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  • 1. EMPLOYEES PERCEPTION TOWARDS PERFORMANCE APPRAISAL AT UFLEX LIMITED Summer Internship Project Report Submitted towards Partial Fulfilment of Post Graduate Diploma in Management (Approved by AICTE, Govt. of India) Academic Session 2011 – 2013 Submitted By:Under the Guidance of:Industry Guide Faculty Guide CERTIFICATE OF DECLARATION 1
  • 2. I Ravi Shankar Dwivedy students of PGDM (2011-2013) 1st Year, Institute of ManagementStudies, Ghaziabad, hereby declare that the project report on “Employees perceptiontowards performance appraisal at UFlex limited” has been done under the guidance andinvolvement OF…............................................................................................................................................................... for the period 20th April 2012 to 21st June 2012.All information and data provided in this report are collected from primary and secondarysources that are true to the best of my knowledge.Date:------------------------------Student: Ravi Shankar DwivedyBM-011171Institute of Management Studies, Ghaziabad. PREFACE 2
  • 3. Training is an integral part of our academic curriculum. During the training a student gets anopportunity to set the practical aspects of theory. Training makes the concept clear and it gives theperfect knowledge of the practical life.This project is the outcome of the training that I have undergone for “EMPLOYEES PERCEPTIONTOWARDS PERFORMANCE APPRAISAL IN UFLEX LIMITED”.Due to short span of time I analyzed a proper number of employees to fulfill my requirements of theproject work through questionnaire and personal interview.I offer my courteous thanks to ….............................for their guidance and help which they providedme while preparing this project report. ACKNOWLEDGEMNT 3
  • 4. It gives us immense pleasure and satisfaction in expressing our gratitude towards all individuals whohave indirectly helped us in this project report.Working on this project was an excitement challenge and a new exposure in the field of marketing atthe outset we would like acknowledge our special thanks to…............................................................................................................................................................................................ for his invaluable help and guidance without which this project wouldnot have been successful . TABLE OF CONTENT S.No. Topic Pages 1 Executive Synopsis 8-9 2 Introduction 10-24 4
  • 5. 3 Company Profile 25-36 4 Objective 37 5 Literature Review 38-45 6 Research Methodology 46-47 7 Finding and Analysis 48-57 8 Statistical Tool 58-65 9 Conclusion & Recommendation 66 10 Limitation 67 11 Bibliography 68 12 Annexure 69-70 Tables and Graphs Fig & Topic PageTab. No. No. Fig. 1 360 degree appraisal 17 Fig. 2 MBO process 18 Fig. 3 Potrait of Mr. Ashok Chaturvedi, Chairman, Uflex 27 Fig. 4 Process plant of engg. Divison 33 5
  • 6. Fig. 5 Process model of chemical plant 34 Fig. 6 Process plant of chemical divison 36 Fig. 7 Graph showing performance monitoring 49 Fig.8 Graph showing performance appraisal does not contribute to 50 job performance. Fig.9 Graph showing performance goals are clearly defined in the 51 process of appraisal. Fig. 10 Graph showing the performance appraisal is helpful in 52 reducing grievance among the employees. Fig. 11 Graph showing I do not need feedback to monitor my 53 performance Fig.12 Graph showing the performance appraisal is helpful for 54 improving personnel skill. Fig. 13 Graph showing promotion is purely based on performance 55 appraisal. Fig. 14 Graph showing appraisal increases career growth. 56 Fig. 15 Graph showing appraisal enhances the chances for promotion. 57 Table 1 Chi square on Performance appraisal improves job 58 performance. Table 2 Chi square on the assessment of performance motivates to 60 work harder. Table 3 Chi square on performance goals are clearly defined in the 62 process of appraisal. Table 4 Chi square on performance appraisal provides me with the 64 opportunity to set personal goals. EXECUTIVE SYNOPSISThe report embarks on the introduction about the company that is profile of the company,HR departments, its products and services, business and quality policies of UFLEX.In today‘s competitive scenario, when ‗achiever more with less and in minimum time‘ is mantra tosuccess, every organization is using Performance Appraisal for their employees.The project is undertaken to study the perception of employees towards PerformanceAppraisal at UFLEX. 6
  • 7. Analysis helped to know that how the use of performance appraisals helpful for any of theorganization.In order to know the impact of Performance , the survey questionnaire and the data providedby the HR department was the primary source of data.Then the report leads to findings, suggestions, learning and conclusions followed byreferences at the end of the report.The company profile is followed organization structure, introduction to the topic. i.e.benefits and impact of performance appraisal in employees.. In today‘s era, performanceappraisal has become an integral part of organization and is playing its critical role in employeesperformance.Human resource management (HRM) conducts performance management. Performancemanagement systems consist of the activities and/or processes embraced by an organizationin anticipation of improving employee performance, and therefore, organizationalperformance. Consequently, performance management is conducted at the organizationallevel and the individual level whereas performance appraisal is for assessing employees toknow their strengths and weaknesses. It is done by HR managers to get the feedback of theemployees.Performance appraisal is a systematic and periodic process that assesses an individualemployee‘s job performance and productivity in relation to certain pre-established criteriaand organizational objectives. Other aspects of individual employees are considered as well,such as, accomplishments, potential for future improvement, strengths and weaknesses,etc. To collect performance appraisal data, there are three main methods: objectiveproduction, personnel, and judgmental evaluation. Judgmental evaluations are the mostcommonly used with a large variety of evaluation methods. A performance appraisal istypically conducted annually. The interview could function as ―providing feedback toemployees, counselling and developing employees, and conveying and discussingcompensation, job status, or disciplinary decisions‖. Performance appraisal is often includedin performance management systems. Performance management systems are employed ―tomanage and align" all of an organizations resources in order to achieve highest possibleperformance. 7
  • 8. It facilitates the communication between the employees, enhances the employees to focus through promoting trust. It helps in goal setting and determining the objectives and also to enhance their performance. Performance appraisals are conducted at least annually, and annual employee performance reviews appear to be the standard in most American organizations. However, ―it has been acknowledged that appraisals conducted more frequently (more than once a year) may have positive implications for both the organization and employee.‖ It is suggested that regular performance feedback provided to employees may quell any unexpected and/or surprising feedback to year-end discussions. During the internship in Uflex limited I found that the employees are more focused towards their work. And their performance shows their leniency towards work and how they are making their selves to work in that competitive environment. As Uflex has their major business in packaging sector so they need a huge number of employees to earn their goal and to be capable to survive in the competitive world. Numerous researchers have reported that many employees are not satisfied with their performance appraisal (PA) systems. Studies have shown that subjectivity as well as appraiser bias is often a problem perceived by as many as half of employees. Appraiser bias, however, appears to be perceived as more of a problem in government and public sector organizations. Also, according to some studies, employees wished to see changes in the PA system by making ―the system more objective, improving the feedback process, and increasing the frequency of review.‖ INTRODUCTIONDEFINITIONA performance appraisal is a systematic and periodic process that assesses an individualemployee‘s job performance and productivity in relation to certain pre-established criteriaand organizational objectives. Other aspects of individual employees are considered as well,such as, accomplishments, potential for future improvement, strengths and weaknesses,etc. To collect performance appraisal data, there are three main methods: objectiveproduction, personnel, and judgmental evaluation. Judgmental evaluations are the mostcommonly used with a large variety of evaluation methods. A performance appraisal istypically conducted annually. The interview could function as ―providing feedback to 8
  • 9. employees, counselling and developing employees, and conveying and discussingcompensation, job status, or disciplinary decisions‖. Performance appraisal is often includedin performance management systems. Performance management systems are employed ―tomanage and align" all of an organizations resources in order to achieve highest possibleperformance. ―How performance is managed in an organization determines to a large extentthe success or failure of the organization. Therefore, improving performance appraisal foreveryone should be among the highest priorities of contemporary‖ organizations.Some applications of performance appraisal are performance improvement, promotions,termination, test validation, and more while there are many potential benefits of performanceappraisal, there are also some potential drawbacks. For example, performance appraisal canhelp facilitate management-employee communication; however, performance appraisal mayresult in legal issues if not executed appropriately as many employees tend to be unsatisfiedwith the performance appraisal process. Performance appraisal created in and determined asuseful in the United States are not necessarily able to be transferable cross-culturally.Applications of Performance Appraisal ResultsA central reason for the utilization of performance appraisals is performance improvement(―initially at the level of the individual employee, and ultimately at the level of theorganization‖). Other fundamental reasons include ―as a basis for employment decisions(e.g. promotions, terminations, transfers), as criteria in research (e.g. test validation), to aidwith communication (e.g. allowing employees to know how they are doing andorganizational expectations), to establish personal objectives for training‖ programs, fortransmission of objective feedback for personal development, ―as a means of documentationto aid in keeping track of decisions and legal requirements‖ and in wage and salaryadministration. Additionally, Performance appraisal can aid in the formulation of job criteriaand selection of individuals ―who are best suited to perform the required organizationaltasks‖. A performance appraisal can be part of guiding and monitoring employee careerdevelopment. Performance appraisal can also be used to aid in work motivation through theuse of reward systems.Potential Benefits of Performance AppraisalsThere are a number of potential benefits of organizational performance managementconducting formal performance appraisals. There has been a general consensus in the beliefthat Performance appraisal lead to positive implications of organizations. Furthermore,Performance appraisal can benefit an organization‘s effectiveness. One way is performanceappraisals can often lead to giving individual workers feedback about their job 9
