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CHAPTER-I
INTRODUCTION
An organizations goals can be achieved only when people put in their best.
How to ascertain whether an employee has shown his or her best performance on a given job?
The answer is performance appraisal. Employee assessment is one of the fundamental jobs of
HRM, but not an easy one though.
Performance appraisal may e understood as the assessment of an individuals performance
in a systematic way, the performance being measured against such factors as job knowledge,
quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-
operation, judgment, versatility, health and the like. Assessment should not be confined to past
performance alone. Potentials of the employee for future performance must also be assessed.The other terms used for performance appraisal are: performance rating, employee assessment,
employee performance review, personnel appraisal, performance evaluation and merit rating.
Job analysis sets out requirements. Which are translated into performance standards,
which in turn form the basis for performance appraisal. Performance management refers to the
entire process of appraising performance, giving feedback to the employees and offering
rewards or punishments to them.
Objectives of performance appraisal
To effect promotions based on competence and performance.
To confirm the services of probationary employees upon their completing the
probationary period of satisfactorily
To assess the training and development needs of employees.
To decide upon a pay raise where regular pay scales have not been fixed
To let the employees know where they stand insofar as their performance is concerned
and to assist them with constructive criticism and guidance for the purpose of their
development. To improve communication, performance appraisal provides a format for dialogue
between the superior and the subordinate and improves understanding of personal goals
and concerns. This can also have the effect of increasing the trust between the rater and
rate
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Performance appraisal can be used to determine whether HR programmes such as
selection, training and transfers have been effective or not.
Performance appraisal and Competitive Advantage
The objective of performance appraisal, point out the purposes which such an exercise
seeks to meet. What needs emphasis is that performance evaluation contributes to firms
competitive strength. Besides encouraging high levels of performance, the evaluation system
helps identify employees with potential, reward performance, the evaluation system helps
identify employees with potential, reward performance equitably and determine employees
need for training. Specifically, performance appraisal helps an organization gain competitive
edge in the following ways
Improving performance
Making correct decisions Ensuring legal compliance
Minimizing job dissatisfaction and turnover
Consistency between organization strategy and behavior
Raters
Raters can be immediate supervisors, specialists from the HR department, subordinates, peers,
committees clients self appraisal or a combination of several.
Method of Appraisal
Numerous methods have been devised to measure the quantity and quality of employees job
performance. Broadly all the approaches to appraisal can be classified into past oriented
methods and future oriented methods.
Rating scales:
This is simplest and most popular technique for appraising employee performance. The typical
rating scale system consist numerical scales, each representing a job related performance
criterion
Checklist
Under this method a checklist of statements on traits of the employee and his or her jobs is
prepared in two column a. yes b. no
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Critical incidents method
Approach focuses on certain critical behaviors of an employee that make all the difference
between effective and non effective performance of a job. Such incident are recorded by the
superior as and hen they occur
BARS
The scales represent a range of descriptive statements of behavior varying from the least to
most effective
Management by objectives
First step to establish the goals each subordinate is to attain
Second step involves setting the performance standard for the subordinates in a previous
arrangement time period
Third step the actual level of goal attainment is compared with the goals agreed upon
The final step involves establishing new goals and possibly, new strategies for goals not
previous attained.
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1.1 INDUSTRY PROFILE
The Flavours and Fragrances Industry in India Industry
Fragrance and flavor manufacturing is not complex, involving mainly the blending ofaroma chemicals. F&F houses have therefore been focusing on different areas in perfume and
flavor synthesis technology such as countering specific malodors like sweat or encapsulation
of flavors for timed release. This has been one avenue that F&F houses are using to maintain
existing customers or gain higher prices for better performance. F&F houses are also
focusing on developing captive materials that can provide them an edge in synthesis as well
as discourage imitation. Another trend is to gradually move into long-term arrangements with
manufacturers whereby each fragrance or flavor brief is only opened to two or three houses.
In exchange for an assured chance to gain a certain amount of global business, F&F houses
provide manufacturers with large discounts and first look rights at exclusive cutting-edge
fragrance and flavor styles. This core-listing process is gradually being adopted across brands
by most international manufacturers such as Unilever, Frito-Lays, Proctor & Gamble (P&G),
Johnson & Johnson (J&J) etc, making it very difficult for a newer supplier to break into such
customers.
A key factor in this industry is the presence of stringent safety norms that often restrict
the use of many chemicals. Apart from Indian government regulations, the flavor industry is
self-regulated by the Flavor and Extract Manufacturers Associations (FEMA) GRAS
regulations while the fragrance industry is regulated by the International Fragrance Association
(IFRA). Besides these regulations, many large customers also have their own regulatory
departments, which prohibit the use of certain chemicals and often require the substitution of
more expensive materials, such as macro cyclic or polycyclic musk instead of nitrous, which
were used earlier.
Inventory management is yet another challenge that F&F houses are trying to address
with more streamlined systems. While the total number of flavor and fragrance raw materials
available may be more than 3000, most large houses typically have about 1000 materials on
their standard palette for perfumers and flavorists to use. Maintaining sufficient quantities of all
these materials at all times without accurate forecasting is impossible. This coupled with a high
dependence on imports accounts for the often long lead times (sometimes six to eight weeks) of
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fragrance and flavor supply, which can be critical for end users. As F&F houses move into
closer relationships with end users, these issues are being addressed partially through more
accurate estimates of materials required. Many of the large F&F houses also work closely with
Indian suppliers to upgrade the quality of their raw materials to international standards, trying
to bring down costs as well as lead times.
The Outlook
To conclude, while the F&F industry in India is facing tougher times on account of
rising input costs and dropping prices, there is still absolute growth to come as far as numbers
are concerned. As consumers graduate from using basic soaps and detergents to higher end
products such as skin creams, lotions, hair gels and other applications, the demand for more
sophisticated and expensive fragrances will increase. Air care applications are also seeing
increased growth as consumers switch to more expensive insecticides such as liquidators, and
also start fragrancing home and office areas with fresheners. In the flavor market too, as
processed foods grow at over 12% on an average, the demand for flavors in the savory and
beverage application areas is growing. This is fuelled by rising disposable incomes in urban
areas and an increased willingness to consume store-bought foods. Currently, due to the lack of
a continuous frozen food chain from manufacturer to retailer in most areas, processed food in
the meat, poultry and seafood segment is non-existent. This is unlikely to change in the short
term.
The competitive edge will come through captive ingredients and technologies that make
one flavor or fragrance relatively exclusive and difficult to copy, thereby extending its shelf
life. Cost control will continue to be a critical factor for F&F houses in the next 3 to 5 years,
until they manage to bring around a marked reduction in the import content and are able to
achieve consistent supply quality from cost-effective Indian or Chinese sources.
INDUSTRY SEGMENTATION
F&F industry segmentation is based on the application areas for Flavours and fragrances and is
as given below.
