Bheem Project Work Performance_Appraisal_Allied Nippon

8/2/2019 Bheem Project Work Performance_Appraisal_Allied Nippon

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Summer Training Project ReportOn

A Study on Performance Appraisal in Allied Nippon LimitedSubmitted for the partial fulfillment of the Award

Of

Master of Business AdministrationDegree

(Session: 2010-2012)

SUBMITTED BYAJAY PANWAR

Roll No. 1003270002

UNDER THE GUIDANCE OFInternal Guide: Ms. Akanksha Rastogi

Department of ManagementABES ENGINEERING COLLEGE,

GHAZIABAD

AFFILIATED TOMAHAMYA TECHANICAL UNIVERSITY, NOIDA


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Summer Training Project ReportOn

A Study on Performance Appraisal in Allied Nippon LimitedSubmitted for the partial fulfillment of the Award

Of

Master of Business AdministrationDegree

(Session: 2010-2012)

SUBMITTED BYAJAY PANWAR

Roll No. 1003270002

UNDER THE GUIDANCE OFInternal Guide: Ms. Akanksha Rastogi

Department of ManagementABES ENGINEERING COLLEGE,

GHAZIABAD

AFFILIATED TOMAHAMYA TECHANICAL UNIVERSITY, NOIDA.


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DECLARATION

I hereby declare that the work which is being presented in this report entitled, A STUDY

ON PERFORMANCE APPRAISAL IN ALLIED NIPPON LIMITED, is an authentic

record of my own work carried out under the supervision of Ms. AKANKSHA RASTOGI.

The matter embodied in this report has not been submitted by me for the award for any other

degree.

Dated: Ajay Panwar

MBA-III Semester

This is to certify that the above statements made by the candidate are correct to the best of

my knowledge.

Prof. Rakesh Passi Ms. Akanksha Rastogi

(Head of Department) (Name of the Supervisor)

Sr. Asstt. Professor

Date: MBA

Date:


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Acknowledgement

This project is the result of the help of the various people who rendered their support and

suggestions from time to time. I take this opportunity to thank all of them with a deep sense of

gratitude and reverence.

Firstly, I wish to express my sincere thanks to Mr. Raj Kumar Singh (Manager-HR & IR),

Allied Nippon Limited, Sahibabad, Ghaziabad, for his caring and guiding support and for giving

a very patient hearing whenever I needed. He directly made a significant contribution to emerge

to this project report.

My sincere thank to Prof. Rakesh Passi (HOD, Management Deptt.) & Ms. Akanksha Rastogi,

for their valuable support regarding this project work.

I would like to thank my family and friends who directly or indirectly helped me in finishing the

project successfully.

AJAY PANWAR

DATE:

PLACE:


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Contents

Chapter-I Introduction Need of the Study Scope of the Study Objective of the Study

Chapter-II Research Methodology Limitation

Chapter-III Descriptive work on sub-topic of the study

Chapter-IV Data Analysis & Interpretation

Chapter-V Conclusion & Suggestion


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Chapter-VI Bibliography

Chapter-VII Appendices


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INTRODUCTION

EXECUTIVE SUMMARY

COMPANY ALLIED NIPPON LTD.

PRODUCT Manufacturing Brakes Shoes.

PROJECT TITLE: Performance Appraisal in Allied Nippon Ltd.

MISSION OF THE PROJECT:

The Mission of this Project is to make the detailed study of the industry, in terms of its existing

market-size, future market potential, & the important market segments. It also comprises of the

fact, to study from the various Performance Appraisal programs, adopted by the company & to

seek out the players, about the most popular types of products in demand.

The studying of the Staff workers & their preference parameters comes in it, with that to study the

possibility to change the performance appraisal methods, as per the needs of the company, too.

Apart from this all, the mission also sets up the tone to explore the current market scenario, the

major players & the products, being offered by them.


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COMPANY PROFILE

Allied Nippon Ltd (ANL), an ISO/TS 16949:2002 company, that manufactures and markets

friction products including Disc Brake Pads, Brake Linings, Brake Shoes, Clutch Facings, and

Brake Hydraulics for Cars, Railways, Commercial Vehicles (CV), Off The Road Vehicles (OTR

)and various other automotive applications. Allied Nippon Ltd.(ANL) has Joint Venture

Collaboration with Japan Brake Industrial Company Limited (JBI), Tokyo, Japan.

ABOUT OUR PARTNERS

JAPAN BRAKE INDUSTRIAL CO. LTD. (JBI)

JBI, a Hitachi group company, is a pioneer in the development of Friction Material Technology.

It is a major supplier to the worlds leading automobile manufacturers including Honda, Suzuki,

Mazda, General Motors and Hyundai. As JBIs Joint Venture partner, ANL continuously

receives up to date technical knowledge, and research & development expertise.


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NABCO LTD

To widen its automotive product range, ANL has signed a Technical Collaboration agreement

with NABCO Ltd. to manufacture Railway Brake Blocks. NABCO has been consistently

involved in the development of Automotive Brake Systems and Railway Car Brake System in

Japan.

International Operations

With an exhaustive distributor network, ANL has offices, warehousing and customer support

centers across the globe. ANLs International Operations are equipped to handle problems and

technical queries of customers, build better customer contact and provide superior services.

International Locations :

- ANL Europe Ltd

Bristol (U.K.)

- Allied Comline Ltd

Middlesex (U.K.)

- Nippon Line Ltd

Moscow (Russia)

- Engineering Office

Bristol (U.K.)


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ALLIED NIPPON

MANUFACTURING :

A12, Site IV, Industrial Area,

Sahibabad201010

Distt. Ghaziabad (U.P.)

INDIA

Tel No.: +91 11 55351409

+91 120 2896686 - 95

Fax No: +91 120 2896685

Email: [email protected]

Website: http://www.alliednippon.com/

REGISTERED OFFICE:

(INDIA)

ALLIED NIPPON LIMITED

1006, Akashdeep Building

26/A, Barakhamba Road

New Delhi110 001.

INDIA

Tel No: +91 11 2375357576

+91 11 26428043

Fax No: +91 11 23753575



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(U.K.)

ALLIED COMLINE LIMITED

Unit30, Northfield Industrial Estate

Beresford Avenue, Wembley

Middlesex HAO INW, England

Tel No. : (44) 020 8902 8989

Fax No: (44) 020 8902 9898

Email: mailto:%[email protected]

Website: http://www.comline.uk.com

(U.K.)

ANL EUROPE LIMITED

Unit 16 Londonderry Farm

Key sham Road, Wills bridge

Bristol BS 30 6EL, England

Tel No: (44) 0117 932 1050

Fax No: (44) 0117 932 1059


Website: http://www.anl-europe.com/


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(RUSSIA)

NIPPON LINE LIMITED

307,8, 2nd Roschinsky Proezd,

Moscow,

Russia - 115419

Tel No: +7 (095) 956 6670

Fax No: +7 (095) 956 6670

Email: mailto:[email protected]

Website: http://www.allied-nippon.com/


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PRODUCT PROFILE

Disc Brake Pads

Using JBIs extensive research, proven technology, process methods and original equipment

formulation, ANL Disc Brake Pads can be classified into 3 categories:

- Asbestos Free (Semi Metallic / Metallic)- Asbestos Free (Non Asbestos)

- Asbestos

The range of Allied Nippon Disc Brake Pads covers After Market requirements for Japanese,

European, Korean, American and Australian Vehicles. Additionally, the recently expanded

range of CV & OTR pads have been well accepted in sophisticated markets such as the European,

North America and Australia.


