Performance appraisal

A
PROJECT REPORT
ON
PERFORMANCE APPRAISAL
IN
ODISHA MINING
CORPORATION LIMITED
GUIDED BY- Dr. JYOTIRMAYEE
CHOUDHURY
SUBMITTED BY – SANDEEP JENA
DEPARTMENT OF BUSINESS ADMINISTRATION,
UTKAL UNIVERSITY
COURSE- INTEGRATED MBA (5YR)

AKNOWLEDGEMENT
It is my privilege to thank all of them who have supported
me in carrying out this dissertation successfully. Firstly I
would like to express my sincere thanks to two separate
concerns Department Of Business Administration,
UTKAL UNIVERSITY, the former for arranging and guiding
me to start the project and the latter for extending their
noble help for its formation of competition.
I express my sincere gratitude to my internal guide Mr. PC
Mohapatra for extending guidance and direction in
preparing this project, without whose cooperation the
project would not have been complete. I also acknowledge
the contribution of all the members of OMC, Ltd. Who all
together provided e and inspiring working environment.
In the same breath I thank all friends who helped me in
completing the report a presiding me with a lot of
important information.
Date: 20-june-2018 Signature
Place: OMC, BHUBANESWAR Sandeep Jena

Reg. No. : 7035/OMC: PRSNL: 2018
DECLARATION
I Sandeep Jena a student of UTKAL UNVERSITY. I hereby declare
that the project work entitled “A study on performance
appraisal at OMC” submitted for partial refinement or MBA
degree is the result of authentic work underby and that the
information supplied in this report is correct to best of my
knowledge.
Signature

CONTENTS
Chapter-1
INTRODUCTION
1.1 Introduction to study
1.2 Importance to the study
1.3 Objective of the study
1.4 Scope of the study
Chapter-2
Company profile
Chapter-3
Theoretical aspect
3.1 Meaning
3.2 Importance
3.3 Advantages
3.4 Limitations
3.5 Methods
Chapter-4
Data analysis
Chapter-5
5.1 Finding,
5.2 Conclusion,
5.3 Suggestion

5.5 BIBLIOGRAPHY
5.6 Annexure
CHAPTER-1
INTORDUCTION

INTRODUCTION TO THE STUDY
 It is the process of evaluating the performance of
employees, sharing that information with them and
searching for ways to improve their performance.
 Performance appraisal is the step where the
management finds out how effective it has been at
hiring and placing employees.
 A “Performance appraisal” is a process of
evaluating an employee’s performance of a job in
terms of its requirements.
IMPORTANCE OF THE STUDY
1. Make your people feel valued
To be fully satisfied and competent employees need to
feel that they’re valued and are producing good work.
The formal appraisal is a great opportunity to give your
employees sincere feedback, spurring them on to work
smarter and better.

Employees really value frequent praise and recognition,
so letting them know you are aware of the good work
that they’re doing will help you to retain hard-working
staff. Your team will also value your expert advice on
their personal brand, and what key areas they should be
focusing on strengthening.
2. Set new goals
The most productive employees are those that are
constantly driven, and unrelenting in their pursuit of
goals. Setting achievable targets during the appraisal
helps to motivate employees, and empowers them to
feel more confident when they hit them.
The appraisal is also a useful occasion to realign
business objectives with changing market conditions;
making targets relevant and accurate. For instance,
during a particularly stagnant period of nationwide
growth you may wish to reign in your forecasts to avoid
disappointment.
3. Resolve grievances
Often managers are too engrossed in the day-to-day to
get an insight into an employee’s frame of mind. The
appraisal is a great time to address any concerns you or
they may have.
4. Strengthen bonds

It’s important for team cohesion and overall
productivity that managers have good relationships
with their team. Use this occasion to align priorities and
discuss various matters of interest to the business with
your team members; almost like a brainstorming
session.
5. Refocusing your team
Appraisals can be used to help communicate your
vision to team members. This is your chance to clarify
and articulate your vision, ensuring that everyone is
singing from the same hymn sheet.
It’s also an opportunity to manage employees’
promotion expectations. Those with an inflated idea of
their own abilities and role within the business will
benefit from a realistic assessment of their current
worth.
6. Oversight on current projects
As a busy manager, it can be hard sometimes to adopt a
helicopter view of on-going projects. Formal appraisals
are a good opportunity to step away from the hustle and
bustle of everyday work and reflect upon the
overarching direction your team is heading in.
7. Assess the training needs of your team

Different people within your team will have different
strengths. Use the appraisal to assess your employees’
weaknesses, identifying areas which may require
additional training and support.
Letting your team know that you’re thinking about their
development will help instil in them an ethos of
ambition, in turn driving the business on to be more
productive and inspirational.
OBJECTIVE OF THE STUDY
 To provide employees feedback on their performance.
 Identify employee training needs.
 Document criteria used to allocate organisational
rewards.
 A basis for decisions relating to salary increases,
promotions, disciplinary actions, bonuses, etc.
 Provide the opportunity for organisational diagnosis
and development.
 Facilitate communication between employee and
employer.

