INTRODUCTION Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the human capital and by developing the capabilities of teams and individuals within that organization (Armstrong and Baron, 2000). The process of performance management therefore focuses not only with ‘WHAT’ is produced but, also ‘HOW’ it is produced. It seeks to ensure that what has been produced is in line with the organization’s needs and these products have been produced in line with the organization’s way of doing things. Performance management can be achieved through many different ways. These include performance appraisal system and coaching. Performance appraisal system can be described as a fairly old system of measuring employees’ performance that has been in use in many organizations. However, Performance appraisal has not brought in the amount of positive results that was expected of it. Armstrong and Mulis (1994:86) quoted one manager 1
Transcript
INTRODUCTION
Performance management can be defined as a strategic and integrated approach to
delivering sustained success to organizations by improving the performance of the
human capital and by developing the capabilities of teams and individuals within that
organization (Armstrong and Baron, 2000). The process of performance management
therefore focuses not only with ‘WHAT’ is produced but, also ‘HOW’ it is produced.
It seeks to ensure that what has been produced is in line with the organization’s needs
and these products have been produced in line with the organization’s way of doing
things.
Performance management can be achieved through many different ways. These
include performance appraisal system and coaching. Performance appraisal system
can be described as a fairly old system of measuring employees’ performance that has
been in use in many organizations. However, Performance appraisal has not brought
in the amount of positive results that was expected of it. Armstrong and Mulis
(1994:86) quoted one manager describing performance appraisal as “a dishonest
annual ritual”. The question that arises then is: “If Managers (the custodians of the
system) do not have confidence in their own system, what more employees (who
happen to be victims of the system)?”
The meaning of the word “appraisal” is “to fix a price or value for something”. This is
used in finance in terms such as project appraisal or financial appraisal where a value
is attached to a project. Similarly performance appraisal is a process in which one
values the employee contribution and worth to the organization.
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Performance appraisal can be defined as a system of measuring employee’s
performance relative to the assigned or agreed objectives. The process starts with the
supervisor and or with the subordinate agreeing on specific objectives that need to be
met on an agreed time period. The objectives that are used in the Performance
appraisal stem from the main organizational objectives that are reduced to
Departmental goals and now to individual goals.
The performance appraisal system has to be transparent and the employee should be
taken into full confidence. In many cases employees themselves are given a chance to
conduct a self-appraisal. Performance appraisal is a case of joint problem solving by
the organization and the employee. However the organization must also take care of
future potential and not get bogged down by current performance.
Normally the immediate supervisor does the appraisal. Some organizations also have
a peer group performance appraisal where colleagues rate the performance.
The HR person must also ensure that line managers are properly trained for carrying
out the appraisal including interviewing techniques and on how to give feedback. The
managers must also be trained to look at the cases objectively outside of their personal
opinion of the candidate.
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COMPANY PROFILE
Jindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection
of Pre-Engineered Metal Building Systems. The Group is well known in the Middle
East & India for the quality of the products and services offered. In 1998, Jindal
Brothers Pvt. Ltd started its journey in India by setting up State of Art manufacturing
facility at Manesar, Gurgaon. Design and Detailing work is carried out by highly
skilled Engineers with computed aided design and drafting facilities at the Company’s
Head Office at New Delhi. Their objective is to deliver cost effective, quality Pre-
Engineered Metal Buildings within agreed time schedules to their Customers. Jindal
Brothers Pvt. Ltd. maintains high degree of professionalism at all levels, a
commitment needed to maintain highest possible standards. Every project is executed
with Micro Planning, to achieve the Milestones set out in the contract. This combined
with quality of their products has earned us reputation in the Market Place. Corporate
giants, both National and Multinational, have complimented their strategy of
providing single point responsibility for Supply and Erection with highly motivated
and trained In House Project Management Team to handle projects, whether it is
small or big, simple or complex. More than 500 Pre-Engineered Buildings have been
installed across the length and breadth of their Country. This experience corroborates
their claim. Regional / Area offices across the Country are fully equipped to provide
pre-order and post order service to their valued Customers. Organizational
effectiveness depends upon the level of performance of its employees. Hence the level
of performance has to be ensured. Periodic stock taking of the qualitative state of the
man power is of vital importance to an organization and the organization tries to
collect the relevant data through the tool of performance appraisal reports. Thus
performance appraisal is essential for performance effectiveness and efficiency of the
organization and also for carrying out administrative decisions regarding human
resources. The correctness of the decision will depend heavily upon the validity of the
data gathered through appraisal system.
The JINDAL BROTHERS is a relatively an older organization and has been
restructuring its Human Resources Systems and Policies in alignment with the current
business environment. I have therefore taken up this project with an aim to study the
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existing system of performance appraisal so that this might help other organizations to
follow the same.
Services
Pre-Engineered steel buildings are designed and fabricated to client’s requirements in
accordance with the Universal standards. A pre-engineered steel building consists of
four major groups of components namely primary members, secondary members,
metal roofing/wall cladding and connection fasteners. These components are designed
that they are compatible with each other. The fabrication of these components is
carried out in factory under strict quality control as per detailed shop drawing. These
components are transported to site with proper markings and assembled at site as per
erection drawings.
Knowledge Hub / Brain Ware
They call this the knowledge Hub, a world class Design & Engineering Office
manned with team of experienced professionals and equipped with latest sophisticated
design tools which distinguishes Jindal Brothers Pvt. Ltd. from others.
Stadd Pro, MBS, AUTOCAD, Primavera, MS Projects are among the few
Engineering & execution tools in use at Jindal Brothers Pvt. Ltd. that delivers the
fastest solution at the best of engineering practices applied in a true international
design environment.
