ABSTRACT
The purpose of this study was to determine the factors which the employees
in the organization preferring for their appraisal and the employees satisfaction with
the existing appraisal system. The results of the current study can be used by
organizations to develop policies, practices, and strategies regarding their appraisal
system and can create greater efficiencies in meeting strategic business objectives.
Findings were made based on the data collected from 150 employees with the aid of
a questionnaire in which 5-point likert scale and rating scale were employed. Most of
the respondents rated both subjective and objective measures as preferable. It was
also found that some employees surveyed are dissatisfied with their present
organization appraisal methods and there are great chances that they may leave
their employer if they get better job opportunities from any better employer. The
employers must pay attention to this situation and design effective methods as
remedies at the earliest or else they may soon lose their efficient workforce.
CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION TO THE TOPIC
Performance appraisal is a method of evaluating the behaviour of employees in
the work spot, normally including both the quantitative and qualitative aspects of job
performance. It is a systematic and objective way of evaluating both work related
behaviour and potential of employees. It is a process that involves determining and
communicating to an employee how he or she is performing the job and ideally,
establishing a plan of improvement.
Performance appraisal has two over arching goals:
1. To encourage high levels of worker motivation and performance.
2. To provide accurate information to be used in managerial decision making.
These goals are interrelated because one of the principal ways that managers motivate
workers is by making decisions about how to distribute outcomes to match different
levels of performance.
Developing a Performance Appraisal System
Managers can use the information gained from performance appraisal for two main
purposes:
1. Developmental purposes such as determining how to motivate a worker to
perform at a high level, evaluating which of a worker's weaknesses can be
corrected by additional training, and helping a worker formulate appropriate
career goals.
2. Evaluative, decision-making purposes such as deciding whom to promote, how
to set pay levels, and how to assign tasks to individual workers.
Methods of Appraisal
The measures managers use to appraise performance can be of two types:
objective or subjective.
Objective measures such as numerical counts are based on facts. They are
used primarily when results are the focus of Performance appraisal. The number
of televisions a factory worker assembles in a day, the dollar value of the sales a
salesperson makes in a week, the number of patients a physician treats in a day
and the return on capital, profit margin, and growth in income of a business are
all objective measures of performance.
Subjective measures are based on individuals' perceptions, and can be used
for appraisals based on traits, behaviors, and results. Because subjective
measures are based on perceptions, they are vulnerable to many of the biases
and problems that can distort person perception. Because there is no alternative
to the use of subjective measures for many jobs, researchers and managers
have focused considerable attention on the best way to construct subjective
measures of performance.
360-degree appraisal - a worker's performance is evaluated by a variety of
people who are in a position to evaluate it. A 360-degree appraisal of a manager,
for example, may include evaluations made by peers, subordinates, superiors,
and clients or customers who are familiar with the manager's performance. The
manager would then receive feedback based on evaluations from each of these
sources. When 360- degree appraisals are used, managers have to be careful
that each evaluator is familiar with the performance of the individual he or she is
evaluating. While 360-degree appraisals can be used for many different kinds of
workers they are most commonly used for managers.
1.2 STATEMENT OF THE PROBLEM
The performance appraisal of the employees in the organization should be an
effective tool for measuring the employee’s performance. If the performance not
measured in a real manner it will be a critical issue. A study on impact of performance
appraisal was undertaken to study the reasons and ways to improve the condition.
1.3 OBJECTIVES OF THE STUDY
The present study on “impact of performance appraisal system” was undertaken
with the following objectives:
To find whether the existing appraisal system in the organization exactly
measures the employee’s performance.
To find whether the feedback from the appraisal system assists in the
employee’s training and development.
To determine the gaps in the existing system.
To determine what type of appraisal did the employee’s really looking for.
To find is there is any opportunities provided for the employees to improve their
performance.
1.4 SCOPE OF THE STUDY
The scope of the project is ful ly dependent upon the objectives of
the project.
This study can be helpful to the company for conducting any further
research.
The study is also helpful in f inding out the respondent’s opinion
towards certain attr ibutes.
It is also helpful in f inding out the reach and effectiveness of the
performance appraisal system.
This study also serves as a base for understanding the perception
about the employees regarding their performance appraisal.
With the results of the study the company can improve their standards of their
appraisal system
1.5 HYPOTHESIS OF THE STUDY
The study includes the calculation of null hypothesis and alternative hypothesis
by comparing age group of the respondents and preference of the appraisal system.
