A Study on the Effectiveness of Existing Performance Appraisal System in Cag Pride, Coimbatore

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A STUDY ON THE EFFECTIVENESS OF EXISTING PERFORMANCE APPRAISAL SYSTEM IN CAG PRIDE,

COIMBATORE.

By

P.DHIVYA

(Reg.No: 71103631005)

Of

KONGU ENGINEERING COLLEGE,Perundurai, Erode – 638 052.

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT SCIENCES

In partial fulfillment of the requirements for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

JUNE, 2005

2

BONAFIDE CERTIFICATE

Certified that this project report titled “A STUDY ON THE

EFFECTIVENESS OF THE EXISTING PERFORMANCE APPRAISAL SYSTEM

IN CAG PRIDE, COIMBATORE is the bonafide work of Ms. P.DHIVYA

(71103631005) who carried out the research under my supervision. Certified

further, that to the best of my knowledge the work reported herein does not from

part of any other project report or dissertation on the basis of which a degree or

award was conferred on an earlier occasion on this or any other candidate.

SUPERVISOR HEAD OF THE

DEPARTMENT

Viva Voce held on

3

INTERNAL EXAMINER EXTERNAL

EXAMINER

ABSTRACT

This project work has been conducted in CAG Pride, Coimbatore. It is the

one of the leading business hotel industry managed by CAG groups.

“A STUDY ON THE EFFECTIVENESS OF THE EXISTING

PERFORMANCE APPRAISAL SYSTEM” is the study conducted at CAG Pride,

Coimbatore. The main objective of the study is to measure the effectiveness of

the existing performance appraisal system. The secondary objectives of this

study are the ways and means to improve the effectiveness of the existing

appraisal system and to measure the subjectivity and objectivity in the existing

performance appraisal system and to increase the objectivity and decrease the

subjectivity.

This study has been compiled with the help of primary data and secondary

data. Primary data were collected from 100 respondents with the help of

structured Questionnaire method. Since the study was the Population Study,

the data were collected from all the employees in the organization. The

Secondary sources of data were collected through company profile, organization

Website and other related library books.

The collected data were analyzed with the help of Simple Percentage

analysis. It was found that there is no regular training program conducted and

majority of the employees were satisfied with the existing appraisal system. To

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conclude the existing performance appraisal system was very good. The

appraisal system shall be conducted at the regular basis.

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ACKNOWLEDGEMENT

I express my deepest sense of gratitude the GOD almighty for the

abundant blessing without which the study would have never been light of the

day.

I here by acknowledge my sincere gratitude to the Kongu Institute of

Technology Trust and Dr. A.M.NATARAJAN, B.E., M.Sc(Engg)., Ph.D.,

Principal, Kongu Engineering College and the Management for giving me an

opportunity to undergo MBA Degree Course and to undertake this project work

successfully.

I wish to express my deep sense of thanks to our Mr. Prof.P.SURESH

KUMAR, M.Sc(Agri).,M.B.A., Director, Department of Management studies,

Kongu Engineering College.

I owe my reverential gratitude to my faculty guide S. MURUGAPPAN,

M.B.A.,for his valuable guidance and suggestions rendered at each stage of the

project.

It is my great pleasure to express my deep sense of thankfulness to

Mr.S.R.Palaniswamy (Managing Director), Mr.SenthilKumar Palaniswamy

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(Executive Director) Mr.A.Sathananthan (Personnel Manager), for providing

me an wonderful opportunity to do my project in their esteemed organization.

Last, but not Least, I would like to acknowledge the wholehearted support

of my parents, faculties, employees and friends who helped me at various stages

in completing this work successfully.

CONTENTS

PAGE

NUMBER

ABSTRACT iii

LIST OF TABLES vii

LIST OF CHARTS ix

CHAPTER 1 INTRODUCTION

1.1 IINDUSTRY PROFILE 1

1.2 COMPANY PROFILE 5

1.3 REVIEW OF LITERATURE. 8

CHAPTER 2 NEED, OBJECTIVES AND LIMITATIONS

2.1 NEED FOR THE STUDY 10

2.2 OBJECTIVES 10

2.3 LIMITATIONS OF THE STUDY 11

CHAPTER 3 RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN 12

3.2 SAMPLING DESIGN 12

3.3 DATA COLLECTION 13

3.4TOOLS USED

13

7

CHAPTER 4 ANALYSIS AND INTERPRETATIONS 14

CHAPTER 5 FINDINGS AND SUGGESTIONS 41

CHAPTER 6 CONCLUSION 44

APPENDICES

REFERENCES

LIST OF TABLES

Table No Particulars Page No.

MEASURING THE SATISFACTION LEVEL OF EXISTING PERFORMANCE

APPRAISAL SYSTEM.

4.1 Reasons for satisfaction/dissatisfaction level towards the

Measurement of Punctuality and Discipline. 14


Measurement of Job Knowledge and Quality of Work. 15


Measurement of Writing and Oral abilities. 16


Measurement of Learning and Communication abilities. 17


Measurement of accepting and implementing change. 18


Measurement of Absenteeism Rate. 20

4.7 Reasons for satisfaction/dissatisfaction level towards the 21

8

Measurement of Flexibility.


Measurement of Personal Grooming. 22


Measurement of Company Policies. 24


Measurement of Computer Skills. 26


Measurement of Guest Relation. 28

WAYS AND MEANS TO IMPROVE THE EXISTING PERFORMANCE APPRAISAL

SYSTEM:

4.12 The way in which the Performance Appraisal System helps

for Future Growth. 30

4.13 The way in which the Training Program helps. 31

4.14 The Self-Improvement after the Performance Appraisal

System. 33

4.15 The parameter to be included In the Performance

Appraisal System. 33

4.16 The level of Communication and Transparency. 34

4.17 The level of changes after the Negative Remarks quotated. 35

4.18 The clarification about the Negative Remarks. 36

EXPLORING OF ASSOCIATION BETWEEN DIFFERENT VARIABLES.

