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Project-performance appraisal

  1. 1. A DISSERTATION REPORT ON PERFORMANCE APPRAISAL AT JINDAL BROTHERS Pvt. Ltd Submitted in partial fulfillment of the requirement for Master of Business Administration (MBA), FROM INSTITUTE OF MANAGEMENT AND TECHNOLOGYSUBMITTED TO: SUBMITTED BY:Mrs. ESHA BATHLA ASHUTOSH PANDEY(Internal Guide) M.B.A 4th Sem. Session: 2010-2012 INSTITUTE OF MANAGEMENT AND TECHNOLOGY Bazpur Road, Kashipur-244713 U.S.NAGAR (UTTARAKHAND) (Approved By AICTE: Affiliated to Uttarakhand Technical University)
  2. 2. DeclarationI hereby declare that the work presented herein is genuine work done originally by me andhas not been published or submitted elsewhere for the requirement of a degree programme.Any literature, data or works done by others and cited within this dissertation has been givendue acknowledgement and listed in the reference section. Signature of the candidate (Ashutosh Pandey)
  3. 3. AcknowledgementIn the completion of this project report, I have received encouragement and support fromvarious quarters, which need special mention.I wish to acknowledge my indebtedness to Mrs. Esha Bathla, Institute of Management &Technology, Kashipur, under whom this work has been completed, for extending all possiblecooperation.I am also thankful to all those people of Institute of Management & Technology, who helpedme directly or indirectly during this period.MERE ACKNOWLEDGEMENT MAY NOT REDEEM THE D EBT I OWE TO MYPARENTS FOR THEIR DI RECT/INDIRECT SUPPORT DURING THE ENTIRE COURSEOF THIS PROJECT. ASHUTOSH PANDEY
  4. 4. TABLE OF CONTENTS Title1. Chapter I Acknowledgement Profile of the Project Guide Executive Summary2. Chapter II Company profile Scope & Objective3. Chapter III Research methodology4. Chapter IV Performance management5. Chapter V Data analysis6. Chapter VI Findings7. Chapter VII Recommendations8. Chapter VIII Limitations9. Chapter IX Bibliography10. Chapter X Appendix
  5. 5. INTRODUCTIONPERFORMANCE APPRAISALPerformance appraisal may be defined as a structured formal interaction between a subordinateand supervisor, that usually takes the form of a periodic interview (annual or semi-annual), inwhich the work performance of the subordinate is examined and discussed, with a view toidentifying weaknesses and strengths as well as opportunities for improvement and skillsdevelopment. Performance appraisal, also known as employee appraisal, is a method by whichthe job performance of an employee is evaluated (generally in terms of quality, quantity, cost andtime). Performance appraisal is a part of career development.Performance appraisals are regular reviews of employee performance within organizations.Generally, the aims of a performance appraisal are to: Give feedback on performance to employees. Identify employee training needs.
  6. 6. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions: salary increases, promotions, disciplinaryactions, etc. Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administrationValidate selection techniques and human resource policies to meet federal Equal EmploymentOpportunity requirements.Performance Appraisal SummaryPerformance appraisal, while enabling a manager to identify the training needs of employees,and evolving a training plan for them, also, serves to meet other objectives. Performanceappraisal satisfies the psychological needs individuals have to know how they are performingtheir job and increases employees job satisfaction and morale by letting them know that themanager is interested in their progress and development. Systematic performance appraisal alsoprovides both the firm and the employee a careful evaluation, rather than a snap judgement of anemployees performance. Many firms use performance appraisals to plan placements andtransfers and to provide input into decisions regarding salary increases, promotions, andtransfers. Finally, performance appraisals may be used as a basis for the coaching andcounselling of individual employees by their superiors. To summarize the uses of performanceappraisal: Performance improvement Compensation Placement Training & development needs assessment Career planning Job design error detectionCHARACTERISTICS OF AN APPRAISAL SYSTEM
  7. 7. Performance appraisal cannot be implemented successfully unless it is accepted by allconcerned. There should be a common and clear understanding of the distinction betweenevaluation and appraisal. As Patten (1982) argues, evaluation aims at objective measurement,while appraisal includes both objective and subjective assessment of how well an employee hasperformed during the period under review. Thus performance appraisal aims at feedback,development and assessment. The process of performance appraisal should concentrate on thejob of an employee, the environment of the organization, and the employee him- or herself.These three factors are inter-related and inter-dependent. Therefore, in order to be effective, theappraisal system should be individualized, subjective, qualitative and oriented towards problem-solving. It should be based on clearly specified and measurable standards and indicators ofperformance. Since what is being appraised is performance and not personality, personality traitswhich are not relevant to job performance should be excluded from the appraisal framework.Some of the important considerations in designing a performance appraisal system are: Goal The job description and the performance goals should be structured, mutually decidedand accepted by both management and employees. Reliable and consistent Appraisal should include both objective and subjective ratings toproduce reliable and consistent measurement of performance. Practical and simple format The appraisal format should be practical, simple and aim atfulfilling its basic functions. Long and complicated formats are time consuming, difficult tounderstand, and do not elicit much useful information. Regular and routine While an appraisal system is expected to be formal in a structuredmanner, informal contacts and interactions can also be used for providing feedback toemployees. Participatory and open An effective appraisal system should necessarily involve theemployees participation, usually through an appraisal interview with the supervisor, forfeedback and future planning. During this interview, past performance should be discussedfrankly and future goals established. A strategy for accomplishing these goals as well as for
  8. 8. improving future performance should be evolved jointly by the supervisor and the employeebeing appraised. Such participation imparts a feeling of involvement and creates a sense ofbelonging. Rewards Rewards - both positive and negative - should be part of the performance appraisalsystem. Otherwise, the process lacks impact. Feedback should be timely Unless feedback is timely, it loses its utility and may have onlylimited influence on performance.Impersonal feedback Feedback must be impersonal if it is to have the desired effect. Personalfeedback is usually rejected with contempt, and eventually de-motivates the employee. Feedback must be noticeable The staff member being appraised must be made aware of theinformation used in the appraisal process. An open appraisal process creates credibility. Relevance and responsiveness Planning and appraisal of performance and consequentrewards or punishments should be oriented towards the objectives of the programme in which theemployee has been assigned a role. For example, if the objectives of a programme are directedtowards a particular client group, then the appraisal system has to be designed with thatorientation. Commitment Responsibility for the appraisal system should be located at a senior level inthe organization so as to ensure commitment and involvement throughout the managementhierarchy.WHAT IS THE ROLE OF PERFORMANCE APPRAISAL?Weve seen from previous discussions, that people are one of a companys most valuable assets.While most assets depreciate over time, people, viewed as assets, may actually appreciate. Oneof the managers major responsibilities is to improve and update the knowledge and skills ofemployees -- appreciation of assets. Performance appraisal plays a significant role as a tool andtechnique of organizational development and growth. In essence, effective appraisal systemsprovide both evaluation and feedback.The main aim of the evaluation is to identify performance