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Brake Linings, Shoes, Discs and Hydraulics

ANLs Braking range also consists of various products such as Brake Linings, Brake Shoes and

Brake Hydraulics.

The products have been supplied extensively to manufacturers of Passenger Cars, Suvs, LCVs,

Tractors, Two Wheelers and Four Wheelers

Commercial Vehicles - Trucks and Off-The-Road Vehicles

Based on increasing product acceptance& recognition ANL has expanded its manufacturing and

business activities to include an exhaustive range of Commercial vehicles (CV) and Off-The-

Road (OTR) vehicles pads such as heavy earth movers. Customers are assured and guaranteed

the safety and reliability of ANL products. The pads are supplied with complete accessories and

wear indicators.


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Railways

ANL is a pioneer in the development and manufacturing of composition Brake Blocks for

Railways. It has acquired the latest and most cost effective technology from NABCO, Japan, a

worldwide leader in its field and superior quality, Safety being a paramount importance, ANL

Brake Blocks are manufactured under the most stringent quality checks

MANUFACTURING

Experienced, skilled and trained personnel monitor the entire production process. All raw

materials are screened through a rigorous selection process and the manufacturing process ensures

zero defect system at every stage.

The computerized and fully automated plant uses JBIs proven technology and process methods.

Furthermore the critical operations Weighing, Mixing, Pre-forming, Heat Moldings and

Finishing are given high priority.


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ANL, equipped with modern tool room facilities, is in a unique position to design, develop and

manufacture tooling for products required by the customer within stipulated time schedules.

RESEARCH & DEVELOPMENT:

Besides using superior Japanese Technology, ANL has built and developed its own centre for in-

house research and development activities, thereby providing it with a solid backing.

To conduct and complete in-house testing for newly developed products (ranging from two-

wheeler to HCVs), ANLs R & D centre, approved by the Gove rnment of India, is equipped with

a Dynamometer and the Krauss testing machine.

ANLs R & D centre also conducts rigorous tests to ensure that the highest standards are

maintained in raw material selection, mix quality and the entire manufacturing process.


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QUALITY ASSURANCE

Allied Nippon friction materials go through systematically defined Quality Assurance testing

procedures and programmes.

ANL products consistently guarantee the combination of safety, strength, high endurance,

dependability and cost effective performance. All critical and special characteristics are

statistically measured and controlled.

Well-equipped in-house Quality Control meets the calibration and inspection requirement as per

international standards.


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OEM USERS

The Original Equipment Users

ANL, a major OEM supplier for renowned Vehicle Manufacturers, caters to the requirement of

various Original Equipment Manufacturers which include Honda, Suzuki, Mitsubishi, Mazda,

Toyota, Fiat, GM, Ford, Daewoo, Hyundai, International Harvester and Massey Ferguson, and

Brake system suppliers including Bendix and Girling.

Allied Nippon Bonded Brake Shoes are also used as Original Equipment on two wheelers

manufactured by Hero Honda, Yamaha, Kawasaki Bajaj, Royal Enfield, Kinetic Motors in

India and Piaggio in Italy.


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NEED OF THE STUDY

The project was an attempt to study the Performance Appraisal in Allied Nippon

Limited, in Sahibabad. The project was started on 11th

of July, after knowing all the

relevant information about the companys HR policies and its dealings with their

employees, in accordance with the prescribed schedule mentioned by management of

Allied Nippon Limited.

Performance Appraisal has been considered as the most significant an indispensable tool for an

organization, for an organization, for the information it provides is highly useful in making

decisions regarding various personnel aspects such as promotion and merit increases.

Performance measures also link information gathering and decision making processes which

provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting,

selection, training and compensation. Accurate information plays a vital role in the organization

as a whole. They help in finding out the weaknesses in the primary areas.

Formal Performance Appraisal plans are designed to meet three needs, one of the

organization and the other two of the individual namely:


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They provide systematic judgments to back up salary increases, transfer, demotions orterminations.

They are the means of telling a subordinate how he is doing and suggestingneeded changes in his behavior, attitudes, skills or job knowledge. They let him know

where he stands with the Boss.

Superior uses them as a base for coaching and counseling the individual. On the basisof merit rating or appraisal procedures, the main objectives of Employee Appraisal

are:

To enable an organization to maintain an inventory of the number and quality of allmanagers and to identify and meet their training needs and aspirations.

To determine increment rewards and to provide reliable index for promotions andtransfers to positions of greater responsibility.

To suggest ways of improving the employee s performance when he is not found to beup to the mark during the review period.

To identify training and development needs and to evaluate effectiveness of trainingand development programmes.

To plan career development, human resource planning based potentials.


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SCOPE OF STUDY

The Project given to study Performance Appraisal in ALLIED NIPPON

LIMITED. This study aims to increase both employees & organizations awareness for the need

to develop a useful performance evaluation & appraisal system, & appreciate its benefits, as well.

Performance should be measured for it to be managed, for no one can manage, what it cant be

measured; & it also follows that no one can improve, what he/she actually cant measure. So, if

we have to create high-performance, we must also to understand that it requires the definition that

you would know, when it present & when it isnt?

This project will also helps to understand the current market scenario and marketing in

stiff competition. Being a student of management I can draw the relevant conclusion from

the market survey and give the appropriate suggestion to the organization. The views of

the Executives were taken through primary, as well as secondary source.


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OBJECTIVES OF STUDY

The main objectives of study is to: -

To study the process through which Performance Appraisal takes place in ALLIEDNIPPON LIMITED.

To know that how much they are aware about the process.

How much they are satisfied with the process?

To effect promotion based on competence and performance.

To assess the training and development needs of employees.

To let the employees know where they stand in so far as their performance isconcerned and to assist them with constructive criticism and guidance for the

purpose of their development.


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To improve Communication, with or with-in the group & that of the colleagues.

Performance appraisal provides a format for dialogue between the superior and the

subordinate, and improves understanding of personal goals and concerns. This can

also have the effect of increasing the trust between the rater and the rates.


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RESEARCH METHODOLOGY

Research Methodology is the selection of an appropriate research method and forming some

guidelines according to which the research is carried out.

It consists of choosing pattern and a method of collection data, sampling, tabulation

and ultimately analysis of data to reach some conclusions, on the basis of which some suggestions

are given.

Data collection: -

a) Primary data: - Primary data is the data collected specially for a specific purpose.

The methods used for its collection are Personal discussion & Questionnaire etc.

The method used in collecting primary data in my research was personal discussion with the

help of a questionnaire. In this I asked a set of predetermined questions in a predefined order,

the answers given by the respondents were used to fill up the questionnaire.


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Questionnaire: -

A questionnaire was prepared which consisted of open-ended questions with multiple

choices. The questionnaire used was structured type of questionnaire. It was prepared taking

into account the factors, which were to be analyzed to know the process of Performance

Appraisal. The questionnaire is attached in appendix at the end of the report.

This method was preferred as it is economical, given more information and the response is

very good.

b)Secondary Data:

Secondary data consists of information that already exists somewhere and was

collected for another purpose, which may not be the same as the purpose of research.

