A SUMMER TRAINING REPORT
ON PERFORMANCE APPRAISAL (HUMAN RESOURCE MANAGEMENT)
FOR THE PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE
MASTER OF BUSINESS ADMINISTRATION
SESSION-2010-2011
UNDER THE IN- VALUABLE GUIDANCE AND SUPPORT OF
SUBMITTED TO: SUBMITTED BY:
J.K. WHITE CEMENT Ajeet Singh
M.B.A. III SEMESTER
AXIS INSTITUTE OF
PLANNING AND MANAGEMENTROOMA KANPUR
INDEX
1. Acknowledgement 32. Preface 43. Object of study 5 4. Company profile 65. Human resource management 256. Evaluation of H.R.M. 297. Subjectivity towards the objectivity 338. Introduction of performance appraisal 369. Evaluation of performance appraisal 4910. Methods of performance appraisal 5511. 3600 Appraisal system 6612. 1800 Appraisal system 7413. Requirements of sound performance appraisal system 8414. Standard rating factor 8915. Some appraisal factor used by Indian companies 9216. Factor comparison 9417. Findings & Suggestions 9718. Questionnaire 10219. Bibliography 112
ACKNOWLEDGEMENT
Exchange of ideas generators a new object to work
in a better way. Whenever a person is helped
every work requires an assistance and support,
without which no work may be done away with. In
completing the present project file, we were also
in a need of the support and assistance and we
were supported by all to whom demanded.
It has been a great pleasure to associate my self with the summer training.
Named evaluation of performance appraisal system in
JK CEMENT.
One of my goals was to write this report that was authorization
synthesized deverise views and helped define a common professional field.
PREFACE
I wish to acknowledge my deep gratitude to all
colleagues and friends who have Assisted me in
preparing the report.
Special thanks:
I owe my sincere thanks to Mr. Rajesh Sharma for
his role in managing
this training for his supervision of ancillary material
preparation.
I praise Mr. M.M.A. Khan (the H.R. advisor of JK
Cement) for his
invaluable guidance.
Object of the study
The purpose of summer training is to evaluate the
performance appraisal in JK Cement.The aim of
research us to find out the truth which is hidden and
has not been discovered yet.
Though the study has its own specific purpose we
may thank of research objective number of following
broad in group.
1-Compare the evaluation system of jk system
with competitors.
2- Suggest company better way fir evaluation of
performance appraisal.
COMPANY PROFILE
-:PROFILE:-
JKCEMENT LTD.(incorporated under the companies act,1956 on November
24,1994)is one of the largest cement manufacture is northern India according to
CMA .Jk is also the 2nd largest white cement manufacture in India based on
published production capacities of other white cement manufacture in India. They
sell their GREY CEMENT primarily to purchase located in northern India.
While their WHITE CEMENT is sold to purchasers throughout in India.JK also
export white cement to a number of countries, including south
affrica.nigeria,Singapore,Bahrain,Bangladesh,srilanka,keniya,Tanzania united
Arab emirates Nepal.
Jk cement ltd. Own the operate two grey cement manufacturing facilities located
at NIMBAHERA & MANGROL in the states of Rajasthan with production
capacities of 2.8MnTPA &0.75MnTPA respectively. They also operate and own a
white cement manufacturing facility at GOTON in Rajasthan with a production
capacity of 0.30MnTPA.
The company believes that they were one of the 1st Indian cement manufactures
to produce quality white cement in India. They sell white cement throughout in
India and believe that their brand name is well recognized and accepted by most
major industrial consumers. They believe that their access to high quality
limestone reserve that are suitable for production of white cement provides us
with a competitive advantage, as accesses to such reserve is a significant barrier
for new entrants.
The lime stones for both grey & white cement are of high quality and are
expected to meet their exiting & planned limestone requirements for
approximately 0.4MnTPA of grey cement and 0.4MnTPA of white cement for
approximately 40years based on geological surveys conducted by independent
agencies on their mines from time to time between 1990&2001.their
manufacturing facilities are located in close proximity to their limestone deposits
in the state of Rajasthan and well connected to the key markets by rail and
roads.
JK CEMENT manufacturing plants are well connected by road and rail with each
of their grey and white cement plants connected to both the national highway &
the national highway networks. The nimbahera plans has railway sidings at the
plant site that enable it to access the railway directly & reduce their transportation
cost. The goton plant is located only 1km. away from the nearest railway station.
As illustrated by the following table, they have significant regions of market share
in key of northern India:
STATE Fiscal 2007 Nine months ended December 31, 2007Market share (%) Rank Market share (%) rank
Haryana 18.51 1 19.40 1
Delhi 13.95 4 14.82 3
Rajasthan 13.40 5 12.28 5
Source:CMA
Our key strategies are focused on cost savings and project expansion. We plan
to comment construction of two new captive power plants at our exiting
production facilities. Which we expect will be fully operational by fiscal 2008. We
also plan to modernize and upgrade our exiting thermal power plant at bamania.
In, addition, we plan to both expand the capacity and increase the efficiency of
our exiting plants.
GENERAL INFORMATION
Registered office of the company
JK CEMENT LIMITEDKamla towerKanpur 208001Uttar Pradesh, India
Registration number: 20-17199
The company is registered with the registrar of companies (Uttar Pradesh and uttranchal), Located at 37/17 Westcott building, the mall, kanpur208001, Uttar Pradesh, India.
Board of Directors
The following persons constitute our board of directors:
1- Dr. Gaur Hari Singhania, Chairman
2- Yadupati Singhania, Managing Director and chief executive officer
3- Mr. J.P. Bajpai
4- Mr. K.N. Khandelwal
5- Mr. Raj Kumar Bajpai
6- Mr. Alok Dhir
7- Mr. Ashok Sharma
8- Mr. Achintya Karati.
Our strengths and competitive advantage:
Leading position in northern India grey cement market.
Second largest white cement producer in India.
Proximity and access to large reserve of high quality limestone.
Quality of products and strong brand name.
Extensive marketing and distribution network.
Experience and technical know-how.
Production process Of JK Cement:
Corporate History:
The company is an affiliate of the J.K. organization, which was founded by late
Lala Kamlapat singhania. The JK organization includes various industrial and
commercial companies with operations with operations in a broad range of
industries.
The company is promoted by Dr. Gaur Hari Singhania, Mr. Yadupati Singhania,
Yadu international limited and Juggilal Kamlapat Holding Limited. The company
was incorporated under the companies act as JK cement limited on November
24, 1994 and obtained its certificate of commencement of business on the same
date. One of the main objects of the company, as contained inn our
memorandum of association, is the acquisition of the whole or substantially the
whole of the undertakings and properties comprising the JKSL cement division.
Due to continuous losses, the net worth of JKSL became negative and
consequently, JKSL applied to the BFLR which registered JKSL as a sick
company on April 2, 1998.
The company cement manufacturing operations were originally owned and
operated by JKSL. JKSL is a listed company that has been a manufacturing
business since 1962. Its principal operations consisted of manufacturing facilities
for the production of man made fibers, fabrics and yarns at Kota and jhalawar, as
well as grey cement plants at nimbahera and mangrol, and a white cement plant
at goton. During the 1990s, JKSL’s man made fiber operation became
unprofitable and began to accumulate losses.however; its cement operation
remained relatively profitable. Pursuance to the scheme of rehabilitation, the
JKSL cement division was acquired by the company with effect from November
4; 2004.peior to such acquisition, the company did not have any significant
operations.
Our cement operations commenced production in may 1975 at our 1st plant at
nimbahera in the state of Rajasthan. Since commencement of our cement
operations, JKSL and since November 2004, the companies have made
continual investments for the expansion and modernization of our production
facilities. At nimbahera, we started with a single kiln with and install capacity of
0.3MnTPA.we added a second kiln in1979 with an installed capacity of
0.42MnTPA and the third kiln in 1982 with an install capacity of 0.42MnTPA. We
added a precalciner in 1988, which increased and install capacity at the
nimbahera facility to 1, 54 MnTPA. During the years 1988 through 2003, we
continued to implement modifications to each of our kilns, which increased our
aggregate installed capacity at the nimbahera facility to 2.8 MnTPA as of
September 30, 2005. We commissioned second grey cement plant at our
mangrol plant in 2001, with an installed capacity of 0.75 MnTPA.
