Internship report on Performance Appraisal in BMW

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Internship report on Performance Appraisal in BMW

  1. 1. 1. INTRODUCTION1.1 PERFORMANCE APPRAISAL Performance appraisal is the process of obtaining, analyzing and recordinginformation about the relative worth of an employee. The focus of the performance appraisalis measuring and improving the actual performance of the employee and also the futurepotential of the employee. Its aim is to measure what an employee does. It is a powerful tool to calibrate, refine and reward the performance of the employee.It helps to analyze his achievements and evaluate his contribution towards the achievementsof the overall organizational goals. By focusing the attention on performance, performanceappraisal goes to the heart of personnel management and reflects the managements interestin the progress of the employees. People differ in their abilities and their aptitudes. There is always some differencebetween the quality and quantity of the same work on the same job being done by twodifferent people. Therefore, performance management and performance appraisal isnecessary to understand each employees abilities, competencies and relative merit andworth for the organization. Performance appraisal rates the employees in terms of their performance.Performance appraisal takes into account the past performance of the employees and focuseson the improvement of the future performance of the employees. 1.1.1 OBJECTIVES OF PERFORMANCE APPRAISAL: • To review the performance of the employees over a given period of time. • To judge the gap between the actual and the desired performance. • To help the management in exercising organizational control. 1
  2. 2. • Helps to strengthen t h e relationship and communication between supervisor- subordinates and management-employees. • To diagnose the strengths and weaknesses of the individuals so as to identify t h e training and development needs of the future. • To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. • Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. • To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. • To reduce the grievances of the employees. If employee development is required for performance improvement then solvingthese performance problems should be straight forward with a clear understanding of rootcauses. Possible approaches include changing the work environment, better prioritization ofconflicting priorities, time off, additional training, shadow or buddy system, mentoring orcoaching, changing team environment or set objectives and soon.1.2 INDUSTRY PROFILE 1.2.1 HISTORY The first practical automobile with a Petrol engine was built by Karl Benzin, 1885 inMannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, andbegan the first production of automobiles in 1888 after Bertha Benz his wife had proved withthe first long-distance trip in August 1888 from Mannheim to Pforzheim and back that thehorseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz MemorialRoute commemorates this event. Soon after, Gottlieb Daimler and Wilhelm Mabuchi in Stuttgart in 1889 designed avehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with anengine. They are also usually credited as inventors of the first motorcycle in 1886, but EnricoBernardio of the University of Padua in 1882, patented a 0.024 horsepower one-cylinder 2
  3. 3. petrol motor fitting into his son’s tricycle making it at least a candidate for the firstautomobile, and first motorcycle. Bernardi enlarged the tricycle in 1892 to carry two adults. 1.2.2 AUTOMOTIVE INDUSTRY The automotive industry designs, develops, manufacturers, markets, and sells theworld’s motor vehicles. In 2009, more than 88 million motor vehicles, including cars andcommercial vehicles were produced worldwide. In 2009-2010, a total of 90 million new automobiles were sold worldwide: 24 millionin Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 14.4 million inLatin America, 6.4 million the Middle East and 7.4 million in Africa. The markets in NorthAmerica and Japan were stagnant, while those in South America and Asia grew strongly. Ofthe major markets, Russia, Brazil, India and China saw the most rapid growth. About 250 million vehicles are in the use in the United States. Around the world,there were about 806 million cars and light trucks on the road in 2009: they burn over 260billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly,especially in China and India. In the opinion of some, urban transport systems based aroundthe car have proved unsustainable, consuming excessive energy, affecting the health ofpopulations, and delivering a declining level of service despite increasing investments. Manyof these negative impacts fall disproportionately on those social groups who are also leastlikely to own and drive cars. The sustainable transport movement focuses on solutions tothese problems. In 2009, with rapidly rising oil prices, industries such as the automotive industry, areexperiencing combination of pricing pressures from raw material costs and changes inconsumer buying habits. The industry is also facing increasing external competition from thepublic transport sector, as consumers re-evaluate the private vehicle usage. Roughly half ofthe US’s fifty one light vehicle plants are projected to permanently close in the coming yearswith the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost thisdecade. As a result, in 2010, China became the largest automobile markets in the world. 3
  4. 4. 1.3 INTRODUCTION OF THE COMPANY BMW is an acronym for Bayerische Motoren Werke AG--or, in English, BavarianMotor Works. Whatever you call it, the German-based company is one of the worlds mostrespected automakers, renowned for crafting luxury cars and SUVs that offer superior levelsof driving enjoyment. Founded in Munich, the company began in the early 1910s as anaircraft manufacturer. BMWs current logo, designed to represent white propeller bladesagainst a blue sky, reflects these origins; its blue-and-white color scheme also referencesBavarias blue-and-white checkered flag. It wasnt until 1928 that production began on thefirst BMW automobile, the Dixi. The car proved tremendously popular, and its successhelped the manufacturer weather the Depression. BMWs best-known pre-World War IIvehicle was the Type 328 roadster, a supple two-seater that racked up over 120 victories onthe motorsport circuit between 1936 and 1940. Postwar BMW cars maintained this tradition, winning several racing, rallying and hillclimb victories. The early 1950s saw the launch of the BMW 501, a roomy, voluptuous sedanthat was M resplendent with all of the hopefulness of that era. It was soon followed by the502 which was powered by the worlds first light-alloy V8, foreshadowing BMWs ongoingcommitment to developing new technology. The best-selling BMW of that decade was theIsetta, a petite two-seat "micro car" typically powered by a 12- or 13-horsepower engine. Themid-50s also saw the debut of the limited production and breathtakingly beautiful 507 sportscar which had an alloy body and used the 502s V8 for propulsion. In the 1960s, BMW salesstrengthened significantly, thanks in part to the immense popularity of the 1500, a sportyfamily sedan. By the 1970s, BMW was establishing itself as a full-fledged car company. Itwas a pioneer for many emerging technologies, including turbo charging and advancedvehicle electronics. This was also the period when BMW of North America was establishedand consumers, who coveted both sports and luxury cars, became loyal "Bimmer" owners.The 70salso saw the birth of BMWs three-tier sport sedan range consisting of the 3 Series, 5Series and7 Series cars and the creation of its performance division. More recently, thecompany has been expanding its reach worldwide. It opened its first U.S. manufacturingplant in the latter half of the 1990s and has expanded its brand empire to include Mini and 4