  9. 9. gaps -- when performance does not meet the organizational standards -- whereas feedback isnecessary to inform employee about those performance gaps.From the employees perspective, performance appraisal informs them about what is required ofthem in order to do their jobs, it tells them how well they have achieved those objectives andhelps them take corrective action to improve their performance, and, finally, it may reward themfor meeting the required standards.The firm, on the other hand, needs a performance appraisal system in order to establishprinciples of managerial accountability. Clearly, where employees are given responsibilities andduties, they need to be held accountable. One of the functions of performance appraisals is toensure that people are accountable for their organizational responsibilities.Perhaps the most significant benefit of performance appraisals is the opportunities they providesupervisors and subordinates to have one-on-one discussions of important work issues. Duringappraisals, subordinates and supervisors can focus on work activities and goals, identify andcorrect existing problems, and encourage better future performance.Performance Appraisal and MotivationMotivational research has recognized the power of recognition as an incentive (see Maslow andthe Expectancy Theory of Motivation). Performance appraisals provide employees withrecognition for their work efforts. The appraisal system provides the supervisor with anopportunity to indicate to employees that the organization is interested in their performance anddevelopment. This recognition can have a positive motivational influence. on the individualssense of worth, commitment and belonging.Performance Appraisal and Training and DevelopmentPerformance appraisals identify performance gaps. As such, they provide an excellentopportunity for a supervisor and subordinate to recognize and agree upon individual training anddevelopment needs. Performance appraisal discussion may identify the presence or absence ofwork skills. Further, the need for training can be made more relevant if attaining the requisite job
  10. 10. skills is clearly linked to performance outcomes. Consolidated appraisal data can also help forma picture of the overall organizational training requirements.Performance Appraisal and RecruitmentRecruitment and selection procedures need to be evaluated. Appraisal data can be used tomonitor the success of a firms recruitment and selection practices. From this data, the firm candetermine how well employees who were hired in the past are performing.Performance Appraisal and Employee EvaluationEmployee evaluation is a major objective of performance appraisal. Given the major functions ofmanagement -- planning, organizing, leading and controlling -- it is clear that evaluations(controlling) need to be done.At its most basic level, performance appraisal is the process of examining and evaluating theperformance of employees. However, the need to evaluate is also a source of tension asevaluative and developmental priorities appear to clash. Some management experts have arguedthat appraisal cannot serve the needs of evaluation and development at the same time.Performance Appraisal and Total Quality Management (TQM)With the advent of TQM (Total Quality Management) and the extensive use of teams, traditionalperformance appraisal systems have come under some criticism. For example, rather thanmotivating employees, conflict may be created when appraisals are tied to merit pay and whenthat merit pay is based on a forced ranking.W. Edwards Deming, the founder of total quality management (TQM) has long been associatedwith the view that performance appraisals ought to be eliminated. Many TQM proponents claimthat performance appraisals are harmful.
  12. 12. PERFORMANCE APPRAISAL METHODS1. Graphic rating scale2. Paired Comparison3. Forced choice approach4.Easy Appraisal5.3600 appraisalGraphic Rating Scale: A performance appraisal that rates the degree to which the employeehas achieved various characteristics.1)The graphic rating scale is the most common type of appraisal used.2)Various characteristics such as job knowledge or punctuality are rated by the degree ofachievement.3)The rate usually receives a score of 1 to 5, with 5 representing excellent performance.4)Some forms allow for additional comments.Paired-comparison Approach: A performance appraisal that measures the relativeperformance of employees in a group.1)This is a method of performance evaluation that results in a rank ordering of employees tocome up with a best employee.2)This type of approach measures the relative performance of employees in a group.Forced-choice Approach: A performance appraisal that presents the appraiser with sets ofstatements describing employee behavior; the appraiser must choose which statement is mostcharacteristic of the employee and which is least characteristic.Easy Appraisal: Sometimes the supervisor must write a description of the employee‟sperformance. The easy appraisal is often used along with other types of appraisals, notably
  13. 13. graphic rating scales. They provide an opportunity for supervisors to describe aspects ofperformance not thoroughly covered by an appraisal questionnaire.360-degree Performance Appraisal: Evaluating Employees From All AnglesTraditional performance appraisals, as discussed above, can be both subjective and simplistic.At times, they can also be deemed to be "political". In an attempt to improve this methodology,some companies have turned to 360-degree appraisals. 360 appraisals pool feedback from adepartments internal and external customers to ensure a broader, more accurate perspective of anemployees performance.360-degree performance appraisal is an attempt to answer the question: "How can a supervisorevaluate an employee he or she sees only a few hours each week?"Benefits of Performance appraisalFor the organization:The organization comes to know the true position of the employees working capacities and theproblems they face while working in the organization. This performance appraisal system alsoacts as a motivating factor for the employees, which helps the organization to get better results.For the appraise:The appraise fells themselves an important part of the organization, they get a chance to expresstheir views in front of their superiors; they get a platform to express their ideas. The employeecomes to know the truth about: To what extent they have achieved their objectives. In what respect their work has been most successful. Are there any aspects of their work, which they have not completed?Are many other question, which make them assess rightly. ..Guidelines for effective performance evaluation interviews...