As of September 30, 2005, we had an aggregate installed capacity of 3.55
MnTPA of grey cement. Our white cement manufacturing facilities at Goton was
completed in 1984 with capacity of 50,000 tons per annum. Our continuing
modifications to the goton manufacturing facilities have resulted in increasing its
installed capacity to 0.3 MnTPA as of September 30, 2005.
Commercial production in our first dry cement plant at nimbahera in Rajasthan
commenced in May 1975 with a four stage pre-heater dry process kiln of capacity
of 0.3 MnTPA with a planetary cooler supplied by Larsen & toubro in technical
collaboration with FLS Denmark. The capacity of plant expanded in 1979 by
commissioning another kiln of 0.42 MnTPA. A third kiln with a capacity of 0.42
MnTPA was setup in 1982 with a grate cooler, thereby increasing the total
capacity of the facility to 1.14 MnTPA. In 1998, we added a precalciner in a third
kiln to increase the plant’s aggregate capacity to 1.54 MnTPA.
In 1984, we commenced production if the white cement at our Goton
manufacturing facility. We were one of the first white cement manufactures in
India when we established our dry process white cement in plant using
technology supply by Larsen & Toubro , which had a separate technical
collaboration with FLS. The plant had an initial capacity of 0.05 MnTPA.
KEY EVENTS:
The key events in respect of the JKSL cement division and the companies are set forth below;
YEAR EVENT
1975 The grey cement plant at nimbahera, with an initial capacity of 0.3 MnTPA, commenced commercial production.
1976 A second production line was added at nimbahera, increasing the capacity from 0.3 MnTPA to 0.72 MnTPA
1982 A third production line was added at nimbahera, increasing the capacity from 0.72 MnTPA to 1.14 MnTPA.
1984 Lime based white cement established at Goton, with an initial Capacity of 0.05 MnTPA.
1987 A captive thermal power plant was installed at bal mania.
1988 A pre-calciner was installing at nimbahera, increasing the total capacity to 1.54MnTPA.
1990 the JKSL cement division instituted “architect of the year”Award,
1-the company was incorporated
2-the “regional training centre” for the northern India, which was established at the nimbahera plant of the JKSL cement division with aid from the World Bank and the Danish international development agencies, commenced service.
2000 the total capacity of the while cement plant at Goton was
Increased to 0.3 MnTPA as a result of continuous modernization and up gradation.
2004 1- the company acquire the JKSL cement division’
2-the total capacity of grey cement plant nimbahera was increased to 2.8 MnTPA as a result of continuous modernization and up gradation.
2005 1-the company allotted 7,426,950 equity shares to the
Shareholders of JKSL pursuant to the AAIFR order dated January 23, 2003.
2-the company was listed on the BSE.
ORGANIZATION STRUCTURE:
Details of appointment of directors:
Name of Directors Date of contract/appointment
letter/ Resolution
Term
Dr. Gaur Hari Singhania November 24, 1994 Non-retiring
Mr. Yadupati Singhania November 24, 1994 Non-retiring
Mr. J. P. Bajpai November 24, 1994 Liable to retire by rotation
Mr. K. N. Khandelwal February 9, 2004 Liable to retire by rotation
Mr. Raj Kumar Lohia September 30, 2004 Liable to retire by rotation
Mr. Alok Dhir October 27, 2004 Liable to retire by rotation
Mr. Ashok Sharma October 24, 2005 Liable to retire by rotation
Mr. Achintya Karati October 24, 2005 Liable to retire by rotation
Our management organization structure is set forth below:
Key Managerial Employees:
Name DesignationMr. Yadupati Singhania Managing Director and Chief Executive
OfficerMr. R.G. Bagla Group Executive PresidentMr. A.K. Saraogi President (Corporate Affairs) and Chief
Financial OfficersMr. M.P. Rawal President (Technical and Management
Services)Mr. D. Ravi Shankar President Works (Grey Cement)Mr. B.K. Arora President Works (White Cement)Mr. Ghosh President (Human Resource and New
Initiatives)Mr. R.C. Shukla Senior Vice President Marketing
(Grey Cement)Mr. v.p. singh Senior Vice President Marketing
(White Cement)
Yadupati SinghaniaManaging director
&Chief executive
officer
Mr.v.p.singhSenior vice president
Marketing (white cement)
M.P. RawalPresident
(Technical and management
service)
B.K. AroraPresident works(White cement)
A.K. Saraogi(Corporate affairs) & chief financial
officer
A. GhoshPresident
(Human resource and new initiative)
D. RavishankarPresident works(Grey cement)
R.C. ShuklaSenior presidentMarketing (grey
cement)
R.G. BaglaGroup executive
president
Mr. shambhu singhCompany secretary
Mr.shambhu singh Company Secretary
Comparison charts:
Indian and worldwide per capita cement consumption
In 2002, global cement production was reported at 1.8 billion tons, with china
accounting for 37.2% of the total output. India was the second largest producer
with 6.1% of the total output, closely followed by the United States at 5%. India’s
shares of global cement production has increased from 2.9% in 1990 to 6.1% in
2002, principally due to improved economic conditions and increased
construction activity in India as compared to global economy.
The key players in the Indian cement industry and their share of install capacity
as of march 31, 2005 included ACC (11.9%), Ultratech Cement limited (11.1),
and Gujarat Ambuja (9.7%), Grasim Industries (9.2%), and Indian cement
(5.7%). In the year ended march 31, 1995, these companies together had 34% of
the total capacity in the country. However, with increasing consolidation the
industry their share of total capacity increased to 47.6% as of march 31, 2005.
GROWTH IN CONSUMPTION
We expect northern India to demonstrate strong cement demand, driven by
increased emphasis on infrastructure projects including urban infrastructure and
power projects and continued growth in housing sector.
Increasing demand from housing and infrastructure:
In addition to demand from housing, in recent government budgets, the
government has indicated its commitment to developing infrastructure in country
and undertaking large projects involving constructions of ports, airports, power
plants, and highways linking different parts of the country.
CONSTRUCTION INVESTMENTS:
SOURCE: CRIS INFAC
Includes airports, ports, telecom and tourism also
In addition, the government has also announced plans to build roads
(approximately 200,000 kilometers) linking every village in the country with a
population of over 1,000.
The increased focus on the infrastructure development, together with the
increasing demand for housing and commercial construction, are expected to
drive growth of the cement industry.
The capital investment trend in public as well as private sectors in India has
shown an upward trend.
CAPITAL INVESTMENT PLAN: PROPOSED, ANNOUNCED AND UNDER IMPLEMENTATION-
Upswing in exports:
Year ended march 31,
Exports 2002 2003 2004 2005 2006 2007
Cement 2.95 3.15 3.47 3.36 4.87 5.09
clinker 1.19 2.00 3.45 5.64 5.79 6.99
Source: CMA
CONSOLIDATION:
Currently, the cement industry in India continuous to be highly fragmented
compared to other cement producing countries. Although the share of cement
capacity of the top five cement companies has increased to 48% in the year
ended march, 31 2005 from 34% in the year ended march 31, 1995, there are
still approximately 20 different cement companies in India which have less than
2.0 MTPA of cement capacity.
White cement industry overview:
White cement is distinguished from Grey cement by the it’s colour. White cement currently sold in India has a whiteness of around 88% to 90% and is used primarily as filter between Ceramic tiles or for decorative purpose (cement paint, cement tiles, marble laying, white wash, finishing mortar, decorative articles, recast elements etc).
