Study of Performance Appraisal of Employees In

7/27/2019 Study of Performance Appraisal of Employees In

1/57

COMPANY

PROFILE -

1


2/57

2


3/57

PERFORMANCE

APPRAISAL

3


4/57

PERFORMANCE APPRAISAL

Once the employee has been selected, trained and motivated, he is then appraised for

his performance. Performance appraisal is the step where the management finds out

how effective it has been at hiring and placing employees. If any problems are

identified, steps are taken to communicate with the employee and to remedy them.

Organizations are run and steered by people. It is through people that goals are set and

objectives are realized. The performance of an organization is thus dependent upon

the sum total of the performance of its members. The performance of an employee is

his resultant behaviour on task that can be observed and evaluated. It refers to the

contribution made by an individual in the accomplishment of organizationalobjectives. Performance can be measured by some combination of quantity, quality,

time and cost. People do not learn unless they are given feedback on the results of

their actions. For learning to take place, feedback must be provided regularly and it

should register both successes and failures, and should follow soon after the relevant

actions. Performance appraisal system provides management an opportunity to recall

as well as feedback to people as to how they are doing, so that they can correct their

mistakes and acquire new skills.

"Performance appraisal refers to all those procedures that are used to evaluate the

personality, the performance and the potential of its group members. Evaluation is

different from judgment-the former being concerned with performance, the latter with

person. While evaluation deals with the achievement of goals, judgment has an

undercurrent of personal attack and is likely to evoke resistance."

"Performance appraisal is a process of evaluating an employee's performance of a job

in terms of its requirements".

According to FLIPPO, "performance appraisal is the systematic, periodic and an

impartial rating of an employee's excellence in matters pertaining to his present job

and his potential for a better job"

It is the process of obtaining, analyzing, recording information about the relativeworth of an employee.

4


5/57

Performance appraisal has been used basically for three purposes- remedial,

maintenance, and development. A performance appraisal needs to cover all these

three purposes with the same focus. If any purpose predominates, the system will

become out of balance.

So, the performance appraisal is a key element in the performance management

process. When used effectively, the performance appraisal can provide accurate

feedback on past performance, significantly that enhances employee productivity and

satisfaction, and offers feedback to employees on how to improve. For that reason, the

performance appraisal is one of the most important responsibilities of supervisors or

managers.

CHARACTERISTICS OF PERFORMANCE APPRAISAL

1. Performance appraisal is a process consisting of a series of steps.

2. It is the systematic examination of an employee's strengths and weaknesses in terms

of the job.

3. Performance appraisal is a scientific or objective study. Formal procedures are used in

this study. The same approach is adopted for all jobholders so that the results are

comparable.

4. It is an ongoing or continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of performance appraisal is to secure information necessary for

making objective and correct decision on employees.

OBJECTIVES OF PERFORMANCE APPRAISAL

1. To provide feedback to employees so that they come to know where they stand and

can improve their job performance

2. To provide a valid database for personnel decisions concerning placements, pay,

promotion, transfer, punishment, etc.

3. To diagnose the strengths and weaknesses of individuals so as to identify further

training needs.

4. To provide coaching, counseling, career planning, and motivation to subordinates.

5


6/57

5. To develop positive superior-subordinates relations and thereby reduce grievances.

6. To facilitate research in personnel management.

7. To test the effectiveness of recruitment, selection, placement and induction

programmes.

PROCESS OF PERFORMANCE APPRAISAL

The performance appraisal process follows a set pattern and it consists of the

following steps:

1) Establishing performance standards: the appraisal process starts with the setting up

of criteria to be used for appraising the performance of employees. The criterion is

specified with the help of job analysis, which reveals the contents of a job. This

criteria should be clear, objective and in writing. It should be discussed with the

supervisors to ensure that all relevant factors have been included. Personal

characteristics of an employee can also be included which contribute to the employee

performance. In addition, who is to do appraisal and how frequently appraisal is to be

done should also be decided.

2) Communicating the standards: the performance standards specified in the first step

are communicated and explained to the employees so that they come to know what isexpected of them. The standards should be conveyed to the evaluators. The reactions

of employees to the standards should be obtained. If necessary, the standards may be

revised or modified in the light of feedback obtained from the employees and the

evaluators.

3) Measuring performance: once the performance standards are specified and accepted,

the next stage is the measurement of actual performance. This requires choosing the

right technique of measurement, identifying the internal and external factors

influencing performance and collecting information on results achieved. Personal

observations, written reports and face-to-face contacts are the means of collecting data

on performance. The performance of different employees should be so measured that

it is comparable. What is measured is more important than how it is measured.

4) Comparing the actual with the standards: actual performance is compared with the

pre determined performance standards. Such comparison will reveal the deviations,

which may be positive, or negative. Positive deviations occur when the actual

6


7/57

performance exceeds the standards. On the other hand, excess of standard

performance over the actual performance represents negative deviation.