  • 10. performance. From this may spawn several potential benefits such as the individual workersbecoming more productive.Other potential benefits include:Facilitation of communication: communication in organizations is considered an essentialfunction of worker motivation. It has been proposed that feedback from Performanceappraisal aid in minimizing employees‘ perceptions of uncertainty. Fundamentally, feedbackand management-employee communication can serve as a guide in job performanceEnhancement of employee focus through promoting trust: behaviours, thoughts, andissues may distract employees from their work, and trust issues may be among thesedistracting factors. Such factors that consume psychological energy can lower jobperformance and cause workers to lose sight of organizational goals.[9] Properly constructedand utilized Performance appraisal has the ability to lower distracting factors and encouragetrust within the organization.Goal setting and desired performance reinforcement: organizations find it efficient tomatch individual worker‘s goals and performance with organizational goals. Performanceappraisal provides room for discussion in the collaboration of these individual andorganizational goals. Collaboration can also be advantageous by resulting in employeeacceptance and satisfaction of appraisal results.Performance improvement: well constructed Performance appraisal can be valuable toolsfor communication with employees as pertaining to how their job performance stands withorganizational expectations. ―At the organizational level, numerous studies have reportedpositive relationships between human resource management (HRM) practices" andperformance improvement at both the individual and organizational levels.Determination of training needs: ―Employee training and development are crucialcomponents in helping an organization achieve strategic initiatives‖. It has been argued thatfor Performance appraisal to truly be effective, post-appraisal opportunities for training anddevelopment in problem areas, as determined by the appraisal, must be offered. Performanceappraisal can especially be instrumental for identifying training needs of new employees.Finally, Performance appraisal can help in the establishment and supervision of employees‘career goals.Potential Complications of Performance AppraisalsDespite all the potential advantages of formal performance appraisals, there are also potentialdrawbacks. It has been noted that determining the relationship between individual jobperformance and organizational performance can be a difficult task. Generally, there are twooverarching problems from which several complications spawn. One of the problem withformal Performance Appraisals is there can be detrimental effects to the organizationinvolved if the appraisals are not used appropriately. The second problem with formal 10
  • 11. performance appraisal is they can be ineffective if the performance appraisal system does notcorrespond with the organizational culture and system.Complications stemming from these issues are:Detrimental to quality improvement: it has been proposed that the use of performanceappraisal systems in organizations adversely affect organizations‘ pursuits of qualityperformance. It is believed by some scholars and practitioners that the use of Performanceappraisal is more than unnecessary if there is total quality management.Negative perceptions: ―Quite often, individuals have negative perceptions of Performanceappraisal‖. Receiving and potentially cause ―tension between supervisors and subordinates‖.Errors: Performance appraisal should provide accurate and relevant ratings of an employee‘sperformance as compared to pre-established criteria (i.e. organizational expectations).Nevertheless, supervisors will sometimes rate employees more favourably than that of theirtrue performance in order to please the employees and avoid conflict. ―Inflated ratings are acommon malady associated with formal" performance appraisal.Legal issues: When performance appraisal are not carried out appropriately, legal issuescould result that place the organization at risk. Performance appraisal are used inorganizational disciplinary programs [as well as for promotional decisions within theorganization. The improper application and utilization of Performance appraisal can affectemployees negatively and lead to legal action against the organization.Performance goals: Performance goals and performance appraisal systems are often used inassociation. Negative outcomes concerning the organizations can result when goals are overlychallenging or overemphasized to the extent of effecting ethnics, legal requirements, orquality. Moreover, challenging performance goals can impede on employees‘ abilities toacquire necessary knowledge and skills. Especially in the early stages of training, it would bemore beneficial to instruct employees on outcome goals than on performance goals.Derail merit pay or performance-based pay: some researchers contend that the deficit in meritpay and performance-based pay is linked to the fundamental issues stemming fromperformance appraisal systems.Who Conducts Performance AppraisalsHuman Resource Management & Performance ManagementHuman resource management (HRM) conducts performance management. Performancemanagement systems consist of the activities and/or processes embraced by an organizationin anticipation of improving employee performance, and therefore, organizationalperformance. Consequently, performance management is conducted at the organizationallevel and the individual level. At the organizational level, performance management overseesorganizational performance and compares present performance with organizational 11
  • 12. performance goals. The achievement of these organizational performance goals depends onthe performance of the individual organizational members. Therefore, measuring individualemployee performance can prove to be a valuable performance management process for thepurposes of HRM and for the organization. Many researchers would argue that ―performanceappraisal is one of the most important processes in Human Resource Management‖.The performance management process begins with leadership within the organizationcreating a performance management policy. Primarily, management governs performance byinfluencing employee performance input (e.g. training programs) and by providing feedbackvia output (i.e. performance assessment and appraisal). ―The ultimate objective of aperformance management process is to align individual performance with organizationalperformance‖. A very common and central process of performance management systems isperformance appraisal. The performance appraisal process should be able to informemployees about the ―organizations goals, priorities, and expectations and how well they arecontributing to them‖.When Performance Appraisals are ConductedPerformance appraisals are conducted at least annually, and annual employee performancereviews appear to be the standard in most American organizations. However, ―it has beenacknowledged that appraisals conducted more frequently (more than once a year) may havepositive implications for both the organization and employee.‖ It is suggested that regularperformance feedback provided to employees may quell any unexpected and/or surprisingfeedback to year-end discussions. In a recent research study concerning the timeliness ofPerformance appraisal, ―one of the respondents even suggested that the performance reviewshould be done formally and more frequently, perhaps once a month, and recorded twice ayear.‖Other researchers propose that the purpose of Performance appraisal and the frequency oftheir feedback are contingent upon the nature of the job and characteristics of theemployee. For example, employees of routine jobs where performance maintenance is thegoal would benefit sufficiently from annual performance appraisal feedback. On the otherhand, employees of more discretionary and non-routine jobs, where goal-setting isappropriate and there is room for development, would benefit from more frequentperformance appraisal feedback.Methods of Collecting Performance Appraisal DataThere are three main methods used to collect performance appraisal data: objectiveproduction, personnel, and judgmental evaluation. Judgmental evaluations are the mostcommonly used with a large variety of evaluation methods.Objective production 12