The company was one of the first Indian manufactures to introduced quality of
White cement. It established 50,000 tons per annum dry process white cement
plant in 1984. Grasim commenced production of White cement around 1987.
Travancore cement is third operation white cement player with approximately
30,000 tons per annum of sea-shell based White cement capacity.
INDIAN WHITE CEMENT CAPACITY, PRODUCTION AND CAPACITY UTILISATION:
As of March 31
2002 2003 2004 2005
Capacity 700,000 700,000 700,000 775,000
Production 452,079 510,312 526,116 539,849
Capacity utilization
64.6% 72.9% 75.2% 73.2%
Source: information complied from published annual report of Grasim industries limited and JKSL/the company.
OUR PRODUCTS
The following table set forth, for the periods specified, our gross sales and percentages of our gross sales contributed by our different cement products:
PERIOD
GREY CEMENT WHITE CEMENT TOTALAmount
(Rs. millions)
Percentage (%)
Amount (Rs.
Million)
Percentage (%)
Amount(Rs.
Million)
Percentage (%)
Fiscal 2003
6,290.53 82.6 1,328.91 17.4 7,619.44 100
Fiscal 2004
6,546.44 81.6 1,472.73 18.4 8,019.17 100
Fiscal 2005
8,179.10 83.2 1,655.52 16.8 9,834.62 100
Six months ended September 30, 2005
4,421.93 84.6 803.09 15.4 5,225.02 100
The following table sets forth, for the periods specified below, the total quantity, in metric tons, of our white cement sold in India and in our international markets:
PERIODDOMESTIC SALES EXPORTS SALES TOTAL TONS
Fiscal 2003 182,904 15,562 198,466Fiscal 2004 198,982 18,570 217,552Fiscal 2005 194,872 27,167 222,039Six months ended September 30,2005
84,006 12,411 96,417
The following table shows a breakdown of production of the Nimbahera, Mangrol
and Gotan cement facilities for the period indicated:
Production in MT:
FACILITYFISCAL
2003FISCAL
2004FISCAL
2005
SIX MONTHS ENDED
SEPTEMBER 30, 2005
FISCAL 2006
FISCAL 2007
Nimbehera 2,323,283 2,272,760 2,414,196 1,256,942 3.55million tons
3.55 million tons
Mangrol 570,464 718,572 912,419 493,211 5.71 lack tons
6.15 lack tons
Goton 200,149 215,538 224,481 99,343 1.25 lack tons
1.60 lack tons
JKSL has express grinding capacity at Mangrol. In fiscal 2005,, although their
cement capacity based on clinker production was 0.75 tons, production of
cement was 912,419 metric tons. This was because they transferred clinker from
Nimbehera to Mangrol for grinding and conversion into cement.
HUMAN RESOURCE
MANAGEMENT
WHAT IS HRM?
Human resource management is also a management function concerned with
hiring, motivating and maintaining people in an organization. It focuses on
people in an organization.
THE CORE POINTS ARE:
1. Organizations are not mere bricks, mortar, machineries of inventories. They are people. It in the people who staff and manage organization.
2. HRM involves the applications of management functions and principles
3. Decisions relating to employees must be integrated.
4. Decisions must result in betterment of services to customers in the term of high quality product.
5. HRM function not confined to business organization only but is also applicable to non business organization too.
HISTORY OF HRM:
The field of HRM as it currently exists represents a crystallization of a variety of historical & contemporary factors:
1. THE INDUSTRIAL REVOLUTION :
during this period machines were brought in, technology made rapid
progress, jobs are more fragmented where the worker did only a small
portion of the total job and specialization increased speed and
efficiency but left workers with dull, boring and monotonous jobs.
Workers were treated like “Glorified machine tools”.
Employees were keen to production targets rather than satisfy
workers demand. Governments did very little to protect the interests of
workers.
2. SCIENTIFIC MANAGEMENT :
To improve efficiency and speed F.W. Taylor advocate scientific
management is nothing but a systematic analysis & breakdown of
work in to its smallest mechanical elements and managing them
into their most efficient combination.
Taylor argued that individuals selected to perform the tasks should
be as Perfectly matched, physically and mentally, to the
requirements of the task as possible and that overqualified
individual should be excluded. A differential piece rate system was
also advocated by Taylor to provide an incentive for employees to
follow the detailed procedures specified by supervisors.
3. HUMAN RESOURCE APPROACH :
however, during early 60’s the “the pet milk theory” of human
relations had been largely rejected. Recognizing the fact that
workers are unique in their own way – having individual needs. It
was recognized that each employee is a unique and highly complex
individual with different wants, needs and values.
4. TRADE UNIONISM:
workers joined hands to protect against the exploitative tendencies
of employers and the prohibitive, unfair labour practices through
unions. Unions tried to improve the lot of workers through
collective bargaining, resolving the grievance of workers relating to
working conditions, pay and benefits, disciplinary actions etc.
5. HUMAN RELATION MOVEMENT :
the famous Hawthorne experiments conducted by Elton Mayo and
his Harvard colleagues during 1930’s and 1940’s demonstrated
that the employee productivity was affected not only by the way the
job was designed and the manner in which employees were
rewarded economically, but by certain social and psychological
factors as well.
“The human resource approach
assumes that the job or the task
itself is the primary source of
satisfaction and motivation to
employees. The emphasis in the
decisions made in organization.”
EVALUATION OF HUMAN
RESOURCE MANAGMENT
EVALUTION OF CONCEPT OF HRM:
The early part of century saw a concern for improved efficiency through careful
design of work. During the middle part of the country emphasis shifted to the
availability of managerial personnel and employee productivity. Recent decades
have focused on the demand for technical personnel, responses to new
legislation and government regulations, increased concern for the quality of
working life, total quality management and a renewed emphasis on productivity.
GROWTH IN INDIA:
Early phase: Through it is said that HRM a discipline is of recent
growth, it has had its origin dating back to 1800 BC. For example the
minimum wage rate and incentive wage plans were included in the
Babylonian code of Hammurabi around 1800 B.C. the Chinese, as
early as 1650 B.C. had originated the principle of division of labour
and they understood labour turnover even in 400 B.C. the span of
management and related concept of organization were well
understood by Moser around 1250 B.C. and the chaldeans and
incentive wages plan around 400B.C. kautilya, in India (in his book
Arthasastra) made reference to various concept like job analysis
selection procedures , executives development, incentive system and
performance appraisal.
Legal phase: the early roots of HRM in India could be traced backed
to the period after 1920. The royal commission on labour in 1931
suggested the appointment of labour officer to protect worker’s
interests and act as a spokes person of labour. After independence,
the Factory act, 1948, made it obligatory for factories employing 500
“In view of legal compulsions and the enumeration of
duties the entire approach of organization toward their personnel
was to comply with the laws and keep the welfare officer busy
with routine functions” Meanwhile two professional bodies, viz. the
Indian institute of personnel management (iipm) kolkatta and the
national institute of labour management (NILM) Mumbai has come in to
existence in 1950’s.
Welfare phase: During the 1960’s the scope of personnel function
has expanded a bit, covering labour welfare, participative
management, industrial harmony etc. “In this period, the human
relations management of the west had also had its impact on
Indian organization.” The legatistic preoccupations slowly gave way
to harmonious industrial relations and good HR practices.
Development phase: in 1960’s and 1970’s the HR professionals
focused more on developmental aspect of human resource. The
emphasis was on striking a harmonious balance between employee
demands and organizational requirements. HRD has come to occupy
a centre stage and a focal point of discussion in seminars,
conferences and academic meets. Two professional bodies, IIPM &
NILM were merged to term the national institute of personnel
management (NIPM) at Kolkatta.
During the 1990’s organizational reconstructing and cost cutting efforts
have started in a big way. Thanks to pressures of liberalization,
privatization and globalization (lpg era) forcing companies focus on
attention on employee Capability product/service quality, speedy
response customer, customer satisfaction etc. changing demographics
and increasing shortages of workers with the requisite knowledge ,
skills and ability have grown in importance.