THE PERFORMANCE APPRAISAL PROCESS

5) Discussing the appraisal: the results of the appraisal are communicated to and

discussed with the employees. Along with the deviations the reasons behind them are

also analyzed and discussed. Such discussions will enable an employee to know his

weaknesses and strengths. Therefore, he will be motivated to improve himself. The

impression the subordinate received about his performance has an impact on his

subsequent performance. The impact May positive or negative depending how the

appraisal feedback is presented and discussed with the employee.

6) Taking corrective action: Through mutual discussion with employees, the steps

required to improve performance are identified and initiated. Training, coaching,

counseling, etc. are examples of corrective actions that help to improve performance.

BENEFITS OF PERFORMANCE APPRAISAL

Performance appraisal is a formal exercise carried out for all executives and workers

or staff with respect to their contributions made towards the growth of the

organization. The aim is to measure the overall performance of an employee over a

period of time, usually one year, by his immediate supervisor so as to provide a

feedback to the employees and aid the management. Performance appraisal does not

7


8/57

merely measure the performance of the people but has many other benefits. The

benefits of a successful appraisal system can be summed up as follows:

(1) For the appraisee

Better understanding of his role in the organization- what is expected and what needs

to be done to meet those expectations.

Clear understanding of his strengths and weaknesses so as to develop himself into a

better performer in future.

Increased motivation, job satisfaction, and self-esteem

Opportunity to discuss work problems and how they can be overcome

Opportunity to discuss aspirations and any guidance, support or training needed tofulfill these aspirations.

Improved working relationships with the superiors

(2) For the management

Identification of performers and non-performers and their development towards better

performance

Opportunity to prepare employees for assuming higher responsibilities.

Opportunity to improve communication between employees and management

Identification of training and development needs

Generation of ideas for improvements

Better identification of potential and formulation of career plans

(3) For the organization

Improved performance throughout the organization

Creation of a culture of continuous improvement and success

Conveyance of message that people are valued

Above given benefits will be realized only if performance appraisal is considered as a

process of management. Performance appraisal is a process for establishing sound

understanding about what is to be achieved, and an approach to manage and develop

8


9/57

people in a way, which will increase the probability of achieving the goal-be it short

term or long term.

360-DEGREE APPRAISAL SYSTEM

This is defined as the systematic collection and feedback of performance data on an

individual or group, derived from a number of stakeholders in their performance. It is

done in a systematic way via questionnaires or interviews. This formalizes people's

judgment coming from natural interactions they have with each other. There is both a

collection and a feedback process. Data are gathered and feedback to individual

participant in a clear way designed to promote understanding, acceptance and

ultimately changed behavior.

METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS MODERN METHODS

Straight ranking method Assessment centre

Man-to-man comparison Appraisal by results (MBO)

Grading Human asset accounting

Graphic rating scale Behaviorally anchored rating

Forced choice description scales (BARS)

Forced description

Check-list

Free form essay

Critical incident

Group appraisal

Field review

TRADITIONAL METHODS

Straight ranking method: it is the most oldest and simplest method of performance

appraisal, by which the man and his performance are considered as an entity by the

rater. No attempt is made to fractionalize the rate or his performance: the "whole

man" is compared with the " whole man"; that is, the ranking of a man in a work

9


10/57

group is done against that of another. It is a simplest method of separating the most

efficient from least efficient; and relatively easy to develop and use.

Paired comparison technique: by this technique, each employee's trait is compared

with all the other persons in pairs one at a time. With this technique, judgment iseasier and simpler than with ordinary ranking method. The number of times each

individual is compared with another is tallied on a piece of paper. These numbers

yield the rank order of the entire group.

Man-to-man comparison method: In this method, certain selected factors are

selected for the purpose of analysis and a scale is designed by the rater for each factor.

A scale of man is also created for each selected factor. The each man to be rated is

compared with the man in scale, and certain scores for each factor are awarded to

him. Personnel are compared to the key man in respect of one factor at time. This

method is used in job evaluation, and is known as the factor comparison method.

Grading method: rater considers certain features and marks them according to scale.

Certain categories of standards are established and carefully defined. The selected

features may be analytical ability, co-operativeness, dependability, self-expression,

job knowledge, judgment, leadership, and organizing ability, etc. They may e: A-

outstanding, B-very good, C- good or average, D- fair, E-poor. The actual

performance of an employee is compared with these grade definitions, and he is

allotted the grade which best describes his performance.