4.19 Related Parameters and their Satisfaction Level 37


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LIST OF CHARTS

Chart No Particulars Page No.

MEASURING THE SATISFACTION LEVEL OF EXISTING PERFORMANCE

APPRAISAL SYSTEM.


Measurement of Punctuality and Discipline. 14


Measurement of Job Knowledge and Quality of Work. 15


Measurement of Writing and Oral abilities. 16


Measurement of Learning and Communication abilities. 17


Measurement of accepting and implementing change. 19


Measurement of Absenteeism Rate. 20


Measurement of Flexibility. 21

4.8Reasons for satisfaction/dissatisfaction level towards the

23

10

Measurement of Personal Grooming.


Measurement of Company Policies. 25


Measurement of Computer Skills. 27


Measurement of Guest Relation. 29

WAYS AND MEANS TO IMPROVE THE EXISTING PERFORMANCE APPRAISAL

SYSTEM:

4.12 The way in which the Performance Appraisal System helps

for Future Growth. 30

4.13 The way in which the Training Program helps. 32

4.14 The Self-Improvement after the Performance Appraisal

System. 33

4.15 The parameter to be included In the Performance

Appraisal System. 33

4.16 The level of Communication and Transparency. 34

4.17 The level of changes after the Negative Remarks quotated. 35

4.18 The clarification about the Negative Remarks. 36

EXPLORING OF ASSOCIATION BETWEEN DIFFERENT VARIABLES.



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CHAPTER – 1

INTRODUCTION

1.1 INDUSTRY PROFILE:

1.1.1 HOSPITALITY INDUSTRY GETS TECHNICALLY FIT:

The hospitality industry in India is increasingly taking the help of technology to

not only cut costs but also lure customers. Today, guests in most five star hotels

can access the Internet through their laptops at the poolside or in conference

rooms, with equal ease, thanks to wireless LAN (WLAN). Innovations like these

that seem like technological marvels today will be commonplace tomorrow, as

almost all leading hospitality chains will provide wireless connectivity.

1.1.2 GOING BACK:

In days gone by it was said that in order to succeed, all a hotel needed was a

scenic location and good cuisine. But in today’s competitive environment, a

mistake as trivial as not taking down a customer’s order can prove disastrous. As

the hospitality industry started looking for ways to improve efficiencies, efforts

and investments in the field of information technology intensified. One of the first

deployments of IT began at the front desk when receptionists began checking the

name of the customer and then allotted a room to him. Big hotels also started

putting in place accounting systems and back office software to improve

processes. As hotel chains started expanding their operations across the

country, it was necessary to monitor their assets.

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1.1.3) DEVELOPMENT IN I.T IN HOTEL INDUSTRY:

Today, the IT initiatives of hotel chains in India have matured, and are being

increasingly fine-tuned to serve the needs of the customer. Says Pradeep

Khetwal, systems manager, Le Royal Meridien (Mumbai), Most hospitality chains

now realize that technology in the hospitality industry is critical to improve the

operational efficiency of a hotel. The industry has moved from the traditional

transaction-based processes such as check-in and reservations to features that

are built and designed specifically for the customer. Services like providing

wireless Internet access to guests will CRM.

While IT initiatives like centralized management and automating daily operations

are important, the key part of retaining a customer is critical to the hospitality

industry, which explains why every chain is taking the help of technology to

improve efficiency. Take a look at Le Royal Meridien. The hotel has deployed a

check-in system on each floor depending on the guest’s profile.

1.1.4) CUSTOMER RELATIONSHIP MANAGEMENT:

CRM is also being adopted in a big way by almost all the big hotel chains in

India. At present, every major hotel chain in India is investing in comprehensive

systems that store complete profiles of their customers. The moment a guest

checks in, he fills a form indicating his various preferences. If he is a regular

client, the hotel immediately knows of his preferences and serves him

accordingly. Most hotels today offer a customer different schemes based on his

profile. In the traditional method, this was done manually with no clear

understanding of a customer’s preferences. But now, with knowledge of the

customer’s history, a hotel can service a customer more efficiently.

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1.1.5) ON LINE RESERVATION SYSTEM:

In the dot-com phase, hotels were attracted to the Web and were expecting

major revenues to come from online reservations. But just like other industries,

hotels too have been disappointed. Today, websites of most hotels serve only as

information outlets, and almost no booking take place through the Web. One

obvious reason is security, which makes customers reluctant to reveal their credit

card details on the Web. Says Shailesh Bhagwat EDP executive of Orchid,

“Proper security systems are a must to avoid fraud in non face-to-face

transactions.

1.1.6) OUTLOOK:

With busy season for the hotel industry approaching in the second half of the

year, overall ARR and occupancy rates of the industry would increase. In some

cities like Bangalore and Hyderabad, ARR and occupancy rates would remain

higher than industry average, as demand supply scenario is favoring the hotels.

As the busy season for the hotel industry commences in the second half of year,

the companies’ revenues and profitability are set to increase. Almost 65-70% of

total revenues and 70-80% of the profits of hotel industry come in second half of

year. Mid-cap stocks like Hotel Leelaventures and TAJGVK Hotels would

outperform the industry in top line and bottom line growth as they have properties

in right locations.

