vasudha agrawal

8/7/2019 vasudha agrawal

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A Project

On

PERFORMANCE APPRAISAL

Of

MOTHER CARE

(Submitted in Partial Fulfillment of the Requirements of Bachelor of

Business Administration Program under Utkal University)

By

VASUDHA AGRAWAL

56317UTO8089

Faculty Guide

Corporate Guide

Prof. SIPRA KARMAKAR Mr.

RAMESH KUMAR PANDA


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Declaration

I VASUDHA AGRAWAL a student of ASIAN SCHOOL OF BUSINESS

MANAGEMENT do here by declare that the project report PERFORMANCEAPPRAISAL IN MOTHER CARE, KANIHA is being submitted by me and is the

product of my own knowledge and effort. No part of this report has been

submitted to anyone at time before. It is presented for the partial fulfillment

of BBA 2008-11.

It is for the academic purpose and it has not been published or

presented anywhere else for the award of such degree.

Date:- VASUDHA

AGRAWAL


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ACKNOWLEDGEMENT

I acknowledge my indebtness to my corporate guide Mr. RAMESH KUMAR PANDA for

giving me the opputunity to work in their esteemed organization, and helping me to

complete the project in a successful manner.

I am obliged to my faculty guide Prof. SIPRA KARMAKAR for providing time, effort

and most of all her patience in helping me for preparing the project report. I am

also thankful to all the faculty members of our college for their kind cooperation

with me to write this report.

I feel immense pleasure to express my deep sense of gratitude to Mr. RAMESH

KUMAR PANDA as an external guide whose expert guidance and deep knowledge

help me to complete my project in this short span of time. I am also thankful to all

the staff members of MOTHER CARE, KANIHA who extended their hands and

cooperation directly or indirectly for successful completion of the training

programme.

Last but not the least I am also thankful to my family members and friends for

providing me moral support to do this project successfully.

Date:- VASUDHAAGRAWAL


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Chapterization

Chapter-1Introduction

1.1 Meaning of the study1.2 Objectives of the study1.3 Significance of the study1.4 Methodology1.5 Sources of data collection1.6 Limitation of the study

Chapter-2Company Profile

2.1 Brief history of the company2.2 Vision, Mission and objective of the company2.3 Organization structure & style of work of company2.4 Review of Literature

Chapter- 3Research Methodology

3.1 Methods of data collection3.2 Tool or technique used

Chapter-4Data analysis & interpretation

5.1 Data analysis5.2 Data interpretation

Chapter-5Conclusion

6.1 Findings6.2 Suggestions6.3 Conclusion

References

Appendix


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CHAPTER 1


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Meaning of the Study

PERFORMANCE:

Per formance may be def ined as the accompl i shment o f a g iven task measured against present standards of accuracy, completeness, cost and speed and to act in

accord with the requirements or obligations of the organization.In other words i t i s the act of carrying out various act ivi t ies by the employees of an organization for the purpose of achieving the goals of the organization.

APPRAISAL:I t i s the evaluat ion of worth, qual ity or meri t of the employees of an organizat ionover a period.

PERFORMANCE APPRAISAL:

Performance appraisal means systematic evaluation of the

personality and performance of each employee by his superiors orsome other persons who are familiar with their performance. In

other words, performance appraisal is a formal, structured system

of measuring and evaluating an employees job related behaviors

and outcomes to discover how the employee is presently

performing and how he can perform effectively in the future. it is

the development process for the appraisee where appraiser plays

a very important role to enhance the capabilities of the appraise

to achieve the expected levels of job performance for the whole

unit/department/office/organization. It can focus every personsattention on the companys mission, vision, and values.

Performance appraisal can be:

1. Systematic:

The appraisal is systematic when it evaluates al l performances in the samemanner, ut i l izing the same approaches so that appraisal of di f ferent persons

is comparable.

2. Objective:

I t at tempts at accurate measurement of performance by trying to el iminate

human biases and prejudices.Objectives of the study:-There are number of objectives behind this study which have shaped the need of

this project through all stages off data collection, analysis and presentation. The

present study has been undertaken within the following specific objectives:-

To know about the organizational profile.


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To know about the Performance Appraisal Management Process of Mother

Care.

To evaluate its Performance Appraisal System.

To give implemental suggestions those might be useful for the policy

makers.

Significance of the Study:-

Performance Appraisal of Mother Care is extremely vital. The efficient

Performance Appraisal is required. So, it is found to be the ideal topic to

study, analyze and search for a better Performance Appraisal management

technique, which will help Mother Care to perform its functions in a more

efficient manner.