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FLAVOURS:
Food Industry
1. Beverages (Liquor, Malted food Beverages, Fruit based, Colas, etc.)
2. Confectionery (Sweets, Chocolates, Candies, jam, jellies, chewing gums, Indian sweets, etc.)
3. Diary Products (Milk, Yoghurt, Frozen food, Ice creams, Cheese, etc.)
4. Bakery and Processed Foods, (Cakes, Flavored breads, Biscuits, Meat, Soups, Noodles, etc.)
5. Savory (Chips, Namkeen, Snacks, etc.)
Feed Industry
1. Pet Food,
2. Farm animal feed, etc.,
Tobacco
1. Cigarette (Smoking)
2. Gutka (Chewing)
3. Gudaku (Oral application)
4. Pan Masala, (Chewing)
Pharmaceutical Industry
1. Medicines
2. Health Food Supplements, etc.,
Mouth care
1. Toothpaste, Tooth powder.
2. Mouth rinse.
3. Mouth Fresheners.
4. Lip gel.
5. Lipsticks.
FRAGRANCES / FUNCTIONAL PRODUCTS
Personal Care
1. Toilet soaps.
2. Shampoos.
3. Hand wash.
4. Shower Gel.
5. Cosmetics.
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6. Hair Oils.
7. Hair styling products.
8. Body Talcum Powder.
9. Shaving Creams, Shaving Foams.
10. Deodorants.
Fabric Care
1. Laundry Soaps.
2. Synthetic Detergents (Bars, Powder, Liquids, etc.)
3. Fabric Conditioner.
Household Care
1. Household Cleaners (Glass cleaner, Surface cleaner, Dish wash, Toilet cleaner, etc)
2. Air Fresheners.
3. Candles.
4. Incense sticks.
5. Insect Repellents, Mosquito repellents.
FACTORS AFFECTING THE F&F INDUSTRY
Traditionally Flavours and fragrances commanded a high price due to the flavourist or
perfumers artistic ability and difficulty in creation. Flavours and fragrances now have very
similar requirements as consumer goods. It too requires investments in marketing and
presentation, for commercial success. This does not mean that flavors and fragrances are far
from artistic creation but merely states that commercial rules have to be followed during
creation while retaining the same quality followed in earlier times. Clients today believe
Flavours and fragrances to be simple mixtures of aromatic materials and not a harmonious
accord achieved with difficulty. Flavours and Fragrances are graded according to the price of
the raw material used to create them, as it is easy to decipher the composition with modern
analytical methods. The cost of creation, technical application and research, evaluation and
panel testing largely ignored in the calculations. Ironically, without hesitation one purchases an
marble carving or a canvas painting at exorbitant price, much more than the cost of the marble
stone or the cost of canvas and paint, but reluctant to spend similarly on a flavors and fragrance
purchase. In the last decade, prices offered to fragrance and flavors houses by FMCG
manufacturers to supply
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Flavours and fragrances have consistently gone down. Raw materials costs for manufacturing
FMCG are on the rise. FMCG manufacturers are unable to pass on the same to consumers by
increasing product costs. In view of this, price increases requested by flavors and fragrances
houses are strongly resisted by FMCG manufacturers ignoring the genuine concern of the F&F
industry affected by the overall increase in the prices of aroma and flavors chemicals that are
the building blocks of their products. Price increases and fluctuations in petrochemical industry
that are precursors in the manufacturing of aroma chemicals have also squeezed profit margins
substantially for the F&F industry. Flavor and fragrance market in the developed nations have
fully matured with sales almost stagnant. Global F&F industries in order to grow are
increasingly looking at developing nations, especially India, China and erstwhile USSR. The
Indian market is still in its nascent stage and there is a long way to traverse before it fully
matures. The lowering of margins have forced many global F&F manufacturers to look at India
and China as sourcing centers for essential oils, and for manufacturing quality aroma and
flavors chemicals required by their creative setups around the world. Fragrance and flavors
manufacturing is not complex oil and involves simple mixing and making blend of about 10 to
100 different chemical ingredients. On these, some may be natural and some synthetic.
Improving fragrance delivery systems using techniques like encapsulation, sustained release, or
using newer methods in counteracting specific malodors, etc., are some areas where F&F
houses are concentrating to maintain their existing business and to increase profit margins. The
development of captive aroma chemicals is another way larger F&F houses use to maintain
leadership position and prevent cheaper imitation of their fragrance creations. One major
method global FMCG manufacturers and F&F houses use is to make a long term purchase
arrangement among themselves which permit large discounts for FMCG manufacturer and in
lieu an assured amount of global business for the F&F houses. This core listing process
procedures adopted by most international FMCG manufacturers and F&F houses, effectively
thwarts attempts by Indian F&F manufacturers corner their existing business making these
exclusive only to the selected few.
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SAFETY RULES AND REGULATIONS
Another important factor in the F&F industry is the strict safety norms, restricting the
use of many chemicals, either due to governmental regulations or due to self-regulation by the
industry itself. For example, some fragrance ingredients are not permitted for use on grounds of
safety, while some others are restricted in their level of use in fragrances, depending on the
intended end-use. Products intended to remain on skin viz., leave-on products, such as body
lotions have stricter restrictions than those for products that are washed off the skin viz.
Household products (e.g. Floor Cleaners) for which there are little or no intentional skin
contact. The fragrance industry is guided by the IFRA (International Fragrance Research
Association)
Guidelines for fragrance ingredients as defined and published in the all flavorings
substances are regulated by legislation, issued by FDA. Government departments that control
the safety of foods is also responsible to control the safety of flavors used in the food products.
The flavor industry too over the years have accumulated a lot of information and data regarding
use, occurrence, biological properties and all the information have been used to carry out
independent safety evaluation by various experts.
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1.2 COMPANY PROFILE
Symrise is a global supplier of fragrances, flavorings, cosmetic active ingredients, and
raw materials as well as functional ingredients. Our clients include manufacturers of perfumes,
cosmetics and foods, the pharmaceutical industry and producers of nutritional supplements.
With a global market share of approx. 11%, we are the fourth largest supplier in the fragrances
and flavorings market.
Headquartered in Holzminden, Germany, Symrise is represented in over 35 countries
The Company is composed of two business divisions: Scent & Care and Flavor &
Nutrition.
The Scent & Care Division sells over 15,000 products in around 135 countries. Its
portfolio includes fragrance compositions, cosmetic ingredients, aroma chemicals and mint
products.
The Flavor & Nutrition Division offers a spectrum of over 15,000 products, which are
sold in 140 countries. Clients use its flavorings to manufacture foods and beverages. Our new
global Consumer Health business unit serves numerous different markets, including the
growing sector of food supplements and pharmaceutical products.
Our corporation has its headquarters in Holzminden, Germany, and is represented in
over 35 countries in Europe, Africa, the Middle East, Asia, and North and South America. Our
most important development centers are located in Germany, Brazil, China, France, Singapore
and the USA. Symrise employs a staff of 5,288 across the globe (as of December 31, 2010).