1.2.7) BAN GALORE HOTEL INDUSTRY IS ON A HIGH:

The hotel industry in Bangalore is witnessing an all-time high. While the business

has been on an upswing for the past two years, industry sources say, that this

year too has started on a great note. Most categories of hotels are expecting

90% and above occupancies till March. CNBC-TV18 reports on why it is so

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difficult to get a room in Bangalore these days. Bang lore’s hotels are going

chock-a-block these days. What began as a boom two years ago, has now

turned into full-fledged growth for the entire industry, leading to almost 19 new

hotels being built in the city. But analysts say even this will not quell the demand

for the burgeoning visitor population into the city. This is reflected in last year's

spike in occupancies continuing this year also, despite an additional hotel being

available now. In Bangalore, 60% of the visitors coming to the hotels are from the

business category. However, currently, events like the visit of an international

pastor Benny Hinn and the upcoming international Aero show, combined with

musician Sting's visit in February is spiking occupancy rates. Bangalore recorded

an average of 79% hotel occupancy last year - the highest in the country. This

demand has predictably led to an increase in revenues.

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1.2 COMPANY PROFILE:

1.2.1 INTRODUCTION:

CAG Pride “your Privilege…Our Pride” launched in the year 1998 September

with 32 rooms. CAG Pride is the Coimbatore’s latest and ultra modern three star

business class hotel and it is eight Year old. The motto of the company is

“Redefining Hospitality”.

1.2.2 ABOUT CAG GROUPS:

CAG PRIDE is bought by Coimbatore Auto Garrage (CAG), the pioneers in the

automobile industry for over 40 years. CAG had expanded its operation to,

CAG motor dealership for Daewoo and Matiz cars (parent

company).

CAG enterprise dealership for Yamaha motorcycles.

CAG equipment manufacturing automobile aucillary spares.

The CAG group is well established and reputed name in the automobile industry

with 40 years of experienced service and the group has now diversified in to the

hotel industry. CAG Pride has opened a new vista in the hospitality horizon with a

commitment to quality and continued improvement, providing reliable,

responsible and sincere to its guests.

The CAG groups is a well established and reputed name in the automobile

Industry with 40 years of experienced service and the group has now diversified

into the hotel industry. CAG Pride has opened the new vista in the hospitality

horizon with the commitment to quality and continued improvement, providing

reliable, responsible and sincere service to its guests.

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1.2.3 ABOUT THE SERVICE:

The hotel provides genuine hospitality and gracious service to all it guests. It has

all the comforts to make you feel very much at home. The ambience of the hotel

and the ever-attentive service personnel make your stay a very pleasant and a

memorable one. Our hospitality comes straight from the heart and it will make

you return here many times in the future.

1.2.4 FACILITIES AVAILABLE:

74 LUXURIOUS ROOMS:

CAG Pride is centrally air-conditioned having 74 luxurious rooms and suites. The

well-appointed rooms are brightly lit and have a soothing ambience. The suites

are well equipped with all the modern amenities to meet all your requirements.

The room service is forever prompt and efficient and all these features combine

to make CAG Pride, the perfect halt during a business meetings and conferences

any time of the year.

STEAMING KETTLE:

Our very own coffee shop is open round the clock. The café dishes out quick and

tasty snacks, hygienic food, tea or coffee piping hot or cold beverages all

economically priced to suit your tastes.

GOLDEN CROP:

The multicuisine restaurant serves haute cuisine. Our expert chefs prepare

sumptuous and succulent delights to pamper the taste buds of all our guests. Our

exotic recipes are a gourments delight. This restaurant offers Indian, continental

and Chinese till midnight.

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KNOTTY SPIRITS:

The well stocked cock tail lounge with colonial ambience and choice cocktails.

Our permit room is an escape from the business pressures and it lightens your

spirits. The permit room has an Impressive and select wine list.

GALLERIA:

The banquet cum conference hall is well lit and very spacious. It easily

accommodates 120 persons. A perfect setting for a Business meet, seminar,

conference or an informal get-together.

PRIDE LOUNGE:

The prestigious hall is located in the lower lobby lever and suitable for smaller

meetings, can accommodate up to 30-40 persons at a time.

BOARD ROOM:

The apt room situated in the lower lobby level to convene any kind of formal

meetings accommodating 8-12 persons at a time.

1.1.5 LOCATION:

CAG Pride is centrally located near the city central bus stand and within easy

access to many shopping arcades. It is just 2 KM from city railway station and 8

Km’s from the airport making it very convenient address for you.

1.1.6 COMPANY POLICY:

“To provide our guests with the quality service, quality facility and memorable

wine and dine experience through quality process and procedures”

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1.3 REVIEW OF LITERATURE:

1.3.1 PERFORMANCE APPRAISAL:

Performance appraisal, personnel rating, merit rating or performance evaluation

is one of the most important functions of personnel management. People differ in

their abilities and aptitudes. The personnel management should know these

differences to develop various development programmes in the organization to

have an efficient work force. Merit-rating technique has been evolved to know the

relative worth of the employee – quantitatively and qualitatively – on the job, in

comparison to other fellow workers. Merit rating is used for measuring the merit

or performance of an employee and comparing it with that of others in the same

group.

1.3.2 OBJECTIVE:

“The overall objective of performance appraisal is to improve the efficiency of an

enterprise by attempting to mobilize the best possible efforts from individuals

employed in it. Such appraisal achieves four objectives including the salary

reviews, the development and training of individuals, planning job rotation and

assistance promotions”.

THE LITERATURE REVIEW GIVEN BELOW IS WITH REFERENCE TO

HOTEL “SURYAINTERNATIONAL”, COIMBATORE.

In Hotel Surya International Performance Appraisal, is done once in six months

once. Performance Appraisal is conducted for all the employees by their

respective head of the department. After conducting the appraisal, the

performance is ranked with the standard performance system.

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If the high-ranking employee is from the lower cader, then the employee is given

promotion or free holiday tickets to the family or free uniforms or food is provided

when they are in duty or salary is increased. If the employee is from poor family

then the fund is provided for their children for basic education.

If the performance of the employees is not good, then the industry will try to find

out problems and it will pay more attention to those employees and the company

will train them and give motivation for those employees whose performance is

not good.

