20244763 Performance Appraisals

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PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTION

ProjectSynopsis

ASTUDYONDIFFERENTAPPROACHESOFPERFORMANCEAPPRAISALS:ASPECIFICSTUDYINSOFTWAREINDUSTRY

ProjectGuide

SubmittedBy




ProjectSynopsischecklist1.2.3.4.5.6.6.1.6.1.16.2.6.3.6.4.6.5.6.6.6.6.16.6.26.6.37.8.TITLEOFTHEPROJECT...............................................................................3EXECUTIVESUMMARY.................................................................................3STATEMENTABOUTTHEPROBLEM..............................................................4RESEARCHMETHODOLOGY..........................................................................6QUESTIONNAIRE.........................................................................................9CHAPTERISATIONSCHEME............................................

............................16Introduction..............................................................................................16BackgroundoftheStudy............................................................................16ResearchDesign........................................................................................17Companyprofile........................................................................................17APPROACHESOFPERFORMANCEAPPRAISAL..............................................17Conclusion.................................................................................................18Bibliography&Annexure............................................................................18ListofTables.............................................................................................18Listoffigures............................................................................................18Questionnaire......................................

......................................................18PERFORMAFORSYNOPSISOFPROJECTWORK..........................................18GuidesResume.....

................................................................................

.....19

6.1.2IntroductiontotheITSystem?.......................................................................16

(ThisProjectSynopsisissubmittedinpartialfulfillmentoftherequirementofMasterofBusinessAdministration,InstituteOfManagementTechnologyCentreDistanceLearning,Ghaziabad)




1.TITLEOFTHEPROJECTASTUDYONDIFFERENTAPPROACHESOFPERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTION:ASPECIFICSTUDYINSOFTWAREANDCOMMUNICATIONINDUSTRY

2.EXECUTIVESUMMARYPerformanceappraisalisanimportantHRDmechanism.Itistheprocessofevaluatingtheperformanceofemployeesintermsoftherequirementsofthejobforwhichtheyareemployedforadministrativepurpose,includingsuitableplacement,selection,promotion,givingfinancialrewardsandotheractionwhichrequiredi

fferentialtreatmentbetweenthemembersifagroupasdistinguishedfromactionsaffectingallthemembersequally.Earlierperformanceappraisalwasconsideredasasimpleandconfidentialmethodofratingthejobperformanceofindividualemployeesbytheirsuperiorsforthepurposeofgivingthoseremarksandrewards.Earlyappraisalsystemsstressedassessmentofpersonalitytracts,whichweredifficultnotonlytomeasurebutalsotorelateconstructivelytothejobitself.Thepurposeofperformanceevaluationistogenerateinformationtosupportadministrativedecisions.Thedifficultiesinmeasuringperformanceinsoftwarecompaniesliketheperformanceevaluationsarehighlysubjective.Goalsettingisineffectivewhengoalsaretoosimple,whengoalsofnotconstitutethegoaljob,whengoalattainmentisdifficulttoproveormeasure,whenperformanceistheresultoftermefforts,peerandsubordinateratingnotfollowednoincentiveforperformance,implementationoftheappraisalsystemmaynotbeasplanned

becauseoftimeconstraintandspanofreports.Overaperiodoftimeappraisalbecomearitual.Toaddresstheaboveastudywasconductedtostudythedifferentapproachesofappraisalsadoptedbysoftwarecompanies.Asampleof30softwarecompanieswastaken.AstructurequestionnairewasadministeredtoHRmanagers/executivesofdifferentcompaniestoelicittheinformation.MajorfindingsofthestudyincludethemostcommontypeofappraisalistheopensystemfollowedbyMBO,afewcompaniesfollowed360feedbackwhilemostofthecompaniesareplanningtoimplementthispowerfulnewmodelforemployeeassessmentandperformanceimprovement.Thepositiveareas/benefitsoftheappraisalsystemfollowedincludedtraininganddevelopmentinputs,careerplanning,andobjectiveIsettingetc.



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTIONThecriteriaormeasurestoevaluateanemployeeinmostofthecompaniesaretechnicalcompetence,performance,achievementvs.objectives,keyresultareassetatthebeginningofaspecificperiod,formingresultorientedareas,leadershipskills,teamwork,attitudearebehaviororientedareascompensationincreaseisrelatedtoperformanceanddependedontheperformancecode/ratinggive.Targetissetforemployeebeingappraisedforaperiodof6months;checklistforcarryingoutappraisalsandcarrierplanningisfollowed.360°feedbackprocessgivesanallroundperspectiverestrictingtheinconsistencyfactorthatexistintraditionalappraisalsystem.Organizationsremovelayersofmanagement,flattentheirstructure,andbeginusingself-directedterms;the,onlypracticaloptionforperformance

feedbackisfrommultiplesources.Asorganizationchangestheirculturetoalignwiththeirvisionandvalues,360°feedbacksbecomesanidealchoicetocommunicatethenewcompetenciesrequiredbythenewvalues.

3.STATEMENTABOUTTHEPROBLEMTheresearchintendstostudythedifferentapproachesofappraisalsadoptedbysoftwareCompaniesandemployeeattitude,employeeSatisfactionandindustrialmorale.Italsoanalysesthemostcommonlyoccurringerrorswithinperformanceappraisalmethodsandtounderstandthelevelofeffectivenessof360ºappraisalintheindustry3.1NEEDANDIMPORTANCEOFTHESTUDY

Thisstudyisconductedwithrespecttounderstandingthedifferentappraisalsystemsconductedinthesoftwareindustryandtheireffectsthereafterinthesam

e.Duetotimeandresourceconstraints,thestudywasrestrictedtothesoftwareindustryinDelhiRegion.

3.2OBJECTIVESOFTHERESEARCH1.Tofindoutthedifferentappraisalsystemsfollowedbysoftwarecompanies.2.Tofindoutwhoappraisestheemployees.3.Toanalyzeandstudythebenefitsoftheappraisalsystems.4.Toanalyzetheshortcomingsoftheappraisalsystems.5.Toidentifythecriteriaandmeasuresadoptedtoevaluateemployeeperformance.6.Tofindoutthelevelofeffectivenessofthe360degreefeedbacks.3.3REVIEWOFLITERATUREPurpose



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTIONTheliteraturereviewsectionexaminestheimportanceofsearchstudies,companydataorindustryreportsthatserveasafoundationforthesetupofstudy.Theresearchdimensionoftherelatedliteratureandtherelevantinformationbeginsfromanexplanatoryperspective,approachingtowardsspecificstudieswhichdorelatedtothejudgethelimitationsandinformationalgapsindatafromthesecondarysources.Thisanalysismayrevealconclusionsfrompaststudiestorealizethereliabilityofthesecondarysourcesandtheircredibility.Thisinturnenablesonetorelyonacomprehensivereviewforthestudy.

ANALYSISOFPREVIOUSSTUDYAsurveyaboutcurrentpractice,whichisfollowedin

companiestoappraiseperformance:(Phatak,InternationalDimensionsofManagement)Almostallsoftwarecompaniesrespondingdohaveformalappraisalprograms.About93%ofsmallerorganizations(thosewithfewerthan500employees)havesuchprograms.About97%oflargeorganizationshavethem.Ratingscalesarebyfarthemostwidelyusedappraisaltechnique.About62%ofsmallorganizationuseratingscales,20%useessays,andabout19%useMBO.Amongthelargeorganizations,51%useratingscales,justover23%useessaysandabout17%useMBO.However,thoseusingratingsasthemainappraisaltechniquetypicallyalsorequirenarrativecommentstojustifyratingandtodescribeemployeestrengthsandweaknessanddocumentdevelopmentplans.Thoseusingessaysasthemainappraisaltechniqueusuallyrequireanoverallquantitativeperformanceratingtofacilitateemployeecomparisonsforcompensationdecisions.Theemployee’simmediatesupervisormakesNinetytwopercentofappraisals.Theseappraisalsareinturnrevie

wedbytheappraiser’ssupervisorin74%oftherespondingorganizations.Onlyabout7%oftheorganizationsuseself-appraisalinanypartoftheoverallappraisalprocess.Virtuallyallemployees(99%)areinformedoftheresultsoftheirappraisals.Overallabout77%aregivenachancetorespondwithwrittencommentsontheirappraisals.In69%ofcompanies,appraisalsaredoneannually.

METHODSOFREVIEWINGTHELITERATURE



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTIONThereviewofliteraturedoesscrutinizetheimportantresearchstudies.Theprimarysourcesthatproviderelevantinformationarethebestformtoretrievedatafromtheresearch.Theprimarysourceswereencouragedwiththehelpofdistributionofquestionersaswellasconductingpersonalinterviews.Withthisthedatareceivedenablestheresearchertoaccuratelyarriveattheproblemofthestudyandtheconsecutivelysolutionstothesame.Thesecondarysourceswerealsoreliedonforadditionalinformation.Itincludescompanyjournal,newsletters,records,manualsetc.CONCLUSIONPerformancemanagementlaysanevaluativeanddevelopmentaldimensiontoitsmakeup,andiscrucialinbothlinkingrewardstoperformanceandprovidingaplatformforthedevelopmentofemployees.Overconcentrationonth

eassessmentofperformancecanworktothedetrimentofeffortaimedatestablishingthedevelopmentneedsoftheindividualinanopenandhonestway.Themanager,asanappraiser,mayencounterdifficultiesinreconcilingtherolesof judge and mentor .Managersneedtodeveloptheskillsofcopingwithsuchtensionsintheirroles.Insomeorganizations,thisproblemissolvedbyhavingdifferentmanagerscarryingoutperformanceanddevelopmentappraisals.Appraisalprovidesthecontextinwhichmangerscanseektoensurethatthereisacceptablecongruencybetweentheobjectivesoftheindividualandthoseoftheorganization.

4.RESEARCHMETHODOLOGYTYPEOFRESEARCHTheresearchdesigncompriseoftheplanandstructureofinvestigationconceivedsoastoarriveattheresponsestotheresearchqueries.It

therebyaddressestheaimsandobjectivesofthestudy,bothdescriptivelyandanalytically.

SAMPLINGTECHNIQUEThesamplingtechniqueadoptedforthestudyisnon-probabilityRandomsamplingtechniqueaccordingtotheconvenienceoftheresearcher.AquestionnairewasadministeredtoHRmanagers/executivesofdifferentsoftwarecompaniestoobtaindataforthepurposeofanalysis.SAMPLESIZEDataiscollectedusingasampleof30softwarecompanies.

SAMPLEDESCRIPTION




Thesamplemainlyconsistsofdatafromtheprimarysourcesthatareutilizedforthepurposeofthisstudy.Thisisdonebymeansofadministratingquestionerstohumanresourcemanagers/executivesindifferentsoftwarecompaniesinthecityofBangalore.Secondarydatalikecompanyjournals,newsletters,recordsetc.werealsoreliedonforretrievingfurtherinformation.INSTRUMENTATIONTECHNIQUE

Questionnaireandstructuredisguisedquestions.ACTUALCOLLECTIONOFDATA

Bothsecondaryandprimarysourcesofdataareutilizedforthepurposeofthisstudy.PrimarydataiscollectedbymeansofadministeringaquestionnairetotheHumanResourceManagers/Executivesindifferentsoftwarecompanies.Secondarydataiscollectedfromvariousrecords,manualsandothersourcesoftheHRDepartment.TOOLSUSEDFORTESTINGOFHYPOTHESIS

Inattemptingtoarriveatadecisionaboutthepopulationonthebasisofthesampleinformationitisnecessarytomakeassumptionsorguessesaboutthepopulationparametersinvolvedsuchanassumptioniscalledstatisticalhypothesis,whichmayormaynotbetrueornotiscalledtestofhypothesisortestofsignificance.Inthetestofhypothesisitbeginswithanassumptionorhypothesisis

calledNullHypothesis.Thenullhypothesisassertsthattherearenosignificantdifferencesbetweenthestatisticsandthepopulationparametersandwhateverobservesdifferenceistheremerelyduetofluctuationsinsamplingfromthesamplepopulation.Nullhypothesisisusuallydenotedbythesymbol,Ho.AnyhypothesisthatcontradictstheHo(nullhypothesis)iscalledanalternativehypothesisandisdenotedbysymbolH1.hypothesisisTestforproportion.TESTFORPROPORTION

Thetechniqueusedtotestthe




Supposethepopulationofanattributeinapopulationisnowknown,wewanttotestwhethertheproportionisagivenvalueP.ThenullhypothesisisHo:p=P.ThealternativehypothesisisH1:pP.Thelargerandomsampleofsizenfromthepopulation,letxunitspossesstheattribute.Thenthesampleproportionisp=x/n.

Andso,Z=

p-P

PQnTherefore,theteststatisticsis|Z|=

P=assumedlevelofeffectivenessQ=1-Pp=levelofeffectivenessofsamplen=samplesize

Forthesample,if|Z|cal>k,Hoisrejected.Ontheotherhand,if|Z|cal<Hoisaccepted.OTHERSOFTWAREUSEDFORTHEDATAANALYSIS

Forthedataanalysis,andthesubsequentinterpretationtheresearcherhasadoptedadvancedversionofMS-EXCEL2000.Thisapplicationsoftwarehasfacilitatedtheresearchertoconstructthefrequencytable,variouskindsofgraphsandto

findouttheaverageresponsesfromthesample.Bythisautomateddataanalysisithasminimizedtheresearcher’stimeconstraintandreducedhumanerrorsandalsoaccurateoutlayofinformation.




5.QUESTIONNAIREThereweretwoquestionnaireweredesigned.Firsthasbeendesignedtoassessthejobsatisfactionlevelandmoraleoftheemployeesintheorganization.SecondwasdesignedfortheHRofthespecificsoftwarecompanies.