Secondary data used here was the performa of performance appraisal used in ALLIED

NIPPON LIMITED.

The secondary data provide a starting point for research and offer advantage of

low cost and ready availability.


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Research Methodology Adopted:-

Research Design : Descriptive Research.

Research Instrument : Structured Questionnaire. (Open Ended Questions, as well the Close-

ended)

SAMPLE-PLAN:

Sample Method : Non-Probability Sampling (Convenience Sampling)

Sample Size : 100

Sample Unit : Employees, who do not hold a Supervisory position (i.e. Shop-floor Level).


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LIMITATIONS

The following are the major Limitations faced by me, during the course of study of Performance

Appraisal followed, in Allied Nippon Limited: -

1. The Sample consisted of only the employees in the Day-shift. Employees of the Night-Shift were not considered for the purpose of study.

2.

There is no concrete basis to prove the response given, is a true measure of the opinion of

all the employees, as a whole.

3. Convenient Sampling was used as the mode of conducting the research.

4. The Questionnaire contained mostly the multiple-choice questions; therefore, many of therespondents may not have given a proper thought before answering the questions.

5. The response of the respondents may not be accurate, thinking that the Management mightmisuses the data.

6. Sensitive company information cannot be displayed in the Project-Report.

7. Most respondents might be influenced by their peers in answering the questions.

8. Due to the fact that most of the respondents were young, the questions might not havebeen answered with due sincerity.


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DESCRIPTIVE WORK

WHAT IS PERFORMANCE APPRAISAL?

Since organizations exist to achieve goals, the degree of success that individual employees

have in reaching their individual goals is important in determining organizational effectiveness.

The assessment of how successful employees have been at meeting their individual goals,

therefore, becomes a critical part of HRM. This leads us to the topic of performance appraisal.

People differ in their abilities and aptitudes. These differences are natural to a great extent

and cannot be eliminated even by giving the same basic education and training to them. There

will be some differences in the quality and quantity of work done by different employees even on

the same job. Therefore, it is necessary for management to know these differences so that the

employees having better abilities may be rewarded and the wrong placements of employees may

be rectified through transfers. The individual employee may also like to know the level of his

performance in comparison to his fellow employees so that he may improve on it. Thus, there is a

great need to have suitable performance appraisal system to measure the relative merit of each

employee.

The basic purpose of performance appraisal is to facilitate orderly determination of an

employees worth to the organization of which he is a part. However, a fair determination of the

worth of an employee can take place only by appraising numerous factors some of which are

highly subjective, as for instant, attendance, while others are highly subjective, as for instant,


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attitude and personality. The objective factor can be assessed accurately on the basis of records

maintained by the Human resource or personnel Department, but there is no device to measure the

subjective factor precisely. Notwithstanding this, appraisal of these factors must be done to

achieve the full appreciation of every employee merit.

Performance appraisal goes by various names such as performance evaluation, progress rating,

merit rating, merit evaluation, etc. But in this chapter, we shall use the terms performance

appraisal and merit rating to denote the appraisal of the performance of the employees of an

organization.

Performance appraisal means systematic evaluation of the personality and

performance of each employee by his supervisor or some other person trained in the techniques of

merit rating. It employs various rating techniques for comparing individual employees in a work

group, in term of personal qualities or deficiencies and the requirements of their respective jobs.

To quote dale Yoder, performance appraisal includes all formal procedures used to evaluate

personalities and contribution and potential of group members in a working organization. It is a

continuous process to secure information necessary for making correct and objective decisions on

employees. The comparison of performance with job requirements helps in finding out the merit

of individual employees in a week group. Supervisor or an independent appraiser may do rating.

Performance appraisal is a formal program in an organization, which is concerned

with not only the contribution of the members who form part of the organization, but aims at

spotting the potential also. The satisfactory performance is only a part of the system as a whole

and the management needs more information than mere performance ratings of the subordinates.


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There are no two opinions about the necessity of performance appraisal, which can meet

requirements of the management to achieve the organizational goals.

Performance appraisal is the systematic evaluation of the individual with respect to his

performance on the job and his potential for development. Performance appraisal is concerned

with determining the differences among the employees working in the organization. Generally,

the individuals immediate superior in the organization and whose performance is reviewed in

turn by his superior does the evaluation. Thus, everyone in Performance appraisal employs rating

techniques for comparing individual employees in the work group, in terms of personal qualities

or deficiencies and the requirements of their respective jobs.

Purpose of Performance Appraisal:

The objective of performance appraisal fall in two categories:

1) Administrative; and2) Self-improvement

1) Administrative Objectives:-

a) Promotions:

This is the most important administrative use of performance appraisal. It is to

the common interest of both the management and employees to promote employees onto position


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where they can most effectively utilize their abilities. It is mismanagement to promote employees

into position where they cannot perform effectively at the time in question. A properly developed

and administered performance appraisal system can aid in determining whether individuals should

be considered for promotions. The system must rate the ratee for the present job and his

potentialities for the higher job. A person performing the job well does not necessarily mean that he

is fit for promotion

.

b)

Transfers:

In an organization, it may be necessary to consider various types of personnel actions such as

transfer, layoffs, demotions and discharges. In some cases, such actions are called for because of

unsatisfactory performance while in other cases it may be called for due to economic conditions

over which the organization has no control because of changes in production process. Such actions

can be justified if they are based on performance appraisal.

c) Wage and Salary Administration:

In some cases, the wage increases are based on the performance appraisal reports. In some cases,

appraisals and seniority are used in combination.


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d) Training and Development:

An appropriate system of performance appraisal can be helpful in identifying the areas of skills or

knowledge in which certain employees are not up to par, thus pointing out general training

deficiencies which presumably should be corrected by additional training, discussions, or

counseling. Performance appraisal can also help in spotting the talented employees so as to train

and develop them to create an inventory of executive skills. It can also provide the areas where the

employees/executives could be further trained and positioned to meet retirement and expansion

situations.

e) Personnel Research:

Performance appraisal helps in research in the field of personnel management.

Various theories in human relationship are outcome of efforts to find out the cause and effect

relationship between the personnel and their performance.

2) Self-Improvement Objectives:-

The performance appraisals bring out the deficiencies and shortcomings of the

employees. Performance appraisal helps human resource development in a way. A promotion

minded individual could ask for the target programmes of a position he seeks and use the

information given by performance appraisal to prepare him for the job and enhance his candidacy.


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Performance appraisal also helps to spot out a persons ability to see an

organization problem, devise ways of attracting it, translate his ideas into action, incorporate new

information as it arises and carry his plans through the results. It highlights a sort of total

managerial action in contrast to things they customarily factor out as conceptual entities-things such

as planning function, leadership ability, or financial knowledge. The managers selection will often

be improved by this emphasis on the whole managerial job.


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Why Performance Appraisal?

The important reasons or benefits, which justify the existence of a system of

performance appraisal in an enterprise, are as under:

1) A good system of performance appraisal helps the supervisor to evaluate the performanceof his employees systematically and periodically. It also helps to assign that work to individual for

which they are best suited.

2) Performance rating helps in guiding and correction of employees. The supervisor may usethe results of rating for the purpose of constructively guiding employees in the efficient

performance of work.