The data and information has been collected from the Mother Care Franchise

Store, Kaniha as well as from the official website of Mother Care at

www.mothercare.com

Research Methodology:-

The study is mainly based only on secondary data.

The secondary data sources include the office manuals, internet website and

class books.

Data collections are subject to qualitative and quantitative in nature.

Sources of Data Collection:-

Annual Report of Mother Care

Study Materials of Mother Care

Internet Websites:

1. www.mothercare.com

Limitations of the study:-

The geographical area under study was limited to Kaniha which led to the

study`s focus to be confined only to Kaniha region.

There is no scope for interviewing area managers and officers at the zonal

and head office level which sometimes was felt essential while undertaking

the study.


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CHAPTER 2


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Company Profile

Type Public (LSE: MTC)

Industry Retail

Founded 1961

Headquarter

s

Cherry Tree Road, Watford,

Hertfordshire

Key peopleIan Peacock(Chairmanof the board),

Ben Gordon(CEO)

Revenue 723.6 million (2009)

Operating

income 37.2 million (2009)

Profit 30.3 million (2009)

Employees 7,715 (2009)

Subsidiaries Early Learning Centre

Website www.mothercare.com

Mothercare plc (LSE: MTC) is aBritishretailerwhich specialises in products forexpectantmothersand in general merchandise for children up to 8 years old. It is listed on theLondon

Stock Exchange and is a constituent of theFTSE 250 Index.
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=MTChttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Watfordhttp://en.wikipedia.org/wiki/Hertfordshirehttp://en.wikipedia.org/w/index.php?title=Ian_Peacock_(businessman)&action=edit&redlink=1http://en.wikipedia.org/wiki/Chair_(official)http://en.wikipedia.org/wiki/Chair_(official)http://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/w/index.php?title=Ben_Gordon_(businessman)&action=edit&redlink=1http://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Early_Learning_Centrehttp://en.wikipedia.org/wiki/Websitehttp://www.mothercare.com/http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=MTChttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Pregnancyhttp://en.wikipedia.org/wiki/Pregnancyhttp://en.wikipedia.org/wiki/Pregnancyhttp://en.wikipedia.org/wiki/Pregnancyhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/FTSE_250_Indexhttp://en.wikipedia.org/wiki/FTSE_250_Indexhttp://en.wikipedia.org/wiki/File:Mothercare.svghttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=MTChttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Watfordhttp://en.wikipedia.org/wiki/Hertfordshirehttp://en.wikipedia.org/w/index.php?title=Ian_Peacock_(businessman)&action=edit&redlink=1http://en.wikipedia.org/wiki/Chair_(official)http://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/w/index.php?title=Ben_Gordon_(businessman)&action=edit&redlink=1http://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Early_Learning_Centrehttp://en.wikipedia.org/wiki/Websitehttp://www.mothercare.com/http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=MTChttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Pregnancyhttp://en.wikipedia.org/wiki/Pregnancyhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/FTSE_250_Index


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History

The Company was founded by the entrepreneurSelim Zilkha in 1961.It was first listed on the

London Stock Exchange in 1972.

In 1982 it merged withHabitatto form Habitat Mothercare plc and in 1986 Habitat Mothercare

plc merged withBritish Home Storesto form Storehouse plc. It boughtChildren's WorldfromBoots in 1996, and rebranded all of their superstores Mothercare World stores. In 2000 the Bhs

stores were sold toPhilip Green[3] and Storehouse reverted to the Mothercare brand.

Mothercare agreed to buy theEarly Learning Centre(ELC) in April 2007 for 85 million.

In 2007 Mothercare launchedGurgle, a pregnancy and parenting social networking website. In

November 2009 Mothercare acquired the 50% of Gurgle that it did not already own.

In July 2010, Mothercare bought the trademark and brand of privately owned rival Blooming

Marvellous

Operations

The Company operates online, on thehigh streetand out of town, and in November 2009 had

over 1,060 stores worldwide of which 389 were in the UK and 671 were abroad in 38 othercountries.