We work with our clients to develop new ideas and market-ready concepts for products
that form an indispensable part of everyday life. In doing so, we combine our insights into
consumer trends with cutting-edge technologies, focusing on innovative products that have
additional practical value for the consumer.
Our customers include large multinational groups of companies as well as important
regional and local manufacturers of foods, beverages, perfumes, cosmetics, personal care
products, cleaning products and detergents
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STRATEGY
Our strategic focus has made us fast, flexible and innovative. We are perceived tobe a high-performance competitor, to be a company that is driving change in the entire
industry.
Symrise is a company with a view to long term, clear targets and a coherent strategy that
we consistently pursue. Customer orientation, innovative strength and the favorable positioning
already achieved in promising markets give Symrise the potential to continuously increase its
value as an independent supplier for years to come.
Focusing on research and development, on new and innovative product concepts, on
product groups and on using innovation and creativity, we will meet consumers changing
needs and wishes and our clients requirements.
In our business activities, we strategically focus on the holistic aspects of Care and
Nutrition. In this way, we develop products and solutions which offer added functional value
both to consumers and to our customers, and which help our customers to successfully
differentiate their brands in the global Flavor & Fragrances market.
Our goal is to grow faster than the market every year with a clear focus on profitable
growth. In 2009, sales at Symrise grew by 3%. As in previous years, both business divisions
gained new core list positions, laying the foundations for future growth and a stronger market
position. We hold leading positions in certain market segments, among others in the synthesis
of nature-identical I-menthol and its derivatives and mint flavor compositions. Symrise holds a
leading position in the UV sun protection filter segment. Acquiring the perfume oil businesses
of Intercontinental Fragrances and Manheim Fragrances has made us a leading manufacturer ofair fresheners (air care market) and scented candles in the U.S. We expanded our position in the
U.S. flavorings market by acquiring the flavors business of Chr. Hansen in 2008. The
acquisition of Futura Labs in Egypt made us a market leader in that country for flavors and
compounds for the beverage industry.
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CORPORATE GOVERNANCE
Corporate Compliance that is, clear adherence to the legal systems of our countriesand sites is a basic prerequisite for sustainable economic activities in an internationally active
corporation like Symrise. At Symrise, the Corporate Compliance Department is run by the
Chief Compliance Officer and consists of Internal Audit, Corporate Social Responsibility,
Integrated Management, Product Compliance, and Complaint Management offices.
An in-house system of software-supported global document control makes sure that
standardized processes throughout the company are documented and made accessible to
employees. These processes include key functions such as Brief to Contract and Order toPayment, global guidelines, operating procedures, working procedures, tests, and analytical
methods.
Because of the geographic diversity of our company sites and the major variations in
local conditions that are a natural result this issue has been fully integrated at corporate level
as well as regional and local levels. In some countries and at some sites, there are also
Corporate Rules which go above and beyond national standards and set clear guidelines in
areas such as occupational safety and environmental concerns.
Symrise follows the recommendations of the German Corporate Governance Code.
Our own corporate governance measures have their roots in both this code and our in-house
Code of Conduct. It serves as an international and binding guideline on how all employees are
to interact with the companys stakeholders. There is an Integrity Hotline available to
employees in their local language at every site, allowing people to call for free and report any
violation of the code (anonymously if they choose).
Among other initiatives, Symrise has also established an Internet-based learning platform forcompliance issues; over 4,000 employees have already successfully completed a training
program on the Code of Conduct. Beyond that, the Symrise platform also offers a course on
preventing corruption and bribery.
BUSINESS DIVISIONS
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Our operating business is divided into two business divisions: Flavor & Nutrition and
Scent & Care. They each have their own research and development, purchasing, production,
quality control, marketing and sales departments, a system that allows us to accelerate our
internal processes. We aim to simplify procedures and make them customer-oriented and
pragmatic. We place great value on fast and flexible decision-making. Both business divisions
have divided their organization into four regions with separate regional heads:Europe, Africa
and the Middle East (EAME) North America Asia/Pacific Latin America.
Flavor & Nutrition
Our customers use the flavors we produce in liquid, powder, granulated or paste form
to make food and beverages. Our flavors give the products distinct tastes. We provide
individual flavors or complete solutions, which, apart from the actual aroma, can contain
additional functional raw materials, colorants or microencapsulated components. The new
Consumer Health application area caters to the growing food supplement and pharmaceutical
preparation markets, among others.
The business division Flavor & Nutrition includes the business unitsSweet,Savory, Beverages,
and Consumer Health.
Scent & Care
Fragrances
Perfume makers combine aromatic raw materials such as aroma chemicals and ethereal
oils into complex fragrance compositions (perfume oils). Symrise perfume oils are used in
perfumes (fine fragrances), in body-care products (hair-care products, washing lotions, skin
creams, and deodorants), and in household products (washing products)
Oral Care Symrise offers a full range of mint aromas and intermediate products for toothpaste,
oral care products and chewing gum.Life Essentials
The products manufactured by this business unit are used in skin care products, hair care
products, suntan lotions, and aftershave balsams, shower gels, washing lotions, antidandruff
shampoos and deodorants. The unique feature of Life Essentials is the combination of
conventional body care and plant-based bioactive ingredients.
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Aroma Molecules
These products, which exist in liquid or crystalline form, are used in various
applications. Nature-identical menthol is used in oral care products, chewing gums and shower
gels. Symrise uses aroma chemicals (intermediate products for perfume oils) to produce its
own perfume oils or sells them to customers who use them in their perfume oils.
1.3 STATEMENT OF PROBLEM
An Organization goal can be achieved only when people put in their best efforts. How to
ascertain whether an employee has shown his or her best performance on a given job. The
answer is performance appraisal, but how one may know how effective their performance
appraisal system.
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At present all organization has performance appraisal system which they will conduct each
year in order to review their employees performance or contribution to the growth of the
company. But poor appraisal system which has no motivation factor it will lead company
to downgrade and it will be difficult to identify the real performer
1.4. OBJECTIVE OF THE STUDY
Primary objective:
A study on identifying the effectiveness of performance appraisal system at Symrise
pvt ltd
Secondary objectives:
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To know the level of awareness on the existing performance appraisal system in the
company.
To understand the opinion of employees toward performance appraisal system
To identify the impact of performance appraisal on individual and organization
To know the rating system followed at Symrise pvt ltd
Suggestion toward improving the performance appraisal system in your organization.
1.5 SCOPE OF THE STUDY
The study has a vast scope as the feed back from the employees is collected from almost
all the departments namely:
Sales
HR
Finance
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Purchase
Operations
1.6 LIMITATIONS OF THE STUDY
The time constraint is considered as a major limitation to collect data from all 63
employees
The respondents may have some bias in answering the questions.
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The sample size being limited to middle and lower management may not accuratelyrepresent the entire organization.
The operations department in this organization is not aware of this type of
questionnaires; hence it became difficult to collect the exact Feed back from them.