HOWYOUFEELABOUTYOURJOB?Thequestionnaireconsistsofninesections,eachsectionhavinganumberofstatements.Pleaseanswerallthestatements.Youarerequestedtobehonestandfrankinyourreplies.Youarenotrequiredtowriteyourname.Theanswersgiven

byyouwillbekeptconfidential.

Pleaseassesstheextenttowhicheachstatementdescribesyouandyourorganizationusingthefollowingfivepointratingscale;encirclethemostappropriaterating.

1.StronglyDisagree(SD)2.Disagree(D)3.Indifferent(I)4.Agree(A)5.StronglyAgree(SA)

SECTIONI(PersonalDetails):1.Age:______________________________________2.Experienceinthepresentorganization:___________

SECTIONII(JobItself):S.NO:A.3.

SD

D

I

A

SA

TASKSIGNIFICANCEMyperformanceonthetaskdeterminesorinfluencesperformanceofmycolleaguesalso.12345

B.

TASKIDENTITY



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTION4.Ifeelthatthetask(s)Iperformneedindependentchargeandcannotbeclubbedwithsomeotherresponsibility.12345

C.5.6.

SKILLVARIETYTheorganizationbelievesinmulti-skilling.Iamgivenanopportunitytodevelopmyskillsfurthertodomyjobintheorganization.1122334455

D.7.8.

AUTONOMYIamgivenindependenceinimportantdecision-making.ThereisflexibilityandfreedominthejobthatIdo.1122334455

E.9.

INTERESTINWORKMyjobisusuallyinterestingenoughtokeepmefrombeingbored.12345

10.

MostdaysIamenthusiasticaboutmywork.

1

2

3

4

5

SECTIONIII(JobAdvancement/ScopeForAdvancement):S.NOSDGROWTHPROSPECTS/PROMOTIONS11.IfeelIcanpersonallydeveloporgrowinmyjob.12345

D

I

A

SA

12.13.14.

Promotionsdecisionsaretakenobjectively.Thecompanyhassatisfactorypromotionpolicy.Goodperformanceisalsoconsideredinpromotiondecisions.

111

222

333



444

555

SECTIONIV(ManagementResponsiveness):S.NO:A.15.

SD

D

I

A

SA

RECOGNITIONANDAPPRECIATIONIfeelthatmyeffortsarevaluedinthecompany.12345



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTION16.IwillberecognizedandappreciatedwhenIwillgobeyondwhatisexpectedinmyjob.12345

B.17.

FEEDBACKMysupervisor(s)constantlyprovidemefeedback,whichenablemetoimprovemyperformance.12345

C.18.

MONETARYBENEITS(Pay,Perk,Benefits,Compensation)Thereisasignificantcomponentinmycompensationpackagethatisperformancelinked.12345

19.

Allincentiveschemesaretransparent.Linkagesofincentiveswithperformanceareclear.

1

2

3

4

5

20.

Comparedwithpeopleinsimilarjobsinothercompanies,Ifeelmypayisfair.

1

2

3

4

5

21.

Ipersonallyfeelthatmonetaryrewardsalonearenotsufficienttomotivateme

toworkbetter.

1

2

3

4



5

D.22.

SECURITYInmyunderstanding,thereisnothreattomyjobduetoredundancyoranyotherreason.12345

E.23.24.

PARTICIPATION/PARTICIPATIVEMANAGEMENTMysuperiorsinvolvesmeinthedecisionmakingprocess.Icanexpressfranklymyfeelingsandreactionsinthemeetingsandtomyseniormanagers.1122334455

25.

Ipersonallyfeelthatmysubordinateshavetobegivenverycleardirectionstoexecutetheirwork.

1

2

3

4

5

F.26.

GRIEVANCEHANDLINGThereisafairlyclear-cutanddetailedgrievancehandlingmechanisminplacei

nmyorganization.12345

G.27

TRAININGANDLEARNINGMycompanysendspeoplefortrainingwhentheyneedtolearnnewthingsrelatedtotheirjobprofile.12345

28.

Itismycompany’sexpresspolicytoproactivelytrainpeoplefromalongtermH.Rdevelopmentperspective.

1

2

3

4

5




H.29.30.

COMMUNICATIONSYSTEMIamkeptinformedonwhatgoesonhere.Iamsatisfiedwiththecommunicationandthewayinformationflowsaroundinmyorganization.1122334455

I.31.

REWARDMainlyexcellenceinperformanceandgettingtasksaccomplishedisrewarded.12345

32.

Knowledgeandexpertisearerecognizedandrewardedhere.

1

2

3

4

5

SECTIONV(WorkingGroups&Culture):Factorsincludedinthisare:1.Supervision(Qualityofsupervision,supportfromsupervisors,supervisorytreatment,competencyofthesupervisor)2.Relationshipwithco-workers3.Supportfromco-workers4.Cohesiveness5.Teamwork6.Culture

S.NOA.

33.

SDSUPERVISIONMysuperior/bossgivesmeenoughfreedomtodothingsinmyownway.1

D

I

A

SA

2

3

4

5

34.



MybossprovidesmeenoughguidanceabouthowIshouldperformmyjobwell.

1

2

3

4

5

35.

Supervisorstrytousetheirexpertiseandcompetenceratherthantheirformalauthorityininfluencingtheirsubordinates.

1

2

3

4

5

B.36.

WORKINGGROUPSIfeelthat‘we’workasateamofmutuallycomplementingindividualsinoursection/department.12345

37.

Mycompanyprovidesenoughconduciveenvironment–formallyandinformally–towork

inteams.

1

2

3

4

5



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTION38.39.Peoplegetalongwellwitheachotherinmysection.ThepeopleIworkwithareveryfriendlyandsupportiveofoneanother.1122334455

SECTIONVI(Status/OccupationalStatus):S.NO:40.Idon’tcareaboutrankandjobtitles;itswhatIamdoingisimportant.41.Ithinkmypositionshouldbereflectedthroughvariousstatussymbols,etc.42.Myorganizationensuresthathierarchicaldifferencesareclearlydiscernible.123451234512345

SD

D

I

A

SA

SECTIONVII(WorkingEnvironment):Factorsincludedinthisare:1.Conditionsofwork,physicalenvironment2.Workinghours3.Fatigueandmono

tony4.Provisionoffood5.Transportation

S.NO43.44.Ihaveconvenientworkinghours.IfeelexhaustedbythetimeIamthroughwithmyday’swork.45.Inatypicalday’swork:Wegetgoodlunchandothersnackingitems.46.Transportationtomyworkplaceandbackiscomfortableexperience:Becausethecompanyhasgoodtransportationfacilities.

SD11

D2233

I

A44

SA55

1

2

3

4

5

1

2



3

4

5




SECTIONVIII(SocialRelations):Factorsincludedinthisare:1.Participationinsocialactivities2.Friendsandassociates.S.NO:47.48.Myinteractionwithcolleaguesextendsbeyondofficehours.Ourcompanyorganizeslotofeventslikesportsmeet,recreationalactivities,familyoutingsetc.1122334455

SD

D

I

A

SA

SECTIONIX(OrganizationalCommitment):S.NO:49.IthinkIcanproudlytellthenameoftheorganizationIworkfor.50.Evenifthecompanywouldreducemysalarybecauseoffinancialproblems,Iwouldbereluctanttochangetoanothercompany.1234512345

SD

D

I

A

SA

QUESTIONNAIREFORHRNameoftheOrganization:Designation:TotalNo.OfemployeesintheOrganizatio

n

1.Doyouappraiseanemployeebyanappraisalsystem?

Yes

No

2.Ifyes,whatisthesystemofappraisaladoptedbyyourcompany?

3.Howoftenareappraisalscarriedoutinyourorganization?QuarterlyAnnuallyHalfYearlyOthers(PleaseSpecify)




4.Whatarethecriteriausedinyourcompanytoevaluateanemployee?PerformanceTechnicalCompetenceTargetVs.AchievementQualityofOutputCustomerFocusAttendanceKeyResultAreas3PointScale

5.Whatistheratingsystemusedinyourcompany?ScoringBothIfscoringisitAlphaBoth6.Doyouobtainfeedbackonthepersonbeingappraised?YesNoNumericComments

7.Howisfeedbackgiventotheemployees?WrittenDetailedSelf-AssessedOralS

ummarizedManagerAssessed

8.Doyousharebothpositiveandnegativefeedbackwithappraiseinthesamemeeting?YesNo

9.Doyoufollowaself-assessmentofanemployee?YesNo

a)Ifyes,isitintegratedintotheappraisalsystemyoufollow?YesNo

10.Iscompensationincreaserelatedtoanappraisalinanyway?YesNo

11.Doestheappraisersettargetsforanemployeebeingappraised?YesNo



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTIONIfyes,forwhatperiod?3Months6Months3-6Months12Months

12.Doyouhaveachecklistforcarryingoutappraisals?Yes13.Doyoufollowcareerplanning?YesNoNo

14.Whatwouldbethelevelofeffectivenessof360scorewhenimplementedasaformofappraisal?Lessthan20%35%-50%20%-35%above50%

6.CHAPTERISATIONSCHEMETheprojectwoulddeliverthefollowingtopics:IntroductionResearchde

panyprofileApproachesofperformanceappraisalFindings,suggestionsandconclusionsBibliographyandAnnexure

6.1.IntroductionThischapterwouldprovideashortintroductionofwhatisPerformanceAppraisalandtheBackgroundoftheresearchandwhatwouldbedividedon3basicchaptersasmentionedbelow.

6.1.1

BackgroundoftheStudy

ThischapterwouldbedesignedinsuchawaytoprovideanoverallscenariooftheITworldandthelateralshiftoftheMethodsusedandresultobserved.Almos

tallsoftwarecompaniesrespondingdohaveformalappraisalprograms.About93%ofsmallerorganizations(thosewithfewerthan500employees)havesuchprograms.About97%oflargeorganizationshavethem.

6.1.2IntroductiontotheITSystem?ThischapterwillhaveanelaboratedescriptionofInformationTechnologyandERPsystems.ERPwhichisoneofthelatestdevelopmentsinsoftwareforbusinessenterprisewideResourcesPlanning(ERP)Systemisanintegratedbusinessmanagementsystem



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTION6.2.ResearchDesignTheresearchintendstostudythedifferentapproachesofappraisalsadoptedbysoftwareCompanies.

6.2.1

Statementoftheproblem

Italsoanalysesthemostcommonlyoccurringerrorswithinperformanceappraisalmethodsandtounderstandthelevelofeffectivenessof360ºappraisalintheindustry6.2.2Needandimportanceofthestudy

Thisstudyisconductedwithrespecttounderstandingthedifferentappraisalsystemsconductedinthesoftwareindustryandtheireffectsthereafterinthesame6.2.3Objectivesofthestudy

Tofindoutthedifferentappraisalsystemsfollowedbysoftwarecompanies6.2.4Reviewofliterature

Theliteraturereviewsectionexaminestheimportanceofsearchstudies,companydataorindustryreportsthatserveasafoundationforthesetupofstudy.6.2.5Operationaldefinitionsofconcepts

Amorecomprehensivedefinitionis,“Performanceappraisalisaformalstructured

systemofmeasuringandevaluatinganemployee

sjobandhowtheemployeecanperformeffectivelyinfuturesothattheemployee,organizationallbebenefited."6.2.6ResearchMethodology

6.3.Companyprofile

6.3.1.IndianITindustryTheIndianIT-ITESindustryisbroadlycategorizedintoITservicesandsoftware,ITES-BPOandHardwaresegments.Theindustrycontinuestochartremarkabledouble-digitgrowth,withindustryaggregaterevenuefor2005-06expectedtoreachUS$28billion.TheindustryisforecasttogrowmorethanfivefoldoverFY1999-06,ataCAGRof28percent.6.3.2.IndustryTrends.6.4.APPROACHESOFPERFORMANCEAPPRAISALAnalysisofdatawasdonewiththepurposeofsummarizingthecollecteddataandorganizingtheseinsuchamannerthat

theyanswertheresearchquestions.Percentageanalysiswasusedforanalysis



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTIONofdataandtheresultshavebeenpresentedbywayofpiecharts,barcharts,withthehelpofSPSSpackage6.5.Conclusion

AttheendoftheprojectreportwecanmentionwhyanorganizationwouldandshoulduseanEffectivePerformanceAppraisalstechniquesanditskeybenefits.6.6.Bibliography&Annexure6.6.16.6.26.6.3ListofTablesListoffiguresQuestionnaire

7.PERFORMAFORSYNOPSISOFPROJECTWORKPROFORMAFORSYNOPSISOFPROJECTWORKName:AmitKursijaAddressforCorresponde

nce:BA/45-BPhase1AshokViharDelhi110052MobileNo:+91-9873253288Majorareaofspecializationinwhichprojectworkistobeundertaken:HumanResourcesQuestionnaireattached:YesResumeofProjectGuideattached:YesConsentletterofProjectGuide:YesPhoneNo.ofProjectGuide:9990688283Dateofsubmission:August14,2008Enrol.No.:52102420




8.GuidesResumeAspertheguidelinespleasefindbelowtheresumeofMr.RajivMalhotrawhohasguidedandhelpedmedesignthebelowproject.HealsoassistedmerunthisprojectwithinourorganizationandassistedtogogetthedatafromtheothersoftwarecompaniesindelhiandNCRregion,withouthisapprovalandhelpthiswouldnothavebeenpossible.ObjectiveTospecializeinorganizationlevelHumanResourcePlanningandDevelopment.TokeepdevelopingHRskillsandbeapartofadynamicteamandhelptheorganizationgrow,bysuggestingandimplementinginnovativeHRpoliciesandinitiatives.AcademicprofileMasterofPersonnelMan

ent&IndustrialRelations(MPM&IR),2YearsFullTimePostGraduateCoursefromJiwajiUniversity,Gwalior(1999)HigherDiplomainSoftwareEngineering(HDSE)fromAptech.(MS-DOS,Windows95/98/NT,MS-Office,C,C++,Oracle,D2k,Networking,SSAD,InternetBrowsers)(1999)B.ComfromJiwajiUniversity,Gwalior(1997)PursuingDiplomainTraining&DevelopmentfromISTD,Delhi(FinalSemester)

WorkExperienceS.NO1.2.ORGANISATIONIntersoftDataLabsPvt.LtdFidelityNationalInformationServices(EarlierknowasSecondFoundationIndiaPvtLtd)NationalDairyDevelopmentBoard(NDDB)DeusTechnologyDESIGNATIONManager-HRAssistantManager-HRDURATIONAug2006–TillDateAug2005–Aug2006

3.4.

