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PROJECT REPORT

ON

EVALUATION OF THEPERFORMANCE APPRAISAL

IN

HARSORIA HEALTH CARE

PVT. LTD.

Project Guide: Submitted By: Name: Mr. Sanjeev Kumar Student Name: Dharmender Kataria

Designation: HR Head Enrollment No.:

.

GLOBAL INSTITUTE OF TACHNOLOGY &

MANAGEMENT, FARUKH NAGAR, GURGAON.

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Performance Appraisal

CERTIFICATE

This is to certify that Mr. Dharmender Kataria, a student of Global

Institute of Technology & Management, Farukh Nagar, Gurgaon has

completed project work on EVALUATION OF THE PERFORMANCE

APPRAISAL under my guidance and supervision.

Certify that this is an original work and has not been copied from any

source.

Signature of Guide -------------------------------------

Name of Project Guide: Sanjeev Kumar

Place :

Date :

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STUDENTS DECLARATION

I, Dharmender Kataria here by declare that the project work titled

Evaluation of the Performance Appraisal System in HHPL is the

original work done by me and submitted to the Global Institute of

Technology & Mnagement, Gurgaon in partial fulfillment of

requirements for the award of MBA in Human Resource Management

(Area of Specialization) is a record of original work done by me under

the supervision of Mr. Sanjeev Kumar (HR Head) of HHPL.

Enroll No :

Date :

Signature of the student

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ACKNOWLEDGEMENT

It gives me immense pleasure to convey my sincere thanks to

college Faculty of Global Institute of Technology &

Management, Gurgaon who approved my project synopsis and

extended full and valuable support and encouragement in

providing me with this superb opportunity to participate and

learn through this highly informative project work.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ...........................................................6

Theoretical Perspective ............................................................... 12

OBJECTIVE OF THE STUDY ...................................................34Research Methodology ................................................................36

PERFORMANCE APPRAISAL SYSTEM

IN HHPL, GURGAON ............................................................... 41

ANALYSIS AND INTERPRETATIONS OF DATA ................45

SWOT ANALYSIS .....................................................................84

SUMMARY AND FINDINGS ...................................................87

RECOMMENDATIONS ............................................................ 91

CONCLUSION .......................................................................... 97Appendices and Annexure: ..........................................................98

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EXECUTIVE SUMMARY

Today HRM is an evolving branch of Management. It looks after

the HR planning, Job Design, Job analysis, Training and

development compensation system, motivation, safety, Industry

Relatives etc.

Organization exists to achieve its goals set by their

stakeholders, in the same time; organization should keep

individual objectives and their development in mind. The

assessment of how successful employees have been at meeting

their individual goals, therefore, becomes a critical part of HRM.

This led organizations to the area of performance appraisal.

AIM

There are three purposes of performance appraisal:

First, it can be used as a basis for reward allocations.

Decisions as to who gets the promotions, salary increases,

and other rewards are determined by the outcome of the

performance evaluation.

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Second, these appraisals can be used for identifying areas

where development efforts are needed to improve the

performance of an individual. Management needs to spot

those individuals who have specific skill or knowledge

deficiencies. The performance appraisal is a major tool for

identifying these deficiencies.

Finally the performance appraisal can be used as a

criterion against which selection planning and developmental

programs are validated. It can be said, for example, that

organization selection process is successful in differentiating

satisfactory performers from under performers.

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THE APPRAISAL PROCESS

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Introduction of the Problem:

The history of performance appraisal in brief and problem

description:

There is, says Dulewicz (1989), "... a basic human tendency to

make judgments about those one is working with, as well

as about oneself." Appraisal, it seems, is both inevitable

and universal. In the absence of a carefully structured

system of appraisal, people will tend to judge the work

performance of others, including subordinates, naturally,

informally and arbitrarily.

The human inclination to judge can create serious motivational,

ethical, and legal problems in the workplace. Without a

structured appraisal system, there is little chance of

ensuring that the judgments made will be lawful, fair,

defensible and accurate.

Performance appraisal systems began as simple methods of

income justification. That is, appraisal was used to decide

whether the salary or wage of an individual employee was

justified.

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The process firmly linked to material outcomes. If an employee's

performance found to be less than expected, a cut in pay

would follow. On the other hand, if their performance found

to be better than the supervisor expected, a pay rise in

order.

Little consideration, if any, was given to the developmental

possibilities of appraisal. It was felt that a cut in pay, or a

rise, should provide the only required momentum for an

employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results

that were intended; but more often than not, it failed.

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MODERN APPRAISAL

Performance appraisal may be defined as a structured formal

interaction between a subordinate and supervisor, that

usually takes the form of a periodic interview (quarter,

semi-annual or annual), in which the work performance of

the subordinate is observed and discussed, with a view to

identifying weaknesses, strengths as well as opportunities

for improvement and skills developments.

In most of the organizations, appraisal results are used directly

or indirectly, to determine reward outcomes. The appraisal

results are used to identify the better performing employees

who should get the majority of available merit, pay increases,

bonuses, and promotions.

By the same token, appraisal results are used to identify the

under performers who may require some form of counseling, or

in extreme cases, demotion, dismissal or decreases in pay.

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Theoretical Perspective

Objectives of Performance Appraisal:

Objective of Performance appraisal is to obtaining, analyzing

and recording information about the relative worth of an

employee. The focus of the performance appraisal is measuring

and improving the actual performance of the employee and also

the future potential of the employee. Its aim is to measure what

an employee does.

The objectives are explained in the following points:

SALARY INCREASE: - Performance appraisal plays an

important role in making decision about salary increment. The

increment in the salary depends on how the employee performs

the job, and there is a continuous assessment of employees

performance formally or informally. In small organizations as

there is direct interaction between the superiors and the

subordinate, performance appraisal can be an informal process,

but in large organizations or in case of expatriate (HCN, PCN,

TCN) where direct interaction hardly exists the performance

appraisal process is formal.

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PROMOTION: - Performance appraisal reveals how an

employee is working in present job and what are their strengths

and weaknesses. In the light of these, it can be decided whether

the individual can be promoted to the next higher position and

what additional training will be necessary for employee.

Similarly, performance appraisal can be used for transfer,

demotion, and discharge of an employee.