Graphic or linear rating scale: in this method, a printed form, one for each person to

be rated. According to JUCIUS, these factors are: employee characteristics and

employee contribution. In employee characteristics are included such qualities as

initiative, leadership, co-operativeness, dependability, industry, attitude, enthusiasm,

loyalty, creative ability, decisiveness, analytical ability, emotional ability, co-

ordination. In employee contribution are included the quantity and quality of work,

the responsibility assumed, specific goals achieved, regularity of attendance,

leadership offered, attitude towards superiors and associates, versatility, etc. These

traits are then evaluated on a continuous scale. The rating scale method is easy to

understand and easy to use and permits statistical tabulation of scores. A ready

comparison of scores among the employee is possible. These scores indicate the

worth of every individual.

10


11/57

Forced choice description method: this method attempts to correct a rater's tendency

to give consistently high or consistently low ratings to all employees. The use of this

method calls for objective reporting and minimum subjective judgment. Under this

method, the rating elements are several sets of phrases or. adjectives relating to jobproficiency or personal qualifications. The rater is asked to indicate which of the four

phrases is most and least descriptive of the employee.

Forced distribution method: this method was evolved by JOSEPH TIFFIN after

statistical work. This method is used to eliminate or minimize rater's bias, so that all

personnel may not be placed at the higher end or at the lower end of the scale. It

requires the rater to appraise an employee according to a pre-determined distribution

scale. Under this method, it is promotability and performance. For this purpose, a

five-point performance scale is used without any descriptive statement. Employees

are placed between the two extremes of good and bad job performance.

Checklist: under this method, the rater does not evaluate employee performance; he

supplies reports about it and the final rating is done by the personnel department. A

series of questions are presented concerning an employee to his behaviour. The rater,

then, checks to indicate if the answer to a question about an employee is positive or

negative. The value of each question may be weighed equally or certain questions

may be weighed more heavily than others.

Free essay method: under this method, a supervisor makes a free form, open-ended

appraisal of an employee in his own words and puts down his impressions about the

employee. The description is always as factual as possible. No attempt is made to

evaluate an employee in a quantitative manner. This is a very helpful method and

provides a good deal of information, if the supervisor is asked. For instance to give

two or three examples of each judgement he makes.

Critical incident method: the essence of this method is that it attempts to measure

worker's performance in terms of certain 'events' and 'episodes' that occur in the

performance of rate's job. Theses events are known as critical incidents. The

supervisor keeps a record of the events that can easily be recalled and used in the

course of a periodical or formal appraisal. Feedback is provided about the incidents

during performance review session.

Group appraisal method: under this method, employee is rated by an appraisal

group, consisting of their supervisor and three or four other supervisors who have

11


12/57

some knowledge of their performance. The supervisor explains to the group the nature

of his subordinates' duties. The group then discusses the standards of performance for

that job, the actual performance of the jobholder, and the causes of their particular

level of performance, and offers suggestion for future improvement, if any.

Field review method: under this method, a trainer employee from the personnel

department interviews line supervisors to evaluate their respective subordinates. The

appraiser is fully equipped with definite test questions, usually memorized in advance,

which he puts to the supervisor. The supervisor is required to give his opinion about

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

weaknesses, good points, outstanding ability, promotability, and possible plan of

actions in cases requiring further consideration.

MODERN METHODS

Assessment centre: The assessment center was initially applied to military situations

in 1930s. The purpose of this method was to test candidates in a social situation, using

a number of assessors and a variety of procedures. The most important feature of the

assessment center is job-related simulations. These simulations involve characteristics

that managers feel are important to the job success. These simulations involve

characteristics that managers feel are important to job success. The evaluators observe

and evaluate participants as they perform activities commonly found in these higher-

level jobs. Under this method, many evaluators join together to judge employee

performance in several situations with the use of a variety of criteria. Assessments are

made to determine employee potential for the purposes of promotion.

Appraisal by results: this method has been evolved by PETER DRUCKER. MBO is

potentially a powerful philosophy of managing and an effective way foroperationalising the evaluation process. It seeks to minimize external controls and

maximize internal motivation through joint goal setting between manager and the

subordinate and increasing the subordinate's own control of his work. It strongly

reinforces the importance of allowing the subordinate to participate actively in the

decisions that affect him directly.

Management by objectives can be described as, "a process whereby the superior and

subordinate managers of an organization jointly identify its common goals, define

each individual's major area of responsibility in terms of results expected of him and

12


13/57

use these measures as guides for operating the unit and assessing the contributions of

each of its members.

Human asset accounting method: the human asset accounting method refers to

activity devoted to attaching money estimates to the value of a firm's internal humanorganization and its external customer goodwill. If able, well-trained personnel leave

a firm, the human organization is worthless; if they join it, human assets are

increased. If distrust and conflict prevail, the human enterprise is devalued. If tern

work and high morale prevail, the human organization is a very valuable asset. Two

types of variables- key casual variables and intervening variables and their

measurements must be made over several years to provide the needed data for the

computation of the human asset accounting.