 Validate selection techniques and human resource
policies to meet regulatory requirements.
 To improve performance through counselling,
coaching and development.
 To motivate employees through recognition and
support.
SCOPE OF THE STUDY
The scope of any performance appraisal should include
the following:
I. Provide employees with a better understanding of
their role and responsibilities
II. Increase confidence through recognizing strengths
while identifying training needs to improve
weaknesses
III. Improve working relationships and communication
between supervisors and subordinates
IV. Increase commitment to organizational goals
V. Develop employees into future supervisors

VI. Assist in personnel decisions such as promotions
or allocating rewards and allow time for self-
reflection, self-appraisal and personal goal setting
CHAPTER-2
COMPANY PROFILE

COMPANY PROFILE
“ABOUT THE COMPANY”

Odisha is one of the richest states in India in
terms of mineral wealth. However, this wealth
was largely untapped as mining is a very capital
intensive industry and in the early years of
independence capital was scarce. Under these
circumstances, the Odisha Mining Corporation
Limited (OMC) was incorporated on 16th May
1956 as a joint venture Company of Govt. of
Odisha and Govt. of India with the objective of
harnessing the mineral wealth of the State of
Odisha through exploration, extraction as well
as value addition.

Four years later, following the withdrawal of the
Govt. of India from the company, OMC became a
wholly State-owned Corporation of Govt. of
Odisha on 17th Nov 1961. As of now, it continues
to be a wholly owned corporation of the Odisha
Government, which has subscribed to the entire
paid up capital of Rs.31.45 crores out of an
authorized capital of Rs.100 crores.
The major minerals mined by OMC are chrome,
iron and manganese ore which cater to the
requirement of mineral based industries such as
steel, sponge iron, pig iron, ferro-manganese,
ferro-chrome, etc.
OMC has been growing steadily over these years
and today it stands as the largest State PSU in
the mining sector of the country. It recorded the
highest turn-over of Rs.2756 crore in 2010-11.
OMC is ably managed by an eminent Board of
Directors consisting of Government Directors as
well as Independent Directors. The Chairman
and the Managing Director look after the day-to-
day running of the Corporation under the
guidance of the Board of Directors.
That OMC has been classified as a “Gold”
Category State PSU", is a 100% debt free profit
making corporation, is a testament to the
excellent processes and systems put in place by
the management team.
One such system was the adoption of SAP, an
ERP tool, since 2004 to streamline its business
processes, bring synergy in functional activities
across the organization and handles numerous

business locations and expanding volumes. SAP
also helps in bringing greater transparency in
financial transactions and effective monitoring
and financial control enabling the organization
to take informed and timely decisions. As a
matter of fact, OMC was awarded with the
Golden Peacock Award in 2006-07 by the
Institute of Directors, New Delhi for successfully
implementing SAP across the organization.
CHAPTER-3
THEORITICAL ASPECT

MEANING:
The effectiveness of staffing functions needs to be
ascertained by evaluation the performance of employees in
terms of the job requirement. Performance appraisal or
employee appraisal is the systematic process of measuring
and evaluating employees with respect to their performance on the
job and their potential for development. Although
performance appraisal if often described as merit rating,
strictly speaking, rating is only one form of personnel
evaluation. Performance appraisal is a more comprehensive
process which combines formal rating with supplementary
observations, records and evaluation
(Dale Yeder).Performance Appraisal is the process of
assessing the performance and progress of an employee or of
a group of employees on a given job and his potential
for future development. According to
FLIPPO “performance appraisal is the systematic, periodic
and an impartial rating of an employee’s excellence in
matters
Pertaining to his present job and his potential for a better
job”
Heyle observes; “it is the process of evaluating the performance and

qualifications of the employees in terms of the requirement
of the job for which he is employed, for purpose of
administration including placement, selection for
promotions, providing financial rewards and other actions
which require differential treatment among the members of
a group as
Distinguished from actions affecting all members equally.”
IMPORTANCE
Performance appraisal has been considered
as a most significant and indispensible tool for
an organization, for the information it provides is
highly useful in making decisions regarding
various personalaspectssuch as promotions and
merit increases. Performance measures also link
information gathering and decision making
processes which provides a basis for judging the
effectiveness of personnel sub-divisions such as
recruiting, selection, training and compensation.
Below are given views of some experts which will
bring out the importance and purpose of PA.
According to Barret, PA is concerned mainly with
three things.
i. Administrative decisions i.e. promotion,
transfer and allocation of financialrewards.
ii. Employee development i.e. identification of
training and development needs and
performance feedback.