TRAINING AND DEVELOPMENT: - Performance appraisal tries

to identify the perfection of an employee on the present job.

This information can be used for formulate Training &

Development program to overcome weakness(s) of the

employee.

PRESSURE ON EMPLOYEES: - Performance appraisal puts

some sort of pressure on employees for the better performance.

If the employees are conscious that they are being appraised in

respect of certain factors and their future growth depends on

these appraisals, they tend to have positive and acceptable

behavior in this respect. Thus appraisal can work automatically

as a control device.

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SATISFACTION THROUGH FEEDBACK: - Performance

appraisal provides feedback to employees about their

performance. An employee can work better if an appropriate

and timely feedback is provided for their current assignment.

Satisfaction level of employees can increase if they know how

their efforts are contributing to achieve the organizational

objectives.

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METHODS OF PERFORMANCE APPRAISAL

There are various methods of performance appraisal. Every

organization may have its own appraisal system. It may be

informal or formal, however in any case performance appraisal

system is of two types:-

a) Appraisal of employees according to traits, attributes, and

general behavior.

b) Appraisal of employee based on results, work, and goals

achieved.

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A. APPRAISAL BASED ON TRAITS

Appraisal based on traits and behavioral pattern shown in job

performance emphasizes various traits which the appraisee

possesses and the behaviors he adopts in performing his job.

The various methods of performance appraisal based in traits

are following:-

I. RANKING METHOD

II. PAIRED COMPARISON METHOD

III. GRADING METHOD

IV. FORCED CHOICE METHOD

V. CHECKLIST METHOD

VI. CRITICAL INCIDENT METHOD

VII. GRAPHICS SCALE METHOD

I. RANKING METHOD: - Ranking is the oldest

and the simplest methods of appraisal in which a

person is ranked against others on the basis of

certain traits and characteristic. But since differences

in ranks do not indicate absolute or equal differences

of ability between individuals, the method has limited

value for performance appraisal.

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II. PAIRED COMPARISON METHOD: - In this

method, each person is compared with other persons

taking only one trait at a time. Usually, only one trait

overall suitability to perform the job is considered.

The rater puts a tick mark against the name of the

person whom he/she consider better of two and final

ranking is determined by the number of times that

person is judged better than others.

III. GRADING METHOD: - In this method certain

categories of performance or abilities are defined in

advance and persons are put in particular category

depending on their traits and characteristics.

Such categories may be definitional like outstanding,

good, average, poor, very poor or may be in term of

letter like A,B,C,D,E etc. with A indicating the best

and E indicating the poor. The actual performance of

the employees is measured against these grades.

This method is generally useful for promotions based

on performance. This method however suffers from

one limitation that the rater may rate most of the

employees at higher grades.

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IV. FORCED CHOICE METHOD: - The forces

choice- rating method contains a series or group of

statements and the rater checks how effectively the

statements describe each individual.

V. CHECKLIST METHOD: - In the checklist

method of the appraisal the rater prepares appraisal

report by answering a series of questions related to

the appraisee. These questions are related to the

behavior of the appraisee concerned. When the

checklist is complete, it is send to the personnel

department for further processing. The personnel

department then calculates the total scores, which

show the appraisal result of the employees. This

method appears to be easy to handle if proper

framework of questions is prepared for different

categories of employees.

VI. CRITICAL INCIDENT METHOD: - In this

method only critical incidents and behavior

associated with these incidents are taken for

evaluation. This method involves three steps :-

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a. A test of noteworthy on the job behavior is

prepared.

b. A group of experts then assigns scale values to

them depending on the degree of desirability for

the job.

c. Finally, a checklist of incidents, which defines

good or bad employees, is prepared. The rater is

given this checklist for rating. The basic idea

behind this rating is to apprise the people who can

do well in critical situations because in normal

situations, most employees work alike.

VII. GRAPHICS SCALE METHOD: - Also known as

linear rating scale is the most commonly used

method of performance appraisal. In this method a

printed appraisal form is used for each appraisee.

The form contains various employees characteristics

and his job performance. Various Characteristics

include initiative, leadership, dependability, co

cooperatives, enthusiasm, creditability, analytical

ability, decisiveness, emotional maturity etc. The

rating is done on the basis of scale that is in19

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continuum. The degree of quality is measured on a

scale, which can vary from three points to several

points. Some organizations use numbers in order to

avoid the tendency of the rater to tick mark the

central point. This method of the employees but is

not free from personal bias.

VIII. FIELD REVIEWS METHOD: - In the field

review method, employees are not appraised by their

direct superiors but by another person. Usually from

personnel department. The rater in this case

appraises the employee on the basis of his records of

output and other quantitative information such

absenteeism, late coming etc.

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B. APPRAISAL BASED ON OBJECTIVES / RESULTS: -

The performance appraisal is also done by comparing the actual

results with the objectives formed by the company. The basic

idea behind this method is that the organizations are concerned

with the achievement of objectives through the contributions of

individual mangers rather than on the basis of traits.

The method of appraisal by objectives is:-MANAGEMENT BY OBJECTIVES (MBO): - This method has

been evolved by PETER DRUCKER. MBO is potentially a

powerful philosophy of managing and an effective way for

operationalizing the evaluation process. It seeks to minimize

external controls and maximize internal motivation through

joint goal setting between managers and subordinate. The

objective is to change behavior & attitude towards getting

the job done. It is a result oriented management system &

philosophy that stresses goal rather than methods. It

provides responsibility & accountability and recognizes that

employees have needs for achievement and self-fulfillment.

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PROCESS OF MBO: - The steps involved in the

process are:-

SETTING GOALS: Top managers formulate the overall

organizational goals and plans, and then works with middle

managers to develop goals for their organizational divisions or

units. In turn, middle managers work with first-line managers to

set goals for their departments or groups. During this process,

managers and employees at all levels, in collaboration with their

supervisors, also set individual goals for performance.

PLANNING ACTION: Managers determine exactly how their

individual and group goals will be accomplished. During action

planning, managers decide on the "who, what, when, where,

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and how" details needed to achieve each objective. Managers

also prepare a schedule for the action plan to ensure that goals

are reached on time, and this schedule is reviewed when

individual performance is being evaluated.