Behaviorally anchored rating scales (BARS): This is a new appraisal technique,

which has recently been developed. The procedure for BARS is usually five stepped:

a) Generate critical incidents

b) Develop performance dimensions

c) Re-allocate incidents

d) Scale of incidents

e) Develop final instrument

ESSENTIALS OF AN EFFECTIVE PERFORMANCE APPRAISAL SYSTEM

To be effective, a performance appraisal system should satisfy the following

requirements:

Mutual trust: an atmosphere of mutual trust and confidence should be created in the

organization before introducing the appraisal system. Such an atmosphere is

necessary for frank discussion of appraisal. It also helps to obtain the faith ofemployees in the appraisal system.

Clear objectives: the objectives and uses of performance appraisal should be made

clear and specific. The objectives should be relevant, timely and open. The appraisal

system should be fair so that it is beneficial to both the individual employee and the

organization. The system should be adequately and appropriately linked with other

sub systems of human resource management.

Standardization: well-defined performance factors and criteria should be developed.These factors as well as appraisal forms, procedures and techniques should be

13


14/57

standardized. It will help to ensure uniformity and comparison of ratings. Employees

should be made fully aware of performance standards and should be involved in

setting standards.

Job relatedness: evaluators should focus attention on job-related behaviour and

performance of employees. In order to focus attention on behaviour under the

employee's control, raters must become familiar with the observed behaviour. It is

also necessary to prepare a checklist so as to obtain and review job performance

related information. Ratings should be tied up with actual performance of units under

the rater's control.

Training: evaluators should be given proper training in philosophy and techniques of

appraisal. They should be provided with the knowledge and skills in documenting

appraisals, conducting post appraisal interviews, rating errors, etc.

14


15/57

OBJECTIVES OF

THE STUDY

15


16/57

OBJECTIVES OF THE STUDY

1. To review employee performance and potential

2. To determine the rewards that employees will get for their past work.

3. To know how training needs are identified

4. To know how employees develop themselves by knowing about their strengths and

weaknesses.

16


17/57

RESEARCH

METHODOLOGY

17


18/57

RESEARCH METHODOLOGY

The current chapter deals with the research methodology adopted in the present study

indicates the selection of sample respondents, collection of data, choice of statistical

tools for analysis of data, in addition to pointing out limitations of the study.

Methodology adopted:

The research is aimed at studying the analysis of Performance appraisal at Saluja

Textile Mills Milk Company. The city covered under the research was Ludhiana.

Research design: The design for this study was descriptive. Since the study was

conducted to identify how performance appraisal process is conducted.

ASSUMPTIONS OF THE STUDY

a. It is assumed that the attitude of employees of the Company towards performance

appraisal is positive.

b. It is assumed that respondents should behave rationally.

c. It is assumed that all information provided by the respondents is factual i.e. real and

correct to their knowledge.

SAMPLING PLAN

Sampling is an effective step in collection of primary data that influences the quality

and correctness of the result. The scope of the present study was limited to one city

i.e. Ludhiana city.

SAMPLE SIZEThe sample size was so selected to give the true picture of the problem. 50 middle

level staff of Company was randomly selected. The lot Sample size for the Company

is 100.

Number of employees in Saluja Textile Mills Milk Company = 100

Total lot size = 100

18


19/57

Sampling techniques: Convenience sampling was used to conduct this study. Under

this technique sample of respondents were chosen according to the convenience of the

respondents.

SOURCES OF PRIMARY DATA AND SECONDARY DATA

In this study, sample survey was conducted; both primary as well as secondary data

were used. The primary data was collected by structured questionnaires. Brief

information was collected regarding different attributes to be considered and

questionnaire contained both close ended and ranking questions. The secondary data

was obtained from magazines, journals, Internet and from various books.

DATA ANALYSIS & INTERPRETATION

After a complete study of questions asked from respondents, calculating the frequency

of response, tabulated data and percentage was worked out wherever necessary. The

conclusions were drawn on the basis of frequency of response/percentage.

LIMITATIONS OF THE STUDY

Due to time constraint, only one Company are selected for the study.

Convenient sampling technique is used to select the data. Due to which chances of

biasness are there.

Error during calculation and tabulation may arise.

Due to personal biasness of the respondent involved in the study, the results thus

obtained may not be very much accurate.

19


20/57

DATA ANALYSIS

AND

INTERPRETATION

20


21/57

DATA ANALYSIS AND INTERPRETATION

TABLE 1: - PEFORMANCE EVALUATION

Respondents PercentageYes 55 55%

No 40 40%

Cant Say 5 5%

0

10

20

30

40

50

60

Yes No Can't Say

Respondents(%)

Interpretation

As per the above given chart, 55% of the employees in Saluja Textile Mills are aware

about the evaluation of performance in their respective companies. 40% of the

employees in Saluja Textile Mills don't know whether performance is evaluated. 5%

employees cant about performance evaluation.