Null hypothesis is used for testing. It is a statement that no difference exists
between the parameter and statistics being compared to it.
The alternative hypothesis is the logical opposite of the null hypothesis
1.6 LIMITATIONS OF THE STUDY
Time and resource were the major constraints during the execution of the
project. Therefore only a limited number of employees were included in
the project.
The respondents were selected inside the organization only. So it cannot
be generalized as a whole.
Some of the respondents were not even ready to spare time with the
researcher.
There are many respondents who hesitated to answer the questionnaire.
The human behaviour is dynamic and hence the results may not hold
good for a long time.
The results of the survey are totally dependent on the accuracy and
authenticity of the information provided by the respondents.
1.7 CHAPTERIZATION OF THE PROJECT
The project done is being explained under five different chapters:
Introduction
Concepts and review
Research methodology
Data analysis and interpretations
Results and Discussions
CHAPTER 2
CONCEPTS AND REVIEW
2.1 CONCEPTS OF THE STUDY
2.1.1 Definition of Performance Appraisal
A formal and systematic process, by means of which the job relevant strength
and weakness of the employees are identified, observed, measured and developed.
2.1.2 Concept of Performance Appraisal
In the best of worlds, employees would love their jobs, l ike their co-
workers, work hard for their employees, get paid well for their work, have
ample chances for advancement, and flexible schedules so they could
attend to personal or family needs when necessary.
The performance appraisal is to assess a person and let him to
know where he is being standing along with the job. It is to f ind whether
he is performing with his task or not.
2.2 REVIEW OF RELATED LITERATURE
M Bowels and G Coates (1993)
The Management of Performance as Rhetoric on Reality
ARGUMENT:
Managers are mostly appraised by results, but results alone cannot
reflect performance because it is sti l l affected by many other factors.
RESEARCH:
The problems faced by the organization experiencing some
diff icult ies were measuring performance and the extra demands made on
managers.
CONCLUSION:
Management should provide the enabling condit ions through which
work is performed. Performance appraisal should be an opportunistic
means to address performance issues rather than a coherent systematic
process.
D Winstanely and K Stuart-Smith (1996)
RESEARCH:
Conclusive evidence that leads to improved performance is
lacking.
Not enough time is given to the process.
It reinforces modes of intrusive control.
CONCLUSION:
The focus must move away from measurement and judgement
towards developing, understanding and building up trust to allow a
genuine dialogue to take place.
2.3 COMPANY PROFILE
Span systems a matured growing IT services company with 14 years of
experience. The company focussing on optimizing and aligning IT initiatives with
business strategies.
The company has achieved a CMM level 4 and ISO 9001-2000 and expecting to
achieve CMM level 5. Sales offices at USA, Sweden and in India give the company for
easy access to global markets. The company have multiple development centres in
Bangalore and planned to expand their services to all over the India.
The business model deliver value through optimal use of offshore and onsite
resources and through managed relationships under the RM model. Clients get the
value through the pragmatic approach to an engagement rather than a cost based
model or a purely process driven model. Irrespective of activity with the clients the
company have demonstrable methods of showing enhanced productivity.
IT Infrastructure
15000 sq.ft. offshore It development facility
128 kbps dedicated 24*7 internet access with secure firewall protection.
Intel Pentium 4/ windows 2000, sun Solaris and Intel based red Linux servers.
40+ workstations, TCP based 100/1000 MBPS Ethernet LAN on 100 MBPS
switches
Complete data backup recovery infrastructure with disaster recovery facility
In – house training facilities.
2.4 PRODUCT PROFILE
IT Services
Span systems are tailor- made to clients needs and built around the following
key areas relevant to any business enterprise:
Application development- customized software applications based on the
architecture constructed by our business consulting services.
Business intelligence- productivity solutions that empower decision makers to
access data across the enterprise.
Education and training- training and up gradation of skills in data modelling,
UML modelling, data ware housing and business intelligence for corporate.
Contracting
People, project and system recovery support. Span systems offers solutions that
are strategically aligned with corporate business goals. Span systems undertake
mobilization of personnel under placement at the client identified locations. On request,
or at the conclusion of the contract period, the deputed personnel are demobilised from
the client sites.
IT Expertise
Operating systems: windows 98/2000/XP, Red Hat Linux and Sun Solaris.