CHAPTER II
LITERATURE SURVEY
2.1 REVIEW OF LITERATURE
Performance appraisal is one of the most important requirements for all
successful business and human resource policy - (Kessler, 2003).
Rewarding and promoting effective performance in organization, as well as identifying
ineffective performers for resource management - (Pulakos, 2003)
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The ability to conduct performance appraisal relies on the ability to assess an
employees performance in a fair and accurate manner. Evaluating employee performance is a
difficult task. Once the supervisor understands the nature of the job and the source of
information, the information needs to be collected in a
way, provided as feedback, and integrated into the organizations performance management
process for use in making compensation, job placement and training decisions and assignment -
(London, 2003).
After a review of literature, a performance appraisal model will be described in detail.
The model discussed is an example of a performance appraisal system that can be implemented
aim a large institution of higher education, within the Student Affair division. The model can
be applied to top-level, middle-level and lower level employees. Evaluation instrument forms
are provided to assist with implementation the appraisal system performance evaluations have
been conducted since the times of Aristotle - (Landy, Zedeck, Cleveland, 1983)
The earliest formal employee performance evaluation programs thought to have
originated in the United States military establishment shortly after the birth of the republic -
(Lopez, 1968)
1. Kessler, 2003 He said that performance appraisal is most important for organization and
HR policy
2. Landy, Zedeck, Cleveland, 1983 He says performance evaluation have been conducted sincethe time of Aristotle
The measurement of an employees performance allows for rational administrative
decisions at the individual employee level. It also provides for the raw data for the evaluation
of the effectiveness of such personnel-system components and processes as recruiting policies,
training program, selection rules 13 promotional strategies, and reward allocations -
(Landy, Zedeck, Cleveland, 1983)
In addition, it provides the foundation for behaviorally based employee counseling. In
the counseling setting performance information provides the vehicle for increasing satisfaction,
commitment, and motivation of the employee. Performance measurement allows the
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organization to tell the employee some thing about their rates of growth - (Landy, Zedeck,
Cleveland, 1983).
PURPOSE
Performance appraisals should focus on three objectives: performance, not personalitie
s; valid, concrete, relevant issues, rather that subjective emotions and feelings; reaching
agreement on what the employee is going to improve in his performance and what
you are going to do - (McKirchy, 1998).
Both the supervisor and employee should recognize that a strong relationship exists
between training and performance evaluation - (Barr, 1993).
Each employee should be allowed to participate in periodic sessions tore view
performance and clarify expectations. Both the supervisor and the employee
recognize these sessions as constructive occasions for two-way should include opportunities for
self-assessment as well as supervisor feedback. The supervisor should keep in contact with the
employee to assure the training experiences are producing desired impact - (Barr, 1993).
3. Landy, Zedeck, Cleveland, 1983 - The measurement of an employees performance allows for
rational administrative decisions at the individual employee level and also it provide behaviorbased counseling to increase commitment, motivation and satisfaction.
4. Barr, 1993 - He said employee should be allowed to participate in sessions tore view
Performance and clarify expectation
A portion of the process should be devoted to an examination of potential opportunities
to pursue advancement of acceptance of more complex responsibilities. The employee
development goals should be recognized
as legitimate, and plans should be made to reach the goals through developmental
experiences or education - (Barr, 1993).
Encouraging development is not only supervisors professional responsibility, but it als
o motivates an employee to pursue additional commitments. In addition, the pursuit of these
objectives will also improve the prospect that current employees will be qualified as candidates
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when positions become
available. This approach not only motivates current performance but also assists the
recruitment of current employees as qualified candidates for future positions - (Barr, 1993)
PITFALLS TO AVOID
When conducting performance appraisals on any level, it is important to keep in mind
the common pitfalls to avoid. These pitfalls may include but are not limited to:-
1.Bias/prejudice- Race, religion, education, family background, age, and/ or sex.
2. Trait assessment Too much attention to characteristics that have nothing to do with the job
and are difficult to measure.
3. Over-emphasis on favorable or unfavorable performance of one or two tasks which could
lead to an unbalanced evaluation of the overall contribution.
4. Relying on impressions rater than facts.
CHAPTER III
RESEARCH METHODOLOGY
3.1 TYPE OF PROJECT
DESCRIPTIVE RESEARCH
A descriptive study is undertaken in order to ascertain and be able to describe the
characteristics of the percentage of members who are in their senior and junior years, sex
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composition, age groupings, and number of business courses taken, can only be considered
as descriptive in nature. Quite frequently, descriptive studies are undertaken in
organizations in order to learn about and describe the characteristics of a group of
employees, as for example, the age, educational level, job status. Descriptive studies are
also undertaken to understand the characteristics of organizations that follow certain
common practices.
Descriptive statistics describe the main features of a collection
ofdata quantitatively. Descriptive statistics are distinguished from inferential
statistics (orinductive statistics), in that descriptive statistics aim to summarize a data set,
rather than use the data to learn about thepopulation that the data are thought to represent.
This generally means that descriptive statistics, unlike inferential statistics, are not
developed on the basis ofprobability theory. Even when a data analysis draws its main
conclusions using inferential statistics, descriptive statistics are generally also presented.
For example in a paper reporting on a study involving human subjects, there typically
appears a table giving the overall sample size, sample sizes in important subgroups
The purpose of the research methodology is to describe the research procedure. This is
the overall design, their sample procedure, the data collection method and analysis procedure.
This selection is important because it is hard to discuss methodology without using technicalterms.
MEANING OF RESEARCH:
The advanced Lerners dictionary of current English lays down the meaning of
research as, A careful investigation or enquiry especially through search for new facts in any
branch of knowledge. Research is, thus an original contribution to the existing stock of
knowledge making for its advertisements. It refers to the systematic method consisting of
enunciating the problem formulating a hypothesis, collecting the facts or data, analyzing the
facts and reaching certain conclusions either in the form of solution(s) towards the concerned.
Problem or in certain generation for some theoretical formulations.
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OBJECTIVES OF RESEARCH:
The main aim of researcher is to find out the truth which is hidden and which has not
been discovered as yet. The objectives of carrying out a research are, to gain familiarity with a
phenomenon or to achieve new insights into it.
RESEARCH DESIGN:
The task of defining the problem is the preparation of the design of the research
project, popularity as the research design, A research is the arrangement of conditions for
collection and analysis of data in a manner that aims to combine relevance to the research
purpose economy in procedure.
RESEARCH PROCESS:
While planning, designing the research project, the steps were to be followed was
anticipated and listed. This list functions or steps consists of research process, defining of
problem statement of research objectives, list of needed information, design of data collection
project, selecting the sampling unit and sample, analyzing the data, finding and recommends
SAMPLE:
The selected respondents constitute what is technically called a Sample and the selection
process is called Sampling technique. The survey conducted known as Sample survey...
SAMPLING:
Sample is the part of the population or a subject of unit, which is provided by some process
or other usually by deliberate selection with the object of investigation.