3) The ability of the staff is recognized and can be adequately rewarded by giving themspecial increments.

4) Performance appraisal can be used as a basis of sound personnel policy in relation totransfers and promotions. If the performance of an employee is better than others, he can be

recommended for promotion, but if a person is not doing well in a job, he may be transferred to

some other job.

5) Ratings can be used to evaluate the effectiveness of training programmes. Merit ratingreveals weaknesses of employees and the training programmes can be modified accordingly.


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6) Performance appraisal provides an incentive to the employees to better their performancein a bid to improve their rating over others.

7) Systematic appraisals will prevent grievances and develop confidence amongst theemployees if they are convinced of the impartial basis of evaluation. The record of merit rating is

available in permanent form to protect the management against subsequent charges of

discrimination, which might be leveled by the trade union leaders.

Performance Appraisal has a beneficial effect on both the persons doing the appraisal and

being appraised. The appraisal brings prominently to the attention of supervisors or executives the

importance of knowing their subordinates as human being. The necessity of performance appraisal

leads the appraiser to a thoughtful analysis of people rated and tends to make him more alive to

opportunities and responsibilities in developing the subordinates.

The objective of appraisal is to derive the point to the appraisee without inviting his

resentment or drawing back into the shell or taking defensive attitude.


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Limitations of Performance Appraisal:

Performance appraisal may not yield the desired results because of the following

deficiencies:

1) If the factor included in the assessment is irrelevant, the result of merit rating will not beaccurate.

2) Different qualities to be rated may not be given proper weightage certain in cases.

3) Some of the factors are highly subjective like initiative and personality of the employees;so the actual rating may not be on scientific lines.

4) Supervisors often do not have critical ability in assessing the staff. Sometimes, they areguided by their personal emotions and likes. So the ratings are likely to be biased.


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Difference between Performance Appraisal and Job Evaluation:

Performance Appraisal Job Evaluation

1 Performance appraisal is concerned with the

differences among the employees in terms of

their performance. It is also termed as merit as it

is concerned with the comparative merit of

individuals.

Job evaluation is the analysis of various jobs

to know the demands, which the normal

performance of particular jobs make on

average employees. It does not take into

account the individual abilities of the job-

holder.

2 It considers the abilities and performance of

individuals.

It considers the requirement of various jobs

in terms of jobs description and job

specifications.

3 The purpose of merit rating is to appraise the

performance of individuals to take decisions like

increase in pay, transfer, promotion, etc. It also

serves as guidelines for the management to

consider the type of training, which should be

imparted to the employees.

The purpose of job evaluation is limited, i.e.

to determine the worth of the job on the basis

of demands made by a particular job on the

average worker. This facilitates fixation of

wages for various jobs.

4

.

Performance appraisal rates the man and not the

job as it is concerned with assessing of the

abilities of the individuals. As a matter of fact, it

measures the worth of different employees to the

organization.

Job evaluation analyses the job to determine

their relative worth and fix their wage levels

that are fair and equitable.


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5

.

Performance appraisal is used as a basis of

personnel policies as regards transfer and

promotion

Job evaluation is used to shape the wage

policy of the organization.


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Methods of Appraisal

There are various methods of merit rating may be classified into:

1) Traditional Methods and2) Modern Methods.

1) Traditional Methods

Traditional methods are very old technique of performance appraisal. They are based on trait-

oriented appraisal. Evaluation of employees is done on the basis of standards of personal traits or

qualities such as attitudes, judgment, versatility, initiative, dependability, leadership, loyalty,

punctuality, knowledge of job, etc.

There are Seven (7) traditional methods of appraisal. They are:

Unstructured appraisal. Employee ranking. Forced distribution. Graphicrating scales. Checklists. Critical incidents. Field review.


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Unstructured Appraisal.

Under this, the appraiser is required to write down his impression about the person being

appraised in an unstructured way. However, in some organizations, comments are required to be

grouped under specific headings such as quality of job performance, reasons for specific job

behaviors, personality traits, and development needs. This system is highly subjective and has its

merit in its simplicity and is still in use especially in the small firms.

Ranking Method:

Ranking is a simple process of placing in a rank according to their job performance. It permits

comparison of all employees in any single rating group regardless of type of work. All workers are

judged on the same factors and they are rated on the overall basis with reference to their job

performance instead of individual assessment of traits. In this way, the best in placed first in the

rank and the poorest occupies the last rank. The difficulty of this system is that the rater is ranked to

consider a whole person. Subjectively of the appraiser may enter into his judgments. Asking the

appraiser to rank employees on certain desirable traits can reduce the subjectiveness in this method.

The other difficulty with this method is that it does not indicate the degree of difference between the

first man and the second man, and so on.

Paired comparison is an improvement over simple ranking. Under this, every employee in a job

family is compared with every other employee to determine which is the better worker. The rater is

provided with a little booklet containing two names on each page. Obviously the number of rank

order would be n(n 1)/2, where n is the total number of persons to be compared. In this way,


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every employee is compared with every other employee in the same job family. The paired

comparison gives a more reliable rating than the order of ranks although this system is more tedious

to construct and use. It cannot be used for periodic employees ratings, as it does not make

evaluation of any improvement in the employees that might have been over a period of time.

Forced Distribution Method:

Some appraisers suffer from a constant error, i.e., they either rate all workers as excellent, average

or poor. They fail to evaluate the poor, average or excellent employees clearly. The forced

distribution system is devised to force the appraiser to fit the employees being appraised into

predetermined ranges of scales. It has an advantage over the paired comparison system in that two

or more employees can be given equal ratings. This system is based on the presumption that

employees can be divided into five points scale of outstanding, above average, average below

average and poor. In this system, the appraiser is asked to distribute the employees into these

categories in such a way that about 10% of the men are in group outstanding, 20% above

average, 40% average, and 10% poor.

This method obviously eliminates the room for subjective judgment on the part of

supervisors. This system is easy to understand and administer. The objective of this technique is to

spread out ratings in the form of a normal distribution, which is open to criticism. Many times, this

group is comparatively smaller. As a matter of fact, forced distribution of rankings is feasible for a

large group.


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Graphic Rating Scales:

Under this method, scales are established for a number of specific factors and qualities. Five degree

are established for each factor and general definitions appear at points along the scale. Generally,

the rater is supplied with a printed form, one for each person to be rated. The selection of factors to

be measured on the graphic rating scale is an important point under this system.

There are two types:

1) Characteristics, such as initiative and dependability, and2)

Contributions, such as quantity and quality of work.

Since certain area of job performance cannot be objective measured, it is likely that graphic scales

will continue to use a mixture of both characteristics and contributions.

Graphic scales impose a heavy burden upon the supervisor. He must report and evaluate the

performance of his subordinate on scales involving as many as five degree on perhaps ten different

factors. The main drawback of this system is that the rater may be biased. However, one means of

ensuring that the rater has based his scoring upon substantial evidence is to leave space on the form

after each factor and require him to explain the reason for his rating. In effect, he is asked to give

example of the rates behavior that justifies the assigned rating. A supervisor may tend to rate him

men high to avoid criticism from them.