  • 13. The objective production method consists of direct, but limited, measures such as salesfigures, production numbers, the electronic performance monitoring of data entry workers,etc. The measures used to appraise performance would depend on the job and its duties.Although these measures deal with unambiguous criteria, they are usually incompletebecause of criterion contamination and criterion deficiency. Criterion contamination refers tothe part of the actual criteria that is unrelated to the conceptual criteria. In other words, thevariability in performance can be due to factors outside of the employee‘s control. Criteriondeficiency refers to the part of the conceptual criteria that is not measured by the actualcriteria. In other words, the quantity of production does not necessarily indicate the quality ofthe products. Both types of criterion inadequacies result in reduced validity of themeasure. Regardless of the fact that objective production data is not a complete reflectionupon job performance, such data is relevant to job performance.The Happy-Productive Worker HypothesisThe happy-productive worker hypothesis states that the happiest workers are the mostproductive performers, and the most productive performers are the happiest workers Yet,after decades of research, the relationship between job satisfaction and job performanceproduces only a weak positive correlation. Published in 2001 by Psychological Bulletin, ameta-analysis of 312 research studies produced an uncorrected correlation of 0.18. Thiscorrelation is much weaker than what the happy-productive worker hypothesis would predict.There is no clear relationship between job satisfaction and job performance.PersonnelThe personnel method is the recording of withdrawal behaviors (i.e. absenteeism, accidents).Most organizations consider unexcused absences to be indicators of poor job performance,even with all other factors being equal;[ however, this is subject to criterion deficiency. Thequantity of an employee‘s absences does not reflect how dedicated he/she may be to the joband its duties. Especially for blue-collar jobs, accidents can often be a useful indicator of poorjob performance, but this is also subject to criterion contamination because situational factorsalso contribute to accidents. Once again, both types of criterion inadequacies result inreduced validity of the measure. Although excessive absenteeism and/or accidents oftenindicate poor job performance rather than good performance, such personnel data is not acomprehensive reflection of an employee‘s performance.Judgmental EvaluationJudgmental evaluation appears to be a collection of methods, and as such, could beconsidered a methodology. A common approach to obtaining Performance appraisal is bymeans of raters. Because the raters are human, some error will always be present in the data.The most common types of error are leniency errors, central tendency errors, and errors 13
  • 14. resulting from the halo effect. These errors arise predominantly from social cognition and thetheory in that how we judge and evaluate other individuals in various contexts is associatedwith how we ―acquire, process, and categorize information‖An essential piece of this method is rater training. Rater training is the ―process of educatingraters to make more accurate assessments of performance, typically achieved by reducing thefrequency of halo, leniency, and central-tendency errors‖. Rater training also helps the raters―develops a common frame of reference for evaluation‖ of individual performance manyresearchers and survey respondents support the ambition of effectual rater training. However,it is noted that such training is expensive, time consuming, and only truly functional forbehavioral assessments.Another piece to keep in mind is the effects of rater motivation on judgmental evaluations. Itis not uncommon for rating inflation to occur due to rater motivation (i.e. ―organizationallyinduced pressures that compel raters to evaluate ratees positively‖). Typically, raters aremotivated to give higher ratings because of the lack of organizational sanction concerningaccurate/inaccurate appraisals, the raters desire to guarantee promotions, salary increases,etc., the raters inclination to avoid negative reactions from subordinates, and the observationthat higher ratings of the ratees reflect favorably upon the rater.The main methods used in judgmental performance appraisal are:-Graphic Rating Scale: graphic rating scales (see scale (social sciences)) are the mostcommonly used system in performance appraisal. On several different factors, subordinatesare judged on how much of that factor or trait they possess. Typically, the raters use a 5- or7-point scale; however, there are as many as 20-point scales.Employee-Comparison Methods: Rather than subordinates being judged against pre-established criteria, they are compared with one another. This method eliminates centraltendency and leniency errors but still allows for halo effect errors to occur. The rank-ordermethod has raters ranking subordinates from ―best‖ to ―worst‖, but how truly good or bad oneis on a performance dimension would be unknown The paired-comparison method requiresthe rater to select the two "best" subordinates out of a group on each dimension then rankindividuals according to the number of times each subordinate was selected as one of the"best". The forced-distribution method is good for large groups of ratees. The raters evaluateeach subordinate on one or more dimensions and then place (or ‖force-fit‖, if you will) eachsubordinate in a 5 to 7 category normal distribution. The method of top-grading can beapplied to the forced distribution method. This method identifies the 10% lowest performingsubordinates, as according to the forced distribution, and dismisses them leaving the 90%higher performing subordinates.Behavioural Checklists and Scales: behaviours are more definite than traits. The criticalincidents method (or critical incident technique) concerns ―specific behaviours indicative ofgood or bad job performance‖. Supervisors record behaviours of what they judge to be job 14
  • 15. performance relevant, and they keep a running tally of good and bad behaviours. A discussion on performance may then follow. The behaviourally anchored rating scales (BARS) combine the critical incidents method with rating scale methods by rating performance on a scale but with the scale points being anchored by behavioural incidents Note that BARS are job specific. Peer and Self Assessments While most judgmental performance appraisal research is evaluated by a superior (e.g. supervisor, manager), peer assessments are evaluated by one‘s colleagues. With self- assessments, individuals evaluate themselves. Peer Assessments: members of a group evaluate and appraise the performance of their fellow group members. There are three common methods of peer assessments. Peer nomination involves each group member nominating who he/she believes to be the ―best‖ on a certain dimension of performance. Peer ratings have each group member rate each other on a set of performance dimensions. Peer ranking requires each group member rank all fellow members from ―best‖ to ―worst‖ on one or more dimensions of performance. Self-Assessments: for self-assessments, individuals assess and evaluate their own behavior and job performance. It is common for a graphic rating scale to be used for self-assessments. Positive leniency tends to be a problem with self-assessments. 360-Degree Feedback: 360-degree feedback is multiple evaluations of employees which often include assessments from superior(s), peers, and one‘s self.360 degree appraisal has four integral components: 1. Self appraisal. 2. Superior‘s appraisal 3. Subordinate‘s appraisal 4. Peer appraisal.Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, hisachievements, and judge his own performance. Superior‘s appraisal forms the traditional partof the 360 degree performance appraisal where the employees‘ responsibilities and actualperformance is rated by the superior. 15
  • 16. Subordinates appraisal gives a chance to judge the employee on the parameters likecommunication and motivating abilities, superior‘s ability to delegate the work, leadershipqualities etc. Also known as internal customers, the correct feedback given by peers can help tofind employees‘ abilities to work in a team, co-operation and sensitivity towards others. Fig.1 Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree a 360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others‘ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc. The concept of ‗Management by Objectives‘ (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees 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 be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee‘s actual performance with the standards set. Ideally, when employees themselves 16
  • 17. have been involved with the goal setting and the choosing the course of action to befollowed by them, they are more likely to fulfill their responsibilities.THE MBO PROCESS Fig.2UNIQUE FEATURES AND ADVANTAGES OF MBOThe principle behind Management by Objectives (MBO) is to create empowered employeeswho have clarity of the roles and responsibilities expected from them, understand theirobjectives to be achieved and thus help in the achievement of organizational as well aspersonal goals. 17
  • 18. Some of the important features and advantages of MBO are:Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are: ● Specific ● Measurable ● Achievable ● Realistic, and ● Time bound.The goals thus set are clear, motivating and there is a linkage between organizational goalsand performance targets of the employees.The focus is on future rather than on performance appraisalt. Goals and standards are set forthe performance for the future with periodic reviews and feedback.Motivation – Involving employees in the whole process of goal setting and increasingemployee empowerment increases employee job satisfaction and commitment.Better communication and Coordination – Frequent reviews and interactions betweensuperiors and subordinates helps to maintain harmonious relationships within the enterpriseand also solve many problems faced during the period.Critical incident method of performance appraisal1. Definition of Critical incident methodCritical incident is a method used for many sectors.Critical incident method- Recording of events by appraiser. An incident is critical when itillustrates what the employers has done or failed to doThe critical incidents for performance appraisal are a method in which the manager writesdown positive and negative performance behavior of employees throughout theperformance period.Each employee will be evaluated as such and one‘s performance appraisal will be based onthe logs that are put in the evaluation form.The manager maintains logs on each employee, whereby he periodically records criticalincidents of the workers behavior.At the end of the rating period, these recorded critical incidents are used in the evaluation ofthe workers‘ performance.The critical incidents file of performance appraisal is a form of documentation that reflectall data about employee performances.2. Disadvantages of critical IncidentThis method suffers however from the following limitations: ● Critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates. ● Negative incidents may be more noticeable than positive incidents. 18
