Nikhil's Project

8/2/2019 Nikhil's Project

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CONTENTS

CHAPTER 1. INTRODUCTION

1.1Industrial profile1.2Karbonn Mobiles...

CHAPTER 2. PROFILE OF THE ORGANIZATION

2.1 Origin....

2.2 Functional Departments of the organization.

2.3 Organization Structure..

2.4 Growth and Product Profile..

2.5 Competitors...

CHAPTER 3. PERFORMANCE APPRAISAL

3.1 Introduction.

3.2 Objective..............................................

3.3 Uses of Performance appraisal.....

3.4 Essentials of a good appraisal system......

3.5 Need of Performance appraisal

3.6 Process of appraisal system.....

3.7 Methods of Performance appraisal..........

3.8 360-Degree appraisal method......

3.9 Ways for improving Performance appraisal........

3.10 Limitation of Performance appraisal......

CHPATER 4. ANALYSIS OF THE DATA

4.1 Research problem...

4.2 Findings from Appraisee Survey....

CHAPTER 5. CONCLUSIONS AND RECOMMENDATION...

CHAPTER6. SUMMARY....... .

APPENDICES


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BIBLIOGRAPHY

LIST OF FIGURES

S.no Figure no. Title

1 1.1 Mobile handset market

2 2.1 Departments

3 2.2 Organization structure

4 3.1 Process of Performance Appraisal

5 3.2 Methods of Performance appraisal

6 3.3 MBO process

Table no.

1 2.1 Mobile phone player in fy 2010-2011


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CHAPTER 1. INTRODUCTION

The Indian telecommunications has been zooming up the growth curve at a feverish

pace, emerging as one of the key sectors responsible for India's resurgent economic

growth. India is has surpassed US to become the second largest wireless network in

the world with a subscriber base of over 300 million in April, according to the the

Telecom Regulatory Authority of India .

India has 2.5 times more mobile users than U.S. The only country that currently has

more is China at 863 million mobile users. Plus, the number of mobile subscribers in

India is growing by a whopping 20 million every month.

Mobile handset was first invented by Martin Cooper in 1973, and it took almost 22

years to come in Indian hands. The mobile industry is huge in India: 791 million

mobile users, 65 percent penetration rate, and an expected 82 percent penetration rateby 2014.

India is emerging as a handset super-power as more manufacturers set up base in the

country, it is not only the world's fastest-growing telecom market but it is also making

remarkable progress in the telecom manufacturing space. The Indian telecom

equipment manufacturing sector has become one of the largest globally in the year

2010. Simultaneously, India's surging domestic market has also providing excellent

investment opportunities in other segments of telecom equipment industry.

According to Economic Times, India is the worlds second largest handset market

having revenue of 25,591 crores, and expected to generate 35,005 crores by the

year 2016.

Indian mobile handset industry is also booming with brands such as Micromax,

Karbonn mobiles, Lava mobile, Fly, Spice etc are attracting the Indian consumers

who are looking a featuristic mobile at an affordable price.
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Market share of mobile handset in India

Handset major Nokia remained the market leader with 52% share; Samsung remained

the second largest handset vendor with 17% market share, followed by LG at 6% and

other MNC handset provider like Blackberry, Sony Erricson, Apple, HTC etc.

Home-grown handset makers like Spice, Micromax and Karbonn captured 14 per cent of the

mobile phone market in India in Fiscal year 2009-2010. These manufacturers had just 3-4 percent market share in the previous fiscal.

According to the Voice & Data Indian Telecom Survey, these Indian brands strengthened

their presence in the domestic handset market in 2009-10, growing at the expense of

multinationals like Nokia and Samsung. While Micromax had a 4.1% market share by

revenue, Spice and Karbonn had a share of 3.9% and 3% in Fiscal Year 2009-2010 ,

respectively, while Lava had a share of 1.1% , Lemon 1% an Max had a 0.9% share.

Fig1.1 Mobile handset market

52%

17%

6%

4%

11%

3%

1%

1% 1%

4%

Mobile Handset Market In India

Nokia

Samsung

LG

Micromax

Other MNC co.

Karbonn

Lava

Lemon

Max


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1.1 INDUSTRY PROFILE

THE JAINA GROUP

The Jaina Group is a reputed distribution house with interests in telecom and

consumer durables. Headquartered in Delhi, the company has represented, with

distinction, prominent brands such as Nokia, Samsung, Siemens, Panasonic and

Philips (LCD devices) as regional or national distribution partners.Jain Group is currently engaged in national distribution of HTC Mobile Phones in

India & South Asia and Motorola and LG Mobile Phones in India.

Jaina Group currently has over 350 employees and a network of 28 domestic and

overseas branches actively engaged in mobile phones business with a turnover of

around Rs. 1000 crores. Jaina is also the preferred distribution partner of Microsoft.

UNITED TELECOMS

The UTL Group is a leading Indian telecom powerhouse with interests that span

across manufacturing, services and distribution. A leading supplier of landline

telephones and electronic exchanges in India, telecom equipment to cellular operators,

the group is closely linked with the mobile phone revolution in the country.

UTL has successfully represented reputed mobile phone brands like Alcatel, Nokia,

Samsung and Virgin in India, either as regional or national distribution partners.

Headquartered in Bangalore, this multi division telecom group has over 2000

employees and over 3 decades of telecom expertise.

United Telecoms is a reputed global business house with interests in diversified sectors like

Telecom, E-governance, Steel, Power, IT, Real Estate, Manufacturing and Education with

operations spread across 13 countries and employing more than 2000 people. United

Telecoms group came into existence to cater to the growing demand for telecom related

equipment more than four decades ago by setting up an ancillary unit for supplying spares

for Telephone exchanges.

A perfect match, where the blend of strengths in technology, people, infrastructure and

marketing deliver fantastic value to the discerning Indian consumer. Expect more from


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Karbonnfrom high quality products tested in India and abroad to a solid post-sales service

network (apart from the numerous firsts in the industry).

1.2 KARBONN MOBLIES

Karbonn Mobiles is a Telecommunication firm which was founded in March 2009. It

is a joint venture Mobile manufacturing company between the Bangalore based

United Telelinks Limited (A group of Telecom Major, United Telecoms Limited) and

Noida based Jaina Marketing & Associates.

The companys total investment in Indian consumer market is over $5 million and

expects to gain Rs. 1000 Crores revenue in the current fiscal year. The company has

tied up with leading semiconductor companies worldwide for their handsets and

targets mainly the budget conscious consumers. The company currently has around

500 Service centers all over India with around 150 dedicated exclusively for Karbonn

Karbonn has covered Bangladesh as the first country in its launch initiative for South

Asia and has cover Sri Lanka and Nepal as well. The company had launch Karbonn

Mobiles in Middle East and Africa in the first quarter of the financial year 2010.

The mobile handset is intend to address the value for money seeking Indian consumer

who is keen on having an array of advanced mobile phone features at competitive

prices. Karbonn Mobiles will strive to cater to the entire gamut of mobile phone users

with the latest trends, state-of-the-art technology and newer innovations.