The graphic rating method is easy to understand and easy to use. It permits the statistical tabulation

of scores in terms of measures of central tendency, skew ness and dispersion. It permits a ready

comparison of scores among employees. The scores presumably reveal the merit or value of every

individual. However, this method has certain serious drawbacks. There is an implication that a high

score of one factor can compensate for a low score on another. If a man scores for attendance,

attitude, cooperativeness, etc. Frequently, the rating tends to cluster on the high side under this


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system. A supervisor may tend to rate his men high so that they may receive high share of pay

raises in some cases.

Check Lists:

It also consists of two techniques:

a) Weighted check list, andb) Forcedchoice.

a) Weighted Check List:

Under this method, various statements are prepared in such a manner that they describe various

types and levels of behavior for a particular job. Each statement is attached with a scale value. At

the time of rating the employees, the supervisor just collects and checks all the statements. After the

weights and values are attached to the individual traits, the rating up to this level is gathered on the

rating sheet. Then the weights are averaged and employee is evaluated. The weighted checkthe

persons thoroughly acquainted with job and perfect at preparing and weighing statements should

prepare list. When this process is over, rating is placed on separate cards. Then raters who actually

observed the accomplishment of the work sort these cards. They rank the employee from poor to

excellent. Weights are then assigned to the statements in accordance with the way they are ranked

by the raters.

Under this method, the supervisor is not allowed to accumulate vague impressions as a basis for

rating. Because of this, it compels the supervisor to think in terms of very specific kinds of

behavior. This method involves a lengthy procedure of evaluating employees. It requires certain


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qualifications to be met on the part of the supervisor regarding the job he is assigned to look after.

Moreover, this method is a relatively costlier affair. It puts more strain on the financial resources of

the organization particularly in terms of personnel development time. Financial burden is further

increased when diverse jobs are evaluated, as a separate procedure must be established for each job

b) Forced Choice:

This method is used particularly with the objective of avoiding scope for personal prejudices. Under

this method, the rater is forced to choose between descriptive statements of seemingly equal worth

describing the person in question. Statements are chosen of both the sides (favorable as well as

unfavorable). For example, the following two pairs of statement from each pair that is represented

by supervisor.

a) Gives clear instructions to his subordinate.b) Can be dependent upon to complete any job assigned.c) Makes promises that he knows he cannot keep.d) Shows favoritism to some employees.

The rater may feel that neither of the two statements in a pair is applicable, but he must select the

one that is more descriptive. Only one of the statements in each pair is correct in identifying the

better performances and this scoring key must be kept secret from raters. In this way, bias removed

from the appraisal process. The main advantage of establishing this system of performance

appraisal is that it has greater objectivity than most other methods.


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Forcedchoice method is also not free from drawbacks. They are as follows:

Firstly, it is very expensive to install this system.

Secondly, this procedure involved is very lengthy and hence more timeconsuming.

Thirdly, it is difficult for a supervisor to discuss rating switch subordinates because the personnel

department scores the items.


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Critical Incident Method:

A critical incident means a significant act by an employee exceeding or failing any of the

requirements of his job. It represents an exceptional behavior of an employee at work, as for

instance, Resisted the implementation of change; Became upset over work; Refused to help a fellow

worker; Suggested an improvement in the work method Tried to get a fellow worker to accept the

management decision; Welcome new ideas.

This method requires every supervisor to record all such significant incidents in each

employees behavior, which indicate effective or successful action and those, which indicate

ineffective or poor behavior. These are recorded in a specially designed notebook, which contains

categories or characteristics under which various behaviors can be recorded. Examples of such type

of job requirements of worker a are judgment, learning ability, productivity, dependability, accuracy

of work, responsibility and initiative. Daily recording of these items seems to be essential because,

otherwise, the supervisor may forget the incidents with his subordinates.

Under the critical incident method, the supervisor is supposed to refrain from passing

overall judgments and concentrate upon discussing facts as he sees them. Theoretically, this should

provide a sound and an objective basis for appraisal of performance of an employee. The critical

incident method is not a rating method, as it requires the supervisor to pay close attention to what an

employee is doing.

This method suffers from the defect that outstanding incident happens so frequently that

individuals appraisal may not vary markedly between any two time periods. It has been observed


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that most of the time the employees have neither positive nor negative incidents. If the critical event

does not happens it will be difficult to rate an employee. Moreover, it may be difficult for a

supervisor to decide what is the critical or exceptional incident? Her against the human bias may

appear in recording the critical incident. To rectify this defect, Gerald Whitlock designed a

specimen checklist, which consists of a number of behavior incidents, which are considered to be an

example of uncommonly, ineffective, or effective job behavior. The usual procedure in constructing

the specimen checklist is to collect behavior incidents from certain experts in this area. The number

of such performance behaviors ranges from 80 to 150 incidents, equally divided between effective

and ineffective specimens.

Field Review Method:

Under this method, an expert from the personnel department interviews the supervisors. The expert

questions the supervisor to obtain all the pertinent information on each employee and takes notes

his notebook. Thus, there is no rating form with factors or degrees, but overall ratings are obtained.

The workers are usually classified into three categories as outstanding, satisfactory and

unsatisfactory. The interviewer questions the supervisor about the requirements of each job in his

unit and about the performance of each man in his job. He probes to find out only how a man is

doing but also why he does that way and what can be done to improve or develop him. The

supervisor is required to give his opinion about the progress of his subordinates, the level of

performance of each subordinates, his weaknesses, good points, outstanding ability, promotion

ability, and the possible plans of action in cases requiring further consideration. The questions are

asked and answered verbally.


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The success of field review method depends upon the competence of the interviewer. If he

knows his job, he can contribute significantly to accurate appraisal. Field review method relieves

the supervisors of the tedious writing work of filling in appraisal forms. It also ensures a greater

likelihood that the supervisors will give adequate attention to the appraisals because the personnel

department largely controls the process. Superficial judgment can be eliminated if the appraiser

probes deeply.

Criticism of Traditional Methods:

The general criticism of traditional performance appraisal systems is that they are two subjective in

nature because all of them are on personal judgment of the rater. The personal judgment is always

subjected to personal bias or prejudice as well as pressure from certain other areas. The appraiser

may not be able to judge the competence of the employees because of lack of training.

Because of the judgment role of the supervisors under the traditional system, performance ratings

are frequently subject to a number of errors and weaknesses, which are discussed below:

Halo Error: This type of error occurs when the rater allows one aspect of a manscharacter or performance to influence his entire evaluation. It is the tendencies of many raters to let

the rating they rating to one characteristic excessively influence their rating on all subsequent

characteristics. Many supervisors tend to give an employee approximately the same rating on all

factors. The error can be recognized quite easily on factors scales. The rating scale technique of

performance appraisal is particularly susceptible to the halo supervisor judge all of his subordinates

on a single factor or trait before going to the next. In this manner, he can consider all of the men

relative to a standard or to each other on each trait.


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Central Tendency: This error occurs when the rater is in doubt about the subordinates orhas inadequate information about them or is giving less attention and effort to the rating process.

Because of these reasons, generally the raters are reluctant to rate people at the outer ends of the

scale. The rater knows that he has to appraise his subordinates at periodic intervals but if he is

unfamiliar with some of the subordinates or does not have sufficient time to devote to the rating

process, he may play it safe by neither condemning nor praising. So he may rate them average. It

is possible for this type of rating i.e., all average to be a true rating, but its probability is less than its

frequency.