More over the employees are considered as their family members and the

employees have the chance to have open interaction with the top management.

This project results in performance appraisal was noted in the year July 2000.

The results were analyzed by using simple percentage method.

As far as CAG Pride is concern, there is no such research work is been carried

out. This is the first time the research work is been carried out by me since the

company is in state of dilemma. And the management was in the position to

know whether the existing performance appraisal system is effective or not. And

they want the employees to suggest some of the ways and means to improve the

existing performance appraisal system.

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CHAPTER – 2

2.1 NEED FOR THE STUDY:

The following are the needs to do the research at CAG Pride.

1. There is no such research work was carried before.

2. The management was in the position to know whether the existing

performance appraisal system is effective or not.

3. To measure the satisfaction level of the employees.

4. To get suggestions from the employees for further improvement in existing

performance appraisal system.

5. To contribute to the growth of the organization.

2.2 OBJECTIVES:

2.2.1 PRIMARY OBJECTIVE:

Measuring the effectiveness of the existing performance appraisal system.

2.2.2 SECONDARY OBJECTIVES:

1. Suggest the ways and means to improve the effectiveness of the existing

performance appraisal system.

2. To measure the subjectivity and objectivity, which influence the existing

Performance appraisal system and remove the subjectivity and increase

the objectivity.

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2.3 LIMITATIONS OF THIS STUDY

1. The respondent attitude did not allow me to get their true feelings.

2. Most of the respondent feared to give their name.

3. Most of the employees were busy with their tight work and they don’t want

to be disturbed.

4. Employees are very limited and duration is limited.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the research purpose with

economy in procedure.

There are three types of research designs. They are,

Exploratory research design.

Conclusive research design.

Descriptive research design.

Casual research design.

Performance monitoring research.

The research design that is been applied is Performance Monitoring research

design. The performance of the employee is monitored based on the strategy of

the organization and this research helps us to learn how this strategy is working.

3.2 SAMPLING DESIGN:

3.2.1 POPULATION:

The employees of CAG Pride will constitute the entire population. Here the entire

population is considered for my study because the population is limited.

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3.3 DATA COLLECTION:

Data is recorded measure of phenomena. While deciding about the method of

data collection, the researcher should keep in the mind about two types of data.

They are,

Primary Data

Secondary Data.

3.3.1) PRIMARY DATA:

Primary data is the first hand information, which the researcher gets from the

population. The tool for collecting primary data is “Questionnaire”. These data

are collected directly from the employees of CAG Pride.

3.3.2) SECONDARY DATA:

Secondary data has been collected from the books, magazines, Internet etc….

3.4) TOOLS USED:

The tool used for collecting the primary data is “Questionnaire”. The

questionnaire was used to collect the bulk of data. Questionnaire is the set of

questions put forward for the employees to answer. The required data was

collected by using both open-ended and close-ended questions. This is a

preferred technique for collecting the primary data. Any doubts raised were

cleared immediately. The questionnaire uses 5-point likert scale and it is a

structured questionnaire.

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CHAPTER 4

TABLE 4.1. REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF PUNCTUALITY AND DISCIPLINE.

Satisfaction level

Options

Highly satisfied

% Value Satisfied % Value

Proper record keeping 6 100 77 82Nature of the appraiser - - 5 5.3Helps for the future growth - - 9 9.5All the above - - 3 3.19Grand total 6 100 94 100

82% of the employees are satisfied by measurement through proper record

keeping. The company should concentrate in maintaining records in addition to; it

should concentrate more on other parameters mentioned above.

CHART 4.1: REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF PUNCTUALITY AND DISCIPLINE.

26

TABLE 4.2. REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF JOB KNOWLEDGE, QUALITY OF

WORK ETC.

Satisfaction level

Options

Highly satisfied

% Satisfied %

Handling of work independently - - 47 47.4Achievements based on org.goal 1 100 35 35.3Helps for the future growth - - 2 2Personal interest contributing to org.goal - - 6 6.1With in the stipulated time - - 3 3All the above - - 6 6.1Grand total 1 100 99 100

Among 100% of the employees, 47.4% are satisfied through measurement

through handling of work independently and 35% of the employees are satisfied

through measurements of achievements based on the organization goal. From

the above table it is clear that the company should get focus with the other

variables in order to increase the satisfaction level of the employees.

CHART 4.2. REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF JOB KNOWLEDGE, QUALITY OF

WORK ETC.

27

TABLE 4.3. REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF WRITING AND ORAL ABILITIES.

Satisfaction Level

Options

Satisfied % Value Dissatisfied % Value

Measurement through addressing the meeting/ Do not measure

31 32 3 100

Proper record keeping 54 55.6 - -Nature of the appraiser 1 1 - -Helps for the future growth 4 4.1 - -All the above 7 7.2 - -Grand total 97 100 3 100

Out of 100% of the employees, 56% are satisfied through measurement of

proper record keeping. The company should focus on other factors in order to

increase the satisfaction level. Only 3 employees are dissatisfied because they

think that it does not measure through addressing the meetings.

CHART 4.3. REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF WRITING AND ORAL ABILITIES.

28

TABLE 4.4 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF LEARNING AND COMMUNICATION

ABILITIES.

Satisfaction LevelOptions

Highly satisfied


Co-ordination among employees

1 100 54 55

Willingness to learn the job - - 30 30.3Addressing the meetings - - 1 1Nature of the appraiser - - 3 3Helps for future growth - - 2 2All the above - - 9 9Grand total 1 100 99 100

Among 100% of the employees, 54% are satisfied because of the measurement

through co-ordination among employees. The organization should concentrate

more on other factors in order to increase the satisfaction level of the employees.

CHART 4.4 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF LEARNING AND COMMUNICATION

ABILITIES.