iii. Personnel research i.e. generation of
manpower information besides salary
and wage distribution.Mc Gregor says:
Formal performance appraisal plans are
designed to meet three needs, one of the
organization and the other two of
the individual, namely.
iv. This provides systematic judgment to back
up salary increases, transfer, demotion or
termination.
v. They are means of telling a subordinatehow
he is doing and suggesting changes
needed in his behaviour, attitude, skills
or work knowledge. They let him know
where he stands with the boss.
vi. They are used as a base for coaching and
counselling the individual by the superior.
ADVANTAGES:
Performance appraisal basically offers the following main
advantages to the organization and its employees:
I. Employee performance: It provides a yardstick by which
both accomplishment and needs for further
improvement in respect of an individual can be

measured. The use of system of performance appraisal
contributes towards more effective and improved
performance on the part of many individual.
II. Employee development: It is used to highlight needs
and opportunities for growth and development of
employees by focusing attention on their deficiencies
and potentials. It is particularly useful in discovering
needsoftrainingtoemployees.
III. Wages and Salary Adjustment: It is also used by certain
organizations to grant merit increases in pay to
employees in certain categories of jobs.
IV. Evaluation of Supervisor & Manager: Performance
appraisal also provides valuable yardstick to measure the
effectivenessofsupervisorsandmanagersindevelopingthe
team members who work under their direction. In
addition to the above, performance appraisal make
available the relevant information to management for
purposes of employee transfer, promotions,counselling,
determinationof training needs, humanrecourse planning
etc. so that they should be able to frame suitable
personnel policies to optimally utilize human and other
recoursesandachieve organizational goals.
LIMITATIONS OF THE STUDY
1. Bias of Appraiser:
The presence of ‘Halo Effect’ in evaluation of
employees is the biggest weakness of this method.
A high rate is given to favoured employees whereas
unfriendly employees are rated low.

2. Ambiguity in Standards:
If the standards are not clear, the supervisors may
follow different standards for different employees.
3. Insufficient Evidence:
An employee who can impress the boss may get a
positive evaluation though his impression in his own
department may be very poor. In such cases, the
performance appraisal will be superfluous.
4. Several Qualities Remain Without Appraisal:
Through performance appraisal, only few qualities of
employees can be measured. All individuals differ
from each other in terms of background, values and
behaviour.
5. Leniency or Strictness Tenancy:
Every evaluator has his own valuation procedure
which is regarded as his own standard for evaluation.
For example, some teachers are strict in evaluation of
answer books whereas others are lenient. The lenient
tendency is known as ‘Positive Leniency Error’
whereas strict tendency is called as ‘Negative
Leniency Error’. The rating may be high or low
depending upon the nature of evaluators.

6. Average Rating Problem:
In order to give very low or very high rating, the top
managers are required to give reasons to justify the
rating. The most common error committed in
performance appraisal is to give average rating to all
employees. Moreover, low rating antagonizes the
subordinates.
7. Influence of Man’s Job:
There is a tendency to give a high rating to highly
paid jobs. So a senior employee may get a higher
rating than a junior employee.
8. Similarity Error:
The evaluator tries to look those qualities in
subordinates which he himself possesses. Those who
show the similar characteristics are rated high.
METHODS OF PERFORMANCE
APPRAISAL
Several methods and techniques of appraisal are
available for measurement of the performance of an
employee. The methods and scales differ for obvious
reasons.

i. They differ in the source of traits or qualities to
be appraised. The qualities may differ because
of differences
in job requirements, statistical requirements a
nd the opinions of the management.
ii. They differbecause of the different kinds of workers
whoare beingrated, viz.,factoryworkers,executives
or salesmen.
iii. The variations may be caused by the degree of
precision attempted in an evaluation.
iv. They may differ because of the methods used to
obtain weightings for various traits.
1. CONFIDENTIAL REPORT & ESSAY EVALUATION:
In this method the assessor writes a brief essay providing
an assessment of the strengths, weaknesses and potential
of the subject. Factors to be considered while preparing the
essay:
•JobKnowledge&potentialofemployee
•Employee’s understanding of company’s policies,
objectives etc.
•Employee’s relations with co-workers & superiors
•Employee’s general planning, organizing & controlling
abilities.
•Attitudes & perceptions of employee in general.