  5. 5. Rolls-Royce. BMW also continues to build motorcycles, something it has done since the1920s. The automakers famous advertising slogan describes each of its vehicles as "theultimate driving machine," and its not mere hyperbole. Over the past couple of decades,BMWs have become the standard for performance and luxury in most of the "over $30,000"segments. With family-friendly wagons, crisp sedans, distinctive coupes, nimble sports carsand spacious SUVs offered, BMWs model roster is diverse. But its luxury vehicles all sharea common characteristic: the ability to make drivers feel gloriously connected to the road. 1.3.1 ORGANIZATION CHART TN-436 General Manager Human Resources Subash Chander Ganapathy TN-436 Team Assistant Bavya TN-436 TN-436 Manager Specialist Human Resources EMS, Facilities and Project R. Govardhanan M.Ramakrishnan TN-436 TN-436 Specialist Safety Facilities & Projects Sathish Naresh TN-436 Recruitment , Trainng and PMS TN-436 Saranya Facilities Balasubramaniyan TN-436 Employee Relation TN-436 Shanmugarajan Projects Damodharan TN-436 Expat Marrion TN-436 Employee Relation (EWH & Other Functions) Balakrishnan 5
  6. 6. 1.3.2 VARIOUS DEPARTMENTSASSEMBLY Starting from car body delivery from logistics to completion of entire car comesunder this department. It consists of process of assembling car parts. This includes varioussub-departments like Overhead, Door, Paint Shop, Final Flash, Finish Rework, RepairOn Wheels and Trimline.PLANT MANAGEMENT This is the finance department of the company which sources and allocates the fundsfor continuous production. All necessary goods for employees are purchased through thisdepartment. They provide the sales and expenditure details.HUMAN RESOURCE AND FACILITY This department serves as the bridge between the management and workforce.Various tasks like filing of employee records, payroll distribution, tax filing, attendance,assigning loss of pay etc. Facility department takes care of the plant maintenance. It includesinfrastructure facility like housekeeping, gardening, waste management and security etc.INFORMATION TECHNOLOGY DEPARTMENT This department takes care of network and communication facility of company. Itcontrols the inflow and outflow of data from company and outside world through computersand internet security.1.4 INTRODUCTION OF THE SUBJECT Performance appraisal may be defined as an organized formal interaction between asubordinate and supervisor, that usually takes the form of a periodic interview, in which thework performance of the subordinate is examined and discussed, for identifying weaknessesand strengths as well as opportunities for improvement and skills development (Archer 6
  7. 7. North, 2002). In other words, Performance appraisal is a formal system of measuring,evaluating, and influencing an employee’s job-related attributes, behaviors and outcomes todetermine how productive an employee is, and to determine if an employee’s productivitycan be improved (Konobear, 2002). Appraisal results are used in many organizations, either directly or indirectly, to helpidentifying the better performing employees who should get the majority of available meritpay increases, bonuses, and promotions. There are various appraisal methods are in usagetoday. Broadly, we can classify them as comparative appraisals (ranking, pairedcomparisons, and forced distribution), behavioral appraisals (graphic rating scales,checklist, critical incidents, essays, and behaviorally anchored rating scales), and outputbased appraisals. Also there are rapid appraisal methods for quick, low cost ways to gatherdata for manager’s information needs. All of the appraisal methods have been discussed and their advantages anddisadvantages are mentioned. In this paper a new appraisal method has been proposed usingthe existing methods. This new method is developed by taking the advantages of the threecommon methods including comparative, behavioral and output based. The advantages anddisadvantages of this new method are also discussed. A hierarchical structure discussed inthis paper uses all the appraisal methods accordingly at appropriate levels of the company. 1.4.1 METHODS FOR APPRAISING PERFORMANCE Performance actually can be appraised by a wide variety of methods and techniques.The most commonly used performance appraisal methods can be distinguished into threemajor categories: comparative appraisals, behavioral appraisals, and output-based appraisals. 1.4.1.1 Comparative Appraisals Managers directly compare the performance of their subordinates against one anotherin comparative appraisals. For example, a data entry operators performance would becompared with that of other data-entry operators by the computing supervisor. Comparativetechniques include ranking, paired comparisons, and forced distribution. 7
  8. 8. Ranking: In this method, the supervisor lists all subordinates in order, from the highest to thelowest in performance. Rankings such as this are appropriate only in small companies. As thenumber of employees increases, it becomes gradually more difficult to discern differences intheir performance.Paired Comparisons: The paired comparison method involves comparing each employee toevery other employee in the rating group, one at a time, to determine the better. A rank orderis obtained by counting the number of times each individual is selected as being the better ofa pair.Forced Distribution: In forced distribution, the supervisor must assign only a certainproportion of his/her subordinates to each of several categories on each evaluative factor. Acommon forced distribution scale is divided into five categories. A fixed percentage of allsubordinates in the group fall within each of these categories. Typically, the distributionfollows a normal distribution. 1.4.1.2 Behavioral Appraisals In contrast with comparative appraisals, behavioral appraisals allow supervisors toevaluate each persons performance independent of other employees but relative to importantjob-related behaviors, which when exhibited can lead to job success.Graphic Rating Scale: The graphic rating scale allows the rater to mark an employees jobperformance on a five-point or seven-point scale. This method identifies certain subjectivecharacter traits, such as pleasant personality, initiative or creativity to be used as basic jobperformance criteria. Because of its simplicity, the graphic rating scale is the most frequentlyused performance appraisal method.Checklist: The checklist uses a list of statements or words that are checked by raters. Raterscheck statements most representative of the characteristics and performance of an employee.Typical checklist statements are: can be expected to finish working time, seldom agrees towork overtime, is cooperative and helpful, accepts criticism, and strives for self-improvement. The checklist can be modified so that varying weights are assigned to the 8
