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ABSTRACT
A STUDY ON THE EFFECTIVENESS OF PERFORMANCE APPRAISALSYSTEM IN CORPORATION,
The study is mainly to find out the Effectiveness of Performance Appraisal
system used in the study is also to find out the factors which influence the performance
of workers.
The research study conducted is descriptive in nature and the population size
used for this study is 100. Both primary and secondary data are collected to meet the
requirements. or collectin! the data a structured questionnaire was used. The
questionnaire is with multiple choices" open ended and close ended questions.
The study is mainly #ased on the primary data and the required primary data
were collected throu!h the structured questionnaire from the entire population. $n this
study percenta!e analysis and two% way analysis is used to interpret the data collected.
The study revealed that the ma&ority of the respondents feel that company has to
create awareness amon! employees a#out the importance of performance appraisal
system. 'a&ority of the respondents feels that the system is fair and clear and helps in
developin! and improvin! their performance.
$n his study the respondents are the total population. (ince the size of the
population is finite.
Based on the information !iven #y the respondents it is clear that importance
a#out the appraisal technique is hi!h. There is a !eneral feelin! of insecurity amon! the
people re!ardin! the &o# since the result is hi!hly validated.
)ence the market potential for employees is hi!h the company has to formulate
appropriate strate!ies to !et many potential employees to do the #usiness.
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CHAPTER 1
INTRODUCTION
An or!anization*s !oals can #e achieved only when people put in their #est
efforts. Employee assessment is one of the fundamental &o#s of )+'. But not an easy
thou!h. Performance appraisal ,it is the process of evaluatin! the performance and
qualifications of the employees in terms of the requirements of the &o# for which he is
employed" for purposes of administration includin! placement" selection for
promotions" providin! financial rewards and other actions which require differential
treatment amon! the mem#ers of a !roup as distin!uished from actions affectin!
mem#ers equally-.
$t is often #elieved that the most si!nificant personnel human resource
outcomes involve contri#utions of employees for the attainment of or!anizational !oals.
These contri#utions refers to employee*s performance" it refers to how effectively
employees meet the duties and responsi#ility of the &o#. $n focusin! on utilization of
human resource it is implied that work activities can #e made more efficient and
productive" and that opportunities for personal fulfillment throu!h work can #e
enhanced. Performance can #e improved #y makin! sure that ri!ht person is chosen for
the ri!ht &o#. Efforts should #e made in such a way that employees will voluntarily and
!ladly cooperate in the operation of the industry and to promote peace and production
for the prosperity of the nation.
To measure individual &o# performance the personal characteristics must #e
determined which leads to increased productivity and contri#ute to employee
performance. $t is assumed here that there are characteristics and traits that lead to
productivity and these can #e perceived" measured and evaluated.
'ost mana!ers and supervisors have at some time other questioned on the #asis
or relevance of appraisal" as it more commonly termed. /espite increasin! attention
!iven to evaluation particles and development of evaluation system disconcertin!ly the
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difficulties the dou#ts and the lack of credi#ility a#out various systems appear to have
increased. An appraisal system in an or!anization has to consistent with its mana!erial
styles and centrally controlled mana!ement would a often find it difficult to promote
and sustain an appraisal system that is #ased on participation of employees" certainly
types of appraisal system may not #e suited certain types of technolo!y.
$n fact mana!ement has to make clear choice a#out their mana!erial styles and
their relief and approaches vis%%vis employee development and work or!anized and
institute personal appraisal system with in such a frame work. The appraisal system its
o#&ective and machines require definite formulation and the process particularly the
human response continuous attention.
The use of /e!ree feed#ack in or!anization has increased dramatically me
recent years. Today most people have heard of it and many are familiar with its #asic
elements and procedures a person performance is rated #y a ran!e of coworkers
includin! superior peers su# ordinates and occasionally customers these are feed #ack to
the person and compare with self%ratin! development !oals are set often in connection
with a strate!y for achievin! these !oals sometimes there is used #y the or!anization to
make administrative decision a#out such thin!s as pay rides and promotion.
The main aims of a!aisa" a!e#$
1. makin! reward decision
. $mprovin! performance
2. motivatin! staff
3. succession plannin! and identifyin! potential4. promotin! mana!ers su# ordinate dialo!ue
Pe!fo!man%e a!aisa"#
Defini&ion
Performance appraisal is a set of process for esta#lishin! shared understandin!
a#out what it is to #e achieved and mana!in! developin! people in a way which
increase the pro#a#ility that it will #e achieved in the short and lon!er term.
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P'!ose of e!fo!man%e
1. To !ive the employee the opportunity to discuss performance and performance
standards re!ularly with supervisors.
. To provider the supervisors means of identifyin! the stren!th and weakness of
an employee performance
2. desi!ned to helps an employee improve performance
3. to provide a #asic for salary recommendations
4. to help determine promotions and transfer
5. To reduce !rievances.
Benefi&s of e!fo!man%e a!aisa"
To &he a!aisa"
1. 6reater clarity of the results standards e7pected of them
. Accurate and constructive feed#ack on past performance
2. 6reater knowled!e of stren!ths and weakness
3. An opportunity to communicate upwards views and feelin!s a#out the &o# and
the utilization of the appraisal skills in the &o#.
4. /iscussion of career prospects.
To &he a!aise!
1. The opportunity to measure and identify trend in performance of staff
. Better understandin! of staff their fears an7iety hopes and aspirations
2. Enhanced modification of staff #y focusin! attention on term as individuals
3. /evelopin! staff performance
4. $dentifyin! opportunity for rotatin! the duties of staff.