Karbonn Mobiles consist of distribution network covering around 80% of the districts

in the states all over India. Currently, Karbonn is available through 50000 outlets

across the country and the company plans to double this number by the end of currentfiscal year. Karbonn Mobiles is supported by its extensive service network of 500

service centres across the length and breadth of the country, out of which 150 are

dedicated Karbonn Mobiles service centres and the rest are supported by the service

partners of the company.

Market Presence

Karbonn Mobiles has become the proud official sponsors of Cape Cobras andassociate sponsors of Diamond Eagles, the leading domestic cricket teams of South
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Africa. The company has also become the co-sponsors of Sri Lankas premier

domestic cricket team, Wayamba Elevens. The team features some of Sri Lankan

crickets leading superstars including Mahela Jayawardena, Ajantha Mendis, Farveez

Maharoof, and Jehan Mubarak among others

The company has its wide presence all across Indian states. Apart from India, the

company handsets are also exported to South Asia, Africa and Middle East countries.

Official Sponsorship

The company has made its market presence huge by sponsoring and partnering with

some of the prestigious Cricket game leagues such as Airtel Championship Leagues,

Indian Premier League matches. The company was associated with the Cape Cobras

during the Champions League Twenty20 matches held in 2010.

Apart from cricket game, the company has also recently associated with Indian

Entertainment industry by being the lead sponsorer and associate of 17th

Annual StarScreen Awards and also Mirchi Music Awards ceremonies.

Product Ranges

The company prominently launches the Dual SIM and Dual Processor based handsets

to the consumer market. It currently produces wide ranges and form factors of

CDMA, GSM and WCDMA products catering to all sections of Telecom users. Apart

from Dual GSM based phones, the company has launched GSM + CDMA phones as

well, thereby merging the two mobile technologies in a single handset.

Future of the Industry

Karbonn Mobiles aims to be a leading mobile phone company in India offering

unmatched quality and features at attractive price points. Karbonn aims to capture

market share of 710 % in India in multimedia phone segment in current fiscal year.
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The company is also in the advanced stages of establishing 5 to 10 exclusive Karbonn

mobile stores in all the major states of India

CHAPTER 2. PROFILE OF THE ORGANIZATION

2.1 ORIGIN OF THE ORGANIZATION

Jaina marketing and associates is a reputed distribution house with interests in

telecom and consumer durables, having headquartered in Delhi. Jain Group is

currently engaged in national distribution of HTC Mobile Phones in India & South

Asia and Motorola and LG Mobile.

Karbonn Mobiles is a Telecommunication firm which was founded in March 2009. It

is a joint venture Mobile manufacturing company between the Bangalore based

United Telelinks Limited (A group of Telecom Major, United Telecoms Limited) andNoida based Jaina Marketing & Associates.

2.2 FUNCTINAL DEPARTMENT OF THE ORGANIZATION

Fig 2.1 Departments
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2.3 ORGANIZATION STRUCTURE


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Fig 2.2 Organization Structure

2.4 GROWTH AND PRODUCT PROFILE:

Growth and development:


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Karbonn mobile was founded in 2009 and is successfully able to create a market

presence within two years. It holds 3% of the market share, and aims capture 7-10%

market.

Table 2.1 Mobile phone players in fy 2010-11

Revenu generated by Karbonn mobile in fiscal year 2009-10 was 800 and in fiscal

year 2010-11 was 1,004, thus with the growth of 25%.

Product And Service Profile:Karbonn Mobiles, a company that redefines mobility with its wide range of

attractively priced multimedia phones unveiled its aggressive and ambitious

expansion plans for the growth of the Karbonn brand in India. The company aims to

capture a market share of 7 %10 % in India in the multimedia phone segment in the

current fiscal. The company today expanded its portfolio by launching its new range

of multimedia devices for the Indian market, in the price range of Rs. 2000/ to Rs.5000/-.

2.5 COMPETETORS

1. Micromax


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Micromax is a telecommunications company based in Gurgaon, Haryana, India. It is a

manufacturer of wireless telephone handsets having 23 domestic offices across the

country and international offices in Hong Kong, USA, Dubai and now in Nepal.

Micromax is the largest Indian domestic mobile handsets company in terms of units

shipped during the quarter ended March 31, 2010 and the third largest mobile handsetseller in India as at March 31, 2010

Micromax became the fastest growing mobile brand in India for the fiscal year 2009-

10. Handset sales have grown by 123.48% from 1.15 million units in the quarter

ended June 30, 2009 to 2.57 million units in the quarter ended March 31, 2010

2. Lava Mobile

The company aims to carve a unique niche for itself by focusing on Innovation in

every field namely Product, After-Sales Service and Distribution. The company

aspires to become one of the strongest brands in the Telecom sector by offering thecustomer with a unique proposition unmatched by any other player in the industry.

2. Spice Telecom

Spice Telecom is the brand name of Spice Communications Limited, a mobile phone

service provider in India, which is currently operating in the states of Punjab (India)

and Karnataka. Spice Communications Limited is now a subsidiary of Mumbai based

Idea Cellular Ltd. Idea Cellular acquired the company from Modi Wellvest and

Telekom Malaysia (TMI), now Axiata) in July 2008. The company is owned by

Aditiya Birla Group.

3. Zen Mobile

Zen Mobile, a sister concern of the Teleecare Group founded in November 2008. The

Teleecare group has been managing and distributing all renowned mobile brands in

India for the last 15 years.

Zen Mobile has always endeavoured in bringing quality products with technologically

advanced features which is crafted in style and finesse.The company believes in customer-brand relationship and thus brings out products

which are consumer friendly and are affordably priced. Zen Mobile has been certified

by the Indian Cellular Association for its genuine products. With a pan India presence

of over 200 distributors nationally and still growing, Zen Mobile is on its way to sell

half a million mobile handsets by this financial.

4. Olive Telecom
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Olive telecom is a mobile phone company established in 2006 having its headquarters

in India. It has established a world presence in 23 other countries. The company has

sold Over 20 million devices worldwide .it has established business relationship

with over 28 carriers. The distribution is setup in India, and soon will be

established in Indonesia and other countries .

5. GFive

G'Five is a consumer electronics company based in the People's Republic of China.

Founded in 2003, the company specialises in manufacturing mobile phones to

emerging markets with G'Five brand. It sold 5 million mobile handsets in 2010

becoming the tenth largest manufacturer of mobile phones worldwide.

G'Five focus on the international market, especially emerging markets, and our

products are mainly sold in South Asia, Southeast Asia, Middle-east, Africa, andSouth America. G'FIVE already have 300 handset models and launch 2 new models

every week, and initiate a lot of creative features like metal surface, super-slim,

double battery, super long stand-by, and free-to-air TV.

6. Gee Pee Mobile

Gee Pee is the flagship brand of Gee Pee InfoTech which specialises in

telecommunication with over 16 years of experience and unparalled expertise in

channel partnering.

It provides Indian consumer a new innovative variety of phones that delight the

customers with its performance and look, enabling you to communicate better.

