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Internship report 2007eit043

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  • 1. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM Table of Contents CHAPTER -1 ............................................................................................................... 4 INTRODUCTION ........................................................................................................ 4 1.1 INTRODUCTION OF THE COMPANY .................................................... 5 1.2 INTRODUCTION OF THE SUBJECT ....................................................... 5 1.3 OBJECTIVE OF THE STUDY ................................................................... 6 CHAPTER-2 ................................................................................................................ 7 LITERATURE REVIEW ............................................................................................. 7 2.1 COMPANY‟S CLIENTS AND PROJECTS ....................................................... 8 2.2 POSITION IN FURNITURE INDUSTRY ............................................................ 9 2.3 RAW MATERIAL AND MANUFACTURING PROCESS .............................. 10 2.4 FUTURE PROSPECTS OF THE COMPANY.................................................... 10 2.5 VARIOUS DEPARTMENTS IN PROFORM INTERIORS PVT. LTD............ 11 2.5.1. INVENTORY DEPARTMENT ................................................................. 11 2.5.2. CARPENTARY DEPARTMENT .............................................................. 12 2.5.3. UPHOLSTRY DEPARTMENT.................................................................. 13 2.5.4. MACHINE DEPARTMENT ..................................................................... 13 2.5.5. ASSEMBLY DEPARTMENT ................................................................... 15 2.5.6. POLISH DEPARTMENT .......................................................................... 16 2.5.7. DISPATCH DEPARTMENT.................................................................... 19 2.5.8. PRODUCTION, PLANNING AND CONTROL ..................................... 20 2.6 PERFORMANCE APPRAISAL SYSTEM ........................................................ 21 2.6.1 MEANING OF PERFORMANCE APPRAISAL .......................................... 21 2.6.2 ADVANTAGES OF PERFORMANCE APPRAISAL ................................. 21 2.6.3 METHODS OF APPRAISAL ....................................................................... 22 2.6.3.1 Graphic Rating Scale Method ................................................................. 22 2.6.3.2 Alternation Ranking Method .................................................................. 23 2.6.3.3 Paired Comparison Method .................................................................... 23 2.6.3.4 Forced Distribution Method .................................................................... 23 2.6.3.5 Critical Incident Method ......................................................................... 24 2.6.3.5 Behaviorally Anchored Rating Scale ...................................................... 24 1PRIYANKA JAIN 2007EIT043
  • 2. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM 2.6.3.6 Management by Objectives (MBO) ........................................................ 25 2.6.3.7 360 Degree Appraisal system ................................................................ 26 Peer to peer appraisal form ......................................................................... 29 Self Appraisal Form ..................................................................................... 30 Down To Top Employee Performance Evaluations ..................................... 30 Subordinate Appraisal Form ......................................................................... 31 2.7 EXISTING SYSTEM OF APPRAISAL USED IN ORGANIZATION ............. 33CHAPTER- 3 ........................................................................................................................... 34RESEARCH METHODOLOGY............................................................................................. 34 3.1.RESEARCH DESIGN ........................................................................................ 34 3.2. SAMPLING DESIGN ......................................................................................... 34 3.3. SOURCES OF DATA ......................................................................................... 34 3.4. DATA COLLECTION TOOLS .......................................................................... 34 3.5. METHODS OF DATA COLLECTION ............................................................. 34 3.6. ANALYSIS OF DATA ....................................................................................... 34 3.7. RESEARCH ........................................................................................................ 34 1.) Within the organization ..................................................................................... 36 2.) Outside the organization ................................................................................... 36 WITHIN THE ORGANIZATION .......................................................................... 37 DETAILED RESPONSES FROM VARIOUS DEPARTMENTS ........................ 38CHAPTER -4 ........................................................................................................................... 53FINDINGS ............................................................................................................................... 55CHAPTER-5 ............................................................................................................................ 58CONCLUSION ........................................................................................................................ 59CHAPTER-6 ............................................................................................................................ 60RECOMMENDATIONS ......................................................................................................... 60 RECOMMENDED SYSTEM .................................................................................... 61 CRITERIA AND RULES: ......................................................................................... 64 BEST EMPLOYEE OF THE MONTH SCHEME .................................................... 65 SUGGESTIONS ......................................................................................................... 66CHAPTER – 7 ......................................................................................................................... 67LIMITATIONS ........................................................................................................................ 67CHAPTER -8………………………………………………………………………………...73 2PRIYANKA JAIN 2007EIT043
  • 3. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMBIBLIOGRAPHY .................................................................................................................... 70CHAPTER -9………………………………………………………………………………...75ANNEXURE 3PRIYANKA JAIN 2007EIT043
  • 4. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER -1 INTRODUCTION 1. INTRODUCTION OF THE COMPANY 2. INTRODUCTION OF THE SUBJECT 3. OBJECTIVES OF THE STUDY 4PRIYANKA JAIN 2007EIT043
  • 5. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM1.1 INTRODUCTION OF THE COMPANYProform Interior‟s Pvt. Ltd is one of the leading companies in furniture manufacturing,furniture trading and interior design in New Delhi, India, providing complete lifestylesolutions to our repute clientele.1.2 INTRODUCTION OF THE SUBJECTThe meaning of the word "appraisal" is "to fix a price or value for something". This is used infinance in terms such as project appraisal or financial appraisal where a value is attached to aproject. Similarly performance appraisal is a process in which one values the employeecontribution and worth to the organization. Employees across the entire organization areappraised of their performance. This could be done annually, twice a year, periodically,depending upon the need of the organization. A performance appraisal is a formal review ofemployee performance. At a performance appraisal, objectives or targets are agreed betweenmanager and employee. At each subsequent appraisal, current and past performance iscompared and targets are reviewed.It is a prescribed system with a meeting arranged after a set period to review the targets set bythe previous appraisal. This may be six-monthly or annually, depending on your organization.Nonetheless, the performance appraisal is not only a means to review performance standardsand specific targets.The performance appraisal interviewAt its simplest, the appraisal interview consists of three steps: setting targets or standards measuring performance planning the appropriate actionA performance appraisal begins with an interview between manager and employee, anappraisal form is completed, and action is agreed. The action plan will specify targets toimprove job performance, and indicate what is the reward for improvement. This reward maybe a salary increase, job promotion, an opportunity to join a management developmentscheme, or to enroll in a new training program. 5PRIYANKA JAIN 2007EIT043
  • 6. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM1.3 OBJECTIVE OF THE STUDYThe organization has a small HR department. It handles recruitment, leaves and appraisalrelated issues. As told by our trainer that company uses 360 degree method of performanceappraisal. But as we conduct a survey, we came to know that it s not properly applied . heperformance of the workers is mainly evaluated by the head of their respective departmentsi.e their superiors. Therefore, I decided to pick up this topic to Identify current job performance system Identify individual employee strengths and weaknesses Identify training and development needs Identify potential performance standards 6PRIYANKA JAIN 2007EIT043
