0orporation

Mr. !sho# Fapoor is the Koint 0hief 9perating 9fficer who is also responsible for International

tractors ;td.

8. Human Resource Department Hierarchical structure

Fig*3: 2eirarchy structure of 2uman 4esource &epartment at IT(

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Mr. *.F. Dutta" Deputy 8eneral Manager" &uman 'esource Department and $ersonnel and

!dministration reports to both 0hief 9perating 9fficer and Koint 0hief 9perating 9fficer.

Ms. Tina gale" Deputy Manager is responsible for the 'ecruitment and *election process at

International Tractors ;imited.

Ms. Mani#a" Deputy Manager is responsible for the $erformance Management process.

Dr. 8urvinder *ingh" Deputy Manager is responsible for the Training and Development of

employees and college students wor#ing part2time or on training at IT;.

'B2E!TI.E

To #now the various types of performance appraisal methods being used at IT;.

To #now which appraisal system is being mostly used in IT;.

To #now whether the performance appraisal system of IT;. Increase the productivity of

employees or not .

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$E%4'%M#&!E #$$%#IS#L

$erformance appraisal can be defined as the process of evaluating the performance of an

employee % communicating the result of the evaluation to him for the purpose of rewarding %

developing the employee. !ccording to Michael !rmstrong L$erformance appraisal is a formal

assessment % rating of individual by their managers at usually at annual review meeting.

$erformance can be defined as the degree of accomplishment of tas#s by an employee in his 3ob.

In some organi:ations it is measure of the result achieved % target accomplished whereas in

others" it is a measure of employee efforts % behavior. &owever most organi:ations use a

combination of both efforts % results. $erformance appraisal is also termed as performance

review" annual review % annual appraisal.

T"E #$$%#IS#L $%'!ESS

-. The first step in the appraisal performance process is the determination of standard of

performance based on the organi:ational ob3ectives % 3ob descriptions.?. The next step of performance appraisal is the measurement of employees performance

against the pre2determined goal % standards.

>. The next step is the actual process of measurement. $erformance appraisal has to be a

continuous process % feedbac# should be given to the employee at regular intervals.

@. The next step is the very critical step % involves communicating the result of the

appraisal to the employee concerned.

,. 9nce appraisal is finali:ed after discussing it with the employees" it have to be put

effective use.

T&E !$$'!I*E'

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The appraiser is that person who access the performance of a person or an employee. In more

recent concept li#e >/ degree feedbac#" the peer6colleagues of the employee" his supplier" his

customer" % even his subordinate play a role in assessing his performance.

*E;42!$$'!I*!;

!s has been discussed earlier self appraisal is the common practice today" with the employee

being given a role in evaluating their own performance. The employee himself is best e)uipped

to evaluate his performance because he understands his strengths % wea#nesses the best.

*$E'(I*9'

It is the responsibility of the supervisor to ensure that his subordinate perform their 3obs well.

&ence the authority to evaluate the employees5 performance has traditionally been with the

supervisor.

$EE'*

$eer evaluation is very sensitive area as it may lead to false % unhealthy appraisal because of

competition among peers. The organi:ation has to reach an advanced stage of development

before it can handle peer appraisal.

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0*T9ME'*

The performance of an employee has a direct % immediate impact on his customer either internal

or external. In service organi:ation li#e ban#s % hotels customer feedbac# has become the most

important tool in evaluatingthe employee5s performance$

*9'DIN!TE*

The concept of subordinate evaluating the performance of his supervisor yet to gain acceptance

in most Indian companies. The Indian culture does not encourage the idea of subordinate

appraisal.

$E%4'%M#&!E #$$%#IS#L MET"'DS

-. Management by ob3ective or goal setting.

?. 8raphic rating scale.

>. 7or# standard approach.@. Essay appraisal.

,. 0ritical incidence method.

. 4orced choice rating method./ degree performance appraisal.

-?. Team appraisal.

->. alanced scorecard method.

M!N!8EMENT J 9KE0TI(E BM9C

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The main aspect of M9 is clear % well defined goals" a definite time span to achieve the goals"

action plan % finally" timely % constructive feedbac#. It is also called a goal setting approachO

M9 is more commonly used for managers % professionals.

8'!$&I0 '!TIN8 *0!;E

This method of appraisal re)uires the rater to rate the employee on factors li#e )uantity % )uality

of wor#" 3ob #nowledge" dependability" punctuality" attendance etc. This method is also used for

performance appraisal of employees. They chec# their employees daily by using this method.