Development Tools: Visual Basic, Power Builder, Oracle Developer.
Databases: Oracle, Sybase, SQL Server,DB2 and MySql
UML Modelling tools: describe and rational rows.
Data modelling tools: ER Studio, ER Win and power designer
Groupware: Lotus notes/domino, MS exchange.
Business intelligence: Oracle discoverer, business objects and congas.
Data warehouse tools: DT Studio
Web tools: Macro media dream weaver/flash and adobe Photoshop.
CHAPTER 3
METHODOLOGY
3.1 INTRODUCTION
Research is a scientific and systematic search for pertinent information on a
specific topic. Research is an art of scientific investigation. According to Clifford Woody,
“Research comprises defining and redefining problems, formulating hypothesis or
suggested solutions, collecting, organizing and evaluating data, making deductions and
reaching conclusions and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis”.
3.2 RESEARCH DESIGN
Research design aids the researcher in the allocation of limited resources by
posing crucial choices in methodology.
Research design is the plan and structure of investigation so conceived as to
obtain answers to research questions. The plan is the over all scheme or program of the
research. It includes an outline of what the investigator will do from writing hypothesis
and their operational implications to the final analysis of data.
DESCRIPTIVE RESEARCH DESIGN
The design for this study is descriptive research design. This design
was chosen as it describes accurately the characteristics of a particular
system as well as the views held by individuals about the system. The
views and opinions of employees about the system help to study the
suitabil i ty of the system as well as the constraints that might restrict i ts
effectiveness
3.3 SAMPLING TECHNIQUES
The sampling technique adopted for the purpose of the study is
convenience sampling.
As the name implies a convenience sample means selecting
particular units of the universe to constitute a sample.
SAMPLE SIZE
The sample size of the study is 150. This sample is considered as
representative.
3.4 DATA COLLECTION
PRIMARY SOURCE:
The primary source of data is through Questionnaire.
SECONDARY SOURCE:
The secondary source of information is based on the various details
retrieved from Journals, Websites and Magazines.
The data for this study has been collected through primary sources. Primary data
for this study was collected with the help of Questionnaires and evaluation feedback
forms. The extra information was collected through interviews with the employees at
various companies.
3.5 TOOLS OF THE STUDY
3.5.1 Tool used for data collection:
The tool used for collecting the data is through the questionnaire .
The main reason for selecting the questionnaire method for the study is:
Respondents have adequate t ime to give well thought out answers.
The time of the study was also a l imit ing factor.
Five pointer scales were use through the Questionnaire.
3.5.2 Statistical tools used
Statistical tools l ike Tabulation, Graphic Representations,
percentage analysis and, Chi-Square, are used in the compilation and
computation of data.
Chi-Square Test
The Chi-Square test is one of the simplest and most widely used non-parametric
test in statistical work. It is practically useful in tests involving nominal data. It can be
used for higher scales. It makes no assumptions about the population being sampled. If
Chi-Square is zero it means that the observed and the expected frequencies completely
coincide, while the greater the value of Chi-Square is , the greater would be the
discrepancy between observed and the expected frequencies.
The formula for computing Chi-Square is
CHI-SQUARE = (O-E)2 / E
Where O = Observed Frequency, E = Expected Frequency
The calculated value of chi-square is compared with the table value of chi-square
for given degrees of freedom of specified level of significance. If the calculated value of
chi-square is greater than the table value the difference between the theory and the
observed is considered to be significant, i.e., it could not have risen due to fluctuations
of simple sampling. On the other hand if the calculated value is less than the table
value, the difference between the theory and observation is not considered significant,
i.e., it could have risen due to fluctuations of sampling.
The number of degrees of freedom is described as the number of observations
that are free to vary after certain restrictions have been imposed on the data. For a
uniform distribution, we place one restriction on the expected distribution - the total of
sample observations.
PERCENTAGE ANALYSIS:
Percentage refers to a special kind of ratio. Percentage is used in
making comparison about two or more series of data. Percentage as also used to
describe relationship. It is also used to compare the relative terms of two or more
series of data.
Formula:
Number of respondents ´ 100 Total no. of respondent
3.5.3 AREA OF THE STUDY
To study the Impact of Performance Appraisal System at SPAN Systems,
Bangalore.
3.5.4 CLOSED-ENDED QUESTIONS
Such questions are also called fixed alternative questions. This method is also
facilitators the respondent to answer in some other way on other alternative is provided
as a choice.