  9. 9. statements or words. The results can then be quantified. Usually, the results are not known bythe rater and are tabulated by someone else, such as a member of the HR unit.Critical Incidents: In the critical incident method, the manager keeps a written record of thehighly favorable and unfavorable actions in an employees performance. When somethinghappens [a critical incident involving a particular employee] the manager writes it down.Thus, a list of critical incidents is kept during the entire rating period for each employee. Thecritical incident method can be used with other methods to document the reasons why anemployee was rated in a certain way.Essays: The essay (free-form) appraisal method requires the manager to write a short essaydescribing each employees performance during the rating period. The rater usually is given afew general headings under which to categorize comments. The intent is to allow the ratermore flexibility than other methods do. As a result, the method is often combined with othermethods.Behaviorally Anchored Rating Scales (BARS): BARS utilize critical incidents to focusappraisal on employee behaviors that can be changed. Thus, a BARS system describesexamples of good or bad behavior. These examples are anchored, or measured, against ascale of performance levels. An example of BARS that rates a university professors attitudetoward students is sited here. Construction of BARS begins with the identification ofimportant job dimensions. The dimensions are the most important performance factors in anemployees description. Assume the major job dimensions associated with teaching are:course organization, attitude toward students, fair treatment, and competence in subject area.Short statements, similar to critical incidents, are developed that describe both desirable andundesirable behaviors. Then they are retranslated or assigned to one of the job dimensions.This task is usually a group project and assignment to a dimension usually requires theagreement of 60% to 70% of the group. The group, consisting of people familiar with the job,then assigns each anchor a number, which represents how good or bad the behavior is.When numbered, these anchors are fitted to a scale. The drawbacks are: behaviorallyanchored rating scales require extensive time and effort to develop and maintain. Also, 9
  10. 10. separate BARS forms are necessary to accommodate different types of jobs in anorganization.360 Degree Appraisal system: In human resources or industrial psychology, 360-degreefeedback, also known as multi-rater feedback, multi source feedback, or multi sourceassessment, is feedback that comes from members of an employees immediate work circle.Most often, 360-degree feedback will include direct feedback from an employeessubordinates, peers, and supervisor(s), as well as a self-evaluation. It can also include, insome cases, feedback from external sources, such as customers and suppliers or otherinterested stakeholders. It may be contrasted with "upward feedback," where managers aregiven feedback only by their direct reports, or a "traditional performance appraisal," wherethe employees are most often reviewed only by their managers. 1.4.1.3 Output-based Appraisals While the methods described above focus on job behaviors or processes, output-basedappraisals focus on job products as the primary criteria. The most commonly used output-based appraisal is Management-by-Objectives (MBO). MBO specifies the performancegoals that an individual hopes to attain within an appropriate length of time. The objectivesthat each manager sets are derived from the overall goals and objectives of the organization.Implementing an MBO appraisal system comprised four basic stages.Job Review and Agreement: In the first phase the employee and the supervisor review thejob description and the key activities that comprise the employees job. The idea is to agreeon the exact makeup of the employees job.Development of Performance Standards: Specific standards of performance must bemutually developed. This phase specifies a satisfactory level of performance that is specificand measurable.Guided Objective Setting: Objectives are established by the employee in conjunction with,and guided by, the supervisor. Objectives should be realistically attainable and may bedifferent from the set performance standard. 10
  11. 11. Continuing Performance Discussions: The employee and the supervisor use the objectivesas bases for continuing discussions about the employees performance. Although a formalreview session may be scheduled, the employee and the manager do not necessarily waituntil the appointed time for performance discussion. Objectives are modified mutually, andprogress is discussed during the period. 11
  12. 12. 2. NEED, OBJECTIVE AND SCOPE OF THE STUDY2.1 NEED FOR THE STUDY Automobile has become important need of people in their fast moving life. Theseautomobile companies are expanding in greater phase in various countries especially inhighly populated countries like India, China etc. These Companies are also contributingtowards the development of economy for a long time and at the moment it is treated as animportant industry in modern world. Due to globalization and free market economy, thisindustry is facing severe competition, also it makes establishment of foreign company inother countries. Most of the automotive companies fail due to lack of proper strategicplanning and goals. One of the major reasons of their poor performance is adaptation oftraditional production system. They are very much slow in adopting new product line, lessconcerned about attracting and satisfying customers and being reluctant to implementinformation technology. That’s why it is very necessary for each and every industry toevaluate its performance over the periods.Thus the purposes of choosing the topic are, • I feel that performance appraisal of employees will result in better productivity. • For the better understanding of the concept of performance appraisal. • To provide feedback on appraisal system of the company for further improvement of the system.2.2 OBJECTIVE OF THE STUDY 2.2.1 Primary Objective: • To study the performance appraisal of employees at BMW Group Chennai. 12
  13. 13. 2.2.2 Secondary Objective: • To study the purpose of performance appraisal conducted at BMW. • To understand the opinion of employees towards performance appraisal at BMW. • To identity the effect of performance appraisal on individual and organizational development. • To understand the existing relationship between management and employees. • To identify ways to improve the existing performance appraisal system.2.3 SCOPE OF THE STUDY • The management can identify the employees opinion of the existing performance appraisal system. • The study can be used to make the present appraisal system more effective and satisfied among employees. • It could be used to identify training and development needs for the individual and the organization as a whole2.4 LIMITATIONS OF THE STUDY Production is, in fact, a huge operation and it is quite impossible to cope up all theactivities during internship period. And for that reason limitations prevail while conductingthe survey. Basic limitations faced while preparing the study were: • The Company’s policy of not disclosing some data and information for obvious reasons, which would have been very much useful for the report. • Some of the questionnaires were incomplete. • Few employees sometime felt disturbed, as they were busy in their job. • Sometimes it was difficult to collect data from their files, because important files are kept in volt for safety. • It is difficult to make information based a rich report in short time of period. • This report was prepared in short time. 13