Leniency or Strictness: Some supervisors have a tendency to be easy raters and othershave a tendency to be harsh in their ratings. Lenient or easy raters assign consistently high values or

scores to their subordinates and strict or harsh raters give consistently low ratings. Both the trends

can arise from varying standards of performance among supervisors and form different

interpretations of what they observe in employee performance.


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Recent Behavior Bias: Often some raters evaluate persons on the basis pf theirperformance in recent few weeks; average behavior is not checked. Some employees being aware of

this tendency show better results when they feel that they are being observed and the report of their

performance is to be compiled soon.

Miscellaneous Biases: In many cases, the rater may give higher ratings because hethinks that it would look bad for him if employees in the other department received higher pay

increases than his pay. Supervisors will tend to rate their subordinates near the middle of the

spectrum if their bosses put pressure on them to correct the workers average rates or to get rid of

the subordinates. Some supervisors show bias against members of the opposite sex or of another

caste, religion or nationality. They also give higher ratings to senior employees because they are too

ready to admit that they have not improved under their leadership. Many a times, a rater is

influenced by organizational positions and may give higher ratings to those holdings the higher

positions.


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Many people have attacked the reliability and validity of traditional systems on different grounds,

but the fundamental criticism has been founded upon the judgment role of the supervisor and the

antagonistic response of the subordinates. In a study of appraisal systems in General Electric Co.

USA, the investigator found that traditional approach of performance appraisal resulted in the

following responses:

a) Criticism arises from the very nature of the system.b) Criticism has a negative effect upon achievement of goals.c)

Criticism increases antagonism and defensiveness, which lead to interior performance.

d) Praise has little effect, one way or other.

In this study, ninety-two appraisal interviews based on traditional measurements were analyzed.

Those subordinates receiving above average criticism showed less improvement in ensuring ten to

twelve weeks than those receiving less criticism. When the alternative behavioral approach was

introduced by one half of the supervisors, differences in subordinates response pattern remained

unchanged. For the appraiser of behavioral supervisor, all reported more favorable attitudes on such

items as amount of help received, respectability of their supervisors, ability of the supervisors to

plan, the extent to which their abilities were utilized, acceptance of organization goals and value of

the appraisal interviews. That is why it was observed:

1) Coaching should be a daytoday, not a once - a year activity.2) Mutual goal setting not criticism improves performance.3) Participation by the employee in the goals setting procedure helps

favorable results.


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2) Modern methods:-

There are two important methods of performance appraisal, which are used

by the modern concerns. The first is management by objectives, which represents result-oriented

appraisal. The second is behaviorally anchored rating scale, which is based on the behaviour of the

subordinates.

Management by objectives:

It was Peter Drucker who proposed goal setting approach to performance

appraisal, which he called management by objectives and self-control. Douglas Mc. Gregor

further strengthened this approach. He was concerned with the fact that most traditional appraisal

systems involved rating of traits and personal qualities that he felt were highly unreliable. Besides,

the use of such trait ratings produced two main difficulties: -

a) The manager was uncomfortable about using them and resisted making appraisal.b) It had a damaging effect on the motivation and development of the subordinates.

Goal setting approach or Management By Objectives (MBO) is the same as behavioral

approach to subordinate appraisal, actually called Work planning and review in case ofGeneral

Electric Co., USA. Under this approach, an employee is not appraised by his recognizable traits,

but by his performance with respect to the agreed goals or objectives. Thus, the essential feature of

this approach is mutual establishment of job goals. The application of goal setting approach to

performance appraisal involves the following steps:

1) The subordinate discusses his job descriptions with his superior and they agree on thecontents of his job and the key results areas.

2) The subordinate prepares a list of reasonable objectives for the coming period of six totwelve months.


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3) He sits with his superior to discuss the set targets and plans, and a final set is worked out.4) Checkpoints are established for the evaluation of progress, and the ways of measuringprogress are selected.

5) The superior and the subordinate meet at the end of the period to discuss the result of thesubordinates efforts to meet the targets mutually established.

The goal setting approach is based on clear and time bound objectives from the

corporate level to the operative level. This approach can be applied with great success if the

performance appraisal program consists of the following elements:

i) Good job descriptions are available to help setting of goals for different positions.ii) Superiors have trust in the subordinates to establish reasonable goals; and

iii) There is emphasis on problem solving rather than criticism of the performance of thesubordinates.

The goal setting approach has done away with the judgmental role of the

superiors in the appraisal of their subordinates. It has led to greater satisfaction, greater agreement,

greater comfort and less tension and hostility between the workers and the management. This

approach is considerably superior to the traditional approach of performance appraisal. It

emphasizes training and development of individuals. It is problem-solving approach rather than tell

and sell approach. This approach has also got a built in device of self appraisal by the

subordinates because they know their goals and the standards by which their performance will be

measured.


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The Goal setting approach suffers from the following limitations:

The subordinates can apply this approach only when the goal setting is possible. It is

doubtful if such a procedure can be applied for the blue color workers.

This approach is not easy to administer. It involves considerable time, thought and the

superior and the subordinate. If the span of supervision is quite large, it will not be possible for the

superior to have discussion with each and every subordinates for setting up mutually agreed goals.

This approach mainly emphasizes counseling, training and development. It is argued

that critical evaluation and modification to improve are incompatible. But, in practice, it is not

possible to forge the critical aspect of performance appraisal.

This approach is appropriate for the appraisal of executives and supervisory personnel

who can understand it in a better way. Operative workers cannot understand this approach and

moreover, a vast majority of them do not want to take initiative in setting their own goals.


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Behaviorally Anchored Rating Scales

Behaviorally Anchored Rating Scales (BARS) are designed to identify the

critical areas of performance for a job, and to describe the more effective and less effective job

behavior for getting results. Performance is evaluated by asking the rater to record specific

observable job behaviors of an employee and then to compare these observations with a

behaviorally anchored rating scale. As a result, the supervisor is in a position to compare the

employees actual behavior with the behavior that has been previously determined to be more or

less effective.

Proponents of BARS claim many advantages of this approach. They argue that

such a system differentiates among behavior, performance, and results, and consequently is able to

provide a basis for setting developmental goals for the employee. Because it is job- -specific and

identifies observable measurable behavior, it is a more reliable and valid method for performance

appraisal.

Empirical studies of Behaviorally Anchored Rating Scales (BARS) have

provided a fertile ground for study by both theorists and practitioners. The BARS experience has

helped to clarify three major controversies of the appraisal process. On was the issue of the rating

content (trait vs. job related). The second controversy involved the multidimensional nature of

performance. The administrative uses of appraisal had encouraged rating systems to produce an

overall measure of performance, which tended to mark difference in performance in the key result

areas (performance dimension) critical to job results. The third controversy involved in the issue

of the most effective way to anchor the rating scales (numerically or behavioral). By anchoring the

scales behaviorally, the BARS approach was expected to produce more valid and reliable results by

reducing measurement errors (leniency, halo effect, central tendency, etc.).


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Designing an Appraisal Programme:-

Determining the Objective of performance Appraisal.

Before any performance appraisal programme is initiated, it is essential to

determine its objectives. The objective of the appraisal programme may be either to appraise the

actual performance of individuals to higher jobs or both. Sometimes, performance appraisal

programmes are associated with specific objectives like training and development, transfer and

promotion, increase in pay, etc.