  14. 14. emphasize positive aspects of employee performance tell employee that the purpose is to improve performance, not to discipline conduct the review in private review the performance formally at least annually (more frequently for those performingpoorly) make criticisms specific focus on performance, not personality stay calm; do not argue identify specific actions the employee can take to improve performance emphasize the evaluator‟s willingness to assist the employee‟s efforts to improveperformance end by stressing positiveAppraisal ProcessIn order to obtain a better understanding of how the performance appraisal has been put togetherby The Corporation, the researcher has provided an overview of the company‟s performanceappraisal process. The researcher felt that the overview of the performance appraisal processwould be necessary, since the process provided a framework for the performance appraisal.PRE-APPRASIAL STEPSThe performance evaluation can be made for variety of reasons counseling, promotions, salaryincreases, administration or combination of these. It becomes very necessary to begin by statingthe objectives of evaluation programs very clearly and precisely. The personal appraisal systemshould address the question who, what, how of performance appraisal.These questions are the components of these appraisal systems which are discussed belowindividually.“WHO “OF THE APPRAISAL OR „‟WHO‟‟ IS TO RATE.The immediate superior, the head of the department or any other can rate the performance of anindividual. In addition to this, sum organizations follow the system of self appraisal and /or
  15. 15. appraisal by peers. A group, consisting of his senior, peers and subordinates, can do appraisal,whoever is rating; he should be trained and impartial. In most of the organizations the ratings isdone by his immediate superior who is considered the best person to understand his subordinatesstrengths and weaknesses. Now a day some organizations are following the method of self-appraisal.THE “WHAT”OF APPRAISAL It is considered with Creating and maintaining a satisfactory level of performance of employees in their presentjob. Highlighting employee‟s needs and opportunities of for personal growth and development. Aiding in decision making for promotions, transfers, layoff and discharges. Promoting understanding between supervisors and his subordinates. Providing a useful criterion for determining the validity of selections and training methodsfor attracting individuals of higher caliber to the organization.THE „WHEN‟ OF APPRAISALThe „when‟ answers the query the frequency of appraisal? The informal counseling shouldoccur continuously but the manager should discuss an employee‟s work as soon as he gets anopportunity to provide positive reinforcement and use poor work as basis of training. The timeand period of appraisal differs according to the need and nature of the organization.THE „WHERE‟ OF APPRAISAL The where indicates the location where employee should be evaluated? It is usually done atwork place or office of the supervisor.THE „HOW‟ OF APPRAISALUnder this, the organization must decide what different kinds of methods are available and whichof these may be used for performance appraisal. On the basis of comparative advantages anddisadvantages, the nature and philosophy of management and the needs of an organization; themethod of appraisal is decided.
  16. 16. COMPANY PROFILEJindal Brothers Pvt. Ltd. specializes in Design, Engineering, Fabrication and Erection of Pre-Engineered Metal Building Systems. The Group is well known in the Middle East & India forthe quality of the products and services offered. In 1998, Jindal Brothers Pvt. Ltd started itsjourney in India by setting up State of Art manufacturing facility at Manesar, Gurgaon. Designand Detailing work is carried out by highly skilled Engineers with computed aided design anddrafting facilities at the Company‟s Head Office at New Delhi. Their objective is to deliver costeffective, quality Pre-Engineered Metal Buildings within agreed time schedules to theirCustomers. Jindal Brothers Pvt. Ltd. maintains high degree of professionalism at all levels, acommitment needed to maintain highest possible standards. Every project is executed withMicro Planning, to achieve the Milestones set out in the contract. This combined with quality oftheir products has earned us reputation in the Market Place. Corporate giants, both National andMultinational, have complimented their strategy of providing single point responsibility forSupply and Erection with highly motivated and trained In House Project Management Team tohandle projects, whether it is small or big, simple or complex. More than 500 Pre-EngineeredBuildings have been installed across the length and breadth of their Country. This experiencecorroborates their claim. Regional / Area offices across the Country are fully equipped to providepre-order and post order service to their valued Customers. Organizational effectiveness dependsupon the level of performance of its employees. Hence the level of performance has to beensured. Periodic stock taking of the qualitative state of the man power is of vital importance toan organization and the organization tries to collect the relevant data through the tool ofperformance appraisal reports. Thus performance appraisal is essential for performanceeffectiveness and efficiency of the organization and also for carrying out administrative decisionsregarding human resources. The correctness of the decision will depend heavily upon the validityof the data gathered through appraisal system.The JINDAL BROTHERS is a relatively an older organization and has been restructuring itsHuman Resources Systems and Policies in alignment with the current business environment. Ihave therefore taken up this project with an aim to study the existing system of performanceappraisal so that this might help other organizations to follow the same.