IMPLEMENTING PLANS: Once, managers have made a

commitment to achieve specific goals and have received

approval for their plans, the third step is implementation. To

control their own performance, managers must be allowed to

implement their plans in their own way. This element of self-

control allows managers to channel their expertise for the

benefit of the organization, while allowing them to develop their

professional skills fully as they tackle the challenges of

implementation.

REVIEWING PERFORMANCE: In the last step of the MBO

process, managers periodically review the performance of the

employees they supervise and evaluate how well the plans are

working in achieving group and individual goals.

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PREREQUISITE OF THE PERFORMANCE

MANAGEMENT SYSTEM

Reliability: - The foremost requirement of a sound appraisal

system is reliability. In this contact it refers to consistency of

judgment.

Acceptability: - In practice, acceptability is the most important

requirement of all; for it is true that human resources program

must have the support of those who will use them.

Practicality: - This implies that appraisal instruments are easy

for managers and employees to understand and to use.

WHO SHOULD EVALUATE PERFORMANCE?

The most fundamental requirement for any rater is that he or

she has an adequate exposure/opportunity to observe the rates

job performance over a reasonable period of time. This suggests

several possible raters.

The immediate supervisor: - Generally appraisal is done by

immediate supervisor. He is probably the most well-known with

the individuals performance and in most jobs has had the best

opportunity to observe actual job performance. Further more,

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the immediate supervisor is probably best able to relate the

individuals performing to department and organizations

objectives.

Peers: - In some jobs such as outside sales, expatriate (PCN,

HCN, TCN), law enforcement and teaching, the immediate

supervisor may observe a subordinates actual job performance

rarely (and indirectly thru written reports). Here judgement of

peers play important role. However, there is a danger of

potential bias.

Subordinates: - Appraisal by subordinates can be useful input

to the immediate development. Subordinates know first hand

the extent to which the supervisor actually delegates, how well

he communicates, the type of leadership he has and the extent

to which he or she plans and organizes.

Self appraisal: - On one hand it improves the rates motivation

and moral, on the other it tends to be more lenient, less variable

and biased. The evidence on the accuracy of self assessment is

fairly complex.

In industry it is seen that feed back is taken from various

sources peers, subordinates, superiors etc. Some companies

have gone one step ahead in taking feedback form the25

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customers, stakeholders and integrating it into the performance

management process. Such feedbacks are also known as 360

degree appraisal.

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APPROACHES TO PERFORMANCE MANAGEMENT

The traditional approach:- The one dimensional model.

In this model job expectations are defined in terms of what

results have to be achieved. This model doesnt have a long

term focus and cant be used for employees development and

career path planning.

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The 360o dimensional models

360 degree appraisals are a powerful developmental method

and quite different to traditional manager-subordinate

appraisals (which fulfil different purposes). As such a 360

degree process does not replace the traditional one-to-one

process - it augments it, and can be used as a stand-alone

development method.

360 degree appraisals involve the appraisee receiving feedback

from people (named or anonymous) whose views are

considered helpful and relevant. The feedback is typically

provided on a form showing job

skills/abilities/attitudinal/behavioural criteria and some sort of28

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scoring or value judgement system. The appraisee should also

assess themselves using the same feedback instrument or form.

360 degree respondents can be the appraisee's peers, up-line

managers/execs, subordinate staff, team members, other staff,

customers, and suppliers - anyone who comes into contact with

the appraisee and has opinions/views/reactions of and to the

appraisee. Numerous systems and providers are available - I

wouldn't recommend any in particular because my view about

this process is that you should develop a process and materials

for your own situation, preferably involving the appraisees in

this, which like all participative approaches, often works well.

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BARRIERS IN PERFORMANCE

There are barriers, which work against the effective appraisal

system. Identification of these barriers is essential, so that

suitable measure may be adopted to reduce their impact to a

possible minimum level. These barriers can be grouped in three

categories, they are

a. Personality Conflict Personality conflict between the

employee and the supervisor cause the leader to make an

inaccurate assessment of the employees contribution.

b. Halo or Horn Effect An assumption on the part of the

supervisor that because the employee was good at one

thing, they will be good at another, or vice versa.

c. Tendency Error There are two kinds of tendency errors.

Central tendency is when the supervisor tends to see

everything as average, such as a 3 on a 5-point scale.

Leniency is another tendency error where the supervisor

tends to see the employee only in a positive light.

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d. Similar to Me Effect Occurs when there is non-job

factors in common between the supervisor and the

employee such as social or religious similarities.

e. Contrast Effect Occurs when comparing the skill of the

employee with the skill of another employee which results

in an unfair judgment of the first employee.

f. First Impression Performance appraisal is made

without observation over time. This can be both positive

and negative based on impression that is created.

g. Political Error Factors other than performance affect

the performance appraisal.

h. Opportunity Bias Occurs when an unusual event allows

or causes inaccurate performance appraisal.

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OVERCOMING BARRIERS OF PERFORMANCE

APPRAISAL

Giving effective feedback is one of the most important functions

a leader/manager can perform. Unfortunately, it is also one of

the most neglected. Without accurate feedback it is virtually

impossible for the employee to know if he/she is meeting job

expectations. In the absence of feedback, employees will

makeup their own and it often is not accurate. Incompetent

employees may think they are doing a great job if their

supervisor never says anything about their performance. Even

more commonly, capable employees will have doubts about

their own performance because their supervisor has not given

them any positive feedback.

TRAINED APPRAISERS: - The appraisers should be well

trained so that they may be able to rate the ratees in a more

accurate and developed method rather than employing the old

traditional and less accurate methods. They should also be

trained to avoid errors such as halo-errors, constant rating and

so on.

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POST APPRAISAL: - After appraisal is completed, a post

appraisal interview should be conducted to let the employees or

the ratees know about their evaluation and they can know their

shortcomings and can take measurers to improve them.

REWARDS FOR ACCURATE APPRAISERS: - Some rewards

should be given to the appraisers who have done appraisals

accurately. When the rewards will be given they would turn

positive towards the appraisal system.

MULTIPLE RATERS: - Instead of only one rater or appraiser

completing the appraisals, multiple raters should be involved in

the appraisal system. Due to the presence of a group of raters

ratings can be done more effectively. In the case of only one

rater it would be difficult to avoid distortions whereas in the

presence of a group they can be avoided to a greater extent.