Our aim is to build the Mothercare group into the world's leading specialist retailer of

parenting and children's products. The acquisition of the Early Learning Centre in June 2007was a key step in the development of this proposition. The group's aspirations will be achieved

through:

developing innovative and exciting own-brand products under both theMothercare and Early Learning Centre brands;

the best in class expertise and specialism of our staff; and

the successful delivery of the growth strategy set out below.

growth strategy

The growth strategy of the Mothercare group is focused on four key levers that will deliver thepotential of the Mothercare and Early Learning Centre brands.

maximising the synergies from the integration of the Early Learning Centre;
http://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Selim_Zilkhahttp://en.wikipedia.org/wiki/Selim_Zilkhahttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Habitat_(retailer)http://en.wikipedia.org/wiki/British_Home_Storeshttp://en.wikipedia.org/wiki/British_Home_Storeshttp://en.wikipedia.org/wiki/Storehouse_plchttp://en.wikipedia.org/wiki/Storehouse_plchttp://en.wikipedia.org/wiki/Children's_World_(toystore)http://en.wikipedia.org/wiki/Boots_Grouphttp://en.wikipedia.org/wiki/Philip_Greenhttp://en.wikipedia.org/wiki/Philip_Greenhttp://en.wikipedia.org/wiki/Mothercare#cite_note-ukbp-2http://en.wikipedia.org/wiki/Philip_Greenhttp://en.wikipedia.org/wiki/Early_Learning_Centrehttp://en.wikipedia.org/wiki/Early_Learning_Centrehttp://en.wikipedia.org/wiki/Gurglehttp://en.wikipedia.org/wiki/Gurglehttp://en.wikipedia.org/wiki/Onlinehttp://en.wikipedia.org/wiki/High_Streethttp://en.wikipedia.org/wiki/High_Streethttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Selim_Zilkhahttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Habitat_(retailer)http://en.wikipedia.org/wiki/British_Home_Storeshttp://en.wikipedia.org/wiki/Storehouse_plchttp://en.wikipedia.org/wiki/Children's_World_(toystore)http://en.wikipedia.org/wiki/Boots_Grouphttp://en.wikipedia.org/wiki/Philip_Greenhttp://en.wikipedia.org/wiki/Mothercare#cite_note-ukbp-2http://en.wikipedia.org/wiki/Early_Learning_Centrehttp://en.wikipedia.org/wiki/Gurglehttp://en.wikipedia.org/wiki/Onlinehttp://en.wikipedia.org/wiki/High_Street


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restructuring the combined Mothercare and Early Learning Centre propertyportfolio;

continuing the rapid growth of Direct; and driving the international reach of the Mothercare and Early Learning Centre

brands.

CHAPTER 3


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Methods of Data Collection

Data-collection techniques allow us tosystematically collect information about our objects of

study (people, objects, phenomena) and about the settings in which they occur.

In the collection of data we have to be systematic. If data are collected haphazardly, it will bedifficult to answer our research questions in a conclusive way.

Example:During a nutrition survey three different weighing scales were used in three villages.

The researchers did not record which scales were used in which village. After completion of the

survey it was discovered that the scales were not standardised and indicated different weightswhen weighing the same child. It was therefore impossible to conclude in which village

malnutrition was most prevalent.

Various data collection techniques can be used such as:

Using available information

Observing

Interviewing (face-to-face)

Administering written questionnaires

Focus group discussions

Projective techniques, mapping, scaling

Method of data collection used

Using available information

Usually there is a large amount of data that has already been collected by others, although itmay not necessarily have been analysed or published. Locating these sources and retrieving the

information is a good starting point in any data collection effort.

For example, analysis of the information routinely collected by health facilities can be very

useful for identifying problems in certain interventions or in flows of drug supply, or foridentifying increases in the incidence of certain diseases.


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Analysis of health information system data, census data, unpublished reports and publications in

archives and libraries or in offices at the various levels of health and health-related services,

may be a study in itself. Usually, however, it forms part of a study in which other data collectiontechniques are also used.

The use ofkey informants is another important technique to gain access to availableinformation. Key informants could be knowledgeable community leaders or health staff at

various levels and one or two informative members of the target group (e.g., adolescents ontheir sexual behaviour). They can be involved in various stages of the research, from the

statement of the problem to analysis of the data and development of recommendations. Other

sources of available data are newspapers and publishedcase histories, e.g., patients sufferingfrom serious diseases, or their relatives, telling their experiences and how they cope.

Note:In order to retrieve the data from available sources, the researcher will have to design an

instrument such as a checklist or compilation sheet. In designing such instruments, it is

important to inspect the layout of the source documents from which the data is to be extracted.

For health information system (HIS) data, for example, the data compilation sheet should bedesigned in such a way that the items of data can be transferred in the order in which the items

appear in the source document. This will save time and reduce error.