DeputyManager-HRSeniorExecutive-HRRecruiter

Aug2004–Aug2005Nov2002–July2004Oct1999–Nov2002

August2006toTillDate

:

IntersoftDataLabsPvt.Ltd.,GurgaonManager-HR

HandlingateamofsevenHRprofessionalsandoverseeingallHRactivitiesoftheorganizationincludingrecruitment,peoplepractices,employeesatisfaction,performancemanagement,organizationaldevelopment,audits(BS7799,ISO27001,CMM

i)andcompensationmanagementetc.

KeyResponsibilitiesHRStrategyandprocessesoContributingtoHRstrategyandensuringthatactionplansarecreatedandimplementedtoimplementthestrategy.oIdentifyingKeyResultAreasfortheprocessesannuallywithrespecttobusinessOperationswithinputsfromthebusinessheadsandmonitoringtheimplementationofthese.oDesigningofrolecompetencymatrixforeachroleintheorganization.oDocumentationandreleaseoftheHumanResourcesManualfortheorganization.oDesignedDevelopedandimplementedPeopleManagementpoliciesandprocessesafterbenchmarkingwiththebestintheindustryandaspercompanyrequirements.



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTIONDefineandimplementstrategiesforrecruitment&resourcemanagementoDefineandimplementstrategiesforrecruitment&resourcemanagement.oDefinemanpowerrecruitmentplan.oDefineprocessesandpoliciesforselection,outsourcingandinduction.oInterviewandshortlistcandidatesforinterviewswithlinemanagers.oManageCampusandOffCampushire.oConceptualizeanddefinesystems&toolstosupportResourceManagement.oAllocateresourcestoprojectsbasedonprojections.oDeveloping,MonitoringandMaintainingofdatabaseonthebasisforimmediatefuturemanpowerrequirements.Prepare/UpdateMonthlyManpowerReport.EmployeeManagement&OrganizationalDevelopmentoFacilitationofODInitiativeslikecompensationbenchmarking,openhouse,E-Satetc.oConductingExitinterviewandprep

aringAttritionAnalysisaspartofretentionstrategy.oActivelyparticipatedinImplementationofQualitySystemforsuccessfulcertificationofBS7799,ISO:27001&CMMi.oEnsuringeffectiveHRServicesdeployment,Processcompliance&ServicedeliveryasperSLA.oSharinginformationwiththeemployeesindifferentforums.oTakingcareofentireemployeeengagement/retention/welfare.oEmployeeSatisfactionIndexonaquarterlybasestoensureatransparentcultureandhealthyenvironment.EnsuringfulfillmenttoInternalCustomer’sexpectationsontime.Counselingemployees,fromtimetotimeonbehavioralattributes,defusingconflicts,buildingacongenialandperformancefriendlyworkatmosphere.oAnchoringtheemployeehelp-desk.Addressingemployeeissuesandconcerns.oOrganizingGet-togethers(Monthly/Annual)likeFunFriday;EmployeeDay;FamilyGettogethers;Monthlysportscompetitions.oCorporateSocialResponsibility-BloodDonationcamps,Computerliteracycamps,Philanthropy,oVisitstovariousNGO

.TrainingandSkillDevelopmentoPrepare/MaintainAnnualTrainingCalendar,TrainingAttendance,FeedbackRecords,MeasuringTrainingEffectivenessandTrainingAnalysis.oPlanforandscheduletheinductioneventsinanticipationofthedatesofjoiningofIndividuals.Ensurecompletionofjoiningformalitiesintermsofprocessstepsanddocumentation.oSkillInventoryApplicationMaintenance.PerformanceManagementoEnsuringafairandtransparentprocessofappraisalthroughfeedbacksessionswithemployeesandHumanresourcepresence(wherenecessary).oManagingtheoverallAppraisalprocess–PolicyFormulation&Clarification,communication/rollouts,coachingemployees/managersinwritingeffectiveappraisals,DataValidation,GoalSetting,SelfAppraisal,Appraiserevaluation,Reviewerevaluation,identifyingdevelopmentplansforemployeesconductingensuringtheappraisalprocessisclosedwiththetimeline.oPerformanceNormalizationmeetings,Post-Appraisaldatamapping,analysisandfinalizationofrew

ards.

August2005toAugust2006

:

FidelityNationalInformationServices(EarlierknowasSecondFoundationIndiaPrivateLimited),ChandigarhAssistantManager-HR

CompanyProfileFidelityNationalInformationServices(EarlierknowasSecondFoundationIndiaPrivateLimited),aleadingproviderofglobalsoftwareservices,specializesinBusinessIntelligence,SoftwareSecurityandWebServicessolutions.Ithousesmorethan650employees.




JobResponsibilitiesPolicies&ProceduresoDrivethedesignandimplementationofHRstrategiesinahighgrowthenvironmentandalsoformulatecomprehensiveHRpolicies.oDesignedDevelopedandimplementedPeopleManagementpoliciesandprocessesafterbenchmarkingwiththebestintheindustryandaspercompanyrequirements.oDocumentationofpolicies&processesnecessaryforsmoothimplementationofpolicies.Regularreviewofpolicies&processimprovements.CapacityPlanningandRecruitmentoPreparingandmonitoringrecruitmentplanoEnsuringacquisitionofthebesttalentthroughaprocessofrecruitmenttestsandinterviews.oPlanforCa

mpusandOffCampushireanditsimplementation.oSourcingtalentandtheirReferenceCheck;Backgroundandemploymentverification.PerformanceManagementoAssistedinreviewandimplementationofeffectiveperformanceappraisaluniformlyallacrosstheorganization.oDefiningvariousroleswithintheorganizationaswellasskillrequiredateachlevel.(JobandRoleDescriptions).Definingtheorganizationstructureandcareerprogressionpath.oManageGoalSettingExercise.ODInitiativesoFacilitatinghealthyorganizationalculturebypromotingopenhousediscussions,suggestionschemes,E-Sat(ESS),Intranetetc.oEmployeeEngagementactivitieslikeOpenHouse,MonthlyEvents,EmployeeEvents,Celebrations,YogaClasses,GrievanceHandlingetcoManageexitformalities.Conductexitinterviews,analysisandfinalizeF&Fsettlement.ActivelyparticipatedinImplementationofQualitySystemforsuccessfulcertificationofISO:9001:2000.TrainingsoOrganizingtrainingprogrammesforexistingemployeesandfreshers

hiredthroughcampus&offcampus.oOrganisingInductiontrainingsfornewhires.oIdentificationofbehavioralandtechnicaltrainingneeds.oGeneratingfeedbackfromthetraineeswithregardtothebenefitsdrawnfromthetraining.CompensationManagementoTogatherandupdateinformationaboutthecompensation/salary,employeewelfareandincentiveschemeswithrespecttocompetitor’svis-à-vismarketintelligence.oImprovecommunicationofpoliciesandbenefitsthroughBenefitscampaigns;PolicyclarificationsessionsfortheHRandResourcingteam;Timelyresponsetoqueriesonpoliciesandbenefits.oConductSalarybenchmarkingexercises.oActiveinteractionwithResourcingteamfortakinginputsonmarkettrendsandequipthemwithrecruitmentguidelines.ComplianceoShopsandEstablishmentoPFComplianceoPayrolloContractualstaffoMediclaimInsurance



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTIONAugust2004toAugust2005(Gujarat):NationalDairyDevelopmentBoard(NDDB),Anand

DeputyManager-HRCompanyProfileTheNDDBisaPublicFinancialInstituteandwascreatedtopromote,financeandsupportproducer-ownedandcontrolledorganizations.FundamentaltoNDDB seffortsarecooperativeprinciplesandtheAnandPatternofCooperation.Ithousesmorethan1500employees.

JobResponsibilitiesHumanResourceInformationSystem(HRIS)-ERPImplementationoUndertakenecessaryactionsforimplementationofHRIS(ERP-Orion)module.oProvidesupport/inpu

tsincontextofproblemsarisingduringimplementation.oContinuallymonitorHR/Clientinformationneedsanddesignnew/modifyexistingsystemtomeetchangingrequirements.oProvideaccurate,timelyresponsestoinformationrequestsfromoperatinggroups,SupportGroupandothersasappropriate.oDesign,generatesanddistributesavarietyofreportsandstatisticalsummaries.Prepareandsubmitperiodic,recurringactivity&statusreportstosuperiorsTraining&DevelopmentoDevisinganInductionIntersoftDataLabsPvt.Ltd,Compensation,etc.oOrganizingtrainingprogrammesforOfficers&Staff,Identificationoftrainingneeds,Generatingfeedbackfromthetraineeswithregardtothebenefitsdrawnfromthetraining.PerformanceManagementoProcesstheAppraisalsoftheemployees,Initiationappraisalformsandfollow-upfortimelyreceiptofthesame.oAssistedinSixMonthly&AnnualPerformanceFeedback.OperationsoResponsibleforpersonnelfunctionslikejoining,LTA,Separation,Full&FinalSettlement,

etc,FormulationofOrganizationStructure.oEmployeegrievancehandling.IssuanceofVariousCertificatesi.e.NOCforPassport,NOCforVisa,Verification,ResidenceProof,ServiceCertificatesetc.oPeriodicVoluntaryMedicalCheck-up(PVMC),PermissionforHigherStudies,Training/VisitsAbroad.ProposalstoMDforapprovalforvariousotherpurposes.oImplementingformalsystemofInternalCommunication-InteractionmeetingwithUnions,OtherparticipativeForums.oWelfareactivitiesforemployeesandtheirfamilymembers.oLiaisoningwithAllDepartmentHeadsregardingHRrelatedmatters.Oct1999toJuly2004:DeusTechnology,DelhiSeniorExecutiveHRRecruiter(Nov2002toJuly2004)(Oct1999toNov2002)

JobResponsibilitiesRecruitment&SelectionoOrganizingtheentirerecruitmentprocess.oSourcing–Ad

vertising,Jobportals,Consultants,Referrals,Headhunting,coldcalling,InternetresearchingGettingReferencesetc.oMaintainingtargets&quality.oInitialscreening,Scheduling&CoordinatingforfurtherInterviews.oResponsibleforrecruitmentsatalllevelsandspheres(National/Overseas)oOfferNegotiations&Followup,ReferenceChecking.oGenerationofactivityreportsandanalysis.



PERFORMANCEAPPRAISALSANDEVALUATIONOFEMPLOYEESATISFACTIONoInduction,Verifycredentialsifrequiredthroughverificationprocess,Statutorycompliance,Confirmations,Probationreports,Confirm/Extension/Termination.

PerformanceAppraisaloToorganizeAppraisalsasperthepolicyandtoEnsureAppraisalsaredoneandareinorder.oPerformanceevaluationandcompilationandfinalizationofrewards.oIssuepromotion/incrementletterasapplicable.PayrollManagementoResponsibleforpreparingSalarystatementeverymonthwithallnecessarydeductionandtimelyodisbursement.oProvidingsalarystatementandmonthlyreporttoaccountsdepartmentonamonthlybasis.OperationsoAttendance&LeaveManagement,Full&Finalpreparation,ExitInterviews,EmployeesC

ommunication,EmployeesDatabaseManagementetc.oIntroducedSuggestionBoxandMovementRegisterintheorganization.oDraftingofOfferLetters,AppointmentLetters,andExperienceLetter,RelievingLetter,IncrementLetter,andSalaryCertificateetc.oIssueofWarningLetters,MaintainingDisciplineMaintenanceofharmoniousRelation.oDesignandregularlyupdatingtheHRmanual.oOrganizingemployeesget-togethersandpartiestocelebratethespecialoccasions.oInductionTrainings,TrainingtoResourceExecutives.oEnsurecompliancesw.r.t.PF,Gratuity,Shops&EstablishmentAct,etc.oGeneraladministrationactivities-Telephone/Fax,LibraryManagement,Hotel&TravelArrangement,etc.