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OBJECTIVE OF THE STUDY

OBJECTIVES OF THE STUDY

The project aims at studying the performance appraisal system

and its effectiveness in the organization. Performance appraisal

is the most significant and essential tool for the management as

it provide useful information for decision making in area of

promotion, compensation reviews and help employee in

Individual development plan.

THE BROAD OBJECTIVES OF THE STUDY INCLUDES:

To know the present system of performance appraisal.

To know the extent of effectiveness of the appraisal

system.

To identify and know the area for improvement in the

appraisal system.

To suggest certain measurers for further improvement in

the current system.

To know the attitude of employees towards the

performance Appraisal system.

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To know the effectiveness of performance appraisal

system being adopted by HHPL Financial.

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Research Methodology

1. Meaning of research: - A research comprises defining

and redefining problems, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating

data; making deductions and reaching conclusions; at last

carefully testing the conclusion to determine whether they fit

the formulating hypothesis.

2. Research Design: - A research design is arrangement of

conditions for collection and analysis of data in a manner that

aims to combine relevance to the research purpose with

economy in procedure.

Step in research design:

A. The study is about the effectiveness of the

Performance

Appraisal system in HHPL Financial.

B. The required data are :

Secondary data

Questionnaire

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Personal interaction with the employees

C.The data was found from various divisions in the

company.

D.The study took 2 months to cover.

E. The sample design would be 10-14 members from each

division concerned.

F. Techniques of data collection ;

Questionnaire (Online)

Personal interviews/tele-conferences

G. The data was analyzed statistically by forming

percentage

weightage and graphs.

H.The report is consist of :

a) Logical analysis of the subject matter

b) Preparation of the final outline

c) Observations - summary and findings

d) Conclusion

e) Final bibliography

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Sample Design: - A sample design is a definite plan for

obtaining a sample from a given population. It refers to the

technique or the procedure the researcher would adopt in

selecting items for the sample.

Sample size: - The total of 10 managers and supervisors at

HHPL Financial, India 10-14 members from different division

were selected.

Different division:

Annuities Data Services

Group Data Services

Individual Data Services

Distributing Computing

Quality Assurance

Mainframe Team

Personnel

Administration

DATA COLLECTION METHOD: -

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a. Questionnaire: - A number of questions typed and

hosted online in a definite order on a form or a set of

forms. Questionnaire consists of few structured and

unstructured questionnaire.

Structured questionnaire are those questionnaire in

which there is definite, concrete and pre-determine

questions.

The form of the question may be either closed (i.e. of

the yes or no type) or open (i.e. inviting free

responses) It may also have fixed alternative questions

in which responses of the informants are limited to the

stated alternatives (i.e. Multiple choice question).

Response to Questionnaire

In all 140 questionnaires were given to employees

falling in the all category. Out of which 120 employees

duly answers the questions. The researcher individually

contacted the employees to get response on the

questionnaire.

Data analysis

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To streamline the response, an online questionnaire

was hosted on my computer and asked employees to

answer the question online.

Limitations

Many employees gave guarded answers to

some crucial questions.

Some of them did not fill the questionnaire due

to lack of time

Response could not be received/collected form

the total sample selected.

Some of the questionnaire could not be

completed due to reasons other than time factor.

b. Personal Interview: - Personal interviews require

the interviewer asking questions. Time slot was booked

after mutual agreement for face to face /telephonic

discussion.

c. Secondary Data: - The data which is published

beforehand, such as company profile, Hand book for

managers, and Policies.

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PERFORMANCE APPRAISAL SYSTEM

IN HHPL, GURGAON

HHPL has a performance appraisal system for their employees.

The main objective of performance appraisal system is to

evaluate the performance, promote their employees and to

arrange for the various training program if they require for

enhancing their skills in their respective areas and in

contribution enhancement.

Employees are evaluated by how well they accomplish a specific

set of objectives that have been determined to be critical in the

successful completion of their job. This approach is frequently

referred to as Management by Objectives. Management by

objectives is a process to converts organizational objectives into

individual objectives. It consists of four steps: goal setting,

action planning, self-control, and periodic reviews. In goal

setting, the organization's overall objectives are used as

guidelines from which division and individual objectives are

identified. In action planning, the means are determined for

achieving the ends established in goal setting. That is, realistic

plans are developed to attain the objectives. Self-control refers

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to the systematic monitoring and measuring of performance.

Finally, with periodic progress reviews, corrective action is

initiated when behavior deviates from the standards established

in the goal-setting phase. HHPL uses very constructive

performance appraisal process while evaluating its employees.

Its evaluation is based on quantitative wise and objective wise.

HHPL set goals to its employee by properly conveying with its

employees, and then evaluating them up to what extent it has

been achieved, and if there is failure in reaching the target,

what are the causes or reasons behind it.

Outcome/criteria of Performance Appraisal

As far as HHPL, India is concerned, there are four outcomes are

possible:

a. Outstanding - If the performance evaluated by the

management turns out to be outstanding/exceed

expectations. If the employee performs in such a way as to

collect 3 consecutive outstanding performances into his/her

credit, he/she gets promoted.

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b. Excellent - If the performance evaluated by the

management turns out to be excellent/met all expectations.

If the employee performs in such a way as to collect 3

consecutive excellent performances into his/her credit,

he/she gets promoted.

c. Good - If the performance evaluated by the management

turns out to be good/ mostly met expectations. The

management sends the employee to the training programme

to improve his/her skill to perform better.

d. Below average - If the performance evaluated by the

management turns out to be below average / not met

expectations. And, if the employee collects 3 below average

to his/her credit, then he/she is dismissed/demoted.

Appraisal Cycle

The time constraints enables the employee to show or project

his/her capabilities in term of performance as per the duration

allowed. In HHPL, India, the formal performance appraisal

system is carried out annually.

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Feedback

The company provides the annual feedback to its employees

and thus, in term brings out the highlights of the self-

assessment programme. This enables the better communication

between the management and employees ad thus, helps in

promoting the business future.