The Brain House offers intelligent engineering solutions and supports post order
functions with general arrangement, fabrication and erection drawings. The
computerized drafting, detailing and logic programs enable user friendly details to
simplify manufacturing process and erection methods.
The Jindal Brothers Pvt. Ltd. knowledge archives has vanity of standards and design
codes such as AISC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to
suit customer’s need of a Pre-Engineered building at any place or country.
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The Jindal Brothers Pvt. Ltd.’s consistent efforts in research & development and
global sourcing of material have positioned the Organization as a lead runner in
introducing innovative ideas and products in the market place.
Manufacturing Facility:
Their State-of-the-art manufacturing facility is located at Manesar. It houses
special equipments to produce quality pre-engineered buildings such as:
Automatic Beam Welding Line
Plate Shearing Line
Radial Drilling Machine
Cold Roll Forming Line
Hydraulic Press Break Line
Automatic Shot Blasting Line
The welding process is as per American Welding Society Standards. (AWS).
All welders are qualified to required standards.
Well defined process on the shop floor ensures smooth flow of material and
productivity.
All structural components to complete Pre-engineered building are produced
in-house and go through stringent quality checks prior to dispatch.
All major raw materials and bought out items are sourced from a Panel of
approved supplier to ensure quality and timely supplies.
and Thomas Cook are all using this tool to find out truths about their managers.
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Although deployed mostly as a fact-finding technique, 360 º appraisals are also used
to design promotion and reward system in the organization.
Concept of 360º Appraisal
According to Milliman and others, “360-degree appraisal is the process of
systematically gathering data on a person’s skills, abilities and behaviors from a
variety of sources –the manager, peers, subordinates and even customers and clients”.
Thus, appraisal of an employee is done by his superior, his peers, his subordinates and
clients or outsiders with whom he interacts in the course of his job performance. In
360-degree appraisal, besides appraising the performance of the assesses, his other
attributes such as talents, behavior, values, and technical capabilities are also
appraised.
Besides the employee himself, superior, subordinates and peers play an important role
in the appraisal. Structured questionnaires are used to collect responses about the
employee from his superiors, peers and subordinates. Several parameters relating to
performance and behavior are used in the questionnaires. Each manager is assessed by
a minimum of fifteen colleagues, at least two of them being his bosses, four of them
peer, and six of them subordinates. Even the important customers or clients of the
firm may also be requested to give their assessment of the concerned employee. The
responses are presented collectively to the assesses in the form of charts and graphs.
Comments and interpretations are presented later. Counseling sessions are arranged
with the employee to remove the weaknesses identified in the 360 degree assessment.
Merits of 360º Appraisal
The merits of 360º appraisal are as under:
(i) The 360 degree appraisal leads to greater self-awareness of those appraised. It
reveals strengths and weaknesses in their working styles.
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(ii) The gap between self assessment and the views of one’s colleagues of peer
group in reduced.
(iii) It facilitates empowerment of subordinates who get a say in the appraisal of
their bosses.
(iv) Inflexible managers are forced to initiate self-change.
(v) Facts about organizational culture and ambience are brought to light by the
multiple appraisals.
Limitations of 360º Appraisal
The system of 360º appraisal suffers from the following limitations:
(i) The 360 degree appraisal system ignores performance in terms of goals.
(ii) The candidate being appraised may not accept negative feedback from the
subordinates and peers. He might feel humiliated.
(iii) Responses from colleagues often tend to be biased.
(iv) Linking rewards to findings under 360 degree appraisal can prove to be unfair.
(v) The subordinates and peers might not be fully competent in appraisal.
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Guidelines for Better Use of 360º Appraisal
The use of multisource appraisal can be effective if the following guidelines are
followed:
(i) Involve people. Ask them who should serve as raters, and give them an
opportunity to review and interpret the results. This will strengthen their
commitment to both the overall process and the specific decisions.
(ii) Ensure that relevant data are being collected. Focus on behaviors and
outcomes that raters are capable of observing and are competent to evaluate.
(iii) Ensure that no single rater can dramatically affect the outcome. Use a large
enough sample or eliminate the highest and lowest scores to ensure that no one
rater can skew the data.
(iv) Train raters in what and how to observe. The better people understand what
they look for and how to record”critical incidents” (specific things the person
said and did that can be used as examples to support their ratings, and better
the quality of the information that will be collected.
(v) Ask raters to support their evaluations. Whenever possible, raters should
discuss their observations and evaluations with other raters. These discussions
should trigger thoughts and combat selective memory. Raters should also be
required to provide a rationale for their rating to other raters. This would
prevent people from using the process to act on personal grudges.
(vi) Move slowly and start small. Any organization considering using 360 º
feedbacks in the appraisal process should begin by using it for development
purpose only and then gradually to make it a part of appraisal system. Even
then, the focus should be on the goal-setting portion of the appraisal. People
need to get comfortable with the idea of multisource feedback as a
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development tool before they can accept it as part of the formal performance
management process.
A lot of organizations seem to be hurrying to integrate 360º feedback into the
human resource management system. Multisource feedback really does have the
potential to enhance human resource management system. However, 360º feedback
won’t fix a system that does not work.
(vii) Develop a culture that supports open feedback. Not surprisingly, 360º
feedback works best in companies where the environment is participatory
rather than authoritarian, where giving and receiving feedback are the norm
and are seen as valuable sources of information. If the current system (where
only the supervisor does the appraisal) is not working due to lack of straight
talk and hesitancy to give direct feedback, it is essential to introduce openness
in the organization.