  • 19. ● It results in very close supervision which may not be liked by the employee. ● The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it. ● The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session.Weighted checklist1. Definition of weighted checklistThis method describes a performance appraisal method where rater familiar with the jobsbeing evaluated prepared a large list of descriptive statements about effective andineffective behavior on jobs.2. Process of weighted checklistHR department and Managers / Supervisors will set up checklist for each position.If the rater believes strongly that the employee possesses a particular listed trait, he checksthe item; otherwise, he leaves the item blank.3. Sample of weighted checklist ● Does he give respect to his superiors? Yes/No ● Does he follow instructions properly? Yes/No ● Does he make mistakes frequently? Yes/NoThe value of each question may be weighted equally or certain questions may be weightedmore heavily than others.4. Advantages and disadvantages of weighted checklist ● This method help the manager in evaluation of the performance of the employee. ● The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions. ● This method also is expensive and time consuming. ● It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employee‘s characteristics, contributions and behaviors.Paired comparison analysis1. Definition of paired comparison analysis ● Paired comparison analysis is a good way of weighing up the relative importance of options. ● A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option.2. Advantages and disadvantages of paired comparison analysis ● It is useful where priorities are not clear. ● It is particularly useful where you do not have objective data to base this on. ● It helps you to set priorities where there are conflicting demands on your resources. ● This makes it easy to choose the most important problem to solve, or select the 19
  • 20. solution that will give you the greatest advantage.3. Steps to conduct paired comparison analysis ● List the options you will compare (elements as A, B, C, D, E for example). ● Create a table 6 rows and 7 column. ● Write down option to column and row; A to row second, cell first from left and A to row first, cell second from left; B to row third, cell first from left and B to row first, cell third from left etc; column seventh is total point. ● Identify importance from 0 (no difference) to 3 (major difference). ● Compare element ―A‖ to B, C, D, E and place ―point‖ at each cell. ● Finally, consolidate the results by adding up the total of all the values for each of the options. You may want to convert these values into a percentage of the total score.4. Paired comparison in performance appraisal ● The term used to describe an appraisal method for ranking employees. ● We use the above model to appraise employee‘ s performance.Definition of the rating scales The Rating Scale is a form on which the manager simply checks off the employee‘s levelof performance. This is the oldest and most widely method used for performance appraisal.The scales may specify five points, so a factor such as job knowledge might be rated 1(poorly informed about work duties) to 5 (has complete mastery of all phases of the job).Content of appraisal• Quantity of work. Volume of work under normal working conditions• Quality of work. Neatness, thoroughness and accuracy of work Knowledge of job.• Dependability. Conscientious, thorough, reliable, accurate, with respect to attendance,relief, lunch breaks, etc.• Judgment• attitude. Exhibits enthusiasm and cooperativeness on the job• Cooperation . Willingness and ability to work with others to produce desired goals.• Initiative.Rating scalesRating scales can include 5 elements as follows: ● Unsatisfactory ● Fair ● Satisfactory ● Good ● OutstandingAdvantages of the rating scales ● Graphic rating scales are less time consuming to develop. ● They also allow for quantitative comparison. 20
  • 21. Disadvantages of the rating scales ● Different supervisors will use the same graphic scales in slightly different ways. ● One way to get around the ambiguity inherent in graphic rating scales is to use behavior based scales, in which specific work related behaviors are assessed. ● More validity comparing workers ratings from a single supervisor than comparing two workers who were rated by different supervisors.Essay evaluation method in performance appraisal1. Definition of essay evaluation ● This method asked managers / supervisors to describe strengths and weaknesses of an employee‘s behavior. Essay evaluation is a non-quantitative technique ● This method usually use with the graphic rating scale method.2. Input of information sources ● Job knowledge and potential of the employee; ● Employee‘s understanding of the company‘s programs, policies, objectives, etc.; ● The employee‘s relations with co-workers and superiors; ● The employee‘s general planning, organizing and controlling ability; ● The attitudes and perceptions of the employee, in general.3. Disadvantages of essay evaluation ● Manager / supervisor may write a biased essay. ● A busy rater may write the essay hurriedly without properly assessing the actual performance of the worker. ● Apart from that, rater takes a long time, this becomes uneconomical from the view point of the firm, because the time of rater is costly. ● Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee. 21
  • 22. Forced ranking (forced distribution) Forced ranking method of performance appraisal to rank employee but in order of forced distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom. The top-ranked employees are considered ―high-potential‖ employees and are often targeted for a more rapid career and leadership development programs. In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary period to improve their performance.Uflex ltd.Company ProfileAfter Pioneering the growth of the flexible packaging industry in India, Uflex has gained anunchallenged identity. Since its inception in the year 1983 it has turned into a multibillioncompany that values quality and customer satisfaction amongst other priorities. Withconsumers spread across the world, Uflex enjoys a global reach. Headquartered in Noida(National Capital Region, New Delhi) it has state of the art manufacturing facilities in India &Dubai. It has also established offices in UAE, Europe, North America and enjoys a formidablemarket presence in more than 85 countries.Uflex facility enjoys ISO 9001 and ISO 14001 certifications and has FDA and BGA approvals for their 22
  • 23. products. It is also a part of the D&B Global Database and winner of various prestigious national andinternational awards like the top exporter of BOPET and BOPP films, and the Worldstar award forpackaging excellence. FPA, AIMCAL and the DUPONT Awards in 2004-2005 are the latest in thisseries.Being a multi faceted organization it has integrated its operations from manufacture of Polyester chips,Films (BOPET, BOPP and CPP - both in plain and metalized form), Coated Film, Laminates, Pouches,Holographic films Gravure cylinders, Inks and adhesives to all types of packaging & printing machines,offering total flexible packaging solution.Uflex has always been committed to the industry by providing technical know-how and being the trend-setter in the flexible packaging industry . Being on the edge of innovation, Uflex endeavors to be thefirst to come up with advanced products that cater to the changing demands of the packaging industry.As part of the Uflex Group, it has over twenty years of experience in polymer technology. Settingmilestones of success and innovation, Uflex is widely known for manufacturing and supplyingproducts, delivering apt services around the world.Chairman’s Vision 23
  • 24. Welcome to UFLEX - a world of complete flexible packaging solutions created with you at thecentre.With you at the centre we conceptualized an enterprise that has taken us to strategic locationsacross the globe so that you find us closer in terms of ideas, markets, challenges, solutions andservices. Today, we are available for you just around the corner, around the world.Putting you at the centre has also helped us evolve a corporate culture, flexible enough torespond to your demands and accommodate your needs. It has helped us to adapt our globalindustry insights to create solutions that keep your goals in focus. So across the world, you willfind dealing with us as comfortable as with your local partner, yet backed with the formidabletechnological know-how of global players.Thinking of you has made us invest in the best inputs on the entire range of the flexiblepackaging spectrum. It also helps us offer the right mix of competencies from the entire rangeof possibilities on the flexible packaging spectrum, so that you get precisely what you need,whenever you need it. All this has added up to an edge that gives you access to not only theperfect product but also the complete process consultancy. This helps you derive the maximummileage out of the products that we engineer for you. Its a distinction that can be brought toyou only by the people who know every link of the flexible packaging chain inside out.So bring us a flexible packaging challenge and take back a relationship – a relationship with anunparalleled competitive and innovative edge.Chairman’s Profile 24
  • 25. Fig.3The founder Chairman and Managing Director of The UFLEX Group, Mr. Ashok Chaturvedi,pioneered the growth of Flexible Packing industry in India. He is hailed as the leader of thisfast growing segment of packaging business in India.Mr. Chaturvedis progressive thinking made him conscious of the need to offer solutions forFlexible Packaging and this led to the inception of a company for manufacturing packagingmaterials.Exhibiting inspiring innovativeness and entrepreneurial skills, Mr. Chaturvedi applied the latestinternational technologies for tailoring and designing packing material which adapted to theneeds of the customers, winning markets globally.Appreciating the customers needs forquality, prompt delivery and service, he decided to integrate backwards in the manufacture.Board Of Directors 25
  • 26. Name of the Director Shri Ashok Chaturvedi - Chairman & Managing Director Shri Ravi Kathpalia Shri M.G. Gupta Shri A. Karati - ICICI Nominee Shri N K Duggal - IFCI Nominee Shri S.K. Kaushik - Whole-time DirectorCommittee Of DirectorsMEMBERS OF :Audit Committee:1. Shri Ravi Kathpalia – Chairman2. Shri M.G. Gupta3. Shri A. KaratiRemuneration Committee1. Shri M.G. Gupta – Chairman2. Shri Ravi Kathpalia 26
  • 27. 3. Shri A. Karati Shareholders’/Investors’ Grievance Committee 1. Shri Ravi Kathpalia – Chairman 2. Shri M.G. Gupta 3. Shri S.K. KaushikMILESTONESSeptember 1983:- Formation of the flex group of companies.May 1984:- Formation of Flex Engineering Limited.December 1985:- Formation of FCL Technologies and Product limited.June 1988:- Formation of Uflex Limited. FIL is the largest manufacturer of polyester,polypropylene, and metallised films in India.February 1990:- Formation of Flex Food Limited for mushroom plantation.November 1994:- Launched the operation of First Line for the production of BOPET filmsunder production capacity: 20,000 TPA.January 1996:- Launched the operation of Second Line for the production of BOPET filmsunder production capacity: 20,000 TPA.June 1996:- Launched the operation of First Line for the production of BOPP films. Productioncapacity: 20,000 TPA.January 1997:- Commercial production of Polyethylene Teraphthalate chips started.June 1991:- M/s UFLEX America Incorporated, located in North Califoria, U.S.A., formed as awholly owned subsidiary of M/s UFLEX Limited.June 2002:- First Metallizer with a capacity of 6,000 TPA installed.March 2003:- Cast Polyporpylene film line with a capacity to produce 6,000 TPA installed toproduce CPP films.October 2003:- Second Metallizer with a capacity of 6,000 MT/annum was installed.December 2003:- Launched the operation of the second line for production of BOPP films witha capacity of 15,000 MT/annum. 27