  17. 17. ServicesPre-Engineered steel buildings are designed and fabricated to client‟s requirements in accordancewith the Universal standards. A pre-engineered steel building consists of four major groups ofcomponents namely primary members, secondary members, metal roofing/wall cladding andconnection fasteners. These components are designed that they are compatible with each other.The fabrication of these components is carried out in factory under strict quality control as perdetailed shop drawing. These components are transported to site with proper markings andassembled at site as per erection drawings.Knowledge Hub / Brain WareThey call this the knowledge Hub, a world class Design & Engineering Office manned withteam of experienced professionals and equipped with latest sophisticated design tools whichdistinguishes Jindal Brothers Pvt. Ltd. from others.Stadd Pro, MBS, AUTOCAD, Primavera, MS Projects are among the few Engineering &execution tools in use at Jindal Brothers Pvt. Ltd. that delivers the fastest solution at the best ofengineering practices applied in a true international design environment.The Brain House offers intelligent engineering solutions and supports post order functions withgeneral arrangement, fabrication and erection drawings. The computerized drafting, detailing andlogic programs enable user friendly details to simplify manufacturing process and erectionmethods.The Jindal Brothers Pvt. Ltd. knowledge archives has vanity of standards and design codes suchas AISC, AISI, MBMA, AWS, UBC, ASCE, IBC, IS and many others to suit customer‟s need ofa Pre-Engineered building at any place or country.The Jindal Brothers Pvt. Ltd.‟s consistent efforts in research & development and global sourcingof material have positioned the Organization as a lead runner in introducing innovative ideas andproducts in the market place.
  18. 18. Manufacturing Facility: Their State-of-the-art manufacturing facility is located at Manesar. It houses special equipments to produce quality pre-engineered buildings such as: Automatic Beam Welding Line Plate Shearing Line Radial Drilling Machine Cold Roll Forming Line Hydraulic Press Break Line Automatic Shot Blasting Line The welding process is as per American Welding Society Standards. (AWS). All welders are qualified to required standards. Well defined process on the shop floor ensures smooth flow of material and productivity. All structural components to complete Pre-engineered building are produced in-house and go through stringent quality checks prior to dispatch. All major raw materials and bought out items are sourced from a Panel of approved supplier to ensure quality and timely supplies. Automatic Purlin Roll Roofing Profile Welding Forming Line Machine Machine
  19. 19. JINDAL BROTHERS India Projects:::Location ClientWashim ITC Grain Godown Cafeteria Dept. StoreBawal YKK (SMCC Construction)Jagdishpur ITC Grain Godown CafeteriaVatva , Ahmedabad MIDCO Containers Pvt. LtdDelhi Giex FoodsPune S.M. Auto Eng.Mandsour ITC Grain Godown
  20. 20. Cafeteria Dept. StoreAmaravati ITC Dept. StoreGurgaon SMCCChandouli ITCDaman EnerconDelhi Food Processing EquipmentBhuj Essar ConstructionDelhi Jindal StainlessDelhi Honda SielSri Perumbudur Saint-gobainFaridabad Tata Iron And Steel Co.Gurgaon Smcc - KienfieGurgaon Smcc - KinzokuKanpur Hargovind BajajAurangabad Gran Electronics
  21. 21. Chennai Ameco InfrastructureDelhi Manmohan PipesDaman Blossom Industries GreenPly IndustriesGurgaon SMCC – HondaGurgaon SMCC – HondaHyderabad HBL NifeChenani Meredian Apparel
  22. 22. PERFORMANCE APPRAISAL AT JINDAL BROTHERSWhile on the job, performance reviews of every employee are done every quarter. The reviewsare done with a view to helping the individual excel at his/her workplace. In case there are anytraining requirements, these are noted and acted upon in the coming quarter. Also, the goals andobjectives for the employee are re-visited forThe performance appraisal mechanism is carried out at Jindal Brothers for promotional purposesThese are done so as to motivate the employee and improve his performance level. The methodis as follows:a) Establishment of performance standards with the employeesb) The goals are set mutually as per measurable standards.c) The actual performance is hence measured.d) After measuring of the actual performance, the same is compared with the standards sete) The appraisal is then discussed with the employees.f) And finally, if need arises corrective action is initiated. For this purpose the corrective action is actually identified through brainstorming exercises initiated by the departmental heads at all the Jindal Brothers. It is then measured as a tool to evaluate the past performances of the employees. Some of the methods used at Jindal Brothers are:1. Key Performance Index2. 360 Degree Feedback3. Paired Comparisons4. Behaviorally Anchored Rating Scale
  23. 23. 1. KPI-Key Performance IndexIt is based on the performance level of the employee generally classified on the basis of: Targets achieved Ratings through students‟ feedback forms Punctuality and regularity Day to day performanceThis is given after every module at the centers.Thus we can observe that the appraisal system is not a biased one but based on performance andproductivity basis. All the respective heads of the employee together with the senior persons atthe center brainstorm and then give the promotion.2. 360 Degree FeedbackThis feedback system involves the participation of Top Management.Thus the feedback given by these members at Jindal Brothers is considered under a holistic viewand then the employee is given a performance appraisal. This evaluation method involves 40%feedback from the coworkers which says that the employee should not only maintain goodrapport with the senior or junior but majorly with the coworkers also.3. Paired ComparisonsThe evaluator compares all possible pairs of subordinates on their overall ability to do the job.Due to the subjectivity of evaluating overall performance some managers me e a number ofdifferent job related dimensions when comparing.