The issue of workforce diversity has assumed greater importance in
view of culture, religious social, religious background of workers,
especially in global sized companies such as reliance, Ranbaxy, Asian
paints, Tisco etc.
PERIOD EMPHASIS STATUS ROLES
1920-30
Welfare mgt. clerical paternalistic
- welfare administrator
- policeman
1940-60
Expanding role to cover labour, welfare, industrial relations & personnel administration
administrative
- appraiser
- advisor
- mediator
- legal advisor
1970-80
Efficiency, effectiveness dimensions added emphasis on human values, aspirations,
developmental
- fire fightining
- change agent
- integrator
- trainer
- educator
1990’s-onwards
dignity, usefulness
incremental productivity gains through human assets
Proactive, growth-oriented
- developer
- counselor
- coach
- mentor
- problem solver
SUBJECTIVITY TOWARDS
OBJECTIVITY
SUBJECTIVITY TOWARDS THE OBJECTIVITY
A Leading edge: organizations exits to attain certain goals and objective through
a unified effort.
Control devices in the form of performance appraisal were reinvented by the
corporate world to accomplish their professed objectives; however, the history of
appraisal is one of the confrontation and conflict of greyed relationship and
trusted hopes.
In many organizations they have become eye score both for the management as
well as employees and have impeded accomplishment of the organizational goal.
Appraisal serve to monitor the efforts of individual to integrate and co-ordinate
individual efforts into a co-operative endeveour to provide protection and
feedback to individual; to provide a means of correcting or commending the
efforts of individual and to provide an equitable and consistent basis of
distributing rewards and penalties. It is obvious therefore, that there has been a
very wide range. Conception of the objectives to be achieved by an appraisal
system.
Barret thinks that
“performance appraisal concerns with these main purposes like:
Administrative Decisions: Promotions, transfers, allocation of financial
rewards.
Employee Development Decisions: Identification of training needs and
performance feedback, personnel research as manpower generation.
The organizations intend to generate manpower information, develop human
resource, and retain efficient and effective functioning, harmonious employee
relations, and control over the all working systems.
Performance appraisal fulfills the different goals as:
Organization Goal
Individual Goal
Mutual Goal
INTRODUCTION OF
PERFORMANCE APPRAISAL
INTRODUCTION
It is well established fact that people differ in their abilities & aptitudes and these
differences are natural to a great extent and can not be eliminated completely by
giving them education and training.
Therefore it is necessary for the mgt. to these differences so that it may develop
certain programmes in the org. for those employees who possess better
potentials, so that they may be developed to accept the challenges of higher
jobs.
MEANING OF PERFORMANCE APPRAISAL:
It can be understood as the assessment of the individual’s performance in a
systematic way, the performance being measured against such factors as job
knowledge, quality, and quantity of output, initiative, leadership abilities,
supervision dependability, co- operation, judgment, versatility, health and the like.
A COMPREHENSIVE DEFINITION:
Performance appraisal is a formal, structure system of measuring and evaluating
an employee’s job related behaviors and outcomes to discover how & why the
employee is presently performing on the job and how the employee, organization
& society all benefit.
FEATURES OF PERFORMANCE APPRAISAL:
1. Appraisals are arranged periodically according to a definite plan.
2. It is a continuous process.
3. Basic purpose is to find out the how well the employee is performing the job.
4. It is the systematic description of employee’s jobs his relevant strengths and weakness.
5. Appraisal process is always systematic.
6. it helps organization in formulating succession planning.
NEED FOR PERFORMANCE APPRAISAL :
1. Provide information about the performance rank basing on which
decision regarding salary fixation, conformation, promotion, transfer &
demotion are taken.
2. To prevent grievance and in disciplinary activities.
3. Provides information which helps to counsel the subordinates.
4. Provides feed back information about the level of achievement and
behavior if subordinates.
5. Provide information to diagnose deficiency in employee regarding
skills, knowledge, training & developmental needs & information for
correcting placement.
PURPOSE/OBEJECTIVES OF PERFORMANCE APPRAISAL:
a. To create & maintain a satisfactory level of performance.
b. To evaluate the success of training programmers.
c. To forecast the need of training of employee and to determine the
nature of training.
d. To established harmonious relations between employees and
employers.
e. To prove the justification of different rates of wages to different
employees.
f. To reward the more efficient employees.
g. To make a comparative study of abilities of different employees.
h. To determine a policy for promotion & transfer.
Table shows the multiple purposes of performance assessment:
Developmental uses :
Administrative uses:
Organizational objectives:
Documentation:
Identification of individual needs.
Performance feedback.
Determining transfers & job assignments.
Identification of individual strengths & weakness.
Salary
Promotion
Retention & termination
Recognition of individual performance
Lay-offs
Identification of poor performers
Human resource planning
Determining organization training needs
Evaluation of organizational goal
Information for goal identification
Evaluation of human resource system
Criteria of validation research
Documentation for HR decision
Helping to meet legal requirements
Organizational goal Individual goal
General manpower information personal development
HRD satisfaction
Efficiency & effectiveness involvement
Employee relations fair adjustment
Competition
Mutual goal
Growth & development
Harmony
Effectiveness
Profitability
Performance appraisal also fulfill objectives related
To potential appraisal and career planning
There are seven steps involve in performance appraisal process:
1. Established standards: In this step, we establish a particular
criteria of performance appraisal means we do the job analysis of a
particular employee and set the characteristics that are needed for
doing the particular work. On the basis, we are providing the
performance appraisal to employee.
2. Communication standards to employee: after doing the
job or work by employee. The management discusses all the
performance and efforts those who have put in the work mean they
till about their performance on the job.
3. Measuring actual performance: management measures
the actual performance of the job i.e. done by the employee they
are set KRA’s & self appraisal system.
4. Comparing actual with standards: in this step, what the
management expect and what the employee do? They are actually
comparing the actual performance with the standards which are set
by management.
5. Discussing report with employee: after the comparison,
report carries all the data’s related about the employee. That is
discussing with the employee. And tell their performance level.
6. Taking corrective action: all the reports are being submitted
to head office by HR manager they are deciding the actual actions
and also decide the performance appraisal factor.
7. Final performance appraisal report: this report decide the
most effective performance appraisal like annually, quarterly,
monthly and halfyearly. They provide the appraisal to employee
with the written report.
PROCESS OF PERFORMANCE APPRAISAL IN J.K. CEMENT:
STEP 1- performance appraisal report is being dispatch to marketing head. this report is related about the policies.
STEP 2- all the letters is being dispatch and it contains all the final dates of Appraisal
STEP 3- all the forms is dispatch to the reasonable head of the company.
STEP 4- r easonable manager sends all the forms to the respective employee and ask them to return all the forms on the proper date.
STEP 5- first review meeting is being conduct where reasonable manager discuss all the presentations, employee performance, increments, promotions With the HR manager.
STEP 6- in the next step, forms sends to marketing heads.
STEP 7- next meeting is being fixed between marketing head and HR manager for finalization date of applicant interview.
STEP 8- interview process of employee.
STEP 9- assessments is being conduct by company.
STEP 10- final report preparation.
STEP 11- report sends to management and decides the al appraisal for Employee.
Factors affecting performance appraisal:
Environmental constraints
Organizational leadership
Interdependence of sub system
Organizational structure
Suggestion for conduction appraisal interviews:
Give the employee a few day notice of the discussion & its purpose
Prepare notes & use the completed performance appraisal from as discussion guide so that each important topic will be covered.
Be ready to suggest specific developmental activities suitable to each employee’s needs.
Establish a friendly, helpful & purposeful tone at the outset of the discussions.
Assure your employee that everyone on Cessna’s management team in being evaluated.
Make sure that the session is truly a discussion.
When your appraisal differs from the employee’s discuss these differences.
These discussions should contain both constructive compliments & constructive criticism.