  • 7. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER-2 LITERATURE REVIEW1. CLIENTS AND PROJECTS.2. POSITION IN THE INDUSTRY.3. RAW MATERIAL AND MANUFACTURING PROCESS.4. FUTURE PROSPECTS OF COMPANY.5. VARIOUS DEPARTMENTS IN PROFORM INTERIORS. 1. INVENTORY DEPARTMENT 2. CARPENTARY DEPARTMENT 3. MACHINE DEPARTMENT 4. ASSEMBLY DEPARTMENT 5. POLISH DEPARTMENT 6. QUALITY CHECK 7. DISPATCH DEPARTMENT 8. ENGINEERING DEPARTMENT 9. PERSONNEL DEPARTMENT 10. ACCOUNTING DEPARTMENT6. PERFORMANCE APPRAISAL SYSTEM. 6.1 MEANING 6.2 ADVANTAGES OF PERFORMANCE APPRAISAL SYSTEM 6.3 METHODS OF PERMANCE APPRAISAL SYSTEM7. EXISTING SYSTEM OF PERFORMANCE APPRAISAL 7PRIYANKA JAIN 2007EIT043
  • 8. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM2.1 COMPANY’S CLIENTS AND PROJECTSThe company has established a technology oriented and highly mechanized manufacturingunit for producing premium and quality furniture, headed by German Engineers. It hascreated a niche in the market for its unmatched quality, design and finish and is successfullyrunning its two flagship stores under the brand name of “Proform” and “Proform World”.Following are the Italian companies with whom Proform Interiors is associated:-  Casamilano  Porada  Arketipo  Missura Emme  Arketipo  Fiam  Italia  Livit  Comprex  Flos  Louis Poulsen TABLE 3.1The showrooms display contemporary & lifestyle furniture and kitchens manufactured inIndia and Italy. The company is specialize in Wardrobes and Kitchens. Its emphasis lies inDesign. Intense dedication and passion goes in designing every space and every piece offurniture to arrive at supreme quality levels. Having said so, it provide a unique designservice with the latest technology imported from Germany and Italy wherein it customize inaccordance to the client‟s needs and requirement, keeping the quality standards andconvenience in mind. Corporate Offices: Hotels  Bangur Calcutta  Oberoi Hotel, New Delhi  Jindal Pipes  Imperial Hotel, New Delhi  Jindal Saw Pipes  Trident Hilton, Mumbai 8PRIYANKA JAIN 2007EIT043
  • 9. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM  Saw pipesList of Sample Apartments / Major Projects which completed  Omaxe Baddi . NRI City, Gurgaon, Sonepat, Faridabad  Unitech Gurgaon, New Delhi, Kolkatta  Uppal Jasola, Chandigarh, Plumeria, Lucknow, CC Constructions  BMW Office  Hero Motors TABLE 3.22.2 POSITION IN FURNITURE INDUSTRYIn India, furniture and most wood products are manufactured all in the unorganized sector.Even today almost 95% of the production remains in the unorganized sector. In one of thestudies undertaken by the Exim Bank of India and published as an occasional paper in year2000, it was estimated that the overall Indian wooden furniture market would be in the regionof 6000 to 6500 crores. The growth of furniture industry rides on the back of the growth inthe building industry. Foreign direct investment into the construction industry has beenallowed. The construction industry was growing at a rate of 8% in line with the growth inGDP. The concept is that of buying readymade furniture. The same concept is gaining groundin India, and the day is not very far when this type of sale shall take over the made to ordersegment. The company‟s market segment is Elite and upper middle class only. It caters toleading corporate offices which accounts for 15 to 20% of the total output. Workstations and 9PRIYANKA JAIN 2007EIT043
  • 10. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMmodular concept of furniture made an entry and took the corporate segment by storm. Itmanufactures furniture for 4 Star and 5 Star Hotels.2.3 RAW MATERIAL AND MANUFACTURING PROCESSThe main Raw material is hardboard, Medium Density Fiberboard, Particle Board Wood etc.All the raw material & Hardware is of International Quality and International Standards.Hardware is from Hettich of Germany. Blum of Austria, Saliche of Italy. All the companieshave agents in India, and procuring the same is not a problem as they are available locally.The advent of Particleboard and MDF (Medium Density Fiber) changed this scenariocompletely. These new generation boards are engineered to give desired properties to thefinished boards. They are homogeneous and have equal strength in all directions along thesurface. Panel products have several advantages over solid wood. Panel products are factorymade in uniform standard sizes. They are homogeneous with predictable properties. Becausethey are processed in a factory, panel products are available in a large quantity from a singlesource. Most of the operations are already carried out in the factories, so no primaryprocessing necessary at the product manufacturing sites The factory is capable tomanufacture furniture for mass production as well as for furniture for specific and customrequirement. The company is already manufacturing furniture from Panel wood materials andtherefore the next stage is to go in for mass production of the same. There are two Factorieslocated in Delhi and Gurgaon2.4 FUTURE PROSPECTS OF THE COMPANYExpansion PlanLooking into the growth opportunity in the furniture industry and the past experience of thecompany, the company has now embarked on getting some balancing equipments tomanufacture Panel furniture and to a certain extent supported by solid wood. The main plantis being imported from Italy & Germany. By addition of these machines not only productionwill increase but the quality shall also improve. Proform is ready to mark its presenceoverseas. Looking at the current expansion and growth we have chosen Dubai as our first 10PRIYANKA JAIN 2007EIT043
  • 11. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMstep, whereby we‟ve taken 4,400 square meters space in Dubai (on the Sheikh Zayed Road3rd intersection.)2.5 VARIOUS DEPARTMENTS IN PROFORM INTERIORSPVT. LTD.The organization is very large consisting of about 10 departments and most of them aremanufacturing or product development department. Each department has a head who isresponsible for completing the target assigned to that department.The various departments in the organization are as follows 11. INVENTORY DEPARTMENT 12. CARPENTARY DEPARTMENT 13. MACHINE DEPARTMENT 14. ASSEMBLY DEPARTMENT 15. POLISH DEPARTMENT 16. QUALITY CHECK 17. DISPATCH DEPARTMENT 18. ENGINEERING DEPARTMENT 19. PERSONNEL DEPARTMENT 20. ACCOUNTING DEPARTMENT Let’s have a brief introduction about each of these departments: 2.5.1. INVENTORY DEPARTMENT This department is responsible for keeping a track of all the raw material needed formanufacturing the products. All the raw material that is sent by the supplier is first deliveredto the inventory. As per the information provided to us by the H.O.D , Mr. Neeraj Diwedi, theentry date and time of each supply is at first recorded manually in the Inventory register andthen updated in a computer record. The software that is used for it is known as Tally. About4000 kinds of raw material are delivered. The important material consist of wood, foam,pasting material, glasses. The commonly use wood consist of pine, steambeach, American 11PRIYANKA JAIN 2007EIT043
  • 12. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMteak, walnut etc..Foam is also of various types depending upon their density. Likewise,variety of pasting material depend upon its usage that whether it has to be use for pastingfoam or the finishing material. But the variety of covering material available depends uponthe client requirement. As all the major suppliers of these have their branch in NCR so all theraw material is available locally. The raw material is supplied to all the departments as pertheir requirement duly written and signed by the respective H.O.D.2.5.2. CARPENTARY DEPARTMENTThe department is located in the basement of the plant/factory. This department mainlyconsists of 40 labour workers/carpenters including 6 staff members working under theH.O.D. , Mr. RamjiLal. He has been working in the organization since 8years. Thisdepartment mainly consists of chopping the wood, framing the basic structure upon which theentire furniture is constructed. Although some part of the task is accomplished manually byhand but 8 machines are also available. The semi-finished goods prepared in this departmentare send to upholstery and polish department. 12PRIYANKA JAIN 2007EIT043
  • 13. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM2.5.3. UPHOLSTRY DEPARTMENTThe department is responsible for providing the looks and style to the furniture. Its taskconsist of working on the frames constructed by the carpentry department and building thefurniture using foam, covering material and other materials. The department consists of tailor,weavers and other skilled workers working under the H.O.D Mr. Rajendra Prasad. There are28 workers in the department consisting of 2 staff members. The finished goods prepared inthis department are send to dispatch department.2.5.4. MACHINE DEPARTMENTThe department consists of about 12 machines. the department is responsible for tasks suchas making holes in wooden board, smoothening board laminating weiner on the board. TheH.O.D of this department is Mr. Noor Hasan. 13PRIYANKA JAIN 2007EIT043
  • 14. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM 14PRIYANKA JAIN 2007EIT043
  • 15. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM2.5.5. ASSEMBLY DEPARTMENT After all the parts of the furniture are constructed they are assembled in this department. TheHOD of this department is Mr. Dinesh Singh. About 12 labour workers, work under hissupervision. The task of this department is done manually. No machine work is involved. Theprevious and successive stages of this department are internal quality check and externalquality check respectively 15PRIYANKA JAIN 2007EIT043