21


22/57

TABLE 1.1 FREQUENCY OF EVALUATION OF PERFORMANCE

Respondents Percentage

Monthly 60 60%

Annually 30 30%Quarterly 10 10%

0

10

20

30

40

50

60

70

Monthly Annually Quarterly

Respondents(%)

Interpretation

As per the above given chart, maximum number of the employees in Saluja Textile

Mills say that their performance is evaluated on monthly basis 10% of the employees

in Saluja Textile Mills say that their performance is evaluated on quarterly basis.

22


23/57

TABLE 2 - PERFORMANCE APPRAISAL IS

Respondent

s

Percentage

Transport 30 30%

Annually shown 30 30%

True indicator of an employees performance 26 26%

Helpful in Job assigning 14% 14%

0

5

10

15

20

25

30

35

Transperent Annually shown True indicator of

an employee's

performance

Helpful in job

assigning

Respondents(%)

Interpretation

As per the chart given above; 30% of the employees in Saluja Textile Mills say that

their performance is "annually shown" and 26% of the employees in Saluja Textile

Mills say that performance is the "true indicator of employee's performance".

23


24/57

TABLE 3: - APPLICATION OF METHODS


Critical Methods 32 32%

Simple Ranking Method 39 39%Man to Man Comparison 25 25%

Check List 4 4%

0

5

10

15

20

25

30

35

40

45

Critical Methods Simple Ranking

Method

Man -to-Man

Comparison

Check List

Respondents(%)

Interpretation

As per the above given chart, most of the employees in Saluja Textile Mills say that

simple ranking methods are followed.

TABLE 4:- EMPHASIS OF PERFORMANCE APPRAISAL

24


25/57


Innovativeness 55 55%

Cost Reduction Method 20 20%

Problem solving ability 20 20%

Ability to handle diverse situations 5 5%

0

10

20

30

40

50

60

Innovativesness Cost reduction

methdos

Problem solving Ability to handle

diversity

Respondents(%)

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills say that

performances appraisal is done on the basis of innovativeness. Very less number of

the employees in Saluja Textile Mills says that performance is evaluated on the basis

of ability to handle diverse situations.

TABLE 5:- TENDENCY OF SUPERVISORS


Rate all the employees low 40 40%

Rate half the employees low and half the

employees high

30 30%

25


26/57

Rate all employees high 25 25%

Rate few employees high 5 5%

0

5

10

15

20

25

30

35

40

45

Rate all the

employees low

Ralf half the

employees low and

half the employees

high

Rate all employees

high

Rate few employees

high

Respondents(%)

Interpretation


tendency of supervisors is to rate all the employees low and 25% of the employees in

Saluja Textile Mills say that tendency of supervisors is to rate all employees high.

TABLE 6:- PERFORMANCE MEASURED BY CONSIDERING ONE

CHARACTERISTICS


Strong agree 20 20%

Agree 30 30%

Neither agree nor disagree 8 8%

Disagree 32 32%

Strongly Disagree 10 10%

26


27/57

0

5

10

15

20

25

30

35

Strongly Agree Agree Neither agree nor

disagree

Disagree Strongly Disagree

Interpretation

As per the chart given above, 32% of the employees in Saluja Textile Mills

"Disagree" that their performance is evaluated on the basis of single characteristic.

27


28/57

TABLE7: - PERFORMANCE REVIEWS SHOULD BE BASED UPON


Opinions of managers 20 20%

Employees self appraisal 50 50%Perception of other employee 10 10%

Actual events and observations 20 20%

0

10

20

30

40

50

60

Opinions of managers Employee's self

apprisal

Perception of other

employee

Actual events and

observations

Respondents(%)

Interpretation


performance reviews are based upon the employee's self appraisal. 20% of the

employees in Saluja Textile Mills say that performance reviews are based upon the

opinion of the managers.

Table 8:- TOP-MOST FACTOR THAT MOTIVATES EMPLOYEE

PERFORMANCE

28


29/57


Benefits 30 30%

Compensation 45 45%

Work environment 15 15%

Clear Objectives 10 10%

0

5

10

15

20

25

30

35

40

45

50

Benefits Components Work Environment Clear Objectives

Respondents(%)

Interpretation

As per the above given chart, Most of the employees in Saluja Textile Mills say that

they consider compensation" as the top most factor that motivate employee

performance.

TABLE 9: - RANKING OF BENEFITS

TABLE 9.1:- IMPROVES PERFORMANCE

Respondents PercentageStrongly Agree 16 16%

29


30/57

Agree 14 14%


Disagree 35 35%


0

5

10

15

20

25

30

35

40

Strongly Agree Agree Neither agree

nor disagree

Disagree Strongly

Disagree

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills Disagree

that performance appraisal helps in improvement of performance.