  14. 14. 3. LITERATURE REVIEW3.1 PERFORMANCE APPRAISAL Performance appraisal is one of the most important requirements for all successfulbusiness and human resource policy (Kressler, 2003). Rewarding and promoting effectiveperformance in organization, as well as identifying ineffective performers for resourcemanagement (Pulakos, 2003). The ability to conduct performance appraisal relies on theability to assess an employees performance in a fair and accurate manner. Evaluatingemployee performance is a difficult task. Once the supervisor understands the nature of thejob and the source of information, the information needs to be collected in a systematic way,provided as feedback, and integrated into the organizations performance managementprocessor use in making compensation, job placement and training decisions and assignment(London, 2003). Performance evaluations have been conducted since the times of Aristotle (Landy,Zedeck, Cleveland, 1983). The earliest formal employee performance evaluation program isthought to have originated in the United States military establishment shortly after the birthof the republic (Lopez,1968). The measurement of an employees performance allows forrational administrative decisions at the individual employee level. It also provides for theraw data for the evaluation of the effectiveness of such personnel-system components andprocesses as recruiting policies, training programs, selection rules, promotional strategies,and reward allocations (Landy, Zedeck, Cleveland, 1983).In addition, it provides thefoundation for behaviorally based employee counseling. In the counseling setting,performance information provides the vehicle for increasing satisfaction, commitment, andmotivation of the employee. Performance measurement allows the organization to tell theemployee something about their rates of growth, their competencies, and their potentials.There is little disagreement that if well done, performance measurements and feedback canplay a valuable role in effecting the organization (Landy, Zedeck, Cleveland, 1983). 14
  15. 15. 3.2 BASIC PURPOSE Performance appraisals should focus on three objectives: performance, notpersonalities; valid, concrete, relevant issues, rather that subjective emotions and feelings;reaching agreement on what the employee is going to improve in his performance and whatyou are going to do (MeKirehy,1998). Both the supervisor and employee should recognizethat a strong relationship exists between training and performance evaluation (Barr, 1993).Each employee should be allowed to participate in periodic sessions to review performanceand clarify expectations. Both the supervisor and the employee should recognize thesesessions as constructive occasions for two-way should include opportunities for self-assessment as well as supervisor feedback. The supervisor should keep in contact with the employee to assure the trainingexperiences are producing desired impact (Barr, 1993). A portion of the process should bedevoted to an examination of potential opportunities to pursue advancement of acceptance ofmore complex responsibilities. The employee development goals should be recognized aslegitimate, and plans should be made to reach the goals through developmental experiencesor education (Barr, 1993). Encouraging development is not only a supervisorsprofessional responsibility, but it also motivates an employee to pursue additionalcommitments. In addition, the pursuit of these objectives will also improve the prospect thatcurrent employees will be qualified as candidates when positions become available. Thisapproach not only motivates current performance but also assists the recruitment of currentemployees as qualified candidates for future positions (Barr, 1993).3.3 BENEFITS OF PRODUCTIVE PERFORMANCE APPRAISALS Employee learns of his or her own strengths in addition to weaknesses. New goaland objectives are agreed upon. Employee is an active participant in the evaluationprocess. The relationship between supervisor and employees is taken to an adult-to-adultlevel. Work teams may be restructured for maximum efficiency. Employee renews his orher interest in being a part of the organization now and in the future. Training needs areidentified. Time is devoted to discussing quality of work without regard to money issues. 15
  16. 16. Supervisor becomes more comfortable in reviewing the performance of employees.Employees feel that they are taken seriously as individuals and that the supervisor is trulyconcerned about their needs and goals. (Randi, Toler, Sachs, 1992).3.4 PITFALLS TO AVOID When conducting performance appraisals on any level, it is important to keep inmind the common pitfalls to avoid.These pitfalls may include but are not limited to:1. Bias/prejudice-Race, religion, education, family background, age, and/or sex.2. Trait assessment-Too much attention to characteristics that have nothing to do with thejob is difficult to measure.3. Over-emphasis on favorable or unfavorable performance of one or two tasks whichcould lead to an unbalanced evaluation of the overall contribution.4. Relying on impressions rather than facts.5. Holding the employee responsible for the impact of factors beyond his/her control.6. Failure to provide each employee with an opportunity for advance preparation(Maddux,1993).3.5 LEGAL IMPLICATIONS Any performance appraisal system used to make employment decisions about amember of a protected class (i.e. Based on age, race, religion, gender or national origin)must be a valid system (an accurate measure of performance associated with jobrequirements. Other it can be challenged in the courts based on Title VII of the 1964, CivilRights Act, the Civil Rights Act of 1991 and the Age Discrimination in Employment Act of1975 (London, 2003). Effectiveness of performance Appraisal system it is argued is a function of applyingthe right system in right context. –By Klein; the Art of Appraisal. Performance appraisal system are "homework" that provides the information youneed in order to make appropriate administrative recommendations, hold meaningful 16