Response

There are mixed responses from the feedback by the

employees. It has helped some of the employees in motivating

themselves while those who felt bad were systematically

communicated and all the confusion and failure part were

discussed with employees.

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ANALYSIS AND INTERPRETATIONS OF DATA

The graphs drawn based on the sample size (Numbers)

and not based on the % of sample size from the table

summery of the questions.

After collecting the data on PERFORMANCE APPRAISAL

SYSTEM data was analyzed and interpreted. The various topics

covered for analysis and interpretation of data are:

PROMOTIONS

A promotion may be defined as an upward advancement of an

employee in an organization, to another job, which commands

better remuneration, better reputation and higher opportunities,

challenges, and responsibility, a better working environment,

hours of work and facilities etc.

The guidelines for division promotion are same for male and

female employees. The experience required for filling a higher

post varied from 2-5 years based on department. Five years of

experience is required for promotion to managerial staff and

two years of experience is required for promotion to junior

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management. The other areas of promotion apart from seniority

are merit and fitness.

As per the guidelines from the personnel department,

employees are to be promoted. However, there is confusion

among the employee as these guidelines are not being

explained time to time, many of them are not aware of the

existing promotion policy in the organization.

Respondents were asked whether the promotion is well

defined in the organization.

The responses are given below:

NUMBER OF EMPLOYEES=120

Response Number Percentage

Yes 20 16.66

No 60 50

Cant Say 40 33.33

From the above table, it can be seen that 17% of employees

were agree and 50% of employees were not agree that

promotion is well defined in the organization. However, 33% of

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employees were not able to say it as there is lack of information

about the promotion policy. Every employee need to be

communicated about the existing promotion policy.

Respondent were asked whether the promotion policy is

linked with the performance appraisal system.

The responses were as given below:



47

20

60

40

0

10

20

30

40

50

60

70

Yes No Can't Say

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Yes 60 50

No 40 33.33

Cant Say 20 16.66

Majority responses were that promotion policy is linked with the

performance appraisal system.

CAREER PROGRESS

48

60

40

20

0

10

20

30

40

50

60

70

Yes No Can't Say No Response

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Career progress can be defined as continuous progress through

the input from organization in term of training, feedback and

counseling. In todays changing scenario this has to be followed

in every organization so that an individual making progress in

the career adding value to him and the organization.

Respondent were asked about the current system helping in

their career progress.

Are the issues like career planning and succession

planning a part of companys policy?

The responses to the above were as given below:-



Yes 12 10

No 60 50

Cant Say 48 40

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Only 10% employees agree that career planning and succession

planning a part of companys policy, 50% of the employees

responded that it does not part of companys policy, while 40%

gave employees were unable to say anything.

Respondent were asked about the how often

performance appraisal is done, formally or informally



Fortnightly 0 0

Monthly 0 0

Six-monthly 40 33.3

Annually 80 66.6

Not fixed 0 0

50

12

60

48

0

10

20

30

40

50

60

70

Yes No Can't Say

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Here the responses from the employees, it was found that

appraisal is done annually for 66.6% confirmed employees and

33.3% for trainees/probation employees.

Respondent were also asked to suggest the basis of the

promotion in during the performance appraisal, 5

options were given to the appraisee.

51

0 0

40

80

00

10

20

30

40

50

60

70

80

90

Fortnightly Monthly Six-monthly Annually Not fixed

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Merit cum seniority 30 25

Seniority cum merit 30 25

Merit only 20 16.66

Seniority only 10 8.3

Any other 10 8.3

From the above table, it can be seen that 25% agree that

promotion is done based on the Merit and seniority. However

16.6% thought merit as the base. There are 8.3% appraisee who

thought Seniority as the base for the promotion.

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53

30 30

20

10 10

0

5

10

15

20

25

30

35

Merit cum seniority Seniority cum merit Merit only

Seniority only Any other

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Respondent were also asked to suggest about who does

the appraisal for them, 5 options were given to appraise.




Appraisal

Committee

0 0

Your immediate

supervisor

100 83.33

Self appraisal 100 83.33

360 degree

appraisal

100 83.33

Any other 20 16.66

From the above table, it can be seen that 83.33% appraise

involved in self-appraisal, immediate supervisor, and they were

aware that appraisal was 360 degree and feedback were asked

from their supervisors/managers as well as subordinates.

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The answer of this question can be more than one. In the above

table and graph, respondent selected/marked more than one

answer/options.

360 degree performance appraisal is one of the appraisal

system to know the overall performance of the employee.

Feedback of the appraisees performance is taken from all the

supervisors, colleagues, subordinates and self appraisal is also

been the part of this appraisal

55

0

100 100 100

20

0

20

40

60

80

100

120

Appraisal Committee Your immediate supervisor

Self appraisal 360 degree appraisal

Any other

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3. Employees were also asked about the methodology

being used for performance appraisal, 6 options were

given to the appraisee. The responses were as given

below:



Forced choice

distribution method

0 0

Essay method 0 0

Ranking method 80 66.66

Critical incident

method

0 0

Not aware of the

method

40 33.33

Any other 0 0

From the above table, it can be seen that 66.66% appraisee

know that the method of their performance appraisal is Ranking,

and about 33.33% appraisee were not aware about the method

of appraisal.

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57

0 0

80

0

40

00

20

40

60

80

100

Forced choice distribution method

Essay method

Ranking method

Critical incident method

Not aware of the method

Any other

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Respondent were asked about the job satisfaction, does

appraisal leads to job satisfaction.




Yes 50 41.6

No 20 16.6

No response 50 41.6

From the above table, it can be seen that 41.66% appraisee felt

that appraisal leads to the job satisfaction and 16.66%

appraisee felt that it does not leads to job satisfaction. About

41.66% appraisee fail to response to this question.

58

50

20

50

0

10

20

30

40

50

60

Yes No No response

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Respondent were asked about the clarity about the

procedure involved in the appraisal system.




Yes 90 75

No 30 25

Cant say 0 0

From the above table, it can be seen that 75% appraisee felt

that the procedure involved in the appraisal system are clear to

them and 25% appraisee felt that it is not clear to them.

ALIGNING GOAL

59

90

30

00

10

20

30

40

5060

70

80

90

100

Yes No Cant say

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Respondent were asked about the present system, does

it help in aligning individual goal with those of the

organization.