TABLE 9.2:- IDENTITY TRAINING NEEDS


Strongly Agree 50 50%

Agree 10 10%

Neither Agree nor Disagree 15 15%

Disagree 18 18%

30


31/57


0

10

20

30

40

50

60


nor disagree

Disagree Strongly

Disagree

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills Strongly

agree that performance appraisal helps in Identifying training needs.

TABLE 9.3:- HELPS TO WORK FOR HIGHER GOALS



Agree 22 22%


Disagree 6 6%


31


32/57

0

5

10

15

20

25

30

35


nor disagree

Disagree Strongly

Disagree

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills Neither

agree nor disagree that performance appraisal helps the employees to work for higher

level goals.

TABLE 9.4:- CALCULATION OF REWARDS


Strongly Agree 6 6%

Agree 20 20%


Disagree 60 60%


32


33/57

0

10

20

30

40

50

60

70


nor disagree

Disagree Strongly

Disagree

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills

disagree that performance appraisal helps calculating the rewards.

TABLE 9.5:- DETERMINATION OF REWARDS



Agree 45 45%


Disagree 10 10%


33


34/57

0

5

10

15

20

25

30

35

40

45

50

Strongly Agree Agree Neither agree nor

disagree

Disagree Strongly Disagree

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills agree

that performance appraisal helps in the determination the rewards and 20% of the

employees in Saluja Textile Mills neither agree nor disagree that performance

appraisal helps in the determination of rewards.

TABLE 10:- RANKING OF REASONS FOR MANIPULATING EMPLOYEE

BEHAVIOR

TABLE10.1:- TO BE IN GOOD BOOKS OF EMPLOYER


Satisfied 20 20%

Uncertain 60 60%

Dissatisfied 20 20%

34


35/57

0

10

20

30

40

50

60

70

Satisfied Uncertian Dissatisfied

Interpretation


uncertain with the reason of manipulate employee beahviour is to be in good books

of employees.

TABLE10.2:- FEAR FROM CRITICISM


Satisfied 35 35%

Uncertain 24 24%

Dissatisfied 41 41%

35


36/57

0

5

10

15

20

25

30

35

40

45


Interpretation


dissatisfied with the reason of manipulate employee beahviour that is the fear from

criticism.

TABLE10.3:- FOR GETTING PROMOTIONS


Satisfied 35 35%

Uncertain 46 46%

Dissatisfied 19 19%

36


37/57

0

5

10

15

20

25

30

35

40

45

50


Interpretation


uncertain with the reason of manipulate employee beahviour to get promotion.

TABLE11:- CAUSES LEAD TO POOR PERFORMANCE


Lack of training provided by employer 30 30%

Personal problem of an employee 20 20%

Inadequate skills of an employee 40 40%

All (a), (b) and (c) 10 10%

None of these 0 0%

37


38/57

0

5

10

15

20

25

30

35

40

45

Lack of training Personal

problems

Inadequate skills All (a), (b) and (c) None of these

Interpretation

As per the chart given above, 40% of the employees in Saluja Textile Mills feel that

cause that lead to poor performance is inadequate skills of an employee.

TABLE12:- REGULAR FEEDBACK OF WORK ALLOTTED


Yes 45 45%

No 35 35%Always 20 20%

38


39/57

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills feel that

they get regular feedback of the work allotted to them.

TABLE13:- TYPE OF FEEDBACK CONSIDERED EFFECTIVE


Descriptive 8 8%

Suggestive 40 40%

Continuous 42 42%

Well timed 10 10%

39

0

5

10

15

20

25

30

35

40

45

50

Yes No Always


40/57

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills consider

continuous feedback as effective and 40% of the employees in Saluja Textile Mills

believe that suggestive feedback is effective.

TABLE14:- FEEDBACK HELPS IN KNOWING STRENGTHS AND

WEEKNESS



Agree 35 35%


Disagree 20 20%


40

0

5

10

15

20

25

30

35

40

45

Descriptive Suggestive Continuous Well - timed


41/57

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills agree

that feedback helps in knowing about strength and weakness of an employee.

TABLE15:- BIASNESS IN EVALUATION OF PERFORMANCE



Agree 15 15%


Disagree 10 10%


41

0

5

10

15

20

25

30

35

40

Strongly agree Agree nether agree nor

disagree

disagree Strongly disagree


42/57

Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills strongly

agree that there is any biasness in evaluating the performance of the employees.