SAMPLING TECHNIQUE:
A sample, as the name implies is a smaller representation of a large whole, instead of
studying every case, which might logically be induced in an investigation, only a small portion
is selected. A sample design is a definite plan for obtaining a sample from a given population.
It therefore refers to the technique or procedure.
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SELECTION OF SAMPLING:
A sample is a miniature picture or a cross section of a entire group or an aggregate from
which a sample is taken. It is a definite plan for obtaining a sample from a given population.
Simple random sampling, a probably same design is adopted by the researcher for the study.
SAMPLE SIZE:
TOTAL SAMPLE SIZE - 68
SAMPLE COVERED - 63
SAMPLE USED:
Convenience Sample.
CONVENIENCE SAMPLE:
Convenience sampling is a non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the researcher.
USES
Researchers use convenience sampling not just because it is easy to use, but because it also has
other research advantages.
Inpilot studies, convenience sample is usually used because it allows the researcher to
obtain basic data and trends regarding his study without the complications of using
a randomized sample.
This sampling technique is also useful in documenting that a particular quality of asubstance or phenomenon occurs within a given sample. Such studies are also very useful for
detecting relationships among different phenomena.
DIAGRAMS USED :
Pie Chart.
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Bar Chart.
TABLES AND CHARTS:
To have a birds eye view of analysis of the statistical data, the data collected isrepresented in the form of tables, charts and graphs.
BAR DIAGRAM:
Bar diagram is a form of diagrammatic representation. This diagram consists of series
of rectangular bars standing on a common base. The base is of equal width and space.
PIE DIAGRAM:
A pie diagram is the pictorial representation of statistical data with several sub-
divisions in a circular form. Pie diagram consists of a circle sub-divided into several sets of
radius.
3.2. METHODS OF DATA COLLECTION
Technique used for Collecting Primary Data
Questionnaire technique
Both primary and secondary data were used in the research. Primary data is for specific
purpose or for a specific research project. Secondary data were collected for another purpose
and it already exists somewhere.
PRIMARY DATA:
The primary data are collected fresh and for the first time and thus happen to be original in
character. The primary data is collected during the course of doing experiments in an
experimental research but in case we do research of the descriptive type and perform surveys.
Sample surveys or census surveys, then we can obtain primary data either through observation
or through direct communication with respondents is one form or another or through personal
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interviews. In a survey, the investigator collecting primary data, particularly in descriptive
research uses methods such interview method.
Observation:
Through questionnaires.
Through schedule.
PERSONAL INTERVIEW:
Personal interview is extensively used in surveys. It is face-face communication with
respondents to enable better control of samples.
QUESTIONNAIRE:
The term questionnaire refers to a device for obtaining to answers to the questions by using
a form, in which respondents fill and it is used as the research instrument in study.
SECONDARY DATA:
The secondary data were collected through the following the following sources:
Reports,
Journals,
Libraries,
Company magazines & secondary data may be related to the past period and hence it has
limited utility.
It may be collected through questionnaires. This method of data collection is quit popular. In
this method a questionnaire is provided to the person concerned with required answering the
questions. A questionnaires consists of a number of questions printed or typed in a defined
order on a form or set of forms. The questionnaires is given or provided to the respondents who
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are expected to ready and understand the questions and write down the answer in the space
meant for the purpose in a questionnaire itself. The respondents have to answer the
questionnaires on their own.
ADVANTAGES OF QUESTIONNAIRE METHOD:
The following are the advantage of questionnaire methods:
There is low cost even when the universe is large and widely spreading geographically.
It is free from the bias of the interviewer.
Respondents have enough time to give throughout answers.
Questionnaire method provides veracity it is easy to analyze customer attributes and
opinions.
Easy to contact large number of respondents. It can be distributed to different places.
3.3. TOOLS FOR ANALYSIS
TOOLS USED
o Percentage Analysis
o Chi- Square Test
o Rank correlation
PERCENTAGE ANALYSIS
In this proportion of an individual observation in a distribution is described. The most
convention for describing the positional of an individual score in distribution of scores is a
percentile method.
Percentage = number of responses for each respondents * 100
Total number of respondents
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CHI SQUARE TEST:
A chi-squared test, also referred to as chi-square test or test, is any statistical
hypothesis test in which the sampling distribution of the test statistic is a chi-squared
distribution when the null hypothesis is true, or any in which this is asymptotically true,
meaning that the sampling distribution (if the null hypothesis is true) can be made to
approximate a chi-squared distribution as closely as desired by making the sample size large
enough.
Purpose of Chi Square
The Chi Square (X2) test is undoubtedly the most important and most used member of the
nonparametric family of statistical tests. Chi Square is employed to test the difference between
an actual sample and another hypothetical or previously established distribution such as that
which may be expected due to chance or probability. Chi Square can also be used to test
differences between two or more actual samples.
Basic Computational Equation
Example:
RANK CORRELATION:
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In statistics, a rank correlation is the relationship between different rankings of the same set
of items. A rank correlation coefficient measures the degree of similarity between two
rankings, and can be used to assess its significance.
Formula:
Correlation Co-efficient:
Correlation(r) = [NXY - (X) (Y) / Sqrt ([NX2 - (X) 2] [NY2 - (Y) 2])]
where
N = Number of values or elements
X = First Score
Y = Second ScoreXY = Sum of the product of first and Second Scores
X = Sum of First Scores
Y = Sum of Second Scores
CHAPTER-IV
4.1. PERCENTAGE ANALYSIS
TABLE 4.1.1 Table Showing Gender Category
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Source: primary data
CHART 4.1.1 Chart showing Gender Category
GENDER CATEGOR
41%
59%
0
10
20
30
40
50
60
70
Male Female
GENDER
NO.OFRESP
ONDENTS(%)
INTERPRETATION:
It is reveal from the table that 59% of the respondents are male and 41% of the respondents arefemale.
TABLE4.1.2 Table showing Age Category
S.NO Gender No. of respondent percentage %
1
2
Male
Female
37
26
59
41
Total 63 100
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Source: primary data
CHART 4.1.2 Chart showing Age Category
S.NO Age No. of respondent percentage %
1
2
3
4
20-25
26-30
31-35
>36
6
17
23
13
9
27
43
21
Total 63 100
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AGE CATEGORY
21%
43%
27%
9%
0
10
20
30
40
50
20-25 26-30 31-35 >36
AGE
NO.OFRESPONDENTS(%)
INTEPRETATION:
From the table that 43% of the respondents come under the age category 31-35, 27% of the
respondents come under the age category of 26-30, 21% of the respondents come under the age
category of above 36, 9% of the respondents come under the age category 20-25.