Yes 60 50

No 40 33.3

Cant Say 20 16.6

Here the responses from the appraisees, 50% of the appraisees

were agreed that it helps in aligning their goal with those of

organization.

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REVIEWS

Objective of reviews to subordinates is providing constructive

feedbacks to enhance their strengths and mitigate the

weaknesses. Feedback provides for the area of improvement.

Respondent were asked about if subordinates benefited

from the reviews that supervisor/managers gave during

the performance appraisal.


61

60

40

20

0

10

20

30

40

50

60

70

Yes No Cant Say

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Yes 40 33.3

No 70 58.3

Cant say 10 8.3

58% appraisee and appraisers felt that subordinates are not

benefited from the reviews provided by the supervisors and

managers. It was surprise to know that not lot of employee

/appraisee benefited out of reviews provided by the

supervisor /managers.

62

40

70

10

0

10

20

30

40

50

60

70

80

Yes No Cant say

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Employees were asked to comments on the role of top

management in their performance appraisal.

It was found that appraisees were agreed on the role of top

management in their performance system, but they felt that top

management role is very limited when it comes to

compensation, rewards, benefits, career planning and

succession as mentioned in the company policy.

Respondent were asked about their total number of year

association with HHPL,




0- 1 year 54 45

1- 2 years 20 16.6

2- 3 years 40 33.3

More than 3 years 6 5

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From the above table, it can be seen that with the current

performance appraisal system, company is able to retain 33% of

the employees for more than 2 years.

Respondent were asked about who is their reviewing

officers.




Immediate

supervisor

88 73.3

64

54

20

40

6

0

10

20

30

40

50

60

0- 1 year 1- 2 years 2- 3 years More than 3 years

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Onsite Immediate

supervisor and

India service center

manager

28 23.3

Subordinates 120 100

Onsite subordinate

and ISC

subordinates

28 23.2

Co-workers 0 0

Peers 120 100

Outside

organization

4 3

Here the responses from the appraisees, HHPL has culture of

taking feedback from the supervisor, peers, so-workers, and

subordinates. For certain kind of roles appraisal is done by the

65

88

28

120

28

0

120

4

0

50

100

150

Immediate supervisor

Onsite Immediate supervisor and India serv ice center manager

Subordinates

Onsite subordinate and ISC subordinates

Co-workers

PeersOutside organization

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clients. For expats appraisal is done by the onsite

supervisors/managers and subordinates.

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FEEDBACK

Providing feedback plays a constructive role. It helps the

employee to know his/her weakness and strength. Feedback

provides for the area of improvement. Based on the feedbacks,

HR can identify the training needs and enroll the employees for

the same.

Respondent were asked about the frequency of feedback

based on their performance.




Rarely 30 25

Only when required 40 33.3

Often, but not

always

40 33.3

Yes, every time 10 8.33

33.33% responded that feedback is provided though on a few

occasion and only when required. The frequency has to increase

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both from the individual and organization point of view to keep

the individual motivated for work in line with the organizational

expectations. Feedbacks can be used as interim checks to

adherences of an individual to the organization expectation.

68

30

40 40

10

0

5

10

15

20

25

30

35

40

45

Rarely Only when requiredOften, but not always Yes, everytime

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ATTITUDE

Respondent were asked about if appraisal system lead to

the positive attitude.




Yes 30 25

No 70 58.3

Cant say 20 16.6

58% appraisee and appraisers felt that appraisal program dont

leads to positive attitude and only 25% agreed on the same.

Organization need to take initiative to increase the number of

people who thinks that appraisal program leads to positive

attitude.

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70

30

70

20

0

10

20

30

40

50

60

70

80

Yes No Cant say

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Respondent were asked about if performance appraisal

improves relationship between Boss and Subordinate?




Yes 20 16.6

No 70 58.3

Cant say 30 25

58% appraisee and appraisers felt that performance appraisal

dont improve the relationship between Boss and Subordinate.

Organization need to take initiative to increase the number of

people who thinks that performance appraisal improve the

relationship between Boss and Subordinate.

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72

20

70

30

0

10

20

30

40

50

60

70

80

Yes No Cant say

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creates atmosphere of growth and communication.




Yes 40 33.3

No 50 41.6

Cant say 30 25

41% appraisee felt that performance appraisal does not create

atmosphere of growth and communication and 33.3% felt that it

does.

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Respondent were asked about if organization provide

counseling after the appraisal.




Yes 20 16.6

No 80 66.6

Cant say 20 16.6

74

40

50

30

0

10

20

30

40

50

60

Yes No Cant say

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66% appraisee felt that organization does not provide

counseling after the appraisal and 16.6% felt that organization

does.

75

20

80

20

0

10

20

30

40

50

60

70

80

90

Yes No Cant say

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REMEDIAL MEASURE

Based on the performance the remedial measures are taken to

do away with weakness if any and build on the strength and add

to the existing capability.

Responses on the remedial measures were as given

below:



Job Rotation 27 22.5

Sent to training

programme

50 41.66

Counseled 40 41.66

Any other 0 0

None 3 2.5

Response was both for job rotation and training programme. It

was felt that more training input is to be provided to the

employee to overcome the weakness and improve upon the

existing capability of the employee.

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77

27

50

40

03

0

10

20

30

40

50

60

Job Rotation Sent to training programme

Counselled Any other

None

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INDIVIDUAL DEVELOPMENT PLAN


help in creating individual development plan.




Yes 40 33.3

No 70 58.3

Cant say 10 8.3

58% appraisee felt that performance appraisal does not help to

create individual development plan and 33.3% felt that it does.

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Respondent were asked about if job rotation help them

to plan for individual development better.




Yes 78 65

No 30 33.3

Cant say 12 10

79

40

70

10

0

10

20

30

40

50

60

70

80

Yes No Cant say

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65% appraisee felt that job rotation help them to plan for

individual development better and 33.3% felt that it does not.

Respondent were asked to provide suggestions towards

improving the performance appraisal stem in their

organization.

The response were mixed,

a. 20% appraisee felt that formal training required for

appraisers.