ProfessionalMembershipsDetails

oIndividualLifeMemberofNationalHRDNetwork(NHRDN),DelhiChapter.oStude

ntMemberofIndianSocietyforTraining&Development(ISTD),DelhiChapter.OrganisationTrainingDetailsTraining/MembershipTrainingonMetricsIntroductiontoCMMiBusinessCommunicationStressManagementTrainingOnESI,PF,Bonus,GratuityPersonnelFunctions(OJT)GrievanceHandling(ST)PersonalDetailsDateOfBirthPermanentContactAddressPhonePassportNoDrivingLicenseNo.17thJan,1977‘BhardwajSadan’,CityCentre,OppositeBSNLBuilding,TulsiVihar,Gwalior(M.P)-474011.0751-223876A8539380Y-1964/20OrganisationIntersoftDataLabsPvt.Ltd.IntersoftDataLabsPvt.Ltd.FIS(SecondFoundation)NDDBATCInfotech(P)LtdFlexIndustriesLtdHTCLtdDurationHalfDay1Day2Days1Day1Month3Months2MonthsDateMay28,2007Apr12,2007May12-13,2006Jan2005April-May200019991998




1.1BackgroundoftheStudyInformationtechnology(IT)revolutionizedmanyaspectsofabusiness.Thereishardlyanyorganizationwhichhasnotinstalledatleastoneubiquitouscomputer.Thereisawidechoiceforcomputerusers-fromasimplePCtosophisticatednetworkofcomputers.Applicationsofcomputersinvariousfunctioniscommonthesedays;frommeredatastoragetomoreadvancedsoftwarepackageslikeERPwhichcandomanythingsinanorganizationbutfortunately,cannotsubstitutecommonsenseorhumaningenuity.ItiswelltorememberthatITisonemoretoolinhandsofamanagementtogetthingsbetterandfaster.ExampleofITapplication

,ERPwhichisoneofthelatestdevelopmentsinsoftwareforbusinessenterprisewideResourcesPlanning(ERP)Systemisanintegratedbusinessmanagementsystemwhichcoverssomeimportantaspectsofbusinesssuchaslogistics,production,finance,accounts,humanresources,planning,materialsandwarehousemanagement.Rightfromthereceiptofaninventory,anERPsystemtracksmaterials,capacityandlaborresources.ThusanERPsystempackageclaimstoaidabusinesstomanageitactivatesdynamicandintegratedmanner.ButitisequallyimportanttounderstandandappreciatetheflipsideofsuchsophisticatedITpackageslikeERP.Firstofallthepeoplehohandlesuchapackagemustbequalifiedandmustpossesrelevantworkexperienceinthefunctionalmodule,whichapersonwantstogettrained.Anorganization,whichwishestoworkwithERP,musthavealreadyhadexperiencewithproperworkingITinfrastructure.Thereshouldbeenoughnumberofterminalsforconcernedpeopletokeyindataorrunaquery.Oneof

thetoughestthingstoovercomeistheattitudeofthepeopleforadaptingtoachange.Thususheringinanew"ITculture"remainsoneofthegreatestchallengesforanymanagementinterestedinadaptingITasatoolinasmanyfunctionsoftheorganizationaspossible.




ThevitalroleofITistosupportamanagementandnotcontrolit.ThustheITmostunderstandstheirrolevis-à-visdecision-making.JustbecauseasophisticatedITpackagehasbeeninstalledinanorganizationcannotguaranteesuccess.Ifforexample,avendorissupplyingpoorqualitysuppliesconsistently,theinformationsystemwilltellthemanagementofsuchafactfaster.Butnowitisuptothemanagementtoinitiatecorrectivemeasures-visitvendortoassisthimtocomeuptostandard,developalternatevendororimport.Somecautiousmanagementwouldliketoimplementinformationsystemmodulebymoduletogainexperience.Suchaproceduremayormaynotguaranteesuccess.SomeITexpertsurgeanorg

anizationtoimplementatotalITsystemsuchasERP-aclassiccaseofallorbust.Intheenthusiasmtoappearverymodernandup-todateamanagementmaygoinforITpackagewhenthegroundrealitywithintheorganizationisnotconductivetosuchadrasticchange.Ontheotherhandafewwell-triedtechniquesdowondersforanorganization.Forexample,anorganization surgentneedmaybetochangeexistingtechnologytoanupgradedone.AnERPpackageobviously,won ttellthemanagementtodojustthat.Also,afewtime-honoredprincipleslike"doitrightatthefirsttime"mustbefollowedinanorganizationwithorwithoutasophisticatedITtools.AresponsiblemanagementwillputtheITinitsplacetoservetheoverallbusinessinterests.

2.1StatementoftheProblem




TheresearchintendstostudythedifferentapproachesofappraisalsadoptedbysoftwareCompanies.Italsoanalysesthemostcommonlyoccurringerrorswithinperformanceappraisalmethodsandtounderstandthelevelofeffectivenessof360ºappraisalintheindustry2.2NeedandImportanceoftheStudy

Thisstudyisconductedwithrespecttounderstandingthedifferentappraisalsystemsconductedinthesoftwareindustryandtheireffectsthereafterinthesame.Duetotimeandresourceconstraints,thestudywasrestrictedtothesoftwareindustryinBangaloreCity.2.3ObjectivesoftheResearch

1.Tofindoutthedifferentappraisalsystemsfollowedbysoftwarecompanies.2.Tofindoutwhoappraisestheemployees.3.Toanalyzeandstudythebenefitsoftheappraisalsystems.4.Toanalyzetheshortcomingsoftheappraisalsystems.5.Toidentifythecriteriaandmeasuresadoptedtoevaluateemployeeperformance.6.Tofindoutthelevelofeffectivenessofthe360degreefeedbacks.




2.4ReviewOfLiteraturePurposeTheliteraturereviewsectionexaminestheimportanceofsearchstudies,companydataorindustryreportsthatserveasafoundationforthesetupofstudy.Theresearchdimensionoftherelatedliteratureandtherelevantinformationbeginsfromanexplanatoryperspective,approachingtowardsspecificstudieswhichdorelatedtothejudgethelimitationsandinformationalgapsindatafromthesecondarysources.Thisanalysismayrevealconclusionsfrompaststudiestorealizethereliabilityofthesecondarysourcesandtheircredibility.Thisinturnenablesonetorelyonacomprehensivereviewforthestudy.

AnalysisofpreviousstudyAsurveyaboutcurrentpractice,whichisfollowedincompaniestoappraiseperformance:(Phatak,InternationalDimensionsofManagement)Almostallsoftwarecompaniesrespondingdohaveformalappraisalprograms.About93%ofsmallerorganizations(thosewithfewerthan500employees)havesuchprograms.About97%oflargeorganizationshavethem.

Ratingscalesarebyfarthemostwidelyusedappraisaltechnique.About62%ofsmallorganizationuseratingscales,20%useessays,andabout19%useMBO.Amongthelargeorganizations,51%useratingscales,justover23%useessaysandabout17%useMBO.However,thoseusingratingsasthemainappraisaltechniquetypicallyalsorequ

irenarrativecommentstojustifyratingandtodescribeemployeestrengthsandweaknessanddocumentdevelopmentplans.Thoseusingessaysasthemainappraisal




techniqueusuallyrequireanoverallquantitativeperformanceratingtofacilitateemployeecomparisonsforcompensationdecisions.Theemployee’simmediatesupervisormakesNinetytwopercentofappraisals.Theseappraisalsareinturnreviewedbytheappraiser’ssupervisorin74%oftherespondingorganizations.Onlyabout7%oftheorganizationsuseself-appraisalinanypartoftheoverallappraisalprocess.Virtuallyallemployees(99%)areinformedoftheresultsoftheirappraisals.Overallabout77%aregivenachancetorespondwithwrittencommentsontheirappraisals.In69%ofcompanies,appraisalsaredoneannually.

MethodsofreviewingtheliteratureThereviewofliteraturedoesscrutinizetheimportantresearchstudies.Theprimarysourcesthatproviderelevantinformationarethebestformtoretrievedatafromtheresearch.Theprimarysourceswereencouragedwiththehelpofdistributionofquestionersaswellasconductingpersonalinterviews.Withthisthedatareceivedenablestheresearchertoaccuratelyarriveattheproblemofthestudyandtheconsecutivelysolutionstothesame.Thesecondarysourceswerealsoreliedonforadditionalinformation.Itincludescompanyjournal,newsletters,records,manualsetc.

ConclusionPerformancemanagementlaysanevaluativeanddevelopmentaldimensiontoitsmakeup,andiscrucialinbothlinkingrewardstoperformanceandprovidingaplatf

ormforthedevelopmentofemployees.Overconcentrationontheassessmentofperformancecanworktothedetrimentofeffortaimedatestablishingthedevelopmentneedsoftheindividualinanopenandhonestway.Themanager,asanappraiser,mayencounterdifficultiesinreconcilingtherolesof judge and mentor

.Managersneedtodeveloptheskillsofcopingwithsuchtensionsintheirroles.Insomeorganizations,thisproblemissolvedbyhavingdifferentmanagerscarryingoutperformanceanddevelopmentappraisals.Appraisalprovidesthecontextinwhichmangerscanseektoensurethatthereisacceptablecongruencybetweentheobjectivesoftheindividualandthoseoftheorganization.




Althoughonerecognizesthepartplayedbyperformancemanagementinthedeterminationofrewards,webelievethatiftreatedasawayofprovidingfeedbackonprogressandofjointlyagreeingthenextsetofaims,theappraisalcanhaveapositiveeffectonindividualmotivation.

2.5OperationalDefinitionofConcepts

PerformanceAppraisal

Performanceappraisalistheassessmentofanindividual

sperformanceinanperformanceinasystematicway,theperformancebeingmeasuredagainstsuchfactorsasjobknowledge,qualityandquantityofoutput,initiative,leadershipabilities,supervision,dependability,co-operation,judgment,versatilityetc.assessmentshouldnotbeconfinedtothepastperformancealone.Potentialsoftheemployeeforthefutureperformancemustalsobeassessed.Performanceappraisalcanbedefinedas"thesystematicevaluationoftheindividualwithrespecttohisorherperformanceonthejobandhisorherpotentialfordevelopment".Amorecomprehensivedefinitionis,“Performanceappraisalisaformalstructuredsystemofmeasuringandevaluatinganemployee sjobandhowtheemployeecanperformeffectivelyinfuturesothattheemployee,organizationallbebenefited."

Performanceappraisal,tocommonunderstanding,istheformalandinformalasses

smentoftheperformanceoftheemployeeatwork.Inaninformalsystemweareawarethatsuperioriscontinuallymakingjudgmentsabouttheirsubordinates performanceonasubjectivebasis.Bycontrast,superiorscouldresorttousingformalizedappraisaltechniqueswhenassessingtheperformanceofsubordinate,andthesejudgmentsarcconsideredtobemoreobjective.Informalizedsystemstheterms performanceappraisaland performancemanagement areused.Bothrefertoaprocesswherebymangersandtheirsubordinatesshareunderstandingaboutwhathastobeaccomplished,andthemanagerwillnaturallybeconcernedabouthowbestbringaboutthoseaccomplishmentsbyadeptmanagementanddevelopmentofpeopleinshortandlongterms.Also,performancewouldbemeasuredusing




thetechniquesdiscussedinthischapteranditwillbesubsequentlyrelatedtotargetsorplans.Inthiswaythesubordinatereceivesfeedbackonhisorherprogress.

Adistinguishedfeatureofperformancemanagementisitsintegratingstrengthinaligningvariousprocesseswithcorporateobjectives:forexample,theintroductionofperformancerelatedpaymentsystemandmobilizationfortraininganddevelopmentresourcestoachievecorporateobjectives.

MeasuringPerformanceInmanyorganizations,thefeedbackonjobperformanceisambiguousorisgivenannuallyasaritualisticexercise.Manysubordinatesthereforehavetroubleingaspinghowtheireffortsareperceivedbytheorganization.Almosteveryonewhohasworkedatajobcanremembertimeswhentheywereunclearonhowtheirperformancewasbeingjudged.Theannualperformanceappraisalsystemtendstoserveonlyalittlepurpose:salaryadministration,trainingandsuccessionplanning.Butthisisnotthesoleobjectiveofperformanceappraisal.Theseobjectiveswillonlydiluteandweakentheclarityandvalidityofanyappraisalsystem.Mostorganizationtiestheformalappraisalsystemdirectlytosalaryincrease,whichdecreasetheirvalidity.




Itisthereforeveryimportantfororganizationsto:(a)LinkSalaryandStatusRealisticallytothePerformanceAppraisalsMostpersonneldepartmentshaveaverynarrowoutlooktoappraisals.Thegeneralviewistoreceivetheappraisalformsatadate(whichusuallyisthedeadline),issueinstructionsregardingincrementsandpromotions,receivethedataregardingthesameandtheyissueletterstotheconcernedemployeeinformingoftheirsalaryincrease.Theappraisalprocessgetspollutedastheappraiserandappraisehaveatthebackoftheirmindspromotionandsalaryincrease,ratherthanperformanceplansandparticipativereviews.Thisdilutestheobjectivesofappraisaltogreatextent.Infact,if

organizationscreate,acultureofcontinuousfeedbackontheperformancetheywouldbemakingtheappraisalsystemmorerelevant.Severalorganizationshavealreadystarteddelinkingperformanceappraisalfromsalaryincrease.(b)MakingObjectivesofPerformanceAppraisalsCleartoAllEmployeesIfperformanceappraisalshouldnotdirectlybelinkedtosalaryincreasethequestionthenarises,whatshouldtheobjectivesofperformanceappraisalsbethatcouldberealisticallyachieved?Somesuggestions:Todojointgoalsetting,andlinktheheorganizationalobjectivesToprovideroleclaritybydefiningKeyResultareasforAccounting.Toestablishalevelofperformanceinthecurrentjobandseekwaysofimprovingit.ToidentifypotentialfordevelopmentandtosupportthetotalprocessofplanningToincreasecommunicationbetweentheappraiserandtheappraise.Toidentifyfactorsthatfacilitateperformanceandotherfactorsthathinderperformance.Tohelptheemployeesidentifyandrecognizetheirowns

trengthsandweaknesses.Tomakethemassesstheirowncompetenciesandhowthesamecanbemultipliedandimproved.Togeneratedataabouttheemployeeforvariousdecisionsliketransfers,rewards,job-rotation,etc.