(viii) Clear and agreed on performance measures and behaviors. When 360º
feedback is used for development only, the organization may be able to settle
the list of behaviors and skills that have reasonable face validity and general
support: “coaching” or “team building”, for instance. However, when the
feedback is being used to determine performance ratings, the result and
behavior for which people are held accountable must be clear, unambiguous
and specific.
(ix) The users must support the system and be willing to invest the time required to
make it work. The introduction of 360º feedback makes an already time-
intensive appraisal process even more demanding. It means more data to
collect and more information to process for the additional feedback.
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(x) Sound feedback process. While the way the data are collected and presented
are always important, two aspects of sound 360º feedback procedure are
particularly relevant when the data are used for appraisal purpose: the validity
and reliability of the practices for which people will be measured and the
confidentiality of the raters.
Elements of 360º Appraisal Program
The elements of 360º appraisal program are as follows:
(i) Appraisal by Superior/ Boss. This is the most important element of the 360
degree appraisal. Here the focus is to provide constructive feedback on
employee’s performance and his development needs. It is the responsibility of
the superior to ensure that employee sets goals not only in the area of business
performance but also in the areas that are vital to the organization. These are
called corporate thrust areas and may include relationship management, safety
and quality development. If the working style of the employee is a concern
area and needs improvement for enhancing effectiveness then goal may be set
for “style of functioning” such as, from short-term to long-term orientation.
It is expected of the superior to put career aspirations of the employee in proper
perspective. Firstly, superior must communicate to the employee in a clear way
what the organization plans for the employee. Secondly, if the employee has
unrealistic aspirations, then also it is superior’s responsibility to share with the
employee the realistic picture given his/ her strengths, development areas,
experience, qualifications, and the organization’s ability to provide growth. This is
how the superior’s appraisal has a very significant role to play.
(ii) Appraisal by the Peer Group. The peers play an important role in the life of an
employee in the organization. The can also provide a deep insight into the
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personality make up, attitude and style of working of the employee. For better
results, it is essential to select the right peers for the purpose of appraisal. They
must include peers both from within the department as well as from the other
departments, which are directly connected with the working of employee’s
department. The concept of internal customers comes handy here. Three to
five internal customers should normally be chosen for peer appraisal.
In order to achieve the purpose of 360º appraisal, the peer group appraisal must
strive to get the feedback on (a) employee’s working style, (b) sensitivity towards
others, (c) spirit of co-operation and collaboration, and (d) ability to work as a team
member.
(iii) Appraisal by the Subordinates. Another distinctive feature of 360º appraisal is
the role of subordinates in appraisal. It signifies two things. Firstly, it is a clear
expression from the organization that it encourages openness and that
feedback is a two-way process. Secondly, it is a systemic recognition of the
fact that an employee’s subordinates do play a vital role in his appraisal. Thus,
the purpose of subordinate’s appraisal is to get first hand assessment of how
the subordinates perceive their superior to be in terms of: (a) delegation of
authority, (b) guiding and training of subordinate, (c) motivation of
subordinates, (d) team building, etc.
Upward appraisal provides an opportunity to the subordinates to give feedback to
their superior on the kind of things they would like him/ her to continue doing
(status quo), things they would like him/ her to stop doing (areas for corrective
action), things they would like him/ her to start doing (areas for new initiatives).
(iv) Self Appraisal. Any program of 360º appraisal would not be complete without
self appraisal by the employee whose performance is being appraised. Self
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appraisal facilitates the employee to identify his/ her strengths and weaknesses
and provides an opportunity to assess the performance. In a well established
system, employees use the self appraisal very effectively and organizations
also find that employees often are their own strongest critics and display very
high degree of objectivity. Self appraisal also provides an opportunity to the
employee to express his career moves for the future. However, this is only for
gathering information and that under the given organizational constraints, it
may not be possible to provide the career progression desired by the
employee. Nevertheless, it is in the organization’s interest to at least know on
a first hand basis the aspirations of its employees.
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FINDINGS AND ANALYSIS
Organization Structure and Design
1- Jindal Brothers is a young, dynamic organization and is going strong on the
stock market.
2- The company is well aware of the dynamic environment of software, it is
operating and in order to keep it with the pace of the environment it believes
in constant up gradation of courses. Organization structure and design of the
company is such that it supports this change.
3- Jindal Brothers has a matrix kind of a structure wherein it takes the form of
combination of structures. Matrix structures are adopted became there is more
than one factor around which the structure can be built.
4- This matrix structure at Jindal Brothers improves the quality of decision-
making where interest conflicts arise and direct contacts replaces bureaucracy
5- . This increases the motivation of the managers and development of wider
involvement in strategies. Although at times the company faces high risk of
dilution of priorities became e people do not know who is responsible for
what.
6- An organization is a network of authority, responsibility and relationships.
Different organization structure consists of different type of relationships.
Line Organization
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It is the traditional type of organization. It refers to a direct chain of command from
top to bottom. In the line organization the lines of direction are straight and vertical.
Authority and responsibility flow vertically in an unbroken straight line from one
level to another. Every superior has complete command over his subordinate and
every subordinate has to report his work to only the senior or to the level above his
own level.
Staff Organization
Staff may be of three types:
Personal Staff:
It consists of personal assistants attached to individual line executives. Personal staff
is employed to carry out those responsibilities of an executive, which he cannot or
does not want to delegate to others.
Specialized Staff:
It consists of specialists in different functional areas e.g. personnel, accounting, legal
and public relations etc. A specialized staff department serves as a fountainhead of
expertise for the entire concern.
General Staff:
It includes a group of experts attached to the central office and it provides general
advice mostly to the top management.