7. Videocon Mobile

Videocon is an industrial conglomerate with interests all over the world and based in

India. The group has 17 manufacturing sites in India and plants in China, Poland, Italy

and Mexico. It is also the third largest picture tube manufacturer in the world.

Videocon launched its new line of Mobile Phones in November 2009 and has

launched a no. of Innovative handsets ranging from Basic Colour FM phones to High

End Android Devices.

CHAPTER 3. PERFORMANCE APPRAISAL
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3.1 INTRODUCTION

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 or not the salary or wage

of an individual employee was justified.

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

was found to be less than ideal, a cut in pay would follow. On the other hand, if their

performance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal.

If was felt that a cut in pay, or a rise, should provide the only required impetus for anemployee 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.

For example, early motivational researchers were aware that different people with

roughly equal work abilities could be paid the same amount of money and yet have

quite different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important,

yes; but they were not the only element that had an impact on employee performance.

It was found that other issues, such as morale and self-esteem, could also have a

major influence. As a result, the traditional emphasis on reward outcomes was

progressively rejected. In the 1950s in the United States, the potential usefulness of

appraisal as tool for motivation and development was gradually recognized. The

general model of performance appraisal, as it is known today, began from that time

Performance appraisal may be defined as a structured formal interaction between a

subordinate and supervisor, that usually takes the form of a periodic interview (annual

or semi-annual), in which the work performance of the subordinate is examined and

discussed, with a view to identifying weaknesses and strengths as well as

opportunities for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or

indirectly, to help determine reward outcomes. That is, 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 poorer performers who may require some form of counselling, or

in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be


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aware of laws in their country that might restrict their capacity to dismiss employees

or decrease pay.)

3.2 OBJECTIVE

The main aim of performance appraisal is to fulfil the requirements both of the

organization and the individual. The main objectives of performance appraisal are to

either evaluate performance or to improve it. In case of evaluation, the performance of

the employee is assessed over a specific period. Then a comparison is made with the

kind of performance at organization takes care of employees training and

development needs.

Effective performance appraisal systems contain two basic systems operating in

conjunction: an evaluation system and a feedback system.

The evaluation system is to identify the performance gap (if any). This gap is the

shortfall that occurs when performance does not meet the standard set by the

organization as acceptable. The feedback system is to inform the employee about the

quality of his or her performance.

Appraisal of employee serves several useful purposes:

1. Feedback: Performance appraisal assesses the employee by explaining to himwhat can be done to improve his current performance and get promoted. Thus,

appraisal helps in the development of the self acquainting the employee withmost important areas of his work.

2. Compensation decisions: Compensation is at the heart of any scheme ofperformance appraisal. It is now a common practice among the organizations

that a raise in salary should be given on merit rather than on seniority.

3. Database: Appraisal leads to the formation of a valid database for issuesconcerning promotion, salary, transfer, placements and so on. Records of

performance appraisal help without depending on supervisors personal

knowledge that may be shifted.

4. Personal development: Performance appraisal can aid in discovering thereason for superior and inferior employee performance. A line manager, bytalking to employees, can assess their performance and suggest steps for

improving it.

5. Training and development programme: The positive and negative aspectsof an employee are assessed. These help in conducting training and


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development programme to better his working. It can tell employee what skills

they can acquire to get a better pay packet and open avenues for promotions in

the future.

6. Promotion decision: Decisions regarding job change or promotion can betaken on the basis of this factor. The idea is to affirm if a worker is suitable for

promotion. A proper assessment of relevant work aspects should be properly

measured. This in turn helps to assuage the frustration of those who are not

elevated to a higher rank.

7. Improves supervisions: An appraisal system which is regular helps themanagement in keeping a tab on employees. This especially important because

the supervisors have assess the employees by regularly filling out rating formsand gives reason for criteria on whose basis they have estimated their

subordinates. This improves supervisions and helps in comparing employees.

From the organization's viewpoint, one of the most important reasons for having a

system of performance appraisal is to establish and uphold the principle of

accountability.

For decades it has been known to researchers that one of the chief causes of

organizational failure is "non-alignment of responsibility and accountability."

Non-alignment occurs where employees are given responsibilities and duties, but are

not held accountable for the way in which those responsibilities and duties are

performed. What typically happens is that several individuals or work units appear to

have overlapping roles.

The overlap allows - indeed actively encourages - each individual or business unit to

"pass the buck" to the others. Ultimately, in the severely non-aligned system, no one

is accountable for anything. In this event, the principle of accountability breaks down

completely. Organizational failure is the only possible outcome.

In cases where the non-alignment is not so severe, the organization may continue to

function, albeit inefficiently. One of the principal aims of performance appraisal is to

make people accountable.


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3.3 USES OF PERFORMACE APPRAISAL

Performance appraisal is used for the following reasons:

1. It provides important information on decisions of the personnel in such asincrease in salary, raising to higher level and for getting transferred and

termination

2. It gives feedback on how well or poorly employees perform, their behaviourand the level of achievement. An appraisal is helpful in correcting weaknesses

in the performance and setting the standard for high work culture within the

organization.

3. Through appraisal a management gives his employees a feedback on how wellor poorly they have performed. It is up to the management to suggest to the

employee what changes he should bring about in his style of working.

4. The need for training and development can be assessed by performanceappraisal. It indicates to the individuals how they can make use of training to

correct their deficiencies. It can treat as the basis for making arrangements for

training and development programme to improve the efficiency of the

employee.

5. Performance appraisal can become the basis foe assessing the usefulness ofcriteria for selection of employees. Thus it evaluates how helpful the processof selection, recruitment, placement and orientation in a firm is.

6. The existences of lasting performance appraisal records of worker are usefulto the management for human resource planning. It can be done without

depending upon what is personal knowledge of supervisors.

7. Performance appraisal helps in to ensure a good work culture. This helps inenhancing the productivity of the organization. Rewarding the employees

suitably and evaluating their work objectively results in increased dedication

and loyalty of the employees.

8. Performance appraisal is a shield for the management from blames likefavouritism and partiality. It addresses the grievance of the employees and

builds their confidence.


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Organizations use performance appraisals for three purposes:

Administrative: It provides employers with a reason for taking decisions likeincreasing the pay packet, promotion of workers, transferring them, etc.

Employee development: It gives information on the performance ofemployees. The appraisal records helps to identify the need for training

among employee and for other development purposes.

Programme assessment: Programme assessment constitutes the collection andstorage of performance appraisal data. The record reflects how effectual the

processes of recruiting, selection and placement if a firm are.

3.4 ESSENTIALS OF A GOOD APPRAISAL SYSTEM

1. It should be simple i.e. easy to understand and should not be very long and time

consuming. It should not be excessively verbose or use ambiguous terms and phrases.

2. The system must be explained to and accepted by employees at all levels. All

employees must be convinced that the system essential for their own betterment and

in overall organisational interest.

3. There are various methods of Performance Appraisal. A method that works wellfor one company may not work for another. An organisation must adopt the method

which conforms to their requirements and is most suitable considering the

organisations structure and operations.