  • 28. April 2004:- Launched the operation of the third line for the production of BOPET Films witha capacity of 20,000 MT/annum.July 2004:- A third metallizer with a capacity of 6,000 TPA was installed in Jabel Ali FeeZone, UAE.March 2005:- A state of art polyester line with a capacity of 20,000 TPA was setup in Jabel AliFee Zone, UAE.July 2005:- A fourth Metallizer, with a capacity of 6000 TPA was installed with plasmatreatment facility.October 2007:- Launched the operation of Fifth line, 8.7 metres wide for the production ofBOPET films with a capacity of 25000 MT/annum.October 2007:- Launched the operation of 1.85 metres wide Thermal Lamination Machine forthe production of Thermal Lam BOPP film with a capacity of 3600 TPA.November 2007:- Production of shrink sleeves a new concept in packaging (Heat shrink andcold seal) started.December 2007:- New packaging and Holography plant was started in Jammu.January 2008:- New WPP plant was started in Noida. 28
  • 29. BUSINESS DIVISONFILM DIVISONINTRODUCTIONUFLEX Limited, the India-based flexible packaging giant, began its existence nearly twodecades ago and has come a long way since then offering a vast array of innovative productsand services that enrich life, improve performance and create value for the customers andshareholders.With a vision to ―Progress with Distinction‖, UFLEX is privileged to contribute to society byproducing a variety of sophisticated products, on state-of-the-art imported equipment andmachines, improving the quality of life for people across the globe.We manufacture in-house Polyester chips, BOPET / BOPP / COATED / METALLISED / CPPFilms, Packaging machines, converting equipment, inks, adhesives, Flexible Laminates andPouches and have emerged as a ―one stop shop‖ committed to providing customers withcompetitive advantage, placing top priority to ―customer success‖.We, at the Film Division of UFLEX Limited, are one of the largest manufacturer, supplier andexporter of a variety of Plastic Films in the world.With consistent quality, production expertise, continuous innovation in products andtechnologies, a dedicated work force and a highly motivated corporate team, the Flex group isexpanding at an immense pace.We invite you to take a look at our wide range of products by browsing through these pagesand then give us a chance to help you.We‘ll make sure to be there for you any time, every time! 29
  • 30. HOLOGRAPHY DIVISONHolography Division is a professionally managed division of UFlex Ltd., focusing on theproduction of top-of-the-line holographic products.At UFlex holographic division, our goal is to deliver quality that will ensure the confidence ofour discerning buyers globally and become a benchmark for others. We will beuncompromising in our adherence to excellence at every stage of production, from theselection of raw materials to final product delivery.Equipped with state-of-the-art manufacturing facilities and technology tie-ups with worldleaders, provide an access to leading innovations in the industry, hence ensure latest technologyand processes in place.Entire supply-chain is attuned to ensure minimum lead-time for execution of large orders, offercustomization of products based on buyer specifications and an assurance of innovation andflexibility in product design.R & D: With a strong foothold in innovating products and design, research & development ofholography division is committed to refine and upgrade the processes and products beingmanufactured. Our fully equipped research laboratory is a result of core technical strength &commitments to manufacturing holography and related products..In addition maximum emphasis is placed on security of making of hologram housekeeping andhygiene in relation to materials, processes, storage and handling. Moreover all environmentallaws, guidelines and commitments are unfailingly adhered to.All emissions kept below permissible levelsMinimal process waste generation - Almost all products made from eco-friendly materialsContinuous employee education and motivationSecured execution & delivery of any job is an important pillar in holographic industry. Flex hasensured the same by installing, card access system bio-matrix technology (Thumb RecognitionSystem), fully trained in-house armed guards to restrict any unauthorized entry to the facilitiesand maintain high-level security zone.ENGINEERING DIVISON 30
  • 31. UFLEX Limited - Coverting Division engaged in the business of Packaging and ConvertingMachines, established in Noida(adjacent to the national capital, New Delhi, India) in 1984, isan integral part of UFLEX Group of companies.The UFLEX group commenced its operationswith a small investment and a pioneering spirit in 1983. Today, it is one of the leadingcorporate houses in the Asia Pacific Region offering, among the other things, a single windowTotal Packaging Solutions.Fig 4Our Vision"Safer Living Thru Better Packaging"A better packaging helps deliver a better product to the consumer. To emerge as a worldleader, in providing Total Flexible Packaging Solutions inspired by Total CustomerSatisfaction.CONVERTING DIVISONUFLEX Ltd provides complete integrated packaging solutions, right from design to delivery. 31
  • 32. Catering to the specific need for Laminates and Pouches of each customer by constantlyredefining cost effective packaging options, is the only tradition of service known to UFLEX.With almost 2 decades of experience in Flexible Packaging and significant investments, wehave perfected our processes and technology to produce high quality Flexible PackagingMaterials on time and within budgets.To ensure superior quality and timely delivery we haveachieved full backward integration. Our in-company divisions and group companies locatednearby produce all critical inputs, like the BOPET and BOPP films, Inks, Adhesives andsubstrates, Holographic Films, Metalisation facility, Blown Film and other such raw materials. Fig 5Through our innovations in packaging, we have even helped our customers resolve a variety ofproblems. A few such cases are quoted below:An auto major had serious problem in combating spurious spares. We designed very specialLaminates with holographic designs incorporating the companys logo. This eliminated theproblem almost immediately raising the sales to three times within a year.A bed mattress manufacturer had no brand recognition inspite of giving the best quality,because of duplication. When all methods failed to contain this piracy, UFLEX EngineeringDivision created a Gravure printed pouch measuring 36"x96". The problem was nipped and thebrand established its leadership in the market .A leading snack food manufacturer sold a popular snack in 400gms packing. The quantity wastoo much for a person to finish in one go. But the snack needed to be sold in the 400gm packs.Uflex Zipouch division designed a reclosable pouch with zipper. The buyer could eat as muchas desired and then seal the pack for reuse later.CYLINDER DIVISONUFLEX (An ISO 9000 certified company) is one of the key players in the global packagingindustry. UFLEX a dynamic and creative organization, today offers a reliable single windowaccess to almost everything related to flexible packaging. Printing Cylinder is one of the major 32
  • 33. products.Since its inception, the team has been driving hard to master each link in the chain of flexiblepackaging development and production. As a result of this drive started manufacturingrotogravure Cylinders in the year 1986 and today boasts of a production capacity of over35,000 cylinders per annum.CHEMICAL DIVISONBreaking through with exciting new innovations in the flexible packaging is part of theintrinsic value system at UFLEX Chemical Division. By offering a wide spectrum of colourfulinks along with the requisite range of adhesives, Chemical Division adds a whole new 33
  • 34. dimension to flexible packaging. Fig 6Chemical Dision , is part of the UFLEX Limited -name that is synonymous with the flexiblepackaging revolution in India, providing complete flexible Packaging solutions to over 60countries. Today the UFLEX Group has Asias largest state-of-the-art packaging plant andallied infrastructure at NOIDA (U.P.) spread over 70 acres.Uflex Chemical Division has established a US $ 6.5 million manufacturing facility at NOIDA(U.P) with ongoing technology transfer agreements with M/s. Color Converting Industries,U.S.A. and M/s. Sunkyong Industries Limited, South Korea-a Fortune 500 company. UFLEXChemical Division also has an in-house Research & Development laboratory, approved andrecognised by the Department of Science and Technology, Government of India. This researchfacility is manned by a dedicated team comprising of some of the best scientific minds in thebusiness.UFLEX Chemical Division , an ISO 9001 certified company, is strongly focused on deliveringthe highest standards of quality with the single-minded intent of ensuring total customersatisfaction - over and over again. Every employee is completely committed to theorganisations goals, towards quality & service. OBJECTIVES ● To find out the perception of employees towards performance appraisal. ● To study the impact of performance appraisal on employee‘s performance. 34
  • 35. LITERATURE REVIEWOrganizational Citizenship Behaviour 35