CHAPTER – 4
ANALYSIS AND INTERPRETATION
4.1 ANALYSIS OF THE DATA
Table 1
Table showing Sex of the respondents
Source: Primary data
Inference
From the above table it is inferred that out of 50 respondents 88% of them are
male and 12% of the respondents are female.
Figure 1
sex no. of respondents
Simple percentage
Malefemale
13218
8812
Table 2
Table showing age group of the respondents
Source: Primary data Inference
The above table shows that 28% of the respondents are between the ages 24-28,
26% of the respondents are above 38, 18% of the respondents are 29-33 and 34-38
and only 10% of the respondents are between the ages
19-23.
Figure 2
Age group
No. of respondents
Simple percentage
19-2324-2829-3334-38Above 38
1542272739
1028181826
Table 3
Table showing the date of joining of the respondents
Date of joining No of respondents
Simple percentage
71-8081-9091-20002001-07
031530102
02102068
Source: Primary data
Inference
The above table 68% of the respondents are joined during 2001-07, 20% of the
respondents are joined during 91-2000, 10% of the respondents are joined during 81-90
and 2% of the respondents are joined during 71-80.
Figure 3
Table 4
Table showing the preference of the appraisal
Source: Primary data
Inference
The above table shows that 65% of the respondents prefer supervisors appraisal,
20% of the respondents prefer subordinates appraisal and remaining 10% of the
respondents prefer peers appraisal.
Figure 4
Preference of appraisal
No of respondents
Simple percentage
PeersSubordinatesSupervisors
1521114
101476
Table 5
Table showing the basis of the performance appraisal
Source: Primary data
Inference
The above table shows that 80% of the respondents prefer both the quality and
target for their basis of performance appraisal, 12% of the respondents prefer quality
alone and 8% of the respondents prefer target alone.
Figure 5
Basis of performance
appraisal
No of respondents
Simple percentage
QualityTargetBoth
1812120
120880
Table 6
Table showing frequency of the appraisal system
Source: Primary data Inference
From the above table shows that 50% of the respondents prefer annual
appraisal, 40% of the respondents prefer half yearly appraisal, 6% of the respondents
prefer monthly appraisal and 4% of the respondents prefer 360 degree appraisal.
Figure 6
Frequency of appraisal
No of respondents
Simple percentage
MonthlyHalf yearlyAnnual360 degree
09607506
06405004
Table 7
Table showing performance appraisal
Source: Primary data
Inference
From the above table shows that 80% of the respondents prefer personality
traits, behaviour and results, 10% of the respondents prefer results alone, 6% of the
respondents prefer behaviour, 4% of the respondents prefer personality trait
Performance appraisal based on
No of respondents
Simple percentage
Personality traitsBehaviourResultsAll the above
06
0915120
04
061080
Figure 7
Table 8
Table showing types of appraisal
Source: Primary data
Inference
The above table shows that 76% of the respondents prefer both subjective and
objective factors, 12% of the respondents prefer subjective alone and 12% of the
respondents prefer objective alone.
Types of appraisal
No of respondents
Simple percentage
SubjectiveObjectiveBoth
1818114
121276
Figure 8
Table 9
Table showing any gender discrimination
Based on gender, any discrimination
No of respondents
Simple percentage
YesNo
48102
3268
Source: Primary data
Inference
The above table shows that 68% of the respondents said that there is no gender
discrimination and the remaining 32% said there is gender discrimination.
Figure 9
Table 10
Table showing daily contact at the time of appraisal
Daily contact at the time of appraisal
No of respondents
Simple percentage
SAANCDSD
0972303306
064820224
Source: Primary data
Inference
The above table that 48% of the respondents agree that they are having daily
contact, 22% of the respondents are having no comment, 20% of the respondents are
disagree with the daily contact, 3% of the respondents are strongly agree with the daily
contact and 2% of the respondents are strongly disagree with the daily contact.
Figure 10
Table 11
Table showing feedback given at the time of appraisal
Feedback given at the time of appraisal
No of respondents
Simple percentage
SAANCDSD
2184301203
1456200802
Source: Primary data
Inference
The above table shows that 56% of the respondents are agree with the feedback
given at the time of appraisal, 20% of the respondents given no comment, 8% of the
respondents are disagree with the feedback, 14% of the respondents are strongly agree
with the feedback and 2% of the respondents are strongly disagree with the feedback
given at the time of appraisal.