The advantage of using existing data is that collection is inexpensive. However, it is sometimesdifficult to gain access to the records or reports required, and the data may not always be

complete and precise enough, or too disorganised.

Advantages and disadvantages of data collection method used

Advantages:-

Is inexpensive because data is already there.

Permits examination of trends over the past.

Disadvantages:-

Data is not always easily accessible.

Ethical issues concerning confidentiality may rise.

Information may be imprecise or incomplete.

BIAS IN INFORMATION COLLECTION

BIAS in information collection is a distortion in the collected data so that it does not represent

reality.

There are so many bias in collection of data but the bias which can occur in the research donehere with the help of specific data collection method is described below:-


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Information bias:

Sometimes the information itself has weaknesses. Medical records may have many blanks or be

unreadable. This tells something about the quality of the data and has to be recorded. Forexample, in a TB defaulter study the percentage of defaulters with an incomplete or missing

address should be calculated.

Another common information bias is due to gaps in peoples memory; this is called memory or

recall bias. A mother may not remember all details of her childs last diarrhoea episode and ofthe treatment she gave two or three months afterwards. For such common diseases it is

advisable to limit the period of recall, asking, for example, Has your child had diarrhoea over

the past two weeks?

Note:

All these potential biases will threaten the validity and reliability of your study. By being aware

of them it is possible, to a certain extent, to prevent them. If the researcher does not fullysucceed, it is important to report honestly in what ways the data may be biased.

Data collection techniques and tools used:

Checklists

Data compilation forms.


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CHAPTER 4


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INTRODUCTION TO PERFORMANCE

APPRAISAL

PERFORMANCE:

Performance may be defined as the accomplishment of a

given task measured against present standards of

accuracy, completeness, cost and speed and to act in

accord with the requirements or obligat ions of the

organization.

In other words it is the act of carrying out various activities by the

employees of an organization for the purpose of achieving the goals ofthe organization.

APPRAISAL:

It is the evaluation of worth, quality or merit of the employees of anorganization over a period.

PERFORMANCE APPRAISAL:

Performance appraisal means systematic evaluation ofthe personality and per formance o f each employee by h is


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super iors or some o ther persons who are famil iar with the ir

performance. In other words, performance appraisal is a formal, structured system of measuring and evaluating an employees job

related behaviors and outcomes to discover how the employee is

presently performing and how he can perform effectivel y in the future.it is the development process for the appraisee where appraiser plays

a very important role to enhance the capabili t ies of the appraise toach ieve the expec ted l evel s o f job per formance for the whole

unit/department/off ice/organizat ion. I t can focus every persons

attention on the companys mission, vision, and values.Performance appraisal can be:1. Systematic:

The appraisal is systematic when it evaluates all performances inthe same manner, utilizing the same approaches so that appraisal of

different persons is comparable.

2. Objective:

I t attempts at accurate measurement of performance by trying to

eliminate human biases and prejudices.

REASONS FOR THE EXISTENCE OF PERFORMANCE

APPRAISAL SYSTEM IN AN ORGANIZATION:

The important reasons for benefits which justi fy the existence of a

system of performance appraisal in an enterprise are as under:

A good system of performance appraisal helps the supervisor toevaluate the performance of his employees systematically and

periodically.

It also helps him to assign that work to individuals for which

they are best suited.

Per formance rat ing helps in guiding and correct ing o f

employees.

The supervisor may use the results of rating for the purpose of

constructively guiding employees in the efficient performanceof work.

The ability of the staff can be recognized and can be

adequately rewarded by giving them special increments.


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Rating can be used to evaluate the effectiveness of training

programmers.

Weaknesses of employees are revealed by merit rating and the

training programmers can be modified accordingly.

Performance appraisal provides an incentive to the employeesto better their performance in a bid to improve their rating

over others.

Systematic appraisal wil l prevent grievances and developconfidence amongst the employees if they are convinced of the

impartial basis of evaluation.

The records of merit rating are available in permanent form to

pro tect the management aga inst subsequen t charges o f

d iscr iminat ion which might be leveled by the t rade unionleaders.

WHEN PERFORMANCE APPRAISAL IS DONE?

Appraisal should be a continuing and ongoing process drawntogether by formal meetings at regular intervals that, usually, take

place every six or twelve months.WHO DOES THE APPRAISAL?