  • 36. Also referred to as contextual behaviour, prosaically behaviour, and extra-rolebehaviour, organizational citizenship behaviour (OCB) consists of employee behaviour thatcontributes to the welfare of the organization but is beyond the scope of the employee‘s jobduties. These extra-role behaviours may help or hinder the attainment of organizational goals.Research supports five dimensions of OCB: altruism, conscientiousness, courtesy,sportsmanship, and civic virtue. Researchers have found that the OCB dimensions of altruismand civic virtue can have just as much of an impact on manager‘s subjective evaluations ofemployees‘ performances as employees‘ objective productivity levels. The degree to whichOCB can influence judgments of job performance is relatively high. Controversy exists as towhether OCB should be formally considered as a part of performance appraisal (PA).Performance Appraisal InterviewsThe performance appraisal (PA) interview is typically the final step of the appraisalprocess. The interview is held between the subordinate and supervisor. The PA interview canbe considered of great significance to an organization‘s PA system. It is most advantageouswhen both the superior and subordinate participate in the interview discussion and establishgoals together. Three factors consistently contribute to effective PA interviews: thesupervisor‘s knowledge of the subordinate‘s job and performance in it, the supervisor‘ssupport of the subordinate, and a welcoming of the subordinate‘s participation.Employee Reactions to Performance AppraisalNumerous researchers have reported that many employees are not satisfied with theirperformance appraisal (PA) systems. Studies have shown that subjectivity as well asappraiser bias is often a problem perceived by as many as half of employees. Appraiser bias,however, appears to be perceived as more of a problem in government and public sectororganizations. Also, according to some studies, employees wished to see changes in the PAsystem by making ―the system more objective, improving the feedback process, andincreasing the frequency of review.‖ In light of traditional PA operation defects,―organizations are now increasingly incorporating practices that may improve the system.These changes are particularly concerned with areas such as elimination of subjectivity andbias, training of appraisers, improvement of the feedback process and the performance reviewdiscussion.‖According to a meta-analysis of 27 field studies, general employee participation in his/herown appraisal process was positively correlated with employee reactions to the PAsystem. More specifically, employee participation in the appraisal process was most stronglyrelated to employee satisfaction with the PA system. Concerning the reliability of employeereaction measures, researchers have found employee reaction scales to be sound with fewconcerns through using a confirmatory factor analysis that is representative of employeereaction scales. 36
  • 37. Researchers suggest that the study of employees‘ reactions to PA is important because of twomain reasons: employee reactions symbolizes a criterion of interest to practitioners ofPerformance appraisal and employee reactions have been associated through theory todeterminants of appraisal acceptance and success. Researchers translate these reasons into thecontext of the scientist-practitioner gap or the ―lack of alignment between research andpractice.‖Performance Appraisal and Legal ImplicationsThere are federal laws addressing fair employment practices, and this also concernsperformance appraisal (PA). Discrimination can occur within predictions of performance andevaluations of job behaviors. The revision of many court cases has revealed the involvementof alleged discrimination which was often linked to the assessment of the employee‘s jobperformance. Some of the laws which protect individuals against discrimination are ―the TitleVII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination inEmployment Act (ADEA), and the Americans with Disabilities Act (ADA).‖ Lawsuits mayalso results from charges of an employer‘s negligence, defamation, and/ormisrepresentation. A few appraisal criteria to keep in mind for a legally sound PA is to keepthe content of the appraisal objective, job-related, behaviour-based, within the control of theratee, and related to specific functions rather than a global assessment. Some appraisalprocedure suggestions for a legally sound PA is to standardize operations, communicateformally with employees, provide information of performance deficits and give opportunitiesto employees to correct those deficits, give employees access to appraisal results, providewritten instructions for the training of raters, and use multiple, diverse and unbiasedraters. These are valuable but not exhaustive lists of recommendations for Performanceappraisal.Cross-Cultural Implications of Performance AppraisalPerformance appraisal (PA) systems, and the premises of which they were based, that havebeen formed and regarded as effective in the United States may not have the transferabilityfor effectual utilization in other countries or cultures, and vice versa. Performance ―appraisalis thought to be deeply rooted in the norms, values, and beliefs of asociety‖. ―Appraisalreflects attitudes towards motivation and performance (self) and relationships (e.g. peers,subordinates, supervisors, organization), all of which vary from one country to the next‖.Therefore, appraisal should be in conjunction with cultural norms, values, and beliefs in orderto be operative. The deep-seated norms, values and beliefs in different cultures affectemployee motivation and perception of organizational equity and justice. In effect, a PAsystem created and considered effectual in one country may not be an appropriate assessmentin another cultural region. 37
  • 38. For example, some countries and cultures value the trait of assertiveness and personalaccomplishment while others instead place more merit on cooperation and interpersonalconnection. Countries scoring high on assertiveness consider PA to be a way of assuringequity among employees so that higher performing employees receive greater rewards orhigher salaries. Countries scoring low on assertiveness but higher in interpersonal relationsmay not like the social separation and pay inequity of higher/lower performing employees;employees from this more cooperative rather than individualistic culture place more concernon interpersonal relationships with other employees rather than on individual interests. Highassertive countries value performance feedback for self-management and effectivenesspurposes while countries low in assertiveness view performance feedback as ―threatening andobtrusive‖. In this case, the PA of the high assertive countries would likely not be beneficialfor countries scoring lower in assertiveness to employ. However, countries scoring lower inassertiveness could employ PA for purposes of improving long-term communicationdevelopment within the organization such as clarifying job objectives, guide training anddevelopment plans, and lessen the gap between job performance and organizationalexpectations.Perception (from the Latin perceptio, percipio) is the organization, identification, andinterpretation of sensory information in order to fabricate a mental representation through theprocess of transduction, which sensors in the body transform signals from the environmentinto encoded neural signals. All perception involves signals in the nervous system, which inturn result from physical stimulation of the sense organs. For example, visioninvolves light striking the retinas of the eyes, smell is mediated by odor molecules andhearing involves pressure waves. Perception is not the performance appraisalsive receipt ofthese signals, but can be shaped by learning, memory and expectation. Perception involvesthese "top-down" effects as well as the "bottom-up" process of processing sensory input. The"bottom-up" processing is basically low-level information thats used to build up higher-levelinformation (i.e. - shapes for object recognition). The "top-down" processing refers to apersons concept and expectations (knowledge) that influence perception. Perception dependson complex functions of the nervous system, but subjectively seems mostly effortless becausethis processing happens outside conscious awareness.Since the rise of experimental psychology in the late 19th Century, psychologysunderstanding of perception has progressed by combining a variety oftechniques. Psychophysics measures the effect on perception of varying the physical qualitiesof the input. Sensory neurosciencestudies the brain mechanisms underlying perception.Perceptual systems can also be studied computationally, in terms of the information theyprocess. Perceptual issues in philosophy include the extent to which sensory qualities such assounds, smells or colors exist in objective reality rather than the mind of the perceiver.Although the senses were traditionally viewed as performance appraisalsive receptors, thestudy of illusions and ambiguous images has demonstrated that the brains perceptual systemsactively and pre-consciously attempt to make sense of their input. There is still active debateabout the extent to which perception is an active process of hypothesis testing, analogous 38
  • 39. to science, or whether realistic sensory information is rich enough to make this processunnecessary.The perceptual systems of the brain enable individuals to see the world around them as stable,even though the sensory information may be incomplete and rapidly varying. Human andanimal brains are structured in a modular way, with different areas processing different kindsof sensory information. Some of these modules take the form of sensory maps, mapping someaspect of the world across part of the brains surface. These different modules areinterconnected and influence each other. For instance, the taste is strongly influenced by itsodor.Process and terminologyThe process of perception begins with an object in the real world, termed the distalstimulus or distal object. By means of light, sound or another physical process, the objectstimulates the bodys sensory organs. These sensory organs transform the input energy intoneural activity—a process called transduction. This raw pattern of neural activity is calledthe proximal stimulus. These neural signals are transmitted to the brain and processed. [2] Theresulting mental recreation of the distal stimulus is the percept. Perception is sometimesdescribed as the process of constructing mental representations of distal stimuli using theinformation available in proximal stimuli.An example would be a person looking at a shoe. The shoe itself is the distal stimulus. Whenlight from the shoe enters a persons eye and stimulates their retina, that stimulation is theproximal stimulus. The image of the shoe reconstructed by the brain of the person is thepercept. Another example would be a telephone ringing. The ringing of the telephone is thedistal stimulus. The sound stimulating a persons auditory receptors is the proximal stimulus,and the brains interpretation of this as the ringing of a telephone is the percept. The differentkinds of sensation such as warmth, sound, and taste are called "sensory modalities".[6][8]Psychologist Jerome Bruner has developed a model of perception. According to him peoplego through the following process to form opinions:.[When a perceiver encounters an unfamiliar target we are opened different informational cuesand want to learn more about the target.In the second step we try to collect more information about the target. Gradually, weencounter some familiar cues which helps us categorize the target.At this stage the cues become less open and selective. We try to search for more cues thatconfirm the categorization of the target. At this stage we also actively ignore and even distortcues that violate our initial perceptions. Our perception becomes more selective and wefinally paint a consistent picture of the target.According to Alan Saks and Gary Johns, there are three components to Perception. 39