29

TABLE 4.5 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL

TOWARDS THE MEASUREMENT OF ACCEPTING AND IMPLEMENTING

CHANGE.

Satisfaction level

Options

Satisfied % Dissatisfied %

Higher authorities referred 15 15.6 - -

Taking immediate action/do not 64 66.6 2 50

Referring the manual/do not 5 5.2 1 25

Proper record keeping 3 3 - -

Nature of the appraiser 3 3 - -

Helps for the future growth 6 6.2 - -

All the above - - 1 25

Grand total 96 100 4 100

Among 100%, measuring the ability in taking immediate action satisfies only

66.67% of the employees. The company should increase the level of employee’s

ability in taking immediate action. In addition to, the company should concentrate

on the other variables mentioned above. Among dissatisfaction level, 2

employees are dissatisfied because it does not help in taking immediate action.

The company could rectify the above factor, in order to eliminate the

dissatisfaction level.

30

CHART 4.5 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL

TOWARDS THE MEASUREMENT OF ACCEPTING AND IMPLEMENTING

CHANGE.

31

TABLE 4.6 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF ABSENTEEISM RATE.

Satisfaction

Level

Options

Highly

Satisfied % Satisfied % Dissatisfied %

Report timing 2 100 16 16.4 - -

Proper record keeping

- - 73 75.2 - -

Nature of the appraiser

- - 3 3 - -

Helps for the future growth

- - 1 1 1 100

All the above - - 4 4.1 - -

Grand total 2 100 97 100 100 100

Among 100% of the employees, 75.25% are satisfied because of measurement

through proper record keeping. The company has to concentrate more on report

timing because only 16.49% of the employees are satisfied. Only one employee

is highly dissatisfied because the employee thinks that absenteeism does not

help for future growth.

CHART 4.6 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE

MEASUREMENT OF ABSENTEEISM RATE

32


TOWARDS THE MEASUREMENT OF FLEXIBILITY.

Satisfaction Level

Options

Highly

Satisfied


Helps for the future growth 3 100 53 54.6

Proper record keeping - - 32 32.9

Nature of the appraiser - - 9 9.2

All the above - - 3 3

Grand total 3 100 97 100

Among 100% of the employees, 54.6% are satisfied because they think that it

helps for future growth.32.9% of the employees are satisfied because of

measurement through proper record keeping. The company should

concentrate more on other factors, which will improve the satisfaction level of

the employees.

CHART 4.7 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF FLEXIBILITY

33


TOWARDS THE MEASUREMENT OF PERSONAL GROOMING.

Satisfaction Level

Options

Highly

Satisfied % Satisfied % Dissatisfaction %

Measure the personality/

does not measure

3 100 18 18.9 1 100

Interest towards the job/

does not measure

- - 61 64.2 1 100

Helps for the future

growth

- - 2 2.1 - -

Proper record keeping - - 5 5.2 - -

Nature of the appraiser - - 4 4.2 - -

All the above - - 5 5.2 - -

Grand Total 3 100 95 100 2 100

Among 100% of the employees, 64.2% are satisfied, because it helps to

measure the interest towards the job. The organization could think of increasing

the satisfaction level towards other factors. Among dissatisfaction level, 2

employees are dissatisfied in measuring the personal grooming. If the company

could tell about the importance of the personal grooming, then the satisfaction

level of the employees can be increased.

34


TOWARDS THE MEASUREMENT OF PERSONAL GROOMING.

35


TOWARDS THE MEASUREMENT OF COMPANY POLICIES

Satisfaction

Level

Options

Highly

Satisfied

% Satisfie

d

% Dissati

sfied

% Highly

Dissati

sfied

%

Nature of the

appraiser 2 100 4 43.4 - - - -

Existing

measurement

and objectivity

- - 63 68.4 1 33.3 3 100

Helps for

future

growth/does

not

- - 15 16.3 2 66.6 - -

All the above - - 10 10.8 - - - -

Grand total 2 100 92 100 3 100 3 100

Among 100% of the employees, 68.4% are satisfied because they think that

existing measurement and objectivity helps them to know about the company

policies. The company should concentrate more on other factors in order to

increase the satisfaction level. Among the dissatisfaction level, 66.6% of the

employees are dissatisfied because they think that the company policy does not

help for future growth. The company should try to change the attitude of the

employees. Only one employee is highly dissatisfied because they think that

existing measurement and objectivity does not helps. The company should try to

change the wrong idea of the employees.

36

CHART 4.9 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF COMPANY POLICIES

37


TOWARDS THE MEASUREMENT OF EDUCATION AND COMPUTER

SKILLS.

Satisfaction

Level

Options

Highly

Satisfie

d

%

Satisfie

d

% Dissatis

fied

%

Highly

Dissati

sfied

%

Nature of the

appraiser 2 100 4 8.16 1 2.3 1 14.2

Existing

measurement

and objectivity

- - 26 53.06 6 14.2 6 85.7

Helps for future

growth/does

not - - 12 24.48 35 83.3

3

- -

All the above - - 7 14.28 - - - -

Grand total 2 100 49 100 42 100 7 100

Because of the parameter, existing measurement and objectivity, 53.06% of the

employees are satisfied. The company should keep on increasing this factor on

one side and should concentrate more on other variables. Among 100% of the

dissatisfaction level, 83.3% of the employees are dissatisfied because they think

that education and computer policies does not help for the future growth. The

employees are in wrong perception and the company should teach them about

the importance of the education and computer skills and should make all the

employees to be satisfied.

38


TOWARDS THE MEASUREMENT OF EDUCATION AND COMPUTER

SKILLS.

39

TABLE 4.11 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF GUEST RELATION.