Generally the appraiser is the immediate superior of the man to be

appraised. He is most familiar with the employees work and is incontact with him and so he is considered to be able to appraise him

well. The method which is used to do the appraisal decides whoshould be the appraiser.

WHO IS THE APPRAISEE?

All the employees of the organization are apprised.

Appraise should:

Have a clear picture of what is expected of them.

Be able to discuss priorities. Gain a platform to remove confusion when overload occurs.


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Receive feedback on their performance.

Be heard and respected. Be offered constructive guidance on attaining agreed goals.

Receive help in constructing personal development plans and

Targets. Take ownership of their performance.

PROCESS:


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1. ESTABLISHING PERFORMANCE STANDARDSThe 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 theactual performance of the employees. This step requires sett ing the


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5. 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 oncommunication and l istening. The resul ts, the problems and the

possible solutions are discussed with the aim of problem solving andreaching 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 theproblems faced and motivate the employees to perform better.

6. DECISION MAKING

The last step of the process is to take decisions which can be takeneither to improve the performance of the employees, take the requiredcorrect ive ac tions, or the related HR dec is ions l ike rewards ,

promotions, demotions, transfers etc.

APPROACHES TO PERFORMANCE APPRAISAL:

TRADITIONAL APPROACH

Traditionally, performance appraisal has been used as just a method

for determining and justifying the salaries of the employees. Than itbegan to be used a tool for determining rewards (a rise in the pay)

and punishments (a cut in the pay) for the past performance of the

employees.This approach was a past oriented approach which focused only on

the past performance of the employees i .e. during a past specified

period of t ime. This approach did not consider the developmentalaspects of the employee performance i.e. his training and development

needs or career developmental possibilities. The primary concern of

the traditional approach is to judge the performance of theorganization as a whole by the past performances of its employees.

Therefore, this approach is also called as the overall approach. In1950s the performance appraisal was recognized as a complete

system in itself and the Modern Approach to performance appraisal

was developed.


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MODERN APPROACH

The modern approach to performance development has made theperformance appraisal process more formal and structured. Now, the

performance appraisal is taken as a tool to identify better performing

employees from others, employees training needs, career development paths, rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in theorganizations. The results of performance appraisals are used to take

various other HR decisions l ike promotions, demotions, transfers,

training and development, reward outcomes. The modern approach to performance appraisals includes a feedback process that helps to

strengthen the relationships between superiors and subordinates and

improve communication throughout the organization. This recognizesemployees as individuals and focuses on their development.

TRADITIONAL METHODS:

Unstructured appraisal

Employee Ranking

Forced Distribution

Graphic Rating Scales

Critical Incident Method

Check-list

Field Review

Unstructured appraisal:

Under this, the appraiser writes down his impression about the

person being apprised in an unstructured way. However, in some

organizations, comments are required to be grouped under specific

headings such as quality of job performance, reasons for specific job behavior, personali ty trai ts, and development needs. This

system is highly subjective and has gat i ts merit in i ts simplicity

and is still in use especially in the small firms.

Employee Ranking:

Ranking is a simple process of placing employees in a

rank according to their job performance. It permits


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comparison of al l employees in any single rating group

regardless of the type of work.

All workers are judged on the same factors and they are rated on the

overall basis with reference to their job performance instead of

individual assessment of traits. In this way, the best is placed first inthe rank and the poorest occupies the last rank. The difficulty of this

sys tem is that the rater i s asked to rank employees on certa indesirable traits. The other difficult with this method is that it does not

indicate the degree of difference between the first man and the second

man, and so on.

Forced Distribution:

Some appraisers suffer from a constant error,i.e, they either rate allworkers as excellent, average or poor. They fail to evaluate the poor,

average or excellent employees clearly. This system is devised to forcethe appraiser to fit the employees being apprised into predetermined

ranges o f sca le . Th is sys tem i s based on the presumpt ion tha t

employees can be given equal ratings. This system is based on the presumption that employees can be divided into five points scale of

outstanding, above average, average, below average and poor.

This system is easy to understand and administer. the objective ofthis technique i s to spread out rat ings in the form of a normal

distribution which is open to criticism.

Graphic Rating Scales:

The term used to define the oldest and most widely used performanceappraisal method. The evaluators are given a graph and asked to rate

the employees on each o f the character is ti cs . The number o f

characteristics can vary from one to one hundred. The rating can be amatrix of boxes for the evaluator to check off or a bar graph where

the evaluator checked o ff a locat ion relat ive to the evaluatorsrating.The selection of factors to be measured on the graphic ratingscale is an important point under this system.