TABLE16:- UNSATISFACTORY RATED EMPLOYEE


Transferred 20 20%

Separated 40 40%

Given proper training 25 25%

Demoted 10 10%

Should not be taken care of 5 5%

42

0

5

10

15

20

25

30

35

40

45

50

Strongly agree Agree nether agree nor

disagree

disagree Strongly disagree


43/57

Interpretation

As per the chart given above, 40% of the employees in Saluja Textile Mills feel that

an unsatisfactory employee should be separated and 25% of the employee feel that an

unsatisfactory employees should be given proper training.

TABLE17:- HELPFULNESS OF PERFORMANCE APPRAISAL SYSTEM


Yes 65 65%

No 35 35%

Cant Say 0 0%

43

0

5

10

15

20

25

30

35

40

45

Transferred Seperated Given proper

training

Demeoted Should not be

taken care of


44/57

Interpretation

As per the chart given above, maximum numbers of the employees in Saluja TextileMillsfeel that performance appraisal system is very helpful and 35% of the employees

in Saluja Textile Millsfeel that performance appraisal is not helpful.

TABLE18:- SPENDING OF TIME IN IDENTIFYING KPAs AND GAINING ROLECLARITY



Agree 22 22%


Disagree 18 18%

44

0

10

20

30

40

50

60

70

Yes No Can't Say


45/57


Interpretation

As per the chart given above, most of the employees in Saluja Textile Mills neither

agree nor disagree that spending of time in identifying key performance areas and

gaining role clarity.

45

0

5

10

15

20

25

30

35


nor disagree

Disagree Strongle

disagree


46/57

FINDINGS,

SUGGESTIONS

&

CONCLUSION

46


47/57

FINDINGS

After the interpretation of the data and information obtained from the employees, it is

true that performance appraisal process is considered very important. The various

findings of the study are as follows:

1. Maximum number of employees in Company agree that performance is evaluated. 5%

of the employees in Saluja Textile Mills don't know about the evaluation of the

performance.

2. 60% of the employees in Saluja Textile Mills say that performance is evaluated on

monthly basis.

3. Almost all the employees in the Company say that results of performance appraisal

are annually shown. 30% of the employees in Saluja Textile Millssay thatperformance appraisal is transparent.

4. In Saluja Textile Mills; most of the employees say that simple ranking method is

applicable to evaluate the performance.

5. Most of the employees in the Company say that tendency of the supervisors is always

to rate all employees "low" but very less number of employees in the Company say

that tendency of the supervisors is to rate all employees "high".

6. Most of the employees in Saluja Textile Mills"disagree" that performance is measured

by considering only one characteristic.

7. In the Company, most of the employees say that performance reviews should be based

upon employee self-appraisal.

8. In Saluja Textile Mills, most of the employees consider "compensation" as top most

factor that motivate employee performance.

9. Most of the employees in the Company "disagree" that performance appraisal

improves performance and most of the employees in the Company " strongly agree"

that performance appraisal helps in identifying training needs

10. Most of the employees in Saluja Textile Mills "neither agree nor disagree" that

performance appraisal helps the employees to work for higher goals.

11. Most of the employees in the Company "dis-satisfied" with the reason of manipulated

employee behaviour- fear from criticisms.

12. Most of the employees in the Company say that cause that can lead to poor

performance is inadequate skills of an employee.

47


48/57

13. Most of the employees in the Company agree that they get regular feedback of the

work allotted to them.

14. Most of the employees in the Company say that continuous" type of feedback is

effective.

15. Most of the employees in Saluja Textile Mills strongly agree" that there is always

biasness in evaluation of performance.

48


49/57

SUGGESTIONS

Though performance appraisal plays a very important role for both the supervisors

and the subordinates still certain recommendations are necessary which are as

follows: -

1. The supervisors should try to analyze strengths and weaknesses of an employee and

advise him on correcting the weaknesses.

2. Results of the appraisal, whether negative or positive should be immediately

communicated to the employees so that they may try to improve their performance.

3. Tendency of the supervisors must be to rate the employees by considering their all

qualities thoroughly so that he is capable of meeting the challenges about the ratings

of his subordinates.4. Supervisors must not consider single characteristic for the whole appraisal of

performance of an employee. The results of the performance rather than personality

traits should be given due weight age.

5. Proper training must be provided to the employees so they may get the knowledge

about the work they have to perform.

6. Supervisors should not be partial while evaluating the performance. So, it must be the

true indicator of employee performance.

7. A performance appraisal must be in a proper format describing each and every single

aspect of an employee so as to provide full satisfaction to the employees. If by

chance, dis-satisfaction occurs to an employee, then proper training must be provided

to him for better performance so as make him satisfied.

8. Superiors must hold a meeting with each and every employee so as to discuss

employee's performance and then superiors must give an opportunity to the

employees to comment if they feel that appraisal is inaccurate.

9. Performance appraisals must be transparent indicating who, what and when with

thorough details because this will be provides immense support the decision.

10. Supervisors must set specific goals to accomplish for employees, they must be

measurable and attainable because too many goals may cause confusion and may lead

to causes.