80

78

30

12

0

10

20

30

40

50

60

70

80

90

Yes No Cant say

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b. 40% appraisee felt that appraisal process is influenced by

recent incidents and rating is very much biased for recent

good or bad incidents, they suggested to have unbiased

appraisal process.

c. 32% appraisee felt that that should be more training need

identification checklist to overcome the weakness.

OVERALL ASSESSMENT OF PERFORMANCE APPRAISAL

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Respondent were asked to rate the performance

appraisal.

The response were as given below :



Outstanding 0 0

Very Good 20 16.6

Good 40 33.3

Satisfactory 60 50

Poor 0 0

50% of the respondent rated the system of performance

appraisal to be satisfactory. Nobody rated it to be poor.

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83

Poor

0%

Good

33%

Very Good

17%

Outstanding

0%

Satisfactory50%

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SWOT ANALYSIS

1. STRENGTH : Harsoria Healthcare Pvt. Ltd. is a private

limited company incorporated on August 2, 2002 under

the Indian Companies Act. The factory has been

established at Plot Nos.110&111, Phase-IV, Udyog Vihar,

Gurgaon -122015, Haryana (India). This factory is a 100%

EOU (Export Oriented Unit) registered with the Noida

Export Processing Zone (NEPZ). Harsoria commenced

operations in its Design & Development section in June

2002 and the commercial production for the Medical

Devices for Single Use commenced in March 2003.The

company is organized and managed by professionals

having considerable experience in the field. All varieties of

IV Catheters being manufactured comply with

International standards for the Product as well as Quality

Systems. Currently, the entire production is earmarked for

the company's export customers, however the company

intends serving requirements of the product in India to

some extent. The current overseas customer base is

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spread in Europe, Middle-East and some South East Asian

countries. The company is committed to meet the

expectations of its valued customers.

2. WEAKNESS: HHPL is considered as conservative company

because of its low risk taking capability, while investing

their clients money in the health care product market

among their competitors in US and Canada. They The

main weakness of the company is that the company is

taking the performance appraisal objective wise, while

evaluating a performance of particular employee,

objective wise, the employee does not get enough

opportunity to express completely and freely the valid

reasons of his/her failure to the organization. Weakness is

also highlighted when HHPL, India do this performance

appraisal procedure annually.

3. OPPORTUNITY : With the help of the performance

appraisal system the employee get feedback from the

company. Employees can realize easily his/her level of

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efficiency level. By this performance appraisal system the

employee gets enormous opportunity to enhance their

skills by customized training and various other

management programmes.

4. THREATS :

While evaluating an employees performance the

performance appraisal system there is always a chance of

fear that those employees who are unable to achieve their

target can take it as a huge setback for them and in the

log term it tends to decrease their efficiency level how

good the employee is and thus it effect the overall

performance of the organization.

Also future appraisal can be biased from the previous

years ratings.

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SUMMARY AND FINDINGS

The analysis and interpretation of data on study of performance

appraisal and its effectiveness in an organization led to the

following findings:

The promotion rules though defined need to be

communicated to every employee before appraisal

process is done and also justifies the promotion as a result

of the appraisal. Promotion policy followed differs at

different position and category. Uniformity has to be there

in the implementation of promotion policy at all levels.

The process of performance appraisal followed in HHPL,

India at the supervisory and above level is not good but it

is of satisfactory level. The employees do not rate it very

good.

The appraisal outcome has to be used frequently for the

purpose of reward on performing well together with the

feedback on the performance. Also when performance

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goes down employee has to be given feedback and

motivated to do better.

At present, the organization doesnt implement the career

planning and career succession plans effectively.

In HHPL, India feedback is being provided to the employee

occasionally.

Performance appraisal is done annually.

More emphasis on training and job rotation as remedial

measures.

The mechanism of counseling before and after

performance is not in practice at the organization in

stringent fashion. During the course of study suggestions

came from the employee side for the need of counseling.

Around ninety percent of the samples are happy with the

induction process of the comp.

Forty one percent of the employees are satisfied with their

job placements.

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Ninety five percent of the employees have clarity of their

duties and responsibilities

When ages factor is taken, it is observed that a majority

of respondents above the age of 45 years are partially

satisfied on.

Seventy five percent of the employees believe HHPL, India

has a clear cut career plan.

Most of employees belonging to the age group 23-28 years

are not satisfied with the way in which their career in

taking place.

Thirty three percent of the sample employees feel their

appraisal result was not communicated to them in time.

The organization helps the employees in improving the

performance.

Most of the employees agree that free communication

exists between the employees in the organization.

The organization culture at HHPL is Healthy and employee

friendly.

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That the employees are highly satisfied with the flexible

timings followed at HHPL.

During interviews, most of employees believe that HHPL is

handling the employees grievance satisfactory.

Fifty percent employees of the samples are satisfied with

the appraisal system followed by HHPL, India.

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RECOMMENDATIONS

There are some recommendations:-

Training the Appraise: It is proposed that appraiser

should be trained for clear understanding of the appraisal

system and its objective and also counseled to be honest,

fair, just, unbiased in appraising the appraise.

Factors/behavior of evaluation: It is proposed that

appraisee evaluated on above factors/behavior be given

suitable remark or justification for being given different

quantitative grade.

More clarity has to be there in terms of expectations and

job responsibility. This is possible when the appraisal is

done on the basis of the job description.

In HHPL, performance appraisal is done on an annual

basis; this should be changed to Quarterly to make it more

effective.

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Consistency and more openness are demanded in the

promotional policy. It should not be changed every year.

Monetary difference between two grades should not be

big; it should be motivating in nature.

Performance Appraisal system should be made more

transparent, unbiased and rationale.

Performance feedback: The performance feedback

sessions should be improved which would results in

increasing employee motivation to improve performance.

The following could be incorporated.

- Identify the problem behavior and make sure the

employee is aware of it.

- Make sure that the employee understands the

consequences of the problem behavior.

- Assistance should be provided to the employees to

improve the performance. Make a reasonable plan

appropriate to the behavior and set a timeframe for

improvement.

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- To make sure review the performance time to time.

The other change which has to be incorporated at the

Manager/supervisor and the level above are :

- The task should be listed down during the previous

year and the result achieved.

- In some areas of performance there should be self

appraisal and an effective counseling should be

provided to the employees to improve on weaker

area and understands what is expected of him/her at

the organization level.