  • 16. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM.2.5.6. POLISH DEPARTMENTThis department is responsible for providing looks and shine to the product. Inputs of thisdepartment are semi-finished goods from carpentry department. The H.O.D of thisdepartment, Mr.Upendra provided us detailed description about the working of thedepartment. The base is constructed on which the white siller is applied. After this sanding isdone through machine. After which sanding is done through hands. The product then goesinto the coloring chamber in which it is coated with desired color. Then the colored woodgoes in the polishing chamber where it is double coated, base coat and top coat. The productthen goes for high gloss finishing in which sanding is done again after applying polysterfinishing. The strength varies depending upon the requirement. It may be 600, 800, 1200 051500. After that it is provided high glossy appearance with the help of glender. The finalproduct doesn‟t appear to be that of wood. Product also undergoes leafing for providing shinyappearance in various colors. The final product then goes to internal quality check. If itpasses the quality check then it is send to assembly department. 16PRIYANKA JAIN 2007EIT043
  • 17. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM 17PRIYANKA JAIN 2007EIT043
  • 18. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM 18PRIYANKA JAIN 2007EIT043
  • 19. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM2.5.7. DISPATCH DEPARTMENT This department is responsible for keeping the track of the finished goods. It keepsrecords that which finished goods are to be supplied to which client. The HOD of thisdepartment is Mr.Hansraj. Just 4-5 labour workers work under his supervision. 19PRIYANKA JAIN 2007EIT043
  • 20. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM2.5.8. PRODUCTION, PLANNING AND CONTROL This department is responsible for assigning targets to different departments. He gathersall the information regarding the losses and reports it to the Director of the company. He hasa record of the arrival and the due date of each order. Accordingly he assigned targets tovarious departments. 20PRIYANKA JAIN 2007EIT043
  • 21. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM2.6 PERFORMANCE APPRAISAL SYSTEM2.6.1 MEANING OF PERFORMANCE APPRAISALPeople differ in their abilities and their aptitudes. There is always some difference betweenthe quality and quantity of the same work on the same job being done by two differentpeople. Performance appraisals of Employees are necessary to understand each employee‟sabilities, competencies and relative merit and worth for the organization. Performanceappraisal rates the employees in terms of their performance.Performance appraisals are widely used in the society. The history of performance appraisalcan be dated back to the 20th century and then to the second world war when the merit ratingwas used for the first time. An employer evaluating their employees is a very old concept.Performance appraisals are an indispensable part of performance measurement.The latest mantra being followed by organizations across the world being – "get paidaccording to what you contribute" – the focus of the organizations is turning to performancemanagement and specifically to individual performance. Performance appraisal helps to ratethe performance of the employees and evaluate their contribution towards the organizationalgoals. If the process of performance appraisals is formal and properly structured, it helps theemployees to clearly understand their roles and responsibilities and give direction to theindividual‟s performance. It helps to align the individual performances with theorganizational goals and also review their performance.Performance appraisal takes into account the past performance of the employees and focuseson the improvement of the future performance of the employees.2.6.2 ADVANTAGES OF PERFORMANCE APPRAISALThe increasing use of Performance management reflects several things. It reflects, first,the popularity of the Total Quality Management (TQM) concepts advocated several yearsago by management experts like W. Edwards Deming. Basically, Deming argued that anemployee‟s performance is more a function of things like training, communication, tools,and supervision than of his or her own motivation. 21PRIYANKA JAIN 2007EIT043
  • 22. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMPerformance Management emphasis on the integrated nature of goal setting, appraisal,and development reflects this assumption. Second, it reflects the fact that a vast array ofstudies that traditional performance appraisal are often not just useless butcounterproductive. Third, Performance management as a process also explicitlyrecognizes that in today‟s globally competitive industrial environment, every employee‟sefforts must focus like a laser on helping the company to achieve its strategic goals. Inthat regard adopting an integrated; performance management approach to guiding,developing, and appraising employees also aids the employer‟s continuous improvementefforts. Continuous improvement refers to a management philosophy that requiresemployers to continuously set and relentlessly meet ever-higher quality, cost, delivery,and availability goals.There are many advantages of performance appraisal within an organization :1. To effect promotion based on competence and performance.2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily.3. To assess the training and development needs of employees.4. To decide upon a pay rise where (as in the unorganized sector) regular pay scales have not been fixed.5. To let the employees know where they stand insofar as their performance isconcerned and to assist them with constructive criticism and guidance for thepurpose of their development.6. To improve communication. Performance appraisal provides a format for dialoguebetween the superior and the subordinate, and improves understanding of personalgoals and concerns. This can also have the effect of increasing the trust betweenthe rater and the ratee.2.6.3 METHODS OF APPRAISAL2.6.3.1 Graphic Rating Scale MethodThe Graphic Rating Scale is the simplest and still most popular technique for appraisingperformance. A Graphic Rating Scale lists traits (such as quality and reasonability) and arange of performance values (from unsatisfactory to outstanding) for each trait. The 22PRIYANKA JAIN 2007EIT043
  • 23. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMsupervisor rates each subordinate by circling or checking the source that best describeshis or her performance for each trait. The assigned values for the traits are then totaled.2.6.3.2 Alternation Ranking MethodRanking employees for the best to worst on a trait or traits is another option. Since, it isusually easier to distinguish between the worst and best employees, and Alternation RankingMethod is most popular. First, list all subordinate to be rated, a then close out thenames of any not known well enough to rank. Then, on a form the employees who ishighest on the characteristics being measured and also the one who is the lowest. Thenchoose the next highest and the next lowest, alternating between highest and lowest untilall employees have been ranked.2.6.3.3 Paired Comparison MethodThe Paired Comparison Method helps make the Ranking Method precise. For every trait(quantity of work, quality of work, and so on), you pair and compare every subordinatewith every other subordinate.Suppose you have five employees to rate. In the Paired Comparison Method, you make achart, of all possible pairs of employees for each trait. Then, for each trait, indicate (witha+ or a-) who is the best employee of the pair. Next, add up the no. of +s for eachemployee.2.6.3.4 Forced Distribution MethodThe Forced Distribution Method is similar to grading on a curve. With this method, youplace predetermined percentage of ratees into performance categories.For example, you may decide to distribute employees as follows.15% High Performers20% High-Average Performers30% Average Performers 23PRIYANKA JAIN 2007EIT043
  • 24. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM20% Low-Average Performers15% Low Performers2.6.3.5 Critical Incident MethodWith the Critical Incident Method, the supervisor keeps a log of positive and negativeexamples (Critical Incidents) of a subordinate‟s work-related behavior. Every six monthsor so, supervisor and subordinate meet to discuss the latter‟s performance, using the incidentsas example.This method has several advantages. It provide actual example of good and poorperformance the supervisor can use to explain the person‟s rating. It ensures that themanager or the supervisor think about the subordinate‟s appraisal all during the year. Therating does not just reflect the employee‟s most recent performance. The list hopefullyprovides examples of what specifically the subordinate can do to eliminate anydeficiencies. However, without some numerical rating, this method is not too useful forcomparing employees or making salary decisions.It‟s useful to accumulate incidents that are tied to employee‟s goals.2.6.3.5 Behaviorally Anchored Rating ScaleA Behaviorally Anchored Rating Scale (BARS) combines the benefits of narratives,Critical Incidents, and quantified (Graphic Rating Type) scales by anchoring a rating scalewith specific behavioral examples of good or poor performance. Its proponents say itprovides better, more equitable appraisals than do the other tools to we discussed.Developing BARS typically requires five steps:1. Generate Critical Incident. Ask person who know the job (jobholders, and/orsupervisor) to describe specific illustration (critical incidence) of effective andineffective performance2. Develop Performance Dimensions. Have these people cluster the incidents into asmaller set of (5 or 10) performance dimensions, and define each dimension, such as“salesmanship skill”.3. Reallocate Incidents. Another group of people who also know the job then reallocatethe original critical incidents. They get the cluster definition and the critical incidents, 24PRIYANKA JAIN 2007EIT043