Satisfaction

Level

Options

Highly

Satisfied % Satisfied % Dissatisfied %

Nature of the

appraiser6 100 4 43.4 - -

Existing

measurement

and objectivity - - 58 63 2 100

Helps for

future

growth/does

not

- - 19 20.6 - -

All the above - - 11 11.9 - -

Grand total 6 100 92 92 2 100

Among 100% of the employees, 63% are satisfied because they think that existing

measurement and objectivity help to measure the guest relation. The company

should concentrate more on other variable in order to increase the satisfaction

level of the employees. Among dissatisfaction level, only one employee is

dissatisfied because of wrong perception that existing measurement and objectivity

does not help.

40

CHART 4.11 REASONS FOR SATISFACTION/DISSATISFACTION LEVEL TOWARDS THE MEASUREMENT OF GUEST RELATION

41

WAYS AND MEANS TO IMPROVE THE EXISTING PERFORMANCE

APPRAISAL SYSTEM

TABLE 4. 12: THE TABLE SHOWS THE WAY IN WHICH THE PERFORMANCE APPRAISAL SYSTEM HELPS FOR FUTURE GROWTH

PAS helps for future growth

Way it helps No.Of.Respondents % Value

Get increments 47 47Motivates for future growth 31 31Improve the quality of work 8 8All the above 13 13PAS does not helps 1 1Grand Total 100 100

Among 100% of the employees, 99% said that the performance appraisal help

for the future growth. 47% of the employees said performance appraisal helps

them to get increments. Only one employee said that performance appraisal

does not help for the future growth. It is the duty of the company to make the

employee to realize about the importance of the appraisal system.

CHART 4. 12: THE TABLE SHOWS THE WAY IN WHICH THE PERFORMANCE APPRAISAL SYSTEM HELPS FOR FUTURE GROWTH.

42

TABLE 4. 13: THE TABLE SHOWS THE WAY IN WHICH THE TRAINING

PROGRAM HELPS.

Way it helps

<1 year

% <2 year

% <3 Year

% >3 year

% TotalValue

Help to increase the productivity

15 37.5 - - 1 2.5 1 2.5 17

Help to increase the quality

9 22.5 1 2.5 4 10 - - 14

Help to improve the health and safety

1 2.5 - - - - - - 1

All the above

1 2.5 2 5 - - 5 12.5 8

Grand Total

26 40 3 40 5 40 6 40 40

Only 40% of the employees said that the training is conducted. Among 40%,

37.5% of the employees said that the training is conducted once in a year and it

helps to increase the productivity. Only one employee said that the training is

conducted more than thrice in a year and it help to increase the productivity. 60%

of the employees said that they had not attended any training program. The

company has to increase the level of percentage by conducting more and regular

training program to the employees, So that the employee can understand how

the training program helps.

43

CHART 4. 13: THE TABLE SHOWS THE WAY IN WHICH THE TRAINING

PROGRAM HELPS

TABLE 4.14.TABLE SHOWS SELF-IMPROVEMENT AFTER PERFORMANCE

APPRAISAL SYSTEM.

44

Improvement after PASNo. OfRespondents % Value

Yes 100 100No - -Grand Total 100 100

100% of the employees tell that they had improved themselves after the appraisal program.

TABLE 4.15.TABLE SHOWS THE PARAMETERS TO BE INCLUDED IN THE PERFORMANCE APPRAISAL SYSTEM.

Parameters No. OfRespondents % Value

Dependability 3 3Inter personal skill 86 86All the above 11 11Grand Total 100 100

Among 100% of the employees, 86% said that the parameter interpersonal

skill is to be included in the appraisal form.

CHART: 4.15.TABLE SHOWS THE PARAMETERS TO BE INCLUDED IN THE PERFORMANCE APPRAISAL SYSTEM.

TABLE 4.16. TABLE SHOWS THE LEVEL OF COMMUNICATION AND

TRANSPARENCY.

45

No.of.respondents

Communication

Transparency

Yes % Value Partly % Value No % Value

Yes 79 94 14 100 - -No 5 5.9 - - 2 100Grand Total 84 100 14 100 2 100

Among 100% of the employees, 94%said that the system is transparent

and there is proper communication regarding the negative remarks. The

company has to increase the level of communication regarding the

negative remarks. Only one employee said that the system is not

transparent and there is no communication regarding the negative

remarks.

CHART 4.16. TABLE SHOWS THE LEVEL OF COMMUNICATION AND TRANSPARENCY.

TABLE 4.17.THE TABLE SHOWS THE LEVEL OF CHANGES AFTER THE NEGATIVE REMARKS QUOTED.

46

Level Of Changes No.Of.Respondents % ValueYes 87 87May be 11 11No 2 2Grand total 100 100

Among 100% of the employees, said that they have changed themselves after

telling their negative remarks. The company is responsible to make changes in

the employees after the appraisal. Only 2 of the employees said that they would

not change themselves after the negative remarks. It is duty of the company to

tell about the company rules and policies and make them to change their

negative.

CHART 4.17.THE TABLE SHOWS THE LEVEL OF CHANGES AFTER THE NEGATIVE REMARKS QUOTED

TABLE 4.18.THE TABLE SHOWS THE CLARIFICATION ABOUT THE

NEGATIVE REMARKS.

47

Parameters Benefit/ChanceClarification Yes % Value No % ValueYes 91 95.7 2 66.7N0 4 4.2 1 33.3Total Value 95 100 3 100

Among 100% of the employees, 95.7% said that they had got chance for further

clarification and they got benefit by it. The organization has to tell about what are

benefits they will get after appraisal, so that the level of employees can

increased. 66.67% of the employees said that they had not got any such chance

for clarification.

CHART 4.18.THE TABLE SHOWS THE CLARIFICATION ABOUT THE

NEGATIVE REMARKS

TABLE 4. 19: MATCHING THE RELATED PARAMETERS AND MEASURING THEIR SATISFACTION LEVEL USING SIMPLE PERCENTAGE METHOD.