79'F *T!ND!'D !$$'9!0&

This method of appraisal is more suitable in a manufacturing scenario" where the goals are pre

determined wor# standard. These wor# standards can be set based on the average output of a

typical employee in the organi:ation or by bench mar#ing against the wor# standard of a

competitor in a similar business.

E**!J !$$'!I*!;

In the essay appraisal method" the appraiser prepares a document describing the performance of

the employees. +uestions or guidelines are provider to the appraiser based on which analyses %

describes the employees5 performance.

0'ITI0!; IN0IDENT MET&9D

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In this method of performance appraisal" the appraiser ma#es a note of all the critical incident

that reflect the performance % behavior of the employee during the appraisal period. These are

recoded as % when they occur % can demonstrate either positive or negative traits or

performance.

49'0ED 0&9I0E '!TIN8 MET&9D

In this method the appraiser is re)uired to assign ran#s to different attributes are all seemingly

positive" but have different weights which are un#nown to the appraiser. 9nce the employees5

attributes are ran#ed the human resource department applies the weights % arrives at a score

which is the final appraisal score.

$9INT !;;90!TI9N M!T&9D

In this method of appraisal" the appraiser has to allocate points to different members in his team.

&e has at disposal " a specific number of points which he has to distribute among his team

members" based on their performance during the appraisal period.

'!NFIN8 MET&9D

There are three commonly used methods of ran#ing namely alternation" paired comparison %

forced distribution. The first two methods are used when there are only a few employees to be

ran#ed" whereas forced distribution method is used in large companies which have thousands of

employees.

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0&E0F;I*T

In this method the rater has to respond yes5 or no5 to a set of )uestions which assess the

employee5s performance % behavior. Normally weights are attached to each of these )uestions

based on which the final appraisal score of the employee is calculated.

E&!(I9' !N0&9'ED '!TIN8 *J*TEM B!'*C

!'* concentrates on the behavioral traits demonstrated by the employees instead of his actual

performance. *ome of the other methods li#e graphic rating scale % chec#list also measure the

behavior based on the assumption that desirable behavior result in effective performance.

>/ DE8'EE $E'49'M!N0E !$$'!I*!;*

! >/ degree appraisal system aims at a comprehensive % ob3ective appraisal of employee

performance. In a >/ degree appraisal system the employees5 performance is evaluated by his

supervisor" his peers" his internal external customers" his internal external suppliers % his

subordinates. This system reduces the sub3ectivity of a traditional supervisor appraisal.

TE!M !$$'!I*!;

In the new economy era" where team wor# is essential for any venture to succeed" team appraisal

has emerged as one of the best tool for the performance management. In the team appraisal

method the individual team member evaluate their colleagues in the team % provide feedbac#.

!;!N0ED *09'E0!'D

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The balanced scorecard as a method of measuring performance channeli:es the efforts of people

to achieve organi:ational goals. The implementation of balanced scorecard involve formulating a

strategy % deciding what each employee needs to do to achieve the ob3ectives based on strategy.

$E%4'%M#&!E #$$%#IS#L SYSTEM #T ITL

$erformance appraisal report is an index of an employee5s wor# performance over a given period

of time. It is crucial for his or her career growth as it indicates the strengths" wea#nesses" training

needs" nature of 3ob being performed and problems faced in wor# situation.

The ob3ectives of the performance appraisal system at IT; are1

To set norms and targets of wor# performance" as well as" to monitor the wor# progress

of employees.

To facilitate placement of employees in accordance with their suitability for different

types of assignments.

To provide an ob3ective basis for determination of merit" efficiency and suitability for the

purpose of promotion.

To identify areas re)uiring exposure for training and development.

The performance appraisal system see#s to evaluate1

The wor# performance of an employee on the present 3ob in relation to the expected

levels of performance" both )ualitative and )uantitative.

The extent of development achieved by the employee during the period under review.

Evaluation of behavioural attributes" attitudes and abilities.

Evaluation of potentials for assuming higher responsibility.

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The appraisal covers1

$erformance chec# after > month.

!ll regular employees of the company.

aC Non Executives.

bC Executives

The appraisal form $!'6!0' is filled in respect of all such employees who have served for a

period of at least four months in the organi:ation during the relevant year.

$rocedure

$!'6!0' in respect of an employee is re)uired to be assessed by levels indicated below1

y the reporting officer under whom employee is wor#ing.

y the reviewing officer.

The reporting officer for writing $!' of an employee of class III6I( and E2/ level

category will be the executive under whose control the employee is wor#ing. The

reviewing officer will be of one grade above the grade of reviewing officer. The $!'5s in

respect of class III6I( employees duly reviewed is maintained at

'egion6Institute6&ead)uarters group wise in the concerned establishment section6$!'

sections.