  17. 17. feedback discussions with staff members, and determined were performance improvement isrequired. - By Marion E. Haynes; Managing Performance. The effectiveness of an Appraisal System is determined by the quality ofcommunication between the manager and staff member, not by multiple raters, complexscoring methods, or the form used.-By John D. Drake; Performance Appraisal. One More Time Performance appraisal can actually be counter-productive foremployees who are in the greatest need of training and further development.-By VictorBuzzottan; improving your Performance Appraisal. One of the measure reason Performance management and Performance Appraisal failis that too much time is spent on Appraising performance using vague criteria and notenough time and effort put into helping employee understands what his job is about, and thegoals and objectives he/she is expected to achieve to be successful. Learn to do goals settingpainlessly. – By Robert Dacal; Learn to plan Performance and set employee goals. Maximizing and measuring our own performance and that of the people who workfor us is a basic tenant of the work environment. Always use of simple too land approach thatcan be beneficial in achievement performance plan.-By Zack Mansdorf; PerformanceManagement; Identifying work goals. Most managers and supervisors today are attempting to quantify their departmentalobjective and pass them on their employees through performance standards. Despite thesimplicity of this management-by-objective approach, deadlines are missed, quality isrelatively poor and productive is low. The reasons for this may not be the fault of theemployees carrying out the work. The cause is most often associated with the immediatesupervisors lack of attention to the realities surrounding objectives and performancestandards require a careful analysis of all the relevant issues. –By Gregory Isaac; Plan forperformance. Organizations striving to develop an open and participative approach have begun togive employees the chance to say what they think of their managers. Such appraisals canonly work in a culture where mangers are willing to listen and learn and effect any necessarychanges as a result. - By Madhukar Shukla; Upward Appraisal and Organizationalculture. 17
  18. 18. A tone stage performance appraisal relied mainly on personality characteristics.Subordinates were being appraised by their superior on the extent to which they exhibitedcharacteristic like, tact, willingness, enthusiasm, and maturity. Mangers were being put intoposition of psychologists and required to make subjective ratings without any point ofreference expect their own opinion. –By Bob Nelson; Performance Assessment. Performance appraisal is a part of overall performance management system of anorganization. Through the appraisal process, gap between an individuals agreed performancestandard his actual performance is assessed and appropriate strategies are drawn forsubsequent performance cycle. This is a useful performance enhancement exercise. In manyOrganizations, PMS is linked with other systems like salary &Benefits, Training &Development and Succession Planning. - By H. K. Shukla; Striates Human ResourceManagement. 18
  19. 19. 4. RESEARCH METHODOLOGY Research in common parlance refers to search for knowledge. Redman and Morydefine research as a “Systematized effort to gain new knowledge. Research is an academicactivity and such the term should be used in technical sense. According to Clifford Woody,Research comprises defining and redefining problem, formulating hypothesis or suggestedsolutions; collecting, organizing and evaluating data; making deductions and researchconclusions; and at last carefully testing the conclusions to determine whether they fit theformulating hypothesis. Research is thus an original contribution to the existing stock of knowledge makingfor its advertisement. It is pursuit of truth with the help of study, observation, comparison andexperiment. In short the search for knowledge through objective and systematic method offinding solution to problem is research.4.1 RESEARCH DESIGN A Research design is the arrangement of conditions for collection and analysis of datain a manner that aims to combine relevance to the Research purpose with economy inprocedure. In fact the Research design is the conceptual structure within which Research isconducted: it constitutes the blueprint for the collection measurement and analysis of data. It must be able to define clearly what they want to measure and must find adequatemethods for measuring it along with a clear cut definition of population wants to study. Sincethe aim is to obtain complete and accurate information in these studies, the procedure to beused must be carefully planned. The research design must make enough provision forprotection against bias and must maximize reliability with due concern for the economicalcompletion of the search study. Descriptive research is adopted for this study. It includes surveys and fact findingenquires of different kinds. The major purpose of descriptive research is description of thestate affairs as it exists at present. The main characteristic of this method is that the 19
  20. 20. researcher has no control over the variables. He can only report what has happened or what ishappened.4.2 SAMPLING DESIGN A sample design is a definite plan for obtaining a sample from the sampling frame, itrefers to the technique or procedure the researcher would adopt in selecting some samplingunits from which interferences about the population is drawn. Sampling type used is SimpleRandom sampling technique. 4.2.1 POPULATION AND SAMPLE SIZE A decision has to be taken concerning sampling unit before selecting sample. Thepopulation for this study includes the employees from three branches of BMW group. Thetotal population of BMW group is 800. 100 employees were undertaken for the study.4.3 DATA COLLECTIONSFor achieving the specific objectives of this study, data were gathered from both primary andsecondary sources. 4.3.1 Primary Sources • Direct conversation with the respective officers of the Departments. • Face to face conversation with the employees. • Employee’s opinion collected through Questions. • Observation of HR activities. 4.3.2 Secondary Sources: • Various records of the Company. • Different Types of system information. • Website of BMW Group. • Different newsletters. • Annual Performance Appraisal Form of company. • Personal files of employees. 20
  21. 21. 4.4 STATISTICALTOOLS  Chi-square test  Percentage analysis 4.4.1 CHI-SQUARE TEST The Chi-square test is an important test amongst the several tests of significancedeveloped b y statisticians. Chi-square is a statistical measure used in the context ofsampling analysis for comparing a variance to a theoretical variance. As a non-parametrictest, it can be used to determine if categorical data shows dependency or the twoclassifications are independent. The test is, in fact, a technique through the use of which it ispossible for all researchers to i. Test the goodness of fit ii. Test the significance of association between two attributes and iii. Test the homogeneity or the significance of population variance. As a test of independence, test enables us to explain whether or not two attributes areassociated. In such a situation, we proceed with the null hypothesis that the two attributes areindependent. If the calculated value is less than the tabulated value at certain degrees offreedom, the null hypothesis is accepted and vice versa. is calculated as follows: = ∑ (O-E) 2 EWhere = Chi-SquareOi = Observed FrequencyEi = Expected Frequency is always positive. 21
  22. 22. The expected value for the contingency tabulated as follows. E= (Row total*Column total) Grand totalThe test depends on the set of observed and expected values and on the degrees offreedom. The distribution is the limiting approximation designation. 4.4.2 PERCENTAGE ANALYSIS It refers to a special kind of ratio. Percentage is used in making comparisonbetween two or more series of data; percentages are used to determine relationship betweenthe series if data finding the relative differences becomes easier through percentage.It is expressed as, Percentage (%) = No. of respondents x 100 Total no. of respondents 22