4. There can not be one common Appraisal Form for all level of employees.

Separate forms should be used for different levels of employees. Each form should

be prepared keeping in mind specific requirements of that particular level.

5. The appraisal method adopted should be both valid and reliable. Validity of

appraisal method is the degree to which it is truly indicative of the intrinsic attributes

and characteristics as well as the standard of performance of each employee.

Reliability of the appraisal method is the consistency with which the appraisals are

made, either by different appraisers or by the same appraiser. Performance of an

employee may vary from time to time but his basic intrinsic attributes and

characteristics can not change.


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6. Appraisal should be based on performance of the employee only during the period

of review, i.e. without any consideration of his past performance.

7. The appraisal must clearly bring out whether the employee is fit for promotion, the

jobs or positions in which he can be suitably employed and also recommendations for

training that the employee is required to be provided.

8. The system must be just and equitable. It should duly protect rights and interests

of the organisation as well as of the individual employees.

9. To prevent subjective reporting and vindictiveness every employee must be

appraised by at least two or more persons.

10. All negative/adverse remarks must be conveyed to the employees and he should

be provided an opportunity to represent against the same. A formal procedure must beestablished to process any such representations.

11. The appraisal system must be periodically evaluated, reviewed and modified to

retain its validity, reliability and effectiveness


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3.5 NEED OF PERFORMANCE APPRAISAL

The need of performance appraisal is that it enables the management to make

effective decisions. The need of an appraisal is concerned with:

General Applications Specific Purpose

Developmental Uses Identification of individual needs

Performance feedback

Determining transfers and job assignments

Identification of individual strengths and

development need

Administrative Uses/Decisions SalaryPromotion

Retention or termination

Recognition of individual performance

Lay-offs

Identification of poor performer

Objective HR planning Determining organization training needs

Evaluation of organizational goal

achievement

Information for goal identification

Evaluation of HR systems

Reinforcement of organizational

development needs

Documentation Criteria for validation research

Documentation for HR decisions

Helping to meet legal requirements

3.6 PROCESS OF PERFORMANCE APPRAISAL


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Fig 3.1 Process of performance appraisal

1. Establishing performance standards :The first step in the process of performance appraisal is the setting up of the

standards which will be used to as the base to compare the actual performance

of the employees. This step requires setting the criteria to judge the

performance of the employees as successful or unsuccessful and the degrees of

their contribution to the organizational goals and objectives. The standards set

should be clear, easily understandable and in measurable terms. In case the

performance of the employee cannot be measured, great care should be taken

to describe the standards.

2. Communication the standards :Once set, it is the responsibility of the management to communicate the

standards to all the employees of the organization. The employees should be

informed and the standards should be clearly explained to the. This will help

them to understand their roles and to know what exactly is expected from

them. The standards should also be communicated to the appraisers or the

evaluators and if required, the standards can also be modified at this stageitself according to the relevant feedback from the employees or the evaluators.


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3. Measuring the actual performance :The most difficult part of the Performance appraisal process is measuring the

actual performance of the employees that is the work done by the employees

during the specified period of time. It is a continuous process which involves

monitoring the performance throughout the year. This stage requires the

careful selection of the appropriate techniques of measurement, taking care

that personal bias does not affect the outcome of the process and providing

assistance rather than interfering in an employees work.

4. Comparing the actual with the desired performance :The actual performance is compared with the desired or the standard

performance. The comparison tells the deviations in the performance of theemployees from the standards set. The result can show the actual performance

being more than the desired performance or, the actual performance being less

than the desired performance depicting a negative deviation in the

organizational performance. It includes recalling, evaluating and analysis of

data related to the employees performance.

5. Discussing results :The result of the appraisal is communicated and discussed with the employeeson one-to-one basis. The focus of this discussion is on communication and

listening. The results, the problems and the possible solutions are discussed

with the aim of problem solving and reaching consensus. The feedback should

be given with a positive attitude as this can have an effect on the employees

future performance. The purpose of the meeting should be to solve the

problems faced and motivate the employees to perform better.

6. Decision making :The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective

actions, or the related HR decisions like rewards, promotions, demotions,

transfers etc.

3.7 METHODS AND TECHNIQUES:


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Fig 3.2 Methods of performance appraisal

TRADITIONAL METHOD

1. Essay appraisal

In its simplest form, this technique asks the rater to write a paragraph or morecovering an individual's strengths, weaknesses, potential, and so on. In most selection

situations, particularly those involving professional, sales, or managerial positions,

essay appraisals from former employers, teachers, or associates carry significant

weight. The assumption seems to be that an honest and informed statement -either by

word of mouth or in writing- from someone who knows a man well, is fully as valid

as more formal and more complicated methods.

The biggest drawback to essay appraisals is their variability in length and content.

Moreover, since different essays touch on different aspects of a man's performance or

personal qualifications, essay ratings are difficult to combine or compare. For

comparability, some type of more formal method, like the graphic rating scale, is

desirable.

2. Straight ranking method


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This is one of the oldest and simplest techniques of performance appraisal. In this

method, the appraiser ranks the employees from the best to the poorest on the basis of

their overall performance. It is quite useful for a comparative evaluation. The

evaluator assigns relative rank to all the employees in the same work unit doing same

job. This method is highly subjective and lacks fairness in assessing the real worth ofan employee.

3. Paired comparison

Ranking becomes more reliable and easier under the paired comparison method. This

method is an attempt to improve upon the single ranking method. Under this method,

employees of a group are compared with one another at one time. After all the

comparisons on the basis of the overall comparisons, the employees are given the

final rankings.

This method is reliable but the method is not suitable when a large number of

employees are to be evaluated.

4. Critical incident appraisal

The critical incident technique looks like a natural to some people for performance

review interviews, because it gives a supervisor actual, factual incidents to discuss

with an employee. Supervisors are asked to keep a record, a "little black book," oneach employee and to record actual incidents of positive or negative behaviour.

There are, however, several drawbacks to this approach. It requires that supervisors

jot down incidents on a daily or, at the very least, a weekly basis. This can become a

chore. Furthermore, the critical incident rating technique need not, but may, cause a

supervisor to delay feedback to employees. And it is hardly desirable to wait six

months or a year to confront an employee with a misdeed or mistake.

5. Field review method

When there is reason to suspect rater bias, when some raters appear to be using higher

standards than others, or when comparability of ratings is essential, essay or graphic

ratings are often combined with a systematic review process. The field review is one

of several techniques for doing this.


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A member of the personnel or central administrative staff meets with small groups of

raters from each supervisory unit and goes over each employee's rating with them to

(a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus,

and (c) determine that each rater conceives the standards similarly.

This group-judgment technique tends to be fairer and more valid than individual

ratings and permits the central staff to develop an awareness of the varying degrees of

leniency or severity -as well as bias- exhibited by raters in different departments. On

the negative side, the process is very time consuming.

6. Checklist method

A checklist represents, in its simplest form, a set of objectives or descriptive statement

about the employee and his behaviour. The rater checks to indicate if the behaviour of

the employee is positive or negative to each statement. The performance is rated on

the basis of number of positive checks.