TABLE 4.1.3 TABLE SHOWING YEARS OF EXPERIENCE WITHIN THE
ORGANIZATION
S.NO Experience No. of respondent percentage %
1
2
3
4
1 3 years
3 5 years
5 10 years
>10 years
10
23
21
9
16
37
33
14
Total 63 100
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Source: primary data
CHART 4.1.3 CHART SHOWING YEARS OF EXPERIENCE
YEARS OF EXPERIENCE
14%
33%
37%
16%
05
10
15
20
25
30
35
40
1 3 years 3 5 years 5 10 years >10years
EXPERIENCE
NO
.OFRESPONDENTS(%
INTERPRETATION:
From the table that 37% of the respondents come under 3-5years of experience within the
organization, 33% of the respondents come under 5-10years, 16% of the respondents come
under 1-3years and 14% of the respondents come under above 10years
TABLE 4.1.4 TABLE SHOWING ARE YOU AWARE THAT YOURE
ORGANIZATION FOLLOWING THE PERFORMANCE APPRAISAL SYSTEM
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Source: primary data
CHART 4.1.4 CHART SHOWING AWARENESS ON PERFORMANCE
APPRAISAL IN THE ORGANIZATION
AWARENESS ON PERFORMANCE APPRAISAL
100%
0%0%
20%
40%
60%
80%
100%
120%
Yes No
OPINION
NO.OFRESPONDENT(
%)
INTERPRETATION:
It is inferred from the table that out of 63 respondents, 100% of the respondents say they were
aware of performance appraisal system in their organization.
S.NO Opinion No. of respondent Percentage %
1
2
Yes
No
63
0
100%
0%
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TABLE 4.1.5 TABLE SHOWING FREQUENCY OF PERFORMANCE
APPRAISAL
Source: primary data
CHART 4.1.5 CHART SHOWING FREQUENCY OF PERFORMANCE
APPRAISAL
S.NO Opinion No. of respondent percentage %
1
2
3
4
Quarterly
Half year
Once in year
No specific time
0
7
56
0
0
11
84
0
TOTAL 63 100
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FREQUENCY OF PERFORMANCE APPRAISAL
0%
84%
11%0%
0
10
20
30
40
50
60
70
80
90
Quarterly Half year Once in year No specific time
OPINION
NO.O
FRESPONDENTS(%)
INTERPRETATION:
From the table that out of 63 respondents, 84% of the respondents say that appraisal program is
conducted once a year and 11% says appraisal is conducted once in half year.
TABLE 4.1.6 TABLE SHOWING IMPORTANCE OF PERFORMANCE
APPRAISAL IN THE ORGANIZATION
S.NO Opinion No. of respondent Percentage %
`1
2
3
4
Highly important
Less important
Not important
No idea
47
7
5
4
75
11
8
6
TOTAL 63 100
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Source: primary data
CHART 4.1.6 CHART SHOWING IMPORTANCE OF PERFORMANCE
APPRAISAL IN THE ORGANIZATION
IMPORTANCE OF PERFORMANCE APPRAISAL IN
THE ORGANIZATION
6%8%11%
75%
0
1020304050607080
Highly
important
Less important Not important No idea
OPINION
NO.OF
RESPONDENTS(%
INTERPRETATION:
From the table that out of 63 respondents, 75% of the respondents say appraisal is highly
important, 11% of the respondents say appraisal is less important, 8% of the respondents say
appraisal is not important, 6% of the respondents say no idea.
TABLE 4.1.7 TABLE SHOWING PROPER EXECUTION OF PERFORMANCE
APPRAISAL
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Source: primary data
CHART 4.1.7 CHART SHOWING PROPER EXECUTION OF PERFORMANCE
APPRAISAL
PROPER EXECUTION OF PERFORMANCE APPRAISAL
Yes
81%
No19%
INTERPRETATION:
S.NO Opinion No. of respondent percentage %
1
2
Yes
No
51
12
81
19
TOTAL 63 100
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From the table that out of 63 respondents, 81% of the respondents say that their organization
execute their performance appraisal program properly and19% of the respondents feels that
they do not execute performance appraisal program properly.
TABLE 4.1.8 TABLE SHOWING IS REASON FOR CONDUCTINGPERFORMANCE APPRAISAL IS CONVEYED PROPERLY
Source: primary data
CHART 4.1.8 CHART SHOWING IS REASON FOR CONDUCTING
PERFORMANCE APPRAISAL IS CONVEYED PROPERLY
S.NO Opinion No. of respondent percentage %
1
2
3
Always
Some extent
Never
40
18
5
63
29
8
TOTAL 63 100
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IS REASON FOR APPRAISAL IS CONVEYED
PROPERLY
Always
63%
Some extent
29%
Never8%
INTERPRETATION:
From the table that out of 63 respondents, 63% respondents says that their organization have
conveyed properly the reason for conducting performance appraisal, 29% respondents says that
their organization informed the reason to some extent and 8% of the respondents says that their
organization never informed the reason for conducting performance appraisal.
TABLE 4.1.9 TABLE SHOWING APPRAISER AWARENESS TOWARD
EMPLOYEES JOB RESPONSIBILITY AND DUTIES
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Source: primary data
CHART 4.1.9 CHART SHOWING APPRAISER AWARENESS TOWARD
EMPLOYEES JOB RESPONSIBILITY AND DUTIES
APPRAISER AWARENESS TOWARDS EMPLOYEE
JOB RESPONSIBILITY AND DUTIES
Completely
30%
Aware to some
extent
65%
Not aware
5%
INTERPRETATION:
S.NO Opinion No. of respondent percentage %
1
2
3
Completely
Aware to some extent
Not aware
19
41
3
30
65
5
TOTAL 63 100
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From the table that out of 63 respondents,65% of the respondents says that appraiser are aware
to some extent in employees job responsibility and duties, 30% of the respondents feels that
appraiser are completely aware and 5% of the respondents says that appraiser are not aware of
appraise responsibility and duties
TABLE 4.1.10 TABLE SHOWING APPRAISAL FEEDBACK
Source: primary data
CHART 4.1.10 CHART SHOWING APPRAISAL FEEDBACK
S.NO Opinion No. of respondent percentage %
1
2
3
Frequently
Occasionally
Never
9
54
0
14
86
0
TOTAL 63 100
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APPRAISAL FEEDBACK
Frequently
14%
Occasionally
86%
Never
0%
INTERPRETATION:
It is inferred from the table that 86% feels that feedback provided occasionally and 14% feels
that feedback provided frequently.
TABLE 4.1.11 TABLE SHOWING DOES PERFORMANCE APPRAISAL HELPS
EACH EMPLOYEE TO DISCOVER HIS/HER POTENTIAL
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Source: primary data
CHART 4.1.11 CHART SHOWING DOES PERFORMANCE APPRAISAL HELPS
EACH EMPLOYEE TO DISCOVER HIS/HER POTENTIAL
IDENTIFYING EMPLOYEE POTENTIAL THROUGH
APPRAISAL
Yes
75%
No
25%
INTERPRETATION:
It is inferred from the table that 75% of the respondents accept that appraisal help them in
discovering the potential and 25% of the respondents feels that appraisal does not help them in
discovering the potential.