Complaint Handling
As part of the process for capturing customer complaints and acting on them, Jindal
Brothers has procedures that ensure that each customer complaint is captured,
recorded and reported as part of a formal review system. The process includes related
activities such as escalation of a problem, tracking each complaint to closure, and
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creating new procedures (or modifying existing ones) to prevent similar problems
from repeating in the future.
Employee Excellence At Jindal Brothers they believe that they can build a world
class structures. Their vision document, which drives each employee as well as the
organization itself, reflects Jindal Brother's commitment towards customers and
employees. Starting from the recruitment process and culminating in annual reviews,
Jindal Brothers has quality processes for tracking and maintaining quality standards.
Recruitment
For recruitment, Jindal Brothers administers various tests to the applicant. These
include aptitude tests, IQ tests, management tests, and personality tests. Each of the
tests captures different information about the individual so that Jindal Brothers can
ensure that the person is appropriate for the job and will fit into the company culture.
Goal Setting Before starting on the job, employees discuss their role and
responsibilities with their supervisors. This results in the setting of goals and
objectives for each individual for the coming year. This process clarifies the
expectations from each individual during the year. Each employee is expected to
monitor his/her goals by filling in a focus report every month, which is then discussed
with the supervisor.
Training
Jindal Brothers recognizes the fact that the skills of employees need to be upgraded
constantly. Jindal Brothers trains each and every employee continually through the
year. In fact, Jindal Brothers has one of the highest training days per employee in the
world: each Jindal Brothers employee receives over 11 days of training each year.
Jindal Brothers has an employee training division which conducts in-home e,
residential training programs exclusively for Jindal Brothers employees.
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PERFORMANCE APPRAISAL AT JINDAL BROTHERS
While on the job, performance reviews of every employee are done every quarter. The
reviews are done with a view to helping the individual excel at his/her workplace. In
case there are any training requirements, these are noted and acted upon in the coming
quarter. Also, the goals and objectives for the employee are re-visited for
The performance appraisal mechanism is carried out at Jindal Brothers for
promotional purposes
These are done so as to motivate the employee and improve his performance level.
The method is as follows:
a) Establishment of performance standards with the employees
b) The goals are set mutually as per measurable standards.
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c) The actual performance is hence measured.
d) After measuring of the actual performance, the same is compared with the
standards set
e) The appraisal is then discussed with the employees.
f) And finally, if need arises corrective action is initiated. For this purpose the
corrective action is actually identified through brainstorming exercises
initiated by the departmental heads at all the Jindal Brothers. It is then
measured as a tool to evaluate the past performances of the employees.
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Some of the methods used at Jindal Brothers are:
1. Key Performance Index
2. 360 Degree Feedback
3. Paired Comparisons
4. Behaviorally Anchored Rating Scale
1. KPI-Key Performance Index
It is based on the performance level of the employee generally classified on the basis
of:
Targets achieved
Ratings through students’ feedback forms
Punctuality and regularity
Day to day performance
This is given after every module at the centers.
Thus we can observe that the appraisal system is not a biased one but based on
performance and productivity basis. All the respective heads of the employee together
with the senior persons at the center brainstorm and then give the promotion.
2. 360 Degree Feedback
This feedback system involves the participation of:
Coworkers – 40%
Subordinates - 20%
Superior - 40%
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Thus the feedback given by these members at Jindal Brothers is considered under a
holistic view and then the employee is given a performance appraisal. This evaluation
method involves 40% feedback from the coworkers which says that the employee
should not only maintain good rapport with the senior or junior but majorly with the
coworkers also.
3. Paired Comparisons
The evaluator compares all possible pairs of subordinates on their overall ability to do
the job. Due to the subjectivity of evaluating overall performance some managers me
e a number of different job related dimensions when comparing.
4. Behaviorally Anchored Rating Scale (BARS)
It is a sophisticated method of evaluating the employee based on the employee
behavior. It is a numerical scale that is anchored by the seniors of the organization at
various centers. This is highly confidential and the information is sent in sealed
envelopes and opened only at the time of the final evaluation. There is no further
discussion regarding this scaling, thus it is not given enough weightage.
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SURVEY FINDINGS
In this section, basic data for a group of 100 employees from lower, middle, senior
and top managers is presented on various attributes of performance appraisal.
Frequency and frequency percent scores were computed for each of the groups of the
entire selected variable.
1. Finding through the Questionnaire
Through the questionnaire it was found that promotions were and known to most of
the top and senior management while middle and lower management were a bit not
clear about it. This could be attributed to the fact that senior and top management
were more involved in decision making and policy formulation than are the middle
and lower management.
Same reason could be attributed to the fact that code 1 managers were absolutely clear
of what was expected out of them every year, whereas 50% senior management ware
clear or partly clear about the same and the about 20% of middle management were
not clear about it and still further, the 71% of lower management was not aware of
what was expected out of them every year.
85% of code 4 employees said that they could express their reason of failure. The
responses of 50% of Middle Managers were bit favorable whereas 100% senior
management also thought that they did not get the opportunity to express their cause
of failure. The 60% of top management were portly able to express their cause of
failure. This may be because the appraisal system is more of less performance based
and human factor is by and large overlook. Whereas, at the lower levels of the
organization, performance can be quantified, and the managers are made accountable
at the higher echelons the tasks are too complex and therefore cannot be assessed on
the basis of quantified performance and therefore the top and senior management
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believed that the promotions are also for motivation whereas the attitude wanes as the
level of hierarchy goes up. This is probably because of the appraisal of performance
based on the quantity or results. If the employee’s output is good of better they get
promotions and also get motivation to achieve better performance. At the higher
levels the results are more of subjective nature therefore promotions does not accrue
on the basis of quantified results only.