49


50/57

CONCLUSION

At the end we can conclude that performance appraisal system plays a very important

role for both supervisors and employees. People are considered as the most important

asset for an organization and their good performance of the work allotted to them can

lead the organization to achieve maximum benefits and if poorly done can lead to

maximum losses. So, performance appraisal system helps the employees to know

about their strengths and weaknesses and proper training is provided to correct those

weaknesses. Performance appraisal describes each and every single aspect of an

employee performance so as to reach at desired results.

50


51/57

BIBLIOGRAPHY

51


52/57

BIBLIOGRAPHY

Udai Pareek, t. Venkateswara Rao; Designing and managing human resource systems;

Second edition: Oxford and IBH Publishing Co. Pvt. Ltd.

Bhaskar Chatterjee; Executive guide to human resource management; Excel Books.

N.K. Singh; Human resource management; Excel Books.

S.B. Mamoria and S.V. Gankar; Personnel management; Publishing House.

Biswajeet Pattanayak; Human resource management; Prentice- Hall of India pvt. Ltd.

S.K. Bhatia and Nirmal Singh; Principles and techniques of personnel management/

Human resource management; Deep & Deep publications pvt. Ltd.

Daniel D Elash; managing peak performance; HRM Review, sepetember2003;

Gunmala suri and Nikhil Vohra; HRM Review, september2003 Andrew Dutta and

Manjeesh k Singh, Appraisal tools for today's performance management; HRM

Review, September 2003

52


53/57

ANNEXURE

53


54/57

QUESTIONNAIRE

(PERFORMANCE APPRAISAL)

Name:

Age:

Gender:

Designation:

Number of years working in an organization:

QUES1: Do you know that your performance is evaluated or not?

a) Yes

b) No

If yes, then how frequently it is evaluated?a) Monthly -

b) Annually

c) Quarterly

QUES2: Do you think that performance appraisal in your Company is:

a) Transparent

b) Annually shown

c) A true indicator of an employee's performance

d) Helpful in job assigning

QUES3: Which methods are applicable in your organization?

a) Critical incidents

b) Simple ranking method

c) Man-to-man comparison

d) Check-list

QUES4: In your opinion, performance is evaluated on the basis of:

a) Innovativeness

b) Cost-reduction measures

c) Problem-solving ability

d) Ability to handle diverse situations

54


55/57

QUES5: In performance appraisals, there is a tendency of the supervisors to:

a) Rate all the employees low

b) Rate half the employees low and half the employees high

c) Rate all employees high

d) Rate few employees high

QUES6: Do you agree that performance is sometimes and in some cases measured

by only one of the characteristics of an employee?

a) Strongly agree

b) Agree

c) Neither agree nor disagree

d) Disagree

e) Strongly disagree

QUES7: Performance reviews should be based upon:

a) Opinions of managers

b) Employee' s self appraisal

c) Perception of other employees

d) Actual events and observations

QUES8: Which of the following is the most commonly found at the top of the list of

factors that motivate employee performance:

a) Benefits

b) Compensation

c) Work environment

d) Clear objectives

QUES9: Rank the benefits (1 to 5 according to your preference) you get From

performance appraisal system:

a) Improves performance

b) Identify training needs

c) Helps to work for higher level jobs

55


56/57

d) Calculation of rewards

e) Determination of gaps

QUES10: Rank the reasons for manipulated employee behaviour at the time of

performance appraisal:

a) To be in good books of managers b) Fear from criticisms

b) For getting promotions

QUES11: What are the causes that can lead to poor work performance?

a) Lack of training provided by employer

b) Personal problems of an employee

c) Inadequate skills of an employee

d) Both (a), (b) and (c)

e) None of these

QUES 12: Do you get regular feedback with respect to the performance of the work

allotted?

a) Yes

b) No

c) Always

QUES 13: What type of feedback is considered effective (according to you?

a) Descriptive

b) Suggestive

c) Continuous

d) Well-timed

QUES 14: Do you agree that performance appraisal feedback helps in? Knowing

About strengths and weaknesses of an employee?

a) Strongly agree

b) Agree


d) Disagree

56


57/57


QUES 15: Is there any biasness in evaluation of performance done by your

supervisors?

a) Strongly agree

b) Agree


d) Disagree


QUES16: An unsatisfactory rated employee should be:

a) Transferred

b) Separated

c) Given proper training

d) Demoted

e) Should not be taken care of

QUES17: Do you feel that performance appraisal system is helpful?

a) Yes

b) No

QUES18: Do you agree that adequate time is spent in identifying key Performance

areas and gaining role clarity in your Company?

a) Strongly agree

b) Agree


d) Disagree


Study of Performance Appraisal of Employees In

Documents

Transcript of Study of Performance Appraisal of Employees In