(c)FocusonDevelopmentalAppraisalsManagersshoulddeveloppartownershipintheemployee sfuture.Anygoodappraisalsystemshouldfocusondevelopmentalappraisal.Developmentalappraisalmeanthatanorganizationneedstodevelopnotjustisolatedperformanceappraisaltool/system,butthetotalframeworkfortheindividualsdevelopment,improvementinjobandlevelofcompetenceandpreparingemployeesforfuturejobs.Thus,appraisalofpeople,whichisapartofthetotalHRDsystem,liestobelinkedtolong-termdevelopmentactivityandcarrierplanning.Organizationshavetoshowvisionforthefuture.Vision,strategiesandobjectiveswillgiverisetoindividualobjectivesandperformancestanda

rds.Theimmediaterewardsandrecognitiondonotleadtoenduringperformanceandupgradingofcompetenceandthereforearenotrealmotivators.Theappraisalasatoolnotonlygivestheindividualandtheorganizationtheideaofwheretheindividualstandsintermsofhisskills,competenciesandabilities,butalsomonitorstheprocessofgrowthanddevelopment,togetherwiththeinputsthatarerequiredtodevelopahighlevelofcompetencebyindividuals.(d)LetEmployeesAppraiseTheirOwnPerformanceSubordinatesneedfeedbackmoreoftenontheirperformance.Thebestwaytodoitistoletthemappraisetheirownperformance.




Self-appraisalwould1)Motivatetheemployeetotakemoreresponsibilityforhis/herownperformance.2)Focusonthejobbehavioronly.3)Reduceambiguityinperformanceandfocusonchangeinjobbehavior.Whensubordinatesundertakeself-appraisal,theyanalyzetheirjobdutiesandhowkeyissuesinajobtheyhandle.Eachindividualmayratehimselforherself.Self-appraisalmayfocusoncostcontrol,communication,planning,training,delegationanddecision-making.Afterself-appraisal,thesubordinatediscussestheratingswithhis/herdirectreportorsuperiortogetafeedbackonperformance.Boththencometoanagreementinareasofconvergenceanddrawajobimprovementplan.(e)CreateaClimat

eforOpenAppraisalsinOrganizationsInmostorganizations,theconceptofopenappraisalismisunderstood.Openappraisaldoesnutmeanthattheappraisalratingsareshownbythesubordinate,andhis/hersignatureisthenobtained.Whatitdoesmeanthatboththeappraiserandtheappraisesharetheirviewsonperformancewitheachother,identifytheareasofimprovementandworktowardsit.Oneoftheobjectivesofopencommunicationbetweentheappraiserandtheappraiseistobringthemtogethertosolveorganizationalproblemsandperformancerelatedproblems.Thequalityofratingsislikelytoimproveifthereissharedunderstandingbetweentheappraiserandtheappraise.(f)MuscleBuildstheOrganizationIntoday scompetitiveworld,raisingperformancegoalsisessential.Thisentailsanalyzingthecompany scurrentsituation,projectingthefuture,establishinghigherexpectations,andsellingthetopmanagementontheupgradingprocessanddevelopinganactionplan.




Musclebuildstheorganizationby1)Enhancingyourownperformance2)Acceleratingtheprofessionalgrowthofthebestperformers3)Nottoleratingmanagerialperformers.Onecannotmusclebuildtheorganization,unlessmarginalperformersarereplaced.4)Developingmultipleskillsandcompetenciesbyworshipingsuccessandpotential.(g)BuildCommitmentintheWorkplaceChangeisaninevitablepartofmanager sjob.Asconditionschange,individualresponsibilitiesarealsoexpectedtochange.Incommitment-basedapproach,theworkplace,jobsaredesignedtobebroaderthanbefore,teamaccountabilityisasimportantasindividualaccountabilityforperformance.Theperformanceexpectationsarehighandemp

hasizecontinuousimportantintheworkplace.Managershavetostopbeingmytopictoperformanceappraisals.Nopersonnelprofessionalinthe90 swillbeabletoaffordtheluxuryofmyopia.Wehavetoseeourwaytothevariouschangesinenvironmentthataretakingplaceandthosechangesthatwillrevolutionizeourorganizationcultureintheoutcomingyears.Wemusthelpourorganization striumphantprogressthroughthe90s,byrecognizingandrewardingperformance.

METHODSORTECHNIQUESOFAPPRAISALBroadlyalltheapproachestoappraisalcanbeclassifiedinto:a)PastOrientedMethodsandb)Future–OrientedMethod




a)PastOrientedMethodsRatingScalesThisisthesimplestandmostpopulartechniqueforappraisingemployeeperformance.Thetypicalratingscalesystemconsistsofseveralnumericalscales,eachrepresentingajob-relatedperformancecriterionsuchasdependability,initiative,output,attendance,attitude,co-operation,andthelike.Eachscalerangesfromexcellenttopoor.Theratercheckstheappropriateperformanceleveloneachcriterion,andthencomputestheemployee’stotalnumericalscore.Thenumberofpointsscoredmaybelinkedtosalaryincreasesetc.ChecklistUnderthismethod,achecklistofstatementsonthetraitsoftheemployeeandhi

sorherjobispreparedintwocolumns–viz.,a‘Yes’columnanda‘No’column.Altheratershoulddoistotickthe‘Yes’columnifthestatementispositiveandincolumn‘No’iftheanswerisnegative.Aftertickingoffagainsteachitem,theraterforwardsthelisttotheHRdepartmentwheretheactualassessmentoftheemployeetakesplace.Inotherwords,therateronlydoesthereporting,whileactualevaluationisdonebytheHRdepartment.TheHRdepartmentassignscertainpointstoeach‘Yes’ticked.Dependingonthenumberof‘Yes’thetotalscoreisarrivt.Whenpointsareallottedtothechecklist,thetechniquebecomesaweighedchecklist.ForcedChoiceMethodHere,therewouldbecertainstatementsmentionedandtheappraiserwillonlyhavetoselecttheappropriatestatementthatsuitstheappraise.ThisiscalledasForcedChoiceMethodbecausehere,theappraiserhasnofreedomatall.Heonlyhasafewstatementsthathewillhavetoselectthatsuittheappraise.ThelististhenforwardedtotheHRDepartmentwhowil

ldotheassessment.Therewillbepointsgiventoeachoftheindividualstatements.

ForcedDistributionMethodOneoftheerrorsinratingisleniency–clusteringalargenumberofemployees

aroundahighpointonaratingscale.Theforceddistributionmethodseeksto




overcometheproblembycompellingtheratertodistributetheratesonallpointsontheratingscale.Themethodoperatesunderanassumptionthattheemployeeperformancelevelconformstoanormalstatisticaldistribution.Generally,itisassumedthatemployeeperformancelevelsconformtoabell–shapedcurve.Forexample,thefollowingdistributionmightbeassumedtoexist-excellent10%,good20%,average40%belowaverage20%andunsatisfactory10%.Themajorweaknessoftheforceddistributionmethodliesintheassumptionthatemployeeperformancelevelsalwaysconformtoanormal(orsomeother)distribution.Inorganizationsthathavedoneagoodjobofselectingandretainingonlythegoodperfor

mers,theuseofforceddistributionapproachwouldbeunrealisticaswellaspossiblydestructivetotheemployeemorale.Onemeritofthisapproachisthatitseekstoeliminatetheerrorofleniency.Thistechniqueishowevernotacceptablebymostoftheratesandrates.CriticalIncidentsMethodThismethodofemployeeassessmenthasgeneratedalotofinterestthesedays.Thisapproachfocusesoncertaincriticalbehaviorsofanemployeethatmakeallthedifferencesbetweeneffectiveandnon-effectiveperformanceofajob.Suchincidentsarerecordedbythesuperiorsasandwhentheyoccur.Oneoftheadvantagesofthismethodisthattheevaluationisbasedonactualjobbehavior.Further,theapproachhasdescriptionsinsupportofparticularratingsofanemployee.Givingjob–relatedfeedbacktotherateisalsoeasy.Itreducesbiasonthepartoftheraters.Themethodhoweverhassignificantlimitations.Theseinclude:a)Negativeincidentstendtogetnoticedmorethanpositiveincidents.b)Recordingisachor

e,sosupervisorcouldeasilyforget.c)Overlyclosesupervisionmayresult.BehaviorallyAnchoredRatingScales(BARS)




Behaviorallyanchoredratingscales,sometimescalledasBehavioralExpectationScalesareratingscaleswhosescalepointsaredeterminedbystatementsofeffectiveandineffectivebehaviors.Theyaresaidtobebehaviorallyanchoredinthatthescalesrepresentarangeofdescriptivestatementsofbehavioroneachscalebestdescribedandemployee’sperformance.Behaviorallyanchoredratingscales(BARS)havethefollowingfeatures:1.Areasofperformancetobeevaluatedareidentifiedanddefinedbythepeoplewhowillusethescales.2.Thescalesareanchoredbydescriptionsofactualjobbehaviorthat,supervisorsagree,representspecificlevelsofperformance.Theresultisasetofratingscalesinwhic

hbothdimensionsandanchorsarepreciselydefined.3.AlldimensionsofperformancestobeevaluatedarebasedonobservablebehaviorsandarerelevanttothejobbeingevaluatedsinceBARSaretailormadeforthejob.4.Sincetheraterswhowillactuallyusethescalesareactivelyinvolvedinthedevelopmentprocess,theyaremorelikelytobecommittedtothefinalproduct.BARSweredevelopedtoprovideresults,whichsubordinatescouldusetoimproveperformance.Superiorswouldfeelcomfortabletogivefeedbacktotherates.FurtherBARShelptoovercomeratingerrors.Unfortunately,thismethodtoosuffersfromdistortionsinherentinmostratingtechniques.




EssayMethodHere,theratermustdescribetheemployeewithinanumberofbroadcategories

suchas.1.Theratersoverallimpressionoftheemployee’sperformance.2.Thepromotabilityoftheemployee3.Thejobsthattheemployeeisnowqualifiedorcapabletoperform4.Thestrengthsandweaknessoftheemployee5.Thetraininganddevelopmentassistancerequiredbytheemployee.Although,thismethodmight

beusedindividually,itismostfrequentlyusedincombinationwithothers.Itisextremelyusefulinfilinginformationgapsabouttheemployeesthatoftenoccurinthebetter-structuredchecklistmethod.CostAccountingMethodThismethodevaluatesperformancefromthemonetaryreturnstheemployeeyieldstohisorherorganization.Arelationshipisestablishedbetweenthecostincludedinkeepingtheemployeeandthebenefittheorganizationderivesfromhimorher.Performanceoftheemployeeisthenevaluatedbasedontheestablishedrelationshipbetweenthecostandthebenefit.

b)FutureOrientedMethodManagementbyObjectives(MBO)TheconceptofMBOconceivedbyPeterF.Drunker,reflectsamanagementphilosophywhichvaluesandutilizedemployeecontributions.ApplicationsofMBOinthefieldofperformanceappraisalsarearecentthin

king.TheworkingofMBOcanbedescribedinfoursteps:Thefirststepistoestablishthegoalseachpersonistoattain.Thesegoalscanbeusedtoevaluateemployeeperformance.Thesecondstepinvolvessettingtheperformancestandardforthesubordinatesinapreviouslyarrangedtimeperiod.Assubordinatesperform,theyknowfairlywellwhatthereistodo,whathasbeendoneandwhatremainstobedone.




Thethirdstep,theactuallevelofgoalattainmentiscomparedwiththegoalsagreedupon.Theevaluatorexploresreasonsforthegoalsthatwerenotmetandforthegoalsthatwereexceeded.Thisstephelpsdeterminepossibletrainingneeds.Italsoalertsthesuperiortoconditionsintheorganizationthatmayaffectasubordinatebutoverwhichthesubordinatehasnocontrol.Thefinalstepinvolvesestablishingnewgoalsandpossibly,newstrategiesforgoalsnotpreviouslyattained.PsychologicalAppraisalsLargeorganizationsemployfulltimeindustrialpsychologists.When

psychologistsareusedforevaluations,theyassessanindividual’sfuturepotentialandnotpastperformance.Theappraisalnormallyconsistsofin-depthinterviews,psychologicaltests,discussionswithsuperiorsandareviewofotherevaluations.Thepsychologistthenwritesanevaluationoftheemployee’sintellectual,emotional,motivationalandotherrelatedcharacteristicsthatsuggestindividualpotentialandmypredictfutureperformance.Theevaluationbythepsychologistmaybeforaspecificjobopeningforwhichthepersonisbeingconsidered,oritmaybeaglobalassessmentforhisorherfuturepotential.Fromtheseevaluations,placementanddevelopmentdecisionsmaybemadetoshapetheperson’scareer.360DegreeAppraisalThisisatechniqueofappraisalswhereinmultipleratesareinvolvedinevaluatingperformance.Thisisunderstoodasasystematiccollectionofperformancedataonanindividualorgroup,derivedfromanumberofstakeholders–thestakeholdersbeingtheimmediatesupervisors,teammembers,cu

stomers,peersandself.Infact,anyonewhohasanyinformationon‘howanemployeedoesthejob’maybeoneoftheappraisers.Thisprovidesabroaderperspectiveaboutanemployee’sperformance.Inaddition,thetechniqueprovidesforgreaterself-developmentoftheemployees.Foranemployeesdevelopmentmulti-sourcefeedbackisveryusefulasitenablestheemployeetocomparehisorherperceptionsofselfwiththeperceptionsofothers.




360-DEGREEFEEDBACKDEFINED360°feedbackisarelativelynewfeatureofperformancemanagement.360°feedbackhasbeendefinedbyWard(1995)as:Thesystematiccollectionandfeedbackofperformancedataonanindividualorgroupderivedfromanumberofstakeholdersontheirperformance.Thedataisusuallyfedbackintheformofratingsagainstvariousperformancedimensions.360°feedbackisalsoreferredtoasmulti-sourceassessmentormulti-raterfeedback.