Most of the managers feel that the mechanism for potential appraisal is not adequate.
This may be, because the training programmers are also not developed.
As far as feedback is from superiors is concerned, most of the top and senior
management were of the view that they constantly receive feedback. This is because,
they take decisions crucial to the existence of the organization and therefore are
closely watched and monitored as compared to the employees in the lower & middle
levels.
Again the top management felt that they with their superior decide about their job but
100% of senior management did not feel the same at all. This is because again due to
power centeredness and power difference in the organization, being a tall organization
the superior are not accessible to their subordinate.
60% of lower management thought that their creativity was definitely not adequately
recognized whereas the top management believed that the organization encouraged
creativity. This highlights the gap of communication in the organization and
differences in the perception of culture in the organization by different grades of
employee. 70% of lower management thought that the system was not free from
biases and same is felt by most of the middle, senior and top management. This shows
that human instincts and behaviors influence the performance appraisal system.
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60% of lower management was not clear about the goals and objectives of the
organization. Most of top management thought that they were clear or very clear,
about the organization goals. This is because, the power distance is extent and
communication system of the organization is not very effective. This also shows that
transparency is lacking in the system.
70% of lower managers thought that the performance appraisal system did not
identify their training needs. 80% of senior managers also thought the same. But the
view of top management differed in the sense that they felt that the system helped
them surface their training needs. The reason being that the training programmes are
not fully developed and are not constantly evaluated in the organization. The top
management felt that there was a scope of super review. The senior management also
felt a bit the same but lower and middle management keep attending meetings and had
already developed rapport with their superiors and so could easily talk out their
appraisal results whereas this is not so for lower and middle management. They are
not able to approach their senior easily and are therefore could not appeal for super-
reviews.
60% of lower managers said that they do not get opportunity for self review and
reflection. This is because performance appraisal is lacking human touch to it. The
appraisals are entirely based on performances, overlooking the cause of successes and
failures. The appraisal system thus does not meet individual’s developmental needs
and also does not contribute to employee’s job satisfaction and moral development.
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2. Findings from Observation and Discussions
The organization believed that self appraisal is the best for managers and above.
To improve interpersonal communication and behavior assessment by peers and
subordinates is essential.
The performance of the employees is not regularly monitor and the required feedback
is provided to the subordinates from time to time. The appraisals are conducted at
fixed intervals. The organization believes in using appraisal for rewarding and
increments.
There was a neither formal nor informal discussion on job specification and tasks to
be accomplished for various departments.
There was no formal performance appraisal taking place till now in the organization.
There fore, there were no written records of such activity in the personal files of the
employees. However people were being appraised informally by the superiors and got
promoted or incremented accordingly.
It would not be wrong to say that interpersonal relations and personal biases (i.e.
liking and disliking influence the appraisals in the organization).
The management is in the process of restructuring and developing such policy in the
organization
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ANALYSIS & INTERPRETATION
This chapter deals in tabular presentation results and their analysis for the purpose of
easy reading the section has been divided into two parts.
Tabular form of Response
Inference
Remarks on each question
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1. In your company, the key competencies required for each job are already identified?
Response Category No. of responses Percentage
Very true 0 0
True 4 8
Partly true 9 18
Not true 37 74
Inference: Most of the respondents (74%) found the above statement to be ‘Not
True”. This was followed by 18% of the respondents feeling that this statement was
‘Partly True’ for their organization. Only 8% of the people found it to be ‘True’.
Remarks: Although the appraise does not have a clear understanding of what is
expected of him at the beginning of the year (Inference I), both he and the appraiser
know what his job is all about. This also shows that although an employee knows
what his current to do to be rated higher by the reporting officer. The responsiveness
in category of Partly True and Not True may be due to the face that job content in
Jindal Brothers is flexible and not well defined and some people find it difficult to
define their jobs. However, most of the people have a general idea of the scope of
their jobs.
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2. There are mechanisms that help employees develop their potential for the next round of job?
Response Category No. of responses Percentage
Very true 0 0
True 5 10
Partly true 25 50
Not true 20 40
Inference: Quite a large number of respondents (40%) shared the view that the
appraisal system did not give a clear understanding of all appraisals, job to both
appraiser and appraise by saying that it was ‘Not True’. Only 50% and 10% of the
respondents felt that the statement was ‘True’ and ‘Partly True’ respectively.
Remarks: Although the appraise does not have a clear understanding of what is
expected of him at the beginning of the year (Inference I), both appraisee and the
appraiser know what his job is all about. This also shows that although an employee
knows what his current to do to be rated higher by the reporting officer. The
responsiveness in category of Partly True and Not True may be due to the face that
job content in Jindal Brothers is flexible and not well defined and most people find it
difficult to define their jobs. However, most of the people have a vague idea of the
scope of their jobs.
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3. Employees regularly receive feedback about their potential for higher level
jobs?
Response Category No. of responses Percentage
Very true 0 0
True 8 16
Partly true 7 14
Not true 35 70
Inference: 70% of the respondents agreed that the appraisal system did not helped
them to know their potential to perform at higher levels. Plan their performance well
by saying that it was ‘Not True’. Only 16% and 14% people felt that this statement
was ‘True’ and ‘Partly True’.
Remarks: The above inference shows that the PA system in Jindal Brothers does not
give feedback about ‘planning for performance’ to its employees. It helps anticipating
work needs in order to arrange work in logical order. It also helps in devising efficient
methods to attain pre-determined plans. Again due to flexibility in job content, some
people may have found problems in planning their performance systematically.