Figure 11
Table 12
Table showing appraisal evaluates strength and weaknesses
Appraisal evaluates strength and weaknesses
No of respondents
Simple percentage
SAANCDSD
3663360906
2442240604
Source: Primary data
Inference
The above table shows that 42% of the respondents agree with evaluating their
strength and weaknesses, 24% of the respondents are strongly agree with their
evaluation, 24% of the respondents given no comment based on their evaluation,6% of
the respondents are disagree with the evaluation and 4% of the respondents are
strongly disagree with the evaluation of strength and weaknesses.
Figure 12
Table 13
Table showing exactly evaluates the skill gaps
Exactly evaluates the skill gaps
No of respondents
Simple percentage
SAANCDSD
1584391200
1056260800
Source: Primary data
Inference
The above table shows that 56% of the respondents are agree with evaluation of
skill gaps, 26% of the respondents given no comment, 10% of the respondents are
strongly agree with evaluation of skill gaps and 8% of the respondents are disagree with
the evaluation of the skill gaps.
Figure 13
Table 14
Table showing is the organization providing effective training
Source: Primary data Inference
The above table shows that 36% of the respondents given no comment regarding
effective training, 32% of the respondents are agree with the effective training, 24% of
the respondents are strongly agree with the effective training, 6% of the respondents
are disagree with the effective training and 2% of the respondents are strongly disagree
with the effective training.
Figure 14
Organization providing effective training
No of respondents
Simple percentage
SAANCDSD
3648540903
2432360602
Table 15
Table shows is the appraisal helps in personal growth
Source: Primary data Inference
The table shows that 46% of the respondents are agree with their personal growth,
26% of the respondent’s given no comment, 24% of the respondents are strongly agree
with their personal growth and 4% of the respondents are disagree with their personal
growth.
Figure 15
Appraisal helps in personal growth
No of respondents
Simple percentage
SAANCDSD
3669390600
2446260400
Table 16
Table shows appraisal helps in promotion aspects
Source: Primary data Inference
The table shows that 54% of the respondents are agree with the promotion aspects,
30% of the respondents are strongly agree, 10% of the respondents given no comment
and 6% of the respondents are disagree with the promotion aspects.
Figure 16
Appraisal helps in promotion aspects
No of respondents
Simple percentage
SAANCDSD
4581150900
3054100600
Table 17
Table shows recommendation for job rotation
Source: Primary data Inference
The above table shows that 80% of the respondents recommended for their job
rotation and 20% of the respondents are not recommended the job rotation for their
development.
Chart 17
Recommendation for job rotation
No of respondents
Simple percentage
YesNo
12030
8020
Table 18
Table shows recommendation for job enlargement
Source: Primary data Inference
RecommendationFor job enlargement
No of respondents
Simple percentage
Yes No
13515
9010
The above table shows that 90% of the respondents recommended for their job
enlargement and 10% of the respondents are not recommended the job enlargement for
their development.
Figure 18
Table 19
Table shows ideas to recommend for their development
Source: Primary data
Ideas to recommend for their development
No of respondents
Simple percentage
Yes No
30120
2080
Inference
The above table shows that 80% of the respondents recommended their ideas
for their development and 20% of the respondents are not recommended their ideas for
their development.
Figure 19
Table 20
Table shows face to face interaction with the supervisor
Face to face interaction with supervisor
No of respondents
Simple percentage
Yes
No
105
45
70
30
Source: Primary data Inference
The above table shows that 70% of the respondents are agreeing with face to
face interaction with the supervisor and 30% of the respondents are not agree with the
face to face interaction with the supervisors.
Figure 20
Table 21
Table shows opportunities to improve performance
Opportunities to improve performance
No of respondent
Simple percentage
s
Yes
No
129
21
86
14
Source: Primary data Inference
The above table shows that 86% of the respondents are agree with their
opportunities given by the organization and 14% of the respondents are not agree with
the opportunities given by the organization.
Figure 21
Opportunities to improve performance
Table 22
Table shows appraisal changes your attitude/behaviour
Source: Primary data
Inference
The above table shows that 70% of the respondents are agree with the changes
in attitude and behaviour ant the remaining 30% of the respondents are disagree with
the changes in attitude/behaviour during appraisal period.