These are of two types:i) Characteristics, such as initiative and dependability.

ii) Contributions such as quantity and quality of work.


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Critical Incident Method:

The term used to describe a method of performance

appraisal that made lists of statements of very effective

and very ineffective behavior for employees. The l ists

have been combined into categories, which vary with the

job. Once the categor ies had been developed and

statements of effective and ineffective behavior had been

provided, the evaluator prepared a log for each

employee. During the evaluation period, the evaluator

recorded examples of critical behaviors in each of the

categories, and the log has been use to evaluate the

employee at the end of the evaluation period.

Field Review:

Under this method the supervisors are interviewed by an expert from

the personnel department. The expert questions the supervisors toobtain all the pertinent information on each employee and takes notes.

Thus there i s no rat ing form with factors or degree, but overall

ratings are obtained. The workers are usually classif ied into threecategories as outstanding, satisfactory and unsatisfactory.

The interviewer questions the supervisor about the requirements of

each job in his unit and about the performance of each man in his job.The supervisor is required to give his opinion about the progress of

his subordinates, the level of the performance of each subordinate, his

weakness, good points, outstanding abili ty, promotabili ty, and thepossible plans of action in cases requiring further consideration.

This method relieves the supervisors of the tedious writing work of filling in appraisal forms. It also ensures a greater likelihood that the

supervisors will give adequate attention to the appraisals because the

personnel department largely controls the process.

MODERN METHODS


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Management by Objectives:

It was Peter Ducker who proposed goal setting approach

to performance appraisal which he called Management

by Objectives and Self Control.The management by objectives performance appraisal

method has the supervisor and employee get together to

set object ives in quantifiable terms. The appraisal

method has worked to eliminate communication problems

by the establishment of regular meetings, emphasizing

results, and by being an ongoing process where new

objectives have been established and old objectives had

been modified as necessary in light of changedconditions.

MBO process:

-set organizational goals.

-define performance target.-performance review

-feed back.

Behavioral Anchored Rating Scales (BARS):

It is designed to identify the critical areas of

performance for a job, and to describe the more effective

and less ef fect ive job behavior for getting results.

Performance is evaluated by asking the rater to record

specific observable job behaviors of an employee and

then to compare these observations with a behaviorally

anchored rating scale.

This rating method combines elements of the Traditional

Rating Scales and Critical Incident Method


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The term used to describe a performance rating that

focused on specific behaviors or sets as indicators of

effective or ineffect ive performance, rather than on

broadly stated adject ives such as "average, above

average, or below average". Other variations were:

Behavioral observation scales

Behavioral expectations scales

Numerically anchored rating scales

360 degree performance appraisal:

360 degree feedback is the most comprehensive and

costly type of appraisal . It includes self ratings, peer

review, and upward assessments; feedback is sought

from everyone. It gives people a chance to know how

they are seen by others; to see their skills and style; and

may improve communications between people.

It is the most comprehensive appraisal where the

feedback about the employees performance comes

from all the sources that come in contact with theemployee on his job.

360 degree feedback helps by bringing out every aspect

of an employee's l ife. Cooperation with people outside

their department, helpfulness towards customers and

vendors, etc. may not be rewarded by other types of

appraisal. This system also helps those who have

conflicts with their manager.

360 degree feedback general ly has high employee

involvement and credibil ity; may have the strongest

impact on behavior and performance; and may greatly

increase communication and shared goals. It provides

people with a good all-around perspective.


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360 degree feedback may be given direct ly to the

employees, who have the option of discussing them with

their managers; or it may be given to the managers for

use in a feedback meeting. Whichever method is chosen,

training for the managers and rates is necessary.

Its Four integral components-

a) Self Appraisal

b) Superiors Appraisalc) Subordinates Appraisal

d) Peer Appraisal

PURPOSE OF PERFORMANCE APPRAISAL:

Performance appraisal serves over a dozen different

organizational purposes:

Providing feedback to employees about their performance

Facilitating Promotion Decisions

Facilitating Layoff or Downsizing Decisions

Encouraging Performance Improvement

Motivating Superior Performance

Setting and Measuring Goals Counseling Poor Performers

Determining Compensation Changes

Encouraging Coaching and Mentoring

Supporting Manpower Planning

Determining Individual Training and Development Needs

Determining Organizational Training and DevelopmentNeeds

BENEFITS OF PERFORMANCE APPRAISAL :For the individual, performance appraisal is an

opportunity to: -

understand your role and achieve c lari ty in terms o f what i s

expected of you.