Objection to this method is that it is difficult to create a good checklist and different

check list is to be constructed for different work type.

7. Graphic rating scale

This technique may not yield the depth of an essay appraisal, but it is more consistent

and reliable. Typically, a graphic scale assesses a person on the quality and quantityof his work (is he outstanding, above average, average, or unsatisfactory?) and on a

variety of other factors that vary with the job but usually include personal traits like

reliability and cooperation. It may also include specific performance items like oral

and written communication.

The graphic scale has come under frequent attack, but remains the most widely used

rating method. In a classic comparison between the "old-fashioned" graphic scale and

the much more sophisticated forced-choice technique, the former proved to be fully as

valid as the best of the forced-choice forms, and better than most of them. It is also

cheaper to develop and more acceptable to raters than the forced-choice form. Formany purposes there is no need to use anything more complicated than a graphic scale

supplemented by a few essay questions.

8. Forced distribution

A large number of workers are grouped around a high point on a rating scale. This

problem is overcome by the forced distribution method. In this method the evaluator

is forced to distribute the apraisee on all points on the rating scale. The main reason


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for introducing this method is to dissuade the evaluator from habitually giving high or

low scores to a particular employee. The forced distribution method operates under

the assumption that the employees performance level conforms to a normal statistical

distribution. Generally, it is assumed that employee performance levels conform to a

bell-shaped curve.

The major weaknesses of the forced distribution method are:

1. The assumption that employee performance levels always conform to a normaldistribution.

2. If appraisers and the appraises are highly capable, they do not accept the forcedistribution method.

3. Since the rater too is not aware of the way to evaluate an employee, the resultof forced distribution method may not be useful to train the employee.

MODERN METHODS:

1. Management by objectivesTo avoid, or to deal with, the feeling that they are being judged by unfairly high

standards, employees in some organizations are being asked to set - or help set - their

own performance goals. Within the past five or six years, MBO has become

something of a fad and is familiar to most managers.

It should be noted, however, that when MBO is applied at lower organizational levels,

employees do not always want to be involved in their own goal setting. As Arthur N.

Turner and Paul R. Lawrence discovered, many do not want self-direction or

autonomy. As a result, more coercive variations of MBO are becoming increasingly

common, and some critics see MBO drifting into a kind of manipulative form of

management in which pseudo-participation substitutes for the real thing. Employees

are consulted, but management ends up imposing its standards and its objectives.

THE MBO PROCESS

The principle behind Management by Objectives (MBO) is to create empowered

employees who have clarity of the roles and responsibilities expected from them,

understand their objectives to be achieved and thus help in the achievement of

organizational as well as personal goals.


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Fig 3.3 The MBO process

Some of the important features and advantages of MBO are:

Clarity of goalsWith MBO, came the concept of SMART goals i.e. goals that are:

Specific, Measurable, Achievable, Realistic, Time bound. The goals thus set are clear,

motivating and there is a linkage between organizational goals and performance

targets of the employees. The focus is on future rather than on past. Goals and

standards are set for the performance for the future with periodic reviews and

feedback.

MotivationInvolving employees in the whole process of goal setting and increasing

employee empowerment increases employee job satisfaction and commitment.

Better communication and CoordinationFrequent reviews and interactions between

superiors and subordinates helps to maintain harmonious relationships within the

enterprise and also solve many problems faced during the period. Some organizations,

therefore, are introducing a work-standards approach to goal setting in which the

goals are openly set by management. In fact, there appears to be something of a vogue

in the setting of such work standards in white-collar and service areas.


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2. Assessment centresAssessment centres refers to comprehensive, standardized procedure where multiple

evaluation techniques including situational exercises and job simulation, (i.e. business

games, etc.), are used to assess individuals for several decisions. These centres are

mostly used when individual are being considered for selection, promotion, placement

of special training and development in management. Attempt is made to use multiple

methods of assessment and engage multiple assessors. The major assessment tools

used include:

Psychological test: aptitude tests, ability tests and personality test; Interviews- background interviews, critical incident situation interview and

behaviour event interviews;

Leaderless group discussion;

In-basket technique; Management games/ simulation exercise ; Role plays; and Presentations.

An assessment centre for Performance appraisal of an employee typically includes:

Social/Informal EventsAn assessment centre has a group of participants andalso a few assessors which gives a chance to the employees to socialize with a

variety of people and also to share information and know more about the

organisation. Information Sessionsinformation sessions are also a part of the assessment

centres. They provide information to the employees about the organisation,

their roles and responsibilities, the activities and the procedures etc.

Assignments- assignments in assessment centres include various tests andexercises which are specially designed to assess the competencies and the

potential of the employees. These include various interviews, psychometric

tests, management games etc. all these assignments are focused at the target

job.

The following are the common features of all assessment centres:

The final results is based on the pass/fail criteria All the activities are carried out to fill the targeted job. Each session lasts from 1 to 5 days. The results are based on the assessment of the assessors with less emphasis on

self-assessment

Immediate review or feedback is not provided to the employees.


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An organizations human resources can be a vital competitive advantage and

assessment centre helps in getting the right people in right places. The major

competencies that are judged in assessment centres are interpersonal skills,

intellectual capability, planning and organizing capabilities, motivation, career

orientation etc. assessment centres are also an effective way to determine the trainingand development needs of the targeted employees

3. Behaviourally anchored rating scales (BARS)

Behaviourally Anchored Rating Scales (BARS) is a relatively new technique which

combines the graphic rating scale and critical incidents method. It consists of

predetermined critical areas of job performance or sets of behavioural statements

describing important job performance qualities as good or bad (for e.g. the qualities

like inter personal relationships, adaptability and reliability, job knowledge etc).

These statements are developed from critical incidents.

In this method, an employees actual job behaviour is judged against the desired

behaviour by recording and comparing the behaviour with BARS. Developing and

practicing BARS requires expert knowledge. It identifies measurable behaviour and is

therefore more scientific.

4. Human resources accounting methodHuman resources are valuable assets for every organization. Human resource

accounting method tries to find the relative worth of these assets in the terms of

money. In this method the Performance appraisal of the employees is judged in terms

of cost and contribution of the employees.

The cost of employees include all the expenses incurred on them like their

compensation, recruitment and selection costs, induction and training costs etc

whereas their contribution includes the total value added (in monetary terms). The

difference between the cost and the contribution will be the performance of theemployees. Ideally, the contribution of the employees should be greater than the cost

incurred on them.

5. 360-Degree feedback360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive

appraisal where the feedback about the employees performance comes from all the

sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),

subordinates, team members, customers, suppliers/ vendors - anyone who comes into


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contact with the employee and can provide valuable insights and information or

feedback regarding the "on-the-job" performance of the employee

360 degree appraisal has four integral components:

1. Self appraisal2. Superiors appraisal

3. Subordinates appraisal

4. Peer appraisal

Self appraisal gives a chance to the employee to look at his/her strengths and

weaknesses, his achievements, and judge his own performance.