48

ParametersName of the parameter

Highly Satisfied

Satisfied Dissatisfied Highly Dissatisfied

IWrite & oral - 97 3 -

Job Knowledge 1 99 - -

IIPun & Discipline 6 94 - -

Absenteeism 2 97 1 -

IIIGuest relation 6 92 2 -

Personal Grooming

3 95 2 -

IVImplement change

- 96 4 -

Flexibility 3 97 - -

VLearn & commu 1 99 - -

Company Policies

2 92 3 3

Approximately more than 90% of the employees are satisfied with the above-

mentioned parameters. Around 5% of the employees are highly satisfied for only

few parameters. Around 4% of the employees are dissatisfied for few parameters

mentioned above. Only 3 of the highly dissatisfied for the parameter company

policies.

CHART 4. 19: MATCHING THE RELATED PARAMETERS AND MEASURING THEIR SATISFACTION LEVEL USING SIMPLE PERCENTAGE METHOD.

49

TABLE 4. 20: MATCHING THE RELATED PARAMETERS AND MEASURING THEIR SATISFACTION LEVEL USING SIMPLE PERCENTAGE METHOD.

50

ParametersName of the parameter

Yes No May Be

ITraining Pgm 40 60 -

Future Growth 99 1 -

IIImprovement 100 - -

Try to Change 87 2 11

IIITransparency 100 - -

Further Clarification

87 2 11

Around 99% of the employees said that performance appraisal helps for future

growth. 100% of the employees said that the system is transparent.

Approximately 10% said that there is chance for further clarification. Around 85%

said that they would try to change themselves after the negative remark quotated

in the appraisal form.

CHART 4. 20: MATCHING THE RELATED PARAMETERS AND MEASURING THEIR SATISFACTION LEVEL USING SIMPLE PERCENTAGE METHOD.

51

CHAPTER 5

FINDINGS

1. The effectiveness of the existing performance appraisal system in CAG

Pride is measured by using the following variables,

52

Punctuality & Discipline

Job knowledge & quality of work.

Writing & oral abilities

Learning & communication

Accept & implement change

Absenteeism rate

Flexibility

Personal Grooming

Company policies

Education &Computer Skills

Guest Relation.

Above 80% of the employees are satisfied on proper

record keeping, which helps to measure the effectiveness

of the employees.

Above 50% of the employees are satisfied with the existing

measurement and objectivity.

Above 60% of the employees are satisfied with the nature

of the appraiser.

Above 80% of the employees are dissatisfied with the

education and computer policy because they think that it

does not help for future growth.

53

2. The following are the ways and means to improve the effectiveness of the

existing performance appraisal system,

Regular training program shall be conducted in order to

increase the awareness on the appraisal system.

After appraisal program, if there is any improvement then

the employees can be motivated by providing incentives.

Adding the parameters such as Interpersonal Skill,

Dependability to the existing performance appraisal

system.

3. The subjectivity is too high for the parameters of education, computer

skills and company policies. The company shall try to increase the

objectivity in those parameters.

SUGGESTIONS

54

1. In order to improve the performance level of employees the organization

should create more awareness and to provide feedback regularly to the

employees about performance appraisal system.

2. Proper training should be given to the employees, in order to increase

their knowledge about the usefulness of the appraisal system.

3. Top management shall continually review the appraisal conducted, which

shall be seen as positive support to the system by the appraiser as well as

appraisees, and their interest will be maintained.After appraisal program if

there is any improvement, the employees should be motivated by

Promotion, Increments etc.

55

CHAPTER 6

CONCLUSION

The study had confirmed that the company is having a good Performance

Appraisal System.

From this study, it is found that majority of the workers were satisfied with

the Performance Appraisal System.

To make the performance appraisal system more efficient and excellent,

the company should give importance to the employees and create

awareness among employees and it shall consider some of the ways and

means suggested by the employees like addition of parameters such as

Interpersonal skill, dependability and conducting regular training program

on the appraisal system.

I hope that the suggestion given in the report may be implemented in

future course for the benefit of the workers and the company.

The company should conduct the similar type of research at regular

interval to know the changing attitude of workers and to know about their

improvement in order to motivate them.

56

APPENDICES - I“A STUDY ON THE EFFECTIVENESS OF THE EXISTING PERFORMANCE

APPRAISAL SYSTEM” – In CAG PRIDE, Coimbatore.

Please put (*) in the appropriate places:

PERSONAL DETAILS

NAME: AGE: GENDER:

DEPARTMENT: DESIGNATION:

1.Are you satisfied with the method used to measure the Punctuality and Discipline in the existing performance appraisal system?

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

1.a) If your answer is “satisfied”, because, i Measurement through “proper record keeping”.

ii The nature of the appraiser

iii It help for the future growth.

iv All the above.

If any other, please specify,

1.b) If your answer is “dissatisfied”, because,

i Lack of “record keeping”.

ii The nature of the appraiser.

iii High subjectivity.

iv All the above.


57

2. Are you satisfied with the method used to measure the Job Knowledge, Quality of Work, Effective Time at Work and Attitude towards Work in the existing performance appraisal system?



2.a) If your answer is “satisfied”, because,

i Measurement through handling of work independently.

ii Measure the achievements based on the organizational goal.

iii It help for the future growth.

iv . Measure the personal interest contributing to organizational interest.

v Measurement of the job within the stipulated time.

vi All the above.



i Not measuring through handling of work independently.

ii Not measuring the achievements based on the organizational goal

iii Doe Not measure the personal interest contributing to organizational interest. iv Does not measure the job within the stipulated time.

v High subjectivity.

vi All the above.


58

3. Are you satisfied with the method used to measure the Writing and Oral abilities in the existing performance appraisal system?




i Measurement through “addressing the meetings”.

ii Measurement through “proper record keeping”.

iii The nature of the appraiser.

iv It helps for the future growth.

v All the above.