Occasionally the appraisal interview will uncover strong emotions.
Make certain that your employees fully understand your appraisal of their performance.
Discuss the future as well as the past.
End the discussion on a positive, future improvement oriented note.
Benefits of performance appraisal
To identify misplaced employees so that suitable remedial action may be taken.
To judge whether employees are performing at the acceptable level.
To find out the potential of employees for promotion & development.
To identify the strength & weakness of individual so that timely steps may be taken to improve the quality of personnel.
To provide a record of each employee’s performance for the purpose of incentive pay & rewards.
To focus attention on the effectiveness of the organization & to recognize individual achievements.
To let an employee know where he stands so that he is motivated to develop himself.
Problems of performance appraisal system:
Failure of superior in conducting.
Performance appraisal & post performance appraisal interviews.
Most of the appraisal is based on subjectivity’
Less reliability & validity of performance appraisal.
Negative ratings affect interpersonal relations & industrial relation system.
Influence of external environmental factors & uncontrollable internal factors.
EVALUATION OF PERFORMANCE
APPRAISAL
Evaluation of performance appraisal:
Although the field of performance appraisal as discipline of study is relatively
recent, the precepts upon which its current concepts are based had their origins
deep in history.
Though exact time of evolution of performance appraisal can not be traced out
even the stages of development of performance appraisal can be easily
determined.
Development of performance appraisal & social awakening at the end of 19th
Century was the main causes of growth of performance appraisal. This term was
originated in U.S.A. in the beginning the rate of growth industrial activities it grew
very fast.
In India, kautilya was observed that there existed a sound based for systematic
management of performance appraisal as early as in fourth century B.C. The
government then took active interest in the operation of public & private sector
enterprises & provided systematic procedure for regulating employer-employee
relationship. Modern Performance appraisal has emerged through many stages
which are as follows:
(a) Industrial revolution Era: it is the evolution of modern performance
appraisal. It consisted essentially in the development of machinery, the use of
mechanical energy and the consequent establishment of factories employing
large number of people all resulting in tremendous increase in the productive
power of man, science & technology began to be applied to all aspect of the work
of modern industrial corporations. It affected
Of performance appraisal system in many ways:
The migration from rural to urban areas started with the decline of
cottage industries. This resulted the specialization need. So, the
mechanization also increased with the passage of time.
Although, mechanization made the word so simple but a small
mistake can affect badly on the work.
The method of production change from manual to machine
operation because of transfer of skill from the worker to the
machine. Thus, the new industrial era brought about the
materialism, discipline, monotony & behavioral phenomena.
Thus we say that industrial era was the foundation stage of performance appraisal system.
(b) Era of trade unionism: although, the starting had been done an
industrial era but slow development taken place in this trace unionism era. In
this era so many different topics are concerned such as collective bargaining,
grievance handling procedure, employee benefits programme etc.
(b) The scientific management era: this era began in 1990 & reached
its peak approximately 1930. The scientific mgt. movement owes its origin to
Fuw. Taylor (1856-1955) who is known as father of scientific management.
F.W. Taylor develops four principle of scientific management:
Development of true science
Scientific selection, training & development.
Friendly co-operation between management & workers.
Development of every worker to his fullest potential.
The scientific management era has had a great influence on employee. Employer
performance & their relationship in general. Taylor’s approach was accepted by
both worker and management because it placed on strong emphasis on mutual
benefit of productivity. One name given to his outlook is human engineering &
welfare capitalism.
(e) The behavioural era: it started around 1955 & its impact lasted some ten
to fifteen years. Behavioural scientists are conceived earth the impact of various
methods of pay & individual performance with the effect of different style of
leadership & different philosophies of total organization performances. Infect of
different appraisal system & effect the organization communication productivity
and change Abraham Maslow, Douglas. Mc. Gregar, Renis contribution to the
development of the behavioural science
approach to the study of performance appraisal management system.
PERFORMANCE EVALUATION CHARACTERISTICS
As a result of court cases related to these doctrines, a performance
evaluation process should include the following characteristics:
The overall evaluation process should be formalized, standardized
and made as objective as possible.
The performance evaluation system should be as job related as
possible.
A thorough, formal job analysis for all employment positions being
rated should be completed. This is usually done at a higher level in
the organization.
Although useful, subjective supervisory ratings should be
considered as only one component of the overall evaluation
process.
Evaluators should be adequately trained in the use of evaluation
techniques that employ written qualification criteria for transfer or
promotion decisions.
Evaluators should have substantial daily contact with the employee
being evaluated.
If the evaluation involves various measures of performance, the
weight of each measure in relation to the overall assessment
should be fixed.
Opportunities for promotion or transfer should be posted and the
information made available to all interested individuals.
Whenever possible, the evaluation should be conducted by more
than one evaluator or include a review process.
All such evaluations should be conducted independently.
The administration and scoring of performance evaluations should
be standardized and controlled
METHOD OF PERFORMANCE
APPRAISAL
THERE ARE TWO TECHNIQUE OF PERFORMANCE APPRAISAL SYSTEM:
TRADITIONAL TECHNIQUE:
Traditionally, performance appraisals have been used as just a method of
etermining and justifying the salaries of the employee.
This approach was a past oriented approach which focused only on the past
performance of the employee i.e. during the past specified period of time. This
approach did not consider the developmental aspects of the employee
performance. Under this technique we will study some method;
PROCESS OF TRADITIONAL TECHNIQUE:
(a) Essay appraisal method: this traditional form of appraisal, also
known as “Free form method” involves a description of the performance of an
employee by his Superior. The description is an evaluation of the performance of
any individual based On the facts and often includes examples and evidences to
support the information. A Major drawback of the method is the inseperatibility of
the bias of the evaluator.
(b) Straight ranking method: This is one of the oldest and simplest
technique of Performance appraisal. In this method the appraiser ranks the
employees from the best to the poorest on the bias of their overall performance.
It is quite useful for comparative Evaluation.
(c) Paired comparison: a better technique of comparison that the straight
Ranking method. This method compares each employee with all others in a
group on At time, after all the comparisons on the basis overall comparison the
employee given The final ranks.
(d) Critical incident method: in this method, the evaluator rates the
employee On the basis of critical events and how the employees behaved during
those incidents. It Includes negative and positive points.
(e) Field review: in this method, a senior member of the HR department or
the Training officer discuss and interview the supervisor to evaluate and their
respective Subordinates. But it is very time consuming process.
(f) Check list method: the rater is given a checklist of the descriptions of the
behaviour of the employee on job. The checklist contains a list of statements on
the basis Of which the rater describes the on the job performance of the
employee.
(g) Graphical rating scale: in this method the employee quality and quantity
of Work is assessed in a graphic scale indicating different degrees of a particular
trait. The Factors Taken into consideration include both the personal
characteristics related on the Job performance of the employee.
(h) Forced distribution: To eliminate of the bias from the rater’s rating, the
Evaluator is asked to distribute the employees in the same fixed categories of
ranking like On a normal distribution curve. The rater chooses the appropriate fill
for the categories On the own diversion.
MODERN TECHNIQUE:
The modern approach to performance development has made the performance
appraisal process more formal and structured. Now, the performance appraisal
is taken as a tool to identify better performing employees from others,
employees’ training needs, career development paths, rewards and bonuses
and their promotions to the next levels. Appraisals have become a continuous
and periodic activity in the organizations. The results of performance appraisals
are used to take various other HR decisions like promotions, demotions,
transfers, training and development, reward outcomes. The modern approach to
performance appraisals includes a feedback process that helps to strengthen
the relationships between superiors and subordinates and improve
communication throughout the organization.
Process of modern technique:
There are various type of modern technique is as follows:
Management by objective:
The MBO was first given by Peter Drucker in 1954.
“It is the process whereby the employees
and the superiors come together to
identify the Common goals the employee
set their goals to be achieved , the
standards to be taken as The criteria for
measurement of their performance and
contribution and deciding the course of
action to followed.”