  24. 24. 4. Behaviorally Anchored Rating Scale (BARS)It is a sophisticated method of evaluating the employee based on the employee behavior. It is anumerical scale that is anchored by the seniors of the organization at various centers. This ishighly confidential and the information is sent in sealed envelopes and opened only at the time ofthe final evaluation. There is no further discussion regarding this scaling, thus it is not givenenough weightage. OBJECTIVES OF THE STUDY To identify the technique of Performance Appraisal followed in Jindal Brothers Pvt. Ltd. To study how the employees are rated against these parameters To identify how the performance of the employees is improved and enhanced To provide suggestions & recommendations to improve their Performance Appraisal
  25. 25. RESEARCH METHODOLOGYIn order to accomplish the objectives of the study, it is essential to articulate the manner in whichit is to be conducted, i.e., the research process is to be carried-out in a certain framework. Theresearch methodology, which follows, is the backbone of the study.Data Collection SourcesResearch work was done from two sources: -(1) Primary data(2) Secondary dataPrimary data was collected by questionnaire and interview in the organizations. Thequestionnaire comprised of closed and attitude questions. The opinion on existing PerformanceAppraisal practices and their affectivity were collected through questionnaire which wascirculated to all the employees at all levels and the results have been analysed on the basis ofagree and disagree. The methodology for collection of data also included interviews anddiscussion with the top management of the organization.Secondary data: It was collected by reviewing different literatures, from published books,management journals, articles published by the other researchers on 360 Degree Appraisal.Sampling:The total sample size for this project was 4 HR people at Jindal Brothers.The information collected through above methods has been tabulated, analysed and interpreted.Finally an overall assessment of the contribution of top management has been made towardsimproving the effectiveness of the organization.
  26. 26. TYPES OF RESEARCHResearch methodology is a way to systematic solve the Research Problem. It is a procedure,which is followed step by step to solve a particular research problem.There are basically four types of researches: 1 EXPLORATIVE RESEARCH 2 DESCRIPTIVE RESEARCH 3 DIAGNOSTIC RESEARCH 4 HYPOTHESIS TESTING RESEARCHExplorative Research:- To gain familiarity with phenomenon or to achieve an insight into it.Descriptive Research:-To poetry accurately the characteristics of the particular individualsituation or a group.Diagnostic Research:-To determine the frequency with which something occurs or with whichit is associated with something else.Hypothesis Testing Research:-To test a hypothesis of casual relationship between variables.The present project is Descriptive cum Explorative in nature. It is done to poetry accuratelythe characteristics of a particular individual situation or a group. The major purpose of thedescriptive research is the description of the state of the affairs as it exits at resent. The maincharacteristics of this method are that the researcher has no control over the variables; he canonly report what has happened or what is happening.
  27. 27. LITERATURE REVIEWOrganizations exist to achieve goals. Goals are only met when individual employees effortsmatches with policy of the organization and thus bringing out success and effectiveness. Theassessment of how successful employees have been at meeting their individual goals thereforebecomes a critical part of HRM and here comes Performance Appraisal System.Performance appraisal is an important component of the information and control system. Intoday‟s flexible organizations, performance evaluation provides an important way for managersto clarify performance goals and standards and to enhance future individual performance. Thusthe purpose of performance appraisal is to improve the organization‟s performance through theenhanced performance of individuals.The performance appraisal system: Is an organizational necessity Is based on well defined objective criteria Is based on careful job analysis Uses only job related criteria Is supported by adequate studies Is applied by trained qualified raters Is applied objectively throughout the organization Can be shown non discriminatory as defined by lawPERFORMANCE APPRAISAL AND MANAGEMENT,Journal of Performance Appraisal Techniques November 4,2001-Vol.1,No.4pp.418 ByFletcher CPerformance appraisal has widened as a concept and as a set of practices and in the form ofperformance management has become part of a more strategic approach to integrating HRactivities and business policies. As a result of this, the research on the subject has moved beyondthe limited confines of measurement issues and accuracy of performance ratings and has begunto focus more of social and motivational aspects of appraisal. This article identifies and discusses
  28. 28. a number of themes and trends that together make up the developing research agenda for thisfield. It breaks these down in terms of the nature of appraisal and the context in which itoperates. The former is considered in terms of contemporary thinking on the content of appraisal(contextual performance, goal orientation and self awareness) and the process of appraisal(appraiser–appraisee interaction, and multi-source feedback). The discussion of the context ofappraisal concentrates on cultural differences and the impact of new technology.Performance Appraisal as Effective Management or Deadly Management DiseaseJournal of Performance Appraisal Management Jan1,2005- Vol.80, Pages18 by Gregory H.Dobbins Understanding person and system sources of work variation is fundamental to performanceappraisal. Two divergent perspectives on this issue, the traditional human resource managementview and the statistical process control view (Deming, 1986), are contrasted. Two studies arereported that investigate two specific questions that arise from a broader view of the appraisalprocess. Results indicate that managers and subordinates believe that typical poor performancehas different causes and that actual productivity levels far outweigh person or system sources ofperformance variance in appraisal judgments.A Contingency Approach to Appraisal SatisfactionJournal of Performance Appraisal Approaches,July2009,Vol.49,Pages65 by Gregory H.DobbinsThe present study explored the moderating effects of organizational variables on the appraisalcharacteristic-appraisal satisfaction relationship. Analyses indicated that the appraisalcharacteristics of action plans, frequency, and rater training were more positively related toappraisal satisfaction when subordinates experienced role conflict, were not closely monitored,and supervisors had a large span of control. The results provide substantial support forconceptualizing appraisal satisfaction as a contingent function of both appraisal characteristicsand organizational variables. Implications of the findings for the design of appraisal systems,appraisal effectiveness, and future research are discussed.Differential Performance Appraisal CriteriaJournal of Performance Appraisal Criteria,Oct2010,Vol.18, pages 72 by Taylor CoxPerformance appraisal ratings of 125 first-level managers were analyzed to investigate the degreeto which the criteria used to evaluate the overall job performance of black managers differs fromthat used to evaluate white managers. The performance appraisal form included items thatmeasured both the social behavior dimension and task/goal accomplishment dimension of job