The $!' in respect of E2/ to E2 level executives is being maintained in $!'departments at head)uarters of '%$ division.

!s regards E2< and above all such reports which are received from

'egions6Institutes6&ead)uarters are maintained at 0hairman2cum2managing Director5s

office. The reviewing officer will be the officer to whom the executive reports for his day

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to day wor#. 'eview of the $!' will be done by the executives to whom the reporting

officer is responsible for his functions. !ccepting authority will be the executive higher

than the reviewing officer at different levels depending upon the nature of the grades as

per delegation of powers in $!' rules.

The performance appraisal reports of executives of E2 level i.e. Deputy general

manager and above will be submitted to concern functional Director for final review

and acceptance.

The performance appraisal reports of executives of E2, level i.e. chief manager and

e)uivalent will be reviewed by the 'D6ED6Nominee of the Director concerned.

The performance appraisal of the executive upto E2@ level i.e. manager and e)uivalent

would be reviewed by the functional head68M608M not less than E2ecutives

I. $ersonal Data

This includes personal details of the individual being appraised.

II. *elf !ppraisal

In this section the appraisee is re)uired to mention the tas#s achieved in the appraisalperiod including enabling and constraining factors. These achievements are then rated by

the individual itself and the appraiser.

III. !. $erformance !ppraisal

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$erformance appraisal is done on the basis of Fey 'esult !reas and a certain weightage

is assigned to each. 4ollowing are the Fey 'esult !reas1

$erformance in respect to volume @/

+uality of output >/

Timeliness of 3obs completed >/

The total of the score gained by the individual is noted and termed as $.

. $otential !ppraisal

$otential of the candidate is appraised on the scale of - to , #eeping the existing role as

well as future positions in perspective.

*cale - to , is given for B-2poor" ?2fair" >2good" @2very good" ,2excellentC

$otential is appraised on the basis of following traits1

'esult oriented approach

7illingness to accept challenges

Diligence and reliability

Initiative

$rofessional competence

0ommunication s#ills

0ommitment and dedication

$ersonal conduct and discipline

;eadership

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Inter personal relationship

Total of score gained by an individual in this section is again noted and termed as 9.

0. 7or# done for &INDI

D. 9verall 8rade

Total scoreBSC is calculated as

* P a Q $ R b Q ? Q +

7here a % b are weightages for performance and potentials. This weightage is as per the

level.

;evel a b

E- /.= /.-

E? /. /.?E> /.< /.>

E@ /. /.@

E, /., /.,

E /.@ /.

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The grading system

!R =, and above

! , and above but less than =,

!2

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(. Moderation

(I. !ssessment by accepting officer

4inal grade with score

(II. 0ommunication to executive

(III. 0ounseling

The final grade given by the accepting authority after detailed and due consideration to the rating

by the -stand ?ndappraisers" will be the decisive grade of the appraisee executive. In case this

final rating is different from those of the -st and ?ndappraiser" ade)uate 3ustification must be

mentioned by the accepting authority. There must be ade)uate explanation by the - st and ?nd

appraisers and the accepting authority for any grade assigned to the appraisee. In the absence of

ade)uate explanation the report will be considered incomplete and returned bac# to the

appraisers for confirming to the directives contained in the instructions.

%ESE#%!" MET"'D'L'Y

The approach used for the study was *urvey Method. 4or this ;iterature and Diagnostic *urvey

were carried out1

;ITE'!T'E *'(EJ

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*econdary sources were referred to get the basic culture and wor#ing pattern of IT;. !ll the

re)uired information was collected from the in2house 3ournals" maga:ines" reference boo#s"

manuals and the other related sources.

DI!8N9*TI0 *'(EJ

It was done with the help of a )uestionnaire to chec# the efficiency and effectiveness of the

system.

$%'2E!T TITLE

L$erformance !ppraisal *ystem on the productivity of employees of IT; .

SI&I4I!#&!E '4 STUDY

&uman 'esource Development is the basis of success of any organi:ation. &'D helps to

enhance employee5s effectiveness and helps to achieve organi:ational goals. Now with the

emergence of so2called 5678 7'969M;" the increasing role of #nowledge in industry is

becoming obvious. In the emerging #nowledge age" incessant learning by employees through

effective Training and Development is going to be a #ey to survival and growth for

organi:ations. 7ithout effective Training and Development no enterprise can claim to be giving

due importance to &'D. $erformance appraisal in the real sense can be carried out only when

the employees are provided with the re)uired amount of training. In the unfolding economic

scenario it is increasingly being reali:ed that employees are the most precious assets of any

company. !ny investment in introducing performance appraisal techni)ues is worth only when

the above mentioned criterion is fulfilled. Every organi:ation nowadays is using various methods

for appraising the performance of the employees so that the real potential of the human asset can

be #nown and utili:ed in the proper way. $erformance appraisal not only evaluates the wor#

done by the employees but also tries to boost the morale and motivate them to do their best. The

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methods used by the organi:ation should be communicated to all the employees who come under

its purview. They should be satisfied with the procedure and if they are not then it should be

loo#ed upon that what are the reasons behind it and what changes are to be brought about.