2. Critical Incident Method:
In case of critical incident method supervisor keeps log of
particularly good& poor examples of work behaviours. A
panel of judges evaluates the collectionof potential critical
incidents.
Supervisor & subordinate discuss
The latter’s performance, using
Incidentsasexamples.
3. Checklist:
In checklist method evaluator uses a list of behavioural
descriptions&
Checks off those that apply to employee or gives
„Yes‟/‟No‟ responses.
Checklist scored according to the weights assigned. The
final rating of the employee is takenas the averageofthescale
valuesofallstatementsthat the later has checked.
4. Forced choice rating:
In the form of forced choice rating several sets of pair
phrases, two of which may be positive & two negative is
used. The rater needs to indicate which of the four phrases
is the most & least descriptive of a particular worker.
Items are grounded in such a way that the rater cannot
easily judge which statements apply to the most effective
employee.
5. Graphic Rating:

The appraise lists a number of traits and a range of
performance values for each trait. The rater or supervisor
rates each subordinate by checking the
Score that best describesthe subordinate’sperformanceforeach
trait.
6. Behaviourally Anchored Rating Scale (BARS):
BARSmethodcombinesthebenefitsofnarrativecriticalincidents
&quantitative ratings by anchoring a quantified scale with
specific narrative examplesofgood&poorperformance.
Five Steps of developing BARS:
i. Generate critical incidents
ii. Developperformancedimensions
iii. Reallocateincidents
iv. Scaletheincidents
v. Develop a final instrument
7. RANKING METHOD:
This is simplest of all methods. The appraisal consists of
ranking employees as more or less efficient by inter-
personal comparison of overall qualities. This method is
conveniently adopted if the number of employees is small
and work performance is measurable. Thus ranking
involves subjective appraisal of employees without
any common standard.
8. Paired Comparison:
Inpairedcomparisonmethod

Each employee is compared with every other employee in the
comparisongroupandratedaseitherthesuperior(+)or weaker
(-) member of the pair.
Each employee is assigned a summary ranking based on the
number of superior scores achieved.
9. Management by Objectives (MBO):
In MBO the manager requires to set specific measurable goals
with each employee and then periodically discuss progress
towardthesegoals.
Six Steps:
I. Settheorganization’sgoals
II. Setdepartmentalgoals
III. Discussdepartmentalgoals
IV. Defineexpectedresults
V. Conductperformancereviews&measureresults6.
VI. Provide feedback
10. 360 degree appraisal:
In simple words 360-degree appraisal means
Collecting performance information on an employee from all
angles i.e. subordinates, supervisors, peers, andinternaland
externalcustomers.

11. Human resource accounting:
Human recourse accounting means to measure (in financial
terms) the effectivenessofHRactivities&theuseofpeopleinthe
organization.HRA shows the investments the company makes in
it people and how the value of these people change over
time. Costs incurred on employees (inhering, training,
compensating, and developing) are compared to the
contributions of employee to the company
(labour productivity).
12. Field Review Method:
Infield review methodatrainedandskilledrepresentativeofHR
department goes into the field and assists line supervisors
with their ratings of their respective subordinates. Here
ratings done on standardized forms. HR specialist requests
from the immediate supervisor specific
Informationabouttheemployee’sperformance.
Then experts prepare report, which is sent to supervisor for
review, changes, approval & discussion with rate.

ANALYSIS & INTERPRETATION
This chapter deals in tabular presentation results and
their analysis for the purpose of easy reading the section
has been divided into two parts.
* Tabular form of Response
* Inference
* Remarks on each question
1. In your company, the key competencies required for
each job are already identified?
Response
Category
No. of responses Percentage
Very true 0 0
True 4 8

Partly true 9 18
Not true 37 74
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 OMC 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.
2. There are mechanisms that help employees develop
their potential for the next round of job?
Response
Category
Very true 0 0

True 5 10
Partly true 25 50
Not true 20 40
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 OMC 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.
3. Employees regularly receive feedback about their
potential for higher level jobs?
Response
Category

Very true 0 0
True 8 16
Partly true 7 14
Not true 35 70
Inference: 70% of the respondents agreed that the
appraisal system did not help 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 OMC 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
predetermined plans. Again due to flexibility in job
content, some people may have found problems in
planning their performance systematically.
4. Job rotation is practiced widely to help people
develop their potential in new areas?
Response
Category
Very true 7 14