42
4. Job rotation is practiced widely to help people develop their potential in new areas?
Response Category No. of responses Percentage
Very true 7 14
True 18 36
Partly true 25 50
Not true 0 0
Inference: About 50% of the respondents felt that the above statement was ‘Partly
True’. It was followed by 36% people feeling that it was ‘True’ with 14% believing
that it was ‘Very True’.
Remarks: Job rotation is the most economical way of providing training to the
employees. It facilitates both organization and individual development. Job rotation
gives an individual hand on experience for carrying out various different functional
activities. The performance appraisal system should include this process in the
training need identification performance.
43
5. The appraisal system provides an opportunity for self-review and reflection?
Response Category No. of Responses Percentage
Very true 0 0
True 0 0
Partly true 13 26
Not true 37 74
Inference : There is a general agreement on then fact that the PA system in
Jindal Brothers does provide ample opportunity for self-review
and reflection. 74% of the people felt that it was ‘Partly True’ with
26% agreeing.
Remarks : The presence of self-appraisal procedure in the PA appraisal
system is an important reason for the above inference. The self
appraisal includes questions on major achievements, constraints in
performance, type of training required, tasks/activities undertaken
successfully during the year, problems faced etc. It also includes
suggestions on making the job interesting and challenging and
plans to improve effectiveness. Due to this fact, employees may
have felt that they were participating actively in their own
appraisal by self -review and reflection on various issues.
44
6. Promotions are based strictly on need rather than to reward individuals?
Response Category No. of Responses Percentage
Very true 0 0
True 4 8
Partly true 25 50
Not true 21 42
Inference : 50% of the respondents believe that the above statement is
‘Partly True’ This was closely followed by 42% of the
respondents rating it as ‘Not True’ and 8% of the respondents
feeling that it was ‘True’.
Remarks : The performance appraisal is completely need based the
organization recognizes and promotes high achievers only if
there are vacancies available in the organization. This has a
negative impact on people who are not rewarded and promoted
duly for their good performance. There should be a system of
rewarding employees either in monetary terms or in terms of
recognition.
45
7. The appraisal system gives each appraisee an idea of what is expected of him
next year?
Response Category No. of Responses Percentage
Very true 0 0
True 10 20
Partly true 26 52
Not true 14 28
Inference : 52% of the respondents felt that the above statement was ‘Partly
True’. This was followed by 28% and 20% of the respondents
feeling that it was ‘Not True’ and ‘True’ respectively.
Remarks : Each employee needs to have an idea as to what accountabilities
will he have if his appraisal is given a good remark for working at
higher levels. The appraisee should know his potential, which
will go a long way in his higher level jobs.
46
8. It is designed to aid the appraisee and appraiser jointly understand the
formers job?
Response Category No. of Responses Percentage
Very true 0 0
True 14 28
Partly true 22 44
Not true 14 28
Inference : There was a mixed response to the given statement. 44% of the
responses consisted of “Partly True’ ratings. 28% respondents
believed that this was ‘Not True’ whereas 28% believed that
this was ‘True’.
Remarks : The above inference implies that Jindal Brother’s PA system
does not score well in the aspect of transparency in
communicating an employee’s performance through
performance review and discussion. The discussions between
appraisal processes. The interaction on self appraisals is not a
common feature and is only done on certain occasions
(exceptionally good or bad performance etc.) The presence of
44% responses as “True” may be due to good relationship and
open communication shared by some of the appraiser appraise
pairs.
47
9. The performance appraisal provides an opportunity for self review and reflection?
Response Category No. of Responses Percentagevery true 0 0
true 2 4
partly true 25 50
not true 23 46
Inference : Most of the respondents agreed that the appraisal system catered
to their development needs (50% believed that it was “Partly
True”) and it was very closely followed by 46% saying it was
“Not True”. There were 4% cases, which believed that it was
‘True’.
Remarks : Although the inference indicates that the PA system allowed
mutuality, trust and open communication between superior and
subordinates, there may be chances of biases in employees while
rating this statement. The answers may have varied depending
on proximity etc. of the employee with his superior. However
present of 50% ‘completely true’ answers help us in obtaining a
general view on the ability of PA system to allow
communication between superiors and subordinates in Jindal
Brothers. Therefore, it can be assessed that the Performance
Appraisal does provide ample opportunity for open
communication between appraiser and appraise.
48
10. The appraisal procedure allows the appraisee to express his developmental
needs?
Response Category No. of Responses Percentagevery true 0 0
True 8 16
partly true 16 32
not true 26 52
Inference : The most common response on above statement was an
astounding ‘Not True’ with 52% people agreeing that the PA
system was free of any biases. It was followed by 32% saying
that it was ‘True’ and 16% saying that it was ‘Partly True’.
Remarks : The above inference implies that people are satisfied with the
PA system in Jindal Brothers and believe that it provides scope
for developing their potential. This may be due to the fact that
the self appraised of the appraise invites suggestions on job
enrichment, training needs and steps to be taken to improve
individual’s effectiveness.
49
11. The system has scope to correct the biases of the assessor through a super review?
Response Category No. of Responses Percentage
very true 0 0
true 2 4
partly true 14 28
not true 34 68
Inference : 68% of the people rated the above statement as ‘Not True’ 28%
believed it was ‘Partly True’ with 4% disagreeing by saying that
it was ‘True’.
Remarks : A performance appraisal system, which is perceived as ‘bias -
free’ by its executives, is an achievement for the organization. In
the PA system the reporting officer appraises a section of people
whereas the reviewing officer appraises the performance of an
entire department. also the reviewing officer is the immediate
superior of reporting officer. Any disagreement between the
assessments of an employee has to be duly discussed and
recorded. Also, any noticeable difference of opinion between
self appraisal and appraisal by reporting officer has to be
accounted for. All the above factors help in correcting the
biases,. if any, of reporting officer.