Establishing Standards of Performance.

For effective rating of employees, it is necessary to establish standard on

performance against which their performance should be compared. However, an approach that is

more preferable is to establish, in writing, definite standards of accomplishment, which the

employee can reasonably be expected to meet. Such a method will take it possible for both

supervisor and his subordinate to reach agreement on just what is expected in terms of performance.

It should be noted that performance standards are relative to the group and the organization. Not

only are the needs of each organization different, but the talents of manpower also vary from

organization to organization. The expectation of management is also higher in some organizations

than in others.


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Who is to do the Appraisal?

Generally, the appraiser is the immediate superior of the man to be appraised.

He is most familiar with the employees work and is in contact with him and so he is considered to

be able to appraise him well. But there are certain limitations of appraisal by one person. That is

why some organizations try to obtain two or more ratings on each employee. But again the

difficulty may arise because the second rater may not have the necessary contact with the individual

who is to be rated. The possibility is the constitution of a rating committee, which may consist of a

number of supervisors and specialists from personnel department and a representative of the

worker. The committee will rate each individual collectively. Some people feel that employee

should be allowed to rate themselves. When this is done, their immediate superiors may offer their

rating in conjunction with ratings.

Whosoever the appraiser may be, the subjectivity invariably steps in. A

well-adjusted person is less subject to projecting himself into other than a poorly adjusted person

and, therefore he is able to judge them better. It is often assumed that qualified psychologists are

more capable than laymen of making unbiased judgments since they receive training in the

dynamics of the personality and also in the correct manner of making the judgment.


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Frequency of Appraisal

The frequency of appraisal differs from organization and with the nature of

duties performed. There are not spot appraisals, monthly, quarterly, and six monthly or yearly

appraisals. But most of the organizations conduct yearly or halfyearly appraisals because more

frequent appraisals besides taking away time of the appraiser or raters, may create a sense of fear

amongst the ratees. Idea frequency is one, which fits into the objectives of the older ones.

Designing of Forms

This is an important step in performance appraisal to design the rating forms to be

utilized in the programme. The forms should be related to job families such as clerical, mechanical,

sales, technical and supervisory. All require a different evaluation form. Performance forms may be

classified as those involving comparative ranking and others involving the comparison of each

employees actual performance with predetermined standards. The first category of forms is

designed to evaluate employee performance for the purpose of making wage adjustments, lay offs,

promotions, etc. and second category of forms is used to improve the performance of workers on

their present jobs.


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Requirements of a Sound Performance Appraisal Program:

A sound system of performance appraisal must fulfill the following essentials:

1) The appraisal plan should be simple to operate and easy to understand. When the appraisalsystem is complicated, employees may not understand it fully and may look at the plan with

suspicion. The plan should not be very time-consuming.

2)

The performance appraisal system should be performance based, uniform and non

variable, fair, just and equitable. It should be ensured that the appraisers are honest, rational and

objective in their approach, judgment and behavioral orientation.

3) The employees should be made aware of the performance in terms of goals, targets,behavior, etc. expected of them. A personal between the appraiser and the employee has to be

developed to achieve mutual understanding of the criteria of evaluation.

4) The appraisal plan should be devised in consultation with the subordinates. This willincrease their commitment to the plan and their understanding of expected performance.

5) The appraisal plan should take into account the appraisal practices prevailing in otherunits in the industry as well as the latest thinking on performance appraisal. It should fit in the

structure and operations of the organization.


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6) The top management must create a climate of reliable appraisal throughout theorganization. Goalorientation, open communications, mutual trust informal relationships, etc. are

the basic elements of such a climate.

7) The appraisal plan should be designed to achieve specific objectives. The objectives of theappraisal programme may be to evaluate current performance on the job and to determine the

potential for higher jobs. In some cases, performance appraisal is linked with specific objectives

like pay raise, training, promotion, transfer, etc. The number of factors to be considered and the data

to be collected should be tailor-made to achieve the objective of the appraisal.

8) The appraisers should be selected and trained properly so that they have no personal biasand possess the necessary capabilities for objective evaluation of employees. In order to ensure

objectivity in appraisal, more persons may rate an individual independently.

9) There should be provision of appeals against appraisals to ensure confidence of theemployees and their associations or unions. The results of appraisal must be discussed with the rates

so that they may get an opportunity to express their feelings on their progress reports.


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CASE STUDY

Unique Funds Ltd. is a reputed finance company having 10 branches in different

parts of the company. Its staff includes 290 operative employees and 70 executives. The company

has a performance-rating plan under which a committee of two executives by means of graphic

scale rates the staff members at the end of each financial year. The qualities considered are:

Responsibilities, Initiative, Dependability, and Leadership Potential, Co-operative attitude and

Community Service. After the performance is evaluated, the ratings are discussed with the

concerned employees by their immediate boss and are used to counsel them and arrange further

training for them. The ratings are also used for granting or withholding of increments and

promoting of meritorious staff.

Recently, two employees working at the Head Office have been denied annual

increments due to comparatively low ratings. They have made a representation to the Chief

Executive of the Company expressing their dissatisfaction with the appraisal system and insisting

that community service is not a part of their job and it should not influence their ratings. The

employees seem to organize a union and demand that annual increments should be granted

automatically.

The Chief Executive feels that performance appraised is a dangerous source of friction and so it

should be discontinued altogether.


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QUESTIONS

1) If you were the Human Resource Manager, how would you defuse the problem?2) How far do you agree with the Chief Executives view that performance appraisal shouldbe discontinued?

3) On what lines would you recommend modifications in the performance appraisal systemof the company?


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QUALITY POLICY

ALLIED NIPPON LIMITED will strive to provide consistently nutritious and quality products

to meet consumers satisfaction by using quality materials and by adopting appropriate processes.

To facilitate the above we will strive to continuously train over employees and to provide them an

open and particular environment.

(CHAIRMAN AND MANAGING DIRECTOR)


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DATA ANALYSIS

By having discussion with senior production officers ofAllied Nippon Limited and filling of the

questionnaire, the data was collected which is analysed as follows: -

1. Type of performance appraisal preferred:

After analyzing the data, the results shows that 85% of the senior production

officers prefer quarterly performance appraisal and 15% prefer half-yearly performance

appraisal.


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100% -

80% -

60% - 85%

40% -

20% -

15%

Quarterly Half-yearly Monthly Annually


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2. Seniorssatisfied by subordinates performance:

After analyzing the data, the results shows that 85% of the senior production officers feel

that their seniors are satisfied with their performance and 15%cant say.

This analysis shows there is lack of appraisal by the immediate seniors.

YES (85%)

CANT SAY (15%)


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3. Satisfied with their own Performance

After analyzing the data, the results shows that 85% of the senior production officers are

satisfied with their own performance and 15% are not satisfied with their own performance.

YES (85%)

NO (15%)


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This shows that 85% of the senior production officers are satisfied with their own performance

and 15% are not satisfied with their own performance.

This implies that satisfaction level has to be increased among senior production Officers.


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4. Performance appraisal improves performance

After analyzing the data, the results shows that100% of the senior production officers feels that

performance appraisal do helps in performing better.

YES

NO

100%


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Through this we come to know that process of performance appraisal is coming out to be

positive and it should be continued.