Features and advantages of MBO:
The principle behind the management by objective is to create empowered
employee who have clarity of the roles and responsibilities expected from them.
The goals are set and clear, motivating.
The focus on the future rather than on past.
Motivating the employee for achieving the target or goals.
Create better communication and co ordination between employees
and superiors.
The MBO approach overcomes some of the problems that arise as a result of
assuming that the employee traits needed for the job success can be reliably
identified and measured. Instead of assuming traits the MBO method
concentrates on actual outcomes.
MBO PROCESS
The guiding principle of MBO approach is that direct results can be observed.
Whereas the traits and attributes of employees.
The MBO advocates claim that the performance of employee can not be broken
up to so Many constituent parts.
Assessment centers:
An assessment centers typically involves the use of method like social/informal
events, tests and exercise assignments being given to a group of employees to
assess there competencies to take higher responsibilities in the future.Generally
employees are given an assignment similar to the would be accepted to
performed it promoted. The trained evaluator observes and evaluates employees
as they perform the assigned job related characteristics.The major competencies
that are judged in assessment centers are interpersonal skill intellectual
capability, planning, organizing capabilities in a effective way.
Behaviorally rating scale:
It is a relatively new technique which combines the graphic rating scale and
critical incidents method. It consists of predetermined critically areas of job
performance or sets of behavioral statements describing important job
performance qualities as good or bad.
In this method, employee actual job behaviors is judged against the desired
behaviour by recording and comparing the behaviour with BRS.
Human resource accounting method:
Human resource is valuable assets for every organization. Human resource a/c
method tries to find the relative worth of these assets in the terms of money. In
this method the performance of the employee is judged in terms if cost and
contribution of the employees. The cost of employee in terms of includes all the
expenses incurred on them like their compensation recruitment and selection
cost, induction and training cost etc.Whereas there contribution includes the total
value added.
HR Audit:
HR Audit means the systematic verification of job analysis and design,
recruitment and selection, orientation and placement, training and development,
performance appraisal and job evaluation employee and executive remuneration,
motivation and morale, industrial relations and their resolution.
It is very useful to achieve organization goal and also is a vital tool which helps
to assess the effectiveness of HR functions in an organization. It helps to reduce
all the cost and create the sound performance appraisal System.
360o
Appraisal System
Where appraisal is made by superiors, peers, subordinates & clients, its called
360o Appraisal system. Firstly it was developed at general Elactric. Us in 1992,
has become Popular in our country too.
Merits:
Evaluates method applied to achieve target.
Reveals strength & weakness in management style.
Force inflexible managers to initiative self exchange.
Creates an atmosphere of team work & improvement.
Unearths truths about organizational culture & ambience.
Demerits:
Ignores performance in terms of reaching goal.
Colleague’s responses tend to be biased.
The system can be used to humiliate people.
Linking findings to rewards can prove to be unfair.
360o feedback:
It is also known as “Multi rater feedback”. It is the most comprehensive appraisal
where the feed back about the employees performance comes from the source
that come in contract with the employees on his job. In this type of appraisal
should way be done by any person who has through knowledge about the job
done by contents to be appraised, standards of contents & who observed the
employee while performing the job. The Appraises should be capable of deciding
what is important & what is relatively less important. He should assess the
performance without bias. The appraisers are supervisors, peers, subordinates,
employees themselves users of service & consultant. Performance appraisal by
all these parties is called 360o appraisal.
“360o feedback a term implies, bring
together formal appraisals from
everybody that the person being
assessed comes in to contact with – line
managers, subordinates, colleagues,
peers & even outsiders such as clients.
Another name for it is multi-source
feedback and a variant in upward
feedback, in which subordinates
appraise their Supervisor’s
performance”
Features:
360o feedback process used to improve managerial effectiveness
by providing manager with a more complete assistant of their
effectiveness & their performance & development needs.
The process involves obtaining feedback from the manager’s key
contacts Normally:
- The manager himself
- Subordinates
- Peers
- Managers
- Customers
- Suppliers.
Feedback is normally gathered by means of a questionnaire.
Communicating the scheme, its purpose & benefits to all those involved
will be a key factor in reducing the participant’s fears & gaining their
commitment to any new scheme.
Results can be aggregated to give you some feedback on organizational
strengths & weakness in relation to your business objectives & training
strategy.
Every manager is assessed by a minimum of 15 colleges out of which at least
two of His boss four of them peers & six of them subordinates there responses
are presented Collectively in the form of charts & graphs comment and
interpretation are presented Taken, counseling are arranged to solve the
weaken, identified in the 3600 assessment.
Why should a company implement a 3600 process?
The process leads to better job performance, as participants use the 360 degree
to sharpen their skill. As a consequence, productivity in the workplace increase
and a company enjoys more success.Group have found that the 3600 process is
an excellent method for establishing specific training needs.
When a business has a clean objective to accomplish or a specific mission to
carry out a 360 degree assessment can be a valuable tool. It can help everyone
to focuss on skills consistent with the company’s goal & to target their
development plans to fit the direction the business in taking.
If a business is struggling in a particular area, a 3600 system can help identify the
skills requiring attention. Participants can then make the chances necessary to
remove obstacles to success.
How do companies use the 3600 result:
Most business initially uses the 3600 feedback for employee development. Some
begin by Using it for development planning and then expand to use the 360
degree system for Appraisal & pay decisions. Later, they may also use it in
production & succession planning.
When the initial use is for development only, everyone has a chance to become
Familiar with the process and make necessary adjustments. It also allows time to
build trust in value of the 3600. For uses for than development , specific, legal
guidelines must be followed.
When implementing a 3600 system, its used must be taken into account. For
instance, companies will need to have a policy about who sees the 3600 survey
results. When the feedback will be used solely for development, the participant
might be only person to see the report. If the result will be used for performance
management, both the participants And his or her boss will review the report.
Mr. Groger describes its objectivity as:
o For maintaining inventory.
o For determining investments.
o For maintaining individual and group development.
o For suggesting ways for improvement.
o For identifying training needs.
o For planning and career development.
But in modern times performance appraisal established itself for achieving
competitive advantages.
The companies adopting modern appraisal system such as Japanese 3600 rated
a high growth than their competitor.
Thus, we see that performance appraisal has been found as a objective
approach than subjective & now a days it become an integral part of an
organization.
180o
Performance appraisal
180 o appraisal system
Introduction:
Appraisals are now used, almost universally, as the main channel for providing
feedback To individuals on how to develop their performance. Traditionally,
feedback in appraisal flows top down from the line manager to the individual
being appraised. Although this is valuable, there is an opportunity to broaden the
appraisal to include:
Upward feedback from team members to their line manager
Feedback from colleagues, mentors or from contacts outside the
organisation, such as clients or suppliers.
This has obvious benefits:
The workplace is flatter and increasingly project focused with individuals
working in matrix structures or remotely from home. Line managers
typically have less contact with their direct reports and so need information
from other sources if they are to provide valuable feedback.
Direct reports can use their own experience to give particularly valuable
feedback to their line manager.
Definition:
“180OAppraisal extends the traditional
appraisal process to make the feedback process
Two-way. Feedback from team members can be
provided to their line manager on a one-To-one
basis during the individual’s appraisal
discussion, or it can be collated and presented
as group feedback from all team members.”
Basically 180 degree performance appraisal used by many Indian companies
because it is more comfortable in comparison to 360 degree performance
appraisal system. It is easy to do for company. JK Cement is also working 180
degree performance appraisal.
Main benefits of 180 degree appraisal:
Wider business implementation
Alignment of learning and development investment with major
improvement opportunities
Determine future potential skills gaps exposed by key strategic
programmes
Reduce administration workload and waste associated with paper-based
systems. 1800 appraisal is available as either web-based software to be
installed by your IT department or hosted by Head Light Communications
Features:
A robust competence framework, pre-populated with customisable
template definitions of common major roles, departments and
competence definitions at multiple levels, each with their own sets
of customisable behavioral indicators.