Superiors appraisal forms the traditional part of the 360 degree performance

appraisal where the employees responsibilities and actual performance is rated by the

superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like

communication and motivating abilities, superiors ability to delegate the work,

leadership qualities etc. Also known as internal customers, the correct feedback given

by peers can help to find employees abilities to work in a team, co-operation and

sensitivity towards others.

3.8 360-DEGREES FEEDBACK

METHODOLOGY

Questionnaire

360-degree feedback processes usually obtain data from questionnaires, which

measure from different perspectives the behaviours of individuals against a list of

competencies. In effect, they ask for an evaluation: how well does do? The

competency model may be one developed within the organization or the competency

headings may be provided by the supplier of a questionnaire. The dimensions may

broadly refer to leadership, management and approaches to work. The headings used

in the Performance Management Groups Orbit 360-degree questionnaire are:

Leadership;

team player/manage people;

Self-management;

Communication;

Vision;

Organizational skills;

Decision making;

Expertise;

Drive;

Adaptability.


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The leadership heading, for example, is defined as: Shares a clear vision and focuses

on achieving it. Demonstrates commitment to the organizations mission. Provides a

coherent sense of purpose and direction, both internally and externally, harnessing

energy and enthusiasm of staff.

Ratings

Ratings are given by the generators of the feedback on a scale against each heading.

This may refer both to importance and performance, as in the PILAT questionnaire

which asks those completing it to rate the importance of each item on a scale of 1 (not

important) to 6 (essential), and performance on a scale of 1 (weak in this area) to 6

(outstanding).

Data processing

Questionnaires are normally processed with the help of software developed within the

organization or, most commonly, provided by external suppliers. This enables the data

collection and analysis to be completed swiftly, with the minimum of effort and in a

way that facilitates graphical as well as numerical presentation. Graphical

presentation is preferable as a means of easing the process of assimilating the data.

Feedback

The feedback is often anonymous and may be presented to the individual (most

commonly), to the individuals manager (less common) or to both the individual and

the manager. Some organizations do not arrange for feedback to be anonymous.

Whether or not feedback is anonymous depends on the organizations culture themore open the culture, the more likely is the source of feedback to be revealed.

Action

The action generated by the feedback will depend on the purposes of the process, i.e.

development, appraisal or pay. If the purpose is primarily developmental, the action

may be left to individuals as part of their personal development plans, but the

planning process may be shared between individuals and their managers if they both

have access to the information.

DEVELOPMENT AND IMPLEMENTATION

To develop and implement 360-degree feedback the following steps need to be taken:

1. Define objectivesit is important to define exactly what 360-degree feedbackis expected to achieve. It will be necessary to spell out the extent to which it is

concerned with personal development, appraisal or pay.

2. Decide on recipients who are to be at the receiving end of feedback. Thismay be an indication of who will eventually be covered after a pilot scheme.


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3. Decide on who will give the feedback the individuals manager, directreports, team members, and other colleagues, internal and external customers.

A decision will also have to be made on whether HR staff or outside

consultants should take part in helping managers to make use of the feedback.

A further decision will need to be made on whether or not the feedback shouldbe anonymous (it usually is).

4. Decide on the areas of work and behaviour on which feedback will be given this may be in line with an existing competency model or it may take the form

of a list of headings for development. Clearly, the model should fit the culture,

values and type of work carried out in the organization. But it might be

decided that a list of headings or questions in a software package would be

acceptable, at least to start with.

5. Decide on the method of collecting the data the questionnaire could bedesigned in-house or a consultants or software providers questionnaire could

be adopted, with the possible option of amending it later to produce better fit.

6. Decide on data analysis and presentation again, the decision is ondeveloping the software in-house or using a package. Most organizations

installing 360-degree feedback do, in fact, purchase a package from a

consultancy or software house. But the aim should be to keep it as simple as

possible.

7. Plan initial implementation programme it is desirable to pilot the process,preferably at top level or with all the managers in a function or department.

The pilot scheme will need to be launched with communications to those

involved about the purpose of 360-degree feedback, how it will work and the

part they will play. The aim is to spell out the benefits and, as far as possible,

allay any fears. Training in giving and receiving feedback will also be

necessary.

8. Analyse outcome of pilot schemethe reactions of those taking part in a pilotscheme should be analysed and necessary changes made to the process, the

communication package and the training.

9. Plan and implement full programme this should include briefing,communicating, training and support from HR and, possibly, the external

consultants.

10.Monitor and evaluate maintain a particularly close watch on the initialimplementation of feedback, but monitoring should continue. This is a process

that can cause anxiety and stress, or produce little practical gain in terms ofdevelopment and improved performance for a lot of effort.


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ADVANTAGES:

The survey conducted by the Performance Management Group in 1997 (unpublished)

revealed that respondents believed the following benefits resulted from using 360-degree feedback:

a. Individuals get a broader perspective of how they are perceived by others thanpreviously possible.

b. Increased awareness of and relevance of competencies.c. Increased awareness by senior management that they too have development

needs.

d. More reliable feedback to senior managers about their performance.e. Gaining acceptance of the principle of multiple stakeholders as a measure of

performance.

f. Encouraging more open feedbacknew insights.g. Reinforcing the desired competencies of the business.h. Provided a clearer picture to senior management of individuals real worth

(although there tended to be some halo-effect syndromes).

i. Clarified to employees critical performance aspects.j. Opens up feedback and gives people a more rounded view of performance

than they had previously.

k. Identifying key development areas for the individual, a department and theorganization as a whole. Identify strengths that can be used to the best

advantage of the business.l. A rounded view of an individuals/teams/the organizations performance and

what its strengths and weaknesses are.

m. It has raised the self-awareness of people managers of how they personallyimpact upon otherspositively and negatively.

n. It is supporting a climate of continuous improvement.o. It is starting to improve the climate/morale, as measured through our employee

opinion survey.

p. Focused agenda for development. Forced line managers to discussdevelopment issues.

q. Perception of feedback as more valid and objective, leading to acceptance ofresults and actions required.


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DISADVANTAGES:

a. But there may be problems. These include:b.

People not giving frank or honest feedback;c. People being put under stress in receiving or giving feedback;

d. Lack of action following feedback;e. Over-reliance on technology;f. Too much bureaucracy.

360-DEGREE FEEDBACKCRITERIA FOR SUCCESS

360-degree feedback is most likely to be successful when:

1. It has the active support of top management who themselves take part ingiving and receiving feedback and encourage everyone else to do the same;

2. There is commitment everywhere else to the process based on briefing,training and an understanding of the benefits to individuals as well as the

organization;

3. There is real determination by all concerned to use feedback data as the basisfor development;

4. Questionnaire items fit or reflect typical and significant aspects of behaviour;5. Items covered in the questionnaire can be related to actual events experienced

by the individual;

6. Comprehensive and well-delivered communication and training programmesare followed; no one feels threatened by the process this is usually often

achieved by making feedback anonymous and/or getting a third-party

facilitator to deliver the feedback;

7. Feedback questionnaires are relatively easy to complete (not unduly complexor lengthy, with clear instructions);

8. Bureaucracy is minimized;9. 360-degree feedback is not limited to payits main purpose is developmental,

not financial reward.