50
12. The appraisal system provides for a frank discussion between appraiser and
appraisee?
Response Category No. of Responses Percentage
very true 0 0
True 6 12
partly true 0 0
not true 44 88
Inference: An astounding 88% rated the above statement as not true with 12%
that it was true.
Remarks Although, most of the people felt that there was mutuality and trust
between appraiser and appraise, it may again depend on the
proximity and relationship shared by an employee and his/her boss.
The ratings may be based, as the employees may have felt that a
negative answer may adversely affect them. The reason behind this
conclusion is that a low score on extent of communication and
discussion between appraisers and appraise and high score on
mutuality and trust give a contradictory view.
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13. The procedure allows for the communication of CEO‘s goal to the
workforce?
Response Category No. of Responses Percentagevery true 0 0
true 2 4
partly true 10 20
not true 38 76
Inference : The typical response in this case was ‘Not True’, by 76% of the
respondents. 20% rated the above statement as ‘Partly True’ and
4% as ‘True’.
Remarks : Even if half of the respondents gave a mid-way answer, presence
of 44% ‘Slightly True’ answers give a negative picture of the
above statement. This implies that the business goals are not well
integrated with individual goals. There is no direct linkage
between the management plans and evaluation criteria. This may
be due to the fact that either the business goals are not quantified
enough or the management is not quick enough to communicate
its plans to the staff below.
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14. The appraisal system brings out the training needs of the employees.
Response Category No. of Responses Percentagevery true 0 0
True 3 6
partly true 22 44
not true 25 50
Inference : 50% of the respondents believed the above statement to be ‘Not
True’ closely followed by 44% people believing it to be ‘Partly
True’. Only 6% believed it to be ‘True’.
Remarks : A few people get the training related to their competencies
skills that needs to be enhanced for successful completion of
their work. most of the people do not get adequate training
according to changes in their job description i.e. responsibilities
and KRAS.
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15. The performance appraisal system clarifies the career prospects, aspirations and intentions?
Response Category No. of Responses Percentage
very true 0 0
true 5 10
partly true 40 80
not true 40 80
Inference : The typical response (80%) for the above statement was ‘Not
True’ 10% employees believed it to be ‘Partly True’ with an
equal 10% employees believing if to be ‘Not True’.
Remarks : The general picture drawn from the above inference is that all
the employees are not clear as to what the PA system is all
about and what is the reason behind its existence. This shows
that PA system has acquired an important status in Jindal
Brothers with all employees acknowledging its presence and
essence.
54
16. The appraisal system provides a rational basis for salary recommendations?
Response Category No. of Responses Percentage
very true 0 0
True 8 16
partly true 14 28
not true 28 56
Inference : 56% of the respondents felt that the above statement was ‘Not
True’. 28% responses included ‘Partly True’ ratings whereas
16% responses included ‘True’ ratings.
Remarks : The employees do not want a fixed increment for their great
performance. The company should make recommendations
related to salary on the basis of regular performance feedback
about every employee since the frequency of performance
measurement varies from department to department, it is
difficult to carry out this work smoothly.
55
17. The company relates reward to your performance?
Response Category No. of Responses Percentage
very true 0 0
True 10 20
partly true 4 5
Not true 36 72
Inference :` Most of the respondents (72%) felt that the above statement was
‘Not True’. 20% believed it to be ‘True’ whereas a mere 8% felt
that it was ‘partly True’.
Remarks : The company uses the reward system as a motivating force for
enhancing the performance of its employees. Rewards should be
promptly given to high achievers in terms of increment,
promotions, increased job responsibilities etc. for their
accomplishment.
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18. What kind of an appraisal system will bring out the best of an employee?
Response Category No. of Responses Percentageappraisal by all superiors 10 20
appraisal by immediate superior
5 10
appraisal by reference team 15 30
appraisal by reference team and self.
20 40
Remarks : This shows that the relationship between appraiser and
appraise, in Jindal Brothers, with respect to planning the
performance is quite good. The subordinate in planning his
performance. The appraiser helps the appraise in testing the
soundness of his goals as well as of his plans for achieving
them. This implies that there is active participation of both
appraiser and appraise in performance planning. The reason
behind ‘Not True’ answer may be due to the fact that many
jobs in Jindal Brothers are not well defined and therefore an
elaborate planning on them is not done.
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CONCLUSIONS & RECOMMENDATIONS
1. This company proves that a major amount of work towards developing an
effective and efficient performance appraisal system has not been
accomplished to the fullest.
2. It seems that the organization is genuinely interested in improving the
efficiency and utility of performance appraisal system to succeed in today’s
dynamic environment; t
Outward Orientation Performance Appraisal System
The appraisal system should be more sensitive and responsive to current competitive
environment. This is possible through making the organization.
Quality conscious in products and services to match international standards.
Customer oriented (internally as well as externally)
Cost effective
Technology oriented
Focused towards collaboration and teamwork
People oriented
Focused towards performance standards
Focused towards values and culture that would help unbottle hidden talent.
In achieving the above, the PA system have a catalytic role to play.
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PERIODIC PERFORMANCE REVIEW AND PLANNING:
There should be some aspect in the PA forms, which deals with the effect of Internal
Influences, organizational influences and external influences on performance of
employee to make the PA system more sensitive to changes.
Increase awareness of company goals in order to integrate company and
individual expectations.
Conducting training workshops for appraisers to remove biases and errors in
appraisal.
Increasing transparency and open communication and minimizing confidentiality
in performance review discussions.
The work done towards modifying and developing performance appraisal systems,
time to time should be continued.