360-DEGREEFEEDBACK–METHODOLOGY1.TheQuestionnaire

360°feedbackprocessesusuallyobtaindatafromquestionnaires,whichmeasurefromdifferentperspectivesthebehaviorsofindividualsagainstalistofcompetencies.Thecompetencemodelmaybedevelopedwithintheorganizationorthecompetencyheadingsmaybeprovidedbythesupplierofthequestionnaire.Thedimensionsmaybroadlyrefertoleadership,managementandapproachestowork.

2.RatingsRatingsaregivenbythegeneratorsofthefeedbackonascaleagainsteachheading.Thismayreferbothtoimportanceandperformance,asinthequestionnaire,whichasksthosecompletingittoratetheimportanceofeachitemonascaleof1(notimportant)to6(essential)andperformanceonascaleof1(weakinthisarea)to6(outstanding).

3.DataProcessingQuestionnairesarenormallyprocessedwiththehelpofsoftwaredevelopedwithintheorganizationor,mostcommonly,providedbyexternalsuppliers.Thisenablesthedatacollectionandanalysistobecompletedswiftly,withtheminimumofeffortandinawaythatfacilitatesgraphicalaswellasnumericalpresentation.




4.FeedbackThefeedbackisoftenanonymousandmaybepresentedtotheindividual(mostcommonly)totheindividual’smanager(lesscommon)ortoboththeindividualandthemanager.Someorganizationsdonotarrangeforfeedbacktobeanonymous.Whetherornotfeedbackisanonymousdependsontheorganization’sculture–themoreopentheculture,themorelikelyisthesourceoffeedbacktoberevealed.

5.ActionTheactiongeneratedbythefeedbackwilldependonthepurposesoftheprocess,

i.e.development,appraisalorpay.Ifthepurposeisprimarilydevelopmental,theactionmaybelefttoindividualsaspartoftheirpersonaldevelopmentplans,buttheplanningprocessmaybesharedbetweenindividualsandtheirmanagersiftheybothhaveaccesstotheinformation.Evenifthedataonlygoestotheindividual,itcanbediscussedinaperformancereviewmeetingsothatjointplanscanbemade,andthereismuchtobesaidforadoptingthisapproach.




360-DegreeFeedback–AdvantagesandDisadvantagesIndividualsgetabroaderperspectiveofhowthereviouslypossible.IncreasedawarenessofandrelevanceofcompetenciesIncreasedawarenessbyseniormanagementthattheytoohavedevelopmentneeds.Morereliablefeedbacktoseniormanagersabouttheirperformance.Gainingacceptanceoftheprincipleofmultiplestakeholdersasameasureofperformance.Encouragingmoreopenfeedback–newinsights.Reinforcingthedesiredcompetenciesofthebusiness.Providedaclearerpicturetoseniormanagementofindividual’srealworth(althoughtheretendedtobesome‘halo’–effectsyndromes).Clarifiedtoemployee

riticalperformanceaspects.Opensupfeedbackandgivespeopleamoreroundedviewofperformancethantheyhadpreviously.Identifyingkeydevelopmentareasfortheindividual,adepartmentandtheorganizationasawhole.Identifystrengthsthatcanbeusedtothebestadvantageofthebusiness.Aroundedviewofanindividuals/teams/theorganizationperformanceandwhatitsstrengthandweaknessareIthasraisedtheselfawarenessofpeoplemanagersofhowtheypersonallyimpactuponothers–positivelyandnegativelyItissupportingaclimateofcontinuousimprovementItisstartingtoimprovetheclimate/morale,asmeasuredthroughoutemployeeopinionsurveyFocusedagendafordevelopment.Forcedlinemanagerstodiscussdevelopmentissues.Perceptionoffeedbackasmorevalidandobjective,leadingtoacceptanceofresultsandactionsrequired.Buttheremaybeproblems.Theseinclude:




Peoplenotgivingfrankhonestfeedback;Peoplebeingputunderstressinreceivingorgivingfeedback;Lackofactionfollowingfeedback;Over-relianceontechnologyToomuchbureaucracyThesecanallbeminimizedifnotavoidedcompletelybycarefuldesign,communication,trainingandfollow-up.

360-DEGREEFEEDBACK–CRITERIAFORSUCCESS360-Degreeismostlikelytobesuccessfulwhen;Ithastheactivesupportoftopmanagementwhothemselvestakepartingivingandreceivingfeedbackandencourageeveryoneelsetodothesame.Thereiscommitmenteverywhereelsetothepr

ocessbasedonbriefing,training,andanunderstandingofthebenefitstoindividualsaswellastheorganization.Thereisarealdeterminationbyallconcernedtousefeedbackdataasthebasisfordevelopment.Questionnaireitemsfitorreflecttypicalandsignificantaspectsofbehavior.Itemscoveredinthequestionnairecanberelatedtoactualeventsexperiencedbytheindividual.Comprehensiveandwell-deliveredcommunicationandtrainingprogramsarefollowed.




APPRAISALERRORSNoneofthemethodsforappraisingperformanceisabsolutelyvalidorreliable;eachmethodhasitsownstrengthsandweakness.Letustrytounderstandthemostcommonlyoccurringerrorswithinperformanceappraisalmethods.

1.ErrorofCentralTendency:Thisreferstothetendencyofnotusingextremescalescoresonthejudgmentscale;mostoftheratesareclusteredinthemiddle.

2.ErrorofLeniency:Thisiscausedbythetendencyofthelenientratertoputmostoftheratesonthehighersideofthescale,whileatoughraterplacesthemonthelowersideofthescale.

3.HaloEffect:Inotherwords,itistendencytoallowtheassessmentononetraittoinfluenceassessmentonothers.Thisusuallyariseswhentraitsareunfamiliar,ill–definedandinvolvedpersonalreactions.

4.ErrorinUnreliability:Thiserroroccurswhenthereistheexistenceofinconsistencyintheevaluationsofagroupofemployeesbytwo/moreappraisers.

5.PersonalBias:Thiserroroccurswhenthereexistsacloserelationshipbetweentheappraiserandtheappraise.Thistendstoinfluencetheevaluation.Thescorescouldbeonthehigherwhentherewouldbeabiasonthesideoftheappraiser.Therefore,thescoresgivencouldtendtobehigherthenwhattheappraisedeserves.Thiswouldgivetheappraiseanundueadvantagefortheappraiseduringthetimesofpromotions,payriseetc.thesamecouldhappenviceversatooifanappraiserdoesnotshareagoodrelationshipwiththeappraise,hecouldtendtogiveabsolutelylowscoresfortheappraise.

5.NoConsultation




Therewouldtendtobeanerrorinthescoresiftheappraiserjustgoesongivingscoreswithoutdiscussingwiththeappraise.Iftheappraisewouldnotbegivenhissayinthematter,thescorewillnotreflecttheactualcapabilityoftheappraise.

6.SpilloverEffectThisreferstoallowingpastperformanceappraisalratingstounjustifiablyinfluencecurrentratings.

7.StatusEffect:Itreferstooverratingofemployedinhigherleveljoborjobsheldinhighesteem,andunderratingemployeesinlowerleveljobatjobheldinlowesteem.

2.6ResearchmethodologyTypeofResearchTheresearchdesigncompriseoftheplanandstructureofinvestigationconceivedsoastoarriveattheresponsestotheresearchqueries.Ittherebyaddressestheaimsandobjectivesofthestudy,bothdescriptivelyandanalytically.

SamplingTechniqueThesamplingtechniqueadoptedforthestudyisnon-probabilityRandomsamplingtechniqueaccordingtotheconvenienceoftheresearcher.AquestionnairewasadministeredtoHRmanagers/executivesofdifferentsoftwarecompaniestoobtain

dataforthepurposeofanalysis.




SampleSizeDataiscollectedusingasampleof30softwarecompanies.

SampleDescriptionThesamplemainlyconsistsofdatafromtheprimarysourcesthatareutilizedforthepurposeofthisstudy.Thisisdonebymeansofadministratingquestionerstohumanresourcemanagers/executivesindifferentsoftwarecompaniesinthecityofBangalore.Secondarydatalikecompanyjournals,newsletters,recordsetc.werealsoreliedonforretrievingfurtherinformation.

InstrumentationTechniqueQuestionnaireandstructuredisguisedquestions.

ActualCollectionofDataBothsecondaryandprimarysourcesofdataareutilizedforthepurposeofthisstudy.PrimarydataiscollectedbymeansofadministeringaquestionnairetotheHumanResourceManagers/Executivesindifferentsoftwarecompanies.Secondarydataiscollectedfromvariousrecords,manualsandothersourcesoftheHRDepartment.

ToolsusedfortestingofhypothesisInattemptingtoarriveatadecisionaboutthepopulationonthebasisofthes

ampleinformationitisnecessarytomakeassumptionsorguessesaboutthepopulationparametersinvolvedsuchanassumptioniscalledstatisticalhypothesis,whichmayormaynotbetrueornotiscalledtestofhypothesisortestofsignificance.InthetestofhypothesisitbeginswithanassumptionorhypothesisiscalledNullHypothesis.Thenullhypothesisassertsthattherearenosignificantdifferencesbetweenthestatisticsandthepopulationparametersandwhateverobservesdifferenceistheremerelyduetofluctuationsinsamplingfromthesamplepopulation.Nullhypothesisisusuallydenotedbythesymbol,Ho.AnyhypothesisthatcontradictstheHo(nullhypothesis)iscalledanalternativehypothesisandisdenotedbysymbolH1.hypothesisisTestforproportion.Thetechniqueusedtotestthe




TestforProportionSupposethepopulationofanattributeinapopulationisnowknown,wewanttotestwhethertheproportionisagivenvalueP.ThenullhypothesisisHo:p=P.ThealternativehypothesisisH1:pP.Thelargerandomsampleofsizenfromthepopulation,letxunitspossesstheattribute.Thenthesampleproportionisp=x/n.

Andso,Z=

p-P

PQnTherefore,theteststatisticsis|Z|=

P=assumedlevelofeffectivenessQ=1-Pp=levelofeffectivenessofsamplen=samplesize

Forthesample,if|Z|cal>k,Hoisrejected.Ontheotherhand,if|Z|cal<Hoisaccepted.

OtherSoftwareusedforthedataanalysisForthedataanalysis,andthesubsequentinterpretationtheresearcherhasadoptedadvancedversionofMS-EXCEL2000.Thisapplicationsoftwarehasfacilitated

theresearchertoconstructthefrequencytable,variouskindsofgraphsandtofindouttheaverageresponsesfromthesample.Bythisautomateddataanalysisithasminimizedtheresearcher’stimeconstraintandreducedhumanerrorsandalsoaccurateoutlayofinformation.

PROFILEOFSOFTWAREINDUSTRY

SOFTWAREINDUSTRY




3.1IndianIT-ITESIndustry:TheIndianIT-ITESindustryisbroadlycategorizedintoITservicesandsoftware,ITES-BPOandHardwaresegments.Theindustrycontinuestochartremarkabledouble-digitgrowth,withindustryaggregaterevenuefor2005-06expectedtoreachUS$28billion.TheindustryisforecasttogrowmorethanfivefoldoverFY1999-06,ataCAGRof28percent.3.2IndustryTrends(2004-05)

TheearningsfromIT-ITESexportswasUS$13.3billion(61.9percentoftotalin

dustryrevenues)in2004-05andisexpectedtotouchUS$17.9billion(63.7percent)in2005-06.KeydriversofgrowthincludethegrowingadoptionofIToutsourcingandtherapidexpansioninthescaleandbreadthofITES-BPOofferingsbyIndianvendors.o

During2005-06,softwareandservices,andITES-BPOwouldcontinuetoremainthekeycontributorstoIndia’sIT-ITESexportrevenues,withashareof67.8percentand28.4percent,respectively.Whilecontributionofhardwareexportswouldbearound3.7percent,thesituationisexpectedtochangeinthemediumterm,withthissegmentreceivingaboostowingtomarketconditions.OverallpricinglevelsinITservicesstabilizedatUS$55-60perhourforonsiteservicesandbetweenUS$18-24perhourforoffshoreservices.IndianIT-ITESvendorssuccessfull

yexecutedtheoffshoredeliverymodeltoachievesustainedgrowthinserviceexportsandestablishedIndiaasthemostpreferredoffshoredestinationforglobalsourcingofservices.

o

o

IndianIT-ITESvendorssuccessfullyexecutedtheoffshoredeliverymodeltoachievesustainedgrowthinserviceexportsandestablishedIndiaasthemostpreferredoffshoredestinationforglobalsourcingofservices.

ThedomesticIT-ITESmarketwitnessedarevivalduring2004-05,withrevenuesreachingUS$8.2billion(agrowthof30percentoverpreviousyear).ThesegmentisexpectedtotouchrevenuesofaroundUS$10.2billionduring2004-05,ataCAGRof19.2percentforthe2004-05periods.HardwareandITservicesaccountedforaround




90percentofthedomesticIT-ITESrevenuesduring2004-05andthismarketshareisnotlikelytochangein2004-05.o

TheBFSI(Banking,Financialservices,Insurance),GovernmentandtelecomsegmentsremainedthekeyrevenuedriversforthedomesticIT-ITESmarket.

TwomorecompanieswithintheIT-ITESdomainjoinedthebillion-dollarclub,whichnowincludestheHCLGroup,Infosys,TCSandWipro.During2004-05,theIndianITsoftwareandservicessegmentadded98,000jobsandtheITES-BPOsectoraddedabout73,500jobs.Atotalof203,5000newjobsarelikelytobecreatedbytheIT-ITESsectorinthecurrentfiscal.