  23. 23. 5. DATA ANALYSIS AND INTERPRETATION5.1 GENDER WISE CLASSIFICATION OF RESPONDENTSTABLE 5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS Gender No. of respondents Percentage (%) Male 89 89 Female 11 11 Total 100 100Source: Primary DataINTERPRETATION:From the above table, it can be inferred that 89% of the respondents are male and 11% of therespondents are female.FIGURE 5.1 GENDER WISE CLASSIFICATION OF RESPONDENTS 23
  24. 24. 5.2 AGE WISE CLASSIFICATION OF RESPONDENTSTABLE 5.2 AGE WISE CLASSIFICATION OF RESPONDENTS Age No. Of Respondents Percentage (%) 20-25Age 25 25 30-35Age 33 33 40-45Age 30 30 Above-45Age 12 12 Total 100 100Source: Primary DataINTERPRETATION:From the above table, it can be inferred that 33% of the respondents are in the age of30-35, 30% of the respondents are in the age of 40-45, 25% of the respondents are in the ageof 20-25 and 12% of the respondents are in the age above 45.FIGURE 5.2 AGE WISE CLASSIFICATION OF RESPONDENTS 24
  25. 25. 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTSTABLE 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS Experience No. Of Respondents Percentage (%) Below 5Years 28 28 5-lO Years 54 54 10-15 Years 18 18 Above15Years - - Total 100 100%Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 54% of the respondents are having 5-10yearsexperience persons, 28% of the respondents have below 5Years of experience persons, 18%of the respondents are having 10-15years of experience and no respondents have experiencemore than 15years.FIGURE 5.3 EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS 25
  26. 26. 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTSTABLE 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS Educational Qualification No. Of Respondents Percentage (%) UG degree 49 49 PG degree 19 19 Engineering 04 04 Other ITI 28 28 Total 100 100%Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 49% of the respondents are UG degree holders,28% of the respondents are some others (ITI), 19% of respondents are PG degree holdersand 4% of the respondents are engineering graduates.FIGURE 5.4 EDUCATIONAL QUALIFICATIONS OF RESPONDENTS 26
  27. 27. 5.5 FREQUENCY OF PERFORMANCE APPRAISALTABLE 5.5 FREQUENCY OF PERFORMANCE APPRAISAL Performance Appraisal No. of respondents Percentage (%) Once a Year 100 100 Twice a Year - - No Specific Time - - Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 100% of the respondents agree that performanceappraisal is conducting once a year.5.6 REASON FOR CONDUTING PERFORMANCE APPRISALTABLE 5.6 REASON FOR CONDUTING PERFORMANCE APPRISAL Performance Appraisal No. of respondents Percentage (%) ConductingTo identity motivating methods - -To decide monetary benefits - -Identifying barriers of - -performanceAll of the above 100 100Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 100% of the respondents agree that the reasonfor conducting performance appraisal includes all the factors such as to identity motivatingmethods, to decide monetary benefits and identity barriers for performance. 27
  28. 28. 5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTEDTABLE 5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED When Performance No. of respondents Percentage (%) Appraisal conductedDuring working hours 87 87During non-working hours 13 13Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that for 87% of the respondents performanceappraisal is conducted during working hours and for 13% respondents performance appraisalis conducted during non-working hours.FIGURE 5.7 DURATION OF PERFORMANCE APPRAISAL CONDUCTED 28
  29. 29. 5.8 WHO CONDUCT PERFORMANCE APPRAISALTABLE 5.8 WHO CONDUCT PERFORMANCE APPRAISAL Who Conducts No. Of Respondents Percentage (%) Performance appraisal Superior - - Peers - - Everyone - - Outsider 100 100 Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that for 100% of the respondents’ performanceappraisal is conducted by outsiders.5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSEDTABLE 5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSED Informed reason for Performance appraisal No. Of Respondents Percentage (%) conducting Always 20 20 Sometimes 77 77 Never 03 03 Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 77% of respondents feel that the reason forperformance appraisal is discussed sometimes, 20% of the respondents feel it is discussedalways and 3% of respondents say reason is never discussed. 29
  30. 30. FIGURE 5.9 REASONS FOR PERFORMANCE APPRAISAL DISCUSSED5.10 EMPLOYEE PERFORMANCES DISCUSSEDTABLE 5.10 EMPLOYEE PERFORMANCES DISCUSSED Meetings of No. Of Respondents Percentage (%) Employee performance Nil - - Once 100 100 Twice - - Thrice - - Total 100 100%Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that for 100% of the respondents meeting onperformance is conducting once a year. 30
  31. 31. 5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH ORGANIZATIONAL GOALSTABLE 5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH ORGANIZATIONAL GOALS Goals No. Of Respondents Percentage (%) To a high extent 12 12 To some extent 69 69 To a low extent 19 19 Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 69% of the respondents feel the performanceappraisal relates to some extent to organization goals, 19% feel to a low extent and12% feelto a high extent it relates.FIGURE 5.11 PERFORMANCE APPRAISAL PROGRAMS RELATED WITH ORGANIZATIONAL GOALS 31
  32. 32. 5.12 1NVOLVEMENT IN DESIGNING APPRAISAL SYSTEMTABLE 5.12 INVOLVEMENT IN DESIGNING APPRAISAL SYSTEM Opinion No. of Respondents Percentage (%) Always - - Sometimes - - Never 100 100 Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 100% of the respondents say they are neverinvolved in designing the appraisal system.5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOBTABLE 5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB S. No Relevance No. Of Respondents Percentage (%) 1 Highly relevant 87 87 2 Relevant 13 13 3 No idea - - 4 Irrelevant - - 5 Highly irrelevant - - Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 87% of the respondents feel that performanceappraisal is highly relevant to employee job and 13% feel it is relevant. 32
  33. 33. FIGURE 5.13 PERFORMANCE APPRAISAL RELEVANCE TO EMPLOYEE JOB5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERSTABLE 5.14 OPINION AND SUGGESTIONS SHARED TO MANAGERS Opinion and Suggestions No. of Respondents Percentage (%) Mostly 100 100 Rarely - - Never - - Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 100% of the respondents mostly share theiropinion and suggestions to their managers. 33
  34. 34. 5.15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORMTABLE 5.15 TRAINING OF FILL UP PERFORMANCE APPRAISAL FORM Forms No. of respondents Percentage Yes 100 100 No - - Total 100 100%Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 100% of the respondents are given training to fillthe appraisal form.5.16 APPRAISERS AWARENESS ON EMPLOYEE JOB RESPONSIBLITIES AND DUTIESTABLE 5.16 APPRAISERS AWARENESS ON EMPLOYEE JOB RESPONSIBLITIES AND DUTIES Aware No. of respondents Percentage (%) Completely Aware - - Aware to an extent - - Not Aware 100 100 Total 100 100%Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 100% of the respondents feel that the appraiseris not aware of their job responsibilities and duties. 34
  35. 35. 5.17 FEEDBACKS PROVIDED FOR PERFORMANCE IMPROVEMENTTABLE 5.17 FEEDBACKS PROVIDED FOR PERFORMANCE IMPROVEMENT Aware No. of respondents Percentage (%) Frequently 89 89 Occasionally 11 11 Never - - Total 100 100%Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 89% of the respondents feel that feedback isprovided occasionally whereas 11% feel that feedback is provided frequently.FIGURE 5.17 FEEDBACKS PROVIDED FOR PERFORMANCE IMPROVEMENT 35