  • 25. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMand must reassign each incident to the cluster they think it fits best. Retain a criticalincident if some percentage (usually 50% to 80%) of this second group assigns it tothe same cluster as did the first group.4. Scale The Incidents. This second group then rates the behavior described by theincidents as to how effectively or ineffectively it represents performance on thedimension (7- to 9- points scales are typical).5. Develop A Final Instrument. Choose about six or seven of the incidents as thedimension‟s behavioral anchors.2.6.3.6 Management by Objectives (MBO)Stripped to its basics, Management by Objectives requires the manager to set specificmeasurable goals with each employee and then periodically discuss the latter‟s progresstowards these goals. You could engage in a modest and informal MBO program withsubordinates by jointly setting goals and periodically providing feedback. However, theterm MBO generally refers to a comprehensive and formal organization wide goal settingand appraisal program consisting of six steps:1. Set the organization’s goals: Establish, based upon the firm‟s strategic plan, andorganization wide plan for next year and set specific company goals.2. Set developmental goals: Next department heads take these company goals (like“boost 2004 profits by 20 %”) and, with there superiors, jointly set goals for theirdevelopments.3. Discuss departmental goals: Department heads discuss the department‟s goals withall subordinates, often at a department wide meeting. They ask employees to set theirown preliminary individual goals; in other words, how can each employee contributeto the department‟s goals?4. Define expected result (set individual goals): Department heads and theirsubordinates set short-term individual performance targets.5. Performance reviews: Department heads compare each employee‟s actual andtargeted performance. 25PRIYANKA JAIN 2007EIT043
  • 26. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM6. Provide feedback: Department heads and employees discuss and evaluate the laterprogress.2.6.3.7 360 Degree Appraisal systemTraditionally, performance appraisal was just limited to two main persons involved in thefeedback process - namely the supervisor and the employee. The top-down approach,the usual performance appraisal jamboree in corporate, is conducted where the supervisorand the employee discuss one-to-one on broad swath of issues pertaining to the lattersPerformance out comes. This traditional approach, involving supervisor and employee, isriddled with the problems of subjectivity, bias and halo effect. The traditional top-downapproach predicated on single source of feedback (i.e. supervisor) suffers onaccount of limited knowledge and inaccurate view of the not-so-competent supervisor.Many a time, supervisors also try to avert being on collision course with the sub-ordinatesand may obscure the picture by giving inputs that may be entirely untrue. Sincesupervisors are far removed from the flow of work, they may find it tough to give feedback hinged on actual observation. Even if the supervisor intends to give a positivecriticism he may still hold himself in the tracks for want of actual incident to buttress hisopinion. Half the time an individual does no get a real picture and gain an actual glimpse intothe kind of person one is. An employees ability to identify core strengths and quellingweaknesses gets irredeemably impaired. The information asymmetry about ourcompetencies, skills and performance related outcomes strait jackets the development,stultifies the growth and limits the perspectives. The question that begs an answer is: isthere a way forward? Is there a feed back approach where the inputs about an individual‟sperformance can be sourced from multiple – levels? Will it be possible for the individualto get feed back about his/her managerial and behavioral dimension from multiplesources? The answer to all these questions are deafeningly loud and crystal clear - 360-degree feedback holds the key. In todays competitive environment, gathering informationfrom all directions to assess ones standing has become an urgent imperative andcompelling necessity. In addition to this, the corporate culture is on the cusp of profoundevolution. There is an increased thrust on teamwork and delivering a world-classCustomer service. Employees development needs has become the byword among 26PRIYANKA JAIN 2007EIT043
  • 27. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMBusinesses. In a highly commoditized job market, companies are using every thing at theCommand to attract and retain the best talent. Businesses are helping employees toReplenish their skills to stay relevant in the evolving times. Companies are looking toWays and means to optimize and measure employees and company‟s performance. Thetrajectory of these developments has shifted the focus from single – source feed backsystem to multiple – source feedback system.If 360-degree performance reviews are performed, a Human Resources manager shouldcoordinate the process, so that subordinate reviewers (i.e., employees) are assured that theirperformance reviews are kept anonymous. SUPERIOR 90 90 NAME OF SELF PEER APPRAISE 90 90 SUBORDINATE FIGURE 2.2.1The 360-degree appraisal significantly differs from the traditional supervisor-subordinateperformance evaluation. Rather than having a single person play judge, a 360-degreeappraisal acts more like a jury. The people who actually deal with the employee each daycreate a pool of information and perspectives on which the supervisor may act. This group ofindividuals is made up of both internal and external customers.Using 360-degree appraisals provides a broader view of the employees performance. Themost obvious benefit of the 360-degree appraisal is its ability to corral a range of customerfeedback. Because each customer offers a new, unique view, it produces a more completepicture of an employees performance. Unlike with supervisors, employees cant hide aseasily in 360-degree appraisals because peers know their behaviors best and insist on givingmore valid ratings. In addition to providing broader perspectives, the 360-degree appraisalfacilitates greater employee self-development. It enables an employee to compare his or her 27PRIYANKA JAIN 2007EIT043
  • 28. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMown perceptions with the perception of others on the employees skills, styles, andperformance. There are different types of 360 degree feedback system :-Peer-to-Peer Employee Performance EvaluationsPeer-to-peer employee performance evaluations require employees at the same level toreview each other. The thinking behind peer-to-peer employee performance evaluations isthat nobody knows a workers ability better than his or her co-workers. While this can be aneffective review format for some groups of workers (for example, a team of doctors workingon a research project together, where specific content knowledge is required), it can alsocause controversy because of the way it affects future group dynamics. When evaluating theuse of these types of employee performance evaluations, consider the maturity level of theemployees involved and the long-term effects that could result from the source of negativereviews getting back to the team members. 28PRIYANKA JAIN 2007EIT043
  • 29. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMName of the Organization : Location:Name of Appraise : Designation: Age:Previous Appraisal Date: Time in present position: Date of joining:Appraisal Date & Time: Appraisal Venue: Appraiser: PEER TO PEER APPRAISAL FORM Please rate your colleague on the following parameters Rating can be done on 3 basis i.e. 1) Write down “E” if he/she “Exceeds” the quality 2) Write down “A” if he/she is “Acceptable” 3) Write down “N I” if he/she “Needs Improvement”Self-Assessment Performance ReviewsSelf-Assessment performance reviews are effective when combined with any of the otherthree types of performance reviews. With this type of review, employees are asked to ratethemselves, often using the same form that a manager will use to review them. Self-assessment performance reviews help make the employees an active part of the process andprovide a vehicle for them to reflect on their own performance prior to the formal review.Studies have shown that employees are usually harder on themselves in self-assessmentperformance reviews, than their managers and generally give themselves lower ratings. 29PRIYANKA JAIN 2007EIT043
  • 30. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM 0Having employees do self assessment performance reviews prior to a managers review can set a positive tone for the meeting, as the manager will often have better things to say than the employee has said about him or herself. Self Appraisal FormName of the Organization : Location:Name: Designation: Age:Previous Appraisal Date: Time in present position: Date of joining:Appraisal Date & Time: Appraisal Venue: Rate each question below on the scale of 1-5, according to how true it is of you. 1 2 3 4 5 Virtually never Virtually always Down To Top Employee Performance Evaluations Down-Top employee performance evaluations tend to be one of the most common and most effective method, because they involve the assessment of an employee by its subordinate. Down to top employee performance evaluations are most useful when given by an employees immediate subordinate - someone who works with that employee everyday and knows his or her strengths and weaknesses. The Down-Top employee performance evaluation becomes less effective when given by a Human Resources manager who has only second-hand knowledge of an employees performance. 30 PRIYANKA JAIN 2007EIT043