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gai n feedback of their perf ormance, and recognize good

performance. identify your strengths and how they could be best utilized

plan your development with the support of the organization

improve your working relationships receive support to overcome any difficulties

For the organization, performance appraisal is an opportunity to: -

communicate organizational plans and objectives

agree key targets for employees support improvements in performance

develop potential

help employees to overcome difficulties receive feedback which may help to improve organizat ional

performance

Performance Appraisal in mothercare

[Performance Management System]

Philosophy of Performance Management System

To build a culture of performance by aligning individual and organizationalobjectives and encouraging open communication and continuous feedback.

Objectives

To accomplish the overall organizational vision and missionby linking individualperformance to company objectives

To cascade companys strategic goals to individual level To promote professional excellence

To encourage two-way communication between theexecutive and the reporting officer and bring abouttransparency in the performance assessment process

To translate future skill requirements of the organizationinto individual development plans

To identify high performers and recognize them throughrewards and incentives, and


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PMS Cycle(PACE)

PACE


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PMS Calender


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PMS ProcessThe PMS process is broadly divided into the following stages

Performance Planning

Mid Year Review

Annual Assessment Normalization

Feedback, Coaching and Counseling

Performance PlanningPerformance Planning is the process of:

Defining expectations i.e. the work to be done, theresults/targets to be achieved and skills/competenciesneeded to achieve these objectives

Setting Measures and Targets, determining prioritiesand weight ages of results to be achieved

Identifying and allocating appropriate resources (such asmanpower, tools, training, budget etc.) to enable theexecutive to achieve the targets

While defining work objectives and measures, it is necessaryto ensure that:


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Goals/ Targets/ Objectives are SMART (Specific, Measurable,

Agreed, Realistic and Time bound)

Agreement on mutually agreeable and achievableperformance targets is arrived at after sufficient discussionbetween reporting officer and executive has taken place.

Mid Year Review Performance management is not an event but an ongoing process. Mid yearreviews help in the following ways:

Updating the status of targets i.e. progress review

Identifying areas for mid-course correction

Revisiting KPAs and goals, if necessary

Assessing resource and skill requirements affecting theindividuals performance

Discussion and feedback on functional competencies,managerial competencies,

potential competencies and core values actualization

Providing early warnings of non-performance, i.e. avoidingyear end surprises

Annual AssessmentThe objectives of Annual Assessment are to:

Discuss and arrive at an assessment of performance with respect to agreed targets

Assess the competencies, potential and core values actualization by the individualNormalizationThe objectives of the Normalization System in PMS are to:

Ensure parity and integrity by minimizing variation in ratingby different reporting officers across various departmentsand locations

Enhance objectivity and transparency in the appraisalsystem

To view individual performance from the perspective of

organizational achievement.Feedback, Coaching and CounselingTo enhance development orientation, reinforce good performance on time and

provide guidance to individuals across the organization; feedback, coaching andcounseling are provided.

Communicating the final performance results of the executive and providing

Developmental feedback are critical to this process.


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The PMS FormThe PMS form is divided into seven parts

1. Performance Planning and Assessment (Part -I)a) Dashboard of Key Performance Areas (KPAs) (Part IA)

b) Details of KPA (Part IA)c) Mid Year Review (Part IB)d) Revised KPAs (in case of change during mid-year review) (Part IC)

2. Competency Assessment (Part-II)a) Functional/ Technical Competencies (Part IIA)

b) Managerial Competencies (Part IIB)

3. Core Values (Part-III)4. Potential Competencies (Part-IV)

5. Special Achievements (Part V)

6. Total Marks (Part VI)

7. Individual Training and Development Plan (Part-VII)Submission of PMS forms after Mid-year Review

After completion of Mid-year Review, the completed PMS forms shall be

submitted to the concerned HR by the reporting officer within the deadlines set inthe calendar.

Normalization Process


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Feedback & Communication


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FeedbaExecutive promoted during the year:

a. Executives promoted during the assessment year would be issued new

PMS forms, if promotion is accompanied by change in role-band orchange of job responsibility or transfer.

b. If an executive is promoted within the same role band and continues to

remain in the same department under the same reporting officer with

substantially the same responsibilities and KPAs, then the existing PMSformat will continue to be used. At the end of the year, he is assessed on

the same KPAs and the total score for normalisation purpose is also

derived from it.