- Based on the above an open appraisal system is

suggested.

In an open appraisal system, the employee would come

together to set the targets, to understand the mutual

expectations and support to be provided by the appraiser to the

employee for achieving mutually accepted targets. Through this

process of setting targets the interpersonal relationship

between the appraiser and the employee would improve.

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The open appraisal system reduces the whims and fancies of

the appraiser. It promotes result orientation as it is based on

performance rather than on personality based appraisal.

Developing Performance Objectives:

Annuities Data Services

1. Satisfaction Ratio

2. Turnaround time to resolve the downstream system

Complaint

3. Up to 5% tolerance for the defined process deviations

4. 95% on time response

5. 95% Quality deliverables

6. 99% adherences to the data for the CDR downstream

applications

Group Data Services

1. Satisfaction Ratio2. Turnaround time to resolve the downstream system

Complaint


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6. 99% adherences to the data for the GDR downstream

applications

7. Meet the SLA of Group business

Individual Data Services

1. Satisfaction Ratio

2. Turnaround time to resolve the downstream system

Complaint




6. 99% adherences to the data for the IDR downstream

applications

7. Meet the SLA of Individual line of business

Distributing Computing

1. Number of Ideas Generated

2. Prototype Development for the workbench

3. Documentation

Quality Assurance

1. Quality cost including manpower

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2. New process development for better quality

3. 0% tolerance for the process deviations

Mainframe Team

1. Adherence to the product team schedule

2. Implementing the business rules

3. Documentation

Personnel

1. 0% tolerance for the wages calculation

2. Ensure and maintain the hygienic workplace

3. Intelligence source developed

4. Keep up the shift roaster

5. Gate movement control

Administration

1. Cost reduction percentage

2. Succession schedule

3. Savings

4. Innovations

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CONCLUSION

The employees are fairly satisfied with the HR practices

followed at HHPL.

Overall the employees seem to be satisfied with the job.

However, it was observed that there was a fair amount of

satisfaction.

The employees are satisfied with the Performance System

applied by organization.

The experience of conducting this study in HHPL had been a

very good.

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Appendices and Annexure:


Employee Name : _________________________

Designation : _________________________

Division : _________________________

Please mark ( ) the right response

Appraisal Policies:

Q.1. Do you think that promotional policies are well defined inyour organization?

a. Yes b. No C. cant say

Q.2. Does the promotional policies linked with the performance

appraisal system?

a. Yes b. No. c. cant say

Q.3. Does career planning and succession is planning a part of

companys policy?

a. Yes b. No. c. cant say

Q.4. Are you aware of objectives of the performance appraisal

system? If yes pls describe.

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Q.5. How often performance Appraisal is done.

a. Fortnightly. b. Monthly c. Six-monthly

d. Annually e. not fixed

Q.6. What is basis the of performance appraisal?

a. Merit cut seniority

b. Seniority cum merit.

c. Merit only

d. Seniority only.

e. Any other, Pl. Specify.

Appraisal and You

Q.7. Who does the appraisal for you?

a. Appraisal Committee.

b. Your immediate supervisor

c. Self appraisal

d. 360 degree appraisal

e. Any other, please specify

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Q.8. Are you aware about the methodology being used for

performance appraisal in your organization? If yes, pls select

out of followings:

a. Forced choice distribution method.

b. Essay method

c. Ranking method

d. Critical incident method

e. Any other, kindly specify

Q.9. Do you think that appraisal leads to Job Satisfaction?

a. Yes b. No

Q.10 Are you clear about the procedure involved in the

appraisal system?

a. Yes b. No. c. Cant say

Q.11.Does the system help you in aligning your goals with those

of the organization?

a. Yes b. No. c. Cant say

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Q.12.Do you think that appraisal system offer an opportunity to

detection your strength and weaknesses?

a. Yes b. No c. Cant say

Q.13.Do you think that your subordinate benefited from the

review you give them during the Performance Appraisal?

a. Yes b. No c. Cant say

Q.14.What is the role of top management in your performance

appraisal? Please comment.

Q.15. What is your total number of years association with

HHPL?

Q.16.Do you belong to the appraisal committee?

a. Yes b. No

Q.17.Who are your Reviewing officers?

a. Immediate superior

b. Onsite Immediate superior and India service

center manager

c. Subordinate

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d. Onsite Subordinate and India service center

Subordinate

e. Co-worker

f. Peers

g. Outside organization

Q.18.Do you get the feedback of performance appraisal?

a. Yes, every time. b. Often, but not always.

c. Only when required d. Rarely

Q.19.Who provide you the feedback of performance appraisal?

a. Immediate superior

b. Onsite Immediate superior

c. Onsite HR Personnel

d. India HR Personnel

Q.20.Does appraisal program leads to positive attitude?

a. Yes b. No

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Q.21.Do you think that performance appraisal improves

relationship between Boss and Subordinate?

a. Yes b. No

Q.22.Does performance appraisal improve job knowledge skills?

a. Yes b. No

Q.23.Does appraisal / creates atmosphere of growth and

communication?

a. Yes b. No

Q.24.Does the organization provide counseling after the

appraisal?

a. Always b. Often c. Rarely

d. Never e. Cant Say

Q.25.Who does the counseling?

a. Trained professionals b. Untrained counselors

c. Cant say

Q.26.What kind of remedial measures are taken?

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a. Job rotation b. Sent to training program

c. Counseled d. Any other, kindly

specify..

Q.27.How do you rate the overall assessment of performance

appraisal?

a. Outstanding b. Very good

c. Good d. Satisfactory

d. Poor

Q.28.Does performance appraisal help in creating Individual

development plan?

a. Yes b. No

Q.29. Do you agree on job rotation help you to plan for

individual development better?

a. Yes b. No

Q.30. Suggestion towards improving the performance appraisal

system in your organization.

Bibliography

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Managing a Global Workforce by Charles M. Vance

and Yongsun Paik

M. E. Sharpe, Inc. 2006

Personnel management, Edition sixth, by Flippo

Edwin B., Tata Mc Graw Hills, 1984, p.g. 225-230.

WEB SITES SURFED

www.google.comwww.citeMailer.com

www.HHPL.com

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Dharmender

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