  • 31. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM Subordinate Appraisal Form Name of the Organization : Location: Name of Appraise : Designation: Age: Previous Appraisal Date: Time in present position: Date of joining: Appraisal Date & Time: Appraisal Venue: Appraiser:Please rate your senior on the following parameters.Rating can be done on 5 basis i.e. Write down “N” for “Never” Write down “S E” for “Seldom” Write down “S O” for “Sometimes” Write down “U” for “Usually” Write down “A” for “Always”Top-Down Employee Performance EvaluationsTop-down employee performance evaluations tend to be the most common and mosteffective, because they involve the assessment of an employee by a direct manager. Top-down employee performance evaluations are most useful when given by an employeesimmediate supervisor - someone who works with that employee everyday and knows his orher strengths and weaknesses. The top-down employee performance evaluation becomes lesseffective when given by a Human Resources manager who has only second-hand knowledgeof an employees performance.One offshoot of top-down employee performance evaluations are "matrix" employeeperformance evaluations, where multiple managers rate the same employee. This is a goodchoice when the employee works for multiple managers, or engages in various fixed-timelength projects 31PRIYANKA JAIN 2007EIT043
  • 32. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM Superior Appraisal FormJob Title ________________________________________Employee Name ______________________________Employee ID ___________________Supervisor Name ___________________________Title ____________________________Department Name___________________________________________________________Period Covered: from ___________ to __________Evaluation Date ___________________Purpose of review :_________________________Other (Specify) _____________________Please rate your Subordinate on the following parametersRate each question below on the scale of 1-5, by putting a “ .”1 2 3 4 5Best Needs improvement Departments 1 2 3 45Customer ServiceAttendance/PunctualityAbility to get along with Co-workersAbility to get along with Colleagues on CampusTime managementPlanning, budgeting and forecastingreporting and administrationcommunication skills 32PRIYANKA JAIN 2007EIT043
  • 33. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMdelegation skillsIT/equipment/machinery skillsmeeting deadlines/commitmentscreativityproblem-solving and decision-makingteam-working and developing othersenergy, determination and work-ratesteadiness under pressureleadership and integrityadaptability, flexibility, and mobility2.7 EXISTING SYSTEM OF APPRAISAL USED INORGANIZATIONThe organization is currently using Top down performance scheme for rating andperformance appraisal. No schemes in particular, have been implemented so far, regardingthe performance improvement and performance measure of the employees. Although aperformance appraisal form is being filled for each employee by the head of their respectivedepartment. Bonus and allowances are rewarded randomly to any worker as nominated by thehead of that department. Employees are also not aware of the criteria on which theirperformance is evaluated by their superiors. Moreover there is no procedure of theperformance appraisal and rating of the top management officials. The head of variousdepartments could not also clarify their criteria of appraisal.Therefore, I conclude that there is lot more that can be done regarding the rating andappraisal of employees performance. 33PRIYANKA JAIN 2007EIT043
  • 34. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER- 3 RESEARCH METHODOLOGY 1.RESEARCH DESIGN 2. SAMPLING DESIGN 3. SOURCES OF DATA 4. DATA COLLECTION TOOLS 5. METHODS OF DATA COLLECTION 6. ANALYSIS OF DATA 7. RESEARCH 34PRIYANKA JAIN 2007EIT043
  • 35. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM3.1 RESEARCH DESIGNThe research have been done in an “EXPERIMENTAL WAY”. I have use objective means todo the research work and the analysis is done using mathematical tools such as pie chart, barchart .3.2 SAMPLING DESIGNSampling is done so as to include atleast one employee of each level within the organization.Hence it can be called judgemental sampling.3.3 SOURCES OF DATABoth kinds of data is use for the research purpose PRIMARY as well as SECONDARY. Thedetails of both is as follows:PRIMARY DATA :- Data observed or collected directly from first-hand experience.Tailored to his specific needs, primary research provides the researcher with the mostaccurate and up-to-date data.I have gathered all the primary data through QUESTIONNAIRE , OBSERVATION ,PERSONAL INTERVIEWS.SECONDARY DATA :- Published data and the data collected in the past or other parties iscalled secondary data. Researchers reuse and repurpose information as secondary databecause it is easier and less expensive to collect. However, it is seldom as useful and accurateas primary data.I got all the secondary data through COMPANY PROFILE AND RECORDS, INTERNET,NEWSPAPERS, MAGAZINES3.4 DATA COLLECTION TOOLS Survey ,questionnaire, personalinterviews.The research instrument: Questionnaire.The respondents: The Managers & Employees of various organizations.The primary data was collected with the help of survey information. A concise questionnairewas prepared keeping in mind the information specifications. 35PRIYANKA JAIN 2007EIT043
  • 36. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM3.5 METHODS OF DATA COLLECTIONI have gathered all the primary data through QUESTIONNAIRE , OBSERVATION ,PERSONAL INTERVIEWS. I got all the secondary data through COMPANY PROFILEAND RECORDS, INTERNET, NEWSPAPERS, MAGAZINES3.6 ANALYSIS OF DATAData hase been analysed by simple mathematical calculations and the findings have beenshown with the help of bar chart , pie chart.3.7 RESEARCHResearch has been done in two different ways1.) Within the organization2.) Outside the organization 36PRIYANKA JAIN 2007EIT043
  • 37. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMWITHIN THE ORGANIZATIONI asked few questions based on performance appraisal from the H.O.D „s of variousdepartments within the organization.The responses to these questions are recorded in an excel sheet ORGANIZATI DEPARTMEN ENVIRONME WITHIN THE CRITERION EMPLOYEE APPRAISAL STRENGTH WORKING TRAININGNAME OF TENURE NEED ON NT TINVENTORY 5 YR 3 staff members ;4 Hot but labour not Not workers stressful punctuality requiredCARPENTRY 8 YR 6 staff members;40 Too Hot punctuality , labour Exhaust target Not workers required completion requiredUPHOLSTRY 4 YR Hot but 2 staff not knowledge of members; stressful, required 28 fans skills, Not employees required productivity requiredMACHINEASSEMBLY 4 YR 12 Quite Productivity Not comforta- of the worker required. blePOLISH 4 YR 68 Comfortab experience Not employees le but lot required of exposure to chemicalsDISPAT CH 2 YR 4-5 labour Less work Punctuality Not workers load and and required comfortab regularity le environme nt 37PRIYANKA JAIN 2007EIT043
  • 38. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMQUALITY 2 YR 4-5 workers Comfortab Required NotCHECK le skills requiredHR 10 1 Comfortab Required Not months le skills, required regularityPPC DETAILED RESPONSES FROM VARIOUS DEPARTMENTSResponses to the basic questions have been recorded in the excel sheet as shown above andthe subject responses are explained below.INVENTORY DEPARTMENTHe provided me with the necessary information and working of the departmentQ2.) What is your criteria for rating the workers in your department?ANS: PunctualityQ3.) Do you think that training for higher level can be provided to the employees as areward?ANS: Yes, ofcourse we can provide but it the workers of this section do not need muchtrainingQ4.) What do you think can management do to increase the productivity of the employees?ANS: The environment here is very suffocating. The workers get tired soon. So somethingshould be done for this.Q5.) Can you allow a well educated worker but not with required technical skills to work inyour department initially as a trainee and then as an employee?ANS: No we can’t because training an individual is a complete waste when there is amplemanpower available.Q6.) Are you satisfied with the current appraisal system?ANS: Yes up-to great extent. The management must have taken the right decision.Q7.)Do you think that appraisal help you in deciding that which task is to be allotted to whichworker depending upon improvement and productivity increase since last appraisal?ANS: Yes it Is very useful.Q8.)Do you think that training need is being ignored in your organization? 38PRIYANKA JAIN 2007EIT043
  • 39. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMANS: We don’t feel the need of training so much.Q9.)Do you provide information to the employees regarding the criteria of their appraisal ? ANS: No , they are illiterate . All they can do is to criticize.CARPENTRY DEPARTMENTThe supervisor provided me thorough information about his department. He allowed us tohave a explanatory tour of his department so that I can observe the working of the labor in hisdepartment. About 40 labour workers work under his supervision which includes 6 staffmembers. He told me that the accidents rates are very low because the management preferredto hire skilled labour rather than freshers and trainees.Q1.) When I asked him about the type of appraisal he suggest for a particular employee ?ANS: He told me that he generally prefer bonus and salary hike as reward for any goodworker because most workers lie in low income group. Therefore for them, monitory benefitsare of great use.Q2.) What is your criteria for rating the workers in your department?ANS: technical skills , attendance, target completionQ3.) Do you think that training for higher level can be provided to the employees as areward?ANS: Yes, ofcourse we can provide but it the workers of this section do not need muchtrainingQ4.) What do you think can management do to increase the productivity of the employees?ANS: The environment here is very suffocating. The department is in basement and there areno exhaust and fans here. So this requirement should be fulfill ASAP.Q5.) Can you allow a well educated worker but not with required technical skills to work inyour department initially as a trainee and then as an employee?ANS: No we can’tQ6.) Are you satisfied with the current appraisal system?ANS: Yes up-to great extent. The management must have taken the right decision.Q7.)Do you think that appraisal help you in deciding that which task is to be allotted to whichworker depending upon improvement and productivity increase since last appraisal?ANS: Yes it is very useful. It help me to decided that if a particular target comes then whoare the appropriate workers for it. 39PRIYANKA JAIN 2007EIT043