  36. 36. 5.18 INVOLVEMENT OF RATERTABLE 5.18 INVOLVEMENT OF RATER Involvement No. of respondents Percentage (%) Highly involved 34 34 Less involved 40 40 Not involved 26 26 Total 100 100%Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 44% of the respondents feel the rater is lessinvolved, 34% of the respondents feel they are highly involved and 26% of the respondentsare not involved.5.19 PROPER EXECUTION OF PERFORMANCE APPRAISALTABLE 5.19 PROPER EXECUTION OF PERFORMANCE APPRAISAL Properly executed in your organization No. Of Respondents Percentage (%) Yes 78 78 No 22 22 Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 78% of the respondents feel performanceappraisal is properly executed while 22% feel it is not properly executed. 36
  37. 37. FIGURE 5.19 PROPER EXECUTION OF PERFORMANCE APPRAISAL5.20 UPDATING OF PERFORMANCE APPRAISALTABLE 5.20 UPDATING OF PERFORMANCE APPRAISAL Reviewed and updated No. Of Respondents Percentage (%) Frequently 46 46 Occasionally 54 54 Never - - Total 100 100Sources: Primary DataINTERPRETATION:From the above table, it can be inferred that 54% of the respondents feel the performanceappraisal is reviewed occasionally while 46% of respondents feel they are reviewedfrequently. 37
  38. 38. FIGURE 5.20 UPDATING OF PERFORMANCE APPRAISAL5.21 STATISTICAL ANALYSIS 5.21.1 CHI-SQUARE TESTTABLE 5.21.1 CROSS TABULATION BETWEEN THE CHANGES TAKEN FOR PERFORMANCE APPRAISAL AND IMPROVEMENT OF PERFORMANCE APPRAISAL. Improvement in Highly In Highly Effective Moderate TotalOverall effective Effective ineffectivePA Change in motivating 7 5 9 12 0 33 strategyRe-structuring oforganization 12 2 6 3 2 25or individual objectives 38
  39. 39. Improvement in Management 11 8 0 6 0 25 employment relationship Making changes in 4 1 0 4 8 17 dissatisfied areas No decision 0 0 0 0 0 0 taken Total 34 16 15 25 10 100STEP 1: SETTING AN HYPOTHESISH0: There is no significant relationship between the changes taken for performance appraisaland improvement of performance appraisal.H1: There is significant relationship between the changes taken for performance appraisaland improvement of performance appraisal.STEP 2: TO FIND THE EXPECTED FREQUENCY Expected frequency = Corresponding row total * Corresponding column total Total number of samplesSTEP 3: CALCULATION OF CHI-SQUARE VALUE Formula: =∑ (O-E) 2 EWhere = Chi-SquareOi = Observed FrequencyEi = Expected Frequency 39
  40. 40. TABLE 5.21.1.1 COMPUTATION TABLE FOR O E (O-E) (O-E)2 (O-E)2/E 7 11.22 -4.22 17.81 1.59 5 5.28 -0.28 0.08 0.01 9 4.95 4.05 16.40 3.31 12 8.25 3.75 14.01 1.70 0 3.30 -3.30 10.8 3.30 12 8.50 3.50 12.25 1.44 2 4.00 -2.00 4.00 1.00 6 3.75 2.25 5.0 1.35 3 6.25 -3.25 10.5 1.69 2 2.50 -0.50 0.25 0.10 11 8.50 2.50 6.25 0.74 8 4.00 4.00 16.00 4.00 0 3.75 -3.75 14.06 3.75 6 6.25 -0.25 0.06 0.01 0 2.50 -2.50 6.25 2.50 4 5.78 -1.78 3.11 0.55 1 2.72 -1.72 2.9 1.09 0 2.55 -2.55 6.50 2.55 4 4.25 -0.25 0.0 0.01 8 1.70 6.30 39.69 23.35 0 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 TOTAL 54.04 40
  41. 41. STEP 4: LEVEL OF SIGNIFICANCELevel of significance α = 0.05Degrees of freedom = (R-1) (C-1) = (4-1) (5-1) =12Tabulated value at 5% level of significance and degree of freedom 12 is 21.026STEP 5 : COMPARING WITH TABLE VALUEThe calculated value is greater than the tabulated value: 54.04 > 26.296FINDINGTherefore, reject the Null Hypothesis Ho and accept the Alternate Hypothesis H1.INFERENCEThere is significant relationship between the changes taken for performanceappraisal and improvement of performance appraisal.TABLE 5.21.2 CROSS TABULATION BETWEEN THE PROPER EXECUTION OF PERFORMANCE APPRAISAL AND RATING EMPLOYEE PERFORMANCE. Proper execution YES NO TOTAL Rating Performance Based on abilities and skills 8 2 10 Based on management reference 19 6 25 Based on superiority 21 4 25 Based on contribution 30 10 40 TOTAL 78 22 100 41
  42. 42. STEP 1: SETTING AN HYPOTHESISH0: There is no significant relationship between the changes taken for performance appraisaland improvement of performance appraisal.H1: There is significant relationship between the changes taken for performance appraisaland improvement of performance appraisal.STEP 2: TO FIND THE EXPECTED FREQUENCY Expected frequency = Corresponding row total * Corresponding column total Total number of samplesSTEP 3: CALCULATION OF CHI-SQUARE VALUE Formula: =∑ (O-E) 2 EWhere = Chi-SquareOi = Observed FrequencyEi = Expected FrequencyTABLE 5.21.2.1 COMPUTATION TABLE FOR O E (O-E) (O-E)2 (O-E)2/E 8 7.80 0.20 0.04 0.01 2 2.20 -0.20 0.04 0.02 19 19.50 -0.50 0.25 0.01 6 5.50 0.50 0.25 0.05 21 19.50 1.50 2.25 0.12 4 5.50 -1.50 2.25 0.41 30 31.20 -1.20 1.44 0.05 10 8.80 1.20 1.44 0.16 TOTAL 0.82 42
  43. 43. STEP 4: LEVEL OF SIGNIFICANCELevel of significance α = 0.05Degrees of freedom = (R-1) (C-1) = (4-1) (2-1) = 3Tabulated value at 5% level of significance and degree of freedom 3 is 7.28STEP 5 : COMPARING WITH TABLE VALUEThe calculated value is greater than the tabulated value: 0.82<7.82FINDINGTherefore, accept the Null Hypothesis H0 and reject the Alternate Hypothesis H1.INFERENCEThere is no significant relationship between the changes taken for performance appraisal andimprovement of performance appraisal. 43
  44. 44. 6. SUMMARY AND CONCLUSION6.1 FINDINGS 1. Majority (89%) of respondents are male. 2. Most of the respondents (33%) belong to the age group of 30 to 35. 3. 54% of the respondents have above 5 to10years of work experience. 4. Majority (49%) of the respondents are under graduates. 5. All of the respondents have under gone performance appraisal program once in a year. 6. 100% of the employees interpret the reason for conducting performance appraisal includes all the factors such as to identify motivating methods, to decide monetary benefits and identify barriers for performance. 7. For 87% of the respondents performance appraisal was conducted during working hours. 8. For 100% of the respondents the performance appraisal is conducted by outsider. 9. Most (77%) of the respondents feel that the reason for performance appraisal is discussed sometimes. 10. Once in a year the meeting IS scheduled for all employees to discuss their performance. 44
  45. 45. 11. 69% of the respondents feel that performance appraisal is related to organizational goals to some extent.12. All of the respondents infer that they are never involved in designing the performance appraisal system.13. 87% of the respondents feel that the performance appraisal system is developed highly relevant to the employee’s job.14. All respondents mostly share their opinion and suggestions freely during the performance appraisal.15. All respondents have got the training to fill up the performance appraisal forms.16. All of the respondents feel that the appraiser is not aware of the jobs and duties of the each and every employee.17. 89% respondents feel the superior will provide informal feedbacks for performance improvement occasionally.18. Most (44%) of the respondents feel that the raters are less involved while appraising employees.19. Most (78%) of the respondents says the Performance Appraisal is properly executed in the organization.20. Majority (54%) of the respondents feel that performance appraisal system is reviewed and updated occasionally. 45