  29. 29. performance. The appraisal ratings of both groups on each dimension were correlated withmeasures of overall job performance and promote ability. Results indicated that social behaviorfactors are more highly correlated with the overall job performance of black ratees than for whiteratees. Implications of these results for both black managers and organizations are discussed.A Restatement of the SatisfactionJournal of Performance Hypothesis,Vol.59,Sept 2010,Pages 45 by Dennis W. Organ,This article reviews recent evidence in support of Organ‟s (1977) argument that satisfaction moregenerally correlates with organizational prosaically or citizenship-type behaviors than withtraditional productivity or in-role performance. An attempt is then made to interpret just what it isin satisfaction measures that provides this correlation, leading to the suggestion that fairnesscognitions comprise the major factor. Implications of this interpretation for theory, research, andmanagement practice are offered. ANALYSIS & INTERPRETATIONThis chapter deals in tabular presentation results and their analysis for the purpose of easyreading the section has been divided into two parts.* Tabular form of Response* Inference* Remarks on each question
  30. 30. 1. In your company, the key competencies required for each job are already identified? Response Category No. of responses PercentageVery true 0 0True 4 8Partly true 9 18Not true 37 74 80 70 60 50 Very true 40 30 True 20 Partly true 10 0 Not true No. of responses Inference: Most of the respondents (74%) found the above statement to be „Not True”. This was followed by 18% of the respondents feeling that this statement was „Partly True‟ for their organization. Only 8% of the people found it to be „True‟. Remarks: Although the appraise does not have a clear understanding of what is expected of him at the beginning of the year (Inference I), both he and the appraiser know what his job is all about. This also shows that although an employee knows what his current to do to be rated higher by the reporting officer. The responsiveness in category of Partly True and Not True may be due to the face that job content in Jindal Brothers is flexible and not well defined and some people find it difficult to define their jobs. However, most of the people have a general idea of the scope of their jobs.
  31. 31. 2. There are mechanisms that help employees develop their potential for the next round of job? Response Category No. of responses PercentageVery true 0 0True 5 10Partly true 25 50Not true 20 40 50 45 40 35 30 Very true 25 20 True 15 10 Partly true 5 0 Not true No. of responses Inference: Quite a large number of respondents (40%) shared the view that the appraisal system did not give a clear understanding of all appraisals, job to both appraiser and appraise by saying that it was „Not True‟. Only 50% and 10% of the respondents felt that the statement was „True‟ and „Partly True‟ respectively. Remarks: Although the appraise does not have a clear understanding of what is expected of him at the beginning of the year (Inference I), both appraise and the appraiser know what his job is all about. This also shows that although an employee knows what his current to do to be rated higher by the reporting officer. The responsiveness in category of Partly True and Not True may be due to the face that job content in Jindal Brothers is flexible and not well defined and most people find it difficult to define their jobs. However, most of the people have a vague idea of the scope of their jobs.
  32. 32. 3. Employees regularly receive feedback about their potential for higher level jobs? Response Category No. of responses PercentageVery true 0 0True 8 16Partly true 7 14Not true 35 70 70 60 50 40 Very true 30 True 20 Partly true 10 0 Not true No. of responses Inference: 70% of the respondents agreed that the appraisal system did not helped them to know their potential to perform at higher levels. Plan their performance well by saying that it was „Not True‟. Only 16% and 14% people felt that this statement was „True‟ and „Partly True‟. Remarks: The above inference shows that the PA system in Jindal Brothers does not give feedback about „planning for performance‟ to its employees. It helps anticipating work needs in order to arrange work in logical order. It also helps in devising efficient methods to attain pre- determined plans. Again due to flexibility in job content, some people may have found problems in planning their performance systematically.
  33. 33. 4. Job rotation is practiced widely to help people develop their potential in new areas? Response Category No. of responses PercentageVery true 7 14True 18 36Partly true 25 50Not true 0 0 50 45 40 35 30 Very true 25 20 True 15 10 Partly true 5 0 Not true No. of responses Inference: About 50% of the respondents felt that the above statement was „Partly True‟. It was followed by 36% people feeling that it was „True‟ with 14% believing that it was „Very True‟. Remarks: Job rotation is the most economical way of providing training to the employees. It facilitates both organization and individual development. Job rotation gives an individual hand on experience for carrying out various different functional activities. The performance appraisal system should include this process in the training need identification performance.
  34. 34. 5. The appraisal system provides an opportunity for self-review and reflection? Response Category No. of Responses PercentageVery true 0 0True 0 0Partly true 13 26Not true 37 74 80 70 60 50 Very true 40 30 True 20 Partly true 10 0 Not true No. of ResponsesInference : There is a general agreement on then fact that the PA system in Jindal Brothers does provide ample opportunity for self-review and reflection. 74% of the people felt that it was „Partly True‟ with 26% agreeing.Remarks : The presence of self-appraisal procedure in the PA appraisal system is an important reason for the above inference. The self appraisal includes questions on major achievements, constraints in performance, type of training required, tasks/activities undertaken successfully during the year, problems faced etc. It also includes suggestions on making the job interesting and challenging and plans to improve effectiveness. Due to this fact, employees may have felt that they were participating actively in their own appraisal by self -review and reflection on various issues.