  • 40. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMQ8.)Do you think that training need is being ignored in your organization?ANS: We don’t feel the need of training so much.Q9.)Do you provide information to the employees regarding the criteria of their appraisal? ANS: I think they have idea of their performance. This is the reason they never argue.UPHOLSTRYThe detailed working of this department is explained earlier. The department has beendivided into sub-sections according to the tasks. These departments are namely stitching,cutting, weaving, designing and finishing department. Each department has a main task manalong with a helper to accomplish the task. Some sub-departments may have more than onepair of of main task-man and helper depending upon the complexity of the task.Q1.) When I asked him about the type of appraisal he suggest for a particular employee?ANS: He told me that he generally prefer bonus and salary hike and leave for a day.Q2.) What is your criteria for rating the workers in your department?ANS: technical skills , attendanceQ3.) Do you think that training for higher level can be provided to the employees as areward?ANS: Yes, ofcourse because if trained and upgrade a low skilled worker to high highlyskilled level then we need not to look for high skilled man power which is difficult to be foundthan low skilled ones. Moreover it allows the workers to adapt themselves to the training andwork with different roles.Q4.) What do you think can management do to increase the productivity of the employees?ANS: The environment here is very suffocating. The department is in basement and there areno exhaust and fans here. Safety gaurds should also be provided. So this requirement shouldbe fulfill ASAP.Q5.) Can you allow a well educated worker but not with required technical skills to work inyour department initially as a trainee and then as an employee?ANS: No we can’tQ6.) Are you satisfied with the current appraisal system?ANS: Yes up-to great extent.Q7.)Do you think that appraisal help you in deciding that which task is to be allotted to whichworker depending upon improvement and productivity increase since last appraisal? 40PRIYANKA JAIN 2007EIT043
  • 41. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMANS: Not really.Q8.)Do you think that training need is being ignored in your organization?ANS: yes.Q9.)Do you provide information to the employees regarding the criteria of their appraisal? ANS: Never felt the need of doing so.ASSEMBLY DEPARTMENTThe department is responsible for assembling together the parts of the product manufacturedin various other departments. The HOD informed us that all the work in the department isdone manually. About 12 workers work under his supervision. The workers are divided intothree categories according to their skills. Feater , junior feater and helper.Q1.) When I asked him about the type of appraisal he suggest for a particular employee ?ANS: We upgrade the post of the worker if his productivity increases.Q2.) What is your criteria for rating the workers in your department?ANS: In how much time he finishes the assigned task. Or how much work does he finish ina day.Q3.) Do you think that training for higher level can be provided to the employees as areward?ANS: NoQ4.) What do you think can management do to increase the productivity of the employees?ANS: Nothing muchQ5.) Can you allow a well educated worker but not with required technical skills to work inyour department initially as a trainee and then as an employee?ANS: No we can’tQ6.) Are you satisfied with the current appraisal system?ANS: Yes up-to great extent.Q7.)Do you think that appraisal help you in deciding that which task is to be allotted to whichworker depending upon improvement and productivity increase since last appraisal?ANS: Not really.Q8.)Do you think that training need is being ignored in your organization?ANS: yes. 41PRIYANKA JAIN 2007EIT043
  • 42. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMQ9.)Do you provide information to the employees regarding the criteria of their appraisal? ANS: Never felt the need of doing so.POLISH DEPARTMENTThe department has 4 chambers. The H.O.D , provided me with detailed informationregarding the working of his department which I have explained earlier. He also told me thathe has divided the workers in his department in different grades according to their workingexperience and required skills. These categories are polisher, junior polisher, mediumpolisher and senior polisher.Q1.) When I asked him about the type of appraisal he suggest for a particular employee ?ANS: He told me that he generally preferred increment in the grade of the worker.Q2.) What is your criteria for rating the workers in your department?ANS: experience.Q3.) Do you think that training for higher level can be provided to the employees as areward?ANS: No, it’s a waste of time.Q4.) What do you think can management do to increase the productivity of the employees?ANS: He cannot answer this question.Q5.) Can you allow a well educated worker but not with required technical skills to work inyour department initially as a trainee and then as an employee?ANS: No we can’tQ6.) Are you satisfied with the current appraisal system?ANS: We can say that it is ok but not of the kind which can motivate workers to workharder..Q7.)Do you think that appraisal help you in deciding that which task is to be allotted to whichworker depending upon improvement and productivity increase since last appraisal?ANS: Yes, to a great extent.Q8.)Do you think that training need is being ignored in your organization?ANS: Yes. Workers find hard to deal with some machines.Q9.)Do you provide information to the employees regarding the criteria of their appraisal? ANS: Never felt the need of doing so. 42PRIYANKA JAIN 2007EIT043
  • 43. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMDISPATCH DEPARTMENTThe department is responsible for keeping the track of the order of the clients. Just 4-5 labourworkers work under his supervision.Q1.) When I asked him about the type of appraisal he suggest for a particular employee ?ANS: He told me that he generally preferred salary hike.Q2.) What is your criteria for rating the workers in your department?ANS: regularityQ3.) Do you think that training for higher level can be provided to the employees as areward?ANS: No, it’s a waste of time.Q4.) What do you think can management do to increase the productivity of the employees?ANS: He cannot answer this question.Q5.) Can you allow a well educated worker but not with required technical skills to work inyour department initially as a trainee and then as an employee?ANS: No we can’tQ6.) Are you satisfied with the current appraisal system?ANS: We can say that it is ok but not of the kind which can motivate workers to workharder..Q7.)Do you think that appraisal help you in deciding that which task is to be allotted to whichworker depending upon improvement and productivity increase since last appraisal?ANS: Yes, to a great extent.Q8.)Do you think that training need is being ignored in your organization?ANS:NoQ9.)Do you provide information to the employees regarding the criteria of their appraisal? ANS: Never felt the need of doing so. 43PRIYANKA JAIN 2007EIT043
  • 44. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMOUTSIDE THE ORGNIZATIONWe conduct a general survey based on performance appraisal. SAMPLE SIZE :25QUESTION 1.) Main objective of using performance appraisal methods? 1. An insight into you strengths and weakness 2. Guideline for training plan 3. Assistance in goal 4. Decision on layoff 5. Determination of promotion or transfer 6. Salary administration and benefits salary administration and benefits determination of promotion or transfer decision in layoff Column2 Column1 assistance in goal Series 1 guideline for training plan an insight into your strengths and weakness 0 2 4 6 8 10 12 14 7.INTERPRETATION:12 organization do performance review for an having an insight into their strengths andweakness 44PRIYANKA JAIN 2007EIT043
  • 45. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM10 organizations think that it helps in administrating salary5 believe that it helps in determining promotion and transfer utmost.3 companies believe that it helps in determining training needs.Question 2.) How often do you use performance appraisal methods ? 1. Monthly 2. Quarterly 3. Half yearly 4. AnnuallyINTERPRETATION:24 Organizations perform performance review on an ANNUAL basis.2 Organization perform performance review on an QUATERLY basis.3 Organizations perform performance review on an HALF-YEARLY basis. 45PRIYANKA JAIN 2007EIT043
  • 46. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM1 Organizations perform performance review on an MONTHLY basis.Question 3.) Awareness about responsibilitiesINTERPRETATION :Hence we see that majority of the employees are aware of their responsibilities, whichimplies that the appraisers have efficiently communicated to the appraisees all the parametersthat will be taken into account during appraisal.25 organization says YESRest says NO. 46PRIYANKA JAIN 2007EIT043
  • 47. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMQuestion 4.) Satisfaction Level among appraise regarding AppraisalSystem ? 1. Fully satisfied 2. Partially satisfied 3. Satisfied 4. Partially satisfied 5. Fully satisfiedINTERPRETATION:From graph it can be seen that majority of the respondents 13 are satisfied with the appraisalsystem. Only a meager 1 was dissatisfied with the PerformanceAppraisal programs. 47PRIYANKA JAIN 2007EIT043
  • 48. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMQuestion 5.) Are you aware about the rating procedure? 1.) Yes 2.) NoINTERPRETATION:This clearly shows that majority of the employees are not aware about theperformance ratings that are taken into account while conducting a performanceappraisal.Question 6.) Do you think that Self Ratings should be allowed in theorganization? 1.) Yes 2.) No 48PRIYANKA JAIN 2007EIT043