S.NO Opinion No. of respondent percentage %
1
2
Yes
No
47
16
75
25
TOTAL 63 100
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TABLE 4.1.12 TABLE SHOWING DO YOU FEEL THAT PERFORMANCE
APPRAISAL ENCOURAGES YOU TO PUT IN MORE EFFORT IN REACHING
YOUR GOALS
Source: primary data
CHART 4.1.12 CHART SHOWING DO YOU FEEL THAT PERFORMANCE
APPRAISAL ENCOURAGES YOU TO PUT IN MORE EFFORT IN REACHING
YOUR GOALS
S.NO Opinion No. of respondent percentage %
1
2
3
4
5
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
25
16
8
8
6
40
24
13
13
10
TOTAL 63 100
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APPRAISAL ENCOURAGE YOU TO PUT MORE
EFFORT
Strongly
Agree
40%
Agree
24%
Neutral
13%
Disagree
13%
Strongly
disagree
10%
INTERPRETATION:
From the table that out of 63 respondents, 40% of the respondents strongly agree that appraisal
encourage employee to put more effort in reaching your goals, 24% of the respondents agrees that
performance appraisal encourages to put more effort in reaching your goals, 13% says it is
neutral,13% of the respondents says they disagree with performance appraisal encourage you to
put more effort and 10% of the respondents say they strongly disagree.TABLE 4.1.13 TABLE SHOWING CHANGES TAKEN AFTER PERFORMANCE
APPRAISAL
S.NO Opinion No. of respondent percentage %
1
2
3
4
Change in motivatingstrategy
Re-structuring of org.
or Emp relationship
Make change indissatisfied area
No decision taken
25
10
21
7
40
16
33
11
TOTAL 63 100
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Source: primary data
CHART 4.1.13 CHART SHOWING CHANGES TAKEN AFTER PERFORMANCE
APPRAISAL
CHANGES TAKEN AFTER PERFORMANCE
APPRAISAL
Change in
motivating
strategy
40%
Re-structuringof org. or Emp
relationship
16%
Make change
in dissatisfied
area
33%
0%
No decision
taken
11%
INTERPRETATION:
It is inferred from the table that 40% of the respondents feels there is change in motivation
strategy, 33% say change in dissatisfied area, 16% of the respondent say re-structuring of
organization or individual objective and 11% of the respondents feel there is no decision taken
after appraisal results. TABLE 4.1.14 TABLE SHOWING WHAT KIND OF REMEDIAL MEASURES
ARE TAKEN.
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Source: primary data
CHART 4.1.14 CHART SHOWING WHAT KIND OF REMEDIAL MEASURES
ARE TAKEN.
S.NO Opinion No. of respondent percentage %
1
2
3
4
Job rotation
Sent to trainingprogram
Counseled
Any other
4
41
13
5
6
65
21
8
TOTAL 63 100
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REMEDIAL MEASURE
8%
21%
65%
6%
0
10
20
30
40
50
60
70
Job rotation Sent to training
program
Counseled Any other
OPINION
NO
.OFRESPONDENTS(%
INTERPRETATION:
It is inferred from the table that 65% of the respondent says employee are sent to training
program, 21% of the respondent says that they were counseled, 6% of the respondents saysthey were put in job rotation as a remedial measure and 8% has said others.
TABLE 1.1.15 TABLE SHOWING WHO RATE THE PERFORMANCE
APPRAISAL OF THE INDIVIDUAL
S.NO Opinion No. of respondent percentage %
1
2
3
4
Immediate supervisor
Peers
Rating committee
Self appraisal
9
0
54
0
14
0
86
0
TOTAL 63 100
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Source: primary data
CHART 1.1.15 CHART SHOWING WHO RATE THE PERFORMANCEAPPRAISAL OF THE INDIVIDUAL
RATER OF INDIVIDUAL PERFORMANCE
0%
86%
0%
14%
0
20
40
60
80
100
Immediate
supervisor
Peers Rating
committee
Self appraisal
OPINIION
NO.OFRESPONDENTS(%)
INTERPRETATION:
From the table that out of 63 respondents, 86% of the respondents say that individual are rated
by rating committee, 14% of the respondents say that they are rated by immediate supervisor.
TABLE 4.1.16 TABLE SHOWING RATING CRITERIA
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Source: primary data
CHART 4.1.16 CHART SHOWING RATING CRITERIA
S.NO Opinion No. of respondent percentage %
1
2
3
4
5
Quality of output
Quantity of output
Timeliness of output
Cost effectiveness
All the above
5
6
2
3
47
8
10
3
5
74
TOTAL 63 100
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RATING CRITERIA
74%
5%3%10%8%
0
10
20
30
40
50
60
70
80
Quality of
output
Quantity of
output
Timeliness of
output
Cost
effectiveness
All the above
OPINION
NO.OFRESPONDENTS(%)
INTERPRETATION:
From the table that out of 63 respondents, 74% of the respondent says that their organizationrate the employee on basis of quality, quantity, cost effectiveness, Timeliness of output, 10% of
the respondent says that their organization rate the employee on basis of quantity of output, 5%of the respondent says that their organization rate the employee on basis of Cost effectiveness,
3% of the respondent says criteria for rating is timeliness of output.
TABLE 4.1.17 TABLE SHOWING SATISFACTION OVER RATING CRITERIA
S.NO Opinion No. of respondent percentage %
1
2
Yes
No
51
12
81
19
TOTAL 63 100
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Source: primary data
CHART 4.1.17 CHART SHOWING SATISFACTION OVER RATING CRITERIA.
SATISFACTION OVER RATING SYSTEM
19%
81%
0
10
20
30
40
50
60
7080
90
Yes No
OPINION
NO.OFRESPONDENTS(%)
INTERPRETATION:
From the table that out of 63 respondents, 81% of the respondents accept that the rating system
in the organization is satisfactory, 19% of the respondents feels dissatisfactory on the rating
system followed be the organization.
4.2 CHI SQUARE TEST
Chi - Square Table - 1:
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Table showing the relationship between proper execution of performance
appraisal (X) and performance appraisal helps each employee to discover his/her
potential(Y).
Null Hypothesis:
There is significant relationship between proper execution of performance appraisal (X) and
discovering of employees potential (Y).
Alternative Hypothesis:
There is no significant relationship between proper execution of performance appraisal (X)
and discovering of employees potential (Y).
Source Table:
Y
X
YES NO TOTAL
YES
40 11 51
NO
7 5 12
TOTAL 47 16 63
SOURCE: (PRIMARY DATA)
Calculation Table:
= (O-E) / E
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O E (O-E) (O-E) (O-E) / E
40 38.04 1.96 3.84 0.100
11 12.95 -1.95 3.80 0293
7 8.95 -1.95 3.80 0.424
5 3.04 1.96 3.84 1.26
TOTAL = 63 TOTAL = 63 =2.07
(Calculated Value) = 2.07
Degree of freedom = (r-1)*(c-1)
= (2-1)*(2-1)
= 1*1
= 1.