$erformance appraisal has a very important aspect to it and that is development of the

employees.

%ESE#%!" MET"'D'L'Y

%ESE#%!" DESI&

The present investigation is descriptive type of study underta#en to estimate the effectiveness of

the performance appraisal system of IT;. The present study identifies views of employees of

different levels and disciplines.

I have divided the whole sample into various groups on various criterions li#e age" experience"discipline" and management level.

To do the better analysis these groups are further incised as

!ge

!ge less than @/ years

!ge between @/2,/ years

!ge above ,/ years

!ge not provided

Experience

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Experience less than -/ years

Experience between -/2?/ years

Experience between ?/2?, years

Experience between ?,2>/ years

Experience more than >/ years

Discipline

4inance

8eo *ciences

&'

$roduction

Technical and Engineering

Managerial ;evel

Kunior ManagementBE/ 2 E?C

Middle ManagementBE> G E@C

*enior ManagementBE, and aboveC

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Scope of t

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Si=nificant varia@les YES &'

appraisal Motivate you

Its beneficial for your future

development

your productivity increases after

appraisalS

!fter appraisal have your wor#ing

hour increasedS

$erformance appraisal is beneficial

for your future developmentS

official environment and wor#ing

style affects your productivity or

performanceS

you li#e to initiative in addition to

assigned responsibilities only

because of good appraisal systemof the companyS

$erformance appraisal system

helps you to reali:e your strengths

and wea#ness regarding your 3ob

profilesS

$erformance appraisal systems of

the company motivate you to

maintain long term relationship

with the companyS

Jour performance being chec#ed

regular by your superiorS

!re you satisfied with appraisal

system or notS

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!"I6S9U#%E

!ttribute Jes No Total

Motivated - ?//

4uture Develop -/ ?/ ?//

Increaseproductivity

- ?//

7or# &ard -

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9B9*E'(EDC EBEX$E0TEDC 92E B92EC? B92EC?6E

-

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'ow P ,

0olumn P ?

*ignificance P /./,

Table value P -@.=

0hi2 s)uare P ?,.-@

.aria@les;

$erformance appraisal"$roductivity.

"ypot

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9rgani:ation being very large an effort was made to do the tas#s effectively and

efficiently but more detailed study could have done by having large sample si:e.

Employees delayed in submitting the feedbac# form so it effected the time in compiling

and analy:ing data for findings and suggestions.

Many )uestions were responded as L0annot *ay due to the sub3ectivity of the topic and

some information was not revealed due to certain reasons li#e being confidential in

nature.

(%esponse in YES or &' only)

9 #ppraisal system motivates to you for Aork

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=H employees of sonali#a are favors of motivation. they said that appraisal system motivate to

do wor# hard.

--H employees are not in favor that appraisal system motivates to do wor# hard

9, your productivity increases after appraisal

'esponses

JE* 2 =H

N9 2 >-H

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=H employees of company say that productivity increase after appraisal

--H employees of company are not agree with other employee.

+.> #fter appraisal

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/H employees of company say that there is any incrent in wor#ing hours after appraisal.

9+ $erformance appraisal is @eneficial for your future development

'esponses

JE* 2 H

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85C employees t

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85C employees say t

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3/C employees say t

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7/C employees of sonalika say performance appraisal system

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8/C employees say performance appraisal systems of t

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7/C employees say t

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8C employees of company are satisfied Ait< appraisal system

=Hemployees of company are not satisfied Ait< appraisal system

M#2'% 4I&DI&S

$erformance !ppraisal *ystem in I;T is not transparent.

!ppraisers are usually unbiased.

Employees are not able to #now their actual position after the appraisal.

The management is serious about the appraisal process.

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The appraisal process provides them an opportunity for development and growth.

'elations with the superior affect the evaluation.

8reater weightage is given to the recent performances.

There are fixed standards to evaluate the performance but those are not clear due to the

sub3ectivity of the topic.

'aters #now how to conduct the appraisal.

'aters are not that much concerned about the varied needs of people at levels of

experience and bac#ground.

*uperior2subordinate relations are good. *uperior helps them set and achieve meaningful

goals. This ma#es the environment amiable and congenial.