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5. Information is submitted timely by the senior production officers to their seniors

After analyzing the data, the result shows that 100% of the senior production officers

submit all the information timely to their seniors.

YES

NO

100%


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This shows that all the senior production officers submit all the information timely to the seniors,

comprising of the data & figures, related to the subject-matter assigned to them by the senior

authorities or Officers.


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6. Adequate and fair chance provided to defend against adverse entries in your appraisal

After analyzing the data, the results shows that 67% of the senior production officers feel that

they are provided with a chance to defend them against adverse entries in their appraisal whereas

33% denies it.

YES (67%)

NO (33%)

This shows that there is lack of chances provided to defend against adverse entries in appraisal.


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Reason for bad performance

After analyzing the data, the results shows that 16% of senior production officers

performed bad due to personal reasons, 16% of senior production officers due to official reasons,

16% of senior production officers due to other reasons and no bad performance from the rest of

the 52% of senior production officers.


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100% -

80% -

60% -

40% -

52%

20% -

16% 16% 16%

Personal Official Others No Bad Performance


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This shows that there are some reasons, which are required to be rectified to improve

performance.


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8. Awareness of appraisal system.

After analyzing the data, the results shows that 67% of the senior production officers are fully

aware of the appraisal system and rest 33% are unaware of this system.

YES (67%)

NO (33%)

This shows that awareness about the performance appraisal system is to be

increased.


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FINDINGS

Based on my analysis of data collected during my study in ALLIED NIPPON LIMITED,

SAHIBABAD, I have got the following findings: -

1.) Performance appraisal in ALLIED NIPPON LIMITED, SAHIBABAD, is doneannually.

2.) For appraisal in Allied Nippon Limited, Sahibabad, a SELF-APPRAISAL form isgiven to the staff members and they fill it up. And then after according to their self-

observation and through the appraisal form filled by the staff members rating is

given to the members. Accordingly then incentives and promotions are granted.

3.) In ALLIED NIPPON LIMITED, SAHIBABAD, at the majority senior staffmembers submit all the information timely to their superiors.

4.) In ALLIED NIPPON LIMITED, SAHIBABAD, there is lack of properknowledge among senior production officers about the procedure followed in

Performance Appraisal.

5.) There is lack of fair chances provided to defend yourself against adverse entries inyour appraisal.


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6.) All senior production officers agree that performance appraisal system helps themto perform better.

7.) There is lack of satisfaction level among the senior production level officersregarding to their own work as they have monotony at their work.


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RECOMMENDATIONS

According to research undertaken by me, and the results obtained, following are

the recommendations to improve the procedure of performance appraisal followed in Allied

Nippon Limited: -

1. Staff members should be provided with the training about performance appraisal and theyshould be made very well aware about the thing that this exercise can help them in

developing their performance and attitude which will help them on their own part at

majority and company at minority.

2. Senior-Subordinate meetings should be made very regular so that every can keep his pointin front without any hesitation and that will add to their innovation and creation.

3. The process of performance appraisal should be made goal-oriented.

4. Staff members should be provided with the well-defined targets.


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CONCLUSION

After collecting the information from the senior production officers with the help of

personal discussion, filling the questionnaire and analyzing the data, I have derived the

following conclusion

In ALLIED NIPPON LIMITED performance appraisal is conducted annually. Under

this process, a self-appraisal form has been given and senior production officers have to fill

that form which throws light on their basic achievements during the past accounting year.

After that the immediate boss who has been observing the immediate subordinate

throughout the year rates him according to the self appraisal form filled and personal

observation under following factors-

a) Quality of work.b) Quantity of work.c) Job knowledge.d) Dependability.e) Innovation and creativity.f) Ability to learn.g) Attendance.h) Reactions to criticism.i) Discipline.

j) Customer relations.k) Subordinate development.


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The rating given is confidential and out of the knowledge of their subordinates. Accordingly,

promotions and incentives are granted to the deserving ones.

Rating given to the senior production officers is done confidentially and whatever information is

been filled in the self-appraisal form is not cross-questioned.

The sole objective for taking part in performance appraisal of Senior production officers in Allied

Nippon Limited is to be awarded with promotions and incentives but the basic reason why

performance appraisal is conducted is to develop the performance and attitude.

Senior production officers of Allied Nippon Limited follow the procedure of performance

appraisal given by the senior managers because they have monotony in their work and they have

no time for any innovation or creativity.


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SUGGESTIONS

As we know Performance appraisal is a systematic and objective way of judging the relative

worth or ability of an employee in performing the task. Performance appraisal helps to identify

those who are performing their assigned tasks and those who are not and the reasons for such

performance.

The company should go for the 360degree performance appraisal. Under this method theperson whose performance is to be judged is in between and his peers, supervisor, head

and the manager of the company is around him who rate the performance of the employee

based upon certain predefined criterias.

The system is like:

360-degree Performance Appraisal

Person, whose

performance to rateSupervisors Peers

Head

Manager


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The company should appraise the performance of the workers by giving them someincentives, which motivate them to work to their fullest capacity and to motivate them to

work more and show good and better results.

For the top management of the company it should offer them holiday package, appraiseperformance by recognizing there work in meetings etc. this will help to raise their moral

and they can workbetter. They dont want financial help as they earn enough to maintain

their status. They want their work recognition.

For the lower group the company can increase their wages, give them pension schemes,provide them the medical facilities etc because they want financial help from the company

to insure their proper living.

The should keep changing the raters for the performance appraisal system from time totime so that they dont become bias at anytime for any employee.

The method of the company should be changed periodically so that the employees havemo chance to complain for the method.


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The criteria decided upon which the performance has to be rated should not be fixed itshould be changed from time to time.

The standards of the rating should be very specific, clear and concise.

There should be the feeling of teamwork in the organization.

The system should be cost effective and it should suit the budget of the company.

The performance, which is been measured, should be verifiable and measurable afterwardsalso.


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BIBLIOGRAPHY

1. Chabbra T.N. HUMAN RESOURCES DEVELOPMENT : Dhanpat Rai & Co. Pvt. Ltd.,New Delhi. 1999

2. Rao V.S.P. HUMAN RESOURCES DEVELOPMENT : Excel Books, New Delhi. 2007.3. Robins, D. : HUMAN RESOURCE MANAGEMENT: Prentice Hall, New York.

1998.

(Text and Cases)

4. www.alliednippon.com
http://www.alliednippon.com/http://www.alliednippon.com/


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APPENDICES

STUDY OF PERFORMANCE APPRAISAL SYSTEM

NAME:

Q.1: What type of performance appraisal you prefer?

Annually Quarterly

Monthly Half yearly

Q.2: Are your seniors satisfied with your performance?

Yes No

Q.3: Are you satisfied with your performance?

Yes No

Q.4: If no do you think you can perform better?

Yes No


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Q.5: Does performance Appraisal help you in performing better?

Yes No

Q.6: Do you submit information timely to your superiors?

Yes No

Q.7: Do you get adequate and fair to defend your self against adverse entries in your

appraisal?

Yes No

Q.8: What actually comes as the reason for your bad performance? (if any)

Personal Official Other

Q.9: Are you fully aware of the appraisal system followed in your company?

Yes No


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Q.10: Any suggestion to alter existing Performance Appraisal system of your company?

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