Level of significance = 0.05
Table Value @ 5% level of significance for 1 = 3.841.
The calculated Chi-Square value is less than the critical value at 5% level of significance,
which reveals that the value is significant. So, accept the null hypothesis.
Result:
There is significant relationship between proper execution of performance appraisal (X)
and discovering of employees potential (Y).
4.3 COEFFICIENT OF CORRELATION
To find out the correlation between age and Importance of performance appraisal in the
organization
X: Age: 20-25 [ ] 26-30 [ ] 31-35 [ ] 36 above
Y: Importance of performance appraisal Highly important [] Less important []
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Not important [] No idea []
Table 4.3.1 Table shows the correlation factor between age and Importance of
performance appraisal
Source :( Primary data)
[NXY - (X) (Y)
Correlation (r) =
Sqrt ([NX2 - (X) 2] [NY2 - (Y) 2])]
[4*568-(59) (63)]
=
Sqrt [(4*1046529)-(3481) (4*5285401)-(3969)]
[-1441]
=
9402713.0110
= - 0.0001532
X Y X*X Y*Y XY
6 47 36 2209 282
17 7 289 49 119
23 5 529 25 115
13 4 169 16 52
59 631023
2299 568
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INFERENCE:
There is no significant relationship between age and Importance of
performance appraisal in the organization.
5.1 FINDINGS
From the table 4.1.1, fifty nine percentages of the respondents are male and forty one
percentages are female.
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From the table 4.1.2, forty three percentages of the respondents are under the age
category of 31-35, 26% are under the age category 26-30 and nine percentages of the
respondents are under the age category of 20-25.
From the table 4.1.3, thirty seven percentages of the respondents are come under 3-
5yrs, 33% of the respondent are come under 5-10yrs of experience in the organization
and fourteen percentages of the respondents come above 10yrs of experience within the
organization.
From the table 4.1.4, one hundred percentages of the respondents are fully aware that
their organization following the performance appraisal system.
From the table 4.1.5, eighty four percentages of the respondents say that appraisal
program is conducted once in a year and eleven percentages says that performance
appraisal is conducted once in half year.
From the table 4.1.6, seventy five percentages of the respondents say performance
appraisal is highly important, eleven percentage of the respondent says less important
and six percentages says no idea.
From the table 4.1.7, eighty one of the respondents say performance appraisal program
is properly executed and nineteen percentages of the respondents say it is not properly
executed.
From the table 4.1.8, sixty three percentage of the respondents say that their
organization always conveyed the reason for conducting Performance appraisal and
eight percentages of the respondents say they never informed the reason for conducting
performance appraisal.
From the table 4.1.9, sixty five percentages say appraiser are aware to some extent in
employees job responsibility and duties and five percentage says that appraiser are not
aware of appraise responsibility and duties.
From the table 4.1.10, eighty six percentages of the respondents say feedback provided
occasionally and fourteen percentages says feedbacks are providing frequently. From the table 4.1.11, seventy five percentages accept that performance appraisal helps
them in discovering the potential and twenty five percentages says appraisal does not
help them in discovering the potential.
From the table 4.1.12, forty percentages strongly agree that Performance appraisal
encourage putting in more effort in reaching goals, twenty four percentage agree that
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performance appraisal encourage to put more effort and ten percentages of the
respondents say they strongly disagree.
From the table 4.1.13, forty percentages of the respondents say there is change in
motivation factor thirty three percentage says organization make change in dissatisfied
area and eleven percentages of the respondents say there is no decision taken on
performance appraisal results.
From the table 4.1.14, sixty five percentages says employees are sent to training
program, twenty one percentages says sent to counseling and six percentages has said
job rotation.
From the table 4.1.15, eighty six percentages says that individual are rated by rating
criteria and fourteen percentages says that they are rated by immediate supervisor.
From the table 4.1.16, seventy four percentages says that their organization rate the
employee on basis of quality, quantity, cost effectiveness and timeliness ten percentage
says that their organization rate on basis of quantity of output and three percentages
says criteria for rating is timeliness of output.
From the table 4.1.17, eighty one percentages satisfied with the rating system and
nineteen percentages are dissatisfied with the rating system.
5.2 SUGGESTIONS
The appraiser must be familiarized with the employees job responsibilities and
duties before conducting performance appraisal.
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It is suggested to provide feedback after the performance appraisal. Feedback on
performance could be discussed through formal or informal meetings. This may
enhance the involvement and performance of employees.
Performance appraisal can developed in such a way to identify the hidden talent
and skills of employees.
Employees having low performance could be called individually, encouraged and
monitored closely to make improvements.
Employees suggestion during performance appraisal may not reach the top
managers. For such situations suggestion box can be implemented and frequently
reviewed.
5.3 CONCLUSION
Performance appraisal may be understood as the assessment of an individuals performance in
a systematic way. The performance being measured against such factors as job knowledge,
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DECENZO and ROBBINS, Human Resource Management, Wilsey, 6th
Edition, 2001.
C.R. Kothari, Research Methodology, New age international publishers, third
edition, New Delhi, 2005.
ASWATHAPPA, Human Resource Management, fifth edition, Tata McGraw
Hill Publishing Company.
QUESTIONNAIRE
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1. Name
2. Gender category
[] 20-25 [] 26-30 [] 31-35 [] >36
3. Years of experience within the organization
[] 1-3 years [] 3-5 years [] 5-10 years [] >10 years
4. Are you aware that your organization following the performance appraisal system.
[] Yes [] No
5. How many time does performance appraisal takes place in your organization.
[] Quarterly [] Half yearly [] Once a year [] No specific time
6. Do you feel that performance appraisal is important in an organization?
[] Highly important [] Less important [] Not important [] No idea
7. Is Performance appraisal properly executed in your organization?
[] Yes [] No
8. Are you informed the reason for conducting performance appraisal program.
[] Always [] Sometimes [] Never
9. Is the appraiser aware of your job responsibility and duties?
[] completely [] Aware to some extent [] Not aware
10. Do you obtain appraisal feedback?
[] Frequently [] Occasionally [] Never
11. Does the performance appraisal system help each employee to discover his/her potential?
[] Yes [] No
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12. Do you feel that performance appraisal encourages you to put in more effort in reaching
your goals?
[] Strongly agree [] agree [] Neutral [] disagree [] strongly disagree
13. What changes have been taken in the organization as a result of performance appraisal?
[] Change in motivation strategy [] Restructuring of Emp or organization strategy
[] Make change in dissatisfied area [] No decision taken
14. What kind of remedial measures are taken.
[] Job training [] sent to training [] counseled [] any other
15. Who rate the performance appraisal of the individual?
[] Immediate supervisor [] Peers [] Rating committee [] self appraisal
16. Based on what criteria the rating system is done?
[] Quality of output [] quantity of output [] timeliness of output [] Cost effectiveness
[] All the above
17. Are you satisfied with the present rating system?
[] Yes [] No
18. Suggestions for improvement
..
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