The o!(ani)a&ion
1. $mproved communication8
. 6enerally enhanced motivation of staff
2. The !reater harmonization of o#&ectives
*+ $mproved corporate performance.
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Me&hos of e!fo!man%e a!aisa"
9ith the evaluation and development of appraisal system a num#er of methods
or techniques of performance appraisal have developed
Me&hos of e!fo!man%e a!aisa"
T!ai&iona" me&ho Moe!n me&ho
1. 6raphic ratin! scales 1. Behaviorally ratin! scales
. +ankin! methods . Assessment :entre
2. Pried comparison method 2. )uman resources accountin!
3. orced comparison method3. 'ana!ement #y o#&ectives
4. :heck list method 4. Psycholo!ical appraisal
a; (imple check list
#; 9ei!hted check list
c; :ritical incident method
5. Essay or free from appraisal
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Mana(emen& -. O-/e%&i0es !o%ess#
In &his !o%ess fi0e -asi% s&es ha0e &o -e fo""oe
(et or!anization !oals
>o# !oal settin!
Performance reviews
(et check posts
eed #ack
Benefi&s of mana(emen& -. o-/e%&i0es !o(!am#
1. 'ana!ement #y o#&ectives helps and increase employee. 'ana!ers are most likely to compete with themselves with other man!ers.
2. 'ana!ement #y o#&ectives results in a ,mean ends- chain
3. 'ana!ement #y o#&ectives reduces role conflict and am#i!uity.
4. 'ana!ement #y o#&ectives identified pro#lems #etter and early
5. 'ana!ement #y o#&ectives identifies performance deficiencies
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competitive rates. $ndia has all the four varieties of silk namely mul#erry tassel era and
me!a. $t is however disheartenin! to note that we have not yet #een a#le to fully e7ploit
this advanta!e and make our presents felt on the international scene more prominently
than at present. or this one has to clearly understand the stren!ths and weakness of
different se!ments of this sector.
The stren!th of this industry lies in its wide #ase" the sustainin! market demand
pull especially from the $ndian handloom weavin! sector" the infrastructure created #y
the national sericulture pro&ect and the research and trainin! capa#ilities.
Co!o!a&i)a&ion of Inian si"2 in's&!.
The $ndian silk industry #y and lar!e remains in the a!e old cotta!e industry
sector. $f #i! thin!s are to happen in the $ndian silk sector we should attract the
industrial !roups for !reater participation in settin! up or!anized silk production in
modern lines. industrial !roups could take any or all of the silk sectors like lar!e scale
mul#erry plantation "!iant rearin! houses mechanized reelin! filatures" modern silk
weavin! mills state% of% the art dyein! and processin! houses and also silk e7ports in a
#i! way.The e7perimental pilot pro&ects started at few pockets is of any indi!nation
there is !reater potential in lar!e scale corporatization of silk industry in $ndia.
CHAPTER 3
REVIE4 OF LITERATURE
Pe!fo!man%e a!aisa"
Performance Appraisal is the process throu!h which an individual employee*s
#ehavior and accomplishments for a fi7ed time period are measured and
evaluated.Performance Appraisal is a systematic and o#&ective way of &ud!in! the
relative worth or a#ility of an employee in performin! his her task. Performance
Appraisal helps to identify those who are performin! their assi!ned task well and reason
for such recordin! information a#out a person that is neededC
1. or the efficient mana!ement of #usiness or or!anization.
. By the mana!er to help to improve the worker*s performance.
2. By the worker to assist him to evaluate his own performance.
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Performance appraisal is systematic way of &ud!in! the relative importance of an
employee in performin! hisher task. $t is undertaken for the variety of purpose such as
to consider employees for salary increases" promotions" transfer and termination of
services" to determine trainin! and development needs of the employee" and to esta#lish
#asis for research and reference relatin! to employee matters.
Denha!& 516617C defines performance appraisal as a specific evaluation with respect to
an individual*s pro!ress in completin! specified tasks.
De0!ies, Mo!!ison, Sh'""man an 8e!"a%h 516917C define performance appraisal as a
process #y which an or!anization measures and evaluates an individual employee*s
#ehavior and accomplishments for a finite period.
Mo'"e! 53::17C states that performance appraisals are valued for definin! e7pectations
and measurin! the e7tent to which e7pectations are met. (he !oes on to state that
appraisals can make clear to employees where they are havin! success and where they
need to improve performance. 'oulder indicates that appraisals are useful in settin!
!oals and in fosterin! improved communications amon! work !roups and #etween
employees and supervisors.
Before the 1D50*s" performance evaluations were desi!ned primarily as tools for the
or!anization to use in controllin! employees Eichel and Bender" 1D=1;. Eichel and
Bender !o on to state that past performance was used to !uide or &ustify mana!ement*s
actions in dealin! with the employee. At the time" accordin! to these authors"
performance appraisal provided the #asis for salary" retention" dischar!e" or promotional
decisions.
Fver the past quarter century" the purpose of performance appraisal has shifted from
tools supportin! the activities of mana!ement to an increasin! trend towards personnel
development Eichel and Bender"1D=3;.
V!oom 5166:7C states that formal performance appraisal plans can #e desi!ned to meet
the followin! key needsC a; the or!anizationG #; the supervisorG and c; the employee.
)e stresses the need for effective evaluation as it can effectively serve these critical
areas.
ICMA 53::;7C states that almost all employees are ea!er to know how well they are
doin! in their &o#s" #ut many dread the meetin!s in which their performance is to #e
discussed.
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CHAPTER