  • 49. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMINTERPRETATION:From graph it can be seen that majority of respondents about 30 want self rating to be amethod of conducting the appraisals.Question 7.) Have you been given a chance to rate you own performance?1.)Yes 2.)NoINTERPRETATION:From the graph we can see that majority of the respondents about 23 , are not given a chanceto rate their own performance in the organization.Question 8.) Do you think Credibility of appraiser is important? 1.) Yes 2.) No 49PRIYANKA JAIN 2007EIT043
  • 50. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMINTERPRETATION:This shows that according to about 19 respondents the credibility of the appraiseris extremely important and it has an effect on the overall Performance appraisal program.Question 9. Do you think that there should be a complain channel for theemployees?] 1. Yes 2. NOINTERPRETATION: 50PRIYANKA JAIN 2007EIT043
  • 51. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMThis shows that in majority if organizations i.e, about 22 , there is no proper complaintchannel existing in the organisations forthe employees who are dissatisfied with the performance appraisal system.Question 10.) Have you been told about the Standardson whichperformance is evaluated?1.) YES 2.) NOINTERPRETATION:From this it can be seen that there is a clear majority among the respondents about 19 whosay that the standards on the basis of which the performance appraisal is carried out is notcommunicated to the employees before hand.Question 11.) Which Performance Appraisal sytm do you generallyprefer? 1. Immediate supervisor 2. Peer appraisal 3. Rating committee 4. Self rating 5. Appraisal by subordinates 51PRIYANKA JAIN 2007EIT043
  • 52. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMINTERPRETATION :Almost all, about 27 respond that the Performance Appraisals are carried our by theImmediate Supervisor in these organisations. In very few organisations, Rating committeescarry out the performance appraisals. None of the organisations use Peer Appraisals,Appraisals by subordinates and Self rating as a method of Performance Appraisal.Question 12.) Do you have Clear Understanding of the appraisee’s job?1.) Yes 2.)NoINERPRETATION: 52PRIYANKA JAIN 2007EIT043
  • 53. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM21 respondents tell that the performance Appraisal programs are successful in giving a clearunderstanding of the appraisee‟s job to both appraiser and appraisee.Question 13.) What is your Performance appraisal criteria? 1. Quantitative outcome 2. Qualitative process 3. Quantitative processINTERPRETATION :From results we can see that Qualitative Process is considered as the most importantcriteria for which the Performance appraisal programs are carried out, which showsthat companies consider Qualitiy of product & service and Customer satisfaction asmost important factors. 53PRIYANKA JAIN 2007EIT043
  • 54. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER 4 FINDINGS 54PRIYANKA JAIN 2007EIT043
  • 55. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMFINDINGS  From the survey results its evident that both the appraisee‟s and appraisersexpectation from Performance appraisal system are the same i.e. “Determinationof Promotion or Transfer” and “Salary Administration and Benefits”. Hence asingle performance appraisal system can satisfy needs of both the Appraiser andappraisee. Therefore the Performance appraisal program would be designed insuch a way that the appraiser would be able to analyse the contribution of theemployee to the orgaisation periodically and all the employees who have beenperforming well would be rewarded suitably either by an increase in the salary ora promotion. Through this the appraiser can also motivate the employees who feltthat they had no growth in the organisation and serves the purpose of employeedevelopment.Thus performance appraisals can be used as a significant tool focareer lanning.  Analyzing ones own strengths and weaknesses is the best way of identifying thepotentials available, rather than the other person telling. Self-appraisal is a tool toanalyze oneself. One of the most important findings was that almost all theemployees wanted self-rating to be a part of performance appraisal programcarried out by the organisation. From the responses of the appraiser we can alsosee that Self rating is not encouraged by the organisations. This could therefore bean important factor which leads to dissatisfaction among the appraisees. At theend of the year of the appraisal period the appraisal process should begin withself-appraisal by every employee. To appraise ones own self on key performingtargets and qualities, the appraisee would go through a process of reflection andreview. It is an established fact that change is faster when it is self initiated. Ifany employee has to improve or do better, he must first feel the need to do so.Reflection and review is a process that enables him to feel the need and improvemore upon his strengths and weaknesses  Another point to be noticed is that even in the other forms of PerformanceAppraisal also the employees expect that they should be given a chance to ratetheir own performance. This can allow the employee to analyze ones ownperformance which gives new insights on how one is performing and what are thecritical points where he has to put his best and improve upon 55PRIYANKA JAIN 2007EIT043
  • 56. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM  The existence of a proper complain channel was also of utmost importance to theappraisees. They should be given a chance to convey their greviences to the topmanagement.  The appraisees also expect that their comments and suggestions should be taken into account while conducting the appraisals. This expectation is not fulfilled as theappraisers do not take their comments and suggestions into consideration.Therefore they should look into this matter before it leads to dissatisfaction amongthe employees.  The results also indicate that the there is no communication of top managementplans and business goal to the appraisee. The appraisers on the other hand feel thatthe goals and plans have been clearly communicated to the appraisees.Communication is very essential for any system to function efficiently. Thereforethe appraisers should look into this matter and see to it that the goals and plans arecommunicated effectively.  The findings suggest that for success of Appraisal system the credibility ofappraiser is of utmost importance.  As per the Appraiser, a poorly conducted appraisal system would lead todemotivation and ineffective teamwok which will result in inefficient functioningand low productivity in the organization. Therefore, if at all they feel there isdissatisfaction among the appraisee‟s they should motivate them. Achievement,recogntion, invelvement, job satisfaction and development can motivate theemployees to a large extent. Along with this satisfactory working conditions andappropraite awards also play an important role.  Also a majority of employees were satisfied with the current appraisal systemalthough they requested for some changes.  Most of the employees were also not clear about the criteria on which ratings weregiven to each employee while conducting the performance appraisal. Instead ofsecrecy there should be openess. Because of lack of communication, employeesmay not know how they are rated. The standards by which employees think theyare being judged are sometimes different from those their superiors actually use.Proper communication of these ratings can help the employers achieve the level ofacceptability and commitment which is required from the employ. 56PRIYANKA JAIN 2007EIT043
  • 57. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM  From the survey we can also derive that the appraisee‟s expect a post appraisalinterview to be conducted wherein they are given a proper feedback on theirperformance and they can also put forward their complaints if any. The appraisalshould also be followed up with a session of counseling which is often neglectedin many organizations. Counseling involves helping an employee to identify hisstrengths and weaknesses to contribute to his growth and development. Purpose is to help anemployee improve his performance level, maintain his morale, guide him to identify anddevelop his strong points, overcome his weak points, develop new capabilities to handle moreresponsibilities, identify his training needs. 57PRIYANKA JAIN 2007EIT043
  • 58. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER-5 CONCLUSION 58PRIYANKA JAIN 2007EIT043
  • 59. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMCONCLUSIONWith the research performed and the analysis help us to conclude the following:-1.) The organization has a simple appraisal system with many defects and weakness.2.) The organization hired skilled labour; hence training requirements need not to beevaluated through performance appraisal system.3.) Salary and administration decision are very effectively taken with the help ofperformance appraisal system. 59PRIYANKA JAIN 2007EIT043
  • 60. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER-6 RECOMMENDATIONS 60PRIYANKA JAIN 2007EIT043