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3.9 WAYS FOR IMPROVING PERFORMANCE APPRASIALS

1. Choosing the appraisal method: With the wide range of appraisal methodscurrently available, an organization is faced with the difficult task of selectingthe best approach to meet its need. Before selecting the method of appraisal to

be followed, we should examine two areas with special care.

a. Various factors that help or hinder the implementation of a particular appraisalprogramme.

b. The appropriateness of the appraisal method for the special job to which theappraisal system will apply.

2. Multiple raters: A rise in the number of appraisers increases the chances ofgetting precise and objective appraisal. If ten supervisors judge an employee

out of nine gives a positive appraisal and one negative, then the negative one

can be discounted. According to this method, the employees move around the

organization in order to get the feedback of all the supervisors.

3. Training appraisers: It is not always possible to get good raters. However,training can make an accurate appraiser. Workshops can be organized to help

the raters sharpen their rating skills by making them more observant and

perceptive.

4. Ongoing feedback: Most employees want to know how they are performing.If managers consistently interact with their subordinates and apprise themabout their performance, whether good or bad, and make suggestions as to

how they can improve their work, there will be no disappointment and

frustration at the time of annual appraisal.

5. Selective rating: it has been suggested that appraisers should rate in thoseareas in which they have significant job knowledge. If raters make evaluation

on only those dimensions on which they are in a good position, we increase

the inter-rater agreement and make the evaluation a more valid process.

6. Peer evaluations: Colleagues tend to give valuable insights to each others sothat all those who form a unit can perform competently.

7. Post-appraisal interviews: It is necessary to communicate to employees howthey have performed. To meet this need, managers must take the time to

schedule a meeting with their subordinates to discuss the results of the

performance evaluation. Employee need to know how they are doing, be

recognized for outstanding achievements and be notified about where their is

room for improvement.

8. Rewards to accurate appraisers: The managers who are evaluating mustperceive that it is their personal and career interests to conduct accurate

appraisals. If they are not properly rewarded for doing effective appraisals,

they will take easy way out by first trying to avoid the process entirely.


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3.10 LIMITATION OF PERFORMANCE APPRAISALS

1. Unclear Objective. An appraisal does not serve its purpose when the appraiser is

not clear about objective or aim of the appraisal leading to highlighting of irrelevantaspects of the employees performance and exclusion of crucial aspects.

2. Strictness or Leniency. Based on individual perceptions many appraisers are

either too strict or too lenient. This leads to imbalance in appraisal pattern in the

organisation. In an organisation an appraiser who is very strict may give five points

out of ten to an employee who deserving seven.

3. Central Tendency. This is opposite of strictness and leniency. An appraiser

having central tendency tends to avoid giving high or low points and instead rates all

employees as average. This leads to failure of appraisal system as all the employees,

good, bad and average, end up with same raring.

4. Biased Appraisal. It occurs when appraisal is influenced by individual

differences like age, sex, caste, race, personal likings/relations etc.

5. Halo Effect. The problem occurs when rating of one trait of the ratee is influenced

by the appraisers favourable opinion of some other trait. For example an employee

who is very well behaved may be rated high for sincerity even if he is actually not

very sincere. Another example of halo effect is that influenced by good or badperformance of an employee in one aspect of the job, an appraiser may rate him high

or low in other aspects of the job. Halo Effect also occurs when influenced by good

performance of an employee in the past the appraiser rates him high even though his

performance during the period of review was average or below average.

6. Pitch Fork Effect. This is exactly opposite of Halo effect. It occurs when an

employee who has performed well during the period of review is given low grading

because of his substandard performance in the past. Similarly because of poor

performance in one aspect, an employee may receive overall low grading or low

grading in other aspects as well.

7. Recency Error. Appraiser is supposed to honestly appraise performance of the

employee for the entire period of appraisal. However, at times, instead of giving equal

weightage to performance over the entire period, appraisal is influenced by

happenings/occurrences in the recent past. Such an error is called recency error.

8. Competitive Appraiser. Some appraisers compete with other appraisers in the

organisation in giving higher rating than others leading to excessively inflated

appraisals. Such appraisers are called competitive appraisers.


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CHAPTER4. ANALYSIS

4.1 Research problem

Statement of the Problem:

Performance appraisal is a process of assessing, summarizing and developing the

work performance of an employee. In order to be effective and constructive, the

performance manager should make every effort to obtain as much objective

information about the employee's performance as possible. Low performance can

push the organization back in todays tough competition scenario. The project is

aimed at analysing the performance appraisal in companies.

Objective:

The various objectives of our research are as follows:

To examine why an appraisal system is important. To study existing appraisal system in various organizations across sectors like

BPO, IT & Telecom.

To find the expectation of appraiser and appraisee To determine the satisfaction level of the appraisee To reveal the various loopholes in the appraisal system if any To find the consequences of an inappropriately conducted appraisal system

Research Methodology:

The data source: Primary as well as Secondary. The research approach: Survey Method. The research instrument: Questionnaire. The respondents: The Managers & Employees of various organizations.

The primary data was collected with the help of survey information. A concise

questionnaire was prepared keeping in mind the information specifications.


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4.2 Findings from Appraisee Survey

1. Expectations from Appraisal System :

From the above graph it can be seen that employees expect Assistance in goal to be

the main reason for conducting a Performance Appraisal. Guideline for training

plan is of least importance as per the appraisee.

2. Awareness about Responsibilities :

From the graph it can be seen that majority of employees are aware about their

responsibilities, which implies that the appraisers have efficiently communicated to

the appraisees all the parameters that will be taken into account during appraisal

0 1 2 3 4 5 6

An insight into your strengths

Guildeline for training plan

Assistance in goal

Determination of promation or

Salary administration and

Series 1

85%

15%

Awarness about responsibility

YES

NO


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3. Satisfaction Level among appraise regarding Appraisal System :

From graph it can be seen that majority of the respondents are satisfied with the

appraisal system.

4. Awareness about performance ratings :

This clearly shows that majority of the employees are aware about the performance

ratings that are taken into account while conducting a performance appraisal.

72%

18%

10%

Satisfaction level

Fully Satisfied

Partial satisfied

Dissatisfied

82%

18%

Awarness about performance rating

YES

NO


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5. Credibility of Appraiser

This shows that according to the employees/appraisees the credibility of the appraiser

is extremely important and it has an effect on the overall Performance appraisal

program.

6. Complaint channel for employees

This shows that there is no proper complaint channel existing in the organisations for

the employees who are dissatisfied with the performance appraisal system.

90%

10%

Credibility of appraiser

YES

NO

70%

30%

Complaint channel

NO

YES


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7. Standards communicated to employees

From this it can be seen that there is a clear majority among the employees who say

that the standards on the basis of which the performance appraisal is carried out is notcommunicated to the employees before hand.

8. Performance Appraisal

Almost all the Performance Appraisals are carried our by the Immediate Supervisor in

these organisations. In very few organisations, Rating committees carry out the

performance appraisals. None of the organisations use Peer Appraisals, Appraisals by

subordinates and Self rating as a method of Performance Appraisal.