  35. 35. 6. Promotions are based strictly on need rather than to reward individuals? Response Category No. of Responses PercentageVery true 0 0True 4 8Partly true 25 50 21 42Not true 50 45 40 35 30 Very true 25 20 True 15 10 Partly true 5 0 Not true No. of ResponsesInference : 50% of the respondents believe that the above statement is „Partly True‟ This was closely followed by 42% of the respondents rating it as „Not True‟ and 8% of the respondents feeling that it was „True‟.Remarks : The performance appraisal is completely need based the organization recognizes and promotes high achievers only if there are vacancies available in the organization. This has a negative impact on people who are not rewarded and promoted duly for their good performance. There should be a system of rewarding employees either in monetary terms or in terms of recognition.
  36. 36. 7. The appraisal system gives each appraisee an idea of what is expected of him next year? Response Category No. of Responses PercentageVery true 0 0True 10 20Partly true 26 52 14 28Not true 60 50 40 Very true 30 True 20 10 Partly true 0 Not true No. of ResponsesInference : 52% of the respondents felt that the above statement was „Partly True‟. This was followed by 28% and 20% of the respondents feeling that it was „Not True‟ and „True‟ respectively.Remarks : Each employee needs to have an idea as to what accountabilities will he have if his appraisal is given a good remark for working at higher levels. The appraisee should know his potential, which will go a long way in his higher level jobs.
  37. 37. 8. It is designed to aid the appraisee and appraiser jointly understand the formers job? Response Category No. of Responses PercentageVery true 0 0True 14 28Partly true 22 44 14 28Not true 45 40 35 30 25 Very true 20 True 15 10 Partly true 5 0 Not true No. of ResponsesInference : There was a mixed response to the given statement. 44% of the responses consisted of “Partly True‟ ratings. 28% respondents believed that this was „Not True‟ whereas 28% believed that this was „True‟.Remarks : The above inference implies that Jindal Brother‟s PA system does not score well in the aspect of transparency in communicating an employee‟s performance through performance review and discussion. The discussions between appraisal processes. The interaction on self appraisals is not a common feature and is only done on certain occasions (exceptionally good or bad performance etc.) The presence of 44% responses as “True” may be due to good relationship and open communication shared by some of the appraiser appraise pairs.
  38. 38. 9. The performance appraisal provides an opportunity for self review and reflection? Response Category No. of Responses Percentagevery true 0 0true 2 4partly true 25 50not true 23 46 50 45 40 very true 35 30 25 true 20 15 10 5 partly true 0 No. of Responses not trueInference : Most of the respondents agreed that the appraisal system catered to their development needs (50% believed that it was “Partly True”) and it was very closely followed by 46% saying it was “Not True”. There were 4% cases, which believed that it was „True‟.Remarks : Although the inference indicates that the PA system allowed mutuality, trust and open communication between superior and subordinates, there may be chances of biases in employees while rating this statement. The answers may have varied depending on proximity etc.
  39. 39. 10. The appraisal procedure allows the appraisee to express his developmental needs? Response Category No. of Responses Percentagevery true 0 0True 8 16partly true 16 32not true 26 52 60 50 very true 40 30 True 20 10 partly true 0 No. of Responses not trueInference : The most common response on above statement was an astounding „Not True‟ with 52% people agreeing that the PA system was free of any biases. It was followed by 32% saying that it was „True‟ and 16% saying that it was „Partly True‟.Remarks : The above inference implies that people are satisfied with the PA system in Jindal Brothers and believe that it provides scope for developing their potential. This may be due to the fact that the self appraised of the appraise invites suggestions on job enrichment, training needs and steps to be taken to improve individual‟s effectiveness.
  40. 40. 11. The system has scope to correct the biases of the assessor through a super review? Response Category No. of Responses Percentagevery true 0 0true 2 4partly true 14 28not true 34 68 70 60 very true 50 40 30 true 20 10 partly true 0 No. of Responses not trueInference : 68% of the people rated the above statement as „Not True‟ 28% believed it was „Partly True‟ with 4% disagreeing by saying that it was „True‟.Remarks : A performance appraisal system, which is perceived as „bias -free‟ by its executives, is an achievement for the organization. In the PA system the reporting officer appraises a section of people whereas the reviewing officer appraises the performance of an entire department. also the reviewing officer is the immediate superior of reporting officer. Any disagreement between the assessments of an employee has to be duly discussed and recorded. Also, any noticeable difference of opinion between self appraisal and appraisal by reporting officer has to be accounted for. All the above factors help in correcting the biases,. if any, of reporting officer.
  41. 41. 12. The appraisal system provides for a frank discussion between appraiser and appraisee? Response Category No. of Responses Percentagevery true 0 0True 6 12partly true 0 0not true 44 88 90 80 70 very true 60 50 40 True 30 20 10 partly true 0 No. of Responses not trueInference: An astounding 88% rated the above statement as not true with 12% that it was true.Remarks Although, most of the people felt that there was mutuality and trust between appraiser and appraise, it may again depend on the proximity and relationship shared by an employee and his/her boss. The ratings may be based, as the employees may have felt that a negative answer may adversely affect them. The reason behind this conclusion is that a low score on extent of communication and discussion between appraisers and appraise and high score on mutuality and trust give a contradictory view.