3.b) If your answer is “dissatisfied”, because of,

i It does not measure through “addressing the meetings”.

ii Lack of record keeping.


iv High subjectivity.

v All the above.


4. Are you satisfied with the method used to measure the Ability to Learn and Communicate in the existing performance appraisal system?

59




i Measurement through “coordination among the employees”.

ii Measurement through “willingness to learn in the job”.

iii Measurement through “addressing the meetings”.

iv The nature of the appraiser.

v It helps for the future growth.

vi All the above.



i not help to measure the coordination among the employees.

ii Does not measure the “willingness to learn in the job”.

iii Does not measure through “addressing the meetings”.

iv The nature of the appraiser.

v It does not help in the future growth. vi High subjectivity

vii All the above.


60

5. Are you satisfied with the method used to measure the Ability to Accept, Implement the Change, to For See Problem and Plan and to take Decision at Short Notice in the existing performance appraisal system? Highly satisfied Satisfied Neutral


5 a) If your answer is “satisfied”, because,

i Measurement through how many times the higher authorities are referred. ii Measurement through the “ability to take immediate action”.

iii Measurement through fastness in referring the manual and taking decision iv Measurement through “proper record keeping”.

v The nature of the appraiser

vi It helps for the future growth.

vii All the above.



I Not measure through how many times the higher authorities are referred

ii It does not measure through the “ability in taking immediate action”.

iii not measure through fastness in referring the manual

iv Lack of record keeping.

v The nature of the appraiser. vi High subjectivity. vii All the above.


61

6.Are you satisfied with the method used to measure the Absenteeism Rate in the existing performance appraisal system?




i Measurement through “report timing”.

ii Measurement through “proper record keeping”.

iii The nature of the appraiser

iv It helps for the future growth.

v All the above.



i It does not measure through “report timing”.

ii Lack of “record keeping”.


iv High subjectivity.

v All the above.

If any other, please specify

62

7.Are you satisfied with the method used to measure the Flexibility in the existing performance appraisal system?




i Helps for the future growth

ii Measurement through “proper records”.

iii Nature of the appraiser iv All the above.


7 b) If your answer is “dissatisfied”, because,

i Does not helps in the “future growth”.

ii Do not measure through “proper records”.

iii Nature of the appraiser iv All the above.


63

8.Are you satisfied with the method used to measure the Personal Grooming in the existing performance appraisal system?




i It helps to “measure the personality”.

ii Measures the “interest towards the job”.

iii Help for the future growth

iv Measurement through “proper records”.

v Nature of the appraiser vi All the above.



i Does not help to “measure the personality”.

ii It does not measures the “interest towards the job”.

iii It does not help for the future growth

iv Measurement through “proper records does not helps”.

v Nature of the appraiser vi All the above.


64

9. Are you satisfied with the method used to measure the Knowledge on the Company policies in the existing performance appraisal system?




i Nature of the appraiser. ii Due to “existing measurement and objectivity”.

iii Helps in the future growth.

iv All the above.



i Nature of the appraiser. ii The “existing measurement and objectivity does not help”.

iii Does “not help in the future growth”.

iv All the above.


65

10. Are you satisfied with the method used to measure the Education and Computer Skills in the existing performance appraisal system?





iii Helps for the future growth.

iv All the above.



i Nature of the appraiser. ii The “Existing measurement and objectivity does not helps”.

iii Does not help for the future growth.

iv All the above.


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11.Are you satisfied with the method used to measure the Guest Relation in the existing performance appraisal system?



11 .a) If your answer is “satisfied”, because,


iii Helps for the future growth.

iv All the above.


11. b) If your answer is “dissatisfied”, because ,

i Nature of the appraiser. ii “Existing measurement and objectivity does not helps”.

iii Does not help for the future growth.

iv All the above.


67

WAYS AND MEANS TO IMPROVE THE EXISTING

PERFORMANCE APPRAISAL

12. Do you think that performance appraisal system help for the future growth?

Yes No

12. a) If yes, in what way does it helps,

Get Increments.

Motivates for Further Growth.

Improve the Quality of Work. All the above


13. After the appraisal program is any training program conducted.

Yes No

13.a) If yes, how many times you have attended the training program

Once in a year Twice in a year

T Thrice in a year More than thrice in a year.

68

13. b) In what ways does the training programme help you?

Helps to increase the productivity.

Helps to improve the quality. Helps to improve the health and safety.

Helps to solve the problem.

Helps to reduce the stress. All the above.


14. Have you improved yourself after getting information from the performance appraisal system?

Yes No

15. Can you suggest some parameters, which have to be included in the performance appraisal?

Dependability.

Inter Personal Skill.

All the above.


16. Do you think that the system is transparent?

Yes Partly Not at all.

69

16.a) If yes, is there is any communication regarding the negative remark given by the appraiser.

Yes No

17. Have you tried to change yourself after the negative remarks quoted in the performance appraisal system?

Yes May be Not at all.

18. Have you been given any chance for further clarification about the negative remarks, after you have been appraised?

Yes I don’t know. Not at all.

18. a) If yes, do you got any benefits.

Yes No

18.b) If no, would you like to have such a chance.

Yes No

19. Can you suggest some methods and tools to measure the parameters in the performance appraisal system?

70

REFERENCES

1. Personnel Management Dr. C.B. Mamoria

Himalaya Publishing House

Mumbai

2. Research Methodology C.R.Kothari

New Age International (P) Limited

New Delhi.

3. Managing Hospitality Human Resource Robert H.Woods.

Web Sites:

WWW. HVS International journal.com

WWW.Google.com

A Study on the Effectiveness of Existing Performance Appraisal System in Cag Pride, Coimbatore

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