85%

15%

Standards communicated to employee

YES

NO

81%

9%5% 5%

Performance appraisal

Immediate supervisor

Self rating

Peer appraisal

Subordinates


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9. Clear understanding of Appraisees job

This shows that the performance Appraisal programs are successful in giving a clear

understanding of the appraisees job to both appraiser and appraisee.

10.Good communication between top management and business goals

This shows that the appraisal systems do not provide a good communication flow of

the top-management plans and business goals to the staff below.

80%

20%

Clear understanding of the appraisee's job

YES

NO

90%

10%

Communication of the goal

YES

NO


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11.Comments and suggestions to be considered

Almost all the employees expect that their comments and suggestions should be taken

into consideration while conducting the Performance Appraisal.

12.Need to change or replace the existing performance evaluating system.

As per the response from the employees we can see that the majority of the employee

wants to cahnge or replace the perforamance evaluation procedures.

70%

30%

Comments and suggestions to be considered

YES

NO

65%

35%

Change/replace the existing system

YES

NO


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CHAPTER 5. CONCLUSION AND RECOMMENDATIONS

1. From the survey results its evident that the expectation from Performanceappraisal system helps in determining the goal and evaluating the strenghtsand weakness. Hence a single performance appraisal system can satisfy needs

of both the Appraiser and appraisee. Therefore the Performance appraisal

program would be designed in such a way that the appraiser would be able to

analyse the contribution of the employee to the orgaisation periodically and all

the employees who have been performing well would be rewarded suitably

either by an increase in the salary or a promotion. Through this the appraiser

can also motivate the employees who felt that they had no growth in the

organisation and serves the purpose of employee development.Thus

performance appraisals can be used as a significant tool fo career lanning.

2. Analysing ones own strengths and weaknesses is the best way of identifyingthe potentials available, rather than the other person telling. Self-appraisal is a

tool to analyse oneself. One of the most important findings was that almost all

the employees wanted self-rating to be a part of performance appraisal

program carried out by the organisation. From the responses of the appraiser

we can also see that Self rating is not encouraged by the organisations. This

could therefore be an important factor which leads to dissatisfaction among

the appraisees. To appraise ones own self on key performing targets andqualities, the appraisee would go through a process of reflection and review. It

is an established fact that change is faster when it is self initiated. If any

employee has to improve or do better, he must first feel the need to do so.

3. The existence of a proper complain channel was also of utmost importance tothe appraisees. They should be given a chance to convey their greviences to

the top management.

4. The appraisees also expect that their comments and suggestions should betaken in to account while conducting the appraisals. This expectation is not

fulfilled as the appraisers do not take their comments and suggestions into

consideration. Therefore they should look into this matter before it leads to

dissatisfaction among the employees.


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5. The results also indicate that the there is no communication of topmanagement plans and business goal to the appraisee. The appraisers on the

other hand feel that the goals and plans have been clearly communicated to the

appraisees. Communication is very essential for any system to function

efficiently. Therefore the appraisers should look into this matter and see to itthat the goals and plans are communicated effectively.

6. The findings suggest that for success of Appraisal system the credibility ofappraiser is of utmost importance.

7. As per the Appraiser, a poorly conducted appraisal system would lead todemotivation and ineffective teamwok which will result in inefficient

functioning and low productivity in the organization. Therefore, if at all they

feel there is dissatisfaction among the appraisees they should motivate them.

Achievement, recogntion, invelvement, job satisfaction and development can

motivate the employees to a large extent. Along with this satisfactory working

conditions and appropraite awards also play an important role.

8. Also a majority of employees were satisfied with the current appraisal systemalthough they requested for some changes.

9. Most of the employees were also not clear about the criteria on which ratingswere given to each employee while conducting the performance appraisal.

Instead of secrecy there should be openess. Because of lack ofcommunication, employees may not know how they are rated. The standards

by which employees think they are being judged are sometimes different from

those their superiors actually use.

10.Most of the employee feels that performance appraisal procedure helps ingiving a clear understanding in appraisers job and goal of the orgainisations.


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CHAPTER 6. SUMMARY

With rewards being directly linked to achievement of objectives, goal setting and

Performance Appraisal assumes utmost importance. The Performance Appraisal

System has been professionally designed and it is monitored by HRD.

The implementation is the responsibility of each and every employee along with their

supervisor. There should be adequate training to the evaluator that will go a long way

in answering the quality of Performance Appraisal.

In conclusion, a Performance Appraisal is a very important tool used to influence

employees. A formal Performance review is important as it gives an opportunity to

get an overall view of job performance and staff development. It encourages

systematic and regular joint-stocking and planning for the future. Good performance

reviews therefore dont just summarize the past they help determine future

performance.


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APPENDICES

1. QUESTIONNAIRES

Questions for Appraisee

Name: __________________________

1. What do you expect from a Performance appraisal :(Rank the options from 1 to 6; 1 being most preferred & 6 being least preferred)

Detail Rank

Salary Administration and Benefits

Determination of promotion or transfer

Decision on layoff

Assistance in goal

Guideline for training Plan

An insight into your strengths and weakness

2. Do you know what exactly is expected from you at work?a. Yes b. No

3. Are you satisfied with the appraisal system?1 2 3 4 5

(1 = Least satisfied; 5 = Most satisfied)

4. Are you aware of performance ratings?a. Yes b. No

5. Does the credibility of Appraiser affect the Performance Appraisal System?a. Yes b. No

6. Is there a complaint channel for the employees who are dissatisfied with theperformance appraisal system?

a. Yes b. No


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7. Are the standards on the basis of which the performance appraisal is carried outcommunicated to the employees before hand?

a. Yes b. No8. Who conducts the performance appraisal?

a. Immediate supervisorb. Peer appraisalc. Rating committeesd. Self-ratinge. Appraisal by subordinates

9. Is the performance Appraisal successful in giving a clear understanding of theappraisees job to both appraiser and appraise?

a. Yes b. No10.Does the appraisal system provide a good communication between the top-

management plans and business goals to staff below?

a. Yes b. No11.Do you want your comments and suggestions to be taken into consideration during

appraisal?

a. Yes b. No12.Do you think that there is a need to change/replace the existing performance

evaluating system?a. Yes b. No


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BIBLIOGRAPHY

BOOKS:

1. Dr P G Aqunias.Human Resource Management: Vikas Publication House Pvt.Ltd, 2011

2. Michael Armstrong. Handbook of Human Resource Management: KoganPage Limited, 2006

3. Ratnam, C.S.V. & Srivastava, B.K.Human Resources. New Delhi: TataMcGraw-Hill, 1992.

4. Sarathi, P.Human Resource Development. New Delhi: Tata McGraw-Hill,1998.

WEBSITES:

1. www.citehr.com2. www.gsmpress.com3. www.humanresourse.about.com4. www.karbonnmobile.com5. www.nukrihub.com6. www.openlearningworld.com7. www.performance-appraisal.com8. www.performance-managemnet.com9. www.voicendata.ciol.com10.www.wikipedia.com

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