  46. 46. 6.2 SUGGESTIONS 1. Performance appraisal could be conducted by a person inside the organization and one who is familiar with the employees. 2. Objective of conducting the performance appraisal could be discussed and doubts can be clarified. 3. Performance appraisal could be updated regularly to match individual and organizational goals. 4. Suggestion could be obtained from employees regarding framing the performance appraisal system. 5. Since the performance appraisal is conducted by the outsider, employees suggestion during performance appraisal may not reach the top managers. For such situations suggestion box can be implemented and frequently reviewed. 6. The appraiser must be familiarized with the employees job responsibilities and duties before conducting performance appraisal. 7. Feedback on performance could be discussed through formal or informal meetings. 8. This may enhance the involvement and performance of employees. 9. Appropriate and experienced appraiser can be appointed for effective performance appraisal results. 10. Performance appraisal can developed in such away to identify the hidden talent and skills of employees. 11. Employees having low performance could be called individually, encouraged and monitored closely to make improvements. 12. Appraisal feedback is very important in any performance appraisal program. Could be carefully communicated by making high performers increase their target and low performers to build up their confidence. 46
  47. 47. 6.3 CONCLUSION Performance appraisal may be understood as the assessment of an individualsperformance in a systematic way. The performance being measured against such factors asjob knowledge, quality and quantity of output, initiative, leadership abilities, supervision,dependability, co-operation, judgment, versatility, health and the like. It also helps indeveloping strength and rectifies weakness of the employees. BMW Group have been conducting performance appraisal for the past four years.From the study it has been identified that the performance appraisal is able to identifyemployees potential and find the motivating factors of employees. The major drawback is interms of the appraiser and his knowledge regarding employee’s job responsibilities andduties. BMW Group has been running successfully for past 5years and has created a goodname among its customers and society. People having poor background are given trainingand provided with jobs. Performance appraisal can be conducted more effectively by usingthe right tools and properly reviewing and updating the performance appraisal program.Suggestion form employees and experienced personnel can further enhance and make theperformance appraisal an ideal evaluation system. 47
  48. 48. BIBLOGRAPHYBOOKS Human Resource Management. By S. Seetharaman & B.Venkateswara Prasad, Scitech Publication, 2007. Kothari, C.R., Research Methodology- Methods & Techniques, New Delhi, New Age international(P)Ltd.,Publishers,SecondEdition,2004. Performance Management, Concepts, Practices and Strategies for Organisation success by S.K.Bhatia, Deep & Deep Publications Pvt. Ltd, 2008. Statistical Methods for Management, By P.N.Arora & S.Arora New Delhi, Sultan Chand & Sons Publishers, 2005.WEBSITEwww.BMWGroup.comwww.citehr.comwww.performanceappraisal.com 48
  49. 49. APPENDIXName :Gender : () Male Female ()Age group : () 20-30 () 31-40 () 41-50 () 51-60Experience : () Less than 3years () 4-8Years () 9-15Years () More than15YearsQualification :1. How many times performance appraisal is conducted in your organization?a) Once a year b) Twice a year c) No specific time2. What is the reason for conducting performance appraisal in your organization?a) To identify motivating methods b) To decide monetary benefitsc) Identifying barriers of performance d) All of the above3. When is the performance appraisal conducted?a) During working hours b) during non-working hours4. Who conducts performance appraisal?a) Superior b) Peers c) Everyone d) Outsider 49
  50. 50. 5. Are you informed the reason for conducting performance appraisal programs?a) Always b) Sometimes c) Never6. How many meetings are scheduled in a year to discuss employee performance?a) Nil b) Once c) Twice d) Thrice7. Does the performance appraisal programs relate to organizational goals?a) To a high extent b) To some extent c) To a low extent8. Are you involved along with the manager in designing the appraisal system at theorganization?a) Always b) Sometimes c) Never9. Is the performance appraisal developed in relevance to employee job?a) Highly relevant b) relevant c) no idea d) Irrelevant e) highly irrelevant10. Do you share your opinion and suggestions freely to the managers during the appraisalprogram?a) Mostly b) rarely c) never11. Are you given training to fill up performance appraisal forms?a) Yes b) No12. Is the appraiser aware of your job responsibilities and duties?a) Completely aware b) Aware to an extent c) Not aware13.0ther than performance appraisal does your superior provide you within formalfeedbacks for performance improvement?a) Frequently b) Occasionally c) never 50
  51. 51. 14. Are the raters involved while appraising employees?a) Highly involved b) Less involved c) not involved15. Do you feel that performance appraisal is important in an organization?a) Highly important b) less important c) not important d) No idea16. Is performance appraisal properly executed in your organization?a) Yes b) No17. Does top management support and encourage performance appraisal?a) Highly supportive b) Less supportive c) Not supportive18. Is the performance appraisal reviewed and updated now and then?a) Frequently b) Occasionally c) Never19. Does performance appraisal identify employee potential for advancement?a) Highly effectively b) Effectively c) Neutral d) Ineffectively e) Highly ineffectively20. State your satisfaction through the performance appraisal program at theorganization?a) Unsatisfactory b) Needs Improvement c) Meets Expectation d) Outstanding21. Do you feel that performance appraisal encourages you to put in more effort in reachingyour goals?a) Strongly agree b) Agree c) Neutral d) Disagree e) Strongly disagree22. Do you obtain appraisal feedback?a) Frequently b) Occasionally c) Rarely d) Never 51
  52. 52. 23. Are both five & negative points discussed to the employees?a) Yes b) No24. How do you feel when negative points are discussed?a) Discouraged b) Determined to perform betterc) ready to learn d) Do not want to contribute25. Rate your appraisal programa) Reliable b) Effective c) Accurate d) Motivating e) Unbiased26. Do you feel comfortable in discussing your problems with your superior?a) Highly Comfortable b) Comfortable c)Neutrald) Uncomfortable e) Highly uncomfortable27. On what criteria is employee performance rated?a) Based on abilities and skills b) Based on management referencec) Based on superiority d) Based on contribution28. What changes have been taken in the organization as a result of performance appraisal?a) Change in motivating strategy b) Re-structuring of organization or individualobjectives c) Improvement in management-employee relationship d) Making changes indissatisfied areas e) No decision taken29. In general, how effective has your organization performance appraisal system inimproving overall performancea) Highly ineffective b) Ineffective c) Moderate d) Effective e) Highly effective 52

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