IndianIT-ITESvendorsfocusedonimprovingproductivityandutilizationandmovedupthevaluechain.WhileITservicecompaniesincludednewservicelinessuchaspackagesoftwareimplementation,systemsintegration,R&Dengineeringandr

emotenetworkmanagementtotheirportfolioofofferings,ITES-BPOcompaniesbeganmorecomplexservicessuchasfinancialresearchandanalytics,actuarialmodeling,corporateandbusinessresearch.

TheIndianIT-ITESplayersexpandedtheirfocusfromtheFortune500companiestoaddresstheneedsofGlobal2000corporations.

Bangalore-The"Technopolis"ofIndiaAlargepartofIndia ssuccessinthesoftwaresectorisduetothecrucialroleplayedbytheStateofKarnatakainpromotingandprovidingaboosttoIT.Karnatakahasemergedasthecomputercapitalandcenterofhigh-techindustries,especiallysoftware.BangalorehasforlongbeenknownasIndia sanswertoSiliconValley,andthisisthecitywheremostlargesoftwarecompanieshavesetupshopandoperateoutofstate-of-the-art

facilities.Thisisthereasonwhyitisfastbecomingthe"Technopolis"ofIndia.TheGovernmentofKarnatakahasalsobeenextremelypositiveaboutthesoftwareandservicesmarketplaceandhashelped




createtherelevanttelecomandpolicyinfrastructureconducivetothegrowthofthissector.Thedynamicindustrialpolicydeclaredin1996,withcomprehensivepackagesofincentivesandconcessions,hasensuredaproductivegroundforvariousindustries.Thehardwareandsoftwareindustrieshavenowbroughtaboutarevolutionofsortsundertheseschemes.Variousinstitutionsandcomputertrainingcentershavecontributedtothelargenumberoftrainedandtalentedprofessionals.TheCityofBangalorehaspositioneditselftohelpmarketthesoftwareindustry.ThisisalsowhyBangalorehasbeenplayinghosttointernational-classconferences,workshopsandexhibitionsdevotedtothesoftwarecause.Thecity

hasthehighestnumberofengineeringcollegesintheworld,almost50percentoftheworld sSEICMMLevel5companies;COPC/ISOrecognizedCustomerInteractionCenters,andover103R&DInstitutions.Itis,infact,hometoGE sbiggestR&DCenteroutsidetheU.S.-theJackWelchTechnologyCenter,whichhiresover200PhDs/scientistseverymonth!Totopitall,Bangalorehasjustbeenrankedthefourthbest"Globalhuboftechnologicalinnovation"bynoneotherthantheUnitedNations.Bangalore sstrengthsinthesoftwaremarketalsolieinitspursuitofnewopportunities.Infact,twokeysegmentsthatareexpectedtoopenupoverthenextfewyearsforIndiaaree-commerceandremoteprocessing.Opportunitiesine-commercesoftwaresolutionsareemergingasamajorareaofgrowthintheIndianITsoftwareandservicesindustry.ArecentstudyundertakenbyTheBostonConsultingGroupforNASSCOMclearlystatedthatIndiacouldearnrevenuesofUS$9billionfrome-businesssolutionsby2005..

VariousApproachesOfPerformanceAppraisal

Thedatawasprocessedaftercollectionandanalyzedforthepurpose.Thedatawasedited,classifiedandtabulatedforanalysis.Analysisofdatawasdonewiththepurposeofsummarizingthecollecteddataandorganizingtheseinsuchamannerthattheyanswertheresearchquestions.Percentage




analysiswasusedforanalysisofdataandtheresultshavebeenpresentedbywayofpiecharts,barcharts,withthehelpofSPSSpackage.Afteranalysis,thephaseofinterpretationstarts.Thisisdonebydrawinginferencesfromanalyzeddata.Afterinterpretations,areportwaspreparedonthebasisofinferences.




Table4.1

DistributionofcompaniesaccordingtothetotalnoofEmployeesTotalnoofemployeesUpto100100–1000Above1000TotalFrequencyPercent930.01653.3516.730100.0CumulativePercent30.083.3100.0

Source–PrimaryData

Interpretation:

Theabovetableindicatesthat9companieswereselectedwhoemployed100andbelowemployees.16companiesemployedbetween100and1000employeesandonly5companieswereselectedwhoemployedabove1000employees.

Graph4.1Indicatesthetotalnumberofemployeesintheorganization

Totalno.ofemployeesAbove1000Upto100

100-1000




Table4.2TypeofAppraisalSystemFrequencyTypeofAppraisalSystemManager,Supervisor,AppraisersSelfappraisalopensystemMBO36FeedBack5PointScale3.pointScale4.Pointscale10PointscaleTotal116432111130PercentCumulativePercent36.720.013.310.06.73.33.33.33.3100.036.756.770.080.086.790.093.396.7100.0


Interpretation

Theabovetableindicatesthat36.7%ofthecompaniesareappraisedbythemanagers/supervisors/appraiserassessment,20%ofthecompaniesemphasisonselfassessment,inadditiontothisfewcompaniesfollowOpenSystem(13.3%),MBO(10%),360feedback(6.67%),5pointscale(3.3%),3pointscale(3.3%),4pointscale(3.33%)and10pointscale(3.33%).Graph4.2Indicatesthetypeofappraisalsystemadoptedbythesoftwarecompanies

TypeofAppraisalSystem10Pointscale4.Pointscale3.pointScale5PointScale36FeedBackMOBManager,Supervisor,A

opensystemSelfappraisal

Table4.3FrequencyofAppraisal




PeriodFrequencyPercentQuarterly1446.7Half620.0YearlyAnnually413.3Others620.0Total30100.0

CumulativePercent46.766.780.0100.0


InterpretationFromtheabovetablemostofthecompaniesfollowtheannualsystemofappraisal

(46.7%).Halfyearlyappraisaliscarriedoutin20%ofthecompanies.13.3%followquarterlysystemofappraisal.Somecompaniesfollowthecombinationofhalfyearlyandannualsystem(16.7%).Only3.33%ofthecompaniesfollowedhalfyearly+quarterly+annualsystemofappraisal.Graph4.3Indicateshowoftenappraisalsarecarriedoutbythecompanies

FrequencyofAppraisalOthers

QuarterlyAnnually

HYalfearly

Table4.4CriteriausedforevaluationCriteriaPerformanceFrequencyPercent1240.0CumulativePercent40.0




customerFocusTechnicalCompetenceAttendanceTargetVs.AchievementKeyResultAreasQualityofOutput3PointSchemeTotal

643211130

20.013.310.06.73.33.33.3100.0

60.073.383.390.093.396.7100.0


InterpretationTheabovetableindicatesthecriteriausedinevaluatingtheemployees.40%ofthecompaniesevaluatetheiremployeewiththeperformance,20%bythetechnicalcompetence,13.33%bythetargetv/sachievement,13.33%byqualityofoutput,6.67bycustomerfocus,3.33%onattendance,3.33%bythekeyresultareaand3.33%bythe3pointscale.Graph4.4

Criteriausedforevaluation3PointSchemeQualityofOutputKeyResultAreasTargetVs.AchievemePerformance

Attandence

TechnicalCompetence

customFocuser

Table4.5RatingSystemusedbyS/WCompanies

RatingFrequencyPercentsystemScoring930.0Comments620.0Both1550.0

CumulativePercent30.050.0100.0




Total

30

100.0


Interpretation

Theabovetableindicatesthat30%ofthecompaniesusescoringastheratingscale,20%oncommentsand50%ofthecompaniesusebothscoringandcommentsasratingscale.Graph4.5Ratingscaleusedinsoftwarecompanies

RatingSystemusedbyS/WCompaniesScoring

Both

Comentsm

Table4.6PercentageifscoringistheRatingScaleScoringFrequencyPercentAlpha723.3Numeric1446.7Both310.0Total2480.0

System620.030100.0CumulativePercent29.287.5100.0





InterpretationFromtheabovetablethecompanies,whichfollowscoringasratingscaleuse23.3%alpha,46.7%numericand10%bothalphaandnumeric.Graph4.6ifscoringistheratingscale

PercentageifscoringistheRatingScaleMissingAlpha

Both

Nericum

Table4.7FeedbacktoemployeesafterAppraisalFeedbackFrequencyPercentYes2686.7No413.3Total30100.0CumulativePercent86.7100.0


InterpretationTheabovetableindicatesthat86.67%oftheemployeesappraisedreceivedfeedba

ckand13.33%employeesdidnotreceivefeedback.




Graph4.7whetherthepersonbeingappraisedobtainfeedback

FeedbacktoemployeesafterAppraisalNo

Yes

Table4.8PercentageofFeedbackgiventoEmployees

FeedbackFrequencyPercentWritten930.0Oral723.3Detailed516.7Summarized310.0Self-Assessed310.0MangerAssessed310.0Total30100.0

CumulativePercent30.053.370.080.090.0100.0


InterpretationTheabovetableindicateshowfeedbackisgiventotheemployees.Mostcompaniesfollowawrittenfeedbackwith30.00%,oralbeing10%,managerassessed10%,selfassessed




16.67%,detailed23.33%andsummarizedbeing10%.Almostallthecompaniesthatweresampledfollowedacombinationofmorethanonetypeoffeedback.Graph4.8Howfeedbackisgiventotheemployees

%offeedbackgiventoEmployeesMangerAssessedSelf-AssessedWritten

Sumarizmed

Detailed

Oral

Table4.9PercentageofPositiveorNegativeFeedbackFeedbackFrequencyPercentYes2686.7No413.3Total30100.0CumulativePercent86.7100.0


InterpretationTheabovetableindicatesthat86.67%companiesfollowthesharingoffeedbackbothpositiveandnegativeinthesamemeetingwhile13.33%saidno.adversewas

communicatedinwritingandgoodperformanceisalreadyknown.

Graph4.9whetherthenegativeandpositivefeedbackissharedwiththeappraiseinthesamemeeting.




%ofPositive&NegativefeedbackNo

Yes




Table4.10Self-AssessmentSelf-AssessmentFrequencyYes21No9Total30PercentCumulativePercent70.070.030.0100.0100.0


InterpretationTheabovetableindicatesthat70%ofthecompaniesfollowselfassessmentofanemployeewhile30%didnotfollow.

Graph4.10whethertheself-assessmentofemployeeisfollowedinthecompanyornot.

Self-AssessmentNo

Yes




Table4.11PercentageofCompanyfollowingSelf-Assessment.Self-AssessmentYesNoTotalSystemFrequencyPercent1860.0310.02170.0930.030100.0CumulativePercent85.7100.0


InterpretationTheabovetablestatestheintegrationoftheself-assessmentofanemployeeintheexistingappraisalsystem,85.71%saidyesand14.29%saidno.

Graph4.11Ifthecompanyfollowsaself-assessmentofanemployee,isitintegratedintheappraisalsystemfollowed?

%ofcompanyfollowingSelf-AssessmentMissing

YesNo




Table4.12PercentageofCompensationincreaseCompensationFrequencyYes25No5Total30PercentCumulativePercent83.383.316.7100.0100.0


InterpretationTheabovetableindicatesthat83.33%ofthecompaniesagreeingthatappraisalarerelatedtocompensationincreaseand16.67%didnotagree.Graph4.12Relatio

nofperformanceappraisalincompensationincrease

PercentageofCompensationincreaseNo

Yes

Table4.13CompensationincreasedandAppraiserssettargets




CompensationFrequencyPercentYes2273.3No826.7Total30100.0

CumulativePercent73.3100.0


InterpretationTheabovetableindicatesthat73.33%oftherespondentsagreeingtosettingtargetstoemployeesbeingappraisedwhile26.67%saidno.

Graph4.13Thesetstargetforanemployeebeingappraised

Appraiser ssettargets.No

Yes

Table4.14Distributionofsettarget

DistributionFrequencyPercentCumulativePercent3Months26.79.1




3-6Months6Months12MonthsTotalSystem

241422830

6.713.346.773.326.7100.0

18.236.4100.0


InterpretationFromtheabovetable,half(15)ofthecompanies,theappraisersetstargetsforanemployeebeingappraisedforaperiodof12months(50%),inothercompaniesthetargetsaresetfor6months(20%),3-6(20%)and3months(10%).

Graph4.14Iftheappraisersetstargets,forwhatperiodthetargetsareset.

DistributionofsettargetMissing3Months3-6Months

6Months

12Months

Table4.15UsageofchecklistsinAppraisalsCheckListFrequencyPercentCumulativePercentYes2376.776.7No723.3100.0Total30100.0


Interpretation




Theabovetableindicatesthat76.67%ofthecompanies(23)haveachecklistforcarryingoutappraisalswhile23.33%saidno.Somecompanieshaveaperformanceappraisalhandbook,whichgivesthedetails.OneofthecompanieshasanITToolaschecklist.

Graph4.15Dothecompanieshaveachecklistforcarryingoutappraisal

UsageofchecklistsinAppraisalsNo

Yes

Table4.16IsCareerPlanningeffectiveCareerPlanningFrequencyYes19No11Total30PercentCumulativePercent63.363.336.7100.0100.0


Interpretation




Theabovetableindicatesthatoutof30companies19companiesfeelthatcareerplanningplaceanimportantroleinPerformanceAppraisal(63.33%)andrestofthe11companiesdonotagreewiththis(36.36%).

Graph4.16Effectivenessof360degreeappraisals.

IsCareerPlanningeffectiveNo

Yes

Table4.17

Effectivenessof360degreeappraisalParametersFrequencyPercentCumulativePercentLessthan20%13.33.320%-35%310.013.335%-50%516.730.0Above50%2170.0100.0Total30100.0


InterpretationFromtheabovetable,itisunderstoodthatwhen360scoreisimplementedasaformofappraisalsoastorealizeitseffectivenessinafirm,almostabove50%o

ptsittobeveryeffective,withascoreof70%while35-50%and20%-35%votesitseffectivenessuptoalevelof16.67%and10%respectivelyandlessthan20%declaresitleasteffective,i.e.3.33%.