Ability to integrate 180 degree appraisal with an existing HR
database to avoid unnecessary duplication and data entry, with
Microsoft's Active Directory and with 360 degree appraisal and
Talent Navigator to make a complete assessment and development
planning suite.
Easy to use questionnaire writing and management tools including
version control.
Highly customizable look and feel of screens and reports. This
includes introduction text, imagery, colours, the naming of review
groups, and identifiers such as Staff Id/Payroll No/Warrant No. and
all emails and acknowledgements.
Supplied with customizable best-practice guidelines for conducting
competence reviews.
Automatically generates an electronic report of an individual’s areas
of strength and identifies weaknesses on which to focus
development plans and a printed copy for use in a performance
appraisal meeting also suitable for formal record keeping.
Automatically creates benchmark data sets by role, grade, team,
job family or other denominator that can be used for development
planning purposes.
A comparison engine for HR managers to set performance
thresholds by role, competence, job grade and level, to create
benchmarks and to use these to report staff strengths and
development needs against these standards.
Following this competence review cycle, 180 degree appraisal will help you
identify and report candidates for high potential development programmes and
skills gaps against key roles and strategic initiatives. By doing so, it will also help
you align your investments in learning and development on the areas of greatest
strategic importance.
HOW IT IS ASSESSED
The feedback process is key to the success of 180˚ or 360˚ appraisal feedback.
You need to consider whether:
The individual should receive the completed feedback questionnaire(s) or
a report that aggregates the feedback. The latter is preferable as it
preserves the Anonymity of the respondents.
Direct reports should provide feedback to their line manager face-to-face.
Some organizations see that the easiest next step for their appraisal
process is to encourage upward as well as downward feedback during the
appraisal discussion, (see ‘How to Prepare an Appraisal’, for a more
detailed description of the appraisal discussion). This can be a difficult
option as without an open culture and a high level of interpersonal skills,
individuals may find it difficult to provide honest feedback to their line
manager.
The feedback is provided to the individual by his or her line manager or by
an independent third party. This works particularly well if the third party is
skilled in giving feedback and can go on to act as a coach.
it’s a full-circle overview of a person’s performance on the job. Instead of a
single evaluations from the boss, a person receive feedback from many
workplace sources.
Sometimes 3600 are called multi-source or multi-rater assessments.The boss still
gives input, but peers and direct reports (people who report to the participant)
also get involved in the evaluation process. The person participating in a 360
degree gets to rate his or her performance, too. Applying their individual
observation 7 experience, everyone involved brings difference perspectives to
the assessment. For participants, the feedback from multiple work associates is
highly motivating. used as a spring board for professional growth , the
assessment can make a powerful impact on an individual’s career and a
company’s success.
The 360 degree assessment process is designed as an ongoing process that can
be used at key intervals, usually annually, to monitor the progress of
professional growth.
How does checkpoint 3600 system work?
1. surveys are filled in by the participants and his or her boss, peers &
direct reports. Responces of the peers 7 direct report are kept
entirely anonymous. The standard checkpoint survey has 70 items
and takes approximately 15 min. to complete. It covers
competencies in the areas of communication, leadership,
adaptability, relationship, task management, production,
development of others personal development.
2. Results from all of the surveys awe compiled in a confidential
feedback report. Graphs & charts relate the data in a detailed,
easy to understand format. The report presents a balance picture
of perceptions about a Person’s skill.
3. Participants use the information from the feedback report to
establish goal & ongoing actions plans, aimed at better utilization
their strong points & improving their weaker skills. They can use the
360 degree process before and after training apportinities to
measure their effectiveness & measure gains.
180˚ and 360˚ Appraisal and Investors in People
The Investors in People indicators provide a clear framework for the
development of an appraisal system. Check the effectiveness of your system by
working through the following indicators and associated evidence.
Top managers can explain the organisation’s learning and development needs,
the plans and resources in place to meet them, how these link to achieving
specific objectives and how the impact will be evaluated.
Managers can explain team learning and development needs, the activities
planned to meet them, how these link to achieving specific team objectives and
how the impact will be evaluated.
People can describe how they are involved in identifying their learning and
development needs and the activities planned to meet them. People can explain
what their learning and development activities should achieve for them, their
team and the organisation.
REQUIREMENTS OF SOUND
PERFORMANCE APPRAISAL SYSTEM
Requirements of a sound performance appraisal system:
Reliability: appraisal system should provide consistent, reliable and valid
information and data which can be used to defend the organization even in legal
challenges. If two appraisers are equally qualified and competent to appraise an
employee with the help of Same appraisal technique, their rating should be
agreed to each other.
Job relatedness: the appraisal technique should measure the performance
and provide information in job related activities/areas.
Standardization: appraisal forms, procedures, administration of technique,
rating etc. should be standardized.
Practical validation: the technique should be practically valid and possible to
implement.
Legal sanction: appraisal must meet the loss of the land.
Training to appraisers: because appraisal is the most important and some
times difficult. It would be useful to provide training to appraisers.
Familiarity with rating errors can improve raters performance and this may inject
the needed confidence in appraisers to look into performance ratings more
objectively.
Open communication: most employees want to know how well they are
performance on job. The appraisal interview should permit both the parties to
learn about the gaps and themselves for future.
Employee access to results: employee should know the rules of game.
They should receive adequate feedback on their performance.
SOME STANDARD RATING FACTORS
What should be rated? : One of the step is designing an appraisal
programmed is to determine the evaluation criteria. It is obvious that the criteria
should be related to the job. The six criteria for assessing performance are:
1. Quality: the degree to which the process or result of carrying out an
activity approaches perfection in terms of either conforming to some ideal
way of Performing the activity, or fulfilling the activities intended purpose.
2. Quantity: the amount produced, expressed in terms, number of units, or
number of completed activity cycles.
3. Timelines: the degree to which an activity is completed or a result
produced, at the earliest time time desirable from the standpoints of both
coordinating with the outputs of others and of maximizing the time
available for others activities.
4. Cost effectiveness: the degree to which the use of the organization’s
resources (E.g. human, monitory, technological and material) is
maximized in the sense of getting the highest gain or reduction in loss
from each unit or instance of use of
RESOURCES.
5. Need for supervision: the degree to which a job performer can carry
out a Job Function without either having to request supervisory
assistance or requiring supervisory intervention to prevent an adverse
outcome.
6. Interpersonal impact: the degree to which a performer promotes
feeling of Self-esteem, goodwill and co-operation among co-workers and
subordinates.
STANDARD RATING FACTOR
A STANDARD APPRAISAL SYSTEM SHOULD MEET THE FOLLOWING
PURPOSE OF THE COMPANY
Development use specific purpose
Identification of individual needs
Performance feedback
Determining transfers and job assignments
Identification of individual strengths and
developmental Needs.
Administrative use: salary
Promotion
Retention & termination
Lay-offs
Identification of poor performance
Organizational HR planningMaintenance : determining organization training needs Objective Evaluation of organizational goal achievement
Information of goal identification
Evaluation of HR system
Reinforcement of organizational developmental
needs Criteria of validation research of HR
decision to meet legal requirements.
STANDARD FORMAT OF INTERVIEW
o Select a good team.
o Minimize interruptions.
o Welcome, set at ease.
o Start with something positive.
o Ask open ended questions to encourage discussions.
o Listen
o Manage eye contact and body language
o Be-specific
o Rate behaviour, not personally
o Lay out development plan
o Encourage subordinate participation
o Complete form
o Set mutually agreeable goals for improvement
o End in positive, encourage note
o Set time for any follow up meetings.
Feedback: sensitive interpersonal transactions:
Feedback is focused on the behaviour of a person not on the person himself.
o Feedback must be well timed.
o Feedback must be intended to help the person.
o Feedback must be continuous rather than sporadic.
o Feedback should be suggestive, not perspective.
o Feedback should re-enforce positive new behaviour.