The executive will be normalised in the cluster applicable after promotion.

If some responsibilities are added as a result of promotion, the same canbe incorporated in the PMS format during

Furthermore, the executive will be normalised in a cluster as per his new

grade and function.


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The total score for the year would be calculated using the same 3-month

minimum service principle.

The respective HR departments have to ensure that PMS forms are filled and

signed off if an executive has served for a minimum period of 3 months either inthe location or under a particular reporting officer or within a role band. The

release order for the executive/reporting officer will be issued subject to thefulfilment of this.

Thereafter, HR needs to coordinate with the other HR departments where theexecutive has been transferred to communicate the proportionate weightage of

total score to be used for calculating the final score.

Audit of PMS

Guidelines

To achieve the objectives of the PMS, an audit procedure has been put in place to

ensure that all users follow PMS guidelines consistently.

Role of Audit Team

The audits are to be carried out on a sample basis across plants, regions

Corporate Centre using the format provide in the annexure.

Area Audit Team Report Submitted to

Mother care Head of O&M

Head of HR

Head of HR for the

respective Region

Regions Head of OS

Head of P&S/P&M Head of HR

Corporate HRD

Corporate Centre Nominated member from Corporate

Nominated member from HR

All nominated members will not be


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Corporate HRD

CHAPTER 5


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CONCLUSION

From the analysis of the responds of the employees regarding the

performance appraisal system, we arrive at t he following conclusions:

That all the employees at the organizat ion are aware of the

performance appraisal system present in the organization andthey deem i t necessary for assessing the performance of the

executives. The appraisal system followed in the organization is

sat is factory as far as i ts employees are concerned and i sconcerned as a useful proposition for the employees.

In short, each and every employee in the organization posses an

overal l pos it ive v iew towards the sys tem o f per formanceappraisal.

The performance appraisal as designed and fol lowed by the

organization satisfies all those objectives for which the whole

system of appraisal has been conceptualized.


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That the system of appraisal enhances the relationship between

the appraiser and appraisee through mutual trust, performance

review discussion, sharing the views and ideas etc.

Almost all the employees in the organization hold the view thatthe appraisal system practiced by the organization reflects the

performance of the appraisee, whether good or bad, and sharing

the results with the appraisee helps to enhance the performanceof the employee in future.

Practicing appraisal system by the organization helps to boost

up the performance of the employees which in turn results in thesuccess of the organization.

Whereas the appra isal sys tem i s very much use fu l for i ts

employees as it provides the appraisee the opportunity for self

rev iew, expressing h is development needs, d iscovering h is po tent ia l and focus ing c lear ly on h is own s trengths and

weaknesses. The appraisal system followed by the organizationis mainly directed towards evaluating the performance

personality traits and managerial ski lls and ident i fying the

training needs of the employees.

As according to the employees of the organization themanagement is serious about undertaking the appraisal of the

employees but they do not give the requisite consideration to the

f indings as obtained by the appraisal programme. Neither dothey fol low up seriously the training needs ident i fied during

appraisal nor do they conduct the performance review discussion

with care. Worsening the system is the fact that no sui tablerewards or benefits are given to those employees who excel in

their work and g ives a bet ter performance as compared toothers. This reduces the enthusiasm of the employee and which

affects their working state of mind.

The employees of the organization do prefer the open system of

appraisal as against the confidential system of appraising theappraisee by the appraiser.


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A big and successful organization such as mother care attributes

its success to i ts effective and efficient employees possessing

high caliber and giving performance as per expectations.

The employees of mother care are more responsible towardstheir organization. To maintain the efficiency of the employees

and to motivate and encourage them, the organization needs to

keep track to their employees and one of the ways is to appraisethe performance of the employees.

Although the organization has a well designed appraisal system

which is fruitful for the organization, certain drawbacks of themanagements reduces the effectiveness of the organization. The

main drawbacks of the organizat ion are i ts casual att itude

towards the post-appraisal system and the absence of 360 degreePerformance appraisal system.

SUGGESTIONS

The organization can include the following suggestions:

Ensure frequent two-way communication

Mutually agree upon goals

Evaluate its own performance first

Document performance between appraisal meetings

Preparation and assumptions of the executives discussion

Ask for executives opinion

Present its assessment openly, clearly and rationally


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Focus on performance, not personality

Introduce 360 degree performance appraisal system.

Bibliography

Annual Report of Mother Care

Study Materials of Mother Care

Internet Website: www.mothercare.com

Documents

vasudha agrawal