  • 40. The Perceiver, the person who becomes aware about something and comes to a finalunderstanding. There are 3 factors that can influence his or her perceptions: experience,motivational state and finally emotional state. In different motivational or emotional states,the perceiver will react to or perceive something in different ways. Also in different situationshe or she might employ a "perceptual defence" where they tend to "see what they want tosee".The Target. This is the person who is being perceived or judged. "Ambiguity or lack ofinformation about a target leads to a greater need for interpretation and addition."The Situation also greatly influences perceptions because different situations may call foradditional information about the target.Stimuli are not necessarily translated into a percept and rarely does a single stimulus translateinto a percept. An ambiguous stimulus may be translated into multiple percepts, experiencedrandomly, one at a time, in what is called "multistable perception". And the same stimuli, orabsence of them, may result in different percepts depending on subject‘s culture and previousexperiences. Ambiguous figures demonstrate that a single stimulus can result in more thanone percept; for example the Rubin vase which can be interpreted either as a vase or as twofaces. The percept can bind sensations from multiple senses into a whole. A picture of atalking person on a television screen, for example, is bound to the sound of speech fromspeakers to form a percept of a talking person. "Percept" is also a term usedby Leibniz,[10] Bergson, Deleuze and Guattari[11] to define perception independent fromperceivers.Perception and realityIn the case of visual perception, some people can actually see the percept shift in their mindseye. Others, who are not picture thinkers, may not necessarily perceive the shape-shifting astheir world changes. The esemplastic nature has been shown by experiment: an ambiguousimage has multiple interpretations on the perceptual level.This confusing ambiguity of perception is exploited in human technologies suchas camouflage, and also in biological mimicry, for example by European Peacock butterflies,whose wings bear eye markings that birds respond to as though they were the eyes of adangerous predator.There is also evidence that the brain in some ways operates on a slight "delay", to allow nerveimpulses from distant parts of the body to be integrated into simultaneous signals.Perception is one of the oldest fields in psychology. The oldest quantitative law inpsychology is the Weber-Fechner law, which quantifies the relationship between the intensityof physical stimuli and their perceptual effects (for example, testing how much darker acomputer screen can get before the viewer actually notices). The study of perception gaverise to the Gestalt school of psychology, with its emphasis on holistic approach. 40
  • 41. Effect of motivation and expectationMain article: Set (psychology)A perceptual set, also called perceptual expectancy or just set is a predisposition to perceivethings in a certain way. It is an example of how perception can be shaped by "top-down"processes such as drives and expectations. Perceptual sets occur in all the differentsenses. They can be long term, such as a special sensitivity to hearing ones own name in acrowded room, or short term, as in the ease with which hungry people notice the smell offood. A simple demonstration of the effect involved very brief presentations of non-wordssuch as "sael". Subjects who were told to expect words about animals read it as "seal", butothers who were expecting boat-related words read it as "sail".Sets can be created by motivation and so can result in people interpreting ambiguous figuresso that they see what they want to see. For instance, how someone perceives what unfoldsduring a sports game can be biased if they strongly support one of the teams. In oneexperiment, students were allocated to pleasant or unpleasant tasks by a computer. They weretold that either a number or a letter would flash on the screen to say whether they were goingto taste an orange juice drink or an unpleasant-tasting health drink. In fact, an ambiguousfigure was flashed on screen, which could either be read as the letter B or the number 13.When the letters were associated with the pleasant task, subjects were more likely to perceivea letter B, and when letters were associated with the unpleasant task they tended to perceive anumber 13.Perceptual set has been demonstrated in many social contexts. People who are primed tothink of someone as "warm" are more likely to perceive a variety of positive characteristics inthem, than if the word "warm" is replaced by "cold". When someone has a reputation forbeing funny, an audience are more likely to find them amusing. Individuals perceptual setsreflect their own personality traits. For example, people with an aggressive personality arequicker to correctly identify aggressive words or situationsOne classic psychological experiment showed slower reaction times and less accurateanswers when a deck of playing cards reversed the color of the suit symbol for some cards(e.g. red spades and black hearts)Philosopher Andy Clark explains that perception, although it occurs quickly, is not simply abottom-up process (where minute details are put together to form larger wholes). Instead, ourbrains use what he calls Predictive coding. It starts with very broad constraints andexpectations for the state of the world, and as expectations are met, it makes more detailedpredictions (errors lead to new predictions, or learning processes). Clark says this researchhas various implications; not only can there be no completely "unbiased, unfiltered"perception, but this means that there is a great deal of feedback between perception andexpectation (perceptual experiences often shape our beliefs, but those perceptions were basedon existing beliefs). 41
  • 42. TheoriesPerception as hypothesis-testingCognitive theories of perception assume there is a poverty of stimulus. This (with referenceto perception) is the claim that sensations are, by themselves, unable to provide a uniquedescription of the world. Sensations require enriching, which is the role of the mental model.A different type of theory is the perceptual ecology approach of James J. Gibson. Gibsonrejected the assumption of a poverty of stimulus by rejecting the notion that perception isbased in sensations – instead, he investigated what information is actually presented to theperceptual systems. His theory "assumes the existence of stable, unbounded, and permanentstimulus-information in the ambient optic array. And it supposes that the visual system canexplore and detect this information. The theory is information-based, not sensation-based." He and the psychologists who work within this paradigm detailed how the worldcould be specified to a mobile, exploring organism via the lawful projection of informationabout the world into energy arrays. Specification is a 1:1 mapping of some aspect of theworld into a perceptual array; given such a mapping, no enrichment is required andperception is direct perceptionPerception-in-actionAn ecological understanding of perception derived from Gibsons early work is that of"perception-in-action", the notion that perception is a requisite property of animate action;that without perception action would be unguided, and without action perception would serveno purpose. Animate actions require both perception and motion, and perception andmovement can be described as "two sides of the same coin, the coin is action". Gibson worksfrom the assumption that singular entities, which he calls "invariants", already exist in thereal world and that all that the perception process does is to home in upon them. A viewknown as constructivism (held by such philosophers as Ernst von Glasersfeld) regards thecontinual adjustment of perception and action to the external input as precisely whatconstitutes the "entity", which is therefore far from being invariant.Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmaticnecessity to allow an initial measure of understanding to be established prior to the updatingthat a statement aims to achieve. The invariant does not and need not represent an actuality,and Glasersfeld describes it as extremely unlikely that what is desired or feared by anorganism will never suffer change as time goes on. This social constructionist theory thusallows for a needful evolutionary adjustment.A mathematical theory of perception-in-action has been devised and investigated in manyforms of controlled movement, and has been described in many different species of organismusing the General Tau Theory. According to this theory, tau information, or time-to-goalinformation is the fundamental percept in perception. 42
  • 43. RESEARCH METHODOLOGYResearch Methodology AdoptedResearch Design : Descriptive researchResearch Instrument : Structured Questionnaire 43
  • 44. Sampling Plani) Sample Method : Non-Probability Sampling(Convenience Sampling)ii) Sample Size : 100iii) Sample Unit : Employees who do not hold asupervisory positionSampling DesignConvenience Sampling, as the name implies, is based on the convenience of theresearcher who is to select a sample. Respondents in the sample are included in it merelyon account of their being available on the spot where the survey was in progress.Source of Data1. Data Source:There are two types of data; primary and secondary data.Primary dataIn this project work primary data has been collected by: ● Questionnaires have been done on several respondents in the local area and perception about the data card were collected.Secondary dataThe data collected from secondary source is through Magazine , newspaper, internet.2. Data Analysis:Statistical Tool 44
  • 45. The statistical tool used in this project is chi square. FINDINGS AND ANALYSISHYPOTHESIS 45
  • 46. NULL HYPOTHESIS: There is no relation between employees perception and performanceappraisal.ALTERNATE HYPOTHESIS: There is relation between employees perception andperformance appraisal.My performance is adequately monitored during performance appraisal. Fig7 46
  • 47. ● From the above data we find most of the employees whose salary is below 10,000 and above 30,000 they are strongly agree that their performance is adequately monitored during performance appraisal● Maximum employees whose salary is in between 10,000-20,000 and 20,000-30,000, they are agree.Performance appraisal does not contribute to job performance. Fig 8● From the above data we find most of the employees whose salary is below 10,000 and above 30,000 they are disagree that performance appraisal does not contribute to job performance.● Maximum employees whose salary is in between 10,000-20,000 and 20,000-30,000, they are strongly disagree. 47