  42. 42. 13. What kind of an appraisal system will bring out the best of an employee? Response Category No. of Responses Percentageappraisal by all superiors 10 20appraisal by immediate 5 10superiorappraisal by reference team 15 30appraisal by reference team 20 40and self. appraisal by all 40 superiors 35 30 25 appraisal by immediate 20 superior 15 10 appraisal by 5 reference team 0 No. of Responses appraisal by reference team and self.Remarks : This shows that the relationship between appraiser and appraise, in Jindal Brothers, with respect to planning the performance is quite good. The subordinate in planning his performance. The appraiser helps the appraise in testing the soundness of his goals as well as of his plans for achieving them. This implies that there is active participation of both appraiser and appraise in performance planning. The reason behind „Not True‟ answer may be due to the fact that many jobs in Jindal Brothers are not well defined and therefore an elaborate planning on them is not done.
  43. 43. FINDINGSOrganization Structure and Design 1- Jindal Brothers is a young, dynamic organization and is going strong on the stock market. 2- The company is well aware of the dynamic environment of software, it is operating and in order to keep it with the pace of the environment it believes in constant up gradation of courses. Organization structure and design of the company is such that it supports this change. 3- Jindal Brothers has a matrix kind of a structure wherein it takes the form of combination of structures. Matrix structures are adopted became there is more than one factor around which the structure can be built. 4- This matrix structure at Jindal Brothers improves the quality of decision-making where interest conflicts arise and direct contacts replaces bureaucracy 5- . This increases the motivation of the managers and development of wider involvement in strategies. Although at times the company faces high risk of dilution of priorities became e people do not know who is responsible for what. 6- An organization is a network of authority, responsibility and relationships. Different organization structure consists of different type of relationships.
  44. 44. RECOMMENDATIONS1. To improve attendance there should be rewards for those employees who attains above 95% attendance.2. There should be training sessions to improve team building.3. There should be proper training for appraisal to the employees.4. In the beginning of the year employee must know the performance standards on which his/her performance will be judged in end of year.5. More stress relieving packages should be offered to the mentally stressed staff.6. Overtime should be taken care of at time of performance appraisal, which would motivate the employees to perform better for longer hours.7. Performance appraisal should after at proper span of time .8. Performance appraisal should be done by expert person.
  45. 45. CONCLUSIONPerformance appraisal is the process of reviewing employee performance vis-à-vis the setexpectations in a realistic manner, documenting the review, and delivering the review verbally ina face-to-face meeting, to raise performance standards year over year through honest andconstructive feedback. In the process management expects to reinforce the employee‟s strengths,identify improvement areas so that one can work on them and also set stretched goals for thecoming year.Effective performance management requires a good deal of face-to-face supervisor-employeeinteraction. By knowing the subordinates, a supervisor can steer them onto a path of greaterproductivity and optimized output. It is one of the most significant and indispensable tool for anorganization as it helps in getting to know the people who work for them. provides information,which helps in taking important decisions for the development of an individual and theorganization.
  46. 46. QUESTIONNANIREI have undertaken a project on PERFORMANCE APPRAISAL SYSTEM. The information furnished by youwill help knowing the effectiveness of the present appraisal and reward system and if need be designingof a new appraisal system. The data will be kept confidential and will be used for academic purposeonly.1. In your company, the key competencies required for each job are already identified. a) Very true b) true c) Partly true d) not true2. There are mechanisms that help employees develop their potential for the next rung of job. a) very true b)true c) partly true d) not true3. Employees regularly receive feedback about their potential for higher level jobs a) very true b)true c) partly true d) not true4. Job rotation is practiced widely to help people develop their potential in new areas. a) very true b)true c) partly true d) not true5. Your company’s promotion policies are clearly defined and shared with all employees. a) very true b)true c) partly true d) not true
  47. 47. 6. Promotions are based strictly on need rather than to reward individuals? a) very true b)true c) partly true d) not true7. The appraisal system gives each appraisee an idea of what is expected of him next year? a) very true b)true c) partly true d) not true8. It is designed to aid the appraisee and appraisers jointly understand the former’s job? a) very true b)true c) partly true d) not true9. The performance appraisal provides an opportunity for self review and reflection? a) very true b)true c) partly true d) not true10. The appraisal procedure allows the appraisee to express his developmental needs? a) very true b)true c) partly true d) not true11. The system has scope to correct the biases of the assessor through a super review? a) very true b)true c) partly true d) not true
  48. 48. 12. The appraisal system provides for a frank discussion between appraiser and appraisee? a) very true b)true c) partly true d) not true13. The procedure allows for the communication of CEO‘s goal to the workforce? a) very true b)true c) partly true d) not true14. The appraisal system brings out the training needs of the employees. a) very true b)true c) partly true d) not true15. The performance appraisal system clarifies the career prospects, aspirations and intentions. a) very true b)true c) partly true d) not true16. The appraisal system provides a rational basis for salary recommendations. a) very true b)true c) partly true d) not true17. The company relates reward to your performance. a) very true b)true c) partly true d) not true
  49. 49. 18. What kind of an appraisal system will bring out the best of an employee? a) appraisal by all superiors b) appraisal by immediate superior c) appraisal by reference team c) appraisal by reference team and self.19. How do you support your subordinates?__________________________________________________________________________________________________________________________________________________________________________ ____________________________________.
  50. 50. BibliographyAswathappa K, Human Resource & Personnel Management, Tata McGraw- HillPublishing Co. Ltd., New Delhi, Sixth edition 2001Kothari C.R., Research methodology methods & techniques, Wishwa Prakasan ublishingCo. Ltd., New Delhi, Sixth edition 2001.Human Resources Management by P.SubaraoSearch engines1. .com2.