$erformance appraisal sheet is lucid and easy to understand and fill.

The parameters used to appraise the potential are ample.

The system being not so transparent" employees are unable to identify the performance

gaps in order to prepare for the future.

Individual feedbac# is not provided.

The management helps provide an atmosphere where all are encouraged for comradeship

and teamwor#.

!ppreciation is provided for the good 3ob done.

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The appraisers are generally aware about their subordinates and their talents and

potential.

Most of the raters have the ability to give constructive criticism in a friendly" firm and

positive manner.

Employees don5t have the opportunity to respond to the appraisal result.

Employees are being rated on their #nowledge and s#ills.

Ma3ority of people want that there should be some incentives based on performance.

Employees are not provided with the genuine feedbac#.

!ppraisal counseling is considered beneficial for future developments.

Management doesn5t bother much about the training re)uirements mentioned in the

appraisal sheet.

Most of the employees want that =/ofeedbac# system should be introduced.

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%E!'MME&D#TI'&S

The performance appraisal system of IT; is of good )uality. 7ith the introduction of new e2$!'

system" the $M* system is refined further. 9n the basis of the analysis of responses and findings

I have reached to some conclusions. *o ta#ing them into consideration few steps may be

considered to strengthen the performance appraisal system.

The system should be made more transparent. This can be achieved by creating

awareness among the employees regarding each and every aspect of the appraisal

process. They should be made aware about the standards and the criterions for evaluation.

4urther they should be shown the appraisal result.

The appraiser and appraisee should sit together and then the appraiser should rate the

appraisee for his performance and should state the reason for the same. This will increase

the level of transparency and the employee will feel satisfied as he will have an

opportunity to respond at that very moment itself.

The genuine feedbac# should be provided to the employees. *o that they may be in a

position to #now where they stand exactly. *o that they can identify their performance

gaps and prepare accordingly for the future.

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The general belief among employees is that the relations with the superior affect the

evaluation process. This is not good as this creates a sense of favoritism in the

organi:ation. No doubt one should be in pleasing terms with the superior but that should

not affect the evaluation at all. 4or this the raters should always consider the performance

as the only measure for the evaluation.

The raters should ta#e note of the critical performance incidents of an individual so that

at the end of the year it should not be that only the recent performances are given more

weightage.

'aters should consider the specific re)uirements of the people to do the 3ob. They should

help them out by providing necessary s#ill set to do the 3ob more efficiently. They should

set the goals as per the potential and caliber of the individual.

Employees should have the opportunity to respond to the appraisal result. 4or this

individual feedbac# should be provided.

Management should ta#e serious note of the training re)uirements shown by the

individual in the appraisal sheet. Training plays a vital role in the development of an

individual and helps improve the performance.

*ome incentives should be introduced on the performances basis. This thing creates a

sense of healthy competition among employees which boost up the growth of the

individual as well as the organi:ation.

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QUESTIONNAIRE

Name! "hone No!

$1 A**rai#a) #y#tem m!ti+ate# t! y!u "!r :!r6 hard

De# N!

$ y!ur *r!duti+ity inrea#e# a"ter a**rai#a)

De# N!

$9 A"ter a**rai#a) ha+e y!ur :!r6ing h!ur inrea#ed

De# N!

$C /er"!rmane a**rai#a) i# &ene-ia) "!r y!ur "uture de+e)!*ment

De# N!

$ !ia) en+ir!nment and :!r6ing #ty)e aet# y!ur *r!duti+ity !r

*er"!rmane

De# N!

$4 y!u )i6e t! initiati+e in additi!n t! a##igned re#*!n#i&i)itie# !n)y &eau#e !"

g!!d a**rai#a) #y#tem !" the !m*any

De# N!

$ /er"!rmane a**rai#a) #y#tem he)*# y!u t! rea)ie y!ur #trength# and

:ea6ne## regarding y!ur F!& *r!-)e#

De# N!

$8 /er"!rmane a**rai#a) #y#tem# !" the !m*any m!ti+ate y!u t! maintain

)!ng term re)ati!n#hi* :ith the !m*any

De# N!

uhF$3 D!ur *er"!rmane &eing he6ed regu)ar &y y!ur #u*eri!r

De# N!

$10 Are y!u #ati#-ed :ith a**rai#a) #y#tem !r n!t

De# N!

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BIBLI'%#$"Y

Internet

http166business.mapsofindia.com6india2petroleum2industry6

http166www.sonalica.com6

http://business.mapsofindia.com/india-petroleum-industry/http://www.sonalica.com/http://business.mapsofindia.com/india-petroleum-industry/http://www.sonalica.com/