Graph4.17Thelevelofeffectivenessof360scorewhenimplementedasa

0

formofappraisal.

Effectivenessof360degreeappraisalLessthan20%20%-35%

35%-50%

Above50%

Table4.18DistributionOfCompaniesaccordingtothetotalno.ofemployeesCompaniesPer.SmallMediumLargeTotal1240%620%413.3%310%9(100)3(18.8)DistributionofCompaniesaccordingtothetotalnoofEmployeesCus.KRA’sQuality3PointTech.Atten.Tar.FocusCompetenceVs.OfSchemeAcheiv.Output6(37.5)4(25)3(18.8)2(40)26.7%1(20)13.3%1(20)13.3%1(20)13.3%

Total9(100)16(100)5(100)30100%

Note:Figuresinbracketsindicatespercentagetototal.Source–PrimaryData




InterpretationFromtheabovetableitcanbeinferredthatthecriteriausedtoevaluateanemployeeforaSmallCompanyisperformance(100%)butforaMediumCompanyitisperformance(18.8%),customerfocus(37.5%),technicalcompetence(25%)andattendance(18.8%).AndfinallyforaLargeCompanythecriteriaincludetargetVs.achievement(40%),KeyResultAreas(20%),qualityofoutput(20%)and3Pointscheme(20%)

Table4.19TypeofAppraisalSystemadoptedandthefrequencyofAppraisalAppraisalQuarterlyManagerSupervisorAppraiserSelf-AppraisalOpenSystemMBO

360Feedback5PointScale3PointScale11(100)3(50)3(50)3(75)1(75)3(100)2(100)1(100)1FrequencyHalfAnnuallyYearly

Others

Total11(100)6(100)4(100)3(100)2(100)1(100)1




4pointScaleTotal14(46.7)6(20)4(13.3)

(100)1(100)5(16.7)

(100)1(100)30(100)


Interpretation

ThistableindicatesthattheOrganizationcarriesoutappraisalsforQuarterlyManagers/Supervisors/Appraisers,Self-Appraisal-QuarterlyaswellasHalf-yearly(50%).Opensystemwhichiscarriedouthalf-yearlyandannually.Whereas360Degreefeedback,5PointScale,3PointScale,4PointScalefollowotherAppraisalSystem

Table4.20AdoptionofPerformanceAppraisalandpercentageofFeedbackgiventoemployees.CompaniesWritten9Small(100)(100)MediumLarge9Total(30)(23.3)(16.7)(10)(10)(10)(1007537(43.8)5(31.3)3(18.8)1(6.3)2(40)33(60)316(100)5(100)30OralDetailedFeedbackSummarizedSelfAssessedManagerassessedTotal9


Interpretation




Thistableindicateshowfeedbackisobtainedfromtheemployee,ie.,Oral(23.3%),Written(30%),Detailed(16.7%),Summarized(10%),Self-Assessed(10%),ManagerAssessed(10%)whichholdsgoodforSmall,MediumandLargeCompanies.




Table4.21PerformanceAppraisalSystemandtheeffectivenessof360DegreefeedbackEffectivenessof360DegreeAppraisal20%-35%35%-50%Above50%3(10)3(10)5(16.67)5(16.7)21(70)21(70)30(100)30(100)Total

Appraisal

LessThan20%1(3.3)1(3.3)

Total


InterpretationThistableshowshoweffectiveandfeasiblethe360DegreeAppraisalformatappliestotheCompaniesbrokenupintosegmentsof:lessthan20%,inbetween20%-35%,35%-50%,Above50%




Table4.22Thelevelofeffectivenessof3600appraisalsEffectivenessLessthan20%20%-35%35%-50%50%andAboveTOTALPercentageOfCompany3.33%10%16.67%70%100%No.ofCompany1352130

Source:PrimaryDataHo:TheLevelofeffectivenessof3600appraisalsislessthan50%H1:Thelevelofeffectivenessof3600appraisalsismorethanorequalto50%LevelofSignificance,0.05Z=p-P√PQnp=X/N=21/30X=numberofrespondentssayingtheeffectivenessof3600appraisalsismorethanorequalto50%n=totalnumberofrespondentsie;30P=assumedlevelofeffectivenessi.e

.,0.50Q=1-PQ=1-0.50=0.50Z=0.7–0.5√0.5*0.530Z=2.191CalculatedValue|Z|cal:2.191




TableValue|Z|tab:1.645

InferenceSincethe|Z|cal>Ztab,theresearcherhastorejectNullhypothesisat5%levelofsignificanceandtheresearchercanconcludethatthelevelofeffectivenessof3600appraisalismorethanorequalto50%(H1).




5.1FINDINGSThefollowingfindingshavebeenderivedfromthestudyconducted.Themostcommonappraiseristhemanager/supervisor/appraiser.Theself-appraisalofanemployeeisemphasized.Mostofthecompaniesfollowedacombinationofself-appraisalandmanagerassessment.Thepositiveareas/benefitsoftheappraisalsystemfollowedinsoftwarecompaniesareinputsfortraininganddevelopment,careerplanninganddevelopment.Thereisanopportunityforfreeandregularfeedbackbecauseoftheopenandtransparentsystem.Themanagerappraisalandself-appraisalshelpincomprehensiveresults,duetotheappraisalsthereisscopefortheg

rowthoftheemployeeandorganization.Thereisbenefitoftheobjectivesettingfornextsixmonths.Acleardistinctionbetweenperformersandnon-performersispossible.Appraisalonperformanceaswellasvaluesmakesitapositiveareawhereitmakesitpunctualandefficient.Allvariablesareeasilyquantifiedintoameaningfulexerciseandobjectivewithworkbehavior,helpingqualitativecontributioninbuildingculture.Thecriteria/measurestoevaluateanemployeeinmostofthecompaniesaretechnicalcompetence,performance,workknowledge,achievementvs.objectives,contributioncodingstandard,commonworkingcapital,keyresultareassetatthebeginningofaspecificperiodformingtheresult-orientedareas,leadershipskills,teamwork,attitude,communication,valuesystem,conflictmanagement,interpersonalskills,anddependabilityformingthebehavior-orientedareasinmostofthecompanies.Theratingsystemusedinmostofthecompaniesisbothscoringandcommentswithnumeric-typewidelyusedand

afewcompaniesusebothalphaandnumerictypeofscoring.




Majorityofthecompaniesobtainfeedbackonthepersonbeingappraised.Managergivesthefeedbackinmostcaseswhilepeerandmixedisusedinfewcases.360°feedbackisfollowedinalesserpercentageofcompanies.Reverseappraisal,slab-nottimebasedisprevalentinafewcompanies.Feedbackisgiveninthewrittenform,managerassessedandself-assessedinmostcaseswhilesummarizedinfewcases.Thereisacombinationofthetypeoffeedbackgiventotheemployers.Bothpositiveandnegativefeedbacksaresharedinthesamemeetingwithappraise.Almostallcompaniesfollowaself-assessmentofanemployer,whichisintegrated,intotheappraisalsystemfollowed.Inmajorityofthecompanies,theappr

aisalbythemanagerandself-sourcesareprotected,themanagerassessmentinafewcompaniesthesourcesareprotected.Compensationincreaseisrelatedtoperformanceanddependsontheperformancecode/ratinggiven.Iftheappraisescoresbeyondthecut-offscorebasedonthegrades,araiseisgiven.Itisrelatedtotheincrementandprojectallowance.Theappraisersetstargetsfortheemployeebeingappraisedforaperiodofsixmonths,12monthsandthreemonthsbeinglease.Targetsaretrackedbyconstantmonitoring,appraisalattheendoftheproject,inputformcustomer,sixmonthsreviews,weeklyreports,byrevenuesandassignments.Achecklistforcarryingoutappraisalisfollowedinmanycompanies.Careerplanningisfollowedinmostcompaniesfortwotothreemonths,sixmonths,projectcompletiontime,andcurrentestimatedpotential.Theappraisalsystemismanualwithafewcompaniesfollowingautomatedandfewboth.Thebenefitsof360°feedbackarethatitgivesanallroundperspectiverestrictingthe

inconsistencyfactorsthatexistsintraditionalappraisalsystem.Evaluationandfeedbackismorecomprehensiveandcomplete.Itremovesalotofffrictiondownthelineimprovingboss-subordinaterelation.Thelimitationsbecauseof360°feedbackisnotdirectlyappreciatedandnotwelltakeninapplication-orientedareas.Mostcompanies’havenotimplementedthesystemasitconsumesmoretime.




The3600feedbackisanappropriatesystemtouseasithelpstheappraisetoknowtheareastobefocusedfordevelopment.Anappropriatesystemshouldbeanopensystem,systemthatlinkreward/recognitionandpayforperformance.Itshouldprovidefortwo-wayfeedback,reducesubjectivityjudgmentfactor.Mostofthesoftwarecompaniesareinthevergeofimplementing3600feedbackprocessesinthenearfuture.

5.2RECOMMENDATIONSDuringthestudy,distributionofthequestionnaireandconductingofpersonali

nterviewsdidhelptoarriveatthestandardsofappraisalsystemadoptedbythesoftwareindustryinthecityofBangalore.Appraisalsystemsareaveryeffectivemeanstorealizethegrowthofacompanyanditsemployees.Hence,itisconsideredtobeimportantforthedevelopmentoftheindustry.Fromtheappraisalsystems,the3600arethemostpreferredbyamajorityofthem.

5.3CONCLUSIONThemajorimplicationsaretoknowthedifferentappraisalsystemsadoptedinthesoftwareindustryanditslevelofeffectivenesswhenimplementedinthevariousorganizations.Fromtheresearch,certainsuggestionscouldbearrivedatwiththehelpofavailableandrelevantdata.Thisinturncouldenableonetounderstandthegrowthanddevelopmentofacompanyandthatofitsemployees.Thecommontypeofappraisalsystemistheopensystemandthemanagementbyobjective

s;someofthecompaniesfollowedthe360-feedbackprocess.Thepoint-basedsystemofappraisalisalsoverypopularamongthesoftwarecompanies,withthe5-pointscalebeingwidelyused.Oneofthecompaniesfollowedpersonalinteractionevaluationpersonalbusinesscommitmentprogram.Noneofthecompaniesfollowedonesinglesystem




ofappraisal.Performanceappraisalisfollowedinmostofthecompaniesannuallyandhalfyearlywhilealesspercentagefollowsthequarterlysystem.Acombinationofhalf-yearlyandannualsystemisfollowed.Noappraisalsystemisfreefromlimitationsasitisverysubjective.Theratingbypeerandsubordinatesisnotfollowedwhichisshortcoming.Absenceofprojectendreviewsposesasalimitation.Implementationmaynotbeasplannedbecauseoftimeconstraintsandspanofreports.Overaperiodoftime,appraisalbecomesaritualbecauseofalotofdistrustandemployeesbeingscaredoftheprocess.




AshwathappaK.HumanResourceandPersonnelManagement.TATAMcGrawHill,1997.MonappaArunandMizraS.Saiyadin.PersonnelManagement,TATAMcGrawHill,1997.KrishnaSwamiO.R.MethodologyofResearchinSocialScience.HimalayaPublication,1997.RudrebasavarajM.N.DynamicPersonnelAdministrationmanagementofHumanResourse.HimalayaPublishingHouse,1996.Edwards,R.Mark.360DegreeFeedback:ThepowerfulnewmodelforEmployeeAssessmentandPerformancemanagement.USPublication,1996.MartinFischer.PerformanceAppraisal.SundayTimesBusinessSkills,1996.

QUESTIONNAIRE




IamafinalyearMBAstudentofKristuJayantiCollegeBangalore,conductingaresearchonAppraisalSystems.ThisprojectisinpartialfulfillmentofmyMBAprogram.Yourparticipationillbegreatlyappreciatedinthisresearcheffort;theresponseswillbekeptconfidentialandonlybeusedinanaggregatemanner.NameoftheOrganization:Designation:TotalNo.OfemployeesintheOrganization1.Doyouappraiseanemployeebyanappraisalsystem?YesNo

2.Ifyes,whatisthesystemofappraisaladoptedbyyourcompany?3.Howoftenareappraisalscarriedoutinyourorganization?QuarterlyAnnuallyHalfYearly

Others(PleaseSpecify)

4.Whatarethecriteriausedinyourcompanytoevaluateanemployee?PerformanceTechnicalCompetenceTargetVs.AchievementQualityofOutputCustomerFocusAttendanceKeyResultAreas3PointScale




5.Whatistheratingsystemusedinyourcompany?ScoringBothIfscoringisitAlphaBoth6.Doyouobtainfeedbackonthepersonbeingappraised?YesNoNumericComments

7.Howisfeedbackgiventotheemployees?WrittenDetailedSelf-AssessedOralSummarizedManagerAssessed

8.Doyousharebothpositiveandnegativefeedbackwithappraiseinthesamemeeting?YesNo

9.Doyoufollowaself-assessmentofanemployee?sYesNoNoa)Ifyes,isitintegratedintotheappraisalsystemyoufollow?

10.Iscompensationincreaserelatedtoanappraisalinanyway?YesNo

11.Doestheappraisersettargetsforanemployeebeingappraised?YesIfyes,forwhatperiod?3Months6Months3-6Months12MonthsNo

12.Doyouhaveachecklistforcarryingoutappraisals?YesNo




13.Doyoufollowcareerplanning?YesNo

14.Whatwouldbethelevelofeffectivenessof360scorewhenimplementedasaformofappraisal?Lessthan20%35%-50%20%-35%above50%

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