Integrating TQM into Performance Appraisal
Individual rewards should be delinked with the PA system. The focus should shift
to team rewards. To recognize individual excellence, the team rewards. To
recognize individual excellence, the team should recommend rewards to tone up
motivation levels in the entire team.
Continuous feedback and transparency in every system
Focus on customer delight, both internal and external
Linkage with Rewards
Good performers should be recognized and rewarded, whereas weak performers need
to be encouraged to become better performers. PA systems when liked with individual
rewards and promotions create more problems than they help in motivating people.
They encourage fewer employees and discourage more. They do not develop the team
spirit but rather enhance interpersonal comparisons and power politics. The focus
should be shifted from rewarding the performance of few to development of
performance of many.
However there is also a need for recognition and rewarding good work. Alternative
systems of rewarding with multiple reward/recognition mechanism are needed. But
these systems should be separated from other systems (like career planning).
59
Role of HRD
HRD should develop relevant competencies and work through empowering the
line managers.
Development of subordinates and teams should be key function of line managers.
HRD should facilitate the development of behavioral, managerial and technical
(multi functional) competencies in line managers.
“Role analysis” should find a place in Jindal Brothers “role directories should be
published with key functions for each role.
System effectiveness should be ensured through periodic review and survey of
organizational climate, ethos, organizational effectiveness and employee
satisfaction (concerning PA systems).
IMPLICATION OF THE PROJECT
In a simple way performance appraisal is meant to be an exercise to value a estimate
what a person has done and how has he done. The nature of Performance appraisal
and its effectiveness depends a great deal on how human resources in the organization
are viewed and treated. People are to be treated as resources of the organization.
Unlike the other resources, the human resources have the capability of expanding to
unlimited extents with proper investment in human capabilities.
Therefore, an organization interested in developing the capabilities of its employees,
should understand the nature and capabilities required to perform different functions
as well as the dynamics underlying the development of these capabilities in an
organizational content.
These capabilities can be considered to fall under four categories. They are:-
(i) Technical capabilities
(ii) Managerial capabilities
(iii) Behavioral (human) capabilities
iv) Conceptual capabilities
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The extents to which the various capabilities are required for the performance of the
job differ from level to level in the organizational hierarchy.
New Objective of Performance Appraisal
Performance appraisal system can serve the following purposes if designed properly
(a) Help each employee to understand more and more about his role and become clear
about his functions.
(b) Helps each employee to understand his own strengths and weaknesses with
respect to his role and functions of the company.
(c) Helps identifying the developmental needs of employees.
(d) Helps increase mutuality between employee and his superiors.
(e) Provides an opportunity to the employees for self reflection and individual goal
setting
(f) Helps in preparing employees for performing at high levels by continuously
enforcing the required qualities.
(g) Create a positions and healthy climates in the organization.
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RECOMMENDATIONS
1. The company should try to avoid employee resistance, which is associated
with change worlds true change follows instance. This for all kinds of systems
be it Performance Appraisal.
2. The HR Dept should attempt to obtain the maximum agreement of Managers
in respect of needs and objectives and purpose of the systems.
3. Being in the field of it improve the frequency of the trading modules and
workshops.
4. More stress relieving packages should be offered to the mentally stressed staff.
5. Overtime should be taken care of at time of performance appraisal, which
would motivate the employees to perform better for longer hours.
6. Performance appraisal should after at proper span of time .
7. Performance appraisal should be done by expert person.
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SAMPLE QUESTIONNANIRE
I have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information furnished by you will help knowing the effectiveness of the present appraisal and reward system and if need be designing of a new appraisal system. The data will be kept confidential and will be used for academic purpose only.
1. In your company, the key competencies required for each job are already identified. a) Very true b) true c) Partly true d) not true
2. There are mechanisms that help employees develop their potential for the next rung of job. a) very true b)true c) partly true d) not true
3. Employees regularly receive feedback about their potential for higher level jobs a) very true b)true c) partly true d) not true
4. Job rotation is practiced widely to help people develop their potential in new areas. a) very true b)true c) partly true d) not true
5. Your company’s promotion policies are clearly defined and shared with all employees. a) very true b)true c) partly true d) not true
6. Promotions are based strictly on need rather than to reward individuals? a) very true b)true c) partly true d) not true
7. The appraisal system gives each appraisee an idea of what is expected of him next year?
a) very true b)true c) partly true d) not true
8. It is designed to aid the appraisee and appraisers jointly understand the former’s job?
a) very true b)true c) partly true d) not true
9. The performance appraisal provides an opportunity for self review and reflection?
a) very true b)true c) partly true d) not true
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10. The appraisal procedure allows the appraisee to express his developmental needs?
a) very true b)true c) partly true d) not true
11. The system has scope to correct the biases of the assessor through a super review?
a) very true b)true c) partly true d) not true
12. The appraisal system provides for a frank discussion between appraiser and appraisee?
a) very true b)true c) partly true d) not true
13. The procedure allows for the communication of CEO‘s goal to the workforce?
a) very true b)true c) partly true d) not true
14. The appraisal system brings out the training needs of the employees. a) very true b)true c) partly true d) not true
15. The performance appraisal system clarifies the career prospects, aspirations and intentions. a) very true b)true c) partly true d) not true
16. The appraisal system provides a rational basis for salary recommendations. a) very true b)true c) partly true d) not true
17. The company relates reward to your performance. a) very true b)true c) partly true d) not true
18. What kind of an appraisal system will bring out the best of an employee? a) appraisal by all superiors b) appraisal by immediate superior c) appraisal by reference team c) appraisal by reference team and self.
19. How do you support your subordinates?______________________________________________________________________________________________________________________________________________________________________________________________________________.