Figure 22
Appraisal changes your Attitude /Behaviour
No of respondents
Simple percentage
Yes
No
105
45
70
30
Table 23
Table shows satisfied with CFR
Satisfied with CFR No of respondents
Simple percentage
Yes
No
120
30
80
20
Source: Primary data
Inference
The above table shows that 80% of the respondents are satisfied with CFR
ratings and the remaining 20% of the respondents are dissatisfied.
Figure 23
Table 24
Table shows increase of salary by performance ratings
Source: Primary data
Inference
The above table shows that 78% of the respondents are satisfied with the
increase of salary through performance ratings and the remaining 22% of the
respondents are dissatisfied.
Figure 24
Performance ratings increase your salary
No of respondents
Simple percentage
Yes
No
117
33
78
22
Table 25
Table shows happy with present appraisal system
Source: Primary data Inference
The above table shows that 76% of the respondents are happy with the present
appraisal system and 24% of the respondents are unhappy with the present appraisal
system.
Figure 25
Happy with present appraisal
No of respondents
Simple percentage
Yes
No
114
36
76
24
4.2 HYPOTHESIS TESTING
Chi-square test to find out the comparison between Age group of the respondents and the preference of performance appraisal types.
SUBJECTIVE OBJECTIVE BOTH TOTAL19-23 09 06 - 1524-28 09 06 27 4229-33 - - 27 2734-38 - 06 21 27Above 38 - - 39 39TOTAL 18 18 114 150
Null Hypothesis
There is no relationship between Age group of the respondents and the
preference of performance appraisal types.
Alternative Hypothesis
There is relationship between Age group of the respondents and the
preference of performance appraisal types.
Level of Significance
5% level of significance
Test Statistics
X2 = (Oi- Ei) 2 Ei
Calculation
Inference
The calculated value is 80.42 where as the tabulated value for (r-1) (c-1) i.e., (5-
1) (3-1) for 5% level of significance is 15.507. Thus calculated value is greater than the
tabulated value. The null hypothesis is rejected and the alternative hypothesis i.e.,
There is relationship between Age group of the respondents and the preference of
performance appraisal types is accepted.
CHAPTER 5
Oi Ei (Oi- Ei)2 (Oi- Ei)2/ Ei
9609627002706210039
1.81.811.45.045.0431.923.243.2420.523.243.2420.524.684.6829.64
51.8417.64129.9615.680.921624.20610.49710.49741.99010.4977.6170.230421.90221.90287.609
28.89.811.43.110.180.753.233.232.043.232.350.0114.674.672.95
80.42
5.1 FINDINGS OF THE STUDY
88% of the respondents were male.
Majority of the respondents (28%) are between the age of 24-28 and the low
level (10%) was between the age of 19-23.
68% of the respondents are joined in the year of 2001-07 and the low level 2%
were joined in the year of 1971-80.
65% of the respondents prefer supervisors for their appraisal and the low level
10% prefer peers for their appraisal.
80% of the respondents prefer both the quality and target for their basis of
performance appraisal and low level 8% prefer target for their basis of
performance appraisal.
50% of the respondents prefer the frequency of appraisal as annual and the low
level 4% prefer 360 degree.
80% of the respondents prefer that performance appraisal should be based on
all(personality traits, behaviour and results) and the low level 4% prefer
personality traits.
76% of the respondents prefer both (subjective and objective) the appraisal and
the low level 12% prefer subjective and objective appraisal.
68% of the respondents said that there is no gender discrimination.
48% of the respondents are agree with daily contact at the time of appraisal and
the low level 2% were strongly disagree.
56% of the respondents are agree with feedback given at the time of appraisal
and the low level 2% were strongly disagree.
42% of the respondents are agree with evaluation of the strength and
weaknesses at the time of appraisal and the low level 4% were strongly disagree.
56% of the respondents are agree with evaluation of skill gaps and the low level
8% were disagree with this.
36% of the respondents having no comment based on effective training after
appraisal review and the low level 2% were strongly disagree.
46% of the respondents are agree with the personal growth of the individuals and
the low level 4% were disagree.
54% of the respondents are agree with the promotional aspects through
appraisal and the low level 6% were disagree.
80% of the respondents are recommended for job rotation.
90% of the respondents are recommended for job enlargement.
20% of the respondents recommended some ideas for their development.
70% of the respondents are agreeing with the face to face interaction with the
supervisor.
86% of the respondents are agreeing with opportunities to improve their
performance after appraisal.