SOME APPRAISAL
FACTOR USED BY INDIAN
COMPANIES
Some appraisal factors used by Indian companies
INDIAN TOBACCOCOMPANY
ACC LTD. I.O.C. LTD. SANDOZ(INDIA)LTD.
UNION OF INDIA LTD.
1. ability to plan, delegate, control and coordinate
2. knowledge of job
3. clarity about objective
4. cost consciousness and result
5. power of expression, written and verbal
6. decision making
7. compression
8. use of discretion and judgment
9. resourcefulness and industry
10. co-operation
11. manner and general bearing
12. dealings and relations with seniors and juniors
13. leadership
14. Courage to disagree
& to reason tactfully.
1. Ability to take decision.
2. leadership
3. organizing ability
4.understanding and conformity with policy
5. judgement
6. employee relationship
7. delegation
8. ability to communicate
9. sociability
10. ability to run meetings
11. knowledge and execution of responsibilities
12. attitude of work
13. loyalty
14. Initiative.
1. Job knowledge
2. quality and dependability
3. quantity of work
4. planning, organizing and controlling
5. developing people
6. cost consciousness
7. intelligence and decision making
8. leadership
9. initiative and original thinking
10. attitude and cooperation
11. Integrity.
1. quality of work
2. availability of work
3. ability to learn
4. knowledge of work
5. initiative
6. dependability
7. personality
8. tidiness
9. Attendanc
1. Job knowledge.
2. work output
3. drive
4. ability to handle people
5. judgement
6. ability to communicate
7. creativity
8. organizing ability
FACTOR COMPARISON
FINDINGSAND
SUGGESTIONS
FINDINGS AND SUGGESTIONS:
The study conducted on performance appraisal of JK Cement shows the
evaluation of performance appraisal in this regard major findings & suggestions
thereon are narrated as Unused:
Findings:
180 degree appraisal system almost fulfill all the requirements of
organization and this appraisal system consists all the characteristics of
the standard appraisal System as we find that:
Understanding the individual objective is the foundation of exemplary
Performance which was explained very first in questionnaire.
The questionnaire enlightening the best executive abilities are the
essentials Elements for the growth of the marketing and sales.
this system reflects the individual behaviour during working hours which
extremely needed for team work and healthy environment.
Clarity of individual contribution can tell a employee where he stands and
this questionnaire explains the job impact & contribution of individual.
The appraisal through two above and two below officers in an organization
Hierarchy reduces the chances of biasness and makes appraisal system.
Although all the rating factors are comprised by this system but the
sequence of question made the system difficult to operate.
Feed back is essential for appraising an individual’s performance but
receiving Feedback from multiple sources can be intimidating.
This can create enormous problems to separate honest observations
from personal differences and biasness.
Multiple raters are less adept at providing a balanced an objective
feedback then The supervisors. Who are sought to be replaced.
More & more number of firms are using this system but they have to face
the Problem regarding selecting the rather, designing questionnaire,
analysis the data.
SUGGESTIONS:
Some important rating factors like timeliness & productivity must
included in questionnaire.
To make the performance appraisal system time saving the likert scale
method Should be used as in:
Executive abilities.
Self appraisal of key result areas.
To make the potential system effective firm should – describe the
role.
Describe the qualities needed for performing the role.
Simulation, games, exercise (like assessment centre, business
games, in basket, role play) could be used to uncover the
performance of candidate.
Performance records and ratings of a candidate or his previous
jobs could be examined carefully on various devices such as
initiative, risk taking ability, creativity etc. which may play vital role
in discharging his duties in a new job.
The firm which are using critical – incident method have been
benefied a lot. So, company should adopt this approach because it
forces on certain critical behaviours of an employee that make all
the differences between effective & non effective performance of a
job.
Questionnaire
The performance of accounting department
Q-4 (PART-1B)REVIEW DISCUSSIONS
(To be filled by the reporting officer)
Q-5 PART-2(To be filled by the reporting officer)
EXECUTIVE ABILITY COMMENTS1. JOB KNOWLEDGE2. SALES SKILLS3. COST EFFECTIVENESS4. SPECIFIC ABILITIES5. INITIATIVE6. JUDGEMENT7. ADAPTIBILITY8. DEVELOPMENT OF
SUBORDINATES9. COMMUNICATION SKILLS
Integrity : Nothing adverse / questionable (If, questionable, brief details may be indicated)………………………………………………………………………………….... ………………………………………………………………………………………………
Q-6
OVERALL- EVALUATION
REPORTING OFFICER
REVIEWING OFFICER
NEXT HIGHER IN HIEARARCHY
OutstandingGoodAverageBelow averageUnsatisfactoryComments, if any
PART-4
FINAL ASSESSMENT BY MODERATION COMMITTEE
OVERALL ASSESSMENT
OUTSTANDING GOOD AVERAGE BELOW AVG UNSATISFACTORY
FINAL RATING Outstanding / good / avg / below avg / unsatisfactory
CONFIDENTIAL REPORT BY APRAISEE
NAME:
DESIGNATION:
Q-7
A. PRIMARY PURPOSE AND OVERALL OBJECTIVE OF THE JOB {100 WORDS}
Q-8
B. CONTEXT OF THE JOB: How does your job impact and contributes to the business
Q-9
C. ORGANISATIONAL STRUCTURE: Define the organizational structure, two levels above and two level below, including all peer roles and identify your position.
Q-10
D. MAIN RESPONSBILITIES: list the responsibilities in enough detail to explain what activities are performed in specific area of responsibilities, how they are completed and whom you depend on to complete the same. List responsibilities in order of priority and designate a percentage of time spent on each responsibility. These should be approximately 100%:
Q-11
First area of responsibility:%time
Second area of responsibility:%time
Third area of responsibility:%time
Fourth area of responsibility:%time
Fifth area of responsibility:%time
CONFIDENTAL(BY IMMEDIATE SUPERIOR)
BEHAVIOURAL INDICATORS
12. Does he organize & present ideas effectively for formal & spontaneous speeches 1 2 3 4 5
13. Does he effectively participate in discussions & presentations1 2 3 4 5
14. Does he listen carefully and respond to verbal and messages prepare concise and logically written material and reports.1 2 3 4 5
15. Does he respond appropriately to positive and negative feedback.1 2 3 4 5
16. Does he debate issue without being abrasive to others1 2 3 4 5
17. Does he remains in touch with immediate superiors.1 2 3 4 5
18. Does he prepare concise and logically material.1 2 3 4 5
(1)- Very poor(2)- Poor(3)- Average(4)- Good(5)- Very good
SIGNATURE: DATE:
NAME:
DESIGNATION:
Q-19
Employee detail:-
NAME : ………………………………………………………
Designation : ……………………………………………………….
Qualification : ……………………………………………………….
Category/group : ……………………………………………………….
Employee code no. : ………………………………………………………..
Department : ………………………………………………………..
Scale of pay : ………………………………………………………...
Duration in a company : ………………………………………………………...
Q-20
To be filled by the Interviewer
Remarks:
Co-operative :
Non co-operative : Name of the interviewer : ……………………………………
Signature of interviewer
Date: ……………………
BIBLOGRAPHY1. books
Aswathappa. K. Human resource management and personal management. Tata Mc Graw Hill (fourth edition).
V.S.P. Rao Human Resource Management “Excel Books” (second edition).
Monga M.D. Management of Performance Appraisal “Himalaya Publishing House” (edition 1983)
Saiyadin S. Mirza Human Resource Management “Tata Mc Graw Hill
2. Internet
WWW.J.K. Cement.Com
http://www. J.k. cement.com/management-philo htm.
http://www. J.k.cement.com/about.htm
http://www. J.k.cement.com/management.htm
http://www. J.k.cement.com/strength htm
www.works teams unt.ed.
USO/proceed/jware-htm
OUS.USA net/masabro-htm
http://www.team since.com.
.