  • 48. Performance goals are clearly defined in the process of appraisal. Fig 9The above graph represents maximum number of employees whose salary is below 10,000 and10,000 are Disagree that the performance goals are clearly defined in the process of performance.Whereas, those employees whose salary is 20,000-30,000 they are agree and above 30,000 give noresponse.The performance appraisal is helpful in reducing grievance among theemployees. 48
  • 49. Fig 10The above graph represents most of the employees whose salary is below 10,000 and 10,000-20,000they disagree that the performance appraisal is helpful in reducing grievance among the employees.Whereas, maximum employees whose salary in between 20,000-30,000 and above 30,000 they arestrongly agree.I do not need feedback to monitor my performance Fig 11 ● The above graph represents maximum number of employees whose salary is below 10,000 are disagree that they do not need feedback to monitor their performance. ● Most of the employees whose salary in between 10,000-20,000 and 20,000-30,000 they agree that they do not need feedback to monitor their performance. ● And Maximum employees whose salary is above 30,000 they are strongly agree. 49
  • 50. The performance appraisal is helpful for improving personnel skill. Fig 12 ● Above graph shows that most of the employees whose years of service up to 2 years and 6-10 years are strongly agree that appraisal enhances the chances for promotion. ● Maximum number of employees whose years of service is 2-6 years and above 10 years are agree that the appraisal enhances the chances for promotion.Promotion is purely based on performance appraisal. 50
  • 51. Fig 13 ● The above graph represents maximum number of employees whose years of service up to 2 years and above 10 years are strongly agree that the promotion is purely based on performance. ● Most of the employees whose years of service is 2-6 years and 6-10 years are agree that promotion is purely based on performance.Appraisal increases career growth. Fig 14 ● From the above graph we find that maximum number of employees whose years of service up to 2 years and 2-6 years are agree that the Appraisal increases career growth ● Most of the employees whose years of service is 6-10 years and above 10 years are strongly agree that the appraisal increases career growth 51
  • 52. Appraisal enhances the chances for promotion. Fig 15 ● Above graph shows that most of the employees whose years of service up to 2 years and 6-10 years are strongly agree that appraisal enhances the chances for promotion. ● Maximum number of employees whose years of service is 2-6 years and above 10 years are agree that the appraisal enhances the chances for promotion. 52
  • 53. STATISTICAL TOOLCHI-SQUARE TESTALTERNATIVE HYPOTHESIS—Performance appraisal improves jobperformance. O E O-E (O-E)² (O-E)²/E Strongly agree 48 20 28 784 39.2 Agree 32 20 12 144 7.2 No response 9 20 11 121 6.05 Disagree 7 20 13 169 8.45 Strongly disagree 4 20 16 256 12.8 Table 1Where, O is Observed valueand, E is expected value.Σ(0-E)²/E = 73.7χ² = Σ(O-E)²/ E = 73.7n-1 = 5-1 = 4 Degree of freedomn= number of variables 53
  • 54. The significance level = 0.05So, 9.49 is TabulatedCalculated > Tabulated Therefore, Null Hypothesis is rejected. i.e. Performance Appraisal does not improves jobperformance, this statement is rejected.So, from the result we can say that performance appraisal improves job performance.ALTERNATIVE HYPOTHESIS- The assessment of performance motivatesto work harder. 54
  • 55. O E O-E (O-E)² (O-E)²/E Strongly agree 32 20 12 144 7.2 Agree 36 20 16 256 12.8 No response 14 20 6 36 1.8 Disagree 11 20 9 81 4.05 Strongly disagree 7 20 13 169 8.45 Table 2Where, O is Observed valueand, E is expected value.Σ(0-E)²/E = 34.3χ² = Σ(O-E)²/ E = 34.3n-1 = 5-1 = 4 Degree of freedomn= number of variablesThe significance level = 0.05So, 9.49 is TabulatedCalculated > TabulatedTherefore, Null Hypothesis is rejected. i.e. the assessment of performance does notmotivates to work harder. This statement is rejected. 55
  • 56. So, from the result we can say that the assessment of performance motivates to work harder.ALTERNATIVE HYPOTHESIS- Performance goals are clearly defined inthe process of appraisal. 56
  • 57. O E O-E (O-E)² (O-E)²/E Strongly agree 26 20 6 36 1.8 Agree 39 20 19 361 18.05 No response 15 20 5 25 1.25 Disagree 9 20 11 121 6.05 Strongly disagree 11 20 9 81 4.05 Table 3Where, O is Observed valueand, E is expected value.Σ(0-E)²/E = 31.2χ² = Σ(O-E)²/ E = 31.2n-1 = 5-1 = 4 Degree of freedomn= number of variables The significance level = 0.05So, 9.49 is TabulatedCalculated > Tabulated Therefore, Null Hypothesis is rejected. i.e. performance goals are not clearly defined in theprocess of appraisal. This statement is rejected. 57
  • 58. So, from the result we can say that Performance goals are clearly defined in the process ofappraisal.ALTERNATIVE HYPOTHESIS- Performance appraisal provides me withthe opportunity to set personal goals. 58
  • 59. O E O-E (O-E)² (O-E)²/E Strongly agree 26 20 6 36 1.8 Agree 36 20 16 256 12.8 No response 16 20 4 16 0.8 Disagree 12 20 8 64 3.2 Strongly disagree 10 20 10 100 5 Table 4Where, O is Observed valueand, E is expected value.Σ(0-E)²/E = 23.6χ² = Σ(O-E)²/ E = 23.6n-1 = 5-1 = 4 Degree of freedomn= number of variables The significance level = 0.05So, 9.49 is TabulatedCalculated > Tabulated Therefore, Null Hypothesis is rejected. i.e Performance appraisal does not provides me withthe opportunity to set personal goals. This statement is rejected. So, from the result we can say that Performance appraisal provides me with the opportunityto set personal goals. 59
  • 60. 1. As it is cleared by the analysis part that the performance appraisal enhances the performance of the employees and assessment of performance motivates to work harder these two satisfy our first objective which is to find out that the perception of employees towards performance appraisal and by this it is clear that employees are very much depended upon the appraisal system and and they are likely to do the work for their appraisal and by this their performance enhance. 2. And by other to analysis i.e. performance goals are clearly defined in the process of appraisal and the last one i.e. performance appraisal provides with the opportunity to set personal goals and by these it is cleared that the second objective which is the study of the impact of performance appraisal on employees‘ performance and by this it is clearly defined that the performance appraisal has a positive impact on the employees‘ performance.And by this it is cleared that our alternate hypothesis which is there is relation betweenemployees perception and performance appraisal has been justified. CONCLUSION & RECOMMENDATIONPerformance Appraisal assesses an individual employee‘s job performance and productivityin relation to certain pre-established criteria and organizational objectives. Performance 60
  • 61. appraisal plays a very important role in the organization because it improves jobperformance. From the study it is conclude that performance appraisal provides theopportunity to set personal goals. It is also conclude that the assessment of performancemotivates to work harder. The performance appraisal is helpful in reducing grievance amongthe employees. From this study it is found that performance appraisal increases careergrowth. And performance appraisal helps in the promotion of the employees. It is cleared bythe analysis part that the performance appraisal enhances the performance of the employeesand assessment of performance motivates to work harder these two satisfy our first objectivewhich is to find out that the perception of employees towards performance appraisalThis shows that there must be some necessary changes made and to look after for the propergrowth of the firm and as well as of the employees‘ performance. The recommendationwhich must be followed for that are as follows:- ● The performance appraisal must be measured on the continuous time period. ● There must be proper monitoring of the employees performance. ● There must be performance appraisal to improv the personnel skills of the employees. ● Promotion must be done on the basis of performance appraisal. ● There must be assessment of performance to motivate the employees to work harder. LIMITATIONS There are various limitations in the completion of the project and they are as follows: 61
  • 62. ● Few employees were having problems in filling the questionnaire due to time constraint.● Few employees were taking the exercise as a mere formality.● Even after much care was taken while formation of the questionnaire, few employees got confused regarding the questions..● The employees had to be assured that it is for academic purposes only and the response given by them will be kept anonymous.● The common query was why these questionnaires are filled.● Few employees got irritated because they felt it was a waste of time.● Comparatively small sample size (total employees-100 approx.) BIBLIOGRAPHYwww.google.comwww.uflexltd.com 62
  • 63. www.flexfilm.comwww.uflexengg.comwww.wikipedia.orgThornton, G.C. & W.C. Byham (1982) Assessment centres and Managerial Performance, AcademicPress, New York .T.V.Rao & U. Pareek (1978) Performace Appraisal and Review: Operating Manual, Learning System,New Delhi.H. Richl (1996). ‘A Skilful Approach to High Productivity’, H.R. Magazine, August, 97-102J.A.D Conger Finegold & E.E.Lawler (1998).’Appraising Boardroom Performance’. Harvard BusinessReview, January- February. ANNEXURE QUESTIONNAIRE 63
  • 64. Name:…………………………………………………………………………..Sex:[ ] Male [ ] FemaleAge:[ ]Upto 20 years [ ] 20-30 years [ ] 30-40 years [ ] above 40yearsMarital Status:[ ] Married [ ] UnmarriedYears of service:[ ]Upto 2 years [ ] 2-6 years [ ] 6-10 years [ ] above 10yearsMonthly Income: 64
  • 65. [ ] below 10,000 [ ] 10,000-20,000 [ ] 20,000-30,000 [ ] above 30,000STUDY FACTORS:S.no. Particulars SA A NR DA SDA7 Performance appraisal improves job performance8 The assessment of performance motivates to work harder9 Performance goals are clearly defined in the process of appraisal10 My performance is adequately monitored during performance appraisal11 Performance appraisal does not contribute to job performance12 The performance appraisal is helpful in reducing grievance among the employee13 I do not need feedback to monitor my performance14 The performance appraisal is helpful for improving personnel skill15 Promotion is purely based on performance appraisal16 Is the Performance assessment match to your expectations17 Appraisals encourage career growth18 Appraisals enhances the chances for promotion 65
  • 66. 19 Performance appraisal provides me with the opportunity to set personal goals20 The Performance Appraisal System give a proper assessment of your contribution to the OrganizationSA- Strongly agree, A- Agree, NS- No response, DA- Disagree, SDA- StronglyDisagree 66