70% of the respondents are agreeing with the changes in attitude/behaviour after
appraisal.
80% of the respondents are satisfied with CFR ( critical factor ratings )
78% of the respondents are agreeing with increase in their salary through CFR
ratings.
76% of the respondents are happy with the present appraisal system.
The chi-square analysis show that the comparison between the age of the
respondents and types of appraisal level calculated value of x2.
5.2 SUGGESTIONS
5.2.1 SUGGESTIONS BY THE EMPLOYEES
The organization should conduct the following programmes for their development
which are
3 Modelling software
Seminars in some of the functional areas like
Technical aspects
Business overview
Latest technology
5.2.2 SUGGESTIONS BY THE RESEARCHER
The company should conduct effective training after the performance
appraisal for their employees to improve their performance and also CFR
ratings should be discussed with the employees at the time of performance
appraisal review.
The company should give combination of both (subjective and objective)
appraisal and it should be of half yearly.
The appraiser should keep on contact with the employees and motivate
them for their growth and also to achieve the organizational goals.
When an employee is newly joined in an organisation, he/she should be
given proper information about performance appraisal system and its
impact towards his/her job.
Once an employee is evaluated, he/she has to be informed about their
strength and weaknesses. An employee should aware of the above,
he/she will improve their strengths and weaknesses and also it helps to
increase the productivity of the organisation.
5.3 CONCLUSION
In this study, Performance Appraisal System followed at SPAN systems was
evaluated and found to be good. This project work also reveals the gaps in the existing
system. By providing suitable training and development programmes, the concern
organisation can improve the existing performance appraisal system.
Overall, this project work helps to understand every aspects of performance
appraisal system.
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Donald R Cooper, Pamela S Schindler – Business Research Methods, Tata MC
Graw Hill, ninth edition.
Performance management – Michael Armstrong and Angela Baron.
Gary Dessler – Human Resource Management Prentice, Half of Indian private
limited 2004 ninth edition.
Website : www.spansystems.com
Website : www.google.com
APPENDIX
IMPACT OF PERFORMANCE APPRAISAL SYSTEM
1. Name (optional) : ___________________
2. Sex : a) Male b) Female
3. Your age group?
a) 19 - 23 b) 24 - 28 c) 29 - 33 d) 34 – 38 e) above 38
4. Designation : ___________________
5. Date of joining : ___________________
6. Whose appraisal do you prefer?
a) Peers
b) Subordinates
c) Superiors
7. Performance appraisal should be based on your
a) Quality
b) Target
c) Both
8. The frequency of appraisal should be
a) Monthly
b) Half yearly
c) Annual
d) 360 degree
9. Appraiser appraised your performance based on
a) Personality traits
b) Behavior
c) Results
d) All the above
10. Which type of performance appraisal do you prefer?
a) Subjective performance appraisal
b) Objective performance appraisal
c) Combination of both
11. Based on the gender, performance appraisal varies. Yes/No
The following questions are graded on a 5 point scale:
1 – Strongly agree
2 – Agree
3 – No comment
4 – Disagree
5 – Strongly disagree
1 2 3 4 5
12. During appraisal, the appraiser had daily contact with you.
13. During appraisal process, you are allowed to give feedback.
14. Do you think the performance appraisal evaluates your strengths
and weaknesses?
15. The appraiser exactly evaluated the skill gaps within you.
16. The organization is providing effective training program for skill
enhancement after your appraisal period.
17. Performance appraisal helps in your personal growth.
18. The appraisal system helps in your future promotion prospects.
19. Do you recommend job rotation for your development? Yes/No
20. Do you recommend job enlargement for your development? Yes/No
21. Do you have any ideas to recommend for your development? Yes/No
If yes, Please specify___________________________.
22. At the time of appraisal documentation review, did you have face to Yes/No
face interaction with your appraiser?
23. Were opportunities given to you to improve your performance? Yes/No
24. Does the performance appraisal review actually change your Yes/No
attitude / behaviour?
25. Are you satisfied with the critical factor ratings? Yes/No
26. Based on the performance ratings, is there any increase in the salary? Yes/No
27. Are you happy with the present appraisal system? Yes/No
28. Do you have any comments on existing performance appraisal in your
Enterprise. Specify your suggestions.
This survey is only for educational purpose. Strict confidentiality will be maintained
and no details will ever be revealed to others.