  • 61. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMRECOMMENDED SYSTEMAt first I thought of applying 360 degree appraisal system. But through the survey andresearch I had done here I realized some big hurdles in the ways. They are listed below:1.) The workers are not well educated ,some of them are illiterate also. So we can‟t assignedthem the task to judge others.2.) There is no one to judge the HOD of the departments other than the director himself3.) Moreover there is no one to judge the director.Therefore I tried to plan a performance management system with the existing top- downapproach but with few modification. These two plans are:- 1. Best worker of the month 2. Top 5 regular workersBoth the plans are implemented in each department of the organization. Both the schemeswere implemented by the management to involve employees (accord) for their activeparticipation toward the accomplishment of the organizations goals. It also helps to improvedepartment‟s quantitative productivity and client‟s response.This scheme can be initiated by the management to measure the performance of thedepartments and to create a healthy competitive environment. Objectives of this scheme areas followsProvide accurate feedback to the departments regarding their strengths as well as weaknesswhich can be use as an effective improvement tool.Provide benchmark data which allow departments to establish where they placed in relationto the best performance in the group.It is a quantitative rating system in which maximum points are being allotted to every factor.And the points obtained by the department are the obtained percentage of the points allottedto each respective factor. Total of each factor is combined to the total marks obtained by eachdepartment.Factors which are considered in the “Total department performance rating system” are as 61PRIYANKA JAIN 2007EIT043
  • 62. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMFollows: FACTOR MAXIMUM POINTS ALLOTEDDELIVERY 20QUALITY 30ATTENDANCE 30HOUSE-KEEPING 20TOTAL POINTS 1001.) DELIVERY RATINGS:Maximum 20 points are being allotted to delivery ratings. Target for the delivery is known inadvance and the delivery ratings are based on the percentage of the target achieve.For eg:-Target is 110 dining tables (6 days working)Actual completion 90Total percentage achieve = ( 90/110) * 100 = 81.8%Total delivery points = 81.8% out of 20 points = 152.) QUALITY RATINGS:Maximum 30 points have been allotted to the quality ratings. This is based on defects andrejects rate scores. Here three types of defects have been considered named as minor defect,(i.e. ; low impact) major defect ( i.e. ; high impact) and critical defect. Reject rate scoremeans percentage of total defect that ouccurs and which are unavoidable defects.Quality ratings (20 points) = defect score (10 points max) + reject score (10 points max).3.) ATTENDANCE RATINGS:Maximum 25 points are being allotted to attendance. Attendance ratings are based ondepartment‟s attendance from salary statement. 62PRIYANKA JAIN 2007EIT043
  • 63. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM Points are calculated on the monthly basis according to the table given below:LEAVE TAKEN IN A MONTHLEAVES 1 DAY 1.5- 2 DAYS 2.5 – 3 DAYS >3 DAYSTAKENPOINTS NIL 10 20 40DEDUCTEDFor example :-Departmental staff from salary statement = 37Total achievable mandays in a week = (total staff * no of week days) 37 * 6 = 222Total absenteenism = 10 man-days a weekTotal achieved man-days = 222-10 = 212 man- daysTotal percentage achieve = (212/222) * 100% =95%Total attendance points = 95% of 25 = 23.75 points4.) HOUSE-KEEPING RATEMaximum 20 points are being allotted to house keeping rating. Housekeeping ratings aredecided by house group manager in consultation with general manager. Housekeeping ratingare based on :- i. All the material keep in order ii. Machines neat and clean iii. Gang ways to be cleared5.) PRODUCTIVITY RATINGSFor productivity ratings maximum 15 points are being allotted. Achievement of marks onproductivity is calculated on pro-data basis. Total marks obtained = (delivery + attendance + house – keeping 63PRIYANKA JAIN 2007EIT043 Productivity)
  • 64. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMThe department obtaining maximum marks is awarded the “best department of the month”.CRITERIA AND RULES: i. The departments are assessed on 4 week basis. ii. Departments should run at least 3 weeks out of 4.iii. Delivery targets are set in the beginning by the head on the department. iv. No rewards are given to the graded “D” and “E”. v. This reward scheme is the sole discretion of the management and the management decision is final.THIS REWARD IS GIVEN IN THE VIEW OF: i. To give recognition to an individual who contributes to the company‟s progress the most ii. To find and reward individual who can be the source of motivation for others. 64PRIYANKA JAIN 2007EIT043
  • 65. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM BEST EMPLOYEE OF THE MONTH SCHEMEThis reward is given in the view of :  To give recognition to an individual who contributes to the company‟s progress or not.  To find and reward individual who can be a source of motivation to others.The reward for the best employee of the month is :  Monetary benefit of Rs. 500/-  The photo of the employee is displayed with is brief service history and contributionsThe individual performance incorporated the following :Attendance 40 pointsParticipation 30 pointsSkill 30 pointsTotal points 100 points 65PRIYANKA JAIN 2007EIT043
  • 66. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMSUGGESTIONSThe proposed system is base on the achievement of the target and is easily achievable andmeasurable.The proposed department rating system should be introduced to assess and monitordepartment‟s performance that meets management‟s expectations to provide feedback byhighlighting their strength and weakness to improve their performance.The system also provides transparency in the performance appraisal system.The system also motivates the workers to upgrade their performance level.It also help the supervisors to take decisions regarding training needs. 66PRIYANKA JAIN 2007EIT043
  • 67. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER – 7 LIMITATIONS 67PRIYANKA JAIN 2007EIT043
  • 68. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMLIMITATIONSAs we know that everything has good as well as bad side, so is the case with this study. Italso has few limitations such as :-1.) Is is unable to clearly determine the training needs.2.) As most of the respondents were not adequately educated, therefore most of them werenot able to judge the existing system within the organization 68PRIYANKA JAIN 2007EIT043
  • 69. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER 8 BIBLIOGRAPHY 69PRIYANKA JAIN 2007EIT043
  • 70. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMBIBLIOGRAPHYwww.citehr.comwww.managementpradise.comPersonnel management by NK sahiniCompany pofile of proform interiors pvt limited. 70PRIYANKA JAIN 2007EIT043
  • 71. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM CHAPTER 9 ANNEXURE 71PRIYANKA JAIN 2007EIT043
  • 72. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMSURVEY WITHIN THE ORGANIZATIONI asked few questions based on performance appraisal from the H.O.D „s of variousdepartments within the organization. The questions are as follows:Q1.) Since how long you have been working in the organization?Q2.) What is your criteria for rating the workers in your department?a.) Punctuality b.) Technical skills c.) Seniority d.) Tenure within the organization e.)Educational qualification f.) Attitude towards KRA Q3.) Do you think that training for higher level can be provided to the employees as areward?Q4.) What do you think can management do to increase the productivity of the employees?Q5.) Can you allow a well educated worker but not with required technical skills to work inyour department initially as a trainee and then as an employee?Q6.) Are you satisfied with the current appraisal system?Q7.)Do you think that appraisal help you in deciding that which task is to be allotted to whichworker depending upon improvement and productivity increase since last appraisal?Q8.)Do you think that training need is being ignored in your organization?Q9.)Do you provide information to the employees regarding the criteria of their appraisal ? 72PRIYANKA JAIN 2007EIT043
  • 73. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEMGeneral Questionnaire Survey based on performance appraisal1.)Name ______________ Contact no ___________________2.) What do you expect from performance appraisal system?(Rank the options from 1 to 6; 1 being most preferred & 6 being least preferred) Detail RankSalary Administration and BenefitsDetermination of promotion or transferDecision on layoffAssistance in goalGuideline for training PlanAn insight into your strengths andWeakness3.) Do you know what exactly is expected from you at work?(a) Yes(b) No4.) Are you satisfied with the appraisal system?12345(1 = Least satisfied; 5 = Most satisfied)5.) Are you aware of performance ratings?(a) Yes(b) No6.) Do you think you should be given an opportunity to rate your own performance?(a.) Yes(b) No7.) Are you given a chance to rate your own performance?( a.) Yes( b.) No8.) Timing of Appraisalsa. Monthly b. Quarterlyc. Half Yearlyd. Annual9.) Does the credibility of Appraiser affect the Performance Appraisal System?(a) Yes(b) No 73PRIYANKA JAIN 2007EIT043
  • 74. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM10.) Is there a complaint channel for the employees who are dissatisfied with the performance appraisalsystem?( a). Yes(b.) No11.Are the standards on the basis of which the performance appraisal is carried out communicated to theemployees before hand?(a.) Yes( b.) No12.Who conducts the performance appraisal”?a. Immediate supervisor b. Peer appraisalc. Rating committeesd. Self-rating e. Appraisal by subordinates13.) Is the performance Appraisal successful in giving a clear understanding of the appraisee‟s job to bothappraiser and appraise?( a.) Yes(b.) No14.) Are the objectives of appraisal system clear to you?( a.) Yes( b.) No15.) Does the appraisal system provide a good communication between the top management plans andbusiness goals to staff below?(a). Yes(b.) No16).Do you want your comments and suggestions to be taken into consideration during appraisal?(a.) Yes( b.) No17.)Is there a post appraisal interview conducted?(a.) Yes( b.) No 74PRIYANKA JAIN 2007EIT043
  • 75. MANGALAYATAN UNIVERSITY PERFORMANCE APPRAISAL SYSTEM 75PRIYANKA JAIN 2007EIT043

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