True 18 36
Partly true 25 50
Not true 0 0
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.
5. The appraisal system provides an opportunity for self-
review and reflection?
Response
Category
Very true 0 0
True 0 0
Partly true 13 26
Not true 37 74

Inference: There is a general agreement on fact that the
PA system in OMC 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.
6. Promotions are based strictly on need rather than to
reward individuals?
Response
Category
Very true 0 0
True 4 8
Partly true 25 50
Not true 21 42

Inference: 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.
7. The appraisal system gives each appraisee an idea of
what is expected of him next year?
Response
Category
Very true 0 0
True 10 20
Partly true 26 52
Not true 14 28

Inference: 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
accountabilitieswill 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.
8. It is designed to aid the appraise and appraiser jointly
understands the formers job?
Response
Category
Very true 0 0
True 14 28
Partly true 22 44
Not true 14 28
Inference: 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 OMC 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.
9. The performance appraisal provides an opportunity
for self review and reflection?
Response
Category
Very true 0 0
True 2 4
Partly true 25 50
Not true 23 46
Inference: 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.
10. The appraisal procedure allows the appraisee to
express his developmental needs?
Response
Category
Very true 0 0
True 8 16
Partly true 16 32
Not true 26 52
Inference: 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 OMC 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.
11. The system has scope to correct the biases of the
assessor through a super review?
Response
Category
Very true 0 0
True 2 4
Partly true 14 28
Not true 34 68
Inference: 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.
13. The appraisal system provides for a frank
discussion between appraiser and appraisee?
Response
Category
Very true 0 0
True 6 12
Partly true 0 0
Not true 44 88
Inference: 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.
14. What kind of an appraisal system will bring out
the best of an employee?
Response
Category
Very true 10 20
True 5 10
Partly true 15 30
Not true 20 40
Remarks: This shows that the relationship between
appraiser and appraise, in OMC, 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 OMC are not well defined and therefore an elaborate
planning on them is not done.

CHAPTER-5
CONCLUSION, FINIDINGS,
QUESTIONARRIES

CONCLUSION
Performance appraisal is the process of reviewing
employee performance vis-à-vis the set
expectations in a realistic manner, documenting
the review, and delivering the review verbally in
a face-to-face meeting, to raise performance
standards year over year through honest and
constructive 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 the coming year. Effective performance
management requires a good deal of face-to-face
supervisor-employee interaction. By knowing the
subordinates, a supervisor can steer them onto a
path of greater productivity and optimized
output. It is one of the most significant and
indispensable tool for an organization 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 the organization.
QUESTIONNANIRE
I have undertaken a project on PERFORMANCE APPRAISAL
SYSTEM. The information furnished by you will help knowing
the effectiveness of the present appraisal and reward system
and if need be designing of a new appraisal system. The data
will be kept confidential and will be used for academic
purpose only.
1. In your company, the key competencies required for each
job are already identified.
a) Very true b) true c) Partly true d) not true
2. 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 true
3. Employees regularly receive feedback about their
potential for higher level jobs
4. Job rotation is practiced widely to help people develop
their potential in new areas.
5. Your company’s promotion policies are clearly defined
and shared with all employees.
6. Promotions are based strictly on need rather than to
reward individuals?
7. The appraisal system gives each appraise an idea of what
is expected of him next year?
8. It is designed to aid the appraise and appraisers jointly
understand the former’s job?
9. The performance appraisal provides an opportunity for
self review and reflection?
10. The appraisal procedure allows the appraise to express
his developmental needs?

11. The system has scope to correct the biases of the
assessor through a super review?
12. The appraisal system provides for a frank discussion
between appraisers and appraise?
13. The procedure allows for the communication of CEO‘s
goal to the workforce?
14. The appraisal system brings out the training needs of the
employees.
15. The performance appraisal system clarifies the career
prospects, aspirations and intentions.
16. The appraisal system provides a rational basis for salary
recommendations.
17. The company relates reward to your performance.
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?
______________________________________________________________________
_____
______________________________________________________________________
_______________ ____________________________________.
BIBLIOGRAPHY
Aswathappa K, Human Resource & Personnel
Management, Tata McGraw- Hill Publishing Co. Ltd.,
New Delhi, Sixth edition 2001
Kothari C.R., Research methodology methods &
techniques, Wishwa Prakasan publishing Co. Ltd.,
New Delhi, Sixth edition 2001.
Human Resources Management by P.Subarao
Search engines:
1. www.google .com
2. www.citehr.com
3. www.msn.com
4. www.wikipaedi.com

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